To
The Members of
MAGNANIMOUS TRADE & FINANCE LIMITED
Your Directors have pleasure in presenting herewith the Thirty Second Annual Reportalong with Audited Accounts of the Company for the year ended 31st March 2017.
FINANCIAL RESULTS
The summarized financial position of the Company for the Financial year ended 31stMarch 2017 as compared to previous year is as under:
| Amount |
| (Rs. in Lacs) |
| 2016-2017 | 2015-2016 |
| Total Income | 71.29 | 32.99 |
| Profit before Depreciation & Financial Charges | 35.60 | 0.06 |
| Less: Depreciation | 0.72 | 1.15 |
| Less: Financial Charges | - | -- |
| Profit before Exceptional and Extraordinary Items and Tax | 34.88 | (1.09) |
| Less: Depreciation adjustmenTrelating to previous year | - | — |
| Income Tax short provisions in earlier year now provided | | 4.60 |
| Profit before Tax | 34.88 | (5.69) |
| Less: Tax Expenses | | |
| Current Tax | — | — |
| Provision for Taxation | 6.54 | — |
| Add: Deferred Tax Assets | 0.26 | 0.22 |
| Profit after Tax | 28.60 | (5.47) |
| Add: Balance brought forward from previous year | 52.94 | 58.41 |
| Surplus/(Deficit) carried to Balance Sheet | 81.54 | 52.94 |
DIVIDEND
With a view to conserve resources for general corporate purposes and working capitalrequirements your Directors considered it prudent not to recommend any Dividend for theyear under review.
OPERATIONS
During the year under review Total Income of the Company has increased from Rs. 32.99Lacs to Rs. 71.29 Lacs in the Current Year. The Company earned Net Profit of Rs. 28.60Lacs in the Current Year as against Net Loss of Rs. 5.47 Lacs in the Previous Year. YourDirectors are making constant efforts to improve performance of the Company.
DIRECTORS
In accordance with the provisions of the Companies Act 2013 read with Articles ofAssociation of the Company Shri Sudhir Kumar Parasrampuria Director [DIN: 00358982] ofthe Company retires by rotation at the ensuing Annual General Meeting and is eligible forreappointment.
DECLARATION FROM INDEPENDENT DIRECTORS
The Company had received the Declarations under Section 149(7) of the Companies Act2013 from all the Independent Directors of the Company that they meet the criteria ofindependence as laid down under Section 149(6) of the Companies Act 2013 and Regulation16(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
SUBSIDIARY COMPANY / ASSOCIATE COMPANY
During the year under review Macro International Limited [CIN: L741 20U P1 993PLC0 15605] and Amber Mercantiles Limited [CIN: U67120WB1990PLC050215] continued to be AssociateCompanies within the meaning of Section 2(6) of the Companies Act 2013. However theCompany does not have any Subsidiary and Joint Venture Company during the year underreview.
STATUTORY AUDITORS
The term of the present Auditors of the Company M/s. Om P. Agarwal & AssociatesChartered Accountants (Firm Registration No 006948C) expires at the conclusion of theensuing Annual General Meeting. The Board of Directors of the Company have on the basis ofrecommendation of the Audit Committee at its meeting held on 14th August 2017 proposedthe appointment of M/s. Chaudhary Pandiya & Co. Chartered Accountants (FirmRegistration No 001903C) as the Statutory Auditors of the Company for a period of fiveyears to hold office from the conclusion of this Annual General Meeting till theconclusion of the Thirty Seventh Annual General Meeting of the Company. M/s. ChaudharyPandiya & Co. have confirmed their eligibility and willingness to accept theappointment
The observations made by the Auditors in their ReporTread with notes to the Accountsare self explanatory and do not call for any further explanation.
SECRETARIAL AUDITOR
The Board has appointed M/s. MKGP & Associates Company Secretaries Jaipur toconduct Secretarial Audit for the Financial year 2016-17. The Secretarial AudiTreport forthe Financial Year ended 31st March 2017 is annexed herewith as Annexure-'A' to thisReport. As regards observation in Secretarial AudiTreporTrelating to appointment ofCompany secretary and Chief Financial Officer it may be stated that in view of theinsignificant business operations the Company could not afford to employ a Whole timeCompany Secretary and Chief Financial Officer. However it will make necessary appointmentof Company Secretary and Chief Financial Officer as and when operations and financialcondition of the company improves in future. As regards filing of Form ADT 1 the Companyis in the process of making necessary compliance.
MEETINGS OF THE BOARD
The Board of Directors duly met 4 (Four) times respectively on 30th May 2016 11thAugust 2016 12th November 2016 and 7th February 2017 during the financial year. Theintervening gap between the Meetings was within the period prescribed under the CompaniesAct 2013.
BOARD EVALUATION
The Company has devised a Policy for performance evaluation of Independent DirectorsBoard Committees and other individual Directors which includes criteria for performanceevaluation of the Non-Executive Directors and Executive Directors. On the basis ofrecommendation of the 'Policy for Performance Evaluation' of Independent Directors BoardCommittees and other individual Directors a process of evaluation was followed by theBoard for its own performance and that of its Committees and individual Directors.
EXTRACT OF ANNUAL RETURN
The extract of Annual Return pursuant to the provisions of Section 92 read with Rule 12of the Companies (Management and Administration) Rules 2014 in prescribed Form No. MGT-9is annexed herewith as Annexure -'B' to this report.
MATERIAL CHANGES AND COMMITMENTS IF ANY AFFECTING THE FINANCIAL POSITION OF THECOMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THESE FINANCIAL STATEMENTSRELATE AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Companyoccurred from the end of the Financial year 2016-17 till the date of this Report. Furtherthere was no change in the nature of business of the Company.
No significant or material order has been passed by the Regulator or Courts orTribunals during the Financial year.
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
All contracts / arrangements / transactions entered by the Company during the Financialyear with related parties were in the ordinary course of business and on arm's lengthbasis. The details of material contracts / arrangements / transactions at arm's lengthbasis for the year ended 31st March 2017 is annexed hereto and form part of this Reportas Annexure 'C'.
PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIESACT 2013
Loans Guarantees and Investments covered under Section 186 of the Companies Act 2013form part of the notes to the Financial Statement provided in this Annual Report.
RISK MANAGEMENT
In view of minimal operational activities no Risk Management Policy was framed by theBoard.
DISCLOSURES Audit Committee
The Audit Committee comprises Independent Directors namely Shri Gautam Lhila(Chairman) Shri Pradeep Kumar Dada and Shri Sudhir Kumar Parasrampuria as other Members.All the recommendations made by the Audit Committee were accepted by the Board.
Vigil Mechanism
The Vigil Mechanism of the Company which also incorporates a Whistle Blower Policy interms of the Listing Agreement with the Stock Exchange. It aims to provide an avenue foremployees through this policy to raise their concerns on any violation of legal orregulatory requirements suspicious fraud misfeasance misrepresentation of any FinancialStatements and Reports.
Remuneration and Nomination 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. Thedetails of this policy are enclosed herewith as Annexure-'D'.
STATUTORY INFORMATION
A. PARTICULARS OF EMPLOYEES
In view of insignificant business operations the Company is working with skeletonstaff and none of the employees of the Company was in receipt of remuneration in excess ofthe limits prescribed sub-Rule (2) of Rule 5 of Companies (Appointment and Remuneration ofManagerial Personnel)Rules 2014 the details are noTrequired to be furnished. In view ofthe above information as per sub-section (12) of Section 197 of the Companies Act 2013read with sub-Rule (2) of Rule 5 of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 is indeterminate is not being furnished.
B. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS ANDOUTGO
As the Company is not engaged in any manufacturing activity the details relating toConservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo as perSection 134 (3) (m) of the Companies Act 2013 being inapplicable hence not provided.There have been no earnings and expenditure in foreign currency during the year underreview.
C. DIRECTOR'S RESPONSIBILITY STATEMENT
In terms of Section 134(5) of the Companies Act 2013 the Directors of the Companystate in respect of the year ended 31st March 2017 that :-
a) in the preparation of Annual Accounts the applicable Accounting Standards have beenfollowed along with proper explanation relating to material departures.
b) they have selected such Accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the State of Affairs of the Company at the end of the Financial year and of the Profitof the Company for that period.
c) they have taken proper and sufficient care for the maintenance of adequateAccounting Records in accordance with the provisions of the Act for safeguarding theAssets of the Company and for preventing and detecting fraud and other irregularities.
d) they have prepared Annual Accounts on a going concern basis.
e) they have laid down internal financial controls to be followed by the Company andthat such internal controls are adequate and are operating effectively.
f) they have devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems were adequate and operating effectively.
DEPOSITS
The Company has neither accepted nor renewed any deposits during the year under review.LISTING
The Equity Shares of the Company are presently listed at BSE Limited and the listingfee for both the Stock Exchanges is paid upto date.
INTERNAL FINANCIAL 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 in the design or operation were observed.
ACKNOWLEDGEMENT
The Directors wish to place on record their sincere appreciation of the co-operationreceived by the Company from the Company's Bankers and other Authorities. The Directorsare also thankful to the Shareholders for abiding faith in the Company. Deep appreciationis also acknowledged for the support and hard work put in by the employees of the Company.
For and on behalf of the Board
(PARWATI PARASRAMPURIA)
Chairperson & Managing Director
DIN:00359065
Place: Kanpur
Dated: 14.08.2017
