DIRECTORS' REPORT To, The Members, Your Directors have pleasure in presenting their 23rd Annual Report together with Audited Financial Statements of the Company for the Financial Year ended Mardi 31,2016. 1. CHANGE IN THE NATURE OF BUSFNESS, 5 DEPOSITS There is no change in the business activity of the Company. 2. DETAILS OF SUBSIDIARY / JOINT VENTURES/ASSOCIATE COMPANIES The Company does not have any Subsidiary, Joint Venture Company or Associate Company as on Mardi 31, 2016 and any information for this purpose is not applicable to the company. 3. DIVIDEND To conserve resources which would assist in future growth of the Company, no dividend is recommended by the Board for the financial year ended March 31,2016. 4. RESERVES During the year under review, the company has not made any transfer to reserves. During the year under review, your Company did not accept any deposits in terms of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014. During the year, no amounts were outstanding which were classified as 'Deposits' under the applicable provisions of Companies Act, 1956 and hence, the requirement for furnishing of details of deposits which are not in compliance with the Chapter V of the Companies Act, 2013 is not applicable. 6. SHARE CAPITAL The Authorised Share Capital of the company is Rs. 28,00,00,000/- and the paid up share capital of the company is Rs. 21,68,08,680/-. During the year under review, the Company has not issued shares with differential voting rights nor granted stock options nor sweat equity. The Company has not made any purchase or provision of its own shares by employees or by trustees for the benefit of employees during the financial year 2015-2016. 7. 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 A". 8. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS. The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit (IA) function is to maintain its objectivity and independence. Based on the report of Internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board. 9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The particulars prescribed under Section 134 of the Companies Act, 2013 read with Rule 8 (3) of the Companies (Accounts) Rules, 2014, relating to Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo are furnished in " Annexure- B" to this Report. 10. AUDITORS AND AUDITORS' REPORT M/s. Bhatter & Co, Chartered Accountants, Mumbai (Registration No. 131092W) Statutory Auditor of the Company, who appointed Statutory Auditor of the Company for a period of three year in the 21st Annual General Meeting, subject to ratification of his appointment in every ensuing Annual General Meeting. A certificate to the effect that their ratification, will be within the prescribed limits under Section 141 of the Companies Act, 2013, has been obtained from them. In accordance with Section 139(1) of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, the Board, on the recommendation of the Audit Committee, recommends the ratification of re-appointment of M/s. Bhatter & Co as Statutory Auditor of the Company for the financial year 2016-17. Auditors' Report does not contain any qualification, reservation or adverse remark and is self explanatory. 11. SECRETARIAL AUDIT 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. Kothari H. & Associates, Practicing Company Secretaries, to undertake the Secretariat Audit of the Company. The Report of the Secretarial Audit is annexed herewith as "Annexure C". 12. DIRECTORS &KEY MANAGERIAL PERSONNEL: A) Changes in Directors and Key Managerial Personnel In accordance with the provisions of the Companies Act, 2013 and in terms of the Memorandum and Articles of Association of the Company, Dr. Prafulla R. Hede, who is liable to retire by rotation and is eligible for re-appointment, has offered himself for re- appointment. During the Financial year the following changes were made in Directors and Key Managerial Personnel. a) Mr. Samit P. Hede has been designated as Managing Director of the Company w.e.f 01.10.2015 b) Ms. Shibani M. Harlalka has resigned as Alternate Director on 10.08.2015 and again appointed as an alternate director in place of Mr. Paul David Talbot Willcox as on 09.02.2016. c) Mr. Ram S. Tarneja an Independent Director of the Company who has ceased as Director of the Company on 06.08.2015 due to his death. d) Ms. Dipika Agrawal has been appointed as Company Secretary & Compliance Officer of the Company as on 01.03.2016 in place Mr. Puspraj R. Pandey who has been resigned from his office as on 14.10.2015. B) Declaration by an Independent Director(s) and re-appointment, if any Ail Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Chapter IV of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. C) Formal Annual Evaluation Pursuant to the provisions of the Companies Act, 2013 and Chapter TV of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an annual performance evaluation of its own performance, as also of, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration and Compliance Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report. D) Meetings of the Board of Directors The Company held a minimum of one Board meeting in every quarter. The details of the Meeting held during the financial year are given in the Corporate Governance Report. 13. AUDIT COMMITTEE An Audit Committee is in existence in accordance with the provisions of Section 177 of the Companies Act, 2013. Kindly refer to the section on Corporate Governance under the head, 'Audit Committee' for matters relating to constitution, meetings and functions of the Committee. 14. DETADLS OF ESTABLISHMENT OF VIGIL MECHANISM / WHISTLE BLOWER POLICY FOR DIRECTORS AND EMPLOYEES The Company has a vigil mechanism to deal with instance of fraud and / or mismanagement, if any. The details of the Policy is explained in the Corporate Governance Report and also posted on the website of the Company. 15. NOMINATION AND REMUNERATION COMMITTEE A Nomination and Remuneration Committee is inexistence in accordance with the provisions of sub- section (3) of Section 178. Kindly refer section on Corporate Governance, under the head, "Nomination & Remuneration Committee' for matters relating to constitution, meetings, functions of the Committee and the remuneration policy formulated by this Committee. The Brief of the Company's Policy on appointment and remuneration of Directors and Key Managerial Personnel under Section 178(3) of the Companies Act, 2013 and SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015 is attached as in Annexure D to this report. 16. CORPORATE SOCIAL RESPONSIBILITY(CSR) The Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 is currently not applicable to Company 17. SUSTAINABLE DEVELOPMENT Sustainability has been deeply embedded into the Company's business and has become an integral part of its decision making process while considering social, economie and environmental dimensions. 18. BUSINESS RISK MANAGEMENT Your Company has a robust Risk Management policy. The Company through a Steering Committee oversees the Risk Management process including risk identification, impact assessment, effective implementation of the mitigation plans and risk reporting. At present the company has not identified any element of risk which may threaten the existence of the company. The details of Risk Management as practiced by the Company are provided as part of Management Discussion and Analysis Report, which is a part of this Report. 19. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 Details 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. 20. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES: In line with the requirements of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has formulated a Policy on Related Party Transactions which is also available on Company's website atwww.hbgindia.com . The Policy intends to ensure that proper reporting; approval and disclosure processes are in place for ail transactions between the Company and Related Parties. Ail Related Party Transactions entered during the year were in Ordinary Course of the Business and on Arm's Length basis. No Material Related Party Transactions were entered during the year by your Company, therefore, the disclosure of Related Party Transactions as required under Section 134(3) (h) of the Companies Act, 2013 in Form AOC 2 is not been furnished. 21. PARTICULARS OF EMPLOYEES The information required under Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this Report. The above information is not being sent along with this Report to the Members of the Company as per the provision of Section 136 of the Companies Act, 2013. Members who are interested in obtaining these particulars may write to the Company Secretary at the Registered Office of the Company. The aforesaid information is also available for inspection by Members at the Registered Office of the Company, 21 days before the 23rd Annual General Meeting and upto the date of the Annual General Meeting during the business hours on working days. 22. CORPORATE GOVERNANCE CERTIFICATE & REPORT ON CORPORATE GOVERNANCE Certificate from the Auditors of the Company, M/s. Bhatter& Co, Chartered Accountants confirming compliance with the conditions of Corporate Governance as stipulated under Chapter IV of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is presented in a separate section forming part of the Annual Report. 23. POLICIES: AU the policies are available on the website of the Company i.e. www.hbgindia.com 24. MANAGEMENT DISCUSSION & ANALYSIS REPORT Management Discussion & Analysis Report for the year under review, as stipulated in Chapter IV of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is presented in a separate section forming part of the Annual Report. 25. DIRECTORS' RESPONSIBILITY STATEMENT To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3) (C) of the Companies Act, 2013: (a) that in the preparation of the annual financial statements for the year ended March 31, 2016, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any; (b) that such accounting policies as (mentioned in the Notes to the financial statements) have been selected and applied consistently and judgements and estimates have been made 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 31,2016 and of the Profit / loss of the Company for the year ended on that date; (c) that proper and sufficient care has been taken 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) that the annual financial statements have been prepared on a going concern basis ; (e) that proper Internal financial controls were in place and that the financial controls were adequate and were operating effectively. (f) that Systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively. 26. GENERAL Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review: a. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company's operations in future. b. Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace Prevention, Prohibition and Redressal) Act, 2013. c. There were no material changes and commitments affecting the financial position of the Company between the end of financial year and the date of the Report. 27. ACKNOWLEDGEMENTS Your Directors wish to express their grateful appreciation for the co-operation and support received from customers, financial institutions, Banks, regulatory authorities, customers and members and the society at large. The Directors also thank Governments of various countries, Government of India, Government of Goa, Government of Maharashtra and concerned Government Departments/ Agencies for their co-operation. Deep sense of appreciation is also recorded for the dedicated efforts and contribution of the employees of the company at all levels, as without their focus, commitment and hard work, the Company's consistent growth would not have been possible, despite the challenging environment. For and on behalf of the Board of Directors Phoenix Township Limited Sd/- Dr. Prafulla R. Hede Chairman (DIN: Q0651441) Registered Office: Durga Bhavan, Hede Centre, Tonca, Panaji, Goa - 403001. Place: Mumbai Date: May 21, 2016 |