Seasons Textiles Ltd Directors Report.

Dear Members,

Your Directors have pleasure in presenting their 33rd Annual Report along with the Audited Accounts for the financial year ended31st March, 2019.

FINANCIAL RESULTS:

The financial resultsfor the year under review are summarized below for your perusal:

(Rs. in Lakhs)
Particulars Financial Year Ended 31st March, 2019 Financial Year Ended 31st March, 2018
I Revenue from Operations 3752.08 3764.25
II Other income 6.89 10.03
III Total Revenue Income (I+II) 3758.97 3774.28
IV Total Expenses 3708.95 3736.82
V Profit/(Loss) before tax (III IV) 50.02 37.46
VI Total Tax expense 14.56 (20.30)
VI Profit/(Loss) for the year 35.46 57.76
VII Other comprehensive income 1.04 5.43
VIII Total comprehensive Income for the year 36.50 63.19
IX Earnings per share 0.47 0.77

REVIEW OF OPERATIONS: The gross revenue of the company during the year stands at Rs. 3758.97 Lacs as against Rs. 3774.28 Lacs in the previous year. The profit before tax during the year stands at Rs. 50.02 Lacs as against Rs. 37.46 Lacs. The profit after tax during the year is Rs. 35.46 Lacs as against Rs 57.76 Lacs in the previous year. Total comprehensive Income for the year is Rs. 36.50 Lacs as against Rs 63.19 Lacs in the previous year.

SHARE CAPITAL: The paid up equity capital as on March 31, 2019 was Rs.749.03 Lakhs. During the year under review the company has not issued shares with differential voting rights nor granted stock options nor sweat equity.

DIVIDEND: In order to plough back profits for future requirements of the company your Directors do not recommend any dividend for the year ended March 31, 2019.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND: Since there was no unpaid/unclaimed dividend, the provisions of Section 125 of the Companies Act, 2013 do not apply.

FIXED DEPOSITS: The Company has not accepted any deposits within the meaning of section 73 of the companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.

FINANCE: Cash and cash equivalents as at March 31, 2019 was Rs. 87.70 lakhs. The company continues to focus on judicious management of its working capital, Receivables, inventories and other working capital parameters were kept under strict check through continuous monitoring.

INSURANCE: All the insurable interests of your Company including inventories, buildings, plant and machinery are adequately insured. LISTING PARTICULARS: The Equity Shares of the Company are listed on the Bombay Stock Exchange and Calcutta Stock Exchange.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS: The Company has not given any loans or made any investments covered under the provisions of section 186 of the Companies Act, 2013. As on date there is no Corporate Guarantee existed in the books of the Company.

INDUSTRIAL RELATIONS: During the year under review, your Company enjoyed cordial relationship with workers and employees at all levels.

DIRECTORS AND KEY MANAGERIAL PERSONNEL:

The Board of Directors consists of five members, of which threeare Independent Directors. The Board also comprise of one Woman Director.

In pursuance of section 203 of the Companies Act, 2013, the key managerial personnel of the Company are Mr. Inderjeet Singh Wadhwa, Chairman Managing Director, Mr. Sanjay Katyal, Chief Financial Officer and Mrs. Kavita Rani, Company Secretary.

In accordance with the provisions of Section 152 of the Companies Act, 2013, Mrs. Neelam Wadhwa (DIN: 00050911) is liable to retire by rotation at the ensuing Annual General Meeting and being eligible, has offered herself for re-appointment. The Board of Directors recommends his reappointment and the matter is being placed for the approval of members at the ensuing Annual General Meeting of the Company.

During the year Mr. Manjeet Singh (DIN: 08206912) was appointed to the Board as Independent Director of the Company w.e.f. 14th November 2018, for the period of five years subject to the approval of the members of the Company. The Company has received declaration from Mr. Manjeet Singh confirming that he meets with the criteria of Independence as prescribed under Section 149(6) of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors recommend his appointment and the matter is being placed for the approval of members at the ensuing Annual General Meeting of the Company.

Dr. Pramod Kumar Hari (DIN : 01205247) and Dr. Bijoya Kumar Behera (DIN : 01139185) Independent Director whose current period of office is expiring on this AGM and who has submitted a declaration confirming the criteria of Independence under Section 149 of the Companies Act, 2013 read with the Listing regulations, as amended from time to time, and who is eligible for reappointment for a second term under the provisions of the Companies Act, 2013, Rules made thereunder and the Listing Regulations. The Board of Directors recommends his re-appointment for a term of 5 years and the matter is being placed for the approval of members at the ensuing Annual General Meeting of the Company.

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 and the corporate governance requirements as prescribed by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations 2015 ("SEBI Listing Regulations").

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.

Remuneration Policy: The Board has, on the recommendation of the Appointment & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration. Meetings: During the year four Board Meetings and four Audit Committee Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013. Companys policy on directors appointment and remuneration including criteria for determining qualifications,positive attributes, independence of a director etc. is provided in Corporate Governance Report.

DIRECTORS RESPONSIBILITY STATEMENT: In compliance with the accounting and financial reporting requirements under section 134 (3) (c) and 134 (5) of the Companies Act 2013, in respect of financial statements, your directors state and confirmthat: 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 reason able 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 andof the profitand 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, in the case of a listed company, had laid down internal financial controlsto 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.

PARTICULARS OF EMPLOYEES: The Information 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, forms part of this Report as "Annexure A".

Information as per Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 : NIL

STATUTORY AUDITORS: The present Auditors of the Company Rakesh Varshney & Associates, Chartered Accountants, New Delhi were appointed as Statutory Auditors for a period of 5 year(s) at the 31st Annual General Meeting (AGM) held on 29th September, 2017 to hold the office till the conclusion of 36 th Annual General Meeting (AGM) to be held in 2022.

In pursuant to Companies Amendment Act,2017, enforced on 7th May,2018 by Ministry of Corporate Affairs, the appointment of statutory auditor is not required to be ratified at every annual general meeting.

STATUTORY AUDITORS REPORT: The report of the Statutory Auditors along with notes to Schedules is enclosed to this report. The observations made in the Auditors Report are self-explanatory and therefore do not call for any further comments.

The Auditors Report does not contain any qualification, reservationor adverse remark.

SECRETARIAL AUDIT: Pursuant to 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 Pramod Kothari & Co., a firmof Company Secretaries in practice to undertake the Secretarial Audit of the Company.

SECRETARIAL AUDITORS REPORT: As required under section 204 (1) of the Companies Act, 2013 the Company has obtained a Secretarial Audit Report for the Financial Year 2018-19. The Secretarial Audit Report is annexed herewith as "Annexure B". There are no qualificationsor observations or other remarks of the Secretarial Auditors in the Report issued by them for the financialyear 2018-19 which call for any explanation from the Board of Directors.

SIGNIFICANT OR MATERIAL ORDERS: and material orders passedThere were no significant by the regulators or courts or tribunals, which would impact the going concern status and the Companys operations in future.

MATERIAL CHANGES: There were no material changes and commitments affecting the financial positionof the Company between the end of financial year and the date of the Report.

RELATED PARTY TRANSACTIONS: All related party transactions that were entered into during the financial year were on an arms length basis and were in the ordinary course of business and that the provisions of Section 188 of the Companies Act, 2013 are not attracted. Thus disclosure in form AOC-2 is not required. Further, there are no material related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have potential conflict with the interest of the Company at large. All Related Party Transactions are placed before the Audit Committee and Board for approval. The transactions entered into pursuant to the approval so granted are audited and a statement giving details of all related party transactions is placed before the Audit Committee and the Board of Directors for their approval on quarterly basis.

The policy on Related Party Transactions as approved by the Board is uploaded on the Companys website. None of the Directors has any pecuniary relationship on transactions vis-a-vis the Company.

SUBSIDIARY COMPANIES: The Company does not have any subsidiary.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: Internal Audit plays a key role in providing an assurance to the Board of Directors with respect to the Company having adequate Internal Control Systems. The Internal Control Systems provide, among other things, reasonable assurance of recording the transactions of its operations in all material respects and of providing protection against significant misuse or loss of Companys assets. The details about the adequacy of Internal Financial Controls are provided in the Management Discussion and Analysis Report.

CODE OF CONDUCT: Your Company has adopted a Code of Conduct for members of the Board and the Senior Management. The Code aims at ensuring consistent standards of conduct and ethical business practices across the Company.

Your Company has received confirmations fromall concerned regarding their adherence to the said Code.

As per the SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015, the Managing Director of the Company confirmed compliance with the Codeby all members of the Board and the Senior Management.

VIGIL MECHANISM / WHISTLE BLOWER POLICY: As per Sec. 177(9) of the Companies Act, 2013, applicable Rules and the SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015, the company has established a vigil mechanism (whistle blower policy) for their directors and employees to report their genuine concerns. The vigil mechanism provide for adequate safeguards against victimization of persons who avail of the vigil mechanism and also provide for direct access to the Chairperson of the Audit Committee in accordance with the Companies Act, 2013, applicable rules and SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015.

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 pre-clearance 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 Board is responsible for implementation of the Code.

All Board Directors and the designated employees have confirmed compliance with the Code.

RISK MANAGEMENT POLICY: The Company has formulated a Risk Assessment & Management Policy. The details of the Risk Management are covered in the Corporate Governance Report.

PREVENTION OF SEXUAL HARASSMENT POLICY: The Company has in place a Prevention of Sexual Harassment policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressel) Act, 2013. An 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.

During the year 2018 - 19, no complaints were received by the Company related to sexual harassment.

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".

CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION ANALYSIS: Your Company follows principles of effective Corporate Governance. The endeavor of your Company is not only to comply with regulatory requirements but also to practice Corporate Governance principles that lay a strong emphasis on integrity transparency and overall account- ability.

A separate Section on Management Discussion & Analysis and Corporate Governance is included in the Annual Report. A certificate from the Practicing Company Secretary of your Company regarding compliance with Corporate Governance norms stipulated in SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015 is also annexed to the report on Corporate Governance.

PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO: Information in accordance with the provisions of section 134(3)(m) of the Companies Act, 2013, along with rules regarding the conservation of energy, technology absorption and foreign exchange earnings and outgo is annexed to this report. (Annexure "D")

ACKNOWLEDGEMENT: Your Directors would like to express their sincere appreciation for the assistance and co-operation received from the Banks, Government Authorities, Customers, and shareholders during the year. Your directors also wish to take on record their deep sense of appreciation for the committed services of the employees at all levels, which has made your company successful in the business.

CAUTIONARY NOTE: The statements forming part of the Directors Report may contain certain forward looking remarks within the meaning of applicable securities laws and regulations. Many factors could cause the actual results, performances or achievements of the Company to be materially different from any future results, performances or achievements that may be expressed or implied by such forward looking statements.

By Order of the Board of Directors
For Seasons Textiles Limited
Place: New Delhi (Inderjeet Singh Wadhwa)
Date: 13.08.2019 Chairman and Managing Director

ANNEXURE ‘D FORMING PART OF DIRECTORS REPORT.

Information in accordance with the section 134(3)(m) of the Companies Act, 2013 read with Rules and forming part of the directors report.

A) Conservation of energy:-
1. Energy conservation measures taken: The Company has installed Energy efficient- automatic shuttle less looms (imported). However efforts are being made to conserve and save energy wherever required.
2. Additional Investment and proposals, if any, being implemented for reduction of consumption of energy: Impact of the measures at (1) and (2) Above for reduction of energy consumption and consequent impact on the cost of production of goods: N.A.
Continuously monitoring the energy consumed at processing plant at Barhi enabled the Company to set benchmarks for different machines which resulted in significant benefits in terms of lower cost of energy and other utilities.
Total Energy consumption and per unit of Production: As per Form A
B) Technology Absorption:- As per Form B
C) Foreign Exchange Earnings and Outgo:-

The foreign exchange earning/outgo during the year are as under:

(Rs./Lacs)
Particulars Current Year Previous Year
Foreign Exchange Earnings: 2326.26 2466.40
Foreign Exchange Outgo: 176.55 183.61

Form A: Disclosure of particulars with respect to conservation of energy, power and fuel consumption:

Particulars Year ended 31.03.2019 Year ended 31.03.2018
(a) Purchased
Units 1192834 1497061
Total Amounts (Rs. In Lacs) 98.00 123.01
Rate/units(Rs.) 8.22 8.22
(b) Own Generation
Through Diesel Generator (units) 21608 31016
Unit 2 2
Unit per ltr of diesel oil Costs/unit (Rs.) 34.36 29

Form B:

Disclosure of Particulars with respect to technology absorption research and Development (R&D):

1. Specific areas in which R&D Carried out by the Company: Innovative fabrics designs and new products development.
2. Benefits derived as a result of the above R&D. Increase in acceptability of new designs. Continue to introduce latest fabrics designs and patterns based on domestic and international market feedback.
3. Future plan of action
4. Expenditure on R&D
a. Capital NIL
b. Recurring NIL
c. Total NIL
d. Total R&D expenditure as a percentage of total sales NIL
Technology absorption, adoption and innovation:
1. Efforts, in brief, made towards technology absorption, adaptation and innovation. NIL
2. Benefits derived as a result of efforts e.g. product improvement, cost reduction, product development, import substitution, etc. NIL
3. In case of improved technology imported during the last 5 years reckoned from the beginning of the financial year NIL