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MPF Systems Ltd.

BSE: 532470 Sector: Engineering
NSE: N.A. ISIN Code: INE095E01022
BSE 00:00 | 07 Feb 4.72 0
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NSE 05:30 | 01 Jan MPF Systems Ltd
OPEN 4.72
PREVIOUS CLOSE 4.72
VOLUME 4
52-Week high 4.72
52-Week low 3.90
P/E
Mkt Cap.(Rs cr) 0
Buy Price 4.72
Buy Qty 6146.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.72
CLOSE 4.72
VOLUME 4
52-Week high 4.72
52-Week low 3.90
P/E
Mkt Cap.(Rs cr) 0
Buy Price 4.72
Buy Qty 6146.00
Sell Price 0.00
Sell Qty 0.00

MPF Systems Ltd. (MPFSYSTEMS) - Director Report

Company director report

Dear Members

Your Directors are pleased to present the 25th Annual Report of the Companytogether with the Audited Financial Statements for the year ended 31st March 2018.

SUMMARY OF FINANCIAL RESULTS OF THE COMPANY:

Standalone

PARTICULARS 2017-2018 2016-2017
Total Income 24425 -
Total Expenditure 1264326 1657032
Profit Before
Interest and depreciation (1239901) (1657032)
Less: Depreciation - -
Interest - -
Tax - -
Net Profit/(Loss)
After Tax (1239901) (1657032)

OPERATIONAL PERFORMACE:

Income of the company from operations is Rs. Nil. Loss before tax is Rs. (1239901) ascompared to Rs. (1657032) in previous year.

TRANSFER TO RESERVES:

Due to unabsorbed losses no amount has been proposed to be transferred to Reserves.

DIVIDEND:

In view of accumulated losses your Directors did not recommend any dividend for theyear.

DEPOSITS:

The company has not accepted/renewed deposits within the meaning of Section 73 of theCompanies Act 2013 and rules made there under from public or from the shareholders duringthe period under review.

MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT:

Management's Discussion and Analysis Report for the year under review as stipulatedunder Regulation 34 (3) read with Schedule Part V of the SEBI (Listing Obligations andDisclosures Requirements) Regulations 2015 with Stock Exchange in India is presented ina separate Annexure -I forming part of the Annual Report.

CHANGE IN THE NATURE OF BUSINESS IF ANY:

There was no change in the nature of business of the Company or any of its subsidiariesduring the year. The company had applied for reduction of capital to the National CompanyLaw Tribunal and the same was approved by the hon'ble National Company Law Tribunal on30th June 2017.

The Company already reduced the capital as per the scheme of reduction to Section 100of Companies Act 1956 and/or Section 66 other applicable provisions if any of theCompanies Act 2013 Articles of Association of the Company and subject toconfirmation/approval by the High Court* having appropriate Jurisdiction the Subscribedand Fully Paid-up Share Capital of the Company shall stand reduced from Rs.

34026470/- (Rupees Three Crore forty Lacs Twenty-six Thousand four Hundred andSeventy Only) divided into 3402647 (Thirty four Lacs Twenty Six Thousand Four hundredand Forty-seven Only) fully paid up Equity Shares of Rs. 10/- (Rupees Ten Only) to Rs.1701320 (Seventeen Lacs One Thousand Three Hundred and Twenty only) divided into 170132(One Lacs Seventy Thousand One Hundred and Thirty two Only) Equity Shares of Rs. 10/- (Tenonly) each.

The application for listing of new shares on account of reduction of capital pendingfor disposal before Stock Exchange. Hence the trading of shares temporarily under hold bythe stock exchange for procedural reason.

MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THECOMPANY:

During the year under review there were no material changes and commitments affectingthe financial position of the Company.

FORENSIC AUDIT:

The Stock Exchange has ordered a forensic order in relation to the financialtransaction of the company for the past 3 years to find out the accommodative entries ifany.

DIRECTORS AND KEY MANAGERIAL PERSONNEL:

As per the provisions of Section 149(4) of the Companies Act 2013 every listed companyshall have at least one-third of the total number of directors as independent directors.The Board of the Company to comply with the aforesaid requirements

As per the Section 149(10) of the Companies Act 2013 provides that independentdirector shall hold office for a term of upto five consecutive years on the Board of theCompany. Further according to the Section 149 (11) of the Companies Act 2013 noindependent director shall be eligible for appointment for more than two consecutive termsof five years. Sub-section (13) states that the provisions of retirement by rotation asdefined in Sub-sections (6) and (7) of Section 152 of the Act shall not apply to suchindependent directors.

NUMBER OF MEETINGS OF THE BOARD:

The Board met six times during the financial year the details of which are given inthe Corporate Governance Report that forms part of this Annual Report. The intervening gapbetween any two meetings was within the period prescribed by the Companies Act 2013.

INDEPENDENT DIRECTORS DECLARATION:

The Company has received necessary declaration from each independent director underSection 149(7) of the Companies Act 2013 that he/she meets the criteria of independencelaid down in Section 149(6) of the Companies Act 2013 and Regulation 25 of SEBI (ListingObligations and Disclosures Requirements) Regulations 2015.

The Independent Directors under section 149(6) of the Companies Act 2013 declaredthat:

1. They are not promoters of the Company or its holding subsidiary or associatecompany;

2. They are not related to promoters or directors in the company its holdingsubsidiary or associate company.

3. The independent Directors have /had no pecuniary relationship with company itsholding subsidiary or associate company or their promoters or directors during thetwo immediately preceding financial years or during the current financial year;

4. None of the relatives of the Independent Director has or had pecuniary relationshipor transaction with the company its holding subsidiary or associate company or theirpromoters or directors amounting to two per cent or more of its gross turnover or totalincome or fifty lakh rupees or such higher amount as may be prescribed whichever islower during the two immediately preceding financial years or during the currentfinancial year;

5. Independent Director neither himself nor any of his relatives--

(i) holds or has held the position of a key managerial personnel or is or has beenemployee of the company or its holding subsidiary or associate company in any of thethree financial years immediately preceding the financial year in which he is proposed tobe appointed; (ii) is or has been an employee or proprietor or a partner in any of thethree financial years immediately preceding the financial year in which he is proposed tobe appointed of--(A) a firm of auditors or company secretaries in practice or costauditors of the company or its holding subsidiary or associate company; or (B) any legalor a consulting firm that has or had any transaction with the company its holdingsubsidiary or associate company amounting to ten percent or more of the gross turnover ofsuch firm; (iii) Holds together with his relatives two percent. or more of the totalvoting power of the company; or (iv) is a Chief Executive or Director by whatever namecalled of any nonprofit organization that receives twenty-five percent. or more of itsreceipts from the company any of its promoters directors or its holding subsidiary orassociate company or that holds two percent or more of the total voting power of thecompany;

6. Independent Director possesses such qualifications as may be directed by the Board.

7. The Company & the Independent Directors shall abide by the provisions specifiedin Schedule IV of the Companies Act 2013.

BOARD EVALUATION:

SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015 mandates thatthe Board shall monitor and review the Board evaluation framework. The Companies Act 2013states that a formal annual evaluation needs to be made by the Board of its ownperformance and that of its committees and individual directors. The Schedule IV of theCompanies Act 2013 states that the performance evaluation of independent directors shouldbe done by the entire Board of Directors excluding the director being evaluated.

The evaluation of all the directors and the Board as a whole was conducted based on thecriteria and framework adopted by the Board. The Board approved the evaluation resultsalong with evaluation done by the Nomination and Remuneration Committee.

PERFORMANCE OF THE BOARD AND COMMITTEES:

During the year under review the performance of the Board & Committees andIndividual Director(s) based on the below parameters was satisfactory: (i) All Directorshad attended the Board meetings.

(ii) The remunerations paid to Executive Directors are strictly as per the Company andindustry policy. (iii) The Independent Directors only received sitting fees.

(iv) The Independent Directors contributed significantly in the Board and committeedeliberation and business and operations of the Company and subsidiaries based on theirexperience and knowledge and Independent views.

(v) The Credit Policy Loan Policy and compliances were reviewed periodically;

(vi) Risk Management Policy was implemented at all critical levels and monitored by theInternal Audit team who places report with the Audit committee and Board.

MEETING OF INDEPENDENT DIRECTORS:

Pursuant of the provision of Section 149 (8) of the Companies Act 2013 read withSchedule IV and Regulation 25 of SEBI (Listing Obligations and Disclosures Requirements)Regulations 2015 the Independent Directors of the Company held their meeting on 14thFebruary 2017 reviewed the performance of non- independent directors and the Board as awhole including the Chairperson of the Company views expressed by the executive directorsand non-executive directors at various level and quantified the quality quantity andtimeliness of flow of information between the Company management and the Board andexpressed satisfaction. The Board is professionally managed.

POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION:

The current policy is to have an appropriate mix of executive and independent directorsto maintain the independence of the Board and separate its functions of governance andmanagement. As on 31st March 2017 the Board consists of 3 members. Out of which one isthe Managing Director two are independent Directors.

The policy of the Company on directors appointment and remuneration including criteriafor determining qualifications positive attributes independence of a director and othermatters provided under Sub section (3) of Section 178 of the Companies Act 2013 adoptedby the Board and are stated in this Board report. We affirm that the remuneration paid tothe directors is as per the terms laid out in the nomination and remuneration policy ofthe Company.

COMMITTEES OF THE BOARD:

Currently the Board has Four Committees :(1) Audit Committee (2) Nomination andRemuneration Committee(3) Stakeholders Relationship Committee (4) Shares TransferCommittee

A detailed note on the Board and its Committees is provided under the CorporateGovernance Report that forms part of this Annual Report.

NOMINATION AND REMUNERATION COMMITTEE AND STAKEHOLDERS RELATIONSHIP COMMITTEE:

Pursuant to the Section 178 of the Companies Act 2013 the Company has set up aNomination and Remuneration and Stakeholders Relationship Committee. A detailed note onthe composition of the Committees is provided in the corporate governance report sectionof this Annual Report.

The Key Features of the Policy of the said committee are as follows:

For Appointment of Independent Director (ID):

a. Any person who is between the age of 25 years and below 75 years eligible to becomeIndependent

Director(ID); b. He has to fulfill the requirements as per section 149 of the CompaniesAct 2013 read with Clause 49 of the Listing Agreement; c. Adhere to the code of conductas per Schedule IV to the Companies Act 2013; d. Strictly adhere to the Insider TradingRegulation of the SEBI and Insider Trading policy of the Company; e. Independent Directorshould have adequate knowledge and reasonably able to contribute to the growth of theCompany and stakeholders; f. Independent Director should be able to devote time for theBoard and other meetings of the company; g. Entitled for sitting fees and reasonableconveyance to attend the meetings; and h. Able to review the policy participate in themeeting with all the stakeholders of the company at the

Annual General Meeting.

DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to the Section 134(3)(c) and Section 134 (5) of the Companies Act 2013 theBoard of Directors of the Company hereby confirm: (i) That in the preparation of theaccounts for the financial year ended 31stMarch 2017 the applicable accounting standardshave been followed along with proper explanation relating to material departures; (ii)That the Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that were reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit and loss of the Company for the year under review; (iii) That the Directorshave taken proper and sufficient care for the maintenance of adequate accounting recordsin accordance with the provisions of the Companies Act 2013 for safeguarding the assetsof the Company and for preventing and detecting fraud and other irregularities;

(iv) That the Directors have prepared the accounts for the financial year ended31stMarch 2017 on a 'going concern' basis.

(v) The internal financial controls are laid and have been followed by the company andthat such controls are adequate and are operating effectively. Such controls meanscontrols and policies and procedures adopted and adhered by the company for orderly andefficient conduct of the business for safeguarding assets prevention and detection offrauds and errors and maintenance of accounting records and timely preparation offinancial statements and review its efficiency. (vi) The Directors had devised propersystems to ensure compliance with the provisions of all applicable laws and that suchsystems were adequate and operating effectively.

VIGIL MECHANISM / WHISTLE BLOWER POLICY:

In terms of the provisions of Section 177(9) of the Companies Act 2013 the Companyhas implemented a vigil mechanism named Whistle Blower Policy to deal with instance offraud and mismanagement if any in staying true to our values of Strength Performanceand Passion and in line with our vision of being one of the most respected companies inIndia the Company is committed to the high standards of Corporate Governance andstakeholder responsibility.

A high level Committee has been constituted which looks into the complaints raised. TheCommittee reports to the Audit Committee and the Board. The Whistle Blower Policy ensuresthat strict confidentiality is maintained whilst dealing with concerns and also that nodiscrimination will be meted out to any person for a genuinely raised concern.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Board has adopted the policies and procedures for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial disclosures.

The Company has an Internal Control System commensurate with the size scale andcomplexity of its operations. To maintain its objectivity and independence the InternalAudit function reports to the Chairman of the Audit Committee.

The Internal Audit Department monitors and evaluates the efficacy and adequacy ofinternal control system in the Company its compliance with operating systems accountingprocedures and policies at all locations of the Company.

Based on the report of internal audit function process owners undertake correctiveaction in their respective areas and thereby strengthen the controls. Significant auditobservations and recommendations along with corrective actions thereon are presented toBoard.

STATUTORY AUDITORS:

At the Annual General Meeting held on June 30 2015 M/s. Kala Jain & Co. CharteredAccountants were appointed as statutory auditors of the Company to hold office till theconclusion of the Annual General Meeting to be held in the calendar year 2020.

In terms of the first proviso to Section 139 of the Companies Act 2013 theappointment of the auditors shall be placed for ratification at every Annual GeneralMeeting. Accordingly the appointment of M/s. Kala Jain & Co. Chartered Accountantsas statutory auditors of the Company is placed for ratification by the shareholders.

In this regard the Company has received a certificate from the auditors to the effectthat if they are reappointed it would be in accordance with the provisions of Section 141of the Companies Act 2013.

AUDITORS REPORT:

The Auditors have not made any qualification to the financial statement. Their reportson relevant notes on accounts are self-explanatory and do not call for any comments undersection 134 of the companies Act 2013.

SECRETARIAL AUDITORS AND THEIR REPORT:

M/s. Ramesh Chandra Mishra & Associates Company Secretary in Practice wasappointed to conduct the secretarial audit of the Company for the financial year 2017-18as required under Section 204 of the Companies Act 2013 and Rules there under. TheSecretarial Audit Report for F.Y. 2017-18 is Annexure-II to this Board's Report.

The Board has re-appointed M/s. Ramesh Chandra Mishra & Associates CompanySecretary in Practice as secretarial auditor of the Company for the financial year2018-19.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE COURTS/REGULATORS:

The company received approval for reduction of capital from Hon'ble National CompanyLaw Tribunal for the application filed relating to the reduction of the capital.

The application for listing of new shares on account of reduction of capital pendingfor disposal before Stock Exchange. Hence the trading of shares temporarily under hold bythe stock exchange for procedural reason.

CONSERVATION OF ENERGY TECHNOLOGY AND FOREIGN EXCHANGE:

The details of Conversion of Energy Technology Absorption are not applicable in thecase of the company. However the company took adequate steps to conserve the energy andused the latest technology.

During the year under review there were no foreign Exchange Earnings. The ForeignExchange outgo is Nil.

RELATED PARTY TRANSACTIONS/CONTRACTS:

The Company has implemented a Related Party Transactions policy for the purposes ofidentification and monitoring of such transactions. All the transactions that were enteredinto during the financial year were on arm's length basis and were in the ordinary courseof business. There were no materially significant related party transactions made by thecompany with Promoters Key Managerial Personnel or other designated persons which mayhave potential conflict with interest of the company at large.

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS:

There were no loans Guarantees and Investments covered under Section 186 of theCompanies Act 2013.

EXTRACT OF ANNUAL RETURNS:

Pursuant to the Section 134(3)(a) of the Companies Act 2013 the details forming partof the extract of the Annual Return is Form MGT-9 is Annexure-III.

CORPORATE GOVERNANCE:

A Report on Corporate Governance along with a Certificate from M/s. Ramesh ChandraMishra & Associates regarding compliance with the conditions of Corporate Governanceas stipulated under SEBI (Listing Obligations and Disclosures Requirements) Regulations2015 forms part of this Report and Annexure-IV to this Board's Report.

BANK AND FINANCIAL INSTITUTIONS:

Directors are thankful to their bankers for their continued support to the company.

ACKNOWLEDGMENTS:

Your Directors convey their sincere thanks to the Government Banks Shareholders andcustomers for their continued support extended to the company at all times.

The Directors further express their deep appreciation to all employees for commendableteamwork high degree of professionalism and enthusiastic effort displayed by them duringthe year.

On behalf of the Board of Directors
For MPF Systems Limited
Sd/-
Kirti Salvi
Place: Mumbai Managing Director
Dated: 30th May 2018 DIN: 07141300