| Dear Members,
The Directors are pleased to present Twentieth Annual Report together
with the Audited Accounts of the Company for the year ended 31st March,
2014.
1. FINANCIAL RESULTS
The financial results of the company are summarized as below:
(Rs. in lacs) (Rs. in lacs)
Year Ended Year Ended
31/03/2014 31/03/2013
Income 69.21 39.94
Profit/(Loss) before tax 0.12 4.47
Profit after Tax and adjustments 0.09 4.46
Balance carried to Balance Sheet (16.29) (16.38)
2. REVIEW OF OPERATIONS
During the FY 2014, your company has earned a net profit of Rs.0.09
lacs after taking into account tax provisions and MAT credit
entitlement as against Rs. 4.46 lacs during FY 2013.
3. DIVIDEND
In view of inadequate profits, the Board of Directors is not in a
position to recommend any dividend for the year.
4. FUTURE OUTLOOK
The Company is operating with its own limited resources. As the
financial market is facing lot of challenges interest rates are
constantly changing, recoveries have become major concern, therefore
survival of small NBFC with limited resource is becoming difficult. In
the present scenario and based on the present business model the growth
potential in its business is limited.
5. DISCLOSURE UNDER THE LISTING AGREEMENT UNDER CLAUSE 32
Cash flow statement pursuant to Clause 32 of listing agreement is
annexed herewith as Annexure "A" and forming part of this report.
6. DIRECTORS' RESPONSIBILITY STATEMENT
In the preparation of the annual accounts, the applicable Accounting
Standards had been followed along with proper explanation relating to
material departures.
We had 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
31st March, 2014 and of the profit of the Company for the year ended on
that date.
We have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of this
Act for safeguarding the assets of the company and for the preventing
and detecting fraud and other irregularities.
The accompanying financial statements of the company have been prepared
by us on a going concern basis.
7. AUDIT COMMITTEE
The audit committee comprises of four Directors viz. Mr. B.P. Rauka,
Mr. Kishan Sharma, Mr. D.L. Arora and Anand Bagwe, the Committee met
four times during the year. For more details refer the corporate
governance.
8. DIRECTORS
Pursuant to the Companies Act 2013, term of independent Directors is 5
years accordingly Mr. Anand D. Bagwe being appointed for 5 years.
Mr. Dilip Arora, due to his preoccupation expressed his inability to
continue as independent Director for a term of 5 years as per
requirement of appointment of Independent Director under the Companies
Act, 2013 and resigned from the Directorship of the Company.
Mr. Vinod Kumar Sharma in respect of whom notice in writing from a
member has been received proposing Mr. Vinod Kumar Sharma as a
candidate for office of a Director of the Company. The nomination
committee has pursued all requisite details and have the opinion that
he posses requisite skills and experience for such appointment and
recommended his appointment for a term of 5 years. The Board also
recommend his appointment as Independent Director.
Pursuant to Article 58 of The Article of Association of the Company Mr.
Kishan Sharma retires by rotation and being eligible offers himself for
reappointment Mr. Kishan Sharma is a Chartered Accountant and possesses
about 31 years of experience in the field in the field of accountancy,
finance and Corporate laws. He has been associated with Company as a
director of the Company since 28th March 1995.
9. DEPOSIT
The company has not accepted fixed deposit since inception.
10. AUDITORS' REPORT
The notes referred to by the Auditors in their report are self
explanatory and do not require any further clarification except in
respect of shares of Somani Securities Pvt Ltd, for which the Company
has taken up the matter with the Company for non receipt of share
certificates and is pursuing the matter and necessary legal action is
being initiated.
11. AUDITORS
M/s S.K. Rathi & Co., Chartered Accountants, are being reappointed as
auditors of the Company and given their consent and if appointed will
be within the ceiling provided under the Companies Act, 2013.
12. INSURANCE
The Company does not possess any material properties, which need
insurance.
13. STATUTORY INFORMATION
i. The particulars under the Companies (Disclosure of Particulars in
the report of Board of Directors) Rules, 1988 require disclosure of
particulars regarding conservation of energy in Form A and technology
absorption in Form B prescribed by the rules. The Company not brings an
industry under the Schedule Form A & B disclosures are not applicable.
ii. The Company has no foreign exchange earnings and out go.
iii. None of the employees was in receipt of remuneration in excess of
limits prescribed under Section 217(2A) of the Companies Act, 1956 read
with Companies (Particulars of Employees) rules, 1975.
iv. The Company does not have any subsidiary with in meaning of
Section 4 of the Companies Act, 1956.
14. ACKNOWLEDGEMENTS
The Company gratefully acknowledges the co-operation and supports
extended by the Banker, Shareholders and Clients of the Company and
place on record its appreciation for the active support and assistance
of the employees for the performance.
For and on behalf of the Board of Directors
Place : Mumbai Laxminarayan Sharma Kishan Sharma
Date : 8th August 2014 Managing Director Director |