Mar 31, 2017
To,
Members of
Viji Finance Limited
The Directors are pleased to present the 23rJ Annual Report on the business'' and operation of the Company together with the Standalone and Consolidated Audited Financial Statements for the year ended March 31,2017.
1. STATE OF AFFAIRS, FINANCIAL PERFORMANCE AND FUTURE OUTLOOK:
1.1 FINANCIAL HIGHLIGHTS AND SUMMARY OF STANDALONE AND CONSOLIDATED AUDITED FINANCIAL STATEMENTS
The performance highlights and summarized financial results of the Company are given below:
(Rupees in Lakhs)
Particulars |
Standalone |
Consolidated |
||
Year ended 31rf March 2017 |
Year ended 31st Match 2016 |
Year ended 31st Match 2017 |
Year ended 31st March 2016 |
|
Total Income |
160.73 |
137.03 |
171.89 |
137,03 |
Total Expenditure |
66,40 |
79.73 |
78.31 |
79.73 |
Profit/Loss before tax |
94.33 |
57.30 |
93.57 |
57,30 |
Provision for Tax Current Tax Deferred Tax Earlier Year Tax |
30.34 02.02 01.34 |
19.80 0.78 02.28 |
30.82 (0.58) 01.34 |
19.80 0,78 02.29 |
Profit/Loss after tax |
60.62 |
34.42 |
62.00 |
34,43 |
Amount available for appropriation |
||||
Appropriations: |
||||
(a) Transferred to Statutory Reserve |
12.12 |
06.88 |
12.12 |
06,88 |
(b) Proposed Dividend on Equity Shares |
07.50 |
22.50 |
07.50 |
22,50 |
(c) Tax on Proposed Dividend |
01.52 |
04.58 |
01.52 |
04,58 |
Surplus Carried to Balance Sheet |
||||
Paid up Equity Share Capital |
750.00 |
750.00 |
750.00 |
750,00 |
Earnings per share (Re, 1 /- each) Basic & Diluted (in Rs,) |
0,081 |
0.046 |
0.083 |
0.046 |
The Company is engaged in a fast growing section NBFC where the demand of the finance is increasingly rapidly. During the financial year company has achieved total income of Rs. 160.73 Lacs in comparison to previous year''s total income of Rs. 137.03 Lacs on standalone basis and earned net profit of Rs, 60.62 Lacs in comparison to previous year''s net profit of Rs. 34.42 LaCS, Net profit of the company has been increased by 76.12%.
1.2 CHANGE IN NATURE OF BUSINESS
Company is engaged in NBFC activities only and during the year there was no change in business activities of the company.
1.3 SHARE CAPITAL
The Paid-Up Equity Share Capital as at 31st March 2017 stood at 7.50 Crores. During the year under review Company has passed special resolution for sub division of equity Shares from the face value of Rs.10/- per share to face value of Re. l/- per share in Extra Ordinary General Meeting held on Saturday 08th October, 2016. With effect from 25th October, 2016 face value of the shares has been changed from Rs. 10/- each to Re 1/- each. Also, the company has not issued shares with differential voting rights nor has granted any stock option or sweat equity shares. As on 31st March 2017, none of the Directors of the company hold instruments convertible into equity shares of the Company.
2. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9, as required under Section 92 of the Companies Act, 2013, is annexed as Annexure - A and forms an integral part of this Report
3. NUMBER OF MEETINGS OF THE BOARD, ITS COMMIITTEES & AGM
The details of the number of meetings of the Board and its committee held during the Financial Year 2016-17 forms part of the Corporate Governance Report. Further Annual General Meeting of the Company for financial year was held on 26l)1 September, 2016.
4. DIVIDEND
Looking at the consistent performance of the company, your Directors are pleased to recommend a final dividend of 1 % on the equity shares i.e. Re. 0.01/- per Equity Share of face value Re. 1/- each aggregating to Rs. 7.50 lacs for financial year 2016-17 subject to Approval of the members in ensuing Annual General Meeting.
5. AMOUNTS TRANSFERRED TO RESERVES
Being a Non Banking Finance Company, 20% of the profit Le Rs. 12,12,502/- has been transferred to statutory reserve of the company. Further during the year the Board of the company has carried Rs 44,96,080/- to surplus account.
6. DEPOSITS
The Company has not accepted any deposits, within the meaning of Section 73 of the Companies Act, 2013, read with the Companies (Acceptance of Deposits) Rules, 2014.
However, being a Norik-Banking Financial Company, the disclosures required as per Rule 8 (5){v) and (vi) of the Companies (Accounts) Rules, 2014 read with Sections 73 and 74 of the Companies Act, 2013, are not applicable to the Company.
UNSECURED LOAN FROM DIRECTOR
Further Company has received unsecured loan amounting Rs.2,89,60,390/- from Mr. Vijay Kothari director of the Company and details of the same has been disclosed in notes to the financial statement.
7. RBI NORMS
The Company continues to fulfill all the norms and standards laid down by the Reserve Bank of India (RBI) pertaining to capital adequacy, statutory liquidity ratio etc. and further company is not having non-performing assets as on 31March, 2017. Certificate from statutory auditors for complying the prudential norms for NBFC is attached with Audit report.
7.1 KNOW YOUR CUSTOMER AND ANTI MONEY LAUNDERING MEASURE POLICY
Your board ha.4 approved the Know Your Customer and Anti Money Thundering Policy (KYC and PMLA Policy) in accordance with RBJ Guidelines. Company also adheres to the compliance requirement in terms of the said policy including monitoring and reporting of cash and suspicious transactions. There were no suspicious transactions noticed d u ring the period.
7.2 FAIR PRACTICE CODE:
Your company bps in place a fair practice code (FPC), as per RBI Regulations which includes guidelines from appropriate staff conduct when dealing with the- customers and on the organizations policies vis-a-vis client protection. Your company and its employees duly complied with the provisions of FPC.
8. SUBSIDIARIES COMPANIES, JOINT VENTURE OR ASSOCIATES COMPANIES
Your Company has two wholly owned Subsidiaries i.e. S.L. Developers Private Limited and Viji Housing Finance Limited. Financials to the Subsidiaries are disclosed in the Consolidated Financial Statements, which form part of this Annual Report. A statement containing salient features of the Financial Statements of the Subsidiaries are annexed to this Report as ANNEXURE B pursuant to Section 129(3) of the Companies Act, 2013 and the rules made there under in the prescribed form, AOC-1 and hence not repeated here for sake of brevity. The Company does not have any joint venture or associate Company.
In accordance with third proviso to Section 136(1) of the Companies Act, 2013, the Annual Report of your Company, containing inter alia the audited standalone and consolidated financial statements, has been placed on the website of the Company at www.vijifinance.com. Further, audited financial statements together with related information and other repeats pf each of the subsidiary companies have also been placed on the website of the Company at www.viiifinance.com.
In terms of Section \% of the Companies Act, 2013 (''the Act''), financial statement?: of the subsidiary companies are not required to he sent to the members of the Company.
The Company shall provide a copy of the annual accounts of its subsidiary companies to the members of the Company on their request. The annual accounts of its subsidiary companies will also be kept open for inspection at the registered office of the Company during business hours.
9. CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the Accounting Standard AS-21 on consolidated financial statement, your directors provide the Audited Consolidated Financial statements in the Annual
10. DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Company''s Articles of Association, Shri IVlanish ''I ambi , Whole Time Director, retires by rotation at the forthcoming Annual General Meeting and, being eligible offers himself for reappointment. The Board recommends his re-appointment for the consideration of the Members of the Company at the ensuing Annual General Meeting,
During the year under review, there was no change in the Board of Directors of the Company. The following have been designated as the Key Managerial Personnel of the Company pursuant to sections 2(51) and 203 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:
During the year declarations were received from the Directors of the Company pursuant to Section 164 of the Companies Act, 2013. Board appraised the same and found that none of the director is disqualified for holding office as director.
11. DECLARATION BY INDEPENDENT DIRECTOR
The Company has received declarations from all the Independent Directors of the Company confirming that they fulfill the criteria of independence as prescribed under sub-section (6) of Section 149 of the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015
12-DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to section 134(5) of the Companies Act, 2013, the board of directors, to the best of their knowledge and ability, confirm that:
i. in the preparation if in of the annual accounts,, the applicable accounting standards have been followed and there are no material departures in adoption of these standards;
ii. the Directors have selected such accounting policies and applied them consistently anti made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the slate of affairs of the Company at the end of the financial year and of the profit of the Company for that period;
iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. the Directors have prepared the annual accounts on a going concern basis;
v. the Directors have laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively;
vi. the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively,
13, FAMILIARIZATION OF INDEPENDENT DIRECTORS
The details of familiarization programme for Independent Directors have been disclosed at web link of the Company; http:/ / vijifina nee, com/wp-con tent/ uploads/2(n 7/04/ New-Familiarization Programme for Independent Directors.pdf
14, MELTING OF INDEPENDENT DIRECTORS
The Independent Directors met once during the year as on 14th February, 2017. The Meeting was conducted in an informal manner without the presence of the Chairman, the Whole Time Director, the Non-Executive Non-Independent Directors and the Chief Financial Officer.
15-COMMITTEES OF THE BOARD OF DIRECTORS
The Company has various committees which have been constituted as a part of the good corporate governance practices and the same are in compliance with the requirements of the relevant provisions of applicable laws and statutes. Your Company has an adequately qualified and experienced Audit Committee with Shri Suresh Singh Jain (Chairman), Ms. Roshani Maheshwari and Shri Hiren Kamdar, as Members, The recommendations of the Audit Committee were duly approved and accepted by the Board during the year under review.
The other Committees of the Hoard are:
(i) Nomination and Remuneration Committee
(ii) Stakeholders Relationship Committee
(iii) Finance Committee
(iv) Sub; Committee of Directors
The details with respect to the composition, powers, roles, terms of reference, Meetings held and attendance of the Directors at such Meetings of the relevant Committees arc given in detail in the Report on Corporate Governance of the Company which forms part of this Report.
16. STATEMENT INDICATING THE MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE, ITS DIRECTORS, AND THAT OF ITS COMMITTEES
The Board of directors has carried out an annual evaluation of its own performance, board committees and individual directors pursuant to the provisions of the Act and the corporate governance requirements as prescribed by Securities and Exchange Board of India |Listing Obligations and Disclosure Requirements), Regulations 2015 ("SFTFL Listing Regulations").
The performance of the directors was evaluated by the board after seeking inputs from all the directors on the basis of the criteria such as the board composition and structure, effectiveness of board process, information and functioning, etc.
The performance of the committees was evaluated by the board after seeking inputs from the committee members on the basis of the criteria such as the composition of committees, effectiveness! of committee meetings, etc. The board and the nomination and remuneration committee reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director to the board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc. In addition, the chairman was also evaluated on the key aspects of his role.
Performance Evaluation Criteria for Independent Directors:
The performance evaluation criteria for independent directors are determined by the Nomination and Remuneration committee. An indicative list of factors that may be evaluated include participation and contribution by a director, commitment, effective deployment of knowledge and expertise, effective management of relationship with stakeholders, integrity and maintenance of confidentiality and independence of behavior and judgments
17. PARTICULARS OF LOAN, GUARANTEES AND INVESTMENTS U/S 186
Pursuant to section 186 (11) of the Companies Act, 2013 (''the Act''), the provisions of section 186(4) of the Act requiring disclosure in the financial statement of the full particulars of the loans made and guarantees given or securities provided by a Non-Ban king Financial Company in the ordinary course of its business and the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient of the loan or guarantee or security are exempted from disclosure in the Annual Report.
Further, pursuant to the provisions of Section 186 (4) of the Act, the details of investments made by the Company are given in the Notes to the Financial Statement.
18. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All transactions entered with Related Parties for the year under review were on arm''s length basis and in the ordinary course of business pursuant to I he provisions of Station 188 of the Companies Act, 2033 and the Rules made there under. Further disclosure in form AOC-2 in terms of Section 134 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 is set out as Annexure C.
The Details of the related party transactions as required under Accounting standard -18 are set out in Note 34 to the financial statement forming part of this Annual Report.
All Related Party Transactions are placed before the Audit Committee and the Board for review and approval on a quarterly basis. Omnibus approval was obtained on a quarterly basis for transactions which are of repetitive nature.
The policy on Related Party Transactions as approved by the Board of Directors has boon uploaded on the website of the Company. The web-link of the same has been provided in the Corporate Governance Report. None of the Directors has any pecuniary relationship or transactions vis-a-vis the Company.
19. CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars in respect of conservation of energy, technology absorption and foreign exchange earnings and outgo, as required under sub-section (3) (m) of section 134 of the Companies Act, 2013 read with Rule (8)(3) of the Companies (Accounts) Rules, 2014 are given as under ;
(A) Conservation of Energy
The steps taken or impact on conservation of energy:
(i) The operations of your Company are not energy intensive. However, adequate measures have been initiated to reduce energy consumption.
(ii) The capital investment on energy conservation equipments: Nil
(B) Technology Absorption:
(i) The efforts made towards technology absorption: Not Applicable.
(ii) The benefits derived like product improvement, cost reduction, product development or import substitution: Not Applicable,
(iii) in case of imported technology (imported during the last three years reckoned from the beginning of the Financial Year): Not Applicable.
(iv) Company has not incurred any expenditure on Research and Development during the year under review.
Further there was neither inflow'' nor outflow of foreign exchange during the year.
20. STATEMENT IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROL WITH REFERENCE TO THE FINANCIAL STATEMENTS.
Your company has an effective internal control and risk mitigation system, which are constantly assessed and strengthened with new/ revised standard operating procedures. The company''s internal control system is commensurate with its size, scale and complexities of; its operations; the internal and operational audit is entrusted to M/s. Shy am Nagori & Company, Chartered Accountants. The main thrust of internal audit is to test and review controls, appraisal of risks and business processes, besides benchmarking controls with best practices in the industry.
The audit committee of the board of directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The company has a robust management information system, which is an integral part of the control mechanism.
The audit committee of the board of directors, statutory auditors and the business heads are periodically apprised of the internal audit findings and corrective actions taken. Audit plays a key role in providing assurance to the Board of Directors. Significant audit observations and corrective actions taken by the management are presented to the audit committee of the board. To maintain its objectivity and independence, the internal audit function reports to the chairman of the audit committee, Report of statutory auditors for internal! financial control system is part of Audit Report.
2T CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY
Provisions of section 135 of the Companies Act, 2013 does not apply to the Company, therefore Company has not constituted Corporate Social responsibility (CSR) committee as required under the Act.
22. REMUNERATION POLICY / DISCLOSURE RELATING TO REMUNERATION OF DIRECTORS, KEY MANAGERIAL PERSONNEL AND PARTICULARS OF EMPLOYEES:
In accordance with Section 178 and other applicable provisions if any, of the Companies Act 2013 read with the Rules issued there under and the SRBT (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors formulated the Nomination and Remuneration Policy of your Company on the recommendations of the Nomination and Remuneration Committee. The Nomination and Remuneration Policy of the company is annexed as Annexure-D and forms an integral part of this report.
The Disclosure required under Section 197(12) of the Companies Act, 2013 read with the Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended up to date, is annexed as Annexure - E and forms an integral part of this Report
None of the employee of the company is drawing more than Rs.1,02,00,000/- per annum or Rs.8,50,000/- per month for the part of the year, during the year under review therefore Particulars of the employees as required under Section 197 of Companies Act, 2013 read with rule 5 (2) & rule 5 (3] of Companies [Appointment and Remuneration of Managerial Personnel) Rules 20 14 are not applicable, during the year under review. Further none of the Director has drawn any commission or remuneration from its subsidiary companies i.e. Viji Housing Finance Limited & S.L. Developers Pvt. Ltd. as provided under section 197 (14) of Companies Act, 2013.
23. REPORT ON CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION ANALYSIS.
As per Regulation 34 (3) read with Schedule V of the SEBJ (listing Obligations and Disclosure Requirements) Regulations, 2015, a separate section on corporate governance practices followed by the Company, together with a certificate from the practicing Company Secretary confirming compliance forms an integral part of this Report.
24. DISCLOSURE ON ESTABLISHMENT OF A VIGIL MECHANISM/WHISTLE BLOWER POLICY
The Company has a whistle blower policy to report genuine concerns or grievances. The details of establishment of the reporting mechanism are disclosed on the website of the Company at the web link:- http://vijifinance.com,cp-in-5.webhostbox.net/wp-content/uploads/2016/12/Whistlc-Blower.pdf. No Person has been denied access to the Audit Committee,
25. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY.
There are no significant and material orders passed by the Regulators/Courts that would impact the going concern status of the Company and its future operations .
26. SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the company has appointed M/s. Ramesh Chandra Bagdi & Associates, Practicing Company Secretary, to Conduct Secretarial Audit of the company. The Secretarial Audit report is annexed as ANNEXURE-F and forms an integral part of this Report. Further, the report is self explanatory and do not call for any further comments.
27. STATUTORY AUDITORS
Pursuant to the provisions of section 139 of the Act and the rules framed there under, M/s Spark & Associates, Chartered Accountants (Firm Registration No.0053l3C) were appointed as statutory auditors of the Company from the conclusion of the 21 annual general meeting (AGM) of the Company held on 17.09.2015 till the conclusion of the 24''1'' AGM to be held in the year 2018, subject to ratification of their appointment at every AGM.
M/s. Spark & Associates, Chartered Accountants {Firm Registration !\To,005-313C) who are Statutory Auditors of the Company hold office up to the forthcoming Annual General Meeting and are recommended for rati Mcation for the financial year 2017-1 S. As required under the provisions of Section 139 of the Companies Act, 2013, die Company has obtained written Confirmation from M/s, Spark & Associates; Chartered Accountants for their appointment, if made, would be in conformity with the limits specified in the said Section
EXPLANATION TO AUDITOR''S REMARKS
The Auditors in their report have referred to the notes forming part of the Accounts which are self-ex pi an a tow and does not contain any qualification, reservation or adverse remark or disclaimer.
Further there was no fraud in the Company, which was required to report by statutory auditors of the Company under sub-section (12) of section 143 of Companies Act, 2013.
28. INTERNAL AUDITORS
The Board has appointed M/s. Shyam Nagori & Company, Chartered Accountant, as Internal Auditor of the company and takes his suggestions and recommendations to improve and strengthen the internal control systems. If is scope of work includes review of operational efficiency, effectiveness of systems & processes, compliances and assessing the internal control strengths in all areas.
The Audit Committee reviews adequacy and effectiveness of the Company''s internal control environment and monitors the implementation of audit recommendations including those relating to strengthening of the Company''s risk management policies and systems.
29. CODE OF CONDUCT
The Company has laid down a code of conduct for all Board members and senior management and independent directors of the Company. All the Board members including independent directors and senior management personnel have affirmed compliance with the code of conduct. Declaration on adherence to the code of conduct is forming part of the Corporate Governance Report.
30. CEO/CFO CERTIFICATION
As required under Regulation 17(8) of the Listing Regulations, the Whole Time Director and Chief Financial Officer of the Company have certified to the Board regarding the Financial
31. CODE FOR PROHIBITION OF INSIDER TRADING PRACTICES:
Your Company has adopted the code as per SEBI (Prohibition of Insider Trading) Regulations, 2015, which has been effective from 15r May, 2015. The Details of the said code is available on website of the Company at the web link httpr/Mifinance.coni.co-in-5.webhostbox.net/wp-content/ualo3ds/2016/12/Fair-Disclosure -viji.pdf
32. STATEMENT INDICATING DEVELOPMENT & IMPLEMENTATION OF RISK MANAGEMENT POLICY:
The Board of Directors has adopted risk management policy for the Company which provides for identification, assessment and control of risks which in the opinion of the Board may threaten She existence of the Company, The Management identifies and controls risks through a properly defined framework in terms of the aforesaid policy.
33. MATERIAL CHANCES & COMMITMENTS, IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY
No material changes and commitments affecting the financial position of the company have occurred between the end of the financial year to which the financial statements relate and the date of this Board''s report.
34. ENVIRONMENT AND SAFETY
The Company is conscious of the importance of environmentally clean and safe operations. The Company''s policy requires conduct of operations in such a manner, so as to ensure safety of all concerned, compliances environmental regulations and preservation of natural resources.
35. SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDKESSAL) ACT, 2013
The Company has in place an Anti Sexual Harassment Policy in line with the requirements of The Sexual harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee (ICC) has been set up to redress the Complaint received regarding sexual harassment. There was no case of sexual harassment reported during the year under review.
36. LISTING OF SHARES
It''s a matter of pleasure that the equity'' shares of the company got listed on National Stock Exchange of India Limited w.e.f 11th day of July, 2016. Further, shares of the company are also listed on Bombay Stock Exchange Limited & Kolkata Stock Exchange. The company has to pay annual listing fee for financial year 2017-18 for stock exchanges.
37. INSURANCE
The Company''s assets are adequately insured against the loss of fire and other risk, as considered necessary by the Management from time to time. The Company has also taken insurance never for any claims/losses arising out of its core business of security broking.
38. BUSINESS RESPONSIBILITY REPORT
The Business Responsibility Reporting as required by Regulation 34(2) of the SEBI (Listing Obligations &: Disclosure Requirements) Regulations, 2015, is not applicable to your Company for the financial year ending March 31,2017.
39. DEPOSITORY SYSTEM
Your Company''s shares arc tradable compulsorily in electronic form and your Company has connectivity with both the Depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Service (India) Limited (CDSL). In view of the numerous advantage offered by the Depository System, members are requested to avail of the facility of Dematerialization of the Company''s shares on either of the Depositories mentioned as aforesaid. The Company has paid the annual custodian fee to the respective depositories.
40. INDUSTRIAL RELATIONS:
Company''s Industrial relations continued to be healthy, cordial and harmonious during the period under review.
The Board of Directors wish to place on record its appreciation for the extended co-operation and assistance rendered to the Company and acknowledge with gratitude the continued support and cooperation extended by the investors, stakeholders, Reserve Bank of India, Banks and other regulatory authorities.
Place: Indore For and on behalf of the Board of Directors
VIJI FINANCE LIMITED
Vijay Kothari Manish Tambi
Director Whole Time Director
DIN : 00172878 DIN: 0017283
Mar 31, 2016
BOARD''S REPORT Members of Viji Finance Limited
The Directors are pleased to present the 22nd Annual Report on the business and operation of the Company together with the Audited Financial Statements for the year ended March 31, 2016.
1. STATE OF AFFAIRS, FINANCIAL PERFORMANCE AND FUTURE OUTLOOK:
1.1 FINANCIAL HIGHLIGHTS AND SUMMARY
The performance highlights and summarized financial results of the Company are given below:
(Rupees in Lakhs) |
||
Particulars |
Year ended 31st March 2016 |
Year ended 31st March 2015 |
Total Income |
137.03 |
132.47 |
Total Expenditure |
79.73 |
39.92 |
Profit/Loss before tax |
57.30 |
92.55 |
Provision for Tax |
||
Current Tax |
19.80 |
30.22 |
Deferred Tax |
0.78 |
(0.12) |
Provision for tax reversal |
229 |
2.71 |
Profit Toss after tax |
34.43 |
59.74 |
Amount available for appropriation |
34.43 |
59.74 |
Appropriations: |
||
(a) Transferred to Statutory Reserve |
6.89 |
11.94 |
(b) Proposed Dividend on Equity Shares |
22.50 |
22.50 |
(c) Tax on Proposed Dividend |
4.58 |
4.58 |
(d) Adjustment for schedule II |
0.00 |
0.06 |
Surplus Carried to Balance Sheet |
0.46 |
20.66 |
Paid up Equity Share Capital |
750.00 |
750.00 |
Earnings per share (Rs.10/- each) Basic & Diluted (in Rs.) |
0.46 |
0.80 |
The Company is engaged in a fast growing section NBFC where the demand of the finance is increasingly rapidly. During the financial year company has achieved total income of Rs. 137.03 Lacs in comparison to previous year''s total income of Rs. 132.47 Lacs and earned net profit of Rs. 34,43 lacs in comparison to previous year''s net profit of Rs. 59.74 Lacs. Due to increase in administrative expenses profit of the company has been decreased by42.36%.
The year 2015 was a disappointment because of weak macroeconomic situation, coupled with delays in the reform process and uncertainty in global markets
. But there are enough reasons to be optimistic about 2016. NBFCs are well positioned to benefit from economic growth and see enough, value across the sector.
1.2 CHANGE IN NATURE OP BUSINESS
Company is engaged in NBFC activities only and during the year there was no change in business activity of the company.
1.3 SHARE CAPITAL
The Paid-Up Equity Share Capital as at 31 st March 2016 stood at 7.50 Crores. During the year under review, the company has not issued shares with differential voting rights nor has granted any stock option or sweat equity shares. As on 31st March 2016, none of the Directors of the company hold instruments convertible into equity shares of the Company.
2. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9, as required wider Section 92 of the Companies Act, 2013, is annexed as Annexure - A and forms an integral part of this Report
3. NUMBER OP MEETINGS OF THE BOARD, ITS COMMHTTEES & AGM
The details of the number of meetings of the Board and its committee held during the Financial Year 2015-16 forms part of the Corporate Governance Report. Further Annual general meeting of the Company for financial year was held on 17th September, 2015
4. DIVIDEND
Looking at the consistent performance of the company, your Directors are pleased to recommend a final dividend of 3% on the equity shares i.e. Re. 0.30/- per Equity Share of face value Rs. 10/- each aggregating to Rs.22.50 lacs for financial year 2015-16 subject to Approval of the members in ensuing Annual General Meeting.
5. AMOUNTS TRANSFERRED TO RESERVES
Being a Non Banking Finance Company, 20% of the profit i.e 6,88,509/- has been transferred to statutory reserve of the company. Further during the year the Board of the company has carried Rs 5,48,753/- to surplus account.
6. DEPOSITS
The Company has not accepted any deposits, within the meaning of Section 73 of the Companies Act, 2013, read with the Companies (Acceptance of Deposits) Rules, 2014. However, being a Non Banking Financial Company, the disclosures required as per Rule 8 (5)(v) and (vi) of the Companies (Accounts) Rules, 2014 read with Sections 73 and 74 of the Companies Act, 2013, are not applicable to the Company.
UNSECURED LOAN FROM DIRECTOR ll J
Further Company has received unsecured loan amounting Rs. 11543890/- from MrVijay ^ Kothaii director of the Company and details of the same has been disclosed in notes to the financial statement.
7. RBI NORMS
The Company continues to fulfill all the norms and standards laid down by the Reserve Bank of India (RBI) pertaining to capital adequacy, statutory liquidity ratio etc. and further company is not having non-performing assets as on 31st March, 2016. Certificate from statutory auditors for complying the prudential norms for NBFC is attached with Audit report.
7.1 KNOW YOUR CUSTOMER AND ANTI MONEY LAUNDERING MEASURE POLICY
Your board has approved the Know your Customer and Anti money Laundering Policy Measure policy (KYC and PMLA Policy) in accordance with RBI Guidelines. Company also adheres to the compliance requirement in terms of the said policy including the monitoring and reporting of cash and suspicious transactions. There were no suspicious transactions noticed during the period.
7.2 FAIR PRACTICE CODE:
Your company has in place a fair practice code (FPC), as per RBI Regulations which includes guidelines from appropriate staff conduct when dealing with the- customers and on the organizations policies vis-a-via client protection, Your company and its employees duly complied with the provisions of FPC.
8. DETAILS OF SUBSIDIARY, JOINT VENTURE OR ASSOCIATES
During the financial year ended on 31.03.2016 the Company did not have any subsidiary, joint venture or associate company. Further Company has acquired 100% holding of M/s S.L. Developers Private Limited with effect from 26th May, 2016 and S.L. Developers Private Limited becomes the wholly owned subsidiary Company of Viji Finance Limited.
9. DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Company''s Articles of Association, Shri Vijay Kothari, Director, retires by rotation at the forthcoming Annual General Meeting and, being eligible offers himself for re-appointment. The Board recommends his reappointment for the consideration of the Members of the Company at the ensuing Annual General Meeting.
Further, Mr. Bhushan Tambe. resigned from the post of the Company Secretary and Compliance officer (KMP] with effect from 31st March, 2016 and Ms. Stuti Sinha was appointed as Company Secretary and Compliance officer (KMP) of the Company w.e.f. 01.04.2016.
During the year under review, there was no change in the Board of Directors of the Company. The following have been designated as the Key Managerial Personnel of the Company pursuant to sections 2(51) and 203 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:
1. Manish Tambi, Whole Time Director
2. Ms Stuti Sinha, Company Secretary and Compliance officer
3. Siddhant Sharma, Chief Financial officer
DISQUALIFICATIONS OF DIRECTORS
During the year declarations were received from the Directors of the Company pursuant to Section 164 of the Companies Act, 2013. Board appraised the same and found that none of the director is disqualified for holding office as director.
10. DECLARATION BY INDEPENDENT DIRECTOR
The Company has received declarations from all the Independent Directors of the Company confirming that they fulfill the criteria of independence as prescribed under sub-section (6) of section 149 of the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015
11. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to section 134(5) of the Companies Act, 2013, the board of directors, to the best of their knowledge and ability, confirm that:
i. in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures in adoption of these standards;
ii. The Directors have selected such accounting policies and applied them 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 and of the profit of the Company for that period;
iii. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. The Directors have prepared the annual accounts on a going concern basis;
v. The Directors have laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively;
vi. The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
11. FAMILIARIZATION OF INDEPENDENT DIRECTORS I
The details of familiarization programme for Independent Directors have been disclosed at We blink of the Company:
http: / / www.vijifinance.cam/pdf/Famili arization_Prograimne_for_Independent_Directors.pdf
12. MEETING OF INDEPENDENT DIRECTORS
The Independent Directors met once during the year as on 31st March, 20IS. The Meeting was conducted in an informal manner without the presence of the Chairman, the Whole Time Director, the Non-Executive Non-Independent Directors and the Chief Financial Officer.
13. COMMITTEES OF THE BOARD OF DIRECTORS
The Company has various committees which have been constituted as a part of the good corporate governance practices and the same are in compliance with the requirements of the relevant provisions of applicable laws and statutes. Your Company has an adequately qualified and experienced Audit Committee with Shri Suresh Singh Jain (chairman), Ms. Roshani Maheshwari and Shri Hiren Kamdar, as Members. The recommendations of the Audit Committee were duly approved and accepted by the Board during the year under review.
The other Committees of the Board are:
(i) Nomination and Remuneration Committee
(ii) Stakeholders Relationship Committee
(iii) Finance Committee
(iv) Sub Committee of Directors
The details with respect to the composition, powers, roles, terms of reference, Meetings held and attendance of the Directors at such Meetings of the relevant Committees are given in detail in the Report on Corporate Governance of the Company which forms part of this Report.
14. STATEMENT INDICATING THE MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE, ITS DIRECTORS, AND THAT OF ITS COMMITTEES
The Board of directors has carried out an annual evaluation of its own performance, board committees and individual directors pursuant to the provisions of the Act and the corporate governance requirements as prescribed by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations 2015 (âSEBI Listing Regulationsâ).
The performance of the board was evaluated by the board after seeking inputs from all the directors on the basis of the criteria such as the board composition and structure, effectiveness of board processes, information and functioning, etc.
The performance of the committees was evaluated by the board after seeking inputs from the committee members on the basis of the criteria such as the composition of committees, effectiveness of committee meetings, etc. The board and the nomination and remuneration committee reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director to the board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc. In addition, the chairman was also evaluated on the key aspects of his role.
PERFORMANCE EVALUATION CRITERIA FOR INDEPENDENT DIRECTORS:
The performance evaluation criteria for independent directors are determined by the Nomination and Remuneration committee. An indicative list of factors that may be evaluated in dude participation and contribution by a director, commitment, effective deployment of knowledge and expertise, effective management of relationship with stakeholders, integrity and maintenance of confidentiality and independence of behavior and judgments
15. PARTICULARS OF LOAN, GUARANTEES AND INVESTMENTS U/S 186
Pursuant to section 186(11) of the Companies Act, 2013 (''the Act''), the provisions of section 18 6(4) of the Act requiring disclosure in the financial statement of the full particulars of the loans made and guarantees given or securities provided by a Non-Banking Financial Company in the ordinary course of its business and the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient of the loan or guarantee or security are exempted from disclosure in the Annual Report.
Further, pursuant to the provisions of Section 186 (4) of the Act, the details of investments made by the Company are given in the Notes to the Financial Statement.
16. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All transactions entered with Related Parties for the year under review were on arm''s length basis and in the ordinary course of business pursuant to the provisions of Section 188 of the Companies Act, 2013 and the Rules made there under. Further disclosure in form AOC-2 in terms of Section 134 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 is set out as
Annexure B.
The Details of the related party transactions as required under Accounting standard -18 are set out in Note 31 to the financial statement forming part of this Annual Report.
All Related Party Transactions are placed before the Audit Committee and the Board for review and approval on a quarterly basis. Omnibus approval was obtained on a quarterly basis for transactions which are of repetitive nature.
The policy on Related Party Transactions as approved by the Board of Directors has been uploaded on the website of the Company. The web-link of the same has been provided in the Corporate Governance Report. None of the Directors has any pecuniary relationship or transactions vis-a-vis the Company.
17. CONSERVATION OF ENERG7, TECHNOLOGY, ABSORPTION, FOREIGN O J EXCHANGE EARNINGS AND OUTGO
The particulars in respect of conservation of energy, technology absorption and foreign exchange earnings and outgo, as required under sub-section (3) (m) of section 134 of the Companies Act, 2013 read with Rule (8)(3) of the Companies (Accounts) Rules, 2014 are given asunder:
(A) Conservation of Energy
The steps taken or impact on conservation of energy:
(i) The operations of your Company are not energy intensive. However, adequate measures have been initiated to reduce energy consumption.
(ii) The capital investment on energy conservation equipments: Nil
(B) Technology Absorption:
(i) The efforts made towards technology absorption: Not Applicable.
(ii) The benefits derived like product improvement, cost reduction, product development or import substitution: Not Applicable.
(iii) In case of imported technology (imported during the last three years reckoned from the beginning of the Financial Year): Not Applicable.
(iv) Company has not incurred any expenditure on Research and Development during the year under review.
Further there was neither inflow nor outflow of foreign exchange during the year.
18. STATEMENT IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROL WITH REFERENCE TO THE FINANCIAL STATEMENTS.
Your company has an effective internal control and risk mitigation system, which are constantly assessed and strengthened with new/revised standard operating procedures. The company''s internal control system is commensurate with its size, scale and complexities of its operations; the internal and operational audit is entrusted to M/s. Shyam Nagori & Company, Chartered Accountants. The main thrust of internal audit is to test and review controls, appraisal of risks and business processes, besides benchmarking controls with best practices in the industry.
The audit committee of the board of directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The company has a robust management information system, which is an integral part of the control mechanism.
The audit committee of the board of directors, statutory auditors and the business heads are periodically apprised of the internal audit findings and corrective actions taken. Audit plays a key role in providing assurance to the Board of Directorâs. Significant audit observations and corrective actions taken by the management are presented to the audit committee of the board. To maintain its objectivity and independence, the internal audit function reports to the chairman of the audit committee. Report of statutory auditors for internal financial control system is part of Audit Report.
19. CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY
Provisions of section 135 of the Companies Act, 2013 does not apply to the Company, therefore Company has not constituted Corporate Social responsibility (CSR) committee as required under the Act.
20. REMUNERATION POLICY / DISCLOSURE RELATING TO REMUNERATION OF DIRECTORS, KEY MANAGERIAL PERSONNEL AND PARTICULARS OF EMPLOYEES:
In accordance with Section 178 and other applicable provisions if any, of the Companies Act, 2013 read with the Rules issued there under and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors formulated the Nomination and Remuneration Policy of your Company on the recommendations of the Nomination and Remuneration Committee. The Nomination and Remuneration Policy of the company is annexed as Annexure-C and forms an integral part of this report.
The Disclosure required under Section 197(12) of the Companies Act, 2013 read with the Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended up to date, is annexed as Annexure - D and forms an integral part of this Report
None of the employee of the company is drawing more than Rs. 1,02,00,000/- per annum or Rs.8,50,000/- per month for the part of the year, during the year under review therefore Particulars of the employees as required under Section 197 of Companies Act, 2013 read with rule 5 (2) & rule 5
(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 are not applicable, during the year under review.
Further Company did not have any holding or subsidiary company therefore receipt of the commission or remuneration from holding or subsidiary company of the company as provided under section 19 7 {14) of Companies Act, 2 013 is not applicable.
21. REPORT ON CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION ANALYSIS.
As per Regulation 34 (3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate section on corporate governance practices followed by the Company, together with a certificate from the practicing Company Secretary confirming compliance forms an integral part of this Report.
22. DISCLOSURE ON ESTABLISHMENT OF A VIGIL MECHANISM/WHISTLE BLOWER POLICY
The Company has a whistle blower policy to report genuine concerns or grievances. The details of establishment of the reporting mechanism are disclosed on the website of the Company at the we blink: http: //www, vijifinance.com/pdf/Whistle-Blower.pdf No Person has been denied access to the Audit Committee.
23. SIGNIFICANT AND MATERIAL ORDERS PASSED BT THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY.
There are no significant and material orders passed by the Regulators/Courts that would impact the going concern status of the Company and its future operations except suspension of listing of the shares by Bombay Stock Exchange due to surveillance reason and after submission of document suspension was revoked by BSE.
24. SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the company has appointed M/s. Ramesh Chandra Bagdi & Associates, Practicing Company Sccrctaiy, to undertake as the Secretarial Auditor of the company. The Secretarial Audit report is annexed as ANNEXURE-E and forms an integral part of this Report.
EXPLANATION TO SECRETARIAL AUDITOR''S REMARKS
The Secretarial audit report does not contain any material qualification, reservation or adverse remark except being a NBFC company is required to get itself register With ClC(Credit information Companies) . Apart from this there were no material. Secretarial Audit qualification for the year under review. The Company is in process to get it registered with CIC. The Secretarial Audit Report is self explanatory and does not required any further comments.
25. STATUTORY AUDITORS
Pursuant to the provisions of section 139 of the Act and the rules framed there under, M/s. Spark & Associates, Chartered Accountants (Firm Registration No.005313C) were appointed as statutory auditors of the Company from the conclusion of the 20th annual general meeting (AGM) of the Company held on 09.09.2014 till the conclusion of the 24th AGM to be held in the year 2018, subject to ratification of their appointment at every AGM.
Spark & Associates, Chartered Accountants {Firm Registration No.005313C) who are Statutory Auditors of the Company hold office up to the forthcoming Annual General Meeting and are recommended for re-appointment for the financial year 2016-17. As required under the provisions of Section 139 of the Companies Act, 2013, the Company has obtained written confirmation from M/s, Spark & Associates, Chartered Accountants for their appointment, if made, would be in conformity with the limits specified in the said Section
EXPLANATION TO AUDITOR''S REMARKS
The Auditors in their report have referred to the notes forming part of the Accounts which are self-explanatory and does not contain any qualification, reservation or adverse remark or disclaimer.
Further there was no fraud in the Company, which was required to report by statutory auditors of the Company under sub-section (12) of section 143 of Companies Act, 2013.
26. CODE OF CONDUCT
The Company has laid down a code of conduct for all Board members and senior management and independent directors of the Company. All the Board members including independent directors and senior management personnel have affirmed compliance with the code of conduct. Declaration on adherence to the code of conduct is forming part of the Corporate Governance Report.
27. CEO/CFO CERTIFICATION
As required under Regulation 17(8] of the Listing Regulations, the Whole Time Director and Chief Financial Officer of the Company have certified to the Board regarding the Financial Statements for the year ended 31 st March, 2016.
2B. CODE FOR PROHIBITION OF INSIDER TRADING PRACTICES:
Your Company has adopted the code as per SEBI (Prohibition of Insider Trading) Regulations, 2015, which has been effective from 15th May, 2015 . The Details of the said code is available on website of the Company i.ewww. vijifinance.com
29. STATEMENT INDICATING DEVELOPMENT & IMPLEMENTATION OF RISK MANAGEMENT POLICY:
The Board of Directors has adopted risk management policy for the Company which provides for identification, assessment and control of risks which in the opinion of the Board may threaten the existence of the Company. The Management identifies and controls risks through a properly defined framework in terms of the aforesaid policy.
30. MATERIAL CHANGES & COMMITMENTS, IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY
No material changes and commitments affecting the financial position of the company have occurred between the end of the financial year to which the financial statements relate and the date of this Board''s report.
31. ENVIRONMENT AND SAFETY
The Company is conscious of the importance of environmentally clean and safe operations. The Companyâs policy requires conduct of operations in such a manner, so as to ensure safety of all concerned, compliances environmental regulations and preservation of natural resources.
32. SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
The Company has in place an Anti Sexual Harassment Policy in line with the requirements / A A of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee (ICC) has been set up to redress the Complaint received regarding sexual harassment. There was no case of sexual harassment reported during the year under review.
33. LISTING OP SHARES
It''s a matter of pleasure that the equity shares of the company got listed on National Stock Exchange of India Limited w.e.f 11th day of July, 2016. Further, shares of the company are also listed on Bombay Stock Exchange Limited & Kolkata Stock Exchange. The company has paid annual listing fee for financial year 2016-17 for all the stock exchanges. Further listing of shares were suspended by the Bombay Stock Exchange due to surveillance reason without giving any opportunity with effect from 24th December, 2015. The Company had submitted the required documents and suspension was revoked by BSE on 28th April, 2016.
34. BUSINESS RESPONSIBILITY REPORT:
The Business Responsibility Reporting as required by Regulation 34(2) of the SEBI (Listing Obligations 6s Disclosure Requirements) Regulations, 2015, is not applicable to your Company for the financial year ending March 31,2016.
35. DEPOSITORY SYSTEM
Your Company''s shares are tradable compulsorily in electronic form and your Company has connectivity with both the Depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Service (India) Limited (CDSL). In view of the numerous advantage offered by the Depositary System, members are requested to avail of the facility of Dematerialization of the Company''s shares on either of the Depositories mentioned as aforesaid. The company has paid the annual custodian fees to respective Depositories.
36. INDUSTRIAL RELATIONS:
Companyâs Industrial relations continued to be healthy, cordial and harmonious during the period under review.
37. AMENDMENT TO THE ARTICLES OF ASSOCIATION OF THE COMPANY
At the 21st Annual General Meeting held on 17th September, 2015, based on the approval of the Members, the Company adopted new Articles of Association which had been streamlined and aligned with the Companies Act, 2013 and Rules made there under.
The Board of Directors wish to place on record its appreciation for the extended co-operation and assistance rendered to the Company and acknowledge with gratitude the continued support and cooperation extended by the investors, stakeholders, Reserve Bank of India, Banks and other regulatory authorities.
Place: Indore For and on behalf of the Board of Directors
Date 10th August, 2016 VIJI FINANCE LIMITED
Vij ay Kothari Manish T ambi
Director Whole Time Director
Din No.00172878 Din No.00172883
Mar 31, 2015
Dear Members,
Your directors are pleased to present the 2 V Annual Report together
with the Audited financial Statement for the year ended 31st March,
2015.
1. STATE 0 F AFFAIRS, FINANCIAL PERFORMANCE AND FUTURE OUTLOOK:
1.1 FINANCIAL HIGHLIGHTS AND SUMMARY
The performance highlights and summarized financial results of the
Company are given below:
(Rupees in Lakhs)
Particulars Year ended Year ended
31st 31st
March 2015 March 2014
Total Income 132.47 130.18
Total Expenditure 39.92 46.26
Profil/Loss before tax 92.55 83.92
Provision for Tax
Current Tax 30.22 25.88
Deferred Tax -0.12 1.07
Provision for lax reversal 2.71 0.57
Profil/loss after tax 59.74 57.54
Amount available for appropriation 59.74 57.54
Appropriations:
fa) Transferred to Statutory Reserve 1194 1150
(b) Proposed Dividend on Equity Shares 22.50 37.50
(c) Tax on Proposed Dividend 4.58 6.37
Surplus Carried to Balance Sheet 20.72 217
Paid up Equity Share Capita) 750.00 750.00
Earning per share (Rs.10/- each) 0.80 0.77
Basic & Diluted (in Rs.)
The company is engaged in non banking finance business During the
financial year company has achieved total income ofRs. 132.47 Lacs in
comparison to previous year's total income of Rs 130.18 Lacs and earned
net profit of Rs. 59.74 lacs and in comparison to previous year s net
profil of Rs, 57,54 Lacs .
1.2 OPERATIONS AND FUTURE OUTLOOK:
The company is engaged in a fast growing sector NBFC where t he demand
of a finance is increasing rapidly. The Government supports the NBFC
activities and enhances the Direct Investment in NBFC through equity and
finance
Our country is a developing conn by and for it, easy finance is must,
The journey of global economic growth in the last few years, have
witnessed a lot of ups and downs making it difficult to believe in new
reforms and improvement. Hence, to gather momentum with the new
government focused on implementing radical reforms across various
sectors of the economy, such a policy initiative will boost the
confidence of in ves tors 6nd consumers.
Viji Finance is a medium size company and earning profit year by year.
Its diverse vision, to create a difference in the sectoral landscape
has helped to create a cohesive and energetic team. But vision cannot
function in isolation. U has to be supported by viable action on
ground. Henceforth, we begin our journey towards the next growth
altitude with an aggressive expansion plan. Powered by a dynamic team,
we are reviewing up operations in order to leverage emerging
opportunities in the secior.
We are in financing of different field and we have put our step in
infrastructure finance which is a very attractive business. Mainly, we
are focusing to finance on following:
Infrastructure Finance
Short term finance
Housing Project finance
Business Loan
Vehicle Finance
1.3 CHANGE IN NATURE OF BUSINESS
Company is engaged in NBFC activities only and during the year there
was no change in business activity of the company.
1.4 SHARE CAPITAL
During the Financial Year 2014-15, the authorized share capital of the
Company has been increased from Rs.8.00 crores to Rs. 1 1 00 crores,
pursuant to special resolution passed by the members in their annual
general meeting held on 9th September, 201 4.Further during the year
company has nor raised any paid up share capital. The Paid Up Equity
Share Capital as at 31 March 2015 stood at 7,50 Cmres, During the year
under review, the company has not issued shares with differential
voting rights nor has granted any stock option or sweat equity shares.
As on 3 $ March 2015, none of i lie Directors of the company hold
instruments convertible into equity shares of the Company
2. EXTRACT OF ANNUAL RETURN
The Extract of Annual Return as prescribed in form MGT 9 required under
section 92 of the Companies Act, 2(J 13 is included in this report as
ANNEXURE I.
3. BOARD MEETINGS AND ANNUAL GENERAL MEETING
During the Financial Year 2014-15, meetings of the Board of Directors
of the Company were held five times, The gap between two Meetings did
nol exceed one hundred and twenty days. Further Annual General Meeting
was held on 9th September, 2014 Detailed information on I he meetings
of the Board, its Committees and the AGM is included in the Report on
Corporate Governance, which forms part of this Annual Report,
4. DIVIDEND
Looking at The consistent growth in performance of the company, your
Directors are pleased to recommend a final dividend of 3% on the equity
shores i.c. Re. 0.30/- per Equity Share of face value Rs. 10/- for
financial year 2014-201S subject to Approval of the members in ensuing
Annual General Meeting.
5. AMOUNTS TRANSFERRED TO RESERVES
Being a Non Banking Finance Company, 20r. of the profit i.c Rs. 1
194765/- has been transferred to statutory reserve of the company.
Further during the year the Board of the com pan v has carried Rs 50276
5 / - to surplus accou nt,
6. FIXED DEPOSITS
Tile Company has not accepted any deposits, within the meaning of
Section 73 of the Com panics Act, 2013. read with the Companies
[Acceptance of Deposits) Rules. 2014. However being a Non Banking
Financial Company, the disclosures required as per Rule S (5}(v) and
[vtj of the Companies (Accounts) Rules, 2014 read with Sections 73 and
74 gf the Companies Act .2013. are not applicable to the Company
7. RBI NORMS
The Company continues to fulfill all the norms and standards laid down
by the Reserve Bank of India |RB1| pertaining to capital adequacy,
statutory liquidity ratio etc and further company is not having
non-performing assets as on 31 March. 2015 Certificate from statutory
auditors lor complying the prudential norms for NBFC is attached with
auditors repon, As on 31st March. 2015, the Capital to Risk Assets
Ratio (CRAR) of your Company wras 92%, which is well above 15% CRAR
prescribed by the RBI
8. DETAILS OF SUBSIDIARY, JOINT VENTURE OR ASSOCIATES
The Com party does not have any subsidiaty, joint venture or associate
com pany.
9. DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with provisions of Section 152 of the Companies Act, 2013
a and the Company's article of association, Shri Vi jay Kothari,
Director retires by rotation at the forthcoming annuaJ general meeting
and being eligible offers himself for re-appointment
The Board in its meeting held on 23,1' May , 2014 has appointed Ms
Roshani Maheshwari as an Additional Director as well as independent
women Director of the Company, not liable to retire by rotation.
Puri her Shri Manish Sanghavi resigned from the posl of Directorship
due to his pro occupation. Your Board places on record its deep
appreciation of the valuable contribution mode by him during his tenure
as. Director of the Company.
At thr annual general meeting held on V September. 2014 Mr. Suresh
Singh Jain, Mi Hiren Kamdar and Ms Roshani Maheshwari were appointed as
an independent director of the Company pursuant to section 149 of the
Companies Act, 2013 for a term of five consecutive years None of the
Independent Directors are due for re- appointment
Mr Manish Tambi whole Time Director , Mr Siddhant Sharma chief
financial officer, Mr Bhushan Tambe Company secretary (w.e.f 20 June,
2015) of the Company are the Key Managerial Personnel of the Company as
per the provisions of the Companies Act, 20 13, Further Ms Snrbhi pawar
has resigned from the post of the Company secretary with effect from
31" May, 2015 and on 20" June, 2015 Mr Dhushan Tambe was appointed as
Company secretary of.the Company.
DISQUALIFICATIONS OF DIRECTORS
During the year declarations received from the Directors of the Company
pursuant to Section 164 of the Companies Act, 2013. Board appraised the
same and found that none of the director is disqualified for holding
Office 6s director,
10, DECLARATION BY INDEPENDENT DIRECTOR
The Company has received declarations from all the Independent
Directors of the Company confirming that they fulfill the criteria of
independence as prescribed under sub-section (6) of section 149 of the
Companies Act, 2013 and under Clause 49 of the Listing Agreement with
the Stock Exchanges.
The following Directors are independent in terms of Section 149(6) of
the Act and Clause 49 of the Listing Agreement:
i) Shri Suresh Singh Jain
ii) Shn Hiren Kamdar
iii) Ms. Roshani Maheshwari Â.
11 . DIRECTORS RESPONSIBILITY STATEMENT
a)In Terms of Section 134(3) |c) of the Companies Act, 2013, your
Directors state that: a) in rhc preparation of the annual accounts for
the financial year ended 31st March, 2015, the applicable accounting
standards had been followed along with proper explanation relating to
material departures , if any.
b)the directors have selected such accounting policies and applied
them 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 as at 31st March, 20 10 and of I he profit of the Com pa
ny for year ended on that date;
c) the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act 2013 for safeguarding i he assets of
the company and for preventing and detecting fraud and other
irregularities;
d) the directors have prepared the annual accounts on a going concern
basis;
e) the directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively and
f) the directors have laid down proper internal financial controls to
be followed by the company and that such internal financial controls
arc adequate and were operating effectively.
12. FAMILIARIZATION OF INDEPENDENT DIRECTORS
The details of familiarization programme for Independent Directors have
been disclosed on website of the Company www.viji finance, com.
13. MEETING OF INDEPENDENT DIRECTORS
The Independent Directors met once during the year under review. The
Meeting was conducted in an informal manner without the presence of the
Chairman, the Whole Time Director, the Non-Executive Non independent
Directors and the Chief Financial Officer. 1
14. COMMITTEES OF THE BOARD OF DIRECTORS
The Company has various committees which have been constituted as a part
of the good corporaie governance practices and the same are in
compliance with the requirements of the relevant provisions of
applicable laws and statutes. Your Company has an adequately qualified
and experienced Audit Committee with Shit Suresh Singh Jain (chairman),
Ms. Roshani Maheshwari and Shri Hiren Kamdar. as Members, The
recommendations of Lhe Audit Committee were duly i l i approved and
accepted by the Board during the year under review, A
The other Committees of i he Board ure :
(i) Nomination and Remuneration Committees
(ii) Stakeholders Relationship Committee
The details with respect to the composition. powers, roles, terms
of reference. Meetings held and attendance of the Directors al such
Meetings of the relevant Committees are given in detail in the Report
on Corporate Governance of the Company which forms part of this Annual
Report.
15. STATEMENT INDICATING THE MANNER IN WHICH FORMAL ANNUAL EVALUATION
HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE, ITS DIRECTORS, AND
THAT OF ITS COMMITTEES
Pursuant to the provisions of the Companies Act, 2013 arid Clause 49 of
Lhe Listing Agreement, performance evaluation of the Board, its
Committee and the Independent Directors was carried our time to time.
The manner in which the evaluation is carried out has been explained in
i he Corporate Governance Report.
16. PARTICULARS OF LOAN, GUARANTEES AND INVESTMENTS UNDER SECTION 186
Pursuant to section 186 (1 1) of the Companies Act. 2013 ('the Act'),
the provisions of section 186(4) of the Act requiring disclosure in the
financial statement of the full particulars of the loons made and
guarantees given or securities provided bv a Non- Banking Financial
Company in the ordinary course of its business and the purpose for
which the loan or guarantee or security is proposed to be Utilized by
the recipient of the loan or guar a nice or security are exempted from
disclosure in the Annual Report.
Further, pursuant to the provisions of Section 186 14) of the Act, the
details of investments made bv the Company arc given in the Notes to
the Financial Statement.
17. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All transactions entered with related parties for the year under review
were on Arm,s length basis and in the ordinary course of business and
that the provisions of Section 188 of the Companies Act, 2013 are not
at traded. Thus, disclosure in FormAOC-2is nciT required. Further,
there are no material related party transactions during the- year under
review with Lhe promoters, directors.
18. CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars in respect of conservation of energy, technology
absorption and foreign exchange earnings and outgo, as required under
sub-section |3) (ra) of section 134 of the Companies Art. 2013 read
with Rule of the Companies JArxountsj Rules, 2014 arc given as under ;
{A) Conservation of Energy
The steps taken ot impact on conservation of energy:
(i) The operations of your Company are not energy intensive. However,
adequate measures have been initiated to reduce energy consumption.
(ii) The capital investment on energy conservation equipments: Nil
(B) Technology Absorption:
(i) The e[Torts made towards technology absorption Not Applicable
(ii) Tiie benefits derived like product improvement, cost reduction,
product development or import substitution : Nm Applicable.
(iiij in case df imported technology (imported during the last three
years reckoned from the beginning of'the Financial Year): Not
Applicable.
(iv) Company has not incurred any expenditure on Research and
Development during the year under review,
further there was neither inflow nor outflow of foreign exchange during
the year.
19. STATEMENT IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROL
WITH REFERENCE TO THE FINANCIAL STATEMENTS
Your company has an effective internal control and risk mitigation
system, which are constantly assessed and strengthened with new/revised
standard operating procedures. The company's internal control system
its commensurate with its size, scale and complexities of its
operations; the internal and operational audit is entrusted l:o M/s.
Shyam Nagon & Associates. Chartered Accountants. The main thrust of
internal audit is to test and review controls, appraisal of risks and
business processes# besides be nch marking controls with best practices
in the industry
The audit committee of the board of directors actively reviews the
adequacy and effectiveness of the internal control systems and suggests
improvements to strengthen the same. The company has a robust
management information system, which is ao integral pari of the control
mechanism.
The audit committee of the board of directors, statutory auditors and
the business heads are periodically apprised of the internal audit
findings and corrective actions taken. Audit plays a key role in
providing assurance to the Board of director.
Significant audit observations and corrective actions taken by the i 1
management arc presented to the audit committee of the board. To
maintain A its objectivity and independence, the internal audit function
reports to the chairman of the audit committee.
20. CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY
Provisions of section 135 of the Companies Act, 2013 does not apply to
the Company, therefore Company lias not constituted Corporate Social
responsibility jCSR) committee as required under the Act
21. REMUNERATION POLICY / DISCLOSURE RELATING TO REMUNERATION OF
DIRECTORS, KEY MANAGERIAL PERSONNEL AND PARTICULARS OF EMPLOYEES;
In accordance with Section 178 and other applicable provisions it" any,
of the Companies Act, 2013 read with the Rules issued there under and
Clause 49 of the Listing Agreement, the Board of Directors formulated
the Nomination and Remuneration Policy of your Company on the
recommendations of the Nomination and Remuneration Committee Details of
policy covering these requirements has disclosed in corporate
governance report
Information required under Section 197 of the Companies Act, 2013 read
with Rule 5 (1] Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 attached as "ANIMEXURE 2".
None of the employee of the company is drawing more than Rs 60.00,000/-
per annum or Rs.5.00.000/- per month for the part of the year| during
the year under review therefore Particulars of the employees as
required under Section 197 of Companies Act, 2013 read with rule 5 ( 2)
& rule 5 |3| of Companies (appointment and remuneration) Rules 2014 arc
not applicable, during the year under review.
Further Company did not have any holding or subsidiary company
therefore receipt of the commission or remuneration from holding or
subsidiary company of the company as provided under section 197114) of
Companies Act, 2013 is not applicable
22, REPORTS ON MANAGEMENT DISCUSSION ANALYSIS REPORTS ON CORPORATE
GOVERNANCE & MANAGEMENT DISCUSSION ANALYSIS
Pursuant to clause -19 of the listing agreement with slock exchanges, a
separate scction titled 11 Report on Corporate governance and
Management discussion and Ana lysis forms pa rt of t h i s Annual
Report.
Certificate confirming compliance with the conditions of Corporate
Governance as stipulated under clause 49 of the Listing Agreement also
forms parts of this Annual Report,
23. DISCLOSURE ON ESTABLISHMENT OF A VIGIL MECHANISM/WHISTLE BLOWER
POLICY
The Company has a whistle blower policy to report genuine concern a or
grievances. The details of establishment of the reporting mechanism
arc disclosed on the website of the Company (www.vijifinancc.coml No
Person has been denied access to the Audit Committee,
24. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY,
There are no significant and/or material orders passed by the
Regulators or Courts or Tribunals impacting the going concern status of
the Company
25. SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act. 2013
and Companies {Appointment and Remuneration of Managerial Personnel)
Rules, 2014. the company has appointed M/s. Ramesh Chandra Bagdi &
Associates . Practicing Company Secretary, to undertake as the
Secretarial Audit of the company. The Secretarial Audit report is
included as AN N EXURE-3 and forms an integral part of this Report.
There is no Secretarial Audit qualification for the year under review.
26. STATUTORY AUDITORS
Pursuant to the provisions of section J 39 of the Companies Act. 2013
M/s. Spark & Associates, Chartered Accountants (Firm Registration
No.0053l3C) statutory auditors of the company were appointed as auditor
to hold office up to the conclusion of forthcoming annual general
meeting of the company anti are recommended for re- appointment to
audit the accounts of t he company up to the 24th AGM of t he Company
to be held in year 2018 subject to ratification of their appointment by
members at every AGM held thereafter. A resolution for appointment of
M/s. Spark & Associates, Chartered Accountants. as auditors for the
period from the conclusion of the ensuing 21 AGM till the conclusion of
the 24 AGM and for fixation of their remuneration for the year 2015 -16
is being proposed in the notice of the ensuing AGM for the approval of
the members. The Company has received from M/s. Spark & Associates,
Chartered Accountant a written consent lor ratification of their
appointment from the conclusion of the 21th AGM till the conclusion of
the 24th AGM and a certificate io the effect that their appointment
shall be in accordance with the prescribed conditions and that the firm
is not disqualified under the Companies Act, 2013.
EXPLANATION TO AUDITORS REMARKS
The Auditors in their report have referred to the notes forming part of
the Accounts which are self-explanatiory and does not contain any
qualification, reservation or adverse remark or disclaimer.
Further there was no fraud in the Company, which was required to report
by statutory auditors of the Company under sub-sect ion (12) of section
143 of Companies Act, 2013.
27. CODE OF CONDUCT
The Company has laid down a code of conduct for all Board members and
senior management and independent directors of the Company. All the
Board members including independent directors and senior management
personnel have affirmed compliance with the code of conduct.
Declaration on adherence m the code of conduct is forming part of l he
Corporate governance Report.
28. STATEMENT INDICATING DEVELOPMENT & IMPLEMENTATION OF RISK
MANAGEMENT POLICY:
The Board of Directors has adopted risk management policy for the
Company which provides for identification, assessment and control of
risks which in the opinion of the Board may threaten the existence of
the Company. The Management identifies and Controls risks through a
properly defined framework in terms of the aforesaid policy.
29. MATERIAL CHANGES & COMMITMENTS, IF ANY AFFECTING THE FINANCIAL
POSITION OF THE COMPANY
No material changes and commitments affecting the financial position of
the company have occurred between the end of the financial year to
which the financial statements relate and the date of this boards
report,
30. ENVIRONMENT AND SAFETY
The Company is conscious of the importance of environ mentally clean
and safe operations. The Company's policy required conduct of
operations in such a manner, so as to ensure safety of all concerned,
compliances environmental regulations and preservation of natural
resources.
31. SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION &
REDRESS AL) ACT, 2013
The Company has in place an Anti Sexual Harassment Policy in line with
the requirements of The Sexual Harassment of Women at Workplace
(Prevention. Prohibition and Red res sal) Act, 2013. An Internal
Complaints Committee (ICC) has been set up to redress the Complaint
received regarding sexual harassment. There was no case of sexuaf
harassment reported during the year under review.
32. LISTING OF SHARES
Company shares listed on Bombay Stock Exchange Limited & Kotkata Stock
Exchange. The company has paid annual listing fee for financial year
2015 16 for both the stock exchanges. Company was originally listed on
M P Stock Exchange but due to derecognization of M P, stock exchange,
equity shares has been listed ai Kolkata Stock Exchange.
33. BUSINESS RESPONSIBILITY REPORT:
Business responsibility reporting as required by clause 55 of the
listing agreement with stock exchange is not applicable to your company
for the financial year ending 31th March 2015.
34. DEPOSITORY SYSTEM
Your Company's shares are tradable compulsorily in electronic form and
your Company has connectivity with both the Depositaries i.e. National
Securities Depository Limited jNSDL] and Central Depository Service
(India) Limited (CDSL) In view of the numerous advantage offered by the
Depository System, members arc requested to avail of the facility of Dt
materialization of the Company s shares on either of the Depositories
mentioned as aforesaid.
35. INDUSTRIAL RELATIONS:
Company's Industrial relations continued to be healthy, cordial and
harmonious during the period under review
36. ACKNOWLEDGMENT
The Board of Directors wish to place on record its appreciation for the
extended co- operation and assistance rendered to the Company and
acknowledge with gratitude the continued support and cooperation
extended by the investors, stakeholders, Reserve Bank of India, Banks
and other regulatory authorities.
Place Indore
Date 8th August, 2015
For and on behalf of the Hoard of Directors
VIJI FINANCE LIMITED
Vijay Kothari Manish Tambi
Director Whole Time Director
Din No.00172878 Din No.001728S3
Mar 31, 2014
Dear Members,
The Directors hereby present the Annual Report of the Company together
with the Audited Accounts for the year ended 31st March, 2014.
Financial Results:
Rs. In Lacs
Year Year
ended ended
31/3/2014 31/3/2013
Total Income 130.18 83.70
Total Expenditure 46.26 27.16
Profit/Loss before tax 83.92 56.54
Provision for Tax
Current Tax 25.89 17.47
Deferred Tax 1.07 0.00
Provision for tax reversal -0.58 0.00
Profit/Loss after tax 57.54 39.07
Amount available for appropriation 57.54 39.07
Appropriations:
(a) Transferred to Statutory Reserve 11.50 7.81
(b) Proposed Dividend on Equity Shares 37.50 21.00
(c) Tax on Proposed Dividend 6.37 3.41
Surplus Carried to Balance Sheet 2.16 6.85
Paid up Equity Share Capital 750.00 300.00
Earning per share (Rs.10/- each) Basic 0.77 1.30
& Diluted (in Rs.)
DIVIDEND
Looking at the consistent growth in performance of the Company, your
Directors are pleased to recommend a final dividend of 5% on the equity
shares i.e. Re. 0.50/- per Equity Share of face value Rs.10/- for
financial year 2013-2014 subject to Approval of the members in ensuing
Annual General Meeting.
SHARE CAPITAL
Further the Board of Directors of the Company in their board meeting
held on 25.06.2013 allotted 22,50,000 Equity Shares Rs.10/- at a
premium of Rs.2/- each on preferential basis to promoters and non
promoters of the Company. Further Company has utilized the capital for
the purpose of working capital requirement and to repay the unsecured
loan of the Company to minimize the interest liability and maximize the
profitability of the Company
STATUTORY RESERVE
Being a Non Banking Finance Company, 20% of the profit has been
transferred to statutory reserve of the Company.
FIXED DEPOSIT
During the year the Company did not invite public deposits within the
meaning of Section 58Aofthe Companies Act, 1956 and rules made
thereunder.
DIRECTORS
The Board in its meeting held on 23rd May, 2014 has appointed Ms
Roshani Maheshwari as an Additional Director as well as Independent
Women Director of the Company, not liable to retire by rotation.
Further Shri Manish Sanghavi resigned from the post of Directorship.
Your Board places on record its deep appreciation of the valuable
contribution made by him during his tenure as Director of the Company.
Further Mr. Suresh Singh Jain and Mr. Hiren Kamdar the existing
Independent Directors are further proposed to be appointed as
Independent Directors for a term of 5 years as per requirement of
section 149 of the Companies Act, 1956 as well as Clause 49 of the
Listing Agreement to hold the office till 31st March, 2019.
The Company has received notice in writing from the members as required
under section 160 of the Companies Act, 2013 for proposal for
appointment of Ms Roshani Maheshwari as a Director as well as
Independent Director and all other Independent Directors of the Company
at the ensuing Annual General Meeting.
The Independent Directors has submitted a declaration confirming that
they meets the criteria for independence as provided in section 149(6)
of the Act and is eligible for appointment as Independent Directors of
the Company.
In the opinion of the Board the above said three directors fulfills the
conditions specified in the Act and the Rules made there under as the
Clause 49 of the Listing Agreement for their appointment as Independent
Directors of the Company.
In accordance with the provisions of the Companies Act, 2013 and
Articles of Association of the Company Mr. Vijay Kothari, retires by
rotation at the forthcoming Annual General Meeting, and being eligible,
offer himself for re-appointment.
Attention of the members is invited to the relevant items in the Notice
of the Annual General Meeting for seeking your approval for aforesaid
appointments. The information required under Clause 49 (IV) ( G) of the
Listing agreement is given in the Notice and explanatory statement
annexed thereto as per Section 102 of the Companies Act, 2013.
DIRECTOR''S RESPONSIBILITIES STATEMENT.
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Director''s Responsibility statement, it is
hereby confirmed:
I) That in the preparation of the annual accounts for financial year
ended 31st March, 2014; the applicable Accounting Standards have been
followed along with proper explanation relating to material departure;
ii) That the Directors have selected such accounting policies and
applied them 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 financial year and of the
profit of the Company for the year and review.
iii) That the Directors have taken proper and sufficient care of the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
iv) That the Directors have prepared the annual accounts on a going
concern basis.
AUDITORS
The members are aware that M/s. R.S. Bansal & Company, Chartered
Accountants Indore, have shown their unwillingness to continue as a
auditor in the Company and given their resignation and M/s. Spark &
Associates (formerly M/S. Harish Dayani & Co.) Chartered Accountants,
Indore were appointed as a Statutory Auditor of the Company in the
Extraordinary General Meeting held on 22nd Day of January, 2014. M/s.
Spark & Associates, Chartered Accountants retire and being eligible,
offer themselves for re- appointment in forthcoming Annual General
Meeting.
Pursuant to the provisions of Section 139 of the Companies Act, 2013
and the Rules framed there under, it is proposed to appoint M/s. Spark
& Associates, Chartered Accountants, Indore, as statutory auditors of
the Company from the conclusion of the forthcoming AGM till the
conclusion of next Annual General Meeting of the Company.
AUDITORS REPORT
The Report of Auditors of the Company for the year under reference is
self-explanatory and do not call for any comments from the Directors.
COMPANIES RULES 1988 (DISCLOSURE OF PARTICULARS IN THE REPORTS OF BOARD
OF DIRECTOR)
As the Company is not engaged in any manufacturing activities, hence
provisions of Section 217(1) (e) of the Companies Act, 1956 read with
the Companies Rules, 1988 are not applicable to the Company. Further
there was neither inflow nor outflow of foreign exchange during the
year.
PARTICULARS OF EMPLOYEES
The Company did not have any employee, during the year drawing
remuneration attracting the provision of section 217 (2A) of the
Companies Act, 1956 read with the Companies (particulars of employees)
Rule 1975. The Company continued to have cordial and harmonious
relations with employees. In totality our employees have shown a high
degree of maturity and responsibility in responding to the changing
environment, economic and the market conditions.
CORPORATE GOVERNANCE
A separate section titled "Corporate Governance" including a
certificate from the Auditors of the Company confirming compliance of
the conditions of the Corporate Governance as stipulated under clause
49 of the Listing Agreement and also the Management Discussion and
Analysis Report and CEO certification are annexed hereto and form part
of the report.
AUDIT COMMITTEE
Under the provisions of Companies Act, 1956 and Listing Agreement with
the Stock Exchanges, Audit Committee Comprises of Ms. Roshani
Maheshwari, Shri Hiren Kamdar, and Shri Suresh Singh Jain.
CODE OF CONDUCT
The Company has laid down a code of conduct for all Board members and
senior management of the Company. All the Board members and senior
management personnel have affirmed compliance with the code of conduct.
LISTING OF THE SHARES
It is matter of pleasure that Company got listed at nationwide terminal
Bombay Stock Exchange Limited with effect from 21st March, 2014.
Further Equity shares of the Company were already listed at Madhya
Pradesh Stock Exchange Ltd., Indore. The Company has paid annual
listing fee for financial year 2014-15 for both the stock exchanges.
ACKNOWLEDGEMENTS
The Board of Directors wish to place on record its appreciation for the
extended co- operation and assistance rendered to the Company and
acknowledge with gratitude the continued support and cooperation
extended by the investors, stakeholders, clients, business associates,
regulatory authorities and bankers.
Place: Indore For and on behalf of the Board
Dated: 23/05/2014
Vijay Kothari Manish Tambi
DinNo.00172878 DinNo.00172883
Director Whole Time Director
Mar 31, 2013
The Directors hereby present the Annual Report of the Company together
with the Audited Accounts for the year ended 31st March, 2013.
Financial Results:
Rs. In Lacs
Year Year
ended
31/3/2013 ended
31/3/2012
Total Income 83.70 58.17
Total Expenditure 27.29 27.55
Profit before exceptional and
extraordinary 56.41 30.62
items and tax
Exceptional item NPA 0.00 14.32
Profit/Loss before extraordinary item 56.41 44.94
Extraordinary item 0.00 0.00
Profit/Loss before tax 56.41 44.94
Provision for Income Tax 17.43 9.46
Profit/Loss after tax 38.98 35.48
Paid up Equity Share Capital 300.00 300.00
DIVIDEND
Looking at the consistent growth in performance of the company, your
Directors are pleased to recommend a final dividend of 7% on the equity
shares i.e. Re. 0.70/- per Equity Share of face value Rs.10/- for
financial year 2012-2013 subject to Approval of the members in ensuing
Annual General Meeting.
ISSUE OF FURTHER SHARES AND UTILIZATION OF FUND
The Members are aware that in Extra Ordinary General meeting held on
18th April, 2013 approval for issue of 2250000 equity shares was
obtained and in continuation of the same and as per in principal
approval letter received from the Madhya Pradesh Stock Exchange, Indore
the Board of the directors of the company have allotted the 22,50,000
Equity shares on 25th April, 2013 to respective applicants for which
full amount have received. Futher company has utilized the said money
for the purpose of working capital requirement and to repay the
unsecured loan of the company to minimize the interest liability and
maximize the profitability of the company. In continuation of the same
board of the Directors are further planning to issue 2250000 equity
shares through preferential allotment to strategic investors subject to
confirmation in ensuring annual general meeting and other appropriate
authorities.
STATUTORY RESERVE
Being a Non Banking Finance Company, 20% of the profit has been
transferred to statutory reserve of the company.
PUBLIC DEPOSIT
During the year the company did not invite public deposits within the
meaning of section 58A of the companies Act, 1956 and rules made there
under.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and
Articles of Association of the Company Mr. Manish Sanghvi, retires by
rotation at the forthcoming Annual General Meeting, and being eligible,
offer himself for re- appointment. Further Mr Manish Tambi was
appointed as executive Director of the company subject to approval of
the members of the company in ensuing Annual General Meeting of the
company.
DIRECTOR''S RESPONSIBILITIES STATEMENT.
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Director''s Responsibility statement, it is
hereby confirmed:
i) That in the preparation of the annual accounts for financial year
ended 31st March, 2013; the applicable accounting standards have been
followed along with proper explanation relating to material departure;
ii) that the Directors have selected such accounting policies and
applied them 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 financial year and of the
profit of the Company for the year and review.
iii) that the Directors have taken proper and sufficient care of the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
iv) that the Directors have prepared the annual accounts on a going
concern basis.
AUDITORS
M/s Shyam Nagori & Company, Chartered Accountants, Indore retiring and
have informed that they do not wish to seek re-election as auditors at
the ensuing Annual
General Meeting. The Board records its sincere appreciation and
fruitful association with M/s M/s Shyam Nagori & Company, Chartered
Accountants.
A Special notice has been received from member proposing the
appointment of M/s R.S. Bansal & Company, Chartered Accountants, Indore
as Statutory Auditors of the Company to hold office up to the
conclusion of next Annual general meeting.
AUDITORS REPORT
The Report of Auditors of the Company for the year under reference is
self- explanatory and do not call for any comments from the Directors.
SECRETARIAL COMPLIANCE CERTIFICATE
As per requirement of Provision of section 383A of the Companies Act,
1956 a secretarial Compliance Certificate is annexed herewith.
COMPANIES RULES 1988 (DISCLOSURE OF PARTICULARS IN THE REPORTS OF BOARD
OF DIRECTOR)
As the Company is not engaged in any manufacturing activities, hence
provisions of section 217 (1) (e) of the Companies Act, 1956 read with
the Companies Rules, 1988 are not applicable to the Company. Further
there was neither inflow nor outflow of foreign exchange during the
year.
PARTICULARS OF EMPLOYEES
The Company did not have any employee, during the year drawing
remuneration attracting the provision of section 217 (2A) of the
Companies Act, 1956 read with the Companies (particulars of employees)
Rule 1975.The company continued to have cordial and harmonious
relations with employees. In totality our employees have shown a high
degree of maturity and responsibility in responding to the changing
environment, economic and the market condition.
CORPORATE GOVERNANCE
A separate section titled "Corporate Governance" including a
certificate from the Auditors of the Company confirming compliance of
the conditions of the Corporate Governance as stipulated under clause
49 of the Listing Agreement and also the Management Discussion and
Analysis Report and CEO certification are annexed hereto and form part
of the report.
AUDIT COMMITTEE
Under the provisions of Companies Act, 1956 and Listing Agreement with
the Stock Exchanges a Audit Committee Comprises of Shri Manish Tambi,
Shri Hiren Kamdar, and Shri Suresh Singh Jain.
GREEN INITIATIVES IN THE CORPORATE GOVERNANCE
In order to reduce cost of posting and speedy delivery of documents,
service of documents through electronic mode has been permitted under
section 53 of the Companies Act, 1956 in place of service of document
under certificate of posting. Similarly, to reduce the consumption of
papers and speedy secure delivery, service of copies of Balance Sheets
and Auditors Report etc., to the members of the company as required
under section 219 of the Companies Act, 1956 has been allowed to be
served through electronic mode by capturing their e-mail addresses
available with the depositories or by obtaining directly from the
shareholders.
CODE OF CONDUCT
The Company has laid down a code of conduct for all Board members and
senior management of the Company. All the Board members and senior
management personnel have affirmed compliance with the code of conduct.
LISTING OF THE SHARES
Equity shares of the company are listed on Madhya Pradesh Stock
Exchange Ltd., Indore and company has paid annual listing fee for
financial year 2013-14.
DEPOSITORY SYSTEM
Company''s shares are now tradable in electronic form and it has
connectivity with both the Depositaries i.e. National Securities
Depository Limited (NSDL) and Central Depository Service (India)
Limited (CDSL). In view of the numerous advantage offered by the
Depository System, members are requested to avail of the facility of
Dematerialization of the Company''s shares on either of the Depositories
mentioned as aforesaid.
ACKNOWLEDGEMENTS
The Board of Directors wish to place on record its appreciation for the
extended co- operation and assistance rendered to the Company and
acknowledge with gratitude the continued support and cooperation
extended by the investors, clients, business associates, regulatory
authorities and bankers..
Place: Indore for and on behalf of the Board
Dated: 10.05.2013
Vijay Kothari Manish Tambi
Director Director
Mar 31, 2012
The Directors hereby present the Annual Report of the Company together
with the Audited Accounts for the year ended 31st March, 2012.
Financial Results:
Rs. In Lacs_
Year ended Year ended
31/3/2012 31/3/2011
Total Income 58.17 10.48
Total Expenditure 27.55 5.39
Profit before exceptional
and extraordinary 30.62 5.09
items and tax___
Exceptional item NPA 14.32 -167.59
Profit/Loss before
extraordinary item 44.94 172.68
Extraordinary item 0 0
Pforit/Loss before tax 44.94 172.68
Provision for Income Tax 9.46 0.95
Profit/Loss after tax 35.48 171.73
Paid up Equity Share Capital 300.00 300.00
DIVIDEND
Looking at the consistent growth in performance of the company, your
Directors are pleased to recommend a final dividend of 4% on the equity
shares i.e. Re. 0.40/ - per Equity Share of face value Rs.10/- subject
to Approval of the members in ensuing Annual General Meeting.
PUBLIC DEPOSIT
During the year the company did not invite public deposits within the
meaning of section 58A of the companies Act, 1956 and rules made there
under.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and
Articles of Association of the Company Mr. Vijay Kothari, retires by
rotation at the forthcoming Annual General Meeting, and being eligible,
offer himself for re-appointment.
DIRECTOR''S RESPONSIBILITIES STATEMENT.
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Director''s Responsibility statement, it is
hereby confirmed:
i) That in the preparation of the annual accounts for financial year
ended 31st March, 2012; the applicable accounting standards have been
followed along with proper explanation relating to material departure;
ii) that the Directors have selected such accounting policies and
applied them 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 financial year and of the
profit of the Company for the year and review.
iii) that the Directors have taken proper and sufficient care of the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
iv) that the Directors have prepared the annual accounts on a going
concern basis. AUDITORS
M/s Shyam Nagori & Company, Chartered Accountants, Indore, retires and
being eligible, offers them selves for re-appointment in forthcoming
Annual General Meeting.
AUDITORS REPORT
The Report of Auditors of the Company for the year under reference is
self- explanatory and do not call for any comments from the Directors.
COMPANIES RULES 1988 (DISCLOSURE OF PARTICULARS IN THE REPORTS OF BOARD
OF DIRECTOR)
As the Company is not engaged in any manufacturing activities, hence
provisions of section 217 (1) (e) of the Companies Act, 1956 read with
the Companies Rules, 1988 are not applicable to the Company. Further
there was neither inflow nor outflow of foreign exchange during the
year.
PARTICULARS OF EMPLOYEES
The Company did not have any employee, during the year drawing
remuneration attracting the provision of section 217 (2A) of the
Companies Act, 1956 read with the Companies (particulars of employees)
Rule 1975.The company continued to have cordial and harmonious
relations with employees. In totality our employees have shown a high
degree of maturity and responsibility in responding to the changing
environment, economic and the market condition.
CORPORATE GOVERNANCE
A separate section titled "Corporate Governance" including a
certificate from the Auditors of the Company confirming compliance of
the conditions of the Corporate Governance as stipulated under clause
49 of the Listing Agreement and also the Management Discussion and
Analysis Report and CEO certification are annexed hereto and form part
of the report.
AUDIT COMMITTEE
Under the provisions of Companies Act, 1956 and Listing Agreement with
the Stock Exchanges a Audit Committee Comprises of Shri Manish Tambi,
Shri Hiren Kamdar, and Shri Suresh Singh Jain.
GREEN INITIATIVES IN THE CORPORATE GOVERNANCE
In order to reduce cost of posting and speedy delivery of documents,
service of documents through electronic mode has been permitted under
section 53 of the Companies Act, 1956 in place of service of document
under certificate of posting. Similarly, to reduce the consumption of
papers and speedy secure delivery, service of copies of Balance Sheets
and Auditors Report etc., to the members of the company as required
under section 219 of the Companies Act, 1956 has been allowed to be
served through electronic mode by capturing their e-mail addresses
available with the depositories or by obtaining directly from the
shareholders.
CODE OF CONDUCT
The Company has laid down a code of conduct for all Board members and
senior management of the Company. All the Board members and senior
management personnel have affirmed compliance with the code of conduct.
LISTING OF THE SHARES
Equity shares of the company are listed on Madhya Pradesh Stock
Exchange Ltd., Indore and company has paid annual listing fee for
financial year 2012-13.
DEPOSITORY SYSTEM
Company''s shares are now tradable in electronic form and it has
connectivity with both the Depositaries i.e. National Securities
Depository Limited (NSDL) and Central Depository Service (India)
Limited (CDSL). In view of the numerous advantage offered by the
Depository System, members are requested to avail of the facility of
Dematerialization of the Company''s shares on either of the Depositories
mentioned as aforesaid.
ACKNOWLEDGEMENTS
The Board of Directors wish to place on record its appreciation for the
extended co- operation and assistance rendered to the Company and
acknowledge with gratitude the continued support and cooperation
extended by the investors, clients, business associates, regulatory
authorities and bankers..
Place: Indore for and on behalf of the Board
Dated: 25.05.2012
Vijay Kothari Manish Tambi
Director Director
Mar 31, 2011
The Directors have pleasure in presenting their Annual Report on the
Audited Accounts for the financial period ended on 31st March 2011.
1. FINANCIAL RESULTS AND OPERATION:
Particular Current Year Previous Year
(Amt. in Rs.) (Amt. in Rs.)
Total Income 1048521.00 0.00
Less: Total Expenditure 539872 580107
Profit/Loss Before Tax 508649 -580107
Provision for NPA Reversal Back 16759424 11053436
Net Profit after provision
for NPA Reversal 16823247 10473329
Back
Balance of Loss from Previous Year -20728801 -31202130
Balance Carried Forward
to Balance Sheet -3905554 -20728801
2. BUSINESS REVIEW:
During the period, the Company was able to earn Total Income of Rs.
1048521 and earn a net profit after provision for NPA Reversal Back of
Rs. 16823247 and the losses of Rs. 3905554 carried forwarded to the
balance sheet. The authorised share capital of the Company is Rs. 5
crores. The Issued, Subscribed and Fully Paid-up Capital is Rs. 3
crores at the end of accounting period.
3. DIVIDEND :
Your Directors are pleased to recommend for your consideration payment
of dividend on equity shares at 1% for the year ended 31st March 2011
aggregating to Rs. 300000/-.
4. PUBLIC DEPOSITS:
The Company being a Non Banking Financial Company the provisions of
Section 58A of the Companies Act, 1956 read with the Companies
(Acceptance of Deposit) Rules, 1975 is not applicable. However the
Company had accepted deposits from public.
5. MANAGEMENT:
During the year under review there is no change in the management of
the Company and is duly constituted. However, Mr. Manish Sanghvi is
liable to retire by rotation and offers himself for reappointment.
7. AUDITORS:
The present Auditors of the Company, M/s. Shyam Nagori & Co., Chartered
Accountants, are reappointed as the auditors of the Company from the
conclusion of the forthcoming Annual General Meeting until the
conclusion of the next Annual General Meeting of the Company on such
recommendation as may be fixed by the Board of Directors of the
Company.
8. NOTES ON CHANGE IN THE REGISTERED OFFICE OF THE COMPANY:
The Company''s registered office of the Company was shifted to 11/2,
Usha Ganj, Jaora Compound,
Indore (M.P.) with effective from 15.01.2011.
9. AUDITOR''S REPORT:
The Auditors Report on the accounts for this accounting period ended on
31st March, 2011 is self- explanatory, therefore does not require any
further explanation.
10. DIRECTOR''S RESPONSIBILITY STATEMENT:
Pursuant to the provision of Section 217 (2AA) of the Companies Act,
1956 as amended with respect to Director''s responsibility statement and
subject to where so ever otherwise contained in the Audit
Report, Your Directors hereby confirm.
1. That in the preparation of the annual accounts for the financial
period ended on 31st March, 2011 the applicable accounting standards
had been followed, along with proper explanation relating to material
departures;
2. That the Director have selected such accounting policies and
applied them consistently and made judgements 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 period ended and
of the profit or loss of the Company for the period under review;
3. 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 safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
4. That the Directors have prepared the annual accounts on a going
concern basis.
11. PARTICULARS OF EMPLOYEES
The information as required under Section 217(2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 are
not applicable to the Company as the Company does not have any employee
receiving Remuneration exceeding Rs. 24,00,000.00 per annum or Rs.
2,00,000.00 per month or part thereof.
12. DISCLOSURE OF CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND
FOREIGN EXCHANGE EARNING AND OUTGO:
The information in respect of Conservation of Energy as required U/s
217 (1) (e) of the Companies Act, 1956 read with the Companies
(disclosure of particulars in the report of the Director) Rules, 1988
is not required to given.
The Company has no specific Research & Development department.
There was no foreign exchange earning & outgo in during the year.
13. LISTING OF SECURITIES:
The Equity Shares of the Company are listed with the Stock Exchange of
Madhya Pradesh.
14. ACKNOWLEDGEMENT
Your Directors wish to place on record their immense appreciation for
the assistance and co- operation extended by the various statutory
authorities, Banks, Shareholders and Employee of the Company.
Place : Indore For and on Behalf of the Board.
Date : 30th May, 2011. CHAIRMAN