CONTINENTAL CONTROLS LIMITED.
Your Directors presents their 27thAnnual Report on the business and operations of theCompany and the accounts for the Financial Year ended 31st March 2022.
STATE OF COMPANY'S AFFAIRS:
Your Company is in the business of sales and service of Thermal Overload Protector.It has a worldwide network single sales office a warehouse and a work force of over 30people that sell a single product to about 30 customers in India and Abroad.
(Rs. in Lacs )
|Particulars ||Standalone |
| ||March 2022 ||March 2021 |
|Income From Operations ||779.71 ||604.24 |
|Other Income ||132.40 ||8.84 |
|Total Income ||912.11 ||613.08 |
|Profit/(Loss) Before Interest Depreciation Tax and Exceptional Items ||49.95 ||(12.03) |
|Less:- Interest Expenses ||NIL ||NIL |
|Less:- Depreciation & Amortization Expenses ||85.74 ||79.42 |
|Less:- Exceptional Items ||NIL ||NIL |
|Profit/(Loss) Before Tax ||(35.79) ||(91.45) |
|Less:- Provision For Taxation (deferred tax) ||NIL ||NIL |
|Net Profit/(Loss) After Tax ||(35.79) ||(91.45) |
During the financial year 2021-22 the total income increased by 48.77% to Rs.912.11lakhs as compared to previous year's total income of Rs.613.08 lakhs. There is a lossbefore tax of Rs. 35.79 lakhs as compared to Previous Year loss before tax of Rs.91.45lakhs in the previous year since Expenses from operation is increased to Rs.947.90 lakhsas compared to the previous year's Income of Rs. L704.53 akhs.
DIVIDEND AND BOOK CLOSURE
The Board of Directors does not recommend dividend on equity shares for the currentfinancial year.
The register of members and share transfer books will remain close from24thSeptember2022 to 30th September 2022(both days inclusive) for the 27thAnnual General Meeting ofthe Company scheduled to be convened on Friday 30th September 2022 at Poush KrishnaGardens Maljipada Opp. Crown Petrol Pump Ahmedabad Highway Taluka Vasai East DistPalghar - 401210.
As at 31st March 2022 Reserves and Surplus amounted to Rs. (204.46) lakhs as comparedto Rs. (168.67) lakhs of previous year. The said scenario is due to inadequateprofitability during the year under review and contribution of losses by the company.
Long Term Borrowings
As at 31st March 2022 Long Term Borrowings as Rs.318.79 lakhs in the current financialyear as compared to Rs.320.94 lakhs during the previous year.
Short Term Borrowings
As at 31st March 2022 Short Term Borrowings as Rs.166.25 lakhs in the current financialyear as compared to Rs.97.20 lakhs during the previous year.
Net Fixed Assets as at 31st March 2022 has increased to Rs.498.97 lakhs as compared toRs.566.69 lakhs.
The Company has not made any investment in the current period under review.
During the year there is no Allotment of Equity Shares to Promoters and Non-Promoters.
MEETINGS BOARD OF DIRECTORS
The Board normally meets once in a quarter and additional meetings are held as and whenrequired. During the year the Board of Directors met 4 times i.e. on 30th June 2021 14thAugust 2021 13th November 2021 and 14th February 2022. The dates of Board Meetings weregenerally decided in advance with adequate notice to all Board Members.
APPOINTMENT / RESIGNATION OF DIRECTORS (SECTION 168(1)) AND KEY MANAGERIAL PERSONNEL(KMP):
During the year under review there is no change in the directorship of the Company.
Pursuant to Section 149(7) of the Companies Act 2013 the Company has receiveddeclarations from Mr. Pradip C. Gaglani Mr. Kanaiyalal S. Thakker Mr. Haresh kumar S.Thakker and Mrs. Keta R. Poojara Independent Directors confirming that they meet thecriteria of independence as specified in Section 149(6) of the Act.
POLICY ON DIRECTOR'S APPOINTMENT AND REMUNERATION PURSUANT TO SECTION 178(3) OF THECOMPANIES ACT 2013.
The Board of Directors of your Company in consultation with Nomination and RemunerationCommittee had formulated and adopted Code for Independent Directors and which containspolicy on director's appointment and remuneration including criteria for determiningqualification positive attributes and independence of directors.
Board of Directors of the Company duly consider appointment of the Directors inadherence with the policy prescribed under the code of independent directors andprovisions of section 178(3) of the Companies Act 2013.
The Company has an Independent Audit Committee comprising of 5(Five) IndependentDirectors and 1 (one) Executive Director. Mr. Pradip C. Gaglani Mr. Kanaiyalal S.Thakker Mr. Hareshkumar S. Thakker Mrs. Keta R. Poojara and Mr. Navinchandra G.ThakkarManaging Director of the Company are Members of the Committee. All the members of theAudit Committee are financially literate. In view of their professional qualification andexperience in finance all are considered to have financial management and accountingrelated expertise. Terms of reference of the Audit committee are elaborated in theCorporate Governance report which forms the part of this Annual Report.
EVALUATION OF PERFORMANCE OF BOARD
During the year a separate Meeting of Independent Directors of the Company was held on12th February 2022 which was attended by all the Independent Directors to discuss andreview the self-assessment of Directors Board and Committees thereof and also assess thequality content and timeliness of flow of information between the Management and theBoard.
DIRECTORS RESPONSIBILITY STATEMENT:
The Board of Directors confirms that:
(a) in the preparation of the annual accounts for the financial year ended 31st March2022 the applicable accounting standards have been followed along with proper explanationrelating to material departures;
(b) the directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are 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 and ofthe profit and loss of the company for that period;
(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; and
(e) the directors in the case of a listed company have laid down internal financialcontrols to be followed by the company and that such internal financial controlsareadequate and were operating effectively.
(f) the directors have devised proper systems to ensure compliance with theprovisionsof all applicable laws and that such systems were adequate and operating
The Company is committed to maintain the highest standards of Corporate Governance andadhere to the Corporate Governance requirements set out by SEBI. The Company hasimplemented several best Corporate Governance Practices as prevalent globally.
In compliance with Regulation 17 to 27 of the Securities and Exchange Board Of India(Listing Obligations And Disclosure Requirements) Regulations 2015 entered into with theStock Exchanges a Report on the Corporate Governance along with the certificate from theStatutory Auditors of the Company on compliance with the provisions of the said Clause isannexed and forms part of the Annual Report.
LOANS MADE GUARANTEES GIVEN OR INVESTMENTS IN SECURITIES BY THE COMPANY.
The Company has not granted any Loan and not made any guarantee Investment underSection 186 of the Companies Act 2013 and therefore not required to comply with the same.
PARTICULARS OF CONTRACT OR ARRANGEMENTS WITH RELATED PARTIES IN A PRESCRIBED FORMALONGWITH THE JUSTIFICATION FOR ENTERING INTO SUCH CONTRACT OR ARRANGEMENT.
During the year there was no related party transactions of material nature that mayhave a potential conflict with interests of the Company all transactions with relatedparties were in the normal course of business. On recommendation of Audit Committee theBoard ratifies all the related party transactions on quarterly basis.The details of thetransaction is annexed herewith as Annexure- I' in the prescribed form AOC-2
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS ANDOUTGO
Energy conservation dictates how efficiently a company can conduct its operations. CCLhas recognized the importance of energy conservation in decreasing the deleterious effectsof global warming and climate change. The Company has undertaken various energy efficientpractices that have reduced the growth in carbon di-oxide (CO2) emissions and strengthenedthe Company's commitment towards becoming an environment friendly organisation. Adedicated Energy Cell' is focusing on energy management and closely monitor energyconsumption pattern across all manufacturing sites. Periodic energy audits are conductedto improve energy performance and benchmark with other international refineries andpetrochemicals sites.
CCL Focuses on (i) new products processes and catalyst development to support existingbusiness and create breakthrough technologies for new businesses (ii) advancedtroubleshooting and (iii) support to capital projects and profit and reliabilityimprovements in manufacturing plants.
|PARTICULARS ||AMOUNT |
|EARNING ||Rs. 4729801 |
|OUTGOING ||Rs. 33251319 |
The Company's Export Earning and outgoing is:
MATERIAL CHANGES AND COMMITMENTS
There were no material changes and commitments has been done by management affectingthe financial position of the Company between the end of the financial year of the companyto which the financial statements relates and the date of the report.
EXTRACT OF ANNUAL RETURN
Extract of Annual Return of the Company is annexed herewith as Annexure II to thisReport.
CORPORATE SOCIAL RESPONSIBILITY
The provisions of Section 135 of the Companies Act 2013 are not applicable to theCompany as it is suffering losses since last three consecutive years; hence disclosure inthis regard is not provided.
VIGIL MECHANISM FOR DIRECTORS AND EMPLOYEES (SECTION 177(10))
The Board of directors of the Company believes in conducting all its affairs in a fairand transparent manner by adopting highest standards of professionalism honestyintegrity and ethical behaviour. The directors are committed to comply with the laws andregulations to which it is subject. For this it has put in place systems policies andprocedures to interpret and apply these laws and regulations in the organizationalenvironment. In consonance with the object of transparency and good governance the boardof directors of the company formulated and adopted "Whistle Blower Policy and VigilMechanism"
The organization's internal controls and operating procedures are intended to detectand prevent improper activities. In this regard the Company believes in developing aculture where it is safe for all the Directors/Employees to raise concerns about any pooror unacceptable practice and any event of misconduct. These help to strengthen and promoteethical practices and ethical treatment of all those who work in and with theorganization.
The main objective of this Policy is to provide a platform to Directors and Employeesto raise concerns regarding any irregularity misconduct or unethical matters / dealingswithin the group which have a negative bearing on the organization either financially orotherwise.
RATIO OF THE REMUNERATION OF EACH DIRECTOR TO THE MEDIAN EMPLOYEES REMUNERATION(SECTION 197(12))
Details pertaining to remuneration as required under section 197(12) of the Companiesact 2013 read with rule 5(1) of the companies (appointment and Remuneration of managerialpersonnel) rules 2014 are provided in Annexure-III'to the Board's Report.
MANAGERIAL REMUNERATION AND RELATED DISCLOSURES
Disclosures pertaining to remuneration to directors and other details as required underSection 197(12) of the Act read with Rule 5(1) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 are provided in the Annual Report.
Pertaining to the provisions of Section 197(12) of the Act read with Rules 5(2) and5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014the board of directors do hereby declare that:
(i) No any employee throughout the financial year was in receipt of remuneration forthat year which in the aggregate was not less than One Crore Two Lakhs rupees;
(ii) No any employee for a part of the financial year was in receipt of remunerationfor any part of that year at a rate which in the aggregate was not less than eight lacsfifty thousand rupees per month;
(iii) No any employee throughout the financial year or part thereof was in receipt ofremuneration in that year which in the aggregate or as the case may be at a rate whichin the aggregate is in excess of that drawn by the managing director or whole-timedirector or manager and holds by himself or along with his spouse and dependent childrennot less than two percent of the equity shares of the company.
The Company has no subsidiary companies and hence company does not need to makedisclosure of contracts or arrangements or transactions not at arm's length basis.
MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT
Management's Discussion and Analysis Report for the year under review as stipulatedunder Regulation 34 (3) and 53 (f) of the Securities and Exchange Board Of India (ListingObligations And Disclosure Requirements) Regulations 2015 with the Stock Exchanges inIndia is presented in a separate section forming part of the Annual Report.
Pursuant to Section 204 of the Companies Act 2013 and rules amendments made thereunder Mr. Shravan A. Gupta Practicing Company Secretary was appointed to conduct thesecretarial audit of our company for F.Y. 2021-2022. The Secretarial Audit report is givenseparately under Annexure IV. There are qualifications or observations or other remarksmade by the Secretarial Auditor on the audit conducted by him in his Report.
The Auditors M/s. G. P. Kapadia & Associates Chartered Accountants (FirmRegistration No. 104768W) be and are hereby appointed as the Statutory Auditors of theCompany whose office was liable for Rotation under Section 139(2) of the Companies Act2013to hold office from the conclusion of this Twenty Forth Annual General Meeting untilthe conclusion of the Twenty Nine Annual General Meeting of the Company to be held in thecalendar year 2024 at such remuneration as may be mutually agreed to between the Board ofDirectors and the Auditors plus applicable taxes and reimbursement of travel and out-ofpocket expenses in connection with the audit of standalone financial statements of theCompany for the year ended March 312022.
Explanations or Comments by the Board on every qualification reservation or adverseremark or disclaimer made -
1. By the Statutory Auditor in its report
The Statutory Auditor has not made any qualification reservation or adverse remark ordisclaimer in his Audit Report and has given unmodified opinion.
2. By the Secretarial Audit Report in its report
The Secretarial Auditor has given qualification in his secretarial audit report is asfollows:
the company has under process of maintaining website as per the Regulation-46 of theSEBI(LODR) Regulations2015.
The Director take initiative to maintain website as per the Regulation-46 of theSEBI(LODR) Regulations2015.
Company considers its employees as most valuable resource and ensures strategicalignment of Human Resource practices to business priorities and objectives. The Companyhas a dedicated team of employees at various locations across our corporate office andbranch offices (including Subsidiary companies) spread across the country. The Companystrives to inculcate the culture where its employees are motivated and their performanceis aligned with values. Company has achieved this present level of excellence through thecommitment and dedication exhibited by its employees. The focus on improving productivityand adoption of best practices in every area are being pursued relentlessly. Efforts foractive participation nurturing creativity and innovation and ensuring a climate ofsynergy and enthusiasm have been at the core of Human Resource initiatives andinterventions.
INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS.
Your Company has adequate internal financial control and adopted Internal FinancialControl Policy in order to maintain confidentiality of price sensitive information andinternal financial control.
The Company has mechanisms to inform the Board Members about the risk assessment andminimization procedures and periodical review to ensure that executive management controlsrisk through means of a properly identified framework. Risk management is an ongoingprocess and the Audit Committee will periodically review risk mitigation measures. TheBoard of Directors has not constituted a Risk Management Committee as is not mandatory tothe company vide circular bearing number CIR/CFD/POLICY CELL/7/2014 issued by SEBI datedSeptember 15 2014.
The Board of Directors of the Company and the Audit Committee shall periodically reviewand evaluate the risk management system of the Company so that the management controls therisks through properly defined network.
Head of Departments shall be responsible for implementation of the risk managementsystem as may be applicable to their respective areas of functioning and report to theBoard and Audit Committee.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALSIMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS INFUTURE
There were no significant and material orders passed by the regulators and/or courts ortribunals during the year.
POLICY FOR SEXUAL HARASSMENT
The Company has always been committed to provide a safe and dignified work environmentfor its employees which is free of discrimination intimidation and abuse. The Company hasadopted a Policy for Prevention of Sexual Harassment of Women at Workplace under theprovisions of The Sexual Harassment of Women at Workplace (Prevention Prohibition andRedressal) Act 2013 ("Act"). The objective of this policy is to provideprotection against sexual harassment of women at workplace and for redressal of complaintsof any such harassment. The Company has also constituted an Internal Complaints Committeeto redress the complaints received under this policy.
The following is a summary of sexual harassment complaints received and disposed-offduring theyear under review:
- No of complaints received: Nil
- No of complaints disposed-off: NA ACKNOWLEDGEMENTS
Your Directors take this opportunity to thank all investors clients vendors banksregulatory Government authorities and Stock Exchanges for their continued support andcooperation. The Directors also wish to place on record their appreciation of thecontribution made by the business partners / associates at all levels.
| ||By Order of the Board |
| ||Sd/- |
| ||Navin G.Thakkar |
| ||DIN 00251210 |
| ||Chairman & Managing Director |
|Place : Mumbai || |
|Date: 30.05.2022 || |