Mar 31, 2015
The Directors have pleasure in presenting the Twenty Ninth Annual
Report, together with the Audited statements of Accounts of the Company
for the year ended 31st March, 2015 along with Auditor's Report
thereon:
FINANCIAL HIGHLIGHTS (Rupees in Lakhs)
Particulars 2014-2015 2013-2014
Gross income 15.48 20.46
Profit/(Loss) before
Depreciation, 2.15 (104)
Finance Costs,
Provisions and Tax
Add/(Less):
Depreciation 1.50 1.30
Finance costs 0.01 0.03
Provision for standard
and substandard 2.41 0.33
assets and diminution
in value of investments
Excess provision for
diminution in (9.20) -
value of Investments
written back
Profit/(Loss) before tax 7.43 (2.70)
Taxation (Net) 1.57 0.03
Net Profit/(Loss) 5.86 (2.73)
Profit/(Loss) available
for appropriation 5.86 (2.73)
Carried to Statutory Reserve 1.20 -
Surplus/(Loss) carried
to Balance Sheet 4.66 (2.73)
OPERATIONS
During the year 2014-2015 the company has earned net profit of Rs.5.86
Lakhs as against loss of Rs.2.73 Lakhs during the year 2013-2014.
CHANGE IN THE NATURE OF BUSINESS:
During the year under review, there has been no change in the nature of
business of the Company.
DIRECTORS
Sri. Y. B. K. Murthy, Director of the Company retires by rotation at
the ensuing Annual General Meeting and being eligible, offers himself
for reappointment.
Pursuant to Sections 149 (6) & 149 (7) of the Companies Act, 2013, the
Independent directors of the company gave a declaration that they have
complied with the criteria of independence as set out under sub section
(6) of section 149 of the Companies Act, 2013.
BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance, the directors individually as well
as the evaluation has been carried out as per the Nomination and
Remuneration Policy.
During the year Six Board Meetings were properly convened and held.
KEY MANAGERIAL PERSONNEL
The Company had already appointed Shri. N. Swaroop Kumar, as Manager,
Miss. Y Vasavi as Chief Financial Officer and Ms. Akshita Surana as the
Company Secretary. The Board designated them as Key Managerial
personnel of the Company under the provisions of the Companies Act,
2013.
NAMES OF THE COMPANIES WHICH HAVE BECOME/CEASED TO BE SUBSIDIARIES,
JOINT VENTURES OR ASSOCIATE COMPANIES DURING THE YEAR
The Company did not have any subsidiaries, associates or joint ventures
during the year.
FIXED DEPOSITS
The Company has not accepted any deposits within the meaning of Section
73 of the Companies Act, 2013 and the Companies (Acceptance of
deposits) Rules, 2014.
SIGNIFICANT MATERIAL ORDERS PASSED BY THE COURTS / REGULATORS
/TRIBUNALS IMPACTING GOING CONCERN STATUS AND COMPANY'S OPERATIONS
To the best of our knowledge, the Company has not received any such
orders from Regulators, Courts or Tribunals during the year, which may
impact going concern status or the company's operations in future.
DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH
REFERENCE TO THE FINANCIAL STATEMENTS
The Company has in place proper and adequate internal control systems
commensurate with the nature of its business, and size and complexity
of its operations. Internal control systems comprising of policies and
procedures designed to ensure reliability of financial reporting,
timely feedback on achievement of operational and strategic goals,
compliance with policies, procedures, applicable laws and regulations,
and that all assets and resources are acquired are used economically.
TRANSFER TO STATUTORY RESERVE
The Company has transferred an amount of Rs. 1,20,000/- towards
statutory reserve.
DIVIDEND
In view of accumulated losses, your directors do not recommend any
dividend for the Financial Year 2014-2015.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirements under Section 134(5) of the Companies Act,
2013, in respect of Directors' responsibility statement, Your Directors
state that:
i. In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. Appropriate accounting policies had been selected and applied
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year 2014-15 and of the profit
of the Company for that period;
iii. Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv. The annual accounts for the year 2014-2015 have been prepared on a
going concern basis.
v. That proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively, and
vi. That systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively.
AUDITORS
The shareholders in their meeting held on 26th September, 2014 approved
the appointment of M/s Janardhan Rao Deshmukh & Co., Chartered
Accountants, Hyderabad, as the Statutory Auditors of the Company to
hold office till the conclusion of 31st Annual General Meeting subject
to ratification of shareholders in every Annual General Meeting.
Accordingly, a resolution seeking Members ratification on appointment
of M/s. Janardhan Rao Deshmukh & Co., Chartered Accountants, Hyderabad,
as the Statutory Auditors of the Company for the financial year 2015-16
is included at item No.3 of the Notice convening the Annual General
Meeting, as required under clause 49 of the Listing Agreement.
SECRETARIAL AUDIT
Pursuant to provisions of section 204 of the Companies Act, 2013 and
The Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, the Company has appointed M/s. PS. Rao & Associates a firm
of Company Secretaries in practice to undertake the Secretarial Audit
of the Company. The Secretarial Audit report is annexed herewith as
Annexure I to this Report.
INTERNAL AUDITORS
The Board on the recommendations of the Audit Committee have appointed
M/s. Suresh and Babu, Chartered Accountants as internal auditors of the
Company.
AUDIT COMMITTEE
The following is the composition of Audit Committee as at 31st March,
2015:
1. Sri. P.R.K. Murthy
2. Mrs. S. Jhansi Kumari
3. Sri.Y.B.K. Murthy
NOMINATION AND REMUNERATION COMMITTEE
The following Is the composition of Nomination and Remuneration
Committee as at 31st March, 2015:
1. Sri. P.R.K. Murthy
2. Mrs. S. Jhansi Kumari
3. Sri.Y.B.K. Murthy
The Board has on the recommendation of the Nomination & Remuneration
Committee framed a policy for selection and appointment of Directors,
Senior Management and their remuneration.
The terms of reference of the Nomination and Remuneration Committee
includes the following:
To identify and recommend to the Board, in accordance with the criteria
as laid down, for appointment/reappointment/removal of the
Executive/Non- Executive Directors and the senior management of the
Company;
To formulate criteria for evaluation and evaluate the performance of
every director, including the independent Directors;
To formulate the criteria for determining qualifications, positive
attributes and independence of the Directors;
To recommend to the Board a remuneration policy for the Directors, Key
Managerial Personnel and other employees of the Company;
To formulate the policy of remuneration and ensure that
a. The level and composition of remuneration is reasonable,
commensurate with the qualifications and experience, and sufficient to
attract, retain and motivate directors, key managerial personnel of the
quality required to run the company successfully;
b. Relationship of remuneration to performance is clear and meets
appropriate performance benchmarks and;
Any other function as may be mandated by the Board or stipulated by the
Companies Act, 2013, SEBI, Stock Exchanges or any other regulatory
authorities from time to time.
STAKE HOLDERS RELATIONSHIP COMMITTEE
The following is the composition of Stake Holders Relationship
Committee as at 31st March, 2015:
1. Mr. P.R.K. Murthy
2. Mrs. Jhansi Kumari
3. Mr. T. Adinarayana
The Committee focuses on shareholders' grievances and strengthening of
investor relations. The committee looks after the services of the
Registrars and share transfer agents and recommends measures for
providing efficient services to investors. The Committee specifically
looks into investor complaints like Transfer/transmission/transposition
of shares, and other related issues. There were no complaints pending
for redressal as at 31st March, 2015.
MEETING OF INDEPENDENT DIRECTORS
The Independent directors of the company have met separately without
the attendance of Non-Executive Directors on 30th March, 2015
inter-alia, review the performance of the Manager, Non-Executive
Directors and the Board as a whole. The independent Directors in the
said meeting also assessed the quality, quantity and timeliness of flow
of information between the Company Management and the Board to
effectively and reasonably perform its duties.
CHANGES IN THE SHARE CAPITAL
During the year the company has not issued any fresh shares.
RISK MANAGEMENT
The Company has a risk management policy and an internal control frame
work, which is used to mitigate the risks. The Board and Audit
committee on regular intervals are updated on the risk management
systems, processes and minimization procedure of the Company.
VIGIL MECHANISM FOR DIRECTORS AND EMPLOYEES OF COMPANY
The Company has a Whistle Blower Policy to deal with instances of fraud
and mismanagement, if any in the Company and the requisite mechanism
for directors and employees to report genuine concerns has been
established.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form
MGT - 9 are annexed herewith as Annexure - II.
RELATED PARTY TRANSATIONS
As a matter of policy, your company carries out transactions with
related parties on an arms-length basis. Disclosures as required under
form AOC-2 are annexed herewith as Annexure - III and also contained in
Note 31 and 32 (Other Notes to Financial Statements). There are no
materially significant related party transactions made by the company
with promoters, directors, key managerial personnel which may have a
potential conflict with the interests of the company at large.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company being a non banking finance company registered with Reserve
Bank of India, it mainly deals in the business of Investments and
financing activities, is exempt from complying with the provisions of
Section 186 of the Companies Act, 2013. Accordingly, the disclosures of
the loans given and Investments made as required under the aforesaid
section have not been given in this report.
OBLIGATION OF COMPANY UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
In order to prevent sexual harassment of women at work place a new act
The Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 has been notified on 9th December, 2013.
The primary objective of the said policy is to protect the women
employees from sexual harassment at the place of work and also provides
for punishment in case of false and malicious representations.
During the financial year 2014-2015, the Company has not received any
complaint of sexual harassment against women employees of the Company.
LISTING OF EQUITY SHARES
Your company shares are listed with the BSE Ltd., the listing fee has
been paid for the financial year 2015-2016.
MANAGEMENT DISCUSSION AND ANALYSIS
India started the financial year 2014-2015, on a very positive note
after the general elections with significant improvement in the
sentiment both in the capital markets and the business environment.
While the economy has been reported to have grown at 7.5% in the
financial year 2015 as per the new series, it is not getting fully
reflected in the performance of the corporate sector or in creation of
investment.
In the latter half of the financial year the economy and the markets
have been affected by the global developments including the fiscal
crisis faced by Greece, the less than expected performance of the
Chinese economy, the volatility in commodity markets especially in
metals and minerals.
The remarkable story in these circumstances has been the growth of the
e-commerce business cutting across many sectors including retail,
property, used cars, fashion, insurance, household services and many
more. It is comparable to the growth of IT and the ITES sector in the
earlier years and the interesting fact is that in both these businesses
the government intervention has been minimal. The impact of this growth
in e-commerce business on the economy would be felt in the coming years
in terms of employment, investment in technology and logistics etc. In
the year under review the company has earned nominal profits.
Your Directors hope that the Government will be able to push through
the critical reforms and then markets may see significant growth. The
Company undertakes no obligation to publicly update or revise any
forward looking statements, whether as a result of new information,
future events, or otherwise. Readers are cautioned not to place undue
reliance on these forward looking statements.
CORPORATE GOVERNANCE
Compliance with the provisions of clause 49 of the Listing Agreement
with regard to corporate governance report is not mandatory as the
Equity Share Capital of the company do not exceed Rs.10 crores and net
worth do not exceed Rs.25 crores as per SEBI circular no.CIR/CFD/
POLICYCELL/7/2014 dt. 15-9-2014, hence corporate governance report has
not been enclosed to directors report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUT GO U/S. 134 (3) (m) OF COMPANIES ACT, 2013 READ WITH
RULE 8 OF THE COMPANIES (ACCOUNTS), RULES 2014.
The company has not engaged in any manufacturing activity and thus its
operations are not energy intensive. However, adequate measures are
always taken to ensure optimum utilization and maximum possible saving
of energy.
There were no Foreign Exchange earnings and out go during the year.
PARTICULARS OF EMPLOYEES
The information required pursuant to Section 197 read with Rule 5 of
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 in respect of employees of the company is herewith annexed
as Annexure "IV".
ACKNOWLEDGEMENTS:
Your Directors gratefully acknowledge the continued assistance and co-
operation extended by various Government Authorities, and banks to the
company. The Board expresses its appreciation of the understanding,
dedication and support extended by the employees of the Company. Your
Directors also sincerely acknowledge the confidence and faith reposed
by the shareholders in the Company.
For and on behalf of the Board
Place : Hyderabad (T Adinarayana)
Date : 29.05.2015 Chairman
Mar 31, 2014
The Members,
The Directors have pleasure in presenting the Twenty Eighth Annual
Report of the Company with the Audited Statement of Accounts for the
year ended 31st March, 2014.
FINANCIAL RESULTS:
The following are the Financial Results of the Company for the year
ended 31st March, 2014:
(Rs. in Lakhs)
Year Ended Year Ended
31st March, 31st March,
2014 2013
Gross Income 20.46 22.39
Profit / (Loss) before Depreciation,
Finance Costs, Exceptional Items and Tax (1.04) 3.80
Add / (Less):
Depreciation 1.30 1.58
Finance Costs 0.03 0.80
Exceptional Items 0.33 0.80
Taxation (Net) 0.03 0.45
Net Profit / (Loss) (2.73) 0.17
Profit / (Loss) available for appropriation (2.73) 0.17
Less: Statutory Reserve - 0.06
Surplus / (Loss) carried to Balance Sheet (2.73) 0.11
OPERATIONs:
During the year under review, the financial services sector especially
small sized NBFC''s were passing through an extremely difficult period.
Your Company also had to bear the brunt of its impact. Further adverse
capital market situation has also adversely effected the operations of
the company.
Dividend:
In view of the loss, your directors do not recommend any dividend for
the Financial Year 2013 - 2014.
DIRECTORS:
Sri. T. Adinarayana, Director of the Company retires by rotation at the
ensuing Annual General Meeting and being eligible, offers himself for
reappointment.
As per the provisions of the Companies Act, 2013, with respect to the
appointment and tenure of Independent Directors, Independent Directors
cannot serve the Company for more than two terms of Five Years, and the
Independent Directors who have already served the Company for ten or
more years can serve for a maximum period of one term of Five Years.
In the light of the New provision of the Companies Act, 2013, Mr. P
Radha Krishna Murthy and Mrs. S. Jhansi Kumari, are proposed to be
appointed as Independent Directors on the Board of the Company for
Consecutive term of Five Years, commencing from 26th September, 2014.
AUDITORS:
M/s. Janardhanrao Deshmukh & Co., Chartered Accountants, the Auditors
of the Company retire at the conclusion of the ensuing Annual General
Meeting and being eligible offer themselves for reappointment. The
Company has received a certificate from the Auditors to the effect that
their re-appointment, if made, would be in accordance with the
provisions of section 139(1) of the Companies Act, 2013 and are
proposed to be appointed as Statutory Auditors of the Company, for a
period of Three consecutive years, subject to ratification at every
Annual General Meeting, as per section 139(2) of the Companies Act,
2013 and the Rules made there under. The Directors recommend their
re-appointment as the Auditors of the Company. Notes forming part of
accounts which are specifically referred to by the Auditors in their
report are self-explanatory and therefore, do not call for any further
comments or explanations.
PUBLIC DEPOSITS:
Your Company has not accepted any public deposits from the public
during the year.
CORPORATE GOVERNANCE:
The Company does not fall under the criteria prescribed for
applicability of Corporate Governance under Clause 49 of the Listing
Agreement.
DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Directors'' responsibility statement, it is
hereby confirmed:
i) that in the preparation of the accounts for the financial year ended
31st March, 2014 the applicable Accounting Standards have been followed
along with proper explanations relating to material departures, if any;
ii) that the Directors have selected such Accounting Policies and
applied them consistently and made judgements and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
Loss of the Company for the year under review:
iii) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safe guarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
iv) that the Directors have prepared the accounts for the financial
year ended 31st March, 2014 on a ''going concern'' basis.
PERSONNEL:
None of the employees were paid remuneration in excess of the limits
prescribed under Section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975 as amended, hence
no details are being provided.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION And
Foreign EXCHANGE Earnings And OUTGO, information under section
217(1)(e) Of The cOMPANIES AcT, 1956:
Since yours is a Finance Company, provisions regarding conservation of
energy and technology absorption are not applicable.
There were no Foreign Exchange earnings and outgo during the year.
COMPLIANCE CERTIFICATE:
The Company has obtained compliance certificate for the financial year
2013-2014, pursuant to the provisions of Section 383 A of the Companies
Act, 1956 from M/s. PS. Rao & Associates, Company Secretaries. A copy
of the same is attached to this Report.
ACKNOWLEDGEMENTS:
Your Directors record their sincere appreciation for the continued
support from the Shareholders, Bankers of the Company and Government
authorities. Your Directors are also pleased to record their
appreciation for the valuable services of all the employees.
For and on behalf of the Board of Directors
Place : Hyderabad (T. Adinarayana)
Date : 29.05.2014 Chairman
Mar 31, 2010
The Directors have pleasure in presenting the Twenty Fourth Annual
Report of the Company with the audited Statement of Accounts for the
year ended 31st March, 2010.
FINANCIAL RESULTS:
The following are the Financial Results of the Company for the year
ended 31st March, 2010:
(Rs.in Lakhs)
Year ended Year ended
31st March, 2010 31st March, 2009
Sales/Income from Operations 26.55 12.65
Profit/(Loss) before
Depreciation & Taxation 11.38 4.23
Depreciation 0.25 0.35
Profit/(Loss) before Taxation 11.13 3.88
Provision for substandard assets
and diminution in value of
investments 8.50 2.81
Provision for Taxation:
a) Current Tax 3.90 0.47
b) Deferred Tax - -
c) Fringe Benefits Tax - 0.05
Transfer to Statutory Reserve - 0.11
Net Profit/(Loss) after Taxation (1.27) 0.44
Balance of Loss brought forward from
Previous year 114.12 114.56
Balance carried to Balance Sheet 115.39 114.12
OPERATIONS:
During the year under review, the financial services sector especially
small sized NBFCs were passing through an extremely difficult period.
Your Company also had to bear the brunt of its impact. Further adverse
capital market situation due to global recession and turmoil has also
adversely effected the operations of the company.
DIRECTORS:
Sri. Y.B.K. Murthy, Director of the Company will retire by rotation at
the ensuing Annual General Meeting and being eligible, offers himself
for reappointment. Sri S. Rushyendrudu, Director of Company has passed
away and the board placed its condolences on his sad demise and its
appreciation for the valuable services rendered by him.
AUDITORS:
M/s. Janardhanrao Deshmukh & Co., Chartered Accountants, retire at the
ensuing Annual General Meeting and being eligible offers themselves for
reappointment.
PUBLIC DEPOSITS:
Your Company has not accepted any public deposits from the public
during the year.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Directors responsibility statement, it is
hereby confirmed:
i) that in the preparation of the accounts for the financial year ended
31st March, 2010 the applicable accounting standards have been followed
along with proper explanations relating to material departures, if any;
ii) that the Directors have selected such accounting policies and
applied them consistently and made judgements and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
Loss of the Company for the year under review.
iii) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safe guarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
iv) that the Directors have prepared the accounts for the financial
year ended 31st March, 2010 on agoing concern basis.
PERSONNEL:
None of the employees were paid remuneration in excess of the limits
prescribed under Section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975 as amended, hence
no details are being I provided.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO, INFORMATION UNDER SECTION 217(1)
(e) OF THE COMPANIES ACT, 1956:
Since yours is a Finance Company, provisions regarding conservation of
energy and technology absorption are not applicable.
There were no Foreign Exchange earnings and outgo during the year.
COMPLIANCE CERTIFICATE :
The Company has obtained compliance certificate for the financial year
2009-2010, pursuant to the provisions of Section 383 A of the Companies
Act, 1956 from M/s. P.S. Rao & Associates, Company Secretaries. A copy
of the same is attached to this Report.
ACKNOWLEDGEMENTS:
Your Directors record their sincere appreciation for the continued
support from the Share holders, Bankers of the Company and Government
authorities. Your Directors are also pleased to record their
appreciation for the valuable services of all the employees.
For and on behalf of the Board of Directors
Place : Hyderabad (T. ADINARAYANA)
Date : 31.05.2010 Chairman
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