Ajanta Soya Ltd Directors Report.

TO THE MEMBERS OF AJANTA SOYA LIMITED

The Directors hereby present their 28th Annual Report on the business and operations of the Company and the financial accounts for the year ended 31st March, 2019.

Financial Highlights

(Amount in Lakhs)

Particulars Current Year (2019) Previous Year (2018)
Revenue from operations 69465.36 34604.55
Other Income 101.50 600.42
Profit/(Loss) before exceptional items and tax (281.25) 376.91
Exceptional Items (Net) 441.91 -
Profit/(Loss) before Tax 160.66 376.91
Tax Expense 200.97 282.81
Profit/(Loss) after Tax (40.31) 94.10
Other Comprehensive Income (Net of Tax) 12.21 (18.82)
Total Comprehensive Income (28.10) 75.28
Transfer to Reserve Nil Nil
Reserves and surpluses 2683.48 2723.79
Earning per share (0.25) 0.58

Company Performance

During the year under review total income of the Company was Rs. 69566.86 Lakhs as against Rs. 35204.97 Lakhs in the previous year. The total expenses of the Company was Rs. 69848.11 Lakhs during the year as compared to Rs. 34828.06 during the previous year. The Company had suffered a loss after tax of the year of Rs. 40.31 Lakhs against a profit after tax of Rs. 94.10 Lakhs in the previous year. During 2017-18, the Company has installed new machinery and recommenced its manufacturing operations in the month of February, 2018. During initial commissioning and stabilisation process and low capacity utilisation, the utility cost remained high and secondly as per NGTs directive and by orders of CPCB and RPCB the boiler fuel has been changed from Petcoke to imported coal in Steam Boiler and PNG in Thermosyphons resulting in higher fuel cost. The capacity utilistion has been low in the first year after recommissioning of expanded capacity of new plant resulting in higher production costs.

Due to increased fuel cost compounded with lower plant capacity utilisation, the company has suffered loss in the year under review. Your Directors are putting in their best efforts to improve the performance of the Company by increasing the throughput of the plant.

Statement of Companys Affair

The Company is engaged in the business of manufacturing of Vanaspati and Refined Oil with shortening products (bakery & biscuit). During the year company has produced 93636.543 MT of Vanaspati/Refined Oil as against 47627.232 MT in the previous year.

The most popular brands of Vanaspati/refined oil and bakery shortening are "Dhruv", "Anchal" and "Parv", all are which enjoy a considerable market share.

Detailed information on the operations of the Company and details on the state of affairs of the Company are covered in the Management Discussion and Analysis Report attached to this report.

Change in nature of Business of the Company

There has been no change in the nature of business of the Company.

Material Changes etc

Save as mentioned elsewhere in this Report, no material changes and commitments affecting the financial position of the Company have occurred between the end of the financial year of the Company-31st March, 2019 and the date of this Report.

Dividend

Due to loss suffered by the Company, your directors regret to declare any dividend for this year.

Share Capital

The paid up Equity Share Capital as on 31st March, 2019 was Rs. 16.10 crores. During the year under review, the Company has not issued any Shares. The Company has not issued shares with differential voting rights. It has neither issued employee stock options nor sweat equity shares and does not have any scheme to fund its employees to purchase the shares of the Company.

Utilization of Issue Proceeds

During the period under review, Company has not raised any funds through preferential allotment or qualified institutions placement.

Particulars of Loans, Guarantees or Investments under Section 186 of the Companies Act, 2013

Pursuant to Section 134(3)(g) of the Companies Act, 2013 details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are as under below.

Detail of Investment as on 31st March, 2019

Name of Company

(Rs. In Lakhs)*

- DG Estates Pvt Ltd (2,94,500 equity shares of Rs. 10/- each) 137.61
- Dhruv Globals Limited (3,86,050 equity shares of Rs. 10/- each) 185.10
- Ajanta Realtech Pvt Ltd (95,000 equity shares of Rs. 10/- each) 129.46

* Fair Value of Investments as per Ind AS. Detail of Guarantee as on 31st March, 2019

Name of Company

(Rs. In Lakhs)

Guarantee issued in favour of bank on behalf of Dhruv Globals Limited. 7827.00

During the financial year ended 31st March, 2019, no Loan u/s 186 of the Companies Act, 2013 was made by the Company.

Disclosure on Deposit under Chapter V

The Company has neither accepted nor renewed any deposits during the Financial Year 2018-19 in terms of Chapter V of the Companies Act, 2013.

Report on Subsidiaries, Associates and Joint Venture companies

The Company has no subsidiaries, associates and joint ventures companies.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

Pursuant to provisions of Section 134 of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 the details of Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo are attached as ‘Annexure 1 which forms part of this report.

Listing

At present, the equity shares of the Company are listed at Bombay Stock Exchange Ltd. (BSE). The annual listing fees for the financial year 2019-20 to BSE has been paid.

Corporate Governance

Corporate Governance is all about ethical conduct, openness, integrity and accountability of an enterprise. Good Corporate Governance involves a commitment of the Company to run the business in a legal, ethical and transparent manner and runs from the top and permeates throughout the organization. It involves a set of relationships between a companys management, its Board, shareholders and Stakeholders. It is a key element in improving the economic efficiency of the enterprise. Credibility offered by Corporate Governance helps in improving the confidence of the investors - both domestic and foreign, and establishing productive and lasting business relationship with all stakeholders.

At ASL Corporate Governance is more a way of business life than a mere legal obligation. Strong governance practices of the Company have been rewarded in the Company.

A Certificate from Practicing Company Secretaries regarding compliance of the conditions of Corporate Governance, as stipulated under Schedule V of the Listing Regulations is attached in the Corporate Governance Report and forms part of this report.

Certificate of the CEO/CFO, inter-alia, confirming the correctness of the financial statements, compliance with Companys Code of Conduct, adequacy of the internal control measures and reporting of matters to the auditors and the Audit committee in terms of Regulation 17 of the Listing Regulations is attached in the Corporate Governance report, and forms part of this report.

Credit Rating

During the year CRISIL has assigned the Bank Loan External Ratings of the Company as mentioned below:

Total Bank Loan Facilities Rated Rs. 130 Crore
Long-Term Rating CRISIL BBB-/Negative (Reaffirmed).
Short-Term Rating CRISIL A3 (Reaffirmed).

Board of Directors

a. Retirement by Rotation:

In Pursuant to Sections 149, 152 and other applicable provisions, if any, of the Companies Act, 2013, one-third of such of the Directors as are liable to retire by rotation, shall retire every year and, if eligible, offer themselves for re-appointment at every Annual General Meeting (AGM). Consequently, Mr Sushil Goyal (DIN: 00125275), Managing Director will retire by rotation at the ensuing AGM, and being eligible, offer himself for re-appointment in accordance with the provisions of the Companies Act, 2013.

b. Re-appointment of Independent Directors:

The members of the Company at the 27th Annual General Meeting (AGM) held on 22nd September, 2018, reappointed Mr Harsh Chander Kansal (from 1st April, 2019 till 31st March, 2024) and Mr Hemant Bansal (from 1st April, 2019 till 31st March, 2024) as Independent Directors of the Company for second term.

Pursuant to the provisions of Section 149 of the Companies Act, 2013 read with the Companies (Appointment and Qualification of Directors) Rules, 2014 and the erstwhile Clause 49 of the Listing Agreements with the stock exchanges, Mrs Sushila Jain (DIN: 03432157) was appointed as an Independent Directors on the Board of the Company for a period of 5 (Five) consecutive years w.e.f. 28th March, 2015. She can hold office as an Independent Directors of the Company up to 27th March, 2020 ("First Term" in line with the explanation to Sections 149(10) and 149(11) of the Act). The Board has recommended re-appointment of Mrs Sushila Jain as an Independent Directors of the Company, not liable to retire by rotation and for Second Term of 5 (Five) consecutive years on the Board of the Company effective from 28th March, 2020.

The Company has received declaration from Mrs Sushila Jain appointee Independent Director that she meet the criteria of independence as prescribed u/s 149(6) of the Companies Act, 2013. In the opinion of the Board, she fulfill the condition for appointment/re-appointment as Independent Directors on the Board.

A brief resume of the Directors proposed to be re-appointed, the nature of her expertise in specific functional areas, disclosure of relationships between Directors inter-se, names of companies in which she has held directorships, committee memberships/chairmanships, her shareholding etc., is annexed to the Corporate Governance Report and Notice of the ensuing AGM. The Directors recommend her re-appointment at the ensuing AGM.

c. Declaration by Independent Directors

Pursuant to provisions of Section 134(3)(d) of the Companies Act, 2013, with respect to statement on declaration given by Independent Directors under Section 149(6) of the Act, the Board hereby confirms that all the Independent Directors of the Company have given a declaration and have confirmed that they meet the criteria of independence as provided in the said Section 149(6).

After undertaking a due assessment of their disclosures, in the opinion of the Board of Directors, all the Independent Directors fulfilled the requirements of the Companies Act, 2013 and the Listing Regulations and were independent of the management of the Company.

Key Managerial Personnel

The Key Managerial Personnel (KMP) in the Company as per Section 2(51) and 203 of the Companies Act, 2013 are as follows:

Name Designation
Mr Sushil Goyal Managing Director
Mr Abhey Goyal Whole Time Director
Mr Jai Gopal Sharma Chief Financial Officer
Mr Kapil Company Secretary

Policy on Directors appointment and Policy on remuneration

Pursuant to the requirement under Section 134(3)(e) and Section 178(3) of the Companies Act, 2013, the policy on appointment of Board members including criteria for determining qualifications, positive attributes, Independence of a Director and the policy on remuneration of Directors, KMP and other employees is attached as ‘Annexure 2 respectively, which forms part of this report.

Particulars of remuneration of Directors/ KMP/Employees

There are no employees who are in receipt of remuneration in excess of the limits prescribed under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:

Sl No. Particulars
(i) The Ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year. Name of the Director Total Remuneration (In Lakhs) Ratio to the Median
Mr Sushil Goyal (Managing Director) 30.00 14
Mr Abhey Goyal (Whole time Director) 24.00 11
(ii) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary in the financial year. Name % of Increase
Mr Sushil Goyal (Managing Director) Nil
Mr Abhey Goyal (Whole Time Director) Nil
Mr Jai Gopal Sharma (CFO) 41.04%
Mr Kapil (Company Secretary) 30.10%

 

(iii) The percentage increase in the median remuneration of employees in the financial year. The percentage increase in the Median Remuneration during the financial year is 18.57% This has been arrived at by comparing the median remuneration as on 31st March, 2018 and the median remuneration as on 31st March, 2019.
(iv) The number of permanent employees on the rolls of the company. The total number of permanent employee of Ajanta Soya Limited as on 31st March, 2019 was 97 (Ninety Seven).
(v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration. The average % increase in salary was 22.46% for all employees other than the managerial personnel who went through the compensation review cycle in the year.

During the financial year there was no increase in the Managerial remuneration.

(Vi) It is hereby affirmed that the remuneration is as per the Remuneration Policy of the Company. Pursuant to Rule 5(1)(xii) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, it is affirmed that the remuneration paid to the Directors, Key Managerial Personnel and senior Management is as per the Remuneration Policy of the Company.

Further, Details as required under the provisions of section 197(12) of the Companies Act, 2013, read with rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, is attached as ‘Annexure 3 to this Report.

Number of Meetings of the Board

During the Financial Year 2018-19, 9 (Nine) number of Board meetings were held. For details there of kindly refer to the section Board of Directors in the Corporate Governance Report.

Performance Evaluation of the Board, its Committees and Individual Directors

Pursuant to applicable provisions of the Companies Act, 2013 and the Listing Agreement with Stock Exchanges, the Board, in consultation with its Nomination & Remuneration Committee, has formulated a framework containing, inter- alia, the criteria for performance evaluation of the entire Board of the Company, its Committees and Individual Directors, including Independent Directors.

A structured questionnaire has been prepared, covering various aspects of the functioning of the Board and its Committee, such as, adequacy of the constitution and composition of the Board and its Committees, matters addressed in the Board and Committee meetings, processes followed at the meeting, Boards focus, regulatory compliances and Corporate Governance, etc. Similarly, for evaluation of Individual Directors performance, the questionnaire covers various aspects like his/her profile, contribution in Board and Committee meetings, execution and performance of specific duties, obligations, regulatory compliances and governance, etc.

Board members had submitted their response on a scale of 5 (excellent) - 1 (poor) for evaluating the entire Board, respective Committees of which they are members and of their peer Board members, including Chairman of the Board.

The Independent Directors had met separately without the presence of Non-Independent Directors and the members of management and discussed, inter-alia, the performance of non-Independent Directors and Board as a whole and the performance of the Chairman of the Company after taking into consideration the views of executive and Non-Executive Directors.

As part of the evaluation process, the performance of Non-Independent Directors, the Chairman and the Board was conducted by the Independent Directors. The performance evaluation of the respective Committees and that of Independent and Non-Independent Directors was done by the Board excluding the Director being evaluated.

The performance evaluation of all the Independent Directors have been done by the entire Board, excluding the Director being evaluated. On the basis of performance evaluation done by the Board, it shall be determined whether to extend or continue their term of appointment, whenever the respective term expires. The Directors expressed their satisfaction with the evaluation process.

Composition of Audit Committee

As on 31st March, 2019, the Audit Committee of the Company comprises the following directors:

Mr Harsh Chander Kansal-Chairman (Non-Executive & Independent Director)

Mr Hemant Bansal-Member (Non-Executive & Independent Director)

Mr Abhey Goyal-Member (Executive and Promoter Director)

Further, all recommendations of Audit Committee were accepted by the Board of Directors.

Statutory Auditors and their Report

As per provisions of Section 139(1) of the Act, the Company has appointed M/s. Pawan Shubham & Co., Chartered Accountants (Firm Registration No. 011573C) as Statutory Auditors for a period of 5 (Five) years in the AGM of the Company held on 26th September, 2017.

The Ministry of Corporate Affairs vide its Notification dated May 7, 2018, has dispensed with the requirement of ratification of Auditors appointment by the shareholders, every year. Hence, approval of the Shareholders for the ratification of Auditors appointment is not being sought at the ensuing AGM.

There are no observations (including any qualification, reservation, adverse remark or disclaimer) of the Auditors in their Audit Report that may call for any explanation from the Directors. Further, the notes to accounts referred to in the Auditors Report are self-explanatory.

Cost Auditors and their Report

During the Financial Year 2018-19 as per Section 148 of the Companies Act, 2013 read with Rules framed there under, M/s K.G. Goyal & Associates, Cost Accountants, (Firms Registration No. 000024) were re-appointed as Cost Auditors to conduct cost audit of the accounts maintained by the Company in respect of the various products prescribed under the applicable Cost Audit Rules. The remuneration of Cost Auditors has been approved by the Board of Directors on the recommendation of Audit Committee. Subsequent to the end of financial year M/s K.G. Goyal & Associates, Cost Accountants, (Firms Registration No. 000024) have also been appointed as Cost Auditors for the Financial Year 2019-20 by the Board of Directors, upon recommendation of Audit Committee. The requisite resolution for ratification of remuneration of Cost Auditors by members of the Company has been set out in the Notice of ensuing annual general meeting. The Cost Auditors have certified that their appointment is within the limits of Section 141(3)(g) of the Act and that they are not disqualified from appointment within the meaning of the said Act.

Maintenance of cost records

Pursuant to the provisions under Section 148 of the Companies Act, 2013 read with Rules framed thereunder, the Directors confirm that the proper Cost accounts and records are maintained by the Company in terms of the Act.

Secretarial Auditors and their Report

Your Board, during the year, appointed M/s R & D Company Secretaries, to conduct secretarial audit of the Company for the financial year ended 31st March, 2019. The Report of M/s R & D Company Secretaries in terms of Section 204 of the Act is provided in the ‘Annexure 4 forming part of this Report. The said reports are self-explanatory and do not contain any qualification, reservation and adverse remarks or disclaimer.

Annual Secretarial Compliance Report

A Secretarial Compliance Report for the financial year ended 31st March, 2019 on compliance of all applicable SEBI Regulations and circulars/ guidelines issued thereunder, was obtained from M/s R & D Company Secretaries, Secretarial Auditors, and submitted to Bombay stock exchange.

Details in respect of frauds reported by Auditors other than those which are reportable to the Central Government

The Statutory Auditors, Cost Auditors and Secretarial Auditors of the Company have not reported any frauds to the Audit Committee or to the Board of Directors under Section 143(12) of the Companies Act, 2013, including rules made thereunder.

Directors Responsibility Statement

Pursuant to the provisions under Section 134(5) of the Companies Act, 2013, with respect to Directors Responsibility Statement, the Directors confirm:

a) That in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

b) That they had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

c) That they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) That they had prepared the annual accounts on a going concern basis;

e) That they had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

f) That they had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Corporate Social Responsibility(CSR)

Your Company has always been undertaking CSR activities on a significant scale, upholding the belief that Corporates have a special and continuing responsibility towards social development.

The vision of ASL CSR activities to make sustainable impact on the human development of underserved communities through initiatives in Education, Health and Livelihoods has been formally codified with the constitution of a dedicated

Corporate Social Responsibility Committee of the Board as per of section 135 of the Companies Act, 2013 and Rules framed thereunder. The CSR Committee of the Company helps the Company to frame, monitor and execute the CSR activities of the Company. The Committee defines the parameters and observes them for effective discharge of the social responsibility of your Company. The CSR Policy of your Company outlines the Companys philosophy & the mechanism for undertaking socially useful programmes for welfare & sustainable development of the community at large as part of its duties as a responsible corporate citizen. Details regarding the constitution, roles and functions of the Corporate Social Responsibility Committee are given in the Report on Corporate Governance.

Further, the Board of Directors of your Company has also adopted the CSR Policy of the Company as approved by the Corporate Social Responsibility Committee which is also available on the website of the Company at www.aiantasova.com.

As per Section 135 of the Companies Act, 2013, the Company has a Corporate Social Responsibility (CSR) Committee of its Board of Directors. The Committee comprises:

Mr Harsh Chander Kansal-Chairman (Non-Executive & Independent Director)

Mr Sushil Goyal-Member (Executive & Promoter Director)

Mr Abhey Goyal-Member (Executive & Promoter Director)

During the year, the Committee monitored the implementation and adherence to the CSR policy. The CSR policy provides a constructive framework to review and organize our social outreach programs in the areas of education, health and livelihood. The policy enables a deeper understanding of outcome-focused social development through diverse collaborations.

In view of the inadequacy of profits / loss during the immediately preceding financial years, the Company was not required to spend towards CSR activities during FY 2018-19 as per Section 135 of the Companies Act, 2013 read with rules thereunder. However, the unspent CSR amount related to financial year 2017-18 amounting to Rs. 3.17 Lakhs was spent during the financial year 2018-19 and an additional amount of Rs. 2.08 Lakhs was also spent aggregating to Rs. 5.25 Lakhs spent during financial year 2018-19.

Details about the CSR policy and initiatives taken by the Company during the year are available on Companys website www.aiantasova.com. The report on CSR activities of the Company is attached as ‘Annexure 5.

Internal Financial Controls System

According to Section 134(5)(e) of the Companies Act, 2013 the term Internal Financial Control (IFC) means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

The Company has a well-placed, proper and adequate IFC system which ensures that all assets are safeguarded and protected and that the transactions are authorised, recorded and reported correctly. The Companys IFC system also comprises due compliances with Companys policies and Standard Operating Procedures (SOPs) and audit and compliance by in-house Internal Audit Division, The Company has appointed an external professional firm as Internal Auditor. The Internal Auditors independently evaluate the adequacy of internal controls and concurrently audit the majority of the transactions in value terms. Independence of the audit and compliance is ensured by direct reporting of Internal Audit Division and Internal Auditors to the Audit Committee of the Board.

Details of internal financial control and its adequacy in compliance with the provisions of Rule 8(5)(viii) of Companies (Accounts) Rules, 2014 are included in the Management Discussion and Analysis Report, which forms part of this Report.

The Company has appointed an external professional firm as Internal Auditor. The Internal Audit of the Company is regularly carried out to review the internal control systems and processes. The internal Audit Reports along with implementation and recommendations contained therein are periodically reviewed by Audit Committee of the Board.

Further during the year one single case of misappropriation/ shortage of finished goods involving the connivance of some employees at a particular depot of finished goods was identified and reported to police for criminal investigation & action.

Risk Management Policy

The Company has adopted a Risk Management Policy in accordance with the provisions of the Act and SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. It establishes various levels of accountability and overview within the Company, while vesting identified managers with responsibility for each significant risk.

The Internal Audit Department facilitates the execution of Risk Management Practices in the Company, in the areas of risk identification, assessment, monitoring, mitigation and reporting. Through this programme, each Function and Unit addresses opportunities and risks through a comprehensive approach aligned to the Companys objectives. The Company has laid down procedures to inform the Audit Committee as well as the Board of Directors about risk assessment and management procedures and status.

This risk management process, which is facilitated by internal audit, covers risk identification, assessment, analysis and mitigation. Incorporating sustainability in the process also helps to align potential exposures with the risk appetite and highlights risks associated with chosen strategies. The current risk slate and the comprehensive risk policy have been further redefined during the year. The major risks forming part of the Enterprise Risk Management process are linked to the audit universe and are covered as part of the annual risk based audit plan.

Vigil Mechanism and Whistle Blower Policy

The Company has adopted a Vigil Mechanism and Whistle Blower Policy, to provide a formal mechanism to the Directors and employees to report their concerns about unethical behavior, actual or suspected fraud or violation of the Companys Code of Conduct or ethics policy. The Policy provides for adequate safeguards against victimization of employees who avail of the mechanism and also provides for direct access to the Chairman of the Audit Committee.

It is affirmed that no personnel of the Company has been denied access to the Audit Committee.

Statement under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Pursuant to the legislation The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has a Policy on Prevention of Sexual Harassment at Workplace. Your Company has constituted an Internal Complaints Committee (ICC) to investigate and resolve sexual harassment complaints.

The Company in its endeavour for zero tolerance towards any kind of harassment, including sexual harassment, or discrimination at the workplace has in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

During the year under review, the Company has not received any complaint under the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013.

No. of complaints filed during the year No. of complaints disposed off during the year No. of complaints pending
Nil Nil Nil

Extract of Annual Return

As required by Section 92(3) read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the Extract of Annual Return in Form MGT-9 is annexed herewith as ‘Annexure 6 to this Report.

Contracts or arrangements with Related Parties under Section 188(1) of the Companies Act, 2013

With reference to Section 134(3)(h) of the Companies Act, 2013, during the year, the Company had not entered into any contract or arrangement with related parties which could be considered ‘material according to the policy of the Company on Materiality of Related Party Transactions. Accordingly, there are no transactions that are required to be reported in form AOC-2. All related party transactions are mentioned in Note No. 41 of the notes to the Accounts.

All Related Party Transactions are placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee was obtained for the transactions which are of a foreseen and repetitive nature. The statement of transactions entered into pursuant to the omnibus approval so granted is placed before the Audit Committee for approval.

Significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concerns status and companys operations in future

The Company has not received any significant or material orders passed by any regulatory Authority, Court or Tribunal which shall impact the going concern status and Companys operations in future.

Secretarial Standards

The Company is in compliance with the relevant provisions of Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India and approved by the Central Government and all other Secretarial Standards from time to time.

Acknowledgements

Your Directors place on record their gratitude to the Central Government, State Governments and Companys Bankers for the assistance, co-operation and encouragement they extended to the Company. Your Directors also wish to place on record their sincere thanks and appreciation for the continuing support and unstinting efforts of investors, vendors, dealers, business associates and employees in ensuring an excellent allaround operational performance.

By order of the board
For Ajanta Soya Limited
Sushil Goyal Abhey Goyal
DIN: 00125275 DIN: 02321262
Managing Director Whole Time Director
Address: House No. 42-A, Road No.78, Address: House No. 42-A,
Date: 13thAugust, 2019 West Punjabi Bagh, New Delhi - 110026 Road No.78, West Punjabi Bagh,
Place: New Delhi New Delhi - 110026