Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Your Directors are hereby presenting their 33rd Annual Report on the affairs of the Company together with the Audited Statement of Accounts for the year ended 31st March, 2019.
|(र in lakhs)||(र in lakhs)|
|Profit/(Loss) before Finance Cost, Depreciation, Tax||(658.96)||(409.88)|
|Profit/(Loss) before Depreciation||(1,338.10)||(1,129.70)|
|Prior Years Tax Adjustments||(2.47)||(10.76)|
|Deferred Tax Charged/(Credit)||(18.91)||(100.21)|
|Profi1/(Loss) for the year||(1,707.38)||(1,417.19)|
|Balance brought forward from previous year||(1,950.80)||(533.61)|
|Balance Carried to Balance Sheet||(3,658.18)||(1,950.80)|
During the year, revenue from the operations of the Company is र19,675.05 Lakhs as compared to र25,205.16 Lakhs in the previous year. The operating loss of the Company is र658.96 Lakhs as against operating loss of र409.88 Lakhs in the previous year. The loss after finance cost and depreciation is र1,728.76 Lakhs as against the loss of र1,528.16 Lakhs in the previous year.
The Board has decided not to recommend any dividend for the financial year 2018-19.
The paid up Equity Share Capital as on 31st March, 2019 was र8,74,98,650.
MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY
The Plant E-23 is not in operation from 25th March, 2019 to till date, which has affectd the Financial Position of the Company.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
In accordance with the provisions of Section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, required information relating to the Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo is given in "Annexure A" to the Directors Report.
In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Shri Narayan Patodia (DIN: 00013122) retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. Accordingly, his reappointment forms part of the Notice of the ensuing Annual General Meeting.
The Company has received declarations from all the Independent Directors of the Company, confirming that they meet the criteria of Independence as prescribed under the sub-section (7) of Section 149 of the Companies Act, 2013.
The tenure of 5 years of Shri Dilip Keshavlal Patel (DIN: 00013150) as an Independent Director of the Company has come to an end on 31st March, 2019. He has not considered the second term of 5 years as an Independent Director. Hence, he ceases to be a Director of the Company w.e.f.31st March, 2019.
Based on the recommendation of the Nomination & Remuneration Committee, the Board of Directors at their meeting held on 25th May, 2019, had appointed Shri Ashwinikumar L. Dave (DIN:00126187) as an Additional Independent Non-Executive Director of the Company. Pursuant to the provisions of Section 161 of the Act, Shri Ashwinikumar L. Dave holds office till the date of the ensuing Annual General Meeting and is eligible for appointment. A Resolution in this behalf is set out at Item No. 4 of the Notice of Annual General Meeting, for Members approval.
DIRECTORS RESPONSIBILITY STATEMENT
As required by Section 134 (3) (c) of the Companies Act, 2013, your Board of Directors hereby state:
(a) that in the preparation of the Annual Accounts for the year ended 31st March, 2019, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
(b) that such accounting policies as mentioned in the Notes to the Financial Statements have been selected and applied them consistently and 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 31st March, 2019 and of the Profit & Loss of the Company for the year ended on that date;
(c) that the Directors have taken proper and sufficient care for 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 the annual accounts have been prepared on a going concern basis;
(e) that Directors have laid down Internal Financial Controls to be followed by the Company and such Internal Financial Controls are adequate and operating effectively; and
(f) that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
Pursuant to the provisions of the Companies Act, 2013, the Board has carried out an Annual Performance evaluation of its own performance, the Directors individually as well as the evaluation of the working of its various Committees.
Pursuant to Regulation 25 (4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate exercise was carried out by Independent Directors at their separate meeting to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgement, safeguarding the interest of the Company and its minority shareholders etc.
The performance evaluation of the Independent Directors was carried out by the entire Board excluding the Directors being evaluated.
During the year, four Board Meetings were convened and held, the details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.
POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION
The Companys policy on Directors Appointment and Remuneration including criteria for determining qualifications, positive attributes, independence of a Director and other matters provided under sub-section (3) of Section 178 is annexed hereto and forms a part of this report.
AUDITORS Statutory Auditors
The Statutory Auditors M/s. SVP & Associates, Chartered Accountants (Firms Reg. No. 003838N), were appointed as the Statutory Auditors for a term of five years at 31st Annual General Meeting of the Company till the conclusion of 36th Annual General Meeting of the Company.
As per the requirement of Central Government and pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, your Company has been carrying out audit of Cost Records relating to Textile.
The Board of Directors, on the recommendation of the Audit Committee, has appointed M/s. A. G. Anikhindi & Co., Cost Accountants, as Cost Auditor to audit the Cost Accounts of the Company for the financial year 2019-20.
As required under the Companies Act, 2013, a Resolution seeking shareholders approval for the remuneration payable to the Cost Auditor, forms part of the Notice convening the Annual General Meeting for their approval.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board has appointed M/s. S. K. Jain & Co., Practising Company Secretary to conduct Secretarial Audit of the Company for the financial year 2019-20.
AUDITORS AND REPORTS
The matters related to Auditors and their Reports are as under:
1. Report of Statutory Auditor:
The Report given by the Statutory Auditors for the Financial Statements for the year ended 31st March, 2019 read with explanatory notes thereon do not call for any explanation or comments from the Board under Section 134 (3) of the Companies Act, 2013.
2. Report of Secretarial Auditor:
M/s. S. K. Jain & Co., Practicing Company Secretary, was appointed to conduct Secretarial Audit of the Company for the financial year 2018-19 as required under Section 204 of the Companies Act, 2013 and the Rules thereunder. The Secretarial Audit Report for the financial year 2018-19 forms part of the Annual Report as "Annexure B" to the Boards Report. The said report does not contain any observation or qualification requiring explanation or comments from the Board under Section 134 (3) of the Companies Act, 2013.
The Company has complied with all the mandatory requirements of Corporate Governance, as stipulated in Regulation 27 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A seperate report on Corporate Governance and a Certificate from M/s. SVP & Associates, Statutory Auditors, regarding compliance with the conditions of Corporate Governance is given in a separate section and forms part of the Annual Report.
The Board has well-qualified Audit Committee with majority of Independent Directors including Chairman. They possess sound knowledge on Accounts, Audit, Finance, Taxation, Internal Controls etc. The details of the Composition of the Audit Committee are given in the Corporate Governance Report.
The Company Secretary of the Company acts as Secretary to the Committee.
During the year, there are no instances where the Board had not accepted the recommendations of the Audit Committee.
NOMINATION & REMUNERATION COMMITTEE & POLICY
The Company has duly constituted Nomination & Remuneration Committee to align with the requirements prescribed under the provisions of Section 178 of the
Companies Act, 2013 and Regulation 19 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The details of the Composition of the Nomination & Remuneration Committee are given in the Corporate Governance Report.
The Board has framed a policy for selection and appointment of Directors, Senior Management and their Remuneration. The policy provides for determining qualifications, positive attributes and independence of a Director.
The Company has laid down the procedures to inform the Board about the risk assessment and minimization procedures and the Board has formulated Risk Management policy to ensure that the Board, its Audit Committee and its Executive Management should collectively identify the risks impacting the Companys business and document their process of risk identification and risk minimization as a part of a Risk Management policy/strategy.
The common risks inter alia are: Regulations, Credit Risk, Foreign Exchange and Interest Risk, Competition, Business Risk, Technology Obsolescence, Investments, Retention of Talent and Expansion of Facilities etc. Business Risk, inter- alia, further includes financial risk, political risk, legal risk, etc. The Board reviews the risk trend, exposure and potential impact analysis and prepares risk mitigation plans, if necessary.
CORPORATE SOCIAL RESPONSIBILITY(CSR)
The Company is not required to contribute towards CSR under Section 135 of the Companies Act, 2013 read with Rules thereunder.
The Board of Directors of your Company, however, has constituted a CSR Committee. The details of the Composition of the Corporate Social Responsibility Committee are given in the Corporate Governance Report.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations.
Based on the report of Internal Audit function, corrective actions are undertaken in the respective areas and thereby strengthen the controls. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board.
During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
In line with the best Corporate Governance practices, Company has put in place a system through which the Directors and Employees may report concerns about unethical behaviour, actual or suspected fraud or violation of the Companys Code of Conduct & Ethics without fear of reprisal. The Employees and Directors may report to the Compliance Officer and have direct access to the Chairman of the Audit Committee. The Whistle Blower Policy is hosted on the website of the Company i.e. www. eurotexgroup. com
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMAN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Woman at Workplace (Prevention, Prohibition and Redressal) Act, 2013. All woman employees (permanent, contractual, temporary and trainee) are covered under this Policy.
The following is a summary of Sexual Harassment complaints received and disposed off during the year:
a) No. of Complaints received: Nil
b) No. of Complaints disposed off: Nil
DISCLOSURE UNDER SECTION 197 (12) OF THE COMPANIES ACT, 2013
Disclosures pertaining to remuneration and other details as required under 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 given below:
a. atio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year:
|Name of Director||Ratio to Median emuneration|
|Shri K. K. Patodia||33.44|
|Shri Narayan Patodia||12.40|
|Shri Rajiv Patodia||11.80|
b. Percentage increase in remuneration of each Director, Chief Executive Officer, Chief Financial Officer, Company Secretary in financial year:
|Name of Person||Designation||increase in remuneration in financial year|
|Shri K. K. Patodia||Chairman and MD||-|
|Shri Narayan Patodia||Managing Director||-|
|Shri Rajiv Patodia||Executive Director||-|
|Shri Rahul Rawat||Company Secretary||8.42|
c. Percentage increase in the : edian remuneration of employees in the financial year:
d. The number of permanent employees on the rolls of the Company:
e. Average percentile increase already made in the salaries of employees other than the managerial personnel in t e last financial year a its comparison with the percentile increase in the
a gerial remuner tion and justificati thereof and point out if there are any exceptional circumstances for increase in the ma agerial remuneration:
However, during the course of the year, the total increase is approximately 8.08%, after accounting for promoters and other event based compensation revisions. Increase in the managerial remuneration for the year
f. Affimiation that the re uneration is as per the remuneration policy of the Company:
The Company affirms remuneration is as per the remuneration policy of the Company.
A statement comprising the names of top 10 employees in terms of remuneration drawn and every person employed throughout the year, who were in receipt of remuneration in terms of Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed herewith as "Annexure C" and forms an integral part of this Report.
The above Annexure is not being sent along with this Annual Report to the Members of the Company in line with the provision of Section 136 of the Companies Act, 2013. The aforesaid Annexure is available for inspection by Shareholders at the Registered Office of the Company, 21 days before and up to the date of the ensuing Annual General Meeting during the business hours (working days) of the Company.
None of the employees listed in the said Annexure is a relative of any Director of the Company. None of the employees hold (by himself or along with his/her spouse and dependent children) more than two percent of the equity shares of the Company.
PARTICULAR OF LOANS, GUARANTEES OR INVESTMENTS
During the year under review, the Company has not given any loans and guarantees. Details of Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
RELATED PARTY TRANSACTIONS
All Related Party Transactions that were entered into during the financial year were on an arms length basis and were in the ordinary course of business. There are no materially significant Related Party Transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large and hence, enclosing of Form AOC-2 is not required. All Related Party Transactions are placed before the Audit Committee as well as the Board for approval. Prior omnibus approval of the Audit Committee is obtained for the transactions which are of a foreseen and repetitive nature. The transactions entered into pursuant to the omnibus approval so granted are audited and a statement giving details of all Related Party Transactions is placed before the Audit Committee and the Board of Directors for their approval on a quarterly basis. The Company has developed a Related Party Transactions Policy for the purpose of identification and monitoring of such transactions.
The policy on Related Party Transactions as approved by the Board is available on the Companys website at www. eurotexgroup.com
MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to Regulation 34 (2) (e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion & Analysis Report for the year under review is given under a separate section and forms part of the Annual Report.
The Company has not accepted or renewed any amount falling within the purview of provisions of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 during the year under review. Hence, the requirement for furnishing of details of deposits which are not in compliance with the Chapter V of the Act is not applicable.
EXTRACT OF ANNUAL RETURN
Pursuant to the provisions of Section 134 (3) (a) of the Companies Act, 2013, Extract of the Annual Return for the financial year ended 31st March, 2019 made under the provisions of Section 92 (3) of the Companies Act, 2013 in Form MGT - 9 is annexed herewith as "Annexure D".
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
During the Financial Year 2018-19, there were no significant or material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and operations of the Company in the future.
COMPLIANCE WITH SECRETARIAL STANDARDS
Your Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Board and General Meetings.
REPORTING OF FRAUDS
There were no frauds reported by the Statutory Auditors under provisions of Section 143(12) of the Companies Act, 2013 and Rules made thereafter.
Your Directors wish to place on record their appreciation and thankful acknowledgement for valuable assistance the Company received from all Employees, Customers, Agents, Suppliers, Investors and Lending Bankers.
|On behalf of the Board|
|Place : Mumbai||Chairman and Managing Director|
|Date : 25th May, 2019|