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Basant Agro Tech (India) Ltd.

BSE: 524687 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE473E01021
BSE 00:00 | 30 Jun 19.85 -0.25
(-1.24%)
OPEN

20.10

HIGH

20.40

LOW

19.70

NSE 05:30 | 01 Jan Basant Agro Tech (India) Ltd
OPEN 20.10
PREVIOUS CLOSE 20.10
VOLUME 79587
52-Week high 29.40
52-Week low 10.58
P/E 9.45
Mkt Cap.(Rs cr) 180
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.10
CLOSE 20.10
VOLUME 79587
52-Week high 29.40
52-Week low 10.58
P/E 9.45
Mkt Cap.(Rs cr) 180
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Basant Agro Tech (India) Ltd. (BASANTAGROTECH) - Director Report

Company director report

Dear members

Your Directors have pleasure in presenting the 31st Annual Report of theCompany together with the audited statements of account for the financial year ended March31 2021.

1. FINANCIAL RESULTS

(Rs. In lakhs)

1. FINANCIAL RESULTS : 2020-21 2019-20
Sales 32297.50 28593.65
Other Income 16.95 30.81
Total Income 32314.45 28624.46
Profit before interest & depreciation exceptional items and Tax 1844.49 1982.43
Less: Financial Expenses 403.40 765.19
Less:- Depreciation 494.02 482.71
Profit before tax 947.07 734.53
Tax expense (net) 68.54 50.39
Profit after tax 878.53 784.92
Other Comprehensive Income (0.18) (0.13)
Total Comprehensive Income for the period 878.35 784.79
Earning Per Share (face value of Rs. 1/- each) 0.97 0.87

2. Corporate Overview and the state of Companyfs affairs

The year 2020-21 was excellent for the company's performance. The revenue fromoperation of the Company has increased and touched a new high of Rs. 322.98 Cr even in thechallenging period of COVID- 19 pandemic and uncertainty in the market. The year 2020-21saw a very good monsoon which was initially lagging but picked up in the later months andfinally ended with an excess of 10% over long range average. During the financial yearthere was huge demand for the fertilisers and to meet this excess demand the companyrevamped the existing resources and enhanced the production capacity by 30% of our Singlesupper phosphate plant at Jalgaon Maharashtra and Neemuch Madhya Pradesh. The popularityof our brand "Krishi Sanjiwani" has increased and its known by its good quality.

During the financial year seeds division kept his focus on the sale of high margin ownresearch bases variety of seeds. The turnover of the seeds division maintain during theyear. The R & D division of the seeds mainly concentrate on development of new highyielding varieties of seeds.

With the use of innovative technology our cold storage provided effective and efficientservices to the customers and result of which the demand for our cold storage hasincreased and to grab the opportunity of this demand we are moving aggressively towardsthe expansion of our cold storage unit.

Our recent product of LABSA is very well accepted by the customer as quality of theproduct is excellent. We positively approaching the new customers and we are very muchsure that this product will contribute major in the turnover of the company in comingyears.

With the looking up demand of pipe industry and its importance in agriculture industrywe put positive step into manufacture of sprinkler pipes and flat drip pipes to grab thedemand of it in the agriculture sector. It's our forward integration. The year 2020-21 hasstarted with COVID -19 pandemic. There was a lot of uncertainty in all the industries inthe world and also in India. In spite of this difficult situation company has performedwell. The Company started its operations smoothly while taking full safety precautions andprotocol lay down by the Government. During the year the company along with otherindustries has faced the several issues such as logistic movement restriction migrationsof labour delay and non-availability of raw material delay and non-availability oftransportation trucks and drivers delay and non -availability of spare parts require forthe operations of machinery in the factory etc. The year 2021-22 start with good monsoonas result of which the performance of the company in first quarter was excellent and weare very much sure that during the year Company will achieve new high of turnover and keepits growth momentum.

3. DIVIDEND :

The Board of Directors are pleased to recommend the dividend of Rs. 0.06 per share (6%)for the year 2020-21 on equity share capital subject to the approval of the shareholdersat the Annual General Meeting (Previous Year 5%) which shall absorb Rs. 54.38 lakhs(Previous Year Rs. 45.31 lakhs).

4. CAPITAL EXPENDITURE INCURRED :

The Company had incurred Rs.483.88 lakhs as the capital expenditure during the yearunder review (Previous Year Rs.267.59 lakhs).

6. DIRECTORS/ KEY MANAGERIAL PERSONNEL (KMP) DETAILS:

Pursuant to the provisions of sub section (6) of section 152 the Companies Act 2013Shri. Deepak Bhartia is liable to retire by rotation at the ensuing Annual General Meetingand being eligible offers himself for re-appointment. The brief resume of Shri. DeepakBhartia has been provided in the corporate Governance Report forming part of this report.There have not been any changes in the Directors and KMP during the year.

Pursuant to provisions of Section 203 of the Act and the Rules made thereunderfollowing are the Key Managerial Personnel (KMP) of the Company Shri. Shashikant C.Bhartia- Chairman & Managing Director Shri. Deepak C. Bhartia- Managing Director Shri.Ashwin N. Bhartia- Executive Director Shri. Narendra Pathak- Chief Financial Officer Shri.Prasad Todankar- Company Secretary

Independent Directors Declaration

The Company has received declarations from all the Independent Directors of the Companyconfirming that they meet the criteria of independence as prescribed under the provisionsof the Companies Act 2013 read with the Schedules and Rules issued thereunder as well asRegulation 16(1)(b) of Listing Regulations (including any statutory modification(s) orre-enactment(s) for the time being in force).

7. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

There are no significant and material orders passed by regulators/ courts that wouldimpact the going concern status of the Company and its future operations.

8. SHARE CAPITAL:

There have not been any changes in the share capital of the Company during the year.

DEMATERIALISATION OF SHARES

The shares of your Company are being traded in electronic form and the Company hasestablished connectivity with both the depositories i.e. National Securities DepositoryLimited (NSDL) and Central Depository Services (India) Limited (CDSL). In view of thenumerous advantages offered by the Depository system Members are requested to avail thefacility of dematerialization of shares with either of the Depositories as aforesaid andupdate their bank A/c and Email ID with the respective depository Participant.

9. INVESTORS EDUCATION & PROTECTION FUND

Dividend which was declared by the Company for the year ended March 31 2014 at theAnnual General Meeting held on 27th September 2014 and remained unclaimed willbe transferred to the Investor Education and Protection Fund of the Central Government on11th November 2021 pursuant to the provisions of Companies Act 2013.Thereafter no claim shall lie on dividend for the year ended March 31 2014 from theshareholders.

10. Cost Auditors

Pursuant to section 148 of the Act read with the Companies (Cost Records and Audit)Amendment Rules 2014 the cost audit records maintained by the Company in respect of itsfertilizers business are required to be audited. Shri. T.M. Rathi the Cost Accountantscarried out the cost audit of fertilizers business during the year. The Board of Directorshas also been appointed Shri. T.M. Rathi Cost Accountant as Cost Auditors for thefinancial year 2021-22 and he have confirmed that his appointment is within the prescribedlimits. As require by the provisions of the Act a resolution seeking Members approval forthe remuneration payable to Shri. T.M. Rathi Cost Auditors is included in the Noticeconvening the AGM.

10. INTERNAL FINANCIAL CONTROLS:

The company has in place adequate internal financial control system commensurate withthe size and scale of its operations. During the year such controls were tested and theCompany has in all material respects maintained adequate internal financial controlsover financial reporting as of March 31 2021 and are operating effectively. Statutory andinternal Auditors evaluate the efficiency and adequacy of internal control systemaccounting procedures and policies adopted by the Company for efficient conduct of itsbusiness adherence to Company's policies safeguarding of Company's assets preventionand detention of frauds and errors and timely preparation of reliable financialinformation etc and internal financial control system is being upgraded as per theirrecommendation.

11. COMPANYS POLICY ON SELECTION OF DIRECTORS AND DETERMINING DIRECTORSINDEPENDENCE AND REMUNERATION :

The Company has a Nomination and Remuneration Committee (NRC) and the Composition ofCommittee and the Scope of the Committee are set out in the Corporate Governance Reportforming part of this Annual Report.

The Company's Policy for selection and appointment of Directors and their remunerationis based on its NRC policy which inter alia deals with the manner of selection of theBoard of Directors and such other matters as provided under section 178(3) of the Act andSEBI Listing Regulations.

The shareholders may refer the Company's website for the detailed Nomination &Remuneration Policy of the Company on the appointment and remuneration of Directorsincluding criteria for determining qualifications independence of Director and othermatters provided under sub-section (3) of section 178.

12. AUDITORS REPORT:

The Statutory Auditors of the Company have not reported any fraud as specified underthe second proviso of Section 143(12) of the Companies Act 2013 (including any statutorymodification(s) or re-enactment(s) for the time being in force. The Auditors' Report forthe financial year ended 31st March 2021 does not contain any qualification reservationor adverse remark.

13. SECRETARIAL AUDIT :

M/s. Nitesh Chaudhary & Associates Practicing Company Secretary carried outSecretarial Audit for the Financial Year 2020- 21 and their report is annexed herewith asAnnexure C to this report. The Secretarial Audit Report does not contain anyqualification reservation or adverse remark.

In terms of Section 204 of the Companies Act 2013 the Board of Directors of theCompany has re- appointed M/s. Nitesh Chaudhary & Associates Practicing CompanySecretary as Secretarial Auditors to conduct the secretarial audit for the financial year2021-22.

14. EXTRACT OF ANNUAL RETURN :

Pursuant to Section 92(3) of the Act and Rule 12(1) of the Companies Management andAdministration) Rules 2014 an extract of the Annual Return in Form MGT-9 is annexedherewith as Annexure D

15. PUBLIC DEPOSIT :

During the year the Company has not accepted any deposit within the meaning of Section73 and 74 of Companies Act 2013 read with the Companies (Acceptance of Deposit) Rules2014 (including any statutory modification (s) or re- enactment(s) for the time being inforce).

16. CORPORATE SOCIAL RESPONSIBILITY (CSR) :

The CSR expenditure incurred by the company during the financial year 2020-21 wasRs.14.50 lakhs ( Previous Year 13.74 lakhs) which was higher than the statutoryrequirement of 2% of the average profit for the last three years. In accordance toprovision of Section 135 of the Company Act 2013 and Companies (Corporate SocialResponsibility Policy) Rules 2014 the details of the CSR expenditure is annexed to thisreport as Annexure- A.

The CSR policy of the company mainly focuses on the welfare & sustainable growthand development of the weaker section of the Society which is in line with the company'sage old policy of providing necessary financial support for the upliftment of the poorpeople as well as welfare of the physically handicapped and deaf and blind citizens. TheCSR policy of the Company has emphasis on undertaking the various activities in rural arealike Rural development Promoting education Providing healthcare and Building thecommunity centers the details of which are available on the Company's website.

17. DIRECTORS RESPONSIBILITY STATEMENT :

Pursuant to section 134 of the Companies Act 2013 with respect Directors'Responsibility Statement it is hereby confirmed that:

i. in the preparation of the annual accounts for the financial year ended 31st March2021 the applicable accounting standards had been followed and there is no materialdepartures from the same;

ii. the directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that were 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:e31st March 2021 and of the profit and loss of the company for that period;

iii. the directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the company and for preventing and detecting fraud and other irregularities

iv. the directors have prepared the annual accounts on a going concern basis;

v. the directors have implemented internal financial controls to be followed by theCompany and that such internal financial controls are adequate and are operatingeffectively; and

vi. the directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

18. MEETING OF BOARD:

Nine meetings of the Board of Directors were held during the year under review. Forfurther details please refer report on Corporate Governance published in this AnnualReport.

19. RELATED PARTY TRANSACTIONS:

The Company has formulated a Policy on Related Party Transaction (RPT) which isavailable on Company's website. All contracts / transactions as specified in Section 188of the Act entered by the Company with related parties during the financial year were inthe ordinary course of business and on an arm's length basis with necessary prior approvalof members & audit committee. The Note No. 32 to Financial Statements sets out relatedparty disclosures.

Since all related party transactions entered into by the Company were in the ordinarycourse of business and were on arms' length basis Form AOC-2 is not applicable to theCompany.

20 DISCLOSURE REGARDING PREVENTION OF SEXUAL HARASSMENT:

The Company is committed to maintain a productive environment for all its employees atvarious levels in the organisation free of sexual harassment and discrimination on thebasis of gender. The Company has framed a policy on Prevention of Sexual Harassment inline the requirements of the Sexual Harassment of Women at Workplace (PreventionProhibition & Redressal) Act2013 ("POSH Act"). The details of which areavailable on the Company's website.

21 VIGIL MECHANISM / WHISTLE BLOWER POLICY

As per the requirement of Section 177 (9) of the Companies Act 2013 and Regulation 22of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 theCompany has established a Vigil Mechanism called the ‘Whistle Blower Policy' forDirectors and Employees to report concern of unethical behavior actual or suspected fraudor violation of the Company's Code of Conduct or ethics policy and the details of theWhistle Blower Policy has been uploaded on the Company's website.

22. CORPORATE GOVERNANCE:

Pursuant to clause 34 of the listing agreement with the BSE Ltd a separate sectiontitled "Report on Corporate Governance" is being published as a part of thisAnnual Report along with the certificate of the auditors confirming the compliance ofconditions of the corporate governance. Various disclosure as required under section 134and 135 of the Companies Act 2013 are annexed to this report or covered in the CorporateGovernance Report such as related party transaction extract of Annual returnconstitution of various Board level committees CSR policy and initiative taken during theyear remuneration of the managerial personnel secretarial audit report etc.

23. MANAGEMENT DISCUSSION AND ANALYSIS REPORT :

The Management Discussion and Analysis forms an integral part of this report has beenseparately furnished in Annual Report. The Management Discussion and Analysis givesdetails of organization overall industrial economic overview current and future outlookstrength and weakness cautionary statement.

24. RISK MANAGEMENT POLICY :

The Company has got the risk management policy which is in line with applicable lawsand which aims at identifying assessing and mitigating the various risks which areinherent in the business of the Company. The risk management policy helps in enhancing thebusiness values of the Company with code of conduct adequate quality checks and internalcontrols. The risk management policy has been developed and implemented by operative teamsat various levels of management.

25. PARTICULARS OF LOANS GIVEN INVESTMENTS MADE GUARANTEES GIVEN AND SECURITIESPROVIDED :

During the year company has not made any investment given loans and providesguarantees in pursuant to provision of section 186 of the Companies Act 2013 read withthe Companies (Meetings of Board and its Powers) Rules 2014.

26. PARTICULARS OF EMPLOYEES UNDER SECTION 197(12) OF THE COMPANIES ACT 2013 :

There were no employees whose remuneration was in excess of the limits prescribed underSection 197 (12) of the Companies Act 2013 read with Rules 5 (2) of Companies(Appointment and remuneration of Managerial personnel) Rules 2014.

The ratio of remuneration of each director to the median employee's remuneration andother details in accordance with sub-section 12 of the Section 197 of the Act read withRule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 form part of this report as Annexure - E.

27. PARTICULARS OF ENERGY CONSERVATION TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE

EARNINGS AND OUTGO :

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo as stipulated

28. ACKNOWLEDGEMENTS :

Your Directors would like to express their appreciation for the support andco-operation received from financial institutions company's bankers governmentauthorities and shareholders during the year under review. The Company wishes to place onrecord their sincere appreciation to all employees for their commitment and continuedcontribution to the Company.

Shashikant C.Bhartia
Place : Mumbai Chairman & Managing Director
Date : 17th June 2021 DIN :00151358

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