The Board of Directors present the 16th Annual Report, along with the
audited annual standalone and consolidated accounts of Aditya Birla
Money Limited (''the Company) for the year ended March 31, 2012.
1. Financial Performance Summary
The highlights of the financial results of the Company on a standalone
and on a consolidated basis are as follows:
(Rs. in Crore)
Particulars Year ended Year ended Year ended Year ended
March 31, March 31, March 31, March 31,
2012 2011 2012 2011
Operations 67.41 98.90 88.28 114.28
Other Income 4.98 8.22 8.95 9.74
Expenditure 77.46 100.65 102.61 115.67
Interest, (5.07) 6.47 (5.38) 8.35
Less : Interest 5.62 4.77 5.60 4.80
Taxation (10.69) 1.70 (10.98) 3.55
Less : Depreciation 7.80 7.16 8.28 7.50
items — 8.15 — 8.15
Profit / (Loss)
before Taxation (18.49) (13.61) (19.26) (12.10)
Less : Provision for
tax including (1.20) (4.15) (1.43) (3.66)
Profit / (Loss)
after Tax (17.29) (9.46) (17.83) (8.44)
previous year 12.63 22.09 16.18 24.62
Balance carried to
Balance Sheet (4.66) 12.63 (1.65) 16.18
2. Business Performance
On a Standalone basis, the Company''s total income stood at Rs.72.39
Crore compared to Rs.107.12 Crore during the previous year. The Income
from Operations was Rs.67.41 Crore compared to Rs. 98.90 Crore during
the previous year. The Loss before depreciation and taxation was down
to Rs.10.69 Crore compared to a profit of Rs.1.70 Crore in the previous
year. Interest cost was Rs.5.62 Crore as compared to Rs. 4.77 Crore in
the previous year. The Company also witnessed decrease in trading
volumes in line with the market trends and thus impacting the revenues.
As a result, the Company posted a Net Loss of Rs.17.29 Crore as
compared to Rs.9.46 Crore in the previous year. On a Consolidated
basis, the Company''s consolidated Income from Operations was Rs.88.28
Crore, compared to Rs. 114.28 Crore in the previous year. The
Consolidated Net Loss (before Tax) was Rs.19.26 Crore compared to Rs.
12.10 Crore in the previous year.
Reserves & Surplus of the Company as on March 31, 2012 stood at
Rs.34.63 Crore. During the year, no amount is proposed to be
transferred to Reserves.
In view of accumulated losses, your Directors do not recommend any
dividend for the year under review.
5. Credit Rating
During the year, CRISIL Limited re-affirmed A1 rating for the short
term debt programme.
6. Share Capital
The Authorised Share Capital of the Company is Rs.25 Crore. The Paid up
Capital, Issued and Subscribed Capital of the Company was Rs.13.54
Crore as on March 31, 2012 consisting of 55,400,000 Equity shares of
Re.1/- each and 800,000 8% Redeemable Non Convertible Non Cumulative
Preference Shares of Rs.100/- each. There was no capital infusion
during the year under review.
7. Management Discussion and Analysis
The Management Discussion and Analysis Report forming part of
Directors'' Report for the year under review forms part of Annual
Report. The report provides strategic direction and more detailed
analysis on performance of the individual businesses and their outlook.
8. Corporate Governance
Your Directors reaffirm their commitment to the corporate governance
standards to the extent they are applicable to the Company. A detailed
Corporate Governance Report forms part of this Annual Report.
The Company has a wholly owned subsidiary viz. Aditya Birla Commodities
Broking Limited (ABCBL), which is engaged in the business of
commodity broking. ABCBL has become a material non-listed subsidiary
company on the basis of consolidated turnover for the accounting year
ended March 31, 2012 pursuant to Clause 49 of the listing agreement.
Relevant disclosure in this regard also forms part of the Corporate
ABCBL continues to perform well in commodity trading. ABCBL posted
total Income of Rs.24.97 Crore compared to Rs.16.90 Crore during
previous year. The Net Loss was at Rs.0.54 Crore compared to a Net
Profit of Rs.1.02 Crore in the previous year. The increase in total
income during the year is attributed to increase in brokerage income
due to higher volumes in commodity trading during the year, as compared
to the previous year. The company had a Net Loss in the current year
due to higher operating cost during the year.
The Consolidated financial statements pursuant to clause 41 of the
Listing Agreement and prepared in accordance with the Accounting
Standards prescribed by the Institute of Chartered Accounts of India
forms part of the Annual Report. In terms of general exemption granted
by the Ministry of Corporate Affairs vide its circular no. Circular
No.2/2011 dated February 8, 2011 and in compliance with the conditions
enlisted therein, the reports and annual accounts of the subsidiary
company for the financial year ended March 31, 2012 have not been
attached to the Balance Sheet of the Company. As required under the
circular, statutory information pertaining to the subsidiary company
forms part of the Annual Report. Further, the annual accounts and other
related information of the subsidiary company are available to you and
the shareholders of subsidiary company at any point of time. Any
shareholder / investor of the holding company or subsidiary company
desirous of obtaining a copy of the said documents may send request in
writing to the Company at the Registered Office. The annual accounts of
subsidiary company shall also be kept for inspection at the Registered
Office of the Company and of the subsidiary company.
10. Public Deposits
The Company has not accepted or renewed any deposit as covered under
Section 58A of the Act read with the Companies (Acceptance of Deposit)
Rules, 1975, as amended, from the public, during the year under review.
11. Particulars as per Section 217 of the Companies Act, 1956
The information relating to the conservation of Energy and Technology
Absorption required under Section 217(1)(e) of the Companies Act, 1956
(the Act), are not applicable to the Company due to the very nature
of the industry in which it operates. During the year under review,
there were no foreign exchange earnings (previous year Nil) and outgo
(previous year Nil), respectively. In accordance with the provisions of
Section 217(2A) read with the Companies (Particulars of Employees)
Rules 1975, the names and other particulars of employees are to be set
out in the Directors'' Report as an addendum thereto. However, in terms
of the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956,
the Report and accounts, as therein set out, are being sent to all the
members of the company excluding the information about the employees.
Any member, who is interested in obtaining such particulars about
employees, may write to the Company at the Registered Office of the
As on March 31, 2012, your Board of Directors comprises of 5 Directors
including 2 Independent Directors. In accordance with the provisions of
Section 255 and 256 of the Companies Act, 1956, Mr.P.Sudhir Rao,
retires by rotation at the ensuing Annual General Meeting (AGM) and
being eligible, has offered himself for re-appointment. The Board
recommends his re-appointment.
The Company has received requisite disclosures and undertakings from
all the Directors in compliance with the provisions of the Companies
Act, 1956 and other applicable statutes.
13. Directors'' Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956 (the Act),
your Directors confirm that, to the best of their knowledge and belief:
- in the preparation of the annual accounts, the applicable standards
have been followed alongwith proper explanation relating to material
departures, if any;
- appropriate accounting policies have been selected and applied
consistently and such 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 as at March 31, 2012 and of the profit of the Company for
the year ended on that date;
- 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;
- the attached Statement of Accounts for the period ended March 31,
2012 have been prepared on a going concern basis;
- proper systems are in place to ensure compliance of all laws
applicable to the Company; and
- all related party transactions are disclosed in notes to accounts at
Note 34 in terms of Accounting Standard 18.
14. Auditors and Auditors'' Report
M/s. S.R. Batliboi & Co., Chartered Accountants, Mumbai, (Registration
No. 301003E), hold office as the Statutory Auditors of the Company upto
the ensuing AGM and have offered themselves for re-appointment. A
certificate from them has been received to the effect that their
re-appointment as Statutory Auditors of the Company, if made, would be
within the limits prescribed under Section 224(1B) of the Act. The
Auditors have further certified that they have subjected themselves for
the peer review process of the Institute of Chartered Accountants of
India (ICAI) and they hold a valid certificate issued by the Peer
Review Board of ICAI. The Board proposes the re-appointment of M/s.
S.R. Batliboi & Co., Chartered Accountants, Mumbai as the Statutory
Auditors of the Company, on the recommendation of the Audit Committee.
The observations, if any, made by the Auditors of the Company in their
report read with relevant notes to the Accounts are self-explanatory
and, therefore do not call for any further comments.
Your Directors wish to place their sincere appreciation for the
valuable advice, guidance and support provided by the regulators and
statutory authorities from time to time. Your Directors express their
gratitude to the clients, bankers and all business associates for their
continuous support and patronage to the Company. Your Directors take
this opportunity to recognize and place on record their deep sense of
appreciation for the exemplary commitment and contribution made by
employees at all levels. Your involvement as Shareholders is greatly
valued. Your Directors look forward to your continuing support.
For and on behalf of the Board
Pankaj Razdan Sudhakar Ramasubramanian
Director Managing Director
Place : Chennai
Date : May 3, 2012