AFFLUENCE

DIRECTORS REPORT

TO,

THE MEMBERS,

KRANTI INDUSTRIES LIMITED

Your Directors are pleased to present the 23rd Annual Report of the Company along with its audited annual financial statement for the Financial Year ended on 31st March, 2018.

1.     FINANCIAL RESULTS:

The financial performance of the Company for the year ended on 31st March, 2018 is summarized below:      

                                                                                                                                                                                (In )

2.     RESULTS OF OPERATIONS AND THE STATE OF COMPANYS AFFAIRS:

REVENUES-Standalone

During the year under review, your Company has achieved milestone turnover revenue of Rs.40.10 Crores (approx.) from its business operations as compared to turnover of Rs.23.14 Crores in the previous financial year. On the other hand, the Company has marked its total revenue of Rs.42.19 Crores (approx.) as compare to total revenue of Rs. 24.71 Crores (approx.) in the previous year.

REVENUES-Consolidated

During the year under review, the total revenue from operations of the Company on a consolidated basis was stood at Rs. 46.10 Crores (approx.) as compared to total revenue from its business operations on consolidated basis of Rs.29.09 Crores (approx.) made in the previous year.

PROFITS/LOSS-Standalone

Further, only because of proper utilization of resources, procurement, planning and also good demand in the market for the Companys quality products and committed services, your company has also achieved its projected target. And this was possible due to hard working efforts of your Board of Directors and their dedicated team of employees, as a result, your Company has recorded its net profit of Rs.1.10 Crores (approx.) as compared net loss of Rs. 63.27 Lacs (approx.) during the previous financial year.

PROFITS/LOSS -Consolidated

In addition to above, the Company has recorded a net profit of Rs.89.42 Lacss (approx.), as compare to net loss Rs.94.03 Lacs (approx.) in the previous financial year.

During the financial year under review, it was found that management has given immense focus upon the capacity utilization, preventive maintenance, new part development, tracing out the non-profitable products which results into improvement in machine performance and adding more value to business and also during the year under review the board have done an analysis and taken necessary steps towards reducing other operating expenses by which organization can improve its margins.

Your management is still showing their optimistic vision towards the better future of the Company, and also ensuring to keep their keen eyes to control unproductive cost and expenses, if any, and to ensure improvement in better and qualitative service to reach upto the satisfaction of customers/clients of the Company.

During the financial year under review, there is no change in the nature of business of the Company.

Your Board of Directors would also like to disclose that the Company is having its Subsidiary Company named as Wonder Precision Private Limited whose financial performances are detailed below. On the other hand, there was no Joint Ventures (JV) or Associate Companies (AC) whose necessary information is required to be mentioned into this report.

3.     DIVIDEND:

Your Directors has not recommended any dividend for the current financial year, instead it was decided to plough the profit of the Company for the improvement of the working capital of the Company.

In addition to this, there is no transfer of any amount to General Reserve Account during the financial year under review.

4.     CAPITAL STRUCTURE OF THE COMPANY:

During the financial year under review, there was no change in the capital structure of the Company. The Authorized Share Capital of the Company was stood at Rs.10,00,00,000/- (Rupees Ten Crores only), and the Issued, Subscribed and Paid-up Share Capital of the Company was also stood at Rs.7,05,00,000/- (Rupees Seven Crore Five Lacs only) divided into 70,50,000 shares of Rs 10/- (Rupees Ten  only) each.

5.     DETAILS OF SUBSIDIARIES:

The Company is having a Subsidiary Company whose details are given below, whereas there was no Joint Ventures (JV) or Associate Companies (AC) of our Company:

6.     REPORT ON PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARY COMPANY:

7.     MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION OF THE COMPANY BETWEEN THE END OF THE FINANCIAL YEAR AND DATE OF REPORT:

During the period under review there have been no other material changes and commitments affecting the financial position of the Company between the end of the financial year and the date of the report.

8.     EXTRACT OF THE ANNUAL RETURN:

Pursuant to the provisions of Section 92 (3) of the Companies Act, 2013 read with Rule 12 (1) of the Companies (Management and Administration) Rules, 2014, an extract of the Annual Return in prescribed Form MGT-9 is enclosed as Annexure I to this Report.

9.     BOARD OF DIRECTORS:

During the year, following Directors were acting on the Board of Company:

(a)        Smt. Indubala Subhash Vora (DIN: 02018226) as Chairman;

(b)        Mr. Sachin Subhash Vora (DIN: 02002468) as Managing Director;

(c)         Mr. Sumit Subhash Vora (DIN: 02002416) as Whole Time Director;

(d)        Mr. Pramod Vinayak Apshankar (DIN: 0019869) as an Independent Director

(e)        Mr. Shashikant Vishnupant Bugde (DIN: 01490772) as an Independent Director

(f)          Mr. Prakash Vasant Kamat (DIN: 07350643) as an Independent Director

       I. RE-APPOINTMENT OF DIRECTOR:

Mr. Sachin Subhash Vora, who retires by rotation at the ensuring Annual General Meeting and being eligible offers himself for re-appointment. The Board recommends his re-appointment.

10.DECLARATION BY AN INDEPENDENT DIRECTORS:

The Company has received the necessary declaration from each Independent Director in accordance with Section 149(7) of the Companies Act, 2013, that he meets the criteria of independence as laid out in sub-section (6) of Section 149 of the Companies Act, 2013.

11.DETAILS OF COMMITTEES AND POLICIES:

Keeping in mind the future vision of Listing of Companys Securities on the SME Portal of Bombay Stock Exchange (BSE), the Company has already constituted the following committees as required under the Companies Act, 2013 along with the related rules made thereunder read with SEBI Regulations as and whenever applicable:

(A) Audit Committee;

(B) Nomination and Remuneration Committee;

(C) Stakeholders Relationship Committee

In addition to above, the Board has also adopted below mentioned policies:

(i) Vigil Mechanism / Whistle Blower Policy;

(ii) Code of Conduct for Directors and Senior Management;

(iii) Code of Conduct for Independent Directors;

(iv) Insider Trading Policy;

(v) Code of Fair Disclosure of Unpublished Price Sensitive Information

(vi) Policy for Determination of Materiality

(vii) Policy on Materiality of Related Party Transactions

All above named policies and codes are available on our website (www.krantiindustries.com)

Whereas, the Board of Directors has also adopted Nomination and Remuneration Policy for the nomination and remuneration of Directors, Key Managerial Personnel, Senior Management and Other Employees, which was duly formulated and recommended by the Nomination and Remuneration Committee.

(A)      AUDIT COMMITTEE:

Pursuant to the provisions of Section 177 of the Companies Act, 2013 and the related rules made thereunder, the Board of Directors of the Company has already constituted the Audit Committee to perform such role as prescribed under the Companies Act, 2013 as well as SEBI Regulations, as and whenever applicable and amended thereto.

Our Audit committee comprised of the following members as on 31st March, 2018:

The Company Secretary of the Company shall act as the Secretary to the Audit Committee.

The Audit Committee held its meeting on 12th June, 2017, 29th September, 2017, 01st December, 2017 and 20th March, 2018, where all the members of such Committee have attended the same.

(B)      NOMINATION AND REMUNERATION COMMITTEE:

Pursuant to the provisions of Section 178 of the Companies Act, 2013 and the related rules made thereunder, the Board of Directors of the Company has already constituted the Nomination and Remuneration Committee to perform such role as prescribed under the Companies Act, 2013 as well as SEBI Regulations, as and whenever applicable and amended thereto.

Our Nomination and Remuneration Committee comprised of the following members as on 31st March, 2018:

The purpose of this committee is to screen and to review individuals qualified to serve as executive directors, non-executive directors and independent director, consistent with criteria approved by the Board of Directors, and to recommend, for approval by the Board of Directors. It reviews and discusses all matters pertaining to candidates and evaluates the candidates. Such committee may also regularly evaluate the usefulness of such performance parameters, and make necessary amendments.

The Nomination and Remuneration Policy are available on our website (http://www.krantiindustries.com/policies.html)

During the year under review there is no such appointment made thus Nomination and Remuneration Committee has not called any meeting during the previous year.

(C)       STAKEHOLDERS RELATIONSHIP COMMITTEE:

Pursuant to the provisions of Section 178 (5) of the Companies Act, 2013 and the related rules made thereunder, the Board of Directors of the Company has also constituted the Stakeholders Relationship Committee to perform such role as prescribed under the Companies Act, 2013 as well as SEBI Regulations, as and whenever applicable and amended thereto.

Our Stakeholders Relationship Committee comprised of the following members as on 31st March, 2018:

The Stakeholders Relationship Committee shall consider and resolve the grievances of the security holders of the Company including complaints related to transfer of shares, non-receipt of annual report and non-receipt of declared dividends, and to perform carefully and cautiously perform such other role as prescribed under the Companies Act, 2013 and SEBI Regulations.

12.NUMBER OF THE BOARD MEETINGS:

During the year, Seven (07) meetings of the Board of Directors were held, all the directors actively participated in the meetings and contributed valuable inputs on the matters brought before the Board of Directors from time to time, details of which are given below:

13.DEPOSITS:

During the period under review, the Company has accepted deposits from its members in relation to which the process prescribed under Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014 was also duly followed and complied. Details are given below:

(a)        The details of deposits covered under Chapter V of the Act are as under:

(b)        There has been no default in repayment of deposits or payments of interest thereon during the year, the Company has paid Rs. 26,83,210/- towards the deposit interest during the year.

14.STATUTORY AUDITOR:

The Auditors, M/s. Siddharth Bogawat and Associates, Chartered Accountants, Pune (FRN: 115851W), holds its office until the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. And they have also expressed his willingness for the same. Hence you are also requested to appoint him as Statutory Auditor of the Company.

The Notes on Accounts referred to in the Auditors Report are self-explanatory and do not call for any further comments.

15.DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY:

Pursuant to Section 134 (3) (n) of the Companies Act, 2013, a Risk Management Policy has been framed by the Board at its meeting dated May 30, 2016. In terms of the requirement of the Act, the Board has developed and implemented the Risk Management Policy and the Board reviewed the same periodically. Our senior management identifies and monitors the risk on regular basis and evolves process and system to control and minimize it. With regular check and evaluation business risk can be forecasted to the maximum extent and thus corrective measures can be taken in time.

This Policy seeks to minimize the adverse impact of these risks, thus enabling the Company to control market opportunities effectively and enhance its long-term competitive advantage. Several risks can impact the achievement of a particular business objective. Similarly, a single risk can also impact the achievement of several business objectives.

The focus of risk management is to assess risks and deploy mitigation measures. This is done through periodic review of the risk and strategy of the Board.

During the last financial year, the Companys risk management practices were primarily focuses on the effectiveness of strategic programs in improving our competitive position which provides unique place to the Company in todays competitive business world, our good team of employees and professionals always prepared to address any incidents that may cause business disruptions to our physical and technological model, strengthening internal control to detect fraudulent activity, leadership development and monitoring possible impact of changes in our regulatory environment.

During the year, the Company has carried annual risk survey across the organizations to get inputs of key risks in achieving business objectives, their impact on growth and mitigation actions to minimize such impact. The Company also regularly assess business environment including external as well as internal indicators along with assessments by market segments, growth of top clients, monetary risk and credit risk.

The Company has made a comprehensive approach to risk management, fully integrating risk management with strategic, financial and customer management so that goals and responsibilities are aligned across the Company.

The Board manages risk systematically across the entire enterprise as well as at the business and transaction level. This comprehensive approach is designed to ensure that risk based decision-making is appropriate at all levels of the organization.

16.CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

The management of your Company would like to share the highlights of its performance review on the conservation of energy, technology absorption, foreign exchange earnings and outgo, as below:

A.     CONSERVATION OF ENERGY/ RESOURCES:

Company has continuously striving towards improving the energy conservation measures in all areas. Company ensures strict compliance with all the statutory requirements and has taken several sustainable steps voluntarily to contribute towards better environment. Few steps are listed below:

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(i)          Steps taken or impact on conservation of energy:

The Company has considered and implemented various processes for conservation of energy like

         usage of LED light at workshop

         Identify the Compressed Air Losses due to leakages and rectify it on regular Basis

(ii)        Steps taken by the Company for utilizing alternate sources of energy:

The Company makes every possible effort to save the energy thus it used secondary sources to reduce daily consumption of electricity like genset, the plot the company is such that it receives abundant of sunlight and nature air circulation.  The only usage of electricity is only for machining purposes which also under severe observation to avoid unnecessary wastage or leakage of supplied power.  

(iii)      Capital investment on energy conservation equipments: The Company has not directly make any capital investment for energy conservation whereas Company has found the developer who installed rooftop solar system at the companies premises for the electricity generation, on per KWh basis for which company and the developer entered into the agreement to installed 125KW rooftop system for the certain years and also fixed payment terms for billing of units generation. Further, installing the rooftop solar energy for electricity generation will be more beneficial as compared to unit charged by the state electricity board.

(iv)      Water Management: The Company with persistent efforts to conserve rainwater through poring of water in a well and having storing capacity of around 30000 Liters.

(v)        Waste Management: The Company has strived to ensure reuse, recycling and responsible disposal of waste by adopting a suitable method.

(vi)      Health, safety and environment: The Company has committed to providing a safe and health workplace to our employees, contractors and achieving high standards of environmental protection.

B.     TECHNOLOGY ABSORPTION:

Particulars of some of the important technology are as follows:

Company is committed towards technology driven innovation and lays strong emphasis in inculcating driven culture within the organization.

(i)          The Company has best of operating machines and highly precisions equipment for production and quality management also the Company has hired the optimal of quality team who dedicates their full enthusiasm and work tirelessly for delivering best quality and services.

The team along with state of the art quality equipments like air gauges for dimensional accuracy to Co-ordinate Measuring machine, Trimos (height gauges) for work continuity are used and also German technologies like equator (Renishaw)are to use for delivering high precision quality. And further Company during the year has installed contamination testing LAB set up for inspection of jobs

(ii)        The Company is all well equipped with its current quality control machining and will modify itself for any future advancement.

(iii)      Efforts, in brief, made towards technology absorption: With the globally changing business environment, it is necessary to have developed technology thus Company has obtained the Equator gauging system which is used for Co-ordinate measuring of the woke-piece. It is easier to handle as well as easy to maintain as compared to the traditional CMM.

(iv)      Benefits derived as a result of the above efforts, e.g., product improvement, cost reduction, product development, import substitution, etc.: Absorption of qualitative technology makes the services of the Companys operations and also helps to reduce its unwanted costs below the marked limit.

(v)        The Company did not import any technology related equipment during the period under review.

C.      FOREIGN EXCHANGE EARNINGS & OUTGO:

Foreign exchange earned in terms of actual inflows during the year and the foreign exchange outgo during the year in terms of actual outflows is given below:

                                                                                                                                  (In )

17.DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the requirement of section 134(5) of the Companies Act, 2013, the Directors state 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 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; and

e)     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.

18.PARTICULARS OF LOANS, GUARANTEES OR INVESTMENT:

Details of Guarantee provided by the Company as prescribed under Section 186 of the Companies Act, 2013 and the rules made thereunder are given below:

19.PARTICULARS OF RELATED PARTY TRANSACTIONS:

During the financial year under review, the Company has entered into transactions with its Subsidiary Company (Wonder Precision Private Limited); such related party transactions were on an arms length basis and were in the ordinary course of business. There were no materially significant related party transactions with the Subsidiary Company, which could have a potential conflict with the interests of the Company. In this regards, Form No. AOC-2 is annexed as Annexure-II to this report.

20.DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYS OPERATIONS IN FUTURE:

There were no such instances during the year attracting the provisions of Rule 8 (5) (vii) of the Companies (Accounts) Rules, 2014.

21.DETAILS OF IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:

(I)          Internal Control Systems and their adequacy:

The management has put in place effective Internal Control Systems to provide reasonable assurance for:

   Safeguarding assets and their usage.

   Maintenance of Proper Accounting Records and

   Adequacy and Reliability of the information used for carrying on Business Operations.

(II)       Key elements of the Internal Control Systems are as follows:

   Existence of Authority Manuals and periodical updating of the same for all Functions.

   Existence of clearly defined organizational structure and authority.

   Existence of corporate policies for Financial Reporting and Accounting.

   Existence of Management information system updated from time to time as may be required.

   Existence of Annual Budgets and Long Term Business Plans.

   Existence of Audit System.

   Periodical review of opportunities and risk factors depending on the Global / Domestic Scenario and to undertake measures as may be necessary.

(III)     The management is regularly reviewing the internal progress reports of the Company for performance review which carried out in all the key areas of the operations. Additionally the management approves all the future plans and reports for significant issues raised by the Auditors. Regular reports on the business development, future plans and projections are given to the Board of Directors.

(IV)     Periodical reports are regularly circulated for perusal of Board of Directors of the Company for the appropriate action as required.

(V)       Normal foreseeable risks of the Companys assets are adequately covered by comprehensive insurance. Risk assessments, inspections and safety audits are carried out periodically.

22.OBLIGATION OF COMPANY UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

In terms of provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has already formulated a Policy to prevent Sexual Harassment of Women at Workplace. In addition to above, there were no such cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

23.FUTURE OUTLOOK:

Once again your Company has demonstrated that the Company is leading on the correct path with accepting all challenges of unexpectedly changing business environment and still showing tremendous improved results. Your management is willing to perform their duties at their best ability and showing their optimistic vision towards the future growth and development of the Company. The Company will ensure to keep their keen eyes to control unproductive cost and expenses, if any and to ensure improvement in better and qualitative service to reach upto the satisfaction of customers of the Company.  

24.ACKNOWLEDGEMENT:

Your Directors would like to express their sincere appreciation for the continued support and co-operation from shareholders, customers, suppliers, banks, government authorities, vendors, financial institutions and such other business associates. Your Directors also wish to place on record their deep sense of appreciation for the committed services by the Companys executives, staff and employees without whose dedication your Company could not have achieved the years milestone performance.

For and on behalf of Board of Directors

KRANTI INDUSTRIES LIMITED

SACHIN SUBHASH VORA                        SUMIT SUBHASH VORA

MANAGING DIRECTOR                            WHOLE TIME DIRECTOR

(DIN: 02002468)                                          (DIN: 02002416)

Date: 30th August, 2018

Place: Pune

Annexure 'I'

FORM NO. MGT-9

EXTRACT OF ANNUAL RETURN

As on financial year ended on 31st March, 2018

[Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014]

I.  REGISTRATION & OTHER DETAILS:

* CIN of the has been changed from 'U29299PN1995PTC095016' to 'U29299PN1995PLC095016' w.e.f. 17th August, 2015.

** Formerly known as Kranti Industries Private Limited

*** The status of the Company has been changed from 'Private Limited Company' to 'Public Limited Company' w.e.f. 17th August, 2015.

II.  PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

(All the business activities contributing 10 % or more of the total turnover of the company shall be stated)

III.     PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

IV.    SHARE HOLDING PATTERN

(Equity share capital breakup as percentage of total equity)

(i)  Category-wise Share Holding

(ii) Shareholding of Promoters

(iii) Change in Promoters’ Shareholding (please specify, if there is no change)

(iv) Shareholding Pattern of top ten Shareholders

 (Other than Directors, Promoters and Holders of GDRs and ADRs):

(v) Shareholding of Directors and Key Managerial Personnel:

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment.

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager and/or Directors:

B. Remuneration to other Directors

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

1. Details of contracts or arrangements or transaction not at arm's length basis:

There was no contract/arrangement/transaction entered into during the financial year ended 31st March 2018 which were not at arm`s length basis.

2. Details of material contracts or arrangements or transactions at arm's length basis:

The details of material contracts or arrangements or transactions at arm`s length basis for the financial year ended 31st March, 2018 is as follows:

Your Directors are pleased to present the 23rd Annual Report of the Company along with its audited annual financial statement for the Financial Year ended on 31st March, 2018.   1.     FINANCIAL RESULTS:   The financial performance of the Company for the year ended on 31st March, 2018 is summarized below:                                                                                                                                                (In ‘ ’) Particulars   Standalone Consolidated 31.03.2018 31.03.2017 31.03.2018 31.03.2017 Revenue from Operations 40,10,16,460.75 23,14,38,762.28 45,99,57,948.03   28,69,33,797.46   Other Operating Income 2,002,6404.48 1,11,40,914.12 4,25,809.98   2,51,547.52   Other Income 9,32,594.85 45,47,920.81 7,08,326.92   37,30,004.97   Total Revenue 42,19,75,460.08 24,71,27,597.21 46,10,92,084.93   29,09,15,349.95   Manufacturing and Operating Expenses 29,46,84,127.61 15,27,19,160.30 31,94,92,326.70   18,26,99,095.81   Employee Benefits expenses 5,93,42,437.45 4,33,56,719.11 6,76,57,135.79   5,04,97,171.11   Sales, administration and Other Expenses 1,40,38,706.21 77,81,388.51 1,60,63,936.14   1,00,08,675.93   Finance Cost 2,02,29,179.88 2,16,85,939.56 2,19,52,371.36   2,52,49,935.19   Depreciation and amortization expenses 2,53,05,157.85 2,83,17,558.90 2,98,62,875.04   3,36,06,591.29   Total Expenditure   41,35,99,609.00 25,38,60,766.38 45,50,28,645.03   30,20,61,469.32   Profit/(Loss) Before Tax 83,75,851.08 (67,33,169.17) 60,63,439.90   (1,11,46,119.37)   Less: Provision for Taxes (a) Current Tax (b) Deferred Tax (c)Income tax expenses relating to prior years   63,453.00 (27,50,542.00) 54,929.00   0.00 (4,05,684.66) 0.00   63,453.00 (29,33,148.24) 54,929.00   0.00 (17,69,205.69) 0.00 Profit for the year Before Minority Interest - - 88,78,206.14   (93,76,913.68)   Minority Interest - - (63,894.15)   26,518.73   Profit/(Loss) After Tax Carried to Balance sheet 1,10,08,011.08 (63,27,484.51) 89,42,100.29   (94,03,432.41)     2.     RESULTS OF OPERATIONS AND THE STATE OF COMPANY’S AFFAIRS:   REVENUES-Standalone   During the year under review, your Company has achieved milestone turnover revenue of Rs.40.10 Crores (approx.) from its business operations as compared to turnover of Rs.23.14 Crores in the previous financial year. On the other hand, the Company has marked its total revenue of Rs.42.19 Crores (approx.) as compare to total revenue of Rs. 24.71 Crores (approx.) in the previous year.   REVENUES-Consolidated   During the year under review, the total revenue from operations of the Company on a consolidated basis was stood at Rs. 46.10 Crores (approx.) as compared to total revenue from its business operations on consolidated basis of Rs.29.09 Crores (approx.) made in the previous year.   PROFITS/LOSS-Standalone   Further, only because of proper utilization of resources, procurement, planning and also good demand in the market for the Company’s quality products and committed services, your company has also achieved its projected target. And this was possible due to hard working efforts of your Board of Directors and their dedicated team of employees, as a result, your Company has recorded its net profit of Rs.1.10 Crores (approx.) as compared net loss of Rs. 63.27 Lacs (approx.) during the previous financial year.   PROFITS/LOSS -Consolidated   In addition to above, the Company has recorded a net profit of Rs.89.42 Lacss (approx.), as compare to net loss Rs.94.03 Lacs (approx.) in the previous financial year.   During the financial year under review, it was found that management has given immense focus upon the capacity utilization, preventive maintenance, new part development, tracing out the non-profitable products which results into improvement in machine performance and adding more value to business and also during the year under review the board have done an analysis and taken necessary steps towards reducing other operating expenses by which organization can improve its margins.   Your management is still showing their optimistic vision towards the better future of the Company, and also ensuring to keep their keen eyes to control unproductive cost and expenses, if any, and to ensure improvement in better and qualitative service to reach upto the satisfaction of customers/clients of the Company.   During the financial year under review, there is no change in the nature of business of the Company.  Your Board of Directors would also like to disclose that the Company is having its Subsidiary Company named as ‘Wonder Precision Private Limited’ whose financial performances are detailed below. On the other hand, there was no Joint Ventures (JV) or Associate Companies (AC) whose necessary information is required to be mentioned into this report.

A.     CONSERVATION OF ENERGY/ RESOURCES:   Company has continuously striving towards improving the energy conservation measures in all areas. Company ensures strict compliance with all the statutory requirements and has taken several sustainable steps voluntarily to contribute towards better environment. Few steps are listed below:   Ø  Conservation of natural resources like electricity, oil and fuel. Ø  Use of natural lighting and natural ventilation Ø  Encouraging green building initiatives Ø  Rain water harvesting and water conservation. Ø  Reduce, reuse, recycle of waste and eco-friendly waste disposal   (i)          Steps taken or impact on conservation of energy:   The Company has considered and implemented various processes for conservation of energy like ·         usage of LED light at workshop ·         Identify the Compressed Air Losses due to leakages and rectify it on regular Basis   (ii)        Steps taken by the Company for utilizing alternate sources of energy: The Company makes every possible effort to save the energy thus it used secondary sources to reduce daily consumption of electricity like genset, the plot the company is such that it receives abundant of sunlight and nature air circulation.  The only usage of electricity is only for machining purposes which also under severe observation to avoid unnecessary wastage or leakage of supplied power.     (iii)      Capital investment on energy conservation equipment’s: The Company has not directly make any capital investment for energy conservation whereas Company has found the developer who installed rooftop solar system at the companies premises for the electricity generation, on per KWh basis for which company and the developer entered into the agreement to installed 125KW rooftop system for the certain years and also fixed payment terms for billing of units generation. Further, installing the rooftop solar energy for electricity generation will be more beneficial as compared to unit charged by the state electricity board.   (iv)      Water Management: The Company with persistent efforts to conserve rainwater through poring of water in a well and having storing capacity of around 30000 Liters.   (v)        Waste Management: The Company has strived to ensure reuse, recycling and responsible disposal of waste by adopting a suitable method.  Health, safety and environment: The Company has committed to providing a safe and health workplace to our employees, contractors and achieving high standards of environmental protection.

A.     TECHNOLOGY ABSORPTION:   Particulars of some of the important technology are as follows:   Company is committed towards technology driven innovation and lays strong emphasis in inculcating driven culture within the organization.   (i)          The Company has best of operating machines and highly precisions equipment for production and quality management also the Company has hired the optimal of quality team who dedicates their full enthusiasm and work tirelessly for delivering best quality and services. The team along with state of the art quality equipment’s like air gauges for dimensional accuracy to Co-ordinate Measuring machine, Trimos (height gauges) for work continuity are used and also German technologies like equator (Renishaw)are to use for delivering high precision quality. And further Company during the year has installed contamination testing LAB set up for inspection of jobs   (ii)        The Company is all well equipped with its current quality control machining and will modify itself for any future advancement.   (iii)      Efforts, in brief, made towards technology absorption: With the globally changing business environment, it is necessary to have developed technology thus Company has obtained the Equator gauging system which is used for Co-ordinate measuring of the woke-piece. It is easier to handle as well as easy to maintain as compared to the traditional CMM.   (iv)      Benefits derived as a result of the above efforts, e.g., product improvement, cost reduction, product development, import substitution, etc.: Absorption of qualitative technology makes the services of the Company’s operations and also helps to reduce its unwanted costs below the marked limit.  The Company did not import any technology related equipment during the period under review.

A.     FOREIGN EXCHANGE EARNINGS & OUTGO:   Foreign exchange earned in terms of actual inflows during the year and the foreign exchange outgo during the year in terms of actual outflows is given below:                                                                                                                           (In ) Particulars   2017-18 2016-17 Foreign Exchange Earnings in terms of actual inflows 0.00 0.00 Foreign Exchange Outgo in terms of actual outflows 52,06,283.42 25,94,734.29  

1.     DIRECTORS’ RESPONSIBILITY STATEMENT:   Pursuant to the requirement of section 134(5) of the Companies Act, 2013, the Directors state 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 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; andthe directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.