The Members,
Adhiraj Distributors Limited
Your directors present the i2thAnnual Report of your Company along with the
Financial Statements for the year ended 31st March, 2022.
Financial Highlights:
| Particulars |
Year Ending March, 2022 |
Year Ending March, 2021 |
|
Amt. in 00 |
Amt. in 00 |
| Sales |
1,01,964.53 |
2,55,026.70 |
| Other Income |
52,534.55 |
46,285.03 |
| Total Income |
1,54,499-08 |
3,01,311-73 |
| Less: Expenditure |
1,47,318.58 |
30,03,631.74 |
| Profit/ (Loss) before Exceptional items and Tax |
7,185.50 |
(27,02,320-01) |
|
- |
- |
| *Add: Exceptional items |
- |
27,00,000.00 |
| Profit/ (Loss) before Tax |
7,185-50 |
(2,320-01) |
| Less: Tax Expense |
|
- |
| Current Tax& Tax for Earlier Year |
1,259.96 |
- |
| Deferred Tax |
- |
- |
| Profit/ (Loss) after Tax |
5,920-54 |
(2,320-01) |
| Add: Profit/ (Loss) Brought Forward |
62,946.54 |
65,266.56 |
| Amount available for Appropriation/ (Loss) |
68,867.09 |
62,946-54 |
* Exceptional Item: Stock in trade is written off due to termination of contracts of
rights with party, as stock was not saleable
Appropriations:
The Company proposes to retain an amount of Rs. 5,92,054.22 and not recommending
dividend on equity shares. The Profit has been retained for future expansion of the
company.
Material changes and commitments after the end of financial year:
There have been no material changes and commitments, if any, affecting the financial
position of the Company, which have occurred between the end of the financial year and
date of the report
Issue of Shares
• The Company has not granted any Employees Stock Option.
• The Company has not issued any sweat Equity Shares.
• The Company has not issued any equity shares with differential rights.
Particulars of loans, guarantees or investment:
The Particulars of Loan given, Investment made, Guarantees given and securities
provided along with the purpose for which the loan or guarantee or security is proposed to
be utilised by the recipient are provided in the financial statement.
Energy Conservation, Technology Absorption, Foreign Exchange Earnings & Outgo:
Details of energy conservation are not applicable to the company, no technology has
been absorbed or imported by the company and Foreign Exchange earning & outgo is NIL.
Deposits:
The Company has not accepted any public deposits and, as such, no amount on account of
principal or interest on public deposits was outstanding as on the date of the balance
sheet.
Directors:
As per the provisions of the Companies Act, 2013, and the Articles of Association, Mr.
Gopal Agarwal is liable to retire by rotation at the 12thAnnual General
Meeting. Mr. Gopal Agarwal as confirmed his eligibility and willingness to accept the
office of Directorship of your Company, if appointed. In the opinion of your Directors,
Mr. Gopal Agarwal has the requisite qualifications and experience which would be of value
to your Company and would enable him to contribute to the Company in his capacity as the
Director of the Company.
The Board recommends that the resolution relating to the re-appointment as Managing
Director of Mr. Gopal Agarwal as Director of your Company be approved.
Maya Shaw, Company Secretary has resigned from the office on 17th February
2022 due to preoccupation.
Kirti Agarwal has been appointed as an Additional Director on 10th March
2022.Kirti Agarwal designation will be changed in this Annual General Meeting as
Independent Director.
None of the Directors or Key Managerial Personnel has any pecuniary relationships or
transactions with the Company, other than salaries, commission, sitting fees.
Declaration given by Independent Directors:
All Independent Directors have given declarations under Section 149(7) of the Companies
Act, 2013, that they meet the criteria of independence as provided under Section 149(6) of
the Companies Act, 2013 and SEBI (Listing Obligation and Disclosure Requirements)
Regulations,2015.
Familiarisation programme for Independent Directors:
The Companys familiarisation program for Independent Directors provides training at
the time of joining to enable them to understand the operations, business and other
details of the Company. The Independent Directors are regularly briefed on the
developments that are taking place in the Company and its operations, etc.
Number of meetings of the Board:
The Board meets at regular intervals to review the Companys businesses and discuss its
strategy and plans. A tentative annual calendar of the meetings is circulated to the
Directors in advance to enable them to plan their schedule and to ensure effective
participation.
During the year, seven board meetings were convened and held. The maximum interval
between the meetings did not exceed the period prescribed under the Companies Act, 2013
and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Committees of the Board:
The details of the composition of the Board and its Committees and of the meetings held
and attendance of the Directors at such meetings are provided in the "Report on
Corporate Governance".
Currently, the Board has the following Committees:
• Audit Committee
• Nomination and Remuneration Committee
• Stakeholders Relationship Committee
Directors Responsibility Statement:
To the best of their knowledge and belief and according to the information and
explanations obtained, your Directors make the following statements in terms of Section
134(3)^) of the Companies Act, 2013:
(i) That in the preparation of annual financial statements for the year ended 31st
March, 2022, the applicable accounting standards have been followed along with proper
explanations relating to material departures, if any;
(ii) That such accounting policies have been selected and applied consistently and
judgements and estimates that are reasonable and prudent have been made so as to give a
true and fair view of the state of affairs of the Company as of 31st March,
2022 and of the profit of the Company for that year;
(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 are in place and that the financial
controls are adequate and are operating effectively.
(vi) Those systems to ensure compliance with the provisions of all applicable laws are
in place and that such systems are adequate and are operating effectively.
Management Discussion & Analysis Report and Report on Corporate Governance:
As per SEBI (Listing Obligation and Disclosure Requirement) Regulation,2015withthe
Bombay Stock Exchange Limited, the Corporate Governance Report and the Management
Discussion and Analysis Report are annexed and form part of the Directors Report
(Annexure V& 2 respectively).
Certificate dated 3rd September, 2022 from a Practicing Company Secretary
Ayushi Khaitan (M. No. 52589), regarding the compliance of conditions of Corporate
Governance as stipulated in as per SEBI (Listing Obligation and Disclosure Requirement)
Regulation,2015withthe Stock Exchange is annexed to this Report (Annexure 1) UDIN: A052589D000902394
Directors Appointment and Remuneration Policy:
The Board has, on recommendation of the Nomination and Remuneration Committee
formulated a policy for selection and appointment of Directors, senior Managements and
their remuneration. The details of the said policy are stated in the Corporate Governance
Report. (Annexure 3)
Annual Evaluation of Performance by the Board:
Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligation and
Disclosure Requirement) Regulation 2015, the Board has carried out an evaluations of its
own performance, the directors individually as well as the evaluation of the working of
its Audit Committee and Nomination and Remuneration Committee. The manner in which the
evaluation has been carried out is mentioned in the Corporate Governance Report.
Related Party Transaction:
All Related Party Transactions that were entered into during the financial year were on
arms length basis and were in the ordinary course of business. There are no materially
significant related party transactions made by the Company with Promoters, Key Managerial
Personnel or other designated persons which may have potential conflict with interest of
the Company at large.
Corporate Social Responsibility:
Pursuant to clause (o) of sub-section (3) of Section 134 of the Act and Rule 9 of the
Companies (Corporate Social Responsibility) Rules, 2014.
The Company has not developed and implemented any Corporate Social Responsibility
initiative as the said provisions are not applicable.
Prevention of Insider Trading:
The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view
to regulate trading in securities by the Directors and designated employees of the
Company. The Code requires preclearance for dealing in the Companys shares and 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 Policy is hosted on Companies
Website www.adhiraidistributors.com.
Code of Conduct
The Company has a Code of Conduct which is applicable to directors and management
personnel of the Company. The Company believes in conducting business in accordance with
the highest standards of business ethics and complying with applicable laws, rules and
regulations.
The Code lays down the standard procedure of business conduct which is expected to be
followed by the directors and management personnel in their business dealings and in
particular on matters relating integrity in the work place, in business practices and
complying with applicable laws etc. The Policy is hosted on Companies Website
www.adhiraidistributors.com. A declaration regarding Code of Conduct is signed by the
Managing Director of the Company and enclosed in Corporate Governance Report.
Vigil Mechanism/Whistle Blower Policy
As per Section 177(10) of the Companies Act, 2013 read with Rule 7 of Companies
(Meetings of Board and its Powers) Rules, 2014, the Company has established an effective
vigil mechanism named Whistle Blower Policy ("the Policy") which is also in
conformity with the Regulation 22 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, with a view to provide a mechanism for Directors and
Employees of the Company inter alia to raise genuine concerns of any violations of legal
or regulatory requirements, incorrect or misrepresentation of any financial statements and
reports, etc. The Company encourages its employees to use the mechanism and has made
provision for direct access to the Chairman of the Audit Committee in appropriate and
exceptional cases. Adequate safeguards against victimization of the persons who use such
mechanism are provided in the policy. The policy is posted on the website 0fthe Company
www.adhiraidistributors.com.
Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013
The Company has in place a policy for prevention of sexual harassment in accordance
with the requirements of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition &Redressal) Act, 2013. Internal Complaints Committee has been set up to
redress complaints received regarding sexual harassment. All employees (permanent,
contractual, temporary, trainees) are covered under this policy.
The Company did not receive any complaint during the year 2021-22.
Internal Financial Control
The Company has in place adequate internal financial controls with reference to
financial statements. During the year, such controls were tested and no reportable
material weaknesses in the design or operation were observed.
Extract of Annual Return:
In accordance with Section 134(3)(a) of the Companies Act, 2013, an extract of the
Annual Return in form MGT-9 is annexed herewith as "Annexure 4"
Details pertaining to remuneration as required under section 197(12) of the companies
act, 2013 read with rule 5(1) of the companies (appointment and remuneration of managerial
personnel) rules, 2014.
i. The percentage increase in remuneration of each Director, Chief Financial Officer
and Company Secretary during the financial year 2021-22, ratio of the remuneration of each
Director to the median remuneration of the employees of the Company for the financial year
2021-22 and the comparison of remuneration of each Key Managerial Personnel (KMP) against
the performance of the Company are as under:
| Sl N o. |
Name of the Director / KMP & Designat ion |
Remuner ation of Director / KMP for the FY 2021- 22(Rs.00) |
% inc rea se in Re mu ner
ati on in the FY 20 21 22 |
Ratio of Remun eratio n of each Direct or / to media n
remun eratio n of emplo yees |
Compar ison of the Remun eration of the KMP against the perform
ance of the compan y |
| 1 |
Gopal Agarwal (M.D.) |
600.00 |
NIL |
0.18 |
PAT increase by 355.19 |
| 2 |
Maya Shaw (Compan y Secretar y) |
2,100.00 |
NIL |
0.64 |
PAT increase by 355.19 |
| 3 |
Subhas Agarwal (CFO) |
1,800.00 |
NIL |
?.55 |
PAT increase by 355.19 |
The median remuneration of employees of the Company during the financial year was Rs.
3.30 Lakhs.
ii. There were 7 permanent employees working in the Company as on March 31, 2022
ii. There is no change in remuneration of Managing Director as the performance of the
Company increase by 355.19% to Rs. 5.92 Lacs in 2021-22 (loss 2.32 Lacs in 2020-21). The
key parameters for the variable component of remuneration availed by the directors are
considered by the Board of Directors based on the recommendations of the Nomination and
Remuneration Committee as per the Remuneration Policy for Directors, Key Managerial
Personnel and other Employees.
The ratio of the remuneration of the highest paid director to that of the employees who
are not directors but receive remuneration in excess of the highest paid director during
the year.
It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for
Directors, Key Managerial Personnel and other Employees.
Statutory Auditors:
In compliance with the provisions of Section 139 and other applicable provisions of the
Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any
statutory modification (s)/ reenactment^)/ amendment(s) thereof, for the time being in
force), M/s. A Agarwal & Associates (Firm Registration No. 326873E), were appointed as
Statutory Auditors at the 8th Annual General Meeting of the Company held on 28th
September 2018 to hold office for the term of five (5) consecutive years from the
conclusion of the 8thAnnual General Meeting until the conclusion of the 13th
Annual General Meeting of the Company subject to the ratification at the Annual General
Meeting in each of the subsequent years during the aforementioned term of their
appointment.
However, with the Notification dated May 7, 2018 issued by the Ministry of Corporate
Affairs (MCA), the first proviso to section 139 (1) of the Companies Act, 2013
pertaining to the requirement of annual ratification of appointment of Auditors by Members
is omitted.
Accordingly, as per the Companies (Amendment) Act, 2017, ratification of the
appointment of Statutory Auditors during their period of appointment will not be
considered.
Secretarial Auditors:
In accordance with Section 204 of the Companies Act, 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has
appointed Mrs. Ayushi Khaitan, Company Secretaries, (ACS No. 52589 and CP No. 19325) to
undertake the Secretarial Audit of the Company. The Secretarial Audit Report for the
financial year 2021-22 is set out in the Annexure 5to this Report.
Risk Management Policy
Pursuant to section 134(3) (n) of the Companies Act, 2013, the Board of directors of
the Company has adopted a Risk management Policy of the Company. The Company manages
monitors and reports on the principal risks and uncertainties that can impact its ability
to achieve its strategic objectives.
Acknowledgements:
Your Directors wish to place on record their sincere appreciation for the continuous
support and cooperation received from customers, dealers, suppliers, financial
institutions and others in successfully conducting the Companys business operations. Your
Directors also wish to place on record their deep sense of appreciation for the commitment
and dedicated service of the Companys employees. Your Directors also acknowledge with
gratitude the encouragement and support extended by our valued shareholders.
On behalf of the Board of Directors,
For Adhiraj Distributors Limited
SD/-
Mr. Subhas Agarwal
Chief Financial officer
Date: 30th May, 2022
+91-9892691696
