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Company Information

Home » Market » Company Information

Shriram Asset Management Company Ltd.

Oct 14
133.55 -6.45 ( -4.61 %)
 
VOLUME : 1751
Prev. Close 140.00
Open Price 140.00
TODAY'S LOW / HIGH
133.00
 
 
 
140.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
100.50
 
 
 
224.80
Shriram Asset Management Company Ltd. is not traded in NSE
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Market Cap. ( ₹ ) 80.13 Cr. P/BV 17.30 Book Value ( ₹ ) 7.72
52 Week High/Low ( ₹ ) 225/101 FV/ML 10/1 P/E(X) 0.00
Bookclosure 02/08/2019 TTM EPS ( ₹ ) -4.57 Div Yield (%) 0.00
DIRECTOR'S REPORT
You can view full text of the latest Director's Report for the company.
Year End :2019-03 

Dear Members,

The Directors have pleasure in presenting their Twenty Fifth Annual Report and the Audited Statements of Accounts for the financial year ended March 31, 2019.

Financial Highlights:

Particulars

Year Ended March 31, 2019 (‘)

Year Ended March 31, 2018 (‘)

Gross Income for the year

50,995,151

34,437,921

Total Expenditure before Depreciation and Tax

61,773,033

38,504,389

Profit /(Loss) before Depreciation and Tax

(10,777,882)

(4,066,468)

Less: Depreciation

311,672

235,841

Profit /(Loss) after Depreciation and Tax

(11,089,554)

(4,302,309)

Tax Provisions for Earlier Years

(4,840,946)

670,131

Other Comprehensive Income for the year

(638,785)

(65,344)

Balance brought forward from previous year

(37,280,439)

(33,582,917)

Profit /(Loss) available for Appropriation

(53,849,723)

(37,280,439)

Balance carried to Balance Sheet

(53,849,723)

(37,280,439)

Dividend:

In the absence of profits, your Directors do not recommend payment of any dividend for the Financial Year 2018-2019. State of Company’s Affairs:

Some highlights of your Company’s performance during the year under review are:

- The gross loss (before depreciation and tax) for the year was Rs.10,777,882/- as against Rs. 4,066,468/- during the last year.

- Net loss after taxation for the year was Rs. 16,569,285/- as against Rs. 3,697,521/- in the last year.

- The total asset under management was Rs.128.14 Crore as against Rs. 42.72 Crore in the last year.

Shriram Hybrid Equity Fund, launched in November 2013, delivered return of 10.32% (at the end of March 2019 on a CAGR basis) since inception accompanied by lower levels of volatility. Two more funds have been launched by your Company during FY 2018-19 -Shriram Multicap Fund and Shriram Long Term Equity Fund.

Mutual fund industry continued to support the market, infusing Rs. 87,879 crores into equities during FY19, which was however lower than Rs. 132,774 crores in FY18. The steep correction in mid and small cap stocks, the IL&FS crisis led tight liquidity conditions for the NBFC space perhaps led to comparatively lower inflow & investments by mutual funds into equities.

However, the buoyancy of mutual fund investment can be gauged by the massive increase in contributions through Systematic Investment Plan (SIPs). The contribution of SIP stood at Rs. 92,693 crores in FY19, up 38% even in a volatile equity market 9.13 lakh SIP accounts were added on an average each month during the financial year with an average SIP size of about Rs. 3,070 per account taking the total number of SIP accounts to about 2.62 crores in FY19. Rising awareness about mutual funds through various initiatives and campaigns like ‘Mutual Funds Sahi Hai’ has bolstered investor sentiment about the benefits of SIPs. Despite a volatile equity market and several headwinds, Average Assets Under Management (AAUM) of Indian Mutual Fund Industry at the end of March 2019 grew 7% to Rs. 24.58 crores.

In view of the strong potential of Indian equities and considering the prevailing market scenario, the Company is also in the process of finalizing and filing new schemes that have a complementary objective to our existing offering and address the need of lower risk adjusted stable returns from the idle funds of investors without compromising liquidity.

Nature of Business:

There was no change in the nature of the business.

Share Capital:

The total Paid up Share Capital as on March 31, 2019 was Rs. 55 Crores comprising of 60 Lakhs Equity Shares of Rs. 10/each and 49 Lakhs Redeemable Non-Convertible Preference Shares of Rs. 100/- each.

Material Changes and Commitments:

No material changes or commitments affecting the financial position of the Company have taken place from March 31, 2019 till the date of this report.

Particulars of Loans, Guarantees or Investments:

The details of the Investments and Loans covered under the provisions of Section 186 of the Act are given in the notes to the financial statements.

Cash Flow Statement:

The Cash Flow statement for the year 2018-2019 is attached to the Balance Sheet.

Directors:

In accordance with the provisions of the Companies Act , 2013 ( “the Act”) and in terms of the Memorandum and Articles of Association of the Company, Mrs. Jayashree Mahesh, retires by rotation at the ensuing AGM and being eligible, offers herself for reappointment.

Further, Nomination and Remuneration Committee on the basis of performance evaluation of Independent Directors has recommended to the Board that the continued association of Mr. Arindom Mukherjee, as Independent Director of the Company would be beneficial to the Company. Based on the above, the Board recommends the re-appointment of Mr. Mukherjee as Independent Director of the Company, not liable to retire by rotation, to hold office for a second term of 5 (five) consecutive years i.e. up to June 06, 2024.

Necessary proposals for reappointment of the aforesaid Directors have been included in the notice convening the AGM and the respective Resolutions are recommended for your approval.

All the Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149 (6) of the Act and Regulation 16 (1) (b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, hereinafter referred to as ‘Listing Regulations’. In the opinion of the Board, they fulfil the conditions of independence as specified in the Act and the Listing Regulations and are independent of the management. Further, the Independent Directors have complied with the Code for Independent Directors prescribed in Schedule IV to the Act.

Profile of the Directors, as required under Regulation 36 of the Listing Regulations, are given in the Notice of the 25th Annual General Meeting.

Fixed Deposits:

During the year under report, your Company has not accepted any fixed deposits.

Board Evaluation:

Pursuant to the provisions of the Act, and the Listing Regulations, the Board has carried out an annual performance evaluation of its own performance and the Directors individually as well as the evaluation of the working of its Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.

Policy on Directors’ Appointment and Remuneration:

The Board has framed a policy which lays down a framework in relation to remuneration of Directors, Key Managerial Personnel and Senior Management of the Company.

The key features of the policy are as follows:

1. Criteria for appointment and removal of Director, Key Managerial Personnel and Senior Management.

2. Criteria for performance evaluation.

3. Criteria for fixing the remuneration of Director, Key Managerial Personnel and Senior Management.

The details of this policy are explained in the Corporate Governance Report and are also available at www.shriramamc.com.

Meetings:

During the year 4 Board Meetings and 4 Audit Committee Meetings were convened and held. The details of the meetings are given in the Corporate Governance Report. The gap between the Meetings was within the period prescribed under the Act and as per Regulation 17(2) and 18 (2) of the Listing Regulations respectively.

Risk Management:

Pursuant to the requirement of Regulation 21 of the Listing Regulations, the Company has constituted Risk Management Committee. The Company has in place a Risk Management Policy, commensurate with its size of operations, which lays down a process for identification and mitigation of risks that could materially impact its performance.

Corporate Social Responsibility:

The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said provisions are not applicable.

Directors’ Responsibility Statement:

Pursuant to the provisions of Section 134 (3) (c) of the Act, the Directors confirm that to the best of their knowledge and belief:

a) In the preparation of Annual Accounts and Financial Statements for the year ended March 31, 2019, the applicable Accounting Standards have been followed along with proper explanations relating to material departures, if any;

b) That such accounting policies as mentioned in Notes to the Financial Statements have been selected and applied consistently, and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2019 and of the Loss of the Company for the year ended on that date;

c) That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Annual Accounts have been prepared on an ongoing concern basis;

e) That they have laid down internal financial controls commensurate with the size of the Company and that such financial controls were adequate and were operating effectively;

f) That systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.

Related Party Transactions:

All related party transactions of the Company are at arm’s length basis and are in the ordinary course of business. None of the related party transactions entered into by the Company were in conflict with the Company’s interest. There are no materially significant related party transactions made by the Company with Promoters, Directors or Key Managerial Personnel etc. which may have potential conflict with the interest of the Company at large. Members approval for material Related Party Transaction, as defined under the Listing Regulations shall be obtained at the ensuing Annual General Meeting.

All Related Party Transactions are placed before the Audit Committee/Board, as applicable, for their approval. The particulars of contracts or arrangements with related parties in Form AOC -2 are annexed herewith as ‘Annexure A’.

Significant and Material Orders Passed by the Regulators or Courts or Tribunals:

During the year under report, there were no significant material orders passed by the Regulators/ Courts/ Tribunals impacting the going concern status and Company’s operations in future.

Internal Financial Controls and their adequacy:

The Company has put in place adequate internal financial controls with reference to the Financial Statements commensurate with the size of the Company.

Disclosures:

Audit Committee:

The Audit Committee comprises of Mr. Prabhakar Karandikar (Independent Director) as Chairman, Mr. Arindom Mukherjee (Independent Director) as Member, Mrs. Jayashree Mahesh (Non- Independent Director) as Member and Mr. Kshiti Ranjan Das (Independent Director) as Member. All the recommendations made by the Audit Committee were accepted by the Board.

Vigil Mechanism / Whistle Blower Policy:

As per the provisions of Section 177(9) of the Act, the Company is required to establish a Vigil Mechanism for Directors and employees to report genuine concerns. Regulation 4 (2) (d) (iv) of Listing Regulations also provides for establishment of vigil mechanism for directors and employees for above mentioned matters. The Company has a Policy for Prevention, Detection and Investigation of Frauds and Protection of Whistleblower. The detail of the Vigil Mechanism is posted on the website of the Company i.e. www.shriramamc.com.

Establishment of Internal Complaints Committee:

The Company has in place an Anti Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. No complaints of sexual harassment were received during the year.

Auditors and Auditors’ Report:

The Company’s Statutory Auditors, M/s. G. D. Apte & Co., (Firm Registration No. 100515W) Chartered Accountants, Mumbai, were appointed as Statutory Auditors of the Company for a period of five consecutive years at the 23rd Annual General Meeting held on August 10, 2017 on a remuneration mutually agreed upon by the Board of Directors and the Statutory Auditors.

Their appointment was subject to ratification by the Members at every subsequent AGM held after the AGM held on August 10, 2017. Pursuant to the amendments made to Section 139 of the Act, by the Companies (Amendment) Act, 2017 effective from May 07, 2018, the requirement of seeking ratification of the Members for the appointment of the Statutory Auditors has been withdrawn from the Statute.

In view of the above, ratification by the Members for continuance of their appointment at this AGM is not being sought. The Statutory Auditors have given a confirmation to the effect that they are eligible to continue with their appointment and that they have not been disqualified in any manner from continuing as Statutory Auditors.

The Notes on financial statement referred to in the Auditors’ Report are self-explanatory and do not call for any further comments. The Auditors’ Report does not contain any qualification, reservation or adverse remark.

No fraud has been reported by the Auditors to the Audit Committee or the Board.

Secretarial Audit:

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Company has appointed Mr. Suhas S. Ganpule, Practising Company Secretary, Proprietor of M/s. SG & Associates, to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as “Annexure B”. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

Subsidiaries, Joint Ventures or Associate Companies:

During the year under report, there was no change in the associate company. The Company does not have any subsidiary or joint venture.

Corporate Governance:

The Report on Corporate Governance forms part of the Directors’ Report and is annexed herewith.

As required by the Listing Regulations, Auditors’ Report on Corporate Governance and a declaration by the Managing Director with regards to Code of Conduct are attached to the said Report.

The Management Discussion and Analysis is given as a separate statement forming part of the Annual Report.

As required under Listing Regulations, a detailed report on Corporate Governance along with the Certificate from the Company Auditors’ confirming compliance forms an integral part of this Report and certificate duly signed by the Managing Director and Chief Financial Officer (CFO) on the Financial Statements of the Company for the year ended March 31, 2019 was submitted to the Board of Directors at their Meeting held on May 08, 2019. These certificates are attached to the Report on Corporate Governance.

Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo:

1. Conservation of Energy

The Company has no activity involving Conservation of Energy.

2. Technology Absorption

The Company has no activity involving Technology Absorption.

3. Foreign Exchange earnings and outgo

The Company did not have any foreign exchange earnings or outgo during the year under review.

Extract of Annual Return

Pursuant to Section 92 (3) of the Act and Rule 12 (1) of the Companies (Management and Administration) Rules, 2014, the extract of the Annual Return in the prescribed Form MGT-9 is annexed herewith as “Annexure C”. The complete Annual Return is available on the Company’s Website www.shriramamc.com

Compliance with Secretarial Standards:

The Board of Directors affirms that the Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India (SS1 and SS2) respectively relating to Meetings of the Board and its Committees which have mandatory application.

Amount, if any, proposed to transfer to reserves:

The Company has made no transfers to reserves during FY 2018-2019.

Particulars of Employees:

During the year under report, your Company has not employed any person who was in receipt of remuneration in excess of the limits specified under Section 197 of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

The details required as per Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as “Annexure D”. As per the provisions of Section 136(1) of the Act, the Annual Report excluding the information required as per Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on employee’s particulars is being sent to the members which is, however, available for inspection at the Registered office of the Company during working hours of the Company up to the date of the ensuing Annual General Meeting. If any Member is interested in obtaining such information may write to the Company Secretary in this regard.

Acknowledgment:

The Board of Directors take this opportunity to express their sincere appreciation for the excellent support and cooperation received from the Securities and Exchange Board of India, Association of Mutual Funds of India, Stock Exchange Authorities, Auditors, Bankers, Distributors, other Service providers and Board of Trustees of Shriram Mutual Fund.

The Directors wish to place on record the continued enthusiasm, total commitment, dedication and efforts of the employees of the Company at all levels.

We are also deeply grateful to the Shareholders of the Company and also to the large body of investors of scheme of Shriram Mutual Fund for the continued confidence and the faith reposed in the Fund and look forward to their continued patronage.

By Order of the Board

For Shriram Asset Management Company Limited

Place: Mumbai Prabhakar Karandikar

Date: May 08, 2019 Chairman

DIN No: 02142050