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Colinz Laboratories Ltd.

BSE: 531210 Sector: Health care
NSE: N.A. ISIN Code: INE923C01011
BSE 00:00 | 01 Jul 24.05 -0.50
(-2.04%)
OPEN

25.70

HIGH

25.70

LOW

23.70

NSE 05:30 | 01 Jan Colinz Laboratories Ltd
OPEN 25.70
PREVIOUS CLOSE 24.55
VOLUME 56
52-Week high 43.45
52-Week low 15.55
P/E 32.50
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 25.70
CLOSE 24.55
VOLUME 56
52-Week high 43.45
52-Week low 15.55
P/E 32.50
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Colinz Laboratories Ltd. (COLINZLABS) - Director Report

Company director report

Your Directors have pleasure in presenting their 35th Annual Reporttogether with the Audited Accounts of the Company for the Year ended March 31 2021.

1) Financial Result

(Rs. In Lacs)

Particulars Current year Previous year
2020-21 2019-20
Rs. Rs.
Total Revenue 635.00 773.82
Total Expense 610.48 756.22
Profit before tax 24.52 17.60
Tax expense (3.76) (4.56)
Profit for the year 20.76 13.04
Add: Other Comprehensive income 24.46 (13.53)
Total Profit/(Loss) 45.22 (0.49)
Balance brought forward of the previous year 142.11 142.60
Balance carried to balance sheet 187.33 142.11

2) OPERATIONAL REVIEW:

The outbreak of Covid-19 and subsequent Lockdown has affected the results of theCompany during the year under review. Total revenue for the financial year ended31.03.2021 stood at 635.00 Lacs compared to Rs.773.82 Lacs in the corresponding previousyear. The revenue from operations net of GST stood at Rs. 615.90 Lacs and the other incomeby way of interest received and dividend received were Rs. 19.10 Lacs.

The impact of Covid-19 pandemic and subsequent nationwide Lockdown resulted in completestoppage of movement of men and materials for almost 3 months of FY 2020-21. Yourcompany's products are prescription oriented from consultant Doctors. During Lockdownfearing infection neither the Doctors nor the patients were venturing out of their homewhich had drag on effect to Q2 of FY 2020-21 also. The same thing also affected theworking of our Medical representatives even at chemist's level. Doctors who were givingtele consultations in emergency and needy cases were contacted by some of our senior salesstaff on what's apps and other means to fetch revenues during the entire first half of thefinancial year.

Considering the impact of strict Lockdown and the consequent slowdown the Company wasable to register a decent top line and bottom line during FY 20-21.

During the year under review;

1) Company had an operational profit of Rs. 24.52 Lacs compared to17.60 Lacs in thecorresponding previous year.

2) Provision for tax after adjustment of deferred tax credit: Rs. 3.76 Lacs.

3) Profit after tax: Rs. 20.76 Lacs.

4) Other Comprehensive Income: 24.46 Lacs.

5) Carried to Balance Sheet: Rs. 45.22 Lacs.

3) DIVIDEND:

The Board regrets its inability to recommend any dividend to plough back the surplusavailable and to strengthen the financial resources of the Company.

4) SHARE CAPITAL:

The paid up equity capital as on March 31 2021 was Rs 354.50 lacs. During the yearunder review your Company has not issued any shares including Sweat equity ESOP and/orconvertible debentures.

5) FINANCE & MATERIAL CHANGES AFFECTING FINANCIAL POSITION OF THE COMPANY:

The Company continues to focus on judicious management of its working capitalreceivables inventories and other working capital parameters. They are kept under strictcheck through continuous monitoring. No material changes have occurred and commitmentsmade affecting the financial position of the Company.

6) PUBLIC DEPOSITS

Your Company has not accepted any deposits within the meaning of Section 73 of theCompanies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014.

7) PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS:

The Company has not given any loans or guarantees covered under the provisions ofsection 186 of the Companies Act 2013.

8) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an Internal Control System commensurate with the size scale andcomplexity of its operations. The scope and authority of the Internal Audit function isdefined. To maintain its objectivity and independence the Internal Audit function reportsto the Chairman of the Audit Committee of the Board.

The Internal Audit Department monitors and evaluates the efficacy and adequacy ofinternal control system in the Company its compliance with operating systems accountingprocedures and policies at all locations of the Company. The Audit Committee reviews theadequacy and effectiveness of the internal control system and suggests improvement tostrengthen the system. It also reviews the quarterly internal Audit Reports.

9) CORPORATE SOCIAL RESPONSIBILITY INITIATIVES:

Not applicable to the Company since the Company is outside the threshold limit underthe Companies Act 2013 as amended from time to time.

10) CONSERVATION OF ENERGY:

a) Company ensures that the manufacturing operations are conducted in the mannerwhereby optimum utilization and maximum possible savings of energy is achieved.

b) No specific investment has been made in reduction in energy consumption during theyear under review. Pharmaceutical formulation industry does not consume high power.

c) As the impact of measures taken for conservation and optimum utilization of energyare not quantitative its impact on cost cannot be stated accurately.

11) TECHNOLOGY ABSORPTION:

Company's products are manufactured by using in-house know how and no outsidetechnology is being used for manufacturing activities. Therefore technology absorption isa continuous process. The Company constantly strives for maintenance and improvement inquality of its products and entire development activities are directed to achieve theaforesaid goal.

12) FOREIGN EXCHANGE EARNINGS AND OUT-GO:

During the period under review there was no foreign exchange earnings or out flow.

13) DIRECTORS:

a) Pursuant to Section 152 of the Companies Act 2013 ("the Act") Dr. ManiL. S. Director (Din No. 00825886) retires by rotation at the forthcoming Annual GeneralMeeting of the Company and has offered himself for reappointment for the office of theDirector.

b) All independent directors have given declarations that they meet the criteria ofindependence as laid down under section 149(6) of the Companies Act 2013.

14) EVALUATION OF BOARDS PERFORMANCE:

During the year the Board has adopted a formal mechanism for evaluating theperformance and as well as that of its Committees and Individual Directors including theManaging Director if any and the Whole Time Director of the Board. The exercise wascarried out by the Independent Directors of the Company through a Structured evaluationprocess covering several aspects of functioning of the Board i.e. attendance contributionat the meeting and otherwise independent judgment safeguarding interest of the minoritystakeholders composition of Board/Committees performance of specific duties andobligations by members of the Board etc.

15) NOMINATION & REMUNERATION POLICY:

Pursuant to section 178 of the Companies Act 2013 and the rules made thereunder fromtime to time and Regulation 19 of the SEBI Regulations 2015 the Board has reconstitutedthe Nomination & Remuneration Committee. The Nomination & Remuneration Committeeframed a policy for selection and appointment reappointment removal appraisal ofDirectors and Senior Management Personnel and their remuneration.

16) MEETINGS OF BOARD OF DIRECTORS AND AUDIT COMMITTEE:

During the year Board Meetings and Audit Committee Meetings and two independentDirectors meeting were convened and held the details of which are given in the CorporateGovernance Report. The intervening gap between the Meetings was within the periodprescribed under the Companies Act 2013.

17) DIRECTORS' RESPONSIBILITY STATEMENT:

In terms of Section 134 (5) of the Companies Act 2013 the Directors would like tostate that: i) In the preparation of the annual accounts the applicable accountingstandards have been followed;

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 year31-03-2021 and of the profit or loss of the Company for the year under review;

iii) The Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this 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 had laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and were operatingeffectively; and

vi) The Directors had devised proper system to ensure compliance with the provisions ofall applicable laws and that such system were adequate and operating effectively.

18) RELATED PARTY TRANSACTIONS:

All related party transactions including agreements/contracts that were entered intoduring the financial year were on arm's length basis and were in the ordinary course ofthe business. There are no materially significant related party transactions made by thecompany with Promoters Key Managerial Personnel or other designated persons which mayhave potential conflict with interest of the company at large.

Prior omnibus approval of the Audit Committee has been obtained on an annual basis fortransactions with related parties which are of a foreseeable and repetitive nature. Thetransactions entered into pursuant to the omnibus approval so granted and a statementgiving details of all transactions with related parties are placed before the AuditCommittee for their review on a periodic basis.

19) SUBSIDIARY COMPANIES:

The Company does not have any subsidiary

20) 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 Company believes in "Zero Tolerance" against briberycorruption and unethical dealing/behaviors of any form and the Board has laid down thedirectives to counter such acts. The code laid down by the Board is known as "Code ofbusiness conduct".

The Code lays down the standard procedure of business conduct which is expected to befollowed by the Directors and the designated employees in their business dealings and inparticular on matters relating to integrity in the work place in business practices andin dealing with stakeholders. The Code gives guidance through examples on the expectedbehavior from an employee in a given situation and the reporting structure.

All the Board Members and the Senior Management personnel have confirmed compliancewith the Code. All Management Staff were given appropriate training in this regard. TheCode of Conduct in detail is given in our Website.

21) VIGIL MECHANISM/WHISTLE BLOWER POLICY

The Company has a Fraud Risk and Management Policy to deal with instances of fraud andmismanagement if any. The FRM Policy ensures that strict confidentiality is maintainedwhilst dealing with concerns and also that no discrimination will be meted out to anyperson for a genuinely raised concern.

The Board of Directors has adopted Whistle Blower Policy. The Whistle Blower Policyaims for conducting the affairs in a fair and transparent manner by adopting higheststandards of professionalism honesty integrity and ethical behavior. All permanentemployees of the Company are covered under the Whistle Blower Policy.

22) PREVENTION OF INSIDER TRADING

The Company has adopted a Code of Conduct for Prevention of Insider Trading with a viewto regulate trading in securities by the Directors and designated employees of theCompany. The Code requires pre-clearance for dealing in the Company's shares and prohibitsthe purchase or sale of Company shares by the Directors and the designated employees whilein possession of unpublished price sensitive information in relation to the Company andduring the period when the Trading Window is closed. The Board is responsible forimplementation of the Code. All Board of Directors and the designated employees haveconfirmed compliance with the Code.

23) DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITION AND REDRESSAL) ACT2013.

The Company has in place an Anti- Sexual Harassment Policy in line with therequirements of The Sexual Harassment of Women at the Workplace (Prevention Prohibition& Redressal) Act 2013. The detailed report is given in the Reports on CorporateGovernance.

24) AUDITORS:

M/s. Vora & Associates Chartered Accountants FRNo. 111612W the auditors of theCompany have been appointed for a period of 5 years in the 31st AGM to hold office untilthe conclusion of 36th AGM (Subject to ratification of their appointment by the members atevery intervening AGM).

Pursuant to the amendments made to section 139 of the Companies Act 2013 by theCompanies (Amendment)Act 2017 effective from May 07 2018 the requirement of seekingratification of the members for the appointment of statutory auditors has been withdrawnfrom the statute. In view of the above ratification of members for continuance of theirappointment at this Annual General Meeting is not being sought. The statutory Auditorshave given a confirmation to the effect that they are eligible to continue with theirappointment and that they have not been disqualified in any manner from continuing asStatutory Auditors. The remuneration payable to the Statutory Auditors will be determinedby the Board of Directors based on the recommendation of the Audit Committee.

25) SECRETARIAL AUDIT AND AUDIT REPORT

Pursuant to provisions of section 204 of the Companies Act 2013 and The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hasappointed M/s Sanjay Dholakia & Associates (CP No. 1798) a firm of CompanySecretaries in practice to undertake the Secretarial Audit of the Company. The SecretarialAudit report is annexed herewith as "Annexure A".

26) COST AUDIT

The provision of Cost Audit Report is not applicable to the Company.

27) EXTRACT OF ANNUAL RETURN

The Annual Return of the Company has been placed on the website of the company and canaccessed at the Company's website at www.findoc-cll.in.

28) PARTICULARS OF EMPLOYEES:

There are no employees in receipt of remuneration exceeding the limit as prescribedunder the provisions of Section 197 of the Companies Act 2013.

29) INDUSTRIAL RELATION AND HUMAN RESOURCES:

Industrial relation during the period under review remained cordial at all levels. TheCompany has a structured appraisal system based on key result areas. The HR is effectivelyinvolved in nurturing enhancing and retaining talent through job satisfactiondevelopment and training programs etc.

30) CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORTS

The Corporate Governance and Management Discussion & Analysis Report which form anintegral part of this Report are set out as separate Annexure

31) KEY MANAGERIAL PERSONNEL:

In terms of Section 203 of the Act the following were the KMPs of the Company as on 31stMarch 2021.

1. Mr. N. K. Menon Whole-Time Director & CEO

2. Mr. Vasant K. Bhat Independent Director

3. Mr. A. Krishna Kumar Independent Director

4. Dr. Mani L. S. Director & Company Secretary

5. Mr. Ganesh Chitte CFO

32) LISTING FEES

The Company has paid Listing fees to BSE for the year 2021-22.

ACKNOWLEDGEMENT

Company and its Directors wish to extend their sincerest thanks to the Members of theCompany Bankers State Government Local Bodies Customers Suppliers Executives Staffand Workers at all levels for their continuous cooperation and assistance.

On behalf of the Board of Directors
Mumbai 30th July 2021
Registered Office:
COLINZ LABORATORIES LIMITED Dr. Mani L. S.
(CIN: L24200MH1986PLC041128) Director- Legal Corporate Affairs & Company Secretary
A-101 Pratik Industrial Estate
Mulund-Goregaon Link Road Mr. N K Menon
Bhandup(W) Mumbai - 400 078 Whole Time Director & CEO

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