Annual Report Summary
The Bombay Swadeshi Stores Limited (BSSL) 116th Annual Report for the financial year 2021-22 covers the standalone and consolidated financial results.
Financial Performance & Operations
- The company's standalone financial performance shows an increase in income from operations from ₹1763.78 lakhs in FY 2020-21 to ₹2623.76 lakhs in FY 2021-22. Other income also increased. However, total expenses exceeded revenue, leading to a profit before tax of negative ₹673.66 lakhs (compared to a loss of ₹1652.26 lakhs the previous year). After accounting for tax expenses, the company reported a loss after tax of ₹510.35 lakhs, an improvement from the loss of ₹1259.78 lakhs in the previous year.
- The Board of Directors did not recommend any dividend for the financial year ended 31st March, 2022, due to losses. No amount was transferred to reserves. There was no change in the nature of the business.
- The company faced headwinds due to the COVID-19 pandemic, which adversely impacted store operations through lockdowns. Strategic steps were taken to mitigate the impact, including negotiating store rentals and streamlining costs, yielding savings of approximately Rs. 3.3 Crores through measures such as shifting the corporate office and reducing warehouse sizes in Delhi and Mumbai. Three stores in DLF-Saket-Delhi, Vegas Mall-Delhi, and Hyatt Regency Pune were closed due to being non-profitable units. Total number of stores has been reduced from 25 in 2021 to 22 as of March 31st, 2022.
- The company launched its e-commerce website during the year.
Subsidiaries, Associates, and Joint Ventures
- The performance and financial position of the subsidiary, Bombay Store Retail Company Limited, is detailed in Annexure I. There were no associate or joint venture companies. Bombay Store Retail Company Limited was acquired on 25/01/2008. It had a loss after taxation of (1.63) Lakhs.
Related Party Transactions
- All contracts/arrangements/transactions with related parties were in the ordinary course of business and on an arm's length basis. There are no transactions required to be reported under section 188(1) of the Companies Act, 2013.
Share Capital & Deposits
- There was no change in the authorized or paid-up share capital. The company neither accepted any fresh deposit nor renewed any deposits during the year.
Board of Directors & Key Managerial Personnel
- Santanu Ghosh resigned as CEO of the Company with effect from 3rd April, 2021. Mrs. Manjri Chandak is liable to retire by rotation and is offering herself for re-appointment.
Board Meetings & Committees
- The Board of Directors met five times during the financial year. The Stakeholders Relationship Committee met once.
Internal Controls & Risk Management
- The company has adequate internal control procedures and a Risk Management Policy.
Director's Responsibility Statement
- The Directors confirm that the applicable accounting standards were followed, accounting policies were consistently applied, reasonable and prudent estimates were made, proper care was taken for maintaining adequate accounting records, the annual accounts were prepared on a going concern basis, and proper systems were devised to ensure compliance with all applicable laws.
Auditors
- The Auditors' Report is unmodified. M/s. Banshi Jain & Associates, Chartered Accountants, are recommended for re-appointment as Statutory Auditors for a further period of 5 years.
Other Disclosures
- The company is not required to furnish information regarding conservation of energy and technology absorption. The total foreign exchange earned during the year was Rs. 269.84 Lakhs, and no foreign exchange was expended. The company has complied with the applicable Secretarial Standards.
Notices & AGM Information
- The 116th Annual General Meeting (AGM) is to be held on Thursday, 29th September, 2022, at 11:00 a.m. IST through video conferencing (VC). Corporate members intending to send their authorized representatives to attend the Meeting through VC/OAVM pursuant to Section 113 of the Companies Act, 2013, are requested to send to the Company a certified copy of the Board Resolution authorizing their representative to attend and vote on their behalf at the Meeting. Members holding shares of the Company as on the cut-off date i.e. Thursday, 22nd September, 2022, shall be entitled to vote at the Annual General Meeting of the Company. The e-voting period will commence on Monday, 26th September, 2022 at 9.00 a.m. and ends on Wednesday, 28th September, 2022 at 5.00 p.m. The Company has appointed Mr. Himanshu S. Kamdar (Membership No.: FCS 5171), M/s. Rathi & Associates, Practicing Company Secretaries, as the Scrutinizer for conducting the scrutiny of the votes cast through remote e-voting and e-voting process at the AGM in a fair and transparent manner. Members desirous of voting through electronic mode may go through the procedure on e-voting detailed hereunder:
- Mrs. Manjri Chandak will retire by rotation. Brief profile of Director proposed to be re-appointed, nature of her expertise in specific functional areas, names of companies in which she holds directorships and memberships/ chairmanships of Board Committees, shareholding and relationships between directors inter-se, etc. as stipulated under Secretarial Standard on General Meeting ("SS-2"), is annexed to the Notice of AGM.
Standalone & Consolidated Financial Statements
- The report contains standalone and consolidated balance sheets as of March 31, 2022, statements of profit and loss for the year then ended, and cash flow statements. These statements provide detailed information on the company's assets, liabilities, equity, revenue, expenses, and cash flows. The auditor's reports on the standalone and consolidated financial statements are also included.
Auditor's Report on Internal Financial Controls
- Separate auditor's reports are provided on the internal financial controls over financial reporting for the company and its subsidiary, expressing an opinion on the adequacy and operating effectiveness of such controls.
Details in Notes to Financial Statements:
- Provides company background, capital, and information on long and short-term provisions. Details inventory and account receivable information.
- The company had several statutory compliances like income tax, service tax etc. There have been no instances of fraud noticed or reported by the Company.
- There are no secured borrowings.
- The company has disclosed the impact of pending litigations on financial position.
Other ratios and analysis are as follows:
- Current Ratio : 0.48
- Debt Equity Ratio : (14.34)
- Return of Equity : -1117.05%
The retail industry had an adverse impact due to COVID-19 and operations were impacted.
