Inox Leasing and Finance Limited Unlisted Shares

Annual Report Summary

INOX LEASING AND FINANCE LIMITED - ANNUAL REPORT 2020-2021 Summary:

Corporate Information:

• The company's board of directors includes D.K. Jain (Chairman), P.K. Jain (Managing Director), V.K. Jain (Director), Siddharth Jain (Director), and Devansh Jain (Director).
• The audit committee consists of P.K. Jain, V.K. Jain, and Siddharth Jain. Key managerial personnel include P.K. Jain (Managing Director) and Vijay Saxena (Company Secretary).
• The 26th Annual General Meeting was scheduled for September 30, 2021, at 10:00 a.m. at Ceejay House, Worli, Mumbai.
• The company's CIN is U65910MH1995PLC085703, and its website is www.ilfl.co.in.

Notice of the 26th Annual General Meeting:

• The AGM included ordinary business such as adopting the audited standalone and consolidated financial statements for the year ended March 31, 2021, ratifying the interim dividend paid, and appointing a director in place of Mr. Devansh Jain, who retires by rotation.
• Special business included re-appointing Shri Pavan Kumar Jain as Managing Director for one year commencing October 1, 2021, on NIL remuneration.
• The notice outlines procedures for attending and voting at the meeting, including proxy appointments, e-voting (through CDSL platform), and physical attendance (using ballot papers for those who haven't voted remotely).
• The register of members and share transfer books will be closed from September 23, 2021, to September 30, 2021.
• Unclaimed dividends are transferred to the Investor Education and Protection Fund (IEPF) as required by the Companies Act, 2013. The company had transferred shares for which dividend had remained unpaid for seven consecutive years.
• Members are requested to submit their PAN details to avoid higher tax deduction at source (TDS).
• Instructions for e-voting are provided.

Board's Report:

• Financial Results (Standalone & Consolidated): Consolidated results show a net loss of (86,338.98) lacs for 2020-21 compared to a loss of (4,345.60) lacs the previous year. Standalone results show a profit of 447.08 lacs for 2020-21, compared to profit of 2338.07 lacs in 2019-20.
• The Board did not recommend any final dividend for the financial year 2020-21. The total dividend payout for the financial year 2020-21 is Rs. 999.35 lacs.
• Unpaid dividends aggregating Rs. 13.54 Lakhs were credited to the Investor Education and Protection Fund (IEPF). 6800 equity shares were also transferred to the IEPF Authority.
• Rs. 100.00 lacs was transferred to Statutory Reserve and Rs. 20.00 lacs to General Reserves.
• Directors recommended the re-appointment of Mr. Devansh Jain and Shri Pavan Kumar Jain as Managing Director.
• Five Board meetings were held during the year.
• The company had not entered into any material contracts with related parties. Details of loans given, investments made, and guarantees given are provided in the Standalone Financial Statement.
• The company has adequate internal controls commensurate with its size and nature of its business.
• There were no reservations, qualifications, or adverse remarks in the Independent Auditor's Report.
• There was no employee drawing remuneration in excess of the prescribed limits.
• The Company has a CSR committee. The CSR Policy of the Company is disclosed on the website of the Company. The report on CSR activities is annexed to the Report.
• The Company has in place a mechanism to inform the Board about risk assessment and minimisation procedures.
• There are no material changes and commitments affecting the financial position of the Company.
• There are no orders passed by regulators or courts impacting the going concern status.
• There is no change in the nature of the business.
• The annual return of the Company for FY 2020-21 is available on the Company's website.
• The Auditors for the company are M/s S.C. Bandi & Co.

Demerger of Renewable Energy Business:

• The Hon'ble National Company Law Tribunal, Ahmedabad Bench, approved a Composite Scheme of Arrangement involving GFL Limited, Inox Renewables Limited, and Inox Wind Energy Limited.

Subsidiary Companies and Financial Information:

• The report contains consolidated financial statements and includes highlights of performance and financial positions of subsidiaries, associates, and joint venture companies. AOC-1 reports are annexed.
• AOC 1 contains details of subsidiary companies' share capital, reserves and surplus, total assets, total liabilities, investments, turnover, profit/loss before and after taxation, proposed dividend and % of shareholding. Data includes Inox Infrastructure limited, shouri properties limited etc.

Auditor's Report (Standalone):

• The auditor's report provides an opinion on the standalone financial statements, stating that they give a true and fair view in conformity with accounting standards.
• The audit was conducted in accordance with Standards on Auditing (SAs).
• The report states that there are no key audit matters to be communicated.
• The directors are responsible for the preparation of the financial statements and maintenance of adequate accounting records.
• The auditor's responsibilities include expressing an opinion on the financial statements and evaluating the internal financial controls.
• The report also includes a statement on other legal and regulatory requirements, including compliance with the Companies (Auditor's Report) Order, 2016.

Auditor's Report (Internal Financial Controls):

• The report expresses an opinion on the company's internal financial controls over financial reporting, stating that they were adequate and operating effectively.

Annexures to the Auditor's Report:

• Annexure A provides a statement on matters specified in the Companies (Auditor's Report) Order, 2016. It covers aspects such as fixed assets, stock verification, loans granted, deposits accepted, statutory dues, and fraud reporting.
• Annexure B provides information on internal financial controls.

Standalone Financial Statements:

• The report contains a standalone balance sheet, a statement of profit and loss, a statement of cash flows, and notes to the financial statements. These cover the company's assets, liabilities, equity, revenue, expenses, and cash flows for the financial year.

Standalone Financial Statements - Key Data:

• Assets: Cash and cash equivalents: ₹27.71 Lakhs; Other financial assets: ₹4945.66 Lakhs; Total Assets: ₹17221.91 Lakhs
• Liabilities: Total Liabilities: ₹118.26 Lakhs
• Equity: Equity share capital: ₹999.35 Lakhs; Other equity: ₹16015.93 Lakhs; Total Equity: ₹17015.28 Lakhs
• Revenue: Revenue from operations ₹821.81 Lakhs
• Net Profit: ₹447.08 Lakhs

Consolidated Financial Statements:

• The report includes consolidated financial statements, encompassing the Inox Leasing and Finance Limited, its subsidiaries and their associates as a group.

Consolidated Financial Statements - Key Data:

• Assets: Total Assets: ₹1,559,330.95 Lakhs
• Liabilities: Total Liabilities: ₹753,431.26 Lakhs
• Equity: Equity attributable to Owners of the Company: ₹300,367.81 Lakhs; Non Controlling Interests: ₹345,394.71 Lakhs

**Key highlights on subsidiaries and associates/JV companies. **

• Inox Wind Infrastructure Services Limited, Wind One Renergy Private Limited are listed as key subsidiaries with structured financial arrangements/transactions.
• Swarnim Gujarat Fluorspar is a key associated entity with key terms detailed within.