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Kanak Krishi Implements Ltd.

BSE: 780003 Sector: Others
NSE: N.A. ISIN Code: INE013Q01011
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Kanak Krishi Implements Ltd. (KANAKKRISHI) - Director Report

Company director report

TO THE MEMBERS

Your Directors have great pleasure in presenting the 6th Annual Reporttogether with the Audited Accounts of the Company for the year ended at 31stMarch 2016.

FINANCIAL RESULTS

The summarized performance of the Company for the years 2015-16 and 2014-15 is givenbelow:

(Rupees)

For Financial Year Ended

Particulars 31st March 2016 31st March 2015
Total Income 16184624.00 13211632.00
Total Expenditure 15075134.19 12652197.57
Profit before Tax 1109489.81 559434.43
Less: Tax Expense (342833.00) (172864.00)
Profit / (Loss) After Tax 766656.81 386570.43
Profit/(Loss) adjusted - -
Profit/(Loss) carried to Balance Sheet 766656.81 386570.43

RESULTS OF OPERATIONS

Operating in a volatile and uncertain environment the Company demonstrated theresilience of its business model. The Company delivers robust profits in the financialyear 2015-16. The highlights of the Company's performance are as mentioned above.

RESERVES AND SURPLUS

To Plough back the profits into the business Rs. 766656.81/- is being transferred tothe Reserve and surplus of the company.

DIVIDEND

The Directors have not recommended any dividend for the financial year 2015-16 in viewof the requirement of funds for expansion of the business.

DIRECTORS

During the year under review there was no change in the Board of directors.

STATE OF COMPANY AFFIARS

The Company is complying with all the applicable laws and provisions and there is noadverse action against the business operations of the Company.

CHANGE IN THE NATURE OF BUSINESS

During the year the Company has not changed its nature of business.

STATUTORY AUDITOR AND HIS REPORT

The company has received the intimation from the present auditor M/s Ravi Bhushan &Co. showing their inability to act as the Statutory Auditor of the Company. The Board hasreceived the consent of M/ s Rakesh Batra & Co. to act as the Statutory Auditor of theCompany accordingly the matter is placed for approval by the Shareholders.

In this regard the Company has received a Certificate from the them to the effect thatif they are appointed it would be in accordance with the provision of section 141 of theCompanies Act 2013.

The Report given by the Statutory Auditors for the Financial Statements for the yearended March 31 2016 read with explanatory notes thereon do not call for any explanationor comments from the Board under Section 134(3) of the Companies Act 2013.

AUDITORS' REPORT

The Notes on Financial Statements referred to in the Auditors' Report areself-explanatory and therefore in the opinion of the Directors do not call for furthercomments.

INDUSTRIAL RELATIONS

During the year under review your Company enjoyed cordial relationship with workersand employees at all levels.

DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THEFINANCIAL STATEMENTS

The Company has a formal system of internal control testing which examines both thedesign effectiveness and operational effectiveness to ensure reliability of financial andoperational information and all statutory / regulatory compliances. The Company has astrong monitoring and reporting process resulting in financial discipline andaccountability.

PUBLIC DEPOSITS

The Company has not accepted deposit from the public falling within the ambit ofSection 73 of the Companies Act 2013 and The Companies (Acceptance of Deposits) Rules2014. No amount of principal or interest was outstanding as on the date of Balance Sheet.

NAME OF THE COMPANIES WHICH HAVE BEEN BECOME OR CEASED TO BE ITS SUBSIDIARIES ANDASSOCIATE

The Company has no subsidiaries as on 31st March 2016 hence provision of section 129of the Companies Act 2013 is not applicable.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNING AND OUTGO

The provisions of Section 217 (1) (e) of the Companies Act 1956 read with Companies(Disclosure of Particulars in the Report of Board of Directors) Rules 1988 are notapplicable to the Company. Therefore the information relating to conservation of energyor technology absorption etc. is not given. There has been no foreign exchange earningsand outgo during the year under Report.

CONSOLIDATED FINANCIAL STATEMENTS

Since there is no subsidiary of the Company at present hence no consolidated financialstatements have been prepared.

MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY

No material changes and commitments affecting the Financial Position of the Companywhich have occurred between the end of the Financial year of the Company to which theFinancial Statement relate and the date of this report.

DIRECTORS RESPONSIBILITY STATEMENT

As required by Section 134 (3) (c) of the Companies Act 2013 your Board of Directorshereby state:

a. in the preparation of the annual accounts for the financial year ended on 31stMarch 2016 the applicable accounting standards had been followed along with properexplanation relating to material departures;

b. 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 and ofthe profit and loss of the company for that period;

c. 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 for preventing and detecting fraud and other irregularities;

d. the directors had prepared the annual accounts on a going concern basis;

e. the directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively; and

f. the directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

INDEPENDENT DIRECTORS' MEETING

During the year under review the Independent Directors met on 14thNovember 2015 inter aha to discuss:

• Evaluation of the performance of Non-independent Directors and the Board ofDirectors as a whole.

• Evaluation of the performance of the chairman of the Company taking intoaccount the views of the Executive and Non-executive directors.

• Evaluation of the quahty content and limelines of flow of information betweenthe Management and the Board that is necessary for the Board to effectively and reasonablyperform its duties.

• All the Independent Directors were present at the Meeting.

CORPORATE SOCIAL RESPONSIBILITY 1CSR1

Provisions of section 135 of the Companies Act 2013 dealing with constitution ofCorporate Social Responsibility Committee and related matters are not applicable to yourCompany.

FAMILIARIZATION PROGRAMME

The Company at its various meetings held during the Financial year 2015 -16 hadfamiliarize the Independent Directors with regard to the roles rights responsibilitiesin the Company nature of the industry in which the Company operates the Business modelsof the Company etc. The Independent Directors have been provided with necessary documentsreports and internal policies to familiarize then with the Company's policies proceduresand practices.

Periodic presentations are made to the Board and Board Committee meeting on Businessand performance updates of the Company Business strategy and risks involved.

Quarterly updates on relevant statutory changes and judicial pronouncements andencompassing important amendments are briefed to the Directors.

CHANGES IN THE KEY MANAGERIAL PERSONNEL

During the year under Review there was no change in the Key Managerial Personnel.

DECLARATION BY AN INDEPENDENT DIRECTORS! AND RE- APPOINTMENT IF ANY

All Independent Directors have given declaration that they meet the criteria ofindependence as laid down under Section 149(6) of the Companies Act and ListingAgreement.

DISCLOSURES RELATED TO BOARD COMMITTEES AND POLICIES

a) Board Meetings

During the year 6 (Six) Board Meetings were convened and held. The intervening gapbetween the Meetings was within the period prescribed under the Companies Act 2013.

b) Board Evaluation

Pursuant to the provisions of the Companies Act 2013 the Board has carried out anAnnual Performance evaluation of its own performance the Directors individually as wellas the evaluation of the working of its various Committees. A separate exercise wascarried out to evaluate the performance of individual Directors including the Chairman ofthe Board who were evaluated on parameters such as level of engagement and contributionindependence of judgment safeguarding the interest of the Company and its minorityshareholders etc. The performance evaluation of the Independent Directors was carried outby the entire Board excluding the Directors being evaluated.

c) Audit Committee

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 Company Secretary of the Company acts as Secretary of theCommittee. During the year there are no instances where the Board had not accepted therecommendations of the Audit Committee.

COMPOSITION AND ATTENDANCE AT MEETINGS:

During the year ended on 31st March 2016 the composition of Audit Committee has beenas under:

Name of Director Designation Category No. of Meeting Attended
Shyam Saini Chairman Independent Director 4
Love Kumar Member Independent Director 4
Satyendra Kumar Member Non Executive & Non-Independent Director 4

d) Nomination & Remuneration Committee & Its Policy

The Company has duly constituted Nomination and Remuneration Committee to align withthe requirements prescribed under the provisions of the Companies Act 2013.

COMPOSITION AND ATTENDANCE AT MEETINGS:

During the year ended on 31st March 2016 the composition of Nomination &Remuneration Committee has been as under:

Name of Director Designation Category No. Of Meeting Attended
Love Kumar Chairman Independent Director 4
Shyam Saini Member Independent Director 4
Sheetal Member Non Executive & Non-Independent Director 4

During the financial year 2015-16 one (1) meeting of Nomination & RemunerationCommittee was held. COMPOSITION AND ATTENDANCE AT MEETINGS:

During the year ended on 31st March 2016 the composition of Stakeholder RelationshipCommittee has been as under:

Name of Director Designation Category No. Of Meeting Attended
Love Kumar Chairman Independent Director 4
Shyam Saini Member Independent Director 4
Sheetal Member Non Executive & Non-Independent Director 4

During the financial year 2015-16 Four (4) meeting of Stakeholder RelationshipCommittee was held.

RISK MANAGEMENT

The Company has laid down the procedures to inform to the Board about the riskassessment and minimization procedures and the Board has formulated Risk management policyto ensure that the Board its Audit Committee and its Executive Management shouldcollectively identify the risks impacting the Company's business and document theirprocess of risk identification risk minimization risk optimization as a part of a riskmanagement policy/ strategy.

The common risks inter alia are: Regulations Credit Risk Foreign Exchange andInterest Risk Competition Business Risk Technology Obsolescence Investments Retentionof Talent and Expansion of Facilities etc. Business risk inter- alia further includesfinancial risk political risk legal risk etc. The Board reviews the risk trendexposure and potential impact analysis and prepares risk mitigation plans if necessary.

SECRETARIAL AUDIT REPORT AND EXPLANATION TO THE QUALIFICATIONS REPORTED IN THE REPORT

Provisions relating to Secretarial Audit as per Section 204 read with Rule 9 of TheCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 the Companyhas appointed Ms. Neelam Bansal Proprietor of M/ s. Neelam Bansal & AssociatesPracticing Company Secretary to undertake the Secretarial audit of the Company. TheSecretarial Auditor Report provided By the Secretarial Auditor in Form No. MR-3 has beenenclosed as Annexur.

With reference to the qualifications we wish to explain that the Company is searchingthe best person for the post of Company Secretary and Chief Financial Officer.

PARTICULARS OF EMPLOYEES AND OTHER DISCLOSURE

The prescribed particulars of Employees required under Section 197(12) of the CompaniesAct 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 is given below:

DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12) OF THE COMPANIESACT 2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIALPERSONNEL) RULES 2014

Sr. No. Name of Director/KMP and Designation Remuneration of Director/ KMP for FY 2015-16 (Rs. In Lakhs) % increase in Remuneration in FY 2015-16** Ratio of Remuneration of Director to Median Remuneration of employees Ratio of Remuneration of Director to Median Remuneration of Employees
1. Mr. Satyendra Kumar Whole Time Director NIL N.A. N.A. N.A.

PERSONNEL

The Management-Employees relations remained very cordial throughout the year. YourDirectors wish to place on record their appreciation of sincere and devoted servicesrendered by all the workers and staff at all levels.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

As per the provision of Section 177 (9) of the Companies Act 2013 the Company isrequired to establish an effective Vigil Mechanism for Directors and Employees to reportgenuine concerns. In line with this the Company has framed a Vigil Mechanism Policythrough 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 Officer and have direct accessto the Chairman of the Audit Committee. The Whistle Blower Policy is placed on the websiteof the Company.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMAN 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 Woman at Workplace (Prevention Prohibition and Redressal)Act 2013. All women employees (permanent contractual temporary and trainee) are coveredunder this Policy.

The following is a summary of Sexual Harassment complaints received and disposed offduring the year:

a. No. of Complaints received: 0

b. No. of Complaints disposed off: 0

RELATED PARTY TRANSACTIONS

There are no related party transactions in the year under Report.

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS

During the year under review the Company has not given any loans and guarantees.Details of Investments covered under the provisions of Section 186 of the Companies Act2013 are given in the Notes to the Financial Statements.

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 under theprovisions of Section 92 (3) of the Act in Form MGT -9 is annexed herewith as Aimexure.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

No Significant and Material orders has been passed by Securities Exchange Board ofIndia Stock Exchanges Tribunal or Courts in the year under Report.

HUMAN RESOURCES INDUSTRIAL RELATIONS

The takes pride in the commitment competence and dedication shown by its employees inall areas of Business. The Company is committed to nurturing enhancing and retaining toptalent through superior Learning and Organizational Development. This is a part ofCorporate HR function and is a critical pillar to support the Organization's growth andits sustainability in the long run.

CAUTIONARY STATEMENT

Statements in this Directors Report describing the Company's objectives projectionsestimates expectations or predictions may be "forward looking statements"within the meaning of applicable securities law and regulations. Actual results coulddefer materially from those expressed or implied. Important factors that could makedifference to the Company's operations include changes in Government regulations Taxregimes Economic developments within India and the countries in which the Companyconducts Business and other ancillary factors.

AKNOWLEDGEMENT

Your Directors would like to express their appreciation for the assistance andco-operation received from the cooperative banks Government Authorities customersvendors and members during the year under review. Your Directors also wish to place onrecord their deep sense of appreciation for the committed services by the Company'sexecutive's Staff.

For and on behalf of board of
Dated: 30.07.2016 Kanak Krishi Implements Limited
Place: Vaishali Sd/
Satyendra Kumar
Whole Time Director
DIN No: 06794868
Address : 422 Block 25
Trilok Puri Delhi 110091
Sd/
Shyam Saini
Director
DIN No: 06461564
Address : 1st Floor 210 Phool Singh Market Karkardooma
Opp Saini Bus Stand New Delhi
110092