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DIRECTORS REPORT TO THE MEMBERS
Your Directors present herewith the Annual Report of your company together with the Audited Accounts for the year ended 31st March 2017.
Highlights of financial result for the year were as under:
|Rs. In Lakhs||Rs. In Lakhs|
|Profit from Operations before Other Income & Interest||(12.94)||45.05|
|Add: Other Income||54.28||42.56|
|Operating Profit before Interest||41.34||87.61|
|Add: Exceptional Income/(Expenses)||-||-|
|Profit Before Tax||41.34||87.61|
|Provision for Tax||12.96||60.00|
|Income Tax Adjusted for earlier year||-||-|
|Profit After Tax||28.38||27.61|
|Add: Surplus brought forward from Previous Year||-||-|
|Amount Available for apporpriation||28.38||27.61|
|General Reserve No I||-||-|
|Debenture Redemption Reserve A/c||-||-|
|Tax on Dividend||-||-|
|Balance Carried Forward||28.38||27.61|
During the year, the Company has earned profit of Rs 28.38 lacs from the operation of the company as against Rs. 27.61 lacs from previous financial year.
The Company got listed on The Bombay Stock Exchange under Direct Listing norms as on 28th October 2017.
Your Directors regret their inability to recommend any dividend for the year under review.
As per Section 149(4) of Companies Act, 2013 every listed company shall have half of the total number of directors as independent directors. They shall hold office for a term upto five consecutive years on the Board of the Company as per section 149(10).
During the year, Mrs. Jyoti K Shah (DIN: 00020912) reitre by rotation but being eligible herself for reappointment and Ms. Madhura Dabke has resigned from post of Company Secretary.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000 the Directors confirm: -
i. that in the preparation of the annual accounts for the financial year ended 31st March, 2017, the applicable accounting standards have been followed.
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 financial year and of the profit of the Company for that year under review.
iii. that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.
iv. that the directors have prepared the accounts for the financial year ending 31st March, 2017 on a
going concern basis.
v. Directors had devised proper systems to ensure compliance with provisions of all applicable laws and that such system were adequate and operating effectively.
FIXED DEPOSIT: -
Fixed Deposits from the public and the shareholders stood at Rs. Nil at the end of the year.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The Board of Directors of the Company has done fourteen board meetings during this financial year which is in compliance to the provisions of the Companies Act, 2013.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:-
Particulars under the Companies (Disclosure of particulars in the report of the Board of Directors) Rules, 1988 on the Conservation of Energy. Technologies absorption is not applicable to your Company. The Company is not having Foreign Exchange Earnings.
M/s. Mehta Chokshi & Shah, Chartered Accountants retire at the ensuing annual general meeting. The said auditors have completed its tenure as prescribed under the provisions of section 139(2) of the Companies Act, 2013. In view of the same, the Board of Directors, at its meeting held on 30th August, 2017, proposed appointment of M/s.Agrawal Jain & Gupta, Chartered Accountants, Mumbai (Registration No.: 013538C) as statutory auditor of the Company, to hold office from the conclusion of 31st AGM of the Company till the conclusion of 32nd AGM.
The Mangement granted loan to Group Companies u/s. 297 and 372A and the same was approved by Audit Committee and will consistently follow the practise in future.
Information as per section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 is not given as there was no employee earning monthly salary as specified in aforesaid Section or more during the year.
CORPORATE GOVERNANCE: -
The Company has complied with the requirements regarding Corporate Governance as required under Clause 49 of the Listing Agreement entered into with the Stock Exchanges, where the Companys shares are listed. A report on the Corporate Governance in this regard is made a part of this Annual Report and a Certificate from the Auditors of the Company regarding compliance of the conditions of the Corporate Governance is attached to this report.
The Company does not have any subsidiary.
CODE OF CONDUCT
The Board of Directors has approved a Code of Conduct which is applicable to the Members of the Board and all employees in the course of day to day business operations of the company. The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. The Code gives guidance through examples on the expected behavior from an employee in a given situation and the reporting structure.
All the Board Members and the Senior Management personnel have confirmed compliance with the Code.
PREVENTION OF INSIDER TRADING
The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading insecurities by the Directors and designated employees of the Company. The Code 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.
SECRETARIAL AUDIT & OBERVATIONS
During the year under review, M/s VKM & Associates, Practicing Company Secretary who was appointed as the Secretarial Auditor of the Company has issued the audit report in respect of the secretarial audit of the Company for the financial year ended March 31, 2017.
EXTRACT OF THE ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT-9, as required under Section 92 of the Companies Act, 2013, is included in this Report as Annexure II and forms an integral part of this Report.
PARTICULARS PURSUANT TO SECTION 197(12) AND THE RELEVANT RULES
During the year under review, your Company enjoyed cordial relationship with workers and employees at all levels. The company regards its employees as great asset.
For the particulars of employees as required to be disclosed in the Directors Report in accordance with the Provisions of Section 197 of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014, the Directors state that the company does not have any employee, who
(i) if employed throughout the financial year, was in receipt of remuneration for that year which, in the aggregate, was not less than 60,00,000/- rupees per annum;
(ii) if employed for a part of the financial year, was in receipt of remuneration for any part of that year, at a rate which, in the aggregate, was not less than 5,00,000/- rupees per month;
(iii) if employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as the case may be, at a rate which, in the aggregate, is in excess of that drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the company.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an adequate Internal Control System, commensurate with the size, scale and complexity of its operations. The scope of the Internal Audit function outsourced to M/s. Uday Pasad
& Associates, Chartered Accountants as of current is well defined in the engagement letter of the Internal Auditor duly approved by the Audit Committee. To maintain its objectivity and independence, the Internal Auditor reports to the Audit Committee.
The Internal Auditor evaluates the adequacy of the internal control system in the Company on the basis of Statement of Operations Procedure, instruction manuals, accounting policy and procedures.
PERFORMANCE EVALUATION OF BOARD, COMMITTEES & INDIVIDUAL DIRECTORS
A formal evaluation of the performance of the Board, its Committees, the Chairman and the individual Directors was carried out for the year 2016-17 led by the Nomination & Remuneration Committee.
As part of the evaluation process, the performance of non-independent Directors, the Chairman and the Board was done by the independent Directors. The performance evaluation of the respective Committees and that of independent and non-independent Directors was done by the Board excluding the Director being evaluated. The Directors expressed satisfaction with the evaluation process.
The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has in place a whistleblower policy, to support the Code of conduct of the Company. This policy documents the Companys commitment to maintain an open work environment in which employees, consultants and contractors are able to report instances of unethical or undesirable conduct, actual or suspected fraud or any violation of Companys Code of conduct at a significantly senior level without fear of intimidation or retaliation.
DISCLOUSRE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
In accordance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made there under, the Company formulated an internal Policy on Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) during the year under review. An internal Complaint committee has been set up to redress complaints received regarding sexual harassment. All woman employees (permanent, contractual, temporary, trainees) are covered under this policy.
During the year under review there were no complaints received by the Company related to sexual harassment.
INTERNAL FINANCIAL REPORT :
The Board has adopted policies and procedures for efficient conduct of business. The Audit Committee evaluates the efficacy and adequacy of financial control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company and strives to maintain the Standard in Internal Financial Control.
CASH FLOW STATEMENT
In conformity with the provision of Clause 32 of the Listing Agreement the cash flow statement for the year ended 31st March 2017 is annexed hereto.
MATERIAL AND SIGNIFICANT ORDERS PASSED BY REGULATORS & COURTS
No significant and material orders have been passed by any regulators or courts or tribunals against the Company impacting the going concern status and Companys operations in future.
Our Directors express their sincere appreciation of the co-operation received from shareholders, bankers and other business constituents during the year under review. Our Directors also wish to place on record their deep sense of appreciation for the commitment displayed by all executives, officers and staff resulting in the performance of the Company during the year.
|For and on behalf of the Board of Directors|
|Of Supra Pacific Management Consultancy Ltd.|
|Kishor A. Shah||Jyoti K. Shah|
|Managing Director||Director & CFO|
|Date: 30th August, 2017|