Your Directors have pleasure in presenting their 27thAnnual Report of theCompany together with the Audited Accounts of the Company for the financial year ended ason 31.03.2019.
The financial results of the Company for the year under review are summarized as under.
|Item (Rs in Lacs) ||As on 31.03.2019 ||As on 31.03.2018 |
|Turnover ||307.98 ||190 |
|Other Income ||0.02 ||0.02 |
|Profit (Loss) before taxations ||6.65 ||5.6 |
|Balance b/f from last year. ||-71.17 ||-75.72 |
|Provisions / Prior period adjustments. ||1.25 ||1.05 |
|Carried to Balance Sheet ||-65.76 ||-71.17 |
Results of Operations and the State of Affairs:
The highlights of the company's performance are as under:
Revenue from operations increased by 62.09% to Rs 307.98 Lacs (P.Y.Rs 190 Lacs)
Profit before tax increased by 18.75% to Rs 6.65 (P.Y.Rs. 5.6 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 in the operation of the company for the reported year.
The Company has not accepted any deposits from public in the year under review.
Management Discussions and analysis forming part of Director's Report: Factorseffecting demand and supply of mineral processing and stone industry:
Your company has discontinued the Granite and Marble processing due the lack of demandfalling prices and increasing cost of production day by day. The company at times shiftedits product dynamics from Granite and Marble processing to mineral based industries byinstalling two number of mineral processing machines. A significant portion of the revenuecomes from mineral processing unit during the year. Although the unit has received revenuefrom marble processing but it's a small amount and that too comes from job processing ofothers. Therefore management has decided to discontinue the operation and disposed off themachineries' at its best possible realizable value. However the management is thinking ofexpansion of its mineral processing capacity by installing one more machine during thecurrent year. The raw material required for mineral processing is easily and locallyavailable in un-oragnized sector in local market. Local tribal are cutting and breakingleft out cracked and irregular shaped marble blocks Luffers and Khandas from the miningarea. They are cutting and breaking these big sizes stones in small lumps locally calledKhandas. These lumps or Khandas are the raw material for mineral processing industry. Unitnormally grinds these small sizes lumps and Khandas into powder forms of customer specificsizes. The finished goods are called as marble powder of dolomite powder. The finishedgoods are mixture of dolomite marble limestone and other local minerals.
Dolomite is a calcium and magnesium carbonate with chemical composition. Limestonecontaining dolomite is known as dolomitic limestone. Dolomite is also found in crystalsand extensive beds as a compact limestone. Dolomite is used as in construction and furnacerefractory. Dolomite mineral contains impurities such as silica iron oxide and alumina.With more than 7% of impurities dolomite can be used only for road construction buildingand flooring purposes.
The advancement in mining technology is leading to the growth of the effectiveextraction of different forms of dolomite crystals. The growth in the constructionindustry and infrastructure across the globe is leading to the expansion of dolomitemarket. The growing demand for iron is fueling the growth of dolomite market as it is usedas a sintering agent in pelletizing iron ores. The mineral powder of dolomite is used as afiller in various industries. Dolomite market is anticipated to grow over the forecastperiod owing to the increasing demand of soil conditioners. Acid rains and increasingwater pollution are reducing the quality of the soil. The developing trend of applicationof ceramics and glass in interior decorations is also contributing to the growth ofdolomite market because dolomite is used in the manufacture of ceramics and glass.
Impact of Government Policy on the Industry:
During the last year the GOI has introduced GST which is @05%. The rates are availabletogether with Input. Hence the unit has positive bearing on taxes after introduction ofGST. But the problem lies in unorganized supply of raw materials. Raw Material suppliersare unregistered individuals and they are supplying raw material in their own localLorries are tractors. These Lorries and tractors owners are also unregistered dealers andsuppliers. Hence payment in cash that without proper bills always remains a problem forthe company.
Responsibility Statement: The Director's Confirm: a) That in the preparationof the annual accounts the applicable accounting standards have been followed and that nomaterial departures have been made from the same. b) That they have selected suchaccounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give true and fair view of the state of affairs of theCompany at the end of the financial year and of the profit or loss of the Company for thatperiod; 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) Thatthey have prepared the annual accounts on a going concern basis.
Technology: The company is using modern technology available for the entiremanufacturing process. The management has full attention to get the maximum yield and finequality with minimum energy 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. Mahavir N Sundrawat Managing Director of the Companyretires at the ensuring Annual General Meeting and is being eligible for reappointmentoffers himself 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 the members approved theappointment of Ms. Deepali Totawat as Company Secretary cum Compliance Officer of theCompany.
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 paymentof remuneration to Directors are as follows:
1) Shri Mahaveer Sundrawat: Rs. 6.60 Lacs
2) Shri Mayur Sundrawat: Rs. 5.40 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 7 which were held on 05.05.2018 28.07.2018 27.10.2018 01.12.2018 31.01.201916.02.2019 07.03.2019.
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 on31.03.2019 as per requirement of Clause 49 of Listing Agreement has been given separatelyin the Annexure V.
Secretarial Audit: The Company has appointed M/s. B.L. Harawat and AssociatesCompany Secretaries as Secretarial Auditors to conduct the audit of secretarial andrelated records of the Company for the FY ended 31st March 2019. TheSecretarial Audit report as received from above named auditor is attached herewith markedas Annexure-VI.
Auditors and Auditors Report: M/s Bhupendra S Jain and Associates will retire atthe conclusion of proposed AGM and to be re-appointed as auditor of the company subject toapproval from members. The Auditors report received from above named Auditor is attachedherewith marked as Annexure-VII.
Risk Management: The component of the risk in the activities of the company is veryminimal. In the opinion of the Board there is no element of risk that may threaten theexistence of the Company. During the year your company has however constituted a RiskManagement Committee 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 that canimpact its ability to achieve its strategic objectives.
Internal Financial Controls: The Company has in place adequate internal financialcontrols with reference to financial statements. During the year such controls weretested and no reportable material 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) affectedafter the date of Balance Sheet which needs to be mentioned specifically exceptdiscontinuation of marble processing activities.
Energy Conservation Technology absorption FOREX earnings &outgo: No ForexTransaction took place during the year by the company.
|A. Power || || |
|Consumptions: ||As on 31.03.19 ||As On 31.03.18 |
|Item || || |
|Units ||305208 ||249830 |
|Total Amount ||2801418 ||2481022 |
|Rate/Unit ||9.18 ||9.94 |
Corporate Social Responsibility: Provisions of section 135 of the Companies Act2013 read with Companies (Corporate Social Responsibility Policy) Rules 2014 are notapplicable to the company being not falls under threshold limit.
Employee's Relations: Relations between the management and employees remain cordialduring the year under review. The Director's place on records their appreciations of theefficient and loyal services rendered by the employee's at all levels.
Insider Trading Regulations: Based on the requirements under SEBI (Prohibition ofInsider Trading) Regulations 1992 as amended from time to time the Company has adoptedCode of Conduct for Prevention of Insider Trading and the same is in force.
Acknowledgement: The Director's wish to express their deep appreciations andgratitude's to its Banker's Financial Institutions all Central and State leveldepartments for their valued supports. For & on behalf of the Board
|(Mahavir N Sundrawat) |
|Managing Director |
|Place: Banswara |
|Date: 11.05.2019 |