To
The Members
Mufin Green Finance Limited
The Board of Directors are pleased to present the 7th (Seventh) Annual
Report of the Company, together with the Audited Financial Statements for the Financial
Year (FY) ended March 31, 2023.
1. FINANCIAL SUMMARY
(Rs. in lakhs)
Particulars |
2022-23 |
2021-22 |
Total Revenue |
3,530.16 |
1,527.82 |
Total Expenses |
2,451.04 |
259.92 |
Profit Before Tax |
1,079.12 |
1,267.90 |
Less:- Tax (including deferred tax) |
267.45 |
180.71 |
Profit for the period |
811.67 |
1,088.19 |
Other Comprehensive Income |
(2.04) |
0.19 |
Total comprehensive profit for the year |
809.63 |
1,088.38 |
Paid up Equity Share Capital (Face Value of Rs. 1/- per
Share) |
503.32 |
503.32 |
Basic and diluted EPS (In Rs.) |
1.73 |
2.52 |
2. STATE OF COMPANY AFFAIRS & OPERATIONS
The Company is registered with Reserve Bank of India as a Non-Deposit
taking Non-Banking Financial Company (NBFC) and engaged primarily in the business of
Investments and providing loans. The Company is listed on BSE Limited.
Indian economy has moved on after its encounter with the COVID-19
pandemic, staging a full recovery in FY 22 ahead of many developing nations and positioned
itself to ascend to pre-pandemic growth path in FY 23. Yet in the current year, India also
faced the challenge of reigning in inflationthat the European strife accentuated. RBI
raised policy rates cumulatively by 250 bps during the financialyear. Despite high
inflation to improved fleet utilizations and passenger vehicles in FY 23.
For the year ended March 31, 2023 the Company earned Total Revenue of
Rs. 3,530.16 lakhs and a Net Profit (after tax expense) of Rs. 811.67 lakhs, resulting in
an EPS of 1.73.
Your company has achieved its highest ever disbursals, collections in
FY 23. The disbursements for FY 23 grew by 507% to 273.45 crores. The business AUM of the
company stood at 261.61 crores which is a growth of 441% YOY.
The company continued to hold a strong liquidity position with 1714.84
lakhs as cash balance and cash equivalent as at end of 31 March, 2023. The Asset Liability
Management (ALM) is comfortable with no negative cumulative mismatches across all time
buckets.
The company will look to scale up by improving efficiencies and the
company?s strong sales and collections set-up combined with digital initiatives will
support in improving efficiencies.
3. CHANGE IN THE NATURE OF BUSINESS, IF ANY
There is no change in the nature of business of your Company during the
year under review.
4. TRANSFER TO RESERVES
There has been no transfer to general reserves during the year. As
required by Reserve Bank of India, the Company made a transfer of Rs. 162.43 lakhs to
statutory reserves constituting 20% of the net profits made during the year under review.
6. DIVIDEND
After careful assessment of the available profit during the financial
year ended 31st March, 2023, your Directors have not recommended any dividend for the
financial year ended 31st March, 2023.
7. CAPITAL STRUCTURE Authorised Share Capital
During the year under review Authorized Share Capital of the Company
has been increased from Rs. 4,50,00,000
(Rupees Four Crore Fifty Lakh only) comprising of 2,25,00,000 (Two
Crores Twenty Five Lakh) Equity Shares of Rs.
2 (Rupees Two) each to Rs. 7,00,00,000 (Rupees Seven Crores only)
comprising of 3,50,00,000 (Three Crores Fifty
Lakh) Equity Shares of Rs. 2 (Rupees Two) each.
Further, Equity Shares of Rs. 2 each has been splitted into two Equity
Shares of Rs. 1 each.
Paid up Share Capital
During the year under review, the Company has allotted 35,54,502 Equity
Shares of face value of Rs. 2 each at a premium of 124.60/- per Equity Share by way of
preferential allotment on a private placement basis. Accordingly, paid up share capital of
your Company stands increased from 2,16,11,360 Equity Shares of Rs. 2 each to 2,51,65,862
Equity Shares of Rs. 2 each.
8. SUBSIDIARIES/JOINT VENTURES/ASSOCIATE COMPANIES
The Company doesn?t have any subsidiary, joint venture or
associate Company.
9. NON-CONVERTIBLE DEBENTURES
During the year under review, your Company has issued 11,63,550
Secured, Rated, Redeemable, Non-Convertible Debentures ("NCD"), having face
value of Rs. 500 each aggregating to 58.17 Crore on a private placement basis.
Non-Convertible Debentures amounting Rs. 58.17 Crore were outstanding as on 31st March,
2023.
10. DIRECTORS AND KEY MANAGERIAL PERSONNEL
Appointment, Re-appointment and Resignation
Mrs. Srishti Agarwal will retire at the ensuing Annual General Meeting
(AGM) and being eligible, has offered herself for re-appointment. The Board recommends her
re-appointment to the members in the ensuing AGM.
During the period under review, there were change in Directors and Key
Managerial Personnel of the Company, details of change in Directors and Key Managerial
Personnel are as follows:
Sl. No. |
Name |
Designation |
Date of Change |
Appointment/Cessation |
1. |
Mr. Pankaj Gupta |
Chief Executive Officer |
18.05.2022 |
Appointment |
2. |
Mr. Adish Jain |
Chief Financial officer |
28.09.2022 |
Cessation |
3. |
Mrs. Gunjan Jain |
Chief Financial officer |
14.11.2022 |
Appointment |
4. |
Mr. Aishwarya Mani Kachhal |
Independent Director |
17.02.2023 |
Appointment |
Retirement of director by rotation
Mrs. Srishti Agarwal (DIN 10229578), non-executive non independent
director of the Company will retire by rotation at the ensuing AGM and being eligible,
offers herself for re-appointment. The Nomination and Remuneration Committee in its
meeting held on August 29, 2023 has recommended to the Board of Directors and Members,
reappointment of Mrs. Srishti Agarwal as director of the company retiring by rotation. Her
profileis given in the Notice of the ensuing
AGM, forming part of this Annual Report.
Declaration by Independent Directors
All Independent Directors have given declaration that they meet the
criteria of independence with relevant integrity, expertise, experience and proficiency as
provided under Section 149 read with Schedule IV of the Act and Regulation
16 of the SEBI Listing Regulations and have also complied with the code
of conduct of Directors and Senior Management. They have also given declaration that their
names were included in the data bank of Independent Directors being maintained with
Indian Institute of Corporate Affairs? under Rule 6 (3) of the Companies
(Appointment and
Qualification of Directors) Rules, 2014.
Policies on appointment of Directors
The management of the Company is immensely benefitted from the
guidance, support and mature advice from members of the Board of Directors who are also
members of various committees. The Board consists of directors possessing diverse skill,
rich experience to enhance quality of its performance. The Company has adopted a Policy on
Board
Diversity formulated by the Nomination and Remuneration Committee.
Annual Performance Evaluation of the Board
The Board, the Committees of the Board and independent directors
continuously strive for efficient functioning of
Board and its committees and better corporate governance practices. A
formal performance evaluation was carried out at the meeting of the Board of Directors
held on May 25, 2023 where the Board made an annual evaluation of its own performance, the
performance of directors individually as well as the evaluation of the working of its
various
Committees for the Financial Year 2022-23 on the basis of a structured
questionnaire on performance criteria. The
Board expressed its satisfaction with the evaluation process. The
observations made during the evaluation process were noted and based on the outcome of the
evaluation and feedback of the Directors, the Board and the management agreed on various
action points to be implemented in subsequent meetings.
The evaluation process endorsed cohesiveness amongst directors, the
openness of the management in sharing the information with the Board and placing various
proposals for the Board?s consideration and approval.
The Independent Directors met on March 28, 2023 without the presence of
other directors or members of Management. All the Independent Directors were present at
the meeting. In the meeting, the independent directors reviewed performance of Non
Independent Directors, the Board as a whole and Chairman. They assessed the quality,
quantity and timeliness of flow of information between the Company Management and the
Board. The Independent Directors expressed satisfaction over the performance and
effectiveness of the Board, individual Non-Independent Directors.
Meetings of the Board
During the year, ten (10) meetings of the Board of Directors were held.
The details of Board/Committee Meetings and the attendance of Directors are provided in
the Corporate Governance Report, attached to this Report.
11. DEPOSIT UNDER CHAPTER V OF THE COMPANIES ACT, 2013
Your Company has not accepted any public deposits during the year under
review and shall not accept any deposits from the public without obtaining prior approval
of the RBI. Further, your Company being an NBFC, disclosure requirements under Chapter V
of the Act read with Rule 8(5)(v) and 8(5)(vi) of the Companies (Accounts) Rules, 2014 are
not applicable to your Company.
12. AUDITORS? & AUDIT REPORTS
Statutory Auditors
In terms of the provisions of Section 139 of the Companies Act, 2013,
M/s. Chaturvedi & Partners, Chartered Accountants (Firm Registration No. 307068E),
were re-appointed as the Company?s Statutory Auditors by the shareholders at their
4th AGM held on September 30, 2020, for five years periodof i.e. till the
conclusion of 9th AGM.
Further, M/s. Chaturvedi & Partners, Chartered Accountants (Firm
Registration No. 307068E) has resigned from the office of the Statutory Auditors with
effect from August 12, 2023 and The Board of Director in their meeting held on August 21,
2023 has appointment M/s Tattvam & Co., Chartered Accountants (Firm Registration No.
015048N) to fill the casual vacancy caused due to resignation M/s. Chaturvedi &
Partners, Chartered Accountants and recommended to the members for appointment in the
ensuing Annual General Meeting.
The Board received a certificate form M/s Tattvam & Co., Chartered
Accountants (Firm Registration No. 015048N) intimating that, if that firm will be
appointed at ensuing Annual General Meeting, it shall be in accordance with the limits
specified under Section 139(1) read with qualification as prescribed under . Section 141of
the Companies Act, 2013
The reports of Statutory Auditors on Financial Statements for the FY
2022-23 forms part of the Annual Report. There are no qualifications, reservations,
adverse remarks, disclaimer or emphasis of matter in the Auditors? Reports.
Secretarial Auditor
In terms of the provisions of Section 204 of the Companies Act, 2013
and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
Company had appointed Mr. Abhay Kumar, Practicing Company Secretary, to undertake the
Secretarial Audit of the Company for the FY ended March 31, 2023. The Secretarial Auditors
in their Secretarial Audit Report have reported that The Company has received notice for
non- compliance of
Regulation 27(2) of SEBI (LODR) 2015 regarding delay in filing of
Corporate Governance Report for the quarter ended
June 30, 2022 by 4 days.
BSE has imposed a fine of Rs. 8,000 against the non-compliance, which
was paid by the Company as per the mail dated August 22, 2022. The Secretarial Audit
Report is attached as Annexure-1 to this report. The Board has re-appointed Mr. Abhay
Kumar, Company Secretary in Practice, as Secretarial Auditors of the Company for FY
2023-24.
13. DIRECTORS? RESPONSIBILITY STATEMENT
Pursuant to Section 134 of the Companies Act, 2013, with respect to
Directors? Responsibility Statement, it is hereby confirmed that:
in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation relating to material
departures; 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 FY i.e. March 31, 2023 and of the profit and
loss of the Company for the year ended
March 31, 2023;
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; the Directors have prepared the annual accounts on a going concern
basis;
the Directors had laid down internal financial controls to be followed
by the Company and that such internal financial controls are adequate and were operating
effectively.
Based on the framework of internal financial controls for financial
reporting and compliance systems established and maintained by the Company, work performed
by the internal, statutory and secretarial auditor and the reviews performed by the
management and the relevant Board committees, including the
Audit Committee, the Board is of the opinion that the Company?s
internal financial controls were adequate and effective during the FY 2022-23; and
the Directors had devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating effectively.
14. INTERNAL FINANCIAL CONTROLS
Internal Financial Controls laid down by the Company is a systematic
set of controls and procedures to ensure orderly and efficientconduct of its business
including adherence to the Company?s policies, safeguarding of its assets, prevention
and detection of frauds and errors, accuracy and completeness of the accounting records
and timely preparation of reliable financial information. Internalfinancialcontrols not
only require the system to be designed effectively but also to be tested for operating
effectiveness periodically.
The Board is of the opinion that internal financial controls with
reference to the financial statements were tested and reported adequate and operating
effectively. The internalfinancialcontrols are commensurate with the size, scale and
complexity of operations.
15. RESERVE BANK OF INDIA GUIDELINES
Your Company complies with the direction(s), circular(s),
notification(s) and guideline(s) issued by the Reserve Bank of India as applicable to your
Company as Non-Deposit taking Non-Banking Financial Company ("NBFC").
16. DETAILS OF FRAUDS REPORTED BY AUDITORS
There were no frauds reported by the Statutory Auditors under the
provisions of Section 143(12) of the Companies Act, 2013 and the Rules made there under.
17. DISCLOSURES OF ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS
There were no significant and material orders passed by the regulators
or courts or tribunals impacting the going concern status of the Company and its
operations in future.
18. COMMITTEES OF BOARD
The Company has the following committees of the Board of Directors as
on March 31, 2023 and the details pertaining to such committees are mentioned in the
Corporate Governance Report, which forms part of the Annual Report.
Audit Committee
Nomination and Remuneration Committee
Stakeholders Relationship Committee
Corporate Social Responsibility Committee
19. NOMINATION AND REMUNERATION POLICY
The Company?s policy on appointment of Directors is available on
the Company?s website on www.mufingreenfinance.com.
The policy on remuneration and other matters provided in Section 178(3)
of the Act has been disclosed in the Corporate Governance Report, which is a part of this
report.
20. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
The Company had formulated a policy on Related Party Transactions
(RPTs?), dealing with the review and approval of
RPTs. The Policy provides for identification of RPTs, necessary
approvals by the Audit Committee/Board/Shareholders, reporting and disclosure requirements
in compliance with the Companies Act, 2013 and provisions of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015.
All the transactions executed by the Company during the FY, with
Related Parties, were on arm?s length basis and in ordinary course of the business.
All such Related Party Transactions were placed before the Audit Committee/Board for
approval, wherever applicable. Also, the Company has obtained shareholders approval on the
material Related Party Transaction in the previous Annual General Meeting.
During the FY, the Company has entered into
contract/arrangement/transaction with related party, which is considered material in
accordance with Regulation 23 of the SEBI (Listing Obligations and Disclosure
Requirements)
Regulations, 2015 and the same was approved by the Shareholders in the
previous Annual General Meeting held on September 28, 2022. The policy for determining
material? subsidiaries and the policy on materiality on Related Party
Transactions and dealing with Related Party Transactions, as approved by the Board, may be
accessed on the website of the Company i.e. www.mufingreenfinance.com. Your Directors draw
attention of the members to Note No. 41 to the Financial Statements which sets out the
Related Party disclosures. Since all Related Party Transactions entered into by the
Company were on arm?s length basis and in the ordinary course of the business and the
Company had not entered into any material related Party contract as per the Companies Act,
2013, the Form AOC-2 is not required to be provided.
21. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Considering that the Company is a Non-Banking Financial Company which
is not involved in any manufacturing or processing activities, the particulars as required
under Section 134(3)(m) of the Companies Act, 2013 read with Rule
8(3) of the Companies (Accounts) Rules, 2014 regarding conservation of
energy and technology absorption are not applicable. Further, there was Foreign Exchange
outgo during the FY 2022-2023, details of which are as follows:
(Rs. In Lakhs)
Nature |
For the year ended March 31, 2023 |
For the year ended March 31, 2022 |
Professional Fee |
58.18 |
Nil |
Sponsorship Fee |
2.79 |
Nil |
Travelling Expenses |
2.93 |
Nil |
22. PARTICULARS OF EMPLOYEES
Disclosure with respect to the remuneration of Directors and Employees
as required under Section 197 (12) of the
Companies Act, 2013 and Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, as amended, is annexed as Annexure-2
which forms part of this Report.
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, during the FY 2022-23 there was no employee drawing remuneration
in excess of the limits set out in the said rules.
23. ANNUAL RETURN
Pursuant to Section 92(3) and Section 134(3)(a) of the Companies Act,
2013, the Company has placed a copy of the
Annual Return as at March 31, 2023 on its website at
www.mufingreenfinance.com By virtue of amendment to Section 92(3) of the Companies Act,
2013, the Company is not required to provide extract of Annual Return (Form MGT-9) as part
of the Board?s Report.
24. CORPORATE GOVERNANCE
As a responsible corporate citizen, the Company is committed to
maintain the highest standards of Corporate Governance and believes in adhering to the
best corporate practices prevalent globally.
A detailed Report on Corporate Governance pursuant to the requirements
of Regulation 34 read with Schedule V of the SEBI Listing Regulations, is attached to this
Report as Annexure-3. A certificate Secretary confirmingcompliance with the conditions of
Corporate Governance, as stipulated in Clause E of Schedule
V to the SEBI Listing Regulations is attached to the Corporate
Governance Report.
The Board Members and Senior Management Personnel have affirmed
compliance with the Code of Conduct for Directors and Senior Management for the year ended
March 31, 2023. A certificate from the Managing Director confirming the same is attached
to the Corporate Governance Report.
A certificate from the CEO and CFO confirming correctness of the
financial statements, adequacy of internal control measures, etc. is also attached to the
Corporate Governance Report.
25. MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for the year under
review, as stipulated under the SEBI Listing Regulations, is presented in a section
forming part of this Annual Report and is annexed to this report as Annexure 4.
26. VIGIL MECHANISM / WHISTLE BLOWER POLICY
The details of Vigil Mechanism (Whistle Blower Policy) adopted by the
Company have been disclosed in the Corporate Governance Report and forms an integral part
of this report.
27. PARTICULARS OF LOAN, GUARANTEES OR INVESTMENTS
The provisions of Section 186 of the Companies Act, 2013 pertaining to
investment and lending activities is not applicable to the Company since the Company is
Non-Banking Financial Company (NBFC) whose principal business is investment in securities
and providing loan of all kinds.
28. MATERIAL CHANGES AND COMMITMENTS
No material changes or commitment has occurred after the close of the
FY 2022-23 till the date of this Report, which affects the financial position of the
Company.
29. CORPORATE SOCIAL RESPONSIBILITY
The Company?s? approach towards Corporate Social
Responsibility (CSR) is to interweave social responsibility of the Company into
Company?s mainstream business functions. CSR is an integrated part of the Company
Policy.
The Company is committed to bring a tangible change in the lives of
people living in the surroundings by giving them employment opportunities, as well as by
their socioeconomical development. All CSR initiatives are being planned, executed and
monitored by the Committee/ Board. The CSR programs are aligned with Govt. mandate at
Local and
State Level and as per the specific needs of the Community.
Some of the initiatives taken by the Company in field of socio
economical development, education & health are
- Promotion of education - training & awareness program extending
support to children for their education, provided different facilities for schools,
provided apprentices training to the nearby students to increase their skill.
A Board level Committee of CSR has been constituted. The details of
membership of the Committee & the meetings held are detailed in the Corporate
Governance Report, forming part of this Report. The Corporate Social Responsibility
Policy is available on the website of the Company at the
www.mufingreenfinance.com.
The Annual Report on Corporate Social Responsibility activities is
annexed to this report as Annexure-5.
30. COMPLIANCE WITH SECRETARIAL STANDARDS OF INSTITUTE OF COMPANY
SECRETARIES OF INDIA
The Company has complied with the Secretarial Standard-1 on
Meetings of the Board of Directors? and Secretarial Standard-2 on General
Meetings? issued by the Institute of Company Secretaries of India.
31. BOARD EVALUATION
A statement on annual evaluation by the Board of its performance and
performance of its committees as well as Individual Directors forms part of the Corporate
Governance Report attached to this report.
32. DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
The Company has a policy on prevention of sexual harassment at the
workplace. The Company has complied with the provisions relating to the constitution of
Internal Complaints Committee under Sexual Harassment of Women at Work-place (Prevention,
Prohibition and Redressal) Act, 2013.During the FY 2022-23, there were no complaints
received.
33. COST RECORDS AND AUDIT
Maintenance of cost records and requirement of cost audit as prescribed
under the provisions of Section 148(1) of the
Companies Act, 2013 are not applicable for the business activities
carried out by the Company.
34. INVESTOR SERVICES
In its endeavor to improve investor services, your Company has taken
the following initiatives:
An Investors Section on the website of the Company
www.mufingrenfinance.com has been created. There is a dedicated e-mail id
apmfinvestltd@gmail.com for sending communications to the Company Secretary.
Disclosure made to the Stock Exchange are promptly uploaded on
the website of the Company for information of the Investors.
Members may lodge their requests, complaints and suggestions on this
e-mail as well.
35. ACKNOWLEDGMENTS
The Directors thank the Shareholders, Banks and other Lenders,
Customers, Vendors and other business associates for the confidence reposed in the Company
and its management and look forward to their continued support. The
Board places on record its appreciation for the dedication and
commitment of the employees at all levels, which has continued to be our major strength.
We look forward to their continued support in the future.
For and on behalf of the Board
Mufin Green Finance Limited |
|
|
Manoj Kumar Bhatt |
Place: New Delhi |
Chairman |
Dated: 29.08.2023 |
DIN: 09452843 |