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The Board of Directors hereby presents the 25th Annual Report on the business and operations of your Company along with the Audited Statements of Accounts for the Financial Year ended 31st March, 2018.
|(Rs. in Lacs)||(Rs. in Lacs)|
|Revenue from operations||12466.18||27,726.59|
|Depreciation and Amortization Expense||1151||1164.56|
|Profit / (Loss) before exceptional and extraordinary items and tax|
|Provision for Tax|
|Deferred Tax Assets / (Liabilities)||217.40||200.13|
|Profit/Loss after Tax||(1035.25)||(1108.23)|
Note: Previous year figures have been regrouped/ rearranged wherever necessary.
Due to inadequacy of profits during the year under report, your Directors do not recommend dividend on the Equity Shares of the Company.
REVIEW OF PERFORMANCE
During the year, the Turnover of Company has substantially decreased to Rs 12466.18 Lacs as against Rs. 27,726.59 Lacs in respect of the previous Financial Year ended 31st March, 2017. The Profit/ Loss after Tax is increased to Rs (1035.25) Lacs in the Financial Year ended 31st March, 2018 as against Rs. (1108.23) Lacs in the previous financial year ended 31st March, 2017 after considering deferred tax of Rs. 217.40 Lacs as against 200.13 Lacs in the previous financial year.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
All the Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149 (6) of the Act and Clause 17 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") entered into with the Stock Exchanges. In the opinion of the Board, they fulfill the conditions of independence as specified in the Act and the Rules made there under and are independent of the management. Further, the Composition is given in the Corporate Governance Report.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as "Annexure A".
MEETINGS OF THE BOARD
Four meetings of the Board of Directors and Four Meeting of audit committee were held during the year. For further details, please refer report on corporate governance section in this Annual Report.
COMMITTEES OF THE BOARD
Currently, the Board has five committees: the audit committee, nomination and remuneration committee, Management and Finance Committee, Sexual Harassment Committee and stakeholders relationship committee. All committees except Management and Finance Committee and Sexual Harassment Committee consist entirely of independent directors. A detailed note on the Board and its committees is provided under the corporate governance report section in this Annual Report.
Pursuant to the provisions of the Companies Act, 2013 and the Corporate Governance Requirement as prescribed by Securities and Exchange of India (Listing Obligations and Disclosure Requirements), Regulations 2015 ("SEBI Listing Regulations"), the Board has carried out an evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Appointment & Remuneration Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.
DECLARATION OF INDEPENDENT DIRECTORS
The Independent Directors have submitted their disclosures to the Board that they fulfill all the requirements as stipulated in Section 149(6) of the Companies Act, 2013 so as to qualify themselves to be appointed as Independent Directors under the provisions of the Companies Act, 2013 and the relevant rules.
FAMILIARIZATION PROGRAMME FOR INDEPENDENT DIRECTORS
The Company familiarizes its Independent Directors with the Company, their roles, rights, responsibilities in the company, nature of the industry in which the company operates, business model of the company etc. through various programmers. The details of such familiarization programmed shall be disclosed on the Companys website at the following web link: http:// asahiind.com/wp/
The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to section 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, confirm that: a. in the preparation of the annual financial statements for the year ended March 31, 2018, the applicable accounting standards have been followed and there is no material departures; b. they have selected such accounting policies and applied them consistently and made judgment 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, 2018 and of the profit of the Company for the year ended on that date; c. they have 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. they have prepared the annual financial statements have been prepared on a going concern basis; e. they have laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively; f. they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined in the Internal Audit Manual. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board & to the Chairman & Managing Director. The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. Based on the report of internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and recommendations along with corrective actions thereon are presented to the Audit Committee of the Board.
CODE OF CONDUCT:
The Board of Directors has approved a Code of Conduct which is applicable to the Members of the Board and all employees in the course of day to day business operations of the company. The Company believes in "Zero Tolerance" against bribery, corruption and unethical dealings / behaviours of any form and the Board has laid down the directives to counter such acts. The code laid down by the Board is known as "code of business conduct" which forms an Appendix to the Code. The Code has been posted on the Companys website www.asahiind.com. The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. The Code gives guidance through examples on the expected behaviour from an employee in a given situation and the reporting structure. All the Board Members and the Senior Management personnel have confirmed compliance with the Code. All Management Staff were given appropriate training in this regard.
VIGIL MECHANISM / WHISTLE BLOWER POLICY:
The Company has a vigil mechanism named Fraud and Risk Management Policy to deal with instance of fraud and mismanagement, if any. In staying true to our values of Strength, Performance and Passion and in line with our vision of being one of the most respected companies in India, the Company is committed to the high standards of Corporate Governance and stakeholder responsibility. The Company has a Fraud Risk and Management Policy to deal with instances of fraud and mismanagement, if any. The Policy ensures that strict confidentiality is maintained whilst dealing with concerns and also that no discrimination will be meted out to any person for a genuinely raised concern. A high level Committee has been constituted which looks into the complaints raised. The Committee reports to the Audit Committee and the Board.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has duly set up an Internal Complaints Committee (ICC) in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013, to redress complaints received regarding sexual harassment. The following is a summary of sexual harassment complaints received and disposed off during the year 2016-17.
|No of complaints received||: Nil|
|No of complaints disposed off||: Nil|
PREVENTION OF INSIDER TRADING:
The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre-clearance for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Board is responsible for implementation of the Code. All Board Directors and the designated employees have confirmed compliance with the Code.
RELATED PARTY TRANSACTIONS:
All transactions entered by the Company with Related Parties were in the Ordinary Course of Business and at Arms Length pricing basis. There were no materially significant transactions with Related Parties during the financial year 2017-18 which were in conflict with the interest of the Company. Suitable disclosures as required under AS-18 have been made in Notes to the financial statements. The Company has also adopted Related Party Transaction Policy as required under Regulation 23 of SEBI Listing Regulations. The Board has approved the policy on Related Party Transactions. The policies have been uploaded on the Companys website, under the web link:http://asahiind.com/wp/related-party-transactions/
Material changes and commitments affecting the financial position of the Company which have occurred between March 31, 2018 and 9th August, 2018:
There were no material changes and commitments affecting the financial position of the Company between the end of financial year (March 31, 2018) and the date of the Report 9th August, 2018.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES:
Particulars of contracts or arrangements with related parties referred to in Section 188(1) of the Companies Act, 2013, in the prescribed Form AOC-2, is appended as Annexure -B to the Boards report.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES:
The Directors are happy to state that the relations between the Company and its Employee remained cordial throughout the year. The Directors acknowledge and express their appreciation for the contributions made by the employees at all levels. Focused attention was given for knowledge updating and application of new technologies available to reduce costs and to meet the business challenges.
In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, none of the employees drew remuneration of Rs. 10,200,000/- or more per annum/ Rs. 8,50,000/- or more per month during the year or drew remuneration in excess of the remuneration drawn by Managing Director or Whole-time Directors or Manager and does not hold either by himself or through his spouse or dependent children 2 per cent or more equity shares of the company. The details of the employees remuneration is provided in the Annexure -C forming a part of Annual Report.
Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN AND SECURITIES PROVIDED
Detail of loans, investments, guarantees and securities covered under the provision of section 186 of Companies Act 2013 are given in the notes to the financial statement.
The properties, stock, assets of your Company are adequately insured.
REPORT ON CORPORATE GOVERNANCE
The Company is fully compliant with the Corporate Governance guidelines, as laid out in Chapter IV of SEBI Listing Regulations. All the Directors (and also the members of the Senior Management) have affirmed in writing their compliance with and adherence to the Code of Conduct adopted by the Company. The details of the Code of Conduct are furnished in the Corporate Governance Report attached to this Report. The Managing Director has given a certificate of compliance with the Code of Conduct, which forms part this Directors Report, as required under Chapter IV of SEBI Listing Regulations. M/s. Rishi Sekhari & Associates., Practicing Chartered Accountants, Statutory Auditor of the Company has examined the requirements of Corporate Governance with reference to Chapter IV of SEBI Listing Regulations and has certified the compliance, as required under Chapter IV of SEBI Listing Regulations. The Certificate in this regard is attached to this Report. The Managing Director certification as required under Chapter IV of SEBI Listing Regulations is attached to this Report.
HUMAN RESOURCES MANAGEMENT
The Company recognizes that in a people-intensive business, major gains can be scored in the area of productivity management. In view of this, the Company has strengthened its people management through performance-linked incentives, amenities, training, Multi-skilling and career path identification. The Company is of firm belief that good Human Resource (HR) Management would ensure success through high performance. HR strategy and plans of the Company are deeply embedded with the organizational goals. In order to enhance the manpower productivity, the goal is set to increase the production capacity of the plant and rationalize the manpower through scientific study. All the operational goals of the top management emanate from the business plan. The goals of MD are shared with his subordinates who in turn share their goal with their respective subordinates and so on. Regular visits by HR team is being made to the plant to meet the employees and also interaction meetings are conducted to get their feedback, based on which HR policies are improved continuously. The process has resulted in better employer-employee relationship. The Company lays due emphasis on all-round development of its human resource. Hence, training of the employees is aimed at systematic development of knowledge, skills, aptitude and team work. Training is designed for the development of personal skills necessary for the performance of the present job and to prepare them for future growth. Individual development is given top priority to groom high caliber manpower.
During the year under review, your Company enjoyed cordial relationship with workers and employees at all levels.
MANAGEMENT DISCUSSION & ANALYSIS REPORTS
The Management Discussion & Analysis Report, which form an integral part of this Report, are set out as separate Annexure, together with the Certificate from the auditors of the Company regarding compliance with the requirements of Corporate Governance as stipulated in Chapter IV of SEBI Listing Regulations.
CONSERVATION OF ENERGY:
a) Company ensures that the manufacturing operations are conducted in the manner whereby optimum utilization and maximum possible savings of energy is achieved.
b) No specific investment has been made in reduction in energy consumption.
c) As the impact of measures taken for conservation and optimum utilisation of energy are not quantitative, its impact on cost cannot be stated accurately.
FOREIGN EXCHANGE EARNINGS AND OUT-GO:
During the period under review there was no foreign exchange earnings or out flow.
AUDITORS REPORT / SECRETARIAL AUDIT REPORT:
The observation made in the Auditors Report read together with relevant notes thereon are self explanatory and hence, do not call for any further comments under Section 134 of the Companies Act, 2013. As required under section 204 (1) of the Companies Act, 2013 the Company has obtained a secretarial audit report. Certain observations made in the report with regard to non filing of some forms were mainly due to ambiguity and uncertainty of the applicability of the same for the relevant period. However, the company would ensure in future that all the provisions are complied to the fullest extent.
Pursuant to provisions of section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the company has appointed Ajay Goyal & Associates, Company Secretaries in practice to undertake the Secretarial Auditor of the Company. The Secretarial Audit report is annexed herewith as "Annexure D"
Pursuant to the provisions of Section 138 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company had appointed Mr. Priyavrat & Associates as Internal Auditor of the Company for the financial year 2017-18.
As per the requirements of Central Government and pursuant to the provisions of Section 148 of the Companies Act, 2013, your Company carries out an audit of cost records every year.
M/s. Rishi Sekhri & Associates, Chartered Accountants, (Membership No. 126656 & Firm Registration No.128216W) has been appointed as Auditors of the Company. In accordance with the provisions of Section 139 of the Act, M/s. Rishi Sekhri & Associates, Chartered Accountants, (Membership No. 126656 & Firm Registration No.128216W) to hold office till the conclusion of the Twenty Eight Annual General Meeting of the Company to be held in the year 2022, subject to ratification of such appointment by the Members at every subsequent Annual General Meeting, if so required under the Act.
Your Directors place on record their appreciation of the assistance and support extended by Banks, Consultants, Solicitors, Shareholders and Employees of the Company.
|For and on behalf of the Board of Directors|
|Place: Mumbai||Managing Director|
|Date: 9th August, 2018||DIN:07314266|
ANNEXURE B TO THE DIRECTORS REPORT FORM NO. AOC-2
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014) Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in subsection (1) of Section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto:
1. Details of contracts or arrangements or transactions not at arms length basis:
|a) Name(s) of the related party and nature of relationship||NIL|
|b) Nature of contracts/arrangements/transactions||NIL|
|c) Duration of the contracts / arrangements/transactions||NIL|
|d) Salient terms of the contracts or arrangements or transactions including the value, if any||NIL|
|e) Justification for entering into such contracts or arrangements or transactions||NIL|
|f) Date(s) of approval by the Board||NIL|
|g) Amount paid as advances, if any||NIL|
|h) Date on which the special resolution was passed in general meeting as required under first proviso to Section 188||NIL|
|2. Details of material contracts or arrangements or transactions at arms length basis:|
|a) Name of the related party and nature of relationship||NIL|
|b) Nature of transaction||NIL|
|c) Duration of transaction||NIL|
|d) Salient terms of the transaction including the value, if any||NIL|
|e) Date of approval by the Board, if any||NIL|
|f) Amount paid as advances, if any||NIL|
|For and on behalf of the Board of Directors|
|Place: Mumbai||Mahavir Dixit|
|Date: 09th August, 2018||Managing Director|
[Pursuant to Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
1. The ratio of the remuneration of each Director to the median remuneration of the Employees of the Company for the financial year: (Explanation: (i) the expression median means the numerical value separating the higher half of a population from the lower half and the median of a finite list of numbers may be found by arranging all the observations from lowest value to highest value and picking the middle one. (ii) If there is an even number of observations, the median shall be the average of the two middle values.)
|*Non Executive Directors||Ratio to Median|
|Shri. Ramniwas Bhiku||NIL|
|Smt. Jyoti Kolhe||NIL|
|Shri Pushpendra Pandey||NIL|
|Shri Shivprasad Yadav||NIL|
|*Non Executive Directors are paid only Sitting Fees|
|Executive Directors (*Managing Director) and (**Chief Financial Officer)||Ratio to Median|
2. The percentage increase in the remuneration of each Director, Chief Financial officer, Company Secretary or Manager, if any in the financial: The ratio of each Director to the Median Remuneration of all employees who were on the pay roll of the Company and the percentage increase in remuneration of the Directors during financial year 2017-2018 are given below:
|*Non Executive Directors||Ratio to Median||Percentage Increase in Remuneration|
|Shri. Ramniwas Bhiku||NIL||-|
|Smt. Jyoti Kolhe||NIL||-|
|Shri Pushpendra Pandey||NIL||-|
|Shri Shivprasad Yadav||NIL||-|
*Non Executive Directors are paid only Sitting Fees
|Executive Directors||Ratio to Median||Percentage Increase in Remuneration|
|***Swaroop Singh Bhati|
3. The percentage increase in the median remuneration of employees in the financial year : 0 %
4. The number of permanent employees on the rolls of the Company: 35
5. The explanation on the relationship between average increase in remuneration and Company performance:
Remuneration of employees has a close linkage with the performance of the Company. The Annual Performance Award (APA), which is a variable component in the remuneration for all the management staff, has direct correlation with the Companys performance. APA is calculated based on both individual and Company performance. Company performance has a higher weight age for senior positions and lower weightage for junior positions.
6. Affirmation that the remuneration is as per the Remuneration policy of the Company:
It is affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial Personnel and other employees, adopted by the Company.
|For and on behalf of the Board of Directors|
|Place: Mumbai||Managing Director|
|Date: 09th August, 2018||DIN:07314266|