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Rajsanket Realty Limited.
Your Directors present their 33rd Annual Report and the Audited Annual Accounts for the year ended 31st March, 2018.
1. Financial Performance:
Your Company has adopted Indian Accounting Standards (Ind AS) from 1st April, 2017 and these are the Companys first annual financial statements prepared in accordance with Ind AS, with comparatives for the previous year restated as per Ind AS.
The Companys Financial Performance for the financial year ended on 31st March, 2018 under review along with previous years figures are given hereunder:
|(Amount in Rs.)|
|Particulars||F. Y. 2017-18||F. Y. 2016-17|
|(As at 31/03/2018)||(As at 31/03/2017)|
|Less: Total Expenses||1,230,379,047||121,921,734|
|Profit /(Loss) before tax||61,001,487||7,864,884|
|Profit /(Loss) for the year after tax||(48,496,360)||4,961,670|
Your Directors do not recommend any dividend for the financial year ended 31st March, 2018.
3. Transfer To Reserves:
During the year under review, no amount has been transferred to reserves.
4. Transfer of unclaimed dividend to investor education 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 in previous years.
5. Share Capital:
Issue of equity shares with differential rights
During the financial year under review, there was no issue of equity shares with differential rights in terms of rule 4 (4) of Companies (Share Capital and Debentures) Rules, 2014.
Issue of sweat equity shares:
During the financial year under review, there was no issue of sweat equity shares as provided in rule 8 (13) of Companies (Share Capital and Debentures) Rules, 2014.
Buy back of securities:
The company has not bought back any of its securities during the year under review.
Issue of bonus shares:
No bonus shares were issued during the year under review.
Issue of shares under employees stock option plan:
The company has not provided any stock option scheme to the employees.
6. Corporate Social Responsibility:
The Company has not developed and implemented any Corporate Social Responsibility initiatives as the provisions of Section 135 of the Companies Act, 2013 are not applicable.
7. Human Resources:
Employees are the key assets of the Company and the Company has created a healthy and productive work environment which encourages excellence. Your Company has put in place a scalable requirement and human resource management process, which enables it to attract and retain employees of the high caliber. The Company continuously invests in training staff in the latest technology.
8. Risk Management Policy:
The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. The Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested and certified by Statutory as well as Internal Auditors.
9. Internal Financial Controls with reference to Financial Statements:
The Company has in place adequate internal control with reference to financial statements. The Board has adopted the policy and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Companys policies, safeguarding of its assets, the prevention and detection of errors and fraud, the accuracy and completeness of the accounting records.
10. Directors Responsibility Statement:
Pursuant to Section 134(3)(c) of the Companies Act, 2013, your directors, to the best of their knowledge and ability confirm that:
(a) in the preparation of the annual accounts, for the year ended March 31st 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
(b) they have selected such accounting policies have been selected and applied consistently and judgment and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March, 31st 2018 and of loss of the Company for the year ended on that date;
(c) they have taken 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;
(d) they have prepared the annual accounts on a going concern basis;
(e) they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.
(f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
11. Directors and Key Managerial Personnel:
During the year under review, no changes has been occurred in the composition of the Board.
None of the Directors are disqualified for being appointed as the Director of the Company in terms of Section 164 of the Companies Act, 2013. The Company has received declarations from Independent Directors of the Company stating that they have meet criteria of independence as mentioned under Section 149(6) of the Companies Act, 2013.
Performance Evaluation of the Board, Committees and Director
Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015, the Board has carried out an evaluation of its own performance, performance of Individual Directors and the working of its Committees.
The Director made a self-assessment of their effectiveness in terms of attendance, contribution at Meetings and guidance/support extended to the Management outside Board/ Committee Meetings. The feedback received from the Directors was discussed and reviewed by the Independent Directors and also shared with Nomination and Remuneration Committee.
Declaration by Independent Director:
The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of independence as prescribed both under sub-section (6) of Section 149 of the Companies Act, 2013 and SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015.
This policy on nomination and remuneration of Directors, Key Managerial Personnel and Senior Management has been formulated by the Nomination and Remuneration Committee and approved by the Board of Directors, in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015. This policy lays down the criteria for determining qualifications, positive attributes and independence of directors and selection and appointment of Directors, Senior Management and their remuneration and evaluation of Independent Director and the Board. This policy also includes the Policy on Board diversity.
Number of Meetings of the Board:
During the year under review, Ten Meeting of the Board of Directors were held. The intervening gap between any two meetings was within the period prescribed by the Companies Act, 2013.
12. Audit Committee Composition
The Composition of the Audit Committee of the Company is as follows:
1. Shri. Jignesh P. Waghela Chairperson of the Committee
2. Smt. Nayna S. Desai Member of the Committee
3. Shri. Haresh Sutaria - Member of the Committee
13. Details of establishment of vigil mechanism for director and employees:
The Company had adopted a Whistle Blower Policy ("the Policy") as required under Section 177(9) of the Companies Act, 2013 and SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015. The Policy has been formulated with a view to provide a mechanism for directors and employees of the Company to approach the Ethics Counsellor/Chairman of the Audit Committee of the Company in case of any concern.
14. Contracts and Arrangements with Related Parties:
The particulars of contracts or arrangements with related parties referred to in sub section (1) of section 188 of the Companies Act, 2013, entered by the Company during the financial year ended 31st March, 2018 is annexed hereto as Annexure "D"in prescribed Form AOC-2 and forms part of this report.
15. Particulars of Loans given, Investments made, Guarantees given and Securities provided:
During the year the Company has given the loans under section 186 of the Companies Act, 2013 and details of which are as under:
|Sr. No.||Name of Entity to whom loan given||Gross Amount in Rupees of Loan Given|
|1.||Rajesh Estate And Nirman Private Limited||7,02,20,000/-|
|2.||Rajesh Milestone Developers Private Limited||24,55,50,000/-|
|3.||Rajesh Habitat Private Limited||5,95,00,000/-|
However, during the year under review there were no guarantees given, investments made and securities provided by the company under Section 186 of the Companies Act, 2013.
16. Particulars of Employees:
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 are annexed herewith as Annexure "A" to this report.
However, the company does not have any employee who is in receipt of remuneration which falls within the limits as specified in rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Hence, the disclosure under said rule is not applicable to the Company for the financial year 2017-18.
17. Statutory Auditors:
M/s. Ambavat Jain & Associates LLP, Chartered Accountants were appointed as Statutory Auditors of Company at the Annual General Meeting held on 28th September, 2017, for a term of five consecutive years, subject to ratification by Members at every intervening Annual General Meeting.
However, in accordance with the Companies Amendment Act, 2017, enforced on 07th May, 2018 by the Ministry of Corporate Affairs, the appointment of Statutory Auditors is not required to be ratified by the members of the Company at every intervening Annual General Meeting.
18. Auditors Report:
The Auditors Report to the Shareholders for financial year 2017-18 does not contain any qualifications, reservation or adverse remark and however on the observation given by the auditor, your directors hereby state the following:
i) In respect of the provident fund dues for the period from April, 2012 to September, 2017 amounting to Rs. 96,03,940/-, that the said dues are not as such because of any demand notice but it is only book entry for the provision made in respect of liability of the indirect labourers employed by the contractors which can arise only if , the said contractors fails to discharge their liability.
ii) In respect of property tax dues from April, 2012 to September, 2017 amounting to Rs. 4,04,91,040/-, that the liability in question is because of demand raised based on capital value fixed by MCGM. However, several petitioners have challenged the demand raised based on capital value by MCGM in various courts/appropriate authorities and such litigation matters have not been disposed off yet. Hence, MCGM has not determined the final liability.
iii) In respect of Maharashtra Vat (MVAT) dues amounting to Rs.17,93,404/- for the period from April, 2017 to June, 2017, the liability for which arose as per notification no. VAT.1517/C.R.57/Taxation-1 dated 26th May, 2017 issued by Finance Department of Maharashtra Government, that the Company is under process of collecting the said amounts from the customers and the said liability will be discharged accordingly.
19. Secretarial Auditors:
M/s. V. V. Chakradeo & Co., the Practicing Company Secretaries were appointed as Secretarial Auditor to undertake Secretarial Audit of the Company for the year 2017-18. Their Secretarial Audit Report, in prescribed From No. MR-3, is annexed herewith as Annexure "B" to this report.
The Secretarial Audit Report does not contain any qualification reservation or adverse remark.
20. Internal Auditors:
In accordance with provisions of Sections 138 of the Companies Act, 2013 and pursuant to the recommendation of the Audit Committee, Shri. Vasant J. Mehta, Chartered Accountants, (Firm Reg. No. 138554W), has been appointed as Internal Auditor of the Company for conducting Internal Audit of the Company for the Financial Year 2017-18.
The Internal Auditor independently evaluate the internal controls, adherence to and compliance with the procedures, guidelines and statutory requirements.
The Audit Committee of Directors periodically reviews the reports of the internal auditors and corrective actions taken by the Management with regard thereto.
21. Conservation of Energy, Technology Absorption, Foreign Exchange Earnings & Outgo:
The information as required under Section 134(3)(m) of the Companies Act, 2013 with respect to conservation of energy, technology absorption are not applicable to the Company.
Foreign Exchange Earnings And Outgo
During the year, Foreign Exchange Earnings was of Rs. Nil (Previous year of Rs. Nil).
During the year, Foreign Exchange Outgo was of Rs.1,85,63,773/- (Previous year of Rs.
22. Extract of Annual Return:
The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as "Annexure C" to this report.
23. Public Deposit:
The company has not invited/accepted any deposit from the Public during the year under review.
Your Directors 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:
a. The Whole-time Director of the Company has not received remuneration or commission.
b. No significant or material order were passed by the regulators or courts or tribunals which impact the going concern status and the Companys operation in future.
c. During the year, there were no event of the Sexual Harassment of Women at Workplace occurred and also no cases filed pursuant to the Sexual Harassment of Women at Workplace Prevention, Prohibition and Redressal) Act, 2013.
Your Directors would like to express their sincere appreciation for the assistance and cooperation received from the customers, vendors and members during the year under review. Your directors also wish to place on record their deep sense of appreciation for the committed services by the Companys executives, staff and workers.
Note: Notes given in the notes forming part of accounts are self-explanatory, therefore it does not require any explanation from the Board.
On Behalf of the Board of Directors
For Rajsanket Realty Limited
Shri Haresh Sutaria
Date: 30th May, 2018
ANNEXURE "A" TO DIRECTORS REPORT
Disclosure pursuant 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
A. Given below are the details of % increase in remuneration of each Director, Chief Financial
Officer and Company Secretary, ratio of the remuneration of each Director to the median remuneration of the employees of the Company and the comparison of remuneration of each Key Managerial Personnel (KMP) against the performance of the Company for the financial year 2017-18:
|Sr. No.||Name of Director/KMP and Designation||Remuneration of Director /KMP for FY 2017-18 (Rs.)||% increase in Remuneration in the FY 2017-18||Ratio of remuneration of each Director to median remuneration of employees|
|1||Shri Haresh Sutaria||0||0||0|
|(Whole Time Director)|
|2||Shri Anuj M. Patel||0||0||0|
|3||Shri Jignesh P. Waghela||0||0||0|
|4||Smt. Nayna S. Desai||0||0||0|
|B.||Key Managerial Personnel (KMP)|
|1||Shri Amit J. Sheth||8,75,000/-||34.6153%||N.A.|
|(Chief Financial Officer)|
|2||Shri Ketan Trivedi||9,94,871/-||43.1345%||N.A.|
B. Other disclosures in respect of median remuneration are given below:
|1||Percentage increase in median remuneration of employees in the financial year||20.91%|
|2||Number of permanent employees on the rolls of company||30|
|3||Average percentile increase already made in the salaries other than the Managerial Personnel in the last financial year and its comparison with the percentile in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration.||The average annual increase was around 17.95%. However, Increase in the managerial remuneration for the year was 39.01%.|
|4||Remuneration as per Policy||The Remuneration paid to Directors/ KMP /senior management personnel / employees was as per the Remuneration policy of the Company.|