| The Shareholders
K. Z. Leasing & Finance Ltd.
The Directors have pleasure in presenting the 28th Annual Report of
your company together with the Audited Accounts for the year ended 31st
March 2014,
FINANCIAL RESULT
Income 2013-2014 2012-2013
Profit before depreciation & tax 3,244,390.41 13,81,644.27
Less : Depreciation 29,252.00 32,530.00
Provision for Taxation 6,12,164.00 272,694.00
NET PROFIT/LOSS AFTER TAX 2,602,974.41 1,076,420.27
Less:Transfer to statutory Reserve A/c 20%
Balance of Previous Year
Transfer to Revenue Reserve 520,594.88 215,284.05
2,082,379.53 861,136.22
REVIEW OF FINANCIAL PERFORMANCE, OPERATIONS AND FUTURE PROSPECTS:
During the year under report, the company has made profit after Tax of
Rs.26.02 Lac during the year as against profit of Rs. 10.76 lac in the
previous year. The directors are hoping better performance in coming
years.
A detailed analysis of the financial results is given in the Management
Discussion and Analysis Report, which forms part of this report.
DIVIDEND
There is tough competition in finance Business, it is in the interest
of the company not to declare dividend and invest that amount in the
company. Directors have decided not to recommend any dividend.
DEPOSIT
The company has not accepted public deposit during the year and the
deposits outstanding are old deposits from Directors and their
relative. However company has complied the provisions of section 58 A
of companies Act as well as NBFC regulations.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the companies
Act, 1956 with respect to Directors' Responsibilities Statement, it is
hereby confirmed:
( I ) That in the preparation of the annual accounts for the financial
year ended 31st March, 2014, the applicable accounting standards had
been followed along with proper explanation relating to material
departures ;
( II ) That the directors had selected such accounting policies and
applied them consistently and made judgments and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affairs of the company at the end of the financial year and of the
profit or loss of the company for the year under review ;
( III ) That the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provision of the companies Act, 1956 for safeguarding the assets of the
company and for preventing and detecting fraud and other irregularities
;
( IV ) That the directors had prepared the accounts for the financial
year ended 31st March, 2014 on a " going concern " basis
BOARD OF DIRECTORS:
1. Mr. Ankit P Patel and Shri Gandalal A Patel Director of the Company
retires by rotation and, being eligible, offers himself for
re-appointment.
2. In accordance with the provisions of Section 149, 152 and other
applicable provisions of the Companies Act, 2013and Rules made
thereunder, it is proposed to appoint Mr. Rameshbhai N Patel, Mr.
Kantilal J Patel, Mr. Gandalal A Patel and Mr. Keshavlal K Patel, who
are currently non- executive independent directors of the company and
who meet the criteria for independence as provided in Section 149(6) of
the Companies Act, 2013, as independent directors for a period of 5
years from the date of the ensuing Annual General Meeting.
RBI GUIDELINES
The company has complied with the regulations of the Reserve Bank of
India as on March 31st, 2014 as are applicable to it as a systemically
important non banking finance company.
CAPITAL ADEQUACY
The company's capital adequacy ration was 110.75% as on march 31st
March 2014, which is significantly above the threshold limit of 10% as
prescribed by the reserve bank of India.
AUDITORS
M/s. J. M. Patel & Bros., Chartered Accountant, Auditors of the company
hold office until the conclusion of the ensuing Annual General Meeting
and are recommended for re appointment. The company has received
certificate from the Auditors to the effect that their re appointment,
if made, would be within the prescribed limits under section 224 (1) of
The Companies act, 1956
AUDITOR'S OBSERVATIONS
As the observations made by auditors in the Auditors report read with
notes on Account are self explanatory so no further explanation
require. However for NPA provision the company has followed the
procedure of written off Bad debts instead of NPA provision. Board of
Directors are hopeful to recover the advances outstanding.
CORPORATE GOVERNANCE
Pursuant to the requirements of the Listing Agreements with Stock
Exchanges, your Directors are pleased to annex the following:
1. Management Discussions and Analysis Report.
2. A report on Corporate Governance along with Auditor's Certificate
relating to compliance of conditions thereof.
PERSONAL
During the year under review, the relation between the Management and
the employees continued to be very cordial. None of the employees of
the company were in receipt of remuneration in excess of Rs. 25000 per
month and hence, information pursuant to the provisions of section 217
(2A) of the Companies Act, 1956 read with Companies (Particulars Of
employees ) Rules, 1975 is not furnished.
INFORMATION AS PER SECTION 217 (1) (E) OF THE COMPANIES ACT, 1956
The Company has no activities relation to conservation of energy or
technology absorption. There was neither inflow nor out go of foreign
exchange during the year.
APPRECIATION
The Director record the appreciation to the company's share holder,
Bank Employees for their support and look forward for their
co-operation in the measures being taken to ensure a more prosperous
future of the company.
ACCOUNTING STANDARDS AND FINANCIAL REPORTING:
The Company incorporates the accounting standards as and when issued by
the Institute of chartered Accountants of India. The Company Complied
with the Stock Exchange and legal requirement concerning the Financial
Statements at the time of preparing them for the Annual Report.
LISTING:
The equity shares of the company are listed in the Bombay Stock
Exchange Limited which has the connectivity in most of the cities
across the country.
CORPORATE SOCIAL RESPOSIBILITY:
During the year the Board constituted a Corporate Social Responsibility
Committee comprising of three nonexecutive directors which stood as
follows as on 31st March, 2014:
Mr. Rameshbhai N Patel (Non-executive and Independent director) -
Chairman Mr. Kantilal J Patel (Non-executive and Independent director)
- Member Mr. Gandalal A Patel (Non-executive and Independent director)
- Member
The terms of reference and scope of work is same as prescribed in
Section 135 of the Companies Act, 2013, and the Rules thereunder.
INSURANCE:
The company has made necessary arrangements for adequately insuring its
insurable interests. INDUSTRIAL RELATIONS:
The directors are happy to note that the industrial relations continued
to remain cordial during the year. The directors express their
appreciation towards the staffs and executive staffs for their
coordination and hope for a continued harmonious relations.
ACKNOWLEDGEMENT:
Your directors would like to express their grateful appreciation for
the assistance and co-operation received from the Government, Banks and
Business associates during the year under review. The Directors also
express their gratitude to the shareholders for the confidence reposed
towards the Company. Your Directors wish to place on record their deep
sense of appreciation to all the employees for their commendable team
work and enthusiastic contribution during the year.
REGISTERED OFFICE :
1st Floor, Deshna Chamber, BY ORDER OF THE BOARD
B/h., Kadva Patidar Wadi, FOR, K Z LEASING AND FINANCE LTD.
Ashram Road, Usmanpura,
Ahmedabad - 380014.
Date : 22-05-2014 Pravinbhai K Patel
(Chairman & Managing Director)
|