Your Directors have pleasure in presenting the Twenty Fourth Annual Report of yourCompany together with Audited Accounts for the Financial Year ended 31st March 2019.
The summarized Audited Financial Results for the year ended 31stMarch2019 along withcomparative figures for the previous year is as under: (Rs. in Lakhs)
|Particulars ||Standalone ||consolidated |
| ||31st March 2019 ||31st March 2018 ||31st March 2019 ||31st March 2018 |
|Total Income ||4401.25 ||7843.51 ||4401.25 ||7850.15 |
|Total Expenditure ||6224.22 ||9271.08 ||6230.53 ||9321.82 |
|Profit /(loss) before exceptional items and tax ||(1822.97) ||(1427.56) ||(1829.28) ||(1471.66) |
|Tax expenses (Deferred Tax) ||150.07 ||217.52 ||106.74 ||219.27 |
|Profit/ (Loss) for the period ||(1973.04) ||(1645.09) ||(1936.02) ||(1690.93) |
|Profit of Non controlling Interest/ Minority interes ||- ||- ||(52.01) ||17.28 |
|Exceptional items ||- ||- ||100.99 ||- |
|Total Comprehensive Income for the year ||(1973.04) ||(1645.09) ||(1887.05) ||(1673.65) |
Consolidated Operating Results
The consolidated revenue from operation was Rs. 4401.26 lakhs in comparison toRs.7850.15 Lakhs of the previous year. The consolidated net loss for the year 2019 was Rs.1887.05 Lakhs as against FY 2018 of Rs.1673.65 Lakhs.
Standalone Operating Results
The sales and operating income was Rs.4401.25 in comparison to Rs7843.51 Lakhs in theprevious year. The operating Loss for the year under review is Rs.1973.04 Lakhs as againstRs.1645.09 Lakhs for the previous year.
Our FY19 revenues has increased by 46% from Rs.29.70 Crs to Rs.43.35 Crs on sale ofManufactured goods which mainly due to the increase in the UK and emerging market. We haverecorded steady growth in all other markets except the Emerging Markets
Subsidiary Company & Consolidated Financial Results
The consolidated financial results comprise of M/s. Bafna Pharmaceuticals Limited andits subsidiary M/s. Bafna Life styles Remedies Limited. Consolidated Financial Statementsfor the year ended 31stMarch2019 forms part of the Annual Report.
As required under the SEBI (Listing Obligations and Disclosure Requirement)Regulation2015 the consolidated financial statements of the Company and its subsidiaryare attached. The consolidated financial statements have been prepared in accordance withthe relevant accounting standards as prescribed under Section 133 of theCompaniesAct2013.The consolidated financial statements disclose the assets liabilitiesincome expenses and other details of the Company and its subsidiaries.
Material/significant changes in subsidiary:
Until four years back the Company's subsidiary Company M/s. Bafna Lifestyle RemediesLimited (BLRL) was manufacturing Raricap tablets for strides shasun. The company had toclose down operations owing to certain technical audit issues raised by them and sincethen the company has not been a going concern. As a process of initiating the closureprocess during the year all items of PPE (Fixed assets) have been disposed off andoutstanding balance of loan with Holding company has been written back.
A statement pursuant to Section 129 of the Companies Act 2013 relating to subsidiarycompanies is attached and forms part of the report.
Change in Capital Structure
(Rs. In Lakhs)
|Particulars ||31st March 2019 ||31st March2018 |
|Authorized Capital ||4000.00 ||4000.00 |
|Issued Subscribed & Paid up Capital ||2365.63 ||2365.63 |
There is no change in share capital structure during the period.
The company has not accepted / invited any deposits from the public in terms of Section73 of the Companies Act2013
Due to losses the Company has not declared any dividend for the Financial Year.
The Company has not transferred any amount to the general reserves during the year.
Material changes and commitments affecting the financial position of the Company:
There have been no material changes and commitments if any affecting the financialposition of the Company which have occurred between the end of the financial year of theCompany to which the financial statements relate and the date of the report.
Details of significant and material orders passed by the regulators or courts ortribunals impacting the going concern status and company's operations in future;
ARIES an Operational Creditor has filed under Section 9 of The Insolvency andBankruptcy Code 2016 a Petition with The National Company Law Tribunal (NCLT) SingleBench Chennai which has been admitted as CP/682/IB/2017 against the Company. The NationalCompany Law Tribunal Single Bench Chennai has passed an order on 16th July2018 for initiation of Corporate Insolvency Resolution Process (CIRP) against the Companyand declared moratorium and appointed Mr. Gopalsamy Ganesh Babu as an Interim ResolutionProfessional (IRP). IRP Constituted Committee of Creditors (COC) and subsequently Mr.Radhakrishnan Dharmarajan was appointed as Resolution Professional (RP).
Information Memorandum was presented to COC members after obtaining non disclosureagreement.
UK MHRA audit was expected to happen by January 2019.COC in various meeting dealt ongetting through the audit . since UK MHRA islifeline for the Company Company presented12A withdrawn Plan which did not garner requisite voting from COC.
Accordingly Mr. Mahaveer Chand Bafna (Resolution Applicant) who is also the promoterand is not prohibited u/s. 29(A) of the IBC 2016 submitted resolution plan which wasapproved by the COC.
The resolution Plan approved by COC was submitted to the Honorable NCLT Chennai forapproval. Honourable NCLT Chennai had approved the resolution plan vide its order dated01st February 2019 and copy of the said order was received by the company of 04thFebuary 2019The same was intimated to the Stock exchanges on 05th February 2019
The salient features of Resolution Plan.:-Payments as per resolution plan: Financialcreditors-
70% of admitted claims of all financial creditors i.e SBI IDBI DCB DBSBOC will bepayable. Total claims admitted Rs.49.23 Crs (payment proposed Rs.34.46 Crs.)
Operational Creditors- proposes to side an amount of Rs. 6.53 Crs towards operationalCreditors. The Operational Creditors shall be paid 100% of the Net Claims amount subjectto a maximum aggregate pay- out of Rs 6.53 Crs. In case Net claim amount exceedsaggregate of Rs 6.53. Crs the operational creditors shall be paid such Rs.6.53 Crs onpro-rata basis of the net claim amount.
The company had also Allowed window period of 30 days from the date of approval (01 stFeb 2019) of the Plan by the Honorable NCLT Chennai till 04th March 2019 forthe operational creditors to file their claims ESI and PF dues- Rs.1.94Crs Workmen dues-Rs.0.24 Crs Employees dues- Rs.0.32 Crs Statutory liabilities- Rs.0.13 Crs Otherliabilities- Rs.0.01 Crs Contigent liabilities- Rs. NIL
For the purpose of resolution plan the liability arising out of the said case if anyis being considered as deemed crystallised as on the Resolution Plan approval date. Hencethe Resolution Applicant is not disputing the above liabilities any further and insteadconsidering them as deemed crystalised and admitted. Simultaneously the ResolutionApplicant is proposing to pay NIL value against all the contigent liabilities and legalcases pending against the Company.
Further any liability crystalising out of the contigent liabilities or disputed legalcases of the Corporate Debtor or any other unknown or unclaimed liability pertaining to atransaction or incident dating to a period prior to the Insolvency Commencement date orduring the CIRP which does not find a place in the approved Resolution Plan shall bedeemed to have lapsed on the approval of the plan; and the Corporate Debtor shall bedeemed to have been duly discharged from all legal liability arising from such antecedentclaims.
The approved Resolution Plan also covers the writing off Slow Moving Inventories andDebtors any Recovery from such current assets shall be written back in the year ofRecovery. Any Long pending dues from suppliers of the earlier years which could not berecovered in cash or kind shall also be written off any Recovery from such current assetsshall be written back in the year of Recovery.
Equity shareholders- the capital of existing equity shareholders shall be reduced to10% of the current holding i.e 2.36 crores shall be reduced to 0.236 crores.
Investment in working capital- The additional need based working capital of Rs.10Crores shall be invested in the Corporate Debtor for revival of the organization.
Investment in fixed assets- The Resolution Applicant and his investors shall invest inCapex which shall amount to Rs.3.5 Crores in year 1.
Management and control of business- the Management of Corporate Debtor shall vest inthe re-constituted Board of Directors and Resolution Applicant and his investors shalljointly appoint the Directors on the Board.
Resolution Plan will be monitored by monitoring committee.
A monitoring committee was set up vide Meeting on 13.02.2019 wherein RadhakrishnanDharmarajan (RP) S David (SBI representative) Nagabhusanam (IDBI representative)Sridhar and Hema (Corporate debtor representatives) were appointed as the members ofMonitoring Committee A second monitoring committee was conducted on 07.03.2019 and thematter of M/.s Saravana Global Holdings who filed an appeal in the NCLAT Delhi wasdiscussed and Committee appraised COC members about the same.The matter was discussed andcommittee was advised for further course of action .
A third monitoring committee was held on 04.04.2019 and discussed on the updates on theappeal and committee advised COC to be represented and file their Written submissionsthrough the Lead Bank M/s. STATE BANK OF INDIA.
The Resolution Applicant Mr. Bafna Mahaveer Chand also informed that the MHRA Audit isscheduled on 13.05.2019 . As time again discussed in various COC Meetings during the CIRPprocess of Bafna where in the COC members discussed and deliberated at length regardingthe importance of MHRA audit which is paramount and value enhancement for the company. Anyfailure on MHRA accreditation the value of the company will be eroded and may not be keptas a going concern. The members of the COC had deferred the publication of expressions ofinterest citing criticality of MHRA accreditation as one of the major reasons and thefact that any delay in MHRA accreditation would impact the going concern and viability ofthe company and this was also one of the key agenda in the First COC minutes (dated10.8.2018) . To keep the company as Going Concern and to conduct the UK-MHRA auditsuccessfully upon the request from the Monitoring Committee the resolution applicantcame forward to arrange an unsecured loan whch would help to complete the MHRA audit intime and to enhance value of the assets of the company to all the stake holders Appealwith NCLAT
Aggrieved by the Order of NCLT Chennai Saravana Global Holdings Limited and P Shobha(minority shareholders) filed an appeal to National Company Law Appellate Tribunal NewDelhi (NCLAT). NCLAT vide its order dated 28th February 2019 has passed the followingOrder.:-Until further order the monitoring committee will not handover the possession ofcorporate debtor to the Resolution Applicant if not yet handed over. In case thepossession of the corporate debtor has been handed over the resolution applicant willmaintain the status quo and will not alienate transfer or create third party encumbranceof movable or immovable property of the corporate debtor. The concerned person will ensurethat the company remains a going concern. The case was posted to further hearing on 02ndApril 2019 The case was posted to further hearing on various dated namely 25thApril 2019 02nd May 2019 and 07th May 2019 the Honourable NCLATinstructed the resposdents to file their written submission not more than 3 pages and thejudgement was reserved on 09th May 2019 by NCLAT. Conclusion In view of thepending proceedings against implementation of approved Resolution Plan . No Revision inthe Financial statement is considered . However the financial statement will be restatedbased on the outcome of the order to be passed by Honorable NCLAT Delhi as per the planapproved by Honorable NCLT Chennai .
Hence The process of Assessment of fair values of assets and liabilities detailed inthe Resolution Plan and restatement thereof in the accounts is being deferred to becarried out in the ensuing Financial Year on account of the above mentioned happeningswhich had begun during the reporting period and has continued beyond the year end upto thedate of Board meeting when the accounts got approved.
Further a criminal case was filed by M/s. Abhilash Chemicals Private Limited againstall the Directors of the Company under Section 138 of the Negotiable Instruments Act fordishonor of cheque.
Further a criminal case was filed by M/s. Aarti Industries Limited against all theDirectors of the Company under Section 138 of the Negotiable Instruments Act for dishonorof cheque.
The above cases are pending before respective court/tribunal. Your Board of Directorsof the Company are taking necessary steps to resolve the pending litigations.
Change in the nature of business
Your Company is engaged in manufacture of pharmaceutical products. There is no changein the nature of business during the year compared to previous year.
Risk Management Policy:
The Company has in place a mechanism to identify assess monitor and mitigate variousrisks to key business objectives. Major risks identified by the businesses and functionsare systematically addressed through mitigating actions on a continuing basis.
Adequacy of Internal Financial Controls with reference to the Financial Statements:
The company has adequate internal financial controls such as defining authority toauthorize financial transactions Internal Audit and review of financial statementmechanism in vogue.
The Composition of Board and number of meetings attended by them are given in thecorporate governance report. Mr. R.Dwarakanathan Non-executive Independent Director wasresigned from the Board with effect from 21st August 2018. The Board wishes toplace on record the valuable services rendered by Mr. R.Dwarakanathan during his tenure.
Mr. Babulal Kamlesh Kumar was appointed as Non-executive Independent Director on 08thFebruary 2019 for a period of five years. The Board recommends his appointment asNon-executive Independent Director.
The Independent Directors have furnished necessary declarations as required underCompanies Act 2013.
Directors Liable to Retire by Rotation
Mr. Paras Bafna being non independent director is liable to retire by rotation interms of Section 152 of the Companies Act 2013 and being eligible offered himself forre-appointment.
The brief resume of the Directors seeking appointment/ reappointment and otherinformation have been detailed in the Notice. Your Board recommends the aboveappointments/reappointment of Directors in the best interest of the Company.
Details of KMP:
According to section 203 of the Companies Act2013 the following are the KeyManagerial Personnel of the Company Mr. Mahaveer Chand Bafna- Managing Director Mr. M.Sridhar- Chief Financial Officer Mr. Jitendra Kumar Pal- Company Secretary
As per the provisions of the Act R. Sathyanarayanan & Co Chartered AccountantsChennai (FRN003656S) Statutory Auditors of the Company was appointed for a period of fiveyears at the annual general meeting held on 2017 till the conclusion of 27th annualgeneral meeting. The requirement for the annual ratification of auditor's appointment atthe AGM has been omitted pursuant to Companies (Amendment) Act 2017 notified on May 072018.
They have confirmed their eligibility to the effect that their re-appointment if madewould be within the prescribed limits under the Act and that they are not disqualified forre-appointment. The Notes on financial statement referred to in the Auditors' Report areself-explanatory and do not call for any further comments. The Auditors' Report doescontain some qualification reservation adverse remark or disclaimer for which reply hasbeen given in Directors Report.
M/s. R. Sathyanarayanan & Co Chartered Accountants have given their consent forappointment and also confirmed that their appointment would be within the prescribedlimits under Section 141 of the Companies Act 2013.
The report of Auditors and notes forming part of the Accounts are attached along withthe Annual Report.
Comments on Auditors'Report:
Reply to the qualiications made in Auditor's report:
|Qualification ||Reply |
|Major Components of Current Assets Receivables outstanding for over one year Long outstanding Advances to suppliers besides Stock of spares and Stores which have all not been tested for recovery/impairment as per IND AS 36 consequently not restated at fair values in accordance IND AS 113 and not provisioned in the accounts. ||In view of the pending proceedings against implementation of approved Resolution Plan . No Revision in the Financial statement is considered . However the financial statement will be restated based on the outcome of the order to be passed by Honorable NCLAT Delhi as per the plan approved by Honorable NCLT Chennai. |
|Major Components of Current Liabilities Sundry creditors whose balances are yet to be confi rmed hence not restated at fair values in accordance with IND AS 113. ||The process of restructuring of fair values of assets and liabilities detailed in the Resolution Plan and restatement thereof in the accounts is being deferred to be carried out in the ensuing Financial Year on account of the pending proceedings Before NCLAT Delhi. |
|a) Certain Balances of Debtors Creditors and deposits with Corporate Bodies are subject to Con firmation. ||The Company has sent confirmation letters to the debtors creditors and other corporate bodiesbut could not get the confirmation on time.Hooever all the efforts has been taken to obtain the same. These dues are pending for Long Time. |
|b) Closing balances pertaining to advances given to suppliers of materials and others some of them remain unconfirmed. || |
|Statutory Dues ||The company is undergoing Financial Constraints due to which some statutory Dues are pending . However the company is taking sincere efforts to resolve the issue. |
|The maintenance of Stocks of Stores and spares requires to be assessed in respect of usefulness and value carried in the books of accounts. During the course of our audit we observed certain instances of non-deduction of TDS on eligible payments made during the year. ||The company is taking adequate steps to ascertain the usefulness and based on the recommendations of the Management will be decided for write off or sold The company will ensure that this has been taken utmost care from the current Financial Year. |
Cost Audit specified under Section 148 of the Companies Act 2013 does not apply to theCompany since the turnover of the Company is less than the limit prescribed.
The Company's shares are listed at(i)BSE Limited(BSE) with Scrip Code No.532989 andat(ii) National Stock Exchange of India Limited with Scrip symbol BAFNAPHARM;
Particulars of Employees a) Details of employees employed through out thefinancial year was in receipt of remuneration for that financial year in the aggregatewas not less than Rs.1.02 Crores. -Nil-b) Details of employees employed for a part of thefinancial year was in receipt of remuneration for any part of that year at a rate whichin the aggregate was not less than Rs. Eight Lakhs and Fifty Thousand per month -Nil -c)Details of employees if employed through out the financial year or part there of was inreceipt of remuneration in that year which in the aggregateor as the case may be at arate which in the aggregate is in excess of that drawn by the managing director orwhole-time director or manager and holds by himself or along with his spouse and dependentchildren not less than two percent of the equity shares of the company. - Nil -Theinformation required pursuant to Section 197 read with rule 5 of the Companies(Appointment and Remuneration of Managerial Personnel)Rules2014 in respect of employeesof the Company and Rules5(2)of The Companies (Appointment and Remuneration of ManagerialPersonnel) Rules2014 with respect to the statement showing the names of the top tenemployees in terms of remuneration drawn will be provided upon request. In terms ofSection 136 of the Act the reports and accounts are being sent to the members and othersentitled thereto excluding the information on employees 'particulars which is availablefor inspection by the members at the Registered office of the company during businesshours on working days of the company upto the date of ensuing Annual General Meeting. Ifany member is interested in inspecting the same such member may write to the CompanySecretary in advance.
Foreign Exchange Earnings and Outgo
The particulars in respect of Foreign Exchange Earnings and Outgo as required underSection 134) of the Companies Act 2013 and Rule 8(3) of the Companies (Accounts) Rules2014 are given as in Annexure to this report.
Human Resource Industrial Relations Environment Occupational Health and Safety
The Company is continuously focusing on managing talent and increasingly systematizingthe HR processes. We have excellent industrial relations across all facilities includingcorporate office and strongly believe that the workers will continue to work towardsprofitable and productive company.
The number of employees as on 31st March2019 was 258 as against 258 duringFY 2017-18..
Conservation of Energy Technology Absorption & Research and Development (R &D)
The company is conscious of its responsibility to conserve the energy and has takenmeasures in relation to conservation of energy and technology absorption. The particularsin respect to conservation of energy Technology Absorption & Research and Developmentwere given in the annexure to the Board's Report.
Insider Trading Regulations
Based on the requirements under SEBI (Prohibition of Insider Trading) Regulations2005 as amended from time to time the code of conduct for prevention of insider tradingand the code for corporate disclosures are in force. The Company has adopted a Code ofConduct for Prevention of Insider Trading with a view to regulate trading in securities bythe Directors and designated persons of the Company as per SEBI (Prohibition of InsiderTrading) Regulations2015.
Report on Corporate Governance and Certificate of the Auditors of your Companyregarding compliance of the conditions of Corporate Governance as stipulated in Regulation15 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 with theStock Exchanges are enclosed elsewhere in the Annual Report and forms part of thisreport.
Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act2013
The Board of Directors has approved policy as per the said Act. and an InternalComplaints Committee was constituted with following members:
|(i) ||Smt. S. Hemalatha (General Manager - Operation) ||- Chairperson |
|(ii) ||Smt. S. Geetha (Manager Accounts) ||- Member |
|(iii) ||Smt. K. Ashitha (Admin-in-charge) ||- Member |
The committee placed certificate before the Board of Directors on the status ofcompliance of the Act. As per the certificate provided by the said committee nocomplaints were received during the year & that there are no complaints pending as on31st March 2019.
Particulars of Loans Guarantee and Investment under Section 186 of Companies Act2013:
During the year under review the investments made the loans advanced guaranteesgiven and securities provided are within the limits prescribed under Section 186 of theCompanies Act2013. Refer Notes to accounts for the above particulars.
Particulars of contracts or arrangements with Related parties referred to inSub-Section(1)of Section188:
The transactions entered into by the Company with the related parties were in theordinary course of business and at arm's length basis. The particulars of transactions arementioned in Form AOC 2 and is annexed to this report.
Corporate Social Responsibility
Corporate Social Responsibility prescribed under the provisions of Sec 135 of theCompanies Act 2013 is not applicable to the Company But however Company is committed toimprove the quality of life of the work force and their families and also the communityand society at large. The Company believes in undertaking business in such a way that itleads to overall development of all stake holders and society.
Secretarial Audit for the FY 2018-19
In terms of Section 204 of the Companies Act 2013 the rules made there under &other applicable provisions if any the company is required to appoint Secretarial Auditor to carry out secretarial Audit of the Company. Your Board of Directors has appointedM/s. A.K. Jain & Associates Practicing Company Secretaries Chennai for purpose ofSecretarial Audit for the FY 2018-19 at the Board Meeting held on 08.02.2019.
As required under section 204(1) of the Companies Act2013 the Company has obtained asecretarial audit report. The copy of the Secretarial Audit report in MR3 is attached asan annexure to the Director's Report.
The qualiications made by the Secretarial Auditor and the explanation to theobservations are as follows:
|QUALIFICATION ||MANAGEMENT'S EXPLANATION |
|a) The Company has not disclosed the Voting Results of the Annual General Meeting held on 29th September 2018 within the time prescribed under Regulation 44 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015. ||The delay in reporting was due to inadvertence and unintentional. The Company is taking utmost care to regularize the Company's compliance reporting mechanism. The Board assures that the Company will report all the disclosures within the time prescribed. |
|b) The Company has issued and allotted 5000000 equity shares of Rs.10/- each on conversion of warrants on preferential basis on 12.02.2018 which are yet to be listed on Stock Exchanges under Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2009. ||The delay in listing is due to some clarification required by the Stock Exchanges. The Company has got listing and trading approval for 5000000 shares allotted on preferential basis on 20th May 2019. |
|c) The composition of board of directors of the company is not in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 for the quarter ended September 2018 and December 2018. ||The Company was in Corporate Insolvency Resolution Process with effect from 16th July 2018 under IBC 2016. One of the Independent Director R. Dwarkanathan resigned due to personal reasons. The management has appointed a director in his place and regularized. |
|d) The composition of the nomination and remuneration committee of the company is not in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 for the quarter ended September 2018 and December 2018. ||The Company was in Corporate Insolvency Resolution Process with effect from 16th July 2018 under IBC 2016. One of the Independent Director R. Dwarkanathan resigned due to personal reasons. The management has appointed a director in his place and regularized. |
|e) The Company has received notice from BSE and NSE levying SOP Fines under Regulation 108 of SEBI (Issue of capital and disclosure requirements) Regulations 2009 amounting to Rs.1792014/- and Rs. 1862814/- respectively for delay in submission of complete listing application for allotment of 5000000 equity shares of Rs.10/- each on conversion of warrants on preferential basis with the Stock Exchanges i.e. NSE and BSE. ||The delay in listing is due to some clarification required by the Stock Exchanges. However the Company has paid the necessary Fines to both the exchanges. The Company has also got listing and trading approval for 5000000 shares allotted on preferential basis on 20th May 2019. |
Appointment of M/s.Soleti Associates. Chartered Accountant Chennai as InternalAuditors & approved their Scope Functions Periodicity & Methodology
In terms of Section 138 of the Companies Act2013 & other applicable provisions ifany Board of Directors at the Board Meeting held on 28.05.2018 has appointed Mr.CARengasubramaniamPartner of M/s.Soleti Associates Chartered Accountants Chennai asInternal Auditors and further approved their Scope Functions and Periodicity &Methodology
In terms of Section 177 of the Companies Act 2013 and other applicable provisions ifany and as per the Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements)Regulations2015 the Audit committee comprises of 4 Directors out of which 3 areNon-Executive Independent Directors. The terms of reference of Audit Committee includesmatters specified in section 177 of the Companies Act 2013 and Regulation 18 of SEBI(Listing Obligations and Disclosure requirements) Regulations 2015.
The Audit Committee was re-constituted with effect from 08th February 2019and its composition is as follows:-Mr. V Rajamani- Chairman Mr. Sunil Bafna- Member Mr.Babulal Kamlesh Kumar Member Mr. Paras Bafna- Member
Nomination & Remuneration Committee
In terms of Section 178 of the Companies Act 2013 & other applicable provisionsif any Board of Directors at the Board Meeting held on 30.05.2014 has renamed theexisting"Remuneration Committee"of the Board of Directors as"Nomination&Remuneration Committee". The Policy of Nomination & Remuneration Committeewas detailed in the corporate governance report. The constitution terms and referencesand other details are elaborated in the Corporate Governance report annexed with thisreport.
The Nomination and Remuneration Committee was re-constituted with effect from 08thFebruary 2019 and its composition is as follows:-Mr. Sunil Bafna- Chairman Mr. V Rajamani-Member Mr. Babulal Kamlesh Kumar Member
Stakeholders Relationship Committee
In terms of Section 178 of the CompaniesAct2013 & other applicable provisions ifany Board of Directors at their meeting held on 30.05.2014 renamed the existing"Investor Grievance & Share Transfer Committee" as "StakeholdersRelationship Committee". The constitution terms and references and other details areelaborated in the Corporate Governance report annexed with this report.
Management Discussion and Analysis Report
Management Discussion and Analysis Report as required under the Listing Agreement withthe Stock Exchange is enclosed in the Annual Report and forms part of this Report. CertainStatements in the report may be forward-looking. Many factors may affect the actualresults which could be different from what the Directors envisage in terms of futureperformance & outlook.
Extract of Annual Return:
The details forming part of the extract of the Annual Return in form MGT-9 is annexedalong with the Director's Report.
Number of Board Meetings:
The Board of Directors met 6 times during the year under review and the gap between 2meetings did not exceed 120 days.
Directors Responsibility Statement
Your Directors wish to inform that the Audited Accounts contains Financial Statementsfor the financial year ended31st March2019 are in full conformity with the requirementsof the Companies Act2013.They believe that the Financial Statements reflect fairly theform and substance of transaction carried out during the year and reasonably present yourCompany's financial conditions and result of operations.
Your Directors further confirm that in preparation of the Annual Accounts
The applicable accounting standards had been followed and wherever requiredproper explanations relating to material departures have been given;
The Directors have selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent to give atrue and fair view of the state of affairs of the Company at the end of the financial yearand of the loss of the Company for that period;
Proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;
The Accounts have been prepared on a "going concern basis.
The directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.
The directors had devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.
Electronic copies of the Annual Report 2018-19 and the Notice of the 24thAGM are sent to all members whose email addresses are registered with the Company /depository partificipants. For members who have not registered their email addressesphysical copies are sent in the permitted mode.
Acknowledgement and Appreciation
Your Directors would like to thank Company's Bankers - SBI DBS DCB BOC& IDBI fortheir continued support and they would also like to express their gratitude for theco-operation and assistance extended to the Company by its Customers Suppliers TechnicalConsultants Contractors Government and Local Authorities etc. The Directors also wishto thank all its Shareholders for their unstinted support. The Directors would like tosincerely thank and place on record their appreciation of the consistent and dedicatedservices of the employees at all levels who have immensely contributed to the performanceof the Company during the period under review.
| || ||On behalf of the Board of Directors |
| || ||For BAFNA PHARMACEUTICALS LIMITED |
| || ||(CIN L24294TN1995PLC030698) |
| ||Sd/- ||Sd/- |
| ||Paras Bafna ||Bafna Mahaveer Chand |
|Place: Chennai ||(DIN: 01933663) ||(DIN: 01458211) |
|Date: 27.05.2019 ||Whole Time Director ||Chairman & Managing Director |