Annual Report: 2024
Okay, here is a comprehensive summary of the KLM Axiva Finvest Limited Annual Report for 2023-24, based on the provided PDF, adhering to the given instructions:
Corporate Overview KLM Axiva Finvest Limited, incorporated on April 28, 1997, is a public limited company registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC). The company offers a suite of financial products, including gold loans, mortgage loans, loans against securities, and microfinance loans. The registered office is located in Hyderabad, Telangana, and the corporate office is in Ernakulam, Kerala.
Annual General Meeting (AGM) The 27th AGM will be held on Monday, September 30th, 2024, via video conferencing. Ordinary business includes adopting the audited financial statements for the year ended March 31, 2024, appointing a director retiring by rotation, and appointing statutory auditors with a 3-year term. A special resolution for the reappointment of Mr. Abraham Thariyan as an Independent Director for a second 3-year term will also be considered. Remote e-voting is available to members through NSDL, with detailed instructions provided in the notice.
Board of Directors and Key Management Personnel The board consists of six directors, including three independent directors. Key personnel include Mr. Manoj Raveendran Nair (CEO), Mr. Thanish Dalee (CFO), and Ms. Naveena P. Thampi (Company Secretary & Compliance Officer). The report includes details of directors seeking appointment or re-appointment including Mr. Abraham Thariyan and Mr. T.P. Sreenivasan including their qualifications, experience, remuneration, and meeting attendance.
Financial Performance (Standalone) The company achieved increased profitability, with net profit increasing from ₹1,833.10 lakhs in FY 2022-23 to ₹2,302.87 lakhs in FY 2023-24. Interest income increased from ₹27,540.07 lakhs to ₹30,562.49 lakhs. Total revenue increased from ₹27,874.98 lakhs to ₹31,592.32 lakhs. Revenues from gold loans constituted 69.81% of total income in FY 2023-24 and 64.60% in FY 2022-23. As of March 31, 2024, gold loans represented 62.03% of the total loan book.
Dividend and Reserves An interim dividend of ₹0.30 per share (3%) was declared for FY 2022-23. An interim dividend of ₹0.50 per share (5%) was declared for FY 2023-24. The board decided to reinvest the remaining profit after tax and has not proposed any final dividend for the upcoming 27th Annual General Meeting. The company transferred 20% of its net profit, ₹460.57 lakhs, to the statutory reserve.
Share Capital The authorized share capital stood at ₹2,50,00,00,000. The company approved and allotted bonus shares in the ratio of 1:10. The paid-up share capital increased from ₹1,86,72,80,780 to ₹2,05,40,08,570 due to the bonus issue.
Resource Mobilization The company raised ₹86,78,38,000 through a public issue of Secured Redeemable Non-Convertible Debentures (NCDs). As of March 31, 2024, the total principal amount of NCDs issued through public issue outstanding was ₹6,73,97,02,000. The company also allotted Secured, Unrated, Unlisted Non-Convertible Debentures through private placement. Raised ₹1,094.6 lakhs through private placement of Perpetual Debt Instruments (PDIs).
Regulatory Compliance and RBI Inspection The company is registered as an NBFC with the RBI. An onsite supervisory inspection by the RBI in early 2023 identified some irregularities. The company has submitted replies and clarifications and is currently working towards full compliance with corrective measures advised by the RBI. The RBI also advised the company to refrain from further balance sheet expansion until the corrective measures are implemented. The company has informed RBI about the implementation of the corrective measures.
Capital Adequacy and Asset Quality As of March 31, 2024, the Capital to Risk Assets Ratio (CRAR) stood at 23.62%, exceeding the regulatory minimum of 15%. Tier I capital was 15.61% and Tier II capital was 8.01%. The net owned fund (NOF) as of March 31, 2024 was ₹29,452.20 lakhs. The gross NPA and net NPA are reported and the levels of compliance with various norms are reported.
Fair Practices Code The company has framed Fair Practices Code as per RBI guidelines, which is disclosed on the company website.
Corporate Governance The report includes details on the composition and category of directors, board meetings, committee composition, and related information as required by listing regulations. There is a Code of Conduct for Board of Directors and Senior Management. The company has a whistle blower policy.
Directors' Responsibility Statement The directors affirm that applicable accounting standards have been followed, proper care has been taken for maintaining accounting records, the annual accounts have been prepared on a going concern basis, internal financial controls are adequate and operating effectively, and proper systems are in place for compliance with all applicable laws.
Auditors M/s. R. B. Jain & Associates were the statutory auditors, completing their 3-year term. M/s. A. John Moris & Co are proposed as statutory auditors for a 3 year term. The board has Nekkanti S. R. V. V. S. Narayana & Co. as Secretarial Auditors. The report details observations by the secretarial auditors, along with the Board's responses.
Subsequent Events Subsequent events include the declaration of an interim dividend, changes in independent director tenures, and a bonus issue approval.
Risk Management The Company is engaged in the business of financial services and the Board is periodically informed about business risks and mitigation efforts. The Board constituted a Risk Management Committee for reviewing the systems used to manage risk, viz., credit risk, operational risk, liquidity risk, and governance risk, interest rate risk etc.
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