Dear Members,
Your Directors are pleased to present their 40thAnnual Report for the
financial year ended March 31, 2023:
BUSINESS PERFORMANCE:
(Rs. In Lacs)
|
YEAR ENDED |
YEAR ENDED |
PARTICULARS |
31.03.2023 |
31.03.2022 |
Revenue from operations |
78.81 |
355.99 |
Other income |
15.90 |
1.20 |
Gross Income |
94.71 |
357.18 |
Total Expenses |
234.24 |
414.57 |
Net Profit Before Tax |
-139.53 |
-57.39 |
Provision for Tax |
- |
- |
Net Profit After Tax |
-139.53 |
-57.39 |
OPERATIONS AND FUTURE PLANS:
Your Company has seen a decrease in turnover during the year under review which
accounted for Rs. 78.81 Lakhs as compared to Rs. 355.99 Lakhs in FY 2022-23. The Company
has incurred Net loss of Rs.139.53 Lakhs as compared to Net Loss of Rs. 57.39 Lakhs in FY
2022-23. Your Company is very much optimistic about the coming year. Since the Company is
trying to reduce cost and expand its business,your Directors are hopeful that the results
will be more encouraging.
Impact of Covid-19
The sudden spread of Covid-19 pandemic and consequent Country wide lockdown since March
2021 has affected the world economy adversely, to safeguard interest of the public at
large from this epidemic, the Indian Government including various State Governments and
Municipal Authorities have issued various advisory directives including restrictions on
movement of public and other means of transport. In accordance with the directives of the
Government and in order to ensure health and well being of all employees Work from Home
policy was brought in place for your Company's employees.
EXPANSION:
Your Company is continuously exploring opportunities for growth, expansion and
modernization of its projects. In addition to the above growth efforts, the company is
also contemplating setting up of and/or investing in some projects relating to the
activities of the company.
DIVIDEND:
Your Directors have not recommended any dividend for the year ended March 31, 2023.
SHARE CAPITAL:
As at March 31, 2023, the Authorized share capital of the Company was Rs.
80,00,00,000/- (Rupees Eighty Crores Only) divided into 8,00,00,000 (Eight Crores) Equity
Shares of Re. 1/- (Rupee One Only) each.
As at March 31, 2023, the paid-up Equity Share Capital of the Company stood at
Rs.29,27,00,534(Rupees Twenty-Nine Crores Twenty-Seven lakhs five hundred &thirty-four
only) divided into29,27,00,534 (Twenty-Nine Crores Twenty-Seven lakhs five hundred &
thirty-four) Equity Shares of Re. 1/- (Rupee One Only) each.
BONUS:
During the year, no bonus shares are issued by the Company.
TRANSFER TO RESERVE:
The Board does not propose to make transfer to reserves for the year 2022-23.
COMPLIANCE WITH THE ACCOUNTING STANDARDS
The Company prepares its accounts and other financial statements in accordance with the
relevant accounting principles and also complies with the accounting standards issued by
the Institute of Chartered Accountants of India.
SUBSIDIARIES. IOINT VENTURES AND ASSOCIATE COMPANIES
The Company does not have any Subsidiary, Joint Venture or Associate Company.
TRANSFER TO UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND:
The amount of dividends remaining unpaid/unclaimed for seven years from the date of its
transfer to the Unpaid Dividend Accounts of the Company is required to be transferred to
the Investor Education and Protection Fund (IEPF) administered by the Central Government.
An amount of Rs. 5,26,016.84/- declared for the year 2014-15 is unclaimed. If the same is
not claimed by the Members, the said amount will be transferred to IEPF.
DIRECTORS AND KEY MANAGERIAL PERSONNEL:
i) Retire by Rotation:
In accordance with the provisions of Section 152 of the Act, and that of Articles of
Association of the Company, Mr. Vikramjit Singh Gill (DIN: 08875328) Director of
the Company retires by rotation at this Annual General Meeting of the Company and being
eligible, offers himself for reappointment.
ii) Change in Directors and Key Managerial Personnel's:
During the year there is no change in Directors and Key Managerial Personnel's
iii) Composition of Board of Directors and Key Managerial Personnel's:
As on the date of this Board's Report, i.e., as on 10.05.2023, your Company's Board of
Directors comprises of the following Directors:
Name of the Director |
Director Identification Number (DIN) |
Category |
TilokchandManaklal Kothari |
00413627 |
Chairman &Managing Director |
Vikramjit Singh Gill |
08875328 |
Executive Director |
Kuldeep Kumar |
08373716 |
Non-Executive Independent Director |
Kaushal Singh Yadav |
08484455 |
Non-Executive Independent Director |
Madhubala Vaishnav |
08376551 |
Non-Executive Independent Director |
Kailash Ram Gopal Chhaparwal |
01211651 |
Non-Executive Non- Independent Director |
As on the date of this Board's Report, i.e., as 10.05.2023, your Company's Key
Managerial Personnel are as follows:
Name of KMP |
Designation |
Mr. Sachin Chandrakant Mehta |
Chief Financial Officer |
Ms. Parul Gupta |
Company Secretary and Compliance Officer |
iv) Board Evaluation:
Pursuant to the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, a structured questionnaire was prepared
after taking into consideration the various aspects of the Board's functioning,
composition of the Board and its Committees, culture, execution and performance of
specific duties, obligations and governance.
The performance evaluation of the Independent Directors was completed. The performance
evaluation of the Chairman and the Non-Independent Directors was carried out by the
Independent Directors. The Board of Directors expressed their satisfaction with the
evaluation process.
v) Meetings of the Board:
During the year ended March 31, 2023, Six (06) Board Meetings were held by the Company
on 30.05.2022, 01.08.2022, 06.09.2022, 07.10.2022, 28.10.2022 and 10.02.2023. Details of
the meetings and the attendance record of the Directors are mentioned in the Corporate
Governance section which forms part of this Report.
vi) Committees of the Board:
At present, there are three (3) Committees of Board, i.e. Audit Committee,
Stakeholders' Relationship Committee & Nomination & Remuneration Committee. The
Composition and other details related to the Committees have been stated in the Corporate
Governance Report which forms part of this report.
DECLARATION OF INDEPENDENCE FROM INDEPENDENT DIRECTORS:
All Independent Directors of your Company have individually and severally given a
declaration pursuant to Section 149(7) of the Companies Act, 2013 affirming compliance to
the criteria of Independence as laid down under Section 149(6) of the Companies Act, 2013.
Based on the declaration(s) of Independent Directors, the Board of Directors recorded its
opinion that all
Independent Directors are independent of the Management and have fulfilled the
conditions as specified in the Companies Act, 2013, rules made thereunder as well as
applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements),
Regulations, 2015.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act, 2013, the Directors of your Company
confirm 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 and 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 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;
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.
CHANGE IN THE NATURE OF BUSINESS:
During the period under review, there is no change in the nature of business of the
Company. The Company continues to operate in the Textile Sector.
EXTRACT OF ANNUAL RETURN:
As required under Section 134 (3) (a) & Section 92 (3) of the Act, the Annual
Return is put up on the Company's website and can be accessed at http:
//vpl.visagar.com/investors.html& Extracts of the Annual return in form MGT 9 for the
Financial Year 2022-23 is uploaded on the website of the Company and can be accessed at
http://vpl.visagar.com/investors.html
NOMINATION AND REMUNERATION COMMITTEE POLICY:
The Board of Directors has framed a policy which lays down a framework in relation to
remuneration of Directors, Key Managerial Personnel and Senior Management of the Company.
This policy also lays down criteria for selection and appointment of Board Members. The
details of this policy are explained in the Corporate Governance ReportThe Nomination
& Remuneration Policy is annexed as “Annexure A” to this Report. The
Nomination & Remuneration Policy is also available in the website of the Company
i.e.http://vpl.visagar.com/investors.html
AUDIT COMMITTEE:
Your Company has an Audit Committee in compliance with the provisions of the Companies
Act, 2013as well as Part C of Schedule II of the Listing Regulations. The composition of
the Audit Committee, detail of terms of reference, number and dates of meetings held and
attendance of the Members therein have been specified separately in the attached Corporate
Governance Report. The Board accepted the recommendations of the Audit Committee whenever
made by the Committee during the year.
PARTICULARS OF CONTRACTS/ ARRANGEMENTS WITH RELATED PARTY:
All related party transactions that were entered into by the Company during the
financial year under review were on arms' length basis and in the ordinary course of
business. There are no material significant related party transactions entered into by the
Company with its Promoters, Directors, Key Managerial Personnel or other designated
persons, which may have a potential conflict with the interest of the Company at large,
hence Form AOC-2 is not applicable to the Company. The policy on materiality of related
party transactions and dealing with related party transactions as approved by the Board
may be accessed on the Company's website at the
link:http://vpl.visagar.com/attachments/PolicvonRelatedPartvTransactions.pdf
AUDITORS & THEIR REPORT:
a) Statutory Auditor:
M/s. S.C. Mehra & Associates LLP., Chartered Accountants (ICAI Registration No.
106156W/W100305) were appointed as statutory auditors of the company. Currently, they are
holding office of the auditors from the the conclusion of the 39th Annual
General Meeting.
Accordingly, as per the said requirements of the Act, M/s. Bhatter & Associates,
Chartered Accountants (Firm Registration No. 131411W) are proposed to be appointed as
auditors for a period of 5 years commencing from the conclusion of 39th Annual
General Meeting till the conclusion of the
44th Annual General Meeting, in place of M/s. S.C. Mehra & Associates
LLP., Chartered Accountants (ICAI Registration No. 106156W/W100305).
M/s. Bhatter & Associates., Chartered Accountants (Firm Registration No. 131411W),
have consented to the said appointment and confirmed that their appointment, if made,
would be within the limits specified under Section 141(3) (g) of the Act. They have
further confirmed that they are not disqualified to be appointed as statutory auditors in
terms of the provisions of the proviso to Section 139(1), Section 141(2) and Section
141(3) of the Act and the provisions of the Companies (Audit and Auditors) Rules, 2014.
The Audit Committee and the Board of Directors have recommended the appointment of M/s.
Bhatter & Associates., Chartered Accountants (Firm Registration No. 131411W), as
statutory auditors of the Company from the conclusion of the 39th Annual
General Meeting till the conclusion of 44th Annual General Meeting, to the
shareholders.
The first proviso to section 139(1) of the Companies Act, 2013 has been omitted vide
section 40 of the Companies (Amendment) Act, 2017 notified on 7thMay, 2018. Therefore, it
is not mandatory for the Company to place the matter relating to appointment of statutory
auditor for ratification by members at every Annual General Meeting. Hence the Company has
not included the ratification of statutory auditors in the Notice of AGM.
The Report given by M/s. S.C. Mehra & Associates LLP., Chartered Accountants, on
the financial statements of the Company for the Financial Year 2021-2022 is a part of the
Annual Report. There has been no qualification, reservation or adverse remark or
disclaimer in their Report.
During the Year under review, the Auditors have not reported any matter under Section
143 (12) of the Act, therefore no detail is required to be disclosed under Section 134
(3)(ca) of the Act.
b) Secretarial Auditor:
In compliance with the provisions of Sec 204 and other applicable provisions of
Companies Act 2013, the Board of Directors have appointed Ms. Kirti Sharma, Practising
Company Secretary as Secretarial Auditors to undertake Secretarial Audit of the Company
for the financial year ended March 31, 2023. The Secretarial Audit Report is attached
herewith marked as "Annexure B” and forms an integral part of this
report.
c) Internal Auditor:
M/s. Lakhpat M Trivedi & Co., Chartered Accountants,
Mumbai (Registration No. 109047) was appointed as Internal Auditor of the Company for the
FY 2022-2023 and the Internal Audit Report prepared by them was placed before the Audit
Committee.
RISK MANAGEMENT:
Risk Management is a risk-based approach to manage an enterprise, identifying events
that may affect the entity and manage risks to provide reasonable assurance regarding
achievement of entity's objective. The risk management process consists of risk
identification, risk assessment, risk prioritization, risk treatment or mitigation, risk
monitoring and documenting the new risks. The Company has laid a comprehensive Risk
Assessment and Minimization Procedure, which is reviewed by the Audit committee and
approved by the Board from time to time. These procedures are reviewed to ensure that
executive management controls risk through means of a properly defined framework. In the
opinion of your Board, none of the risks which have been identified may threaten the
existence of the Company.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has in place an adequate budgetary control system and internal financial
controls with reference to financial statements. No reportable material weaknesses were
observed in the system during the previous fiscal. Further, the Company has laid down
internal financial control policies and procedures which ensure accuracy and completeness
of the accounting records and the same are adequate for safeguarding of its assets and for
prevention and detection of frauds and errors, commensurate with the size and nature of
operations of the Company. The policies and procedures are also adequate for orderly and
efficient conduct of business of the Company.
The Audit Committee of the Board of Directors actively reviews the adequacy and
effectiveness of the internal control systems and suggests improvements to strengthen the
same. The Company has a robust Management Information System, which is an integral part of
the control mechanism.
The Audit Committee of the Board of Directors, Statutory Auditors and the Business
Heads are periodically apprised of the internal audit findings and corrective actions
taken. Audit plays a key role in providing assurance to the Board of Directors.
Significant audit observations and corrective actions taken by the management are
presented to the Audit Committee of the Board. To maintain its objectivity and
independence, the Internal Audit function reports to the Chairman of the Audit Committee.
PUBLIC DEPOSITS:
The Company has not accepted any deposit from the general public within the meaning of
section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits)
Rules, 2014.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE COMPANY UNDER SECTION 186:
Details of Loan, Guarantees and Investments covered under the provisions of the Act,
are disclosed in the notes to the Financial Statements.
MATERIAL CHANGES AFFECTING THE FINANCIAL POSITION OF THE COMPANY:
During the year ended March 31, 2023, there were no material changes and commitments
affecting the financial position of the Company have occurred between the period ended
March 31, 2023 to which financial results relate and the date of the Report.
CORPORATE SOCIAL RESPONSIBILITY:
Since the provisions as laid down in the Section 135 of the Companies Act, 2013 are not
applicable to the Company, hence no such Committee has been formed. However, Company had
always tried in its best possible ways to involve itself in social development activities.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:
There are no significant and material orders passed by the Regulators/Courts which
would impact the going concern status of the Company and its future operations.
MANAGEMENT DISCUSSION AND ANALYSIS:
The Management Discussion and Analysis Report on the operations of the Company, as
required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is
provided in a separate section and forms an integral part of this Report.
CORPORATE GOVERNANCE:
As per Regulation 34 (3) read with Schedule V of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, a separate section on corporate governance
practices followed by the Company, together with a certificate from the Company's Auditors
confirming compliance forms an integral part of this Report.
INSURANCE:
The fixed assets of the Company have been adequately insured.
DEMATERIALISATION OF SHARES:
Your Company has connectivity with the National Securities Depository Limited (NSDL)
& Central Depository Services (India) Limited (CDSL) for dematerialization of its
Equity Shares. The ISIN No.INE370E01029 has been allotted for the Company Shares.
The status of dematerialization of shares as on March 31, 2023 is mentioned in the
Corporate Governance section which forms part of this Report.
LISTING OF SHARES:
The shares of your Company are listed at National Stock Exchange of India Limited and
BSE Limited. The applicable Annual Listing fees have been paid to both the Stock Exchanges
for the financial year 2022-23.
VIGIL MECHANISM/WHISTLE BLOWER POLICY:
Pursuant to Section 177(9) and (10) of the Companies Act, 2013,and Regulation 22 of the
Listing Regulations, the Company has formulated Whistle Blower Policy for vigil mechanism
of Directors and employees to report to the management about the unethical behavior, fraud
or violation of Company's code of conduct. The mechanism provides for adequate safeguards
against victimization of employees and Directors who use such mechanism and makes
provision for direct access to the chairman of the Audit Committee in exceptional cases.
None of the personnel of the Company has been denied access to the Audit Committee.
The Policy is also available on the web-site at the web-link
http://vpl.visagar.com/attachments/Revisedvigilmechanismpolicv.pdf . The Audit Committee
of Directors are entrusted with the responsibility to oversee the Vigil mechanism. During
the year 202223, no complaints were received.
PARTICULARS OF EMPLOYEES:
The information required pursuant to Section 197 read with rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees
of the Company, will be provided upon request. In terms of Section 136 of the Act, the
reports and accounts are being sent to the members and others entitled thereto excluding
the information on employees' particulars which is available for inspection by the members
at the Registered office of the company during business hours on working days of the
company up to the date of ensuing Annual General Meeting. If any member is interested in
inspecting the same, such member may write to the company secretary in advance.
No employee has received remuneration in excess of the limits set out in rules 5(2) and
5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
during FY 2022 - 23.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING& OUTGO:
Information on conservation of energy, technology absorption, foreign exchange earnings
and outgo, as required to be disclosed under section 134[3][m] of the Act read with the
Companies [Accounts] Rules, 2014, are provided in the ‘Annexure C' and forms
part of this Report.
PREVENTION OF SEXUAL HARRASSMENT AT WORKPLACE:
The Company has zero tolerance towards sexual harassment at workplace and has adopted a
Policy on prevention, prohibition and Redressal of sexual harassment at workplace in line
with the requirements of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and Rule made thereunder. During the year under
review, there were no cases filed or reported pursuant to the provisions of the said Act.
ACKNOWLEDGEMENT:
Your Directors take this opportunity to express their grateful appreciation for the
excellent assistance and co-operation received from all our Clients, Bankers, Business
Associates and the Government and other regulatory authorities and thank all stakeholders
for their valuable sustained support and encouragement towards the conduct of the
proficient operation of the Company. Your Directors would like to place on record their
gratitude to all the employees who have continued their support during the year.
By Order of the Board of Directors For VisagarPolytexLimited
|
Sd/- |
Place: Mumbai |
Tilokchand Kothari |
Date: 10.05.2023 |
Chairman & Managing Director DIN: 00413627 |
|