2023-24
To,
The Members,
Your Board of Directors have pleasure in presenting their 53rdAnnual Report on the business and operations of the Company and the accounts for the Financial Year ended March 31, 2024.
FINANCIAL SUMMARY
The following table brings out the financial performance of the Company during the F.Y 2023-24: (' in ‘000)
COMPANIES STATE OF AFFAIRS:
During the year under review the Company has earned income of '346.85 Lakhs as against '214.20 Lakhs in the corresponding previous year. The Income for the year basically consists of Rental receipts, Commission from Insurance related activities, Trading Activities of shares and debentures, Dividend and Interest. The operating expense for the year is '133.03 Lakhs as against '160.49 Lakhs in the previous year.
The Profit/(loss) after Tax for the year after taking the above stands at '155.59 Lakhs as against Profit of '6.30 Lakhs in the Previous year.
The Net worth of the company (after deducting Revaluation Reserve) as at March 31, 2024 stands decreased to '1678.66 Lakhs as against '1918.86 Lakhs as at March 31,2023.
FUTURE BUSINESS PLANS:
Your company has applied for Certificate of Registration for conducting NBFC business in the month of July, 2024 and an acknowledgement was given by the RBI. Since we have set right all the observations made by the RBI for two of our fresh applications
in the earlier years, we are confident of getting Certificate of Registration from the RBI.
In anticipation we have planned to do credit business with our own funds and also funds from Banks for our lending activities as we are likely to get Certificate of Registration for a non-deposit taking NBFC.
Our future strategies are to increase the man power. We are also planning to recruit young professional at senior manager level for overall administration and due diligence of loan and insurance proposals. Our lending is concentrating to traders with a long track record, loans for approved sites in developed and developing localities in Udupi and Dakshina Kannada Districts, supply bill limits to leading and reputed business men and contractors, loans to educational institutions with a per party limit of '10 lakhs initially.
We have to have a robust customer friendly NBFC software for maintaining loan accounts and other loan related functions. A reasonable and competent interest will be levied and all the loans are short term in nature.
We intend to increase life and non-life insurance business by recruiting young, energetic and knowledgeable persons with basic salary and commission as incentive. They will spread out in these two districts and sell insurance policies for products promoted by LIC of India and Bajaj Allianz General Insurance for whom we are the corporate agents, this will help us to increase our insurance business and our commission from this business.
LISTING OF COMPANY'S SHARES IN NSE & BSE.
Company's Shares have been listed in both BSE Ltd and NSE Ltd. Market price data has been covered in Corporate Governance Report forming part of the Board's Report.
FEE BASED ACTIVITIES:
Your Company is working as Corporate Agent for Life and General Insurance Companies and earn commission.
TRANSFER TO RESERVES
The Company has not transferred any amount to reserves during the financial year.
DIVIDEND
In view of inadequacy of profits yourDirectors express their inability to recommend dividend during the year under report.
SHARE CAPITAL
The paid-up Share Capital as on 31st March, 2024 was '13,02,67,000. During the year under review, the Company has neither issued any shares nor issued shares with differential voting rights. It has neither issued employee stock options nor sweat equity shares and does not have any scheme to fund its employees to purchase the shares of the Company.
DEPOSITS:
The Company has not accepted any deposits from the public/ shareholders during the year under review as per Section 73 of the Companies Act, 2013.
CORPORATE GOVERNANCE
Pursuant to the Regulation 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Corporate Governance Report and Auditor's Certificate regarding Compliance of conditions of Governance are madeapart of this Report.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Mr. Kalsank Umesh Kini, [DIN 07231231] Non-Executive Director retire by rotation at the forthcoming Annual General Meeting and being eligible, offer himself for reappointment subject to approval of members at the ensuing AGM.
Mr. BHARATH KRISHNA NAYAK, Managing Director and Ms. VIMAL KAMATH CHANDRASHEKHAR, Woman Independent Director, term was ended on 04th December 2023.
Mr. SUJIR PRABHAKAR was appointed as Managing Director of the Company with effect from 4th December 2023.
Mr. KATAPADY BHUJANGESHA KAMATH and Mrs. ROOPASHREE ROOPASHREE were appointed as Independent Directors of the company with effect from 4th December 2023.
Mr. GOVINDARAYA RAMAN NAYAK, CFO retied on 31st July 2023 and Mr. VASUDEVA NAYAK Appointed as CFO of the Company with effect from 01st August 2023.
A brief profile of the Directors seeking confirmation/appointment, nature of expertise in specific functional area, name of other public companies in which he/she holds directorship and membership/ chairmanship of the committees of the Board of Directors and the particulars of the shareholding as stipulated under Regulation 36(3) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015and Secretarial Standards 2 (SS 2 on General Meetings) is appended to the Notice.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed both under the Companies Act, 2013 and Regulations of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
MEETINGS
A calendar of Meetings is prepared and circulated in advance to the Directors. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013. During the year seven Board Meetings were convened and held. The details of the Board Meetings conducted during the year are given below.
AUDIT COMMITTEE
The Audit Committee comprises independent directors namely Mr. Katapady Bhujangesha Kamath (Chairman), Mr. Airody Giridhar Pai, Independent Director and Mr. Tonse Sachin Pai (Non-Executive Director) as other members. All the recommendations made by the Audit Committee were accepted by the Board. Details of Audit Committee meetings are enumerated in the Corporate Governance Report.
The role and terms of reference of Audit Committee cover the areas mentioned in Regulation 72 of the SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015and Section 179 of the Companies Act, 2013, besides other terms referred to by the Board of Directors from time to time. During the year, the Committee met on 26th May, 2023, 4th July, 2023, 10th August, 2023, 10th November, 2023, 4th December, 2023 7th February, 2024 and 13th March, 2024.
REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES OF THE COMPANY.
The Company has not developed and implemented any Corporate Social Responsibility initiatives as per the provisions of Section 135(1) of the Companies Act, 2013 as the said provisions are not applicable to the Company for the time being.
PARTICULARS OF EMPLOYEES
During the year under review, the Company had no employees whose remuneration exceeded the limit prescribed under Section 197 of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and subsequent amendments thereto.
Particulars of top ten employees of the Company in terms of remuneration drawn during the year 2023-24 presented as an annexure to the Board Report during the Board Meeting is preserved separately and in terms of Section 136 of the Act, the said annexure is open for inspection, the same will be made available to any shareholders on request made to the company in writing.
Particulars pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 are provided as under: In line with the internal guidelines of the company, no payment is made towards commission to the Non-Executive Directors of the company and hence ratio to median remuneration is not stated.
i) Percentage of increase in remuneration to Chief financial Officer: 6.58%
ii) Percentage of increase in remuneration to Company Secretary: 5.05%
iii) The percentage increase in the median remuneration of employees in the financial year: 5.92%
iv) The number of permanent employees on the rolls of Company:12
v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration: The Managing director is not drawing any remuneration.
vi) Affirmation that the remuneration is as per the remuneration policy of the Company: The Remuneration is as per the policy of the Company.
Under Section 197(14) of the Companies Act, 2013, it is hereby informed that none of the Directors are in receipt of commission from the Company and it's Subsidiary.
RISK MANAGEMENT
Your Company recognizes that risk is an integral part of business and is committed to managing the risks in a proactive and efficient manner.
Your Company through its risk management process strives to contain impact and likelihood of the risks from time to time.
SUBSIDIARY/ASSOCIATE COMPANIES
The Company formulated a Policy for determining Material Subsidiaries. The policy is available on the Company's website and can be accessed at www.icdslimited.com. During the year under the review, Manipal Properties Limited is material subsidiary of the Company, as per listing regulations.
The Consolidated Financial Statements of the Company and its subsidiary Manipal Properties Limited, prepared in accordance with Indian Accounting Standard issued by the Institute of Chartered Accountants of India, form part of the Annual Report and are reflected in the Consolidated Financial Statements of the Company.
The Annual Accounts of the subsidiary company and related detailed information will be kept at the Registered Office of the Company, as also at the registered offices of the subsidiary company and will be available to investors seeking information at any time.
Salient features of financial statements of subsidiary company pursuant to Section 129(3) of the Companies Act, 2013 have been covered in the Financial Statements in Form AOC-1.
Further, pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited financial statements in respect of subsidiaries, are available on the Company's website on www.icdslimited.com.
RELATED PARTY TRANSACTION:
All related party transactions that were entered into were on an arm's length basis, in the ordinary course of business and were in compliance with the applicable provisions of Companies Act, 2013 (“the Act”). There were no materially significant related party transactions made by the Company during the year that would have required shareholders' approval under the provisions of the Act. Details of the transactions with related parties are provided in the Note No.33 of accompanying standalone financial statements. Form AOC-2 pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014 is annexed herewith marked as Annexure I.
BOARD EVALUATION
Pursuant to the provisions of Companies Act, 2013 and SEBI (LODR) Regulations, 2015, Board has carried out an annual performance evaluation of its own performance and the Directors individually. The manner in which the evaluation has been carried out is detailed below:
The performance evaluation of Chairman and Non-Independent Directors was carried out by the Independent Directors. The Independent Directors evaluated the parameters viz., level of engagement, duties, responsibilities, performance, obligations and governance safeguarding the interest of the Company. The performance evaluation of Independent directors was carried out by the entire Board.
AUDITORS
As per Section 139 of the Companies Act, 2013, read with the Companies (Audit and Auditors) Rules, 2014, the term of M/s Chaturvedi & Shah LLP, Chartered Accountants, Mumbai (FRN: 101720W/W100355) as the Statutory Auditors of the Company expires at the conclusion of 56thAnnual General Meeting (AGM) of the Company.
AUDITORS' REPORT:
Auditors report does not contain any qualifications, reservations or adverse remarks. In respect of observations made by the Auditors with regard to audit trial (edit log) facility as detailed in Para 3(b) and 3(h) (vi) of Report on the other Legal and Regulatory Requirements of Standalone Financial Statement and Para 2(b) and 2(h) (vi) of Consolidated Financial Statement as detailed in Note No.34 of Standalone Financial Statement and Note No. 36 of Consolidated Financial Statement, the Board reiterates that the work is in progress and the Management will ensure that the audit trial (edit log) facility will be maintained within a reasonable time.
SECRETARIAL AUDIT REPORT
In terms of Section 204 of the Act and Rules made there under, CS. Shrinivas M Devadiga, Practicing Company Secretary (Membership No.22381 CoP No.10372) from Bangalore has been appointed as Secretarial Auditor of the Company. The report of the Secretarial Auditor is enclosed as Annexure II to this report. SecretarialAuditors'Report does not contain any qualifications, reservations or adverse remarks. The Comments made by the Secretarial Auditors are corresponding explanations given by the Board are as under:
INTERNALFINANCIAL CONTROL
The Company has implemented and evaluated the Internal Financial Controls which provide a reasonable assurance in respect of providing financial and operational information complying with applicable statutes and policies safeguarding of assets prevention and detection of frauds, accuracy and completeness of accounting records. The Company has appointed Internal Auditor with dedicated internal audit team. The internal audit reports were reviewed by the Audit Committee. Further the Audit Committee annually reviews the effectiveness of the Company's internal control system. The Directors and Management confirm that the Internal Financial Controls (IFC) is adequate with respect to the operations of the Company. A report of Auditors pursuant to Section 143(3)(i) of the Companies Act, 2013 certifying the adequacy of Internal Financial Controls is annexed with the Auditors Report.
ANNUAL RETURN
The Annual Return of the Company as on March 31, 2024 in Form MGT - 7 in accordance with Section 92(3) of the Act read with the Companies (Management and Administration) Rules, 2014, is available on the website of the Company at www.icdslimited.com.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAS OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT:
There are no such material changes to be reported in this regard.
CHANGE IN NATURE OF BUSINESS:
There is no change in nature of business.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS IN FUTURE:
Your Directors wish to state that there have been no significant or material orders that were passed by the Regulators or Courts or Tribunals which may impact the going concern status and operations of the Company in future.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186:
Details of Loans: Nil
Details of Guarantee/Security Provided: Company has not provided any guarantee/Security during the financial year.
Investments made are of the nature quoted/unquoted equity shares and investment in property. Particulars of such investments are provided in the financial statements vide Note No. 5.
OBLIGATION OF COMPANY UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
In order to prevent sexual harassment of Women at work place, a new Act called The Sexual Harassment of Women at Work Place (Prevention, Prohibition & Redressal) Act, 2013 has been notified on 9th December, 2013. In terms of the said Act, Your Company has constituted an Internal Complaints Committee to look into complaints of sexual harassment at work place of any women employee. The company has adopted a policy for prevention of sexual harassment of women at work place and has set up internal committee for implementation of the said policy. During the year, your Company has not received any complaint of sexual harassment of any women employee.
The following is a summary of sexual harassment complaints received and disposed off during the year 2023-24:
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The company did not have any activity in relation to conservation of energy or technology absorption. The company had no foreign exchange earnings or outgoings during the year under report.
POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND OTHER DETAILS
The Company's policy on directors' appointment and remuneration and other matters provided in Section 178(3) of the Act has been disclosed in the Corporate Governance Report, which is a part of this report and is also available on website www.icdslimited.com
Details of remuneration paid to the Directors and Key Managerial Personnel are given in the Form MGT-7 which is available in the Company's website under link https://icdslimited.com/annual- return.
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors hereby report in terms of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, that—
(a) in the preparation of the annual accounts, the applicable Indian accounting standards have been followed along with proper explanation relating to material departures;
(b) the directors have 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;
(c) the directors have 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.
(d) the directors have prepared the annual accounts on a going concern basis; and
(e) the directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND
Pursuant to the provisions of the Investor Education Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, the Company has already filed the necessary form and uploaded the details of unpaid and unclaimed amounts lying with the Company, as on the date of last AGM (i.e. 27.09.2023), with the Ministry of Corporate Affairs.
DETAILS OF FRAUD REPORT BY AUDITOR:
As per auditors' report, no fraud u/s 143(12) reported by the auditor.
VIGIL MECHANISM
The Company has a Whistle Blower Policy for Directors and employees and adopted the Whistle Blower Policy in terms of Section 177 (9) and (10) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 to report genuine concerns, if any about unethical behavior, wrongful conduct and violation ofCompany's code of conduct or ethics. The Whistle Blower Policy is available on the Company's website www.icdslimited.com.
SECRETARIAL STANDARDS
Secretarial Standards Pursuant to Section 118 of Companies Act, 2013,The Company has complied with all the provisions of applicable Secretarial Standards issued by Institute of Company Secretaries of India and notified by the Ministry of Corporate Affairs.
That is as follows: 1) Secretarial Standards - I for Board Meeting.
2) Secretarial Standards - II for General Meeting.
THE DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE
YEAR ALONG WITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR
There is no application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016.
THE 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 THEREOF
There was no instance of onetime settlement with any Bank or Financial Institution.
ACKNOWLEDGEMENT
Your Directors wish to place on record their appreciation of the services and co-operation extended by our Bankers, Investors and Members of Staff of the Company, during the year under report. Your directors also wish to thank the shareholders for their support.
Your directors also wish to place on record their deep sense of appreciation of the services rendered by the staff members at all levels.