j j finance corporation ltd share price Directors report


Your Directors have pleasure in presenting the Fortieth (40th) Annual Report and the Audited Financial Statements on the business and operations of your Company for the year ended 31st March, 2023.

FINANCIAL RESULTS

Particulars

in Hundred

For the year ended 31st March

2023

2022

Profit before Depreciation and Tax

19640

26165

Less : Depreciation

264

1056

Profit before Tax:

19376

25109

Current Tax

7608

6081

Deferred Tax

3643

(678)

MAT Credit Entitlement

Profit after Tax

8125

19707

Add : Balance brought forward from last year

344631

323757

Transfer from Equity Investment Reserve upon realisation

170879

4599

Less : Transferred to Reserve U/s 45-IC of RBI Act, 1934

35801

3950

Provision towards Standard Assets

598

(518)

Balance carried forward

487236

344631

SUMMARY OF OPERATIONS

During the year, the net revenue from operations of your Company decreased from 40.43 Lakh to 40.02 Lakh For FY 2022-23, your Companys profit after tax stood at 8.12 Lakh vis-?-vis 19.71 Lakh in the previous year.

SHARE CAPITAL

During the year, the Company did not allot any shares nor did grant any stock options or sweat equity. As on March 31, 2023, none of the Directors of the Company hold instruments convertible into equity shares of the Company as on 31st March, 2023, the issued, subscribed and paid up share capital of your Company stood at 2.82 crore, comprising 28.2 lakh equity shares of

10/- each.

SUBSIDIARY, ASSOCIATES AND JOINT VENTURES

Your Company does not have any Subsidiary, Associate Companies or Joint Ventures. Accordingly, the disclosure of the financial statement of subsidiaries/associate companies/joint ventures as required pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014 in Form AOC-1 is not applicable. However, in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has formulated a Policy on determination of Material Subsidiaries. The policy has been uploaded on the website of the Company at http://www.jjfc.co.in.

DIVIDEND AND RESERVES

No dividend was declared for the Current Financial Year due to conservation of profit and continued investment in the business/ decrease in net revenue from operations of the Company.

PUBLIC DEPOSITS

The Company did not hold any public deposits at the beginning of the year nor has it accepted any public deposits during the year under review.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT

Your Company had no significant and material changes a?ecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of the report.

EXTRACT OF ANNUAL RETURN

Pursuant to section 92(3) of the Companies Act, 2013 (‘the Act) and rule 12(1) of the Companies (Management and Administration) Rules, 2014, extract of annual return in Form No. MGT - 9 is enclosed as Annexure 1.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management Discussion and Analysis forms an integral part of this Report and gives details of the overall industry structure, developments, performance and state of a?airs of the Companys business. The same is enclosed as Annexure 2.

BOARD MEETINGS

The Board meets at regular intervals to discuss and decide on business strategies/policies and review the financial performance of the Company. The notice of each Board Meeting along with the agenda is given in writing to each Director separately. This ensures timely and informed decisions by the Board.

In the financial year 2022-23, the Board met Seven (7) times. The meetings were held on 12th April, 2022, 30th May 2022, 08th August 2022, 09th November 2022, 03rd December 2022, 17th January 2023 and 24th March 2023. It is well within the maximum period mentioned under Section 173 of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

COMMITTEES OF BOARD

The details of composition of the Committees of the Board of Directors as on 31.03.2023 are as under:-

  1. Audit Committee
  2. Sl. No.

    Name

    Category of Directors / Members

    Chairperson / Members

    1 Mrs. Hilla Eruch Bhathena Independent Director Chairperson
    2 Mr. Anil Jhunjhunwala Non-Executive Director Member
    3 Mr. Surjit Singh Independent Director Member

    During the year, the Committee had met Four times on 30th May 2022, 8th August 2022, 09th November 2022 and 17th January 2023.

  3. Nomination & Remuneration Committee
  4. Sl. No.

    Name

    Category of Directors / Members

    Chairperson / Members

    1 Mrs. Hilla Eruch Bhathena Independent Director Chairperson
    2 Mr. Rajesh Kumar Poddar Non- Executive Director Member
    3 Mr. Surjit Singh Independent Director Member

    During the year, the Committee had met three times on 1st July 2022, 20th October 2022, and 24th March, 2023.

  5. Stakeholders Relationship Committee

Sl. No.

Name

Category of Directors / Members

Chairman / Members

1 Mr. Anil Jhunjhunwala Non-Executive Director Chairman
2 Mr. Shyam Bagaria Non-Executive Director Member
3 Mrs. Hilla Eruch Bhathena Independent Director Member

During the year, the Committee had met Four times on 30th May 2022, 24th June 2022, 4th January 2023 and 20th Feburary 2023.

MEETING OF INDEPENDENT DIRECTORS

As required under Regulation25(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Schedule IV of the Act, the Independent Directors of the listed entity shall hold at least one meeting in a year, without the presence of non-independent directors to discuss the matters specified therein.

Sl. No.

Name of Independent Director

No. of Meetings held

No. of Meetings attended

1 Mrs. Hilla Eruch Bhathena 1 1
2 Mr. Surjit Singh 1 1

During the year, a meeting of Independent Directors was held on 18th November, 2022. All Independent Directors were present in the meeting.

Types of Meeting Date of Meeting Names of Directors/ Members Present

Board Meetings

12.04.2022 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena, Mr. Rajesh Kumar Poddar, Mr. Shyam Bagaria & Mr. Surjit Singh.

30.05. 2022

Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena, Mr. Rajesh Kumar Poddar, Mr. Shyam Bagaria & Mr. Surjit Singh.

08.08. 2022

Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena, Mr. Rajesh Kumar Poddar, Mr. Shyam Bagaria & Mr. Surjit Singh.

09.11. 2022

Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena, Mr. Rajesh Kumar Poddar, Mr. Shyam Bagaria & Mr. Surjit Singh.

03.12. 2022

Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena, Mr. Rajesh Kumar Poddar, Mr. Shyam Bagaria& Mr. Surjit Singh.

17.01. 2023

Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena, Mr. Rajesh Kumar Poddar, Mr. Shyam Bagaria & Mr. Surjit Singh.
24.03.2023 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena, Mr. Rajesh Kumar Poddar, Mr. Shyam Bagaria & Mr. Surjit Singh.

Audit Committee Meetings

30.05.2022 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena & Mr. Surjit Singh.
08.08.2022 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena & Mr. Surjit Singh.
09.11.2022 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena & Mr. Surjit Singh.
17.01.2023 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena & Mr. Surjit Singh.
Annual General Meeting 15.09.2022 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena & Mr. Shyam Bagaria.
Nomination & Remuneration Committee Meetings 01.07.2022 Mrs. Hilla Eruch Bhathena Mr. Rajesh Kumar Poddar & Mr. Surjit Singh.
20.10.2022 Mrs. Hilla Eruch Bhathena Mr. Rajesh Kumar Poddar & Mr. Surjit Singh.
24.03.2023 Mrs. Hilla Eruch Bhathena Mr. Rajesh Kumar Poddar & Mr. Surjit Singh.

Stakeholder Relationship Committee Meetings

30.05.2022 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena & Mr. Shyam Bagaria
24.06.2022 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena & Mr. Shyam Bagaria
04.01.2023 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena & Mr. Shyam Bagaria
20.02.2023 Mr. Anil Jhunjhunwala, Mrs. Hilla Eruch Bhathena & Mr. Shyam Bagaria
Meeting of Independent Directors 18.11.2022 Mrs. Hilla Eruch Bhathena & Mr. Surjit Singh.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Inductions

No appointments were made during the FY 2022-23.

Re-appointment

1. As per the provisions of the Companies Act, 2013, Mr. Shyam Bagaria, liable to retire by rotation at the 39th AGM and, being eligible, was reappointed Based on the performance evaluation and recommendation of the nomination and remuneration committee, the Board recommends his reappointment.

Retirements and resignations

Retirements or resignations took place during the FY 2022-23 is as follows:

1. Resignation of Mr. Hriday Mondal, CFO w.e.f. 02.12.2022.

All the Directors have made necessary disclosures as required under various provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

There were no other changes in the Board or in the Key Managerial Personnel of the Company during the year.

Directors/KMPS as on 01.04.2022

Resignation/Retirement during the year

Appointments/ Re- appointment during the year

Directors/KMPS as on 31.03.2023

Mr. Anil Jhunjhunwala Mr. Anil Jhunjhunwala
Mr. Rajesh Kumar Poddar Mr. Rajesh Kumar Poddar
Mr. Shyam Bagaria Mr. Shyam Bagaria
Mrs. Hilla Eruch Bhathena Mrs. Hilla Eruch Bhathena
Mr. Surjit Singh Mr. Surjit Singh
Mr. Rabi Kumar Almal (CEO) Mr. Rabi Kumar Almal (CEO)
Mr. Hriday Mondal (CFO)

02.12.2022

Mr. Anujit Singh (CS) Mr. Anujit Singh (CS)

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirement clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, your Directors confirm that:

  1. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
  2. 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 a?airs of the company at the end of the financial year and of the profit and loss of the company for that period;
  3. 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;
  4. the directors had prepared the annual accounts on a going concern basis;
  5. 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 e?ectively; and
  6. the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating e?ectively.

DECLARATION BY INDEPENDENT DIRECTORS

Mrs. Hilla Eruch Bhathena and Mr. Surjit Singh are Independent Directors on the Board of your Company as on 31st March, 2023.These Non-Executive Independent Directors have given declaration to the company stating that they fulfill the conditions of Independence specified in Section 149(6) of the Companies Act, 2013 and Rules made thereunder and the same have been placed and noted in the meeting of the Board of Directors held on 12thApril, 2022. A format of letter of appointment to Independent Director as provided in Companies Act, 2013 and the Listing Regulations has been issued and disclosed on the website of the Company at http://www.jjfc.co.in.

VIGIL MECHANISM

Pursuant to the requirement of the Act and Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has in place a vigil mechanism policy to report genuine concerns or grievances. The Vigil Mechanism Policy has been posted on the website of the Company at http://www.jjfc.co.in.

PERFORMANCE EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Board has carried out annual performance evaluation of its own performance, the Directors individually as well as the evaluation of all Committees of the Board for the Financial Year 2022-23. A structured questionnaire was prepared after taking into consideration inputs received from the Directors, covering various aspects of the Boards functioning such as adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance. A separate exercise was carried out to evaluate the performance of individual Directors, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its shareholders. The performance evaluation of the Independent Directors was carried out by the entire Board. The performance evaluation of the Non Independent Directors was carried out by the Independent Directors. The Directors expressed their satisfaction with the evaluation process.

COMPANYS POLICY ON APPOINTMENT AND REMUNERATION

In accordance with Section 178 of the Companies Act, 2013, the Board of Directors has in place a Policy on Directors appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and remuneration policy for Key Managerial Personnel and others. The Policy of Nomination and Remuneration Committee has been framed to encourage diversity of thought, experience, knowledge, perspective, age and gender in the Board. The Remuneration Policy for Directors, Key Managerial Personnel and all other employees is aligned to the philosophy on the commitment of fostering a culture of leadership with trust. The Remuneration Policy aims to ensure that the level and composition of the remuneration of the Directors, Key Managerial Personnel and all other employees is reasonably sufficient to attract, retain and motivate them to successfully run the Company. The Details of Remuneration paid by the Company is given in MGT-9 of the Annual Report. The policy has been uploaded on the website of the Company at http://www.jjfc.co.in.

Based on the recommendations of the Nomination and Remuneration Committee, the Board approved a Nomination and Remuneration Policy which is enclosed as Annexure 4.

DISCLOSURE ON REMUNERATION TO EMPLOYEES EXCEEDING SPECIFIED LIMITS

The Company had no employees who were in receipt of remuneration in excess of 102 lakh per annum during the year ended 31st March, 2023 or of more than 8.5 lakh per month during any part thereof, hence no information under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is required to be given.

PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company, will be provided upon request. In terms of Section 136 of the Act, the Report and Accounts are being sent to Members and others entitled thereto excluding the information on employees particulars which is available for inspection by the Members at the Registered Office of the Company during business hours on working days of the Company up to the date of the ensuing Annual General Meeting. There are no employees drawing salaries in excess of the limit prescribed under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

The Company affirms that remuneration is as per the Remuneration Policy of the Company.

FINANCIAL CONTROLS

E?ective Internal Controls are necessary for building up an efficient organization. Our Company has adequate Internal Control systems in place to ensure accuracy, transparency and accountability in its operations. A dedicated concurrent audit team functioning within the Company confirms that the activities are in compliance with its policies and occurrences of deviations are reported to the Management. The concurrent audit report is reviewed by the internal auditors - M/s. Chaturvedi & Partners, a firm of practicing Chartered Accountants. Internal auditors review operations of the Company and ensure that the Company is functioning within the limits of all applicable statutes. Any Internal Control weaknesses, non compliance with statutes and suggestions on improvements in existing practices forms part of internal audit report. Audit Committee reviews the internal audit report and ensures that observations pointed out in the report are addressed in a timely and structured manner by the Management. The Internal Audit Report is reviewed by Statutory Auditors while performing audit functions to confirm that there are no transactions conflicting with interests of the Company. The Internal Financial Controls with reference to the Financial Statements are commensurate with the size and nature of business of the Company. Further, it is believed that the controls are largely operating e?ectively since there has not been any identification of any major material weakness in the company. The directors have in the Directors Responsibility Statement under paragraph (e) confirmed the same to this e?ect.

STATUTORY AUDITORS AND THEIR REPORT

Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the recommendation of the Board of Directors and the Audit Committee the members in the 39th Annual General Meeting held on 8th August, 2022 had appointed M/s A K Dubey & Co, Chartered Accountants (ICAI Firm Registration Number 329518E) as the Statutory Auditors of the Company for a term of five consecutive years, to hold office from the conclusion of the 39th Annual General Meeting until the conclusion of 44th Annual General Meeting of the Company to be held in the calendar year 2027, on such remuneration as may be decided by the Audit Committee of the Board.

SECRETARIAL AUDITOR AND THEIR REPORT

In terms of Section 204 of the Act and Rules made there under, Ms. Disha Dugar, Practicing Company Secretary, had been appointed Secretarial Auditor of the Company for the financial year 2022-23. The Secretarial Audit Report in Form MR-3, enclosed as Annexure 3 has no observations (including any qualification, reservation, adverse remark or disclaimer) and hence does not call for any explanation from the Directors.

INTERNAL AUDITOR AND THEIR REPORT

The Company had appointed Internal Auditors, M/s. Chaturvedi & Partners, a firm of practicing Chartered Accountants to carry out the internal audit functions. The Internal auditor submits half yearly reports to the audit committee. The Internal Auditors Reports have no observations (including any qualification, reservation, adverse remark or disclaimer) and hence does not call for any explanation from the Directors.

INSTANCES OF FRAUD, IF ANY REPORTED BY THE AUDITORS

There have been no instances of fraud reported by the Auditors under Section 143(12) of the Companies Act, 2013.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The provisions of Section 186 of the Act pertaining to granting of loans to any persons or bodies corporate and giving of guarantees or providing security in connection with loans to any other bodies corporate or persons are not applicable to the Company since the Company is a Non Banking Financial Company. However, details of loans, guarantees or investments are given in notes to the Financial Statements.

RELATED PARTY TRANSACTIONS

In line with the requirements of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has in place a Policy on Related Party Transactions which is also available on Companys website at http://www.jjfc.co.in. The Policy intends to ensure that proper reporting; approval and disclosure processes are in place for all transactions between the Company and Related Parties. All Related Party Transactions are placed before the Audit Committee for review and approval. The Company obtains prior omnibus approvals, if required, for Related Party Transactions on a quarterly basis for transactions which are of repetitive nature and / or entered in the Ordinary Course of Business and are at Arms Length basis. The provisions of Section 188(1) do not attract as all Related Party Transactions entered during the year were in Ordinary Course of the Business and on Arms Length basis. No Material Related Party Transactions, i.e. transactions exceeding ten percent of the annual consolidated turnover as per the last audited financial statements, were entered during the year by your Company. Accordingly, the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not applicable. Further, details of Related Party Transactions as required to be disclosed by Indian Accounting Standard – 24 (Ind-AS 24) are given in the notes to the Financial Statements.

HUMAN RESOURCES/INDUSTRIAL RELATIONS

At J. J. Finance Corporation Limited, Human Resources follow an integrated approach that combines employee recognition, training and mentoring. The Company maintains open communication channels with workforce and keeps them engaged with its objectives towards attainment of healthy employer-employee relationship. Industrial relations were cordial throughout the year under review.

RISK MANAGEMENT POLICY

In terms of the requirement of the Act, the Company has developed and implemented the Risk Management Policy and the Audit Committee of the Board reviews the same periodically. The Risk Management policy inter alia provides for review of the risk assessment and minimization procedure, laying down procedure to inform the Board in the matter and for periodical review of the procedure to ensure that management controls the risks through properly defined framework.

CORPORATE GOVERNANCE

Since the paid up share capital of your Company and its net-worth was below the prescribed limits under Regulation 15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015; Corporate Governance is not applicable on the Company in the financial year 2022-2023.

CORPORATE SOCIAL RESPONSIBILTY

Since your Company does not fall under the threshold laid down in section 135 of the Companies Act, 2013, the provision of section 134(3)(o) of the Companies Act, 2013 is not applicable and hence no disclosure is required by the Board.

DISCLOSURE PURSUANT TO LISTING REGULATIONS

Necessary disclosures pursuant to Listing Regulations are made hereunder:-

The shares of the company are listed on the following Stock Exchanges in the period under review.

Name and Address of the Stock Exchange Security Listed
1. The Calcutta Stock Exchange Ltd. 7, Lyons Range, Kolkata – 700 001 Equity Shares
2. The Bombay Stock Exchange Ltd 25th Floor, P. J. Towers Dalal Street, Fort, Mumbai - 400 001 Equity Shares

The Listing fees to The Calcutta Stock Exchange Ltd. and BSE Limited for the Financial Year 2023 – 24 have been paid.

SECRETARIAL STANDARDS

The Directors confirm that the applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to ‘Meetings of the Board of Directors and ‘General Meetings, respectively, which have been approved by the Central Government have been duly followed by your Company.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS

There are no significant and material orders passed by the Regulators/Courts that would impact the going concern status of the Company and its future operations.

DETAILS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

The Company, being a Non-Banking Finance Company (NBFC), does not have any manufacturing activity neither does it have any foreign exchange earnings or any foreign exchange outgo. The Directors, therefore, have nothing to report on conservation of energy and technology absorption.

DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has zero tolerance for sexual harassment at workplace. During the Financial Year 2022-23, no complaints of sexual harassment were reported.

ACKNOWLEDGEMENT

Your Directors place on record their appreciation for employees at all levels, who have contributed to the growth and performance of your Company.

Your Directors also thank the clients, vendors, bankers, shareholders and advisers of the Company for their perennial support during the year.

We also express our gratitude towards the Central and State Governments, and other statutory authorities for their continued support.