Your Directors have pleasure in presenting their Annual Report together with the
Audited Accounts of the Company for the Year ended March 31 2017.
1. FINANCIAL RESULTS: (Rs. in Lacs)
|Particulars ||March 31 ||March 31 |
| ||2017 ||2016 |
|Revenue from Operations ||43.30 ||74.07 |
|Other Income ||13.17 ||1.80 |
|Total ||56.47 ||75.87 |
|Profit before depreciation & taxation& ||9.80 ||9.08 |
|exceptional item || || |
|Less: Depreciation ||7.22 ||5.36 |
|Add : exceptional Item ||- ||- |
|Profit Before Tax ||2.58 ||3.72 |
|Less: Provision for taxation ||0.80 ||1.15 |
|Add: Prior period adjustment ||- ||- |
|Profit after taxation ||1.78 ||2.57 |
|Add: Balance brought forward from ||(77.96) ||(79.81) |
|previous year || || |
|Less : Timing Difference ||0.05 ||0.31 |
|Less : Fixed Assets Written Off ||- ||- |
|Less : Provision for Standard Assets ||- ||0.41 |
|Surplus available for appropriation ||1.78 ||2.57 |
|Balance carried to Balance sheet ||(76.13) ||(77.96) |
Due to the accumulated loss in the balance Sheet the company proposes to retain theBalance in the profit and loss account without any making any appropriation.
During the year under review the turnover declined to 56.47 Lacs in comparison to thatof the previous year 75.87 Lacs . Profit before depreciation and taxation was Rs. 9.80lacs against Rs. 9.08 Lacs in the previous year. After providing for taxation of Rs. 0.80Lacs & Rs 1.15 Lacs depreciation of Rs. 7.22 Lacs & 5.36 Lacs respectively thenet profit of the Company for the year under review after considering income fromexceptional item was placed at Rs. 1.78 Lacs as against Rs. 2.57 lacs in the previousyear.
In view of Accumulated Loss in the Balance Sheet your directors do not recommend anydividend for the year under operation.
The paid up equity capital as on March 31 2017 was Rs 1500.24 Lakhs. The company hasnot issued shares with differential voting rights nor granted stock options nor sweatequity. As on 31ST March 2017 none of the Directors hold any instrument convertible intoequity shares of the company .
Cash and cash equivalents as at March 31 2017 was Rs. 14.05 lakhs. The companycontinues to focus on judicious management of its working capital Receivablesinventories and other working capital parameters were kept under strict check throughcontinuous monitoring.
The Company being a Non Banking Financial Corporation (NBFC) has not accepted depositsand as such no amount on account of principal or interest on Public Deposits wasoutstanding as on the date of Balance Sheet.
PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS:
Being a NBFC Company Section 186 of Companies Act 2013 is not applicable to theCompany.
The details of the investments made by company is given in the notes to the financialstatements.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an Internal Control System commensurate with the size scale andcomplexity of its operations. The scope and authority of the Internal Audit function isdefined by the Audit Committee in consultation with the Statutory Auditor of the Company.To maintain its objectivity and independence the Internal Audit function reports to theChairman of the Audit Committee of the Board & to the Chairman & ManagingDirector.
The Internal Auditor monitors and evaluates the efficacy and adequacy of internalcontrol system in the Company its compliance with operating systems accountingprocedures and policies at all locations of the Company. Based on the report of internalaudit function process owners undertake corrective action in their respective areas andthereby strengthen the controls. Significant audit observations and recommendations alongwith corrective actions thereon are presented to the Audit Committee of the Board.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
Your Company does not have the requisite Net Worth nor has it achieved the requisiteturnover nor it has the requisite net profit for the year for triggering theimplementation of corporate social responsibility (CSR ) .
CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION:
Your Company is a Non Banking Finance Company hence information regarding disclosure ofconservation of energy is not applicable to it. However as a part of national interest itensures that energy consumption is kept at minimum. There are no technology involved asthe Company is a Non Banking Finance Company.
FOREIGN EXCHANGE EARNINGS AND OUT-GO :
During the period under review the Company has NIL foreign exchange earnings/foreignexchange out flow.
During the year under review your Company enjoyed cordial relationship with employeesat all levels.
There was no change in the composition of the Board during the financial year 2016-17.
Based on the Confirmation received none of the Director of the Company is disqualifiedfor appointment under the applicable provisions of the Companies Act 2013 .
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received necessary declaration from each independent director underSection 149(7) of the Companies Act 2013 that they meet the criteria of independencelaid down in Section 149(6) of the Companies Act 2013 and of the Listing Agreement andapplicable regulations of Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015.
Pursuant to the provisions of the Companies Act and Regulation 17 of the SEBI (LODR)Regulations the Board has carried out an annual performance evaluation of its ownperformance the Directors individually as well as the Board Committees . The evaluationprocess considered the effectiveness of the Board and the committees with special emphasison the performance and functioning of the Board and the Committees. The evaluation of theDirectors was based on the time spent by each of the Board Members core competenciesexpertise and contribution to the effectiveness and functioning of the Board and theCommittees.
The Board has on the recommendation of the Nomination & Remuneration Committeeframed a policy for selection and appointment of Directors Senior Management and theirremuneration. The Remuneration Policy is stated in the Corporate Governance Report.
A calendar of Meetings is prepared and circulated in advance to the Directors. Duringthe year Four (4) Board Meetings and Four (4) Audit Committee & Three (3) StakeholderRelationship Committee Meetings were convened and held. The details of which are given inthe Corporate Governance Report. The intervening gap between the Meetings was within theperiod prescribed under the Companies Act 2013.
DIRECTOR'S RESPONSIBILITY STATEMENT:
In terms of Section 134 (5) of the Companies Act 2013 the directors would like tostate that: i) In the preparation of the annual accounts the applicable accountingstandards have been followed. ii) The directors have selected such accounting policies andapplied them consistently and made judgments and estimates that were reasonable andprudent so as to give a true and fair view of the state of affairs of the Company at theend of the financial year and of the profit or loss of the Company for the year underreview. iii) The directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities.iv) The directors have prepared the annual accounts on a going concern basis. v) Thedirectors had laid down internal financial controls to be followed by the company and thatsuch internal financial controls are adequate and were operating effectively. vi) Thedirectors had devised proper system to ensure compliance with the provisions of allapplicable laws and that such system were adequate and operating effectively.
RELATED PARTY TRANSACTIONS:
All Related party transactions that were entered into during the financial year were onan arms length basis and in the ordinary course of business. There are no materialsignificant related party transactions made by the Company during the year that would haverequired shareholder approval under applicable clauses and regulations of the ListingAgreement. All related party transactions are reported to the Audit Committee. Priorapproval of the Audit Committee is obtained on a yearly basis for the transactions whichare planned and/ or repetitive in nature and omnibus approvals are taken within limitslaid down for unforeseen transactions. The disclosure under Section 134(3)(h) of theCompanies Act 2013 read with Rule 8(2) of the Companies (Accounts) Rules 2014 is notapplicable.
The details of the transactions with related parties during 2016-17 are provided in theaccompanying financial statements.
None of the Directors had any pecuniary relationship or transactions with the Companyduring the year under review.
The Company does not have any subsidiary.
CODE OF CONDUCT:
The Board of Directors has approved a Code of Conduct which is applicable to theMembers of the Board and all employees in the course of day to day business operations ofthe company. The Company believes in Zero Tolerance against briberycorruption and unethical dealings / behaviors of any form and the Board has laid down thedirectives to counter such acts. The code laid down by the Board is known as code ofbusiness conduct which forms an Appendix to the Code. The Code has been posted onthe Company's website . The Code lays down the standard procedure of business conductwhich is expected to be followed by the Directors and the designated employees in theirbusiness dealings and in particular on matters relating to integrity in the work place inbusiness practices and in dealing with stakeholders. The Code gives guidance throughexamples on the expected behavior from an employee in a given situation and the reportingstructure. All the Board Members and the Senior Management personnel have confirmedcompliance with the Code. All Management Staff were given appropriate training in thisregard.
VIGIL MECHANISM / WHISTLE BLOWER POLICY:
The Company has a vigil mechanism to deal with instance of fraud and mismanagement ifany. In staying true to our values of Strength Performance and Passion and in line withour vision of being the respected companies in Corporate World the Company is committedto the high standards of Corporate Governance and stakeholder responsibility. The Companyhas a Framed a Risk and Management Policy to deal with instances of fraud andmismanagement if any. The FRM Policy ensures that strict confidentiality is maintainedwhilst dealing with concerns and also that no discrimination will be meted out to anyperson for a genuinely raised concern.
A high level Committee has been constituted which looks into the complaints raised. TheCommittee reports to the Audit Committee and the Board.
PREVENTION OF INSIDER TRADING:
The Company has adopted a Code of Conduct for Prevention of Insider Trading with a viewto regulate trading in securities by the Directors and designated employees of theCompany. The Code requires pre-clearance for dealing in the Company's shares and prohibitsthe purchase or sale of Company shares by the Directors and the designated employees whilein possession of unpublished price sensitive information in relation to the Company andduring the period when the Trading Window is closed. The Board is responsible forimplementation of the Code. All Board Directors and the designated employees haveconfirmed compliance with the Code.
AUDITOR'S REPORT/ SECRETARIAL AUDIT REPORT:
The observation made in the Auditors' Report read together with relevant notes thereonare self explanatory and hence do not call for any further comments under Section 134 ofthe Companies Act 2013. As required under section 204 (1) of the Companies Act 2013 theCompany has obtained a secretarial audit report. Certain observations made in the report.However the company would ensure in future that all the provisions are complied to thefullest extent.
In terms of the provisions of Section 139 of the Companies Act 2013 the term ofoffice of C. Ghatak & Co. will end at the conclusion of the forthcoming Annual GeneralMeeting. The Board places on record its appreciation for services rendered by C. Ghatak& Co. Statutory Auditors of the Company. The Board has recommended appointment of M/s.A.Balasaria & Co. (FRN: 319300E) as Statutory Auditors of the Company. Theaforementioned appointment is subject to approval of the shareholders at the forthcomingAnnual General Meeting. Accordingly resolution for appointment of M/s. A.Balasaria &Co. as Statutory Auditors of the Company for a period of 5 consecutive years from theconclusion of the Annual General Meeting to held in the year 2017 till the conclusion ofthe Annual General Meeting to be held in the year 2022.
Pursuant to provisions of section 204 of the Companies Act 2013 and The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the company hasappointed Chetna Gupta & Associates a firm of company Secretaries in practice toundertake the Secretarial Audit of the Company. The Secretarial Audit report is annexedherewith as Annexure A
EXTRACT OF ANNUAL RETURN:
The details forming part of the extract of the Annual Return in form MGT-9 is annexedherewith as Annexure B.
CHANGE IN NATURE OF BUSINESS IF ANY
The details of change in nature of business is provided under Management Discussion andAnalysis Report forming part of this Annual Report.
DISCLOSURES AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITIONAND REDRESSAL) ACT 2013
The Company has implemented a prevention of sexual harassment policy in line with therequirements of the Sexual Harassment of Women at Workplace (Prevention Prohibition andRedressal) Act 2013 (SHWWA). A Complaints desk has been set up to redress complaintsreceived regarding sexual harassment and ongoing training is provided to employees asrequired by the SHWWA. During the financial year 2016-17 no complaint was received.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF): No amount was due for thetransfer to Investor Education & Protection Fund. LISTING OF SHARES OF THE COMPANY
The equity shares of your Company continue to be listed with the BSE Limited and theCalcutta Stock Exchange (CSE). The listing fees due as on date have been paid to therespective stock exchanges.
PARTICULARS OF EMPLOYEES: ( Rule 5(2) & Rule 5(1) )
The information required pursuant to Section 197 read with rule 5 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 in respect of employeesof the Company will be provided upon request. In terms of Section 136 of the Act thereports and accounts are being sent to the members and others entitled thereto excludingthe information on employees' particulars which is available for inspection by the membersat the Registered office of the company during business hours on working days of thecompany up to the date of ensuing Annual General Meeting. If any member is interested ininspecting the same such member may write to the company secretary in advance.
a. The ratio of remuneration of each director to the median remuneration of theemployees of the company for the financial year
| ||RATIO TO |
|NON EXECUTIVE DIRECTORS ||MEDIAN |
| ||REMUNERATION |
|Mr. Sandip Kumar Bej ||-- |
|Mr. Sardul Singh Jain ||-- |
|Mrs. Anushri Pal || |
|Mr. Sujit Kumar Panja ||-- |
|EXECUTIVE DIRECTOR || |
|Mr. Sagarmal Nahata ||-- |
b. The Percentage increase in remuneration of each Director chief executive officer chief financial officer company secretary in the company .
|Director chief executive officer chief financial and company secretary officer ||% increase in remuneration in the financial year |
|There was no increase in the remuneration of any key managerial personnel during the financial year. |
c. The Percentage increase in the remuneration of employees in the financial year
There was an increase of 10% (avg.) in the remuneration of employees in the financialyear 2016-2017
d. The Number of permanent employees in the rolls of the Company other than KMP is 10.The Employees has joined the company during the FY 16-17 is still under probation periodthey are not considered as the permanent employees for the FY 16-17.
e. The explanation on the relationship between average increase in remuneration andcompany performances :
On an average the employees received an annual increase of 10% in India. The increasein remuneration will be in line with the market trend . In order to ensure thatremuneration reflects company performance the performance pay is also linked toorganization performance apart from an individual's performance.
f. Comparison of remuneration of the key managerial personnel against the performanceof the company
| ||Sagarmal Nahata (Managing Director ) ||Vivek Khandelwal (Company Secretary ) |
|REMUNERATION || || |
|IN FY 16-17 ||- ||3.60 |
|( RS IN LACS ) || || |
|REVENUE || ||56.47 |
|REMUNERATION || || |
|AS A % OF ||- ||6.37 |
|REVENUE || || |
|PROFIT BEFORE || || |
|TAX ( PBT ) ( RS || ||2.58 |
|IN LACS ) || || |
|REMUNERATION || || |
| ||- ||139.53 |
|AS % OF PBT || || |
g. Variation in the market capitalization of the Company price earnings ratio as atthe closing date of the current financial year and previous financial year
|Financial Year ||Market Capitalization ||P/E Ratio |
|15-16 ||Nil ||Nil |
|16-17 ||Nil* ||Nil* |
h. Percentage increase over decrease in the market quotations of the shares of theCompany in comparison to the rate at which the Company came out with the last public offer
*The Share of the Company was not traded in the Financial 16-17.
i. Average percentile increase already made in the salaries of employees other than themanagerial personnel in the last financial year and its comparison with the percentileincrease in the managerial remuneration and justification thereof and point out if thereare any exceptional circumstances for increase in the managerial remuneration :
There was an increase of 10% (avg.) in the remuneration of employees in the financialyear 2016-2017
j. Comparison of each remuneration of the managerial personnel against the performanceof the company
| ||Mr. Sagarmal |
| ||Nahata |
| ||( Managing Director |
| ||) |
|REMUNERATION IN FY 16-17 ||- |
|( RS IN LACS ) || |
|REVENUE ||56.47 |
|REMUNERATION AS A % OF ||- |
|REVENUE || |
|PROFIT BEFORE TAX ( PBT ) ||2.58 |
|( RS IN LACS ) || |
|REMUNERATION AS % OF ||- |
|PBT || |
k. The key parameters for any variable component of remuneration availed by theDirectors Apart from remuneration paid to the executive directors no remuneration is paidto the non executive directors of the company . l. The ratio of remuneration of thehighest paid director to that of the employees who are not directors but receiveremuneration in excess of the highest paid director during the year NONE m. Affirmationthat the remuneration is as per the remuneration policy of the company The Company affirmsremuneration is as per the remuneration policy of the company.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORTS
The Corporate Governance and Management Discussion & Analysis Report which form anintegral part of this Report are set out as separate Annexure together with theCertificate from the auditors of the Company regarding compliance with the requirements ofCorporate Governance as stipulated in SEBI (Listing Obligations and disclosureRequirement) Regulation 2015
Your Company and its Directors wish to extend their sincerest thanks to the Members ofthe Company Bankers State Government Local Bodies Customers Suppliers ExecutivesStaff and workers at all levels for their continuous cooperation and assistance.
|30th May 2017 ||For and on behalf of the |
| ||Board of Directors |
| ||Sagarmal Nahata |
| ||Managing Director |