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SBC Exports Ltd.

BSE: 542725 Sector: Others
NSE: N.A. ISIN Code: INE04AK01010
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NSE 05:30 | 01 Jan SBC Exports Ltd
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VOLUME 3000
52-Week high 46.00
52-Week low 23.10
P/E 34.08
Mkt Cap.(Rs cr) 45
Buy Price 42.50
Buy Qty 3000.00
Sell Price 42.70
Sell Qty 3000.00
OPEN 42.60
CLOSE 42.75
VOLUME 3000
52-Week high 46.00
52-Week low 23.10
P/E 34.08
Mkt Cap.(Rs cr) 45
Buy Price 42.50
Buy Qty 3000.00
Sell Price 42.70
Sell Qty 3000.00

SBC Exports Ltd. (SBCEXPORTS) - Director Report

Company director report

Dear Members

Your Directors have pleasure in presenting this 8th Annual report on theaffairs of the Company together with the Audited Statement of Accounts for the year endedon 31st March 2019.

1. FINANCIAL SUMMARY (STANDALONE):-

The Company's financial performance for the year under review along with previousyear's figures is given hereunder:-

PARTICULARS 31.03.2019 31.03.2018
(In Rs.) (In Rs.)
Revenue from Operations 800010363/- 639945469/-
Other Income 4137463/- 2150351/-
Total Revenue 804147826/- 642095820/-
Total Expenditure 785613913/- 629386147/-
Profit/Loss before taxation 18533913/- 12709673/-
Less: Tax Expenses 5702434/- 4593529/-
Profit /loss for the year 13349591/- 8452448/-

2. OPERATIONS:-

The Company has reported total revenue of 80.00/- Crores for the current year against63.99/- Crores for the previous year. The Net profit for the year under review amounted to1.33/- crores in the current year as compared to Profit incurred in last year amounting to84.52/- Lacs.

3. TRANSFER OF RESERVES:-

An amount of 1.33 Crores of profit has been transferred to Reserve & SurplusAccount.

4. DIVIDEND

Although the Company had earned a good profits as compared to previous year but theBoard of Directors of your company do not recommend any dividend on equity shares for thefinancial year under review rather they recommended reinvest the earnings in the business.

5. SUBSIDIARIES JOINT VENTURES AND ASSOCIATE COMPANIES ALONG WITH THEIR PERFORMANCEAND FINANCIAL POSITION

The Company does not have any Subsidiary Joint venture or Associate Company.

6. MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION OF THE COMPANY:-

There have been no other material changes and commitments except the listing of thesecurities of the Company on the BSE SME Platform 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.

7. CHANGE IN SHARE CAPITAL

Authorised Share capital

During Financial Year 2018-2019 the Company had increased its Authorised Capital fromRs. 1000000/- comprising of 100000 equity shares of Rs. 10/- each to Rs.111000000/- comprising of 11000000/-equity shares of Rs. 10/- each.

Paid up Share Capital

During the year the Company had increased its Paid up share Capital from Rs.1000000/- comprising of 100000 equity shares of Rs. 10/- each to Rs. 76000000/-comprising of 7600000/-equity shares of Rs. 10/- each by way of Right Issue of 7500000Equity Shares.

Initial Public Offering (IPO)

Further the Company had entered into the Capital Market with its Initial PublicOffering (IPO) of 2982000 Equity Shares of a Face Value of Rs. 10/- each for cash at aprice of Rs. 22/- per equity share (including a share premium of Rs. 12 per equity share)aggregating to Rs. 656.04 lakhs ("THE ISSUE).

The Issue opened for Subscription on 24th June 2019 and closed on 26thJune 2019 in accordance with SEBI (Issue of Capital and Disclosure Requirements)Regulations 2018. Your Directors are pleased to inform you that the IPO of the Companywas successfully subscribed. The response of the investors was really very encouraging.

The Securities of the Company have been Listed and admitted to dealings on the BSE SMEPlatform of the Bombay Stock Exchange (BSE) w.e.f. 4th July 2019 having thesymbol of "SBC"

At present the paid up share capital of your Company is Rs. 105820000/- dividinginto 10582000 Equity Shares of Rs. 10 each.

8. DEPOSITORY SYSTEM

As the Members are aware your Company's shares are tradeable compulsorily inelectronic form and your Company has established connectivity with both NationalSecurities Depository Limited (NSDL) and Central Depository Services (India) Limited(CDSL). In view of the numerous advantages offered by the depository system the membersare requested to avail the facility of Dematerialization of the Company's shares on NSDL& CDSL. The ISIN allotted to the Company's Equity shares is INE04AK01010.

9. CHANGE IN THE NATURE OF BUSINESS:-

There is no change in the nature of the business of the company in the review period.

10. 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 there has been no any such significant and material orderspassed by the regulators or courts or tribunals impacting the going concern status andcompany's operations in future.

11. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

As required under Regulation 34 of Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 ("ListingRegulations") and Circular/ Notifications/ Directions issued by Reserve Bank of Indiafrom time to time the Management Discussion and Analysis of the financial condition andresult of consolidated operations of the Company for the year under review is presented ina separate section forming part of the Annual Report as Annexure-I.

12. CORPORATE GOVERNANCE

We wish to inform the members that in term of Regulation 15 (2) (b) of the SEBI(Listing Obligations & Disclosure Requirements) Regulations 2015 CorporateGovernance is not applicable to our Company as we have listed our securities on the SMEExchange. However your Company has been practicing the principles of good corporategovernance as it is committed to maintain the highest standards of Corporate Governance.

13. DEPOSITS

During the year the Company has neither accepted any deposits from the public nordoes it have any scheme to invite any such deposits.

14. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES

All contracts / arrangements / transactions entered by the Company during the financialyear with related parties were on an arm's length basis and in the ordinary course ofbusiness under the Companies Act 2013 and not material under the Listing Regulations andhence did not require members' prior approval under the Companies Act 2013 and the ListingRegulations.

The particulars of contracts or arrangements with related parties referred to insub-section (1) of section 188 is attached as Annexure-II in the Form AOC-2.

15. AUDITORS AND AUDITORS' REPORT

M/S. R. N. K. A. & Co. Chartered Accountants (FRN 021745N) who were appointed asthe Statutory Auditors of the Company in the 4th Annual General Meeting of the Companyheld on 30th September 2015 to hold their office from the conclusion of the4th Annual General Meeting till the conclusion of 8th Annual General Meeting (up to theFinancial Year ending 2018-19).

It may be noted that the current statutory auditor has completed his two consecutiveterms and they are not eligible for re-appointment.

Accordingly The Board is looking to appoint new Statutory Auditor of your Companywhich shall hold office for five (5) years.

Further the Auditors' Report and Notes to the Accounts referred to in the Auditors'Report are self-explanatory and therefore does not call for any further comments andexplanations.

The observations of the Statutory Auditors when read together with the relevant notesto the accounts and accounting policies are self-explanatory and do not calls for anyfurther comment.

16. SECRETARIAL AUDIT REPORT

Pursuant to the provisions of Section 204 of Companies Act 2013 and Companies(Appointment and Remuneration of Managerial Personnel Rules) 2014 Company had appointedM/s. Kumar Mandal and Associates Company Secretaries in Practice to undertake theSecretarial Audit of the Company for the financial year 2018-19. The Secretarial AuditReport is attached as Annexure-III

17. BOARD MEETINGS

During the year under review the Board met 9 (Nine) Times on May 26 2018 July 202018 August 30 2018 September 29 2018 November 16 2018 December 10 2018December 15 2018 January 28 2019 and March 11 2019. The maximum interval between anytwo meetings did not exceed 120 days.

18. GENERAL MEETINGS

During the year under review there were 5 (Five) General Meetings held includingAnnual General Meeting on August 18 2018 September 29 2018 December 10 2018 January02 2019 and March 11 2019.

19. COMMITTEES OF BOARD

There are four Committees constituted as per Companies Act 2013 which are as follows;

a) Audit Committee;

b) Nomination and Remuneration Committee;

c) Stakeholder's Relationship Committee.

d) Risk Management Committee

A. Audit Committee

The Board had constituted qualified Audit Committee pursuant to provision of CompaniesAct 2013 as well as Regulation of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015. The constitution of said Committee was approved by a meeting of theBoard of Directors held on December 10 2018. The Audit Committee confirms to extant SEBI(Listing Obligations and Disclosures Requirements) Regulations 2015 in all respectsconcerning its constitution meetings functioning role and powers mandatory review ofrequired information approved related party transaction & accounting treatment formajor items. It also fulfils the requirements as set out in the Companies Act 2013.During the financial year the Committee met One (01) time; on December 10 2018. The AuditCommittee comprises three directors composition is as below:

Name of Director Designation Nature of Directorship
Dheerendra Kumar Gupta Member Managing Director- Executive
Manish Gupta Chairman Independent Director- Non- Executive
Amit Jaiswal Member Independent Director- Non- Executive

Role of the audit committee:

1. Overseeing the Company's financial reporting process and the disclosure of itsfinancial information to ensure that the financial statements are correct sufficient andcredible.

2. Recommending to the Board the appointment re-appointment and if required thereplacement or removal of the statutory auditor and the fixation of audit fees.

3. Approval of payment to statutory auditors for any other services rendered by thestatutory auditors.

4. Reviewing with the management the annual financial statements before submission tothe board for approval with particular reference to:

a) Matters required being included in the Directors Responsibility Statement to beincluded in the Board's report in terms of clause (c) of sub section 3 of section 134 ofthe Companies Act 2013.

b) Changes if any in accounting policies and practices and reasons for the same.

c) Major accounting entries involving estimates based on the exercise of judgment bymanagement.

d) Significant adjustments made in the financial statements arising out of auditfindings.

e) Compliance with listing and other legal requirements relating to financialstatements.

f) Disclosure of any related party transactions.

g) Modified opinion(s) in the audit report.

5. Reviewing with the management the half yearly and annual financial statementsbefore submission to the board for approval.

6. Reviewing with the management the statement of uses / application of funds raisedthrough an issue (public issue rights issue preferential issue etc.) the statement offunds utilized for purposes other than those stated in the offerdocument/prospectus/notice and the report submitted by the monitoring agency monitoringthe utilization of proceeds of a public or rights issue and making appropriaterecommendations to the Board to take up steps in this matter.

7. Reviewing and monitoring the auditor's independence and performance andeffectiveness of audit process.

8. Reviewing the adequacy of internal audit function if any including the structureof the internal audit department staffing and seniority of the official heading thedepartment reporting structure coverage and frequency of internal audit.

9. Discussion with internal auditors on any significant findings and follow up thereon.

10. Reviewing the findings of any internal investigations by the internal auditors intomatters where there is suspected fraud or irregularity or a failure of internal controlsystems of a material nature and reporting the matter to the board.

11. Discussion with statutory auditors before the audit commences about the nature andscope of audit as well as post-audit discussion to ascertain any area of concern.

12. to look into the reasons for substantial defaults in the payment to the depositorsdebenture holders shareholders (in case of non-payment of declared dividends) andcreditors.

13. To review the functioning of the Whistle Blower mechanism in case the same isexisting.

14. Approval of appointment of CFO (i.e. the whole-time Finance Director or any otherperson heading the finance function or discharging that function) after assessing thequalifications experience & background etc. of the candidate.

15. To overview the Vigil Mechanism of the Company and took appropriate actions in caseof repeated frivolous complaints against any Director or Employee.

16. Reviewing with the management performance of statutory and internal auditorsadequacy of the internal control systems.

17. Scrutiny of inter-corporate loans and investments.

18. Valuation of Undertakings or assets of the company wherever it is necessary.

19. Evaluation of internal financial controls and risk management systems.

20. Reviewing with the management performance of statutory and internal auditorsadequacy of the internal control systems.

21. Monitoring the end use of funds raised through public offers and related matters.

The Audit Committee shall mandatorily review the following information:-

1. Management Discussion and Analysis of financial condition and results of operations.

2. Statement of significant related party transactions (as defined by the AuditCommittee) submitted by management.

3. Management letters / letters of internal control weaknesses issued by the statutoryauditors.

4. Internal audit reports relating to internal control weaknesses.

5. The appointment removal and terms of remuneration of the chief internal auditorshall be subject to review by the audit committee.

6. Statement of deviations:

a) Half yearly statement of deviation(s) including report of monitoring agency ifapplicable submitted to stock exchange(s) in terms of Regulation 32(1).

b) Annual statement of funds utilized for purposes other than those stated in the offerdocument/prospectus/notice in terms of Regulation 32(7).

Powers of the Audit Committee:

Investigating any activity within its terms of reference; Seeking information from anyemployee; Obtaining outside legal or other professional advice; and

Securing attendance of outsiders with relevant expertise if it considers necessary.

B. Nomination and Remuneration Committee

The nominated and remuneration policy is being formulated in compliance with section178 of the Companies Act 2013 and rules made there under and Regulations of SEBI (ListingObligation and Disclosure Requirements) regulations 2015.

The constitution of said Committee was approved by a meeting of the Board of Directorsheld on December 10 2018.

During the year Committee met on December 10 2018.

Composition of Nomination and Remuneration Committee is as under;

Name of Director Designation Nature of Directorship
Manish Gupta Member Independent Director- Non- Executive
Manupriya Mishra Chairperson Independent Director- Non- Executive
Amit Jaiswal Member Independent Director- Non- Executive

The terms of reference of the Nomination and Remuneration Committee are:

To recommend to the Board the remuneration packages of the Company's Managing/JointManaging/Deputy Managing/Whole time / Executive Directors including all elements ofremuneration package (i.e. salary benefits bonuses perquisites commission incentivesstock options pension retirement benefits details of fixed component and performancelinked incentives along with the performance criteria service contracts notice periodseverance fees etc.);

To be authorized at its duly constituted meeting to determine on behalf the Board ofDirectors and on b half of the shareholders with agreed terms of reference the Company'spolicy on specific remuneration packages for Company's Managing/Joint Managing/ DeputyManaging/ Whole time/Executive Directors including pension rights and any compensationpayment;

Such other matters as may from time to time be required by any statutory contractualor other regulatory requirements to be attended to by such committee.

C. Stakeholders Relationship Committee:

Pursuant to Provisions of Companies Act 2013 and rules made there under and Regulation20 of SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015; CompanyConstituted Shareholders Relationship Committee and Decided Role of said Committee.

The constitution of said Committee was approved by a meeting of the Board of Directorsheld on December 10 2018.

During the year Committee met on December 10 2018.

Composition of Shareholders Relationship Committee is as under;

Name of Director Designation Nature of Directorship
Dheerendra Kumar Gupta Member Managing Director- Executive
Manish Gupta Member Independent Director- Non- Executive
Amit Jaiswal Chairman Independent Director- Non- Executive

The Stakeholder Relationships Committee shall oversee all matters pertaining toinvestors of our Company. The terms of reference of the Investor Grievance Committeeinclude the following:

Redressal of shareholders' /investors' complaints;

Reviewing on a periodic basis the Approval of transfer or transmission of sharesdebentures or any other securities made by the Registrar and Share Transfer Agent;

Issue of duplicate certificates and new certificates on split/consolidation/renewal;Non-receipt of declared dividends balance sheets of the Company; and

Carrying out any other function as prescribed under the SEBI (Listing Obligation andDisclosure Requirements) Regulations 2015.

D. Risk Management Committee:

Pursuant to Provisions of Companies Act 2013 and rules made there under the CompanyConstituted a Risk Management Committee and Decided Role of said Committee.

The constitution of said Committee was approved by a meeting of the Board of Directorsheld on December 10 2018.

During the year Committee met on December 10 2018. Composition of Risk ManagementCommittee is as under;

Name of Director Designation Nature of Directorship
Dheerendra Kumar Gupta Member Managing Director- Executive
Manish Gupta Member Independent Director- Non- Executive
Amit Jaiswal Chairman Independent Director- Non- Executive

20. SEPARATE MEETING OF INDEPENDENT DIRECTORS:

Pursuant to code of Independent Directors under the Companies Act 2013 and rules madethere under a separate meeting of the Independent Directors of the Company was held onMarch 20 2019 to review the performance of Non-independent directors (including theChairman) and the Board as a whole. The Independent directors also reviewed the qualitycontent and timeliness of the flow of information between the Management and the Board andits committees which is necessary to effectively and reasonably perform and dischargetheir duties.

21. CHANGES IN THE COMPOSITION OF THE BOARD OF DIRECTORS AND KMPs

During the year under review following changes took place on the Board:

• Appointment of Mr. Hariom Sharma and Mr. Mukesh Bhatt as Company Secretary andChief Financial Officer respectively w.e.f. 16th November 2018.

• Appointment of Mr. Deepika Gupta as Whole Time Director and Mr. Dheerendra KumarGupta as Managing Director of the Company w.e.f. 10th December 2018.

• Appointment of Mr. Akshat Gupta Mr. Vinod Kumar Mrs. Manupriya Mishra Mr.Amit Jaiswal and Mr. Manish Gupta as Independent Directors of the Company.

• Cessation of Mr. Amit Kumar Agarwal and Mr. Parveen from the directorship w.e.f.11th March 2019.

22. RETIREMENT OF DIRECTOR BY ROTATION:

Pursuant to the provisions of Section 152 of the Companies Act 2013 Mrs. DeepikaGupta (DIN: 03319765) Whole Time Director is liable to retire by rotation at theensuing Annual General Meeting and being eligible he has offered himself forre-appointment. Accordingly the proposal for his re-appointment has been included in theNotice convening the Annual General Meeting of the Company.

A brief resume of Mrs. Deepika Gupta seeking re-appointment is enclosed consistingnature of expertise in specific functional areas and name of companies in which they holddirectorship and/or membership/ chairmanships of committees of the respective Boardsshareholding and relationship between directorship inter-se as stipulated under Reg. 36(3)of the SEBI (LODR) Regulations 2015 are given in the section of notice of AGM formingpart of the Annual Report.

23. BOARD'S INDEPENDENCE

Definition of ‘Independence' of Directors is in conformity with Section 149(6) ofthe Companies Act 2013 and the requirements of Listing Regulations. Based on theconfirmation / disclosures received from the Directors and on evaluation of therelationships disclosed the following Non-Executive Directors are Independent in terms ofSection 149(6) of the Companies Act 2013 and the requirements of Listing Regulations :-

1. Mr. Akshat Gupta

2. Mr. Vinod Kumar

3. Mrs. Manupriya Mishra

4. Mr. Amit Jaiswal and

5. Mr. Manish Gupta

The independent directors have submitted the declaration of independence as requiredunder section 149(7) of the Companies Act 2013 stating that they meet the criteria ofindependence as provided in section 149(6) of the Companies Act 2013.

24. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirements of Section 134(5) of the Companies Act 2013 with respectto Directors' Responsibility Statement it is hereby stated that:

(a) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures; (b) theDirectors have selected such accounting policies and applied them consistently and madejudgements and estimates that are reasonable and prudent so as to give a true and fairview of the state of affairs of the company at the end of the financial year and of theprofit and loss of the company for that period; (c) the Directors have taken proper andsufficient care for the maintenance of adequate accounting records in accordance with theprovisions of this Act for safeguarding the assets of the company and for preventing anddetecting fraud and other irregularities; (d) the Directors have prepared the annualaccounts on a going concern basis; (e) the Directors have laid down internal financialcontrols to be followed by the company and that such internal financial controls areadequate and were operating effectively; and (f) the Directors have devised proper systemsto ensure compliance with the provisions of all applicable laws and that such systems wereadequate and operating effectively.

25. BOARD EVALUATION

The Board of Directors has carried out an annual evaluation of its own performanceboard committees and individual directors pursuant to the provisions of the Act and thecorporate governance requirements as prescribed by the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations 2015 (‘SEBIListing Regulations').

The performance of the committees was evaluated by the board after seeking inputs fromthe committee members on the basis of criteria such as the composition of committeeseffectiveness of committee meetings etc.

The evaluation framework for assessing the performance of Directors comprises of thefollowing key areas:

• Expertise;

• Objectivity and Independence;

• Guidance and support in context of life stage of the Company;

• Understanding of the Company's business;

• Understanding and commitment to duties and responsibilities;

• Willingness to devote the time needed for effective contribution to Company;

• Participation in discussions in effective and constructive manner;

• Responsiveness in approach;

• Ability to encourage and motivate the Management for continued performance andsuccess.

The evaluation involves Self-Evaluation by the Board Member and subsequent assessmentby the Board of Directors. A member of the Board will not participate in the discussion ofhis/her evaluation. Accordingly a process of evaluation was followed by the Board for itsown performance and that of its Committees and individual Directors and also the necessaryevaluation was carried out by Nomination and Remuneration Committee and IndependentDirector at their respective meetings held for the purpose.

26. PARTICULARS OF EMPLOYEES

There were no employee in receipt of remuneration of Rs. 1.02 crores Rupees per annumif employed for whole of the year or Rs. 8.50 Lakhs per month if employed for part of theyear whose particulars are required to be given under Rule 5(2) and (3) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014.

27. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an Internal Control System which is commensurate with the size scaleand complexity of its operations. To maintain its objectivity and independence theInternal Audit reports to the Chairman of the Audit Committee of the Board and to theManaging Director. The Internal Audit Department reviews the effectiveness and efficiencyof these systems and procedures to ensure that all assets are protected against loss andthat the financial and operational information is accurate and complete in all respects.Company policies guidelines and procedures provide for adequate checks and balances andare meant to ensure that all transactions are authorized recorded and reported correctly.

28. WHISTLE BLOWER POLICY /VIGIL MECHANISM

In compliance with the requirement of the Companies Act 2013 and SEBI ListingRegulations the Company has established a Whistle Blower Policy / Vigil Mechanism Policythat enables the Directors and Employees to report genuine concerns. The vigil mechanismprovides for (a) adequate safeguards against victimization of persons who use the vigilmechanism; and (b) direct access to the Chairperson of the Audit Committee of the Board ofDirectors of the Company in appropriate or exceptional cases.

No complaint of this nature has been received by the Audit Committee during the yearunder review.

29. EXTRACT OF ANNUAL RETURN:-

The Company is maintaining a website where the extract of Annual Return can beaccessible. The Link of the website is www.sbcexportslimited.com.

30. DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SECTION 143 (12) OTHER THANTHOSE WHICH ARE REPORTABLE TO THE CENTRAL GEOVERNMENT:-

There were no frauds as reported by the Statutory Auditors under sub-section 12 ofSection 143 of the Companies Act 2013 along with Rules made there-under other than thosewhich are reportable to the Central Government.

31. CORPORATE SOCIAL RESPONSIBILITY

As per the provisions of section and 135 of the Companies Act 2013 Corporate SocialResponsibility (CSR) is not applicable to the Company during the year under review sothere are no disclosures required under section134 (3)(o) of the Companies Act 2013.

32. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITION AND REDRESSAL) ACT 2013

The provisions/requirement of Sexual Harassment of Women at Workplace (PreventionProhibition & Redressal) Act 2013 (Acts) and Rules made thereunder are being followedby the Company and the company is providing the proper environment of working to allemployees and has proper internal control Mechanism for prevention prohibition andredressal of sexual harassment at workplace. The Company has complied with the provisionsof constitution of Internal Complaints Committee under the Act. There were nocases/complaints filed under this Act during the year.

33. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THECOMPANIES ACT 2013

The particulars of loans given or guarantees given or investments made or securitiesprovided are given in notes to financial statements.

34. STATEMENT INDICATING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT

The Company has in place a mechanism to identify assess monitor and mitigate variousrisks to Key business objectives. Major risks identified by the Board and systematicallysteps taken to mitigate on a continuous basis. The Company's internal control system iscommensurate with the nature of its business and the size and complexity of operations

35. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS ANDOUTGO

Conservation of energy: Not applicable Technology absorption: Not applicable

Foreign exchange earnings and outgo: There was no foreign exchange inflow or Outflowduring the year.

36. ACKNOWLEDGEMENTS

Your Board of Directors would like to place on record their sincere appreciation forthe wholehearted support and contributions made by all the employees of the Company aswell as customers suppliers consultants bankers and other authorities. The Directorsalso thank the Central and State Government of India and concerned Government Departments/Agencies for their cooperation. The directors appreciate and value the contributions madeby every member of the company.

For SBC EXPORTS LIMITED
DHEERENDRA KUMAR GUPTA DEEPIKA GUPTA
Director Director
DIN: 03321016 DIN: 03319765
Date: 16.09.2019
Place: Mirzapur

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