Aditya Forge Director Discussions


Dear Members,

ADITYA FORGE LIMITED

415 GIDC, RAMANGANDI, POR N H 8 VADODARA GJ IN

Your Directors have pleasure in submitting their Annual report on the business and operations of the Company along with the Audited Balance Sheet and Profit & Loss Accounts for the year ended March 31, 2020.

1. FINANCIAL RESULTS:

The Companys financial performance, for the year ended March 31, 2019:

PARTICULARS YEAR ENDED 31st MARCH 2021. YEAR ENDED 31st MARCH 2020.
Turnover 94227400 180498683
Other Income 2557356 7654997
Less: Expenditure 114055883 203597038
Profit Before Tax (17271127) (15443359)
Less: Current Tax 0.00 0.00
Deferred Tax 639497 1053784
Income Tax earlier years 0 0
Profit /Loss For The Year (16631630) (14389575)
Add: Balance in Profit and Loss Account 0.00 0.00
Sub Total (16631630) (14389575)
Less: Appropriation 0.00 0.00
Adjustment relating to Fixed Assets 0.00 0.00
Transferred to General Reserve (16631630) (14389575)
Closing Balance 0.00 0.00

2. STATE OF AFFAIRS:

The Company is engaged in the business of Manufacturing of forging. There has been no change in the business of the Company during the financial year ended 31st March, 2021.

The highlights of the Companys performance are as under: -

There is decreased in revenue from Rs. 18,04,98,683 to Rs. 9,42,27,400 There has been drastic effect of the COVID -19 Pandemic and therefore the business has not been possible. The losses have increased due t reduction in revenue.

3. WEB LINK OF ANNUAL RETURN

Web Link has been provided on Companys Website: www.adityaforge.com

4. MEETINGS OF BOARD OF DIRECTORS

Four Board Meetings were held during the Financial Year ended March 31, 2021 i.e. (18.05.2020,27.07.2020,28.10.2020,25.01.2021). The maximum gap between any two Board Meetings was less than one Hundred and Twenty days and Audit Committee Meetings were convened. And held for 04(Four) times on 18.05.2020, 27.07.2020, 28.10.2020, 25.01.2021. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.

The names of members of the Board, their attendance at the Board Meetings is as under:

Name of Directors Number of Meetings attended/ Total Meetings held during the F.Y. 200-21
SUBHASH BHAGWANDAS DALAL 00
VISHNUBHAI INDUBHAI PATEL 04
NITIN RASIKLAL PAREKH 04
REKHA NITIN PAREKH 04

5. DETAILS OF FRAUD REPORT BY AUDITOR:

As per auditors report, no fraud u/s 143(12) reported by the auditor.

6. AUDITOR:

Statutory Auditors

The Notes on financial statement referred to in the Auditors Report are self-explanatory and do not call for any further comments. The Auditors Report does not contain any qualification, reservation or adverse remark.

There is no fraud in the Company during the year ended 31st March,2020. This is also being supported by the report of the auditors of the Company as no fraud has been reported in their audit report for the year ended 31st March 2021.

The Shareholders in their meeting held on 31st December 2020 appointed MS. HARSHA NIKHILCHANDA BHATT, Chartered Accountants having (Firm Registration No. 155589), as the Statutory Auditors of the Company, to hold office till the conclusion of Next Annual General Meeting of the Company.

BOARDS COMMENT ON THE AUDITORS REPORT:

The observations of the Statutory Auditors, when read together with the relevant notes to the accounts and accounting policies are self-explanatory and does not call for any further comment.

7. PARTICULARS OF LOANS AND INVESTMENT

The company has not made any investment during the year under review. The Company has also not taken any secured loan from Bank / Financial Institute during the year under review.

8. CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES

All related party transactions that were entered into during the financial year ended 31st March, 2021 were on an arms length basis and were in the ordinary course of business. Further, there are no materially significant related party transactions during the year under review made by the Company with Promoters, Directors, or other designated persons which may have a potential conflict with the interest of the Company at large.

Particulars of contracts or arrangements with related parties referred to in Section 188 of the Companies Act, 2013, in the prescribe Form AOC- 2, has been annexed herewith to this report.

9. TRANSFER TO RESERVE:

The Board of Directors have decided to transfer the net profit/loss after tax and adjustment for FY 2020-21 in the General Reserve Account.

10. DIVIDEND

No Dividend was declared for the current financial year due to conservation of Profits/due to loss incurred by the Company /due to insufficient profit.

11. TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND

In terms of Section 125 of the Companies Act, 2013, there is no unclaimed dividend due for remittance to the Investor Education and Protection Fund established by the Central Government.

12. SECRETARIAL STANDARDS OF ICSI

The Directors have devised proper systems and processes for complying with the requirements of applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems were adequate and operating effectively.

13. SECRETARIAL AUDITORS

M/s. KH & Associates, Practicing Company Secretaries was appointed to conduct secretarial audit of the Company for the year ended on March 31, 2021, as required under Section 204 of the Companies Act, 2013 and Rules thereunder. The Secretarial Audit Report given by Secretarial Auditors in Form No. MR-3 has been annexed herewith to this report.

14. CORPORATE SOCIAL RESPONSIBILITY

The company is not required to formulate CSR policy as it is not fall under section 135 of the companies Act,2013.

15. MATERIAL CHANGES AND COMMITMENTS

No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which this financial statement relates and the date of this report

16. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO:

A. Conservation of Energy, Technology Absorption

The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 in respect of conservation of energy and technology absorption have not been furnished considering the nature of activities undertaken by the company during the year under review.

B. Foreign Exchange earnings and Outgo

Earnings Rs. 37,25,176.00
Outgo Rs. 1,06,06,069.00

17. RISK MANAGEMENT POLICY:

Risk Management is the process of identification, assessment and prioritization of risks followed by coordinated efforts to minimize, monitor and mitigate/control the probability and/or impact of unfortunate events or to maximise the realization of opportunities. The Company has laid down a comprehensive Risk Assessment and Minimization Procedure which is reviewed by the Board from time to time. These procedures are reviewed to ensure that executive management controls risk through means of a properly defined framework. The major risks have been identified by the Company and its mitigation process/measures have been formulated in the areas such as business, project execution, event, financial, human, environment and statutory compliance.

18. DETAILS OF SUBSIDIARY, JOINT VENTURE OR ASSOCIATE COMPANIES:

The Company does not have any Subsidiary, Joint Venture or Associate Company.

19. DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP):

There has been no change in the Directors or KMP during the year.

In accordance with the provisions of Section 152(6) of the Companies Act, 2013 read with rules Companies (Appointment and Qualification of Directors) Rules,2014 Mr. VISHNUBHAI INDUBHAI PATEL (DIN: 00070985) retires by rotation and being eligible offers himself for re-appointment.

20. The Company has not accepted any public deposits during the year under review.

21. INTERNAL FINANCIAL CONTROL

The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weakness in the design or operation was observed.

22. COST RECORD

The provision of Cost audit as per section 148 doesnt applicable on the Company.

23. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS, COURTS AND TRIBUNALS

No significant and material order has been passed by the regulators, courts, tribunals impacting the going concern status and Companys operations in future.

24. CONSTITUTION OF COMMITTEE - SEXUAL HARASSMENT AT WORKPLACE

The Company has constituted committee under the sexual harassment of women at workplace (prevention, prohibition and Redressal) Act, 2013 and However, company has complied with the provisions of the same.

25. CONSOLIDATED FINANCIAL STATEMENTS

Company doesnt have any subsidiaries so there is no need to prepare consolidated financial statement for the F. Y. 2020-21.

26. DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to Section 134(3) (c) of the Companies Act, 2013 the Board of Directors of the Company confirms that-

a) In the preparation of the annual accounts for the year ended March 31,2021, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same.

b) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31,2021 and of the profit of the Company for the year ended on that date.

c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) The Directors have prepared the annual accounts on a going concern basis.

e) The Company being unlisted, sub clause (e) of section 134(3) of the Companies Act, 2013 pertaining to laying down internal financial controls is not applicable to the Company.

f) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such system is adequate and operating effectively.

27. ACKNOWLEDGMENT

Your Directors would like to express their sincere appreciation for the assistance and co-operation received from the banks, Government authorities, customers, vendors and members during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed services by the Companys executives, staff and workers.