DIRECTORS' REPORT TO THE MEMBERS , Your Directors are pleased to present the 17th Annual Report on the business and operations of the Company together with the Audited Financial Statements for the financial year ended March 31,2015 and on the state of affairs of the Company. DIVIDEND Your Directors do not recommend any dividend for the year under consideration due to absence of profits. TRANSFER TO RESERVES Your Directors recommend ,transferring of Rs. 95.08 lacs to special reserve for the financial year 2014-15. SHARE CAPITAL The paid up Equity Share Capital as on March 31, 2015 was Rs. 1079.28 lacs. During the year under review, the Company has neither issued any shares with differential voting rights nor granted any stock options nor any sweat equity. Except Mr. Vijay Kumar Chopra, Managing Director of the Company who holds 6,86,551 Equity Shares in the Company and Gulshan Chopra, Whole Time Director of the Company who holds 19,40,946 Equity Shares in the Company, none of the other Directors or Key Managerial Personnel of the Company hold shares in the Company. FINANCE Cash and cash equivalent as on March 31, 2015 was Rs. 596.29 lacs. The Company continues to focus on judicious management of its working capital. Receivables, inventories and other working capital parameters are kept under strict check by continuous monitoring DEPOSITS The Company has not accepted any deposits which would be covered under Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS The particulars of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTY All related party transactions entered by the Company during the financial year were on an arm's length basis and were carried out in the ordinary course of business. There are no materially significant related party transactions made by the Company during the year under consideration with the Promoters, Directors or Key Managerial Personnel which may have a potential conflict with the interest of the Company at large. All the related party transactions as required under Accounting Standard - 18 are reported in the Notes to the financial statements. All related party transactions are placed before the Audit Committee and also before the Board for its approval. Prior approval of the Audit Committee is obtained on an annual basis specifying the upper ceiling as to the amount for transactions which are of a repetitive nature. The transactions entered into pursuant to the prior approval so granted are placed before the Audit Committee and the Board of Directors on a quarterly basis. In accordance with the provisions of Clause 49 of the Listing Agreement, the Company has formulated a Related Party Transactions Policy. The particulars as required under the Companies Act, 2013 are furnished in Form AOC - 2 which is annexed as "Annexure A" to this report. CORPORATE SOCIAL RESPONSIBILITY The provisions of Section 135 of the Companies Act, 2013 are not applicable to the Company hence Corporate Social Responsibility (CSR) Committee is not constituted and no amount is paid on CSR activities. INFORMATION ON THE STATE OF AFFAIRS OF THE COMPANY Information on the operational and financial performance, among others, are given in the Management Discussion and Analysis which is annexed to this report and is in accordance with Clause 49 of the Listing Agreement. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Company has an internal control system, commensurate with the size of its operations. The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. The Company's Internal Auditor's submit quarterly reports which are placed before the Audit Committee. Based on the report, significant audit observations and corrective actions thereon are presented to the Board. RISK MANAGEMENT The Board of Directors of the Company has formed a Risk Management Committee to frame, implement and monitor the Risk Management Policy for the Company. The Committee is responsible for reviewing the risk management plan and ensuring its efficiency. WHISTLE BLOWER POLICY/ VIGIL MECHANISM The Company has a Whistle Blower Policy to deal with the instances of fraud and mismanagement. The details of the policy is explained in the Corporate Governance Report. The Vigil Mechanism is overseen by the Audit Committee. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee has been set up to redress the complaints received regarding sexual harassment. All employees (permanent, contractual, temporary ,trainees) are covered under this policy. There were no cases reported during the year ended March 31, 2015 under this policy. SUBSIDIARIES AND ASSOCIATES The Company has no subsidiary. Hence, the consolidated financial results are not prepared for the year ended 31st March, 2015. Disclosure pursuant to Section 197 (14) of Companies Act 2013 is not applicable to the Company. DIRECTORS In terms of the provisions of Section 152(6) of the Companies Act, 2013, Mr. Vijay Kumar Chopra, Managing Director, retires by rotation at the forthcoming Annual General Meeting, and being eligible offers himself for re-appointment. The profile of the Director seeking re-appointment pursuant to the Listing Agreement and Companies Act, 2013 is included in the notice which forms part of this Annual Report. APPOINTMENT OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP) Mrs.Vibha Ramesh Luharuka was appointed as an Additional Independent Woman Director of the Company on April 1, 2015 and Mr. Soni Radhey Agarwal was appointed as the Chief Financial Officer of the Company w.e.f. April 1, 2015. RESIGNATION OF KEY MANAGERIAL PERSONNEL (KMP) Ms. Sonali Ghule resigned as Company Secretary of the Company w.e.f. July 02, 2015. Other than this,no Director or Key Managerial Personnel has resigned during the year under consideration. DECLARATION BY INDEPENDENT DIRECTORS All Independent Directors have furnished the declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Clause 49 of the Listing Agreement, which forms part of this Annual Report. BOARD MEETINGS During the year ended March 31, 2015, the Board met six times and the gap between two Board Meetings did not exceed 120 days. Details of the Board Meeting are given in the Corporate Governance Report. BOARD'S EVALUATION Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Board has framed an Evaluation Policy for evaluating the performance of the Board, Chairman, Managing Director, Executive Directors, Independent Directors, Non - Executive Directors and its Committees. Based on the same, the Board carried out an annual evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Audit Committee, CSR Committee, Nomination and Remuneration Committee and Stakeholder Relationship Committee. The manner in which the evaluation was carried out has been explained in the Corporate Governance Report. A meeting of the Independent Directors was held during the year under review. The Policy inter alia provides the criteria for performance evaluation such as Board effectiveness, quality of discussion, contribution at the meetings, business acumen, strategic thinking, corporate governance practices, contribution of the Committees to the Board in discharging its functions, etc. TRAINING IMPARTED TO THE INDEPENDENT DIRECTORS Every new Independent Director of the Board is familiarised by the Executive Directors/ Senior Managerial Personnel about the Company's strategy, operations, organisation structure, human resources, quality, finance and risk management. Further, at the time of appointment of an independent director, the Company issues a formal letter of appointment outlining his/her role, functions, duties and responsibilities as a director. COMPANY'S REMUNERATION POLICY The Board has, on the recommendation of the Nomination and Remuneration Committee and pursuant to Clause 49 of the Listing Agreement and Section 178 of the Companies Act, 2013, framed a policy for selection and appointment of Directors, Key Managerial Personnel and fixing their remuneration. The Remuneration Policy is provided in the Corporate Governance Report, which forms part of this Annual Report. DIRECTORS' RESPONSIBILITY STATEMENT Pursuant to Section 134 of the Companies Act, 2013,your Directors, based on the representations received from the Operating Management, and after due enquiry, it is hereby confirmed that: i. In the preparation of annual accounts, the applicable accounting standards have been followed and no material departures have been made from the same; ii. The Directors had in consultation with StatutoryAuditors,selected 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 as at March 31, 2015 and of the profit of the Company for the year ended on that date; iii. The directors have 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; iv. The directors have prepared the annual accounts on a "going concern" basis; v. The directors have laid down internal financial controls, which are adequate and operating effectively; vi. The directors have devised proper system to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS There were no significant and material orders passed by the Regulators/Courts which would impact the going concern status of the Company and its future operations. STATUTORY AUDITORS The Members at the 16th Annual General Meeting approved the appointment of Mr. Ajay Garg, Chartered Accountants(Firm Registration No. 032538), as Statutory Auditors of the Company under Section 139 of the Companies Act, 2013 to hold office for a period of three years from the conclusion of 16th Annual General Meeting till the conclusion of the 19th Annual General Meeting. Mr. Ajay Garg, Chartered Accountants have confirmed that they continue to be eligible to act as Auditors of the Company under Section 141 of the Companies Act, 2013 and the Rules framed there under. As required by the Companies Act, 2013, the Members are requested to ratify their appointment as Statutory Auditors for the financial year 2015-16. DISCLOSURE UNDER SECTION 134(3)(ca) READ WITH SECTION 143(12) OF THE COMPANIES ACT, 2013 The disqualifications by Statutory Auditors of the Company are mentioned in the Auditor's Report during financial year under review. SECRETARIAL AUDITOR 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 had appointed CS Samita Tanksale, Practicing Company Secretaries (ACS:26044/COP: 10763) to undertake the Secretarial Audit of the Company. The Secretarial Audit Report for the financial year 2014-15 forms part as "Annexure B" to this Report. STATUTORY AND SECRETARIAL AUDITOR OBSERVATION Though the auditor has qualified that the company has defaulted on the bank and other dues, this was mainly due to the downturn in the economy for las 2 to 3 years. The company had suffered losses and could not bag any new projects, but for the last one year the economy is looking up and we have made profits in this financial year and have bagged new projects also. The management is confident with this revival we will be able to turn around and meet our obligation regularly and pay off all the dues in the coming years. There are no adverse remarks or observation by Statutory Auditors of the Company, further with regard to Secretarial Auditor's observation,e-filing for Satisfaction of two charges with Registrar of Companies is pending and also efiling of Form DPT-4 for statement regarding deposit is pending. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO Additional information on conservation of energy, technology absorption, foreign exchange earnings and outgo as required to be disclosed under the Rule 8(3) of the Companies (Accounts) Rules, 2014, is annexed hereto and forms part of this Report. CORPORATE GOVERNANCE In compliance with the provisions of Clause 49 of the Listing Agreement, the Corporate Governance Report is annexed and forms part of the Annual Report. The report is duly certified by the Statutory Auditors of the Company. EXTRACT OF THE ANNUAL RETURN The details forming part of the extract of the Annual Return in Form MGT - 9 is annexed herewith as "Annexure C". PARTICULARS OF EMPLOYEES The disclosures required pursuant to Section 197(12) of the Companies Act, 2013, read with Rule 5(1)of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company, is provided "Annexure D" to this report. Further disclosure under Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is not applicable to the Company. PERSONNEL The relation between the employees' and the management of your Company continue to be cordial. ACKNOWLEDGEMENT Your Directors wish to place on record the appreciation of the dedicated efforts by the employees at all levels. The Directors also wish to place on record their word of sincere appreciation to the bankers and financial institutions, the investors, the vendors, the customers and all other business associates for their continued support. By Order of the Board of Directors For NIRAJ CEMENT STRUCTURALS LIMITED V. K. Chopra Chairman & Managing Director Place: Mumbai Date: August 21, 2015. |