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Your Directors are pleased to present their 35thAnnual Report for the financial year ended March 31, 2018:
|PARTICULARS||YEAR ENDED 31.03.2018||YEAR ENDED 31.03.2017|
|Revenue from operations||8226.96||8115.18|
|Net Profit Before Tax||170.92||165.76|
|Provision for Tax||30.00||30.00|
|Net Profit After Tax||140.92||135.76|
OPERATIONS AND FUTURE PLANS:
Your Company has seen an increase in turnover during the year under review which accounted for Rs. 8226.96 Lakhs as compared to Rs. 8115.18 Lakhs in FY 2016-17. The Net Profit has also increased from Rs. 135.76 Lakhs in FY 2016-17 to Rs. 140.92 Lakhs in FY 2017-18. Your Company is very much optimistic about the coming year. Since the Company is trying to reduce cost and expand its business, your Directors are hopeful that the results will be more encouraging.
Your Company is continuously exploring opportunities for growth, expansion and modernization of its projects. The Company has already successfully inaugurated its new plant in Gurugram, Delhi by providing the requisite organic growth to the Company. In addition to the above growth efforts, the company is also contemplating setting up of and/or investing in some projects relating to the activities of the company.
In order to plough back the profit, your Directors have not recommended any dividend for the year ended March 31, 2018.
As at March 31, 2018, the authorised share capital of the Company was Rs. 35,00,00,000(Rupees Thirty Five Crores Only) divided into 35,00,00,000 (Thirty Five Crores) Equity Shares of Re. 1/- (Rupee One Only) each. During the year there is an increase in Authorisedsharecapital of the Company by Rs.
10.00. 00.000 (Rupees Ten Crores Only) divided into 10,00,00,000 (Ten Crores) Equity Shares of Re. 1/- (Rupee One Only) each.
As at March 31, 2018, the paid-up Equity Share Capital of the Company stood at Rs.
24.62.00. 534(Rupees Twenty four Crores Sixty two lakhs five hundred & thirty four only) divided into
24.62.00. 534 (Twenty four Crores Sixty two lakhs five hundred & thirty four) Equity Shares of Re. 1/- (Rupee One Only) each. During the year, the Company had issued 9,00,00,000(Nine Crores) Convertible Warrants of Re. 1/- (Rupees One Only) each on preferential basis at an issue price of Rs. 1.12/- each.
During the year, no bonus shares are issued by the Company.
TRANSFER TO RESERVE:
The Board does not propose to make transfer to reserves for the year 2017-18 and instead intends to retain the net profit of Rs. 1,40,91,611/- in the Profit & Loss Account for the year ended March 31, 2018.
COMPLIANCE WITH THE ACCOUNTING STANDARDS
The Company prepares its accounts and other financial statements in accordance with the relevant accounting principles and also complies with the accounting standards issued by the Institute of Chartered Accountants of India.
SUBSIDIARIES, TOINT VENTURES AND ASSOCIATE COMPANIES
The Company does not have any Subsidiary, Joint Venture or Associate Company.
TRANSFER TO UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND:
The amount of dividends remaining unpaid/unclaimed for seven years from the date of its transfer to the Unpaid Dividend Accounts of the Company is required to be transferred to the Investor Education and Protection Fund (IEPF) administered by the Central Government. An amount of Rs. 55,052.90/- declared for the year 2010-11 is unclaimed. If the same is not claimed by the Members, the said amount will be transferred to IEPF.
DIRECTORS AND KEY MANAGERIAL PERSONNEL:
i) Retire by Rotation:
In accordance with the provisions of Section 152 of the Act, and that of Articles of Association of the Company, Mr. Kanwarlal Rathi (DIN: 06441986) Director of the Company retires by rotation at this Annual General Meeting of the Company and being eligible, offers himself for reappointment.
ii) Change in Directors and Key Managerial Personnels:
During the year under review, Mr. Yash Malhotra has resigned from the directorship of the Company w.e.f. August, 10, 2017due to personal reasons. The Board considered and approved his resignation from the post of Directorship with effect from August, 10, 2017the same is disclosed in Annual Report for the year 2017-18. The Board place on record its gratitude for the services rendered by him during the tenure as director of the Company.
Mr. Tilokchand Kothari, Managing Director of the Company was disqualified being acted as Director as per list issued by Ministry of Corporate Affairs in the month of September, 2017. Mr. Kothari has filed petition in Delhi High Court with respect to removal of Disqualification. The order of high court was in favour of Mr. Kothari and the same has been accepted by Registrar of Companies, Mumbai. Accordingly, his disqualification has been removed and he can act as director of the Company.
Ms. Parul Gulati was appointed as an Additional Director (Non-Executive Independent) w.e.f. September 30, 2017.
iii) Board Evaluation:
Pursuant to the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,a structured questionnaire was prepared after taking into consideration the various aspects of the Boards functioning, composition of the Board and its Committees, culture, execution and performance of specific duties, obligations and governance.
The performance evaluation of the Independent Directors was completed. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors. The Board of Directors expressed their satisfaction with the evaluation process.
iv) Meetings of the Board:
During the year ended March 31, 2018, Ten(10) Board Meetings were held by the Company on April 19, 2017; May 30, 2017; August 10, 2017; September 7 2017; December 6, 2017; December 14, 2017; January 11, 2018; February 14, 2018, March 14, 2018 and March 29, 2018.Details of the meetings and the attendance record of the Directors are mentioned in the Corporate Governance section which forms part of this Report.
v) Committees of the Board:
At present, there are three (3) Committees of Board, i.e. Audit Committee, Stakeholders Relationship Committee & Nomination & Remuneration Committee. The Composition and other details related to the Committees have been stated in the Corporate Governance Report which forms part of this report.
DECLARATION OF INDEPENDENCE FROM INDEPENDENT DIRECTORS:
All Independent Directors of your Company have individually and severally given a declaration pursuant to Section 149(7) of the Companies Act, 2013 affirming compliance to the criteria of Independence as laid down under Section 149(6) of the Companies Act, 2013. Based on the declaration(s) of Independent Directors, the Board of Directors recorded its opinion that all Independent Directors are independent of the Management and have fulfilled the conditions as specified in the Companies Act, 2013, rules made thereunder as well as applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act, 2013, the Directors of your Company 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;
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.
CHANGE IN THE NATURE OF BUSINESS:
During the period under review, there is no change in the nature of business of the Company. The
Company continues to operate in the Textile Sector.
EXTRACT OF ANNUAL RETURN:
The extract of Annual Return in Form MGT-9 as required under Section 92 of the Companies Act,
2013 (herein after referred to as "the Act") forms an integral part of this Report as " Annexure A".
NOMINATION AND REMUNERATION COMMITTEE POLICY:
The Board of Directors has framed a policy which lays down a framework in relation to remuneration of Directors, Key Managerial Personnel and Senior Management of the Company. This policy also lays down criteria for selection and appointment of Board Members .The details of this policy are explained in the Corporate Governance Report. The Nomination & Remuneration Policy is annexed as "Annexure B" to this Report.
Your Company has an Audit Committee in compliance with the provisions of the Companies Act, 2013as well as Part C of Schedule II of the Listing Regulations. The composition of the Audit Committee, detail of terms of reference, number and dates of meetings held and attendance of the Members therein have been specified separately in the attached Corporate Governance Report. The Board accepted the recommendations of the Audit Committee whenever made by the Committee during the year.
PARTICULARS OF CONTRACTS/ ARRANGEMENTS WITH RELATED PARTY:
All related party transactions that were entered into by the Company during the financial year under review were on arms length basis and in the ordinary course of business. There are no material significant related party transactions entered into by the Company with its Promoters, Directors, Key Managerial Personnel or other designated persons, which may have a potential conflict with the interest of the Company at large, hence Form AOC-2 is not applicable to the Company.The policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Companys website at thelink:http:/ / vpl.visagar.com/attachments/ policyrtp.pdf.
AUDITORS & THEIR REPORT:
a) Change in Statutory Auditor:
At the AGM held on 30th September, 2017 for the Financial year ended 2016-17, the Members have approved and accorded their assent for appointment of M/s. S.C. Mehra & Associates, Chartered Accountants as Statutory Auditors of the Company to hold office from the conclusion of the 34th Annual General Meeting until the conclusion of the 39th Annual General Meeting of the Company
to be held in the year 2022, subject to the ratification of the Members at every Annual General Meeting.
Pursuant to the first proviso to Section 139 of the Companies Act, 2013, the appointment of the Statutory Auditors was required to be placed for ratification at every Annual General Meeting. The said proviso has been omitted by MCA vide its notification dated 7th May, 2018 with immediate effect.
The Company has received a letter from Auditors to the effect that their appointment if made it would be within the prescribed limits under Section 139 of the Companies Act, 2013 for Financial Year 2018-19.
The Statutory Auditors M/s. S.C. Mehra & Associates have issued their reports on Standalone Financial Statements for the year ended 31st March, 2018. There are no adverse remarks or qualifications in the said report. The Notes on Accounts referred to in the Auditors Report are self-explanatory and do not call for any further comments.
b) Secretarial Auditor:
In compliance with the provisions of Sec 204 and other applicable provisions of Companies Act 2013, the Board of Directors have appointed Miss Pooja Jain, Practising Company Secretary as Secretarial Auditors to undertake Secretarial Audit of the Company for the financial year ended March 31, 2018. The Secretarial Audit Report is attached herewith marked as "Annexure C" and forms an integral part of this report.
Secretarial Auditor has made and mentioned the following observation in its report:
As per the list of disqualified Directors u/s 164(2) of the Companies Act, 2013 issued by Ministry of Corporate Affairs, name of Mr. Tilokchand Kothari, Managing Director of the Company was mentioned. His name was appearing in the above mentioned list due to non-filing of necessary Annual Returns with the office of Registrar of Companies by the defaulting Companies.
With respect to the above observation made by the Secretarial Auditor, your Directors would like to clarify that pursuant to the disqualification of Mr. Tilokchand Kothari, Managing Director of the Company as per list issued by Ministry of Corporate Affairs in the month of September, 2017. Mr. Kothari has filed petition in Delhi High Court with respect to removal of Disqualification. The order of high court was in favour of Mr. Kothari and the same has been accepted by Registrar
of Companies, Mumbai. Accordingly, his disqualification has been removed and he can act as director of the Company.
c) Internal Auditor:
M/s. Lakhpat M Trivedi & Co., Chartered Accountants, Mumbai (Registration No. 109047) was appointed as Internal Auditor of the Company for the FY 2017-2018 and the Internal Audit Report prepared by them was placed before the Audit Committee.
Risk Management is a risk based approach to manage an enterprise, identifying events that may affect the entity and manage risks to provide reasonable assurance regarding achievement of entitys objective. The risk management process consists of risk identification, risk assessment, risk prioritization, risk treatment or mitigation, risk monitoring and documenting the new risks. The Company has laid a comprehensive Risk Assessment and Minimization Procedure, which is reviewed by the Audit committee and approved by the Board from time to time. These procedures are reviewed to ensure that executive management controls risk through means of a properly defined framework. In the opinion of your Board, none of the risks which have been identified may threaten the existence of the Company.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has in place an adequate budgetary control system and internal financial controls with reference to financial statements. No reportable material weaknesses were observed in the system during the previous fiscal. Further, the Company has laid down internal financial control policies and procedures which ensure accuracy and completeness of the accounting records and the same are adequate for safeguarding of its assets and for prevention and detection of frauds and errors, commensurate with the size and nature of operations of the Company. The policies and procedures are also adequate for orderly and efficient conduct of business of the Company.
The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism.
The Audit Committee of the Board of Directors, Statutory Auditors and the Business Heads are periodically apprised of the internal audit findings and corrective actions taken. Audit plays a key role in providing assurance to the Board of Directors. Significant audit observations and corrective
actions taken by the management are presented to the Audit Committee of the Board. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee.
The Company has not accepted any deposit from the general public within the meaning of section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE COMPANY UNDER SECTION186:
Details of Loan, Guarantees and Investments covered under the provisions of the Act, are disclosed in the notes to the Financial Statements.
MATERIAL CHANGES AFFECTING THE FINANCIAL POSITION OF THE COMPANY:
During the year ended March 31, 2018, there were no material changes and commitments affecting the financial position of the Company have occurred between the period ended March 31, 2018 to which financial results relate and the date of the Report.
CORPORATE SOCIAL RESPONSIBILITY:
Since the provisions as laid down in the Section 135 of the Companies Act, 2013 are not applicable to the Company, hence no such Committee has been formed. However, Company had always tried in its best possible ways to involve itself in social development activities.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:
There are no significant and material orders passed by the Regulators/Courts which would impact the going concern status of the Company and its future operations.
MANAGEMENT DISCUSSION AND ANALYSIS:
The Management Discussion and Analysis Report on the operations of the Company, as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is provided in a separate section and forms an integral part of this Report.
As per Regulation 34 (3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate section on corporate governance practices followed by
the Company, together with a certificate from the Companys Auditors confirming compliance forms an integral part of this Report.
The fixed assets of the Company have been adequately insured.
DEMATERIALISATION OF SHARES:
Your Company has connectivity with the National Securities Depository Limited (NSDL) & Central Depository Services (India) Limited (CDSL) for dematerialization of its Equity Shares. The ISIN No.INE370E01029 has been allotted for the Company Shares. The status of dematerialisation of shares as on March 31, 2018 is mentioned in the Corporate Governance section which forms part of this Report.
LISTING OF SHARES:
The shares of your Company are listed at National Stock Exchange of India Limited and BSE Limited. The applicable Annual Listing fees have been paid to both the Stock Exchanges for the financial year 2017-18.
VIGIL MECHANISM/WHISTLE BLOWER POLICY:
Pursuant to Section 177(9) and (10) of the Companies Act, 2013,and Regulation 22 of the Listing Regulations, the Company has formulated Whistle Blower Policy for vigil mechanism of Directors and employees to report to the management about the unethical behavior, fraud or violation of Companys code of conduct. The mechanism provides for adequate safeguards against victimization of employees and Directors who use such mechanism and makes provision for direct access to the chairman of the Audit Committee in exceptional cases. None of the personnel of the Company has been denied access to the Audit Committee.
The Policy is also available on the web-site at the web- linkhttp:/ / vpl.visagar.com/attachments/WhistleblowerVigilPolicy.pdf.The Audit Committee of Directors are entrusted with the responsibility to oversee the Vigil mechanism. During the year 201718, no complaints were received.
PARTICULARS OF EMPLOYEES:
The information required pursuant to Section 197 read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company, will be provided upon request. In terms of Section 136 of the Act, the reports and accounts are being sent to the members and others entitled thereto excluding the information on employees particulars which is available for inspection by the members at the Registered office of the company during business hours on working days of the company up to the date of ensuing Annual General Meeting. If any member is interested in inspecting the same, such member may write to the company secretary in advance.
No employee has received remuneration in excess of the limits set out in rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 during FY 2017 - 18.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING& OUTGO:
Information on conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under section 134[m] of the Act read with the Companies [Accounts] Rules, 2014, are provided in the Annexure D and forms part of this Report.
PREVENTION OF SEXUAL HARRASSMENT AT WORKPLACE:
The Company has zero tolerance towards sexual harassment at workplace and has adopted a Policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and Rule made thereunder. During the year under review, there were no cases filed or reported pursuant to the provisions of the said Act.
Your Directors take this opportunity to express their grateful appreciation for the excellent assistance and co-operation received from all our Clients, Bankers, Business Associates and the Government and other regulatory authorities and thank all stakeholders for their valuable sustained support and encouragement towards the conduct of the proficient operation of the Company. Your Directors would like to place on record their gratitude to all the employees who have continued their support during the year.
|By Order of the Board of Directors|
|For VisagarPolytex Limited|
|Place: Mumbai||Tilokchand Kothari|
|Date: May 30, 2018||Chairman & Managing Director|