You are here » Home » Companies » Company Overview » Riddhi Corporate Services Ltd

Riddhi Corporate Services Ltd.

BSE: 540590 Sector: Others
NSE: N.A. ISIN Code: INE325X01015
BSE 00:00 | 26 Sep 222.50 10.55
(4.98%)
OPEN

222.50

HIGH

222.50

LOW

222.50

NSE 05:30 | 01 Jan Riddhi Corporate Services Ltd
OPEN 222.50
PREVIOUS CLOSE 211.95
VOLUME 3
52-Week high 222.50
52-Week low 124.10
P/E 42.14
Mkt Cap.(Rs cr) 253
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 222.50
CLOSE 211.95
VOLUME 3
52-Week high 222.50
52-Week low 124.10
P/E 42.14
Mkt Cap.(Rs cr) 253
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Riddhi Corporate Services Ltd. (RIDDHICORPORATE) - Director Report

Company director report

To

The Members

Riddhi Corporate Services Limited

Your Directors have pleasure in presenting the 11th AnnualReport together with the Audited accounts of the Company for the financial year ended onMarch 31 2021.

4 FINANCIAL RESULTS:

(Rs. In lacs)

PARTICULARS FOR THE YEAR ENDED ON 31ST MARCH 2021 FOR THE YEAR ENDED ON 31ST MARCH 2020
Net Total Income 8980.10 8171.91
Less: Operating and Admin. Exps. 8239.16 7710.45
Profit before depreciation and Taxes 740.94 461.46
Less: Depreciation 262.54 29.03
Less: Extraordinary/Exceptional Items - 331.06
Profit before Tax (PBT) 478.40 101.37
Less: Taxes (including deferred tax and fringe benefit tax) 169.15 156.13
Profit after Tax (PAT) 309.25 (54.77)
Surplus Carried to Balance Sheet - -
Earnings Per Equity Share
Basic 2.72 (0.48)
Diluted 2.72 (0.48)

4 HIGHLIGHTS OF PERFORMANCE:

The company has posted a good performance for the year under review ascompared to previous year i.e.2019-2020. The total revenue of the Company has increasedfrom Rs. 817191177/- to 898010077/-.

4- DIVIDEND:

During the Period under review the board of directors of company hasnot recommended declaring the dividend to plough back profit.

4- PUBLIC DEPOSITS:

Your Company has not accepted any deposits within the meaning ofSection 73 of the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules2014.

4- BOARD MEETINGS HELD DURING THE YEAR:

SR NO. DATE ON WHICH BOARD MEETINGS WERE HELD TOTAL STRENGTH OF THE BOARD NO OF DIRECTORS PRESENT
1 31/07/2020 10 09
2 04/09/2020 10 10
3 14/09/2020 10 10
4 12/11/2020 10 10
5 05/12/2020 10 10
6 13/02/2021 10 10
7 20/02/2021 10 10

ATTENDANCE OF DIRECTORS AT BOARD MEETINGS:

SR NO. NAME OF DIRECTORS NO. OF MEETING HELD NO. OF MEETING ATTENDED
1 ALPITKUMAR P. GOR 07 07
2 PRAVINCHANDRA K. GOR 07 07
3 JAYSHREEBEN P. GOR 07 07
4 SOUMYARANJAN K. PRADHAN 07 07
5 KALPESHBHAI C. SHUKLA 07 07
6 UMESH ARVINDBHAI BHADRESWARA 07 07
7 SUBHASISH CHAKRABORTY 07 06
8 BHAVIN KIRITKUMAR PANDYA 07 07
9 KALPANABEN DIPAKBHAI SUTHAR 07 07
10 JASHUBHAI M PATEL 07 07

DEPOSITORY SYSTEM:

All the Shareholding of the company is in Dematerialized form only.

4- SUBSIDIARY/ JOINT VENTURE/ ASSOCIATE COMPANY:

• Company does not have any Subsidiary / Associate / Joint VentureCompany as on 31st March 2021.

4- CORPORATE GOVERNANCE:

Pursuant to the provisions of Regulation 34(3) read with Schedule V(C)of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015("Listing Regulations") the Report on Corporate Governance is annexed heretoand forms part of this Report. Your Company is committed to transparency in all itsdealings and places high emphasis on business ethics. The requisite Compliance Certificateas required under Part E of Schedule V of the Listing Regulations issued by Mr. Amrish N.Gandhi (C P No. 5656) proprietor of M/s. Amrish Gandhi & Associates PractisingCompany Secretaries Ahmedabad pertaining to the compliance of the conditions of CorporateGovernance is also annexed herewith as "Annexure - E".

EXTRACT OF ANNUAL RETURN AS PER SECTION 92 (3) OF COMPANIES ACT 2013:

The details forming part of the extract of the Annual Return in formMGT- 9 is annexed herewith as "Annexure -A".

4 DIRECTORS AND KEY MANAGERIAL PERSONNEL:

• In terms of Section 152 of the Companies Act 2013 Mr. UmeshArvindbhai Bhadreswara (DIN: 07582046) is liable to retire by rotation atforthcoming AGM and being eligible offers himself for re-appointment.

• The Company has received necessary declaration from eachindependent director under Section 149(7) of the Companies Act 2013 that he/ she meetsthe criteria of independence laid down in Section 149(6) of the Companies Act 2013.

• All the directors of the Company have confirmed that they arenot disqualified from being appointed as directors in terms of Section 164 of theCompanies Act 2013.

• CHANGES IN THE DIRECTORSHIP OF THE COMPANY:

During the period under review following changes taken place in theDirectorship of the Company.

• Change in the designation of Mr Jashubhai M Patel (DIN:08513009) from an Additional Directors to an Independent Director w.e.f 28thDecember 2020.

• MATTERS AS PRESCRIBED UNDER SUB-SECTIONS (1) AND (3) OF SECTION178 OF THE COMPANIES ACT 2013:

The policy of the Company on directors' appointment and remunerationincluding criteria for determining qualifications positive attributes independence of adirector and other matters provided under Sub section (3) of Section 178 of the CompaniesAct 2013. We affirm that the remuneration paid to the directors is as per the terms laidout in the nomination and remuneration policy of the Company.

• BOARD EVALUATION:

Pursuant to the provisions of the Companies Act 2013 the Board hascarried out an annual evaluation of its own performance the directors individually aswell as the evaluation of the working of its Committees. At the meeting of the Board allthe relevant factors that are material for evaluating the performance of individualDirectors the Board and its various committees were discussed in detail. A structuredquestionnaire each for evaluation of the Board its various Committees and individualDirectors was prepared and recommended to the Board by Nomination & RemunerationCommittee for doing the required evaluation after taking into consideration the inputreceived from the Directors covering various aspects of the Board's functioning such asadequacy of the composition of the Board and its Committees execution and performance ofspecific duties obligations and governance etc.

• AUDITORS:

• STATUTORY AUDITORS:

 

M/s. NITIN K. SHAH & CO Chartered Accountant theStatutory Auditors of the Company has been appointed by the company at its 8thAnnual General Meeting held on 28th September 2018 till the conclusion of its 11thAnnual General Meeting to be held for the financial year ending on 31st March.2021.

Your Company has received letter from M/s. NITIN K. SHAH & COChartered Accountant to the effect that their appointment is within the prescribedlimits under Section 141 of the Companies Act 2013 read with rules made there under andthat they are not disqualified for such appointment.

The Statutory Auditors report for the financial year ended March 2021is attached to this report.

No Qualification or Adverse Remarks made in Statutory Report byStatutory auditors for the financial year 2020-2021.

However W.e.f 07th August 2021 M/s. NITIN K. SHAH &CO Chartered Accountant the

Statutory Auditors of the Company has resigned from the company andboard of the directors has fill the casual vacancy arise due to such resignation byappointing M/s MB Gabhawala & Co. (FRN:001183C) up to this annual generalmeeting.

• SECRETARIAL AUDITORS:

Your directors have appointed Amrish Gandhi & AssociatesCompany Secretary 504 Shivalik Abaise Opp. Shell Petrol Pump Anandnagar RoadSatellite Ahmedabad-380015 as secretarial auditors for the financial year 2020-21.

The Secretarial Audit Report for the Financial Year ended March 2021is attached to this report as "Annexure-C".

• COST AUDITORS

Provision for appointment of Cost Auditor is not applicable to yourcompany.

• INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY:

Your Company has established effective internal control systems toensure accurate reliable and timely compilation of financial statements to safeguardassets of your Company and to detect and mitigate irregularities and frauds. YourCompany's management has established adequate internal control procedures over financialreporting.

In accordance with the requirements of Section 143(3)(i) of the Actthe Statutory Auditors have confirmed the adequacy and operating effectiveness of theinternal financial control systems over financial reporting.

• PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS UNDER SECTION186: Details of Loans Guarantees and Investments under the provisions of Section 186of the Companies Act 2013 are given in the Financial Statement of the company.

• AUDIT COMMITTEE:

Audit Committee comprises of three members and all members areIndependent Directors. All transactions with related parties are on an arm's length basis.During the year there are no instances where the Board had not accepted therecommendations of the Audit Committee.

The composition of the Audit Committee of the Board of Directors of theCompany mentioned below:

NAME OF DIRECTORS DESIGNATION NATURE OF DIRECTORSHIP
Soumyaranjan Pradhan Chairman Independent Director
Kalpeshbhai Shukla Member Independent Director
Bhavin kiritkumar Pandya Member Independent Director

• NOMINATION AND REMUNERATION COMMITTEE:

Nomination and Remuneration Committee comprises of three members ofwhich three including the Chairman of the Committee are Independent Directors. Thecomposition of the Nomination and Remuneration Committee of the Board of Directors of theCompany is mentioned below:

NAME OF DIRECTORS DESIGNATION NATURE OF DIRECTORSHIP
Bhavin kiritkumar Pandya Chairman Independent Director
Kalpeshbhai Shukla Member Independent Director
Soumyaranjan Pradhan Member Independent Director

• STAKEHOLDER RELATIONSHIP COMMITTEE:

Stakeholder Relationship Committee comprises of three members of whichthree including the Chairman of the Committee are Independent Directors. The compositionof the Stakeholder Relationship Committee of the Board of Directors of the Company ismentioned below:

NAME OF DIRECTORS DESIGNATION NATURE OF DIRECTORSHIP
Soumyaranjan Pradhan</td> Chairman Independent Director
Kalpeshbhai Shukla Member Independent Director
Bhavin kiritkumar Pandya Member Independent Director

• RELATED PARTY TRANSACTIONS:

All the related party transactions entered into during the financialyear were on an arm's length basis and were in the ordinary course of business.Accordingly the disclosure of related party transactions as required under Section 134(3)(h) of the Companies Act 2013 in Form AOC-2 which is attached with this report as "Annexure-B".

• SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS ORCOURTS:

There are no significant material orders passed by the Regulators /Courts which would impact the going concern status of the Company and its futureoperations.

• MATERIAL CHANGES:

No material changes and commitments affecting the financial position ofthe company occurred between the end of the financial year to which this financialstatements relate and the date of the report.

• CHANGES IN CAPITAL STRUCTURE OF THE COMPANY:

During the Period under review there is no change in Capital Structureof the Company.

• RESERVES:

The Company has not transferred any amount to General Reserve / CapitalRedemption Reserve during the Period under review.

4 EMPLOYEE STOCK OPTION:

The Company has not issued any shares during the financial year underthe Employee Stock Option Scheme.

4 CASH FLOW ANALYSIS:

The Cash Flow Statement for the year under reference forms part of theAnnual Report.

4 CONSERVATION OF ENERGY RESEARCH AND DEVELOPMENT TECHNOLOGYABSORPOTION FOREIGN EXCHANGE EARNINGS AND OUTGO:

A) CONSERVATION OF ENERGY:

The clause is not applicable.

B) TECHNOLOGY ABSORPTION:

Your company has not made any efforts towards technology absorption andneither imported any technology nor made any expenditure on research and developments.

C) FOREIGN EXCHANGE EARNINGS AND OUTGO:

Foreign Exchange inflow (Rs.): NIL Foreign Exchange outflow(Rs.): NIL

4 MANAGEMENT DISCUSSION AND ANALYSIS:

• ECONOMIC SCENARIO:

The COVID-19 pandemic has affected every industry and has disruptedtrade supply chains work and business models employment and consumer behaviors. Duringthe pandemic companies across the world accelerated their digital transformationinitiatives to address these disruptions and secure their businesses. While some companieshave now set up advanced business continuity measures others have embarked on newinnovative services and products. As companies focused on protecting employees from thepandemic technology enabled a seamless transition to remote working by shifting todigital channels and digital customer engagement models. Various stay at home ordersresulted in large scale adoption of models such as buy-online-pick up in-store in retailtele-medicine and virtual care in healthcare touch less experiences in finance andvirtual solutions for online learning.

According to the Strategic Review 2021 published by NASSCOM (the"NASSCOM Report") India's technology industry is forecasted to grow at 2.3% toreach approximately $194 billion in fiscal year 2021 (excluding e-commerce). According tothe NASSCOM Report exports are estimated to grow at 1.9% to reach approximately $150billion in fiscal year 2021 and the domestic sector is forecasted to reach approximately$45 billion in fiscal year 2021 growing at 3.4%. According to the NASSCOM Report thegrowth is driven by increased demand for digital transformation and infrastructuremodernization. As per the NASSCOM Report digital revenues account for 28-30% of totalindustry revenues for fiscal year 2021 growing at five times the overall services growth.Share of digital services in new contracts is up by 90% from fiscal year 2020 driven bycloud collaboration and cyber security.

The growth of cloud artificial intelligence ("AI") machinelearning ("ML") internet of things ("IoT") analytics automation andcollaboration software were accelerated during the COVID- 19 pandemic led by remoteworking and transformation engagements for contactless activities and customer experience.It is expected that the IT services industry will move to hybrid work models withimplications on hiring team structures compliance and cyber security. Global IT serviceproviders offer a range of end-to-end software development digital services IT businesssolutions research and development services technology infrastructure services businessprocess services consulting and related support functions. The conditions caused by theCOVID-19 pandemic continue to evolve as new variants of the virus are emerging in some ofour markets leaving the recovery outlook varied and uncertain. Despite demand stabilitybeing high and ongoing large scale vaccination drives economic outlook remains uncertain.However companies will continue to invest in digital transformation to address newpandemic driven consumer behaviors with the support of technology

• INDUSTRY REVIEW:

The IT & BPM industry's revenue is estimated at ~US$ 194 billion inFY21 an increase of 2.3% YoY. The domestic revenue of the IT industry is estimated at US$45 billion and export revenue is estimated at US$ 150 billion in FY21. According toGartner estimates IT spending in India is estimated to reach US$ 93 billion in 2021 (7.3%YoY growth) and further increase to US$ 98.5 billion in 2022. The BPM sector in Indiacurrently employs >1.4 million people while IT and BPM together have >4.5 millionworkers as of FY21.

Indian software product industry is expected to reach US$ 100 billionby 2025. Indian companies are focusing to invest internationally to expand globalfootprint and enhance their global delivery centres. In line with this in February 2021Tata Consultancy Services announced to recruit ~1500 technology employees across the UKover the next year. The development would build capabilities for TCS to deliverefficiently to the UK customers.

The data annotation market in India stood at ~ US$ 250 million in FY20of which the US market contributed ~ 60% to the overall value. The market is expected toreach ~ US$ 7 billion by 2030 due to accelerated domestic demand for AI.

• REVIEW AND FUTURE OUTLOOK OF THE COMPANY:

The Company is continuously trying to accomplish the desired results.Steps have been taken for cost diminution and quality of work by the Company. The Companywill achieve more turnover by various marketing strategies offering more qualityproducts launching new products and services etc. in coming years followed by increase inprofit margin by way of various cost cutting techniques and optimum utilization of variousresources of the Company.

• INTERNAL CONTROL SYSTEM:

The Company has proper and adequate system of internal controlcommensurate with the size and nature of its business. Regular Internal Audits and Checkscarried out and also management reviews the internal control system and procedures toensure orderly and efficient conduct of business and to ensure that all assets aresafeguarded and protected against loss from unauthorized use or disposition and thattransactions are authorized recorded and reported correctly. The Company has well definedinternal control system. The Company takes abundant care to design review and monitor theworking of internal control system. Internal audit in the organization is an independentappraisal activity and it measures the efficiency adequacy and effectiveness of othercontrols in the organization. The Audit Committee comprising Independent Directorsregularly reviews audit plans significant audit findings adequacy of internal controlsand compliance with Accounting Standards among others.

• HUMAN RESOURCES:

The Company believes that its people are its most important asset andthus continuously strives to scale up its employee engagement through well structuredsystems and a visionary HR philosophy. The Company continues to lays emphasis on buildingand sustaining the excellent organization climate based on human performance. Performancemanagement is the key word for the Company. Pursuit of proactive policies for industrialrelations has resulted in a peaceful and harmonious situation in the Company. We arehighly focused on developing our employees to perform with the same excellence for thechallenges and huge business opportunities that are envisaged in future. The Companyfirmly believes that intellectual capital and human resources is the backbone of theCompany's success.

• CAUTIONARY STATEMENT:

Statement in the Management Discussion and Analysis describingCompany's objectives projections estimates expectation may be forward-lookingstatements within the meaning of applicable securities laws and regulations. Actual resultcould differ materially from those expressed or implied. Important factors that could makea difference to the Company's operation include economic conditions affecting demand/supply and price conditions in the Government regulations tax laws and other status andother incidental factors.

Further the discussion following herein reflects the perceptions onmajor issues as on date and the opinion expressed here are subject to change withoutnotice. The Company undertakes no obligations to publicly update or revise any of theopinions of forward looking statements expressed in this report consequent to newinformation future events or otherwise. Readers are hence cautioned not to place unduereliance on these statements and are advised to conduct their own investigation andanalysis of the information contained or referred to this statement before taking anyaction with regard to specific objectives.

• RISK MANAGEMENT:

The Board of Directors have developed & implemented a robust riskmanagement policy which identifies the key elements of risks that threatens the existenceof the Company. The Audit Committee reviews the Company's financial and risk managementpolicies and steps taken by the Company to mitigate such risks.

• CORPORATE SOCIAL RESPONSIBILITY:

The Clause regarding Corporate Social Responsibility is not applicableto the Company during the period under review.

• PREVENTION OF SEXUAL HARASSMENT POLICY:

The Company has in place Prevention of Sexual Harassment Policy in linewith the requirements of The Sexual Harassment of Women at Workplace (PreventionProhibition & Redressal) Act 2013. All employees (permanent contractual temporarytrainees) are covered under this policy. Your Directors state that during the year underreview there were no cases filed pursuant to the aforesaid Act.

• DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to Section 134(5) of the Companies Act 2013 the Board ofDirectors to the best of their knowledge and ability state the following:

• that in the preparation of the annual financial statements forthe year ended March 31 2021 the applicable accounting standards have been followedalong with proper explanation relating to material departures if any;

• that such accounting policies as mentioned in Notes to theFinancial Statements have been selected and applied consistently and judgement andestimates have been made that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company as at 31st March 2021 and of theprofit of the Company for the year ended on that date;

• that proper and sufficient care has been taken for themaintenance of adequate accounting records in accordance with the provisions of theCompanies Act 2013 for safeguarding the assets of the Company and for preventing anddetecting fraud and other irregularities;

• That the annual financial statements have been prepared on agoing concern basis.

• That proper internal financial controls were in place and thatthe financial controls were adequate and were operating effectively.

• That systems to ensure compliance with the provisions of allapplicable laws were in place and were adequate and operating effectively.

• KEY MANAGERIAL PERSON:

Mr. Pravinchandra Gor Chairman & Managing Director (C&MD) Mr.Manish Joshi Chief Financial Officer (CFO) up to 31/03/2021 Mr. Hardik Bhavsar ChiefFinancial Officer (CFO) w.e.f 01/04/2021 and Mr. Parth Pandya Company Secretary CumCompliance Officer (CS) till 19/02/2021 While Mr. Mustafa Sibatra Company Secretary CumCompliance Officer (CS) W.e.f 20/02/2021 are the Key Managerial Personnel of the Company.

• ENVIRONMENT AND POLLUTION CONTROL:

The Company is well aware of its responsibility towards a better andclean environment. Our efforts in environment management go well beyond mere compliancewith statutory requirements. The Company has always maintained harmony with nature byadopting ecofriendly technologies and upgrading the same from time to time incidental toits growth programmers.

• VIGIL MECHANISM/WHISTLE BLOWER POLICY:

Your Company is committed to highest standards of ethical moral andlegal business conduct. Accordingly the Board of Directors has formulated a WhistleBlower Policy which is in compliance with the provisions of Section 177(10) of theCompanies Act 2013. The company has adopted Whistle Blower Policy to deal with anyinstance of fraud and mismanagement. The employees of the company are free to reportviolations of any laws rules regulations and

concerns about unethical conduct to the Audit Committee under thispolicy. The policy ensures that strict confidentiality is maintained whilst dealing withconcerns and also that no discrimination with any person for a genuinely raised concern.

• THE CHANGE IN NATURE OF BUSINESS:

There is no material changes in the company held during the year.

• PARTICULARS OF EMPLOYEES:

A statement containing the names and other particulars of employees inaccordance with the provisions of section 197(12) of the Companies Act 2013 read withrule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 is appended as "Annexure - D" to this report.

• ACKNOWLEDGMENT:

Your Directors are grateful to the Central Government the StateGovernment the Registrar of Companies Gujarat Securities and Exchange Board of Indiaand other Regulatory Authorities Bankers Financial Institutions Vendors and Customersfor their continued support cooperation and guidance. We would like to express our deepsense of appreciation for the hard work and efforts put in by the employees at all levels.We would like to thank our shareholders for their cooperation and assistance

.