parag parikh financial advisory services ltd Directors report

DIRECTORS

The weighted average performance of the Portfolio Management Scheme across all clients is given below.

Performance of Cognito Portfolio Management Scheme:

Particulars	PMS Returns	Sensex Returns	Nifty Returns
November 1996 (Inception) to March 31, 2014 (Annualised)	15.19%	13.28%	13.03%
Last 1 Year	1.26%	16.29%	14.76%
Last 3 Years	3.44%	0.90%	0.97%
Last 5 Years	15.32%	11.38%	10.91%

Asset Management Company

The AMC has successfully completed the first year of the launch of its first scheme, PPFAS Long Term Value Fund. The New Fund Offer (NFO) commenced from May 13, 2013.

We are delighted to have graduated from a portfolio manager to a mutual fund manager and are sure that it will prove to be hugely beneficial to our clients as well as to us in the coming future.

Brokerage business

We have discontinued the brokerage business since March 2014 as a result of increasing expenditure in operations, technology and compliance. The low margins were unsustainable in the wake of rising costs.

Financial Planning and distribution of financial products

Sluggish equity markets and measures like removal of entry load has resulted in many financial distributors to abandon the space. Resistance to pay advisory fees has resulted in a slow growth in the distribution of financial products. We are very positive on the need for quality distributors and will enhance focus in this area. Financial advisory services offered by PPFAS both online as well as offline continue to notch up client satisfaction and word of mouth referrals. For many clients, financial advisory services is the beginning of long term association with PPFAS.

Client acquisition efforts

PPFAS continues to communicate and engage with its existing and potential clients through low cost mediums like the internet. We now have a thriving online and offline community which interacts in seminars, on blogs, Youtube, social media like Facebook and Twitter.

Finances

A lot of the surplus funds of the company are invested in money market mutual funds and bank deposits. A portion of the investments of the company was invested in the Asset Management Company in financial year 2013-14. The debt free status of the Company continues.

Human Resources

The camaraderie and commitment of the team at PPFAS remains outstanding. The financial year 2013-14 witnessed PPFAS Asset Management Private Limited experiencing its first year of operations as an investment manager and a consequent change in the roles of some of the team members at PPFAS. All the team members have been working with dedication in setting up of the new venture.

Future Outlook

The coming couple of years are expected to be exciting as well as challenging on account of the change in business model and changing environment in capital markets. Since, the first scheme of the new mutual fund was launched in May 2013, the focus would be to generate considerable returns and help investors achieve their long-term financial goals.

Directors

In accordance with the requirements of the Companies Act, 2013, Mr. Rajeev Thakkar and Mr. Sunil Gautam, will retire by rotation at the Twenty Second Annual General Meeting and being eligible, offer themselves for reappointment. The Board recommends their reappointment.

The existing tenure of Mr. Neil Parikh, Whole Time Director, has expired on March 21, 2014, the Board of the Company in its meeting held on February 28, 2014 has reappointed him as Whole-time Director of the Company for a period of three years w.e.f. March 22, 2014 on the remuneration, terms and conditions as decided by them.

Board Meetings

The meetings of the Board of Directors are held at the Companys registered office in Mumbai. 5 Board meetings were held during the financial year under review - on May 16, 2013, August 27, 2013, November 6, 2013, December 27, 2013 and February 28, 2013.

Directors Responsibility Statement

Pursuant to the requirement under Section 217 (2AA) of the Companies Act, 1956, with respect to the Directors Responsibility Statement, it is hereby confirmed;

a) that in the preparation of the accounts for the financial year ended 31st March, 2014 the applicable accounting standards have been followed;

b) that the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were 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 of the Company for the year under review;

c) that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) that the Directors have prepared the accounts for the financial year ended 31st March, 2014 on a going concern basis.

Particulars of employees

Particulars of employees within the meaning of Section 217 (2A) of the Companies Act, 1956 read with The Companies (Particulars of Employees) Rules, 1975 as amended have not been furnished as there was no employee in the aforesaid category.

Audit Committee

The Composition of audit committee constituted under the provisions of Section 292A of the Companies Act, 1956 is as under:

Mr. Rajeev Thakkar	Chairman of the Committee
Mr. Sunil Gautam	Member of the Committee
Mr. Sahil Parikh	Member of the Committee

Matters required to be reported upon as per the Companies (Disclosure of the particulars in the report of the Board of Directors) Rules, 1988.

In pursuance of the above requirements, we report as follows:

a) Energy consumption

As the Company is engaged in rendering professional services, electricity cost is not a major component of total cost. The Company recognizes the need and importance of conservation of energy. The electrical and electronic equipments used by the Company are switched off while not in use to conserve energy.

b) Technology absorption, adoption and innovation

As the Company is not engaged in any manufacturing activities, this section does not apply to the Company. The Companys employees keep upgrading their professional skills and are aware of the latest developments in the financial markets.

c) Foreign exchange earnings and outgo

Foreign exchange outgo during the year was Nil.

Foreign exchange earnings during the year was Nil.

Consolidated Financial Statement of PPFAS with its subsidiary

The statement pursuant to section 212 of the Companies Act, 1956 also forms part of this report. This annual report also includes consolidated financial statements for the financial year 2013-14.

Statutory Auditors

M/s CVK & Associates, Chartered Accountants the auditors of the company retire at the conclusion of ensuing annual general meeting and have expressed their willingness to continue as Auditors, if reappointed.

Acknowledgment

The directors wish to place on record their appreciation for the co-operation given to the Company by its employees, clients, bankers and shareholders.

	For and on behalf of Board of Directors of
	Parag Parikh Financial Advisory Services Limited
Place: Mumbai
Date : August 14, 2014
Registered Office: 103, Veena Chambers, 21,	Ashish Shah	Neil Parikh
Dalal Street, Fort, Mumbai-400 001	Director	Director
	(DIN No: 02887514)	(DIN No: 00080269)