AVTIL Enterprise Ltd.
|BSE: 504390||Sector: Financials|
|NSE: N.A.||ISIN Code: INE292N01018|
|BSE LIVE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 504390||Sector: Financials|
|NSE: N.A.||ISIN Code: INE292N01018|
|BSE LIVE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
AVTIL ENTERPRISE LIMITED
(Formerly Known as "ARUN VARUN TRADE AND INVESTMENT LIMITED")
Your Directors are pleased to present the 34th Annual Report and AuditedFinancial Statements on the business and operations of your Company for the year endedMarch 31 2016. Your Company has achieved yet another year of satisfactory performance inturnover and profitability.
THE FINANCIAL RESULTS OF THE COMPANY FOR THE FINANCIAL YEAR UNDER REVIEW ARE SUMMARIZEDBELOW:
OPERATIONS AND PERFORMANCE OF YOUR COMPANY
The turnover of your Company for the financial year under review is Rs. 190.10 Lacs asagainst Rs. 195.23 Lacs in the previous year which is a result of a backward performanceof the Company. Net Profit after Tax stood at Rs. 122.80 Lacs as against Rs. 133.80 Lacsin the previous financial year. The marginal fall in the income has resulted in fall innet profit.
CHANGE OF NAME:
Your Company has changed its name from Arun Varun Trade and Investment Limited to itspresent name AVTIL Enterprise Limited' vide Special Resolution dated: 02ndJune 2016. Your Company has obtained all the requisite approval for the said change inname from all the appropriate authorities.
Your Directors regret that the Board could not recommended any dividend for the yearended March 31 2016 in view of the cash requirement for establishing the Company in itsgrowth plan and challenging times.
TRANSFER TO RESERVE
Your Company proposes to retain Rs. 122.80Lacs in the Profit & Loss Account(Surplus).
MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT
(i) Company's Performance:
Your Company had a marginal decrease in turnover and profitability as compared toFinancial Year 2014-15. This is primarily due to the adverse market condition.
Your Company however looks forward for better performance during the current year.
(ii) Industry Structure and developments:
The on-going global depression has continued to affect the economies all around theworld as a result of which India also has suffered economically in many sectors likeSteel Cement Consumer Goods and other services. Notwithstanding the efforts of theGovernment to gear up the economy the offtake has been low resulting in lower turnoverand profits during the year under report. The huge losses provided for by the publicsector banks would be an indication of depleted economic activities in many sectors of oureconomy. The brighter side of the picture however is the increase in the foreign exchangereserves that has crossed 360 billion dollars and relative stability of the Indiancurrency.
The Stock Exchange markets witnessed lower volumes and high volatility with indexfalling considerably depriving trading opportunities and profitability.
The drought conditions that prevailed during the year under report also affected theagricultural income and the consequent output levels causing inflationary trends and as aresult the interest level in general was also not lowered by the Banks to the expectedlevels to give a boost to the industrial activities.
However during the ensuing year the monsoon is expected to be better economicactivities are likely to pick up and the global economy also might perform better whichprovides hopes for better performance.
(iii) Business Review:
Despite a general economic depression your Company did well to maintain the averagelevels of income and profitability. Your Company however looks forward for betterperformance during the current year for various reasons stated above
(iv) Opportunities and Threats:
Your Company has made satisfactory progress during the year under review. Themanagement of your Company continues to actively seek viable opportunities that will boostthe profitability and long-term financial health of the Company.
Audit Committee under of your Company consistently oversees and identifies the risk andalso suggest remedies for such risks.
With positive developments stated as above your Company anticipates the marketconditions to improve and achieve a better growth in the coming years. Your Company alwayslooks for opportunities to exploit any advantages the market would offer to improve theshareholders' wealth.
(vi) Risks Concerns and its Management:
The Company manages monitors and reports on the principal risks and uncertainties thatcan impact its ability to achieve its strategic objectives. The Company's managementsystems organizational structures processes standards codes of conduct and behaviorsthat govern how the Company conducts its business and manages associated risks.
The Audit Committee has additional oversight in the area of financial risks andcontrols. Major risks identified by the businesses and functions are systematicallyaddressed through mitigating actions on a continuing basis.
(vii) Internal Control Systems and their Adequacy:
Your Company has in place adequate interest control measures. There is continuousmonitoring of all the activities and necessary creative measures are taken periodically tomanage any unforeseen risk factors.
(viii) Material developments in human resources / industrial relations front includingnumber of people employed.
The Company provide a workplace environment that is safe hygienic humane and whichupholds the dignity of the employees. The Company creates systems and practices to ensurea harassment free workplace where employees feel safe and secure in discharging theirresponsibilities.
They are 1 persons employed with your company.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with Articles of Association of the Company and the provisions of theCompanies Act 2013 Mr. Gautam R. Bhandari (Din No.00427678) Director is liable toretire by rotation at the ensuing AGM and is eligible for reappointment.
The Board of Directors of your Company appointed Mr. Sureshkumar M. Mehta as anAdditional Non-Executive Independent Director w.e.f. September30 2015 to hold the officetill ensuing Annual General Meeting in accordance to provisions of the Companies Act2013.
Necessary resolutions for the appointment /re-appointment of the aforesaid directorshave been included in the notice convening the ensuing AGM and details of the proposal forappointment / re-appointment are mentioned in the explanatory statement of the notice.
Your directors recommend their appointment / re-appointment.
Brief resume of the Directors proposed to be appointed/ reappointed nature of theirexperience in specific functional areas disclosure of relationships between directorsinter-se;Directorship held on other Companies and number of companies in which they holdmembership/chairmanship of Board Committees as stipulated regulation 36(3) of SEBI(Listing
Obligations and Disclosure Requirements) Regulations 2015 are provided at the end ofthe explanatory statement of the notice.
The terms and conditions of appointment of Independent Director are as per Schedule IVof the Act. The Company has received declaration from the Independent Director of theCompany confirming that he meets with the criteria of independence as prescribed undersub-section (6) of Section 149 of the Companies Act 2013 and Regulation 25 of SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015. There has been nochange in the circumstances which may affect their status as Independent Director duringthe year.
DECLARATION OF INDEPENDENT DIRECTORS AND FAMILIARIZATION PROGRAMME FOR INDEPENDENTDIRECTORS
The Independent Directors have submitted their disclosures to the Board that theyfulfill all the requirements as stipulated in Section 149(6) of the Companies Act 2013 soas to qualify themselves to be appointed as Independent Directors under the provisions ofthe Companies Act 2013 and the relevant rules.
All new Independent Directors (IDs) inducted into the Board are given an orientation.Presentations are made by Executive Director (ED) and Senior Management giving an overviewof our operations to familiarize the new IDs with the Company's business operations. Thenew IDs are given an orientation on our products group structure and subsidiaries Boardconstitution and procedures matters reserved for the Board and our major risks and riskmanagement strategy.
The Policy on the Company's Familiarization Programme and Code of Conduct forIndependent Directors can be accessed at http://avtradeinvest.com/code_of_conduct.html
The Board adopted a formal mechanism for evaluating its performance and as well as thatof its Committees and individual Directors including the Chairman of the Board. Theexercise was carried out through a structured evaluation process covering various aspectsof the Board functioning such as composition of the Board & committees experience& competencies performance of specific duties & obligations contribution at themeetings and otherwise independent judgment governance issues
COMPANY'S POLICY RELATING TO DIRECTORS APPOINTMENT PAYMENT OF REMUNERATION ANDDISCHARGE OF THEIR DUTIES
The Company's Policy relating to appointment of Directors payment of Managerialremuneration Directors' qualifications positive attributes independence of Directorsand other related matters as provided under Section 178(3) of the Companies Act 2013 isprovided on Company's website at http://avtradeinvest.com/code_of_conduct.html.
DIRECTOR'S RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information andexplanations obtained by them your Directors make the following statement in terms ofSection 134(3)(c) of the Companies Act 2013;
i. In the preparation of the Annual Accounts of the Company the applicable AccountingStandards had been followed;
ii. The Directors had 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 on 31stMarch 2016 and Profit or Loss for the year ended as on that date;
iii. The Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the Company and preventing and detecting fraud and other irregularities;
iv. The Directors had prepared the Annual Accounts on a going concern basis;
v. The Directors in the case of a listed company had laid down internal financialcontrols to be followed by the company and that such internal financial controls areadequate and were operating effectively;
vi. The Directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.
INTERNAL CONTROLS SYSTEMS AND THEIR ADEQUACY
The Company has in place a proper and adequate system of internal control and the sameis being reviewed commensurate with its size and nature of operations.
The Company has entrusted the internal & operational audit to M/s. Dixit Dattatray& Associates FRN 102665Wa reputed firm of Chartered Accountants. The mainthrust of the internal audit process is test and review of controls independent appraisalrisks business processes and benchmarking internal controls with best practices.
The Audit Committee of the Board of Directors Statutory Auditors and Business Headsare periodically apprised of the internal audit findings and corrective actions taken.Audit plays a key role in providing assurance to the Board of Directors.
Statements made in this report in describing the Company's objectives projectionsestimates expectations or predictions may be "forward-looking statements"within the meaning of applicable securities laws and regulations. Forward-lookingstatements are based on certain assumptions and expectations of future events. The Companycannot guarantee that these assumptions and expectations are accurate or will be realizedby the Company. Actual results could differ materially from those expressed in thestatement or implied due to the influence of external and internal factors which arebeyond the control of the Company. The Company assumes no responsibility to publiclyamend modify or revise any forward-looking statements on the basis of any subsequentdevelopments information or events.
During the year under review your Company has not accepted any deposits within themeaning of provisions of Chapter V Acceptance of Deposits by Companies of theCompanies Act 2013 read with the Companies (Acceptance of Deposits) Rules 2014 asamended from time to time.
As per Regulation 34 (3) read with Schedule V of the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 a separate section on corporate governancepractices followed by the Company together with a certificate from the Company's Auditorsconfirming compliance forms an integral part of this Report.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information required under Section 134 of the Companies Act 2013 read with theCompanies (Accounts) Rules 2014 with regard to Conservation of Energy & Technologyabsorption is not required to be given as the same is not applicable to the Company.
MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANYOCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENTS RELATEAND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Companyoccurred between the end of the financial year to which this financial statements relateon the date of this report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALSIMPACTING THE GOING CONCERN STATUS OF THE COMPANY
There are no significant and material orders passed by the Regulators or Courts orTribunals which would impact the going concern status and the Company's future operations.
DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIALRESPONSIBILITY INITIATIVES
The Company has not developed and implemented any Corporate Social Responsibilityinitiatives as the said provisions are not applicable
PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIESACT 2013
Particulars of investments made by your Company are provided in the Audited financialstatement. (Please refer to Note 8 to the Audited Financial Statement).
Further there were no loans given guarantees and Securities providedby your Companyunder Section 186 of the Companies Act 2013 during the financial year under review.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES
There was no contract or arrangements made with related parties as defined underSection 188 of the Companies Act 2013 during the year under review. Accordingly thedisclosure of related party transactions as required under Section 134(3)(h) of theCompanies Act 2013 in Form AOC 2 is not applicable.
As required under Regulation 23 of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 the Company has formulated policy on dealing with RelatedParty Transactions. The Policy is available on the website of the Company and weblink ofthe same is:http://avtradeinvest.com/pdf/code_of_conduct/related-party-transactions-policy.pdf
PARTICULARS OF EMPLOYEES
During the period none of the employees of the Company whether employed for the wholeyear or part thereof was in receipt of remuneration aggregating to or in excess of limitsspecified under Section 197(12) of the Act read with Rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 and hence noparticulars are required to be furnished in connection with the same.
AUDITORS AND AUDITORS REPORT
M/s. BDMV & Co. Chartered Accountants (Firm Registration Number: 101256W)Statutory Auditors of the Company hold office till the conclusion of the Annual GeneralMeeting to be held for the financial year ended 31stMarch 2020 (subject to theratification of the appointment by the members at every Annual General Meeting). They haveconfirmed their eligibility to the effect that their ratification for F.Y. 2016-17 ifratified would be within the prescribed limits under the Act and that they are notdisqualified for re-appointment / ratification.
The notes to the Financial Statements referred to in the Auditors Report areself-explanatory and do not call for any further comments under Section 134 of theCompanies Act 2013.
Pursuant to the provisions of Section 204 of the Companies Act 2013 and The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hadappointed M/s. DMP & Associates Practicing Company Secretaries to undertake theSecretarial Audit of the Company for the financial year 2015-16. The Report of theSecretarial Audit Report is annexed herewith as "Annexure B".
EXPLANATION OR COMMENTS ON QUALIFICATIONS RESERVATIONS OR ADVERSE REMARKS ORDISCLAIMERS MADE BY THE PRACTICING COMPANY SECRETARY IN THEIR REPORTS
In regards to observations made on business activities of your Company we hereby statethat as per our view the business activities of your Company does not falls under thedefinition of Non-Banking Finance Company as per provisions of Reserve Bank of India Act1934.
Further in regards to constitution of Nomination & Remuneration Committee yourmanagement had taken adequate steps on expedite basis for looking out suitable candidatesto be appointed as Independent Director for compliance of the constitution of Nomination& Remuneration Committee and subsequently the management have appointed theIndependent Director and the constitution was corrected w.e.f. 30thSeptember2015.
EXTRACT OF ANNUAL RETURN
The extracts of Annual Return pursuant to the provisions of Section 92 (3) read withRule 12 of the Companies (Management and administration) Rules 2014 is furnished in "AnnexureA" and is attached to this Report.
The Board of Directors of your Company met 7 (seven) during the financial year underreview. The details of the same are under mentioned:
INDEPENDENT DIRECTORS MEETING
The Independent Directors met on February 12 2016 without the attendance ofNon-Independent Directors and members of the Management. The Independent Directorsreviewed the performance of non-independent Directors and the Board as a whole; theperformance of the Chairman of the Company taking into account the views of ExecutiveDirectors and Non-Executive Directors and assessed the quality quantity and timeliness offlow of information between the Company Management and the Board that is necessary for theBoard to effectively and reasonably perform their duties.
COMMITTEES OF BOARD
Detailsalong with their composition number of meetings and attendance at the meetingsof various committees constituted by the Board of Directors as per the Listing Agreement(to the extent applicable) and the provision of Schedule II of SEBI (Listing Obligationsand Disclosure Requirements) Regulations 2015 and Companies Act 2013 are given in theCorporate Governance Report which forms a part of this report.
The Board of Directors has the following Committees:
1. Audit Committee
2. Nomination & Remuneration and Committee
3. Stakeholders' Relationship Committee
ESTABLISHMENT OF VIGIL MECHANISM
Your Company has laid down Whistle Blower Policy covering Vigil Mechanism withprotective Clauses for the Whistle Blowers. The Whistle Blower Policy is made available onthe website of the Company at www.avtradeinvest.com
SUBSIDIARIES JOINT VENTURES AND ASSOCIATE COMPANIES
Your Company does not have any Subsidiary Joint Venture or Associate Company withinthe meaning of the Companies Act 2013 as on March 31 2016.
Your Board of Directors emphasis to oversee that all the risks that the organizationfaces such as strategic financial credit market liquidity security property legalregulatory reputational and other risks have been identified and assessed and there is anadequate risk management arrangement in place capable of addressing those risks. Furtherthe Audit Committee has additional oversight in the area of financial risks and controls.Major risks identified by the businesses and functions are systematically addressedthrough mitigating actions on continuing basis.
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
The Company has zero tolerance on Sexual Harassment at workplace. During the year underreview there were no cases filed pursuant to the Sexual Harassment of Women at Workplace(Prevention Prohibition and Redressal) Act 2013.
REMUNERATION RATIO OF THE DIRECTORS / KEY MANAGERIAL PERSONNEL (KMP) / EMPLOYEES:
The information required pursuant to Section 197 read with Rule 5 of The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 and Companies(Particulars of Employees) Rules 1975 in respect of employees of the Company andDirectors is furnished hereunder:
(A) Information pursuant to Section 197 of the Companies Act 2013 read with Rule 5(1)of The Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014:
i. The ratio of the remuneration of each Director to the median remuneration of theemployees of the Company for the financial year 2015-16 and the percentage increase inremuneration of each Director Chief Financial Officer Chief Executive Officer CompanySecretary in the financial year 2015-16:
* Mr. Sureshkumar M. Mehta appointed as Additional Director w.e.f. 30thSeptember2015
ii. The median remuneration of employees of the Company during the financial year wasRs. 75000.
iii. The percentage increase in the median remuneration of employees in the financialyear: Nil.
iv. The number of permanent employees on the rolls of Company: 1 (one) as on 31stMarch 2016.
v. The explanation on the relationship between average increase in remuneration andCompany performance: Nil.
vi. Comparison of the remuneration of the key managerial personnel against theperformance of the Company:
The total remuneration of key managerial personnel is Rs.16800 in 2015-16 whereasduring the year under review the Company registered a profit after tax of Rs. 122.80 lacsas compared to profit after tax of Rs. 133.80 lacs in the previous year.
vii. Variations in the market capitalization of the Company price earnings ratio as atthe closing date of the current financial year and previous financial year:
viii. Percentage increase over decrease in the market quotations of the shares of theCompany in comparison to the rate at which the Company came out with the last publicoffer: ix.
The Market Price of Company's share as on 31st March 2016 was Rs. 6.30/- onBSE.
The Company has not made any public offer in the recent past and accordinglycomparison of Public Offer Price and the current market price of the Company's shares arenot relevant.
x. Average percentile increase made in the salaries of employees other than themanagerial personnel in the last financial year i.e. 2015-16 was Nil.
xi. The key parameters for any variable component of remuneration availed by theDirectors: Nil
xii. The ratio of the remuneration of the highest paid Director to that of theemployees who are not Directors but receive remuneration in excess of the highest paidDirector during the year: N.A.
xiii. Affirmation that the remuneration is as per the Remuneration Policy of theCompany (As mentioned in the Corporate Governance Report.)
It is confirmed that the remuneration is as per the Remuneration Policy of the Company.
(B) The information pursuant to Section 197 of the Companies Act 2013 read with Rule5(2) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014is not applicable since during the year under review none of the employees of the Companywas in receipt of remuneration in excess of the limits specified whether employed for thewhole year or part thereof.
INSIDER TRADING REGULATIONS
Based on the requirements under the SEBI (Prohibition of Insider Trading) Regulations2015 as amended from time to time the code of conduct for prevention of insider tradingand the code for corporate disclosures ("Code") as approved by the Board fromtime to time are in force by the Company. The objective of this Code is to protect theinterest of shareholders at large to prevent misuse of any price sensitive informationand to prevent any insider trading activity by dealing in shares of the Company by itsDirectors designated employees and other employees.
The Company also adopts the concept of Trading Window Closure to prevent itsDirectors Officers designated employees and other employees from trading in thesecurities of AVTIL Enterprise Limited at the time when there is unpublished pricesensitive information
The Chief Executive Officer and Chief Financial Officer have issued a certificatepursuant to the provisions SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 certifying that the financial statements do not contain any untruestatement and these statements represent a true and fair view of the Company's affairs.The said certificate is annexed and forms part of the Annual Report.
COMPLIANCE WITH CODE OF BUSINESS CONDUCT AND ETHICS
As provided under the Listing Agreement (to the extent applicable) and SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 the Board Members and theSenior Management Personnel have confirmed compliance with the Code of Conduct for theyear ended
Your Directors acknowledge with gratitude the co-operation and assistance given by theBankers Distributors Customers Investors BSE Ltd. National Securities DepositoryLtd. Central Depository Services (India) Ltd. and R & T Agent during the year underreview and are confident that your Company will continue to receive such support in theyears ahead. The Directors also wish to thank all the employees for their contributionhigh degree of commitment support and continued co-operation throughout the year.