Radhey Trade Holding Ltd Directors Report.
To the Members(s)
The Board of Directors hereby submits the report of the business and operations of your Company along with the audited financial statements, for the financial year ended March 31, 2019.
|FINANCIAL RESULTS:||(Amount in Rs. Lakh)|
|Particulars||F.Y. 2018-19||F.Y. 2017-18|
|Revenue from operations||932.67||122.60|
|Operating expenditure before Finance cost, depreciation and amortization||903.29||131.87|
|Earnings before Finance cost, depreciation and amortization (EBITDA)||32.27||4.34|
|Less: Finance costs||0.00||0.00|
|Depreciation and amortization expense||-||-|
|Profit/(Loss) before tax||32.27||4.34|
|Less: Current Tax||7.50||0.83|
|Profit/(Loss) for the year (PAT)||23.22||5.06|
During the year the company has achieved Rs. 932.67 Lakhs Revenue as compare to last year Rs. 122.60 Lakhs Only. Also Consequently Net profit of the Company has also increase from Rs. 4.34 Lakhs to Rs. 32.27 Lakhs.
With a view to conserve and save the resources for future prospect of the Company, your Directors regret to declare dividend for the financial year 2018-19.
AMOUNT TRANSFERRED TO RESERVE
Your Directors do not propose transfer of any amount to the General Reserves. Full amount of net profit are carried to Reserve & Surplus account of the Company.
CHANGE IN NATURE OF BUSINESS
During the year, your Company has not changed its business or object and continues to be in the same line of business as per main object of the Company.
The present Authorized Capital of the Company is Rs. 3,25,00,000 divided into 32,50,000 Equity Shares of 10/- each.
ISSUED, SUBSCRIBED & PAID-UP CAPITAL
The present Issue, Subscribed & Paid-up Capital of the Company is Rs. 3,24,00,000 divided into 32,40,000 Equity Shares of 10/- each. During the year under review, there was no change took place in the authorized and paid-up share capital of the Company.
The Board of the Company regularly meets to discuss various Business opportunities. Additional Board meetings are convened as and when requires discussing and deciding on various business policies, strategies and other businesses. During the year under review, Board of Directors of the Company met 05 times on April 18, 2018; May 25, 2018; August 10, 2018; November 12, 2018; and February 06, 2019.
The gap between two consecutive meetings was not more than one hundred and twenty days as provided in section 173 of the Act.
In terms of Section 149 of the Companies Act, 2013 and rules made there under, the Company has Three Non-Promoter Independent Directors as on the date of report in line with the Companies Act, 2013. A separate meeting of Independent Directors was held on March 27, 2019 to review the performance of Non-Independent Directors and Board as whole and performance of Chairperson of the Company including assessment of quality, quantity and timeliness of flow of information between Company management and Board.
The terms and conditions of appointment of Independent Directors and Code for Independent Director are incorporated on the website of the Company at www.rholdings.org.
The Company has received necessary declaration from each independent director under Section 149 (7) of the Companies Act, 2013 that they meet the criteria of independence laid down in Section 149 (6) of the Companies Act, 2013.
|Sr. No.||Name of Independent Director||Date of Appointment||Date of Cessation|
|1||Mrs. Puja Sharma||04th August 2014||13th May 2019|
|2||Mr. Ashokkumar Shah||27th March, 2018||30th Oct 2018|
|3||Mr. Samir Chaudhary||18th April 2019||-|
|4||Mr. Harshil Shah||16th April 2019||-|
|5||Mrs. Sonal Sheth||07th June 2019||-|
KEY MANAGERIAL PERSONNEL
In accordance with Section 203 of the Companies Act, 2013, the Company has already appointed Mr. Rahul Sharma as Managing Director of the Company and Mr. Pankaj Sharma as Chief Financial Officer.
During the year under review Ms. Zalak Gajjar has tendered her resignation with effect from 01st November, 2018 and Ms. Shipra Mapara has been appointed as a Company Secretary and Compliance officer of the company from 1st March, 2019.
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 Companies Act, 2013 in the following manners;
a) 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.
b) 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.
c) 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.
d) In addition, the chairman was also evaluated on the key aspects of his role.
Separate meeting of independent directors was held to evaluate the performance of non- independent directors, performance of the board as a whole and performance of the chairman, taking into account the views of executive directors and non-executive directors. Performance evaluation of independent directors was done by the entire board, excluding the independent director being evaluated.
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 that:
a) In preparation of annual accounts for the year ended March 31, 2019, the applicable accounting standards have been followed and that no material departures have been made from the same;
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 or loss of the Company for that year;
c) The Directors had taken proper and sufficient care 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;
d) The Directors had prepared the annual accounts for the year ended March 31, 2019 on going concern basis.
e) The Directors had laid down the internal financial controls to be followed by the Company and that such Internal Financial Controls are adequate and were operating effectively; and
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.
Audit Committee meeting is generally held for the purpose of recommending the Quarterly, half yearly and yearly financial result. Additional meeting is held for the purpose of reviewing the specific item included in terms of reference of the Committee.
|Mrs. Sonal Sheth||Chairman|
|Mr. Harshil Shah||Member|
|Mr. Samir Chaudhary||Member|
The Statutory Auditors of the Company are invited in the meeting of the Committee wherever requires. Chief Financial Officer of the Company is a regular invitee at the Meeting. Recommendations of Audit Committee, wherever/whenever given, have been accepted by the Board.
STAKEHOLDERS GRIEVANCE & RELATIONSHIP COMMITTEE
The Company has constituted Stakeholders Grievance & Relationship Committee mainly to focus on the redressal of Shareholders/ Investors Grievances, if any, like Transfer / Transmission / Demat of Shares; Loss of Share Certificates; Non-receipt of Annual Report; Dividend Warrants; etc.
|Mrs. Sonal Sheth||Chairman|
|Mr. Harshil Shah||Member|
|Mr. Piyush Malde||Member|
During the year, the Company had not received any complaints from the Shareholders. There was no complaint pending as on March 31, 2019.
NOMINATION AND REMUNERATION COMMITTEE
The Company has formed Nomination and Remuneration committee in line with the provisions of Section 178 of the Companies Act, 2013. Nomination and Remuneration Committee meetings are generally held for identifying the persons who are qualified to become Directors and may be appointed in senior management and recommending their appointments and removal.
|Mr. Samir Chaudhary||Chairman|
|Mr. Harshil Shah||Member|
|Mrs. Sonal Sheth||Member|
NOMINATION AND REMUNERATION POLICY
Nomination and Remuneration Policy in the Company is designed to create a high performance culture. It enables the Company to attract motivated and retained manpower in competitive market, and to harmonize the aspirations of human resources consistent with the goals of the Company. The Company pays remuneration by way of salary, benefits, perquisites and allowances etc. to its Managing Director and the Executive Directors. Key points of the Nomination and Remuneration Policy are;
Policy on Appointment of Directors, Key Managerial Personnel and Senior Management Personnel:
a) The policy is formulated to identify and ascertain the integrity, qualification, expertise and experience of the person for appointment as Director, Key Managerial Personnel and Senior Management personnel and recommend to the Board for his / her appointment.
b) A person should possess adequate qualification, expertise and experience for the position he/ she is considered for appointment.
c) In case of appointment of Independent Director, the Committee shall satisfy itself with regard to the independent nature of the Director vis--vis the Company so as to enable the Board to discharge its function and duties effectively.
Policy on remuneration of Director, KMP and Senior Management Personnel:
a) The Companys remuneration policy is driven by the success and performance of Director, KMP and Senior Management Personnel vis--vis the Company. The Companys philosophy is to align them with adequate compensation so that the compensation is used as a strategic tool that helps us to attract, retain and motivate highly talented individuals who are committed to the core value of the Company. The Company follows mixed of fixed pay, benefits and performance based variable pay. The Company pays remuneration by way of salary, benefits, perquisites and allowance. The remuneration and sitting fees paid by the Company are within the salary scale approved by the Board and Shareholders.
The Nomination and Remuneration Policy, as adopted by the Board of Directors, is placed on the website of the Company at www.rholdings.org.
REMUNERATION OF DIRECTORS
The details of remuneration paid during the financial year 2018-19 to Directors of the Company are provided in Form MGT-9 which is the part of this report.
The Company has established a vigil mechanism and accordingly framed a Whistle Blower Policy. The policy enables the employees to report to the management instances of unethical behavior, actual or suspected fraud or violation of Companys Code of Conduct. Further the mechanism adopted by the Company encourages the Whistle Blower to report genuine concerns or grievances and provide for adequate safe guards against victimization of the Whistle Blower who avails of such mechanism and also provides for direct access to the Chairman of the Audit Committee, in exceptional cases. The functioning of vigil mechanism is reviewed by the Audit Committee from time to time. None of the Whistle blowers has been denied access to the Audit Committee of the Board. The Whistle Blower Policy of the Company is available on the website of the Company at www.rholdings.org.
The Company has not accepted any deposits from Shareholders and Public falling within the ambit of Section 73 of the Companies Act, 2013 and rules made there under. There were no deposits, which were claimed and remained unpaid by the Company as on March 31, 2019.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
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 Statement for the year ended on March 31, 2019.
EXTRACT OF ANNUAL RETURN
As provided under section 92(3) of the Companies Act, 2013, the details forming part of the extract of the Annual Return in Form MGT-9 is annexed to this Report as Annexure A.
TRANSACTIONS WITH RELATED PARTIES
During the year under review, there were no contracts or arrangements or transactions with related parties referred to in subsection (1) of section 188 of the Companies Act, 2013 was executed in terms of Section 188 of the Companies Act, 2013. Further, there were no related party transactions with the Companys Promoters, Directors, Management or their relatives, which could have had a potential conflict with the interests of the Company. All related party transactions to be entered by the Company will be in the ordinary course of business and on arms length basis and periodically will be placed before the Audit Committee for review.
INTERNAL FINANCIAL CONTROL (IFC) SYSTEMS AND THEIR ADEQUACY
Your Company has an effective internal control system, which ensures that all the assets of the Company are safeguarded and protected against any loss from unauthorized use or disposition. The Internal Auditors of the Company carry out review of the internal control systems and procedures. The internal audit reports are reviewed by Audit Committee. Your Company has also put in place adequate internal financial controls with reference to the financial statements commensurate with the size and nature of operations of the Company. During the year, such controls were tested and no material discrepancy or weakness in the Companys internal controls over financial reporting was observed.
MATERIAL CHANGES AND COMMITMENT
There are no material changes and commitments, affecting the financial position of the Company, have occurred between the ends of financial year of the Company i.e. March 31, 2019 to the date of this Report.
PARTICULAR OF EMPLOYEES
The ratio of the remuneration of each whole-time director to the median of employees remuneration as per Section 197(12) of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed to this Report as Annexure B.
The statement containing top ten employees in terms of remuneration drawn and the 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, is provided in a separate annexure forming part of this report. Further, the report and the accounts are being sent to members excluding this annexure. In terms of Section 136 of the Act, the said annexure is open for inspection at the Registered Office of the Company. Any shareholder interested in obtaining a copy of the same may write to Company Secretary.
SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
To foster a positive workplace environment, free from harassment of any nature, we have institutionalized the Anti-Sexual Harassment Initiative (ASHI) framework, through which we address complaints of sexual harassment at the all workplaces of the Company. Our policy assures discretion and guarantees non-retaliation to complainants. We follow a gender-neutral approach in handling complaints of sexual harassment and we are compliant with the law of the land where we operate. During the year under review, there were no incidences of sexual harassment reported.
A well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process is in place. The objective of the mechanism is to minimize the impact of risks identified and taking advance actions to mitigate it. The mechanism works on the principles of probability of occurrence and impact, if triggered. A detailed exercise is being carried out to identify, evaluate, monitor and manage both business and non-business risks.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Since the Company is not carrying on any manufacturing activities, the details of conservation of energy, technology absorption etc. as required to be given under section 134(3)(m) of the Companies Act 2013 read with the Companies (Accounts) Rules, 2014, are not applicable to the Company. Further, there was no foreign exchange earnings and outgo during the financial year 2018-19 (Previous Year Nil).
Your Company strives to incorporate the appropriate standards for corporate governance. However, pursuant to Regulation 15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Company is not required to mandatorily comply with the provisions of certain regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and therefore the Company has not provided a separate report on Corporate Governance, although few of the information are provided in this report under relevant heading.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report for the year under review, as stipulated under Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section forming part of this Annual Report.
STATUTORY AUDITOR AND THEIR REPORT
M/s. Doshi Maru & Associates, Chartered Accountants (Firm Registration No. 0112187W) were appointed as Statutory Auditors of your Company at the thirty sixth Annual General Meeting held on September 15, 2017, for a term till the conclusion of 41th Annual General Meeting to be held in the calendar year 2022, subject to ratification of appointment at every subsequent annual general meeting to be held after thirty sixth Annual General Meeting. The Report given by the Auditors on the financial statement of the Company is part of this Annual Report. There has been no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report.
REPORTING OF FRAUD
The Auditors of the Company have not reported any fraud as specified under Section 143(12) of the Companies Act, 2013.
SECRETARIAL AUDITOR AND THIEIR REPORT
The Company has appointed Mr. Suhas Bhattbhatt, Practicing Company Secretaries, to conduct the secretarial audit of the Company for the financial year 2018-19, as required under Section 204 of the Companies Act, 2013 and Rules thereunder. The Secretarial Audit Report for the financial year 2018-19 is annexed to this report as an Annexure C.
COMPLIANCE WITH THE PROVISIONS OF SECRETARIAL STANDARD 1 AND SECRETARIAL STANDARD 2
The applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to Meetings of the Board of Directors and General Meetings, respectively, have been duly complied by your Company.
Your Directors state that the Company has made disclosures in this report for the items prescribed in section 134 (3) of the Act and Rule 8 of The Companies (Accounts) Rules, 2014 and other applicable provisions of the act and listing regulations, to the extent the transactions took place on those items during the year. Your Directors further state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review or they are not applicable to the Company;
i. Details relating to deposits covered under Chapter V of the Act;
ii. Issue of Equity Shares with differential rights as to dividend, voting or otherwise;
iii. Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and ESOS;
iv. There is no revision in the Board Report or Financial Statement;
v. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companys operations in future;
vi. Information on subsidiary, associate and joint venture companies.
APPRECIATIONS AND ACKNOWLEDGEMENT
Your Directors wish to place on record their sincere appreciation for significant contributions made by the employees at all levels through their dedication, hard work and commitment during the year under review.
The Board places on record its appreciation for the support and co-operation your Company has been receiving from its suppliers, distributors, retailers, business partners and others associated with it as its trading partners. Your Company looks upon them as partners in its progress and has shared with them the rewards of growth. It will be your Companys endeavour to build and nurture strong links with the trade based on mutuality of benefits, respect for and co-operation with each other, consistent with consumer interests.
Your Directors also take this opportunity to thank all Shareholders, Clients, Vendors, Banks, Government and Regulatory Authorities and Stock Exchanges, for their continued support.
|Registered office:||For and on behalf of Board of Directors|
|Digvijay Plot, Street No. 51 Opposite|
|Makhicha Nivas Jamnagar -361005.||Piyush Malde|
|Place: Jamnagar||DIN 07689869|
|Date: September 02, 2019|