DIRECTORS' REPORT
Dear Members,
Your Directors have pleasure in presenting the Annual Report together with the Audited
Accounts of the Company for the year ended 31st March, 2018.
FINANCIAL RESULTS
Your Company financial performance during the year 2017-18 is summarized below:
(Rs. In AMT.)
| Particulars |
Year 2017-2018 |
Year 2016-2017 |
| TOTAL REVENUE |
15524430 |
6016253 |
| TOTAL EXPENDITURE |
15537580 |
7191105 |
| Profit Before Tax |
-13150 |
-23561 |
| Less: Taxation |
- |
- |
| Profit After Tax |
-13150 |
-23561 |
OPERATIONS
The Company performed satisfactorily as compared to last year.
SHARE CAPITAL
During the year under review, the Company, neither increased nor decreased its Equity.
REVISION IN FIN. STATEMENTS OR BOARD’S REPORT U/S 131(1) OF THE CO. ACT, 2013
In terms of Section 131 of the Companies Act, 2013, the Financial Statements and
Board’s
Report are in compliance with the provisions of Section 129 or Section 134 of the
Companies Act, 2013 and that no revision has been made during any of the three preceding
financial years.
DIVIDEND
Your Directors do not recommend any dividend on equity shares for the year ended March
31, 2018.
PUBLIC DEPOSITS
The Company has not invited any deposits from the public within the provisions of
Chapter V of the Companies Act, 2013 (hereinafter "the Act" and any reference of
section pertains to sections of this Act in this Annual Report unless stated otherwise)
read with the Companies (Acceptance of Deposits) Rules, 2014.
PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARY AND ASSOCIATE COMPANIES:
As per Sections 2(87) and 2(6) of the Companies Act, 2013 and as on date, the Company
neither has any Subsidiary Company nor any Associate Company and hence, do not call for
any disclosure under this head.
AUDITORS
M/s. Mukesh Chokshi & Co., Chartered Accountants, Statutory Auditors of the Company
retire at the conclusion of the ensuing Annual General Meeting and being eligible, offer
himself for re-appointment. The Company has received the Certificate under Section 139(1)
of the Companies Act, 2013 read with Companies (Audit and Auditors), Rules, 2014 from the
Auditor.
Your Directors recommend re-appointment M/s. Mukesh Chokshi & Co., Chartered
Accountants, (FRN 131513W) as the Statutory Auditors of the Company for the current
financial year and fixation of his remuneration.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and rules made
there under, Report on the Secretarial Audit forms a part of this report as ANNEXURE-A.
AUDITORS’ REPORT STATUTORY AND SECRETARIAL
The Auditors’ Report on the financial statement and Secretarial Audit Report for
the current year is self-explanatory, therefore does not require any further explanation.
INTERNAL AUDITORS
Pursuant to Section 138 of the Companies Act, 2013 and Rule 13 of The Companies
(Accounts) Rules, 2014, the Board of Directors of the Company is under process to appoint
internal auditors. However, in the opinion of the Board and size of the company, it is not
necessary to appoint internal auditor.
EXTRACT OF ANNUAL RETURN
The extract of Annual Return in Form MGT 9, as provided under Section 92 (3) of the
Companies Act, 2013, read with Rule 12 of the Companies (Management and Administration)
Rules, 2014 is annexed hereto as ANNEXURE-B with this report and shall form part of
the
Board’s Report.
NUMBER OF MEETINGS OF THE BOARD AND COMMITTEES THEREOF
During the year under review various meetings of the Board of Directors and Committees
was held for various purposes which were in compliance with the provisions of the
Companies Act, 2013, rules made there under and LODR,2015. Further the details of such
meetings of the Board and Committees thereof are mentioned in the Report on Corporate
Governance which is annexed as ANNEXURE-C with this Report and shall form part of
the Board’s Report.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Your Board comprises of efficient and able directors who have vast experience in this
line of business..
The brief details of all members of Board are annexed to this report as ANNEXURE-C.
The following persons are Key Managerial Personnel of the Company
At the time of appointment, all the disclosures and declarations pursuant to Section
164(2) of the Companies Act, 2013 and Rule 14(1) of Companies (Appointment and
Qualification of Directors) Rules, 2014, none of the Directors of the Company is
disqualified from being appointed as Director. Further, all intimations pertaining to such
appointments made during the year has been given to Stock Exchange where the shares of the
Company are listed and also the relevant records are duly updated with the Registrar of
Companies, Ahmedabad(Guj.), wherever required.
RE-APPOINTMNET OF DIRECTORS BY ROTATION
During the year VIMAL S RAVAL, director of the company retires by rotation and being
eligible offers himself for re- appointment. (The details regarding her re-appointment as
per LODR,2015 is given in the Notice.
APPOINTMENT/RE-APPOINTMNET OF INDEPENDENT DIRECTORS AND STATEMENT OF DECLARATIONS BY
INDEPENDENT DIRECTOR
All the Independent Directors are well appointed on the Board of Company in compliance
with the Companies Act, 2013 and the LODR,2015. Further, all Independent Directors shall
hold office for a term up to five consecutive years on the Board of a Company, but shall
be eligible for reappointment for next five years after passing a special resolution by
the
Company and disclosure of such appointment in the Board’s Report. The Company has
received declarations from all the Independent Directors of the Company confirming that
they meet the criteria of Independence under sub-section (6) of section 149 of the Act and
LODR,2015.
FAMILARISATION PROGRAMME FOR INDEPENDENT DIRECTORS
The directors will be introduced to all the Board members and the senior management
personnel such as Chief Financial Officer, Company Secretary and Various Department heads
individually to know their roles in the organization and to understand the information
which they may seek from them while performing their duties as a Director. And meeting may
be arranged for Independent Directors with aforesaid officials to better understand the
business and operation of the Company. As part of continuous updating and familiarization
with the Company, every Independent Director will be taken for visits to the factory or
manufacturing units and other branch of the company where officials of various departments
apprise them of the operational and sustainability aspects of the plants to enable them to
have full understanding on the activities of the Company and initiatives taken on safety,
quality etc.
The Company may also circulate news and articles related to the industry from time to
time and may provide specific regulatory updates.
SEPARATE MEETING OF INDEPENDENT DIRECTORS
In due compliance with the provisions of the Companies Act, 2013 and LODR,2015, a
separate meeting of Independent Directors was held on 10/02/2018
PERFORMANCE EVALUATION BY INDEPENDENT DIRECTORS
The Independent Directors in their meeting have reviewed the performance of
Non-Independent Directors and Board as a whole including reviewing the performance of the
Chairperson of the company taken into account the views of Executive Directors and
Non-Executive Directors. The said policy including above said criteria for the evaluation
of the Board, individual directors including independent directors and the committee of
the board has been laid down under Nomination, Remuneration and Evaluation Policy given in
the Report on Corporate Governance which is annexed as ANNEXURE-C with this report
and shall form part of the Board’s report.
FORMAL ANNUAL EVALUATION
Pursuant to section 134 (3) (p) of the Companies Act, 2013 and Rule 8(4) of Companies
(Accounts) Rules, 2014 and LODR,2015, the Board has carried out an evaluation of its own
performance, the directors individually as well as the evaluation of its Committees as per
the criteria laid down in the Nomination, Remuneration and Evaluation policy. The said
policy including above said criteria for the evaluation of the Board, individual directors
including independent directors and the committee of the board has been laid down in the
Corporate Governance Report, which form part of this report.
ORDER(S) PASSED BY REGULATOR(S), COURT(S), TRIBUNAL(S) IMPACTING THE GOING CONCERN
STATUS AND COMPANY STATUS
During the year under review, it was found, there were no orders passed regarding the
going concern status of the Company. The Company is operating in an efficient manner. In
future there will not be any issues relating to the going concern status of the Company.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS
The Company has a proper internal control system, which provides adequate safeguards
and effective monitoring of the transactions and ensures that all assets are safeguarded
and protected against loss from unauthorized use or disposition. The Company has an
internal audit system from an outside agency, which ensures that the Company’s
control mechanism is properly followed and all statutory requirements are duly complied
with. Moreover, the audit committee of the Company comprising of independent directors
regularly reviews the audit plans, adequacy of internal control as well as compliance of
accounting standards. Also the M.D. has the responsibility for establishing and
maintaining internal controls for financial reporting and that they also have the overall
responsibility to evaluate the effectiveness of internal control systems of the company
pertaining to financial reporting and they have to disclose to the auditors and the Audit
Committee, deficiencies in the design or operation of such internal controls, if any, of
which they are aware and the steps they have taken or propose to take to rectify the
deficiencies.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT,
2013
During the year under review, the Company, has neither given any Loans nor provided any
Guarantees nor made any Investments under Section 186 of the Companies Act, 2013.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES U/S 188(1) AND 188(2) OF
THE COMPANIES ACT, 2013
The related party transactions are entered into based on considerations of various
business exigencies, such as synergy in operations, sectoral specialization and the
Company’s long-term strategy for sectoral investments, optimization of market share,
profitability, liquidity and capital resources of its group companies. All related party
transactions that were entered introducing the financial year were at Arm’s Length
basis and were in the ordinary course of business, the same were placed before the Audit
Committee for the review and noting, in their respective meetings. There are no materially
significant related party transactions made by the company with Promoters, Key Managerial
Personnel or other designated persons which may have potential conflict with interest of
the company at large. Further, as there are no such transactions inconsistent with
sub-section (1) of section 188 of the Companies Act, 2013, so no AOC-2 is required to be
given in this report.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGO
The information pertaining to conservation of energy, technology absorption, Foreign
exchange Earnings and outgo as required under Section 134 (3)(m) of the Companies Act,
2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is furnished here under.
SN Particulars Disclosure
1. Conservation of Energy and Power The company continued to accord priority to
conservation of energy consumption and is continuing its efforts to utilise energy more
efficiently.
2. Technology Absorption and Research The company has not absorbed any technology nor
any research & & Development development work has been carried out.
3. Foreign Exch. - Earnings Nil
Outgo Nil
VIGIL MECHANISM
The Company believes in the conduct of its affairs in a fair and transparent manner by
adopting highest standards of professionalism, honesty, integrity and ethical behavior.
The Company is committed to develop a culture in which every employee feels free to raise
concerns about any poor or unacceptable practice and misconduct. In order to maintain the
standards has adopted lays down this Whistle Blower Policy to provide a framework to
promote responsible and secure whistle blowing. The Board of Directors of your Company has
adopted the Vigil Mechanism and Whistle Blower Policy in compliance of Companies Act, 2013
and LODR,2015. The same forms part of Company’s Code of Conduct.
COMMISSION RECEIVED BY DIRECTOR FROM HOLDING OR SUBSIDIARY COMPANY
The Company neither has any holding nor is any subsidiary company, therefore,
disclosure under Section 197 (14) of the Companies Act, 2013 not applicable.
MANAGERIAL REMUNERATION
During the year under review, none of the Directors of your Company were paid any
remuneration; therefore, disclosure under Sections 196 and 197 of the Companies Act, 2013
and rules made there under is not applicable.
EQUITY SHARES WITH DIFFERENTIAL VOTING RIGHTS
The company has not issued any shares with differential voting rights and accordingly
the provisions of Section 43 read with Rule 4(4) of the Companies (Share Capital and
Debentures) Rules, 2014 of the Companies Act, 2013 and rules framed there under are not
applicable for the year.
DETAILS OF SWEAT EQUITY SHARES
The company has not issued any sweat equity shares and accordingly the provisions of
Section 54 read with Rule 8(13) of the Companies (Share Capital and Debentures) Rules,
2014 of the Companies Act, 2013 and rules framed there under are not applicable for the
year.
DETAILS OF EMPLOYEES STOCK OPTION SCHEME
The company has not granted stock options and accordingly the provisions of Section
62(1)(b) read with Rule 12(9) of the Companies (Share Capital and Debentures) Rules, 2014
of the Companies Act, 2013 and rules framed there under are not applicable for the year.
DISCLOSURE OF VOTING RIGHTS NOT EXCERCISED
The company has not made any provision of money for the purchase of, or subscription
for, shares in the company or its holding company, if the purchase of, or the subscription
for, the shares by trustees is for the shares to be held by or for the benefit of the
employees of the company and accordingly the provisions of Chapter IV (Share Capital and
Debentures) of the Companies Act, 2013 and rules framed there under are not applicable for
the year.
PARTICULARS OF EMPLOYEES
Employee’s relation continued to be cordial throughout the year. Your Directors
wish to place on record their sincere appreciation for the excellent spirit with which the
entire team of the Company worked together.
During the year under review, none of the employee has received remuneration of Rs.
5.00 Lacs per month or Rs. 60.00 Lacs per year or at a rate which, in the aggregate, is in
excess of that drawn by the managing director or whole-time director or manager and holds
by himself or along with his spouse and dependent children, not less than two percent of
the equity shares of the company pursuant to Section 197 (12) of the Companies Act, 2013
read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 and hence, do not call for any further details referred to in Rule
5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
DIRECTORS’ RESPONSIBILITY STATEMENT
Pursuant to Section 134 (3) (c) of the Companies Act, 2013, your Directors state that:
• In the preparation of the annual accounts, the applicable accounting standards
have been followed along with proper explanation relating to material departures;
• The directors have 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 as at 31st March, 2018
and the loss for the year ended on that date;
• The directors have taken proper and sufficient care of the maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting fraud and other
irregularities;
• The directors have prepared the annual accounts on a going concern basis:
• 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;
• The Directors has devised proper system to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating efficiently.
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
The Company is not required to constitute a Corporate Social Responsibility Committee
due to non fulfillment of any of the conditions pursuant to section 135 of the Companies
Act, 2013.
INVESTOR SERVICES
The company has established connectivity with both the depositories viz. National
Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL). In
view of the numerous advantages offered by the Depository system, members are requested to
avail of the facility of de-materialization of
Company’s shares on either of the Depositories as aforesaid.
HUMAN RESOURCES
Your Company considers people as one of the most valuable resources. It believes in the
theme that success of any organization depends upon the engagement and motivation level of
employees. All employees are committed to their work and proactively participate in their
area of operations. The
Company’s HR philosophy is to motivate and create an efficient work force as
manpower is a vital resource contributing towards development and achievement of
organisational excellence.
STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE
COMPANY
Pursuant to the requirement of the LODR,2015, the Company has constituted a Risk
Management Committee. Business Risk Evaluation and Management is an ongoing process within
the Organization. The Company has a robust risk management framework to identify, monitor
and minimize risk as also identify business opportunities.
The objectives and scope of the Risk Management Committee broadly comprises:
Oversight of risk management performed by the executive management;
Reviewing the Risk Management Policy and Framework in line with Local legal
requirements and SEBI guidelines
Reviewing risks and evaluate treatment including initiating mitigation actions and
ownership as per a pre-defined cycles.
Defining framework for identification, assessment, monitoring, mitigation and reporting
of risk.
Within its overall scope as aforesaid, the Committee shall review risk trends,
exposure, potential impact analysis and mitigation plan.
The Risk management committee was constituted as on 12.02.2015
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Report on Corporate Governance and Management Discussion and Analysis Report, in terms
of the LODR,2015 are annexed as ANNEXURE-C respectively with this report and shall
form part of the Board’s report.
A certificate from Statutory Auditors confirming compliance with the conditions of
Corporate Governance is also annexed to the Corporate Governance Report.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013
The Board of Directors of the Company has approved and adopted the ?Policy on
Prevention of Sexual Harassment at Workplace to provide equal employment opportunity and
is committed to provide a work environment that ensures every woman employee is treated
with dignity and respect and afforded equitable treatment. The Company has formed an
Internal Complaints Committee where employees can register their complaints against sexual
harassment. This is supported by the Sexual Harassment Policy which ensures a free and
fair enquiry process with clear timelines.
CODE OF FAIR DISCLOSURE OF UNPUBLISHED PRICE SENSITIVE INFORMATION AND CODE OF CONDUCT
UNDER SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 2015
Pursuant to Regulation 8 of Securities and Exchange Board of India (Prohibition of
Insider Trading) Regulations, 2015, the Board of Directors has formulated and adopted the
"Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive
Information" (Code of Fair Disclosure) of the Company. The Board has also formulated
and adopted "Code of Conduct for Prohibition of Insider Trading" (Code of
Conduct) of the Company as prescribed under Regulation 9 of the said Regulations.
TRANSFER TO INVESTOR’S EDUCATION AND PROTECTION FUND
During the year under review, the Company was not required to transfer any amount in
the
Investor’s Education and Protection Fund.
POLICY ON DIRECTOR’S APPOINTMENT AND REMUNERATION
The Board reconstituted the Nomination and Remuneration Committee in terms of Section
178 of the Companies Act, 2013, rules made there under and LODR,2015; the Company has
adopted a comprehensive policy on Nomination and Remuneration of Directors on the Board.
As per such policy, candidates proposed to be appointed as Directors on the Board shall be
first reviewed by the Nomination and Remuneration Committee in its duly convened Meeting.
The Nomination and Remuneration Committee shall formulate the criteria for determining the
qualifications, positive attributes and independence of a Director and recommend to the
Board a policy, relating to the Remuneration for the Directors, Key Managerial Personnel
and other employees.
The Nomination and Remuneration Committee shall ensure that
a) The level and composition of remuneration is reasonable and sufficient to attract,
retain and motivate directors of the quality required to run the company successfully;
b) Relationship of remuneration to performance is clear and meets appropriate
performance benchmarks; and
c) Remuneration to directors, KMPs and senior management involves a balance between
fixed and incentive pay reflecting short and long-term performance objectives appropriate
to the working of the company and its goals.
During the year under review, none of the Directors of the company receive any
remuneration. The composition of Nomination and Remuneration Committee has been disclosed
in the Report on Corporate Governance.
SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES
During the year under review, the Company neither had any Subsidiaries nor Joint
Ventures nor Associate Companies.
CODE OF CONDUCT FOR ALL BOARD MEMBERS AND SENIOR MEMBERS AND DUTIES OF INDEPENDENT
DIRETORS
The Board has laid down a Code of Conduct for all Board Members and Senior Management
of the Company. The Code of Conduct has been posted on Company’s website. Board
Members and Senior Management Personnel have affirmed the compliance with the Code for
Financial Year 2016-2018. A separate declaration to this effect has been made out in the
Corporate Governance Report. The Company has also adopted a Code of Practices and
Procedures for Fair Disclosure of Unpublished Price Sensitive Information and Code of
Conduct as required under Regulation (8)(1) and Regulation (9)(1) of the SEBI (Prohibition
of Insider Trading) Regulations, 2018.
DISCLOSURE OF FRAUDS IN THE BOARD’S REPORT U/S 143 OF THE COMPANIES
ACT, 2013
During the year under review, your Directors do not observe any contract, arrangement
and transaction which could result in a fraud; your Directors hereby take responsibility
to ensure you that the Company has not been encountered with any fraud or fraudulent
activity during the Financial Year 2017-2018.
ACKNOWLEDGEMENTS
Your Directors takes opportunity to show gratitude towards the assistance and
co-operation received from Banks and other Agencies and Shareholders resulting in good
performance during the year under review.
Your Directors also wish to place on record their deep sense of appreciation for the
dedicated services rendered by Executives, staff and others of the Company.
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For and on Behalf of the Board of Directors of |
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KCCL PLASTIC LIMITED |
|
Chairman |
| Place: AHMEDABAD |
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| Date : 01/09/2018 |
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