To,
The Members,
Spenta International Limited
Your Directors have great pleasure in presenting 36th Annual Report along
with the Audited Balance Sheet and Profit and Loss Account, for the year ended 31st
March, 2023.
1. Financial Results
The Companys performance during the year ended 31st March, 2023 as compared
to the previous financial year, is summarized below:
(Rs. in Lacs)
Particulars |
FY 2022-2023 |
FY 2021-2022 |
Total Income |
5359.33 |
5216.95 |
Gross Profit (before Interest, Depreciation and tax) |
405.57 |
583.87 |
Less: Interest |
167.27 |
162.45 |
Less: Depreciation |
110.38 |
109.45 |
Profit before Tax |
127.92 |
265.48 |
Less: Current Tax |
22.00 |
40.00 |
Less: Deferred Tax |
-8.68 |
6.49 |
Net Profit after tax |
114.60 |
218.99 |
Less: Other Comprehensive Income |
0.98 |
6.85 |
Total Comprehensive Income |
113.62 |
225.84 |
2. Dividend and Transfer to Reserves
The Board has recommended a final Dividend of Rs. 1.00/- per equity share for the
financial year ended 31st March, 2023. If the above recommendation is accepted
by the Members of the Company at the ensuing Annual General Meeting, the total outflow on
this account will be Rs. 27.64 lacs.
Your Directors do not propose to transfer any amounts to the general reserves of the
Company, instead have recommended retaining the entire profits for the financial year
ended 31st March, 2023 in the profit and loss account.
3. Future Prospects
Company is in the process of optimising production on all the existing machines by
manufacturing optimal product mix. Using better quality yarns and doing product innovation
by using different finishes, which will enhance the overall quality and help to improve
our margins.
4. The Change in the Nature of Business, if any
There was no change in the nature of business of the Company, during the year under
review.
5. Material changes and commitments affecting the Financial position of the Company:
There were no material changes and commitments affecting the financial position of the
Company between the end of the financial year of the Company to which the financial
statements relate and the date of the report.
6. Directors and Key Managerial Personnel
During period under review, there were no changes took place in the Board Composition.
The Members of your Company at the 35th Annual General Meeting approved the
following:
1. Re-appointment of Mrs. Anita Koti (DIN:08069112) as an Independent Director of the
Company for a second term of 5(Five) years with effect from 16th February, 2023
upto 15th February, 2028 not liable to retirement by rotation.
Mr. Sunil Mahyavanshi was a Company Secretary and Compliance Officer of the Company for
the period from 08.04.2022 to 14.06.2022.
Mr. Prasad Chavan was a Company Secretary and Compliance Officer of the Company for the
period from 15.06.2022 to 17.11.2022.
Mr. Danny Firoze Hansotia (DIN: 00203497) Managing Director and CFO of the Company,
appointed as a Compliance officer of the Company w.e.f. 16th January, 2023.
7. Cash Flow and Standalone Financial Statements
As required under Regulation 34 of the Listing Regulations, a Cash Flow Statement and
Standalone Financial Statements is part of the Annual Report.
8. Transfer of Unclaimed Dividend to Investor Education and Protection Fund
During the year, Unclaimed Dividend for FY 2014-15 amounting to Rs. 259,135/- has been
transferred to the Investor Education and Protection Fund in terms of Section 125 of the
Companies Act, 2013.
9. Number of Board Meetings
During the financial year under review, the Board had met Twelve times on 12th
April, 2022, 30th May, 2022, 14th June, 2022, 12th
August, 2022, 14th November, 2022, 15th December, 2022, 24th
December, 2022, 27th December, 2022, 16th January, 2023, 14th
February, 2023, 09th March, 2023, and 28th March, 2023 respectively.
The intervening gap between the meetings was within the period prescribed under the
Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
10. Attributes, Qualifications & Independence of Directors, their appointment and
remuneration
The Nomination & Remuneration Committee of Directors have approved a Policy for
Selection, Appointment and Remuneration of Directors which inter-alia requires that
composition and remuneration is reasonable and sufficient to attract, retain and motivate
Directors, KMP and senior management employees and the Directors appointed shall be of
high integrity with relevant expertise and experience so as to have diverse Board and the
Policy also lays down the positive attributes/criteria while recommending the candidature
for the appointment as Director.
The NRC has formulated the criteria for determining qualifications, positive attributes
and independence of Directors in terms of provisions of Section 178(3) of the Act and the
SEBI Listing Regulations. The relevant information has been given in Annexure D which
forms part of this Report. The policy on Companys Remuneration and Nomination is posted
on Companys website at www.spentasocks.com and also annexed hereto as Annexure E.
11. Declaration of Independent Directors
The Independent Directors have submitted their disclosures to the Board that they
fulfill all the requirements as stipulated in Section 149(7) of the Companies Act, 2013
and Regulation 25(8) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 so as to qualify themselves to be appointed as Independent Directors
under the provisions of the Companies Act, 2013 and the relevant rules.
12. Meeting of Independent Directors
The Independent Directors met once during the year on 14th February, 2023 to
review the working of the Company, its Board and Committees. The meeting decided on the
process of evaluation of the Board and Audit Committee. It designed the questionnaire on
limited parameters and completed the evaluation of the Board by Non-Executive Directors
and of the Audit committee by other members of the Board. The same was compiled by
Independent authority and informed to the members.
13. Familiarization Programme for Independent Directors
The familiarization program aims to provide Independent Directors with the industry
scenario, the socioeconomic environment in which the Company operates, the business model,
the operational and financial performance of the Company, significant developments so as
to enable them to take well informed decisions in a timely manner. The familiarization
program also seeks to update the Directors on the roles, responsibilities, rights and
duties under the Act and other statutes. The policy on Companys familiarization program
for Independent Directors is posted on Companys website at http: //www.spentasocks.com.
14. Internal Control System
The Companys internal controls system has been established on values of integrity and
operational excellence and it supports the vision of the Company "To be the most
sustainable and competitive Company in our industry". 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 and their significant audit observations and follow up actions thereon are
reported to the Audit Committee on a quarterly basis, specifying the nature, value and
terms and conditions of the transactions.
15. Directors Responsibility Statement
The Board of Directors hereby confirms:
i) That in the preparation of the annual accounts, the applicable accounting standard
had been followed along with proper explanation relating to material departures.
ii) That the Directors have 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 Loss of the Company for that period.
iii) That the Directors have taken proper and sufficient care for the maintenances of
adequate accounting records in accordance with the provision of this Act for safeguarding
the assets of the Company and for preventing and detecting fraud and other irregularities.
iv) That the Directors have prepared the Annual accounts on a going concern basis.
v) That 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.
vi) That the Directors had devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and operating.
16. Subsidiaries and Associate Companies
The Company does not have any subsidiaries and associate companies as on 31st
March, 2023.
17. Deposits
Your Company did not accept any deposits from the public during the year. There are no
deposits which have not been claimed by depositors or paid by the Company after the date
on which the deposit became due for repayment or renewal, as the case may be, according to
the contract with the depositors & there are no total amounts due to the depositors
& remaining unclaimed or unpaid.
18. Auditors
a) Internal Auditors
As per section 138 of the Companies Act, 2013, the Company has appointed M/s. B. G.
Dolar & Co., Internal Auditors for the year 2022-2023 to conduct the internal audit
and to ensure adequacy of the Internal controls, adherence to Companys policies and
ensure statutory and other compliance through, periodical checks and internal audit.
b) Statutory Auditors
The Company at its 32nd Annual General Meeting held on 30th
September, 2019 appointed M/s. A K Kocchar & Associates, Chartered Accountants
(FRN: 120410W) appointed as Statutory Auditors of the Company for a period of five
consecutive years and who shall hold such office from the conclusion of 32nd
Annual General Meeting till the conclusion of 37th Annual General Meeting at
such remuneration as may be mutually decided by the auditors and the Board of Directors
thereof. Further the ratification of their appointment pursuant to Section 139 of the
Companies Act, 2013 is not required in terms of notification no. SO 1833(E) dated 7th
May, 2018 issued by the Ministry of Corporate Affairs, and accordingly the item has not
been included in the Ordinary Course of Business of this AGM Notice Further, they have
confirmed that they are not disqualified as auditors of the Company under the Companies
Act, 2013, the Chartered Accountants Act, 1949 and the rules or regulations made
thereunder.
Auditors report is self-explanatory and therefore does not require further comments
and explanation.
c) Secretarial Auditors
The Board has appointed M/s. HSPN & Associates LLP as the Secretarial Auditor of
the Company for the financial year 2022-2023 with effect from 01st April, 2022
to 31st March, 2023 consequent to the conversion from Partnership Firm (i.e
M/s. HS & Associates, Company Secretaries) to Limited Liability Partnership (i.e M/s.
HSPN & Associates LLP).
The secretarial Audit report (MR-3) of M/s. HSPN & Associates LLP for the period
2022-2023 is annexed herewith as Annexure-F.
d) Cost Auditors
As per Section 148 read with Companies (Audit & Auditors) Rules, applicable to cost
auditors, the company was not liable to appoint Cost auditors for the financial year
2022-23.
19. Comments of the Board on Auditors Report
a) Observations of Statutory Auditors on Accounts for the year ended 31st
March, 2023: There are no qualifications, reservations or adverse remarks or
disclaimer made by the Statutory Auditors in respect of financial statements as on and for
the year ended 31st March, 2023.
b) Observations of Secretarial Audit Report for the year ended 31st March,
2023:
Provisions of Section 204 read with Section 134(3) of the Companies Act, 2013, mandates
to obtain Secretarial Audit Report from a Practicing Company Secretary. M/s. HSPN &
Associates LLP were appointed to conduct Secretarial Audit and issue Report for the
financial year 2022-23.
Secretarial Audit Report issued by M/s. HSPN & Associates LLP in Form MR-3 for the
financial year 202223 forms part of this report. The Secretarial Audit Report is annexed
herewith as Annexure - F.
20. Whistle Blower Policy/Vigil Mechanism Policy for the Directors and Employees
The Board of Directors of the Company has, pursuant to the provisions of Section 177(9)
of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its
Powers) Rules, 2014, framed "Whistle Blower Policy" for Directors and employees
of the Company to provide a mechanism which ensures adequate safeguards to employees and
Directors from any victimization on raising of concerns of any violations of legal or
regulatory requirements, incorrect or misrepresentation of any financial statements and
reports, etc.
The employees of the Company have the right/option to report their concern/grievance to
the Chairman of the Audit Committee.
The Whistle Blower Policy is available on the website of the Company at http:
//www.spentasocks. com.
The Company is committed to adhere to the highest standards of ethical, moral and legal
conduct of business operations.
21. Reporting of Fraud by Auditors
During the year under review, the Statutory Auditors, and Secretarial Auditor have not
reported any instances of frauds committed in the Company by its Officers or Employees to
the Audit Committee under section 143(12) of the Act, details of which needs to be
mentioned in this Report.
22. Annual Return
Pursuant to provisions of Section 134 read with Section 92(3) of the Companies Act,
2013, as amended, the Annual Return of the Company e-Form MGT-7 for the Financial Year
2022-23 is uploaded on the website of the Company at http: //www.spentasocks. com
23. Particulars of Contracts or Arrangements made with Related Parties
The particulars of contracts or arrangements with related parties referred to in
Section 188(1), as prescribed in Form AOC - 2 of the rules prescribed under Chapter IX
relating to Accounts of Companies under the Companies Act, 2013, is appended as Annexure-B.
All Related Party Transactions are presented to the Audit Committee and the Board.
Omnibus approval is obtained for the transactions which are foreseen and repetitive in
nature. A statement of all related party transactions is presented before the Audit
Committee on a quarterly basis, specifying the nature, value and terms and conditions of
the transactions.
The Related Party Transactions Policy as approved by the Board is uploaded on the
Companys website at www.spentasocks.com.
24. Particulars of Loans, Guarantees or Investments made under section 186 of the
Companies Act, 2013
Details of Loans granted, Guarantees given or Investments made during the year under
review, covered under the provisions of Section 186 of the Companies Act, 2013 are given
in the notes to the Financial Statements.
25. Conservation of Energy, Technology & Foreign Exchange
Information on conservation of energy, technology absorption, foreign exchange earnings
and out go, is required to be given pursuant to provision of Section 134 of the Companies
Act, 2013, read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed hereto
marked as Annexure-A and forms part of this report.
26. Corporate Governance Report
Report on Corporate Governance and Certificate of Practicing Company Secretary
regarding compliance of the Conditions of Corporate Governance as stipulated in regulation
17 to 27 and clauses (b) to (i) of subregulation (2) of regulation 46 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 with the Stock Exchanges, are
enclosed as a separate section and forms part of this report marked as Annexure-H.
27. Particulars of Employees
The information pursuant to Section 197(12) of the Act read with Rule 5 (1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 relating to
median employees remuneration is annexed hereto marked as Annexure-C and forms
part of this report.
28. Managements Discussion and Analysis Report
The Managements Discussion and Analysis Report for the year under review, as
stipulated under regulation 34 (3) and Part B of schedule V of the SEBI (Listing
Obligation and Disclosure Requirement) Regulation 2015, is annexed hereto marked Annexure-G
and forms part of this report.
29. Compliance of applicable Secretarial Standards
Your Directors hereby confirm that the Company has complied with the necessary
provisions of the revised Secretarial Standard 1 and Secretarial Standard 2 to the extent
applicable to the Company.
30. Risk Management Policy
The Company has in place a mechanism to identify, assess, monitor and mitigate various
risks to key business objectives and thus in pursuance of the same it has formulated a
Risk Management Policy to ensure compliance with regulation 17 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015. Major risks identified by the
businesses and functions are systematically addressed and also discussed at the meetings
of the Audit Committee and the Board of Directors of the Company.
The Companys internal control systems are commensurate with the nature of its business
and the size and complexity of its operations. Significant audit observations and follow
up actions thereon are reported to the Audit Committee and the risk management policy is
available on the website of the company: www.spentasocks.com.
31. The details of Significant and Material Orders passed by the Regulators or Courts
or Tribunals impacting the going concern status and Companys operations in future
During the year there has been no significant material orders passed by the Regulators
or Courts or Tribunals impacting the going concern status and companys operations in
future.
32. Enhancing Shareholder Value
Your company firmly believes that its success, the marketplace and a good reputation
are among the primary determinants of value to the shareholder. The organizational vision
is founded on the principles of good governance and delivering leading-edge products
backed with dependable after sales services.
33. Cautionary Statement
Statements in the Boards Report and the Management Discussion & Analysis
describing the Companys objectives, expectations or forecasts may be forward looking
within the meaning of applicable securities laws and regulations. Actual results may
differ materially from those expressed in the statement. Important factors that could
influence the Companys operation include global and domestic demand and supply conditions
affecting selling prices of Raw Materials, Finished Goods, input availability and prices,
changes in government regulations, tax laws, economic developments within and outside the
country and various other factors.
The Managements Discussion and Analysis Report for the year under review, as
stipulated under regulation 34 (3) and Part B of schedule V of the SEBI (Listing
Obligation and Disclosure Requirement) Regulation 2015, is annexed to this report as Annexure-G.
34. Annual Evaluation of the performance of the Board, its Committees and of Individual
Directors has been made
During the year, the Board adopted a formal mechanism for evaluating its performance
and as well as that of its Committees and individual Directors, including the Chairman of
the Board. The exercise was carried out through a structured evaluation process covering
various aspects of the Boards functioning such as composition of the Board &
committees, experience & competencies, performance of specific duties &
obligations, governance issues etc. Separate exercise was carried out to evaluate the
performance of individual Directors including the Board Chairman who were evaluated on
parameters such as attendance, contribution at the meetings and otherwise, independent
judgment, safeguarding of minority shareholders interest etc.
The evaluation of the Independent Directors was carried out by the entire Board and
that of the Chairman and the Non-Independent Directors were carried out by the Independent
Directors.
The Directors were satisfied with the evaluation results, which reflected the overall
engagement of the Board and its Committees with the Company.
35. Committees of the Board
During the year, in accordance with the Companies Act, 2013, the Board re-constituted
some of its Committees. There are currently three Committees of the Board, as follows:
• Audit Committee
• Nomination and Remuneration Committee
• Stakeholders Relationship Committee
36. Disclosure under the Sexual Harassment Of Women At Workplace (Prevention,
Prohibition And Redressal) Act, 2013
As required by the Sexual Harassment of Women at Workplace (Prevention, Prohibition
& Redressal) Act, 2013, the Company has formulated and implemented a policy on
prevention of sexual harassment at workplace with a mechanism of lodging complaints,
redressal for the benefits of its employees. During the year under review, the Company has
adopted a policy on prevention of sexual harassment of women at workplace. The Company has
also constituted an Internal Complaints Committee/Anti-Sexual Harassment Committee as
required under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013. Currently there are 12 women employees working with the Company and
a senior women employee has been designated to receive complaints and report such cases to
the Anti-Sexual Harassment Committee in this behalf. During the year under review no
complaints were received under The Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
37. Other Disclosures
The company does not have any Employees Stock Option Scheme in force and hence
particulars are not furnished, as the same are not applicable.
No application has been made under Insolvency and Bankruptcy Code: hence requirement to
disclose the details of application made or any proceedings pending under the Insolvency
and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the
end of the Financial Year is not applicable to the Company.
The requirement to disclose the details of difference between amount of valuation done
at the time of onetime settlement and valuation done while taking loan from the Banks and
Financial Institutions along with the reasons thereof is also not applicable.
38. Acknowledgements
Your Directors takes this opportunity to thank the Companys Members, Customers,
Vendors and all other Stakeholders for their continued support throughout the financial
year. The Directors also thank the Stock Exchange, Banks, Ministry of Corporate Affairs,
State Governments, Government of India and all other Government agencies and Regulatory
Authorities for the support extended by them and also look forward to their continued
support in future.
Your Directors would also like to place on record their sincere thanks &
appreciation for their contribution, consistent hard work, dedication and commitment of
our employees at all levels for their contribution to the success achieved by the Company.
For and on behalf of the Board of Directors
sd/- |
sd/- |
Sanjay Gadodia |
Danny Hansotia |
(Chairman & Whole Time Director) |
Managing Director & CFO |
DIN: 00203433 |
DIN: 00203497 |
Place: Palghar
Date: 10th August, 2023
+91-9892691696
