Siel Financial Services Ltd Directors Report.
Your Directors have pleasure in presenting the 28th Annual Report together with the Audited Accounts of the Company for the year ended 31st March 2019.
The Company is lying dormant for more than Twelve years and there is no employee on the rolls of the Company. In view of the same, your Company is not in a position to comply with the various compliances to be made under the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Company has incurred a net loss of Rs. 5.82 lacs during the year under review.
In view of the losses incurred during the year, your Directors expressed their inability to recommend any dividend.
MATERIAL CHANGES AND COMMITMENTS
No material changes or commitments have occurred between the end of the financial period to which the financial statements relate and the date of this report, affecting the financial position of the company.
The Company has no subsidiary company.
DIRECTORS AND KEY MANAGERIAL PERSONEL
Mr. Madhu Vrat Kaushik (DIN - 07297518), Director retires by rotation at the forthcoming Annual General Meeting and being eligible offer himself for reappointment.
Mrs. Anju Goel has been appointed as an Additional Director (under the category of Non-Executive Non-Independent Director) of the Company w.e.f. 27.11.2018, and holds office up to date of ensuing Annual General Meeting. A resolution is proposed for her appointment as director (Non-Executive and Non-Independent) of the Company for a period of 5 years w.e.f. 27.11.2018 at the ensuing Annual General Meeting for seeking approval of the members.
Mr. Santosh Kumar (DIN-00994313) was appointed as an independent director at the 23rd Annual General Meeting (AGM) held on 29.9.2014 for a period of five years. Based on the recommendation of the Nomination and Remuneration Committee, his re-appointment for a second term of five consecutive years is proposed at the ensuing AGM for the approval of the Members by way of special resolution.
Mr. Arun Kumar Mithal (DIN-06941447) was appointed as an independent director at the 23rd Annual General Meeting (AGM) held on 29.9.2014 for a period of five years. Based on the recommendation of the Nomination and Remuneration Committee, his re-appointment for a second term of five consecutive years is proposed at the ensuing AGM for the approval of the Members by way of special resolution.
All the Directors have made necessary disclosures as required under various provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
b) KEY MANAGERIAL PERSONNEL (KMP)
The Company has no Key Managerial Personnel (KMP) in terms of provisions of Section 203 of the Companies Act, 2013.
c) DECLARATION FROM INDEPENDENT DIRECTORS
All Independent Directors of the Company have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and SEBI (LODR), Regulations, 2015.
d) BOARD/DIRECTORS 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 and Committees thereof was evaluated on the basis of the criteria such as the composition and structure, effectiveness of processes, information, involvement of the Members and functioning etc. The Board 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 discussion and inputs in meetings, etc.
In a separate meeting of Independent Directors, the performance of Non-Independent Directors, the performance of the Board as a whole was evaluated. Performance evaluation of Independent Directors was done by the entire Board, excluding the Independent Director being evaluated.
The review concluded by affirming that the Board as a whole, the Committees of the Board as well as all of its Members, individually, continued to display commitment to good governance, ensuring a constant improvement of processes and procedures. It was further acknowledged that every individual Member of the Board and the Committee thereof contribute its best in the overall growth of the organization.
DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 134(3)(c) of the Companies Act, 2013, your Directors state 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 judgements 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 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 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;
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; 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.
MEETINGS OF THE BOARD
During the financial year ended 31.3.2019, 7 Board Meetings were held. The details of the Board Meetings are given in the Corporate
Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013 and the SEBI (LODR), Regulations, 2015.
AUDITORS AND THEIR REPORT
a) STATUTORY AUDITORS
M/s. S S Kothari Mehta & Co., Chartered Accountants (ICAI Firm Registration No:000756N), were appointed as Statutory Auditors of the Company from the conclusion of 28th Annual General Meeting (AGM) till the conclusion of 33rd AGM of the Company. Accordingly, a resolution for their appointment and remuneration as Statutory Auditors of the Company has been included in the Notice of forthcoming 28th AGM of the Company.
The observations of Auditors in their report with the relevant notes to accounts are self-explanatory and therefore do not require further explanation.
b) 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 has appointed Mr. Nirbhay Kumar (CP No.7887), M/s Nirbhay Kumar & Associates, Company Secretaries to undertake the Secretarial Audit of the Company for the financial year 2018-19.
The Secretarial Audit Report for the financial year ended 31st March, 2019 is attached as Annexure - A of this Boards Report.
The Company has neither accepted nor renewed any deposits falling within the provisions of Section 73 and 76 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 from its member and public during the Financial Year.
The Audit Committee comprises of three Directors, two directors are independent directors and one is non-executive and non-independent director, viz., Mr. Santosh Kumar as Chairman, and Mr. Arun Kumar Mithal and Mr. Madhu Vrat Kaushik as Members.
The details of terms of reference of the Audit Committee, number and dates of meeting held, attendance, among others are given separately in the attached Corporate Governance Report.
NOMINATION AND REMUNERATION COMMITTEE
Pursuant to the provisions of Section 178 of the Companies Act, 2013 read with Rules made there under, the Board has constituted a Nomination & Remuneration Committee and the details of terms of reference, number & dates of meeting held, attendance and other details are given separately in the attached Corporate Governance Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The Company is under the business of investment and financing so the particulars of the Conservation of energy and Technology Absorption is : NOT APPLICABLE
Foreign Exchange Earnings and Out go: NIL
PARTICULARS OF EMPLOYEES
There is no employee in the Company, therefore particulars are required to be given under Section 197 read with Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 not attached.
RELATED PARTY TRANSACTIONS
There is no related party transaction happen during the financial year in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.
EXTRACT OF ANNUAL RETURN
The extracts of the Annual Return (MGT-9) as per the provisions of Section 92 of the Companies Act, 2013 read with Rule 12 of Companies (Management and Administration) Rules, 2014 is annexed herewith and marked as Annexure - B to this Report.
In accordance with SEBI (LODR), Regulations, 2015, Corporate Governance Report along with Auditors certificate thereon and Management Discussion and Analysis Report form part of this report are enclosed as Annexure - C and forms part of the report.
During the financial year ended 31.3.2019, the Company has not issued any share capital with different voting rights, sweat equity or ESOP nor provided any money to the employees or trusts for purchase of its own shares.
COMPLIANCES UNDER SEBI (LODR), REGULATIONS, 2015/COMPANIES ACT, 2013
The Securities and Exchange Board of India (SEBI) passed an order dated 26.8.2014 under Section 11(1), 11(2)(j), 11(4) and 11B of the SEBI Act, 1992 read with Section 12A of the Securities Contracts (Regulation) Act, 1956 in the matter of non-compliance with the requirement of Minimum Public Shareholding (MPS) under clause 40A of the Listing Agreement and restrained the Company, its promoters and directors from trading in company scrip.
Your Directors place on record their appreciation and gratitude for the unstinted support and assistance extended by shareholders, Central/ State Government and the Company Bankers. The Board also extends its heartfelt gratitude to the Creditors and Shareholders for the confidence reposed by them in the Company.
|For and on behalf of the Board of Directors|
|Madhu Vrat Kaushik||Santosh Kumar|
|Place : New Delhi||Director||Director|
|Date : 21.08.2019||DIN: 07297518||DIN:00994313|