Himalaya Granites Ltd Directors Report.

Dear Shareholders,

Your Directors have the pleasure in presenting the 32nd Annual Report on the business and operations of the Company and the Audited Financial Statements of the Company for the financial year ended March 31, 2020.

1. FINANCIAL HIGHLIGHTS (Amount in )

Particulars 2019-20 2018-19
Revenue from Operations 58,11,250 55,12,500
Other Income 2,54,628 21,92,306
Profit/(Loss) before Finance Cost, Depreciation & Amortization Expenses and (3,79,61,395) 12,75,018
Tax Expenses
Less : Finance Cost - -
Less : Depreciation & Amortization Expenses 11,97,185 12,68,883
Profit/(loss) before tax (3,91,58,580) 6,135
Less: Provision for Taxation - -
Profit/(loss) for the year (3,91,58,580) 6,135
Add: Other Comprehensive Income (Net of Taxes) 9,378 (64,862)
Total Comprehensive Income (Net of Taxes) (3,91,49,202) (58,727)
Balance brought forward from earlier years (3,75,25,808) (3,74,67,081)
Balance carried to Balance sheet (7,66,75,010) (3,75,25,808)

2. STATE OF AFFAIRS OF THE COMPANY AND FUTURE OUTLOOK

During the year under review, your Company continued to let out part of its factory sheds and office space. During the financial year 2019-20, your Company posted total Income of 60,65,878/- as against 77,04,806/- in the financial year 2018-19. The Company reported a loss of 3,91,58,580/- (before other comprehensive income) during the financial year 2019-20 as against post-tax profit of 6,135/- (before other comprehensive income) in the financial year 2018-19. The Company has made provisions of 3,80,31,357 during the financial year 2019-20, against the outstanding Loan given to other body corporate (including interest receivable thereon till the FY 2018-19). Keeping in view the doubtful nature of receipt of the said amount, your management decided not to account for the interest on such loan from the FY 2019-20 onwards. Your Directors are exploring avenues for the growth of the Company and are hopeful of improving the operations of the Company in near future.

3. DIvIDEND

Considering the losses incurred by the Company in the current financial year and accumulated losses, your Directors have not recommended any dividend for the financial year under review.

4. subsidiaries and its performance

Your Company had no subsidiaries, Joint Venture or Associate Company during the year under review.

5. transfer to general reserve

In view of the losses during the financial year ended March 31, 2020, no amount is proposed to be transferred to the General Reserve.

6. IMPACT OF COVID-19 PANDEMIC

Due to the COVID-19 outbreak, the Offices of the Company were closed in line with the Governments directives and employees of the Company were advised to work from home. The Employees of the Company have resumed working from offices in adherence to the safety norms as issued by the Government from time to time.

The Company earns its major revenues from rental activities. Considering the nature of business of the Company, there is no major impact of the COVID 19 pandemic on the business operations of the Company. None of the assets of the Company has been impacted or impaired. However, the recovery of an outstanding Loan given to other body corporate (including accrued interest thereon) seems doubtful to the Company and accordingly the Company has made necessary provisions for the same for the financial year ended March 31, 2020.

7. BOARD OF DIRECTORS

During the financial year 2019-20, Mr. Beni Gopal Saraf [DIN: 00267858], Independent Director of the Company expressed his unwillingness for being reappointed as Independent Director and completed his tenure on conclusion of the 31st Annual General Meeting held on 27.09.2019. Further, Mr. Shalabh Jalan [DIN: 01089278] was appointed as Independent Director of the Company effective from 30.08.2019. There was no other change in the composition of Board of Directors of the Company.

For the financial year 2019-20, the Company has received declarations from all the Independent Directors viz. Mr. Mahesh Kumar Malpani [DIN: 02603222], Mr. Beni Gopal Saraf [DIN: 00267858] and Mr. Shalabh Jalan [DIN: 01089278] confirming that they meet the criteria of independence as prescribed under sub-section (6) of Section 149 of the Companies Act, 2013 and Regulation 16 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Ramesh Kumar Haritwal [DIN: 01486666], Managing Director & CEO of the Company, will retire by rotation at the ensuing Annual General Meeting (AGM) and being eligible offers himself for re-appointment. The Board recommends his re-appointment at the ensuing AGM.

None of the Directors of your Company are disqualified from being appointed as a director under the provisions of Section 164(2)(a) & (b) of the Companies Act, 2013.

All the Independent Directors of the Company have complied with the requirement of inclusion of their names in the Data bank of Independent Directors maintained by Indian Institute of Corporate Affairs.

Further, in the opinion of Board of Directors, the Independent Directors of the Company appointed/ re-appointed during the financial year 2019-20 are persons of integrity and possess relevant expertise and experience.

8. CHANGES IN SHARE CAPITAL

During the year under review, there was no change in the share capital of the Company. However, equity shares of the Company were sub-divided from face value of 10/- each to face value of 5/- each and accordingly the number of equity shares in the authorised share capital were sub-divided from 40,00,000 equity shares of 10/- each to 80,00,000 equity shares of 5/- each. Also issued, subscribed and fully paid-up equity shares of the Company have been sub-divided from 23,16,784 of 10/- each to 46,33,568 of 5/- each.

9. KEY MANAGERIAL PERSONNEL

The details of the Key Managerial Personnel of the Company are provided as under:

1. Mr. Ramesh Kumar Haritwal (Managing Director & CEO)

2. Mr. Jayasankar Ramalingam (Chief Financial Officer)

3. Mr. Hariom Pandey (Company Secretary)

During the financial year 2019-20, there was no change in the Key Managerial Personnel of the Company.

10. meetings of the board

During the financial year 2019-20, six (6) meetings of the Board of Directors of the Company were held on May 29, 2019, August 14, 2019, August 30, 2019, October 18, 2019, November 11, 2019 and February 13, 2020. The

composition of the Board of Directors and their attendances at the Board Meetings held during the financial year 2019-20 were as below:

Name of the directors and director Identification Number [Din] Category of directorship

No. of Board Meetings

Held Attended
Mr. Ramesh Kumar Haritwal [DIN:01486666] Managing Director & CEO 6 6
Mr. Mahesh Kumar Malpani [DIN:02603222] Non-Executive- Independent Director 6 6
Mr. Beni Gopal Saraf* [DIN:00267858] Non-Executive- Independent Director 3 3
Mr. Shalabh Jalan# [DIN:01089278] Non-Executive- Independent Director 3 3
Ms. Mathangi Ramanujam[DIN: 07095686] Non-Executive Director 6 6

* Mr. Beni Gopal Saraf, completed his tenure as Director on the conclusion of 31st AGM held on September 27, 2019.

# Mr Shalabh Jalan, appointed as Director of the Company effective from August 30, 2019.

11. PERFORMANCE EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and Regulation 25(3)&(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Independent Directors in their meeting held on February 13, 2020 have evaluated the performance of Non-Independent Directors after considering the views of the Executive and Non-Executive Directors, Board as a whole and assessed the quality, quantity and timeliness of flow of information between the Companys Management and the Board. The Nomination and Remuneration Committee has also carried out evaluation of performance of every Director of the Company. On the basis of evaluation made by the Independent Directors and the Nomination and Remuneration Committee and by way of individual and collective feedback from the Non-Independent Directors, the Board has carried out the Annual Performance Evaluation of the Directors individually as well as evaluation of the working of the Board as a whole and Committees of the Board.

The criteria for evaluation are outlined below:

a. For Independent Directors:

- Knowledge and skills

- Professional conduct

- Duties, role and functions

- Compliance with Code of Business Ethics and Code of Conduct of the Company

- Rendering independent and unbiased opinion and judgements

- Attendance and active participation in meetings of Board and Committees of the Board and Members of the Company

- Assistance in implementing corporate governance practices

- Updation of skills and knowledge

- Information regarding external environment

- Raising of concerns, if any, to the Board

- Study of agenda in depth prior to Meeting

- Contribution towards the formulation and implementation of strategy for achieving the goals of the Company

b. For Executive & Non-Executive Directors:

- Performance as Team Leader/Member

- Evaluating business opportunity and analysis of Risk Reward Scenarios

- Professional conduct and Integrity

- Sharing of Information with the Board

- Attendance and active participation in the Board and Committee of the Board and Meetings of Members of the Company

- Whether difference of opinion was voiced in the meeting

- Whether Executive Directors were able to answer the queries raised by Independent Directors

- Compliance with Code of Business Ethics and Code of Conduct of the Company

- Assistance in implementing corporate governance practices

- Independent view on key appointments and strategy formulation

- Review of integrity of financial information and risk management

- Updation of skills and knowledge

- Information regarding external environment

- Raising of concerns, if any, to the Board

- Assistance in formulation of statutory and non-statutory policies for the Company

- Ensures implementation of decisions of the Board

- Ensures compliance with applicable legal and regulatory requirements

- Alignment of Companys resources and budgets to the implementation of the organizations strategic plan

- Creativity and innovations in creating new products

- Understanding of the business and products of the Company

c. For Committees of the Board:

- Adequate and appropriate written terms of reference

- Volume of business handled by the committee set at the right level?

- Whether the committees work in an inclusive manner

- Effectiveness of the Boards Committees with respect to their role, composition and their interaction with the Board

- Are the committees used to the best advantage in terms of management development, effective decision, etc.

- Attendance and active participation of each member in the meetings

- Review of the action taken reports and follows up thereon

d. For Board of Directors as a whole:

- Setting of clear performance objectives and how well it has performed against them

- Contribution to the testing and development and strategy

- Contribution to ensuring robust and effective risk management

- Composition of the Board and its committees appropriate with the right mix of knowledge and skills sufficient to maximize performance in the light of future strategy

- Effectiveness of inside and outside Board relationship

- Responding to the problems or crises that have emerged

- Relationship between Board and its Committees and between committees themselves

- Communication with employees and others

- Updation with latest developments in regulatory environments and the market in which the Company operates

- Role and functioning of the Board on the matters pertaining to financial reporting and internal controls

- Contribution of the Board for ensuring that the Company is adhere to the statutory and regulatory compliances as applicable to the Company

The Directors expressed their satisfaction with the evaluation process.

12. AUDIT COMMITTEE

As on March 31, 2020, the Audit Committee of the Company comprises of three members with two Independent Directors namely Mr. Mahesh Kumar Malpani (Chairman), Mr. Shalabh Jalan and one Executive Director namely Mr. Ramesh Kumar Haritwal, Managing Director & CEO. The Committee, inter alia, reviews the Internal Control System and reports of Internal Auditors and compliance of various Regulations. The Committee also reviews the Financial Statements before they are placed before the Board. The brief terms of reference of the Committee and the details of the Committee meetings are provided herein below:

Terms of References of Audit Committee are as follows:

Powers of Audit Committee:

1. To investigate any activity within its terms of reference.

2. To seek information required from any employee.

3. To obtain external, legal or other professional advice.

4. To secure attendance of outsiders with relevant expertise, if it considers necessary.

Role of Audit Committee:

The role of the Audit Committee shall include the following:

1. Oversight of the Companys financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible;

2. Recommendation for appointment, remuneration and terms of appointment of auditors of the Company;

3. Approval of payment to statutory auditors for any other services rendered by the statutory auditors except those which are specifically prohibited;

4. Reviewing, with the management, the annual financial statements and auditors report thereon before submission to the board for approval, with particular reference to:

i. Matters required to be included in the Directors Responsibility Statement to be included in the Boards report in terms of clause (c) of sub-section 3 of Section 134 of the Companies Act, 2013;

ii. Changes, if any, in accounting policies and practices and reasons for the same;

iii. Major accounting entries involving estimates based on the exercise of judgment by management;

iv. Significant adjustments made in the financial statements arising out of audit findings;

v. Compliance with listing and other legal requirements relating to financial statements;

vi. Disclosure of any related party transactions;

vii. Modified opinion(s) in the draft audit report

5. Reviewing, with the management, the quarterly financial statements before submission to the board for approval;

6. Reviewing, with the management, the statement of uses / application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document / prospectus / notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter;

7. Review and monitor the auditors independence and performance, and effectiveness of audit process;

8. Approval or any subsequent modification of transactions of the Company with related parties;

9. Scrutiny of inter-corporate loans and investments;

10. Valuation of undertakings or assets of the Company, wherever it is necessary;

11. Evaluation of internal financial controls and risk management systems;

12. Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control systems;

13. Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit;

14. Discussion with internal auditors of any significant findings and follow up there on;

15. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board;

16. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern;

17. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors;

18. To review the functioning of the Whistle Blower mechanism;

19. Approval of appointment of Chief Financial Officer after assessing the qualifications, experience and background, etc. of the candidate;

20. Carrying out any other function as may be referred to by the Board or mandated by regulatory provisions from time to time;

21. Reviewing the utilization of loans and/or advances from/investment by the holding company in the subsidiary exceeding rupees 100 crore or 10% of the asset size of the subsidiary, whichever is lower including existing loans/advances/investments.

Review of information by Audit Committee:

1. The Audit Committee shall mandatorily review the following information:

a. Management discussion and analysis of financial condition and results of operations;

b. Statement of significant related party transactions (as defined by the Audit Committee), submitted by management;

c. Management letters / letters of internal control weaknesses issued by the statutory auditors;

d. Internal audit reports relating to internal control weaknesses;

e. The appointment, removal and terms of remuneration of the chief internal auditor shall be subject to review by the Audit Committee; and

f. Statement of deviations:

i) quarterly statement of deviation(s) including report of monitoring agency, if applicable, submitted to stock exchange(s) in terms of Regulations 32(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

ii) annual statement of funds utilized for purposes other than those stated in the offer document/ prospectus/notice in terms of Regulation 32(7) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Meetings and attendance:

During the financial year 2019-20, five (5) meetings of the Audit Committee were held on May 29, 2019, August 14, 2019, August 30, 2019, November 11, 2019 and February 13, 2020 and the attendance of the Committee Members were as under:

Name of the Committee Members Category

No. of Meetings

Held Attended
Mr. Mahesh Kumar Malpani Non-Executive -Independent Director 5 5
Mr. Beni Gopal Saraf* Non-Executive -Independent Director 3 3
Mr. Shalabh Jalan# Non-Executive -Independent Director 2 2
Mr. Ramesh Kumar Haritwal Executive- Non- Promoter Director 5 5

* Mr. Beni Gopal Saraf, completed his tenure as Director on the conclusion of 31st AGM held on September 27, 2019.

# Mr Shalabh Jalan, appointed as Director of the Company effective from August 30, 2019.

13. NOMINATION AND REMUNERATION COMMITTEE

As on March 31, 2020, the Nomination and Remuneration Committee of the Company comprises of three members namely Mr. Mahesh Kumar Malpani (Chairman), Mr. Shalabh Jalan and Ms. Mathangi Ramanujam. The brief terms of reference of the Committee and the details of the Committee meetings are provided herein below:

Terms of Reference of Nomination and Remuneration Committee:

The Nomination and Remuneration Committee shall be responsible for, among other things, as may be required by the Company from time to time, the following:

1. To formulate criteria for:

a. determining qualifications, positive attributes and independence of a director;

b. evaluation of independent directors and the Board of Directors.

2. To devise the following policies on:

a. remuneration including any compensation related payments of the directors, key managerial personnel and other employees and recommend the same to the board of the Company;

b. board diversity laying out an optimum mix of executive, independent and non-independent directors keeping in mind the needs of the Company.

3. To identify persons who are qualified to:

a. become directors in accordance with the criteria laid down, and recommend to the Board the appointment and removal of directors;

b. be appointed in senior management in accordance with the policies of the Company and recommend their appointment or removal to the HR Department and to the Board.

4. To carry out evaluation of the performance of every director of the Company;

5. To specify the manner for effective evaluation of performance of Board, its committees and individual directors to be carried out either by the Board, by the Nomination and Remuneration Committee or by an independent external agency and review its implementation and compliance;

6. To express opinion to the Board that a director possesses the requisite qualification(s) for the practice of the profession in case the services to be rendered by a director are of professional nature.

7. To carry out such other business as may be required by applicable law or delegated by the Board or considered appropriate in view of the general terms of reference and the purpose of the Nomination and Remuneration Committee.

8. To decide whether to extend or continue the term of appointment of the independent director, on the basis of report of performance evaluation of independent directors;

9. To recommend to the board, all remuneration, in whatever form, payable to senior management.

Meetings and attendance:

During the financial year 2019-20, two (2) meeting of the Nomination and Remuneration Committee were held on

May 29, 2019 and August 30, 2019 and the attendance of the Committee Members were as under:

Name of the Committee Members Category

No. of Meetings

held Attended
Mr. Mahesh Kumar Malpani Non-Executive -Independent Director 2 2
Mr. Beni Gopal Saraf* Non-Executive -Independent Director 2 2
Mr. Shalabh Jalan# Non-Executive -Independent Director - -
Ms. Mathangi Ramanujam Non-Executive -Director 2 2

* Mr. Beni Gopal Saraf, completed his tenure as Director on the conclusion of 31st AGM held on September 27, 2019.

# Mr Shalabh Jalan, appointed as Director of the Company effective from August 30, 2019.

Summary on Remuneration Policy of the Company

The Board of Directors has adopted the Remuneration Policy on the recommendation of the Nomination and Remuneration Committee in compliance with Section 178 of the Companies Act, 2013 and Regulation 19 read with Part D of Schedule II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This Policy applies to all the "Executives" of the Company and is valid for all employment agreements entered into after the approval of the Policy and for changes made to existing employment agreements thereafter. In keeping with the provisions of Section 178, the remuneration structure of the Company comprises of fixed remuneration (including fixed supplements), performance-based remuneration (variable salary) pension schemes, where applicable, other benefits in kind and severance payment, where applicable. Further, the Policy states that the Non-Executive Directors and Independent Directors of the Company may receive remuneration only by way of fee and reimbursement of expenses for participation in meetings of the Board or Committee thereof and profit related commission, as may be permissible by the applicable law. Additionally, the Policy also lays down the overall selection criteria for the Executives of the Company which is based on broad heads such as competencies, capabilities, compatibility, strong interpersonal skills, commitment among others.

14. STAKEHOLDERS RELATIONSHIP COMMITTEE

As on March 31, 2020, the Stakeholders Relationship Committee of the Company consists of two Independent Directors namely Mr. Shalabh Jalan (Chairman) and Mr. Mahesh Kumar Malpani as member of the Committee. The brief terms of reference of the Committee and the details of the Committee meetings are provided herein below:

Terms of Reference for the Stakeholders Relationship Committee:

i. To ensure proper and timely attendance and redressal of grievances of security holders of the Company in relation to:

a. Transfer/transmission of shares,

b. Non-receipt of annual reports,

c. Non-receipt of declared dividends,

d. Issue of new/duplicate certificates,

e. General meetings,

f. All such complaints directly concerning the shareholders / investors as stakeholders of the Company; and

g. Any such matters that may be considered necessary in relation to shareholders and investors of the Company.

ii. Reviewing the measures taken for effective exercise of voting rights by shareholders.

iii. Reviewing the adherence to the service standards adopted by the Company in respect of various services being rendered by the Registrar & Share Transfer Agent.

iv. Reviewing the various measures and initiatives taken by the Company for reducing the quantum of unclaimed dividend and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of the Company.

v. Formulation of procedures in line with the statutory guidelines to ensure speedy disposal of various requests received from the shareholders from time to time;

vi. To review and / or approve applications for transfer, transmission, transposition and mutation of share certificates including issue of duplicate certificates and new certificates on split / sub-division / consolidation / renewal and to deal with all related matters;

vii. To review and approve requests of dematerialization and rematerialisation of securities of the Company and such other related matters;

viii. Appointment and fixing of remuneration of RTA and overseeing their performance;

ix. Review the status of the litigation(s) filed by/against the security holders of the Company;

x. Review the status of claims received for unclaimed shares;

xi. Recommending measures for overall improvement in the quality of investor services;

xii. Monitoring implementation and compliance with the Companys Code of Conduct for Prohibition of Insider Trading in pursuance of SEBI (Prohibition of Insider Trading) Regulations, 2015;

xiii. Review the impact of enactments/ amendments issued by the MCA/ SEBI and other regulatory authorities on matters concerning the investors in general;

xiv. Such other matters as per the directions of the Board of Directors of the Company and/ or as required under

Regulation 20 read with Part D of Schedule II of the SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015, as amended, from time to time.

Meetings and attendance:

During the financial year 2019-20, one (1) meetings of Stakeholders Relationship Committee was held on February 13, 2020 and the attendance of Committee Members were as under:

Name of the Committee members Category

No. of meetings

Held Attended
Mr. Shalabh Jalan Non-executive -Independent Director 1 1
Mr. Mahesh Kumar Malpani Non-executive -Independent Director 1 1

The table below gives the number of Shareholders Complaints received, resolved and pending during the financial year 2019-20.

Number of Complaints:

Received Resolved Pending
Nil Nil Nil

15. INDEPENDENT DIRECTORS AND THEIR MEETING

As on March 31, 2020 there were two (2) Independent Directors in the Company as per following details:

Mr. Mahesh Kumar Malpani, [DIN: 02603222]

Mr. Shalabh Jalan, [DIN: 01089278]

During the year under review, one (1) meeting of Independent Directors was held on February 13, 2020, where both the Independent Directors of the Company were present.

16. VIGIL MECHANISM

Pursuant to the provisions of Section 177(9) & (10) of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Whistle Blower Policy to establish Vigil Mechanism for Directors and employees to report genuine concerns has been framed. The Policy is revised from time to time to realign it with applicable regulations or organisations suitability. The latest policy is available on the website of the Company. This Policy provides a process to disclose information, confidentially and without fear of reprisal or victimization, where there is reason to believe that there has been serious malpractice, fraud, impropriety, abuse or wrong doing within the Company. The Company ensures that no personnel have been denied access to the Audit Committee.

17. RISK MANAGEMENT

The Company is taking necessary steps to identify, assess, monitor and mitigate various risks to its key business objectives. Major risks to be identified by the business and functions, if any, would be systematically addressed through mitigating actions on a continuous basis.

18. statement in respect of adequacy of internal financial controls with reference to the financial

STATEMENTS

The Directors had laid down internal financial controls procedures to be followed by the Company which ensure compliance with various policies, practices and statutes. The Audit Committee of the Board, from time to time, evaluated the internal financial control of the Company with regard to-

1. Systems have been laid to ensure that all transactions are executed in accordance with managements general and specific authorization. There are well-laid manuals for such general or specific authorization.

2. Systems and procedures exist to ensure that all transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles or any other criteria applicable to such statements, and to maintain accountability for aspects and the timely preparation of reliable financial information.

3. Access to assets is permitted only in accordance with managements general and specific authorization. No assets of the Company are allowed to be used for personal purposes, except in accordance with terms of employment or except as specifically permitted.

4. The existing assets of the Company are verified/checked at reasonable intervals and appropriate action is taken with respect to differences, if any.

5. Proper systems are in place for prevention and detection of frauds and errors and for ensuring adherence to the Companys policies.

19. CORPORATE SOCIAL RESPONSIBILITY

During the year under review, the compliance under Section 135 of the Companies Act, 2013 was not applicable to the Company. Further, considering the financial position and other factors, your Company could not take any initiative in this regard.

20. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

Related party transactions that were entered into during the financial year 2019-20, were on arms length basis and in ordinary course of business. The particulars of material related party transactions which were entered into on arms length basis are provided in Form AOC- 2 as required under Section 134(3)(h) of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014 which is annexed herewith as "Annexure-I". There are no materially significant related party transactions made by the Company which may have potential conflict with the interest of the Company.

21. DIRECTORS RESPONSIBILITY STATEMENT

In terms of the provisions of Section 134(3)(c) read with 134(5) of the Companies Act, 2013, the Directors state that:

a) In preparation of the annual accounts for the financial year ended March 31, 2020, the applicable Indian Accounting Standards have been followed along with proper explanation relating to material departures;

b) The Directors have selected such Accounting Policies as listed in the Financial Statements 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 as on March 31, 2020 and of the profit / loss of the Company for that period;

c) 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) The Directors have prepared the annual accounts on a going concern basis;

e) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively;

f) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

22. MATERIAL CHANGES AND COMMITMENTS, AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There have been no material changes and commitments affecting the financial position of the Company since the close of financial year i.e. March 31, 2020 and upto the date of this report except which has been disclosed elsewhere in this report.

23. CHANGE IN THE NATURE OF BUSINESS

During the year under review, there has been no change in the nature of business of the Company except that the Company had included the business of renting activities in its main objects pursuant to Special Resolution passed by the members of the Company at the Annual General Meeting held on September 27, 2019.

24. ALTERATION IN THE MEMORANDUM OF ASSOCIATION OF THE COMPANY

The Company has amended its Memorandum of Association pursuant to Special Resolution passed by the members of the Company at the Annual General Meeting held on September 27, 2019, with respect to the following:

a) The existing title to Part A of Clause III of the Memorandum of Association of the Company i.e. "MAIN OBJECTS TO BE PURSUED BY THE COMPANY ON ITS INCORPORATION" be and is hereby renamed as:

"THE OBJECTS TO BE PURSUED BY THE COMPANY ON ITS INCORPORATION ARE";

b) The existing title to Part B of Clause III of the Memorandum of Association of the Company i.e. "OBJECTS INCIDENTAL OR ANCILLARY TO THE ATTAINMENT OF THE MAIN OBJECTS" be and is hereby renamed as:

"MATTERS WHICH ARE NECESSARY FOR FURTHERANCE OF THE OBJECTS SPECIFIED IN CLAUSE III (A) ARE"

c) The existing Part C of Clause III of Memorandum of Association i.e. "OTHER OBJECTS OF THE COMPANY NOT INCLUDED IN (A) & (B) ABOVE" be and is hereby deleted along with all the objects mentioned thereunder except for point no.11 which shall be shifted to "Clause III(A)" as point no. 7 with a modification, as mentioned below:

"7. To sell, lease or let out its land, building, office, factory sheds, building, guesthouse and land appurtenant thereto, wholly or partly, which are not in the immediate requirement of the Company to any person, firm, company, etc. either individually or in any combination thereof."

d) The existing Clause IV of the Memorandum of Association of the Company "The liability of the members is limited" be and is hereby substituted by the following Clause:

"The liability of the member(s) is limited and this liability is limited to the amount unpaid, if any, on the shares held by them."

e) Other requisite amendments in the Memorandum of Association which are required in order to align the same with the provisions of the Companies Act, 2013.

Further, the Equity shares of the Company were sub-divided from face value of 10/- each to face value of 5/- each and accordingly the number of equity shares in the authorised share capital were sub-divided from 40,00,000 equity shares of 10/- each to 80,00,000 equity shares of 5/- each vide Ordinary Resolution passed by the members of the Company at the Annual General Meeting held on September 27, 2019.

25. PUBLIC DEPOSITS

The Company did not invite or accept any deposits from the public in terms of Chapter V of the Companies Act, 2013, during the period under review or otherwise.

26. LISTING OF SHARES

The Equity Shares of the Company are listed on the BSE Limited (BSE) with scrip code No. 513723. The Company confirms that the annual listing fees to the stock exchange for the financial year 2020-21 have been duly paid.

27. LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013

Details of Loans granted, Guarantees given and Investments made, if any, during the year under review, covered under the provisions of Section 186 of the Companies Act, 2013 are given in the Financial Statement of the Company forming part of this Annual Report.

28. AUDITORS AND THEIR REPORT

(a) Statutory Auditors:

The shareholders of the Company at the 31st Annual General Meeting (AGM) held on September 27, 2019, have approved the appointment of M/s. S. P. Shaw & Co., Chartered Accountants (ICAI Firm Registration No. 314229E), as the Statutory Auditors of the Company pursuant to Section 139 of the Companies Act, 2013 for a term of 5 years from the conclusion of 31st AGM till the conclusion of 36th AGM to be held in financial year 2024-25.

The Statutory Auditors Report on the Financial Statements of the Company for the financial year ended March 31, 2020 forms part of this Annual report.

(b) Secretarial Auditors:

The Board of Directors of the Company at their meeting held on February 13, 2020 appointed Mr. Dilip Kumar Sarawagi, Practicing Company Secretary, Proprietor of M/s. DKS & Co., having office at 173, M.G. Road, 1st Floor, Kolkata-700007, for conducting the Secretarial Audit of the Company for the financial year 2019-20.

The Secretarial Audit Report in Form MR-3 for the financial year ended March 31, 2020 is annexed herewith as "Annexure-II".

(c) Cost Auditors:

Your Company was not required to appoint Cost Auditor for the financial year ended March 31, 2020. Further, pursuant to sub-section (1) of Section 148 of the Companies Act, 2013, the maintenance of Cost Records as specified by the Central Government is not required by the Company and accordingly such accounts and records are not made and maintained by the Company.

(d) Internal Auditors:

The Board of Directors has appointed M/s. AS & Associates, Cost Accountants, as Internal Auditors of the Company to carry out internal audit of the Company. The Audit Committee periodically reviews the Internal Audit report.

29. RESPONSE TO AUDITORS REMARKS

There is no qualification, reservation, adverse remark or disclaimer by the Statutory Auditors or by the Secretarial Auditors in their Statutory Audit Report and Secretarial Audit Report, respectively and hence, no explanation or comments of the Board is required in this matter.

30. EXTRACT OF ANNUAL RETURN

The extract of Annual Return as required under Section 134(3)(a) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, is provided in Form No. MGT- 9 is annexed herewith as "Annexure-III" to this report.

31. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

Since the Companys operations are pertaining to renting activities, your Company has no such scope relating to conservation of energy and technology absorption as stipulated in Rule 8(3) of Companies (Accounts) Rules, 2014. There has been no Technology absorption by the Company during last three Financial years. Further, there was no Foreign Exchange Earnings and outgo during the year under review.

32. PARTICULARS OF EMPLOYEES

The information required under Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed herewith as "Annexure-IV".

33. FRAUD REPORTING

There was no fraud reported by the Auditors of the Company under Section 143(12) of the Companies Act, 2013, to the Audit Committee or the Board of Directors during the year under review.

34. CONSTITUTION OF INTERNAL COMPLAINTS COMMITTEE AND DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013

There were less than 10 (Ten) employees in the Company during the year under review including the Directors and KMPs and hence the provisions with respect to constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 were not applicable to the Company. Further, no complaint was filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 during the year under review.

35. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS / COURTS/ TRIBUNALS IMPACTING THE Going CONCERN STATUS And The COMPANYS OPERATIONS IN FUTURE

During the period under review, there were no significant and material orders passed by any regulator /court / tribunal impacting the going concern status and the Companys operations in future.

36. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management Discussion and Analysis Report for the financial year 2019-20, pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is given as a separate statement in the Annual Report.

37. NON-APPLICABILITY OF CORPORATE GOvERNANCE REPORT AS PER THE SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

The compliance with the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding Corporate Governance Report, is not mandatory to your Company presently. In view of the same, the Corporate Governance Report is not provided in the Annual Report.

38. DISCLOSURES WITH RESPECT TO DEMAT SUSPENSE ACCOUNT/ UNCLAIMED SUSPENSE ACCOUNT

(a) Aggregate number of shareholders and the outstanding shares in the suspense account lying at the beginning of the year: Nil

(b) Number of shareholders who approached the Company for transfer of shares from suspense account during the year: Nil

(c) Number of shareholders to whom shares were transferred from suspense account during the year: Nil

(d) Aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the year: Nil

(e) The voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares: Not applicable

39. DISCLOSURE REGARDING COMPLIANCE OF APPLICABLE SECRETARIAL STANDARDS

The Company has complied with all the mandatorily applicable Secretarial Standards issued by The Institute of Company Secretaries of India and approved by the Central Government under Section 118(10) of the Companies Act, 2013.

40. ACKNOWLEDGEMENT

Your Directors place on record their sincere thanks and appreciation to financial institutions, vendors, clients, investors, Central Government, State Governments, other regulatory authorities and other stakeholders for their continuing support and Co-operation.

For and on behalf of the Board of Directors

Place: Tindivanam Ramesh Kumar Haritwal Mathangi Ramanujam
Managing Director & CEO Non-Executive Director
Date: June 30, 2020 [DIN: 01486666] [DIN: 07095686]