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Prime Industries Ltd.

BSE: 519299 Sector: Financials
NSE: N.A. ISIN Code: INE543F01028
BSE 00:00 | 27 Jun 5.25 0.10






NSE 05:30 | 01 Jan Prime Industries Ltd
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OPEN 5.25
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52-Week high 11.75
52-Week low 5.15
Mkt Cap.(Rs cr) 8
Buy Price 0.00
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Prime Industries Ltd. (PRIMEINDUSTRIES) - Director Report

Company director report

To The Members

The Directors of Prime Industries Limited (PIL) have great pleasure in presenting their29th Annual Report of the company together with the audited statements ofaccounts for the financial year ended 31st March 2021 along with report of theStatutory Auditors thereon.

1. Financial summary of the Company

The summary of financial results of the Company for the period ended 31stMarch 2021 is as under: (Rs. In Lakh)

PARTICULARS Figures for the year ended 31st Figures for the year ended 31st
March 2021 March 2020
Total revenue 817.81 1283.15
Less : Total expenses 800.95 1208.08
Profit before tax 16.85 75.07
Less : Tax expense (0.05) (0.11)
Profit for the period 16.90 75.18

2. Management Discussion & Analysis

During the year under review your Company has registered gross operating & otherincome of Rs. 817.81 Lakh as compared to Rs. 1283.15 Lakh in previous year decreased by36.27%.

The Company earned a net profit after tax of Rs. 16.90 Lakhs decreased by 77.52% asagainst a net profit after tax of Rs. 75.18 Lakhs in the previous year.

3. Dividend

Keeping in view the present economic situations the board recommends retaining theearnings in the Company; hence the Board has not recommended any dividend on the equityshare capital of the Company.

4. Transfer of Reserves

No amount is being transferred to reserve & surplus in the current year.

5. Brief description of the Company's working during the year

In this year of its operations i.e. FY 2020-21 your company's revenue during the yearunder review decreased to Rs.817.81 Lakh as compared to Rs. 1283.15 Lakh in previous year.Your company's Net Profit after tax is Rs. 16.90 Lakh as compared to Rs. 75.18 Lakh in theprevious year.

6. Material changes and commitments if any affecting the financial position of thecompany which have occurred between the end of the financial year of the company to whichthe financial statements relate and the date of the report.

No material changes and commitments affecting the financial position of the Companyhave occurred between the end of the financial year to which the Financial Statementsrelate and the date of the Report.

7. Significant and material orders passed by the regulators or courts or tribunalsimpacting the going concern status and company's operations in future.

During the year under review no significant and material orders have been passed by theRegulators / Courts that would impact the going concern status of the Company and itsfuture operations.

8. Adequacy of Internal Control.

The Company has a proper and adequate system of internal control to ensure that allassets are safeguarded properly utilized and protected against loss from un-authorizeduse or disposition and those transactions are authorized and recorded by the concerneddepartments properly and reported to the Audit Committee/Board correctly.

The Company has also in place adequate internal financial controls with reference tofinancial statements. Such controls are tested from time to time and no reportablematerial weakness in the design or operation has been observed so far.

9. Subsidiary/Joint Ventures/Associate Companies.

The Company did not have any Subsidiary Joint Venture or Associate Company during theyear under review.


The Company has not accepted any public deposits pursuant to the provisions of Section73 to 76 of the Companies Act 2013 and the rules made there under and as such no amounton account of principal or interest on Pubic Deposits was outstanding on the date of theBalance Sheet.

11. Auditors

(a) Statutory Auditors

In terms of Section 139 of the Act M/s C. S. Arora & Associates CharteredAccountants were appointed as statutory auditors of the Company for a period of fiveyears in the AGM held on 30.09.2019 from the conclusion of the Twenty Seventh AnnualGeneral Meeting until the conclusion of the Thirty First Annual General Meeting for theperiod of 5 years.

There are No qualifications reservations or adverse remarks or disclaimers made by theStatutory Auditors in their Audit Report for the financial year 2020-21. Except DIN of Mr.Rajiv Kalra Director of the Company has been deactivated as per MCA record. We havereceived a reply from the Company that Due to issue of OTP in the Mobile No. and E-mail idbecause of technical reason the company was not able to do the KYC. Further company isdoing the needful and complying the same for the KYC of said director.

The Statutory Auditors have not reported any incident of fraud to the Audit Committeeof the Company during the financial year 2020-21. Auditors' Report on the Accounts of theCompany for the period under review are self - explanatory and no comments are required.

(b) Secretarial Auditors and Secretarial Audit Report

Pursuant to the requirements of Section 204 of the Act read with Rule 9 of theCompanies (Appointment and

Remuneration of Managerial Personnel) Rules 2014 and Regulation 24A of the ListingRegulations the Company had appointed M/s. Rajeev Bhambri & Associates CompanySecretaries in Practice Ludhiana for conducting Secretarial Audit for the year2020-2021. The Secretarial Audit Report for the financial year ended March 31 2021 ispart of this Annual Report. There are some qualifications reservations adverse remarksor disclaimers made by Secretarial Auditors in their Audit Report for the company and ourremarks are as below :

Sr. No. Qualification/ Adverse Remarks Our Remarks
1 DIN of Mr. Rajiv Kalra has been Deactivated due to non-filing of DIR-3 KYC as shown in the MCA records. Due to issue of OTP in the Mobile No. and E-mail id because of technical reason we were not able to do a KYC. Further company is doing the needful and complying the same for the KYC of said directors.
2 Mr. Rajiv Kalra was appointed on 31.03.2015 as Independent Director and continued till 30.09.2020 i.e. for five and half year in contrast to the provisions of Section 149(10) which requires that the term of Independent Director cannot exceed five years. Mr. Rajiv Kalra was appointed on 31.03.2015 as Additional Director and was regularized as an Independent Director of the company in the Annual General Meeting held on 29.09.2015 for a period of 5 years till 30.09.2020. Further Mr. Rajiv Kalra was re-appointed of second term of 5 years from 1st October 2020 till 30th September 2025.
3 Disclosure under Regulation 7(3) for the half year ended 30.09.2020 was not submitted The Company was not able to file the Certificate due to Non updation of DN Database and the RTA failed to provide the requisite report.

Pursuant to circular No. CIR/CFD/CMD1/27/2019 dated February 8 2019 issued bySecurities and Exchange Board of India (SEBI) the company has obtained Annual SecretarialCompliance Report from Practicing Company Secretaries on compliance of all applicableSEBI Regulations and circulars / guidelines issued there under and the copy of the samehas submitted with the Stock Exchanges within the prescribed due date.

(c) Internal Auditors

Mrs. Alka Mishra Sr. Executive of the Company was appointed by the Board of Directorsas Internal Auditor of the Company to assist in internal audit with the audit processesand internal audit reviews for the Company for FY 2021-22.

12. Auditors' Report

M/s C. S. Arora & Associates Chartered Accountants Statutory Auditors of theCompany have audited the accounts of the Company for the year 2020-21 and their Report isannexed. Pursuant to Section 143(3)(i) of the Companies Act 2013 the Statutory Auditorshave also reported on the adequacy and operating effectiveness of the internal financialcontrols system over financial reporting which has been enclosed as ‘Annexure' toIndependent Auditor's Report. Significant Audit observations if any and correctiveactions taken by the Management are presented to the Audit Committee of the Board fromtime to time. There are no qualifications reservations or adverse remarks or disclaimersmade in the Auditor's Report. Except DIN of Mr. Rajiv Kalra Director of the Company hasbeen deactivated as per MCA record. We have received a reply from the Company that Due toissue of OTP in the Mobile No. and E-mail id because of technical reason the company wasnot able to do the KYC. Further company is doing the needful and complying the same forthe KYC of said director.

13.Extract of the annual return

The details forming part of the extract of the Annual Return in Form MGT-9 asrequired-under the provisions of the Companies Act 2013 forms an integral part of BoardReport. Form MGT-9 is available on the website of the Company and can be accessed at

14 . Conservation of energy technology absorption and foreign exchange earnings andoutgo

Information with respect to Conservation of energy technology absorption foreignexchange earnings and outgo pursuant to Section 134 of the Companies Act 2013 read withRule 8(3) of the Companies (Accounts) Rules 2014 is not applicable because there are nomanufacturing activities in the Company.

15. Directors & Key Managerial Personnel

The Company's Board comprised six Directors as on March 31 2021 viz.

Mr. Rajinder Kumar Singhania Managing Director (Promoter)
Mr. Harjeet Singh Arora Non-Executive Non-Independent Director
Mrs. Parveen Singhania Non-Executive Woman Director / Promoter
Mr. Anil Bhatia Non-Executive Independent Director
Mr. Ashwani Kumar Non-Executive Independent Director
Mr. Rajiv Kalra Non-Executive Independent Director

The Board therefore presently comprises of six Directors and Mr. Rajinder KumarSinghania is the Managing Director & Compliance Officer of the Company. Mr. KashmirSingh is the Chief Financial Officer of the Company.

(a) Statement on Declaration by Independent Directors

The Company has received declaration from each independent director under Section149(7) of the Companies Act 2013 and SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 (‘Listing Regulations') that they meet the criteriaof independence laid down in the Companies Act 2013 and Listing Regulations.

In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015and based on the Declarations received by the Company under Section 149(7) of theCompanies Act 2013 the following Non-Executive Directors are identified as IndependentDirectors of the Company:

i) Mr. Ashwani Kumar ii) Mr. Rajiv Kalra iii) Mr. Anil Bhatia

(b) Appointment / Re-appointment / Resignation / Retirement of Directors

In order to ensure compliance with Section 152(6) of the Act the Board has consideredthe following matters related to Appointment / Re-appointment / Resignation / Retirementof Directors:

Mr.Harjeet Singh Arora Director of the Company being longest in office shall retireat the ensuing AGM and being eligible offers himself for re-appointment for ensuringcompliance with Section 152(6) of Act.

Relevant details including brief profile of the Director seeking appointment /re-appointment/Retirement at the ensuing Annual General Meeting have been furnished inthe Notice of the Annual General Meeting.

There were no other appointments/Resignations of Directors/Key Managerial Personnelduring the Financial Year 2020-21.

(c) Remuneration to Directors/Employees and related analysis

During the year under review no employee of the Company received salary in excess ofthe limits as prescribed under the Act. Accordingly no particulars of employees are beinggiven pursuant to Section 134 of the Companies Act 2013 read with Rule 5(2) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014.

The details pertaining to the ratio of the remuneration of each director to the medianemployee's remuneration and other prescribed details as required under section 197(12) ofthe Companies Act 2013 read with rule 5(1) of the Companies (Appointment and Remunerationof Managerial Personnel) Rules 2014 are annexed herewith and forms part of the Directors'Report.

(d) Key Managerial Personnel

Mr. Rajinder Kumar Singhania Managing Director & Compliance Officer Mr. KashmirSingh Chief Financial Officer are the Key Managerial Personnel as per the provisions ofthe Companies Act 2013 and rules made thereunder.

16.Number of meetings of the Board of Directors

The board meetings are convened by giving appropriate notice after obtaining theapproval of the Managing Director. The Board meets at least once a quarter to review theresults and other items on the agenda once a year for on the occasion of the annualshareholders' meeting. When necessary additional meetings are held.

The agenda of the board meetings is drafted by the Company Secretary along with theexplanatory notes and these are distributed in advance to the directors. Every Boardmember is free to suggest the inclusion of items on the agenda. The agenda papers areprepared by the concerned officials of the respective department and are approved by theManaging Director. Agenda papers are circulated to the Board by the Company Secretary.Additional items on the agenda are permitted with the permission of the Chairman. Alldivisions/departments in the Company are encouraged to plan their functions well inadvance particularly with regard to matters requiring discussion/ approval/ decision inthe board/ committee meetings.

All such matters are communicated to the Company Secretary in advance so that the samecould be included in the agenda for the board meetings.

The Board also passes resolutions by circulation on need basis.

Minutes of the proceedings of the board meeting are prepared within 48 hours of themeeting. Draft minutes are circulated to the Chairman for his comments. The minutes of allthe Committees of the Board of Directors of the Company are placed before the Board.

The quarterly half-yearly and the annual results are first placed before the AuditCommittee of the Company and thereafter the same are placed before the Board of Directors.

Regular meetings of the Board are held to discuss and decide on various businesspolicies strategies and other businesses. Due to business exigencies certain businessdecisions are taken by the Board through circulation from time to time.

The Board met Four (4) times during the FY 2020-21 viz. on 30.06.2020 28.08.202012.11.2020 and 11.02.2021.

17. Committees of the Board

The Company has several Committees which have been established as a part of the bestcorporate governance practices and are in compliance with the requirements of the relevantprovisions of applicable laws and statutes.

The Company has following Committees of the Board:

Audit Committee

To ensure the composition & independence of the Committee as per the Companies Act2013 the Audit Committee's composition and terms of reference are in compliance withprovisions of Section 177 of the Companies Act 2013 and Regulation 18 of the ListingRegulations.

As on 31.03.2021 the Audit Committee is comprised of two Non- Executive IndependentDirectors and one Non-Executive/ Non-Independent Director viz. Mr. Ashwani Kumar (Non-Executive/Independent Director) Mr. Rajiv Kalra (Non- Executive/Independent Director) andMr. Harjeet Singh Arora (Non- Executive/Non-Independent Director). All the Members ofAudit Committee are financially literate and have accounting knowledge to interpret andunderstand the financial statements. Mr. Rajiv Kalra is the Chairman of the AuditCommittee.

The Audit Committee meetings were held at the Registered Office of the Company andStatutory Auditor Company Secretary and Head of Accounts Department are permanentinvitees to the meetings. The Company Secretary of the Company acts as the secretary ofthe Committee. During the year Audit Committee members met four (4) times on 30.06.202028.08.2020 12.11.2020 and 11.02.2021.

Nomination and Remuneration Committee

Committee is constituted in line with the provisions of Regulation 19 of SEBI ListingRegulations read with Section 178 of the Act.

As on 31.03.2021 The Nomination and Remuneration Committee comprises of Mr. AnilBhatia Mr. Harjeet Singh Arora and Mr. Rajiv Kalra (Chairman).

Policy on Remuneration of Directors Key Managerial Personnel & senior employees isannexed herewith and forms the part of Board Report. Policy is also available on thewebsite of the Company and can be accessed at

One Nomination and Remuneration committee meeting was held during the year on28.08.2020.

Stakeholders Relationship Committee

The Stakeholders' Relationship Committee is constituted in line with the provisions ofRegulation 20 of SEBI Listing Regulations read with section 178 of the Act.

As on 31.03.2021 The Stakeholders' Relationship Committee of Board (SRC) comprises Mr.Harjeet Singh Arora (Chairman) Mr. Anil Bhatia (Member) and Mr. Rajiv Kalra (Member). SRCmonitors redressal of complaints received from shareholders/ investors with respect totransfer of shares non-receipt of dividend non-receipt of Annual Reports interestpayment on Bonds etc.

During the FY 2020-21 no complaints were received. There was no complaint outstandingas on 31st March 2021. Also no instruments of transfer were pending as on 31st March2021. The Company Secretary is the Compliance Officer of the Committee. The Committeemeets as and when required to deal with the investor related matters etc.

One stakeholders' relationship committee meeting was held during the year on11.02.2021.

18.Listing / De-listing of Shares

The Shares of your Company are presently listed on The Bombay Stock Exchange LimitedMumbai (BSE) and the Annual Listing Fees for the year 2021-22 has already been paid to it.The company is also listed on the Calcutta Stock Exchange (CSE) and it had applied to theCalcutta Stock Exchange Limited for voluntary delisting and the said application is stillpending for want of approval. Company is not filing any documents/information to CalcuttaStock Exchange Limited.

19.Share Capital

The paid-up Equity Share Capital as on March 31 2021 was Rs. 7.83 Lakhs. During theyear under review the Company has not issued any shares. The Company has not issuedshares with differential voting rights.

20. Vigil Mechanism/Whistle Blower Policy

Pursuant to the provisions of Section 177 (9) & (10) of the Companies Act 2013 andSchedule V of SEBI (LODR) Regulations 2015 the Company has established a vigil mechanismto provide appropriate avenues to the directors and employees to bring to the attention ofthe Management their genuine concerns about behavior of employees. Details of VigilMechanism/Whistle Blower are included in the report on Corporate Governance.

During the financial year 2020-21 no cases under this mechanism were reported to theCompany and/or to any of its subsidiaries/associate.

A copy of the Vigil Mechanism/Whistle Blower as approved by the board may be accessedat

21.Familiarization programme for Independent Directors.

The Board members are provided with necessary documents/brochures reports and internalpolicies to enable them to familiarize with the Company's procedures and practices. Thedetails of such familiarization programmes for Independent Directors are posted on thewebsite of the Company and can be accessed at

22.Particulars of loans guarantees or investments under section 186

During the year under review the company has not given any loan guarantee providedsecurity to any person or other body corporate or acquired by way of subscriptionpurchase or otherwise the securities of any other body corporate exceeding the limitsprescribed under section 186 of the Companies Act 2013.

23.Particulars of contracts or 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 an arm's lengthbasis. During the year the Company had not entered into any contract / arrangement /transaction with related parties which could be considered material in accordance with thepolicy of the Company on materiality of related party transactions.

The Policy on materiality of related party transactions and dealing with related partytransactions as approved by the Board may be accessed on the Company's website at thelink:

Your Directors draw attention of the members to Note 24 to the financial statementwhich sets out related party disclosures.

24.Insider Trading Regulations.

Based on the requirements under SEBI (Prohibition of Insider Trading) Regulations2015 as amended from time to time the Code of Practices and Procedures for FairDisclosure of Unpublished Price Sensitive Information ("Code of FairDisclosure") and the Code of Conduct to regulate monitor and report trading byemployees and other connected persons ("Code of Conduct") as approved by theBoard on 14.05.2015 are in force by the Company and amendments from time to time. Theobjective of this Code is to protect the interest of shareholders at large to preventmisuse of any price sensitive information and to prevent any insider trading activity bydealing in shares of the Company by its Directors Designated employees and SpecifiedPersons. The Company also adopts the concept of Trading Window Closure to prevent itsDirectors Designated employees and Specified Persons from trading in the securities ofthe Company at the time when there is unpublished price sensitive information.

25. Nomination and Remuneration Policy

The Company's Nomination and Remuneration Policy formulated by the Nomination andRemuneration Committee deals with the appointment and remuneration of Directors and KMPsof the Company. The policy also covers the criteria for determining qualificationspositive attributes independence of a Director and KMP. In terms of Section 134(3) (e) ofCompanies Act 2013 the Nomination and Remuneration Policy of the Company is annexedherewith and forms part of this Annual Report.

26. Risk Management

The Board of Directors of your Company has formulated the risk management policy whichseeks to identify risks inherent in business operations of the Company and providesguidelines to define measure report control and mitigate the identified risks.

The objective of Risk Management is to create and protect shareholder value byminimizing threats or losses and identifying and maximizing opportunities. Anenterprise-wide risk management framework is applied so that effective management of risksis an integral part of every employee's job.

The Board's role under the policy is to ensure framing implementing and monitoringrisk management plan having in place systems for risk management as part of internalcontrols. It is the duty of Independent Directors to bring unbiased angle to the Board'sdeliberations on making risk management systems more robust. On the other hand AuditCommittee's role is Evaluate the risk management systems.

As a financial intermediary the Company is exposed to risks that are particular to itslending business and the environment within which it operates. Company's goal in riskmanagement is to ensure that it understands measures and monitors the various risks thatarise and that the organization adheres strictly to the policies and procedures which areestablished to address these risks. The Company is primarily exposed to credit riskmarket risk liquidity risk operational risk and legal risk.

The Company has a structured and standardized credit approval process which includes awell- established procedure of comprehensive credit appraisal. In addition the Companyattempts to mitigate operational risk by maintaining a comprehensive system of internalcontrols establishing systems and procedures to monitor transactions maintaining keyback-up procedures and undertaking regular contingency planning. As regards legal riskthe Company seeks to minimize legal risk by using stringent legal documentation employingprocedures designed to ensure that transactions are properly authorized and consultinginternal and external legal advisor. The Company also conducts a comprehensive analysis ofour loan portfolio on a periodic basis. The analysis considers both qualitative andquantitative criteria including among others the account conduct future prospectsrepayment history and financial performance. This comprehensive analysis includes anaccount by account analysis of the entire loan portfolio and an allowance is made for anyprobable loss on each account. In estimating the allowance we consider the net realizablevalue on a present value basis by discounting the future cash flows over the expectedperiod of recovery. Further we also consider past history of loan losses and value ofunderlying collateral.

27.Human Resources Development

Your Company treats its “human resources” as one of its most importantassets. Your Company continuously invests in attraction retention and development oftalent on an ongoing basis. The relations at all levels of the Company have remained verycordial throughout the year.

28.Corporate Governance Certificate

The Company is committed to maintain the highest standards of corporate governance andadhere to the corporate governance requirements set out by SEBI. However since theCompany does not fulfill the criteria mentioned in Regulation 15(2)(a) of SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 the compliances with regard tocorporate governance provisions are not applicable to the Company.

29.Corporate Social Responsibility

The provisions of Section 135 of Companies Act 2013 are not applicable on the Company.

30.Prevention of Sexual Harassment at Workplace

The Company has Zero tolerance towards any action on the part of any employee which mayfall under the ambit of 'Sexual Harassment' at workplace and is fully committed to upholdand maintain the dignity of every women working in the Company.

During the year under review no complaints were received from any of the employees andno complaints were pending at the beginning of the year.

31.Directors' Responsibility Statement

The Directors' Responsibility Statement referred to in clause (c) of sub-section (3) ofSection 134 of the Companies Act 2013 shall state that

a) In the preparation of the annual accounts for the year ended 31st March 2021 theapplicable accounting standards have been followed along with proper explanation relatingto material departures and the annual accounts have been prepared in compliance with theprovisions of the Companies Act 2013.

b) the directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are 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 that period;

c) the directors had taken proper and sufficient care for 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; d)the directors had prepared the annual accounts on a going concern basis; and

e) the directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

32. Board Evaluation

The Board of Directors of your Company recognizes and accepts that Boards areaccountable to the public to ensure that they are operating in an effective manner. Careis taken to avoid that the Board does not fall into the "same old way of doingthings". Therefore one of the few ways to identify and address the problem is forthe Board to conduct a self-evaluation.

The Nomination and Remuneration Committee of the Company has approved the AnnualEvaluation Plan for the Board Committees and Individual Directors. The Board includingits committees and members shall evaluate itself once a year whether there are apparentmajor problems or not. Each member of the Board shall complete a form which comprises ofobjective questions on certain parameters such as their own roles and responsibilities inthe Company Strategic Leadership Accountability Board Processes and Board Performance.The responses shall be discussed among members of Board Committees and at Individuallevel. The exercise shall be led by the Chairman alongwith a Senior Independent Directorof the Company.

The results of the Evaluation shall be shared with the Board Chairman of respectiveCommittees and individual Director Based on the outcome of the Evaluation the Board andCommittees shall agree on the action plan to improve on the identified parameter. Theevaluation in terms of the plan has been completed during the period under review.

33. Managing Director (MD) and Chief Financial Officer (CFO) Certificate

In terms of the Listing Regulations the certificate as prescribed in Part B ofSchedule II of the said Regulations has been obtained from the Chief Financial Officerand Managing Director of the Company for the financial year 2020-21 with regard to thefinancial statements and other matters. The said certificate forms part of this AnnualReport.

34. Dividend Distribution Policy

Regulation 43A of the Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015 (‘Listing Regulations') is not applicableon the Company.

35.Reporting of Frauds by Auditors

During the year under review the Statutory Auditors and Secretarial Auditors have notreported any instances of frauds committed in the Company by its Officers or Employees tothe Audit Committee under Section 143(12) of the Act details of which needs to bementioned in this Report.

36. Secretarial Standards of ICSI

The Directors have devised proper systems and processes for complying with therequirements of applicable Secretarial Standards issued by the Institute of CompanySecretaries of India (‘ICSI') and that such systems were adequate and operatingeffectively.

37. Covid-19 Impact

The outbreak of the deadly COVID-19 virus and the ensuing lockdown imposed across thecountry affected business operations. The health of the employees became a priority;stoppage of operations for an uncertain period resulted in a large financial burden on theone hand and workforce idling on the other. COVID-19 is an unprecedented challenge. Thelockdown gave India time to make a concerted effort to flatten the outbreak curve.However towards later part of the year consequent to significant opening of the economicactivity across the nation the demand picked up compared to that during the initial periodof Covid-19. India is currently experiencing a massive second wave of Covid-19 infections.However we expect no major changes in the economic activity as the nation is preparing toface the Pandemic with vaccines and preparedness.

38. Acknowledgement

Your Directors would like to express their sincere appreciation for the assistance andco-operation received from the financial institutions banks stakeholders customers andmembers during the year under review.

Your Directors also wish to place on record their deep sense of appreciation for thecommitted services by the Company's executives and staff at all levels of your Company.

Your Directors also wish to express their gratitude to investors for the faith thatthey continue to repose in the Company.

Your Directors deeply regret the loss of life caused due to the outbreak of COVID-19and are grateful to every person who risked their life and safety to fight this pandemic.

For and on behalf of the Board of Directors
Place: Ludhiana
Date : 26.08.2021 (Rajinder Kumar Singhania)
Managing Director
DIN :00077540