To the Members of Mohit Paper Mills Limited
The Board of Directors have pleasure in presenting the 26th Annual Reporttogether with the Audited Accounts of the Company for the year ended 31stMarch 2018.
The working of the company during the year under review has been highlighted below:
|1. FINANCIAL RESULTS || || |
| ||Current Year ending 31.03.2018 ||Previous Year ending 31.03.2017 |
|Sales & Other Income ||1026906205 ||937175242 |
|Operating Profit -before Interest Depreciation & Tax ||78450155 ||84224536 |
|Interest & Finance Charges ||28111449 ||28910289 |
|Depreciation ||36457560 ||42021121 |
|Less : Depreciation for earlier years written back & Dep. on revalued Assets ||36457560 ||42021121 |
|Net of Adjustments: || || |
|Depreciation on revalued Assets ||- ||- |
|Less: Amount Transferred from capital reserve ||. ||. . |
|NET PROFIT BEFORE TAX ||13881146 ||13293126 |
The Company has not transferred any amount to the reserves during the current yearexcept the surplus in the Statement of Profit & Loss for the year ended on 31.03.2018which has been carried over in the Balance Sheet. Sales and Other Income for the year wasRs102.69 crores as against ^93.72 crores in the previous year.
During the year Sales and other income have increased from Rs 93.72 crores to Rs 102.69crores. Net Profit before tax increased from X 132.93 Lakhs to X 138.81 Lakhs. Productionhave increased from 25486.48 M.T. to 28234.668 M.T. and further the Company have startedproduction of Poster Paper in the last quarter of the year and have produced 902.509 M.T.of it.
Authorized Share Capital of the Company is Rs175000000/- divided into 17500000Equity Shares of Rs10/- each and Issued Subscribed and Paid-up Capital of the Company isRs140000000/- divided into 14000000 Equity Shares of Rs10/- each. There was nochange in the Share Capital during the year.
The Directors do not recommend any dividend for the year under review.
During the year the Company has not accepted any deposits from the public fallingwithin the purview of section 73 of the Act read with the (Companies Acceptance ofDeposits) Rules 2015.
Particulars of loans guarantees or investments
Loans guarantees and investments covered under Section 186 of the Companies Act 2013forms part of the notes to the financial statements provided in this Annual Report.
Transfer to General Reserve
The Company have not transferred any amount to the reserves during the current yearexcept the surplus in the statement of profit and loss for the year ended on 31.03.2018which has been carried over in the Balance Sheet.
Subsidiaries Associate Companies
There is no Subsidiaries or Associate Company as on 31st March 2018. Sothere is no requirement of statement in FORM AOC-1 under section 129(3) rule 5 of theCompanies (Accounts) Rules 2014.
Particulars of contracts or arrangements made with related parties
Particulars of contract or arrangements with referred partner referred to in thesection 188(1) of the Companies Act 2013 in the prescribed form AOC-2 is appended asAnnexure B of the boards report.
Material changes and commitments affecting the financial position between the end ofthe financial year and date of report
There have been no material changes and commitments affecting the financial positionbetween the end of the financial year and date of the report.
Nomination and Remuneration Policy
As Company is covered under sub-section (1) of section 178 Company's policy ondirectors' appointment and remuneration including criteria for determining qualificationspositive attributes independence is formulated and annexed as "Annexure-F".
Mrs. Shubhi Jain retired from office by rotation and being eligible offered herself forre-appointment and was re-appointed in the annual general meeting held on 28.09.2017.
Mr. Dilip Kumar Jha resigned from office of Whole-Time-Director on 23/11/2017 and inhis place Mr. Pradeeep Kumar Rajput was appointed as Whole-Time Director since 23/11/2017subject to the approval of shareholders.
Extract of Annual Return
The extract of the Annual Return in Form MGT-9 is annexed herewith as Annexure-C.
Number of Meetings of the Board
The Board met 5 times during the financial year the details of which are given in thecorporate governance report that forms part of this Annual Report.
Composition of Audit Committee of the Board is provided in the Corporate GovernanceReport which forms part of the Annual Report. All the recommendations made by the AuditCommittee were accepted by the Board.
Declaration by Independent Director
The Company have received necessary declaration from each independent director undersection 149(7) of the Companies Act 2013
Director's responsibility statement as required under Section 134(3)(c) of theCompanies Act 2013
Pursuant to the requirement under section 134(3)(c) of the Companies Act 2013 withrespect to directors responsibility statement it is hereby confirmed that:
In preparation of the annual accounts for the financial year ended March 31 2018 theapplicable accounting standards have been followed.
The directors 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 theStatement of Profit & Loss of the Company for the period.
The directors have taken proper and sufficient care towards 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.
The directors have prepared the annual accounts on-going concern basis.
The directors have laid down internal financial controls which are adequate and areoperating effectively.
The directors have devised proper systems to ensure compliance with the provisions ofall applicable laws and such systems are adequate and operating effectively.
Internal Financial Control System
Companies Internal Financial Control System is designed to help and ensure theeffectiveness and efficiency of operations proper financial reporting and compliance oflaws and regulations. The Company have adopted policies and procedures for ensuring theorderly and efficient conduct of its business including the adherence to the CompaniesPolicies the safeguarding of its assets the prevention and detection of fraud anderrors the accuracy and completeness of the accounting records and timely preparation ofreliable financial disclosures.
Internal Auditor is appointed who along with the audit committee formulates the systemand ensures the effectiveness and adequacy of the system.
Evaluation of Board Committee and Directors
Pursuant to the Provisions of the Act and SEBI (LODR) Regulations 2015 the Board havecarried out the evaluation of its own committees and directors. The manner has beendetailed in the corporate governance report.
M/s Anil Sood & Associates Chartered Accountants (Registration Number-004985N)acted as statutory auditors and their appointment was ratified by the shareholders in theAGM held on 28/09/2017.
The remarks as contained in the auditor's report read with Notes forming part of theaccounts are self-explanatory Cost Records
Cost Records as specified by the Central Government under Section 148(1) of theCompanies Act 2013 are made and maintained by the Company.
As the Company does not come under the perview of Cost Audit so no Cost Auditor wasappointed for 2017-2018 for conducting Cost Audit. Turnover of the Company in the yearended 31.03.2018 exceeds the limit which is fixed for cost audit so for the year2018-2019 H.Tara & Co. (Cost Accountants) are appointed as Cost Auditor for the year2018-2019.
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointmentand Remuneration of Managerial Personnel) Rules 2014 the Company have appointed PDS& Co. Practicing Company Secretaries to undertake the secretarial audit of theCompany for the year 2018-2019. The Secretarial Audit Report done by PDS & Co. for theyear 2017-2018 is annexed herewith as "Annexure-H ".
Managerial Remuneration and Particulars of employees
The information required under section 197(12) of the Companies Act2013 read with rule5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014is annexed herewith as "Annexure-D".
The information required under section 197(12) of the Companies Act 2013 read withrule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 is not applicable to our Company as there is no employee getting remuneration asprescribed in the rule.
Company has implemented an integrated risk management approach through which it reviewand assess significant risks on a regular basis to help ensure that there is a robustsystem of risk control and mitigation.
Senior Management periodically reviews this risk management framework to keep updatedand address emerging challenges.
Major risk identified for the Company by the management is price of raw-materials andfuel Currency Fluctuation Compliance financing. The management is of the view that noneof the above risks may threaten the existence of the Company as risk mitigation process isput in place to ensure that there is nil or minimum impact on the Company in case any ofthese risk materialize.
The Company has set up vigil mechanism viz. Whistle Blower Policy to enable theemployee and directors to report genuine concerns and irregularities is any in theCompany noticed by them. The policy is annexed as "Annexure-E".
Corporate Social Responsibility
Section 135 of the Companies Act 2013 relating to Corporate Social Responsibility doesnot apply to your Company as your Company is outside the threshold limit required for thesame.
Corporate Governance Report and Management Discussion and analysis
In terms of the provisions of SEBI (LODR) Regulations 2015 Corporate GovernanceReport is annexed as Annexure-G and the Management's discussion and analysis is annexedas Annexure-H.
Conservation of energy research and development technology absorption foreignexchange earnings and outgo
The particulars as prescribed under Sub-section (3)(m) of Section 134 of the CompaniesAct2013 read with the Companies (Accounts) Rules 2014 are enclosed as Annexure-A to theBoard's Report.
Sexual Harassment of Women at Workplace
Company has complied with provisions relating to the constitution of InternalComplaints Committee under Sexual Harassment of
Women at workplace (Prevention Prohibition and Redressal) Act 2013
No such incidence of sexual harassment of women was reported during the year 2017-2018.
Your Directors would like to express their thanks to banks for their co-operation andassistance from time to time. The directors would also like to record appreciation to themembers of staff and workers who despite of constraints have been working hard for thecompany and are maintaining cordial relations.
FOR AND ON BEHALF OF BOARD OF DIRECTORS
PLACE: NEW DELHI
DATED :1st AUGUST2018