Dhoot Industrial Finance Ltd Directors Report.
For the financial year 1st April, 2018 to 31st March, 2019
The Members of DHOOT INDUSTRIAL FINANCE LIMITED
Your Directors have pleasure in presenting the 41st Annual Report on the business and operations of the Company together with the Audited Accounts for the year ended 31st March, 2019.
1. Financial summary/highlights and state of Companys affairs.
During the said financial year:
The turnover of the Company is INR 2,957.56 Lakhs as against INR 3,109.66 Lakhs for the last year.
The net profit of the Company is INR 104.44 Lakhs as against net loss of INR 415.47 Lakhs for the last year.
2. Change in the nature of Business, if any:
During the year in review, there was no change in the nature of business of the Company.
3. Board Meetings.
The Board of the Company consists of Directors as prescribed by the Companies Act, 2013 and the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.
The details pertaining to composition of the Board, terms of reference, etc. of the Board of Directors of your Company and the meetings of the Board held during the financial year and the attendance thereat have been mentioned in the Corporate Governance section forming part of this Annual Report.
4. Audit Committee.
The Company has an Audit Committee in place, constituted as per the provisions of Section 177 of the Companies Act, 2013. The members of the Audit Committee, its terms of reference, the meetings of the Audit Committee and attendance thereat of the members of the Committee is mentioned in the Corporate Governance Report under the appropriate heading.
The Board does not propose to carry any amount to reserves for the said financial year.
Your Directors do not recommend any dividend for the year with a view to conserve the resources for future growth of the Company.
7. Particulars of loans and investment and utility purpose by the recipient under section 186.
Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient are provided in the standalone financial statement (Please refer to Note 4 and 5 to the standalone financial statement).
8. Particulars of contracts or arrangements with related parties under Section 188(1).
There were no contracts or arrangements with related parties referred to Section 188(1). Hence, not applicable.
9. Details of Directors or Key Managerial Personnel who were appointed or have resigned during the year.
During the year, Mr. Rajgopal Ramdayal Dhoot was liable to retire by rotation and was re-appointed in the 40th AGM.
10. Policy on Directors appointment, remuneration and others as formulated by the Nomination
& Remuneration Committee.
The Nomination & Remuneration Committee has formulated the following policy:
a. Directors appointment and remuneration: As best suited for Companys business and in accordance with the applicable law.
b. Criteria for determining qualifications, positive attributes and independence of a Director: As per the Companies Act, 2013.
c. Remuneration for key managerial personnel and other employees: At present Non-Executive and Independent Directors are not paid any remuneration except sitting fees for attending Board Meetings. The Managing Director and the Key Managerial Personnel is paid remuneration as per the terms of their appointment.
11. Statement on declaration given by Independent Director(s) under Section 149
The Board confirms that all the Independent Directors on the Board have given a declaration of their Independence to the Board as required under Section 149(6) of the Companies Act, 2013.
12. Formal annual evaluation.
The Board of Directors has devised a policy for the performance evaluation and accordingly evaluation process was carried for the financial year for Board of Directors, Board Committees, Independent Directors and other individual Directors.
13. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo.
|Particulars||Reporting for the said financial year|
|A.||Conservation of energy|
|i.||Steps taken or impact on conservation of energy||Wherever possible, the Company strives to curtail the energy consumption on a continuous basis|
|ii.||Steps taken for utilising alternate sources of energy||Nil|
|iii.||Capital investment on energy conservation Equipments||Not Applicable|
|i.||Efforts made towards technology absorption||Not Applicable|
|ii.||The benefits derived like product improvement, cost reduction, product development or import substitution||Not Applicable|
|iii.||Imported technology (imported during last three years reckoned from the beginning of the financial year)|
|a.||the details of technology imported||Not Applicable|
|b.||the year of import||Not Applicable|
|c.||whether the technology has been fully absorbed||Not Applicable|
|d.||if not fully absorbed, areas where absorption has not taken place, and the reasons thereof||Not Applicable|
|iv.||Expenditure incurred on research and development||Not Applicable|
|C.||Foreign exchange earnings and outgo|
|a.||The foreign exchange earned in terms of actual inflows during the year||NIL|
|b.||The foreign exchange outgo during the year in terms of actual outflow||Travelling expenses - INR 11.61 Lakhs|
14. Details on deposits covered under Chapter V of the Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014.
In terms of the provisions of Sections 73 and 74 of the Companies Act, 2013, read with the relevant rules, your Company has not accepted any fixed deposits duringthe year under report.
15. Details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Companys operations in future.
During the year in review, no significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status and Companys operations in future.
16. Other Company/ies which have become or ceased to be Companys subsidiaries, joint ventures or associate companies.
Not Applicable as the company has no subsidiaries, joint ventures or associates.
17. Performance and financial position of each of the subsidiaries, associates and joint venture Companies included in the consolidated financial statement.
The company has no subsidiary or associate company or any joint venture to be included in the consolidated financial statement of the Company.
18. Extract of annual return.
The extract of the annual return is annexed here, in Form MGT-9, at Annexure I.
19. Disclosure on Remuneration.
None of the employees of the Company fall within the purview of the provisions of the Companies Act, 2013, read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 hence, no information is required to be disclosed.
20. Material changes between the period 31/03/2018 and 27/05/2019.
There was no material change in the Company between the period 31/03/2019 and 27/05/2019.
21. Details in respect of adequacy of internal financial controls with reference to the financial statements.
The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weakness in the design or operation was observed.
22. Risk management policy.
Your company does not find a place in the list of top 500 listed entities, hence it does not have a Risk Management Committee.
23. Vigil mechanism.
The Company has established vigil mechanism for directors and employees to report genuine concerns, to provide for adequate safeguards against victimisation of employees and directors who avail of the vigil mechanism and provides for direct access to Mr. Rajesh Loya- Chairperson of the Audit Committee in exceptional cases. The details of establishment of such mechanism have been disclosed on the website of the Company.
24. Statutory Auditors.
M/s Bohra & Co., Chartered Accountants (Firm Reg. No. 136492W) being eligible, offer themselves for ratification of their appointment for the year 2019-2020. Your Directors recommend their ratification until the conclusion of the 42nd Annual General Meeting of the Company.
25. Secretarial Audit Report.
The Secretarial Audit Report as given by Ms. Isha Shah of M/s. Shah Patel & Associates - Company Secretaries (Membership No. 35253 & COP No. 15201), is enclosed herewith in Form MR-3 at Annexure II.
26. Explanation/ Comments by the Board on qualification, reservation or adverse remark or disclaimer made in Auditors Report and Secretarial Audit Report.
There are no qualifications, reservations or adverse remarks by the Statutory Auditors and by the Secretarial Auditors of the Company.
27. Details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government
The Auditors have not reported any fraud(s) during the period under review.
28. Disclosure about Corporate Social Responsibility
Corporate Social Responsibility is not applicable for your company since the Company has incurred loss in the immediately preceding Financial Year.
29. Directors responsibility statement.
Your Directors confirm that:
a. In the preparation of the annual accounts, the applicable accounting standards had been followed and there were no material departures;
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 true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for 2018-19;
c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.
d. The Directors had prepared the annual accounts on a going concern basis; and
e. The Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.
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
30. Disclosure regarding Sexual Harassment at workplace
The disclosures regarding Sexual Harassment at workplace form a part of Corporate Governance Report.
31. Changes in Share Capital
The paid-up share capital of the Company has been increased from INR 5,70,40,000 to INR 6,00,30,000 during the year under review pursuant to conversion of 2,99,000 Warrants into Equity Shares of Rs. 10/- each at a premium of INR 43 each under conversion of warrants issued by the Company.
Your Directors wish to place on record its appreciation to the Staff, Executives, Companys Bankers, Auditors and Government Authorities for their co-operation, guidance and support.
|For & on behalf of the Board|
|Dhoot Industrial Finance Limited|
|Place: Mumbai||Rajgopal Dhoot|
|Date: 27th May, 2019||Chairman|