Adinath Bio-Labs Ltd.
|BSE: 590088||Sector: Others|
|NSE: N.A.||ISIN Code: INE129D01039|
|BSE LIVE 15:48 | 07 Mar||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
Adinath Bio-Labs Ltd. (ADINATHBIOLABS) - Director Report
Company director report
TO THE SHAREHOLDERS
Your Directors are pleased to present the 35th (Thirtieth Fiftieth)Annual Report together with the Audited Statement of Accounts and the Auditors Report ofyour company for the year ended 31st March 2016.
The Financial highlights for the year under review are given below:
Total Revenue of your Company is Rs. 9971773 /- in Financial Year 2015-16 compared toRs. 14231913/- during Financial Year 2014-15. The Net Profit generated by the Companyduring the year under review is Rs. 1437143 /- as compared to the previous year Rs.1650017/-.
The Company has been continuously focussing on its existing line of business to improveits profitability in near future.
Dividend and Transfer to Reserve:
Due to requirement of funds for the existing business activities your directors do notpropose to declare any dividend for the financial year 2015-2016. Hence there has been notransfer to Reserves during the financial year 2015-2016.
Change in the Nature of Business:
There is no change in the nature of business of the company during the year underreview.
The Company has not accepted any deposits from public and as such no amount on accountof principal or interest on deposits from public was outstanding as on the date of theBalance sheet.
Compliance with the Accounting Standards:
The Company prepares its accounts and other financial statements in accordance with therelevant accounting principles and also complies with the accounting standards issued byThe Institute of Chartered Accountants of India.
Directors and Key Managerial Personnel:
Pursuant to the provisions of Section 149 of the Companies Act 2013 Mr. JyotiraadityaSingha Mr. Manoj Kumar Bothra Mrs. Sharmila Ranabhat as Non Executive IndependentDirectors of the Company. Mrs. Chanderkala Devi Lakhotia is being act as Non ExecutiveDirector.
Mr. Mahesh Purohit Member of the Institute of Company Secretaries of India has beenappointed as Company Secretary cum Compliance Officer of the Company w.e.f. August 8 2016pursuant to Section 203 and other applicable provisions of the Companies Act 2013 inplace of Mr. Rohit Namchand Banthia Company Secretary cum Compliance Officer of theCompany who has resigned due to his pre-occupation w.e.f. April 25 2016.
In accordance with Companies Act 2013 Mrs. Chanderkala Devi Lakhotia retires byrotation and being eligible for reappointment of Director.
During the year the Non-executive Director of the company had no pecuniaryrelationship or transaction with company other than the sitting fees for the purpose ofattending meetings of the Company.
The Notice convening the Annual General Meeting includes the proposals for appointment/ re-appointment of the Directors. Brief resumes of the Directors proposed to be appointed/ re-appointed have been provided as an Annexure to the Notice convening the AnnualGeneral Meeting.
Policy on Directors Appointment and Remuneration:
The Companys policy on Directors appointment and remuneration includingcriteria for determining qualifications positive attributes independence of a Directorand other matters provided under sub-section (3) of Section 178 has been disclosed in theCorporate Governance Report which forms the part of the Directors Report.
Remuneration of the Kev Managerial Personnel:
Mr. Abhishek Kumar Jain (Whole Time Director) has received the remuneration of Rs.420000/- during financial year 2015-2016.
Disclosure under Section 197(12) of the Companies Act 2013:
The Company has not employed any employees whose remuneration falls within the purviewof the limits prescribed under the provisions of Section 197 of the Companies Act 2013read with Rule 5(1) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014.
Directors Responsibility Statement:
Pursuant to Section 134(5) of the Companies Act 2013 the board of Directors to thebest of their knowledge and ability confirm that:
(i) in the preparation of the annual accounts for the year ended 31st March2016 the applicable accounting standards have been followed and there are no materialdepartures if any;
(ii) the directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year 31stMarch 2016 and of the profits of the company for the year ended on that date;
(iii) the directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the company and for preventing and detecting fraud and other irregularities;
(iv) the annual accounts have been prepared on a going concern basis;
(v) the directors have laid down internal financial controls to be followed by thecompany and such internal financial controls are adequate and operating effectively;
(vi) the directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.
Declaration of Independent Directors:
All the Independent Directors have given declaration that each of them meets thecriteria of independence as provided in Section 149(6) of the Companies Act 2013 and therelevant rules aligned with Listing Regulation 16 of SEBI (Listing Obligations andDisclosure Requirements) Regulation 2015 so as to qualify themselves to be appointed asIndependent Directors. There has been no change in the circumstances which may affecttheir status as Non-Executive Independent Director during the year.
Transfer of Unclaimed Dividend to Investor Education And Protection Fund:
Your Company was transferred an amount of Rs. 376521.58/-. in separate Unclaimed /Unpaid Dividend Account for the Financial Year ended 31st March 2009 & 31stMarch 2010 respectively out of which the unclaimed dividend for the Financial Year 31stMarch 2009 amounting of Rs. 120816.94/- will be due to transferred to InvestorEducation and Protection Fund established by the Central Government in the terms ofCompanies Act 2013.
The Unclaimed Dividends on equity shares paid in October 2009 will be due for transferto the fund in November 2016 investors who have not yet claimed these dividends arerequested to contact either the Companys Secretarial Department or the R&TAgent.
The Board has well-qualified Audit Committee with majority of Independent Directorsincluding Chairman. They possess sound knowledge on Accounts Audit Finance TaxationInternal Controls etc. The details of the Composition of the Audit Committee are given inthe Corporate Governance Report. The details pertaining composition of Audit Committee areincluded in the Corporate Governance Report.
The Company Secretary of the Company acts as Secretary of the Committee.
During the year there are no instances where the Board had not accepted therecommendations of the Audit Committee.
Nomination and Remuneration Committee and Policy:
The Company has duly constituted Nomination and Remuneration Committee to align withthe requirements prescribed Listing Regulation 19 of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 read with Section 178 of the Companies Act2013.
The details of the Composition of the Nomination and Remuneration Committee are givenin the Corporate Governance Report. The Board has framed a policy for selection andappointment of Directors Senior Management and their Remuneration. The policy providesfor determining qualifications positive attributes and independence of a Director.
Statement concerning development and Implementation of Risk Management Policy of theCompany:
The Board of the Company has formed a Risk Management Committee to frame implement andmonitor risk management plan for the company. The Committee is responsible for reviewingthe risk management and ensuing its effectiveness. The Audit Committee has additionaloversight in the area of financial risks control. Major risk identified by the businessand function are systematically addressed through mitigating actions on a continuingbasis.
Number of Meeting of the Board:
During the year 6 (six) Board Meetings were convened and held the details of which aregiven in the Corporate Governance Report.
Extract of Annual Return:
Pursuant to the provisions of Section 134 (3) (a) of the Companies Act 2013 Extractof the Annual Return for the financial year ended 31st March 2016 made underthe provisions of Section 92 (3) of the Act in Form MGT-9 is annexed herewith as "AnnexureA".
Pursuant to the provisions of the Companies Act 2013 and Listing Regulation of theSEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 the Board hascarried out an Annual Performance evaluation of its own performance the Directorsindividually as well as the evaluation of the working of its various Committees.
A separate exercise was carried out to evaluate the performance of individual Directorsincluding the Chairman of the Board who were evaluated on parameters such as level ofengagement and contribution independence of judgment safeguarding the interest of theCompany and its minority shareholders etc.
The performance evaluation of the Independent Directors was carried out by the entireBoard excluding the Directors being evaluated.
The performance evaluation of the Chairman and Non-Independent Directors was carriedout by the Independent Directors at their separate Meeting.
Vigil Mechanism / Whistle Blower Policy:
In line with the best Corporate Governance practices Company has put in place a systemthrough which the Directors and Employees may report concerns about unethical behavioractual or suspected fraud or violation of the Company's Code of Conduct & Ethicswithout fear of reprisal. The Employees and Directors may report to the Compliance Officerand have direct access to the Chairman of the Audit Committee.
In pursuant to the provisions of Section 177(9) & (10) of the Companies Act 2013and Listing Regulation a Vigil Mechanism for directors and employees to report genuineconcerns has been established.
Particulars of Loans Guarantees or Investments made under Section 186 of the CompaniesAct 2013:
The Company has complied with the provisions of Section186 of the Companies Act 2013in respect of investments made in earlier years and given long term loans and advances toother parties during the year under review outstanding at the year- end except that suchadvances are given interest free details of which are given in the Financial Statements.
Particulars of Contracts or Arrangements made with Related Parties:
There were no contracts or arrangements made with related parties as defined underSection 188 of the Companies Act 2013 during the year under review and hence enclosingof Form AOC-2 is not required.
The Company has developed a Related Party Transactions Policy for the purpose ofidentification and monitoring of such type of transactions.
Subsidiaries Joint Ventures and Associate Companies:
The Company does not have any Subsidiary Joint Venture or Associate Company.
Internal Control Systems & Their Adequacy:
The Company has an Internal Control System commensurate with the size scale andcomplexity of its operations. Based on the report of Internal Audit function correctiveaction are undertaken in the respective areas and thereby strengthen the controls.Significant audit observations and corrective actions thereon are presented to the AuditCommittee of the Board.
During the year under review no material or serious observation has been received fromthe Internal Auditors of the Company for inefficiency or inadequacy of such controls.
A separate report on Corporate Governance in terms of Regulation 34(3) read with clauseC of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 along with certificate from M/s. Mohindra Arora & Co. Statutory Auditorsregarding compliance with the conditions of Corporate Governance is given in a separatesection and forms part of the Annual Report.
Management Discussion and Analysis Report:
The Management Discussion and Analysis Report and Report on Corporate Governance asrequired under the Listing Regulations forms part of the Annual Report.
Material Changes and Commitments If any affecting the financial position of theCompany which have occurred between the end of the financial year of the Company to whichthe financial statements relate and the date of the report:
No material changes and commitments affecting the financial position of the Companyoccurred between the ends of the financial year to which this financial statement relateon the date of this report.
Conservation of energy technology absorption foreign exchange earnings and outgo:
The statement of particulars under Section 134(3)(m) of the Companies Act 2013 readwith Rule 8(3) of the Companies (Accounts) 2014 regarding conservation of energytechnology absorption and Foreign exchange earnings and outgo are given below:
Your Company has not consumed energy of any significant level. Accordingly no measureswere taken for energy conservation and no investment is required to be for reduction ofenergy consumption.
i. Your Company has not consumed energy of any significant level. Accordingly nomeasures were taken for energy conservation and no investment is required to be forreduction of energy consumption.
ii. No comment is made on technology absorption considering the nature of activitiesundertaken by your Company during the year under review.
iii. No Expenditure has been made for research and development during the year underreview.
iv. There were no Foreign Exchange earnings or out go during the year under review.
Auditors & Auditors Observations:
The matters related to Auditors and their Reports are as under:
1. Statutory Auditor and their Report:
Pursuant to the provisions of Section 139 of the Companies Act 2013 and the rulesframed thereunder M/s. Mohindra Arora & Co. Chartered Accountants (Registration No.:00655IN) were appointed as statutory auditors of the Company from the conclusion of the33rd Annual General Meeting (AGM) of the Company held on 25thAugust 2014 till the conclusion of the 38th Annual General Meeting to be heldin the year 2018 subject to ratification of their appointment at every Annual GeneralMeeting.
Members are requested to consider the re-appointment.
The Board recommends the re-appointment of M/s. Mohindra Arora & Co. CharteredAccountants (Registration No.: 00655IN) as the Statutory Auditors of the Company for theFinancial year 2016-2017.
Explanation or Comments on Qualifications Reservations or Adverse Remarks orDisclaimers made by the Auditors in their Reports:
The Report given by the Statutory Auditors for the Financial Statements for the yearended 31stMarch 2016 read with explanatory notes thereon do not call for anyexplanation or comments from the Board under Section 134(3) of the Companies Act 2013.There were no qualifications reservations or adverse remarks in the AuditorsReport.
2. Secretarial Auditor & his Report:
M/s. Vineet Pal & Associates Practicing Company Secretary was appointed to conductSecretarial Audit of the Company for the financial year 2015-16 as required under Section204 of the Companies Act 2013 and the Rules thereunder. The Secretarial Audit report forthe financial year 2015-16 forms part of the annual report as "Annexure B" tothe Boards Report.
Reply to the observations in the Secretarial Audit Report:
- The Company will be shortly appointing the Chief Financial Officer.
3. Internal Auditor:
The Board has appointed M/s S. R. Ghedia & Associates Chartered Accountants asInternal Auditors of the Company for Financial Year 2015-2016 under provisions of Section138 of the Companies Act 2013 read with Rule 13 of the Companies (Accounts) Rules 2014as recommended by Audit Committee.
Details of significant and material orders passed by the regulators or courts ortribunals impacting the going concern status and company's operations in future:
There are no significant and material orders issued against the Company by anyregulating authority or court or tribunal affecting the going concern status andCompanys operation in future. Hence disclosure pursuant to Rule 8 (5) (vii) ofCompanies (Accounts) Rules 2014 is not required.
The Company strongly believes that the growth of the organization can be sustainedthrough the continuous development of its people who contribute to the business success.Today the Company is proud of its performance driven team. It is the strategy of theleadership team and the execution skills of our people that will take the organization togreater heights.
Today HR has become a critical catalyst for continuous transformation during a phase ofrapid growth and transition from a midsized Company to a large corporation in line withthe Company's vision. The Company continues to maintain excellent industrial relationwhile ensuring development of its human resources through appropriated training andfurther educational programs.
Listing of Shares:
The Equity Shares of your Company are listed with The Calcutta Stock Exchange Ltd. andare also traded under permitted category at BSE Limited. Listing fees has already beenpaid in pursuance to Regulation 14 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015.
The authorized Share capital and the paid up Equity Share Capital have remainedunchanged during the year under review. The Company has not issued any shares withdifferential rights as to dividend voting or otherwise or convertible debentures.
The Company has not bought back any of its securities during the year underreview.
The Company has not issued any Sweat Equity Shares during the year under review.
No Bonus Shares were issued during the year under review.
The Company has not provided any Stock Option Scheme to the employees.
Details of Policy developed and implemented by the Company on its Corporate SocialResponsibility initiatives:
Since the Company does not qualify any of the criteria as laid down in Section 135(1)of the Companies Act 2013 with regard to Corporate Social Responsibility provisions ofSection 135 are not applicable to the Company.
Additional Information to Shareholders:
All important and pertinent investor information such as financial results investorpresentations press releases new launches and project updates are made available on theCompanys Website: www.adinathbio.com on aregular basis.
Code of Conduct:
As prescribed under Listing Regulation a declaration signed by the Whole Time Directoraffirming compliance with the Code of Conduct by the Directors and Senior ManagementPersonnel of the Company for the financial year 2015-16 forms part of the CorporateGovernance Report.
Disclosure under The Sexual Harassment of Women at Workplace (Prevention. Prohibitionand Redressal) Act. 2013:
The Company has in place an Anti Sexual Harassment Policy in line with the requirementsof The Sexual Harassment of Women at the Workplace (Prevention Prohibition &Redressal) Act 2013.
Internal Complaints Committee (ICC) has been set up to redress complaints receivedregarding sexual harassment. All employees (permanent contractual temporary trainees)are covered under this policy.
The following is a summary of sexual harassment complaints received and disposed offduring the year 2015-16.
No of complaints received: Nil
No of complaints disposed off: Nil
The Directors wish to place on record their appreciation for the contributions made bythe employees at all levels whose continued commitment and dedication helped the Companyto achieve better results. The Directors also wish to thank customers bankers Centraland State Governments for their continued support. Finally your directors would like toexpress their sincere & whole-hearted gratitude to all of you for your faith in usyour Co-operation & never failing support.