--~~~------------------------~--·-~--·-~-~--~-~-~_t_~__u_~_~_6e_~_ · ~--~--·- ~ MUMBAI OFFICE : 30-39. 3RD FLOOR. FREE PRESS HOUSE. FREE PRESS JOURNAL MARG. 215. NARIMAN POINT. MUMBAI- 400 021 (INDIA) TEL. : +91 (022) 6754 6500 FAX: +91 (022) 6610 0594 E-MAIL : [email protected] WEBSITE : www.akgroup.co.in To, BSE limited The listing Department/Corporate Relationship Department Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001 Reference : BSE Code 530499 Dear Madam/Sir, Subject Submission of Annual Report of the Company under Regulation 34 of SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015 Pursuant to the Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed Annual Report of A. K. Capital Services Limited for the Financial Year 2017-18. Kindly take the same in your records and oblige. Thanking you. Yours faithfully, F~a ' ervices Limited Tejas Da eta Company Secretary & Compliance Officer (ACS No.: A27660) Date: October 1, 2018 Place: Mumbai Encl.: As above ~EGISTERED OFFICE :403. 4TH FLOOR. EAST WING. TULSIANI CHAMBERS. FREE PRESS JOURNAL MARG. 212. NARIMAN POINT. MUMBAI - 400021 :::IN L74899MH1993PLC274881 I TEL · +91 (022) 6634 9300 I FAX · +91 (022) 6610 0594 I E-MAIL : okmumboiCokgroup.co.ln TH 251993 - 2018 ANN 18 UAL REPORT 2017-20 A. K. CAPITAL SERVICES LTD. B U I L D I N G B O N D S CONTENTS Corporate Information 1 A. K. CAPTIAL SERVICES LIMITED Directors Report 2 Management Discussion and Analysis Report 29 Corporate Governance Report 34 STANDALONE FINANCIAL STATEMENT Independent Auditors Report 53 Financial Statements 56 CONSOLIDATED FINANCIAL STATEMENT Independent Auditors Report 75 Financial Statements 78 A. K. Capital Services Limited CORPORATE INFORMATION BOARD OF DIRECTORS Mr. Subhash Chandra Bhargava Mr. Subhash Chander Madan Non-Executive Chairman, Independent Director Independent Director (DIN: 00785025) (DIN: 00020021) Mr. A. K. Mittal Mr. Raghubinder Rai Managing Director Independent Director (DIN: 00698377) (DIN: 00851994) Ms. Aditi Mittal Mr. Khimji Shamji Pandav (Appointed w.e.f. February 3, 2018) (Appointed w.e.f. August 11, 2018) Non-Executive Director Independent Director (DIN: 00698397) (DIN: 01070944) Mr. Ashish Agarwal Mr. Deepak Mittal (Appointed w.e.f. February 3, 2018) (Resigned w.e.f. February 3, 2018) Whole-time Director Whole-time Director (DIN: 08064196) (DIN: 00043685) Mr. Vikas Jain Mrs. Anshu (Appointed w.e.f. February 3, 2018) (Resigned w.e.f. April 12, 2018) Whole-time Director Non-Executive Director (DIN: 07887754) (DIN: 01227279) CHIEF FINANCIAL OFFICER (CFO) Mr. Mahesh Bhootra COMPANY SECRETARY (CS) Mr. Tejas Dawda (ACS No.: A27660) STATUTORY AUDITORS M/s. PYS & Co. LLP Chartered Accountants, [Firm Registration No.: 012388S/S200048] BANKERS Bank of India Andhra Bank HDFC Bank Limited Bank of Maharashtra The Federal Bank Limited Union Bank of India Punjab National Bank AU Small Finance Bank Limited Syndicate Bank REGISTRAR AND SHARE TRANSFER AGENT Link Intime India Private Limited C-101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai - 400 083 Tel: +91-22-49186270 | Fax: +91-22-49186060 | E-mail: [email protected] | Website: www.linkintime.co.in CORPORATE IDENTIFICATION NUMBER L74899MH1993PLC274881 REGISTERED OFFICE 403, 4th Floor, East Wing, Tulsiani Chambers, Free Press Journal Marg, 212, Nariman Point, Mumbai 400021 Tel: +91-22-66349300 | Website: www.akgroup.co.in CORPORATE OFFICE 30-39, 3rd Floor, Free Press House, Free Press Journal Marg, 215 Nariman Point, Mumbai 400 021 Tel: +91-22-67546500 | Fax: +91-22-66100594 | Website: www.akgroup.co.in Corporate Information | 01 A. K. Capital Services Limited DIRECTORS' REPORT To, The Members of A. K. Capital Services Limited (Company), The Directors of your Company are pleased to present the 25th Annual Report of the Company, together with the annual audited standalone and consolidated nancial statements for the Financial Year ended March 31, 2018. FINANCIAL HIGHLIGHTS A summary of the nancial performance of the Company, both on standalone and consolidated basis, for the Financial Year 2017-18 as compared to the previous Financial Year is given below: Standalone nancial highlights of the Company (INR in Crore except per share data) Particulars 2017-18 2016-17 Total revenue 108.29 96.27 Total expenses 76.18 60.04 Prot before tax 32.11 36.23 Tax expenses 10.53 11.86 Prot after tax 21.58 24.37 Add: Surplus brought forward from previous year 258.15 233.78 Prot available for appropriation 279.73 258.15 Less: Appropriations Dividend paid 3.96 - Dividend distribution tax on dividend 0.81 - Surplus carried to the balance sheet 274.96 258.15 Earnings per equity share (face value INR 10/- per share) Basic (INR) 32.69 36.93 Diluted (INR) 32.69 36.93 Consolidated nancial highlights of the Company (INR in Crore except per share data) Particulars 2017-18 2016-17 Total revenue 331.76 338.94 Total expenses 239.09 249.72 Prot before tax 92.67 89.22 Tax expenses 30.82 31.40 Prot after tax and before minority interest 61.85 57.82 Less: Share of minority interest 0.51 0.39 Prot for the year 61.34 57.43 Add: Surplus brought forward from previous year 356.67 305.53 Less: Transfer of Pre-acquisition prot - 0.07 Amount of prot available for appropriation 418.01 362.89 Less: Appropriations Transfer to special reserves 8.00 6.22 Dividend paid 3.96 - Dividend distribution tax 0.81 - Surplus carried to the Balance Sheet 405.24 356.67 Earnings per equity share (face value INR 10/- per share) Basic (INR) 92.93 87.01 Diluted (INR) 92.93 87.01 FINANCIAL PERFORMANCE AND STATE OF AFFAIRS OF THE COMPANY On standalone basis, your Company earned total revenue of INR 108.29 Crores during the year under review as against INR 96.27 Crores reported in the previous year. The prot before tax is INR 32.11 Crores as against the INR 36.23 Crores during the previous year. After making provision for tax, the net prot of your Company is INR 21.58 Crores as against the net prot of INR 24.37 Crores in the previous year. The consolidated total revenue of your Company stood at INR 331.76 Crores for the nancial year ended March 31, 2018 as against INR 338.94 Crores for the previous year. The consolidated prot before tax is INR 92.67 Crores for the current year as against INR 89.22 Crores in the previous year. After making provision for tax, the consolidated net prot of your Company is INR 61.85 Crores as against INR 57.82 Crores in the previous year. DIVIDEND Your Company is rewarding its shareholders by way of consecutive cash dividends, considering the consistent nancial performance of your Company and promising future prospects while retaining capital to maintain a healthy capital and to support future growth. The Board, at its Meeting held on May 26, 2018, has recommended a nal dividend @ 60% i.e. INR 6/- per equity share (on the face value of INR 10/- per equity share) on 6,600,000 equity shares for the Financial Year 2017-18. The amount of dividend on equity shares and tax thereon aggregates to INR 4.77 Crore. 02 | Directors Report Annual Report 2017-2018 The payment of the nal dividend is subject to the approval of the members at the ensuing Annual General Meeting (AGM) and shall be paid to those members whose names appear in the Register of Members as on Friday, August 10, 2018. The Register of Members and Share Transfer Books will remain closed from Saturday, August 11, 2018 to Saturday, August 18, 2018 (both days inclusive). The Annual General Meeting of the Company is scheduled to be held on Saturday, September 22, 2018. TRANSFER TO GENERAL RESERVES During the year under review, the Company has not transferred any amount to the General Reserves. SUBSIDIARIES As on March 31, 2018, your Company has the following subsidiaries: SN Name of the subsidiaries 1. A. K. Stockmart Private Limited 2. A. K. Capital Corporation Private Limited 3. A. K. Wealth Management Private Limited 4. A. K. Capital (Singapore) Pte. Ltd. 5. A. K. Capital Finance Private Limited 6. Family Home Finance Private Limited (Step-down subsidiary) - with effect from June 29, 2017. During the year under review, A. K. Capital Finance Private Limited (AKCFPL), material subsidiary of the Company has issued and allotted 22,700 Secured, Rated, Listed, Redeemable Non-Convertible Debentures (said debentures) of face value of INR 1 lakh each aggregating to INR 227 Crores, on private placement basis. The said debentures are listed on BSE Limited. Further net worth of AKCFPL exceeded INR 500 Crores during the half year ended September 30, 2017 which qualies it as a Qualied Institutional Buyer under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. During the year under review, AKCFPL also incorporated its subsidiary Company in the name of Family Home Finance Private Limited MATERIAL SUBSIDIARIES Regulation 16(1)(c)of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 denes material subsidiary as a subsidiary whose income or net worth exceeds 20% of the consolidated income or net worth respectively, of the listed holding company and its subsidiaries at the end of the immediately preceding accounting year. Based on the above criteria the Company has two material subsidiaries namely, A. K. Capital Finance Private Limited & A. K. Stockmart Private Limited. The Policy for determining the material subsidiaries has been formulated and adopted by the Board. The Policy may be accessed on the website at link: http://www.akgroup.co.in/docs/Policy%20on%20Determining%20Material%20Subsidiary-201804091508067873523.pdf NOTE ON FINANCIAL STATEMENTS OF SUBSIDIARIES AND CONSOLIDATED FINANCIAL STATEMENTS The Consolidated Financial Statements has been prepared under the historical cost convention on accrual basis and in accordance with the Generally Accepted Accounting Principles (GAAP) in compliance with the provisions of the Companies Act, 2013 (the Act) including the Accounting Standards specied under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and forms part of this Annual Report.