Your Directors have pleasure in presenting their 28th Annual Report of theCompany together with the Audited Accounts of the Company for the financial year ended ason 31.03.2020.
The financial results of the Company for the year under review are summarized as under.
|Item (Rs in Lacs) ||As on 31.03.2020 ||As on 31.03.2019 |
|Turnover ||488.88 ||307.98 |
|Other Income ||0.13 ||0.02 |
|Profit (Loss) before taxations ||7.17 ||6.65 |
|Balance b/f from last year. ||-65.76 ||-71.17 |
|Provisions / Prior period adjustments. ||1.05 ||1.25 |
|Carried to Balance Sheet ||-59.63 ||-65.76 |
Results of Operations and the State of Affairs:
The highlights of the company's performance are as under:
Revenue from operations increased by 37.00% to Rs 488.88 Lacs (P.Y.Rs 307.98Lacs)
Profit before tax increased by 7.25% to Rs 7.17 Lacs (P.Y.Rs. 6.65 Lacs)
Material Changes and Commitments:
There are no material changes and commitments affecting the financial position of thecompany which have occurred between the end of the financial year of the company to whichthe financial statements relates and the date of report.
No dividend was considered by the Director for the year.
No major changes were reported in the line of business of the company for the lastreported period. However company had started experiencing COVID-19 impact during the lastmonth two months of closed financial years.
The Company has not accepted any deposits from public in the year under review.
Management Discussions and analysis forming part of Director's Report:
Factors effecting demand and supply of mineral processing and stone industry:
As the members are already aware of the company has discontinued its old Granite andMarble processing business due the lack of demand falling prices and increasing cost ofproduction day by day. Thereafter the company has shifted its product dynamics fromGranite and marble processing to mineral based industries by installing mineral processingmachines. Now the entire revenue will come from mineral processing unit except sale ofclosing stock. During the year the company has recorded reasonable demand. Demand ofmaterial is directly related with the sales of such products where mineral powers are usedas a raw material. Our products are mainly used in paint soap steel varnish and otherrelated industry. The company remained more or less immune from COVID-19 except last 10day's lockdown of March 2020. Due to COVID- 19 the soap industry has experienced thereasonable demand to offset the lower demand from other industries. The exaggerated shortdemand from soap industry is now cool down and back to pre COVID-19 level. But the excessor extra exaggerated demand could not be capitalized due to supply chain effect. Supply ofraw material is also affected. Thereafter for the first quarter normal operations of thecompany were affected to manpower issues. Company is still facing manpower issues. Nowthe company is experiencing improvement but things are not normal till the moment. Inline with COVID-19 scenario and expectations the future demand and supply at moment is notpredictable. Supply of manpower is an issue at moment and it is now linked with theCOVID-19. The manpower supply demand supply of raw material power supply and otherproduction and sales related items is not predictable. Sometime the unit is getting excessof manpower and some time the unit is running short of manpower. In light of abovementioned uncertain business scenario the company is not planning anything beyond itsnormal and routine business activity. At moment the company is concentrating and focusingto keep its existing business activity so as to pass through from present and uncertainbusiness cycle.
The Director's Confirm:
a) That in the preparation of the annual accounts the applicable accounting standardshave been followed and that no material departures have been made from the same.
b) That they have selected such accounting policies and applied them consistently andmade judgments and estimates that are reasonable and prudent so as to give true and fairview of the state of affairs of the Company at the end of the financial year and of theprofit or loss of the Company for that period;
c) That they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the Companies Act 2013 for safeguarding the assetsof the Company and for preventing and detecting frauds and other irregularities;
d) That they have prepared the annual accounts on a going concern basis.
The Company is using modern technology available for the entire manufacturing process.The management has full attention to get the maximum yield and fine quality with minimumenergy requirement.
Foreign Exchange Earnings and Outgo: There is no inflow or outflow of foreignexchange during the year.
Details of Directors and Key managerial Persons:
Directors: In accordance with the provisions of the Act and in terms of Articles ofAssociation of the Company Mr. Mayur Sundrawat (DIN 01837589)Director of the Companyretires at the ensuring Annual General Meeting and is being eligible for reappointmentoffers herself for re-appointment. Your Directors recommended the above re-appointment.
The following policies of the Company are attached herewith marked as Annexure I andAnnexure II-
(a) Policy of selection of Directors and determining Directors Independence; and
(b) Remuneration Policy for directors Key Managerial Personnel and other employees.
Key Managerial Personnel: During the year under review Miss Deepali Totawat ACSworking as the Company Secretary of the company.
Vigil Mechanism: The Company has established vigil mechanism and adopted whistleblower policy for directors and employees to report concerns about unethical behavioractual or suspected fraud or violation of the company's code of conduct or ethics policy.The policy on Vigil mechanism and Whistle blower policy of the company are attachedherewith marked as Annexure III.
Particulars of Employees: As per provision of section 197(2) read with 5(1) of thecompanies (Appointment and Remuneration of Managerial Personnel)Rules 2014 the payment ofremuneration to Directors are as follows:
1) Shri Mahaveer Sundrawat: Rs. 8.03 Lacs
2) Shri Mayur Sundrawat: Rs.5.98 Lacs
No employee employed throughout the financial year and in receipt of remuneration of Rs60.00 lacs or more or employed for part of the year and in receipt of Rs. 5.00 lacs ormore a month under Section 5(2) of the companies (Appointment and Remuneration ofManagerial Personnel)Rules 2014.
Number of Meetings of the Board: Numbers of Meetings of the Board during the yearwere 4 which were held on 11.05.2019 27.07.2019 26.10.2019 25.01.2020.
Particulars of Loans guarantees or investments u/s 186: No loan or guarantee isextended by the company so as to attract the provision of above mentioned section.
Related Party Contracts or arrangements: During the year under review the companyhas not entered into any related party contracts.
Corporate Governance: The Corporate Governance report for the year ended as on31.03.2020 as per requirement of Clause 49 of Listing Agreement has been given separatelyin the Annexure V.
The Company has appointed M/s. B.L. Harawat and Associates Company Secretaries asSecretarial Auditors to conduct the audit of secretarial and related records of theCompany for the FY ended 31st March 2020. The Secretarial Audit report asreceived from above named auditor is attached herewith marked as Annexure-VI.
Auditors and Auditors Report:
M/s Bhupendra S Jain and Associates willhold office and continue to work as the Auditorof the company.The Auditors report received from above named Auditor is attached herewithmarked asAnnexure-VII.
The component of the risk in the activities of the company is very minimal. In theopinion of the Board there is no element of risk that may threaten the existence of theCompany. During the year your company has however constituted a Risk ManagementCommittee and has been entrusted with the responsibility to assist the Board in (a)Overseeing and approving the company's enterprise wide risk management framework; and
(b) Overseeing that all the risks that the organization faces such as strategicfinancial credit market liquidity security property IT legal regulatoryreputational and other risks have been identified and assessed and there is an adequaterisk management infrastructure in place capable of addressing those risks. A RiskManagement Policy was reviewed and approved by the committee.
The Company manage monitor and report on the principal risks and uncertainties thatcan impact its ability to achieve its strategic objectives.
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.
Material Changes & Commitments affecting financial position of the Companyoccurring after Balance Sheet Date:
There remains no material change(s) affected after the date of Balance Sheet whichneeds to be mentioned specifically except discontinuation of marble processing activities.
Energy Conservation Technology absorption FOREX earnings & outgo: No
Forex Transaction took place during the year by the company.
|A. Power Consumptions: ||As on 31.03.20 ||As On 31.03.19 |
|Item || || |
|Units ||370177 ||305208 |
|Total Amount ||3539530 ||2801418 |
|Rate/Unit ||9.57 ||9.18 |
Corporate Social Responsibility:
Provisions of section 135 of the Companies Act 2013 read with Companies (CorporateSocial Responsibility Policy) Rules 2014are not applicable to the company being not fallsunder threshold limit.
Relations between the management and employees remain cordial during the year underreview. The Director's place on records their appreciations of the efficient and loyalservices rendered by the employee's at all levels.
Insider Trading Regulations:
Based on the requirements under SEBI (Prohibition of Insider Trading) Regulations1992 as amended from time to time the Company has adopted Code of Conduct for Preventionof Insider Trading and the same is in force.
The Director's wish to express their deep appreciations and gratitude's to itsBanker's Financial Institutions all Central and State level departments for their valuedsupports.
For & on behalf of the Board
Digitally signed by
(Mahavir N Sundrawat)