Indian Economic Review
The Indian economy started FY2021-22 with a grim tone due to the spread of the delta
variant of COVID-19 which caused a sharper effect on the health of the populace of India.
The resulting restrictions, although local in deployment, reduced the stride of recovery
during the first quarter of the fiscal year undergoing review. After the waning growth
ratio of 6.6% in FY2020-21, the Indian economy recovered and started reported an increased
growth of 8.7%. The alleviation of COVID-related regulations, expedited vaccination
campaigns, and a strong policy reaction from the Government of India and the reserve bank
were crucial in establishing this recovery. The RBI maintained a considerate and
supportive stance throughout the year, aiding the recovery process. However, the growth
started to stunt in the beginning of the second half of the year, largely impelled by the
global supply chain disruptions and an inflationary environment, impelled by the sharp
increase in crude and other commodity prices.
Business Environment, Industry Structure, Development and Outlook:
NBFC
NBFC Sector
Non-banking financial companies (NBFCs) are a pivotal element of the Indian finance
industry and serve the financial needs of the population who do not use the services of
the banks, such as the un-organised sector of the micro, small and medium enterprises
(MSMEs). NBFCs enjoy a competitive edge in their knowledge and understanding of state-wise
dynamics, collection systems, and personalised service provision in the drive to expand
the financial incorporation in India. As a result, over the last decade, the NBFCs have
become an increasingly important part of the Indian financial services sector. According
to the RBI, NBFCs have slowly, but steadily increased their credit to GDP ratio from 8.6%
in 2013 to reach 13.7% in 2021.
Gold Market
In Accordance to the World Gold Council, Indian homes have an estimated US$1.5tn of
gold, of which only 10% is used for capitalization. During the fiscal year, the gold
market saw significant flippancy in spot prices of gold, because of the constant shocks in
the global economy, which made investors deal with an unknown business environment. While
the start of the year was understandably stable after COVID-related business risks had
been adequately dealt with by Governments across the world with a global push for vaccines
deployment. The second half of the year saw one of the highest rallies of the year, with
fresh concerns about inflation, rising interest rates, and geopolitical conflicts. The
onset of the Ukraine-Russia conflict set off new waves of uncertainty and fears of a
global economic slowdown, which triggered a bull run on the spot prices of gold.
Review Of Operational And Financial Performance
The Company has a gross income of Rs 526.97 Lakhs /- for the year ended 31st
March, 2022 as against the gross income of the previous financial year of Rs. 349.35 Lakhs
/-.The profit after taxes for the year reviewed is Rs 39.90 Lakhs/- as against profit
after tax of Rs 26.97 Lakhs/- for the previous year.
Internal Control Systems And Their Adequacy
Adequate internal controls have been laid down by the Company to safeguard and protect
its assets as well as to improve the overall productivity of its operations.
Cautionary Statement
Statements contained in the Management Discussion and Analysis describing the Companys
estimates, projections and expectations are forward looking statements and based upon
certain assumptions and expectations of future events over which the Company has no
control and which could cause actual results to differ materially from those reflected in
such statements. Readers should carefully review other information in this Annual Report
and in the Companys periodic reports. The Company undertakes no obligation to update or
revise any of these futuristic statements, whether as a result of new information, future
events, or otherwise.
THE COMPANY ENTERED INTO GOLD LOAN FINANCE SECTOR IN THE YEAR 2018 AND IS PROUD TO
INFORM THE SHAREHOLDERS THAT WE HAVE GROWN FROM 1 BRANCH IN 2018 TO 20 BRANCHES IN THE FY
2022.
We are proud to announce that we are also starting with other financial products under
the distribution model to unlock economies of scale for our centers. The board of
directors have driven out a robust plan to unlock more value for our shareholders through
strategic banking partnerships, branch expansions and other economically feasible models
of revenue generation. We are proud to announce that the company has developed its own
inhouse technology to cater to the changing times and the age of fintech. We have
developed a platform for online and door step gold loan processing and service. Under the
capable vision of the board and management the company is looking forward to another
excellent performance as dividends of these seeds of the past 4 years come to the
forefront.
COMPANYS PHILOSOPHY ON CODE OF GOVERNANCE
Corporate Governance is a set of systems and practices to ensure that the affairs of
the Company are being managed in a way which ensures accountability, transparency,
fairness in all its transactions in the widest sense and meet its stakeholders
aspirations and societal expectations. Good governance practices stem from the culture and
mindset of the organization and the commitment to meet the aspirations of all the
stakeholders. This is demonstrated in shareholder returns, high credit ratings, governance
processes and an entrepreneurial, performance focused work environment. Traditional views
of Governance as a Regulatory and compliance requirement have given way to adoption of
governance tailored to the specific needs of the Company. Though, the company falls under
the exemption of Regulation 27 of SEBI (Listing, Obligation and Disclosure Requirements)
Regulations, 2015 the company has set the benchmark compliance rules for a listed Company
and the baseline for governance standards. Marg Techno Projects Limited not only adheres
to the prescribed corporate practices as per Regulation 27 but is constantly striving to
adopt emerging best practices worldwide. It is our endeavor to achieve higher standards
and provide oversight and guidance to management in strategy implementation and risk
management and fulfilment of stated goals and objectives. Corporate Governance is the
manifestation of personal benefits and values, which configures the organizational values,
benefits and actions of employees of the Company. Company is committed to be open and
transparent as much as possible with respect to its internal financial reporting, control
systems and decision making processes.
Corporate Governance is an integral part of the philosophy of the Company in its
pursuit of excellence, growth and value creation. In addition to complying with the
statutory requirements, effective governance systems and practices towards improving
transparency, disclosures, internal control and promotion of ethics at work place have
been institutionalized. The Company recognizes that good governance is a continuing
exercise and reiterates its commitment to pursue highest standards of Corporate Governance
in the overall interest of all its stakeholders.
ANNEXURE-D
BOARD OF DIRECTORS
The Company has a diversified Board, constituted in compliance with the Companies Act,
2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
("Listing Regulations") and in accordance with the best practices of Corporate
Governance. The Board is entrusted with the ultimate responsibility of the management,
directions and performance of the Company. The Company is managed by the Board of
Directors in co-ordination with the Senior Management.
The Board of Directors meets at least once in every quarter and also as and when
required.
During the F.Y. 2021-2022, Meetings of the Board of Directors of the Company were held 22(Twenty
Two) times on 30.06.2021, 16.07.2021, 21.07.2021, 30.07.2021, 12.08.2021,
14.08.2021, 23.08.2021, 02.09.2021, 30.09.2021, 09.10.2021, 12.10.2021, 11.11.2021,
13.11.2021, 14.11.2021 (meeting dated 13.11.2021 continued till 14.11.2021), 03.12.2021,
06.12.2021, 09.12.2021, 14.12.2021, 28.12.2021, 17.01.2021, 01.02.2022, 25.01.2022 and
14.02.2022. The gaps between the Board meetings were well within the maximum time gap of
120 days as prescribed in Regulation 27 of SEBI (Listing Obligation and Disclosure
Regulations), 2015.
Details of the attendance of the Directors at the Board meetings and Annual General
Meeting and also details of Directorship and membership of Committee (s) in other
Companies as on 31.03.2022 are as under:
|
Board Composition and category of director is as
under: |
|
|
| Name of Directors |
Category of Directors |
No. of Board Meetings Attended |
Attendance at AGM held on 30/09/2021 YES/NO |
No. of Director ship |
No. of Committees in which Chairman/
Member Chairman |
| Member |
| AKHIL NAIR |
Executive |
22 |
YES |
00 |
00 |
00 |
|
Director |
|
|
|
|
|
| ARUN |
Managing |
22 |
YES |
00 |
00 |
02 |
| MADHAVAN |
Director |
|
|
|
|
|
| NAIR |
|
|
|
|
|
|
| DHANANJAYAN |
Whole Time |
22 |
YES |
00 |
00 |
01 |
| KAKKAT NAIR |
Director |
|
|
|
|
|
| PANKAJ GANPAT |
Independent |
13 |
YES |
03 |
00 |
00 |
| JADHAV |
Director |
|
|
|
|
|
| NAIMESH |
Independent |
11 |
YES |
00 |
02 |
01 |
| JAYVADAN |
Director |
|
|
|
|
|
| JARIWALA |
|
|
|
|
|
|
| MANISH |
Independent |
11 |
YES |
00 |
01 |
02 |
| JAYVADAN |
Director |
|
|
|
|
|
| JARIWALA |
|
|
|
|
|
|
| DEEPA SAJEEV |
Women |
13 |
YES |
00 |
00 |
00 |
| NAIR |
Independent |
|
|
|
|
|
|
Director |
|
|
|
|
|
| KEERTI NAIR |
Chief |
14 |
YES |
00 |
00 |
00 |
|
Financial |
|
|
|
|
|
|
Officer |
|
|
|
|
|
All the Board meetings were called with advance notice to the Directors and wherever
required notices were sent to Stock exchanges where the Companys securities are listed.
Agenda papers and all back up papers prepared by Company Secretary were circulated to the
Board members well in advance. Finance head, Chief Financial Officer are invited to the
Board meeting. The Board of Directors has adopted a Code of Conduct for members of the
Board of Directors and senior management of the Company. The Code has been posted on the
Companys website www.margtechno.com.
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