Dear Members,
Your Directors hereby present their 36th Annual Report together with the
Audited Financial Statements of the Company for the year ended 31st March 2021.
FINANCIAL RESULTS
| Particulars |
As on 31st March 2021 |
As on 31st March 2020 |
|
(Rs. in Lakhs) |
(Rs. in Lakhs) |
| Total Income |
10.98 |
11.62 |
| Less: Expenditure |
13.21 |
13.93 |
| Less: Depreciation |
- |
- |
| Profit/(Loss) before exceptional item |
(2.23) |
(2.31) |
| Less: Exceptional items |
- |
- |
| Profit/(Loss) before tax |
- |
- |
| Tax Expense |
- |
- |
| Profit/(Loss) after tax |
(2.23) |
(2.31) |
| Add Balance brought forward from earlier years |
(310.65) |
(308.34) |
| Loss carried to Balance Sheet |
(312.88) |
(310.65) |
STATE OF COMPANY AFFAIRS & RESULTS OF OPERATION
The Company registered a total income of Rs 10,98,340/- as compared to Rs. 11,62,181/-
in the previous year. The Company registered a Loss after tax of Rs. 2,23,291/- as
compared to a Loss after tax of Rs, 2,31,225/- in the previous year which was due to the
decline in other income. There was no change in the nature of business of the Company and
the Company has not earned any revenue during the period under review. The Financial
Statements for the year ended 31st March, 2021 have been prepared in accordance with the
accounting principles generally accepted in India, including the Indian Accounting
Standards (IND AS) specified under section 133 of the Companies Act, 2013, as amended
("the Act") read with the Companies (Indian Accounting Standards) Rules, 2015.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT Overview:
The global growth story continues to decelerate from 2019, marked by a weakness in
trade and investments. This trend was visible in advanced and emerging markets. With the
uncertain growth and a slowdown in credit demand, financing companies are expected to turn
cautious, going forward. The sector faced liquidity pressure with higher funding cost and
is expected to face headwinds for asset quality. The profitability is expected to be under
pressure, with lower credit growth and higher credit cost.
Outlook:
The coronavirus (COVID-19) outbreak at the start of 2020 unleashed a health and
economic crises, unprecedented in scope and magnitude, with lockdowns and border closures
paralyzing economic activity and laying off millions of workers across the world. With
extensive restrictions on economic activities, the global economy was at a virtual
standstill through the second quarter of 2020. To minimize the impact of this economic
catastrophe, our Government and Reserve Bank of India proactively initiated a set of
measures and supply side reforms to lend flexibility, resilience and stimulate the
economy. This has led to v- shaped recovery across sectors with resurgence of consumer
confidence, robust financial markets and uptake in exports. The key threats include, the
changes/slowdown in the implementation of the government policies because of COVID- 19
pandemic, delay & short term fall out in implementation of economic booster packages,
failure to contain actual inflation within a reasonable range, high NPAs of the banks,
defaults & frauds, governing rules of SEBI and RBI etc.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN THE END OF THE
FINANCIAL YEAR AND DATE OF THE REPORT
There are no material changes and commitments, affecting the financial position of the
Company that have occurred between the close of the financial year ended 31st March, 2021
and the date of this Boards Report.
TRANSFER TO RESERVES
The Board does not propose to transfer any amount to reserves due to accumulated
losses.
DIVIDEND
In view of the accumulated losses, your Directors regret their inability to recommend
any dividend on the Preference or Equity Shares.
SHARE CAPITAL
During the year, there was no change in the issued, subscribed and paid up capital of
the Company.
HOLDING COMPANY, SUBSIDIARY COMPANY AND ASSOCIATE COMPANIES
Your Company does not have any Holding, Subsidiary or Associate Company.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
The Board of Directors consists of Six Non-Executive Directors of which Mr. Kedarisetty
Naga Mahesh Kumar and Mr. Rama Chandra Kurup are the Independent Directors. In terms of
the provisions of Section 152 of the Act, Mr. Hemant Goenka (DIN: 02138953), retires by
rotation and, being eligible, offers himself for reappointment.
Declaration by Independent Directors
The Company had received declarations from the Independent Directors confirming that
they meet the criteria of Independence as prescribed under the provisions of Section
149(6) the Companies Act, 2013 and Regulation 16(1)(b) read with Regulation 25(8) of the
SEBI Listing Regulations. The Board have taken on record these declarations after
undertaking the due assessment of the veracity of the same.
Key Managerial Personnel
During the year under review, Mr. Giriraj Ratan Kothari was appointed on 1st
June, 2020 as Company Secretary and Compliance Officer of the Company in place of Mr.
Ankit Bhadani. Mr. Ashish Kumar Chaudhuri was reappointed as Chief Executive Officer with
effect from 1st October, 2020 on the expiry of his previous term. Mr. Debabrata
Dutta was reappointed as Chief Financial Officer on 1st September, 2020 on the
expiry of his previous term. Consequent to the resignation of Mr. Dutta, Mr. Subir Das was
appointed as Chief Financial Officer of the Company, with effect from 1st
December, 2020.
NUMBER OF MEETINGS OF THE BOARD
During the year under review, eleven meetings of the Board of Directors were convened
and held. The dates of the meetings were 1st April, 2020, 25th May,
2020, 29th May, 2020, 30th July, 2020, 28th August, 2020,
5th September, 2020, 15th September, 2020, 14th November,
2020, 30th November, 2020, 1st December, 2020, and 12th
February, 2021.
ANNUAL PERFORMANCE EVALUATION
In terms of the Nomination & Remuneration Committee Charter, the Board has adopted
evaluation framework on the recommendation of the Nomination & Remuneration Committee
(NRC) for evaluating its own performance and as well as that of its Committees and
Individual Directors. Accordingly, Performance Evaluation Templates were circulated to all
the Directors covering the areas relevant to its functioning and evaluation of performance
of each Individual Director/ Committee or Board as a whole. The Independent Directors
carried out annual performance evaluation of the other Non- Executive Directors. The
performance of each Committee was evaluated by the Board and based on report on evaluation
received from respective Committees and a summarized report was shared with the Board for
its review and feedback was given to each Director.
AUDIT COMMITTEE
The Audit Committee of the Board of Directors consists of: Mr. Kedarisetty Naga Mahesh
Kumar Mr. Rama Chandra Kurup Mr. Akhilanand Joshi
The Committee met six times during the period under review and the dates of the
meetings were as follows: 1st April, 2020, 30th July, 2020, 15th
September, 2020, 14th November, 2020, 30th November, 2020 and 12th
February 2021. The terms of reference of the Committee are in accordance with the
provisions of Section 177 of the Companies Act, 2013. Chief Financial Officer is permanent
invitees to the Committee meetings. Your Company has a well-structured internal audit
system commensurate with its size and operation. During the year, there was no occasion
when the Board had not accepted the recommendations of the Audit Committee.
NOMINATION AND REMUNERATION COMMITTEE
The Nomination and Remuneration Committee of the Board of Directors consists of: Mr.
Kedarisetty Naga Mahesh Kumar Mr. Rama Chandra Kurup Mr. Akhilanand Joshi
The Committee met five times during the period under review and the dates of the
meetings were as follows:
1st April, 2020, 26th May, 2020, 24th August, 2020, 9th
September, 2020 and 30th November, 2020.
The Company has in place a policy on directors appointment and remuneration including
criteria for determining qualifications, positive attributes, independence of a director
and other matters, as required under the provisions of Companies Act, 2013 and SEBI (
Listing Obligations and Disclosure Requirements) 2015 is available on the website of the
Company at the link: www.easyfincorp.com
CORPORATE SOCIAL RESPONSIBILITY
As the Company does not meet the criteria mentioned in the section 135 of the Companies
Act, 2013, the provisions of Corporate Social responsibility are not applicable.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Act, the Directors, to the best of their
knowledge and belief, confirm that:
a) In the preparation of the annual accounts for the financial year ended 31st March,
2021, the applicable accounting standards have been followed along with proper explanation
relating to material departures;
b) appropriate accounting policies have been selected and applied consistently and
judgments and estimates have been made 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 loss of the Company for the period;
c) proper and sufficient care have been taken 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;
d) The annual account have been prepared on a going concern basis;
e) Internal financial controls laid down by the directors have been followed by the
Company and that such internal financial controls were adequate and operating effectively
and;
f) Proper systems to ensure compliance with the provisions of all applicable laws were
in place and were adequate and operating effectively.
PUBLIC DEPOSITS
Your Company has not accepted any public deposits under Chapter V of the Companies Act,
2013.
PARTICULARS OF LOANS, GUARANTEE OR INVESTMENTS
Details of Loans given and Investments made are covered under the provisions of section
186 of the said Act are provided in the notes to the financial statement.
Further, the Company has not given any guarantees or provided any security during the
financial year.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All Related Party Transactions that were entered into during the financial year were on
an arms length basis and were in the ordinary course of business. Hence, the provisions
of Section 188 of the Act are not attracted. Thus, disclosure in Form AOC-2 is not
required. Further, there are no materially significant Related Party Transactions during
the year under review made by the Company with its Promoters, Directors, Key Managerial
Personnel or other designated persons, which may have a potential conflict with the
interest of the Company at large. Related Party Transactions, if any, are placed before
the Audit Committee for its approval.
PARTICULARS OF EMPLOYEES
Particulars of employees as per Rule 5(1) of Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 are given as Annexure I to this Report.
There were no employees of the Company drawing remuneration in excess of limits
prescribed under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Considering the nature of your Companys activities during the year under review, your
Company did not consume energy of any significant level nor were there much scope for
taking any measures for energy conservation, technology absorption and making any
additional investment for the above purposes. There has been no foreign exchange earnings
or outgo during the year under review.
RISK MANAGEMENT
Risk Management is the process of identification, assessment and prioritization of
risks followed by coordinated efforts to minimize, monitor, mitigate and control the
probability and/or impact of unfortunate events or to maximize the realization of
opportunities, The Company has laid out a proper mechanism in place to identify the
elements of business and other risks and a risk management system to ensure compliance
with the applicable laws and relevant standards. In the opinion of the Board there are no
such risk which may threaten the existence of the Company.
VIGIL MECHANISM POLICY/WHISTLE BLOWER POLICY
In compliance with the provisions of Section 177(9) of the Companies Act, 2013 the
Company has framed a vigil mechanism policy and system of vigil mechanism to deal with
instances of fraud and mismanagement, if any, and concerns about violation of Companys
policies. The Policy is available in the website at www.easyfincorp.com
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS, COURTS AND
TRIBUNALS
No significant and material order has been passed by the Regulators, Courts and
Tribunals impacting the going concern status and the Companys operations in future.
DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE
FINANCIAL STATEMENTS
The Company has an adequate Internal Control System, commensurate with the size, scale
and complexity of its operations. The scope of the Internal Audit function is well defined
in the engagement letter of the internal auditor duly approved by the Audit Committee.
With a view to maintain its objectivity and Independence, the Internal Auditor reports to
the Audit Committee. The Internal Auditor evaluates the adequacy of the internal control
system in the Company on the basis of statement of operation procedure, instruction
manuals, accounting policy and procedure.
ANNUAL RETURN
In view of the amendment in provisions of Sections 92 and 134 of the Companies Act,
2013 and Rule 12 of the Companies (Management and Administration) Amendment Rules, 2021,
effective from 5th March, 2021, the Company has not annexed Extract of Annual Return in
the prescribed form for the financial year ended on 31st March, 2021 to this Report. The
Annual return of the Company is available on the website of the Company at the link:
www.easyfincorp.com
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013
The Company has in place a policy in line with the requirements of The Sexual
Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013
covering all the employees at workplace. An internal committee has been set up as per the
Act to redress complaints of sexual harassment, if any. All women employees (permanent,
temporary, contractual and trainees) are covered under this Policy. All employees are
treated with dignity with a view to maintain an environment free of sexual harassment
whether physical, verbal or psychological. No complaints were received or remained pending
for disposal during the year under review.
COST RECORDS
Neither maintenance of Cost Records nor audit of cost records as required under Section
148 of the Companies Act, 2013 read with relevant rules made thereunder is applicable to
the Company.
AUDITORS REPORT
Messrs. Haren Parekh & Co. Chartered Accountants (Firm Registration No.114076W)
were appointed as the Auditors of the Company at the 32nd Annual General
Meeting to hold office from the conclusion of 32nd Annual General Meeting till
the conclusion of 37th Annual General Meeting.subject to the ratification by
the members at the every AGM. However, the requirement for the annual ratification of
auditors appointment at the AGM has been omitted pursuant to
Companies (Amendment) Act, 2017, notified on May 7, 2018.
The Auditors Report for the financial year 2020-21 does not contain any qualification,
reservation or adverse remark. No instances of fraud have been reported by the Statutory
Auditors of the Company under Section 143(12) of the Companies Act, 2013. The Report is
enclosed with the financial statements in this Annual Report.
SECRETARIAL AUDIT
Mr. Vijay Kumar Mishra of Messrs. VKM & Associates, Practicing Company Secretaries,
is appointed as Secretarial Auditor of the Company for financial year 2020-21, as required
under Section 204 of the Companies Act, 2013 and Rules thereunder. The attached
Secretarial Audit Report marked as Annexure II, which forms part of this Report, is
self-explanatory and does not contain any qualification, reservation, adverse remark or
disclaimer which requires our further comments
SECRETARIAL STANDARDS
During the year under review, the Company has complied with the applicable Secretarial
Standards, issued by the Institute of Company Secretaries of India pursuant to Section 118
of the Companies Act, 2013.
COMPLIANCE WITH CODE OF CONDUCT
The Company has adopted the "Code of Conduct for Board Members and Senior
Management Personnel". The Code of Conduct contains the duties of the Independent
Directors as laid down in the Act. The Code is available on the website of the Company at
www.easyfincorp.com All the Directors and the Senior Management Personnel of the Company
have given a declaration of compliance with the Companys Code of Conduct in accordance
with Regulation 26(3) of the
SEBI Listing Regulations during the year ended 31st March, 2021.
ACKNOWLEDGEMENTs
Your Directors wish to place on record their appreciation for the valuable services
rendered by the employees of the Company across levels. The Directors would also like to
express their appreciation and thanks to the Bankers, Regulatory Authorities, Suppliers
and the Shareholders for their continued support and co-operation.
| On Behalf of the Board of Directors |
| Hemant Goenka |
Akhilanand Joshi |
| Director |
Director |
| DIN: 02138953 |
DIN:07041418 |
Place: Mumbai
Date: 22nd June, 2021
+91-9892691696
