BOARD OF DIRECTOR'S REPORT
Amit International Limited
Your directors present Annual report on the business and operations of the companytogether with Audited Statement of Accounts of the company for the year ending 31st March2018.
The particulars pursuant to sub section 3 of section 134 of the companies act 2013 aregiven below.
a) The extract of annual return as provided under sub-section (3) of section 92 of theCompanies Act 2013:
The extract of Annual return is in format MGT-9 for the financial year ended 31/03/2018is enclosed as Annexure A with this report.
b) Number of meetings of the Board:
During the year 2017-18 5 meetings of Board of Directors were held on 30/05/201708/08/2017 22/08/2017 06/11/2017 & 10/02/2018.
c) Directors' Responsibility Statements:
The directors' state that
i) In the preparation of annual accounts for the financial year ended 31st March 2018the applicable accounting standards had been followed along with proper explanationrelating to material departures;
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 as at 31st March and of the profit / lossof the company for that period;
iii) The directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the company and for preventing and detecting fraud and otherirregularities;
iv) The director had prepared the annual accounts on a going concern basis;
v) The director had laid down internal financial controls to be followed by the companyand that such internal financial controls are adequate and were operating effectively.
vi) The director had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.
(a) Details of frauds reported by auditors under sub-section (12) of section 143 otherthan those which are reportable to the central government.
Auditor has not reported any fraud under subsection (12) of section 143 of TheCompanies Act 2013.
d) A Statement on Declaration given by Independent Directors under sub-section (6) ofsection 149.
The independent Directors have submitted declaration pursuant to Section 149(7)confirming that he meets the criteria of independence pursuant to section 149(6). Thestatement has been noted by Board of Directors.
e) If Company covered under sub-section (1) of section 178 company's policy ondirectors' appointment and remuneration including criteria for determining qualificationspositive attributes independence of director and other matter provided under sub-section(3) of section 178.
The Board has on the recommendation of the Nomination and Remuneration Committeeframed a policy for selection and appointment of director and key managerial personal andtheir remuneration. The policy is disclosed at Annexure B in pursuance of provision tosection 178(3) of the companies Act 2013.
The Company does not pay any remuneration to the Non-Executive/Independent Directors ofthe company other than sitting fees for attending the meeting of the Board/Committee.Remuneration to the Whole Time Director/Managing Director is governed by the relevantprovisions of the Companies Act 2013.
f) Explanations or comments by the board on every qualification reservation or adverseremark or disclaimer made by the auditor in his report / by the company secretary inpractice in his secretarial audit report.
The statutory auditors have not made any qualifications reservations or adverseremarks or disclaimer in the report and no explanation or comments by the board isrequired.
The Secretarial Audit Report pursuant to Section 204 of the Companies Act 2013 inprescribed Form MR-3 is attached to as Annexure C to this report. The Company has takennote of Qualification Reservation etc in the Said report and shall make arrangement fornecessary compliance in future.
g) Particulars of loans guarantees or investments under section 186 of Companies act2013
Company has not during the year under review (a) given any loan to any person or otherbody corporate (b) Given any guarantee or provide security in connection with a loan toany other body corporate or person; and (c) Acquired by way of subscription purchase orotherwise the securities of any other body corporate Exceeding sixty per cent of itspaid-up share capital free reserves and securities premium account or one hundred percent of its free reserves and securities premium account whichever is more and hence theparticulars are not required to be included in this report.
h) Particulars of contracts or arrangements with related parties referred to insub-section (1) of section 188 in the prescribed form (Form AOC-2)
The company has entered into transactions referred to in section 188(1) of TheCompanies Act 2013 with related party and as such particulars in form AOC-2 are attachedto this report.
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) ofthe Companies (Accounts) Rules 2014)
Form for disclosure of particulars of contracts/arrangements entered into by thecompany with related parties referred to in sub-section (1) of section 188 of theCompanies Act 2013 including certain arms length transactions under third provisothereto.
I. Details of contract or arrangements or transactions not at arm's length basis:
There were no contracts or arrangements or transactions entered into during the yearended 31st March 2018 which were not at arm's length basis.
II. Details of material contracts or arrangements or transactions at arm's lengthbasis:
The details of material contracts or arrangements or transactions at arm's length basisfor the year ended 31st March 2018 are as follows.
|Sr. No. ||Name of the Related Party & Relationship ||Nature of Transaction ||Duration ||Salient Terms ||Amount |
|01 ||Kirti J. Doshi- ||Director's Remuneration ||Ongoing ||On arm's length basis in ordinary course of business ||900000/- |
| ||Managing Director || || || || |
i) The state of Company's affairs
There is no Material change in the state of affairs of the company particularly natureof business being carried out. The income has been increased from Rs. 1930632/- in theyear 2016-17 to Rs.2499448/- in the year 2017-18. There has been Loss of Rs. 766548/-in the year 2016-17 and company had loss of Rs. 110357/- in the year 2017-18
The Company has not issued any share capital or Debentures during the year. There is nochange in the status of the company or the accounting year.
j) The amount if any which it proposes to carry to any reserves
The Directors do not propose to carry any amount to reserves.
k) The amount if any which it recommends should be paid by way of dividend
The Directors do not recommend any amount to be paid by way of dividend.
l) Material Changes and commitments if any Affecting the Financial Position of theCompany which have occurred between the Ends of the financial year of the company to whichthe financial statements relate and the date of the report.
There are no material changes and/or commitments affecting financial position of theCompany occurred after end of financial year till date of this report.
m) The Conservation of Energy Technology Absorption Foreign Exchange Earnings andOutgo in such manner as may be prescribed.
Information and details pursuant to Rule 8(3) of the companies (Accounts) Rules 2014with respect to above is given below: spect to above is given below:
(A) CONSERVATION OF ENERGY-
i) The steps taken or impact on conservation of energy: NIL
ii) The steps taken by the company for utilizing alternate sources of energy: NIL
iii) The capital investment on energy conservation equipments: NIL
(B) TECHNOLOGY ABSORPTION-
i) The efforts made towards technology absorption: Not Applicable
ii) The benefits derived like product improvement cost reduction product developmentor import substitution: Not Applicable
iii) In case of imported technology (imported during the last three years reckoned fromthe be- ginning of the financial year)-
a. The details of technology imported: Not Applicable
b. The year of import: Not Applicable
c. Whether the technology been fully absorbed: Not Applicable
d. If not fully absorbed areas where absorption has not taken place and the reasonsthereof: Not Applicable and
iv) The expenditure incurred on Research and Development: NIL
(C) FOREIGN EXCHANGE EARNINGS AND OUTGO-
Foreign Exchange earned (actual inflows during the year): NIL
Foreign Exchange outgo (actual outflows): NIL n) A statement including development andimplementation of a Risk Management Policy for the company including identificationtherein of elements of risk if any which in the opinion of the board may threaten theexistence of the company
The Directors do not foresee any risk that may threaten the existence of the company innormal course. The Directors proposes to develop and implement specific Risk ManagementPolicy on identification of any risk. o) The details about the policy developed andimplemented by the company on corporate social responsibility initiatives taken during theyear;
Since the Net Worth of the company is below Five Hundred crores Turnover of thecompany is below One thousand crores Net Profit of the company is below Five crores. Theprovision of Section 135 of The Companies Act 2013 are not applicable to the company andhence the company is not required undertake any corporate Social Responsibility (CSR)initiatives. p) In case of a listed company and every other public company having suchpaid-up share capital as may be prescribed a statement indicating the manner in whichformal annual evaluation has been made by the Board of its own performance and that of itscommittees and individual directors:
Pursuant to provision of the Companies Act 2013 the board has carried out the annualperformance evaluation of its own performance as well as the evaluation of the AuditNomination & Remuneration Committee.
The chairman of Board of directors and the chairman of Nomination & remunerationCommittee met all the directors individually to get an overview of the functioning of theboard and its constituents inter alia on the following board criteria i.e. attendance andlevel of participation independence of judgment exercised by independent directorsinterpersonal relationship etc. Based on the valuable inputs received the directors areencouraged for effective role in company management. q) Such other matters as may beprescribed.
(Pursuant to rule 8(5) of The Companies (Acounts) Rules 2014) i) The Financial summaryor highlights
The summary of financial Results (standalone) for the year under review is as under:
|Particulars ||As on 31/03/2018 ||As on 31/03/2017 |
|Turnover and other income ||2499448 ||1930632 |
|Gross profit/Loss (-) before ||739651 ||223818 |
|Financial Charges & depreciation || || |
|Interest and Financial Charges ||4281 ||1266 |
|Profit / Loss(-) before depreciation ||777516 ||222552 |
|Depreciation ||882812 ||882812 |
|Profit / Loss(-) After Tax for the year ||(110357) ||(766548) |
ii) The Change in the nature of business if any:
There is no Material change in nature of business of the company. iii) The Details ofDirectors or key managerial personnel who were appointed or have resigned during the year:
The details of Directors and key managerial personnel who were appointed / resignedduring the year are as under:
|Name of Director/KMP ||Designation ||Date of Appointment ||Date of Resignation |
|Jagruti Bharat Gala ||Non- Executive Independent Director ||- ||22.08.2017 |
|Rupa Ramnikbhai Zaveri ||Non- Executive Independent Director ||06.11.2017 ||- |
iv) The names of companies which have become or ceased to be its Subsidiaries jointventures or associate companies during the year: No company has become or ceases to besubsidiary joint venture or associate company during the year.
v) The details relating to deposits covered under Chapter V of the Act-
(a) Accepted during the year: NIL
(b) Remained unpaid or unclaimed as at the end of the year: NIL
(c) Whether there has been any default in repayment of deposits or payment of interestthereon during the year and if so number of such cases and the total amount involved-(i)At the beginning of the year: Not Applicable (ii) Maximum during the year: Not Applicable(iii) At the end of the year: Not Applicable vi) The details of deposits which are not incompliance with the requirements of Chapter V of the Act: NIL vii) The details ofsignificant and material orders passed by the regulators or courts or tribunals impactingthe going concern status and company's operations in future: NIL viii) The details inrespect of adequacy of internal financial controls with reference to the FinancialStatements.
The company has in place adequate internal financial controls with reference tofinancial statements. Periodic audits are undertaken on continuous basis covering allmajor operation. During the year no Reportable Material weakness in the operation wasobserved.
Disclosures under Companies (Appointment and Remuneration of Managerial Personnel)Rules 2014
|Requirement under Rule 5(1) ||Details |
|(i) The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year. ||1:3.5 |
|(ii) The percentage increase in remuneration of each director chief financial officer Chief Executive officer company secretary or manager in the financial year. ||Nil |
|(iii) The percentage increase in the median remuneration of employees in the financial year ||Not applicable as there is no increase in remuneration of employees 2 (two) |
|(iv) Number of permanent employees on the rolls of the company as on 31st March 2018. || |
|(v) Average percentile increase already made the salaries of the employees other than the managerial salaries personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration. ||Not applicable as there is no increase in of managerial personnel. |
|(vi) Affirmation that the remuneration is as per the remuneration policy of the company. remuneration ||The company affirms is a per the remuneration policy of the company |
No Employee of the company has been paid Remuneration in excess of limits laid down inrule 5(2) of the companies (Appointment and Remuneration of Managerial Personnel) Rules2014 and hence statement showing details thereof is not applicable.
An Audit Committee is in existence under provisions of Section 177 of the CompaniesAct 2013 and Regulation 18 of Securities and Exchange Board of India (Listing Obligationsand Disclosure Requirements) Regulations 2015. The Audit committee comprises of 3directors namely Mr. Vikesh Vinod Ganatra Mr. Kirti Jethalal Doshi and Mr. Naresh NanalalVaghani. Mr. Vikesh Vinod Ganatra is the Chairman of the Audit Committee. During the yearthere was no instance where the board had not accepted the Recommendation of AuditCommittee.
Vigil Mechanism / Whistle Blower Policy
Pursuant to section 177(9) of the Companies Act 2013 read with Rule 7 of the Companies(Meetings of Board and its Power) Rules 2014 the Board of Director has adopted vigilmechanism in the form of Whistle Blower Policy through which its Directors Employees andStakeholders can report their genuine concerns about unethical behaviors actual orsuspected fraud or violation of the Company's code of conduct or ethics policy. It is theCompany's Policy to ensure that no employee is victimised or harassed for bringing suchincidents to the attention of the Company. The practice of the Whistleblower Policy isoverseen by the Audit Committee of the Board and no employee has been denied access to theCommittee. The said policy provides for adequate safeguards against victimization and alsodirect access to the higher levels of supervisors. Mr. Vikesh Vinod Ganatra the Chairmanof the Audit Committee can be contacted to report any suspected/ confirmed incident offraud/misconduct on: Email id.: email@example.com Contact no.: 022-2209 5533 YourCompany hereby affirms that no Director/Employee has been denied access to the Chairman ofthe Audit Committee and that no complaints were received during the year.
The Board of Directors place on records the services of all stakeholders and associateswho have co-operated in the working of the CompanyBy Order of the Board of Directors
| ||For Amit International Limited |
| ||Sd/- |
| ||Kirti Jethalal Doshi (DIN: 01964171) |
| ||Chairman and Managing Director |
|Place: Mumbai || |
|Date: 29.05.2018 || |