Devhari Exports (India) Ltd Directors Report.
The Members of Company
Your Directors are pleased to present the 25th Annual Report on the business and operations of the Company and the accounts for the Financial Year ended March 31, 2019.
The financial performance of your Company for the year ended March 31, 2019 is summarized below:
(in Rs. Lakhs)
|Revenue from Operation||0.00||56.59|
|Less: Total Expenses||7.14||134.41|
|Profit Before Depreciation and Taxes||15.01||1.64|
|Profit Before Tax||14.97||1.56|
|Less: Current Tax||4.00||0.14|
|Net Profit for the year||10.97||1.42|
Overview of Companys financial performance
Stand Alone Picture: Net Revenue of the Company during the year under review reported by company is Rs. 22.15 Lakh as compare to the previous years Rs. 135.97 Lakh due to adverse market condition. The Company has earned Profit before Depreciation and taxes of Rs. 15.01 Lakh during the year under review as compared to profit of Rs. 1.64 Lakh during 2017-18.
The Authorised Share Capital of the Company is Rs 7,50,00,000/- (Rupees Seven Crore Fifty lakhs only) divided into 75000000 (Seven crore Fifty lakhs) Equity shares of Rs 1/- each. During the Financial year, the paid-up share capital of the Company is Rs. 7,42,83,377/- (Rupees Seven crore forty-two lakhs eighty-three thousand three hundred and seventy-seven only) divided into 74283377 (Seven crore forty-two lakhs eighty-three thousand three hundred and seventy-seven) equity shares of Rs. 1/- each.
As per observation of the Board of Directors for strengthening the position of the company no dividend is recommended for the financial year 2018-19.
The Company does not propose to transfer any amount to general reserve due to Inadequacy of Profit.
Change in Nature of Business
There was no change in the nature of business of the Company during the Financial Year ended March 31, 2019.
During the year under review, there has been not any company except JashDealmark Limited which was a subsidiary of our company in previous year also and the details of the same has provide below:
1. Companies which have been subsidiaries during the financial year 2018-19: NIL
2. Companies which ceased to be subsidiaries during the financial year 2018-19: NIL
In accordance with section 129(3) of the Companies Act, 2013, we have prepared consolidated financial statements of the Company including its subsidiaries, associate and joint venture companies, which form part of the Annual Report.
Further, a statement containing salient features of the financial statement of the Companys subsidiaries, associate and joint venture companies is annexed in Form AOC-1, which form a part of the Annual Report.
During the year under review, your Company has not accepted any deposit within the meaning of Sections 73 and 74 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 (including any statutory modification(s) or reenactment(s) for the time being in force).
Board of Directors
As on March 31, 2019, Your Company has an optimum mix of eminent personalities on the Board of Directors with members from diverse experience and expertise, out of 4 members on its Board 4 are Non-Executive Directors. Out of 5 Board members 1 Director is Promoter Non- Executive Director, 1 Professional Non-Executive Directors and 2 Non-Executive Directors are Independent Directors.
Appointments & Reappointments of Directors
In terms of Section 152 of the Companies Act, 2013, Mr. Shailendra Khona, Director being the longest in the office shall retire at the ensuing Annual General Meeting and being eligible for reappointment, offers himself for reappointment.
Resignation of Directors from Board
Ms. Zarna Solanki were resigned from the directorship of company w.e.f. 01/04/2018 respectively.
The Board met nine (7) times during the financial year ended on March 31, 2019 and as per section 173 of the Companies Act the time gap between any two Meetings has not been more than one hundred and twenty days. The dates on which the Board Meetings were held are April 26,2018, May 30, 2018, August 14, 2018, October 27, 2018, November 02, 2018, January 14,2019 and February 14, 2019.
As per the disclosure received, none of the Directors of your Company hold memberships /Chairmanships more than the prescribed limits across all companies in which he/she is a Director.
Your Company has several Committees which have been established as a part of best corporate governance practices and are in compliance with the requirements of the relevant provisions of applicable laws and statues.
The Board has constituted following Committees:
The Audit Committee comprises of Non-Executive Directors. The Committee met 4 times during the year on May 30, 2018, August 14, 2018, November 02, 2018 and February 14, 2019.
The Chief Financial Officer and Statutory Auditors are the regular invitees to the Committee Meetings. Other executives are invited as and when required. The Company Secretary of the Company is the Secretary of the committee.
Whistle Blower Policy (Vigil Mechanism)
The Company established the Whistle Blower Policy (Vigil Mechanism). In line with the best Corporate Governance practices, the Company has put in place a system through which the Directors or Employees may report concerns about Unethical and Improper Practices or Alleged Wrongful Conduct, without fear of reprisal. In the event a Director wish to raise a complaint or disclosure he/she shall consult Chairman of the Company and / or Chairman of the Audit Committee. In the exceptional cases, any Employee or Director can reach to the Chairman of the Audit Committee to report any Unethical or Improper Practices. Also no Employee has been denied access to the Audit Committee. The functioning of the vigil mechanism is being monitored by the Audit Committee from time to time.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee comprises of Non-Executive Directors. The Committee met 4 times during the year on April 26, 2018, August 14, 2018, November 02, 2018 and February 14, 2019.
Nomination and Remuneration Policy
In adherence to section 178(1) of the Companies Act, 2013, the Board of Directors of the Company approved a policy on directors appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided u/ s 178(3), based on the recommendations of the Nomination and Remuneration Committee. The broad parameters covered under the Policy are Company Philosophy, Guiding Principles, Nomination of Directors, Remuneration of Directors, Nomination and Remuneration of the Key Managerial Personnel, Key-Executives and Senior Management and the Remuneration of Other Employees.
The formal annual evaluation of the performance of the Board and that of its Committees and Individual Directors including Chairman has been carried out by Nomination and Remuneration Committee and Board of Directors of the Company at their Meeting in the manner prescribed. The criteria of the Board evaluation include Board composition, talents, experience and knowledge, presentations and discussions at the Board Meeting, frequency of the Board Meeting, feedback and suggestion given to the management, participation in the discussion etc. Further, the Independent Directors, at their exclusive meeting held during the year reviewed and evaluated the performance of Non-Independent Directors including Chairman of the Company and the Board as a whole, after taking views of the Executive and Non-Executive Directors.
Particulars of Remuneration
The ratio of the remuneration of each director to the median employees remuneration and other details in terms of Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are forming part of this report as Annexure A.
The statement containing particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, will be available for inspection at the Registered office of the Company during working hours and any member interested in obtaining such information may write to the Company Secretary.
However, this report and the accounts are being sent to the Members excluding the said information in terms of Section 136 of the Act.
Stakeholders Relationship Committee
The Stakeholders Relationship Committee comprises of 3 Non-executive Directors.
The constitution of the Stakeholders Relationship Committee of the Board of Directors of your Company along with the details of the attendance of the members at the meetings.
The Committee constituted to hear the complaint and grievances of various securities holders so as ensure that timely relief is extended to securities holders including members in respect of their complaint. Additionally, the Committee also looks into the members complaints, if any, related to non-receipt of balance sheet, non-receipt of declared dividend etc. and redress the same expeditiously.
Declaration by Independent Director(s) and re-appointment, if any
Your Company has received declarations from all the Independent Directors confirming that they meet with the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 and under Regulation 16 (1) (b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Further, pursuant to Section 164(2) of the Companies Act, 2013, all the Directors have provided declarations in Form DIR- 8 that they have not been disqualified to act as a Director.
Code of Conduct
The Board of Directors has laid down a Code of Conduct applicable to the Board of Directors and Senior Management. All the Board Members and Senior Management personnel have affirmed compliance with the code of conduct.
Directors Responsibility Statement
Pursuant to requirement under Section 134 (5) of the Companies Act, 2013 (Act), Directors, confirm that:
a) in the preparation of the annual accounts for the year ended on March 31, 2019, the applicable accounting standards read with requirement set out under Schedule III to the Act, have been followed and there are no material departures from the same;
b) they 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, 2019 and of the profit or loss of the Company for that year;
c) they 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) they had prepared the annual accounts on a going concern basis;
e) 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) they had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
Particulars of Loans, Guarantees or Investments under section 186
Particulars of loans, investments, guarantees and securities pursuant to section 186 are provided in the standalone financial statements (Please refer to Notes to the Financial Statements).
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 the Companies (Management and Administration) Rules, 2014 the extract of the Annual Return as at March 31, 2019 forms part of this report as Annexure B.
Disclosure under Section 22 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
Your Company has zero tolerance towards any action on the part of any executive which may fall under the ambit of Sexual Harassment at workplace and is fully committed to uphold and maintain the dignity of every women executive working in your Company. The Sexual Harassment Policy provides for protection
against sexual harassment of women at workplace and for prevention and redressal of such complaints. During the year under review, there were no complaints pending as on the beginning of the financial year and no new complaints were filed during the financial year under review.
Auditors and Auditors Report
M/s. Hemant C Parikh & Co., Chartered Accountants, Ahmedabad, were appointed as statutory auditors of the Company to hold office till the conclusion of the twenty fifth (25th) Annual General Meeting. In terms of the first proviso to Section 139 of the Companies Act, 2013, the appointment of the auditors shall be placed for ratification at every Annual General Meeting. Accordingly, ratification of appointment of Statutory Auditor is being sought from the Members of the Company at the ensuing AGM.
Statutory Auditor comments on your Companys accounts for year ended March 31, 2019 are self-explanatory in nature and do not require any explanation as per provisions of Section 134(3)(f) of the Companies Act, 2013. There were no qualifications, reservation or adverse remark or disclaimer made by Statutory Auditor in its report.
Pursuant to the Provisions of Section 204 of the Companies Act, 2013, your Company had appointed CS Mayuri Rupareliya Practicing Company Secretary, as its Secretarial Auditor to conduct the Secretarial Audit of your Company for FY 2018-19. The Report of the Secretarial Auditor for the FY 2017-18 is annexed to this report as Annexure C.
Significant or Material Orders against Company
No significant or material orders were passed by the regulators or courts or tribunals impacting the going concern status and your Companys operation in future.
Internal financial control systems and their adequacy
Internal Financial Controls are an integrated part of the risk management process, addressing financial and financial reporting risks for ensuring the orderly and efficient conduct of business, including adherence to the Companys policies, the safeguarding of assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures.
Assurance on the effectiveness of internal financial controls is obtained through management reviews, control self-assessment, continuous monitoring by functional experts as well as testing of the internal financial control systems. We believe that these systems provide reasonable assurance that our internal financial controls are designed effectively and are operating as intended.
Management discussion and analysis
As per Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate section on Management Discussion and Analysis outlining the business of your Company forms part of this Annual Report.
Particulars of Contracts or arrangements with related parties
With reference to Section 134 (3) (h) of the Companies Act, 2013, no contracts and arrangements with related parties under Section 188(1) of the Act, entered by the Company during the Financial Year.
Report on Corporate Governance is not forming the part of this annual report as the company need not required mandatorily to comply with the provisions of Regulations 15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Although relevant information is provided in this Directors report.
Conservation of Energy & Technology absorption and foreign exchange inflow & outflow
The details of conservation of Energy, technology absorption etc. are required to be given under section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, is not given as the Company has not taken any major steps to conserve the energy etc. There was no foreign exchange earnings and outgo during the financial year 2017-18 (Previous year Nil)
Your Directors state that the Company has made disclosures in this report for the items prescribed in section 134 (3) of the Act and Rule 8 of The Companies (Accounts) Rules, 2014 and other applicable provisions of the act and listing regulations, to the extent the transactions took place on those items during the year. Your Directors further state that no disclosure or reporting is required in respect of the following items as there were no transactions required on these items during the year under review;
i. Issue of Equity Shares with differential rights as to dividend, voting or otherwise;
ii. Issue of shares (including sweat equity shares) to employees of the Company under any scheme like ESOP and ESOS;
iii. There is no revision in the Board Report or Financial Statement;
iv. Annual Report and other compliances on Corporate Social Responsibility;
Your Directors take this opportunity to thank all the financial institutions, Banks, Government and Regulatory Authorities, customers, vendors and members and all other stakeholders for their continued support.
Your Directors place on record their deep appreciation to employees at all levels for their hard work, dedication and Commitment. The enthusiasm and unstinting efforts of the employees have enabled your Company to remain as one of the top industry leader.
|For, DEVHARI EXPORTS (INDIA) LIMITED|
|Bhavesh D. Shah||JigneshThobhani|
|Date: September 02, 2019||Director||Director|
|Place: Jamnagar||DIN: 05304222||DIN: 07702512|