To The Members of Wall Street Finance Limited.
The Directors present the 25th Annual Report of your Company along
with the Audited Statements of Accounts for the year ended 31st March
The year 2011-12 has been extremely challenging on account of global
economic slowdown and financial market turmoil. Global macro economic
conditions have not yet shown signs of improvement and Indian financial
market continues to remain under pressure. The currency market has seen
volatility of unprecedented nature in the recent months and the
worsening domestic fiscal defcit position doesn''t assure stability even
in the near future.
To meet the challenging circumstances and build a sustainable, long
term and Profitable business, your Directors have been reviewing various
business segments of the Company on a continuous basis. Such review has
resulted in discontinuation of the bulk foreign currency export
business in the second half of the year on account of shrinking margin
and high risks involved.
Renewed emphasis is being laid on increasing numbers of MTS
transactions and active sub-agents. The possibility of introducing new
products to optimize revenue from existing customers and sub-agents
base, is also being explored.
During the year, fraud in one of our branches in southern part of India
impacted our wholesale forex business badly. It diverted the focus of
the management towards handling litigation and other related matters
and also has put tremendous pressure on the Working Capital of the
Company resulting in increased outflow on account of interest.
To handle the unprecedented situation, the board undertook various
restructuring measures. In order to bring renewed focus on
Profitability, operations and risk management, the board brought in a
new highly experienced and capable leadership team to lead the
organization. Your Directors have adopted a strategy to focus on Money
Transfer, Retail Forex and Outward Remittance activities by building on
our core competencies as an organization and focus on enhancing our
foot-print of sub-agent locations during the current financial year. We
have also renewed focus on Profitability of the business and closed
non-Profitable branches, which did not seem to be potentially viable in
the coming quarters. The Company has also optimized costs at all levels
as per the business requirement to remove inefficiencies. These measures
have already started to yield positive results and should augur well in
the coming months.
The Company has formed a Risk Management Committee to lay down the
framework to manage the business risks and mitigate them. This will
ensure stricter internal controls and compliance mechanisms in the
Our long-term goal is to be a premier financial service provider in the
areas which are evolving and to serve not only our existing customer
base but also add new ones as well. We are exploring opportunities to
use our existing network of branches and sub-agents and un-utilized
licenses by finding new products, capabilities, technologies and
partnerships. We are building our base strong to meet these emerging
needs by recruiting professional staff to drive the Company''s business
to the desired level.
The financial results of the Company for the year under review are
Particulars For the year ended
Profit before finance cost,
depreciation and tax 90.09 342.58
Less: Finance cost 312.78 233.89
Profit / (Loss) before
depreciation and tax (222.69) 108.69
Less: Depreciation 63.46 63.66
Net Profit / (Loss) before
tax and extra-ordinary
expense (286.15) 45.03
Less: Extra-ordinary expense 66.38
Net Profit / (Loss) before tax (352.53) 45.03
Less: Provision for tax 17.15 8.47
Profit / (Loss) after tax (369.68) 36.56
Add: Balance of Profit
brought forward 29.44 28.74
Profit available for
appropriation (340.24) 65.30
a) Transfer to statutory
b) Transfer to reserves
contingent provision on
standard asset 2.12 1.48
c) Transfer of profits
attributable to subsidiary
d) Proposed dividend 23.14
e) Tax on dividend 3.93
Surplus carried to
balance sheet (342.36) 29.44
During the financial year the income from operations amounted to Rs.
3282.12 lakhs as against Rs. 3191.46 lakhs for the previous year,
recording a marginal growth of 2.84%. However, the Company incurred a
loss of Rs. 369.68 lacs for the year as against a Profit of Rs. 36.56
lacs for the previous year. The financial year 2011- 2012 was a
challenging year and the losses incurred during the year were primarily
on account of wholesale forex business not performing as per
projections and increase in fixed overhead, which grew by 16.19 % over
the last year without registering the corresponding growth in revenue
during the year. The overall reduction in the rate of commission by
Western Union by 1% had also adversely affected the bottom line.
Detailed information about the operations of the Company is
incorporated in the Management Discussion and Analysis Report. The
Financial Highlights are mentioned above while segment wise performance
is not reported as the financials & allied services segment has ceased
to be reportable business segment within the criteria defined under
Accounting Standard 17.
Your Company has reported loss for the year and hence your directors do
not recommend dividend for the year.
The Company will transfer the unclaimed dividend to the Investor
Education and Protection Fund as and when it is due during the current
FINANCIAL IRREGULARITIES AT ONE OF THE BRANCH IN SOUTH
During the year under consideration, some fraudulent transactions at a
branch in the southern region were noticed and after detailed
investigation, the quantum of losses has been ascertained at approx Rs.
522 lacs. Apart from that, claims amounting to Rs. 280 lacs approx.
have been raised by some other corporates which are disputed by the
Company and suitable legal measures have been taken to defend the
Company''s position against these disputed claims. Your Company has fled
insurance claim for the losses mentioned hereinbefore which is under
Your Company was converted into Non-Deposit Accepting Non-Banking
Finance Company during financial year ended 2010 and since then, it had
stopped accepting fresh fixed deposits and also renewing existing fixed
deposits and had started repaying the fixed deposits alongwith the
interest thereon from the Escrow Account upon their maturity.
During the year under consideration, fixed deposits amounting to Rs.
31.10 lacs were repaid. Fixed deposits outstanding as on 31st March
2012 were Rs. 10.87 lacs as against Rs. 41.97 lacs on 31st March 2011.
The working capital requirements of the Company are currently funded by
the Company''s bankers at a reasonable cost. Various strengthening and
tightening measures employed by the management have resulted in better
utilization of the existing credit facilities available to the Company
from the Company''s bankers.
The Company had a 100% wholly owned subsidiary named Goldman Securities
Private Limited (GSPL). During the year under review, the Company
divested the investment of 51,10,000 equity shares of Rs. 10/- each
held in GSPL to Spice Investments and Finance Advisors Pvt. Ltd. at par
value amounting to Rs. 511 lacs. Consequently, Goldman Securities Pvt.
Ltd. ceases to be a subsidiary of the Company with effect from 30th
September 2011. The transition of business and licence to the new
entity is awaiting regulatory approvals.
CHANGE IN THE REGISTERED OFFICE
With effect from 19th December 2011, the Registered Office of the
Company was shifted from 101-112, Chintamani Plaza, Andheri - Kurla
Road, Chakala, Andheri (East), Mumbai 400 099 to Spice Tower, CTS - R
10, Phase II, Anand Nagar, New Link Road, Jogeshwari (West), Mumbai
During the year under consideration, following changes took place in
the Board of Directors of the Company:
- Ms. Shefali Shah ceased to be a Director upon her resignation with
effect from 13th August 2011.
- Mr. Subroto Chattopadhyay, Mr. Sudip Bandyopadhyay, Ms. Divya Modi
and Ms. Preeti Malhotra were appointed as additional directors with
effect from 20th August 2011. Their directorship in the Company was
confrmed by the shareholders in the Annual General Meeting held on 23rd
- Mr. Rajeev Maheshwari ceased to be CEO and Whole-time Director of the
Company with effect from 15th November 2011 upon his resignation.
The Board places on record the appreciation for the guidance and
directions provided by Mr. Rajeev Maheshwari and Ms. Shefali Shah
during their stint as directors.
Ms. Divya Modi and Ms. Preeti Malhotra retire by rotation at the
ensuing Annual General Meeting and being eligible offer themselves for
As required under Clause 49 of Listing Agreement, brief profle, details
of experience and other Directorships / Committee memberships held by
the Directors, whose appointment/re-appointment is due in the
forthcoming Annual General Meeting (AGM) of the Company, forms part of
the Notice convening AGM.
Mr. Arun Ajmera has been appointed as a Chief Executive Officer of the
Company with effect from 15th November 2011.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to section 217 (2AA) of the Companies Act, 1956, the
Directors, based on representations received from the operating
Management, confirm that:
i) in the preparation of the annual accounts, the applicable accounting
standards have been followed, unless otherwise stated in the notes to
ii) the relevant accounting policies are consistently applied and
reasonable, prudent judgments and estimates are made so as to give a
true and fair view of the state of affairs of the Company as at 31st
March 2012 and of the loss incurred by the Company for the year ended
on that date;
iii) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) the Annual Accounts have been prepared on a going concern basis.
M/s ASA & Associates, Chartered Accountants, Mumbai, Statutory Auditors
of the Company, retire at the conclusion of the ensuing Annual General
Meeting and being eligible, have offered themselves for re-appointment.
Observations in the Auditor''s report read with relevant notes forming
part of the accounts are self-explanatory.
Your Company undertakes two activities namely, Money Changing and Money
Remittance Services. The Company follows prudential norms prescribed by
the Reserve Bank of India in addition to generally accepted accounting
principles and standards.
As required under the provisions of Clause 49 of the Listing Agreement,
the Corporate Governance Report including the Auditors'' Certificate
thereon and the Management Discussion and Analysis Report form part of
this Annual Report.
Your Company continues to be registered as a Non-Banking Finance
Company (NBFC) and follows the prudential norms of Reserve Bank of
Your Company continues to honour, within prescribed time, all its
obligations with respect to payment of interest on fixed deposits and
borrowings, repayment of fixed deposits and payment of statutory dues.
The Company continues to use at par facility for payment of interest to
fixed deposit holders. As on 31st March 2012, the Company has no overdue
deposits other than unclaimed deposits of Rs. 10.87 lacs for which
reminders have been sent to the concerned deposit holders. The Company
does not have any unclaimed deposits which are required to be
transferred to the Investor Education and Protection Fund.
PART A CONSERVATION OF ENERGY: Not Applicable
PART B TECHNOLOGY ABSORPTION: Not Applicable
PART C FOREIGN EXCHANGE EARNINGS AND OUTGO
The Company is into the business of money remittance wherein the
remittances sent from abroad are disbursed to the receiver residing in
India for family maintenance and are governed by the applicable
guidelines prescribed by Reserve Bank of India time to time. Within the
ambit of the applicable laws, the Company is taking suitable steps to
increase its business.
PARTICULARS OF EMPLOYEES
None of the employees of the Company are covered by the provisions of
Section 217(2A) of the Companies Act, 1956. Hence no disclosure under
Section 217(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employees) Rules, 1975, as amended to date, is
Your Directors would like to place on record their sincere appreciation
and gratitude for the guidance and support provided by the Reserve Bank
of India and other statutory authorities, bankers, shareholders,
deposit holders, credit rating agency, business associates and the
esteemed customers during the year under review. The Directors also
wish to thank all the employees for their sincere efforts at all
Registered Office: For and on behalf of the Board
Spice Tower, CTS-R10
Phase II, Anand Nagar, Brij Gopal Daga
New Link Road, Jogeshwari (W), Director
Mumbai - 400 102 Sudip Bandyopadhyay
Date : 28th May 2012 Director