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Advik Laboratories Ltd.

BSE: 531686 Sector: Health care
NSE: N.A. ISIN Code: INE537C01019
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Advik Laboratories Ltd. (ADVIKLABS) - Director Report

Company director report

Dear Members

Your Directors are delighted to present the 25th Annual Report of yourCompany together with the Audited Annual Accounts for the financial year ended 31stMarch 2019.

1. Financial Results:

The Financial Performance of your Company for the year ended March 31 2019 issummarized below

(Amount in Lacs)

Particulars For the year ended
31.03.2019 31.03.2018
Revenue from operations 84.50 415.27
Profit/(Loss) before Depreciation & Income Tax (70.51) (46.87)
Less: Depreciation 58.79 58.82
Profit/(Loss) after depreciation (129.30) (105.69)
Less: Provision for Income Tax/Deferred Tax (4.69) (19.14)
Profit/(Loss) After Taxation (124.60) (86.55)
Other Comprehensive Income 1.31 1.61
Total Comprehensive Income for the period carried over to Reserve & Surplus a/c (123.29) (84.94)

2. Dividend:

In view of losses incurred by the Company your Directors regret their inability torecommended dividend on equity shares for the year under review.

3. Reserves:

In view of insufficiency of profits no amount is proposed to be transferred toReserves for the year under review.

4. Brief description of the Company’s working during the year:

Due to absence of orders there were nil production activities in the company plantduring the year under review with the reason company turnover drastically down ascompared to last year and suffered loss of Rs. 129.30 Lacs The Board hopes to recover inthe next financial year as company is in touch of some prominent customers who buys thegoods on third party manufacturing and job work basis & export on their own. Companyis also looking for exploring South African market where our products are well-established.

5. Change in the nature of business if any:

During the year there is no change in the nature of business activity of the company.

6. Material changes and commitments if any affecting the financial position of thecompany which has occurred between the end of the financial year of the company to whichthe financial statements relate and the date of the report:

During the period between the end of the financial year of the company and the date ofthe report there are no material changes and commitments which affect the financialposition of the company. However after the year under review your Company has received aOne Time Settlement (OTS) Sanction Letter from Indian Overseas Bank (IOB) to settle itsoutstanding loan of Rs. 12.50 Crores obtained from IOB as per the terms and conditions ofthe said OTS at Rs. 8.30 Crores. The Board therefore in its meeting held on 23rdAugust 2019 has decided to sell the pharmaceutical Manufacturing Unit of the Companylocated at 138 Roz-ka-Meo Industrial Area Sohna Dist. Mewat Haryana 122103 in orderto discharge the obligations of the Company under the said OTS and to clear theoutstanding loan of the Company with IOB.

The net proceeds from the sale of the Undertaking will be utilized to repay theexisting loans and reduce interest burden and enhancement of working capital of theCompany or general business purpose. The sale of the said Undertaking will not have anyimpact on the Company’s trading business which it may start in the near future.

Necessary approval of shareholders of the Company for sale of Undertaking of theCompany under Section 180(1)(a) of the Companies Act 2013 has been sought in the enclosedNotice calling the 25th Annual General Meeting forming part of this AnnualReport.

7. Details of significant and material orders passed by the Regulators or Courts orTribunals impacting the going concern status and company’s operations in future:

During the year there are no significant and material orders passed by the Regulatorsor Courts or Tribunals which impact the going concern status and company’s operationsin future.

8. Details in respect of adequacy of internal financial controls with reference to theFinancial Statements:

The Board has adopted policies and procedure for ensuring the orderly and efficientconduct of its business including adherence to the company’s policies thesafeguarding of its asset the prevention and detection of fraud and error the accuracyand completeness of the accounting records and the timely preparation of reliablefinancial disclosure.

9. Details of Subsidiary/Joint Ventures/Associate Companies:

The Company has no Subsidiary. During the year no company has become or ceased assubsidiary/Joint-venture/Associate of the company.

10 . Performance and financial position of each of the subsidiaries associates andjoint venture companies included in the consolidated financial statement:

During the year no consolidated financial statements have been prepared by the companyas the Company has no subsidiary company.

11. Pubic Deposits:

Your Company has not accepted any deposits from public within the meaning of Section 73of the Companies Act 2013 read with Companies (Acceptance of Deposits) Rules 2014during the year under review. The details relating to deposits covered under Chapter V ofthe Act is as under-

a) accepted during the year Rs Nil
b) remained unpaid or unclaimed as at the end of the year Rs Nil
c) whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so number of such cases and the total amount involved N.A. since the company has not accepted any deposits.
i. at the beginning of the year Rs Nil
ii maximum during the year Rs Nil
iii. at the end of the year Rs Nil

12. Auditors:

A. Statutory Auditors:

M/s. RMA & Associates LLP Chartered Accountants New Delhi the Statutory Auditorsof the Company (Registration No. 000978N/500062) had been appointed by the shareholdersin the 19TH AGM held on 27.09.2013 from the conclusion of the said AGM till theconclusion of the 20TH AGM as per the provisions of the erstwhile CompaniesAct 1956. Thereafter they were again appointed for four consecutive financial yearsi.e. from the conclusion of the 20th AGM till the conclusion of the 24th AGM of theshareholders of the Company as per the provisions of Section 139(1) of the Companies Act2013. M/s. RMA & Associates LLP Chartered Accountants New Delhi the StatutoryAuditors of the Company had completed the first term of five years as the StatutoryAuditors of the Company.

Further M/s. RMA & Associates LLP Chartered Accountants New Delhi werereappointed as the statutory auditors of the Company for a further term of five years tohold office from the conclusion of 24th AGM till the conclusion of thetwenty-ninth AGM of the Company to be held in the year 2023.

As per the Companies (Amendment) Act 2017 and Rules made thereunder w.e.f. May 072018 the Central Government notified the omission of the requirement related toratification of appointment of auditors by members at every Annual General Meeting.Accordingly the resolution for ratification has not been placed before the members.

Statutory Auditors’ Report:

The company always strives to present a unqualified Financial Statement. However thereare some observations on Auditor’s Report for the F.Y. 2018-19 which are as under:-

Auditor's Observation:-

a) Due to default in payments of bank loans the company’s accounts have beenclassified as Non-Performing Assets (NPA) by the bank. Indian Overseas Bank has notcharged interest on Cash credit & Term Loan Limits. During the period under review noprovision has been made for such interest in the books of account of the company and tothat extent bank’s loan liability and total loss is understated by Rs. 552.68 lacsplus penal charges that the bank may charge.

b) Trade Receivables & Trade Payables are subject to confirmation reconciliationadjustments & provisions if any which may arise out of confirmation andreconciliation.

c) The company had not determined the fair value of Investments in unquoted equityshares of other companies as per IND AS Report of the Statutory Auditor is annexed withthe Annual Report however as regards qualifications’ made by the Auditors’ intheir report your directors states as under:-

a). The Company's accounts had become Non-Performing Assets (NPA) with Indian OverseasBank and due to this reason IOB has stopped charging interest from the company on itsoutstanding debts. Hence the accounts of the company became NPA. In view of the abovethe company has not charged to statement of Profit & Loss account Interest expenses ofRs. 39.99 Lacs and related penal interest & other charges if any for the reportedperiod in respect of delay of repayments of borrowings from the bank. Further liabilityfor interest expenses of Rs.512.69 lacs till 31/12/2018 has not been accounted for. Thecompany has already received the One Time Settlement sanction letter with Indian OverseasBank to settle its outstanding loan of Rs. 12.50 Crores obtained from IOB as per the termsand conditions of the said OTS at Rs. 8.30 Crores. The Board therefore in its meetingheld on 23rd August 2019 has decided to sell the pharmaceutical ManufacturingUnit of the Company located at 138 Roz-ka-Meo Industrial Area Sohna Dist. MewatHaryana 122103 in order to discharge the obligations of the Company under the said OTS andto clear the outstanding loan of the Company with IOB. The net proceeds from the sale ofthe Undertaking will be utilized to repay the existing loans and reduce interest burdenand enhancement of working capital of the Company or general business purpose.

b). The Company is in the process of obtaining the necessary confirmations from itsSundry Debtors & Sundry Creditors the Company shall provide the same to the Auditorsas soon as it will be received by it.

c). The company has misplaced/lost the share certificates of the Investment made by itin unquoted equity shares of other companies during the shifting of its records. Hencethese share certificates are not physically held by the company. The Company has sentvarious request letters to the companies in which it has made investments for issue ofduplicate share certificates. However till date the company has not received any replyfrom these companies. In order to ensure the compliance of IND AS in true letter andspirits the company is also trying to ascertain the fair market value of its investments.

B. Secretarial Auditors:

As required under Section 204 of the Companies Act 2013 and Rules thereunder theBoard has appointed M/s. Kundan Agrawal & Associates Practicing Company Secretariesas Secretarial Auditor of the Company for the FY 2018-19.

Annual Secretarial Compliance Report & Secretarial Audit Report

SEBI Vide its circular bearing no. CIR/CFD/CMD1/27/2019 dated February 8 2019 mandatedthat all listed entities in addition to Secretarial Audit on an annual basis require acheck by the PCS on compliance of all applicable SEBI Regulations and circulars/guidelines issued thereunder.

In compliance with the said circular M/s. Kundan Agarwal & Associates CompanySecretaries the secretarial auditors of the Company examined the compliance of allapplicable SEBI Regulations and circulars / guidelines and provided their report. TheSecretarial Auditors vide their report dated 20th May 2019 have reported thatyour company has maintained proper records under the provisions of SEBI Regulations andCirculars / Guidelines issued thereunder.

There are no qualifications reservations adverse remarks or disclaimers given by theSecretarial Auditor in its Secretarial Audit Report for the Financial Year 2018-19.

The company has also obtained a certificate from M/s Kundan Agrawal & AssociatesPractising Company Secretary confirming that none of the Directors on the Board of theCompany has been debarred or disqualified from being appointed or continuing as Directorsof Companies by the Securities and Exchange Board of India/ Ministry of Corporate Affairsor any such Statutory Authority

The Annual Secretarial Compliance Report and the Secretarial Audit Report andcertificate regarding disqualification of Directors for the F. Y. 2018-19 is provided asAnnexure-1(A) 1(B) & 1(C) respectively.

C. Internal Auditor:

Pursuant to the provision of the Companies Act 2013 and Rules framed thereunder theBoard of Directors on the recommendation of the Audit Committee had appointed M/s. Sanghi& Co. Chartered Accountants as the Internal Auditor of the company for the FY2018-19.

13. Cost Audit

Pursuant to the various circulars issued by the Ministry of Corporate Affairs theCompany is required to maintain cost records for all the products being manufactured by itand get the same audited by a cost auditor. But due to turnover based criteria asprescribed by Central Government cost audit is not required on our company for the year2019-20 as per notification no. F.No.1/40/2013-CL-V dated 31.12.2014.

14. Share Capital:

A Issue of equity shares with differential rights: During the year company has not issued any equity shares with differential rights.
B Issue of sweat equity shares During the year company has not issued any Sweat equity shares.
C Issue of employee stock options During the year company has not issued employee stock options.
D Provision of money by company for purchase of its own shares by employees or by trustees for the benefit of employees Rs Nil
E Bonus Shares No bonus shares were issued during the year under review.

15. Extract of the annual return (MGT-9):

The extract of the annual return in Form No. MGT 9 is annexed herewith (Annexure-2).

16 . Conservation of energy technology absorption and foreign exchange earnings andoutgo:

The Company lay focus on Conservation of energy with studies discussions and analysiswhich are undertaken regularly for further improvement. In terms of requirement ofSection134 (3) (a) of the Companies Act 2013 read with rule 8 of the Companies (Accounts)Rules 2014 the required information relating to conservation of energy technologyabsorptions and foreign exchange earnings and outgo are Annexed hereto as Annexure-3.

17. Corporate Social Responsibility (CSR):

In terms of section 135(1) of the Companies Act 2013 the provisions of CorporateSocial Responsibility are not applicable to the Company.

18. Directors and Key Managerial Personnel:

A) Changes in Directors and Key Managerial Personnel

Retirement by Rotation

In accordance with the provisions of the Companies Act 2013 Mr. Peeyush KumarAggarwal (DIN 00090423) Director of the Company retires by rotation at the forthcomingAGM and being eligible offers himself for re-appointment.

Considering the background and experience of Mr. Peeyush Kumar Aggarwal the Board isof the opinion that his reappointment will immensely benefit your Company. The Boardrecommends his reappointment.

Brief profile of the Mr. Peeyush Kumar Aggarwal Director of the Company who isproposed to be re-appointed is mentioned herein below:

Mr. Peeyush Kumar Aggarwal is a fellow Member of the Institute of CharteredAccountants of India. He has rich experience of over 33 years. A first generationEntrepreneur having a clear business vision and practicing a hands- off approach. He hasmastered the art of Mergers & Acquisitions. His business interests today are in theareas of Information Technology; Telecom VAS; Digital Cinema ; Retail ; Broking (SharesCommodities Insurance) ; Real Estate ; Construction & Hospitality. In addition hehas had an extensive experience in strategic and feasibility consulting preparingbusiness plans conducting due diligence reviews and business valuation. He has hadsignificant expertise in assisting Indian Companies in financial and management audits. Healso has rich and vast experience in the field of Corporate Laws Finance and TaxationProject Management etc. He is an emerging Venture Capitalist who has helped several youngentrepreneurs in establishing and growing their dream businesses.

Details of his Directorship in other public limited companies are as follows:-

Sl. No. Directorships in other Public Companies

Committee Membership/Chairmanship

1 M/s MPS INFOTECNICS LIMITED Audit Committee Member
Stakeholder's Relationship Committee Member
Risk Management Committee Member
Corporate Social Responsibility Committee Chairman
2. M/s INTERWORLD DIGITAL LIMITED Audit Committee Member
Investigation Committee Chairman
3. M/s ONUS PLANTATIONS AND AGRO LIMITED - -
4. M/s OMKAM DEVELOPERS LIMITED - -

At present Mr. Peeyush Kumar Aggarwal is a Non-Executive Promoter Director of theCompany and has therefore an interest directly or indirectly in the capital of theCompany to the extent of his shareholding in the Company. Mr. Peeyush Kumar Aggarwal holds1957159 equity shares constituting 10.24% of the paid up capital of the company.

B. Appointment and Cessation:

There is no appointment or cessation of Directors during the year under review.However Mr. Sachin Garg Director of the Company resigned w.e.f. 23-04-2019 from the postof Managing Director and Director of the Company after the year under review.

C. Declaration by Independent Directors:

Your Company has received necessary declaration from each Independent Director of theCompany under Section 149(6) of the Companies Act 2013 read with Regulation 16 of SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 confirming that theymeet with the criteria of independence as prescribed under the aforesaid Section andRegulation.

D. Formal Annual Evaluation:

In compliance with the Companies Act 2013 and the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 during the year the Board adopted a formalmechanism for evaluating its performance as well as that of its Committees and IndividualDirectors including the Chairman of the Board. Structured questionnaires were used in theoverall Board evaluation comprising various aspects of Board function.

The evaluation of Independent Directors was carried out by the entire Board and that ofthe Chairman and Non Independent Directors were carried out by the Independent Directors.

The Directors were satisfied with the evaluation results which reflected the overallengagement of the Board and its Committees with the Company.

19. Number of meetings of the Board of Directors:

Six meetings of the Board of Directors were held during the year on 30thMay 2018 13th August 2018 01st September 2018 14thNovember 2018 13th February 2019 and 18th March 2019.

A separate meeting of the Independent Directors was held on 18.03.2019.

20. Committees of the Board:

During the year under in accordance with the Companies Act 2013 and SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 the Board has the followingCommittees:

* Audit Committee

* Stakeholders’ Relationship Committee

* Nomination and Remuneration Committee

* Risk Management Committee

Details of the said Committees alongwith their charters compositions and meetings heldduring the year are provided in the Report of Corporate Governance as a part of thisAnnual Report.

21. Board Evaluation:

SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 mandates thatthe Board shall monitor and review the Board Evaluation framework. The Companies Act 2013provides that a formal annual evaluation needs to be made by the Board of its ownperformance and that of its Committees and individual directors. Schedule IV of theCompanies Act 2013 states that the performance evaluation of Independent Directors shallbe done by the entire Board of Directors excluding the director being evaluated.

The Board of Directors has carried out an annual evaluation of its own performanceBoard Committees and individual directors pursuant to the provisions of the Companies Act2013 and the corporate governance requirements as prescribed by Securities and ExchangeBoard of India (“SEBI”) under SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015. Structured questionnaires were used in the overall Boardevaluation comprising various aspects of Board function.

The performance of the Board was evaluated by the Board on the basis of PerformanceEvaluation Policy formulated by the Board and after seeking inputs from all the directorson the basis of the criteria such as the Board composition and structure effectiveness ofboard processes information and functioning etc.

The performance of the Committees was evaluated by the Board after seeking inputs fromthe Committee members on the basis of the criteria such as the composition of committeeseffectiveness of Committee meetings etc. and on such further criteria as is set out inthe Performance Evaluation Policy (as per Annexure -4) formulated by the Nomination andRemuneration Committee and approved by the Board to evaluate the performance of the Boardand its Committees.

In a separate meeting of Independent Directors held on 18.03.2019 performance ofnon-Independent Directors performance of the board as a whole and performance of theChairman was evaluated taking into account the views of executive directors andnon-executive directors. The same was discussed in the board meeting that followed themeeting of the Independent Directors at which the performance of the Board itscommittees and individual directors was also discussed.

The Board and the Nomination and Remuneration Committee (“NRC”) reviewed theperformance of the individual directors on the basis of the criteria such as thecontribution of the individual director to the Board and Committee meetings likepreparedness on the issues to be discussed meaningful and constructive contribution andinputs in meetings etc. In addition the Chairman was also evaluated on the key aspectsof his role.

Performance evaluation of independent directors was done by the entire board excludingthe independent director being evaluated.

Based on the outcome of performance evaluation for the financial year 2018-19 furthermeasures/actions have been suggested to improve and strengthen the effectiveness of theBoard and its Committees.

22. Policy on Directors’ Appointment and Remuneration:

Your Company has a policy to have an appropriate mix of Executive Non-Executive andIndependent directors to maintain the independence of the Board and separate itsfunctions of governance and management. As on March 31 2019 the Board consisted of 4members and out of which 1 (One) is an Executive Director 2 are Non-Executive IndependentDirectors including 1 Woman Director and 1 is a Non-Executive Promoter Director.

The policy of the Company 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 of the Companies Act2013 of the Companies Act 2013 adopted by the Board is attached as Annexure 5 to theBoard Report. Further no remuneration at present is being paid to any of the Directorsof the Company.

23. Risk management policy and Internal Control:

The Company has adopted a Risk Management Policy duly approved by the Board and alsohas in place a mechanism to identify access monitor and mitigate various risks to keybusiness objectives. Major risks identified by the businesses and functions aresystematically addressed through mitigating actions on a continuing basis.

24. Whistle Blower Policy and Vigil Mechanism:

Your Company has established a “Whistle Blower Policy” and Vigil Mechanismfor directors and employees to report to the appropriate authorities concerns about theunethical behaviour actual or suspected fraud or violation of the Company’s code ofconduct policy and provides safeguards against victimization of employees who avail themechanism and also provide for direct access to the Chairman of the Audit Committee. Thesaid policy has been uploaded on the website of the company. The same can be accessed atthe website of the Company under the Investment Information head at the linkhttp://www.advikindia.com/reports/policy/whistle_blower.pdf.

25. Particulars of loans guarantees or investments under Section 186:

Particulars and details of loans given investments made or guarantees given andsecurities provided if any are given in the Notes to the Financial Statements.

26. Contracts and arrangements with related parties:

The policy on Related Party Transactions as approved by the Board is uploaded on theCompany’s website http://www.advikindia.com/reports/policy/related_party.pdf.Pursuant to Section 134 (3)(h) of the Companies Act 2013 and Rules made there underparticulars of transactions with related parties as required under section 188(1) of theCompanies Act 2013 are mentioned in the prescribed Form AOC-2 which is annexed herewithas “Annexure-6”. The details of the transactions with related parties areprovided in Notes to Financial Statements.

27. Corporate Governance:

Your Company has been benchmarking itself with well-established Corporate Governancepractices besides strictly complying with the requirements of Regulation 17 to 27 and anyother applicable Regulation of the SEBI under SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 as amended from time to time.

A separate “Report on Corporate Governance” together with requisitecertificate obtained from Statutory Auditors of the Company confirming compliance withthe provisions of Corporate Governance as per the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 is annexed to this Report.

28. Directors’ Responsibility Statement:

Pursuant to Section 134(3)(c) read with 134(5) of the Companies Act 2013 the Board ofDirectors to the best of their knowledge and belief confirm that:

(a) in the preparation of the annual accounts for the financial year ended 31stMarch 2019 the applicable accounting standards had been followed and no materialdepartures have been made from the same;

(b) 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 i.e. on31st March 2019 and of the profit or 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 the Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;

(d) the directors have 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 operating efficiently;and

(f) the directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems are adequate and operating effectively.

29. Particulars of Employees:

There are no employees employed throughout the financial year who were in receipt ofremuneration of Rs. 102 Lacs or more or employed for part of the year who were in receiptof remuneration of Rs. 8.50 lacs or more a month under Rule 5(2) of the Companies(Appointment and Remuneration of Managerial Remuneration) Rules 2014.

Disclosure u/s 197(12) and Rule 5(1) of the Companies Appointment and Remuneration ofManagerial Personnel) Rules 2014 are annexed herewith as Annexure 7.

During the year under review none of the Directors of the Company has receivedremuneration from the Company.

The Nomination and Remuneration Committee of the Company has affirmed in its meetingheld on 18/03/2019 that the remuneration paid to the Senior Management Employee/KMPs is asper the remuneration policy of the Company

30. Internal Auditors & Their Report:

Pursuant to the provisions of Section 138 of the Companies Act 2013 and Rules madethereunder the Company had appointed M/s Sanghi & Co. as Internal Auditor for thefinancial year 2018-19.

Internal Financial Control and Their Adequacy

The Board has adopted policies and procedure for ensuring the orderly and efficientconduct of its business including adherence to the company’s policies thesafeguarding of its asset the prevention and detection of fraud and error the accuracyand completeness of the accounting records and the timely preparation of reliablefinancial disclosure.

The Company has an adequate internal controls system commensurate with its size and thenature of its business. All the transactions entered into by the Company are dulyauthorized and recorded correctly. All operating parameters are monitored and controlled.The top management and the Audit Committee of the Board of Directors review the adequacyand effectiveness of internal control systems from time to time

31. Disclosures under Sexual Harassment of Women at Workplace (Prevention Prohibition& Redressal) Act 2013 read with Rules thereunder:

Pursuant to the provisions of Section 22 of Sexual Harassment of Women at Workplace(Prevention Prohibition & Redressal) Act 2013 read with Rules thereunder theCompany has not received any complaint of sexual harassment during the year under review.

32. Reporting of Frauds by Auditors’

During the year under review the Statutory Auditors and the Secretarial Auditor havenot reported any instances of frauds committed in the Company by its Officers or Employeesto the Audit Committee under Section 143(12) of the Companies Act 2013 details of whichneed to be mentioned in this Report.

33. Secretarial Standards

The Company has complied with the provisions of the applicable Secretarial Standardsi.e. SS-1 (Secretarial Standard on Meetings of the Board of Directors) and SS-2(Secretarial Standard on General Meetings).

34. Human Resources:

Your Company treats its “human resources” as one of its most importantassets. We focus on all aspects of the employee lifecycle. This provides holisticexperience for the employees as well. During their tenure at the Company employees aremotivated through various skill development programs. We create effective dialogue throughour communication channels to ensure effective dialogue through our communication channelsto ensure that feedback reach the relevant team including leadership.

Your Company continuously invests in attraction retention and development of talent onan ongoing basis. A number of programs that provide focused people attention are currentlyunderway. Your Company thrust is on the promotion of talent internally through jobrotation and job enlargement.

35. Segment-wise performance:

The Company is into single reportable segment only.

36. Management Discussion and Analysis:

The Management Discussion and Analysis Report on the business of the Company andperformance review for the year ended March 31 2019 as stipulated in Regulation 34 ofthe SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 is presentedin a separate report which forms part of the Report.

37. Acknowledgements:

Your Directors are grateful to the Government of India the Reserve Bank of India theSecurities and Exchange Board of India the Stock Exchanges and other regulatoryauthorities for their valuable guidance and support and wish to express their sincereappreciation for their continues co-operation and assistance. We look forward for theircontinued support in future.

Your directors would like to express their sincere appreciation for the assistance andcooperation received from banks customers vendors Government members and employeesduring the year under review. Finally the Directors thank you for your continued trustand support.

For and on Behalf of the Board of Directors of
Advik Laboratories Ltd.
Sd/-
(Peeyush Kumar Aggarwal)
Date 23rd August 2019 Chairman
Place: New Delhi DIN : 00090423

.