DIRECTORS' REPORT TO THE MEMBERS To, The Members, JARIGOLD TEXTILES LIMITED AHMEDABAD Your Directors present the Thirtieth Annual Report together with the Audited Statements of Account of the Company for the financial year ended 31st March, 2015. OPERATIONS : The Company has registered total income of Rs. 4.55 Lacs during the year under review against Rs. 2.78 Lacs during the previous year. After meeting the expenses, the Company has incurred loss of Rs. 2.91 Lacs during the year under review against the loss of Rs. 1.09 Lacs in the previous year. CHANGE IN MANAGEMENT : Mr. Jigar Shah and Mr. Ambalal Patel have acquired 986,620 equity shares from the former promoters vide open offer opened on March 31, 2015 and closed on April 17, 2015. Consequently Mr. Jigar Shah and Mr. Ambalal Patel have been appointed as Directors of the Company and they have taken over the management of the Company w.e.f. 5th May, 2015. They are promoters of the companies which are engaged in the business of operation and maintenance of Independent Power Projects (IPPs), generation of renewable energy. The object relating to setting up Independent Power Project (IPPs) and generation of bio-energy, renewable energy viz. solar energy, wind energy, etc. has been inserted in the main object of Memorandum of Association by passing Special Resolution through Postal Ballot on 2nd July, 2015. The Company has obtained the name availability letter dated 15th July, 2015 for changing the name of the Company from "Jarigold Textiles Limited" to "Kintech Renewables Limited". The Company is now seeking an approval from members for changing the name at the thirtieth Annual General Meeting (AGM). The Registered office of the Company has been shifted from Surat to Ahmedabad by passing Special Resolution through Postal Ballot on 2nd July, 2015. DIVIDEND : Your directors regret their inability to recommend any dividend on the equity shares in view of the losses suffered by your company during the year under review. FIXED DEPOSITS : Your Company has not accepted or invited any Deposits and consequently no Deposits have matured/become due for re-payment as on 31st March, 2015. TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND : During the year under review, the Company was not required to transfer any amount to the Investor Education and Protection Fund (IEPF) established by the Central Government pursuant to the provision of Section 125(e) of the Companies Act, 2013 as there is no amount unclaimed for a period of 7 years from the date it became due for repayment. DIRECTORS AND KEY MANAGERIAL PERSONNEL : Mr. Jigar Shah has been appointed as Additional Director with effect from 5th May, 2015 and he holds office upto the date of ensuing Annual General Meeting of the Company. Mr. Jigar Shah, being eligible, offers himself for appointment as Director at the AGM. Mr. Ambalal Patel has been appointed as Additional Director with effect from 5th May, 2015 and he holds office upto the date of ensuing Annual General Meeting of the Company. Mr. Ambalal Patel, being eligible, offers himself for appointment as Director at the AGM. The Board of Directors appointed Mr. Manoj Jain and Ms. Rashmi Aahuja as Additional Directors of the Company w.e.f. 16th May, 2015, being treated as Independent Directors of the Company and who being eligible for appointment as Independent Directors in the forthcoming Annual General Meeting upon consent of the members. Both the Independent Directors have given their declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013. None of the Directors of the Company is disqualified from being appointed as a Director as specified under Section 164 of the Companies Act, 2013. Mrs. Deepika Shah, Whole Time Director and Mr. Suhail Shah, Director of the Company resigned w.e.f. 5th May, 2015, in view of their commitments abroad. Mr. Harishchandra Bharucha and Mr. Harjibhai Dhaduk, Independent Directors of the Company resigned on 18th May, 2015 and 5th May, 2015 respectively. The Board has appointed Mr. Daxesh Kapadia, Chief Financial Officer with effect from 16th May, 2015 and Mr. Parth Shah, Company Secretary & Compliance Officer with effect from 22nd June, 2015 designated Whole-time Key Managerial Personnel (KMP) of the Company. Mr. Hareshchandra Bhavsar resigned on 5th May, 2015 as Chief Financial Officer (CFO) designated as Key Managerial Personnel of the Company. For your perusal, a brief resume and other relevant details of Mr. Jigar Shah, Mr. Ambalal Patel, Mr. Manoj Jain and Ms. Rashmi Aahuja are available on the website of the Company i.e. www.jarigold.com NUMBER OF MEETINGS OF THE BOARD : The Board meets at regular interval with gap between two meetings not exceeding 120 days. Additional meetings are held as and when necessary. The Directors are also being provided with an option to participate in meeting through video conferencing or other audio visual technologies, keeping in view the applicable provisions of the Companies Act, 2013 and Listing Agreement. During the year under the review, the Board met eleven times. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013 : There were no loans given, guarantees given or investments made by the company under Section 186 of the Companies Act, 2013 during the year and hence the said provision is not applicable. CORPORATE SOCIAL RESPONSIBILITY : The Company is not falling under purview of applicable provisions of Section 135 of the Companies Act, 2013 and hence, the said provisions of Corporate Social Responsibility is not applicable. AUDIT COMMITTEE : During the year under review the Board has re-constituted the Audit Committee in accordance with the applicable provisions of the Companies Act, 2013 and Equity Listing Agreement. There has been no instance where the Board has not accepted the recommendations of the Audit Committee. Terms of reference of Audit Committee : 0 Review of Company's financial reporting process and disclosure of its financial information 0 Discuss and review, with the management and auditors, the annual/ quarterly financial statements before submission to the Board with particular reference to: o Matters required to be included in the Directors Responsibility Statement to be included in the Board's report in terms of sub-section (2) of section 164 of the Companies Act, 2013. o Disclosure under 'Management Discussion and Analysis of Financial Condition and Results of Operations.' o Any changes in accounting policies and practices and reasons for the same. o Major accounting entities involving estimates based on exercise of judgement by management. o Compliance with listing and other legal requirements relating to financial statements. o Disclosure of any related party transaction. o Disclosure of contingent liabilities. o Scrutinise inter corporate loans and investments. o To approve the appointment of CFO (i.e., the whole-time Finance Director or any other person heading the finance function or discharging that function) after assessing the qualifications, experience and background, etc. of the candidate. 0 Hold timely discussions with external auditors. 0 Recommend the Board, the appointment, re-appointment, removal of the external auditors, fixation of audit fee and also approval for payment for any other services rendered by the external auditors 0 Evaluate auditor's performance, qualification and independence 0 Review on a regular basis the adequacy of internal audit function 0 Review the appointment, removal, performance and terms of remuneration of the Chief internal Auditor 0 Review the regular internal reports to management prepared by the internal audit department, as well as management's response thereto 0 Review the findings of any internal investigation by the internal auditors into the matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board 0 Discuss with internal auditors any significant findings and follow-up thereon 0 Review internal audit reports relating to the internal control weaknesses 0 Recommend to the Board, the appointment, re-appointment, removal of the cost auditors, fixation of the audit fee, nature and scope of cost audit and also approve rendering of any other services by the cost auditors and fees pertaining thereto 0 Review and recommended the Cost Audit Report to the Board 0 review the Company's arrangements for its directors and employees to raise concerns, in confidence, about possible wrongdoing in financial reporting, accounting, auditing or other related matters 0 Evaluate Risk Management System 0 Discuss with the management, the Company's policies with respect to risk assessment and risk management, including appropriate guidelines to govern the process, as well as the Company's major financial risk 0 Review the statement of significant related party transactions submitted by the management, including the 'significant criteria / thresholds decided by the management' 0 Periodically verification of related party transactions VIGIL MECHANISM/WHISTLE BLOWER POLICY : The Company has established the vigil mechanism through Whistle Blower Policy for all the stakeholders of the Company which also provides for direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases as per the Policy. The Whistle Blower Policy will be applicable to all the stakeholder of the Company, which is an extension of the Code of Business Conduct through which the Company seeks to provide a mechanism for the Stakeholders to disclose their concerns and grievances on Unethical Behavior and Improper/Illegal Practices and Wrongful Conduct taking place in the Company for appropriate action. The Company shall oversee the vigil mechanism only through the Audit Committee. If any of the members of the Audit Committee have a conflict of interest in a given case, they should resuse themselves and the others in the Committee would deal with the matter on hand. The Policy provides necessary safeguards to all Whistle Blowers for making Protected Disclosures in Good Faith and any Stakeholder assisting the investigation. It also provides the detailed scope and role of Whistle Blower and the manner in which concern can be raised. Further, the Policy contains provisions relating to investigation of the protected disclosures, protection to the whistle blower, decision by CFO, CEO or Audit Committee and reporting & monitoring by the Company. The policy has been placed on the website of the company www.jarigold.com POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR AND OTHER MATTERS PROVIDED UNDER SUB-SECTION (3) OF SECTION 178 AND PERFORMANCE EVALUATION : In view of the lower business operations and loss during the year under review, none of the directors have been paid any remuneration during the year under review. However, during the year the company has appointed Key Managerial Personnel in compliance of the section 203 of the Companies Act, 2013 and they are being remunerated in accordance with their terms of appointment. Considering the above facts, during the year under review the Company has not formulated Remuneration Policy, Criteria for determining/appointing directors and senior management, Evaluation Criteria. However the Company shall formulate suitable remuneration policy and such criteria in due course. FAMILIARIZATION PROGRAMME FOR THE INDEPENDENT DIRECTORS : During the year under Report, the Board of Directors has adopted the Familiarization Programme for Independent Directors of the Company and posted the same on the website of the Company viz. www.jarigold.com . The Programme aims to provide insights into the Company to enable the Independent Directors to understand and significantly contribute to its business. AUDITORS' REPORT : Notes on accounts are self-explanatory and do not require any further explanations on the Auditors' qualifications. STATUTORY AUDITORS : M/s. Bipinchandra J. Modi & Co., Chartered Accountants, reappointed as Statutory Auditors of the Company at the Annual General Meeting held on 3rd July, 2014, to hold office from the conclusion of that Annual General Meeting to the conclusion of next Annual General Meeting. But due to other pre-occupation, they have resigned as Statutory Auditors of the Company w.e.f. 6th May, 2015. In place of them, M/s. DJNV & Co., Chartered Accountant having their ICAI Firm Registration Number (FRN) 115145W, were appointed through Postal Ballot, result of which was declared on 2nd July, 2015 to fill the casual vacancy to hold the office till the conclusion of the ensuing AGM. They have furnished a certificate regarding their eligibility for re-appointment as Statutory Auditors of the Company, pursuant to Section 139(1) of the Companies Act, 2013 read with applicable rules. The Board of Directors recommends their re-appointment for one year until the conclusion of next AGM. SECRETARIAL AUDIT REPORT : 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 M/s. Jigar K. Vyas, Company Secretaries in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as "Annexure A". DIRECTORS' RESPONSIBILITY STATEMENT : In terms of section 134(3)(c) of the Companies Act, 2013 in relation to the financial statements for the year 2014-15, the Board of Directors state that a) in 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 for the financial year ended on 31st March, 2015 and of the 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 the Companies Act, 2013 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. STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SUB-SECTION (6) OF SECTION 149 : Mr. Manoj Jain and Ms. Rashmi Aahuja, Independent Directors of the Company have given their declarations to the Board that they meet the criteria of Independence as provided under the applicable provisions of the Companies Act, 2013 and Listing Agreement. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES : During the year under review, the Company has not entered in any contract or arrangements with the related parties. However, the particulars of contracts or arrangements entered by the Company with related parties which are subsisting during the year under Report are provided under "Annexure C" in Form AOC-2. The Company has framed a 'Policy on Related Party Transactions' for determining related parties, determining the transactions on arm's length basis and procedures to be followed for obtaining various approvals, etc. The policy is available on the website of the company www.jarigold.com . INTERNAL FINANCIAL CONTROLS : The Company has its internal financial control systems commensurate with operations of the company. The management regularly monitors and controls to address safeguarding of its assets, prevention and detection of frauds and errors, controls to monitor accuracy and completeness of the accounting records including timely preparation of reliable financial information. RISK MANAGEMENT POLICY : The Company has framed the 'Risk Management Policy'. The policy is available on the website of the company www.jarigold.com <http://www.jarigold.com> PARTICULARS OF EMPLOYEES : The Details as required under Section 197(12) of the Companies Act, 2013 and Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are more particularly described in "Annexure B" to this Report. EXTRACT OF ANNUAL RETURN : The extract of the Annual Return in Form MGT 9 is provided in "Annexure D" to this Report. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO : Pursuant to the requirement under Section 134(3) of the Companies Act, 2013, read with Rule 8 of Companies (Accounts) Rules, 2014: (a) The Company is engaged in the business of trading of textiles products and hence the Company does not require to furnish any details with respect to conservation of energy or technology absorption. (b) The Company does not have any Foreign Exchange Earnings. (c) The Company does not have any Foreign Exchange outgo. ACKNOWLEDGMENTS : Your Directors are grateful to various government authorities and bankers for their continued guidance and support to the Company. The Board would also like to express great appreciation for the understanding and support extended by the employees and Shareholders of the company. For and on behalf of the Board JARIGOLD TEXTILES LIMITED JIGAR SHAH Chairman & Managing Director DIN 00385460 Place : Ahmedabad Date : 25th July, 2015 |