The Directors present the Twenty Ninth Annual Report and Audited
Accounts of the Company for the year ended March 31, 2013.
FINANCIAL RESULTS 2012-2013 2011-2012
(Rs. in lacs) (Rs. in lacs)
Profit before tax 1031.07 745.11
Less: Tax Expense for the year 356.19 258.68
Profit after tax 674.88 486.43
Profit brought forward from 2140.21 2095.05
Amount available for 2815.09 2581.48
Proposed Dividend 246.23 261.55
Tax on Dividend 39.94 42.43
Transfer to Capital Redemption 73.35 --
Transfer to General Reserve 70.00 40.00
Transfer to Special Reserve Fund 134.98 97.29
Balance carried to Balance Sheet 2250.59 2140.21
The Board of Directors are pleased to recommend a dividend @ Rs.2/- per
equity share of the Company for the financial year ended 31st March
2013. The total cash outflow on account of dividend & tax thereon
The Company''s total income increased to Rs. 3463.11 lacs from Rs.
2220.69 lacs and profit after tax to Rs. 674.88 lacs from Rs. 486.43
lacs in the previous year.
Even under though difficult market conditions, the income from
operation increased during the year under review. Trading in debt
papers and development of retail clients like PF/Pension/Gratuity trust
etc. has continued to yield good results. Further the Company
substantially increased its business of loan against security of
At the Board meeting held on 29th May 2012, the Board of Directors of
the Company has approved to Buyback the Company''s full paid up equity
shares of Rs. 10/- each from open market through Stock Exchange route,
subject to maximum Buyback price of Rs. 80/- per share, upto an
aggregate amount not exceeding Rs.12,40,00,000/- (Rupees Twelve Crores
Forty Lac Only) [excluding brokerage costs, SEBI Turnover charges,
taxes such as Securities Transaction tax, service tax and relevant
stamp duty] in accordance with the provisions contained in the Articles
of Association, Section 77A,77AA,77B and other applicable provisions of
the Companies Act 1956 and the provisions contained in the SEBI (Buy
Back of Securities) Regulations, 1998 including any statutory
modifications and amendments from time to time for the time being in
force (Buyback Regulations). The above stated aggregate amount is
not exceeding 10% of the paid-up capital and free reserves of the
Company as per the Audited Annual Accounts of the Company for the
financial year ended March 31, 2012.
Pursuant to the aforesaid approval the Company has bought-back from the
Open Market on B S E Limited 7,41,423 equity shares upto March 31, 2013
at an average price of Rs 60.98 per share. Out of the shares
bought-back, 7,33,495 equity shares have been extinguished till March
31, 2013. Hence the paid up equity share capital of the company as on
March 31, 2013 stands reduced by Rs 73,34,950 to Rs. 12,34,39,940
divided into 1,23,43,994 equity shares of Rs. 10/- each.
EMPLOYEES STOCK OPTION SCHEME
Disclosures under the Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
1999 is annexed to this report.
The Company has no public deposits as of date and will not accept any
deposits without prior approval of the Statutory Authorities concerned.
Your Company''s subsidiary, LKP Securities Ltd. has expanded its
geographical reach and now has 1030 outlets across India.
As per the Circular No. 51/12/2007-CL-III dated 8th February, 2011
issued by Government of India, Ministry of Corporate Affairs, the
required financial information in the consolidated balance sheet is
given in respect of Company''s subsidiaries i.e. LKP Securities
Limited and Gayatri Cement and Chemical Industries Private Limited.
The annual accounts of the aforesaid subsidiaries and the related
detailed information shall be made available to shareholders of the
Company and it''s subsidiaries, seeking such information at any point
of time. The annual accounts of the subsidiary companies shall also be
kept open for inspection by any shareholder at the head office at 112A
/203 Embassy Centre, Nariman Point, Mumbai 400 021.
During the year under review the Company did not have any employee
falling within the scope of Section 217 (2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975,
The provisions of Section 217(1)(e) of the Companies Act, 1956,
relating to conservation of energy and technology absorption do not
apply to your Company. There are no foreign exchange earnings & outgo
during the year under report.
Mr. Milan S. Bhise and Mr. Vineet N. Suchanti retire by rotation and
being eligible offers themselves for re-appointment. Your Directors
recommend their re-appointment.
M/s. Ford, Rhodes, Parks & Co., Chartered Accountants, Mumbai, retire
at the conclusion of the forthcoming Annual General Meeting. The
Company has received a letter from them to the effect that their
appointment, if made, would be within the prescribed limits under
Section 224 (1-B) of the Companies Act, 1956. Your Directors recommend
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, the
Directors hereby confirm that :
i) in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
ii) the Directors have selected such accounting policies and applied
them consistently and made judgement 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 of
the Company for that period ;
iii) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of Companies Act, 1956, for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities
to the best of their knowledge and ability;
iv) the Directors have prepared the annual accounts on a going concern
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with Accounting Standard AS-21,the Consolidated Financial
Statements are furnished herewith and form part of this Report and
Accounts. These statements have been prepared on the basis of audited
financial statements received from the Subsidiary Companies as approved
by their Board of Directors.
The Report on Corporate Governance along with a Certificate of
compliance from the Auditors and Management Discussion and Analysis
Report forms part of this Report.
Your Directors would like to place on record their sincere appreciation
to Shareholders, Bankers, Institutions and Employees for their co-
operation and support.
For and on behalf of the Board of Directors
Mumbai (M. V. Doshi)
Date: April 29, 2013 Executive Chairman