dhruva capital services ltd Directors report

Dear Shareholders,

Your Directors have pleasure in presenting their Twenty Seventh Annual Report together with Audited Accounts of the Company for the year ended on 31st March, 2021.

1. FINANCIAL RESULTS :		(Rs. in Lacs)
For the Year ended	31-03-2021	31-03-2020
Income From Operations	18.75	18.82
Other Income	3.49	3.66
Operational Expenses	15.55	14.85
Profit/Loss before Dep., Tax & Misc. Expenses	6.69	7.64
Depreciation & Misc. Exp. W/off	2.71	4.28
Provision for Taxation
1. Current Taxes	0.88	0.98
2. Deferred Taxes	(0.27)	(0.60)
Profit / Loss after Tax	3.37	2.98
Balance Carried to Balance Sheet	3.37	2.98

2. PERFORMANCE :

The Net Profit of the Company during the year under review was Rs. 3.37 Lakhs as compared to Net Profit of Rs. 2.98 Lakhs in the previous year.

REVIEW OF OPERATIONS & FUTURE OUTLOOK :

Interest was the major source of earning during this year. The initiatives taken by the Company to improve its operations in the coming financial years are good. Your Company is intensifying its focus on the NbFC business & liquidate its real estate investment.

There is no significant impact of COVID-19 pandemic on the companys operations of F.Y. 2020-21.

The company continues to closely monitor the rapidly changing situation.

3. DIVIDEND :

Since your Company has not made enough profit during the year under review, your directors have not recommended any dividend.

4. PUBLIC DEPOSITS :

The Company has not accepted any deposit from public during the year ended 31st March, 2021, as per provisions of Sections 73 to 76 of the Companies Act, 2013.

5. SECRETARIAL AUDIT REPORT :

As done in earlier years, Secretarial Audit Report for the FY 2020-21, pursuant to section 204 (1) of the Companies Act, 2013 is being obtained by the Company from Shri Mohit Vanawat, a Company Secretary in practice (M. No.: 45179, C.P. No.: 16528) which will be attached with this report.

6. CONSERVATION OF ENERGY :

Not applicable since your Company being a Financial Services Company.

7. TECHNOLOGY ABSORPTION :

No comment is necessary considering the nature of activities of your Company during the year under review.

8. FOREIGN EXCHANGE EARNINGS AND OUTGO :

Your Company does not have any foreign exchange earnings and outgo during the year under review.

9. DIRECTORS :

Mrs. Meena Karnawat, Director of the Company, in terms of sec. 152(6) of the Companies Act 2013, being eligible offers herself for reappointment, on retirement by rotation at the ensuing AGM.

10. NOMINATION & REMUNERATION POLICY :

This policy has been formulated in accordance with the provisions of sec. 178 of Companies Act, 2013 and the listing agreement with the Bombay Stock Exchange (BSE Ltd.).

The Major Criteria for recommending a person to become a Director are :

Qualification - He/She must have appropriate qualification and technical knowledge, which would be useful to the Company.

Qualities - Honesty and dedication for work should be possessed by a person, along with a strategic vision. Experience - Work experience in different areas is also a matter of consideration.

Track Record - A clean track record is required for recommendation to the post of director. Appropriate Remuneration shall be paid to the directors, on above basis.

Evaluation of performance is also made for the directors, the basis of which is mentioned hereunder :

Attendance, punctuality, Advises, Exercising of duties & powers given by board, conduct in compliance with the policies of Company viz. code of conduct & whistleblower policy etc., Ensuring Compliance with applicable laws/statutory obligations by the Company, Acting in good faith & in the best interest of the Company, Independence in judgments, Promoting best interest of shareholders, Resolution of Investor Complaints, Encouragement of talent retention/morality & Commitments/new initiatives, expansion & innovation/recognitions etc. and overall performance of any director are the criterion of evaluation.

11. DIRECTORS RESPONSIBILITY STATEMENT :

Pursuant to the requirements under Section 134 (3) (C) of the Companies Act, 2013, the Board of Directors of the Company hereby state and confirm that :

i. in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanations relating to material departures.

ii. the Directors had selected 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 or Loss of the Company for the year under review.

iii. the Directors had taken proper and sufficient care 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.

iv. the Directors had arranged preparation of the accounts for the financial year ended March 31,2021 on a "going concern" basis.

v. the directors had laid down internal financial controls to be followed by the Company & that such internal financial controls are adequate and were operating effectively; &

vi. 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.

12. MANAGEMENT DISCUSSIONS & ANALYSIS REPORT :

INDUSTRYSTRUCTURE & DEVELOPMENT :

No concessions are being given to NBFC Industry by govt. so that the industry can withstand competitions from banks and other lending institutions. Moreover due to unhealthy business environment for the last many years, the margins have squeezed and the cost of operations has increased consistently.

OPPORTUNITIES & THREATS :

Fluctuations in the interest rate in economy has created uncertainty in the business of finance. The biggest threat for Non Banking Finance Companies arise from the vast gap existing between demand and supply. Another threat for Non Banking Finance Companies comes from increased competition from banking industry, which is in a position to lend at competitive rates due to availability of huge funds at a cheaper cost. The Company expect stable interest rates in the coming period and is confident of meeting the challenges by increasing volume of business at nominal margin.

RISK AND CONCERNS :

Like any other industry, the Companys business is also exposed to various business risks.

Continuous efforts are made to reduce the cost of funds, increase the volume of the business and to control the NPAs within a bearable limit to minimize the impact of declining spread.

INTERNAL CONTROL SYSTEM :

The Company has proper and adequate internal control system in all the areas of its activities. The Companys Audit Committee reviewed the internal control system and looked in to the observations of the statutory auditor.

DISCUSSION ON FINANCIAL PERFORMANCE :

The financial performance of the Company for the year has been discussed in the Directors Report and cash-flow statement is annexed with the Annual Accounts.

HUMAN RESOURCES / INDUSTRIAL RELATIONS :

The relation between the Company and its employees remained cordial through-out the year and the management expects the same to continue and receive full support and cooperation from its employees in future also.

13. AUDITORS :

M/s T K. Bohara & Co., Chartered Accountants, appointed by the members at 24th AGM held on 30-09-2018 as Auditors of the Company For a term of 5 years shall hold office untill the conclusion of 29th Annual General Meeting, on such terms & conditions as decided by board.