J R Foods Ltd Directors Report.
To the Members,
Your Directors have pleasure in submitting their 26th Annual Report of the Company together with the Audited Statements of Accounts for the year ended 31stMarch, 2019.
1. FINANCIAL RESULTS
The Companys financial performance for the year under review along with previous years figures are given hereunder:
|(Audited)||(Amount in Rs.)|
|Particulars||Financial Year ended 31.03.2019||Financial Year ended 31.03.2018|
|Profit before Interest, Tax & Depreciation||(376805413)||39532020|
|Profit before Tax||(423897017)||19128158|
|Prior Period Expenses||-||-|
|Income Tax for Previous Years||-||-|
|Profit before Tax after Extraordinary Items||(423897017)||19128158|
|Less: Provision for Income Tax|
|i) Current Tax||-||4010000|
|ii) Deferred Tax||-|
|iii) Mat Credit||-||-|
|iv) Excess Provision of Income tax Earlier year||-||-|
|Net Profit/ (Loss)||(423897017)||15118158|
2. REVIEW OF BUSINESS OPERATIONS AND FUTURE PROSPECTS
The turnover of the financial year 2018-2019 was Rs 743973168 and the turnover of the Previous financial year 2017-2018 was 1780041999. Inspite of the severe draught the availability of raw material for extraction plant was totally affected. During the Year the Company was in loss of Rs. (423897017) and however, the Board is confident that Company will start generate profit in near future.
3. DIRECTORS AND KEY MANAGERIAL PERSONNEL
Your Company is managed and controlled by a Board comprising an optimum blend of Executives and Non-Executive Professional Directors. Mrs. Kamala J Kothari, Director, retires at this Annual General Meeting and being eligible offers herself for re election.
Also, during the year under review, Ms. K. Mahalakshmi has resigned from the post of Company Secretary and Compliance officer of the Company w.e.f. 25th February, 2019 and Mr. M. Velmurugan has resigned from the post of Chief Financial officer of the Company w.e.f. 25th February, 2019.
Mr. G. Ashokkumar has resigned from the post of Independent Director w.e.f. 22nd April, 2019
All the Directors possess the requisite qualifications and experience in general corporate Management, finance, banking and other allied fields which enable them to contribute effectively to the Company in their capacity as Directors of the Company.
The Composition of the Board of Directors as on March 31, 2018 as follows:
|Name||Category||Designatio n||Date of appointmen t||Directorship in other Companies||Chairmanshi p of Committees of Board of other Companies||Membership of Committees of Boards of other companies|
|Kamala J.Kothari||Promoter Non- Executive Director||Director||28.09.2005||2||-||-|
|Dinesh Kothari||Promoter Executive Director||Whole Time Director||18.07.2012||2||-||-|
|G. Ashokkumar||Independent Non- Executive Director||Director||10.03.2006||-||-||-|
|D. Gopi||Independent Non- Executive Director||Director||01.10.2015||-||-||-|
Mr. G AshokKumar Resigned on 22nd April, 2019
4. DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board hereby submit its responsibility Statement:
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to 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 a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(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. Internal financial control means the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.
(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.
5. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report as stipulated under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2018 ("SEBI LODR Regulations") is given separately forming part of this Annual Report.
6. REPORT ON CORPORATE GOVERNANCE
Since the paid up capital of the Company is less than Rs. 10.00 Crore and Net Worth of the Company is Less than Rs. 25.00 Cr, the Provisions of Corporate Governance are not applicable on the Company in terms of Securities and Exchange Board of India (Listing Obligation and Disclosure requirement) Regulations, 2015.
(i) Statutory Auditors
Pursuant to Section 139 of the Companies Act, 2013 and Rules made thereunder, the appointment of M/s. R. Chandrasekar & Co., Chartered Accountants, as the statutory auditors of the Company is recommendedat the ensuing Annual General Meeting for a period of five years till Annual General Meeting scheduled to be held in the year 2024 in place of M/s Balaji & Gopalan who resigned to act as Statutory Auditors of the Company. The Company has received a certificate from the above Auditors to the effect that if they are appointed, it would be in accordance with the provisions of Section 141 of the Companies Act, 2013. Also, the Company has received a special notice for their appointment.
(ii) Secretarial Auditor & the Secretarial Audit Report
Mr. Shalu Singhal prop of M/s Shalu Singhal & Associates, Practicing Company Secretary was appointed as Secretarial Auditor by the Board of Directors for the financial year 2018-19 and her report is attached separately to this report. The Board ensures the Compliances with respect to observation mentioned in the report in the future.
No Dividend is being proposed for the current financial year due to the carried forward loss.
9. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCTION AND PROTECTION FUND
The provisions of Section 125(2) of the Companies Act, 2013 do not apply as there was no dividend declared and paid last year.
10. MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which this financial statements relate on the date of this report.
11. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology absorption, Foreign exchange earnings and outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is furnished as an Annexure to this report.
12. STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE COMPANY
As the element of risk threatening the Companys existence is very minimal, the risk management system has yet to be implemented
13. DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said provisions are not applicable due to carried forward loss.
14. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013
There were no loans, guarantees or investments made by the Company under Section 186 of the Companies Act, 2013 during the year under review and hence the said provision is not applicable.
15. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES
There was no contract or arrangements made with related parties as defined under Section 188 of the Companies Act, 2013 during the year under review. Disclosure in Form AOC2 is furnished as an annexure to this report.
16. EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMERS MADE BY THE AUDITORS IN THEIR REPORTS
There were no qualification, reservation or adverse remarks made by the either by the Auditors
17. COMPANYS POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF REMUNERATION AND DISCHARGE OF THEIR DUTIES
The Company has formulated a policy known as Nomination and Remuneration Policy to govern the appointment and payment of remuneration to directors and KMPs. The said policy is available on website www.jrfoods.in.
18. ANNUAL RETURN
The extracts of Annual Return pursuant to the provisions of Section 92 read with Rule 12 of the Companies (Management and Administration) Rules, 2014 is furnished as an Annexure and is attached to this Report. The Annual Return can be obtained from the website of the Company i.e. www.jrfoods.in.
19. NUMBER OF BOARD MEETINGS CONDUCTED DURING THE YEAR UNDER REVIEW
The Company held 6 Board meetings during the financial year under review.
20. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
The Company does not have any Subsidiary, Joint venture or Associate Company.
The Company has neither accepted nor renewed any deposits during the year under review.
22. DECLARATION OF 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 as Independent Directors under the provisions of the Companies Act, 2013 and the relevant rules.
23. RISK MANAGEMENT POLICY
Pursuant to Section 134(3)(n) of the Companies Act, 2013, the Company has developed and implement the Risk Management Policy for the Company including identification therein of elements of risk, if any, which is in the opinion of the Board may threaten the existence of the Company.These are discussed at the meeting of the Audit Committee and the Board of Directors of the Company.
At present the Company has not identified any element of risk which may threaten the existence of the Company.
24. DISCLOSURE OF COMPOSITION OF COMMITTEE AND PROVIDING VIGIL MECHANISM
The Audit Committee consists of the following members
a. G. Ashokkumar
b. D. Gopi
c. Kamala J Kothari
The above composition of the Audit Committee consists of independent Directors viz., Mr. G. Ashokkumar and Mr. D. Gopi, who form the majority. However, Mr. G. AshokKumar resigned from the Board w.e.f. 22nd April, 2019
The Company has established a vigil mechanism and overseas through the committee, the genuine concerns expressed by the employees and other Directors. The Company has also provided adequate safeguards against victimization of employees and Directors who express their concerns. The Company has also provided direct access to the chairman of the Audit Committee for reporting issues concerning the interests of co employees and the Company. The Whistle Blower Policy is available on the website of the company viz., www.jrfoods.in
Nomination and Remuneration Committee
The Remuneration Committee consisted of the following Directors.
1. Mrs. Kamala J. Kothari
2. Mr. G. Ashokkumar
3. Mr. D. Gopi
Stakeholders Relationship Committee.
Stakeholders Relationship Committee consisting of Mr. Dinesh Kothari and Mr. D Gopi.
a. BUY BACK OF SECURITIES
The Company has not bought back any of its securities during the year under review.
c. SWEAT EQUITY
The Company has not issued any Sweat Equity Shares during the year under review.
d. BONUS SHARES
No Bonus Shares were issued during the year under review.
e. EMPLOYEES STOCK OPTION PLAN
The Company has not provided any Stock Option Scheme to the employees.
26. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS
The Company has a formal system of internal control testing which examines both the design effectiveness and operational effectiveness to ensure reliability of financial and operational information and all statutory / regulatory compliances. The Company has a strong monitoring and reporting process resulting in financial discipline and accountability.
27. CORPORATE SOCIAL RESPONSIBILITY (CSR)
During the year under review, the Company is not required to comply with the provisions related to Corporate Social Responsibility on the basis of its financial statement.
28. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYS OPERATIONS IN FUTURE
No significant and material orders have been passed by the regulators or courts or tribunals, impacting the going concern status and companys operations in future.
29. HUMAN RESOURCES
There are no employees as on date on the rolls of the Company who are in receipt of Remuneration which requires disclosures under Section 134 of the Companies Act, 2013 and Companies (Particulars of Employees) Rules, 1975.
During the year under review, relationship with the employees is cordial.
30. FORMAL ANNUAL EVALUATION
The Nomination and Remuneration Committee of the Company has formulated Evaluation Policy during the year, which was approved by the Board of Directors. The Policy provides for evaluation of the Board, the Committee of the Board and individual Directors, including the Chairman of the Board. The policy provides that evaluation of the performance of the Board as a whole, Board Committees and Directors shall be carried out on an annual basis.
31. FAMILIARISATION PROGRAM
The company regularly communicates with all Independent Directors to provide detailed understanding of the activities of the company including specific projects either at the meeting of the Board of Directors or otherwise. The induction process is designed to build an understanding of the companys business and the markets to equip the Directors to perform their role on the Board effectively. Independent Directors are also taken through various business situations, nature of the industry, business model etc by way of presentations and discussions. The details of directors induction and familiarisation are available on the companys website at www.jrfoods.in.
Your Directors place on record their sincere thanks to bankers, business associates, consultants, and various Government Authorities for their continued support extended to your Companies activities during the year under review. Your Directors also acknowledges gratefully the shareholders for their support and confidence reposed on your Company.
|FOR AND ON BEHALF OF THE BOARD OF DIRECTORS|
|KAMALA J KOTHARI||DINESH KOTHARI|
|DIN: 00005321||DIN: 00850924|
|Date : Puducherry|
|Place: 31st August, 2019|