FDC Ltd. - AGM Information 2020 | FinancialReports.eu

VARSHAR Digitally signed by VARSHARANI KATRE ANI KATRE Date: 2020.09.09 12:18:20 +05'30'

2 THE SMART INVESTOR ~~>~~

MUMBAI | WEDNESDAY, 9 SEPTEMBER 2020 1

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Opaque financials of banks pose a bigger challenge for investors

Whilecorporateloansshallberestructured,retailandSMEloansareatlenders’discretion

HAMSINI KARTHIK Mumbai,8September EFFECTIVENESS OF LOAN tionsbenefitofonlythe tocustomer,one loanmay— possiblyextendthatthe RESTRUCTURING with higher outstanding. or the first time in over a decade, LoansrestructuredfromFY13toFY20(%) “Evenwithmoratorium,suchpractices analystsbrushedasidetheheadline n PSUBanks n PrivateBanks were followed; with restructuring, they F numbers posted by banks for the may increase,” says an analyst with a forJune quarter. Instead, they pushed inves- 75.0 67.0 eign brokerage. These practices are worth torstolookforfinerdetails,suchascheque 61.0 highlighting because while banks may bounce rates, loan book covered by the reveal fewer restructured loans, the bormoratorium, and the cross-section of cusrower’s overall loan repayment ability is tomers opting for the benefit. As regula- 43.7 under pressure and that may never be tionsforrestructuringcomeoutandbanks revealed to their stakeholders, including having limited time until December 31, equity investors. A note by SBICap 2020, to implement the same, the growing 28.3 Securitiesindicatesthat50percentof~9.8 consensus is that September quarter 25.0 trillionofSMEloansand15percentof~28.2 results,too,maynotholdmuchrelevance. 20.0 17.7 trillionretailloanswereundermoratorium SureshGanapathyofMacquarieCapital and30-50percentoftheseloansarelikely strongly feels that loan restructuring will to be restructured. At 10 per cent provionly increase the opacity of financials and sioning,~36,000-croreprovisioningcostis balancesheetsofbanksmaynotreflectthe waitingtohitbanksbyDecember31,2020, truenatureoftheirbooksinthenearterm. Corporate Others Corporate Others or over half the capital raised by private Krishnan A S V of SBICap Securities Writeoffs & downgrades Accounts upgraded banks, so far. With various restructuring urgesinvestorstoaskbanksfordetailsthat Others: SME + retail loans Source: Nomura tools available until FY23, true balance are otherwise not be public information. sheet position of banks may not be known “Ourlearningsfromthetwopreviouslargeforawhile.Notsurprisinglythen,investors scale restructuring exercises suggest that gered disruption, are likely to be restrucSample a case where a borrower may have been cautious with banking stocks. investors are better-off ignoring the headtured. Of the lot, unknown territories are havetakentwoloans—anautoloananda The Nifty Bank index has lagged the line restructured portfolio and focusing retail(homeloans,autoloans,andpersonal home loan — from two different banks. Nifty50 index since March lows, as well as insteadongreaterdisclosurestoassessthe loans)andSME(smallandmediumenterWhilethebankthathaslentthehomeloan in the recent past. On Tuesday, while the truesenseoftheborrowers’abilitytorepay. prise) loans. may restructure the exposure, but the Nifty50 was down 0.33 per cent, the Nifty Investors should encourage banks to disWhile there are coded norms and elabother, which has extended the auto loan, Bankwasdown0.87percent.TheRBIhad close parameters, such as nature of lendoratefinancialratioteststopassforrestrucmay deny a similar benefit. Thus, the borannounced the restructuring norms on ing, nature of the collateral, and the depth turing of corporate loans, the applicability rower whose earning capacity is stretched Monday evening. of banking relationship,” he emphasises. for restructuring retail loans is at the diswould be a standard account for one bank AnalystsatBofASecuritiessayasbanks There’sastrongreasonforbothanalysts cretion of banks. In other words, restrucand a restructured account for the other. restructure loans under the Covid shock, harpingonapossibleopacityinfinancials turing corporate loans may be a more colTakeanothercasewhereaborrowerhas it will add to uncertainty in the short run. of banks: Loans worth ~4-5 trillion (corpolective, uniform and disciplined exercise, availed two loans from a bank. One bank For investors, this means staying cautious rate,SMEandretailloansincluded),which whereasretailandSMEloansmaybeprone mayrestructurebothloans,whileanother, on the sector, even if banks put out stunare affected following the Covid-19-trigto subjectivity. based on some internal cash flow projecning quarterly results.

Oilgluttradeonbrinkofareturn;Brentcrudebelow$40

BLOOMBERG & REUTERS 7.47 pm IST. BRENT CRUDE $/BBL goes now, stash them on ships, way to hoard barrels — on paper 8September The combination of a stalling and sell them later at a profit. at least. Asian demand recovery, the end Suchadevelopmentwouldbe An oil trade that only works of the US summer driving seaviewed with concern by the likes Gold falls sharply when the market is glutted may son, and increased supply from of Saudi Arabia and Russia, the Gold prices fell sharply on be about to make a comeback. the Opec+ alliance are signaling two nations who led the deepest Tuesday as a strong dollar outThat’s bad news for producers ableakshort-termoutlookforoil global oil production cuts in hisweighedlingeringeconomicconwithholding near-record prices. The global Brent crude tory.Inrecentmonths,theyhave cerns and investors awaited polamounts of crude in a coordibenchmark is currently trading been carefully trying to boost icy cues from the European nated bid to help prop up prices. quite deeply in a bearish pattern supply to bring it slowly back Central Bank. Crude futures in London, on knowncontango,wherethemost Until 19:47 hrs IST toward normal. The contango Spot gold was down 0.55 per Tuesday, fell below $40 a barrel immediate prices are far below implies that the market is so centat$1,918.49perounceat7.47 for the first time since June 25. those for contracts for supply in cover the nominal cost of hiring oversupplied that one of the pm IST, after falling as much as 1 Brentcrudewastradingat$39.73 later months. The discount has 1,200-ft long supertankers. In industry’s most expensive forms percentto$1,907.61. InMumbai, per barrel, down 5.43 per cent at gotten so big that it appears to otherwords:Traderscanbuycarof storage is becoming a viable standard gold settled at ~50,870.

Small-capfunds:Invest for at least seven years Giventheirhighvolatility,conservativeinvestors mustlimitexposureto5-10%ofequityportfolio SANJAY KUMAR SINGH PLAYING CATCH-UP

SANJAY KUMAR SINGH

SANJAY KUMAR SINGH		PLAYING CATCH-UP
Two developments have taken place within the small-cap space. One, these funds have, on average, run up 22.8 per cent over the past three months, outperforming their mid- (15.5 per cent) and large-cap (10 per cent) peers. Two, SBI Mutual Fund has announced that its Small Cap Fund will only accept money via the systematic investment plan (SIP) route, and not lump-sum invest- ments. This has led to speculation that the category may have become overheated.		Large-cap Mid-cap Small-cap Small-capsarerecoveringlost groundaftertwoyearsofsevere underperformance Categoryaveragereturn(%)
		2016 3.1 3.9 5.8
		2017 30.7 42.3 49.9
		2018 -1.7 -11.5 -17.2
		2019 11.8 3.0 -1.5
		2020 YTD -6.1 1.9 6.1
		Source:mutualfundindia.com

that the category may have become Source: mutualfundindia.com overheated. Valuations not exorbitant yet: stocks that meet his investment critThe market rally since March has eria. been driven by liquidity, which has According to Belapurkar, lifted all boats, including smallrestricting flows is a positive step caps. “During 2018 and 2019, smallthat shows the fund house is not caps were beaten down more draskeen just to gather assets under tically than large-caps. After the management, but wants to keep the March downturn, their valuations existing strategy intact and protect were very attractive. Hence, when the interests of existing investors. money started flowing in, some part A volatile category: These went into small-caps,” says Arun funds have the ability to give higher Kumar, head of research, returns than large-caps. “If a stock FundsIndia. He believes small-caps in this category manages to grow in can rally further if ecosize, business risks reduce nomic recovery materiand analyst expectations alises and earnings rise, leading to price-toimprove. earnings rerating,” says This space is not overGautam Kalia, head–investheated yet. “We have not ment solutions, Sharekhan reached the overheated valby BNP Paribas. uations of 2017, if you go by However, the category is the price-to-book value. inherently risky. The SmallCap index has not “These funds invest in even touched its previous small-cap companies whose peak of January 2018,” says ability to borrow money and Kumar. handleshocksisnotasmuchaslarge- Restricting inflows a positive caps,” says Kumar. Adds Kalia: step: The closure of SBI Small Cap “These companies could carry Fund to lump-sum investments key-man risk and corporate governdoes not signal that valuations have ance risks.” become overheated, as was the case Exercise caution: New inveswhen fund houses took similar tors who wish to enter this category action in 2017. because of its recent performance “The fund manager may be findshould ask themselves two quesing it difficult to manage fund size tions. “One, do they have an investwhile sticking to his mandate,” says ment horizon of 7-10 years? Two, do Kaustubh Belapurkar, directorthey have the risk appetite to stay manager research, Morningstar invested even if their fund sees Investment Adviser India. The drawdown of 50-60 per cent?” asks small-cap space suffers from capacBelapurkar. ity constraints. Conservative investors should In SBI Small Cap Fund’s case, the restrict allocation to these funds to fund manager may not have been 5-10 per cent, while the aggressive comfortable adding to his positions ones should not allocate beyond 15in existing stocks, or he may be find20 per cent of their equity portfolio. ing it difficult to come up with more Take the SIP route. YOUR MONEY

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FDC LIMITED

CIN: L24239MH1940PLC00176 Registered Office: - B-8, M.I.D.C. Industrial Area, Waluj - 431 136 , Dist. Aurangabad Maharashtra. Tel: 022-26739100. Website: www.fdcindia.com

NOTICE OF THE 80[TH] ANNUAL GENERAL MEETING – REMOTE E-VOING INFORMATION AND BOOK CLOSURE

Notice is hereby given that the 80[th] (Eightieth) Annual General Meeting (“AGM”) of the Members of FDC Limited (“the Company”) is scheduled to be held on Wednesday, September 30, 2020 at 10.00 a.m.(IST) through Video Conferencing (“VC”) / Other Audio Visual Means (“OAVM”) to transact the businesses as set out in the Notice of the AGM.

In view of the ongoing COVID-19 pandemic, the Ministry of Corporate Affairs has issued General Circulars dated April 8, 2020, April 13, 2020 and May 5, 2020 (collectively referred to as “MCA Circulars”) and Circular dated May 12, 2020 issued by the Securities and Exchange Board of India (“SEBI Circular”), permits holding of AGM through VC or OAVM, without the physical presence of the Shareholders at a common venue. In compliance with the provisions of the Companies Act, 2013 (“the Act”), the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), MCA Circulars and SEBI Circular, the forthcoming 80[th] (Eightieth) AGM of the Company will be held through VC / OAVM. Shareholders attending the AGM through VC / OAVM shall be counted for the purpose of reckoning the quorum under Section 103 of the Act. The Notice of AGM together with the Explanatory Statement thereto under Section 102 of the Companies Act, 2013 alongwith the Audited Financial Statements, Board’s Report and the Statutory Auditors’ Report thereon for the financial year ended March 31, 2020 have been sent electronically to those Members whose e-mail IDs are registered with Company / Depository Participant(s) / Registrar and Share Transfer Agent. The dispatch of Notice of AGM has been completed on Tuesday, September 08, 2020. In line with the MCA Circulars and SEBI Circular, Shareholders are advised to register / update their Email IDs with the Depository Participants, in order to receive electronic copies of the Annual Report / login credentials, since no physical copies of the Annual Report will be dispatched to any Shareholder this year. BOOK CLOSURE Notice is also hereby given pursuant to Section 91 of the Companies Act, 2013 and Regulation 42 of the Listing Regulations, that the Register of Shareholders and Share Transfer Books of the Company will remain closed for the purpose of the 80[th] (Eightieth) AGM from Thursday, September 24, 2020 to Wednesday, September 30, 2020 (both days inclusive). VOTING THROUGH ELECTRONIC MODE:

Members are hereby informed that in compliance with the provisions of Section 108 of the Companies Act, 2013, read with Rule 20 of the Companies (Management and Administration) Rules, 2014 [including any modification(s), amendment(s) or re-enactment(s) thereof, for the time being in force], Regulation 44 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), Secretarial Standard - 2 (SS-2) on General Meetings issued by the Institute of Company Secretaries of India, MCA Circulars and SEBI Circular, the Company is providing its Members, the facility to exercise their right to vote on the resolutions proposed to be passed at the AGM by electronic means on all the business to be transacted as set forth in the AGM Notice, through the remote e-voting facility (“remote e-voting”) provided by National Securities Depositories Limited (“NSDL”). The Company is also providing e-voting facility (“e-voting”) at the AGM to be held through VC/OAVM facility and the Shareholders who have not already cast their vote by remote e-voting shall be able to exercise their right to vote during the AGM, through e-voting. The Company has appointed Mr. Sanjay Dholakia (Membership No. F 2655), of M/s. Sanjay Dholakia and Associates, Practicing Company Secretary ( CP No. 1798) as the Scrutinizers to scrutinize the remote e-voting and e-voting process, in a fair and transparent manner. The instructions for remote e-voting and e-voting are given in the Notice of the AGM. Shareholders are requested to note the following: a. The remote e-voting will commence on Sunday, September 27, 2020 (at 9.00 a.m. IST) and end on Tuesday, September 29, 2020 (at 5.00 p.m. IST).The remote e-voting module shall be disabled by NSDL for voting thereafter and Shareholders will not be allowed to vote electronically beyond the said date and time. During this period, Shareholders of the Company holding shares in dematerialized form, as on the cut-off date, i.e. Tuesday, September 22, 2020 may cast their vote by remote e-voting on the resolutions specified in the Notice of the AGM. Shareholders who have cast their vote by remote e-voting prior to the AGM may also attend the AGM to be held through VC / OAVM, but they shall not be entitled to cast their vote again. Once the vote on a resolution is cast by the Shareholder, they shall not be allowed to change it subsequently. b. The voting rights of the Shareholders (for voting through remote e-voting or e-voting at the AGM) shall be in proportion to their share in the Paid-up Equity Share Capital of the Company as on the Cut-off Date, i.e., Tuesday, September 22, 2020. A person whose name is recorded in the Register of Beneficial Owners maintained by the Depositories / Registrar and Share Transfer Agent as on the Cut-off Date only shall be entitled to avail the facility of remote e-voting as well as e-voting at the AGM. c. Any person who acquires Shares of the Company and becomes a Shareholder of the Company after the dispatch of the AGM Notice and holds shares as on the Cut-off Date, may obtain the login details by sending an email at [email protected]. A person who is not a Shareholder as on the Cut-off Date should treat the Notice of AGM for information purposes only. d. The manner of ‘remote e-voting’ and ‘e-voting’ during the AGM, for Shareholders holding shares in dematerialized mode and for Shareholders who have not registered their e-mail addresses is provided in detail in the Notice of the AGM.

A copy of the AGM Notice alongwith Annual Report for the Financial Year 2019-2020 is available on the website of the Company at www.fdcindia.com and on the website of the stock exchanges i.e, BSE Limited at www.bseindia. com and National Stock Exchange of India Limited-www.nseindia.com, where the shares of the Company are listed. A copy of the AGM Notice is also available on the website of NSDL at www.evotng.nsdl.com. The results of the remote e-voting and votes cast at the AGM shall be declared not later than 48 (Forty-Eight) hours from the conclusion of the AGM. The Results declared, along with the Scrutinizer’s Report, shall be placed on the Company’s website, viz., www.fdcindia.com immediately after their declaration, and will be communicated to NSDL, viz., www.evotng.nsdl.com and stock exchanges i.e, BSE Limited at www.bseindia.com and National Stock Exchange of India Limited - www.nseindia.com

In case you have any queries or issues regarding remote e-voting and e-voting, you may refer the Frequently Asked Questions (“FAQs”) and e-voting manual available at www.evotng.nsdl.com under help section or write an email to [email protected] or contact Mr. Amit Vishal, Senior Manager - NSDL at [email protected] or call on +91 22 24994360. Shareholders who would like to express their views or ask questions may ask the same by sending request from their registered email address mentioning their name, DP ID and Client ID/folio number, PAN, mobile number alongwith their queries to [email protected] from Monday, September 14, 2020 (9:00 a.m. IST) to Friday, September 25, 2020 (5:00 p.m. IST). This advertisement shall also be available on Company’s website at www.fdcindia.com and on the website of BSE Limited at www.bseindia.com and National Stock Exchange of India Limited-www.nseindia.com. By Order of Board of Directors For FDC Limited Sd/Date: September 8, 2020 Varsharani Katre Place: Mumbai Company Secretary and Compliance Officer

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AI assistant

FDC Ltd. AGM Information 2020

60812_rns_2020-09-09_f568e400-9a44-4e8d-b1e1-e14a98cfe1bc.pdf

Opaque financials of banks pose a bigger challenge for investors

Oilgluttradeonbrinkofareturn;Brentcrudebelow$40

Small-capfunds:Invest for at least seven years Giventheirhighvolatility,conservativeinvestors mustlimitexposureto5-10%ofequityportfolio SANJAY KUMAR SINGH PLAYING CATCH-UP

FDC LIMITED

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AI assistant

FDC Ltd. — AGM Information 2020

60812_rns_2020-09-09_f568e400-9a44-4e8d-b1e1-e14a98cfe1bc.pdf

Opaque financials of banks pose a bigger challenge for investors

Oilgluttradeonbrinkofareturn;Brentcrudebelow$40

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