Monica Electronics Ltd Directors Report.
TO THE MEMBERS
The directors submit their report and accounts for the financial year 2016-17.
During the year ended March 31, 2017, the Total Revenue was nil against Rs. 2,35,050/- in the previous year ended 31st March 2016. The loss for the period under review was Rs. 3,60,816/- as against loss of Rs. 5,71,769/- in the previous year.
The directors do not recommend any dividend.
i) Retirement by rotation
In accordance with the provisions of the Companies Act, 2013, Mr. Rajeev Saxena retires by rotation and is eligible for reappointment.
ii) Declarations by Independent Directors
All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013.
iii) Board Evaluation
The Board of Directors has carried out an annual evaluation of its own performance, Board Committees and individual directors pursuant to the provisions of the Act.
The performance of the Board was evaluated by the Board after seeking inputs from all the directors on the basis of the criteria such as the Board composition and structure, effectiveness of board processes, information and functioning, etc.
The performance of the Committees was evaluated by the Board after seeking inputs from the committee members on the basis of the criteria such as the composition of committees, effectiveness of committee meetings, etc.
The Board and the Nomination and Remuneration Committee reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director to the Board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc.
In a separate meeting of Independent Directors, performance of non-independent directors, and performance of the board as a whole was evaluated, taking into account the views of non-executive directors. The same was discussed in the board meeting that followed the meeting of the independent at which the performance of the Board, its committees and individual directors was also discussed.
iv) Nomination & Remuneration Policy
The Board has, on the recommendation of the Nomination & Remuneration Committee, framed a Policy for selection, appointment and remuneration of Directors and Key Managerial Personnel. More details of the same are given in the Corporate Governance Report annexed as Annexure C.
v) Board Meetings
During the year, ten Board Meetings and four Audit Committee Meetings were convened and held. The details are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under Companies Act, 2013.
vii) Code of Conduct
The Board of Directors of the Company have adopted Code of Business Conduct & Ethics. All the members of the Board have affirmed compliance with the Code for the year ended 31st March, 2017 and a declaration to that effect signed by the Chairman of the Board is attached and forms part of this report.
vii) Code of Conduct for Prevention of Insider Trading
The Company has a Code of Conduct for Prevention of Insider Trading in the shares and securities of the Company. This Code, inter alia, prohibits purchase/sale of shares of the Company by Directors and employees while in possession of unpublished price sensitive information in relation to the Company.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, confirm:
i) that in the preparation of the annual accounts for the year ended 31st March, 2017, the applicable accounting standards read with the requirements set out under Schedule III have been followed alongwith proper explanation relating to material departures.
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 at the end of the financial year and of the profit of the Company for that period;
iii) that proper and sufficient care has been taken for the 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;
iv) that the annual financial statements have been prepared on a going concern basis;
v) that proper internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively ;
vi) that proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively
RELATED PARTY TRANSACTIONS
No Related Party Transactions were entered into during the financial year 2016-17. During the year, the Company had not entered into any contract / arrangement / transaction with related parties which could be considered material or which may have potential conflict with the interests of the Company at large.
A statement of all related party transactions is presented before the Audit Committee on a quarterly basis, specifying the nature, value and terms and conditions of the transactions. None of the Directors has any pecuniary relationships or transactions vis--vis the Company.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant and material orders passed by the Regulators/ Courts which would impact the going concern status of the Company and its operations.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The details in respect of internal financial control and their adequacy are included in the Management Discussion & Analysis, which forms part of this report.
The details pertaining to composition of audit committee are included in the Corporate Governance Report, which forms part of this report.
Auditors observations have been explained in Annexure A which forms part of this report.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. Kundan Agrawal & Associates, a firm of Company Secretaries in Practice, to undertake the Secretarial Audit of the Company. The secretarial auditor had made qualification as to compliance of key managerial persons and few documents/records and returns are required to be updated/ filed as per the various provisions of the Companies Act and other applicable Acts, rules and regulations. Your directors submit that the Companys operations are closed and it is no income. Therefore, the Company has not appointed any key managerial person. Further, records have been updated and all the returns have been filed. The Report of the Secretarial Audit is annexed herewith as
The Company in its 40th Annual General Meeting had appointed M/s Agarwal Seth & Co., Chartered Accountants as statutory auditors from 40th Annual General Meeting until 42nd Annual General Meeting. In terms of sections 139 and 142, a resolution seeking ratification of their appointment from 41st Annual General Meeting to 42nd Annual General Meeting is place for approval of the shareholders.
EXTRACT OF ANNUAL RETURN
As provided under Section 92(3) of the Act, the extract of annual return is given as "Annexure D" in the prescribed Form MGT-9, which forms part of this report.
DEPOSITS FROM PUBLIC
The Company has not accepted any deposits from public and as such, no amount on account of principal or interest on deposits from public was outstanding as on the date of the balance sheet.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
PARTICULARS OF EMPLOYEES
The Company does not have any employee on its roll as such the information required under Section 197 of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and the statement containing particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are not provided.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information as required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is Annexed herewith as "Annexure -B".
Your directors wish to thank and deeply acknowledge the valuable assistance; co-operation and support extended by the Central and State government authorities and bank during the year under review. The Board also gratefully acknowledges the support and goodwill extended by the shareholders of the company.
For and on behalf of the Board of Directors
DIN : 06930660
B. P. Yadav
DIN : 01173428
Date: May 29, 2017
Place: New Delhi