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M K Proteins Ltd.

BSE: 538420 Sector: Industrials
NSE: MKPL ISIN Code: INE964W01013
BSE 00:00 | 28 Mar M K Proteins Ltd
NSE 15:31 | 18 May 189.30 -9.95
(-4.99%)
OPEN

199.25

HIGH

199.25

LOW

189.30

OPEN 10.04
PREVIOUS CLOSE 10.04
VOLUME 24
52-Week high 10.04
52-Week low 0.00
P/E 0.40
Mkt Cap.(Rs cr) 4
Buy Price 10.35
Buy Qty 1400.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.04
CLOSE 10.04
VOLUME 24
52-Week high 10.04
52-Week low 0.00
P/E 0.40
Mkt Cap.(Rs cr) 4
Buy Price 10.35
Buy Qty 1400.00
Sell Price 0.00
Sell Qty 0.00

M K Proteins Ltd. (MKPL) - Director Report

Company director report

To The Members

Your directors have pleasure in presenting the 9th Annual Report together with theAudited Statements of Accounts of the Company for the financial year ended 31st March2021:

1. Financial Highlights:

(In Lacs)
2021-21 2019-20
Revenue from Operations 31109.79 19412.26
Operating Expenditure 29516.51 18933.16
Other Income (Net) 4.80 31.50
Earning before interest tax depreciation and
amortization
(EBITDA) 1598.08 510.60
Finance Costs 74.98 149.18
Depreciation and amortization expenses 90.94 117.10
Profit before exceptional item and tax 1432.16 244.32
Exceptional item 0.00 0.00
Profit Before Tax (PBT) 1432.16 244.32
Tax Expenses 393.27 62.63
Profit After Tax (PAT) 1038.89 181.69
Add: Balance Brought forward from previous year 642.19 461.78
Less: Income Tax for earlier years adjusted (0.31) 1.26
Amount of Surplus available for appropriation 1681.39 642.19

2. Operations State of Company's affairs and Future Outlook:

Our Company is a manufacturing and trading organization having its production/refiningplant of Edible Oils. Our manufacturing process involves refining of Crude Oils to obtainRefined Rice Bran Oil Canola Oil Soya Bean Oil Sunflower Oil and Rice Bran BleachedOil. During the refining process certain by-products are also manufactured such as RiceBran Fatty Acid Oil Rice Bran Wax Gums and Spent Earth which are also saleable. Furtherit also imports crude oils process them and sell the finished product and trade in bothedible and non-edible oils. In the current year 2020-21 the Company has earned the totalrevenue from operation Rs.31109.79 Lacs against the previous year Rs.19412.26 whichreflects growth of 60.26% w.r.t. previous year. The net profit after tax of the company isalso increased from Rs.181.69 Lacs to Rs.1038.89 Lacs in the year 2020-21. The managementof the Company expect better results in the ensuing year because the product of theCompany has demand since its nature of human consumption in the ensuing financial yearand years to come. We further inform that there is no change in the business activities ofthe company in the current financial year.

Effect of COVID – 19: The Company has taken into account all the possible impactsof COVID-19 in preparation of standalone financial statements including but not limitedto its assessment of liquidity and going concern assumption recoverable values of itsfinancial and non-financial assets. The Company has carried out this assessment based onavailable internal and external sources of information up to the date of approval ofstandalone financial statements and believes that the impact of COVID-19 is not materialto these financial statements and expects to recover the carrying amount of its assets.The impact of COVID-19 on the standalone financial statements may differ from thatestimated as at the date of approval of these standalone financial statements owing to thenature and duration of COVID-19.

3. Dividend:

No dividend has been recommended by the Directors this year and consequently no amountshave been transferred to general reserves.

4. Transfer to Reserves:

The board of the Company has decided not to transfer any fund to general reserve out ofthe amount available for appropriation and an amount of surplus Rs.1681.39 Lacs to beretained in the profit and loss account.

5. Change in Share Capital if any

There has been no change in Share Capital of the Company during the financial year2020-21.

6. Listing of Shares

The shares of the Company are listed on the Emerge SME Platform of the National StockExchange of India Limited w.e.f. 18 April 2017. Applicable listing fees have been paid upto date. The shares of the Company have not been suspended from trading at any time duringthe year by the concerned Stock Exchange.

7. Deposits:

The company has not accepted any deposits from the public during the year and as suchno amount on account of principal or interest on deposits from public was outstanding ason the date of the balance sheet.

8. Directors:

As per the provisions of Section 152 of the Companies Act 2013 Sh. Parmod KumarDirector of the Company retires by rotation at the forthcoming Annual General Meeting andbeing eligible offered himself for re-appointment. The Board recommends hisre-appointment.

The notice convening the Annual General Meeting includes the proposal for appointmentof Director.

Further your Company has also received declarations from all the Independent Directorsof the Company confirming that they meet with the criteria of Independence as prescribedunder the Act and as per Listing Agreement with the Stock Exchanges.

9. Board Evaluation:

Pursuant to the provisions of the Companies Act 2013 and Clause 49 of the ListingAgreement the Board has carried out the annual performance evaluation of its ownperformance the Directors individually as well as the valuation of the working of itsvarious committees as per the criteria of evaluation provided in the NominationRemuneration and Evaluation Policy adopted by the Company. The performance evaluation ofIndependent Directors was carried out by the entire Board and the performance evaluationof the Chairman and the Board as a whole was carried out by the Independent Directors.

10. Meetings of the Board:

The Board of Directors of your company met 06 times during 2020-21. The meetings wereheld on 16/06/2020 31/07/2020 04/09/2020 13/11/2020 19/01/2021 and 22/03/2021. Theintervening gap between the meetings was within the period prescribed under the CompaniesAct 2013.

11. Particulars of Loan given Investment made Guarantee given and Securitiesprovided:

There were no loans given investment made guarantee given and securities provided bythe Company under Section 186 of the Companies Act 2013 during the year under review andhence the said provision is not applicable.

12. Extract of Annual Return:

As provided under Section 92(3) of the Act the extract of annual return is given inAnnexure I in the prescribed Form MGT-9 which forms part of this report.

13. Subsidiary Joint Ventures and Associate Concerns:

The Company does not have any Subsidiary Joint Ventures or Associate Concerns as on31st March 2021.

14. Corporate Governance:

The Company has been exempt from reporting on Corporate Governance as per Regulation 15of the SEBI (Listing Obligation and Disclosure requirements) Regulation 2015. ThereforeCorporate Governance Report is not provided.

15. Management's Discussion and Analysis Report

Management's Discussion and Analysis Report for the year under review as stipulatedunder SEBI (Listing obligation and Disclosure Requirements) Regulations 2015 asapplicable is presented in a separate section forming part of the Annual Report.

16. Directors' Responsibility Statement:

In accordance with the provisions of Section 134(5) of the Companies Act 2013 thedirectors hereby confirm that: i) in the preparation of the annual accounts for thefinancial year ended 31st March 2021 the applicable accounting standard have beenfollowed and there are no material departures; ii) they have selected such accountingpolicies and applied them consistently and made judgments and estimates that arereasonable and prudent so as to give a true and fair view of the state of affairs of theCompany as at 31st March 2021 and of the profit of the Company for the period from 1stApril 2020 to 31st March 2021; iii) they have taken proper and sufficient care for themaintenance of adequate accounting records in accordance with the provisions of theCompanies Act 2013 for safeguarding the assets of the company and for preventing anddetecting fraud and other irregularities; iv) they have prepared the annual accounts on agoing concern basis; v) they have laid down internal financial controls to be followed bythe Company and such internal financial controls are adequate and operating effectively;and vi) they have devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems were adequate and operating effectively.

17. Contract and arrangements with Related Parties:

The Company's policy on dealing with related party transactions has been formulated andamended from time to time. All contracts/arrangements/ transactions entered by the Companyduring the financial year with related parties were in the ordinary course of business andon the arm's length basis. There are no materially significant related party transactionsmade by the company with promoters directors key managerial personnel or otherdesignated persons which may have a potential conflict with the interest of the companyat large. Your Directors draw attention of the members to Note 29(h) to the financialstatements which set out related party disclosures pursuant to listing agreement.Information on transactions with related parties pursuant to Section 134(3)(h) of the Actread with rule 8(2) of the Companies (Accounts) Rules 2014 are given in Annexure II inForm AOC-2 and the same forms part of this report.

18. Auditor and Auditors' Report:

M/s Jayant Bansal & Co. Chartered Accountants Ambala Cantt Statutory Auditors ofthe company holds office till the conclusion of the ensuing Annual General Meeting andare eligible for appointment and ratification and approval of their appointment for thefinancial year ending 31st March 2022.

M/s Jayant Bansal & Co. Chartered Accountants Ambala Cantt who were appointed asStatutory Auditors for a period of 3 years from 31st March 2020 to 31st March 2022 beingeligible for appointment and approval at this Annual General Meeting had agreed to actStatutory Auditors to the Company for the financial years ending 31st March 2020 to 31stMarch 2022.

As required under the provisions of section – 139(1) of the Companies Act 2013the company has received a written consent from M/s Jayant Bansal & Co. CharteredAccountant to their appointment and a certificate to the effect that theirre-appointment if made would be in accordance with the Act and the Rules framed thereunder and that they satisfy the criteria provided in section- 141 of Companies Act 2013.The Board recommends ratification of their appointment for the financial years ending 31stMarch 2022.

The report of Statutory Auditors (appearing elsewhere in this Annual Report) isself-explanatory having no adverse comments. There were no instances of fraud reported bythe Statutory Auditors to the Central Government or to the Audit Committee of the Companyas indicated under the provisions of Section 143(12) of the Companies Act 2013.

Further auditor's report for the financial year ended 31st March 2021 is given as anannexure which forms part of this report.

19. Secretarial Auditors:

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 J. P. Jagdev & Co. Ambala City a firm of Company Secretaries inpractice to conduct Secretarial Audit for the financial year 2020-21. The SecretarialAudit Report for the financial year ended 31st March 2021 is annexed herewith as AnnexureIII to this Report. The Secretarial Audit Report does not contain any qualificationreservation or adverse remark.

20. Corporate Social Responsibility (CSR):

The Company is not required to constitute a Corporate Social Responsibility Committeeas it does not fall within purview of Section 135(1) of the Companies Act 2013 and henceit is not required to formulate policy on corporate social responsibility.

21. Risk Management:

The board of the Company has formed a risk management committee to frame implementand monitor the risk management plan for the Company. The Committee is responsible forreviewing the risk management plan and ensuring its effectiveness. The audit committee hasadditional oversight in the area of financial risks and controls. Major risks identifiedby the businesses and functions are systematically addressed through mitigating actions ona continuing basis.

22. Internal Control System and their adequacy:

The Company's internal controls are commensurate with the size of the company and thenature of its business. These have been designed to provide reasonable assurance withregard to recording and providing reliable financial and operational informationcomplying with applicable statutes safeguarding assets from unauthorized use executingtransactions with proper authorization and ensuring compliance of corporate policies. Thecompany has an audit committee the details of which are provided in the CorporateGovernance Report. The audit committee reviews the internal control system and follows upon the implementation of corrective actions if required. The committee also meets thecompany's statutory auditors to ascertain interalia their views on the adequacy ofinternal control system in the Company and keeps the Board of Directors informed of itsmajor observations from time to time. The management also regularly reviews theutilization of fiscal resource compliance with law efficiencies so as to ensure optimumutilization of resources and achieve better efficiencies. Based on its evaluation (asdefined in section 177 of Companies Act 2013) our audit committee has concluded that asof March 31 2021 our internal financial controls were adequate and operatingeffectively.

23. Vigil Mechanism Policy:

The Company has a vigil mechanism policy which also incorporates a whistle blowerpolicy in line with the provisions of the Section 177(9) and (10) of the Companies Act2013 and regulation 22 of the Listing Regulations which deals with the genuine concernsabout unethical behaviour actual or suspected fraud and violation of the Company's Codeof Conduct and ethics.

24. Committees of Board:

The Board of Directors of your Company had already constituted various committees incompliance with the provisions of the Companies Act 2013 and Listing Agreement viz. AuditCommittee Nomination and Remuneration Committee and Shareholder's/Investor's RelationshipCommittee. All decisions pertaining to the constitution of committees appointment ofmembers and fixing the terms of reference / role of the Committees are taken by the Boardof Directors. Detail of the role and composition of Committees including the number ofmeetings held during the financial year and attendance at meetings are provided inannexure - IV which forms part of this report.

25. Conservation of Energy Technology absorption and foreign exchange earning andoutgo:

Information required under Section 134(3) (m) of Companies Act 2013 read withCompanies (Accounts) Rules 2014 is given as under:

(A) Conservation of energy:

(i) The steps taken or impact on conservation of energy: The Company is usingGovernment supply of electricity and own generation by its generators.

(ii) The steps taken by the company for utilizing alternate sources of energy: Thereare no alternate sources of energy with the Company.

(iii) The capital investment on energy conservation equipments: Investment on energyconservation equipments is made wherever it is possible mostly it is NIL.

(B) Technology absorption:

(i) The efforts made towards technology absorption: Plant and machinery are indigenousand no machinery and technology has been imported by the Company

(ii) The benefits derived like product improvement cost reduction product developmentor import substitution: Indigenous machinery is state of Art and the company derivesbenefits on cost reduction of production.

(iii) In case of imported technology (imported during the last three years reckonedfrom the beginning of the financial year) - : No technology has been imported by theCompany.

(iv) The expenditure incurred on Research and Development: No specific expenditure isincurred on Research and Development.

(C) Foreign exchange earnings and Outgo:

The Company's main line of business is processing of vegetable edible oils. The Companyhas not earned and spent foreign exchange except import of material during the currentyear. The details are given below: -

(Rs. In Lacs)
Foreign exchange earnings and outgo 2020-21 2019-20
a. Export of Goods during the year NIL NIL
b. CIF Value of Imports 4042.41 NIL
c. Expenditure in Foreign Currency NIL NIL
d. Capital Goods Expenditure NIL NIL

26. Nomination Remuneration and Evaluation Policy:

The Nomination Remuneration and Evaluation Policy recommended by the Nomination andRemuneration Committee is duly approved by the Board of Directors of the Company and thesame are provided in annexure – IV which forms part of this report.

27. Human Resources:

Your Company treats its "human resources" as one of its most important assetsand has taken continuous efforts to set up and maintain an efficient work force. Thecompany is continuously taken steps towards maintaining a low attrition rate which itbelieves shall be achieved by investing in learning and development programmes foremployees competitive compensation creating a compelling work environment empoweringemployees at all levels as well as a well-structured reward and recognition mechanism.

28. Particulars of Employees:

I) The information required under Section 197 of the Act read with rule 5(1) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 are givenbelow:

a. The ratio of the remuneration of each director to the median remuneration of theemployees of the Company for the financial year:

Executive Director Ratio to median
Remuneration
1 Sh. Vinod Kumar (Managing Director) 0.20:1
2. Sh. Raj Kumar (Whole Time Executive Director) 0.20:1

Note: The Company has not given any remuneration/benefits to non-executive/independentdirectors of the company during the year 2020-21 except directors' sitting feeRs.250000.00 to Non-executive Independent directors.

b. The percentage increase in remuneration of each director chief executive officerchief financial officer company secretary in the financial year:

Directors Company Secretary and Financial Officer % increase in remuneration in the financial year
1 Sh. Vinod Kumar (Managing Director) NIL
2. Sh. Raj Kumar (Whole Time Executive Director) NIL
3. Ms. Prerna Mehta (Company Secretary) NIL
4. Sh. Nipun Garg (Financial Officer) NIL

c. The percentage increase in the median remuneration of employees in the financialyear: 2.5%

d. The number of permanent employees on the rolls of Company: 38 Employees as on 31stMarch 2021.

e. The explanation on the relationship between average increase in remuneration and

Company performance: The performance of the Company for the current financial year isbetter than the previous year. The Company has minor increase in remuneration to ExecutiveDirector/key managerial personnel. However at Middle & Junior level management theproper increment was given in accordance with the inflation rate and at workmen and stafflevel.

f. Comparison of the remuneration of the key managerial personnel against theperformance of the Company: Remuneration to Managing and Whole Time directors were paid asper the scale approved by the members of the company. The head (Corporate Finance) waspromoted to the position of Financial Officer hence he was given an increase as a part ofpromotion and salary adjustment.

g. Variations in the market capitalization of the Company price earnings ratio as atthe closing date of the current financial year and previous financial year:

Particulars March 31 2021 March 31 2020 % Change
Market Capitalization (Rs. In Lacs) 3334.55 2977.95 11.97%

h. Percentage increase over decrease in the market quotations of the shares of theCompany in comparison to the rate at which the Company came out with the Last publicoffer:

Particulars March 31 2021 March 31 2020 % Change
Market Price (NSE) 79.95 71.40 11.97%
(Average Price) (Average Price)

i. Average percentile increase already made in the salaries of employees other than themanagerial personnel in the last financial year and its comparison with the percentileincrease in the managerial remuneration and justification thereof and point out if thereare any exceptional circumstances for increase in the managerial remuneration: Properincrements at both managerial and staff/worker level has been given in financial year2020-21.

j. Comparison of each remuneration of the key managerial personnel against theperformance of the Company: The head (Corporate Finance) was promoted to the position ofFinancial Officer hence he was given an increase as a part of promotion and salaryadjustment.

k. The key parameters for any variable component of remuneration availed by thedirectors: No such variable component is included in the remuneration paid to directors.

l. The ratio of the remuneration of the highest paid director to that of the employeeswho are not directors but receive remuneration in excess of the highest paid directorduring the year: Sh. Raj Kumar (Whole Time Director): 0.20:1

m. Affirmation that the remuneration is as per the remuneration policy of the Company:The Company affirms remuneration is as per the remuneration policy of the Company.

II. There was no employee on the roll of the company who drew remuneration in excess ofthe limits prescribed by the provisions of Section 197(12) of the Companies Act 2013 readwith Rules 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel)Rules 2014 hence this relevant information is not applicable to the Company.

29. Disclosure under sexual harassment of women at workplace (Prevention Prohibition&

Redressal) Act 2013:

The company has complied with provisions relating to the constitution of InternalComplaints Committee under the Sexual Harassment of Women at Workplace (PreventionProhibition and Redressal) Act 2013 (114) of 2013.

30. CFO Certification:

In compliance with Regulation 17(8) of the Listing Regulations a declaration by CFOwas placed before the Board certifying the accuracy of Financial Statements and theadequacy of internal controls pertaining to Financial Reporting for the year ended 31stMarch 2021 is attached herewith as per Annexure - V.

31. Auditors' Certificate on Corporate Governance:

As per Regulation 15 of the SEBI (Listing Obligation And Disclosure Requirement)Regulations 2015 the compliance with the Corporate Governance provisions shall not applyin respect of (a) listed entity having paid up equity share capital not exceeding tencrore and net worth not exceeding rupees twenty five crore as on the last day of previousyear (b) the listed entity which has listed its specified securities on the SME Exchange.Hence Auditors' Certificate on Corporate Governance is not provided.

32. Code of Conduct::

The Board of Directors has an important role in ensuring good Corporate Governance andhas laid down the Code of Conduct for Directors and Senior Management of the Company. TheCode has also been posted on the website of the Company. All Directors and SeniorManagement personnel have affirmed the compliance thereof for the year ended March 312021.

Declaration

I hereby declare that pursuant to Schedule V (Part D) of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 the Board of Directors of the Company haveadopted a Code of Conduct for the Board members and Senior Management of the Company andthe same has also been posted in the Company's website and that all the Board members andSenior Management personnel to whom this Code of Conduct is applicable have affirmed thecompliance of the said Code of Conduct during the year 2020-21.

Ambala Vinod Kumar
04th September 2021 (Managing Director)

33. Other Disclosures:

Your Directors state that no disclosure or reporting is required in respect of thefollowing items as there were no transactions on these items during the year under review:

i) No significant or material orders were passed by the Regulators or Courts orTribunals which impact the going concern status and Company's operations in future. ii) NoMaterial changes and commitments affecting the financial position of the Company occurredbetween the end of the financial year to which these financial statements relate and thedate of this Report.

2. The provisions of Section 125(2) of the Companies Act 2013 related with transfer ofunclaimed dividend to Investor Education and Protection Fund do not apply to the Companyas there was no dividend declared and paid in previous years and there is no unclaimeddividend.

3. Equity Shares:

? No issue of equity shares with differential rights as to dividend voting orotherwise during the year under review.

? The Company has not bought back any of its securities during the year under review.

? No issue of shares (including sweat equity shares) to employees of the Company underStock option Scheme during the year under review.

? No Shares outstanding under the head Shares Suspense Account/Unclaimed SuspenseAccount at the beginning and end of the year under review.

34. Acknowledgements:

Your directors wish to place on record their gratitude for the valued support andassistance extended to the Company by the Shareholders Banks and Government Authoritiesand look forward to their continued support. Your directors also express theirappreciation for the dedicated and sincere services rendered by the Executives Officersand Employees of the Company.

By Order of the Board of Directors
Place: Ambala
Dated: 04-09-2021 Sd/-
(VINOD KUMAR)
Managing Director
DIN: 00150507

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