To
The Members,
Dhenu Buildcon Infra Limited
Your Directors hereby present the 115th Annual Report
of the Company together with the Audited Statement of Accounts for the year ended 31st
March, 2023.
1. FINANCIAL STATEMENTS & RESULTS:
a. Financial Results
The Company's performance during the year ended 31st March,
2023 as compared to the previous financial year is summarized below:
(Amount in Thousands)
Particulars |
Year ended March |
Year ended |
|
31, 2023 |
March 31, 2022 |
Revenue from operation |
0 |
4 |
Profit/Loss before
interest, depreciation, tax and Extra Ordinary Items |
(4254) |
(385) |
Less: Depreciation/amortization |
0 |
0 |
Profit/Loss before interest, tax and |
(4254) |
(381) |
Extra Ordinary Items |
|
|
Less: Finance Costs |
0 |
0 |
Profit/Loss before tax and Extra |
(4254) |
(381) |
Ordinary Items |
|
|
Less: Provision for taxes on income |
|
|
--Current tax |
0 |
0 |
--Earlier Year Tax Adjustments |
168 |
0 |
--Deferred tax liability / (asset) |
(1106) |
(99) |
Profit/Loss before Extra-Ordinary Items |
(3316) |
(282) |
Extra Ordinary Items (Net of Tax) |
0 |
0 |
Profit/Loss for the year |
(3316) |
(282) |
Add/(Less): Other Comprehensive Income |
3802 |
(3912) |
Total Comprehensive Income / |
486 |
(4195) |
(Expenses) for the year |
|
|
b. Operations:
Your Directors regret to report that the company has continued to
insure losses amounting to Rs. 3,315,489/- in the financial year under review as compared
to losses of Rs. 2,82,227/- incurred during the previous financial year.
Due to losses in the previous years, your directors are striving to
recover from the financial crisis and are exploring the other prospective growth avenues
so as to restore the Company's financial position and the Company is in course to
manage and control its cost overruns and to review new emerging opportunities for
advancement of the Company.
2. DIVIDEND:
Yours Directors do not recommend any dividend for the year ended 31st
March, 2023 in view of loss incurred during the year.
3. TRANSFER TO RESERVES:
Since the Company has incurred loss during the period under review,
thus no amount was available to be transferred to the reserves.
4. SHARE CAPITAL OF THE COMPANY:
The Paid up Equity Share Capital, as on 31st March, 2023 was
Rs. 1,83,00,000/- divided into 1,83,00,000 Equity shares, having face value of Re. 1/-
each fully paid up. During the year under review, the Company has not issued any shares
with or without differential voting rights. It has neither issued employee stock options
nor Sweat equity shares and does not have any scheme to fund its employees to purchase the
shares of the Company.
5. BOARD OF DIRECTORS AND KMP:
Director retire by rotation:
In terms with the provisions of Companies Act, 2013 and in terms of
articles of Association of the Company, Mrs. Samira Maharishi, retires by rotation at the
forthcoming Annual General Meeting and being eligible, offer herself for re-appointment.
The Profile and other information as required by the Regulation 36 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 & SS-2 of ICSI hsave been
given in the Notice convening the 115th AGM of the Company.
Appointment & cessation of Director:
During the year under review, the board recorded following appointment
and cessation:-
Mr. Himanshu Agarwal (DIN: 09569882), appointed as
Additional Director in the category of Non-Executive Independent Director w.e.f 24th
May, 2022 was regularized as the Director of the Company at the 114th AGM
w.e.f. 29th September, 2022. Ms. Poonam Somaram Gehlot (DIN:09726324)
appointed as Additional Director in the category of Non-Executive Independent Director
w.e.f 06th September, 2022 was regularized as the Director of the Company in the category
of Non-Executive Independent Director at the 114th AGM w.e.f. 29th
September, 2022. Mrs. Samira Vikash Maharishi (DIN: 07089229) who was
appointed as Additional Director w.e.f 15th February, 2022 was further
regularized as the Director of the Company in the category of Non-Executive Director at
the AGM held for the Financial year ended 2022 with effect from 29th September, 2022.
Information regarding the change in management w.e.f. end of Financial
Year 31st March, 2023 till the date of the Report:
Mr. Piyush Ishwardas Mehta tendered his resignation from the
position of Manager of the Company w.e.f. close of business hours on 2nd August, 2023. Mr.
Vikash Maharishi (DIN:07073642) tendered his resignation from the position of
Chief Financial Officer(CFO) & Director of the Company w.e.f. close of business hours
on 07th August, 2023. Mr. Gaurav Mundra standard his resignation from
the position of Company Secretary & Compliance Officer of the Company w.e.f. close of
business hours on 31st August, 2023.
Except for the above changes, there were no appointments and cessations
of Directors/KMP on Board of the Company.
Key Managerial Personnel:
Key Managerial Personnel's (KMP's) of the Company under
Section 203 of the Companies Act, 2013 as on 31st March, 2023, are as follows:
Sr. No. Name |
Designation |
1 Mr.Piyush Mehta |
Manager |
2 Mr. Vikash Maharishi |
Chief Financial Officer (CFO) |
3 Mr. Gaurav Mundra |
Company Secretary |
None of the Directors are disqualified from being appointed as
Directors as specified in section 164 of Companies Act, 2013.
Familiarization Program:
In terms of Regulation 25 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulation, 2015, the Company periodically organizes a program in
order to familiarize Independent Directors with the Company's operations. The details
of familiarization programmed are available on the website of the Company
www.dhenubuildconinfra.com.
6. STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS
The Company has received declarations from all the Independent
Directors of the Company, confirming that they meet with the criteria of independence as
prescribed both under sub-section (6) of Section 149 of the Companies Act, 2013 read with
schedules & rules issued thereunder as well as SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (including any statutory modification(s) or
re-enactment(s) thereof for the time being in force) in respect of the financial year
ended 31st March, 2023. Separate Meeting of Independent Director was held on 31st
March, 2023 with full attendance of Independent Directors.
The Independent Directors have confirmed that they have registered
their names in the data bank maintained withthe Indian Institute of Corporate Affairs
(IICA'). In terms of Section 150 of the Act read with Rule 6(4) of the
Companies(Appointment & Qualification of Directors) Rules, 2014, the Independent
Directors are required to undertake online proficiency self-assessment test conducted by
the IICA within a period of two year from the date of inclusion of their names in the data
bank. The Independent Directors to whom the provisions of proficiency test are applicable,
will take the said online proficiency self-assessment test in due course. The Company have
also received a declaration from all the Independent Directors under Rule 6 sub-rule (3)
of The Companies (Appointment and Qualifications of Directors) Rules, 2014, regarding
inclusion of their name in Data Bank of Independent Director maintained by the Indian
Institute of Corporate Affairs at Manesar. The matrix of core
skills/expertise/competencies identified by the Board of directors as required in the
context of its business and sector for it to function effectively and those actually
available with the Board are:
Skills |
Himanshu Agarwal |
Poonam Somaram Gehlot |
Industry Knowledge |
- |
- |
Finance & Accounts |
- |
- |
Risk Management |
- |
- |
Marketing/Sales/Media/
Administration |
- |
- |
Legal/Regulatory |
- |
- |
Business Operations |
- |
- |
Corporate Leadership |
- |
- |
The Board is of the opinion that the Independent Directors of the
Company possess requisite qualifications, experience and expertise and they hold highest
standards of integrity and skills as stated above.
7. DEPOSITS:
Your Company is a non-deposit taking Company (NBFC-ND).During the year
under review company has neither accepted nor renewed any fixed deposits from public
within the meaning of section 73 of the Companies Act, 2013 and Companies (Acceptance of
Deposits) Rules, 2014.
8. DISCLOSURE OF INTERNAL FINANCIAL CONTROLS:
The Internal Financial Controls with reference to financial statements
as designed and implemented by the Company are adequate. During the year under review, the
Internal Auditors had not reported any matter under Section 143(12) of the Act, therefore
no detail is required to be disclosed under Section 134(3) (ca) of the Act.
9. ANNUAL RETURN:
Pursuant to the provisions of Section 92(3) of the Act read with the
Companies (Management and Administration) Rules, 2014, an Annual Return in Form MGT-7 as
on 31st March, 2023 has been placed on the website of the Company at
http://www.dhenubuildconinfra.com/investors.html
10. PARTICULARS OF THE MEETINGS OF THE BOARD
The meetings of the Board of Directors are normally held at its
Registered Office in Mumbai. Meetings are generally schedule well in advance and the
notice of each Board Meeting was given in writing to each Director. The Board meets at
least once in every quarter to review the quarterly performance and the financial results
of the Company.
During the financial year under review, 8(Eight) Board meetings were
held on 16thApril, 2022, 24th May, 2022, 8th August,
2022, 27th August, 2022, 06th September, 2022, 15th
September, 2022, 12th November, 2022, 17th January, 2023. The
necessary quorum was present for all the meetings. The interval between two Board meetings
was well within the maximum period mentioned under Section 173 of the Act.
Details of Directors as on sand their attendance at the Board meetings
and Annual General Meeting ("AGM") during the financial year ended 31st
March, 2023 are given below:
Name of the |
Particulars of Attendance |
Other Board Representations |
Director |
Board Meeting |
|
|
|
|
|
Held during the year |
Attended |
Last AGM (29.09.2022) |
Directorship in Companies
including this company |
Committees Membership
(Other s) |
Commit tees Chairmanship
(Others) |
*Mr.Himanshu |
|
|
|
|
|
|
Agarwal |
8 |
6 |
Yes |
1 |
- |
- |
Mr.Vikash |
|
|
|
|
|
|
Maharishi |
8 |
8 |
Yes |
6 |
- |
- |
Ms.Jenifer |
8 |
|
|
|
|
|
Machado |
|
8 |
Yes |
1 |
- |
- |
Mrs.Samira |
|
|
|
|
|
|
Maharishis |
8 |
8 |
Yes |
4 |
2 |
- |
##Ms.Poonam |
|
|
|
|
|
|
Gehlot |
8 |
4 |
Yes |
1 |
- |
- |
*Since the appointment of Mr. Himanshu Agarwal as non-executive
independent director of the company was approved in the Board Meeting dated 24th May,
2022,so during his tenure he was entitled to attend 6 Board meetings during the financial
year 2022-2023.
## Since the appointment of Ms. Poonam Gehlot as non-executive
independent director of the company was approved in the Board Meeting dated 06th
September, 2022, so during her tenure she was entitled to attend 4 Board meetings during
the financial year 2022-2023.
11. DISCLOSURES RELATED TO COMMITTEES OF THE BOARD:
The Committees of the Board focus on certain specific areas and make
informed decisions in line with the delegated authority. The following substantive
Committees constituted by the Board function according to their respective roles and
defined scope:
Audit Committee
Nomination and Remuneration Committee Stakeholders
Relationship Committee
AUDIT COMMITTEE:
Composition:
The Audit Committee is comprised of 3(three) members, out of whom two
is Non-Executive Director and one is Non-Executive Independent Director. However during
the year under review, pursuant to the cessation of Mr. Shivanand Hemmady (DIN:
00838098)and Ms. Mamtaben Kabariya (DIN: 06559357) and appointment of Ms. Samira Maharishi
(DIN: 07089229),the Board recomposed the committee at its meeting held on 16th
April, 2022. Further, on 24th May, 2022 , the Board appointed Mr. Himanshu
Agarwal as non-executive Independent director of the Company and again re-composed the
Committee to add Mr. Himanshu Agarwal as Chariman of the Committee. On 12th
November, 2022, the Board once again re-composed the committee to add Ms. Poonam Gehlot
who was appointed as Independent Director of the Company on 06th September,
2022 as a member of the Committee.
Therefore, as on 31st, March, 2023, Mr. Himanshu Agarwal is
Chairman and Mr. Vikash Maharishi and Ms. Poonam Gehlot are committee members of the Audit
Committee.
Meetings & Attendance:
During the year 5 (Five) Audit Committee meetings were held on 16th
April, 2022, 24th May, 2022, 08th August, 2022, 12th
November, 2022 and on17th January, 2023.
The gap between all the Audit Committee Meetings held during the year
was less than one hundred and twenty days. The meetings were scheduled well in advance and
the time gap between any two meetings did not exceed more than one hundred twenty days.
The following table showing attendance of members is as per the details
mentioned above:
|
|
|
NO. OF MEETINGS |
NAME |
CATEGORY |
DESIGNATION |
HELD DURING THE
YEAR/TENURE |
ATTENDED |
Mr. Himanshu Agarwal |
Non-Executive Independent
Director |
Chairman |
4 |
4 |
*Mr. Vikash Maharishi |
Non-Executive Director |
Member |
5 |
5 |
fMs. Samira Maharishi |
Non-Executive Director |
Member |
3 |
3 |
Ms Poonam Gehlot |
Non-Executive Independent
Director |
Member |
2 |
2 |
*Mr.Vikash Maharishi has tendered his resignation w.e.f 07th
August, 2023, from the position of Chief Financial Officer(CFO) & as a Director from
the Company, the same has also approved by the Board at its meeting held on 09th
August, 2023.
The Audit Committee assists the Board in its responsibility of
overseeing the quality and integrity of the accounting, auditing and reporting practices
of the Company and its compliance with the legal and regulatory requirements. The terms of
reference of Audit Committee cover the areas mentioned under Section 177 of the Companies
Act, 2013.
NOMINATION & REMUNERATION COMMITTEE:
Composition:
As on 31st March, 2023, the Nomination & Remuneration
Committee comprised of 3(three) members, out of whom two is Non-Executive Director and one
is Non-Executive Independent Directors .
Meetings and Attendance:
During the year under review, the Committee met once during the year on
24th May, 2022. The meeting was scheduled well in advance and the notice of
this Meeting was given in writing to each Director.
The composition of the Nomination & Remuneration Committee and the
attendance record of members for the financial year 2022-23 are as follows:
|
|
|
NO. OF MEETINGS |
NAME |
CATEGORY |
DESIGNATION |
HELD DURING THE YEAR |
ATTENDED |
Ms. Jenifer Machado |
Non-Executive Director |
Committee Member |
1 |
1 |
Mrs. Samira Maharishi |
Non-Executive Director |
Committee Member |
1 |
1 |
*Mr. Himanshu Agarwal |
Non-Executive Independent
Director |
Invitee |
1 |
1 |
*Mr.Himanshu Agarwal had appointed on 24th May, 2022, as a
non-executive director in independent category, the Board had approved the same at their
meeting.
The Nomination and Remuneration Committee assist the Board in
overseeing the method, criteria and quantum of compensation for directors and senior
management based on their performance and defined assessment criteria. The Committee
formulates the criteria for evaluation of the performance of Independent Directors &
the Board of Directors; identifying the persons who are qualified to become directors, and
who may be appointed in senior management and recommend to the Board their appointment and
removal. The terms of the reference of Nomination and Remuneration Committee covers the
areas mentioned under section 178 of the Companies Act, 2013.
STAKEHOLDERS RELATIONSHIP COMMITTEE:
Composition:
As on 31st March 2023, the Stakeholders Relationship
Committee comprised of 3(Three) members, out of whom two is Non-Executive Director and two
Non-Executive Independent Directors.
Meetings and Attendance:
During the year under review, the Committee met once during a year on
8th August, 2022. The meeting was scheduled well in advance and the notice of Meeting was
given in writing to each Director.
The composition of the Stakeholders Relationship Committee and the
attendance record of members for the financial year 2022-23 are as follows:
|
|
|
NO. OF MEETINGS |
NAME |
CATEGORY |
DESIGNATION |
HELD DURING THE YEAR |
ATTENDED |
*Mr.Himanshu Agarwal |
Non-Executive Independent
Director |
Chairman |
1 |
1 |
Ms. Jenifer John Machado |
Non-Executive Director |
Committee Member |
1 |
1 |
*Mr. Vikash Maharishi |
Non-Executive Director |
Member |
1 |
1 |
*Mr. Himanshu Agarwal had appointed on 24th May, 2022, as a
non-executive director in independent category, the Board had approved the same at their
meeting. *Mr.Vikash Maharishi tendered his resignation w.e.f close of business hours on 07th
August, 2023, from the position of Chief Financial Officer(CFO) & Director of the
Company.
The Stakeholders' Relationship Committee consider and resolve the
grievances of security holders of the Company including redressal of investor complaints
such as transfer or credit of securities, non-receipt of dividend / notice / annual
reports, etc. and all other securities-holders related matters and also consider and
approve issue of share certificates (including issue of renewed or duplicate share
certificates), transfer and transmission of securities, etc.
12. EMPLOYEE STOCK OPTION SCHEME
Presently, the Company does not have a scheme for grant of stock
options to its employees.
13. SECRETARIAL AUDITORS:
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
Company has appointed M/s. Ritika Agrawal & Associates, Company Secretaries to conduct
the Secretarial Audit of the Company for the financial year 2022-23.
The Secretarial Audit Report for the financial year ended March 31,
2023 is annexed herewith as
ANNEXURE A to the Board's Report.
During the year, the Secretarial Auditors had not reported any matter
under Section 143(12) of the Act, therefore no detail is required to be disclosed under
Section 134(3) (ca) of the Act.
During the year under review, other than one observation listed below,
no other observation was made by the Secretarial Auditor of the Company in their
Secretarial Audit Report for the year ended 31st March, 2023.
Observation:
The Company has not paid Fees and other charges to be paid to the
recognized stock exchange(s) as per Regulation 14 of The Securities and Exchange Board of
India (Listing obligations and disclosure Requirements) Regulations, 2015, for the
Financial Year 2020-21, 2021-22 and 2022-23. However, the Company has made representation
to BSE Limited, and the management of the Company is in the process of paying the same at
the earliest.
Board Comment:
The financial capacity of the Company was struggling since financial
year 2020-21 and still continuing till date. Therefore, the Company was unable to pay
Annual Listing fees to the BSE. In this matter, the Company has made representation to BSE
Limited, and the management of the Company is in the process of paying the same at the
earliest for the F.Y. 2020-21 and 2021-22 and 2022-23.
14. STATUTORY AUDITORS & AUDITORS REPORTS:
M/s. Subramaniam Bengali & Associates, Chartered Accountants having
Firm Registration No. 127499W, Mumbai, were appointed as Statutory Auditors of the Company
on 29th September, 2018 to hold office for the term of 5 consecutive years from
the conclusion of 110th Annual General Meeting till the conclusion of the
ensuing AGM i.e.115th AGM.
During the year, the statutory auditors have confirmed that they
satisfy the independence criteria required under Companies Act, 2013, Code of ethics
issued by Institute of Chartered Accountants of India. The Auditors have also confirmed
that they are not disqualified from continuing as Auditors of the Company.
Further M/s. Subramaniam Bengali & Associates, Chartered
Accountants (Firm Registration No. 127499W), Mumbai, are hereby proposed to be
re-appointed as Statutory Auditors of the Company for a second term of
5 (Five) consecutive financial years commencing from the financial year
2023-24 till the conclusion of Financial year 2027-28, at a remuneration as may be agreed
upon by the Board of Directors and Auditors.
The Notes on financial statement referred to in the Auditors'
Report are self-explanatory and do not call for any further comments. There are no
observations/qualifications contained in the Auditors' Report and therefore there are
no explanations to be provided for in this report.
15. MANAGEMENT DISCUSSION AND ANALYSIS
Dhenu Buildcon Infra Limited is Non-Banking Financial Company (NBFC),
primarily engaged in the business of Investment in securities. The Management discussions
and analysis is given hereunder:-
INDUSTRY STRUCTURE AND DEVELOPMENTS
GLOBAL ECONOMY:
As the global economy navigates through various economic challenges, a
prevailing sense of optimism continued to drive progress forward. As per the World
Economic Outlook released by International Monetary Fund (IMF) in April 2023, baseline
forecasts predict a decline in growth from 3.4% in 2022 to 2.8% in 2023, followed by a
recovery to 3.0% in 2024.
Financial year 2023 began on a mixed note. On the positive side, after
wreaking havoc for almost two years, the impact of the COVID-19 pandemic on lives and
livelihoods started receding. This was aided by a mass immunisation programme and the
advent of a less virulent variant called omicron. However, the flip side was the impact of
inflationary trends, supply chain disruptions emanating from China, and the start of the
Russia-Ukraine conflict impacting commodity prices.
The RBI, like other central banks, raised the monetary policy rates and
reduced excess systemic liquidity. Major areas of concern for the economy were elevated
commodity prices leading to a depreciation of the Indian rupee, higher retail inflation
(both core and food inflation) leading to the RBI raising interest rates and rationalising
systemic liquidity, and a rising current account deficit (CAD). However, despite these
critical challenges, India emerged as the fastest growing major economy in the world. The
second advance estimate of national income released by the central statistics office (CSO)
on 28 February 2023 expects real GDP growth in Financial year 2023 to be 7.0%.
INDIAN ECONOMY:
In Financial Year 2023, the Indian economy faced multiple challenges.
The country's retail inflation indicator, consumer price inflation inched above the
RBI's tolerance range in January 2022.
The Economic Survey 2022-23 stated that the total credit extended by
NBFCs is picking up momentum, with the aggregate outstanding amount at Rs 31.5 lakh crore
as of September 2022 as compared to Rs 28.03 lakh crore in September 2021. NBFCs continued
to deploy the most significant quantum of credit from their balance sheets to the
industrial sector, followed by retail, services, and agriculture.
The Government of India announced a growth oriented and expansionary
budget for the Financial year 2024. It has tried to strike balance between fiscal
consolidation and growth by continuing its focus on capital expenditure and creating
fiscal space for that by curtailing revenue expenditure. The calendar year 2023 began on a
promising note with improved supply conditions, resilient economic activity, and some
degree of stability in financial markets. However, the banking and non-banking financial
services sector in India remained healthy and evolved in an orderly manner. The general
expectation is that India's GDP for Financial Year 2024 would record a growth in
excess of 6%.
NBFC's PERFORMANCE:
The year 2022 has been green for the NBFC sector as mostly positive
developments including that of Mergers and acquisitions came with a few of controversial
ones.NBFCs have become important constituents of India's financial sector and have
been recording higher credit growth than scheduled commercial banks (SCBs) over the past
few years. NBFCs continue to leverage their superior understanding of regional dynamics
and customised products and services to expedite financial inclusion in India. Lower
transaction costs, innovative products, quick decision making, customer orientation and
prompt service standards have typically differentiated NBFCs from banks. Considering the
reach and expanse of NBFCs, these are well-suited to bridge the financing gap in a large
country like India. Systemically important NBFCs have demonstrated agility, innovation and
frugality to provide formal financial services to millions of Indians. The growing
importance of NBFCs is reflected in the consistent rise of their credit as a proportion to
GDP as well as in relation to credit extended by SCBs to the NBFC sector.
Given the increasing importance of NBFCs, the RBI, in the last few
years, has increased its regulatory oversight over the sector. Multiple guidelines such as
(i) vigil over asset-liability management practices, (ii) maintaining liquidity ratios,
(iii) increased reporting requirements, and (iv) scale-based regulation, have led to NBFCs
adopting practices in line with banks. The regulatory vigil is based on four key
cornerstones of: (i) responsible financial innovation, (ii) accountable conduct, (iii)
responsible governance, and (iv) centrality of the customer.
NBFCs with superior capital adequacy, better margins, frugal cost
management, prudent risk management and those incorporating above four key cornerstones in
their business models will continue to deliver sustainable growth in the foreseeable
future.
To strengthen supervision over NBFCs, the Reserve Bank of India (RBI)
introduced scale-based regulation and revised NPA recognition and upgradation norms. The
revised norms included the classification of special mention account (SMA) and NPA on a
day-end position basis and upgrade from an NPA to standard category only after clearance
of all outstanding overdues.
In terms of funding, NBFCs are seeing improvement in their access to
capital. The funding condition of NBFCs is stabilising because banks are lending to them.
Mutual funds, that had become very cautious to lend to NBFC's, have now also started
lending. NBFCs are also diversifying their funding base by looking at retail borrowing.
The financial system is maturing from a bank-dominated space to a
hybrid system wherein non-bank intermediaries are gaining prominence.
OUR BUSINESS OPERATIONS:
Dhenu Buildconis a small size NBFC engaged in the sole business segment
of investment services. Due to losses in the previous years pursuant to massive pressure
of COVID-19 pandemic, the Company is still striving to recover the losses and is exploring
the other prospective growth avenues so as to restore the Company's financial
position.
During the year, the Company recorded a loss of Rs. 3,315,489 which has
reduced as compare to the previous year loss of Rs. 2,82,227. The Assets base has improved
with nominal growth as compared to the last year. On the other hand, the liabilities base
is reduced as compare to last year which gives the prospects of revival of Company's
business in the years to come.
A rapid fluctuation in market activities due to ongoing amendments and
norms made by RBI in NBFC sector are the challenges which Company is facing and striving
to find news ways to come back on the profit track.
OPPORTUNITIES:
One of the biggest opportunities for NBFCs are the new to credit
customers. These are the people who belong to the rural sector and have never borrowed
from any financial institution in the past. Rural sector have limited ground presence of
banks and other credit financial services and whatever banks are present in these sector
as regulated by legislation, have to rely on banking and credit history while assessing
the loan and cannot provide loans or financial services to the people who do not qualify
for the bank loan. For such people, NBFCs are a boon. They have emerged as a lucrative
segment as far as NBFC is concerned. NBFC have implemented their machinery in a unique way
which assess the creditworthiness of these people and grant them loans with less
paperwork.
Keeping in regard the financial needs of people and structure of banks,
government has exempted NBFC from the hard rules and regulations levied on bank. NBFC
enjoys the flexibility in rules regarding paperwork and other restrictions making it
suitable for entrepreneurs to put their interest in NBFC. Government itself have provided
with the opportunities to the NBFC to establish their place in the Indian market.There are
continuing benefits for the NBFC as the government is implementing rules to help in growth
of NBFC.
NBFCs are in the business of profit and their contribution in the
growth of Indian GDP displays the perfect picture of how well NBFCs have been working
these past years.
THREATS:
Refinancing / NBFC Funding:
Refinancing is a challenge NBFCs face in its smooth working. A major
sources of refinancing for NBFC are the banks, capital markets or maybe its competitors.
There is no other option for NBFC for the purpose ofrefinancing and in the course of
business, refinancing is an important element for the efficient working as well as the
sustainability of the growth. The present situation considering the refinancing options is
not favorableto the sustainability of growth. Banks and housing financing companies have
many options for the purpose ofrefinancing such as RBI, NABARD, EXIM bank and SIDBI for
banks and National Housing Bank as the regulator of housing financing companies.
NBFC License:
Another challenge posed to the NBFC is procuring a license for NBFC.
This process for procuring a license is not easy and requires approval and complicated
requisite documents.The process for obtaining a license requires a lot of
compliance.Moreover RBI has put various restrictions before obtaining a license. Apart
from proper documentation, experienced Board of directors, it is also requires details
related to the quality and quantity of capital.
Non-flexibility in the classification of loans NPA:
Considering the large corporate, flexibility and classification under
NPA is an essential element and shall bescheduled for efficient performance.
Non-performing assets norms are relevant considering the efficientworking of a larger
corporate as irregular cash flow poses a threat in regards of delay in payments. NPA
shallbe classified on the basis of assets financed and a uniform system of classification
of assets must be present.
Other challenges vis. Statutory tools, Limited leverage ratio, Lack of
education among people, New to credit customers, Defaulter's information, etc are
risk prone which increase threat in the sector.
Company is taking proper steps to mitigate the business risk.
SEGMENT-WISE PERFORMANCE:
The Company is operating on only one segment i.e. investment services.
Hence separate segmental reporting is not applicable. The Company has no activity outside
India.
During the year, the Company recerded a loss of Rs. 3,315,489 which has
increased as compare to the previous year loss of Rs.2,82,227. The Assets base has
improved with nominal growth as compared to the last year. On the other hand, the
liabilities base is reduced as compare to last year which gives the prospects of revival
of Company's business in the years to come.
OUTLOOK:
The NBFC- Retail are going to face challenge. Demand may fall due to
uncertainty in the global economy and capital markets. Workforces are facing the risk of
infection, and governments are beginning to enact restrictions on movement and both add an
unpredictable dimension to the crisis.
However, The Company is expanding its business activity and putting
continuous efforts to attain further efficiencies. Further, the Company is confident that
in spite of the possible recessionary conditions in the industry it will perform better in
view of the strong fundamentals of the company and hope to improve its performance as
well.
RISK AND CONCERNS:
The Company, in pursuit of its business objectives, is exposed to
certain risks such as credit risk, market risk, liquidity risk and operational risk. These
risks have the potential of impacting the financial strength, operations and reputation of
your Company. Keeping this in mind, Your Company continues to have an effective risk
management. The Management continuously oversees the risk management process including
identification, impact assessment and drawing mitigation plans.
INTERNAL CONTROL SYSTEM:
The Company has in place adequate internal control systems and
procedures commensurate with its size and nature of business. The systems are designed to
ensure that the financial and other records are reliable for preparing financial
statements.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATING
PERFORMANCE:
The operating performance of the Company has been discussed in
Directors Report under the head Financial Highlights and Operations and Overall
Performance' in the current Year.
RATIOS WHERE THERE HAS BEEN A SIGNIFICANT CHANGE FROM FINANCIAL YEAR
2022 TO FINANCIAL YEAR 2023
During the year under review, the detail of changes made in the
following key financial ratios as compare to the immediately previous financial year. The
details of the same in a form of comparison is provided as:-
S. No. Particulars of Ratio |
Financial Year |
Financial Year |
|
2022-23 |
2021-22 |
1 Debtors Turnover Ratio |
NA |
NA |
2 Inventory Turnover Ratio |
NA |
NA |
3 Interest Coverage Ratio |
NA |
NA |
4 Current Ratio |
60.43 |
55.11 |
5 Debt Equity Ratio |
0.01 |
0.01 |
6 Operating Profit Margin |
N/A |
N/A |
7 Net Profit Margin |
N/A |
(107.74) |
8 Return on Net worth |
(0.14) |
(0.01) |
CAUTIONARY STATEMENT:
The Management Discussions and Analysis describe Company's
projections, expectations or predictions and are forward looking statements' within
the meaning of applicable laws and regulations. Actual results could differ materially
from those expressed or implied. Important factors that could make a difference to the
Company's operations include economic conditions affecting demand and supply and
price conditions in domestic and international market, changes in Government regulations,
tax regimes, economic developments and other related and incidental factors.
16. BOARD EVALUATION:
Pursuant to the provisions of Section 134(3), Section 149(8) and
Schedule IV of the Act read with SEBI (Listing Obligation and Disclosure Requirements)
Regulations, 2015, Annual Performance Evaluation of the Board, the Directors as well as
Committees of the Board has been carried out. The performance evaluation of all the
Directors and the Board as a whole was conducted based on the criteria and framework
adopted by Nomination & Remuneration Committee.
The performance evaluation of the Independent Directors was carried out
by the entire Board and the performance evaluation of the Non-Independent Directors was
carried out by the Independent Directors in their separate meeting. The Board of Directors
expressed their satisfaction with the evaluation process.
17. RISK MANAGEMENT
The Company has developed and implemented a Risk Management Policy in
compliance with the provisions of Section 134 (3) (n) of the Companies Act, 2013. The
Company continues to have an effective risk management. The Management continuously
oversees the risk management process including identification, impact assessment and
drawing mitigation plans. The details of risks perceived by the Management are discussed
which is forming part of the Management Discussion Analysis Report.
18. CORPORATE GOVERNANCE:
Pursuant to SEBI Circular No. SEBI/LAD-NRO/GN/2015-16/013 dated 2nd
September, 2015 compliance with the corporate governance provisions as specified in
regulations 17,17A,18, 19, 20, 21, 22, 23, 24, 24A, 25, 26, 27 and clauses (b) to (i) and
(t) of sub-regulation (2) of regulation 46 and para C, D and E of Schedule V are not
applicable to the Company for the period under review.
19. RELATED PARTY TRANSACTIONS:
There are no Related Party and material significant related party
transactions made by the company with the promoters, directors, key managerial personnel
or other designated persons which may have a potential conflict with the interest of the
company at large.
20. PARTICULARS OF LOANS, GUARANTEES, INVESTMENTS AND SECURITIES:
The Company, being a non-banking financial company registered with the
RBI is exempt from complying with the provisions of section 186 of the Act in respect of
loans and guarantees.
The details of loans and Investments covered under section 186 of the
Companies Act, 2013 read with the Companies (Meetings of Board and its Powers) Rules, 2014
for the financial year 2022-23 are given in the Notes on financial statement referred to
in the Auditors' Report.
21. DIRECTOR'S RESPONSIBILITY STATEMENT:
Pursuant to the requirement under section 134(3) (c) of the Companies
Act, 2013, your Directors to the best of their knowledge and belief and according to the
information and explanations obtained by them, hereby confirm:
a) That in the preparation of the annual financial statements for the
year ended 31st March, 2023, the applicable Accounting Standards had been
followed along with proper explanation relating to material departures;
b) That Appropriate accounting policies have been selected and applied
consistently and have 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, 2023 and of the and Loss of the Company for the year ended 31st March,
2023.
c) That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the Companies Act,
2013 for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
d) That the annual financial statements have been prepared on a going
concern basis; e) That the Directors, have laid down internal financial controls to be
followed by the company and that such internal financial controls are adequate and were
operating effectively;
f) That 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.
22. CORPORATE SOCIAL RESPONSIBILITY (CSR):
The pre-requisite in terms of Section 135 of the Companies Act, 2013 of
corporate social responsibility does not apply to the Company.
23. PARTICULARS OF EMPLOYEES AND REMUNERATION:
Particulars of employees as per Rule 5(2) & Rule 5(3) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
The Statement of particulars of employees under Section 197(12) read
with Rule 5 (2) and 5(3) of the Companies (Appointment and Remuneration of Managerial
Personnel), Rules, 2014 is not provided with as during the financial year under review, no
employee of the Company was in receipt of remuneration in excess of the limits set out in
the said rules.
Details as required under Section 197 of the Companies Act, 2013 read
with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 are given below:
a) the ratio of the remuneration of each director to the median
remuneration of the employees of the Company for the financial year: Not Applicable,
Since during the year under review No sitting fees or remuneration was paid to the
Directors of the Company.
b) the percentage increase in remuneration of each Director, Chief
Financial Officer, Company Secretary or Manager, if any, in the financial year: During
the year, the remuneration was paid to only Company Secretary. As compared to last
financial year, there was 20.69% decrease in remuneration during the year under review.
c) the percentage increase in the median remuneration of employees
in the financial year 2022-23: Not applicable, During the year under review there was
no increase in the remuneration of employees.
d) Number of permanent employees on the rolls of the Company as at 31st
March, 2023 stood at 3 employee.
e) Average percentile increase made in the salaries of employees
other than key managerial personnel in the last financial year and its comparison with the
percentile increase in the managerial remuneration and justification thereof and point out
if there are any exceptional circumstances for increase in the managerial remuneration: During
the last financial year, the salaries of employees remained the same, thus there was no
increment made in the salaries of the employees.
f) We hereby affirm that the remuneration of employees is as per the
remuneration policy of the Company.
24. SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES:
The Company does not have any subsidiary, associate and joint venture
company for the year ended 31st March, 2023.
25. NOMINATION & REMUNERATION POLICY
The Company has formulated the Nomination & Remuneration Policy in
compliance with section 178(3) of the Companies Act, 2013 read along with the applicable
rules thereto and Part D of Schedule II of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 for appointment of directors taking into consideration
qualification and wide experience of the directors in the fields of banking, finance,
regulatory, Marketing, administration, legal apart from compliance of legal requirements
of the Company. The Company has laid down remuneration criteria for the directors, key
managerial personnel and other employees in the Nomination and Remuneration Committee
Policy. The Policy is available on the website of the Company www.dhenubuildconinfra.com.
26. COST RECORDS AND COST 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.
27. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:
The Company has a vigil mechanism called "Whistle Blower
Policy" with a view to provide a mechanism for Directors and employees of the Company
to raise concerns of any violations of any legal or regulatory requirement, incorrect or
misrepresentation of any financial statement and reports etc. The Policy provides adequate
safeguards against victimization of Director(s)/ employee(s) and direct access to the
Chairman of the Audit Committee in exceptional cases.
The employees of the Company have the right/option to report their
concern/grievance to the Chairman of the Audit Committee.
The Company is committed to adhere to the highest standards of ethical,
moral and legal conduct of business operations.
28. PREVENTION OF SEXUAL HARASSMENT POLICY:
The Company has zero tolerance for sexual harassment at workplace and
has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment/Anti
Sexual Harassment policy at the Workplace in line with the requirements of the Sexual
Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013 and
the Rules there under, if any.
During the year under review, no complaints were received by the
Company related to sexual harassment.
As the Company has not employed 10 or more employees during the year
under review, a statement that the company has complied with provisions relating to the
constitution of Internal Complaints Committee under the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013 does not applicable on the
Company.
29. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION:
The provisions relating to the disclosure of particulars relating to
conservation of Energy and Technology absorption pursuant to Section 134 (3) (m) of the
Companies Act, 2013, read with Rule 8 (3) of the Companies (Accounts) Rules, 2014
do not apply to the Company since it is engaged in the business of financial services.
30. FOREIGN EXCHANGE EARNINGS AND OUT-GO :
During the period under review there were no foreign exchange earnings
and out go.
31. MATERIAL CHANGES AND COMMITMENTS:
There are no material changes and commitments, affecting the financial
position of the Company, between the end of the financial year of the Company i.e. 31st
March, 2023 and the date of this Report.
32. COMPLIANCE WITH SECRETARIAL STANDARDS
The Company has complied with the applicable mandatory Secretarial
Standards issued by the Institute of Company Secretaries of India.
33. GENERAL
Your Directors state that no disclosure or reporting is required in
respect of the following items as there were no transactions on these items during the
year under review: i) No significant or material orders were passed by the Regulators or
Courts or Tribunals which impact the going concern status and Company's operations in
future ii) No change in nature of business.
34. DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS OTHER THAN THOSE
WHICH ARE
REPORTABLE TO THE CENTRAL GOVERNMENT
The Statutory Auditors, Internal Auditor or Secretarial Auditor of the
Company have not reported any frauds to the Audit Committee or to the Board of Directors
under Section 143(12) of the Companies Act, 2013 including rules made thereunder.
35. DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE
INSOLVENCY AND
BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE YEAR ALONGWITH THEIR
STATUS AS AT THE END OF THE FINANCIAL YEAR
During the year under review, there was no application made before
National Company Law Tribunal for initiation of insolvency proceeding against the Company
nor any proceeding were pending under the insolvency and bankruptcy code, 2016 (31 of
2016).
36. THE DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT
THE TIME OF ONE
TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS
OR FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF
During the year, the requirement of this clause was not applicable.
37. GREEN INITIATIVES
The Company supports and pursues the 'Green
Initiative'' of the Ministry of Corporate Affairs, Government of India. Members
are requested to support green initiative by registering their e-mail id (a) in case of
electronic / demat holding with their respective Depository Participant and (b) in case of
physical holding either with the RTA by sending e-mail to info@bigshareonline.com or with
the Company by sending e-mail to dhenubuildcon@gmail.com by quoting name and folio number.
This initiative would enable the members to receive communication
promptly besides paving way for reduction in paper consumption and wastage. You would
appreciate this initiative taken by the Ministry of Corporate Affairs and your
Company's desire to participate in the initiative. If there is any change in e-mail
id, shareholder can update his / her e-mail id in same manner as mentioned above.
Further, pursuant to the MCA Circulars and SEBI Circular, in view of
the prevailing situation, owing to the difficulties involved in dispatching of physical
copies of the Notice of the 115th AGM and the Annual Report for the financial
year 2022-23, are being sent only by email to the Members. Members may note that this
Notice and Annual Report 2022-23 will be available on the Company's website
www.dhenubuildconinfra.com, websites of the Stock Exchanges i.e. BSE Limited at
www.bseindia.com and website of Big share at www.bigshareonline.com.
38. LISTING:
The COVID-19 pandemic badly affected the Company's financial
condition. Due to this financial difficulty, your Company could not make the payment of
Annual Listing Fees (ALF) to the Stock Exchange (BSE) since 2020-21. The Shares of the
Company are continued to be listed on BSE Limited. Due to non-payment of listing fees, the
trading of the Company's securities are suspended by BSE due to non- payment of ALF
dues. The Company is striving hard to clear the Annual Listing fees.
39. ACKNOWLEDGEMENTS:
The Board of Directors would like to express its gratitude and its
appreciation for the support and cooperation from its members, banks, financial
institutions, investors, service providers, customers, and other business constituents for
their continued faith, abundant assistance and cooperation extended to the Company. The
Board of Directors also places on record its sincere appreciation for the commitment and
hard work put in by the Management and employees of the Company.
Your Directors would like to make a special mention of the support
extended by the various Departments of Government of India, the State Governments,
particularly, the Tax Authorities, Reserve Bank of India, the Ministry of Commerce,
Ministry of Corporate Affairs, Securities and Exchange Board of India and others and look
forward to their continued support in all future endeavors.
Registered Office: |
By & on behalf of the
Board of Directors |
Office No. 4, Building No. 4, |
For Dhenu Buildcon Infra
Limited |
Vahatuk Nagar, Amboli, |
|
|
Andheri (West), |
|
|
Mumbai - 400 058. |
|
|
|
Sd/- |
Sd/- |
|
Samira Maharishi |
Jenifer John Machado |
Date: 04th September, 2023 |
Director |
Director |
Place: Mumbai |
DIN: 07073642 |
DIN: 07916179 |
Annexure A' Form No. MR-3
SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED
31 ST MARCH 2023
[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of
the Companies (Appointment and Remuneration Personnel) Rules, 2014]
To,
The Members
Dhenu Buildcon Infra Limited
Office No. 4, Building No. 4, Vahatuk Nagar, Amboli, Andheri (West)
Mumbai 400058
I have conducted the secretarial audit of the compliance of applicable
statutory provisions and the adherence to good corporate practices by Dhenu Buildcon
Infra Limited, (hereinafter called the "Company"). Secretarial Audit was
conducted in the manner that provided me a reasonable basis for evaluating the corporate
conducts/statutory compliances and expressing my opinion thereon.
Based on my verification of the Company's books, papers, minute
books, forms and returns filed and other records maintained by the Company and also the
information provided by the Company, its officers, agents and authorized representative
during the conduct of secretarial audit, I hereby report that in my opinion the Company
has during the period covering April 1, 2022 to March 31, 2023, complied with the
statutory provisions listed hereunder and also that the Company has proper Board processes
and compliance mechanism in place to the extent, in the manner and subject to the
reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns
filed and other records maintained by the Company for the financial year ended on 31st
March, 2023 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made there under;
(ii) The Securities Contract (Regulation) Act, 1956 ("SCRA")
and the rules made there under; (iii) The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder; (iv) Foreign Exchange Management Act, 1999 and the rules and
regulations made there under to the extent of Foreign Direct Investment, Overseas Direct
Investment and External Commercial Borrowings; (v) The following Regulations and
Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
("SEBI Act"), to the extent they are applicable to the company (a) The
Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011; (b) The Securities and Exchange Board of India (Prohibition of Insider
Trading) Regulations, 1992; (c) The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations, 2018; (d) The Securities and Exchange
Board of India (Employee Share Based Benefits) Regulations, 2014; (Not Applicable to the
company during the period under review); (e) Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (f) The Securities and
Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; (Not
Applicable to the company during the period under review) (g) The Securities and Exchange
Board of India (Registrars to an Issue and Share Transfer Agents) Regulations 1993
regarding the Companies Act and dealing with client; (Not Applicable to the company during
the period under review) (h) Securities and Exchange Board of India (Issue and Listing of
Non-Convertible and Redeemable Preference Shares) Regulations, 2013; (Not applicable to
the company during the period under review) (i) The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009 and: (Not Applicable to the company during
the period under review) (j) The Securities and Exchange Board of India (Buyback of
Securities) Regulations, 1998. (Not Applicable to the company during the period under
review) (vi) Other laws applicable specifically to the Company namely: (a) Reserve Bank of
India Act, 1934 with regard to Non-Banking Finance Company (NBFC).
(b) Prevention of Money Laundering Act, 2002
(c) RBI Regulations issued for Non-Banking Financial (Non Deposit
accepting and Holding) Companies. (d) All guidelines, circulars and notifications issued
by the Reserve Bank of India for Non banking Financial Companies.
I have also examined compliance with the applicable clauses of the
following: (i) Secretarial Standards Issued by The Institute of Company Secretaries of
India (ii) SEBI (LODR), regulations, 2015 as amended from time to time
During the period under review the Company has complied with the
provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above
except to the extent mentioned below:
Qualification Remark: The Company has not paid Fees and other charges
to be paid to the recognized stock exchange(s) as per Regulation 14 of The Securities and
Exchange Board of India (Listing obligations and disclosure Requirements) Regulations,
2015, for the Financial Year 2020-21, 2021-22 and 2022-23. However, the Company has made
representation to BSE Limited, and the management of the Company is in the process of
paying the same at the earliest.
I further report that
The Board of Directors of the Company is duly constituted with proper
combination of executive director, non-executive director and independent director.
Adequate notice is given to all Directors to schedule the Board
Meetings, agenda and detailed notes on agenda were sent at least seven days in advance,
and a system exists for seeking and obtaining further information and clarifications on
the agenda items before the meeting and for meaningful participation at the meeting.
I further report that there are adequate systems and processes in the
company commensurate with the size and operations of the company to monitor and ensure
compliance with applicable laws, rules, regulations and guidelines.
I further report that during the audit period, the company has not
undertaken any action having a major bearing on the company's affairs in pursuance of
the above referred laws.
For Ritika Agrawal & Associates |
Ritika Agrawal |
Proprietor |
M. No. 8949 |
COP No. 8266 |
UDIN: F008949E000965731 |
Place: Mumbai |
Date: 07/09/2023 |