Gangotri Textiles Ltd Directors Report.
Ladies and Gentlemen,
Your Directors present the 28th Annual Report of the Company along with the audited statement of accounts for the year ended 31st March 2017.
|Profit/Loss before interest, depreciation and tax||1,09,94,174||4,63,13,843|
|Net Profit / loss for the year before Tax||(53,02,382)||(32,89,67,683)|
During the year under review, the Company has effected only Trading Activities to meet out the day to day administrative expenses. As already stated , the Lenders have sold the entire Assets of the Company and adjusted the proceeds against the loan due from the company. Even after adjusting the entire sale proceeds against the loan , there remains huge amount to be settled by the company. Now, the company has zero assets with huge liability on hand. The Promoters are negotiating with the Banks for One Time Settlement and are expected to reach a settlement soon. LEGAL
1. M/s State Bank of India , Stressed Asset Management Branch, Coimbatore , as the leader of the consortium banks have filed Original Application in O.A 40 / 2013 against the company in the Debt Recovery Tribunal, Coimbatore for the recovery of outstanding dues of Rs 353,38,13,295 as on 1-3-2013 . This outstanding is exclusives of the dues to IDBI. The matter is sub-judice.
2. The company has filed Appeal against this in S.A 174 / 2013 before the Debt Recovery Tribunal, Coimbatore challenging the Original Application filed by State Bank of India.
3. M/s State Bank of India , Stressed Asset Management Branch , Coimbatore has filed a Writ Petition in W.P. No 24864 / 15 before the Honble Madras High Court , Chennai challenging that the Customs Department is not having a first charge on the properties put to e-auction under the Provisions of SARFAESI Act contending that the SARFAESI Act overrides the Customs Act on priority charge.
4. The Directorate of Revenue Intelligence, Coimbatore have also filed a Miscellaneous Petition in MP No 24864 / 15 praying to permit them to implead as 3rd Respondent in W.P 24864 / 15. The above matters are sub judice
5. The Directorate General of Foreign Trade , Coimbatore has passed orders on 20-1-2016 levying penalty to the extent of Rs 55,90,28,760/- due to non-fulfillment of Export Obligation in respect of 45 Licenses issued to the company. The Company has preferred an Appeal against this Order before the Deputy Directorate General of Foreign Trade, New Delhi. The matter is sub-judice.
6. The company has also received demand for Rs 1,53,77,000/- from the office of the Assistant Commissioner of Customs , Chennai due to nonfulfillment of Export Obligation in respect of 6 Licenses issued to the company.
Since the entire Assets have been sold, the company is having neither any machinery to fulfill the Export Obligation nor have any source of funds to pay the liability.
No dividend has been recommended for the Financial Year ended 31st March, 2017.
The total outstanding dues to the consortium of Lenders as on 31-3-2017 is more than Rs 200 crores including interest accrued but not paid. As stated in the last year Annual Report, the Lenders have realized a sum of Rs 191.05 crores by selling the entire Assets of the Company through e- auction. The Lenders have adjusted the sale proceeds against loan due from the company. Even after adjusting the said amount, the company owes huge sum to the Banks and the company is not having any assets to pay the balance dues. Now, the Promoters are negotiating with the Banks for One Time Settlement.
DEPOSITS Does not arise CORPORATE GOVERNANCE
A separate Report on the Corporate Governance is enclosed as part of this Annual Report. The Auditors of the Company have also given their certificate relating to compliance of Corporate Governance and this report is annexed to the report of Corporate Governance as is required by the Listing Agreement. LISTINGS
The companys shares are listed in National Stock Exchange of India Ltd , Mumbai Stock Exchange Ltd and The Calcutta Stock Exchange Ltd. The company has not paid listing fee to the above Exchanges. The company has already applied for de-listing of its equity shares to Calcutta Stock Exchange Ltd and the Orders are awaited.
EXTRACT OF THE ANNUAL RETURN
As per the requirements of provisions of the Companies Act, 2013, the extract of the Annual Return in the prescribed Form MGT-9 is annexed hereto as Annexure 1 forming part of this report.
NUMBER OF MEETINGS OF THE BOARD.
Details of number of meetings of Board of Directors and Committees thereof and the attendance of the Directors in such meetings are provided in the Corporate Governance Report attached elsewhere in the Annual Report.
Sri. A.R.Muralidhran was appointed as an Independent Director of the company in the Board Meeting held on 14-2-2017. He is a retired Bank Executive. He has submitted necessary declaration as provided under the Clause (7) of Section 152 of the Companies Act, 2013.
DIRECTORS RESPONSIBILTY STATEMENT.
In terms of the requirement of Section 134 (3) (c) of the Companies Act, 2013, the Directors hereby confirm:
1) that in the preparation of Annual Accounts, the applicable Accounting Standards have been followed along with proper explanations relating to material departures
2) that the Directors 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 at the end of the accounting year namely March 31,2017 and of the profit / loss of the Company for that period.
3) that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provision of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
4) that the Directors have prepared the Annual Accounts on a going concern basis.
5) the Directors have laid down internal financial controls to be followed by the company and such internal financial controls are adequate
6 the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and are operating effectively.
NOMINATION AND REMUNERATION COMMITTEE AND POLICY.
As per the requirements of the provisions of the Companies Act, 2013, a Nomination & Remuneration Committee was formed by the Board of Directors consisting of
I.Sri. N. Venkatesan - Chairman (Non-Executive - Independent) 2.Smt. M.V.Suryaprabha - Member (Non-Executive - Independent) 3.Sri. R.P.Joshua - Member (Non-Executive - Independent)
The said committee has been empowered and authorized to exercise the power as entrusted under the provisions of Section 178 of the Companies Act, 2013. The Company has a policy on Directors appointment and remuneration including criteria for determining qualification, positive attributes, independence of a Director and other matters provided under sub-section(3) of Section 178 of the Companies Act, 2013 .
DECLARATION BY 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 / continued as Independent Directors under the provisions of the Companies Act, 2013 and the relevant Rules there under.
EXPLANATION & COMMENTS
The reports of Statutory Auditors appearing elsewhere in the Annual Report and that of the Secretarial Auditors (annexed hereto) are self-explanatory PARTICULARS OF LOANS / GUARANTEE / INVESTMENTS Details as per the provisions of Section 186 of the Companies Act, 2013 is given under Notes to Financial Statements.
PARTICULARS OF CONTRACT WITH RELATED PARTY
All the transactions of the company with related parties are at arms length and have taken place in the ordinary course of business. Provisions of Section 188 of the Companies Act, 2013 is not applicable.
There is no material changes or commitments after closure of the financial year till the date of this report.
a) Statutory Auditors
M/s.M. Gangadhran & Co, Chartered Accountants, retires at the ensuing Annual General Meeting and they have given necessary certificate in terms of Section 139 of the Companies Act, 2013. They are entitled to be re-appointed. They have consented and confirmed their eligibility and desire to continue as Statutory Auditors of the Company.
b) Cost Auditor
c) Secretarial Auditor.
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 Mrs. V.M.Vennila , a Practicing Company Secretary to undertake the Secretarial Audit of the Company for the financial year 2016-17
13. AUDIT COMMITTEE
In pursuance of the applicable provisions of Section 177 of the Companies Act, 2013 a committee of Directors consisting of three Directors has been constituted as Audit Committee. The Directors who are the members of this committee are
1) Sri. N.Venkatesan - Chairman (Independent Director)
2) Sri. R.P.Joshua - Member (Nominee Director)
3) Smt .Suryaprabha - Member (Independent Director)
The Company Secretary shall act as the Secretary of the Audit Committee as well.
The Board has accepted the recommendations of the committee and there were no incidences of deviation from such recommendations during the financial year under review.
The company has devised a Vigil Mechanism in the form of a Whistle Blower Policy in pursuance of the provisions of Section 177 (10) of the Companies Act, 2013 . During the year under review, there were no complaints received under this mechanism.
STAKEHOLDERS RELATIONSHIP COMMITTEE In pursuance of the applicable provisions of Section 178 (5) of the Companies Act, 2013 a committee of Directors consisting of three Directors has been constituted as Stakeholders Relationship Committee. The Directors who are the members of this committee are
1) Sri. N.Venkatesan - Independent Director
2) Sri. Manoj Kumar Tibrewal - Managing Director
3) Sri. Mohanlal Tibrewal - Executive Director
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE In terms of the provisions of Section 135 of the Companies Act, 2013, a Corporate Social Responsibility Committee is to be constituted for the purpose of implementing the Corporate Social Responsibility. As on date, the Company does not come under the category of Companies who have to implement this scheme.
INDUSTRIAL RELATIONS Not Applicable
FOREIGN EXCHANGE EARNINGS AND OUTGO
EVALUATION OF BOARDs PERFORMANCE On the advise of the Board of Directors , the Nomination and Remuneration Committee , the company have formulated the criteria for the evaluation of the performance of Board of Directors Independent Directors, NonIndependent Directors and the Chairman of the Board. Based on that performance, evaluation has been undertaken. The Independent Directors have also convened a separate meeting for this purpose. All the results and the evaluation has been communicated to the Chairman of the Board of Directors. All the Directors of the Board are familiar with the business of the company.
Does not arise.
MATTERS AS MAY BE PRESCRIBED
As per Rule 8(5) of the Companies (Accounts) Rule, 2014 certain additional information are provided.
Does not arise.
Your Directors wish to thank and record their appreciation to all the Bankers and the employees of the company who stood with us during the difficult times.
|By Order of the Board|
|For GANGOTRI TEXTILES LIMITED|
|MANOJ KUMAR TIBREWAL|
|Place : Coimbatore Date : 13.5.2017||MOHANLAL TIBREWAL EXECUTIVE DIRECTOR|