Dear Member
The directors have pleasure in presenting the 22nd Annual Report
together with the audited statement of accounts for the year ending
31st March, 2015.
1. BACKGROUND
F MEC INTERNATIONAL FINANCIAL SERVICES LIMITED is a Company Listed on
Delhi Stock Exchange and Non Deposit Accepting Non Banking Finance
Company ("NBFC"), holding a Certificate of Registration from the
Reserve Bank of India ("RBI")
2. FINANCIAL RESULTS
After making usual adjustment and meeting all expenses the profit of
the year is Rs. 65628 which is carried forward to the next year along
with forward brought Profit of Rs. 3066038.The financial results of the
company for the year ended 31st March, 2015 are as follows:- Rs.)
Particulars 2014 - 2015 2013 - 2014
Gross Income 760175 3339175
Profit Before Interest and Depreciation 105758 3297194
Finance Charges 3088 110
Gross Profit 105758 3297194
Provision for Depreciation - -
Net Profit Before Tax 105758 3297194
Provision for Tax 40130 231156
Net Profit After Tax 65628 3066038
Proposed Dividend on Equity Shares - -
Tax on proposed Dividend - -
Transfer to General Reserve 1758 2407983
Surplus carried to Balance Sheet 1758 2407983
3. WORKING OF THE COMPANY
The Company engaged in Non Banking Financial Activity. During the
period under review total income of the Company was Rs. 760175 as
against Rs.3339175 in previous year. The Company was able to earn a Net
Profit after tax of Rs. 65628 as against Rs. 3066038. in previous
financial year. Your Directors are putting their best efforts to
improve the performance of the Company.
4. CHANGE IN THE NATURE OF BUSINESS
There is no Changes in the Nature of Business of the Company during the
Financial Year.
5. LISTING INFORMATION
During the year the Securities of the Company were listed at Delhi
Stock Exchange. However, Securities and Exchange Board of India (SEBI)
vide its order dated 19th November, 2014 derecognized Delhi Stock
Exchange and, which had sought voluntary exit from the stock exchange
activities.
Also, consequent to voluntary exit of Delhi Stock Exchange from stock
exchange business, the management of the Company has filed an
application to Bombay Stock Exchange for getting listed its shares
through Direct Listing mode and Company has obtained No Objection
Certificate from the Delhi Stock Exchange in this regard. The
Management of the Company is hopeful to get listed at Bombay Stock
Exchange very soon.
6. SHARE CAPITAL
The Authorised Share Capital of the Company as on 31st March 2015 was
Rs. 3,50,00,000 ( Rupees Three Core Fifty Lacs ) and Paid-up Equity
Share Capital of the Company on March 31st, 2015, was Rs.3,10,07,000(
Rupees Three Core Ten Lacs Seven Thousand Only) .There was no change in
the Authorised or the Paid-up Capital/Subscribed Capital during FY
2014-15.
a. BUY BACK OF SECURITIES
The Company has not bought back any of its securities during the year
under review
b. SWEAT EQUITY
The Company has not issued any Sweat Equity Shares during the year
under review
c. BONUS SHARES
No Bonus Shares were issued during the year under review
d. EMPLOYEES STOCK OPTION PLAN
The Company has not provided any Stock Option Scheme to the employees
e. SHARES WITH DIFFERENTIAL RIGHTS
The Company has not issue any Equity shares with Differential Rights.
7. DIVIDEND
Considering the present conditions of business and growth stage of
Company, The Board of Directors of the company has decided not to
recommend any dividend for the Financial Year 2014-15. The management
being optimistic about the return from business activities has proposed
to plough back divisible profit into the main activities of the
Company.
8. CORPORATE GOVERNANCE
As per the circular issued by the SEBI vide circular No. CIR/CFD/POLICY
CELL/7/2014 dated 15th September 2014 to all the stock Exchanges
regarding Corporate Governance in Listed entities. The Clause 49 of the
listing Agreement is applicable to the Companies having paid up equity
share capital exceeding Rs.10 crore and Net Worth exceeding Rs.25
crore, as on the last day of the previous financial year. The Company
is not Covered any of the Criterion mentioned above so it is not
mandatory for the Company to Comply the Provisions of the Clause 49 of
the Listing Agreement. In the preview of this Circular Company is not
required to submit Corporate Governance Report. However Company will
take adequate steps as and when necessary in compliance of Clause 49 on
its discretion basis and annexed a Corporate Governance Report in
Annexure -I
9. EXTRACT OF ANNUAL RETURN
As required pursuant to section 92(3) of the Companies Act, 2013 and
rule 12(1) of the Companies (Management and Administration) Rules,
2014, an extract of annual return in MGT 9 as a part of this Annual
Report as Annexure II
10. NUMBER OF MEETING OF BOARD OF DIRECTORS
The Board of Directors duly met 11 times dated 12.04.2014, 14.05.2014,
30.06.2014, 13.07.2014, 02.09.2014, 15.10.2014, 01.11.2014, 13.11.2014,
15.01.2015, 11.02.2015 & 30.03.2015 during the year in respect of which
meetings proper notices were given and the proceedings were properly
recorded and signed in the Minutes Book maintained for the purpose. The
time gap between two consecutive meetings of the Board did not exceed
one hundred and twenty days. The details of such meetings are given in
the Corporate Governance Report annexed to this Report
11. DIRECTORS' RESPONSIBILITY STATEMENT
As required under Section 134(5) of the Companies Act, 2013, the
Directors of the Company hereby states that:
i. In the preparation of the annual accounts for the year ended 31st
March 2015, the applicable accounting standards had been followed
alongwith proper explanation relating to material departures.
ii. The Directors 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 the end of the financial year and of the Profit and
Loss of the company for that period.
iii. The Directors had 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 preventing and detecting fraud and other irregularities.
iv. The Directors had prepared the annual accounts on a Going Concern
Basis.
v. The Directors had laid down internal financial controls to be
followed by the company and that suchinternal financial controls are
adequate and were operating effectively ;and
vi. The Directors had devised proper system to ensure compliance with
the provisions of all applicable laws and such system were adequate and
operating effectively.
12. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION
FUND
Since there was no unpaid/unclaimed Dividend declared and paid last
year, the provisions of Section 125 of the Companies Act, 2013 do not
apply
13. CORPORATE SOCIAL RESPONSIBILITY
The Company has not developed and implemented any Corporate Social
Responsibility initiatives as the said provisions are not applicable.
14. MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT
Management's Discussion and Analysis Report for the year under review
annexed to this Directors' Report, provides a more detailed review of
the operating performance. Company. However this is the requirement of
Clause 49 and clause 49 is not applicable to the Company w.e.f
01.10.2014.Company has made this disclosure on its discretion as
annexed in Annexure-III.
15. DECLARATION BY AN INDEPENDENT DIRECTOR(S)
Mr. Ramesh Kumar, and Mr Rohit Agrawal, independent directors of the
company have given the requisite declaration in the Board Meeting dated
30.03.2015 that they meet the criteria of independence as provided in
Section 149(6) of Companies Act, 2013.
1 6. AUDIT COMMITTEE AND VIGIL MECHANISM
The company has Constituted Audit Committee of the Board in accordance
with the provision of Section 177 of the Companies Act, 2013. The Audit
Committee comprises of the following Directors:
Mr. Ramesh Kumar - CHAIRMAN
Mr. Rohit Agrawal - MEMBER
Mr. Bimal Aggarwal - MEMBER
17. VIGIL MECHANISM
The Vigil Mechanism of the Company pursuant to the provisions of
section 177(9) & (10) of the Companies Act, 2013 which also
incorporates a whistle blower policy in terms of the Listing Agreement,
includes an Ethics & Compliance Task Force comprising senior executives
of the Company. Protected disclosures can be made by a whistle blower
through an e-mail, or dedicated telephone line or a letter to the Task
Force or to the Chairman of the Audit Committee
18. REMUNERATION OF DIRECTORS
The Company has not given Remuneration to any Director of the Company.
So there is no requirement to give Disclosure under Section 197(12) of
the Companies Act 2013.
19. LOANS, GUARANTEE AND INVESTMENT
The particulars of Loans given, Investments made and Guarantee given by
company under Section 186 of Companies Act, 2013 is annexed as Annexure
IV.
20. PARTICULARS OF RELATED PARTY TRANSACTION
There were no contracts or arrangements entered into by the company in
accordance with provisions of section 188 of the Companies Act, 2013.
Further, all the related party transactions in terms of the Provisions
of Companies Act 2013 were entered in the ordinary course of business
during the financial year and were also at arm's length basis. There
are no materially significant related party transactions made by the
Company with Promoters, Directors, Key Managerial Personnel or other
designated person which may have a potential conflict with the interest
of Company at large
21. DIRECTORS AND KEY MANAGERIAL PERSONNEL
There were changes in the Board of the company. Mr. Bimal Aggarwal
Appointed as Managing Director of the Company and Mr. Sunil Kataria has
resigned from the post of the Director during the year. Mr. Manoj
Thakur appointed as Chief Financial Officer and Miss Priyanka Joshi
appointed as Company Secretary of the Company, in pursuance of Section
203 of the Companies Act 2013 as Key Managerial Personnel. Mr Rohit
Aggarwal appointed as an Independent Director of the Company as per
Section 149 of the Companies Act 2013 and Mrs. Rachna Aggarwal
appointed as Additional Women Director in Compliance of section 149 of
the Companies Act 2013.
22. AUDITORS & AUDITORS REPORT
M/s. Rajesh Ranjit & Co. Chartered Accountants, the Auditors of the
company who hold office upto the conclusion of the ensuing AGM have
shown their unwillingness to continue as Auditors of the company. In
view of this the company needs to appoint another statutory auditors
and, therefore, the Company has sent a proposal to M/s Sanjay K Singhal
& Co For appointing them as Auditors for the Financial Year ending
March 31,2016 and holds office upto the Conclusion of the Annual
General Meeting held in 2020. Wherein M/s Sanjay K Singhal & Co has
confirmed their willingness and eligibility under the provision of the
Companies Act, 2013 to be as statutory auditors of the Company, which
is subject to shareholders' approval.
The Notes on financial statement referred to in the Auditors' Report
are self explanatory and do not call for any further comments. The
Auditors' Report does not contain any qualification, reservation or
adverse remark.
23. DEPOSITS
The company had neither invited nor accepted any deposits from the
public within the meaning of the Companies (Acceptance of Deposits)
Rules 2014.
24. SUBSIDIARY COMPANIES
There is one subsidiary company namely YDS SECURITIES PRIVATE LIMITED.
A statement pursuant to Section 129(3) of the Companies Act, 2013
containing salient features of the financial statements of the
subsidiaries/associate companies/joint ventures of the company is
annexed as Annexure-V The Company further undertakes that annual
accounts of the subsidiary companies and the related detailed
information shall be made available to the shareholders of F MEC
INTERNATIONAL FINANCIAL SERVICES LIMITED. Seeking such information at
any point of time. The annual accounts of the subsidiary companies are
also available for inspection by any shareholder at the registered
office of the company.
25. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars as required under the provisions of Section 134(3)(m)
of the Companies Act, 2013 in respect of conservation of energy and
technology absorption have not been furnished considering the nature of
activities undertaken by the company during the year under review.
Further during the year under review, the Company has neither earned
nor used any foreign exchange.
26. RISK MANAGEMENT
During the year, your Directors developed and implemented an
appropriate risk management policy which contained the provisions
regarding entrusted with the responsibility to assist the Board in
Overseeing and approving the Company's enterprise wide risk management
framework and overseeing that all the risks that the organization
faces, identifying the element of risk which, in the opinion of the
Board may threaten the existence of the company and safeguarding the
company against those risks.
27. POLICIES OF NOMINATION AND REMUNERATION COMMITTEE
Pursuant to Section 178(3) of the Companies Act, 2013 the Nomination
and Remuneration Committee constituted by the Board of Directors have
laid down the following policies:
a) Criteria for nomination as Director, Key Managerial Personnel and
Independence of a Director:
b) Criteria for determining Remuneration of Directors, Key Managerial
Personnel and Senior Management Other Employees of the Company
c) Evaluation of performance of the members of the Board, Key
Managerial Personnel
28. CONSOLIDATED FINANCIAL STATEMENT
The Consolidated financial statement have been prepared by the company
in accordance with the Companies Act, 2013 ("the Act") and Accounting
Standard (AS) - 21 on Consolidated Financial Statements and other
applicable accounting standards issued by Institute of chartered
Accountant of India. The audited consolidated financial statements
together with Auditor Report form part of the Annual Report.
29. SECRETARIAL AUDITOR AND SECRETARIAL AUDIT REPORT
The Board has appointed M/s A.K Verma & Co, Practicing Company
Secretary, to conduct Secretarial Audit for the financial year 2014-15.
Pursuant to Section 204(1) of the Companies Act, 2013. the Secretarial
Audit Report for the financial year ended March 31,2015 is annexed in
MR-3 Annexure VI.
There is one observation marked by Secretarial Auditor in his
Secretarial Audit Report and the response of the management for this
observation is as under
Observation Management's Response
The Company has not made some it is confirmed by the management
disclosures on its website as that the required disclosure will be
required under Companies Act hosted on the website very soon.
2013 and listing Agreement.
30. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
In terms of the provisions of Section 197(12) of the Act read with
Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, no employees has drawn remuneration
in excess of the limits set out in the said rules.
31. INTERNAL AUDIT & CONTROLS
The Company has engaged M/s OSWAL SUNIL & CO , Chartered Accountant as
its Internal Auditor. During the year, the Company has implemented
their suggestions and recommendations to improve the control
environment. Their scope of work includes review of processes for
safeguarding the assets of the Company, review of operational
efficiency, effectiveness of systems and processes, and assessing the
internal control strengths in all areas. Internal Auditors findings are
discussed with the process owners and suitable corrective actions taken
as per the directions of Audit Committee on an ongoing basis to improve
efficiency in operations.
32. INTERNAL CONTROL SYSTEM
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations.
33. FORMAL ANNUAL EVALUATION OF THE BOARD
A statement indicating the performance of the Board and its committee
and its individual directors is annexed as Annexure VII
34. CODE OF CONDUCT AND ETHICS
The Board of directors of the Company has adopted a Code of Conduct and
Ethics for the Directors and Senior Executives of the Company. The
object of the Code is to conduct the company's business ethically and
with responsibility, integrity, fairness, transparency and honesty. The
Code sets out a broad policy for one's conduct in dealing with the
Company, fellow directors and with the environment in which the Company
operates. The code is available on the Company's website.
35. MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL
POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR
TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of
the Company occurred between the end of the financial year to which
this financial statement relate on the date of this report.
36. ACKNOWLEDGMENT
The Board expresses their gratitude to its all stakeholder's i.e
members, customers, Government agencies and their departments, Bankers
of the Company for their continued support and faith. The Director
places on record their sincere appreciation to all the employees of the
company for their contribution in the growth of the company.
Place: New Delhi On behalf of the Board of Directors
Date : 11.08.2015 F MEC INTERNATIONAL FINANCIAL SERVICES LIMITED
BIMALAGGARWAL RACHNAAGGARWAL
Managing Director Director
DIN:03590891 DIN:02604852
Add: 3700, Sector 23, Add: 3700, Sector 23,
Gurgaon-122017 Gurgaon-122017 |