To,
The Members,
Finkurve Financial Services Limited
Your directors take the pleasure in presenting the 40th
Annual Report together with Audited Financial Statements of the Company along with
Auditor's Report thereon for the financial year ended 31st March, 2024.
1. FINANCIAL SUMMARY
The summary of the Company's financial performance, for the
financial year ("FY") 2023-24 and FY 2022-23 is given below: (As per IND-AS) (
in Lakhs.)
Particulars |
2023-24 |
2022-23 |
Total Revenue |
9026.69 |
5062.78 |
Less: Total Expenses |
6904.69 |
3103.17 |
Add: Share of Profit/ (Loss) of Associates |
- |
- |
Profit/ (Loss) before taxation |
2121.99 |
1959.60 |
Less: Tax Expense |
514.87 |
527.28 |
Profit/ (Loss) After Tax |
1607.13 |
1432.32 |
Other Comprehensive Income |
(1.27) |
4.88 |
Total comprehensive income for the year |
1605.86 |
1437.20 |
2. BUSINESS OVERVIEW:
Your Company is majorly in the business of providing loan against
jewellery via its widespread network of branches all over India. The Company is
aggressively expanding its presence in other locations as well for its Gold Loan Product.
Apart from its Gold Loan Product, the Company is also in the business of providing
unsecured consumer loans, short term / long term inter corporate loans, etc. The Board is
in constant search for new business avenues which can be taken with the existing business.
3. BUSINESS PERFORMANCE:
During the year under review, your Company earned a Total Revenue of
9026.69 lakhs as against 5062.78 lakhs in the previous year. The Profit before Tax was
2121.99 lakhs as against 1959.60 lakhs in the previous year. The Net profit of 1607.13
lakhs has been carried to the Balance Sheet. Your directors expect a better performance in
the coming years.
4. SCALE BASED REGULATIONS
Reserve Bank of India issued a circular on "Scale Based Regulation
(SBR): A Revised Regulatory Framework for NBFCs" on 22 October 2021 (SBR
Framework'). As per the framework, based on size, activity, and risk perceived, NBFCs
are categorised into four layers, NBFC - Base Layer ('NBFC-BL'), NBFC - Middle Layer
('NBFC-ML'), NBFC - Upper Layer ('NBFC-UL') and NBFC - Top Layer ('NBFC-TL'). The Company
is currently categorised in Base Layer and is in compliance with RBI Scale Based
Regulations. With an endeavor to further strengthen the compliance culture across business
and functions, an integrated compliance framework has been put in place which would be
enhanced from time to time.
5. SHARE CAPITAL: a. Authorised Share Capital:
During the year under review, the Authorized Share Capital of the
Company has been increased to 14,00,00,000/- (Rupees Fourteen Crores Only) divided into
14,00,00,000/- (Fourteen Crores) Equity Shares of 1/- each (Rupees One Only) at the Annual
General Meeting of the Company held on 29th September, 2023.
b. Paid-up Share Capital:
As on 31st March, 2024, the Paid-up Share Capital of the Company was
12,68,58,198/- (Rupees Twelve Crore Sixty-Eight Lacs Fifty-Eight Thousand One Hundred and
Ninety-Eight) divided into 12,68,58,198/- (Twelve Crore Sixty-Eight Lacs Fifty-Eight
Thousand One Hundred and Ninety-Eight) Equity Shares of 1/- each (Rupees One Only). There
has been no change in the Paid-Up Share Capital of the Company during the year under
review.
6. EMPLOYEE STOCK OPTIONS:
The Company has implemented an ESOP scheme called Finkurve ESOP Plan
(Finkurve ESOP 2018) in accordance with Securities Exchange Board of India (Share Based
Employees Benefits), 2014 for grant of stock options to eligible employees of the Company
and its Subsidiary (if any). The Nomination and Remuneration Committee of the Board of
Directors of the Company, inter alia, administers and monitors the Employee Stock Options
Scheme of the Company. During the year under review, the Company has not granted any fresh
options under Employee Stock Options Plan.
The ESOP Schemes are in compliance with the Act and SEBI (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021 and the disclosures relating to the
ESOP Schemes as required under the abovementioned SEBI Regulations are available on the
Company's website, https://www.arvog.com/investors.html.
Changes after the end of the Financial Year:
Based on the recommendation of the Nomination and Remuneration
Committee of the Company, the Board of Directors of the Company in its meeting held on
26th June, 2024, has granted 1,61,778 (One Lac Sixty-One Thousand Seven Hundred and
Seventy-Eight)
Employee Stock Options to its eligible employees under the
"Finkurve ESOP Plan 2018"
7. CHANGE IN THE NATURE OF BUSINESS:
During the year under review, there has been no change in the nature of
business of the Company.
8. NUMBER OF MEETING OF BOARD:
During the year 12 (Twelve) Board Meetings were held i.e on 26th
April, 2023, 20th May, 2023, 30th June, 2023, 19th July,
2023, 11th August, 2023, 30th August, 2023, 07th October,
2023, 10th October, 2023, 09th November, 2023, 21st
December, 2023, 09th February, 2024 and 22nd February, 2024.
The particulars of attendance of Directors are as under:
Sr. |
Name of Director |
Number of Board |
No. |
|
Meetings attended |
1 |
Mr. Ketan Bhawarlal Kothari |
12 out of 12 |
2 |
Mr. Priyank Rakesh Kothari |
12 out of 12 |
3. |
Mr. Narendra Champalal Jain |
12 out of 12 |
4. |
Mr. Nishant Tolchand Ranka |
12 out of 12 |
5. |
Mrs. Riddhi Kamlesh Tilwani |
12 out of 12 |
6. |
Mr. Dharmesh Trivedi |
12 out of 12 |
9. DIRECTOR'S RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 134(5) of the Companies Act,
2013 with respect to Director's Responsibility Statement, it is hereby confirmed that:
a) In preparation of the annual accounts, the applicable Accounting
Standards had been followed along with proper explanation relating to material departures;
b) 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;
c) 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; and
d) The directors had prepared the annual accounts for the Financial
Year on a "Going Concern" basis;
e) The directors had laid down internal financial controls to be
followed by the Company and that such internal financial controls are adequate and were
operating effectively and
f) 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.
10. DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS OTHER THAN
THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT UNDER SECTION
143(12):
During the year under review, the Statutory Auditor and Secretarial
Auditor have not reported any instances of frauds committed in the Company by its Officers
or Employees, to the Audit Committee under Section 143 (12) of the Act, the details of
which need to be mentioned in this report.
11. A STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS
UNDER SECTION 149(6):
Pursuant to the provisions of Section 149 of the Act, the Independent
Directors have submitted declarations that each of them meets the criteria of independence
as provided in Section 149(6) of the Act along with Rules framed thereunder and Regulation
16(1)(b) of the SEBI Listing Regulations.
12. PARTICULARS OF EMPLOYEES AND REMUNERATION:
The information required pursuant to Section 197 read with Rule 5 of
The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and
Companies (Particulars of Employees) Rules, 1975 in respect of employees of the Company
and directors have been appended as "Annexure II" to this report.
13. EXTRACT OF ANNUAL RETURN
A copy of the Annual Return as required under Section 92(3) of the
Companies Act, 2013, in prescribed form, which will be filed with the Registrar of
Companies/MCA, is hosted on the Company's website and can be accessed at website
https://www.arvog.com/investor/.
14. LOANS, GUARANTEES AND INVESTMENTS:
Pursuant to Section 186 of Companies Act, 2013 and Schedule V of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations,
2015 ("Listing Regulations"), disclosure on particulars
relating to loans, advances, guarantees and investments are provided as part of the
financial statements.
15. CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES:
During the year under review, all related party transactions entered
into by the Company, were approved by the Audit Committee and were at arm's length
and in the ordinary course of business. Prior omnibus approval is obtained for related
party transactions which are of repetitive nature and entered in the ordinary course of
business and on an arm's length basis.
Pursuant to provisions of Section 188(1) of the Act, a Disclosure
containing salient features of the contracts/arrangements entered into by the company with
related parties of the Company in Form AOC-2 is attached as "Annexure III".
Details of related party transactions entered into by the Company, in
terms of Ind AS-24 have been disclosed in the notes to the financial statements forming
part of this Annual Report 2023-24. To identify and monitor significant Related Party
Transactions, the Company has also framed a policy on the Related Party Transactions and
the same is available on the Company's website i.e., www.arvog.com.
16. DIVIDEND:
With a view to conserve the reserves of the Company, your directors are
not recommending any payment on account of dividend.
17. TRANSFER TO RESERVES:
The Board of Directors recommend to transfer 20% of profit to the
reserve fund during the year under review as per Section 45IC of The RBI Act, 1934.
Further, the balance amount of profit for the year under review has been carried forward
to the Statement of Profit and Loss.
18. MATERIAL CHANGES AND COMMITEMENT, IF ANY, AFFECTING THE
FINANCIAL POSITION OF THE COMPANY:
No material changes and commitments affecting the financial position of
the Company occurred from the end of the previous financial year till the date of this
report.
19. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO:
Your Company continuously strives to conserve energy, adopt environment
friendly practices and employ technology for more efficient operations.
The particulars relating to the energy conservation, technology
absorption, foreign exchange earnings and outgo, as required under Section 134(3)(m) of
the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 are given in the
Annexure IV annexed to this Report.
20. STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF
RISK MANAGEMENT POLICY OF THE COMPANY
The risk management and minimization procedure adopted and followed by
the Company is adequate in relation to the nature and size of the business. The same is
reviewed periodically for improvement.
21. CORPORATE GOVERNANCE:
The Company is adhering to good Corporate Governance practices in every
sphere of its operations. The Company has taken adequate steps to comply with the
applicable provisions of Corporate Governance as stipulated in SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015. A report on Corporate Governance is
annexed to this report as "Annexure V".
22. AUDITORS:
A. STATUTORY AUDITORS AND AUDITOR'S REPORT:
Pursuant to the provisions of Section 139 of the Companies Act, 2013
and the Rules made there under, the current Auditors of the Company, M/s. P. D. Saraf
& Co., Chartered Accountants having FRN: 109241W were appointed by the Members at the
36th Annual General Meeting convened on 30th September, 2020, to hold office until the
conclusion of the 41st Annual General Meeting to be held in the year 2025.
STATUTORY AUDITORS QUALIFICATION:
There are no qualification, reservation or adverse remarks made in the
Statutory Auditors Report.
B. INTERNAL AUDIT AND INTERNAL AUDITOR'S REPORT:
Pursuant to the provisions of Section 138 of the Companies Act, 2013
and the Rules made there under, the current Internal Auditors of the Company, M/s. Aadesh
Shah & Associates, Chartered Accountants having FRN: 138515W were appointed by the
Board in the Meeting held on 30th June, 2023, for the Financial Year 2023-24.
There are no qualification, reservation or adverse remarks made in the Internal Auditors
Report.
C. SECRETARIAL AUDITOR & SECRETARIAL AUDIT REPORT:
Pursuant to provisions of Section 204 of the Companies Act, 2013 read
with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules
2014, your Company engaged the services of Mr. Mayank Arora, proprietor of M/s. Mayank
Arora & Co., Company Secretaries, Mumbai (Membership. No. F10378 and COP No.: 13609)
to conduct the Secretarial Audit of the Company for the Financial year ended 31st
March, 2024.
SECRETARIAL AUDITORS' QUALIFICATION:
The qualification in the Secretarial Compliance Report and Secretarial
Audit Report for the year ended 31st March, 2024 and the reply of the Board of
Directors to such qualifications are as under:
Sr. No. |
Qualification/ Observation in the
Secretarial Compliance Report and Secretarial Audit Report |
Reply to the qualifications/ observations by
the Board |
1. |
Pursuant to regulation 29 of SEBI (LODR)
Regulations, 2015 and BSE Notice No. 20230127-37 dated January 27, 2023 the company was
required to submit the prior intimation of board meeting in pdf mode and further was
required to file the same in XBRL mode within 24 hours of submission of pdf, however the
company filed the prior intimation of board meeting for quarter ended March 31, 2023, June
30, 2023 and September 30, 2023 in pdf mode but failed to submit the same in XBRL mode. |
The Company had already filed prior
intimation of Board Meeting in PDF format within stipulated time to the BSE listing Centre
as required under LODR. The Company have further assured that, henceforth it shall also
file the same in XBRL format. |
2. |
Pursuant to regulation 30 of SEBI (LODR)
Regulations, 2015 BSE Notice No. 20230331-87 dated March 31, 2023, the company was
required to submit the notice of Annual General Meeting in XBRL mode within 24 hours of
submission of pdf mode, however the company filed the notice of annual general meeting
which was held on September 29, 2023 in pdf mode, but failed to submit the same in XBRL
mode. |
The Company had already filed Notice of
Shareholders Meeting in PDF format within stipulated time to the BSE listing Centre as
required under LODR The Company have further assured that, henceforth it shall also file
the same in XBRL format. |
3. |
Pursuant to regulation 12(3) of SEBI (Share
Based Employee Benefits and Sweat Equity) Regulations, 2021, the Company has approved
issuance of stock options under Finkurve ESOP Plan, 2018 vide shareholders'
resolution dated 29th September, 2018. Till date, the Options under the said ESOP Plan are
granted in three different tranches i.e., on 26th February, 2021, 30th June, 2021, and
24th August, 2021. As SEBI (Share Based Employee Benefits) Regulation, 2014 was replaced
by SEBI (Share Based Employee Benefits) Regulation, 2021 which required the Company to
apply for In Principal approval for Listing and Trading., the Company was required to have
the said approval prior to granting of options under tranche three i.e., for the options
granted on 24th August, 2021. Therefore, the Company had made the application for
condonation of delay for non-compliance of Regulation 12(3) of SEBI (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021 for the options granted in tranche three. The
said application was accepted |
With respect to the SEBI (Share Based
Employee Benefits) Regulation, 2021, the Company has applied for the condonation of delay
application for non- compliance of Regulation 12(3) of SEBI (Share Based Employee Benefits
and Sweat Equity) Regulations, 2021, for the options granted in tranche three dated 24th
August, 2021 along with the requisite fees to SEBI. The same has been accepted by BSE and
the Company has received the In-Principal Approval for the granting of options under the
Finkurve ESOP Plan 2018 on 28th May, 2024. |
4. |
Pursuant to regulation 23 of SEBI ((LODR)
Regulations, 2015, the company was required to upload the related party transactions on
the same date as date of publication of financial results, however the company missed to
upload the disclosure on related party transactions for the half year ended on March 31,
2023 on the same date as the date of publication of financial results. The company made
good the default as soon as it came to their notice by filing the same on the immediate
following date. The Company has also paid the fine of 5,900/- in response to the penalty
imposed by the exchange. |
The Company erroneously missed to upload the
disclosure on Related Party Transactions on the date of Publication of its Financial
Result. The company has made good the default after it came to their notice by filing the
same to the listing centre on the immediate following date. The Company has also paid the
fine of 5,900/- in response to the penalty imposed by the exchange. |
Sr. No. |
Qualification/ Observation in the
Secretarial Audit Report |
Reply to the qualifications/ observations by
the Board |
1. |
Pursuant to regulation 23 of SEBI (LODR)
Regulations, 2015, the company was required to make disclosure of all the related party
transactions to the stock exchange, however during the period under review, the company
failed to disclose few related party transactions to the stock exchange as mentioned
hereunder: Sr. Name of Relationship Type of Value of No. the of the related the related
counterparty party transaction party with the transaction during the listed entity period
( or its in lakhs) subsidiary 1. Arvog Wholly Investment 1.00 Services owned Limited
subsidiary company 2. Arvog Wholly Investment 1.00 Enterprises owned Limited subsidiary
company 3. Sherry and Entity owned CSR 5.00 Diya or controlled Contribution Foundation by
the KMP |
The transaction no.1 and 2 pertains to
subscription of equity capital of wholly-owned subsidiaries by the Company and transaction
no. 3 pertains to donation made and not towards any kind of business transactions and
therefore the Company have not considered the same in the disclosure of related party
transactions as submitted to the stock exchange. Further, the said transactions does not
pose the risk of conflict of interest that other related party transactions might pose.
However, The Board took the note of the same and affirmed that the qualification/
observation raised in the Secretarial Audit Report shall be taken care of in the future. |
2. |
Pursuant to section 135 of the Companies
Act, 2013 the Company has made an expenditure towards Corporate Social Responsibility as
required under the said act for the FY2022-23; however, the details required to be filed
with Registrar of Companies, Mumbai (ROC), in e-form CSR-2 (as an addendum to Form AOC-4),
has been given erroneously. The amount which was availed as set-off in pursuance of rule
7(3) of the Companies (CSR Policy) Rules, 2014 has been erroneously stated as surplus
arising out of the CSR Projects of the previous financial year in the said e-form.
However, this error has no impact on the total CSR Obligation for the financial year
2022-23. |
The Board took the note of the same and
shall be taken care of in the future. |
The report of the Secretarial Auditor for the Financial Year ended 31st
March, 2024 is appended as "Annexure VI".
23. ANNUAL EVALUATION OF THE BOARD ON ITS OWN PERFORMANCE AND p>
OF THE INDIVIDUAL DIRECTORS AND COMMITTEES
On the advice of the Board of Directors, the Nomination and
Remuneration Committee of the Board of Directors of the Company formulated the criteria
for evaluation of the performance of the Board of Directors & its Committees,
Independent Directors, Non-Independent Directors and the Managing Director of the Board.
Based on that, performance evaluation has been undertaken. The Independent Directors of
the Company have also convened a separate meeting for this purpose.
24. DIRECTORS AND KEY MANAGERIAL PERSONNEL:
In accordance with the provisions of the Companies Act, 2013 and the
Articles of Association of the Company, Mr. Ketan Kothari (DIN: 00230725), Director of the
Company who retires by rotation and being eligible, offer himself for re-appointment.
However, there has been no change in the composition of the Board of
Directors of the Company during the financial year under review.
Key Managerial Personnel:
During the year under review, there has been no change in the Key
Managerial Personnel of the Company.
Pursuant to the provisions of Section 203 of the Companies Act, 2013,
the Key Managerial Personnel of the company are as follows:
Sr No. |
Name |
Designation |
1. |
Mr. Narendra Jain |
Wholetime Director |
2. |
Mr. Amit Shroff |
Chief Executive Officer |
3. |
Mr. Aakash Jain |
Chief Financial Officer |
4. |
Mr. Sunny Parekh |
Company Secretary & Compliance |
|
|
Officer |
Changes after the end of the Financial Year:
Based on the recommendation of the Nomination and Remuneration
Committee, Board has considered and approved the appointment of Mrs. Aastha Vishal Solanki
(DIN: 10667741) as an Additional, Non-Executive Independent Director of the Company for
term of Five (05) Years from 30th June, 2024 to 29th June, 2029, subject to the approval
of Shareholders of the Company in the ensuing general meeting.
And the Board Considered the cessation of Mrs. Riddhi Kamlesh Tilwani
(DIN: 06910038) as an Independent Director of the Company, w.e.f. the close of business
hours of 30th June, 2024, consequent to end of her Ten (10) years term i.e. Two (02) terms
of Five (05) Years each as an Independent Director of the Company.
25. STATEMENT REGARDING OPINION OF THE BOARD WITH REGARD TO
INTEGRITY, EXPERTISE AND EXPERIENCE (INCLUDING THE PROFICIENCY) OF THE
INDEPENDENT DIRECTORS APPOINTED DURING THE YEAR:
The Board of Directors have evaluated the Independent Directors during
the year 2023-24 and opined that the integrity, expertise and experience (including
proficiency) of the Independent Directors is satisfactory.
26. SUBSIDIARIES, ASSOCIATES & JOINT VENTURES:
During the year under review, the Company had incorporated the below
mentioned Wholly Owned Subsidiaries (WOS) a. M/s. Arvog Services Limited (CIN:
U82990MH2023SGC410742) on 18th September, 2023 and b. M/s. Arvog Enterprises
Limited (CIN: U82990MH2023PLC412647) on 20th October 2023.
However, the purpose for which M/s. Arvog Services Limited (CIN:
U82990MH2023SGC410742) was incorporated could not be achieved and therefore the
Company filed an application to the Registrar of Companies
(ROC') for its Strike-off. The current status of the application is Under
process of striking off'.
Further, M/s. Arvog Enterprises Limited (CIN: U82990MH2023PLC412647)
was incorporated with the primary objective of providing "Lender Service
Provider" (LSP) services. However, due to regulatory and compliance constraints, the
said WOS could not start its business operations and therefore the Company sold all of its
shares of the said WOS worth of 1,00,000/- (Rupees One Lac Only) at cost. Thus, the said
WOS ceased to be the WOS effective from 13th March, 2024.
As on the end of the Financial Year, the Company does not have any
subsidiary, associate or joint venture company.
27. PUBLIC DEPOSITS:
The Company has not accepted or renewed any amount falling within the
purview of provisions of Section 73 of the Companies Act, 2013 ("the Act") read
with the Companies
(Acceptance of Deposit) Rules, 2014 during the year under review.
Hence, the requirement for furnishing details of deposits which are not in compliance with
the Chapter V of the Act is not applicable.
28. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS:
There are no significant material orders passed by the
Regulators/Courts/Tribunals which would impact the going concern status of the Company and
its future operations.
29. CORPORATE SOCIAL RESPONSIBILITY (CSR):
Pursuant to the applicability of the Companies (Corporate Social
Responsibility) Rules, 2014, the Board at its meeting held on 15th September, 2020
constituted the Corporate Social Responsibility Committee of the Company. In terms of the
provisions of the Companies Act, 2013, read with the CSR Rules, the Annual Report on CSR
activities under the format prescribed in "Annexure VII" of the CSR Rules is
annexed to this Report.
30. ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO
THE FINANCIAL STATEMENTS:
The Company has put in place proper systems and procedures to detect
and protect the Organizational resources both tangible and intangible. The Company has
also put in place the following to ensure the adequacy of internal financial controls.
The Company has appointed Internal Auditors to check the Internal
Controls and also check whether the workflow of the Organization is in accordance with the
approved policies of Financial Statements, Internal Auditors present to the Audit
Committee, the Internal Audit Report and Management Comments on the Internal Audit
observations.
The Directors and Management confirm that the Internal Financial
Controls (IFC) are 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.
31. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Pursuant to Regulation 34(2) of the SEBI (Listing Obligations and
Disclosures Requirements) (LODR) Regulation, 2015 with the Stock Exchanges, the Management
Discussion & Analysis Report for the year under review is given under a separate
section as
"Annexure VIII".
32. MAINTENANCE OF COST RECORDS AS MANDATED BY THE CENTRAL
GOVERNMENT
Pursuant to the provisions of Section 148(1) of the Companies act, 2013
read with Companies (Cost Records and Audit) Rules, 2014, the Company was required is not
required to maintain cost records.
33. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT
WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has been employing women employees in various cadres within
the Office premises. The Company has complied with the provisions relating to the
constitution of Internal Complaints Committee under the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Internal Complaints Committee was re- constituted by the Board of
Directors through its resolution dated 09th November, 2023 as per the
following:
Sr No. |
Name of the Member |
Designation |
1 |
Mrs. Sugandhi Ravi Kumar |
Presiding Officer |
2 |
Ms. Bharti Solanki |
Member |
3 |
Mr. Aakash Nemichand Jain |
Member |
4 |
Ms. Saily Ambavkar |
External Member |
There was no complaint received from any employee during the financial
year 2023-24 and hence no complaint is outstanding as on 31.03.2024 for redressal.
34. THE DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING
UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE
YEAR ALONGWITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR:
The Company has initiated proceedings against M/s. Rao Edusolutions
Private Limited (CIN: U80301MH2013PTC247740) in the capacity of Financial Creditor before
the Hon'ble National Company Law Tribunal (NCLT').
The Hon'ble National Company Law Tribunal (NCLT') has
ordered the Commencement of a Corporate Insolvency Resolution Process (CIRP')
on July 3, 2023. As of now, the status of the case is pending with the Insolvency
Resolution Professional (IRP).
35. AUDIT COMMITTEE
The details pertaining to the composition of the Audit Committee are
included in the Corporate Governance Report, which is a part of this report.
36. NOMINATION AND REMUNERATION POLICY:
Pursuant to Section 178 of the Companies Act, 2013 the Board of
Directors of your Company has, on recommendation of the Nomination & Remuneration
Committee, framed and adopted a policy for selection and appointment of Directors, Senior
Management and their remuneration. The details pertaining to the composition of the
Nomination & Remuneration Committee are included in the Corporate Governance Report,
which is a part of this report.
37. LISTING FEES:
The Equity Shares of the Company is listed on BSE Limited. The Listing
fees for the Financial Year 2024-25 for BSE Limited has been paid by the Company.
38. ESTABLISHMENT OF VIGIL MECHANISM FOR DIRECTORS AND
EMPLOYEES:
The Whistle Blower Policy is formulated to encourage all employees and
directors of the Company to report any unethical behaviour, actual or suspected fraud or
violation of the Code of the Company and to provide a secure environment to such employees
acting in good faith and safeguarding them from any adverse action by the management. This
policy is in line with the requirements of the Listing Regulations of the Stock Exchange
and the provisions of Sub Section 9 of Section 177 of the Companies Act, 2013 read with
Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 which stipulated
that every listed Company shall establish a "Vigil Mechanism".
39. RISK MANAGEMENT:
Pursuant to Section 134(3)(n) of the Companies Act, 2013 and the
Listing Regulations, the Company has constituted a Risk Management Committee and it has
framed and adopted a policy on Risk Management of the Company, to identify the elements of
risk which may threaten the existence of the Company and possible solutions to mitigate
the risk involved.
At present the Company has not identified any element of risk which may
threaten the existence of the Company.
40. CODE OF CONDUCT:
The Code of Conduct for the directors and Senior Management Personnel
of the Company have been laid by the Board and necessary declaration has been obtained
from them. The
Company has adopted amended Code of Conduct' (including code
of conduct of
Independent Directors) and the terms & conditions for appointment
of Independent Directors of the Company in the meeting of Board of Directors held on 12th
November, 2014.
A declaration signed by the Executive Director of the Company to this
effect is contained at the end of this report. The said Code is posted on the website of
the Company i.e. www.arvog.com.
41. AUCTIONS HELD DURING THE YEAR:
During the Financial Year under review, the Company had auctions. The
details of auctions required to be furnished in the Annual Report of the Company as per
Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs issued by the
Reserve Bank of India (RBI) on 22 October 2021 (SBR Framework') are stated
under:
Date of Auction |
Number of loan accounts |
Outstanding amounts (in INR) |
Value fetched |
Whether any of its sister concerns
participated in the auction |
02-06-2023 |
2 |
39,526 |
56,170 |
NO |
04-07-2023 |
3 |
1,16,705 |
1,47,955 |
NO |
05-08-2023 |
1 |
1,29,192 |
1,65,567 |
NO |
05-09-2023 |
4 |
4,35,697 |
4,81,140 |
NO |
30-09-2023 |
8 |
6,49,813 |
7,00,683 |
NO |
05-11-2023 |
4 |
7,06,728 |
7,57,248 |
NO |
07-12-2023 |
4 |
7,98,819 |
8,48,500 |
NO |
27-12-2023 |
18 |
31,81,057 |
33,68,467 |
NO |
05-02-2024 |
10 |
12,70,687 |
12,49,556 |
NO |
42. SECRETARIAL STANDARDS
The Company complies with all applicable Secretarial Standards issued
by the Institute of Company Secretaries of India.
43. COMPLIANCE OF RBI REGULATIONS
Your Company has been granted registration under Sec. 45IA of Reserve
Bank of India Act, 1934 (Registration Number: B- 13.00316) whereby the Company is allowed
to carry on business as a Non-Banking Financial Company. The Company has followed all
regulatory directions such as, KYC Norms, Provisioning Norms, CRAR, Loan to value
guidelines for Gold loans, Asset Liability Management, Fair Practices Code, Fraud
Reporting etc., as required by the Reserve Bank of India, the regulator for NBFCs. As on
March 31, 2024 the percentage of Gold Loan to total loan book is 74.70%
Your Company's Capital Adequacy Ratio as on March 31, 2024 stood
at 67.70% of the aggregate risk weighted assets on balance sheet and risk adjusted value
of the off-balance sheet items, which is well above the regulatory minimum of 15.00 %.
44. COMMITTEES OF THE BOARD
As on March 31, 2024, the Board had Seven committees:
The Audit Committee, The Nomination and Remuneration Committee, The
Stakeholders Relationship Committee, The Corporate Social Responsibility Committee, The
Risk Management Committee, The Internal Compliant Committee and The Asset- Liability
Committee (ALCO').
During the year, all recommendations made by the committees were
approved by the Board.
A detailed note on the composition of the Board and its committees is
provided in the Corporate Governance report.
45. BUSINESS RESPONSIBILITY REPORT:
Pursuant to Regulation 34 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 as amended from time to time, top 1000 Listed
entities in terms of market capitalization as on the last date of the reporting financial
year are required to furnish a Business Responsibility Report in the Annual Report. Since
the Company does on form the part of top 1000 listed entities in terms of market
capitalization as on the last date of the reporting financial year the Company is not
required to furnish Business Responsibility Report for the Financial Year under review.
46. CREDIT RATING:
During the year under review, the Credit Rating agencies have revised/
assigned the below credit ratings:
Rating Agency |
Instrument Type |
Size of Issues ( Crore) |
Rating/Outlook (September 16, 2022) |
Rating/Outlook (April 25, 2023) |
Rating/Outlook (February 14, 2024) |
Rating Action |
Infomerics Valuation and Rating Private
Limited ("INFOMERICS") |
Long term Bank Facilities- NCD |
7.50 |
IVR BBB-/ Stable (IVR Triple B Minus with
Stable Outlook) |
IVR BBB/Stable (IVR Triple B with Stable
Outlook) |
IVR BBB/Stable (IVR Triple B with Stable
Outlook) |
Revised |
Infomerics Valuation and Rating Private
Limited ("INFOMERICS") |
Short term Bank Facilities Overdraft |
17.00 (Reduced from 17.50 Crore) |
IVR A3 (IVR A Three) |
IVR A3+ (IVR A Three Plus) |
IVR A3+ (IVR A Three Plus) |
Revised |
Infomerics Valuation and Rating Private
Limited ("INFOMERICS") |
Long Term/ Short Term Bank Facilities
Proposed facility |
50.50 (Reduced from 75.50 Crore) |
IVR BBB-/ Stable; IVR A3 (IVR Triple B Minus
with Stable Outlook; IVR A Three) |
IVR BBB/ Stable; IVR A3+ (IVR Triple B with
Stable Outlook; IVR A Three Plus) |
IVR BBB/ Stable; IVR A3+ (IVR Triple B with
Stable Outlook; IVR A Three Plus) |
Revised |
Infomerics Valuation and Rating Private
Limited ("INFOMERICS") |
Long term Facilities Term Loans |
25.00 |
|
|
IVR BBB/Stable (IVR Triple B with Stable
Outlook) |
Assigned |
The above ratings indicate a very strong degree of safety regarding
timely servicing of financial obligations.
47. OTHER DISCLOSURES:
(i) Compliance: a. The Company erroneously missed to upload the
disclosure on Related Party Transactions on the date of Publication of its Financial
Result for the quarter and year ended on 31st March, 2023. The Company has made
good the default after it came to its notice by filing the same to the listing centre on
the immediate following date. The Company has also paid the fine of 5,900/- in response to
the penalty imposed by the exchange.
b. The Company has approved issuance of stock options under Finkurve
ESOP Plan, 2018 vide shareholders' resolution dated 29th September, 2018. Till date,
the Options under the said ESOP Plan are granted in three different tranches i.e., on 26th
February, 2021, 30th June, 2021, and 24th August, 2021. As SEBI (Share Based Employee
Benefits) Regulation, 2014 was replaced by SEBI (Share Based Employee Benefits)
Regulation, 2021 which required the
Company to apply for In Principal approval for Listing and Trading
before granting of any stock options. Therefore, the Company was required to have the said
approval prior to granting of options under tranche number three i.e., for the options
granted on 24th August, 2021. Hence, the Company had made the application for condonation
of delay for non-compliance of Regulation 12(3) of SEBI (Share Based Employee Benefits and
Sweat Equity) Regulations, 2021 for the options granted in tranche three along with the
requisite fees to SEBI. The same has been accepted by BSE and the Company has received the
In-Principal Approval for the granting of options under the Finkurve ESOP Plan 2018 on
28th May, 2024.
(ii) Whistle Blower Policy:
In line with the best Corporate Governance practices, the Company has
in place a system through which the directors and employees may report concerns about
unethical behaviour, actual or suspected fraud or violation of the Company's Code of
Conduct & Ethics without fear of reprisal. The employees and directors may report to
the Compliance Officer and have direct access to the Chairman of the Audit Committee. The
Whistle-Blower Policy is placed on the website of the Company.
(iii) Prevention of Insider Trading Code:
As per SEBI (Prevention of Insider Trading) Regulation, 1992, as
amended, the Company has adopted a Code of Conduct for Prevention of Insider Trading. All
the directors, employees at senior management and other employees who could have access to
the unpublished price sensitive information of the Company are governed by this code. The
trading window is closed during the time of declaration of results and occurrence of any
material events as per the Code. The Compliance Officer is responsible for setting forth
procedures and implementation of the code for trading in Company securities. During the
year under review there has been due compliance with the said code.
(iv) Material Subsidiary Policy:
The Company has framed policy for determining "Material
Subsidiaries" to ensure that Board of Directors has overall supervision of
functioning of subsidiaries of the Company and to provide the governance framework for
such subsidiaries. The policy has been uploaded on the website of the Company i.e.
www.arvog.com/reports-policies/.
(v) CEO/ CFO Certification:
The certificate certifying that the financial statements do not contain
any materially untrue statement and these statements represent a true and fair view of the
Company's affairs is annexed and forms part of the Annual Report.
48. ACKNOWLEDGEMENT:
Your Company and its Directors wish to extend their sincerest thanks
for the co-operation received from shareholders, bankers and other business constituent
during the year under review. Your directors also wish to place on record their deep sense
of appreciation for the commitment displayed by all employees of the Company.
|
For and on behalf of the Board of Directors |
|
Sd/- |
|
Ketan Kothari |
Place: Mumbai |
Chairman |
Date: 29th August, 2024 |
DIN:00230725 |