Today's Top Gainer
Note:Top Gainer - Nifty 50 More
To the Members,
The Directors have pleasure in presenting before you the 28 Directors Report of the Company together with the Audited Statements of Accounts for the year ended 31 March, 2018. The Companys performance is summarized below:
1. FINANCIAL SUMMARY/HIGHLIGHTS:
The performance during the period ended 31 March, 2018 has been as under:
(Amount In Rs.)
|Profit before Finance charges, Depreciation and Taxation||40,380,846||47,077,644|
|Less: Finance charges (excluding amount capitalized)||19,545,145||17,144,358|
|Profit before Depreciation and Taxation||20,835,702||29,933,286|
|Less : Depreciation||4,227,036||4,073,923|
|Profit for the year after Depreciation||16,608,666||25,859,363|
|Less : Provision for taxation||3,554,399||5,210,189|
|Less : Deferred tax||(14,046,528)||8,573,413|
|Profit after Tax||27,100,795||12,075,761|
2. REVIEW OF OPERATIONS:
During the year under review, the Company has recorded an income of Rs. 40,51,15,373 and profit of Rs. 2,71,00,795 respectively as against the income of Rs. 41,52,17,358 and profit of Rs.12,07,5761 respectively in the previous financial year ending 31.03.2017.
The Board is of the view that the future of the Industry is bright and expects liberal Govt. Policies
3. MATERIAL CHANGES AND COMMITMENTS:
There were no material changes and commitments affecting financial position of the company between 31st March, 2018 and the date of Boards Report. (i.e. 14.08.2018)
4. CHANGE IN THE NATURE OF BUSINESS, IF ANY:
During the period under review and the date of Boards Report there was no change in the nature of Business.
Keeping the Companys revival plans in mind, your Directors have decided not to recommend dividend for the year.
6. TRANSFER TO RESERVES:
The Company has not carried any amount to reserves.
7. BOARD MEETINGS:
The Board of Directors duly met 4 (Four) times on 29.05.2017, 14.08.2017, 13.12.2017 and 10.02.2018 and in respect of which meetings, proper notices were given and the proceedings were properly recorded and signed in the Minutes Book maintained for the purpose.
8. 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.
9. DISCLOSURE UNDER SECTION 43(a)(ii) OF THE COMPANIES ACT, 2013:
The Company has not issued any shares with differential rights and hence no information as per provisions of Section 43(a) (ii) of the Act read with Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014.
10. DISCLOSURE UNDER SECTION 54(1)(d) OF THE COMPANIES ACT, 2013:
The Company has not issued any sweat equity shares during the year under review and hence no information as per provisions of Section 54(1)(d) of the Act read with Rule 8(13) of the Companies (Share Capital and Debenture) Rules, 2014.
11. DISCLOSURE UNDER SECTION 62(1)(b) OF THE COMPANIES ACT, 2013:
The Company has not issued any equity shares under Employees Stock Option Scheme during the year under review and hence no information as per provisions of Section 62(1) (b) of the Act read with Rule 12(9) of the Companies (Share Capital and Debenture) Rules, 2014.
12. DETAILS OF SIGNIFICANT MATERIAL ORDERS PASSED BY REGULATORS, COURTS, TRIBUNALS, IMPACTING THE GOING CONCERN BASIS OF THE COMPANY:
There were no significant material orders passed by regulators, courts, tribunals, impacting the going concern basis of the Company.
13. CORPORATE GOVERNANCE:
A Separate section titled "Report on Corporate Governance" along with the Auditors Certificate on Corporate Governance as stipulated under Regulation 34 read with Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as a part of this Annual Report.
14. VIGIL MECHANISM
The Company believes in the conduct of the affairs of its constituents in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity and ethical behavior. In line with the Code of Conduct, any actual or potential violation, howsoever insignificant or perceived as such, would be a matter of serious concern for the Company. The role of the employees in pointing out such violations of the Code of conduct cannot be undermined. Pursuant to Section 177(9) of the Act, a vigil mechanism was established for directors and employees to report to the management instances of unethical behavior, actual or suspected, fraud or violation of the Companys code of conduct or ethics policy. The Vigil Mechanism provides a mechanism for employees of the Company to approach the Chief Financial Officer of the Company for redressal.
15. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management discussion and analysis report for the year under review as stipulated under Regulation 4(3) read with Schedule V, Part B of SEBI(Listing Obligations and Disclosure Requirements), Regulations 2015 with the stock exchange in India is presented in a separate section forming part of the annual report.
16. DIRECTORS AND KEY MANAGERIAL PERSONNEL:
No Directors or Key Managerial Personnels have resigned during the year. As required underregulation 36 (3) of the SEBI (LODR), Regulations, 2015, brief particulars of the Directors seekingappointment/re-appointment are given as under:-
|Name of the Director||P. Srinivas Reddy||P. Samantha Reddy|
|Date of Birth||20/08/1965||18/12/1969|
|Date of Appointment||01/04/2018||14/08/2014|
|Expertise in specific functional areas||He has vast knowledge and experience in granite industry.||She has 23 years of professional and entrepreneurial experience in for profit and not for profit enterprises, Large corporate and start-up companies in varied role ranging from Business strategy to financial management and product management.|
|Qualifications||Masters in Engineering||Sloan Fellowship London Business School|
|Names of the Listed entities in which the person is holding Directorships or Board Committee Memberships||Nil||Nil|
|Inter se relationship among Directors||Spouse of Mrs. P. Samantha Reddy, whole time Director||Spouse of Mr. P. Srinivas Reddy, Managing Director|
17. BOARD EVALUATION:
Pursuant to the applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations, the Board has carried out an Annual Evaluation of its own performance, performance of the Directors and the working of its Committees. The Boards functioning was evaluated on various as pects, including inter alia degree of fulfillment of key responsibilities, Board structure and composition, establishment and delineation of responsibilities to various Committees, effectiveness of Board processes, information and functioning.
Evaluation of the Committees performance was based on the criteria like composition, its terms of the reference and effectiveness of committee meetings, etc., Individual Directors performance evaluation is based on their preparedness on the issues to be discussed, meaningful and constructive discussions and their contribution to the Board and Committee meetings. The Chairperson was evaluated mainly on key aspects of his role. These performance exercises were conducted seeking inputs from all the Directors / Committee Members wherever applicable.
The evaluation procedure followed by the company is as mentioned below:
i) Feedback is sought from each Director about their views on the performance of the Board, covering various criteria such as degree of fulfillment of key responsibilities, Board structure and composition, establishment and delineation of responsibilities to various Committees, effectiveness of Board processes, information and functioning, Board culture and dynamics, quality of relationship between the Board and the Management and efficacy of communication with external stakeholders. Feedback was also taken from every Director on his assessment of the performance of each of the other Directors.
ii) The Nomination and Remuneration Committee (NRC) then discusses the above feedback received from all the Directors.
iii) Based on the inputs received, the Chairman of the NRC also makes a presentation to the Independent Directors at their meeting, summarizing the inputs received from the Directors as regards Board performance as a whole and of the Chairman. The performance of the Non-Independent Non-Executive Directors and Board Chairman is also reviewed by them.
iv) Post the meeting of the Independent Directors, their collective feedback on the performance of the Board (as a whole) is discussed by the Chairman of the NRC with the Chairman of the Board. It is also presented to the Board and a plan for improvement is agreed upon and is pursued.
v) Every statutorily mandated Committee of the Board conducts a self-assessment of its performance and these assessments are presented to the Board for consideration. Areas on which the Committees of the Board are assessed include degree of fulfillment of key responsibilities, adequacy of Committee composition and effectiveness of meetings.
vi) Feedback is provided to the Directors, as appropriate. Significant highlights, learning and action points arising out of the evaluation are presented to the Board and action plans are drawn up. During the year under report, the recommendations made in the previous year were satisfactorily implemented.
The peer rating on certain parameters, positive attributes and improvement areas for each Board member are also provided to them in a confidential manner. The feedback obtained from the interventions is discussed in detail and, where required, independent and collective action points for improvements are put in place.
18. EXTRACT OF ANNUAL RETURN:
As required pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014, an extract of annual return in MGT 9 as a part of this Annual Report.
19. COMMITTEES OF THE BOARD:
The Committees of the Board focus on certain specific areas and make informed decisions in line with the delegated authority.
The following statutory Committees constituted by the Board function according to their respective roles and defined scope:
Audit Committee of Directors
Nomination and Remuneration Committee
Stakeholders Relationship Committee
Risk Management Committee
Details of composition, terms of reference and number of meetings held for respective committees are given in the Report on Corporate Governance, which forms a part of this Report.
20. AUTHORISED AND PAID UP CAPITAL OF THE COMPANY:
The authorized capital of the company stands at Rs. 12,00,00,000 /- divided into 1,20,00,000 equity shares of Rs.10/- each and The companys paid up capital stands at Rs.10,58,60,000 divided into 1,05,86,000 equity shares of 10/- each.
21. DECLARATION FROM INDEPENDENT DIRECTORS ON ANNUAL BASIS:
The Company has received declarations from Mr. M. Mohan Reddy, Mr. Konduri Nanda Kumar and Mr. Sree Rama Krishna Gandhi, Independent directors of the company to the effect that they are meeting the criteria of independence as provided in Sub-section (7) of Section 149 of the Companies Act, 2013 and Regulation 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
22. DIRECTORS RESPONSIBILITY STATEMENT:
In pursuance of section 134 (5) of the Companies Act, 2013, the Directors hereby confirm that:
a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
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 and loss of the company for that period;
c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
d) The Directors had prepared the annual accounts on a going concern basis; and
e) The Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
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.
23. INFORMATION ABOUT THE FINANCIAL PERFORMANCE / FINANCIAL POSITION
OF THE SUBSIDIARIES / ASSOCIATES:
The company does not have any subsidiaries/Associate companies.
24. DETAILS IN REPECT OF FRAUDS REPORTED BY AUDITORS UNDER SUB-SECTION (12) OF SECTION 143 OTHER THAN THOSE WHICH ARE REPORTABLE TO CENTRAL GOVERNMENT.
There were no frauds reported by the auditors as per section 143 (12).
25. STATUTORY AUDITORS:
The members of the company in accordance with section 139 of the Companies Act, 2013had passed a resolution for appointment of M/s. Mahadevan & Co, as Statutory Auditors of the company for a period of 5 years in the AGM held on 22.09.2017 to hold office up to the conclusion of 32nd Annual General Meeting of the company to be held in the financial year 2020-21 which was subject to ratification as per the provisions of Companies Act, 2013.
However, pursuant to notification from the MCA dated 07.05.2018, ratification of appointment of statutory auditors at every Annual General Meeting has been omitted.
26. INTERNAL AUDITORS:
In terms of Section 138 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, the Company has appointed M/s. Suresh Babu & Co., in the Board Meeting held on 30.05.2018 Chartered Accountants, Hyderabad (Firm RegNo.013585S) as the Internal Auditor of the Company.
27. SECRETARIAL AUDIT:
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 had appointed M/s. S. S. Reddy & Associates, a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Company. The Report of the Secretarial Audit carried out is annexed herewith as Annexure "C". The report does not contain any observation or qualification requiring explanation or comments from the Board under Section 134(3) of the Companies Act, 2013.
The Board at its meeting held on May 30, 2018, has reappointed M/s. S. S. Reddy & Associates, Practicing Company Secretaries, as Secretarial Auditor, for conducting Secretarial Audit of the Company for FY 2017-18.
28. AUDIT REPORTS:
(a) Statutory Auditors Report:
The Board has duly reviewed the Statutory Auditors Report on the Accounts for the year ended March 31, 2018 and has noted that the same does not have any reservation, qualification or adverse remarks. However, the Board decided to further strengthen the existing system and procedures to meet all kinds of challenges that may occur in the industry.
(b) Secretarial Audit Report:
The Board has duly reviewed the Secretarial Audit Report on the Compliances according to the provisions of section 204 of the Companies Act 2013 and there are no qualifications in the report.
29. INDIAN ACCOUNTING STANDARDS
The Ministry of Corporate Affairs vide its notification dated 16th February, 2015 has notified the Companies (Indian Accounting Standards) Rules, 2015. In pursuance of the said notification, the Company has adopted the Indian Accounting Standards (Ind AS) with effect from 01st April, 2017. Accordingly the Company has restated and reported the financials for the previous year as per Indian Accounting Standards
30. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:
The required information as per Sec.134 of the Companies Act 2013 is provided hereunder:
A. Conservation of Energy:
|No. of Units consumed||15,77,540||17,68,240|
|Unit Rate (Rs.)||7.93||7.84|
|Total Amount (Rs.)||1,25,16,238||1,38,60,917|
|No. of Units Consumed (Ltrs)||3,000||5,400|
|Unit Rate (per Ltr.) (Rs.)||64.04||58.06|
|Total Amount (Rs.)||1,92,120||3,13,546|
B. Technology Absorption:
1. Research and Development (R&D): NIL
2. Technology absorption, adoption and innovation:NIL
C. Foreign Exchange Earnings and Out Go:
The Foreign exchange out go and Earnings are as follows:
|Rs. in lakhs|
|Foreign Exchange Outgo:|
|Import of RM, Consumables, Spares||167.09||199.32|
|Capital goods and Foreign Travelling|
31. CORPORATE SOCIAL RESPONSIBILTY POLICY:
Since Company does not has the net worth of Rs. 500 Crore or turnover of Rs. 1000 Crore or more or a net profit of Rs. 5 Crore or more during the financial year, section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility is not applicable and hence the Company need not adopt any Corporate Social Responsibility Policy.
32. SECRETARIAL STANDARDS:
The company is in compliance with Secretarial Standards issued by The Institute of Company Secretaries of India on Meetings of the Board of Directors and General Meetings.
33. INSURANCE :
The properties and assets of Company are adequately insured.
34. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The company has not given loans, Guarantees or made any investments during the financial year under review.
35. CREDIT & GUARANTEE FACILITIES:
The Company has been availing facilities of Credit and Guarantee as and when required, for the business of the Company, from Andhra Bank Ltd. Personal Guarantee was given by the Mr.P.Srinivas Reddy Managing Director and Mrs. P.Samantha Reddy, whole-time Director without any consideration for obtaining Bank Guarantees.
36. DISCLOSURE OF INTERNAL FINANCIAL CONTROLS:
The Company has in place adequate internal control systems, which commensurate with its size, nature of business and complexity of its operations and are designed to provide a reasonable degree of assurance regarding the effectiveness and efficiency of operations, the adequacy of safeguard for assets, internal control over financial reporting, and compliance with applicable laws and regulations. Internal audit function evaluates the adequacy of and compliance with policies, plans, regulatory and statutory requirements.
The Internal Auditors directly report to the Boards Audit Committee, thus ensuring the independence of the process. It also evaluates and suggests improvement in effectiveness of risk management, controls and governance process. The Audit committee and Board provides necessary oversight and directions to the Internal audit function and periodically reviews the findings and ensures corrective measures are taken.
37. RISK MANAGEMENT POLICY:
Your Company follows a comprehensive system of Risk Management. Your Company has adopted a procedure for assessment and minimization of probable risks. It ensures that all the risks are timely defined and mitigated in accordance with the well-structured risk management process.
38. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES:
All contracts/arrangements/transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on arms length basis. During the year, the Company had not entered into any contract/arrangement/transaction with related parties which could be considered material in accordance with the policy of the company on materiality of related party transactions.
Your Directors draw attention of the members to 33 to the financial statement which sets out related party disclosures.
39. DISCLOSURE ABOUT COST AUDIT:
Cost Audit is not applicable for the financial year 2017-18.
40. Particulars of Employees
Your Directors are pleased to record their sincere appreciation of the contribution by the staff at all levels in the improved performance of the Company.
None of the employees is drawing Rs. 8,50,000/- and above per month or Rs.1,02,00,000/- and above in aggregate per annum, the limits prescribed under Section 197(12) of the act read with rules 5(2) and 5(3) of the companies (Appointment and remuneration of Managerial personnel) Rules 2014 of the Companies Act, 2013.
41. RATIO OF REMUNERATION TO EACH DIRECTOR:
Under section 197(12) of the Companies Act, 2013, and Rule 5(1)(2) & (3) of the Companies(Appointment & Remuneration) Rules, 2014, the ratio of remuneration to maiden employees is 26.43:1 times in case of Mr. P. Srinivas Reddy and 26.43:1 times in case of Mrs. P. Samantha Reddy, Whole-time Director cum CFO of the Company.
Decision of the promoter directors to draw only 50% of the remuneration duly approved by the shareholders.
42. NON-EXECUTIVE DIRECTORS COMPENSATION AND DISCLOSURES:
None of the Independent / Non-Executive Directors has any pecuniary relationship or transactions with the Company which in the Judgment of the Board may affect the independence of the Directors.
43. INDUSTRY BASED DISCLOSURES AS MANDATED BY THE RESPECTIVE LAWS
GOVERNING THE COMPANY:
The Company is not a NBFC, Housing Companies etc., and hence Industry based disclosures is not required.
44. INDUSTRIAL RELATIONS:
Industrial relations remained cordial during the year. Employees competencies and skills were enhanced by exposing them to several internal and external training programs. Various measures were taken to improve motivation level of employees.
45. HEALTH & SAFETY:
The Company provides a safe and healthy workplace for its employees by establishing the right safety culture across the organization. The senior leadership is fully committed to the ultimate goal of zero injury to its employees and all stakeholders who are associated with the Companys operations. Emphasis is laid on creating a participatory safety governance model.
46. ENVIRONMENT AND POLLUTION CONTROL:
The Company is well aware of its responsibility towards a better and clean environment. Our efforts in environment management go well beyond mere compliance with statutory requirements. The Company has always maintained harmony with nature by adopting eco-friendly technologies and upgrading the same from time to time incidental to its growth programs.
47. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
The Company has in place a Sexual Harassment Policy in compliance with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment. The Internal Complaints Committee (ICC) has been set up to redress complaints regarding sexual harassment, if any.
The Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
48. APPRECIATION & ACKNOWLEDGEMENT:
Your Directors place on record their appreciation for the overwhelming co-operation and assistance received from the investors, customers, business associates, bankers, vendors, as well as regulatory and governmental authorities. Your Directors also thanks the employees at all levels, who through their dedication, co-operation, support and smart work have enabled the company to achieve a moderate growth and is determined to poise a rapid and remarkable growth in the year to come.