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Lakhotia Polyesters (India) Ltd.

BSE: 535387 Sector: Industrials
NSE: N.A. ISIN Code: INE191O01010
BSE 00:00 | 01 Aug Lakhotia Polyesters (India) Ltd
NSE 05:30 | 01 Jan Lakhotia Polyesters (India) Ltd
OPEN 8.84
PREVIOUS CLOSE 8.84
VOLUME 10
52-Week high 9.20
52-Week low 8.84
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 8.84
Sell Qty 52.00
OPEN 8.84
CLOSE 8.84
VOLUME 10
52-Week high 9.20
52-Week low 8.84
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 8.84
Sell Qty 52.00

Lakhotia Polyesters (India) Ltd. (LAKHOTIAPOLY) - Director Report

Company director report

DIRECTORS REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS

To

The Shareholders

Lakhotia Polyesters India Limited

Your Directors are pleased to present the 13th Annual Report on the business andoperations of the Company and the accounts for the Financial Year ended March 31 2018.

1. FINANCIAL SUMMARY OR HIGHLIGHTS / PERFORMANCE OF THE COMPANY

The Board’s Report shall be prepared based on the standalone financial statementsof the Company.

Particulars FINANCIAL YEAR
2017-18 2016-17
Total Income 212395601 171933082
Less: Expenditure 204885108 163815504
Profit Before Finance Cost Depreciation & Tax 7510493 8117578
Less: Finance Cost 6663584 5857130
Less: Depreciation 1521412 1523009
Net Profit Before Tax & Extraordinary Item (674503) 737439
Less: Extraordinary Item 0 0
Less :Tax Expense (1716984) 367095
Net Profit After Tax 1042481 370344

2. BRIEF DESCRIPTION OF THE COMPANY’S OPERATIONS DURING THE YEAR / STATE OFCOMPANY’S AFFAIR

During the current period of operation your company has shown an increase in therevenue to the extent of from Rs.17.19 crores during FY 2016-17 to Rs. 21.24 crores duringFY 2017-18. Profit after Tax of the company is Rs.10.42 lakhs during FY 2017-18 ascompared to Rs. 3.70 Lakhs during FY 2016-17.

3. FINANCIAL YEAR

This report of Directors along with its Annexure Management Discussion and AnalysisCorporate Governance Report Financial Statements along with their Notes are prepared forthe period April 01 2017 to March 31 2018 (a period of 12 months). Pursuant to theprovisions of Section 2(41) of the Companies Act 2013 a ‘financial year’ inrelation to the Company means the period ending on the 31st day of March every year inrespect whereof financial statement of the Company is made. Your Company is in compliancewith the provisions of the Companies Act 2013.

4. DIVIDENDS

The Company has decided to sustain the growth in line with the long-term growthobjectives of the Company by retaining the profits and utilizing the same foropportunities in hand therefore the company does not recommend any dividend.

5. SHARE CAPITAL

During the period April 01 2017 to March 31 2018 during the year under review theCompany has not issued shares with differential voting rights nor has granted any stockoptions or sweat equity and there is no change in the Issued Subscribed and paid up shareCapital of Company. The Share Capital Audit as per the directives of the Securities andExchange Board of India (SEBI) is being conducted by

Ranjana Mimani & Associates Practicing Company Secretaries. The paid-up ShareCapital of the Company stands at Rs.104739880/- (Rupees Ten Crores Forty-Seven LakhThirty-Nine Thousand and Eight Hundred and Eighty Only).

6. RESERVES

No amount has been transferred by the Company to Reserves during the year.

7. PUBLIC DEPOSITS

The Company has neither invited nor accepted any public deposits during the periodunder review.

8. SUBSIDIARY AND ASSOCIATE COMPANIES

As on March 31 2018 Company does not have anyAssociate Company .

9. CONSOLIDATED FINANCIAL STATEMENT

The Company is not required to consolidate its financial statements in terms ofprovisions of Companies Act 2013 and rules thereunder.

10. DIRECTORS AND KEY MANAGERIAL PERSONNEL

a. In accordance with the provisions of the Section 152 Companies Act 2013 read withapplicable Rules if any Mr. Ashokkumar Gulabchand Khajanchi (DIN: 01532044) retires byrotation at the ensuing Annual General Meeting and being eligible offers himself forre-appointment. As per the provisions of the Companies Act 2013 Independent Directorshave been appointed for a period of five years and shall not be liable to retire byrotation. All other Directors except the Managing Director will retire at the ensuingAnnual General Meeting and being eligible offer themselves for re-election.

b. Mr. Madhusudhan Lakhotia is the Managing Director of the Company and Mr. Vivek Rathiis the Chief Financial Officerand Compliance Officer of the Company.

c. The Independent Directors of your Company have given the certificate of independenceto your Company stating that they meet the criteria of independence as mentioned underSection 149(6) of the Companies Act 2013.

d. The policy on Director’s appointment and remuneration including criteria fordetermining qualifications positive attributes independence of Director andremuneration for Key Managerial Personnel and other employees forms part of the CorporateGovernance Report of this Annual Report.

11. DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the Directors’ Responsibility Statement referred to in clause (c) ofsub-section (3) of Section 134 of the Companies Act 2013 the Board of Directors of theCompany confirm that —

a) In the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation and there are no material departures from thesame;

b) The Directors had 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 yearviz.March 31 201 8 and of the profit and loss of the company for that period;

c) The Directors had 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 had prepared the annual accounts on a going concern basis; and

e) 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

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

12. NUMBER OF MEETINGS OF BOARD OF DIRECTORS

During the Financial Year 2017-18 the Board of Directors of the Company met on May 222017 August 14 2017 September 04 2017 November 14 2017 November 23 2017 andFebruary 14 2018.

Frequency and quorum at these meetings were in conformity with the provisions of theCompanies Act 2013 and the SEBI (Listing Obligations and Disclosure Requirements) 2015entered into by the company with the Stock Exchanges. All the Board members and the seniormanagement personnel have affirmed compliance with the Code of Conduct during the yearended on 31st March 2018.

13. COMMITTEES OF THE BOARD

1. Audit Committee

2. Nomination and Remuneration Committee

3. Stakeholders’ Relationship Committee

Details of Committee and their meetings are detailed in Corporate Governance Report.

14. BOARD EVALUATION

Pursuant to the provisions of Companies Act 2013 and SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 the board has carried out an annualperformance evaluation of its own performance the Directors individually as well as theevaluation of the working of its Audit Committee Nomination and Remuneration Committeeand Stakeholders Relationship Committee. The manner in which the evaluation has beencarried out has been explained in the Corporate Governance Report.

15. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS BY THE COMPANY

Details of Loans Guarantees and Investments covered under the provisions of Section186 of the Companies Act 2013 (if any) are given in the notes to the FinancialStatements.

16. CONSERVATION OF ENERGY TECHNICAL ABSORPTION FOREIGN EXCHANGE EARNING:

(A) Conservation of Energy

Your company is taking continuously taking initiatives to ensure optimum utilization ofenergy available in day to day operations. Your company uses energy efficient lightingdevices light fittings to save energy capacitor bank/devices to maintain power factorwhich are environment and power efficient.

(B) Technology Absorption

Your company is doing its business by ensuring optimum utilisation of its availableresources. Your company has not taken any research & development activity so far.

(C) Foreign Exchange Earnings and Outgo

The Company has not incurred in foreign currency during the financial year 2017-18.

17. VIGIL MECHANISM AND WHISTLE BLOWER POLICY

The Company has a Whistle Blower Policy to report genuine concerns or grievances. TheWhistle Blower Policy has been posted on the website of the Company www.lakhotiapoly.in.

18. NOMINATION AND REMUNERATION POLICY

The Board of Directors has framed a policy which lays down a framework in relation toremuneration of Directors Key Managerial Personnel and Senior Management of the Company.This policy also lays down criteria for selection and appointment of Board Members.

19. CORPORATE SOCIAL RESPOSIBILITY:

The Company has not developed and implemented any Corporate Social Responsibilityinitiatives as provisions of Section 135 of the Companies Act 2013 are not applicable tothe Company.

20. SIGNIFICANT AND MATERIAL OREDERS PASSED BY REGULATORS OR COURTS

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

21. ADEQUACY OF INTERNAL CONTROL SYSTEM

The Company has adequate internal control systems for the business processes in respectof all operations financial reporting compliance with laws and regulations etc. Themanagement information system forms an effective and sound tool for monitoring andcontrolling all operating parameters. Regular internal audits ensure that responsibilitiesare executed effectively. The Audit Committee reviews the adequacy of internal controls onregular basis.

22. CODE OF CONDUCT

The Board has laid down a Code of Conduct for all Board members and senior managementpersonnel of the Company which is available on website of the company. The Company hasobtained confirmations for the compliance with the said code from all its Board membersand senior management personnel for the year ended March 31 2018.

23. DECLARATION OF INDEPENDENCE BY INDEPENDENT DIRECTORS

All the Independent Non-Executive Directors of the Company viz. Mr. Sajan ChoudharyMr. Shailesh Mistry and Mr. Anil Patodia have submitted the declaration of independenceas required pursuant to Section 149(7) of the Companies Act 2013 stating that they meetthe criteria of independence as laid down under Section 149(6) of the Companies Act 2013and Regulation 16(1)(b) of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015. The Independent Directors have also confirmed that they have compliedwith the Company’s Code of Conduct.

24. STATUTORY AUDITORS

M/s R R Gujrathi & Co. Chartered Accountants were appointed as Statutory Auditorsof your Company in 2017 for a term of five consecutive years.

The Report given by the Auditors on the financial statements of the Company is part ofthe Annual Report. There has been no qualification reservation adverse remark ordisclaimer given by the Auditors in their Report.

25. 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.

26. NOMINATION AND REMUNERATION COMMITTEE

The Company follows a policy on "Nomination and Remuneration of Directors Keymanagerial Personnel and Senior Management". The policy is approved by the Nomination& Remuneration Committee and the Board. More details on the same are given in AnnexureII.

27. RELATED PARTY TRANSACTIONS

Form AOC-2 as required under the Companies Act 2013 for related party transaction isannexed as Annexure III to the Directors Report.

28. SECRETARIAL AUDITORS

The Board of Directors have appointed M/s. R. M. Mimani & Associates as SecretarialAuditors to conduct Secretarial Audit for the Financial Year 2017-18. The SecretarialAudit Report issued by M/s. R. M. Mimani & Associates Company Secretaries in Practiceis self-explanatory and does not call for further comments. The Secretarial Audit Reportand Management reply on the qualifications stated in the said Report forms a part ofDirectors Report in

Annexure IV.

29. AUDIT COMMITTEE

The composition of Audit Committee is as follows:

Name of Directors Designation in Committee Category
Mr. Sajan Choudhary Chairman Non-Executive and Independent
Mr. Shailesh Mistry Member Non-Executive Independent
Mr. Madhusudan Lakhotia Member Chairman & Managing Director

During the Financial Year 2017-18 Audit Committee met 5 times on May 20 2017 August10 2017 November 10 2017 November 23 2017 and February 13 2018. All therecommendations made by the audit committee were accepted by the board.

Frequency and quorum at these meetings were in conformity with the provisions of theCompanies Act 2013 Listing Agreement and SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 entered into by the company with the Stock Exchanges.

30. BUSINESS RISK MANAGEMENT

The Company has a robust Business Risk Management (BRM) framework to identify evaluatebusiness risks and opportunities. This framework seeks to create transparency minimizeadverse impact on the business objectives and enhance the Company’s competitiveadvantage. The business risk framework defines the risk management approach across theenterprise at various levels including documentation and reporting. The framework hasdifferent risk models which help in identifying risks trend exposure and potential impactanalysis at a Company level as also separately for business. The Company has adopted riskmanagement policy.

31. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITION AND REDRESSAL) ACT 2013

The Company has always believed in providing a safe and harassment free workplace forevery individual through various interventions and practices. The Company alwaysendeavours to create and provide an environment that is free from discrimination andharassment including sexual harassment. The Company has in place an Anti-Sexual HarassmentPolicy in line with the requirements of The Sexual Harassment of Women at the Workplace(Prevention Prohibition & Redressal) Act 2013. Internal Complaints Committee (ICC)has been set up to redress complaints received regarding sexual harassment. All employees(permanent contractual temporary trainees) are covered under this policy. No complaintswere received by the company during the year for sexual harassment. In order to buildawareness in this area the Company has been conducting programmes in the organisation ona continuous basis.

32. PARTICULAR OF EMPLOYEES

Particulars of employees as required u/s 134 of the Companies Act 2013 are not annexedsince there are no employees drawing remuneration of more than Rs. 6000000/- per annumduring the year under review if employed for full year or more than Rs. 500000/- permonth if employed for part of the year. Further the information required pursuant toSection 197 of the Companies Act 2013 (the Act) read with Rule 5 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 in respect of employeesof the Company will be provided upon request. In terms of Section 136 of the Act theReport and Accounts are being sent to the Members and others entitled thereto excludingthe information on employees’ particulars which is available for inspection by theMembers at the Registered Office of the Company during business hours on working days ofthe Company up to the date of the ensuing Annual General Meeting. If any Member isinterested in obtaining a copy thereof such Member may write to the Compliance Officer inthis regard.

33. MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis Report under requirements of SEBI (ListingObligation and Disclosure Requirements) Regulations 2015 forms part of this AnnualReport for the year ended 31st March 2018.

34. CORPORATE GOVERNANCE

The Company is committed to maintain high standards of corporate governance and adhereto corporate governance requirement set out by SEBI. The report of corporate governance asstipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015forms an integral part of the report. The Compliance certificate from the auditors orpracticing Company Secretaries regarding compliance of conditions of corporate governanceas stipulated in SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015shall be annexed with the report.

35. VIGIL MECHANISM

The Vigil Mechanism of the Company which also incorporates a whistle blower policy interms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015includes an Ethics & Compliance Task Force comprising senior executives of theCompany. Protected disclosures can be made by a whistle blower through an e-mail ordedicated telephone lineor a letter to the Task Force or to the Chairman of the AuditCommittee. The Vigil Mechanism / Whistle Blower Policy has been uploaded on theCompany’s Website i.e. www.lakhotiapoly.in

36. CAUTIONARY STATEMENT

Statements in the Annual Report particularly those which relate to ManagementDiscussion and Analysis describing the Company’s objectives projections estimatesand expectations may constitute ‘forward looking statements’ within the meaningof applicable laws and regulations. Although the expectations are based on reasonableassumptions the actual results might differ.

37. INTERNAL FINANCIALS CONTROLS

The Company has in place adequate internal financial controls with reference tofinancial statements. During the year such controls were tested and no reportablematerial weaknesses were observed.

38. HUMAN RESOURCES

Your Company treats its "human resources" as one of its most importantassets. Your Company continuously invest in attraction retention and development oftalent on an on-going basis. A number of programs that provide focused people attentionare currently underway. Your Company thrust is on the promotion of talent internallythrough job rotation and job enlargement. The Human Resource agenda continues to supportthe business in achieving sustainable and responsible growth by building the rightcapabilities in the organisation. It continues to focus on progressive employee relationspolicies creating an inclusive work culture and a strong talent pipeline.

39. TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND

Your Company did not have any funds lying unpaid or unclaimed for a period of sevenyears. Therefore there were no funds which were required to be transferred to InvestorEducation and Protection Fund (IEPF).

40. DISCLOSURE ABOUT COST AUDIT

As per the Cost Audit Orders Cost Audit is not applicable to the Company.

41. APPRECIATIONS AND ACKNOWLEDGMENTS

The Directors wish to thank and deeply acknowledge the co-operation assistance andsupport extended by the Regulatory Authorities Company’s Bankers CustomersShareholders and other business constituents during the year under review. It will be yourCompany’s endeavour to build and nurture strong links with the trade based onmutuality of benefits respect for and co-operation with each other consistent withconsumer interests. The Directors also wish to place on record their appreciation for allround co-operation and contribution made by employees at all levels.

The Directors also take this opportunity to thank all Shareholders Clients VendorsBanks Government and Regulatory Authorities and Stock Exchanges for their continuedsupport.

For and on behalf of the Board
LAKHOTIA POLYESTERS (INDIA) LIMITED
Sd/- Sd/-
Date: September 07 2018 Madhusudhan Lakhotia Jayshree Lakhotia
Place: Nashik (Managing Director) (Executive Director)