vardhan capital finance ltd share price Directors report

Dear Members,

The Board of Directors are pleased to present the 29^th Annual Report of the business and operations of your Company, along with the Audited Financial Statements, for the financial year ended March 31, 2023. In line with the requirements of the Companies Act, 2013 and the rules framed thereunder, this report covers the financial results and other developments during the Financial Year 01^st April, 2022 to 31^st March 2023.

1. Summary of operations/results

The financial results of the Company for the year ended March 31, 2023 as compared to that of previous year are summarized as under:

Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Total Income	1000.14	997.97
(less) Expenses	943.23	943.54
Profit/(Loss) Before Income Tax	56.91	54.43
(less) Taxes	16.44	16.50
Net Profit/(Loss) after Tax	40.47	37.93

2. Companys Affairs

During the financial year ended March 31, 2023, the Company has incurred a net profit of Rs 40.47 Lacs as against the total income of Rs. 1000.14 Lacs and net loss of Rs 35.94 Lacs incurred during the previous financial year ended March 31, 2022.

3. Transfer to general reserves

The Company has not transferred any amount to general reserves during the financial year ended March 31, 2023.

4. Transfer of Unclaimed / Unpaid Amount

The Company doesnt have any unclaimed/unpaid amount to be transferred in accordance of the provisions of Section 125(2) of the Companies Act, 2013.

5. Dividend

The Board has not recommended any dividend for the year under review.

6. Change in the Nature of Business and Financial Position

There are no changes in the nature of business during the Financial Year 2022-23 and till the date of issue of this report.

7. Material Changes and Commitments

There are no material Changes and Commitments affecting the Financial Position of the Company from 01^st April, 2023 till the date of issue of this report.

8. Deposits

The Company has not accepted any deposits during the financial year as defined Section 73 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014, hence there is no default of re-payment, and any unpaid / unclaimed deposits, as on March 31, 2023. Details of Inter Corporate borrowings are elaborated in note no. 7 of the attached financials.

9. RBI Prudential Norms

The Company continues to comply with all the applicable regulation prescribed by the Reserve Bank of India

("RBI") from time to time.

10. Share Capital

There were no changes in the Share Capital of the Company during the financial year ended March 31, 2023.

A) Issue of Equity Shares with Differential Rights: The Company has not issued any equity shares with differential rights during the financial year ended March 31, 2023.

B) Issue of Sweat Equity Shares: The Company has not issued any Sweat Equity Shares during the financial year ended March 31, 2023. C) Issue of Employee Stock Options: The Company has not issued any Employee Stock Options during the financial year ended March 31, 2023.

11. Subsidiary, Associate and Joint Ventures Companies

The Company does not have any subsidiary as per Clause 2(87) or associate as per Clause 2(6) of the Companies Act, 2013. The Company has not entered into any Joint Venture during the Financial Year ended March 31, 2023.

12. Maintenance of Cost Records

Maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is not applicable to the Company.

13. Board of Directors and Key Managerial Personnel

The Composition of Board of the Company as on March 31, 2023 is as follows:

Sr No. Name	DIN	Category
1 Akash Vardhan	03043186	Managing Director
2 Rajesh Vardhan	00199986	Non-Executive Director
3 Ramesh Vardhan	00207488	Non-Executive Director
4 Shailesh Jogani	06644699	Non-Executive Independent Director
5 Saroj Rathod	09718657	Non-Executive Independent Director
6 Sonam Vardhan	ACHPH7859M	Chief Financial Officer
7 Pinesh Vallabhdas Pokarne	AJQPP9936P	Company Secretary & Compliance Officer

During the financial year ended 31^st March, 2023 following changes took place in the composition of the Board:

Appointments / Re-appointments

Ms. Saroj Rathod was appointed as an Additional Non-Executive Independent Director by the Board of Directors on the recommendation of the Nomination and Remuneration Committee under Section 161 of the Companies Act, 2013 w.e.f, 27^th August, 2022 for a term of 5 consecutive years up to 27^th August, 2027.

Retirement by rotation

Pursuant to provisions of Companies Act, 2013, Mr. Ramesh Vardhan (DIN: 00207488) retires by rotation at the ensuing 29^th Annual General Meeting of the Company and being eligible seeks re-appointment.

14. Board Meetings and Attendance of Directors

During the Financial Year 2022-23, the Board of Directors duly met 5 times on the following dates: 13^th May 2022, 04^th Aug 2022, 27^th August, 2022, 11^th November, 2022 and 14^th February, 2023.

The maximum interval between two meetings did not exceed 120 days, as prescribed in the Companies Act, 2013.

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

15. Declaration by Independent Directors

The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013, that he / she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 25 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

In the opinion of the Board, the Independent Directors appointed during the year possess appropriate balance of skills, experience and knowledge that enable the Board to discharge its functions and duties effectively.

The Board shall comment on proficiency once the independent directors appear for the online proficiency self-assessment test as applicable.

16. Familiarization programme for independent directors

All new independent directors appointed on the Board attended a familiarization programme. After appointment a formal letter is issued to the independent directors outlining his/her roles, functions, duties and responsibilities.

17. Performance Evaluation of the Board/ Committees and Independent Directors

The Board of Directors have evaluated the overall performance of the Board as a whole and also of each director individually including the Independent Director and found the same to be satisfactory.

The performance evaluation of the Independent Directors was completed. The performance evaluation of the Chairman and Non Independent Directors was carried out by the Independent Directors. The Board of Directors expressed their satisfaction with the evaluation process.

The performance of the committees was evaluated by the Board after seeking inputs from the Committee members on the basis of the criteria such as composition of Committees, effectiveness of committee meetings, etc.

18. Independent Directors Meeting

During the year under review, the Independent Directors met once on 11^th November, 2022 inter alia, to discuss:

Evaluation of performance of Non-Independent Directors and the Board of Directors as a whole taking into account the views of Executive and Non-Executive Directors. Performance evaluation of the Chairman of the Company, taking into account the views of Executive and Non-Executive Directors and independent directors was done by the entire board, excluding the independent director being evaluated.

Evaluation of the quality, content and timelines of flow of information between the Management and the board that is necessary for the Board to effectively and reasonably perform its duties

19. Committees of the Board

Currently, the Board has five committees:

1. Audit Committee

2. Nomination and Remuneration Committee

3. Stakeholders Relationship Committee

4. Risk Management Committee

5. Asset Liability Management Committee

The details of the committees of Board are as follows:

Audit Committee

The Audit Committee of Directors is constituted as per the provisions of Section 177 of the Companies Act,

2013. The Composition of Audit Committee along with dates of meeting and directors attendance is as follows.

Name of the Member	Designation
Mr. Shailesh Jogani	Chairman
Ms. Saroj Rathod	Member
Mr. Rajesh Vardhan	Member

Audit Committee duly met 4 times during the F.Y 2022-23 on the following dates:

13^th May, 2022, 27^th August, 2022, 11^th November, 2022 and 14^th February, 2023.

Nomination & Remuneration Committee

The Nomination & Remuneration Committee of Directors is constituted in accordance with the requirements of Section 178 of the Companies Act, 2013. The Composition of Nomination and Remuneration Committee is as follows. The Companys policy on Directors appointment and remuneration including all other matters shall be available at the registered office of the Company for inspection.

Name of the Director	Designation
Mr. Shailesh Jogani *	Chairman
Mr. Rajesh Vardhan	Member
Ms. Saroj Rathod	Member

The nomination and remuneration policy as required under Section 178 (3) of the Company is available on our website https://www.vardhancapital.com/.

Nomination & Remuneration Committee duly met once during the F.Y 2022-23 on 27^th August, 2022.

Stakeholders Relationship Committee

Pursuant to Section 178 of the Companies Act, 2013, the Board of Directors has constituted the Stakeholders Relationship Committee. The Composition of Stakeholders Relationship Committee is as follows:

Name of the Member	Designation
Mr. Shailesh Jogani	Chairman
Ms. Rajesh Vardhan	Member
Mr. Ramesh Vardhan	Member

Stakeholders Relationship Committee met once during the F.Y 2022-23 on 04^th February, 2023.

Asset Liability Management Committee (ALCO)

The Board of Directors has constituted the ALCO Committee as required under RBIs NBFC regulations.

Composition of the same is as follows:

Name of the Member

Mr. Rajesh Vardhan

Mr. Shailesh Jogani

Ms. Saroj Rathod

Risk Management Committee

The Board of Directors has constituted the Risk Management Committee as required under RBIs NBFC regulations. Composition of the same is as follows:

Name of the Member

Mr. Rajesh Vardhan

Ms. Saroj Rathod

Mr. Shailesh Jogani

20. Particulars of transaction between the Company and the Non-Executive Directors

During the year under review the Company has not entered into any Transaction with its Non-Executive Director.

21. Management Discussion and Analysis

The Management Discussion and Analysis report forms integral part of this Annual Report.

22. Conservation of Energy and Technology Absorption

The information relating to conservation of energy and technology absorption by the Company is annexed to the report as "Annexure A".

23. Foreign Exchange Earnings and Outgo

There was no earning in Foreign Exchange nor was there any outflow during the year under review.

24. Extract of Annual Return

Annual return for the financial year 2022-23, once filed shall be available on the on the website of the Company https://www.vardhancapital.com/

25. Corporate Governance

Regulation 15 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, provide threshold for applicability of corporate governance rules. Your company does not exceed such threshold. Hence, provision of corporate governance is not applicable on your company.

26. Vigil Mechanism for Directors and Employees

The Company has a Vigil Mechanism policy to report genuine concerns or grievances as per the provisions of section 177 of the Companies Act, 2013 and regulation 22 of SEBI (Listing Obligations & Disclosure Requirements), Regulations 2015.

27. Internal Financial Control and their Adequacy

The Company has internal financial control and risk mitigation system which is constantly assessed and strengthened. The Audit committee actively reviews the adequacy and effectiveness of the Internal Financial control and suggests the improvements for the same.

28. Risk Management Policy

The Board of Directors in consultation with the Audit Committee have framed a policy for management and mitigation of risk faced by the Company in its day to day operations, further the Board of Directors and the Senior Management of the Company have been entrusted with the responsibility of identification, development and implementation of the same across the organization.

29. Corporate Social Responsibility

The provisions of Section 135 with regards to Corporate Social Responsibility are not applicable to the Company.

30. Auditors Report

The Statements made by the Auditors in their report are self-explanatory and doesnt require any comments by the Board of Directors.

31. Fraud Reported by Auditors

During the year under review, there have been no instances of fraud, which required the Statutory Auditors to report to the Audit Committee and/or Board or Central Government under Section 143(12) of Act and Rules framed thereunder.

32. Statutory Auditors

In accordance with the provisions of Section 139 of the Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014, M/s. JMT & Associates (FRN: 104167W), statutory auditors were appointed for 5 consecutive financial years from 01^st April, 2022 to 31^st March 2027.

M/s JMT & Associates, (FRN: 104167W), Chartered Accountants, shall continue as Statutory Auditors for the remaining period of the term till the AGM to be held for the year 2027.

33. Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act 2013 and the rules made there under the Company has appointed M/s. Priti J Sheth & Associates, Practicing Company Secretaries to undertake the Secretarial Audit of the Company for the financial year ended March 31, 2023.

The Secretarial Audit Report is included as "Annexure B" and forms an integral part of this report.

34. Directors Comment on qualification or observation

With regards to the remarks by the Secretarial Auditor of the Company, the management would state as under:

1. Due to low business operations, the Company has not appointed an internal auditor; however, considering the business environment, the management is in the process to appoint one.

2. The Company had made provisions for Evoting, however NSDL did not release benpose due to which the said facility could not be performed. Several complaints were raised with NSDL for communicating the same.

Other Remarks mentioned in Statutory Audit Report and Secretarial Audit Report are self-explanatory and do not require any further clarifications.

35. Particulars of Employees

The Company wishes to place on record its appreciation to the contribution made by the employees to the operations of the company during the period.

During the year under review, there were no employees who were in receipt of the remuneration beyond the limits prescribed under Rule 5 (2) of Companies (Appointment and Remuneration) Rules, 2014 and therefore no disclosures need to be made under the said section.

Further, the details of the top 10 employees in terms of remuneration drawn pursuant to Rule 5(2) of Companies (Appointment and Remuneration) Rules, 2014 shall be available at the registered office of the Company during the business hours and the details of ratios of the remuneration of each Director to the median remuneration to the employees of the Company for the year under review are enclosed as "Annexure C" to the Boards Report.

36. Related Party Transactions

The details of Related Party Transactions entered into by the Company are annexed hereto in "Annexure D" in form AOC-2.

Further, the disclosure of Related Party Transactions in compliance with Accounting Standards form a part of Note No. 23 of the financial statements.

37. Particulars of Loans, Guarantees and Investments

The Company being a Non-Banking Financial Company, its Main Business is of giving loans and making investments. The details of loans given and investments made are provided in Notes to financial statements.

38. Directors Responsibility Statement

In terms of Section 134(5) of the Companies Act, 2013 in relation to financial statements for the year ended 31^st March 2023, the Board of Directors state that:

In the preparation of the Annual Accounts, the applicable accounting standards had been followed;

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 affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period; 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; The Directors had prepared the Annual Accounts on a going concern basis; The Directors had laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and were operating effectively; The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

39. Disclosure under sexual harassment of women at workplace

In order to prevent sexual harassment of women at work place, your Company has adopted a Policy for prevention of Sexual Harassment of Women at Workplace. During the year under review, the Company has not received any complaints in this regard.

Further, the provisions relating to constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 are not applicable.

40. Details of Application made or any proceeding pending under The Insolvency and Bankruptcy Code,

2016 during the year along with their status as at end of the Financial Year

During the Financial Year 2022-23, there was no application made and proceeding initiated/pending under the Insolvency and Bankruptcy Code, 2016, by any Financial and/or Operational Creditors against your Company.

As on the date of this report, there is no application or proceeding pending against your company under the Insolvency and Bankruptcy Code, 2016.

41. Details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereon

As Company has not availed any loan from a bank or financial institution, these disclosures are not applicable to the Company.

42. Acknowledgments

The Directors wish to place on record their appreciation of the contribution made by the executives and employees at all levels for their outstanding professionalism, initiatives and commitment to organizations growth and success and helping the organization in its continuous drive towards progress.

Your Directors also appreciate with gratitude the continuous support of government authorities, clients, bankers, institutions, the Shareholders and well-wishers.