Directors Report
TO THE MEMBERS:
Your Directors have pleasure presenting the twenty first Annual Report together with
the Audited Statement of Accounts for the year ended 31st March, 2014.
FINANCIAL RESULTS:
|
Year ended31.3.2014 |
Year ended31.3.2013 |
|
(Rs. Lacs) |
(Rs. Lacs) |
| Profit/(Loss) before depreciation |
1,033.63 |
1,238.92 |
| Depreciation |
62.90 |
71.72 |
| Profit/(Loss) before exceptional and tax |
970.73 |
1,167.20 |
| Exceptional items (Profit on sale of Fixed Assets) |
121.80 |
399.42 |
| Profit/(Loss) before tax |
1,092.53 |
1,566.62 |
| Less : Provision for Income Tax |
123.00 |
250.00 |
| Provision for Wealth Tax |
3.49 |
3.86 |
| Less: Charge/(Credit) for deferred tax |
(14.49) |
(39.82) |
| Tax Adjustment for prior periods |
- |
(2.13) |
| Profit/(Loss) for the year |
980.53 |
1,354.71 |
| Add : Balance brought forward |
2,673.61 |
1,318.90 |
| Balance of Profit carried to Balance-Sheet |
3,654.14 |
2,673.61 |
Canara Robeco Asset Management Company, the joint venture between Canara Bank and
Robeco Groep N.V., completed 80 months of operations on 31st March 2014.
BUSINESS RESULTS & DIVIDEND:
For the year ended March 31, 2014 the revenue of the company by way of management fees
and other income earned was at Rs. 6,179.92 Lacs as compared to Rs. 5,584.86 Lacs earned
in the year ended March 31, 2013. The average assets under management (AAUM) stood at Rs.
7,341.73 Crores (previous year: Rs. 8,302.53 Crores). The AAUM includes the AAUM of Rs.
145.74 Crores of the Fund of Funds scheme. The reason for fall in AAUM was mainly
attributable to negative net inflows in various schemes of Canara Robeco Mutual Fund. The
income from Offshore Advisory earned wasRs. 333.40 Lacs as compared to R Rs. 355.65 Lacs
earned in the year ended March 31, 2013. The fall in advisory fees was on account of
closure of couple of offshore mandates. The company has incurred expenses over the past
year to the tune of Rs. 5,209.20 Lacs as compared to Rs. 4,417.66 Lacs incurred in the
last financial year. While expenditure under personnel costs were kept under tight
control, one of the significant expenses incurred which was higher than the previous year
(FY 2013 - 14: 1,340.74 lacs; FY 2012 - 13: 572.36 lacs).
In view of the need to conserve resources of the Company to meet planned expenditure,
your Directors express their inability to recommend any dividend for the year ended 31st
March, 2014.
KEY PERSONNEL:
1. Mr. Ritesh Jain resigned as Head - Investment with effect from25th May,
2013.
2. Mr. Edwin Rietkerk ceased to be the Chief Operating Officer with effect th
June, 2013. from
3. Mr. Jorg Sunderman was appointed as the Chief Operating Officerwith effect from 1 st
July 2013. Mr. Sunderman was redesignated as Chief Operating Officer & Chief Financial
Officer with effect from 31 st March 2014.
4. Mr. Avnish Jain was appointed as the Head Fixed Income with effect from 16th
September 2013.
5. Mr. Mohit Bhatia has been appointed as Head Sales & Marketing with effect from
15th November 2013
OPERATIONS:
In tune with the market demand, the following schemes were launched during the year:
| Name |
Type |
Initial Subscription |
| Canara Robeco Capital Protection Oriented Fund -series 2 (Plan-A) |
Close Ended Capital Protection Oriented Scheme |
Rs. 92.07 Crore |
| Canara Robeco Medium Term Opportunities Fund |
Open Ended Debt Scheme |
RRs. 106.11 Crore |
Apart from capital appreciation under growth plans of various Schemes and daily/weekly
dividends in Canara Robeco Liquid, Canara Robeco Treasury Advantage, Canara Robeco
Floating Rate and Canara Robeco Interval Funds and Canara Robeco Fixed Maturity Plans, the
following Schemes declared dividends during the year under dividend plans:
| • Canara Robeco Balance |
Rs. R1.00 per unit (twice during the year) |
|
Rs. R1.15 per unit (once during the year |
|
Rs. R0.95 per unit (once during the year) |
| • Canara Robeco Gilt PGS |
Rs. 0.39 per unit (once during the year) |
|
Rs. 0.37 per unit (once during the year) |
| • Canara Robeco InDiGo Fund |
Rs. 0.16 per unit (once during the year) |
|
Rs. 0.10 per unit (twice during the year) |
|
Rs. 0.17 per unit (once during the year) |
| • Canara Robeco Income |
Rs. 0.25 per unit (once during the year) |
|
Rs. 0.20 per unit (thrice during the year) |
| • Canara Robeco Monthly Income Plan |
Rs. 0.30 per unit (four times during the year) |
| • Canara Robeco Dynamic Bond Fund |
Rs. 0.38 per unit (once during the year) |
|
Rs. 0.37 per unit (once during the year) |
| • Canara Robeco F.O.R.C.E. Fund |
Rs. 0.85 per unit (once during the year) |
| • Canara Robeco Infrastructure |
Rs. 0.85 per unit (once during the year) |
| • Canara Robeco Nifty Index |
Rs. 0.95 per unit (once during the year) |
| • Canara Robeco Equity Diversified |
Rs. 2.10 per unit (once during the year) |
| • Canara Robeco Gilt Advantage Fund |
Rs. 0.60 per unit (once during the year) |
| • Canara Robeco Emerging Equities |
Rs. 1.05 per unit (once during the year) |
| • Canara Robeco Equity TaxSaver |
Rs. 0.75 per unit (once during the year) |
As on 31st March, 2014, the Company was managing 23 schemes of Canara Robeco
Mutual Fund, of which 9 were debt oriented schemes, 7 were equity oriented schemes and 5
were hybrid schemes, 1 was an Exchange Traded Fund & 1 was a domestic Fund of Fund.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND
OUTGO:
Your Company, being a non-banking non-financial Company, no specific comments in terms
of the provisions of Section 217 (1) (e) of the Companies Act, 1956 are called for on
conservation of energy and technology absorption. Your Company has, however, used
information technology relevant to its business in keeping with the size of its
operations. Earning in foreign currency aggregated to Rs. 333.40Lacs (previous year: Rs.
355.65 lacs).
Expenditure in foreign currency aggregated to Rs. 66.31 Lacs (previous year: Rs. 72.51
lacs).
FIXED DEPOSITS:
The Company has not invited/accepted deposits from members/public. The Reserve Bank of
India has classified the Company as a non-banking non- financial company.
PARTICULARS OF EMPLOYEES:
Information as per Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 forms the part of this Report by way of an
annexure. The Directors’ Report is being sent to the shareholders of the Company
excluding the said annexure. Any shareholder interested in obtaining a copy of the said
annexure may write to the Company Secretary at the registered office of the Company.
DIRECTORS:
During the year, the following changes in the composition of the Board of Directors
took place:
Appointment:
1. Mr. Sudhanshu Kumar Awasthi has been appointed as an Independent Director on the
Board with effect from 16 th October, 2013.
2. Ms. Naina Gadia has been appointed as an Independent Director on the Board with
effect from 25th November, 2013.
3. Mr. G. Sreeram has been appointed as an Associate Director on the Board with effect
from 26 th February 2014.
Resignation:
1. Mr. V H Ramakrishnan resigned as Director from the Board with effect from 17 th
September 2013.
2. Mr. D K Kapila resigned as Director from the Board with effect from 11 th
November 2013
3. Mr. M A K Prabhu resigned as Director from the Board with effect from 13th
January 2014.
Your Directors place on record their deep appreciation of the services rendered by Mr.
V H Ramakrishnan, Mr. D K Kapila & Mr. M A K Prabhu during their tenure on the Board.
DIRECTORS’ RESPONSIBILITY STATEMENT:
Pursuant to Section 217 (2AA) of the Companies Act, 1956, your Directors, based on the
representation received from the Management Team, confirm that:
(a) in the preparation of the Annual Accounts, the applicable accounting standards have
been followed along with proper explanation relating to material departures ;
(b) they have, in the selection of accounting policies, consulted the statutory
auditors and have applied them consistently and made judgements and estimates that are
reasonable and prudent affairs of the Company at the end of the financial year and
as to give true and view the state of the profit/(loss) for that period ; (c) they have
taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 1956, as amended, for safeguarding
the assets of the Company and for preventing and detecting fraud and other irregularities
;
(d) they have prepared the Annual Accounts on a going concern basis.
AUDIT COMMITTEE:
The Audit Committee of the Board comprises of Mr. Sudhanshu K. Awasthi, Ms. Hester W D
G Borrie, Mr. S K Jain and Mr. G. Sreeram.
The Committee reviews the financials of the Company, the financials of schemes,
regulatory inspection reports of the Company, reports of the internal and statutory
auditors placed before them, from time to time.
AUDITORS:
Under Section 619 of the Companies Act, the Auditor of the Company shall be appointed
by the Comptroller of Auditor General of India, New Delhi. Under Section 224(8) (aa) of
the Companies Act, 1956, the remuneration of Auditors appointed under Section 619 by the
Comptroller and Auditor General of India, shall be fixed by the Company in the General
Meeting. Accordingly, notice of the Annual General Meeting will include an item pertaining
to remuneration of the Auditors for the year 2014-2015.
ACKNOWLEDGEMENTS:
Your Directors wish to place on record their gratitude for the support and guidance
received from SEBI, Board of Trustees of Canara Robeco Mutual Fund, joint venture
partners, Canara Bank and Robeco Groep N.V., confidence reposed by the investor community
and the dedicated work put in by the staff at all levels in the Company.
|
For and on behalf of the Board of Directors |
|
Sd/- |
| Place: Bangalore |
R. K. DUBEY |
| Date : 25th April 2014 |
CHAIRMAN |
|