Your Directors have great pleasure in presenting the Annual Report together with theAudited Accounts of the Company for the year ended at 31st March 2016.
The summarized performance of the Company for the years 2015-16 and 2014-15 is givenbelow:
(Rupees in Lacs)
| || |
For Financial Year Ended
|Particulars ||31st March 2016 ||31st March 2015 |
|Total Income ||41763289 ||37889900.86 |
|Total Expenditure ||41061991.54 ||37332841.85 |
|Profit before Tax ||701297.46 ||557059.01 |
|Less: Tax Expense ||238574 ||223995 |
|Profit / (Loss) After Tax ||484596.46 ||384928.01 |
During the year under review Your Company has recorded a total income of Rs.41763289/- against Rs. 37889900.86 in the previous year. Profit after taxation for thefinancial year ended on 31st March 2016 decreased to Rs. 701297.46/- against Rs.557059.01/- in the previous year.
RESERVE AND SURPLUS
Rs. 484596.46/- is being transferred to the reserve and surplus.
To Plough back the profits into the business the Board of Directors has not declaredany dividend during the year.
CHANGE IN THE NATURE OF BUSINESS
During the year the Company has not changed its nature of business.
The Company has not accepted deposit from the public falling within the ambit ofSection 73 of the Companies Act 2013 and The Companies (Acceptance of Deposits) Rules2014. No amount of principal or interest was outstanding as on the date of Balance Sheet.
MATERIAL CHANGES AND COMMITMENTS IF ANY AFFECTING THE FINANCIAL POSITION OF THECOMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICHTHE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
There have been no material changes and commitments which can affect the financialposition of the Company occurred between the end of the financial year of the Company anddate of this report.
DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THEFINANCIAL STATEMENTS
The Company has a formal system of internal control testing which examines both thedesign effectiveness and operational effectiveness to ensure reliability of financial andoperational information and all statutory / regulatory compliances. The Company has astrong monitoring and reporting process resulting in financial discipline andaccountability.
RISK MANAGEMENT POLICY
Therefore in accordance with the provisions of the Companies Act 2013 the Boardmembers were informed about risk assessment and minimization procedures after which theBoard formally adopted steps for framing implementing and monitoring the risk managementplan for the company. The main objective of this policy is to ensure sustainable businessgrowth with stability and to promote a pro-active approach in reporting evaluating andresolving risks associated with the business. In order to achieve the key objective thepolicy establishes a structured and disciplined approach to Risk Management in order toguide decisions on risk related issues.
In todays challenging and competitive environment strategies for mitigatinginherent risks in accomplishing the growth plans of the Company are imperative. The commonrisks inter alia are: Regulations competition Business risk Technology obsolescenceInvestments retention of talent and expansion of facilities. Business risk inter-aliafurther includes financial risk political risk fidelity risk legal risk. As a matter ofpolicy these risks are assessed and steps as appropriate are taken to mitigate the same
PARTICULARS OF EMPLOYEES AND OTHER DISCLOSUR
The prescribed particulars of Employees required under Section 197(12) of the CompaniesAct 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 is annexed herewith as Annexure to this Report.
The information required pursuant to Section 197(12) read with Rule 5(2) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 in respect ofEmployees of the Company will be provided on request. In terms of Section 136 of the Actthe reports and accounts are being sent to the members and others entitled theretoexcluding the information on employees particulars mentioned in rule 5(2) of the said rulewhich is available for inspection by the Members at the Registered Office of the Companyduring the business hours on working days of the Company upto the date of ensuing AnnualGeneral Meeting. If any Member is interest in inspecting the same such Member may writeto the Compliance officer in advance.
NAME OF THE COMPANIES WHICH HAVE BEEN BECOME OR CEASED TO BE ITS SUBSIDIARIES ANDASSOCIATE COMPANIES DURING THE YEAR
Since the Company has no subsidiaries as on 31st March 2016 provision of section 129of the Companies Act 2013 is not applicable.
STATE OF COMPANY AFFAIRS:
The Company is complying with all the applicable laws and provisions and there is noadverse action against the business operations of the Company.
The Board has recommended the ratification of appointment of M/s. Sushil Upadhyay& Associates having (Firm registration no. 018851C) by the shareholders at theforthcoming Annual General meeting. The Company has received a letter from M/s. SushilUpadhyay & Associates having (Firm registration no. 018851C confirming theireligibility under Section 141 of the companies Act 2013.
The Notes on Financial Statements referred to in the Auditors Report areself-explanatory and therefore in the opinion of the Directors do not call for furthercomments.
EXTRACT OF THE ANNUAL RETURN
Pursuant to the provisions of Sect ion 134 (3) (a) of the Companies Act 2013 Extractof the Annual Return for the f financial year ended 31st March 2016 made under theprovisions of Sect ion 92 (3) of the Act in Form MGT -9 is annexed herewith as Annexure.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars as required under the provisions of Section 314(3)(m) of the CompaniesAct 2013 read with Rule 8(3) of The Companies (Accounts) Rules 2014 in respect ofConservation of Energy and Technology Absorption have not been furnished considering thenature of activities undertaken by the Company during the year under review.
There was no foreign exchange earning & outgo during the financial year underreview. CORPORATE SOCIAL RESPONSIBILITY (CSR)
During the year under review the Company is not required to comply with the provisionsrelated to Corporate Social Responsibility on the basis of its financial statement.
DIRECTORS & COMMITTEES: a) Changes in Directors and Key Managerial Personnel
During the year under review No Change in Directors and Key Managerial Personnel b)Declaration by an Independent Director(s) and re- appointment if any
All Independent Directors have given declaration that they meet the criteria ofindependence as laid down under Section 149(6) of the Companies Act and ListingAgreement.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS a. BOARD MEETINGS
During the year 8 Board Meetings were convened and held. The details of which are givenbelow. The intervening gap between the Meetings was within the period prescribed under theCompanies Act 2013.
|S. No. Date of meeting ||Total No. of Directors on the Date of Meeting ||No. of Directors attended |
|1. 29.05.2015 ||4 ||4 |
|2. 15.07.2015 ||3 ||3 |
|3. 03.08.2015 ||3 ||3 |
|4. 27.08.2015 ||3 ||3 |
|5. 14.11.2015 ||3 ||3 |
|6. 09.12.2015 ||3 ||3 |
|7. 14.02.2016 ||3 ||3 |
|8. 21.03.2016 ||3 ||3 |
EXTRAORDINARY GENERAL MEETINGS DURING THE FINANCIAL YEAR 2015-16
There is no Extraordinary General Meeting Convened During the Financial Year 2015-16.
The Board has well-qualified Audit Committee with majority of Independent Directorsincluding Chairman. They possess sound knowledge on Accounts Audit Finance TaxationInternal Controls etc.
The Audit Committee also advises the Management on the areas where internal controlsystem can be improved. The Terms of reference of the Audit Committee are in accordancewith Section 177 of the Companies Act2013 as follows:
Oversight of the Issuers financial reporting process and the disclosure ofits financial information to ensure that the financial statement is correct sufficientand credible;
Recommending to the Board the appointment re-appointment and if requiredthere
placement or removal of the statutory auditor and the fixation of audit fees.
Approval of payment to Statutory Auditors for any other services rendered by thestatutory auditors.
Reviewing with the management the annual financial statements beforesubmission to the board for approval with particular reference to: (i) Matters requiredto be included in the Directors Responsibility Statement to be included in theBoards report in terms of clause (2AA) of Section 217 of the Companies Act 1956;(ii) Any changes in accounting policies and practices and reasons for the same; (iii)Major accounting entries involving estimates based on exercise of judgment by management;(iv) Significant adjustments made in the financial statements arising out of auditfindings; (v) Compliance with listing and other legal requirements relating to financialstatements; (vi) Disclosure to any related party transactions; (vii) Qualifications in thedraft audit report.
Reviewing with the management the half yearly financial statements beforesubmission to the Board for approval.
Reviewing with the management performance of statutory and internal auditorsadequacy of internal control systems;
Reviewing the adequacy of internal audit function including the structure ofthe internal audit department staffing and seniority of the official heading thedepartment reporting structure coverage and frequency of internal audit.
Discussion with internal auditors any significant findings and follow upthereon;
Reviewing the findings of any internal investigations by the internal auditorsinto matters where there is suspected fraud or irregularity or a failure of internalcontrol systems of a material nature and reporting the matters to the Board;
Discussion with Statutory auditors before the audit commences about the natureand scope of audit as well as post-audit discussion to ascertain any area of concern;
Carrying out any other function as is mentioned in the terms of reference of theAudit Committee.
During the year ended on 31st March 2016 the composition of Audit Committee has beenas under:
|a) Mr. Seema Shankar ||(Chairman) |
|b) Mr. Inderpal ||(Member) |
|c) Mr. Arjun ||(Member) |
During the financial year 2015-16 Four (4) meeting of Audit Committee were held i.e.29.05.2015 27.08.2015 14.11.2015 and 14.02.2016.
NOMINATION & REMUNERATION COMMITTEE
The Company has duly constituted Nomination and Remuneration Committee to align withthe requirements prescribed under the provisions of the Companies Act 2013.
|a) Mr. Inder Pal ||(Chairman) |
|b) Ms. Seema Shankar ||(Member) |
|c) Mr. Arjun Singh ||(Member) |
During the financial year 2015-16 One meeting of Nomination & RemunerationCommittee was held on 29.05.2015.
TERMS OF REFERENCE
The terms of reference of Committee includes the following:
The committee recommends to the board the compensation terms of the executivedirectors.
The committee to carry out evolution of every directors performance and recommendto the board his/her appointment and removal based on the performance.
The committee to identify persons who may be appointed in senior management/Director inaccordance with the criteria laid down.
Framing and implementing on behalf of the Board and on behalf of the shareholders acredible and transparent policy on remuneration of executive directors including ESOPPension Rights and any compensation payment.
Considering approving and recommending to the Board the changes in designation andincrease in salary of the executive directors.
Ensuring the remuneration policy is good enough to attract retain and motivatedirectors.
Bringing about objectivity in deeming the remuneration package while striking a balancebetween the interest of the Company and the shareholders."
STAKEHOLDER RELATIONSHIP COMMITTEE
Our Company has constituted a Stakeholder Relationship Committee to redress thecomplaints of the shareholders. The committee currently comprises of three Directors. Mr.Inderpal is the Chairman of the committee.
|a) Mr. Inderpal ||(Chairman) |
|b) Mr. Arjun Singh ||(Member) |
|c) Ms. Seema Shankar ||(Member) |
During the financial year 2015-16 Four (4) meeting of Stakeholder RelationshipCommittee was held i.e. 29.05.2015 27.08.2015 14.11.2015 and 14.02.2016.
ROLE OF STAKEHOLDER RELATIONSHIP COMMITTEE
The Stakeholder Relationship Committee of our Board look into:
The redressal of investors complaints viz. non-receipt of annual report dividendpayments etc.
Matters related to share transfer issue of duplicate share certificatedematerializations.
Also delegates powers to the executives of our Company to process transfers etc.
The status on various complaints received / replied is reported to the Board ofDirectors as an Agenda item.
During the year under review the Composition of the Stakeholder Relationship Committeehas been as under:
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM FOR DIRECTORS AND EMPLOYEES
During the year as per Section 177(9) read with Rule 7(1) of The Companies (Meeting ofBoard and its Powers) Rules 2014 Company is required to establish a Vigil Mechanism forits Directors and employees. In order to ensure that the activities of the Company and itsemployees are conducted in a fair and transparent manner by adoption of highest standardsof professionalism honesty integrity and ethical behavior the company has adopted avigil mechanism policy. This policy is explained in corporate governance report and alsoposted on the website of company.
PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS UNDER SECTION 186
During the year Company has not provided Loans Guarantees and Investments coveredunder the provisions of Section 186 of the Companies Act 2013.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
The Company has no material significant transactions with its related parties which mayhave a potential conflict with the interest of the Company at large. The details oftransactions with the Company and related parties are given for information under notes toAccounts.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITIONAND REDRESSAL) ACT 2013
In order to prevent sexual harassment of women at workplace; the provisions of SexualHarassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013 areeffective in the Company. Under the said Act every company is required to set up anInternal Complaints Committee to look into complaints relating to sexual harassment atworkplace of any women employee. The Company has in place an Anti Sexual Harassment Policyin line with the requirements of the Sexual Harassment of Woman at Workplace (PreventionProhibition and Redressal) Act 2013. All women employees (permanent contractualtemporary and trainee) are covered under this Policy.
The following is a summary of Sexual Harassment complaints received and disposed offduring the year: a. No. of Complaints received: 0 b. No. of Complaints disposed off : 0MANAGERIAL REMUNERATION POLICY
Provisions relating to Managerial Remuneration as per Section 197 read with Rule 5 ofThe Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 The Boardhave on the recommendation of the Nomination & Remuneration Committee framed a Policyfor Selection and appointment of Directors Senior management and their Remuneration.
SECRETARIAL AUDIT REPORT AND EXPLANATION TO THE QUALIFICATIONS REPORTED IN THE REPORT
Provisions relating to Secretarial Audit as per Section 204 read with Rule 9 of TheCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 the Companyhas appointed Ms. Preeti Sharma Proprietor of Preeti Sharma & AssociatesCompany Secretaries to undertake the Secretarial audit of the Company. The SecretarialAuditor Report provided By the Secretarial Auditor in Form No. MR-3 has been enclosed asAnnexure. Explanation to the observations as notice in the Audit Report: The Management issearching the best person for the position and the Company will strive to complete thepending e - filing with Registrar of Companies NCT of Delhi & Haryana.
DIRECTORS RESPONSIBILITY STATEMENT
The Directors Responsibility Statement referred to in clause (c) of sub-section(3) of Section 134 of the Companies Act 2013 shall state that (a) In the preparation ofthe annual accounts the applicable accounting standards had been followed along withproper explanation relating to material departures; (b) the directors had selected suchaccounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs ofthe company at the end of the financial year and of the profit and loss of the company forthat period; (c) The directors had 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;(d) The directors had prepared the annual accounts on a going concern basis; and
(e) The directors in the case of a listed company had laid down internal financialcontrols to be followed by the company and that such internal financial controls areadequate and were operating effectively. (f) The directors had devised proper systems toensure compliance with the provisions of all applicable laws and that such systems wereadequate and operating effectively.
The board wishes to express and place on records its gratitude for the faith reposed inand cooperation extended to the company by the shareholders of the company. Your directorswish to place on record their deep sense of appreciation for the devoted and sincereservices of the executives staff and workers of the company for its success.
| ||FOR AND ON BEHALF OF THE BOARD |
| ||For KD TREND WEAR LIMITED |
|Sd/- ||Sd/- |
|Inderpal ||Arjun Singh |
|DIN: 06799345 ||DIN: 06577252 |