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EQUITY - MARKET SCREENER

Authum Investment & Infrastructure Ltd
Industry :  Finance & Investments
BSE Code
ISIN Demat
Book Value()
539177
INE206F01022
176.1024904
NSE Symbol
P/E(TTM)
Mar.Cap( Cr.)
N.A
34.7
7578.49
EPS(TTM)
Face Value()
Div & Yield %
12.86
1
0
 

As on: Sep 25, 2023 10:48 PM

To,

The Members,

The Directors have pleasure in presenting the 39th Annual Report together with the Audited Accounts of the Company for the year ended 31st March, 2021.

FINANCIAL HIGHLIGHTS

PARTICULARS Year Ended 31/03/2021 Year Ended 31/03/2020
(Rs.) (Rs.)
Operational & Other Income 2,55,38,29,961 (10,50,34,327)
Profit/Loss Before Depreciation & Tax 1,57,26,04,813 (15,28,78,960)
Less: Depreciation 23,136 15,143
Provision for taxation 21,95,00,000 0.00
Mat Credit Entitlement earlier year 0.00 0.00
Deferred Tax 0.00 0.00
Taxes for earlier years 0.00 39,234
Profit/Loss after Depreciation & Tax 1,35,30,81,677 (15,29,33,337)
Balance brought forward for previous year 0.00 0.00
Appropriations
Amount transferred to Statutory Reserves 27,06,16,335 0.00
Bonus shares Issued 0.00 0.00
Balance Carried to Balance Sheet 1,08,24,65,342 (15,29,33,337)

OPERATIONS

During the year under review, Company made a profit of H 135,30,81,677/- as compared to a loss of Rs.15,29,33,337/- owing to the pick up in the Indian economy and favorable market sentiments. The Management is very positive and looking forward for better performance in future.

Detailed information on the operations of the Company and details on the state of affairs of the Company are covered in the Management Discussion and Analysis Report.

There has been no change in the nature of business of your Company during the year under review.

DIVIDEND & APPROPRIATIONS

The Board of Directors has decided not to recommend any dividend for the year ended 31st March, 2021.

APPROPRIATIONS

The Company has transferred Rs. 27,06,16,335/- to Statutory Reserve Fund created in terms of Section 45-IC of the RBI Act, 1934 during the year under review. The closing balance of the reserves and surplus of the Company for FY 2020-21, after all appropriation and adjustments was Rs. 40,34,11,237/-.

TRANSFER OF UNCLAIMED AND UNPAID DIVIDEND AMOUNTS TO THE INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

Members are hereby informed that under the Act, the Company is obliged to transfer any money lying in the Unpaid Dividend Account, which remains unpaid or unclaimed for a period of seven years from date of such transfer to the Unpaid Dividend Account, to the credit of the Investor Education and Protection Fund ("the Fund") established by the Central Government. Further attention of the members is drawn to the provisions of Section 124(6) of the Act which require a company to transfer in the name of IEPF Authority all shares in respect of which dividend has not been paid or claimed for 7 (seven) consecutive years or more from the date of transfer to Unpaid Dividend Account of the Company. In accordance with the aforesaid provisions of the Act read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules), as amended from time to time, the Company has already transferred all shares in respect of which dividend declared for the financial year 2010-11 has not been paid or claimed by the members for 7 (seven) consecutive years. Members are advised to visit the website of the Company to ascertain details of shares transferred to IEPF Authority. The Company has transferred the unpaid or unclaimed dividends declared for the financial years 2010-11 to the Fund. The Company has uploaded the details of unpaid and unclaimed dividend amounts transferred to IEPF on the website of the Company. The said details have also been uploaded on the website of the Ministry of Corporate Affairs and the same can be accessed through the link: www.mca.gov.in.

INCREASE IN SHARE CAPITAL

During the year under review, your Company has issued and allotted in aggregate 46,11,236 Equity Shares of H 10/- each at a premium of H 71/- each on Rights Basis in the ratio of 2:5 to the existing shareholders of the Company.

Consequent to the aforesaid, the issued, subscribed and paid–up Share Capital of the Company increased from H 11,52,80,900/- to H 58,03,93,260/- consisting of 1,61,39,326 equity shares of H 10/- each and 4,19,00,000 preference shares of Rs. 10/- each.

As on 31st March, 2021, 100% of the total paid-up capital of the Company stands in the dematerialized form.

Further, the Company has not issued any equity capital during the year under review and has also not issued any shares with differential voting rights, nor granted any stock options or sweat equity, at any time including during the year under review.

NON-CONVERTIBLE REDEEMABLE PREFERENCE SHARES

As on 31st March, 2021, the total outstanding Non-Convertible Redeemable Preference Shares (RPS) issued and allotted on private placement basis stands at H 209.50 Crores divided into 4,19,00,000 Preference Shares of Face Value H 10/- each.

IMPACT OF NOVEL COVID-19 PANDEMIC

The COVID-19 pandemic has been a difficult period for all the industries. At the beginning of the financial year, we suspended some of the operations at the Office and shut the offices with a view to safeguard the risks to the health of the employees of the Company work from home for its employees. During the year we were able to maintain our investment portfolio in good pace as complete economy started picking up and all other businesses have reached pre covid levels.

PUBLIC DEPOSITS

The Company did not hold any public deposits at the beginning of the year nor has it accepted any Public Deposits during the year under review.

PARTICULARS OF LOANS GRANTED, GUARANTEE PROVIDED AND INVESTMENTS MADE PURSUANT TO THE PROVISIONS OF SECTION 186 OF THE COMPANIES ACT, 2013

The provisions of Section 186 of the Companies Act, 2013, pertaining to investment and lending activities is not applicable to the Company since the Company is an NBFC whose principal business is the acquisition of securities.

During the year the Company has not provided any guarantee.

SUBSIDIARY COMPANIES AND CONSOLIDATED FINANCIAL RESULTS

The Company does not have any subsidiary Company; hence the provisions pursuant to consolidation are not applicable.

EXTRACT OF ANNUAL RETURN

Pursuant to Section 92(3) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, an extract of the Annual Return of the Company in Form MGT-9 is annexed as Annexure 1 and forms an integral part of this report. The Annual Return as referred in Section 134(3)(a)of the Companies Act, 2013 for the financial year ended 31st March, 2021 shall be placed on the website of the Company at www. authum.com.

FINANCIAL STATEMENTS

Pursuant to the Companies (Indian Accounting Standards) Rules, 2015 ("IND AS") notified by the Ministry of Corporate Affairs, the Company being a NBFC has adopted the Indian Accounting Standards with effect from 1st April, 2019.

Accordingly, the Financial Statements of the Company for the year ended 31st March, 2021 and 31st March, 2020 have been prepared in accordance with IND AS.

The audited Financial Statements prepared in accordance with IND AS are provided in this Annual Report.

RELATED PARTY TRANSACTIONS

In line with the requirements of the Companies Act, 2013 and Listing Regulations, your Company has formulated a Policy on Related Party Transactions which is available on Company's website at www.authum.com. This Policy deals with the review and approval of related party transactions. The Board of Directors of the Company has approved the criteria for giving the omnibus approval by the Audit Committee within the overall framework of the Policy on Related Party Transactions.

Omnibus approval was obtained for related party transactions which are of repetitive nature and entered in the ordinary course of business and at arm's length basis. Pursuant to Regulation 23 of the Listing Regulations, all related party transactions were placed before the Audit Committee on a quarterly basis for their review and approval. Further, the Policy on materiality of Related Party Transactions is available on the website of the Company at www.authum.com. Particulars of contracts or arrangements with related parties referred to in Section 188(1) of the Companies Act, 2013, in the prescribed Form AOC-2, is appended as Annexure II to the Board's report.

MEETINGS OF THE BOARD

During the year under review, 5 (Five) Board Meetings were held. The details of the composition of the Board and its Committees and of the Meetings held and attendance of the Directors at such Meetings, are provided in the Corporate Governance Report. There have not been any instances during the year when recommendations of the Audit Committee were not accepted by the Board.

COMMITTEES OF THE BOARD

Currently the Board has ten Committees viz. Audit Committee, Nomination & Remuneration Committee, Corporate Social Responsibility Committee, Stakeholders Relationship Committee, Investment Committee, Risk Management Committee. Corporate Governance Committee, Rights Issue Committee, Allotment Committee and Asset Liability Committee. A detailed note on the composition of the Board and its Committees and other related particulars are provided in the Report of Directors on Corporate Governance forming part of this Annual Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Pursuant to the provisions of Section 152 (6) of the Companies Act, 2013 and other applicable provisions, if any, of the Companies Act, 2013 (including any statutory modification or re-enactment thereof for the time being in force) Mrs. 01506529), Non-Executive Non-Independent Director of the Company is liable to retire by rotation at the ensuing AGM and being eligible offers herself for reappointment. The brief resume of Mrs. Alpana Dangi and other relevant details are given in the accompanying Notice of AGM. During the year under review, the Board of Directors of the Company appointed Mrs. Bhaviika Jain and Mr. Ashokan Achuthan as Independent Directors of the Company w.e.f. 30th May, 2020 for a period of 5 years i.e. 30th May, 2020 to 29th May, 2025. Further, their appointment as an Independent Directors was approved by the Shareholders at the Thirty Eighth AGM of the Company held on 30th September, 2020.

Mr. Tapan Sodani and Mrs. Barkha Agarwal resigned as Independent Directors of the Company via resolution passed by the Board of Directors on 30th May, 2020.

Further, during the year under review, subject to approval of the shareholders of the Company in the ensuing AGM, the Board has approved the appointment of Mr. Sanjiv Swarup as Additional Independent Director of the Company w.e.f. 21st October, 2020 for the term of 5 years i.e. 21st October, 2020 up to 20th October, 2025, under the provisions of Section 161 of the Act. Mr. Sanjiv Swarup will hold the office upto the date of the ensuing AGM of the Company. Further, Mr. Vinit Parikh, due to his increased work commitments, has resigned as an Independent Director of the Company w.e.f. 21st October, 2020.

With deep regret, we report the sad demise of our Independent Director, Mr. Ashokan Achuthan on 2nd April, 2021. Your Directors place on record their highest gratitude and appreciation for the guidance given by Mr. Ashokan Achuthan to the Board during his tenure as a Director.

Further, the Board of Directors at its meeting held on 21st April, 2021 and on the recommendation of the Nomination and Remuneration Committee (NRC) had appointed Mr. Sanjay Dangi (DIN: 00012833) as an Additional Director and further recommends to the members of the Company, appointment of Mr. Sanjay Dangi (DIN: 00012833), as a Non-Executive Non-Independent Director of the Company w.e.f. 21st April, 2021 and the Board of Directors also considered and noted resignation of Mr. Navin Kumar Jain, Executive Director of the Company w.e.f. 21st April, 2021.

Necessary resolutions for the appointment / re-appointment of the aforesaid directors and their detailed profiles have been included in the notice convening the ensuing AGM and details of the proposal for appointment / reappointment are mentioned in the explanatory statement of the notice in accordance with the requirements of the Listing Regulations and Secretarial Standards. All the directors of the Company have confirmed that they are not disqualified from being appointed as directors in terms of section 164 & 165 of the Companies Act, 2013.

DECLARATION FROM THE INDEPENDENT DIRECTORS

During the year under review, all the Independent Directors had submitted the Declaration of Independence, as required pursuant to section 149(7) of the Companies Act, 2013 stating that they meet the criteria of independence as provided in section 149(6) of the Companies Act, 2013 read with applicable provisions of SEBI (Listing Obligations & Disclosure Requirements), 2015 or as per applicable regulation of SEBI (Listing Obligations & Disclosure Requirements), 2015

The Board took on record the declaration and confirmation submitted by the independent directors, regarding, them meeting the prescribed criteria of independence, after undertaking due assessment of the veracity of the same in terms of the SEBI Listing Regulations.

SEPARATE MEETING OF INDEPENDENT DIRECTOR

The Independent Directors of the Company met on 12th February, 2021 in terms of Section 149(8) and Schedule – IV of Companies Act, 2013 and regulation 25(3) & (4) of SEBI (Listing Obligations & Disclosure Requirements), 2015, without the attendance of Non-Independent Directors and members of management. They met to discuss the inter-alia amongst other items the following mandatory items viz.,

(a) to review the performance of non-independent directors and the Board as a whole;

(b) to review the performance of the Chairperson of the company, taking into account the views of executive directors and non- executive directors;

(c) to assess the quality, quantity and timeliness of flow of information between the Company management and the Board that is necessary for the Board to effectively and reasonably perform their duties.

FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS (IDs)

In terms of Regulation 25(7) of the SEBI (Listing Obligations & Disclosure Requirements), 2015 and the Companies Act, 2013, the Company is required to conduct the Familiarization Programme for Independent Directors (IDs) to familiarize them about their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company, etc., through various initiatives. Significant Statutory updates are circulated on a quarterly basis through which Directors are made aware of the significant news developments and highlights from various regulatory authorities viz. Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Ministry of Corporate Affairs (MCA), etc.

The Company Secretary regularly apprises the Directors about their roles, rights and responsibilities in the Company from time to time as per the requirements of the SEBI (Listing Obligations & Disclosure Requirements), 2015, with the Stock Exchanges and Companies Act, 2013 read together with the Rules and Schedules there under. The policy and details of familiarization programme imparted to the Independent Directors of the Company is available at www.authum.com.

PERFORMANCE EVALUATION

Pursuant to the provisions of Section 134(3), 149(8)and Schedule IV of the Companies Act, 2013 read with Listing Regulations, Annual Performance Evaluation of the Board, the Directors as well as Committees of the Board has been carried out. The performance evaluation of all the Directors and the Board as a whole was conducted based on the criteria and framework adopted by the Board, details of which are provided in the Corporate Governance Report. The properly defined and systematically structured questionnaire was prepared after having considered various aspects and benchmarks of the Board's functioning, composition of the Board and its Committees, performance of specific duties, obligations and governance.

DIRECTORS RESPONSIBILITY STATEMENT

Based on the framework of internal financial controls and compliance systems established and maintained by the Company, and the reviews performed by Management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the Company's internal financial controls were adequate and effective during the financial year 2020-21.

Accordingly, pursuant to Section 134(3)(c) and 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, confirm:

1. That in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

2. That the Directors have selected such accounting policies and applied them consistently and made 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 at the end of the financial year and of the loss of the Company for the year under review;

3. That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. That the Annual Accounts for the year ended 31st March, 2021, has been prepared on a going concern basis.

5. They have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively;

6. They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The Company maintains appropriate systems of internal controls, including monitoring procedures, to ensure that all assets and investments are safeguarded against loss from unauthorized use or disposition. Company policies, guidelines and procedures provide for adequate checks and balances and are meant to ensure that all transactions are authorized, recorded and reported correctly.

The Internal Auditor reviews the efficiency and effectiveness of these systems and procedures. The Internal Auditor submits his Report periodically which is placed before the Audit Committee.

A combination of these systems enables your Company to maintain a robust design of controls and its operating effectiveness is ensured through periodical internal checks and audit.

CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY AND ITS REPORT

In compliance with the provisions of Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of Directors have reconstituted Corporate Social Responsibility (CSR) Committee on 21st October, 2020 under the Chairmanship of Mr. Sanjiv Swarup. Mr. Amit Dangi and Mr. Vimal Ajmera are the members of the CSR Committee.

The Board of Directors of the Company has approved CSR Policy based on the recommendation of the CSR Committee and uploaded it on the website of the Company at www.authum.com. During the year under review, the Company has fallen out of the purview of the prescribed criteria as laid down in Section 135(1) of the Companies Act, 2013 read with Rule 3(2) of Companies (CSR) Rules, 2014, CSR Provisions are not applicable. Hence, the requirement to disclose the Corporate Social Responsibility policy in the Company's Website has also been dispensed with.

PARTICULARS OF EMPLOYEES, KEY MANAGERIAL PERSONNEL AND RELATED DISCLOSURES

In accordance with the provisions of Section 197(12) of the Act read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement containing the disclosures pertaining to remuneration and other details as required under the Act and the above Rules are provided in the Annual Report.

The disclosures as specified under Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are appended to this Report as Annexure III. The information regarding employee remuneration as required pursuant to Rule 5(2) and Rule 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is not provided as none of the employees are covered under the same.

STATUTORY AUDITORS AND THEIR REPORT

M/s. Sanghai & Co., Chartered Accountants (Firm Reg. No. 319079E) were appointed as Statutory Auditors of the Company from the conclusion of the 35th Annual General Meeting until the conclusion of the 39th Annual General Meeting to be held in the year 2021. As per the provisions of Section 139 of the Act, they have confirmed that they are not disqualified from continuing as Auditors of the Company. The Audit Report of M/s. Sanghai & Co., Chartered Accountants (Firm Reg. No. 319079E) on the Financial Statements of the Company for the Financial Year 2020-21 is a part of the Annual Report.

There are no qualifications, reservations or adverse remarks or disclaimers made by M/s. Sanghai & Co. Chartered Accountants, Statutory Auditors, in their report on the Company's financial statements for the year ended on 31st March, 2021.

DETAILS OF FRAUDS REPORTED BY AUDITORS UNDER SUB-SECTION (12) OF SECTION 143 OF THE COMPANIES ACT 2013, OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT

During the year under review, the Statutory Auditor and Secretarial Auditor have not reported any instances of frauds committed in the Company by its Officers or Employees, to the Audit Committee under Section 143(12) of the Act details of which needs to be mentioned in this Report.

SECRETARIAL AUDITOR

The Company had appointed Mr. Mayank Arora, proprietor of M/s. Mayank Arora & Co., Practicing Company Secretary, holding membership of The Institute of Company Secretaries of India (Membership No. F10378; Certificate of Practice No. 13609) as the Secretarial Auditor of the Company for FY 2020-21 to conduct the Secretarial Audit pursuant to Section 204 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The Secretarial Audit report as received from M/s. Mayank Arora & Co is appended to this Report as Annexure IV.

In addition to the above, the company has obtained Secretarial Compliance Report for the financial year ended 31st March, 2021 from M/s. Mayank Arora & Co., Practicing Company Secretary in compliance with the Regulation 24A of the Listing Regulations and the SEBI circular CIR/CFD/CMD1/27/2019 dated 8th February 2019, and has been submitted with stock exchanges.

The Secretarial Audit Report contains the following observations/ Remarks as follows:

MAINTENANCE OF COST RECORDS

Your Company is not required to maintain cost records as specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 and accordingly such accounts and records have not been maintained by the Company.

SECRETARIAL STANDARDS OF ICSI

The Company has complied with the applicable mandatory Secretarial Standards issued by the Institute of Company Secretaries of India.

INTERNAL AUDITOR AND THEIR REPORT

The Board appointed M/s. L.K. Bhonia & Co. Chartered Accountant, as Internal Auditors to conduct Internal Audit for the FY 2020-21. During the year under review, M/s. L.K. Bhonia & Co, Internal Auditor's had submitted their Report for the financial year 2020-21 for various quarters/period to the Audit Committee for its review and necessary action.

MANAGEMENT DISCUSSION ANALYSIS REPORT (MDAR)

The Management Discussion and Analysis Report for the year under review, as stipulated under Regulation 34(2)(f ) & (3)and other applicable regulation read with Schedule V of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015 is presented in a separate section and forms part of the Annual Report.

CORPORATE GOVERNANCE REPORT AND ITS COMPLIANCE CERTIFICATE

In compliance with the Regulation 34 read with Schedule 9 of the Listing Regulations, a detailed report on Corporate Governance is given as an Annexure and forms an integral part of this Annual Report. A Certificate from the Practicing Company Secretary confirming compliance of the conditions of Corporate Governance as stipulated under the Listing Regulations is appended to the Corporate Governance Report.

BUSINESS RESPONSIBILITY REPORT

The SEBI has extended the applicability of Business Responsibility Report (BRR) to the top 1000 Companies by market capitalization from F.Y. 2019-20 and accordingly, the Business Responsibility Report describing the initiatives taken by the Company from an environmental, social and governance perspective has been annexed to this Report as Annexure V which forms an integral part of this report.

DISCLOSURE ON NOMINATION AND REMUNERATION COMMITTEE AND NOMINATION AND REMUNERATION POLICY

The Nomination and Remuneration Committee as on 31st March, 2021 comprises of the following: Mrs. Alpana Dangi – Non Executive Non Independent Director; Mr. Sanjiv Swarup - Chairman and Non Executive Independent Director and Mr. Vimal Ajmera – Non Executive Independent Director. The Board has on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report.

RISK MANAGEMENT

The Company has adopted a Risk Management Policy in accordance with the provisions of the Act and Regulation 17(9) of the SEBI (Listing Obligations & Disclosure Requirements), 2015. It establishes various levels of risks with its varying levels of probability, the likely impact on the business and its mitigation measures.

The Risk Management Committee as on 31st March, 2021 comprises of the following: Mr. Amit Dangi – Chairman and Executive Director, Mrs. Alpana Dangi – Non Executive Non Independent Director and Mr. Ashokan Achuthan, Non Executive Independent Director.

The Audit committee facilitates the execution of Risk Management Practices in the Company, in the areas of risk identification, assessment, monitoring, mitigation and reporting.

WHISTLE BLOWER/VIGIL MECHANISM

The Company has formulated a codified Vigil Mechanism Policy incorporating the provisions relating to Vigil Mechanism in terms of Section 177 of the Companies Act, 2013 and Regulation 22 of the SEBI (Listing Obligations & Disclosure Requirements), 2015, in order to encourage Directors and Employees of the Company to escalate to the level of the Audit Committee any issue of concerns impacting and compromising with the interest of the Company and its stakeholders in anyway. The Company is committed to adhere to highest possible standards of ethical, moral and legal business conduct and to open communication and to provide necessary safeguards for protection of employees from reprisals or victimization, for whistle blowing in good faith. During the year under review, the Company amended the Whistle Blower Policy to provide a clause wherein all employees of the Company are eligible to report any instance of leak of Unpublished Price Sensitive Information. The said Policy is available on the Company's website www.authum.com.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

(A) Conservation of Energy and Technology Absorption:

The Company has no activity relating to Conservation of Energy and Technology Absorption as stipulated in Rule 8(3) of Companies (Accounts) Rules, 2014.

(B) Foreign Exchange Earnings & Outgo

During the year under review, the Company did not have any Foreign Exchange Earnings or Outgo.

CEO & CFO CERTIFICATION

A Certificate of the CEO and CFO of the Company in terms of Regulation 17(8) of the Listing Regulations is annexed to this report.

DISCLOSUREUNDERTHESEXUALHARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT 2013:

The Company has in place an Anti Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

The following is a summary of sexual harassment complaints received and disposed off during the year 2020- 21

No. of complaints received: Nil

No. of complaints disposed off: Nil

COMPLIANCE

The Company is registered as a non-deposit accepting non-systemically important NBFC. The Company has complied with and continues to comply with all applicable laws, rules, circulars and regulations, including the RBI Directions.

During FY 2020-21, there were no frauds committed by the Company and no material frauds committed on the Company by its officers or employees.

OTHER DISCLOSURES AND INFORMATION

a) Significant and Material Orders passed by the Authority

There are no significant or material orders passed by the Regulators or Courts or Tribunals which impacts the going concern status of the Company and its future operations.

b) Material Changes and Commitments affecting financial position

There are no material changes and Commitments affecting financial position, however, pursuant to Rights Issue of the Company, the promoter holding changed from 86,15,906 Equity Shares i.e. 74.74% to 1,10,90,906 Equity Shares i.e. 68.72% of paid up equity share capital of the Company. The Company had bided for acquisition of acquisition of assets of Reliance Home Finance Limited (‘RHFL') and acquisition of Reliance Commercial Finance Limited (‘RCFL'). The Company had on 19th June, 2021 and 15th July, 2021 received letter of intent (‘LOI') from the Lead Bank i.e. Bank of Baroda on behalf of the Lenders of Inter Creditor Agreement (‘ICA') under Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019 dated June 7, 2019 (‘RBI Directions') for the said acquisition of assets of RHFL and acquisition of RCFL. Both the LOI's are subject to approval by Non ICA Lenders, RBI and other regulatory and statutory requirements / approval.

We believe your company possesses a strong foundation supported by an enthusiastic management with relevant domain experience and a sound balance sheet. Further, proposed acquisition of RCFL and RHFL strengthens our business portfolio and enables us to develop a single platform across multiple financial products and services in the NBFC sector.

Your company shall continue to strive for excellence and seek new product offerings and geographical expansion in a phased manner to gain healthy traction in this growing lending Industry.

As part of our diversification strategy, we are extremely excited about the growth potential which these acquisitions offer with a blend of commercial finance, MSME/SME, affordable housing, loan against properties, retail and consumer finance along with strong digital & technology play to generate higher yields. We believe that these segments are major drivers of the national economy with significant unfulfilled demand and have the potential to positively touch the lives of millions in the country.

Authum is geared up to meet its financial commitment to the Lenders of RCFL and RHFL under the LOI. As part of its core investment strategy and principles of value preservation and long-term value creation, Authum will leverage RCFL's and RHFL's existing customer base, employees, processes, licenses, knowledge, infrastructure, branch network and digital platform with an aim to create a niche lending platform. Authum is committed to the well-being of the current employees and ensuring continuity of customer services of both the companies.

APPRECIATION

Your Company has been able to perform better with the continuous improvement in all functions and areas which coupled with an efficient utilization of the Company's resources led to sustainable and profitable growth of the Organization. Your Directors express their deep sense of appreciation and extend their sincere thanks to every employee and associates for their dedicated and sustained contribution and they look forward the continuance of the same in future.

ACKNOWLEDGEMENTS

The Directors would like to place on record their gratitude for the valuable guidance and support received from the Reserve Bank of India, the Securities and Exchange Board of India, the Registrar of Companies, and other government and regulatory agencies and to convey their appreciation to the Members, bankers, lenders, vendors and all other business associates for the continuous support given by them to the Company. The Directors also place on record their appreciation of all the employees of the Company for their commitment, commendable efforts, team work and professionalism.