TO THE MEMBERS
SUNSTAR REALTY DEVELOPMENT LIMITED
Your Directors are pleased to present the Tenth (10th] Annual Report together with theAudited Accounts of your Company for the Financial Year ended March 31 2018. Thesummarised financial performance of your Company is as follows:
| || ||(Rs. in Lakhs] |
|Particulars ||Year ended March 312018 ||Year ended March 312018 |
|Total Income ||187.89 ||430.05 |
|Less: Total Expenditure ||173.08 ||417.05 |
|Profit before Taxation ||14.81 ||13.00 |
|Less: Tax Expense ||3.85 ||4.21 |
|Profit for the period ||10.97 ||8.79 |
|Add: Brought forward from previous year ||173.57 ||164.78 |
|Surplus carried to Balance Sheet ||184.54 ||173.57 |
Some of the key highlights of your Company's performance during the year under revieware:
The profit before tax stood at Rs. 14.81 Lakhs against a profit of Rs. 13.00Lakhs in the last year.
The net profit after tax stood at Rs. 10.97 Lakhs against a profit of Rs. 8.79Lakhs in the last year.
As mandated by Ministry of Corporate Affairs the financial statements for the yearended on March 31 2018 has been prepared in accordance with the Indian AccountingStandards (IND AS] notified under Section 133 of the Companies Act 2013 read with theCompanies (Accounts] Rules 2014. The estimates and judgements relating to the FinancialStatements are made on a prudent basis so as to reflect in a true and fair manner theform and substance of transactions and reasonably present the Company's state of affairsprofits and cash flows for the year ended March 312018.
The Company discloses standalone unaudited financial results on a quarterly basiswhich are subjected to limited review and standalone audited financial results on anannual basis.
Your Directors has not recommended any Dividend for the Financial Year 2017-18.
AMOUNTS PROPOSED TO CARRY TO THE RESERVES
The Company has not transferred any amount out of the profit earned to reserve accountduring the year under review. The entire profit earned during the year under review isbeing carried forward under Profit & Loss Account.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN THE END OF THEFINANCIAL YEAR AND DATE OF REPORT
There have been no material changes and commitments affecting the financial positionof the company which have occurred between the end of the financial year of the company towhich the financial year relate and the date of this report.
SIGNIFICANT/MATERIAL ORDERS PASSED BY THE REGULATORS
There are no significant material orders passed by the Regulators or Courts orTribunals impacting the going concern status of your Company and its operations in future.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Your Company's vision mission and core values have laid the foundation for internalcontrols. On the administrative controls side your Company has a proper reportingstructure oversight committees and rigorous performance appraisal system to ensure checksand balances. On the financial controls side your Company has in place segregation ofduties and reporting mechanism to deter and detect misstatements in financial reporting.
Your Company's Internal Control System is commensurate with the nature of its businessand the size and complexity of its operations and ensures compliance with policies andprocedures. The Internal Control Systems are being constantly updated with new/revisedstandard operating procedures.
Your Company has a dedicated and independent Internal Audit team reporting directly tothe Audit Committee of the Board. The Directors have laid down internal financial controlsto be followed by the Company and such policies and procedures have been adopted by theCompany for ensuring the orderly and efficient conduct of its business includingadherence to Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting record andthe timely preparation of reliable financial information. The purpose scope authorityand responsibility of the Internal Audit team are approved by the Audit Committee.Internal Audit team influences and facilitates improvements in the control environment byconstantly evaluating the risk management and internal control systems.
Furthermore the Audit Committee of your Company evaluates and reviews the adequacy andeffectiveness of the internal control systems and suggests improvements. Significantdeviations are brought to the notice of the Audit Committee and corrective measures arerecommended for implementation. Based on the internal audit report process ownersundertake corrective action in their respective areas. All these measures help inmaintaining a healthy internal control environment.
The Company has a Code of Business Conduct for all employees and a clearly articulatedand internalized delegation of financial authority. These authority levels areperiodically reviewed by management and modifications if any are submitted to the AuditCommittee and Board for approval. The Company also takes prompt action on any violationsof the Code of Business Conduct by its employees.
A CEO/CFO Certificate signed by the Director of the Company confirms the existence andeffectiveness of internal controls and reiterates their responsibilities to reportdeficiencies to the Audit Committee. The Audit Committee also reviews the Risk managementframework periodically and ensures it is updated and relevant. During the year underreview the Internal Financial Control Audit was carried out by the Statutory Auditorsthe Report of which is forming part of this Annual Report.
During the year under review your Company has not accepted any deposit within themeaning of Sections 73 of the Companies Act 2013 read with the Companies (Acceptance ofDeposits) Rules 2014.
i. STATUTORY AUDITORS
In terms of the provisions of Section 139 of the Companies Act 2013 read with theprovisions of the Companies (Audit and Auditors) Rules 2014 as amended M/s SDA &Associates Chartered Accountants (FRN: 120759W) Mumbai was appointed as the Auditors ofthe Company for a consecutive period of 5 years from the conclusion of 9thAnnual General Meeting held in the year 2017 until conclusion of the 14thAnnual General Meeting of the Company scheduled to be held in the year 2022.
The Members may note that consequent to the changes made in the Companies Act 2013 andthe Companies [Audit and Auditors) Rules 2014 by the Ministry of Corporate Affairs [MCA)vide notification dated May 7 2018 the proviso to Section 139(1) of the Companies Act2013 read with explanation to sub-rule 7 of Rule 3 of the Companies (Audit and Auditors)Rules 2014 the requirement of ratification of appointment of Auditors by the Members atevery AGM has been done away with. Therefore the Company is not seeking any ratificationof appointment of M/s SDA & Associates Chartered Accountants (FRN: 120759W) Mumbaias the Statutory Auditors of the Company by the members at the ensuing Annual GeneralMeeting.
Your Company has received the certificate from M/s SDA & Associates CharteredAccountants (FRN: 120759W) Mumbai confirming their eligibility to continue as Auditorsof the Company in terms of the provisions of Section 141 of the Companies Act 2013 andthe Rules framed thereunder. They have also confirmed that they hold a valid certificateissued by the Peer Review Board of the ICAI as required under the provisions of Regulation33 of Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015.
There is no audit qualification reservation or adverse remark for the year underreview
ii. SECRETARIAL AUDITOR
In terms of Section 204 of the Companies Act 2013 read with the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hadappointed Ms. Kavita Raju Joshi Practicing Company Secretary as the Secretarial Auditorto conduct an audit of the Secretarial Records of the Company.
The Secretarial Audit Report for the financial year ended March 31 2018 is annexedherewith as [Annexure-A] to this report.
DETAILS OF SUBSIDIARY/ JOINT VENTURES/ASSOCIATE COMPANIES
The Company does not have any subsidiary/joint ventures/associate companies.
The Authorised Share Capital of the Company stands at Rs. 250000000/- divided into250000000 (Twenty Five Crores) Equity Shares of Re. 1/- each. At present the IssuedSubscribed and Paid Up Share Capital of your Company is Rs. 236230000/- divided into236230000 Equity Shares of Re. 1/- each fully paid-up.
MIGRATION FROM BSE SME PLATFORM TO MAIN BOARD OF BSE LIMITED
The Board of Directors of the Company considered the migration of the Company from BSESME Platform to Main Board of BSE Limited as per the guidelines specified by SEBI and asper the procedures laid down under Chapter XB of SEBI (ICDR) Regulations 2009. Theconsent of the shareholders of the Company was taken via Postal Ballot conducted by theCompany result of which was announced on May 02 2017. The resolutions were duly passedwith the requisite majority.
Thereafter the Company made an application to BSE Limited for listing of its equityshares on the Main Board of BSE Limited. BSE Limited vide its Notice dated August 07 2017approved the migration of the Company from SME Segment of BSE Limited to Main Board of BSELimited with effect from August 09 2017.
PROMOTERS' GROUP SHAREHOLDING
As on March 31 2018 the total shareholding of the Promoters' Group of your Company is18.77 % and none of the Promoter/Promoters' Group shareholding is under pledge. Further incompliance with the Regulation 31(2) of Securities and Exchange Board of India (ListingObligations and
Disclosure Requirements) Regulations 2015 the entire shareholding of promoter (s) andpromoter group is in dematerialised form.
EXTRACT OF ANNUAL RETURN
The extract of Annual Return is prepared in Form MGT-9 as per the provisions of theCompanies Act 2013 and Rule 12 of the Companies (Management and Administration) Rules2014 and the same is annexed as [Annexure-B] and forms an integral part of thisReport.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
a) Particulars of Conservation of Energy Technology Absorption
The provisions of Section 134(m) of the Act relating to conservation of energy andtechnology absorption do not apply to this Company as the Company has not carried out anymanufacturing activities.
b) Foreign Exchange Earnings and Outgo
During the year under review there was no foreign exchange outgo nor was any foreignexchange earned.
DIRECTOR'S & KEY MANAGERIAL PERSONNEL
Your Company has a duly constituted Board of Directors which are in compliance with therequirements of the Companies Act 2013 schedules thereto and rules framed there underand also in terms of the provisions of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 and provisions of the Articlesof Association of the Company.
a) Declaration by Independent Directors
All the Independent Directors have given a declaration that they meet the criteria ofIndependence as laid down under Section 149(6) of the Companies Act 2013 read with therules made there under and Regulation 16(1)(b) of Securities and Exchange Board of India(Listing Obligations and Disclosure Requirement) Regulations 2015.
b) Familiarisation Programme undertaken for Independent Directors
The Independent Directors are familiarised with the Company their roles rightsresponsibilities in the Company nature of the industry in which the Company operatesbusiness model of the Company etc. On appointment the Independent Director is issued aLetter of Appointment setting out in detail the terms of appointment dutiesresponsibilities and expected time commitments. The Director is also explained in detailthe various compliances required from him/her as a Director under the various provisionsof the Companies Act 2013 Securities and Exchange Board of India (Listing Obligationsand Disclosure Requirement) Regulations 2015. The details of familiarisation programmeare available on the website of the Company viz. www.sunstarrealtors.com.
c) Non-Independent Director
In accordance with the provisions of Section 152 of the Companies Act 2013 Mr. NitinKishor Boricha (DIN: 05245737) Director is liable to retire by rotation and beingeligible offers himself for reappointment. The Board recommends his appointment with aview to avail his valuable advices and wise counsel.
A brief profile of the above Director seeking re-appointment required under Securitiesand Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015 will be provided in the Notice calling Annual General Meeting of theCompany.
None of the Directors of the Company are disqualified for being appointed as Directorsas specified in Section 164 (2) of the Companies Act 2013 and rule 14(1) of the Companies(Appointment and Qualification of Directors) Rules 2014.
d) Changes in Directorship/Key Managerial Personnel during the year
Mr. Anil Kumar (DIN: 07009528) and Mr. Haider Mujtaba Zaidi (DIN: 07861604) wereappointed as Directors of the Company with effect from February 13 2018 by the Board ofDirectors of the Company.
Mr. Yogesh Kumar Rawal (DIN: 06776726) resigned from the directorship of the Companywith effect from February 132018.
Ms. Sonal Jayprakash Bhatt (DIN: 03157849) resigned from the directorship of theCompany with effect from March 27 2018. The Board places on record their appreciation forthe assistance and guidance provided by them during their tenure as Directors of theCompany.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
A total of Nine (9) Meetings of the Board of Directors of your Company were held duringthe year under review. The maximum interval between two meetings did not exceed 120 daysas prescribed in the Companies Act 2013 and in the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations 2015. Details of allBoard/Committee Meetings are given in the Corporate Governance Report.
COMMITTEES OF THE BOARD
The Company has constituted/re-constituted various Board level committees in accordancewith the requirements of Companies Act 2013. Details of all the Committees along withcomposition and meetings held during the year under review are provided in the CorporateGovernance Report.
The composition and terms of reference of the Audit Committee has been furnished in theCorporate Governance Report. There have been no instances where the Board has not acceptedthe recommendations of the Audit Committee.
NOMINATION AND REMUNERATION COMMITTEE
The composition and terms of reference of the Nomination and Remuneration Committee hasbeen furnished in the Corporate Governance Report.
STAKEHOLDERS RELATIONSHIP COMMITTEE
The composition and terms of reference of the Stakeholders Relationship Committee hasbeen furnished in the Corporate Governance Report.
DIRECTORS APPOINTMENT & REMUNERATION POLICY
The Board of Directors has framed a policy which lays down a framework in relation toremuneration of Directors Key Managerial Personnel and Senior Management of the Company.This policy also lays down criteria for selection and appointment of Board Members. Thedetails of this policy are explained and annexed as [Annexure- C] and forms anintegral part of this Report.
WHISTLE BLOWER POLICY/VIGIL MECHANISM
Your Company has formulated a codified Whistle Blower Policy incorporating theprovisions relating to Vigil Mechanism in terms of Section 177 of the Companies Act 2013and Regulation 22 of Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015 in order to encourage Directors and Employeesof your Company to escalate to the level of the Audit Committee any issue of concernsimpacting and compromising with the interest of your Company and its stakeholders in anyway. Your Company is committed to adhere to highest possible standards of ethical moraland legal business conduct and to open communication and to provide necessary safeguardsfor protection of employees from reprisals or victimisation for whistle blowing in goodfaith. The said Policy is available on your Company's website www.sunstarrealtors.com.
PREVENTION PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT AT WORKPLACE
Your Company is committed to provide and promote a safe healthy and congenialatmosphere irrespective of gender caste creed or social class of the employees. YourCompany in its endeavour to provide a safe and healthy work environment for all itsemployees has developed a policy to ensure zero tolerance towards verbal physicalpsychological conduct of a sexual nature by any employee or stakeholder that directly orindirectly harasses disrupts or interferes with another employee's work performance orcreates an intimidating offensive or hostile environment such that each employee canrealize his / her maximum potential.
Your Company has put in place a 'Policy on Prevention of Sexual Harassment' as per TheSexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013.The Policy is meant to sensitize the employees about their fundamental right to have safeand healthy environment at workplace. As per the Policy any employee may report his / hercomplaint to the Audit Committee and to the Board of Directors of the Company. The saidPolicy is available on your Company's website www.sunstarrealtors.com.
Your Company affirms that during the year under review adequate access was provided tocomplainant if any who wished to register a complaint under the policy.
During the year your Company has not received any complaint on sexual harassment.
PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS
The Company has complied with Section 186 of the Companies Act 2013. Further theCompany has not given any guarantee or provided security during the year under review.
RELATED PARTY TRANSACTIONS
A Related Party Policy has been devised by the Board of Directors for determining themateriality of transactions with related parties and dealings with them. The said Policymay be referred to at the website of the Company viz. www.sunstarrealtors.com.
There are no contracts or arrangements entered into by the Company during the yearunder review with Related Parties referred to in Section 188(1) of the Companies Act2013. There are no materially significant related party transactions made by the Companywith promoters directors key managerial personnel or other designated person which mayhave a potential conflict with the interest of the Company at large.
Necessary disclosures required under the Accounting Standards (AS-18) have been made inthe Notes to Financial Statements.
DISCLOSURE RELATING TO REMUNERATION OF DIRECTORS KEY MANAGERIAL PERSONNEL ANDEMPLOYEES:
A statement containing the details of the Remuneration of Directors Key ManagerialPersonnel (KMP) and Employees as required under Section 197(12) of the Companies Act 2013read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel)Rules 2014 is given as [Annexure-D] forming part of this Report.
The Company has no employee drawing a remuneration of Rs. 6000000/- (Rupees SixtyLakhs) per annum or part thereof in terms of the provisions of Section 197(12) of theCompanies Act 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014.
CORPORATE GOVERNANCE REPORT
Your Company has always practised sound corporate governance and takes necessaryactions at appropriate times for enhancing and meeting stakeholders' expectations whilecontinuing to comply with the mandatory provisions of Corporate Governance.
As per Regulation 34(3) read with Schedule V of the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations 2015 a separatesection on corporate governance practices followed by the Company together with acertificate confirming compliance is given as [Annexure-E] and forms an integralpart of this Report.
MANAGEMENT DISCUSSION & ANALYSIS
The Management Discussion and Analysis Report on the operations of the Company asrequired under Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015 is provided in a separate section as [Annexure-F]and forms an integral part of this Report.
Risk management is embedded in your Company's operating framework. Your Companybelieves that managing risks helps in maximizing returns. The Company's approach toaddressing business risks is comprehensive and includes periodic review of such risks anda framework for mitigating controls and reporting mechanism of such risks. The RiskManagement framework is reviewed periodically by the Board and the Audit Committee. TheAudit Committee is responsible for reviewing the risk management plan and ensuring itseffectiveness. The major risks identified by the businesses and functions aresystematically addressed through mitigating actions on a continual basis.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act 2013 (including any statutorymodification(s) or reenactments) for the time being in force) the Directors of yourCompany confirm that:
i. in the preparation of the Annual Accounts for the financial year ended March 312018 the applicable Accounting Standards and Schedule III of the Companies Act 2013(including any statutory modification(s) or re-enactment(s) for the time being in force)have been followed and there are no material departures from the same;
ii. the Directors have 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 as at March 31 2018 and of the profit& loss of the Company for the Financial Year March 312018;
iii. the Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 2013(including any statutory modification (s) or re-enactment(s) for the time being in force)for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities;
iv. the annual accounts have been prepared on a 'going concern' basis;
v. proper internal financial controls laid down by the Directors were followed by yourCompany and that such internal financial controls are adequate and operating effectively;and
vi. proper systems to ensure compliance with the provisions of all applicable laws werein place and that such systems were adequate and operating effectively.
Your Directors wish to place on record their appreciation for the contribution made bythe employees at all levels. Your Directors also wish to thank its customers dealersagents suppliers investors and bankers for their continued support and faith reposed inthe Company.
| ||For & on behalf of the Board |
| ||Nitin Kishor Boricha |
|Place: Mumbai ||Whole Time Director |
|Date: May 302018 ||DIN: 05245737 |
Disclosure in Directors' Report pursuant to Section 197(12) of the Companies Act 2013read with Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014
(i) The ratio of the remuneration of each director to the median remuneration of theemployees of the Company for the financial year:
|SI. No. ||Name of the Director ||Ratio of the remuneration to the median remuneration of the employees |
|1. ||Mr. Nitin Kishor Boricha (Whole Time Director) ||2.86 |
|2. ||Mr. Vijayraman Kambainallur (Independent Director) ||- |
|3. ||Mr. Anil Kumar (Non-Executive Director) ||- |
|4. ||Mr. Haider Mujtaba Zaidi (Independent Director) ||- |
|5. ||Mr. Yogesh Kumar Rawal (Independent Director) ||- |
|6. ||Ms. Sonal Jayprakash Bhatt (Independent Director) ||- |
1 Mr. Anil Kumar (DIN: 07009528) and Mr. Haider Mujtaba Zaidi (DIN: 07861604) wereappointed as Directors of the Company by the Board with effect from February 13 2018.
2. Mr. Yogesh Kumar Rawal (DIN: 06776726) resigned from the directorship of the Companywith effect from February 13 2018.
3. Ms. Sonal Jayprakash Bhatt (DIN: 03157849) resigned from the directorship of theCompany with effect from March 27 2018.
(ii) The percentage increase in remuneration of each Director Chief Financial OfficerChief Executive Officer Company Secretary or Manager in the financial year:
|SI. No. ||Name of the Director ||Ratio of the remuneration to the median remuneration of the employees |
|1. ||Mr. Nitin Kishor Boricha (Whole Time Director) ||NIL |
|2. ||Mr. Vijayraman Kambainallur (Independent Director) ||NIL |
|3. ||Mr. Anil Kumar (Non-Executive Director) ||NIL |
|4. ||Mr. Haider Mujtaba Zaidi (Independent Director) ||NIL |
|5. ||Mr. Yogesh Kumar Rawal (Independent Director) ||NIL |
|6. ||Ms. Sonal Jayprakash Bhatt (Independent Director) ||NIL |
|7. ||Prashant Agarwal (Company Secretary ||NIL |
(iii) The percentage increase in the median remuneration of employees in the financialyear
During FY 2017-18 the percentage change in the median remuneration of employees ascompared to previous year was approximately 26.29%.
(iv) The number of permanent employees on the rolls of the Company
There were 9 employees as on March 31 2018.
(v) Average percentage increase already made in the salaries of employees other thanthe managerial personnel in the last financial year and its comparison with the percentageincrease in the managerial remuneration and justification thereof and point out if thereany exceptional circumstances for increase in the managerial remuneration:
There has been no increase in the average salaries of the employees of the Companyneither any increase in the average managerial remuneration during the Financial Year2017-18.
(vi) Affirmation that the remuneration is as per the remuneration policy of theCompany:
Remuneration paid during the year ended March 31 2018 is as per the RemunerationPolicy of the Company.