To the Members
The Directors have pleasure in presenting before you the 33rd Boards' Report of the Company together with the Audited Statements of Accounts for the year ended 31st March 2019.
1. FINANCIAL SUMMARY/HIGHLIGHTS OPERATIONS STATE OF AFFAIRS:
The performance during the period ended 31st March 2019 has been as under:
(Rs. In Lakhs)
|Profit Before Tax||167.`5||293.42|
|Provision for Tax||51.36||86.06|
|Profit after Tax||115.79||207.36|
|Transfer to General Reserves||-||-|
|Profit available for appropriation||115.79||207.36|
|Provision for Proposed Dividend||-||-|
|Provision for Dividend Tax||-||-|
|Balance Carried to Balance Sheet||115.79||207.36|
2. MATERIAL CHANGES AND COMMITMENTS:
There were no material changes and commitments affecting financial position of the company between 31stMarch and the date of Board's Report. (i.e. 22.05.2019)
3. CHANGE IN THE NATURE OF BUSINESS IF ANY:
During the period under review and the date of Board's Report there was no change in the nature of Business.
The Directors are pleased to recommend a Dividend of Re. 1.00 per share on the Paid up Equity Share Capital of the Company in respect of the financial year 2018-19. The total outgo on account of dividend inclusive of dividend tax stands at Rs. 6075987/- for which necessary provision has been made in the accounts.
The Company proposed to transfer Rs.6075987/- to the reserve on account of declaration of dividend on both standalone and consolidated basis.
6. BOARD MEETINGS:
The Board of Directors duly met 5 (Five) times on 17.05.2018 09.08.2018 24.10.2018 12.11.2018 and 13.02.2019 and in respect of which meetings proper notices were given and the proceedings were properly recorded and signed in the Minutes Book maintained for the purpose.
7. DECLARATION FROM INDEPENDENT DIRECTORS ON ANNUAL BASIS
The Company has received a declaration from Mr. Laxminiwas Sharma Mr. K. Harish Chandra Prasad and Mrs. Shanti Sree Bolleni Independent directors of the company to the effect that they are meeting the criteria of independence as provided in Sub-section (6) of Section 149 of the Companies Act 2013 and Regulation 25 of SEBI (Listing Obligations and Disclosure Requirement) Regulations 2015.
8. DIRECTORS OR KMP APPOINTED OR RESIGNED.
No Directors or Key Managerial Personnels have resigned during the year. As required under regulation 36 (3) of the SEBI (LODR) Regulations 2015 brief particulars of the Directors seeking appointment/re-appointment are given as under:-
|Name of the Director||Shanti Sree Bolleni||Hari Narayan Rathi|
|Date of Birth||17/05/1962||22/11/1953|
|Expertise in specific functional areas ||She is a Senior Partner in M/s. Tukaram & Co. Chartered Accountants Hyderabad. She had served The Andhra Pradesh Tax Bar Association as council Member from 2008 to 2012 and later as President for the year 2010-11. She is an External Member Board of Studies Department of Commerce Osmania University College for Women Koti Hyderabad. She is also associated with many charitable trust and societies as auditor and advisor||Twice unanimously elected as President of Hyderabad Stock Exchange (HSE). He is having vast experience in securities Market.|
|Names of listed entities in which the person also holds the directorship and the membership of Committees of the board||-||-|
|Shareholding of non- executive directors.||-||-|
|No. of Shares held in the Company||-||1624955|
|Inter se relationship with any Director||-||Chetan Rathi|
8. FAMILIARISATION PROGRAMMES:
The Company familiarises its Independent Directors on their appointment as such on the Board with the Company their roles rights responsibilities in the Company nature of the industry in which the Company operates etc. through familiarisation programme. The Company also conducts orientation programme upon induction of new Directors as well as other initiatives to update the Directors on a continuing basis. The familiarisation programme for Independent Directors is disclosed on the Company's website www.bnrsecurities.com
9. COMPOSITION OF AUDIT COMMITTEE:
I. The Audit Committee of the Company is constituted in line with the provisions of Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 read with Section 177 of the Companies Act 2013.
II. The terms of reference of the Audit Committee include a review of the following:
Overview of the Company's financial reporting process and disclosure of its financial information to ensure that the financial statements reflect a true and fair position and that sufficient and credible information is disclosed.
Recommending the appointment and removal of external auditors fixation of audit fee and also approval for payment for any other services.
Discussion with external auditors before the audit commences of the nature and scope of audit as well as post-audit discussion to ascertain any area of concern.
Reviewing the financial statements and draft audit report including quarterly / half yearly financial information.
Reviewing with management the annual financial statements before submission to the Board focusing on:
1. Any changes in accounting policies and practices;
2. Qualification in draft audit report;
3. Significant adjustments arising out of audit;
4. The going concern concept;
5. Compliance with accounting standards;
6. Compliance with stock exchange and legal requirements concerning financial statements and
7. Any related party transactions
Reviewing the company's financial and risk management's policies.
Disclosure of contingent liabilities.
Reviewing with management external and internal auditors the adequacy of internal control systems.
Reviewing the adequacy of internal audit function including the audit character the structure of the internal audit department approval of the audit plan and its execution staffing and seniority of the official heading the department reporting structure coverage and frequency of internal audit.
Discussion with internal auditors of any significant findings and follow-up thereon.
Reviewing the findings of any internal investigations by the internal auditors into the matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
Looking into the reasons for substantial defaults in payments to the depositors debenture holders shareholders (in case of non-payment of declared dividends) and creditors.
Reviewing compliances as regards the Company's Whistle Blower Policy.
III. The previous Annual General Meeting of the Company was held on 09.08.2018 and Chairman of the Audit Committee attended previous AGM.
IV. The composition of the Audit Committee and the attendance of each member of the Audit Committee are given below:
The Company has complied with all the requirements of Regulation 27 of SEBI (LODR) Regulations 2015 relating to the composition of the Audit Committee.
During the financial year 2018-19 (4) four meetings of the Audit Committee were held on the 17.05.2018 09.08.2018 12.11.2018 and 13.02.2019.
The details of the composition of the Committee and attendance of the members at the meetings are given below:
|Name||Designation||Category||No. of Meetings held||No. of Meetings attended|
|Harish Chandra Prasad||Member||NED(I)||4||4|
|Shanti Sree Bolleni||Member||NED(I)||4||4|
|Hari Narayan Rathi||Member||MD||4||4|
NED (I): Non-Executive Independent Director
MD: Managing Director
10. NOMINATION & REMUNERATION COMMITTEE
Terms of reference:
The main term of reference of the Committee is to approve the fixation/revision of remuneration of the Managing Director/Whole Time Director of the Company and while approving:
To take into account the financial position of the Company trend in the industry appointee's qualification experience past performance past remuneration etc.
To bring out objectivity in determining the remuneration package while striking a balance between the interest of the Company and the Shareholders.
The objectives of the remuneration policy are to motivate Directors to excel in their performance recognize their contribution and retain talent in the organization and reward merit.
The remuneration levels are governed by industry pattern qualifications and experience of the Directors responsibilities shouldered individual performance etc.
The details of remuneration paid to the Executive and Non-Executive Directors for the financial year 2018-19 are given below:
Mr. Hari Narayan Rathi - Managing Director and Mr. Chetan Rathi -Whole Time Director cum CFO have drawn a remuneration of Rs. 4200000/- and Rs. 3600000/- for the year ended 31.03.2019 respectively.
None of the Directors is drawing any Commission Perquisites Retirement benefits etc.
The details of composition of the Committee pre reconstitution are given below:
|Name||Designation||Category||No. of Meetings held||No. of Meetings attended|
|Shanti Sree Bolleni||Member||NED(I)||-||-|
|*Hari Narayan Rathi||Member||MD||-||-|
NED (I): Non Executive Independent Director
MD: Managing Director
*Reconstitution of the Committee in their meeting held on 22.05.2019.
The details of composition of the Committee post reconstitution are given below:
|Name||Designation||Category||No. of Meetings held||No. of Meetings attended|
|Shanti Sree Bolleni||Member||NED(I)||-||-|
POLICY FOR SELECTION OF DIRECTORS AND DETERMINING DIRECTORS' INDEPENDENCE
This policy sets out the guiding principles for the Nomination & Remuneration Committee for identifying persons who are qualified to become Directors and to determine the independence of Directors in case of their appointment as independent Directors of the Company.
2. Terms and References:
2.1 Director means a director appointed to the Board of a Company.
2.2 Nomination and Remuneration Committee means the committee constituted in accordance with the provisions of Section 178 of the Companies Act 2013 and reg. 19 of SEBI (Listing Obligation and Disclosure Requirement) Regulations 2015.
2.3 Independent Director means a director referred to in sub-section (6) of Section 149 of the Companies Act 2013 and Regulation 16(1) (b) of the SEBI (Listing obligations and Disclosure Requirements) Regulations 2015.
Qualifications and criteria
3.1.1 The Nomination and Remuneration Committee and the Board shall review on annual basis appropriate skills knowledge and experience required of the Board as a whole and its individual members. The objective is to have a board with diverse background and experience that are relevant for the Company's operations.
3.1.2 In evaluating the suitability of individual Board member the NR Committee may take into account factors such as:
?General understanding of the company's business dynamics global business and social perspective;
?Educational and professional background ?Standing in the profession; ?Personal and professional ethics integrity and values;
?Willingness to devote sufficient time and energy in carrying out their duties and responsibilities effectively.
3.1.3 The proposed appointee shall also fulfil the following requirements: ?shall possess a Director Identification Number; ?shall not be disqualified under the Companies Act 2013;
?shall Endeavour to attend all Board Meeting and Wherever he is appointed as a Committee Member the Committee Meeting;
?shall abide by the code of Conduct established by the company for Directors and senior Management personnel;
?shall disclose his concern or interest in any company or companies or bodies corporate firms or other association of individuals including his shareholding at the first meeting of the Board in every financial year and thereafter whenever there is a change in the disclosures already made;
?Such other requirements as may be prescribed from time to time under the Companies Act 2013 SEBI (Listing obligations and Disclosure Requirements) Regulations 2015 and other relevant laws.
3.1.4 The Nomination & Remuneration Committee shall evaluate each individual with the objective of having a group that best enables the success of the company's business.
3.2 Criteria of independence
3.2.1 The Nomination & Remuneration Committee shall assess the independence of Directors at time of appointment/ re-appointment and the Board shall assess the same annually.
The Board shall re-assess determinations of independence when any new interest or relationships are disclosed by a Director.
3.2.2 The criteria of independence shall be in accordance with guidelines as laid down in Companies Act 2013 and reg. 16(1) (b) of the SEBI (Listing obligations and Disclosure Requirements) Regulations 2015.
3.2.3 The Independent Director shall abide by the Code for Independent Directors as specified in Schedule IV to the companies Act 2013.
3.3 Other Directorships/ Committee Memberships
3.3.1 The Board members are expected to have adequate time and expertise and experience to contribute to effective Board performance Accordingly members should voluntarily limit their directorships in other listed public limited companies in such a way that it does not interfere with their role as Director of the company. The NR Committee shall take into account the nature of and the time involved in a Director Service on other Boards in evaluating the suitability of the individual Director and making its recommendations to the Board.
3.3.2 A Director shall not serve as director in more than 20 companies of which not more than 10 shall be public limited companies.
3.3.3 A Director shall not serve an independent Director in more than 7 listed companies and not more than 3 listed companies in case he is serving as a whole-time Director in any listed company.
3.3.4 A Director shall not be a member in more than 10 committee or act chairman of more than 5 committee across all companies in which he holds directorships.
For the purpose of considering the limit of the committee Audit committee and stakeholder's relationship committee of all public limited companies whether listed or not shall be included and all other companies including private limited companies foreign companies and companies under section 8 of the Companies Act 2013 shall be excluded.
Remuneration policy for Directors key managerial personnel and other employees
1.1 This policy sets out the guiding principles for the Nomination and Remuneration committee for recommending to the Board the remuneration of the directors key managerial personnel and other employees of the company.
2. Terms and Reference:
In this policy the following terms shall have the following meanings: 2.1 Director means a Director appointed to the Board of the company. 2.2 key managerial personnel means (i) The Chief Executive Office or the managing director or the manager; (ii) The company secretary; (iii) The whole-time director; (iv) The chief finance Officer; and (v) Such other office as may be prescribed under the companies Act 2013
2.3 Nomination and Remuneration Committee means the committee constituted by Board in accordance with the provisions of section 178 of the companies Act2013 and reg. 19 of SEBI (Listing obligations and Disclosure Requirements) Regulations 2015.
3.1 Remuneration to Executive Director and Key Managerial Personnel
3.1.1 The Board on the recommendation of the Nomination and Remuneration (NR) committee shall review and approve the remuneration payable to the Executive Director of the company within the overall approved by the shareholders.
3.1.2 The Board on the recommendation of the NR committee shall also review and approve the remuneration payable to the key managerial personnel of the company.
3.1.3 The Remuneration structure to the Executive Director and key managerial personnel shall include the following components:
(i) Basic pay
(ii) Perquisites and Allowances
(iii) Commission (Applicable in case of Executive Directors) (iv) Retrial benefits (v) Annual performance Bonus
3.1.4 The Annual plan and Objectives for Executive committee shall be reviewed by the NR committee and Annual performance Bonus will be approved by the committee based on the achievement against the Annual plan and Objectives.
3.2 Remuneration to Non-Executive Directors
3.2.1 The Board on the recommendation of the Nomination and Remuneration Committee shall review and approve the remuneration payable to the Non-Executive Directors of the Company within the overall limits approved by the shareholders as per provisions of the companies act.
3.2.2 Non-Executive Directors shall be entitled to sitting fees attending the meetings of the Board and the Committees thereof. The Non-Executive Directors shall also be entitled to profit related commission in addition to the sitting fees.
3.3. Remuneration to other employees
3.3.1. Employees shall be assigned grades according to their qualifications and work experience competencies as well as their roles and responsibilities in the organization. Individual remuneration shall be determined within the appropriate grade and shall be based on various factors such as job profile skill sets seniority experience and prevailing remuneration levels for equivalent jobs.
11. STAKEHOLDERS RELATIONSHIP COMMITTEE
The Details of composition of the Committee are given below:
ing=0 cellPadding=2 width=100%>
|Mrs. Shanti Sree Bolleni||Chairperson||NED(I)|
|Mr. Laxminiwas Sharma||Member||NED(I)|
|Mr. K. Harishchandra Prasad||Member||NED(I)|
|Mr. Chetan Rathi||Member||ED|
NED (I): Non Executive Independent Director
ED: Executive Director
The Committee has been delegated with the following powers:
?To redress shareholder and investor complaints relating to transfer of shares Dematerialization of Shares non-receipt of Annual Reports non-receipt of declared dividend and other allied complaints.
?To approve transfer transmission and issue of duplicate / fresh share certificate(s)
?Consolidate and sub-division of share certificates etc. ?To redress approve and dispose off any other complaints transactions and requests etc. received from any shareholder of the company and investor in general.
The Board has delegated the power to process the transfer and transmission of shares to the Registrar and Share Transfer Agents who process share transfers within a week of lodgement in the case of shares held in physical form.
The Company has designated an exclusive e-mail ID called firstname.lastname@example.org for complaints/grievances.
12. RISK MANAGEMENT COMMITTEE
The Details of composition of the Committee are given below:
|Mr. K. Harishchandra Prasad||Chairman||NED(I)|
|Mrs. Shanti Sree Bolleni||Member||NED(I)|
|Mr. Chetan Rathi||Member||ED|
NED (I) : Non Executive Independent Director
ED : Executive Director
Role and Responsibilities of the Committee includes the following: ?Framing of Risk Management Plan and Policy ?Overseeing implementation of Risk Management Plan and Policy ?Monitoring of Risk Management Plan and Policy ?Validating the process of risk management ?Validating the procedure for Risk minimisation.
?Periodically reviewing and evaluating the Risk Management Policy and practices with respect to risk assessment and risk management processes.
?Continually obtaining reasonable assurance from management that all known and emerging risks have been identified and mitigated or managed.
B) RISK MANAGEMENT POLICY:
The Company follows a comprehensive system of Risk Management. The Company has adopted a procedure for assessment and minimization of probable risks. It ensures that all the risks are timely defined and mitigated in accordance with the well-structured risk management process.
13. VIGIL MECHANISM:
Vigil Mechanism Policy has been established by the Company for directors and employees to report genuine concerns pursuant to the provisions of section 177(9) & (10) of the Companies Act 2013. The same has been placed on the website of the Company.
14 . DIRECTOR'S RESPONSIBILITY STATEMENT:
Pursuant to Section 134(5) of the Companies Act 2013 the Board of Directors to the best of their knowledge and ability confirm that:
(a) In the preparation of the annual accounts the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets 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; and
(e) The Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
(f) The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
15. INVESTOR EDUCTION AND PROTECTION FUND (IEPF):
In terms of the provisions of the Companies Act the Company is obliged to transfer dividends which remain unpaid or unclaimed for a period of seven years from the declaration to the credit of the Investor education and Protection Fund established by the Central Government. Accordingly the Members are hereby informed that the 7 years period for payment of the dividend pertaining to financial year 2011-2012 will expire on 30.07.2019 and thereafter the amount standing to the credit in the said account will be transferred to the Investor Education and Protection Fund of the Central Government
The details of Dividend of earlier years remain unclaimed by the shareholders as on 31.03.2019 are as given below:
|Financial Year||Date of Declaration of Dividend||Last Date of Claiming the Dividend||Unclaimed amount as on 31.03.2019||Due date for transfer to Investor Education and Protection Fund (IEPF)|
Pursuant to provisions of Section 124 of Companies Act 2013 the unclaimed dividend within the last date mentioned for the respective years will be transferred to Investor Education and Protection Fund (IEPF) established by Government of India pursuant to Section 125 of the Companies Act 2013.
16. INFORMATION ABOUT THE FINANCIAL PERFORMANCE / FINANCIAL POSITION OF THE
SUBSIDIARIES / ASSOCIATES/ JOINT VENTURES:
M/s B N Rathi Comtrade Private Limited and M/s B N Rathi Industries Private Limited are wholly owned subsidiaries of the Company have made an income of Rs. 53.47 lacs with a Profit of Rs. 52.39 lacs and Income of Rs. 1.08 lacs with a loss of Rs. (44.62) lacs respectively.
17. NAMES OF THE COMPANIES WHICH HAVE BECOME OR CEASED TO BE ITS SUBSIDIARIES JOINT VENTURES OR ASSOCIATE COMPANIES DURING THE YEAR.
B.N. Rathi Comtrade Private Limited and B.N. Rathi Industries Private Limited are wholly owned subsidiaries of the company and there have been no companies which have become or ceased to be the subsidiaries joint ventures or associate companies during the year.
18. EXTRACT OF ANNUAL RETURN:
As required pursuant to section 92(3) of the Companies Act 2013 and rule 12(1) of the Companies (Management and Administration) Rules 2014 an extract of annual return in MGT 9 annexed as a part of this Annual Report
19. STATUTORY AUDITORS:
M/s. Seshachalam & Co Statutory Auditors of the company retire at the ensuing annual general meeting and is eligible for reappointment. As required under the provisions of Section 139 of the Companies Act 2013 the Company has received a written consent from the auditors to their reappointment and a certificate to the effect that their re-appointment if made would be in accordance with the Companies Act 2013 and the rules framed there under and that they have satisfied the criteria provided in Section 141 of the Companies Act 2013.
The Board recommends the re-appointment of M/s. Seshachalam & Co. as the statutory auditors of the Company from the conclusion of this Annual General meeting till the conclusion of the 38th Annual General Meeting.
20. DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SUB SECTION (12) OF
SECTION 143 OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT:
There have been no frauds reported by the auditors u/s 143(12).
21. SECRETARIAL AUDIT:
Pursuant to the provisions of Section 134(3) (f) & Section 204 of the Companies Act 2013 Secretarial audit report as provided by M/s. S. S. Reddy & Associates Practicing Company Secretaries is annexed to this Report as an annexure.
22. QUALIFICATIONS IN AUDIT REPORTS:
Explanations or comments by the Board on every qualification reservation or adverse remark or disclaimer made -
(a) Statutory Auditors Report:
The Board has duly reviewed the Statutory Auditor's Report on the Accounts for the year ended March 31 2019 and has noted that the same does not have any reservation qualification or adverse remarks. However the Board decided to further strengthen the existing system and procedures to meet all kinds of challenges and growth in the market expected in view of the robust capital market in the coming years.
(b) Secretarial Audit Report:
The Board has duly reviewed the Secretarial Audit Report for the year ended March 31 2019 on the Compliances according to the provisions of section 204 of the Companies Act 2013 and the same does not have any reservation qualifications or adverse remarks.
23. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:
The required information as per Sec.134 (3) (m) of the Companies Act 2013 is provided hereunder:
A. Conservation of Energy : Your Company's operations are not energy intensive. Adequate measures have been taken to conserve energy wherever possible by using energy efficient computers and purchase of energy efficient equipment.
B. Technology Absorption : All the Factors mentioned in Rule 8 (3)(b) Technology absorption are not applicable to the Company.
C. Foreign Exchange Earnings and Out Go:
Foreign Exchange Earnings: NIL
Foreign Exchange Outgo: NIL
24. DETAILS RELATING TO DEPOSITS COVERING THE FOLLOWING:
Your Company has not accepted any deposits falling within the meaning of Sec.73 74 & 76 of the Companies Act 2013 read with the Rule 8(v) of Companies (Accounts) Rules 2014 during the financial year under review. Further there are no deposits which are not in compliance with the requirements of Chapter V of the Companies Act 2013.
25. SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS:
During the period under review there were no significant and material orders passed by the regulators or Courts or Tribunals impacting the going concern status and the company's operations in future.
26. DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS:
Your Company has well established procedures for internal control across its various locations commensurate with its size and operations. The organization is adequately staffed with qualified and experienced personnel for implementing and monitoring the internal control environment. The internal audit function is adequately resourced commensurate with the operations of the Company and reports to the Audit Committee of the Board.
The Board has appointed M/s Penmetsa & Associates Chartered Accountant Hyderabad as Internal Auditors in its meeting held 22.05.2019 for the year 2019-20. Deviations are reviewed periodically and due compliances are ensured. Summary of significant Audit observations along with recommendations and its implementations are reviewed by the Audit committee and concerns if any are reported to Board.
The properties and assets of your Company are adequately insured.
28. RISK MANAGEMENT POLICY : The Company follows a comprehensive system of Risk Management. The Company has adopted a procedure for assessment and minimization of probable risks. It ensures that all the risks are timely defined and mitigated in accordance with the well-structured risk management process.
29. SHARE CAPITAL:
The authorised share capital of the Company stands at Rs.60000000/- divided into 6000000 equity shares of Rs. 10/- each.
The paid up share capital of the Company stands at Rs. 50400000 /- divided into 5040000 equity shares of Rs.10/- each.
30. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS:
The company has not given loans Guarantees or made any investments during the year under review.
31. CREDIT & GUARANTEE FACILITIES:
The Company has been availing facilities of Credit and Guarantee as and when required for the business of the Company from HDFC Bank Ltd and Induslnd Bank Ltd. Personal Guarantees were given by Mr. Hari Narayan Rathi Managing Director and Mr.Chetan Rathi Executive Director without any consideration for obtaining Bank Guarantees.
32. COMPOSITION OF CSR COMMITTEE AND CONTENTS OF CSR POLICY:
Since the Company does not have the net worth of Rs. 500 Crore or more or turnover of Rs. 1000 Crore or more or a net profit of Rs. 5 Crore or more during the financial year section 135 of the Companies Act 2013 relating to Corporate Social Responsibility is not applicable and hence the Company need not adopt any Corporate Social Responsibility Policy.
33. RELATED PARTY TRANSACTIONS:
All contracts/arrangements/transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on arm's length basis.
Your Directors draw attention of the members to Note 36 to the financial statement which sets out related party disclosures.
34. DISCLOSURE ABOUT COST AUDIT:
Cost Audit is not applicable to your Company.
35. AMENDMENTS TO POLICIES:
Pursuant to SEBI circular(s) the company has amended the following policies and the same were updated on the website of the company:
1. Board Evaluation Policy
2. Nomination & Remuneration Policy
3. Policy of Material Subsidiary
4. Related Party Policy
5. Risk Management Policy
6. Vigil Mechanism Policy
7. Code of Conduct for Prevention of Insiders Trading.
36. STATEMENT SHOWING THE NAMES OF THE TOP TEN EMPLOYEES IN TERMS OF REMUNERATION DRAWN AND THE NAME OF EVERY EMPLOYEE AS PER Rule 5(2) & (3) of the Companies(Appointment & Remuneration) Rules 2014 :
A statement showing the names of the top ten employees in terms of remuneration drawn and the name of every employee is annexed to this Annual report as annexure A
Further none of the employees is drawing a remuneration of Rs. 10200000/- and above per annum or Rs.850000/- and above in aggregate per month the limits prescribed under Section 197 of the Companies Act 2013
37. RATIO OF REMUNERATION TO EACH DIRECTOR:
Under section 197(12) of the Companies Act 2013 and Rule 5(1of the Companies(Appointment & Remuneration) Rules 2014 read with Schedule V of the Companies Act 2013 a remuneration ratio of 8:1 is being paid to Shri. Chetan Rathi Whole-Time director of the Company and a ratio of 10:1 is being paid to Shri. Hari Narayan Rathi Managing Director of the Company.
38. CORPORATE GOVERNANCE AND SHAREHOLDERS INFORMATION:
Since the paid up capital of the Company is less than Rs. 10 Crores and Net worth of the Company is less than Rs. 25 Crores Corporate Governance is Not Applicable.
39. SECRETARIAL STANDARDS
The Company is in compliance with the applicable secretarial standards.
40. WITHDRAWAL OF MERGER:
The Board meeting held on 10.01.2018 the company decided to amalgamate with B N Rathi Comtrade Private Limited. An application with the Hon'ble NCLT was made in this regard and said amalgamation had been withdrawn in the meeting held on 24.10.2018 due to unforeseen regulatory issues being faced by the Transferor Company M/s B N Rathi Comtrade Private Limited.
41. NON-EXECUTIVE DIRECTORS' COMPENSATION AND DISCLOSURES
None of the Independent / Non-Executive Directors has any pecuniary relationship or transactions with the Company which in the Judgment of the Board may affect the independence of the Directors.
42. CEO/ CFO Certification
The Managing Director cum CEO and CFO certification of the financial statements for the year 2018-19 is annexed in this Annual Report.
43. BOARD EVALUATION:
The Board of Directors has carried out an annual evaluation of its own performance board committees and individual directors pursuant to the provisions of the Act and SEBI Listing Regulations.
The performance of the board was evaluated by the board after seeking inputs from all the directors on the basis of criteria such as the board composition and structure effectiveness of board processes information and functioning etc.
The performance of the committees was evaluated by the board after seeking inputs from the committee members on the basis of criteria such as the composition of committees effectiveness of committee meetings etc.
The above criteria are based on the Guidance Note on Board Evaluation issued by the Securities and Exchange Board of India on January 5 2017
In a separate meeting of independent directors performance of non-independent directors the board as a whole and the Chairman of the Company was evaluated taking into account the views of executive directors and nonexecutive directors.
The Board and the Nomination and Remuneration Committee reviewed the performance of individual directors on the basis of criteria such as the contribution of the individual director to the board and committee meetings like preparedness on the issues to be discussed meaningful and constructive contribution and inputs in meetings etc.
In the board meeting that followed the meeting of the independent directors and meeting of Nomination and Remuneration Committee the performance of the board its committees and individual directors was also discussed.
Performance evaluation of independent directors was done by the entire board excluding the independent director being evaluated.
44. CODE OF CONDUCT FOR THE PREVENTION OF INSIDER TRADING
The Board of Directors has adopted the Insider Trading Policy in accordance with the requirements of the SEBI (Prohibition of Insider Trading) Regulation 2015 and the applicable Securities laws. The Insider Trading Policy of the Company lays down guidelines and procedures to be followed and disclosures to be made while dealing with shares of the Company as well as the consequences of violation. The policy has been formulated to regulate monitor and ensure reporting of deals by employees and to maintain the highest ethical standards of dealing in Company securities.
The Insider Trading Policy of the Company covering code of practices and procedures for fair disclosure of unpublished price sensitive information and code of conduct for the prevention of insider trading is available on our website (www.bnrsecurities.com)
45. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITION AND REDRESSAL) ACT 2013
The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at workplace (Prevention Prohibition and Redressal) Act 2013. Internal Complaint Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees are covered under this policy. The following is the summary of sexual harassment complaints received and disposed during the calendar year.
No. of complaints received : Nil
No. of complaints disposed off : Nil
Your Directors also wish to place on record their appreciation of business constituents banks and other financial institutions and shareholders of the Company SEBI BSE NSE MCX NSDL CDSL Canara Bank HDFC Bank etc. for their continued support for the growth of the Company.
|For and on behalf of the Board|
|B.N. Rathi Securities Limited|
|Place : Hyderabad||Laxminiwas Sharma|
|Date : 22.05.2019||Chairman|