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Directors Report to the Members
Your Directors have pleasure in presenting the 28th Annual Report of your company together with the Audited Accounts for the year ended 31st March 2019.
Highlights of financial result for the year were as under:
|Rs. In Lakhs||Rs. In Lakhs|
|Profit from Operations before Other Income & Interest||(10.20)||(9.43)|
|Add: Other Income||-||18.72|
|Operating Profit before Interest||(10.20)||9.29|
|Add: Exceptional Income/(Expenses)||-||-|
|Profit Before Tax||(11.16)||9.23|
|Provision for Tax||-||-|
|Income Tax Adjusted for earlier year||-||-|
|Other Comprehensive Income||0.53||0.96|
|Profit After Tax||(10.63)||10.19|
|Add: Surplus brought forward from Previous Year||-||-|
|Amount Available for appropriation||(10.63)||10.19|
|General Reserve No I||-||-|
|Debenture Redemption Reserve A/c||-||-|
|Tax on Dividend||-||-|
|Balance Carried Forward||(10.63)||10.19|
During the year your company has its turnover to Rs 0.06 Lacs including other income as compared to Rs. 19.38 Lacs in the previous year and thereby registering a decrease of 99.69% as compared to the previous year. There is decreased in other income. The company has occurred the Net loss of Rs. 10.62 Lacs against the Net profit of Rs 10.19 Lacs in the previous year.
Your Directors regret their inability to recommend any dividend for the year under review.
As per Section 149(4) of Companies Act, 2013 every listed company shall have half of the total number of directors as independent directors. They shall hold office for a term up to five consecutive years on the Board of the Company as per section 149(10).
During the year, Mr. Kishor A. Shah (DIN: 000015575) retires by rotation but being eligible himself for reappointment as a Director.
The Company has not accepted and/or renewed any public deposit during the year review.
DIRECTORS RESPONSIBILITY STATEMENT:-
Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000 the Directors confirm:-
i. that in the preparation of the annual accounts for the year ended on 31st March 2019, the applicable accounting standards have been followed;
ii. 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 for the period and of the profit of the Company for that period under review.
iii. that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.
iv. that the directors have prepared the accounts for the year ending 31st March, 2019 on a going concern basis.
v. Directors had devised proper systems to ensure compliance with provisions of all applicable laws and that such system were adequate and operating effectively.
CONSERVATION OF ENERGY:-
The Company is engaged in the business of trading and dealings in shares and securities and consequently various disclosures required u/s 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosures of Particulars in the Report of the Directors) Rules, 1988 are not applicable to this Company.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The Board of Directors of the Company has done six board meetings during this financial year which is in compliance to the provisions of the Companies Act, 2013.
FOREIGN EXCHANGE EARNINGS & OUTGO:-
|During the year under review||-||Earnings||-||Nil|
Members are requested to re-appoint Auditors for the current year and to authorize the Board of Directors to fix their remuneration. At previous meeting, M/s.Agrawal Jain & Gupta., Chartered Accountant, Mumbai (Registration No.: 013538C) was appointed as Statutory Auditors of your Company from the conclusion of the previous Annual General Meeting. The said Statutory Auditors retire at the ensuing Annual General Meeting and being eligible under section 139 of the Companies Act, 2013, offer themselves for re-appointment
There is no sufficient profit or cash flow to the company. The company has taken approval from share holders for waiving of preference dividend and extension of maturity of preference shares.
Information as per section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 is not given as there was no employee earning monthly salary as specified in aforesaid Section or more during the year.
CORPORATE GOVERNANCE :-
The Company has complied with the requirements regarding Corporate Governance as required under Clause 49 of the Listing Agreement entered into with the Stock Exchanges, where the Companys shares are listed. A report on the Corporate Governance in this regard is made a part of this Annual Report and a Certificate from the Auditors of the Company regarding compliance of the conditions of the Corporate Governance is attached to this report.
The Company does not have any subsidiary.
CODE OF CONDUCT
The Board of Directors has approved a Code of Conduct which is applicable to the Members of the Board and all employees in the course of day to day business operations of the company. The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. The Code gives guidance through examples on the expected behavior from an employee in a given situation and the reporting structure.
All the Board Members and the Senior Management personnel have confirmed compliance with the Code.
PREVENTION OF INSIDER TRADING
The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading insecurities by the Directors and designated employees of the Company. The Code prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Board is responsible for implementation of the Code.
All Board Directors and the designated employees have confirmed compliance with the Code.
During the year under review, M/s VKM & Associates, Practicing Company Secretary who was appointed as the Secretarial Auditor of the Company has issued the audit report in respect of the secretarial audit of the Company for the financial year ended March 31, 2019. The Secretarial Audit Report which forms a part of the Annual Report is self explanatory and requires no comments.
EXTRACT OF THE ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT-9, as required under Section 92 of the Companies Act, 2013, is included in this Report as Annexure II and forms an integral part of this Report.
PARTICULARS PURSUANT TO SECTION 197(12) AND THE RELEVANT RULES
During the year under review, your Company enjoyed cordial relationship with workers and employees at all levels. The company regards its employees as great asset.
For the particulars of employees as required to be disclosed in the Directors Report in accordance with the Provisions of Section 197 of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014, the Directors state that the company does not have any employee, who
(i) if employed throughout the financial year, was in receipt of remuneration for that year which, in the aggregate, was not less than 60,00,000/- rupees per annum;
(ii) if employed for a part of the financial year, was in receipt of remuneration for any part of that year, at a rate which, in the aggregate, was not less than 5,00,000/- rupees per month;
(iii) if employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as the case may be, at a rate which, in the aggregate, is in excess of that drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the company.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an adequate Internal Control System, commensurate with the size, scale and complexity of its operations. The scope of the Internal Audit function outsourced Chartered Accountants as of current is well defined in the engagement letter of the Internal Auditor duly approved by the Audit Committee. To maintain its objectivity and independence, the Internal Auditor reports to the Audit Committee.
The Internal Auditor evaluates the adequacy of the internal control system in the Company on the basis of Statement of Operations Procedure, instruction manuals, accounting policy and procedures.
PERFORMANCE EVALUATION OF BOARD, COMMITTEES & INDIVIDUAL DIRECTORS
A formal evaluation of the performance of the Board, its Committees, the Chairman and the individual Directors was carried out for the year 2018-19 led by the Nomination & Remuneration Committee.
As part of the evaluation process, the performance of non-independent Directors, the Chairman and the Board was done by the independent Directors. The performance evaluation of the respective Committees and that of independent and non-independent Directors was done by the Board excluding the Director being evaluated. The Directors expressed satisfaction with the evaluation process.
The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has in place a whistleblower policy, to support the Code of conduct of the Company. This policy documents the Companys commitment to maintain an open work environment in which employees, consultants and contractors are able to report instances of unethical or undesirable conduct, actual or suspected fraud or any violation of Companys Code of conduct at a significantly senior level without fear of intimidation or retaliation.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
In accordance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made there under, the Company formulated an internal Policy on Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) during the year under review. An internal Complaint committee has been set up to redress complaints received regarding sexual harassment. All woman employees (permanent, contractual, temporary, trainees) are covered under this policy.
During the year under review there were no complaints received by the Company related to sexual harassment.
CASH FLOW STATEMENT
In conformity with the provision of Clause 32 of the Listing Agreement the cash flow statement for the year ended 31st March 2018 is annexed hereto.
MATERIAL AND SIGNIFICANT ORDERS PASSED BY REGULATORS & COURTS
No significant and material orders have been passed by any regulators or courts or tribunals against the Company impacting the going concern status and Companys operations in future.
Our Directors express their sincere appreciation of the co-operation received from shareholders, bankers and other business constituents during the year under review. Our Directors also wish to place on record their deep sense of appreciation for the commitment displayed by all executives, officers and staff resulting in the performance of the Company during the year.
|For and on behalf of the Board of Directors of|
|Mid East Portfolio Management Ltd.|
|Kishor A. Shah||Jyoti K. Shah|
|(Managing Director)||(Director & CFO)|
|DIN: 000015575||DIN: 00020912|
|Date: 9th August, 2019|