visagar polytex ltd Directors report

Dear Members,

Your Directors are pleased to present their 39thAnnual Report for the financial year ended March 31, 2022:


(Rs. In Lacs)

Revenue from operations 355.99 481.40
Other income 1.20 30.11
Gross Income 357.18 511.51
Total Expenses 414.57 507.33
Net Profit Before Tax -57.39 4.18
Provision for Tax - -
Net Profit After Tax -57.39 4.18


Your Company has seen a decreasein turnover during the year under review which accounted for Rs. 355.99 Lakhs as compared to Rs. 481.40 Lakhs in FY 2021-22. The Company has incurred Net loss of Rs.57.39 Lakhsas compared to Net profit of Rs. 4.18 Lakhs in FY 2021-22. 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.

Impact of Covid-19

The sudden spread of Covid-19 pandemic and consequent Country wide lockdown since March 2021 has affected the world economy adversely, to safeguard interest of the public at large from this epidemic, the Indian Government including various State Governments and Municipal Authorities have issued various advisory directives including restrictions on movement of public and other means of transport. In accordance with the directives of the Government and in order to ensure health and well being of all employees Work from Home policy was brought in place for your Companys employees.


Your Company is continuously exploring opportunities for growth, expansion and modernization of its projects. 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.


Your Directors have not recommended any dividend for the year ended March 31, 2022.


As at March 31, 2022, the Authorized 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.

As at March 31, 2022, the paid-up Equity Share Capital of the Company stood at Rs.29,27,00,534(Rupees Twenty-Nine Crores Twenty-Seven lakhs five hundred &thirty-four only) divided into29,27,00,534 (Twenty-Nine Crores Twenty-Seven lakhs five hundred & thirty-four) Equity Shares of Re. 1/- (Rupee One Only) each.

The Directors have unanimously consented for raising funds through Rights Issue of Equity Shares up to 29,27,00,534 Equity Shares of Face value of Rs. 1/- each in the ratio of 1:1 i.e (One) 1 Equity Shares for each (One) 1 Equity Shares held by Shareholders at an issue price of Rs. 1.70/- per Equity Share (including premium of Rs. 0.7/ - per Equity Share) - aggregating to Rs. 4975.91 Lakh to all the existing members of the Company on rights basis ("Rights Issue").


During the year, no bonus shares are issued by the Company.


The Board does not propose to make transfer to reserves for the year 2021-22.


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.


The Company does not have any Subsidiary, Joint Venture or Associate Company.


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 ofRs. 5,26,016.84/ - declared for the year 2014-15 is unclaimed. If the same is not claimed by the Members, the said amount will be transferred to IEPF.


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. Tilokchand Manaklal Kothari (DIN: 00413627) 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 there is no change in Directors and Key Managerial Personnels

iii) Composition of Board of Directors and Key Managerial Personnels:

As on the date of this Boards Report, i.e., as on September 05, 2022, your Companys Board of Directors comprises of the following Directors:

Name of the Director Director Identification Number (DIN) Category
TilokchandManaklal Kothari 00413627 Chairman &Managing Director
Vikramjit Singh Gill 08875328 Executive Director
Kuldeep Kumar 08373716 Non-Executive Independent Director
Kaushal Singh Yadav 08484455 Non-Executive Independent Director
Madhubala Vaishnav 08376551 Non-Executive Independent Director
Kailash Ram Gopal Chhaparwal 01211651 Non-Executive Non- Independent Director

As on the date of this Boards Report, i.e., as September 05, 2022, your Companys Key Managerial Personnel are as follows:

Name of KMP Designation
Mr. Sachin Chandrakant Mehta Chief Financial Officer
Ms. Parul Gupta Company Secretary and Compliance Officer

iv) 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 theBoard and its Committees, culture, execution and performance ofspecific 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.

v) Meetings of the Board:

During the year ended March 31, 2022, Eight (08) Board Meetings were held by the Company on June 14th 2021, June 25th 2021, 16th July, 2021, September 02nd 2021,12th November, 2021, 24th December, 2021, 01st February, 2022, and 14thFebruary, 2022.Details of the meetings and the attendance record of the Directors are mentioned in the Corporate Governance section which forms part of this Report.

vi) 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.


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.


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.


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.


As required under Section 134 (3) (a) & Section 92 (3) of the Act, the Annual Return is put up on the Companys website and can be accessed at Extracts of the Annual return in form MGT 9 for the Financial Year 2021-22 is uploaded on the website of the Company and can be accessed at http:/ /


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 A" to this Report. The Nomination & Remuneration Policy is also available in the website of the Company i.e.http:/ /


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.


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 the link:


a) Statutory Auditor:

M/s. S.C. Mehra & Associates LLP., Chartered Accountants (ICAI Registration No. 106156W/W100305) were appointed as statutory auditors of the company. Currently, they are holding office of the auditors up to the conclusion of the 39th Annual General Meeting.

Accordingly, as per the said requirements of the Act, M/s. Agarwal Desai & Shah., Chartered Accountants (Firm Registration No. 0124850W) are proposed to be appointed as auditors for a period of 5 years commencing from the conclusion of 39th Annual General Meeting till the conclusion of the

44th Annual General Meeting, in place of M/ s. S.C. Mehra & Associates LLP., Chartered Accountants (ICAI Registration No. 106156W/W100305).

M/s. Agarwal Desai & Shah., Chartered Accountants (Firm Registration No. 0124850W), have consented to the said appointment and confirmed that their appointment, if made, would be within the limits specified under Section 141(3) (g) of the Act. They have further confirmed that they are not disqualified to be appointed as statutory auditors in terms of the provisions of the proviso to Section 139(1), Section 141(2) and Section 141(3) of the Act and the provisions of the Companies (Audit and Auditors) Rules, 2014.

The Audit Committee and the Board of Directors have recommended the appointment of M/s. Agarwal Desai & Shah., Chartered Accountants (Firm Registration No. 0124850W), as statutory auditors of the Company from the conclusion of the 39th Annual General Meeting till the conclusion of 44th Annual General Meeting, to the shareholders.

The first proviso to section 139(1) of the Companies Act, 2013 has been omitted vide section 40 of the Companies (Amendment) Act, 2017 notified on 7thMay, 2018. Therefore, it is not mandatory for the Company to place the matter relating to appointment of statutory auditor for ratification by members at every Annual General Meeting. Hence the Company has not included the ratification of statutory auditors in the Notice of AGM.

The Report given by M/s. S.C. Mehra & Associates LLP., Chartered Accountants, on the financial statements of the Company for the Financial Year 2021-2022 is a part of the Annual Report. There has been no qualification, reservation or adverse remark or disclaimer in their Report.

During the Year under review, the Auditors have not reported any matter under Section 143 (12) of the Act, therefore no detail is required to be disclosed under Section 134 (3)(ca) of the Act.

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 Mr. Vijay Ramesh Gupta, Practising Company Secretary as Secretarial Auditors to undertake Secretarial Audit of the Company for the financial year ended March 31, 2022. The Secretarial Audit Report is attached herewith marked as "Annexure B" and forms an integral part of this report.

Secretarial Auditor has made and mentioned the following observation in its report:

(a) The listed entity has complied with the provisions of the above Regulations and circulars/guidelines issued thereunder, except in respect of matters specified below:-

1. During the year company has maintain minutes of board meeting and other committee in electronic mode.

2. Company has received Show cause Notice from NSE due to Non-compliance with corporate governance under regulation 17 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 i.e. during the period from 01.04.2020 to 30.06.2020 the Board consisted of 2 Executive Directors & 3 Independent Director and not 6 Directors on Board as Members as Company comes under Top 2000 Market Cap as on March 31, 2020. However the company has requested NSE to waive the penalty amount and the same have been waived by NSE on dated 22nd November, 2021.

3. Company has appointed Independent Directors but the name of the Independent Directors has not registered under the Database of Independent Directors.

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 2021-2022 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.


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.


Details of Loan, Guarantees and Investments covered under the provisions of the Act, are disclosed in the notes to the Financial Statements.


During the year ended March 31, 2022, there were no material changes and commitments affecting the financial position of the Company have occurred between the period ended March 31, 2022 to which financial results relate and the date of the Report.


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.


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.


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.


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, 2021is mentioned in the Corporate Governance section which forms part of this Report.


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 2021-22.


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-link . The Audit Committee of Directors are entrusted with the responsibility to oversee the Vigil mechanism. During the year 202122, no complaints were received.


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 2021 - 22.


Information on conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under section 134[3][m] of the Act read with the Companies [Accounts] Rules, 2014, are provided in the Annexure C and forms part of this Report.


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 V isagarPolytexLimited
Place: Mumbai Tilokchand Kothari
Date: September 06, 2022 Chairman & Managing Director
DIN: 00413627