Bharat Nidhi (Bharat Bank) Unlisted Shares

Annual Report Summary

Bharat Nidhi Limited's 78th Annual Report for 2020-21 details the company's financial performance, corporate governance, and compliance measures.

Corporate Information:

• Directors: Mr. Bhagavatula Chintamani Rao, Mr. Bhagat Ram Goyal, and Mr. Nityanand Singh.
• Chief Financial Officer: Mr. Piyush Garg.
• Company Secretary: Ms. Amita Gola.
• Statutory Auditors: M/s A.K. Gutgutia & Co.
• Registered Office: First Floor, Express Building, 9-10, Bahadur Shah Zafar Marg, New Delhi – 110002.

Annual General Meeting (AGM):

• The 78th AGM was held on September 28, 2021, via video conferencing (VC) or other audio-visual means (OAVM).
• Members could join the AGM 30 minutes before the scheduled time, with participation limited to the first 1,000 members (excluding large shareholders, institutional investors, directors, KMP, and auditors).
• Remote e-voting was available to members from September 25-27, 2021, through Central Depository Services (India) Limited (CDSL).
• The Register of Members and Share Transfer Register was closed from September 22-28, 2021, for the payment of the final dividend.
• A dividend of Rs. 0.60 per Equity Share of Rs. 10 each was recommended.

Financial Results and Company Affairs:

• Bharat Nidhi Limited is involved in newspaper and periodical distribution in Delhi & NCR, also investing surplus funds in debt-based mutual funds, bank deposits, and other safe avenues.
• COVID-19 significantly impacted the company's operations, with a decline in demand for print publications. Sale of print publications fell almost 50% for the half year ended September 2020, compared to the year ended March 31, 2020.
• The company's net profit is derived mainly from interest and dividend income, as well as gains on sale/switch of investments.
• Total Income (Standalone): Rs. 3,077.32 Lakhs, Profit After Tax: Rs. 164.13 Lakhs.
• Total Income (Consolidated): Rs. 3,077.32 Lakhs, Profit after tax: Rs. 164.13 Lakhs, Profit / (Loss) after tax and share in Net Profit of Associates: (17,477.97)

Dividend and Reserves:

• A dividend of Rs. 0.60 per equity share was recommended, totaling Rs. 17.40 Lakhs.
• Rs. 32.82 Lakhs was transferred to Special Reserve as per section 45-IC of the Reserve Bank of India Act, 1934.
• The paid-up share capital as on March 31, 2021, was Rs. 290.07 Lakhs.

Loans, Guarantees, and Investments:

• No loans or guarantees were given under section 186 of the Companies Act, 2013.
• Details of investments are provided in Note No. 10 and Note No. 14 to the financial statements.

Directors and Key Personnel:

• The unfortunate demise of CFO Mr. Sanket Kumar Aggarwal due to COVID-19 was noted. Mr. Piyush Garg was appointed as the new CFO, effective June 29, 2021.
• Mr. Nityanand Singh will retire by rotation at the upcoming AGM and offered himself for reappointment. The Board recommends his reappointment.

Board Committees:

• The Board has three committees: Audit Committee, Stakeholders Relationship Committee, and Corporate Social Responsibility (CSR) Committee. The composition and meeting details of each committee are provided.

Business Risk Management:

• The Company has a Risk Assessment and Management Policy, last reviewed on March 10, 2021, to ensure sustainable business growth and manage associated risks.

Subsidiary/Joint Ventures/Associate Companies:

• Details of Associate Companies including their CIN, Holding/Subsidiary/Associate status, and percentage of shares held, and section of the Companies Act are provided.

Statutory Auditors:

• M/s A.K. Gutgutia & Co. were appointed as Statutory Auditors for five consecutive years in the 74th AGM held on September 21, 2017, until the conclusion of the 79th AGM to be held in the year 2022.

Transfer of Shares to IEPF:

• 2,464 equity shares held by 35 shareholders were transferred to the Investor Education and Protection Fund (IEPF) during the year.

CSR Initiatives:

• CSR amount required to be spent during the financial year ended March 31, 2021 for Rs. 68.635 Lacs, has been spent in March 2021. The Company has contributed the said amount to the Bennett University
• The Company's CSR policy and composition of the CSR Committee are outlined. The company has framed a Corporate Social Responsibility Policy, which includes the details of projects or programs to be undertaken by the Company in compliance with the provisions of the Companies Act, 2013.

Internal Control System:

• The company has an adequate internal control system in place to safeguard assets and ensure proper recording and reporting of transactions.

Directors' Responsibility Statement:

• The directors affirm that applicable accounting standards have been followed, accounting policies are consistently applied, proper care has been taken for maintaining accounting records, annual accounts have been prepared on a going concern basis, internal financial controls are adequate and operating effectively, and proper systems are in place to ensure compliance with applicable laws.

Auditor's Report:

• The Independent Auditor's Report expresses an unmodified opinion on the standalone and consolidated financial statements. The report also includes an emphasis of matter regarding the impact of the COVID-19 pandemic on the company's operations.

Other Legal and Regulatory Requirements:

• The company's adherence to legal and regulatory requirements, including maintenance of cost records, secretarial standards, and transfer of shares to the Investor Education and Protection Fund, is detailed.

This summary captures the key financial and corporate governance aspects covered in the Bharat Nidhi Limited 78th Annual Report 2020-21.