Anjani Synthetics Ltd Directors Report.
The Directors of your company have great pleasure in presenting the Thirty Fifth Annual Report together with the audited financial statements of your Company for the financial year ended on 31st March 2019.
The summary of the companys financial performance of the Company during the financial year 2018-19 as compared to the previous financial year 2017-18 is given below:
|[Rupees in Lacs]|
|Particulars||Financial Year||Financial Year|
|Revenue from operations (Net)||30694.53||34380.31|
|(a) Cost of materials consumed||19859.52||25308.36|
|(b) Purchases of stock-in-trade|||||
|(c) Changes in inventories of FG, WIP & Stock-in-Trade||(444.50)||(1710.99)|
|(d) Employee benefits expense||978.11||751.83|
|(e) Finance costs||760.22||807.99|
|(f) Depreciation and amortization expense||536.03||458.26|
|(g) Other expenses||8635.16||8512.30|
|Profit/ (Loss) before tax||454.66||495.42|
|(a) Current tax expense||161.88||178|
|(b) Deferred tax||(7.67)||(8.41)|
|(c) Excess Provision of Tax for earlier Years||0.35||12.11|
|Profit / (Loss) for the year||300.10||313.72|
|Earnings per share (face value Rs.10/-) Basic & Diluted||2.03||2.13|
The Companys total revenue from operations during the financial year ended 31st March 2019 were Rs. 30694.53 Lacs as against Rs. 34380.31 Lacs of the previous year with total expenses of Rs.30324.54 Lsacs (previous year of Rs. 34127.75 lacs).The Company has made Net Profit of Rs.300.10 Lacs as against Rs.313.72 Lacs of the previous year after considering Depreciation and Provision for Tax .
The EPS of the Company for the year 2018-19 is Rs. 2.03. The Management is looking forward to get better result in next year and increase in Profit.
No dividend has been recommended in respect of the financial year ended 31st March, 2019 and the entire surplus be ploughed back into the business to give accelerator to the business of the company and generate higher profit in future.
During the financial year, the Company has achieved export sales of Rs.1133.75 Lacs (previous year of Rs. 1360.33 Lacs).
SUBSIDIARY, JOINT VENTURE (JV) AND ASSOCIATES COMPANIES
During the year under review, the Company does not have any Subsidiary, Joint Venture (JV) or Associates Company.
During the year under review, your Company has not accepted any fixed deposits within the meaning of Section 73 of the Companies Act, 2013 and the rules made thereunder.
During the year under review there is no change in Authorized share capital of the Company. The Authorized Share Capital of the Company as at 31st March, 2019 stood at Rs. 15,00,00,000/- divided into 1,50,00,000 equity shares of Rs. 10/- each. The paid up capital of the company as at 31st March, 2019 stood at Rs. 14,75,00,000/-(Face value Rs.10/- each)
The Board of Directors of your company has various executive and non-executive directors including Independent Directors who have wide experience in different disciplines of corporate functioning.
During the year Board of Directors have appointed Mr. Bhoorsingh Bagsingh Parihar as an additional director of the Company and Mr. Gopal Sanwarmal Pansari as an additional independent director of the company w.e.f. 12th October, 2018 subject to the approval of shareholders in the ensuing general meeting.
Moreover Board has also appointed Mr. Sourabh Vijay Patawari as an additional independent director of the company w.e.f. 28th February, 2019 and Ms. Garima Jain as an additional independent director of the company w.e.f. 15th June ,2019 subject to the approval of shareholders in the ensuing general meeting.
Mr. Rakesh Agarwal resigned as Director (Non-executive & independent) of the Company w.e.f 28th February, 2019 respectively. The board places on record its deep appreciation for the valuable services rendered as well as advice and guidance provided by Mr. Rakesh Agarwal during his tenure as Directors of the Company.
During the year Mr. Govindprasad Madanchand Goyal and Mrs. Pooja Sanjay Sharma resigned from as Director (Nonexecutive & independent) of the Company w.e.f. 12th October, 2018 and 15th June, 2019 respectively
Further, Mr. Konark P. Patel has resigned from the post of Company Secretary and Compliance officer of the company w.e.f 10th April, 2019.
As per the provisions of Section 152 of the Companies Act, 2013 and Articles of Association of the Company, Mr. Vasudev S. Agarwal [DIN: 01491403] being longest in the office shall retire at the ensuing Annual General Meeting and being eligible offers him-self for re-appointment.
The Board recommends the appointment/re-appointment of above directors for your approval.
Brief details of Directors proposed to be appointed/re-appointed as required under regulation 36 of the SEBI Listing Regulations are provided in the Notice of Annual General meeting.
All Independent Directors have given declarations that they meet the criteria of Independence as laid down under Section 149 (6) of the Companies Act, 2013 and Regulation 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The terms and conditions of the Independent Directors are incorporated on the website of the Company www.anjanisynthetics.com
NUMBER OF BOARD MEETINGS CONDUCTED DURING THE YEAR UNDER REVIEW
Regular Board Meetings are held once in a quarter, inter-alia, to review the quarterly results of the Company.
During the year under review 6 (SIX) Board Meetings were convened. The intervening gap between the two meetings was within the period prescribed under the Companies Act, 2013. The details of the meetings are furnished in the Corporate Governance Report which forming part of this Annual Report.
INDEPENDENT DIRECTORS MEETING
The Independent Directors met on the 13th February, 2019, without the attendance of Non-Independent Directors and members of the Management. The Independent Directors reviewed the performance of non-independent directors and the Board as a whole; the performance of the Chairperson of the Company, taking into account the views of Executive Directors and Non-Executive Directors and assessed the quality, quantity and timeliness of flow of information between the Company Management and the Board that is necessary for the Board to effectively and reasonably perform their duties.
EXTRACT OF ANNUAL RETURN
Pursuant to sub-section 3(a) of Section 134 and sub-section (3) of Section 92 of the Companies Act, 2013 read with Rule 12 of Companies (Management and Administration) Rules, 2014 the extract of the Annual Return as on 31st March, 2019 in Form MGT-9 forms part of this Annual Report as Annexure-I.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO
Information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earning and Outgo, required under Section 134 (3) (m) of the Companies Act, 2013 forms part of this Annual Report as Annexure-II.
CORPORATE GOVERNANCE REPORT:
The Company has taken adequate steps to adhere to all the stipulations laid down under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. A report on Corporate Governance included as a part of this Annual Report is given in Annexure-IV.
A certificate from the Statutory Auditors of the company confirming the compliance with the conditions of Corporate Governance as stipulated under Reg. 27 & 34 the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is attached to this Annual Report.
CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION &ANALYSIS REPORT:
Your Company is in compliance with all the applicable provisions of Corporate Governance as stipulated under Chapter IV of the Listing Regulations. A detailed report on Corporate Governance as required under the Listing Regulations is provided in a separate section and forms part of the Annual Report. Certificate from the Practicing Company Secretary regarding compliance with the conditions stipulated in the Listing Regulations forms part of the Corporate Governance Report.
The Management Discussion and Analysis Report as required under the Listing Regulations is presented in a separate section and forms part of the Annual Report.
Assets of your Company are adequately insured against various perils.
MATERIAL CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE COMPANY
There are no material changes and commitments, affecting the financial position of the Company which has occurred between the end of financial year as on 31st March, 2019 and the date of Directors Report i.e. 09.08.2019.
LISTING WITH STOCK EXCHANGE:
The Company confirms that it has paid the Annual Listing Fees for the year 2018-19 to BSE where the Companys Shares are listed.
COMMITTEES OF THE BOARD OF DIRECTORS
Your Company has several Committees which have been established as part of the best Corporate Governance practices and are in compliance with the requirements of the relevant provisions of applicable laws and statutes.
The Company has following Committees of the Board of Directors:
Stakeholders Grievances and Relationship Committee
Nomination and Remuneration Committee
The details with respect to the compositions, powers, terms of reference and other information of relevant committees are given in details in the Corporate Governance Report which forms part of this Annual Report.
POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION
The Company has a Nomination and Remuneration Committee. The Committee reviews and recommend to the Board of Directors about remuneration for Directors and Key Managerial Personnel and other employee up to one level below of Key Managerial Personnel. The Company does not pay any remuneration to the Non-Executive Directors of the Company other than sitting fee for attending the Meetings of the Board of Directors and Committees of the Board. Remuneration to Executive Directors is governed under the relevant provisions of the Act and approvals.
The Company has devised the Nomination and Remuneration Policy for the appointment, reappointment and remuneration of Directors, Key Managerial. All the appointment, reappointment and remuneration of Directors and Key Managerial Personnel are as per the Nomination and Remuneration Policy of the Company.
The Company has established a vigil mechanism and accordingly framed a Whistle Blower Policy. The policy enables the employees to report to the management instances of unethical behavior, actual or suspected fraud or violation of Companys Code of Conduct. Further the mechanism adopted by the Company encourages the Whistle Blower to report genuine concerns or grievances and provide for adequate safe guards against victimization of Whistle Blower who avails of such mechanism and also provides for direct access to the Chairman of the Audit Committee, in exceptional cases. The functioning of vigil mechanism is reviewed by the Audit Committee from time to time. None of the Whistle blowers has been denied access to the Audit Committee of the Board. The Whistle Blower Policy of the Company is available on the website of the Company www.anjanisynthetics.com .
RISK MANAGEMENT POLICY
The Company is aware of the risks associated with the business. It regularly analyses and takes corrective actions for managing/ mitigating the same. The Company has framed a formal Risk Management Framework for risk assessment and risk minimization which is periodically reviewed to ensure smooth operation and effective management control. The Audit Committee also reviews the adequacy of the risk management framework of the Company, the key risks associated with the business and measure and steps in place to minimize the same.
SEXUAL HARRASSMENT OF WOMEN AT WORKPLACE
The Company has zero tolerance for sexual harassment at workplace and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed thereunder. During the financial year 2018-19, the Company has not received any complaints on sexual harassment.
None of the Directors of the Company is disqualified for being appointed as Director as specified in Section 164(2) of the Companies Act, 2013.
Pursuant to the provisions of the Companies Act, 2013 and Regulation 17 and Regulation 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a structured questionnaire was prepared after taking into consideration of the various aspects of the Boards functioning, Composition of the Board and Committees, culture, execution and performance of specific duties, obligation and governance.
The performance evaluation of the Independent Directors was completed.
During the financial year under review, the Independent Directors met on13th February, 2019 inter-alia, to discuss:
Performance evaluation of Non Independent Directors and Board of Directors as a whole;
Performance evaluation of the Chairman of the Company;
Evaluation of the quality of flow of information between the Management and Board for effective performance by the Board.
The Board of Directors expressed their satisfaction with the evaluation process.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The details of Loans, Guarantees or Investments covered under the provisions of section 186 of the Companies Act, 2013 made during the year under review are disclosed in the financial statements.
PARTICULARS OF EMPLOYEES
The information required under Section 197 of the Companies Act, 2013 read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are as follows:
Remuneration Ratio of Directors/ KMP/ Employees:
|Name||Designation||FY 2018-19 (Rs in lacs)||FY 2017-18 (Rs in lacs)||+/- in remuneration from previous year (Rs.)||Ratio/ Times per Median of employeer emuneration|
|VASUDEV S. AGARWAL||CMD||24,00,000||24,00,000||||273.07/2.73|
|BHOORSINGH B. PARIHAR||DIRECTOR||1,59,030||||+ 1,59,030||18.09/0.18|
|MANOHARLAL I. SHARMA||CFO||5,68,100||5,03,100||+ 65,000||64.64/0.65|
|**KONARK PATEL||CS||69,086||||+ 69,086||7.86/0.07|
**Konark Patel appointed on 12th October, 2018 and resigned on 10th April, 2019 Median remuneration of employees was Rs. 878876/- during the year 2018-19
The particulars of the employees who are covered by the provisions contained in Rule 5(2) and rule 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are as follows:
The number of permanent employees on the rolls of Company: 244 (Two Hundred Forty Four) as on 31st March, 2019.
The remuneration paid to all Key management Personnel was in accordance with remuneration policy adopted by the Company.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All the related party transactions that were entered during the financial year were in the Ordinary course of business of the Company and were on arms length basis. There were no materially significant related party transactions entered by the Company with its Promoters, Directors, Key Managerial Personnel or other persons which may have potential conflict with the interest of the Company.
All Related Party transactions are placed before the Audit Committee for approval, wherever applicable. Prior omnibus approval for normal business transactions is also obtained from the Audit Committee for the related party transactions which are of repetitive nature and accordingly the required disclosures are made to the Committee on quarterly basis in terms of the approval of the Committee. The details of Related Party Transactions are given in the notes to the financial statements.
The policy on Related Party Transactions as approved by the Board of Directors is uploaded on the website of the Company www.anjanisynthetics.com
The particulars of contracts or arrangements with related parties referred to in Section 188(1) of the Companies Act, 2013, as prescribed in Form AOC-2.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
Your Company has laid down the set of standards, processes and structure which enables to implement internal financial control across the Organization and ensure that the same are adequate and operating effectively. To maintain the objectivity and independence of Internal Audit, the Internal Auditor reports to the Chairman of the Audit Committee of the Board.
The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with the operating systems, accounting procedures and policies of the Company. Based on the report of Internal Auditor, the process owners undertake the corrective action in their respective areas and thereby strengthen the Control. Significant audit observation and corrective actions thereon are presented to the Audit Committee of the Board.
M/s. ABHISHEK KUMAR & ASSOCIATES, Chartered Accountants [FRN NO.: 130052W] was appointed as the Statutory Auditors of the Company, to hold the office from the conclusion of the 33rd Annual General Meeting (AGM) to the conclusion of the 38th Annual General Meeting (AGM), subject to ratification of the appointment by the members at every Annual General Meeting. The Company has received the consent from the Auditors and confirmation to the effect that they are not disqualified to be appointed as the Auditors of the Company in the terms of the provisions of the companies Act, 2013 and the rules made thereunder.
Accordingly, the Board of Directors had recommended the ratification of appointment of M/s. ABHISHEK KUMAR & ASSOCIATES, Chartered Accountants [FRN NO.: 130052W] as the Statutory Auditors of the Company to hold the office from the ensuing AGM till the conclusion of the next AGM on such remuneration as may be determined by the Board of Directors in consultation with them.
The Auditors report to the shareholders on the standalone financials for the year ended March 31, 2019 does not contain any qualification, observation or adverse comment.
Statutory Auditors Report:
The Statutory Auditors Report on the accounts of the Company for the accounting year ended 31st March, 2019 is selfexplanatory and do not call for further explanations or comments that may be treated as adequate compliance of Section 134 of the Companies Act, 2013.
M/s. Kamal M. Shah & Co., Chartered Accountants, Ahmedabad has been appointed as Internal Auditors of the Company. Internal Auditors are appointed by the Board of Directors of the Company on a yearly basis, based on the recommendation of the Audit Committee. The Internal Auditor reports their findings on the Internal Audit of the Company, to the Audit Committee on a quarterly basis. The scope of internal audit is approved by the Audit Committee.
The Company has appointed M/s. Kiran J. Mehta & Co., Cost Accountants, Ahmedabad as Cost Auditor of the Company to audit the cost accounts for the financial year 2019-20.
As per Section 148 read with Companies (Audit & Auditors) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013 the Board of Directors of your Company has appointed M/s. Kiran J. Mehta & Co., Cost Accountants as the Cost Auditor of the Company for the financial year 2019-20 on the recommendations made by the Audit Committee subject to the approval of the Central Government.
The remuneration proposed to be paid to the Cost Auditors, subject to the ratification by the members at the ensuing Annual General Meeting, would be Rs.50,000/- (apart from reimbursement of out of pocket expenses and applicable taxes, if any).
The Cost Audit report for the financial year 2018-19 was filed within the due date. The due date for submission of the Cost Audit Report for the financial year 2018-19 is within 180 days from 31st March, 2019.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company had re-appointed Mr. Mukesh H. Shah, Practicing Company Secretary of Ahmedabad to undertake the Secretarial Audit of the Company. The secretarial audit report for the financial year 2018-19 is annexed to this Annual Report as Annexure-III.
DIRECTORS RESPONSIBILITY STATEMENT:
As stipulated in Section 134(3)(c) read with sub section 5 of the Companies Act, 2013, Directors subscribe to the "Directors Responsibility Statement", and confirm that:
a) In preparation of annual accounts for the year ended 31st March, 2019, the applicable accounting standards have been followed and that no material departures have been made from the same;
b) The Directors had 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 at the end of the financial year and of the profit or loss of the Company for that year;
c) The Directors 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) The Directors had prepared the annual accounts for the year ended 31st March, 2019 on going concern basis.
e) The Directors had laid down the internal financial controls to be followed by the Company and that such Internal Financial Controls are adequate and were operating effectively; and
f) The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:
1. Details relating to deposits covered under Chapter V of the Companies Act, 2013.
2. Issue of Equity Shares with differential rights as to dividend, voting or otherwise.
3. Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and ESOS.
4. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.
5. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companys operations in future.
Your Directors would like to express their appreciation for the assist ance and co-operation received from the financial institutions, 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 executives, staff and workers of the Company.
|For and on behalf of the Board|
|For, ANJANI SYNTHETICS LIMITED|
|PLACE : AHMEDABAD||[VASUDEV S. AGARWAL]|
|DATE : 09.08.2019||CHAIRMAN & MD|