gazi financial services investments ltd Directors report

GAZI FINANCIAL SERVICES AND INVESTMENTS LIMITED ANNUAL REPORT 2009-2010 DIRECTORS REPORT Your Directors have pleasure in presenting the 16th Annual Report along with the Audited Accounts of the Company for the year ended 31st March 2010. FINANCIAL RESULTS (In Rs.) Particulars 2009-2010 2008-2009 Gross Income From Operation 953000.00 193000.00 Other Income 6133.00 NIL Total Expenditure 389673.00 158528.00 Gross Profit (Loss) 569460.00 34472.00 Net Profit (Loss) after Tax 321181.00 34472.00 Add/Less: Balance brought forward (33400072.00) (33434544.00) Balance Carried to Balance Sheet (33078891.00) (33400072.00) DIVIDEND Owing to the development and expansion plans already undertaken by the company and the need of ploughing back in the company of the generated profits during the year, your Directors do not recommend any dividend for the year under review. DIRECTORS Mr. Taslim N. Gazi, the Directors of the Company, retire by rotation and being eligible offer himself for re-appointment. Your Directors recommend the re-appointment of the aforesaid Directors. AUDITORS M/s. M.K. Gohel & Associates, Chartered Accountants, Mumbai Statutory Auditors of the Company holds office until the conclusion of the ensuing Annual General Meeting, and is eligible for re-appointment. The Company has received their consent under section 224(1B) of the Companies Act, 1956 for such re-appointment. Thenotes to the accounts referred to in the Auditors Report are self- explanatory and therefore do not call for any further comments. FIXED DEPOSITS The company has not accepted Fixed Deposits from public within the purview of section 58A, of the Companies Act, 1956, during the year under review. PARTICULARS OF EMPLOYEES There are no employees whose particulars are required to be shown in terms of provisions of Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 as amended. CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS Your Company believes in Corporate Governance not only in law but also in spirit. Your Company endeavors to maximize the wealth of the shareholder by managing the affairs of the Company with a pre-eminent level of accountability, transparency and integrity. A report on Corporate Governance including the relevant Auditors Certificate regarding compliance with the conditions of Corporate Governance as stipulated in Clause 49 of the listing agreement with stock exchanges is annexed. Management Discussion and Analysis is also annexed. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to the requirement under section 217 (2AA) of the Companies Act, 1956, your Directors state that:- 1) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to; material departures, if any. 2) The directors have selected such accounting policies and applied them consistently and made judgements 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 the end of the financial year and profit for the year under review. 3) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the act for safeguarding the assets of the Company and for the preventing and detecting fraud and other irregularities. 4) The Directors have prepared the accounts for the financial year ended 31st March 2010 on a going concern basis. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION The Company did not carry out any Business activities in relation to conservation of energy, technology absorption in accordance with the Companies (Disclosure of Particulars in the report of Board of Directors) Rules 1988. FOREIGN EXCHANGE EARNINGS AND OUTGO During the year under review Company has: Foreign exchange earnings : NIL Foreign exchange outgo : NIL ACKNOWLEDGEMENTS The Board wishes to place on the record its sincere appreciation of the effort put in by your companys senior management team, executives and consultants at all levels, with your wishes and trust we endeavors to delivers long term shareholder value. Your Directors would like to thank all investors, customers, financial institutions, vendors, banks, government authorities, the registrars, business/alliance and technology partners for the support. By Order of the Board Munir Gazi Chairman Registered Office: 12-A, Media House 1st Floor, 36, Pandita Ramabai Road, Chowpatty, Mumbai-400007 Place: Mumbai Date : 29th August, 2010 MANAGEMENT DISCUSSION AND ANALYSIS OVERVIEW OF FINANCIAL SECTOR IN INDIAN ECONOMY The year 2009 was a difficult year for the entire world. Not only did this have an impact on die on the demand environment on die industries, it also had a huge impact on economic metrics like foreign exchange rates, economic growth expectations and cost structures globally. Rapidly changing global economic & business conditions and technological innovation are creating an increasingly competitive environment that is driving companies to transform their operations globally. While the expectations of the customers have increased manifold; your Company is committed to satisfy the clients widi improved quality and accelerated delivery schedules with a focus on developing long terms relationships and strengdiening strategic partnerships. There has been no occurrence of any event or circumstance since the date of the last financial statements that may materially and adversely affect or is likely to affect die trading or profitability of our Company or the value of our assets or our ability to pay our liabilities. Financial sector reforms have long been regarded as an integral part of the overall policy reforms in India. India has recognized that these financial sector reforms are imperative for increasing the efficiency of resource mobilization and allocation in the real economy and for the overall macroeconomic stability. The reforms have been driven by a thrust towards liberalization and several initiatives such as liberalization in the interest rate and reserve requirements have been taken on this front. At the same time, die government has emphasized on stronger regulation aimed at strengdiening prudential norms, transparency and supervision to mitigate the prospects of systemic risks. INDUSTRY STRUCTURE The Company is mainly engaged in business of financial consultancy. OPPORTUNITIES AND THREATS Financial sector reforms have been an important part of die overall reform process. Yet, after a decade of reforms, many of the deep seated problems in the financial sector remain. The hopes diat were raised by the impressive progress in the initial years of the reforms have not been fulfilled. The state has not relinquished its grip on the financial sector. Except in isolated pockets, competition has not been unleashed in the financial sector on a scale sufficient to produce visible benefits in terms of efficiency, innovation and customer service. Moreover, many of the deeper rooted problems of the Indian economy strongly relating to die financial sector are: 1. Relatively inadequate level of prudential regulation in the financial sector; 2. Poorly developed debt and money markets; and 3. Outdated (often primitive) technological and institutional structures that made the capital markets and the rest of the financial system highly inefficient. Over the last six years, much has been achieved in addressing many of these problems, but a lot remains to be done. SEGMENT-WISE PERFORMANCE The operation of the company consists of the single segment. Hence, Accounting standard on Segment Reporting (AS-17) issued by Institute of Chartered Accountants of India does not apply. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY The Company has an adequate system of Internal Control which enables reliable financial reporting, safeguards assets and encourage adherence to management policies. The Company also has a system for a speedy compilation of accounts and management information reports to comply with applicable laws and regulations. The Company has a reasonable budgetary control system. The actual performance is reviewed with reference to budgets monthly by the management. The Company has a well defined organization structure, authority level, internal rules and guidelines for conducting business transactions. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES, INCLUDING NUMBER OF PEOPLE EMPLOYED The Company is maintaining very healthy and cordial relationship with the employees at all levels of the organization. There is an active Human Resource (HR) team deployed which takes care of recruitment of eligible candidates based on their qualification and experiences, timely payment of salary, incentives etc; Complaints of employees, if any are resolved within stipulated time frame and strict compliance of various Labour and Employment laws are taken care of. The employees are directed towards achieving the objectives for which the Company is formed. OUTLOOK We are committed to deliver quality services on a consistent basis and at competitive prices, our strategy has been to develop strong customer relationship and to be a customer driven Company. On balance, the rate at which Indias financial sector is exposed to global financial markets should be based on meeting the following objectives, namely how best to: a) Increase competition and thereby enhance the efficiency of financial intermediation and promote overall savings; b) Widen and deepen the reach of the formal financial sector; c) Ensure that the countrys savings are utilized most productively; and d) Manage the risks stemming from disturbances in global markets to insulate the financial sector and the Indian economy. RISKS AND CONCERNS Following are the Risks and Concerns faced by the Company during the financial year under review * Increase in number of financial market intermediaries. * General economic and business conditions; * Our Companys inability to successfully implement our growth strategy; * Changes in political and social conditions in India; * Uncertainties prevailing in Capital and Securities market etc;