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Chitradurga Spintex Ltd.

BSE: 521244 Sector: Industrials
NSE: N.A. ISIN Code: INE676G01024
BSE 00:00 | 11 Jun Chitradurga Spintex Ltd
NSE 05:30 | 01 Jan Chitradurga Spintex Ltd
OPEN 11.50
PREVIOUS CLOSE 11.50
VOLUME 1
52-Week high 11.80
52-Week low 8.90
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.50
CLOSE 11.50
VOLUME 1
52-Week high 11.80
52-Week low 8.90
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Chitradurga Spintex Ltd. (CHITRADURGASPIN) - Director Report

Company director report

To

The Members

Your Directors have pleasure in presenting their 26th Annual Report on thebusiness and operations of the Company and the accounts for the Financial Year ended 31stMarch 2017.

1. FINANCIAL SUMMARY OR HIGHLIGHTS/PERFORMANCE OF THE COMPANY

The Board s Report shall be prepared based on the standalone Financial Statements ofthe Company.

[In Rs.]

Particulars 2016-17 2015-16
Gross Income 1342264 1092175
Profit / (Loss) Before Interest and Depreciation (114084) 263918
Finance Charges -- --
Gross Profit/(Loss) (114084) 263918
Provision for Depreciation -- --
Extraordinary Item -- --
Net Profit/(Loss) Before Tax (114084) 263918
Provision for Tax -- 65857
Net Profit/(Loss) After Tax (114084) 198061
Balance of Profit brought forward -- --
Balance available for appropriation -- --
Proposed Dividend on Equity Shares -- --
Tax on proposed Dividend -- --
Transfer to General Reserve -- --
Surplus carried to Balance Sheet (114084) 198061

2. COMPANY S PERFORMANCE AFFAIR

Your Directors are positive about the Company s operations and making best efforts toimplement the cost reduction measures to the feasible extent.

3. DIVIDEND

Considering the present financial status of the Company your directors do notrecommend any dividend for the year under report.

4. RESERVES AND SURPLUS

The balance of Profit & Loss statement amounting to Rs. (114084)/- for FinancialYear under review is transferred to reserves. The total reserves for the Financial Year2016-17 is Rs. 7336860/-

5. SHARE CAPITAL

The total paid up share capital of the Company as on 31st March 2017 is Rs.4610300/- comprising of 461030 Equity Shares of Rs. 10/- each.

6. DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Company has received declaration from all the Independent Directors of the Companyconfirming that they meet the criteria of independence as prescribed under Section 149(6)of the Companies Act 2013.

7. MEETINGS

A calendar of Meetings is prepared and circulated in advance to the Directors. Duringthe year 4 (Four) Board Meetings and 4 (Four) Audit Committee Meetings were convened andheld. The details of which are given as under.

Sr. No. Date Sr. No. Date
Board Meeting Audit Committee
1. 30th May 2016 1. 30th May 2016
2. 10th August 2016 2. 10th August 2016
3. 11th November 2016 3. 11th November 2016
4. 14th February 2017 4. 14th February 2017

The intervening gap between the Meetings was within the period prescribed under theCompanies Act 2013.

8. BOARD EVALUATION

Pursuant to the provisions of the Companies Act 2013 the Board has carried out anannual performance evaluation of its own performance the Directors individually as wellas the evaluation of the working of its Audit Nomination & Remuneration Committee.

9. COMMITTEES OF THE BOARD

There are currently three committees of the Board as following:

1) Audit Committee

The Audit Committee of the Company reviews the reports to be submitted with the Boardof Directors with respect of auditing and accounting matters. It also supervises theCompany s financial reporting process.

The Audit Committee comprises of 3 (Three) Directors. The Chairman of the AuditCommittee is a Non-executive and Independent Director. The Composition of the AuditCommittee is as under:

Sr. No. Name Category Designation
1 Mr. Prasannakumar Siddappa Independent Director Chairman
2 Mr. Thippeswamy Siddappa Thippeswamy Independent Director Member
3 Mr. Shivanna Chandrashekhar Non- Executive Director Member

2) Nomination and Remuneration Committee

The Nomination and Remuneration Committee comprises of 3 (Three) Directors.

Sr. No. Name Category Designation
1 Mr. Prasannakumar Siddappa Independent Director Chairman
2 Mr. Thippeswamy Siddappa Thippeswamy Independent Director Member
3 Mr. Shivanna Chandrashekhar Non- Executive Director Member

3) Stakeholders Relationship Committee

The composition of the Stakeholders Relationship Committee is as under:

Sr. No. Name Category Designation
1 Mr. Shivanna Chandrashekhar Non- Executive Director Chairman
2 Mr. Prasannakumar Siddappa Independent Director Member
3 Mr. Thippeswamy Siddappa Thippeswamy Independent Director Member

10. REMUNERATION POLICY

The Board has on the recommendation of the Nomination & Remuneration Committeeframed a policy for selection and appointment of Directors Senior Management and theirremuneration.

11. DIRECTORS RESPONSIBILITY STATEMENT

In terms of Section 134(5) of the Companies Act 2013 the directors would like tostate that:

a) In the preparation of the annual accounts the applicable accounting standards havebeen followed.

b) The directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that were reasonable and prudent so as to give true andfair view of the state of affairs of the Company for the year under review.

c) The directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities.

d) The directors have prepared the annual accounts on a going concern basis.

e) The directors have laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and were operatingeffectively.

f) The directors have devised proper system to ensure compliance with the provisions ofall applicable laws and that such system were adequate and operating effectively.

12. AUDITORS

Pursuant to the provisions of section 139 of the Companies Act the rules framedthereafter and other applicable provisions if any Mr. Chetan Dedhia CharteredAccountant Mumbai were appointed as statutory auditors of the Company from theconclusion of the 24th Annual General Meeting (AGM) of the Company held on 24thSeptember 2015 till the conclusion of 27th AGM subject to ratification oftheir appointment at every AGM.

13. AUDITOR S REPORT

The Board has duly examined the Statutory Auditor s report on accounts which is selfexplanatory and clarifications wherever necessary have been included in the Notes toFinancial Statements of the Annual Report.

14. SECRETARIAL AUDIT REPORT

In terms of Section 204 of the Act and Rules made there under the Board has appointedMs. Payal Tachak proprietress of M/s. Payal Tachak & Associates Practicing CompanySecretary for the FY 2016-17.

The report of the Secretarial Auditors is enclosed as Annexure to this report.

Secretarial Auditor s observation and Management s explanation to the Auditor sobservation

a) Section 203(1) (ii) Non appointment of Company Secretary as Key Managerial Personnel

The Board would like to bring to your notice that the Company has been trying to findprospective candidate for the post of Company Secretary on the best efforts basis but theCompany has not been successful.

b) Regulation 6 of SEBI (Listing Obligation and Disclosure Requirements) Regulation2015 Non appointment Qualified Company Secretary as Compliance Officer.

The Board has designated D M Shivananda Swamy as Compliance officer to take care of thecompliances till the time Company finds suitable candidate for the post of CompanySecretary.

c) Regulation 47 of the SEBI (Listing obligations and Disclosure Requirements)Regulation 2015 Section 108 of the Companies Act 2013 read with Rule 20 of the Companies(Management and Administration) Rules 2014 and Section 91 of the Companies Act 2013read with Rule 10 of the Companies (Management and Administration) Rules 2014Publication of Results Audited and Unaudited in news paper Voting Through Electronicmeans News Paper Advertisement for Book Closure.

The Company has not been doing that since the financial position of the Company doesnot allow Board to incur such expenditure keeping in mind that the results are madeavailable for investors and market through Stock Exchange. The Company on timely basissubmits the results to the Exchange to bring the information in public domain.

d) 100% Promoter Shareholding in Demat Form - SEBI Circular SEBI/Cir/ISD/05/2011 dated30th September 2011 and SEBI Circular SEBI/Cir/ISD/03/2011 dated 17thJune 2011.

The management is trying to do the needful to comply with the said provisions.

However the Company would try and comply with all the provisions to the fullestextent. The report of the Secretarial Auditor is enclosed as Annexure II to this report.

15. VIGIL MECHANISM

In pursuant to the provisions of section 177(9) & (10) of the Companies Act 2013a Vigil Mechanism for directors and employees to report genuine concerns has beenestablished. The Vigil Mechanism Policy has been uploaded on the website of the Companyunder investors/policy documents/Vigil Mechanism Policy link.

16. RISK MANAGEMENT POLICY

The Company has laid down a well defined Risk Management Policy. The Board periodicallyreviews the risk and suggests steps to be taken to control and mitigate the same through aproper defined framework.

17. EXTRACT OF ANNUAL RETURN

As required pursuant to Section 92(3) of the Companies Act 2013 and Rule 12(1) of theCompanies (Management and Administration) Rules 2014 an extract of Annual Return in MGT9 as a part of this Annual Report as ANNEXURE I.

18. CODE OF CONDUCT

The Board of Directors has approved a Code of Conduct which is applicable to theMembers of the Board and all employees in the course of day to day business operations ofthe Company. The code laid down by the Board is known as Code of Business Conduct whichforms an Appendix to the Code. The Code has been posted on the Company s website.

19. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS ANDOUTGO

Conservation of energy technology absorption foreign exchange earnings and outgo arenil during the year.

20. INDUSTRIAL RELATIONS

During the year under review your Company maintained cordial relationship withemployees at all levels.

21. LISTING WITH STOCK EXCHANGES

The Equity shares of the Company are currently listed on BSE Limited.

22. OTHER INFORMATION

Your Directors hereby states that no disclosure or reporting is required in respect ofthe following items as there were no transactions on these items during the year underreview:

1. During the year under the review the Company has not given any new loans and notprovided any Guarantees or made Investments under the provisions of Section 186 of theCompanies Act 2013;

2. The Provision of Section 135 of the Act with respect to Corporate SocialResponsibility (CSR) is not applicable to the Company hence there is no need to developpolicy on CSR and take initiative thereon;

3. The Company do not have any subsidiary joint venture or associate Company henceno need to state anything about the same;

4. The Company has not accepted deposits covered under Chapter V of the Act;

5. No significant material orders were passed by the regulators or courts or tribunalsimpacting the going concern status and company's operations in future.

6. Since the Company having paid-up capital less than the threshold provided underRegulation 27(2) of Listing Regulations 2015 hence the Company need not required toaddress Reports on Corporate Governance.

7. There are no employees who are in receipt of salary in excess of the limitsprescribed under Companies (Appointment and Remuneration of Managerial Personnel) Rules2014.

8. The Company has not entered any contracts or arrangements with related partiesspecified under Section 188 of Companies Act 2013.

23. ACKNOWLEDGEMENTS

An acknowledgement to all with whose help cooperation and hard work the Company isable to achieve the results.

For and on behalf of the Board of Directors
Place: Challakere S. Rajasekharappa
Date: 14th August 2017 Chairman