Mar 31, 2018
Directors'' Report for the year ended 31st March, 2018
To
The Shareholders,
Your directors have pleasure in submitting the ANNUAL REPORT relating to the affairs of the Company together with Audited Financial Statements of the Company for the year ended March 31, 2018.
FINANCIAL RESULTS
Rs. in lakhs |
||
Particulars |
Year ended 31.03.2018 |
Year ended 31.03.2017 |
Amount- Rs. |
Amount-Rs |
|
Income |
920.52 |
814.13 |
Expenditure |
||
(a) Expenses |
51.41 |
76.73 |
(b) Provision for Corporate Social Responsibility |
13.25 |
11.00 |
Profit before taxation |
855.86 |
726.40 |
Provision for taxation |
||
Current tax |
||
â For the year |
40.00 |
31.00 |
â Relating to earlier years |
(7.92) |
- |
Total Tax |
32.08 |
31.00 |
Net Profit after taxation |
823.78 |
695.40 |
Dividend (Payable, if approved by members) |
436.34 |
436.34 |
Tax on Proposed Dividend |
88.83 |
88.83 |
Special Reserve (in terms of section 45-IC of RBI Act, 1934) |
164.76 |
139.10 |
DIVIDEND
Board of Directors recommend dividend of Rs. 25 per share on 17,45,340 shares, which is same as per the last year. HOLDING COMPANY
Paharpur Cooling Towers Limited (PCTL) controls the composition of the Board of Directors of the Company. Consequently, the Company in terms of section 2(87)(i) read with Explanation (b) of the Companies Act, 2013 (hereinafter referred to as "the Act"), is the subsidiary of PCTL.
SUBSIDIARY AND ASSOCIATE COMPANY
New Holding And Trading Company Ltd. is a wholly owned subsidiary of the Company. The Company holds 20.53% of share capital of KSB Pumps Limited, therefore, it is an Associate Company in terms of section 2(6) of the Act.
DIRECTORS
The Company has the following directors as at 31st March, 2018
Sr No |
Name of the Director |
DIN |
Status |
Date of Appointment |
1 |
Mr. G Swarup |
00374298 |
Chairman and Managing Director |
17.04.1990 |
2 |
Mr.Varun Swarup |
02435858 |
Non - Executive |
07.11.2017 |
3 |
Ms. Devina Swarup |
06831620 |
Non-Executive WD |
07.11.2017 |
4 |
Mr. Anish K Modi |
00031232 |
Non -Executive IND |
24.09.2014 |
5 |
Mr. Probir Roy |
00033045 |
Non -Executive IND |
15.12.2017 |
6 |
Mr. Debanjan Mandal |
00469622 |
Non -Executive IND |
15.12.2017 |
Out of the above, three Independent directors are appointed for a period of five years. Mr. Varun Swarup has been appointed to fill casual vacancy caused by resignation of Mr. A V Setalvad who would have retired by rotation at the ensuing Annual General Meeting.
A. Resignation of Directors:
Mr. A. V. Setalvad (DIN 00056124), Mr. A. R. Broacha (DIN 00056291) and Ms. Binaisha Sundaram (DIN 06637130) have resigned during the year. The Board places on record its appreciation of their services rendered by these Directors to the Company during their tenure.
B. Appointment of Non-Executive Directors:
Mr. Varun Swarup (DIN 02435858) has been appointed on 7th November, 2017 to fill the casual vacancy caused by the resignation of Mr. A. V. Setalvad.
Ms. Devina Swarup (DIN 06831620) (Women Director) has been appointed on 7th November, 2017 as an Additional Director.
C. Appointment of Independent Directors
Mr. Probir Roy (DIN 00033045) and Mr. Debanjan Mandal (DIN 00469622) were appointed as Additional Directors on 7th November, 2017. By the process of Postal Ballot, both the Directors were appointed on the 15th December, 2017 as Independent Directors for a period of five years from 7th November 2017.
D. Confirmation of appointment Non-Executive Directors
As mentioned above, Mr. Varun Swarup (DIN 02435858) was appointed as a director, to fill the casual vacancy caused by the resignation of Mr. A V Setalvad (DIN 00056124). In accordance with the proviso to Section 161(4) of the Companies Act 2013, Mr. Swarup holds office up to the ensuing Annual General Meeting, the date up to which Mr. Setalvad would have held it he had not resigned. A notice has been received from the holding company in accordance with Section 160 of the Act in respect of appointment of Mr. Swarup. The members are requested to approve his appointment at the ensuing Annual General Meeting.
As mentioned above, Ms. Devina Swarup (DIN 06831620) (WD) was appointed as an Additional Director. Ms. Devina Swarup holds office up to the ensuing Annual General Meeting in accordance with Section 161 of the Companies Act 2013. A notice has been received from the holding company in accordance with Section 160 of the Act in respect of appointment of Ms. Devina Swarup. The members are requested to approve her appointment at the ensuing Annual General Meeting.
KEY MANAGERIAL PERSONNEL
The Company has the following Key Managerial Personnel (KMP) as at 31st March, 2018
a. Mr. Gaurav Swarup, Managing Director.
b. Mr. A. K. Singhania, Chief Financial Officer.
c. Mr. Ayan Datta, Company Secretary and Compliance Officer from 2nd August 2017.
During the year Mr. Hirak Ghosh (also KMP of holding company) resigned as a Company Secretary and Compliance Officer from 1st August, 2017.
Mr. Gaurav Swarup and Mr. A. K. Singhania are also KMP of the PCTL (holding Company). Therefore, their appointments are covered by section 203(3) of the Act.
In compliance with the Act and as per SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015 [LODR] the following reports are attached.
Sr. No. |
Particulars |
Annexure |
1. |
Corporate Governance Report with requisite certificate from the Practising Company Secretary (PCS) |
A |
2. |
Management Discussion and Analysis Report |
B |
3. |
Financial Summary/Highlights |
C |
4. |
Secretarial Audit Report |
D |
5. |
A Statement containing salient features of the financial statement of New Holding and Trading Co. Ltd. (wholly owned subsidiary) and KSB Pumps Limited (Associate Company) in Form AOC 1 |
E |
6. |
Extract of Annual Report in Form MGT9 |
F |
7. |
Disclosure on related party as per LODR |
G |
8. |
Corporate Social Responsibility report in accordance with Section 135 of the Act read with the Rules |
H |
9. |
Consolidated Financial Statement |
I |
NUMBER OF MEETINGS OF THE BOARD
During the financial year under review the Board of Directors met 4 (four) times. The details are given in the Corporate Governance Report (Annexure A). All suggestions of the Audit Committee have been accepted by the Board.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) and subsection (5) of the Act, your Directors confirm that:
(a) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.
(b) Appropriate accounting policies have been selected and applied consistently and that the judgements and estimates made are reasonable and prudent so as to give a true and fair view of the affairs of the Company for the year ended March 31, 2018 and of the profit for the year under review.
(c) Proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) The annual accounts have been prepared on a ''going concern'' basis.
(e) Internal financial controls have been laid down and followed by the company and such internal financial controls are adequate and operating satisfactorily.
(f) There is proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
COMPLIANCE OF SECRETARIAL STANDARDS
The Board of Directors has devised proper systems commensurate with the size and operations to ensure compliance with the provisions of all applicable Secretarial Standards and that such systems are adequate and operating adequately.
AUDIT COMMITTEE
During the year the Audit Committee was reconstituted on 7th November, 2017 as a result of resignation of Mr. A.R. Broacha, Mr. A. V. Setalvad and Ms. Binaisha Sundaram. In their place, Mr. Probir Roy, Mr. Debanjan Mandal and Ms. Devina Swarup were appointed. Details of the said committee are set out in the Corporate Governance Report (Annexure A).
A STATEMENT OF DECLARATION BY INDEPENDENT DIRECTORS
Mr. Probir Roy, Mr. Debanjan Mandal and Mr. A K Modi, Independent Directors have furnished declarations that they meet the criteria of independence as laid down under section 149(6) of the Companies Act, 2013 and of LODR.
POLICY ON DIRECTORS'' APPOINTMENT, REMUNERATION AND CRITERIA OF INDEPENDENCE OF DIRECTORS
Nomination and Remuneration Committee recommends to the Board for appointment of director.
With regard to remuneration, except Mr. G Swarup all the Directors are non- executive directors. Mr. Swarup does not draw any remuneration (except sitting fees). Non-executive Directors are paid sitting fee as well as commission based on the net profits of the Company. The members have approved payment of commission within the limit laid down in the Act.
SECRETARIAL AUDIT REPORT
Pursuant to Section 204 of the Act, the Board of Directors has appointed Mayur Mehta, PCS as Secretarial Auditor. Secretarial Audit Report received from Mayur Mehta is enclosed (Annexure D).
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company''s principal business is dealing in investments and securities and it is registered as NBFC with the Reserve Bank of India. In accordance with section 186(11) details are not required to be given. However, note 2.7 and 2.10 of the attached financial statement gives details of the same.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
There are no material related party transactions during the year under review with the promoters, directors. Key Managerial Personnel and their relatives. Therefore, no details are required to be disclosed the Form AOC 2.
MATERIAL CHANGES AND FINANCIAL COMMITMENTS, IF ANY,
No material changes and financial commitments have occurred between the end of the financial year of the Company to which the balance sheet relates and the date of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGOINGS
There are no particulars to be disclosed with regard to conservation of energy, technology absorption and foreign exchange earnings and outgoings
RISK MANAGEMENT
The principal business of the Company is dealing in investments and securities which are subject to market risks. The Board of Directors/Committee of Directors take policy decision on deployment of funds of the Company in securities market based on investment climate and economic conditions in the country and movement in the stock markets. The investment portfolio is periodically reviewed by the Board of Directors and cautious approach is a key note of the policy to mitigate risks.
AMENDMENT OF THE ARTICLES OF ASSOCIATION
The Articles of Association were originally framed as per the Indian Companies Act, 1913 and they were suitably modified upon enactment of the Companies Act, 1956. The existing set of Articles of Association excludes Table A. With the enactment of the Companies Act, 2013 the existing Articles of Association require substantial changes. Table A of the Companies Act, 1956 has been replaced by Table F of Schedule I. The Board of Directors is of the opinion that the existing Articles of Association be brought in line with the current Act.
The members are requested to approve the proposed new set of Articles of Association in place of the present Articles of Association of the Company.
AMALGAMATION OF NEW HOLDING &TRADING CO. LTD. (WOS)
The Board of Directors has approved on 27th April, 2018, subject to various approvals, a scheme of amalgamation of New Holding & Trading Co. Ltd., its Wholly Owned Subsidiary under Section 233 of the Act. The Board is of the opinion that the proposed scheme of amalgamation is in the interest of the Company. The members are requested to approve the same.
CORPORATE SOCIAL RESPONSIBILITY
The Board of Directors reconstituted the Corporate Social Responsibility (CSR) Committee with effect from 7th November 2017, following the resignation of Mr. A. V. Setalvad and Mr. A.R. Broacha. Present members of the Committee are Mr. Gaurav Swarup, Mr. Probir Roy and Ms. Devina Swarup.
Based on the recommendation of Corporate Social Responsibility Committee, the Board has adopted CSR Policy. It is available on the Website of the Company.
As per the budget recommended by CSR Committee and approved by the Board of Directors, the Company has made provision of Rs. 13.25 lakhs for the financial year ended 31.03.2018. The total cumulative unspent amount is Rs. 35.50 lakhs. As recommended by the CSR Committee, the Company has undertaken a project of Vivekananda Vidyavikash Parishad, an arm of Vidya Bharati, for construction of new school building of ''Saraswati Shishu Mandir"- in Gopalpur, West Bengal. The amount to be contributed for the project is Rs. 25.25 lakhs. The Company has already paid Rs. 10 lakhs. The balance will be paid in stages.
The CSR Committee is actively working for new projects which would take care of any unspent amount provided.
CHANGE IN BUSINESS
There has been no change in the nature of business of the Company.
DEPOSITS
The Company had no deposits at the beginning of the Financial Year. It has not accepted any deposits from its members/ directors. The Company does not have any outstanding deposits at the end of the Financial Year.
SIGNIFICANT MATERIAL ORDERS
No significant and material orders have been passed by the regulators or courts or tribunals impacting the going concern status and the Company''s operations in future.
INTERNAL FINANCIAL CONTROL
The quality of internal financial procedure and control observed by the management and its officials are commensurate with the size and the operations of the Company.
DISCLOSURE OF REMUNERATION VIS A VIS EMPLOYEES
No disclosure is required to be made pursuant to Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Further non-executive directors are paid commission related to profits and fees. The Managing Director is not paid remuneration (except sitting fees).
The Company has no employees covered under Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
The Company has only one male employee.
UNCLAIMED SECURITIES
Members are requested to note that in accordance with the Regulation 39(4) read with the Schedule VI of LODR, the Company has transferred unclaimed equity shares to a separate account titled "Industrial Prudential Unclaimed Securities Suspense Account". Present outstanding is 26109 shares.
The voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION & PROTECTION FUND
During the year, in accordance with Sections 124 and 125 of the and the Rules made thereunder, an amount of Rs. 2,92,032/-being unclaimed dividends up to the year 31st March, 2010, was transferred to the Investor Education & Protection Fund established by the Central Government.
TRANSFER OF SHARES UNDERLYING UNCLAIMED DIVIDEND TO INVESTOR EDUCATION & PROTECTION FUND
During the year the Company has transferred pursuant to Section 124 of the Act, and Investor Education and Protection Fund Authority (Accounting, Audit,Transfer and Refund) Rules, 2016, 3140 shares on which dividend had not been paid or claimed for seven consecutive years or more to an IEPF Account established by the Central Government.
The voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.
AUDITORS'' REPORT
There are no qualifications or adverse remarks in the Auditors'' Report.
AUDITORS
In accordance with Section 139 of the said Act read with rules made thereunder, the Company at the Annual General Meeting held on 1st August, 2017 appointed Messrs. Lodha & Co., Chartered Accountants (Registration no. 301051E), Kolkata as statutory auditors for a period of five years. The appointment is to be ratified by members at every annual general meeting thereafter.
In view of the above, it is proposed to ratify appointment of Messrs. Lodha & Co., Chartered Accountants (Registration no. 301051 E), Kolkata Statutory Auditors in accordance with the first proviso to section 139(1) of the Act, read with the Companies (Audit and Auditors) Rules, 2014 and to fix their remuneration for the financial year ending 31st March, 2019.
In accordance with provisos of Section 139 of the said Act, the Board of Directors has received consent and certificate of eligibility and compliance of criteria under Section 141 of the said Act from Messrs. Lodha & Co., Chartered Accountants.
Members are requested to ratify the appointment of M/s. Lodha & Co. as Statutory Auditors at the ensuing Annual General Meeting.
Registered Office: |
On behalf of the Board of Directors |
Mar 31, 2017
To,
The Shareholders,
The directors have pleasure in submitting the ANNUAL REPORT relating to the affairs of the Company together with Audited Financial Statements of the Company for the year ended March 31, 2017.
FINANCIAL RESULTS Rs. in lakhs
Particulars |
Year ended |
Year ended |
31.03.2017 |
31.03.2016 |
|
Income |
814.13 |
757.13 |
Expenditure |
||
(a) Expenses |
76.73 |
69.98 |
(b) Provision for diminution in Long Term Investments |
- |
28.83 |
(c) Provision for Corporate Social Responsibility |
11.00 |
11.25 |
Profit before taxation |
726.40 |
647.07 |
Provision for taxation |
||
Current tax |
||
âFor the year |
31.00 |
12.00 |
â Relating to earlier years |
- |
- |
31.00 |
12.00 |
|
Net Profit after taxation |
695.40 |
635.07 |
Add: Balance brought forward from Balance Sheet |
925.33 |
1118.48 |
1620.73 |
1753.55 |
|
Profit for appropriation |
||
Appropriation |
||
Dividend |
436.34 |
581.78 |
Tax on Proposed Dividend |
88.83 |
118.44 |
Special Reserve (in terms of Section 45-IC of RBI Act, 1934) |
139.10 |
128.00 |
Balance carried to Balance Sheet |
956.46 |
925.33 |
1620.73 |
1753.55 |
DIVIDEND
Board of Directors recommend dividend of Rs.25 per share on expanded capital of 17,45,340 shares (after issue of 11,63,560 bonus shares.) This dividend is equivalent to Rs.75 per share on the original capital of 5,81,780 shares before bonus issue which is more than the previous year dividend of Rs. 55 per share on the original capital of 5,81,780 shares.
HOLDING COMPANY
Paharpur Cooling Towers Limited (PCTL) controls the composition of the Board of Directors of the Company. Consequently the Company in terms of section 2(87) (i) read with Explanation (b) of the Companies Act, 2013 (hereinafter referred to as âthe Actâ), is the subsidiary of PCTL.
SUBSIDIARY AND ASSOCIATE COMPANY
New Holding And Trading Company Limited is a wholly owned subsidiary of the Company. The Company holds 20.53% of share capital of KSB Pumps Limited, and, therefore, it is an Associate Company in terms of section 2(6) of the Act.
DIRECTORS
Mr. Gaurav Swarup (DIN 00374298) retires by rotation and being eligible offers himself for re-appointment. There has been no change in the Board of Directors during the year under review.
KEY MANAGERIAL PEROSONNEL
The Board of Directors has the following Key Managerial Personnel (KMP)
a. Mr. Gaurav Swarup, Managing Director.
b. Mr. A. K. Singhania, Chief Financial Officer.
c. Mr. Hirak Ghosh, Company Secretary.
All the above are also KMPs of the PCTL (Holding Company). Therefore, their appointment is covered by section 203(3) of the Act.
Mr. Gaurav Swarup has been re-appointed as the Managing Director of the Company with effect from 9th February, 2017 for a period of five years up to 31st January, 2022.
In compliance with the Act and as per SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015 [LODR] the following reports are attached.
Sr. No. |
Particulars |
Annexure |
1. |
Corporate Governance Report with requisite certificate from the Practicing Company Secretary (PCS) |
A |
2. |
Management Discussion and Analysis Report |
B |
3. |
Financial Summary/Highlights |
C |
4. |
Secretarial Audit Report |
D |
5. |
A Statement containing salient features of the financial statement of New Holding and Trading Co. Ltd. (wholly owned subsidiary) and KSB Pumps Limited (Associate Company) in Form AOC 1 |
E |
6. |
Extract of Annual Report in Form MGT 9 |
F |
7. |
Disclosure on related party as per LODR |
G |
8. |
Corporate Social Responsibility report in accordance with Section 135 of the Act read with the Rules |
H |
9. |
Consolidated Financial Statement |
I |
BONUS ISSUE
During the year, after obtaining necessary approvals, the Company has issued and allotted 11,63,560 fully paid bonus shares of Rs.10 each aggregating Rs.1,16,35,600. Accordingly, the paid-up capital is increased from Rs.58,17,800 (5,81,780 shares) to Rs.1,74,53,400 (17,45,340 shares).
SHIFTING OF REGISTERED OFFICE
During the year, after obtaining necessary approvals, the Registered Office of the Company has been shifted from 125 Maker Chambers III, Nariman Point, Mumbai 400021 to Paharpur House, 8/1/B Diamond Harbour Road, Kolkata 700027.
NUMBER OF MEETINGS OF THE BOARD
During the financial year under review the Board of Directors met 4 (four) times. The details are given in the Corporate Governance Report (Annexure A). All suggestions. of the Audit Committee have been accepted by the Board.
DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) and sub section (5) of the Act, your Directors confirm that:
(a) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.
(b) Appropriate accounting policies have been selected and applied consistently and that the judgments and estimates made are reasonable and prudent so as to give a true and fair view of the affairs of the Company for the year ended March 31, 2017 and of the profit for the year under review.
(c) proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) the annual accounts have been prepared on a âgoing concernâ basis.
(e) internal financial controls have been laid down and followed by the company and such internal financial controls are adequate and operating satisfactorily.
(f) there is proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
AUDIT COMMITTEE
Members of the Audit Committee are Mr. A.R. Broacha, Mr. A.K. Modi, Mr. A.V. Setalvad and Ms. Binaisha Sundaram (date of appointment being 9th February 2017). Details of the said committee are set out in the Corporate Governance Report (Annexure A).
A STATEMENT OF DECLARATION BY INDEPENDENT DIRECTORS
Mr. A R Broacha, Mr. A K Modi and Ms. Binaisha Sundaram, independent directors have furnished declarations that they meet the criteria of independence as laid down under section 149(6) of the Companies Act, 2013 and of LODR.
POLICY ON DIRECTORSâ APPOINTMENT, REMUNERATION AND CRITERIA OF INDEPENDENCE OF DIRECTORS
Nomination and Remuneration Committee recommends to the Board appointment of director and payment of sitting fees and commission to non-executive director. It also reviews criteria of independence of Directors.
With regard to remuneration, except Mr. G Swarup, all the Directors are non- executive directors. Mr. Swarup does not draw any remuneration (except sitting fees). Non-executive Directors are paid sitting fee as well as commission based on the net profits of the Company. The members have approved payment of commission within the limit laid down in the Act.
SECRETARIAL AUDIT REPORT
Pursuant to Section 204 of the Act, the Board of Directors has appointed Mayur Mehta, PCS as secretarial auditor. Secretarial Audit Report received from Mayur Mehta is enclosed (Annexure C).
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Companyâs principal business is dealing in investments and securities and it is registered as NBFC with the Reserve Bank of India. In accordance with section 186(11) details are not required to be given. However Note 2.6 and 2.7 of the attached financial statement gives details of the same.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
There are no material related party transactions during the year under review with the promoters, directors, Key Managerial Personnel and their relatives. Therefore, no details are required to be disclosed in the Form AOC 2.
MATERIAL CHANGES AND FINANCIAL COMMITMENTS, IF ANY,
No material changes and financial commitments have occurred between the end of the financial year of the Company to which the balance sheet relates and the date of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGOINGS
There are no particulars to be disclosed with regard to
- conservation of energy,
- technology absorption and
- foreign exchange earnings and outgoings
RISK MANAGEMENT
The principal business of the company is dealing in investments and securities which are subject to market risks. The Board of Directors/Committee of Directors take policy decision on deployment of funds of the Company in securities market based on investment climate and economic conditions in the country and movement in the stock markets. The investment portfolio is periodically reviewed by the Board of Directors and cautious approach is a key note of the policy to mitigate risks.
CORPORATE SOCIAL RESPONSIBILITY
Members of the Corporation Social Responsibility Committee are Mr. A. V. Setalvad (Chairman), Mr. A. R. Broacha and Mr. G. Swarup.
Based on the recommendation of Corporate Social Responsibility Meeting, the Board has adopted CSR Policy. It is available on the Website of the Company.
The Company had undertaken to support project of Jnana Prabodhini Shivapradesh, Pune for setting up a small hostel facility for girls at Velhe in the State of Maharashtra. The said project has been completed successfully.
As per the budget recommended by CSR Committee and approved by the Board of Directors, the Company has made provision of Rs.11.25 lakhs for the financial year ended 31.03.2016 and Rs.11 lakhs for the financial year ended 31.03.2017. The Company is looking at various projects for its CSR activities as prescribed in Schedule VII of the Companies Act, 2013. The accumulated unspent amount of Rs.22.25 lakhs could not be spent as there was no finalization of the project. This amount is expected to be spent in the financial year 2017-18 upon selection of the suitable project.
CHANGE IN BUSINESS
There has been no change in the nature of business of the Company.
DEPOSITS
The Company had no deposits at the beginning of the Financial Year. It has not accepted any deposits from its members/directors. The Company does not have any outstanding deposits at the end of the Financial Year.
SIGNIFICANT MATERIAL ORDERS
No significant and material orders have been passed by the regulators or courts or tribunals impacting the going concern status and the Companyâs operations in future.
INTERNAL FINANCIAL CONTROL
The quality of internal financial procedure and control observed by the management and its officials are commensurate with the size of the operations of the Company.
DISCLOSURE OF REMUNERATION VIS A VIS EMPLOYEES
No disclosure is required to be made pursuant to Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as there is only one male employee of the Company. Further non-executive directors are paid commission related to profits and fees. The Managing Director is not paid remuneration (except sitting fees).
The Company has no employees covered under Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
UNCLAIMED SECURITIES
In accordance with Regulation 39 read with Schedule VI of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 (LODR), the Company has transferred unclaimed securities to âIndustrial Prudential Unclaimed Securities Suspense Accountâ on 5th May, 2016. Aggregate number of shareholders is 330 holding 8703 shares. After Bonus issue as mentioned above the balance in the said suspense account is 26,109 shares. No shareholder has claimed during the year under review.
In accordance with the section 124(5) of the Companies Act, 2013 and Rules made there under and LODR, the shares lying in the suspense account, in respect of which unpaid or unclaimed dividend has been transferred, shall be transferred after following the due procedure as prescribed.
The voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION & PROTECTION FUND
During the year, in accordance with section 205C of the Companies Act, 1956, and Sections 124 and 125 of the Companies Act, 2013 (âthe Actâ) and the Rules made there under an amount of Rs.2,06,388/- being unclaimed dividends up to the year 31st March, 2009, were transferred to the Investor Education & Protection Fund established by the Central Government.
TRANSFER OF UNCLAIMED SHARES TO INVESTOR EDUCATION & PROTECTION FUND
Pursuant to Section124 of the Act (as notified on 7th September 2016),and Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, all shares on which dividend has not been paid or claimed for seven consecutive years or more, shall be transferred to an IEPF Account established by the Central Government after following the due procedure as may be prescribed.
AUDITORSâ REPORT
There are no qualifications or adverse remarks in the Auditorsâ Report.
AUDITORS
In accordance with Section 139(1) and (2) of the Act, the Company at the Annual General Meeting held on 24th September, 2014 appointed M/s. V S Somani & Co., Chartered Accountants, (Registration No. 117589W), the existing Statutory Auditors (being a sole proprietary firm) for a period of three years. In accordance with section 139(2) of the Act the existing Statutory Auditors retire by rotation at the ensuing Annual General Meeting. It is proposed to appoint Messrs. Lodha & Co., Chartered Accountants (Registration no. 301051E), Kolkata in place of M/s. V S Somani & Co., Chartered Accountants to Audit the Accounts for the Financial Years 2017-18 to 2021-22 (that is, from the conclusion of this Annual General Meeting till conclusion of the Sixth Annual General Meeting), to be ratified at every Annual General Meeting.
In view of the above, it is proposed to appoint of Messrs. Lodha & Co., Chartered Accountants, as Statutory Auditors in accordance with section 139 (1) and (2) of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 and to fix their remuneration for the financial year ending 31st March, 2018.
In accordance with provision of Section 139 of the Act, the Board of Directors has received consent and certificates of eligibility and compliance of criteria under Section 141 of the Act from M/s. Messrs. Lodha & Co. Members are requested to appoint M/s. Lodha & Co. as Statutory Auditors at the ensuing Annual General Meeting.
On behalf of the Board of Directors
Gaurav Swarup
Managing Director
Mumbai Office: Registered Office:
125, Maker Chambers III, Paharpur House
Nariman Point, Mumbai-400 021 8/1/B Diamond Harbour Road
Kolkata 700027
Mumbai, May 5, 2017
Mar 31, 2016
To,
The Shareholders,
The directors have pleasure in submitting the ANNUAL REPORT relating to the affairs of the Company together with Audited Financial Statements of the Company for the year ended 31st March, 2016.
FINANCIAL RESULTS
Rs in lakhs
|
|
Year ended |
Year ended |
Particulars |
|
31.03.2016 |
31.03.2015 |
Income |
|
757.13 |
780.29 |
Expenditure |
|
|
|
(a) Expenses |
|
69.98 |
64.68 |
(b) Provision for diminution in Long Term Investments |
|
28.83 |
3.98 |
(c) Provision for Corporate Social Responsibility |
|
11.25 |
10.00 |
Profit before taxation |
|
647.07 |
701.63 |
Provision for taxation |
|
|
|
Current tax |
|
|
|
â For the year |
|
12.00 |
45.00 |
â Relating to earlier years |
|
â |
0.42 |
|
|
12.00 |
45.42 |
Net Profit after taxation |
|
635.07 |
656.21 |
Add: Balance brought forward from Balance Sheet |
|
1,118.48 |
979.63 |
|
Total |
1,753.55 |
1,635.84 |
Profit for appropriation |
|
|
|
Appropriation |
|
|
|
Dividend |
|
581.78 |
319.98 |
Tax on Proposed Dividend |
|
118.44 |
65.14 |
Special Reserve (in terms of Section 45-IC of RBI Act, 1934) |
|
128.00 |
132.00 |
Depreciation as per Schedule II for earlier years |
|
â |
0.24 |
Balance carried to Balance Sheet |
|
925.33 |
1,118.48 |
|
Total |
1,753.55 |
1,635.84 |
DIVIDEND
Directors recommend dividend of Rs. 100 per share including Rs. 45 per share as jubilee dividend celebrating hundred years (previous year Rs 55 per share).
HOLDING COMPANY
Paharpur Cooling Towers Limited (PCTL) controls the composition of the Board of Directors of the Company. Consequently the Company in terms of section 2(87) (i) read with Explanation (b) of the Companies Act, 2013 (hereinafter referred to as âthe Actâ), is the subsidiary of PCTL.
DIRECTORS
Mr. A.V. Setalvad (DIN 00056124) retires by rotation and being eligible offers himself for re-appointment.
KEY MANAGERIAL PEROSONNEL
The following are the Key Managerial Personnel (KMP)
a. Mr. Gaurav Swarup, Managing Director.
b. Mr. A. K. Singhania, Chief Financial Officer.
c. Mr. Hirak Ghosh, Company Secretary.
All the above are also KMP of the PCTL (holding Company). Therefore their appointment is covered by section 203(3) of the Act.
In compliance with the Act and the Listing Agreement with BSE Ltd as per SEBI Listing (Obligation and Disclosure Requirements) Regulation, 2015 [LODR] the following reports are attached.
Sr. No. |
Particulars |
Annexure |
1. |
Corporate Governance Report with requisite certificate from the Practicing Company Secretary (PCS) |
A |
2. |
Management Discussion and Analysis Report |
B |
3. |
Secretarial Audit Report |
C |
4. |
A Statement containing salient features of the financial statement of New Holding and Trading Co. Ltd. (wholly owned subsidiary) and KSB Pumps Limited (Associate Company) in Form AOC 1 |
D |
5. |
Extract of Annual Report in Form MGT 9 |
E |
6. |
Corporate Social Responsibility report in accordance with Section 135 of the Act read with the Rules |
F |
7. |
Financial Summary/Highlights |
G |
8. |
Disclosure on related party as per LODR |
H |
9. |
Consolidated Financial Statement |
I |
BONUS ISSUE
The Board of Directors subject to various approvals, recommends issue of Bonus Shares in the ratio of 2 (two) Equity Bonus Shares of Rs. 10 each for every 1 (one) existing equity shares of Rs. 10 each to the shareholders of the Company on a date to be fixed by the Board of Directors. After issue of 11,63,560 Bonus shares as proposed, the paid equity capital of the Company will be increased to Rs. 1,74,53,400. Bonus shares will be issued by capitalization of General Reserves to the extent of Rs. 1,16,35,600. Necessary resolutions for issue of Bonus Shares and consequent increase in authorized capital and alteration of Memorandum and Articles of Association are set out in the accompanying notice of 100th Annual General Meeting.
CHANGE OF REGISTERED OFFICE
The Board of Directors at its meeting held on 30th May, 2016, subject to various approvals, has proposed to shift the Registered Office from the State of Maharashtra to the State of West Bengal. The change will help better administration and economy, reduce overheads and duplication of records. In accordance with the Section 110 of the Act read with the Rule 22 of the Companies (Management and Administration) Rules, 2014 the members consent is being obtained by Postal Ballot. A seperate notice is being issued in this regard.
NUMBER OF MEETINGS OF THE BOARD
During the financial year under review the Board of Directors met 5 (five) times. The details are given in the Corporate Governance Report (Annexure A). All suggestions of the Audit Committee have been accepted by the Board.
DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) and sub section (5) of the Act, your Directors confirm that:
(a) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.
(b) Appropriate accounting policies have been selected and applied consistently and that the judgments and estimates made are reasonable and prudent so as to give a true and fair view of the affairs of the Company for the year ended March 31, 2016 and of the profit for the year under review.
(c) proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) the annual accounts have been prepared on a âgoing concernâ basis.
(e) internal financial controls have been laid down and followed by the company and such internal financial controls are adequate and operating satisfactorily.
(f) there is proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
AUDIT COMMITTEE
Members of the Audit Committee are Mr. A.R. Broacha, Mr. A.K. Modi and Mr. A.V. Setalvad. Details of the said committee are set out in the Corporate Governance Report (Annexure A).
A STATEMENT OF DECLARATION BY INDEPENDENT DIRECTORS
Mr. A R Broacha, Mr. A K Modi and Mrs. Binaisha Sundaram, independent directors have furnished declarations that they meet the criteria of independence as laid down under section 149(6) of the Companies Act, 2013 and of LODR.
POLICY ON DIRECTORSâ APPOINTMENT, REMUNERATION AND CRITERIA OF INDEPENDENCE OF DIRECTORS
Nomination and Remuneration Committee recommends to the Board appointment of director, and payment of commission in accordance with the limits approved by the members.
With regard to remuneration, except Mr. G Swarup all the Directors are non- executive directors. Mr. Swarup does not draw any remuneration except sitting fees. Directors are paid sitting fee as well as commission based on the net profits of the Company. The members have approved payment of commission within the limit laid down in the Act.
SECRETARIAL AUDIT REPORT
Pursuant to Section 204 of the Act, the Board of Directors has appointed Mayur Mehta, PCS as secretarial auditor. Secretarial Audit Report received from Mayur Mehta is enclosed (Annexure C).
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Companyâs principal business is dealing in investments and securities and it is registered as NBFC with the Reserve Bank of India. As nothing in Section 186, except sub Section (1) of the Act applies in accordance with section 186(11) details are not required to be given. However Note 7 and 9 of the attached financial statement give details of the same.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
There are no material related party transactions during the year under review with the promoters, directors, Key Managerial Personnel and their relatives. Therefore no details are required to be disclosed in the Form AOC 2.
MATERIAL CHANGES AND FINANCIAL COMMITMENTS, IF ANY,
No material changes and financial commitments have occurred between the end of the financial year of the Company to which the balance sheet relates and the date of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGOINGS
There are no particulars to be disclosed with regard to
- conservation of energy,
- technology absorption and
- foreign exchange earnings and outgoings
RISK MANAGEMENT
The principal business of the company is dealing in investments and securities which are subject to market risks. The Board of Directors/Committee of Directors take policy decision on deployment of funds of the Company in securities market based on investment climate and economic conditions in the country and movement in the stock markets. The investment portfolio is periodically reviewed by the Board of Directors and cautious approach is a key note of the policy to mitigate risks.
CORPORATE SOCIAL RESPONSIBILITY
Members of the Corporate Social Responsibility are Mr. A. V. Setalvad (Chairman), Mr. A. R. Broacha and Mr. G. Swarup.
Based on the recommendation of Corporate Social Responsibility Meeting, the Board has adopted CSR Policy. It is available on the Website of the Company. Based on the recommendation of CSR Committee, budgeted expenditure for the year ended 31st March, 2015 of Rs.10 lacs was approved. The entire Rs.10 lacs has been contributed to Jnana Prabodhini Shivapradesh, Pune. The said project has progressed satisfactorily. For the year 31st March, 2016 a budget of Rs. 11.25 lacs has been fixed. The same has been provided in the books of accounts. Based on the progressive report received the amount would be spent on the project.
CHANGE IN BUSINESS
There has been no change in the nature of business of the Company.
DEPOSITS
The Company had no deposits at the beginning of the Financial Year. It has not accepted any deposits from its members/directors. The Company does not have any outstanding deposits at the end of the Financial Year.
SIGNIFICANT MATERIAL ORDERS
Save as mentioned in the Report on Corporate Governance (Annexure A) under para 8(V) Disclosure, no significant and material orders have been passed by the regulators or courts or tribunals impacting the going concern status and the Companyâs operations in future.
INTERNAL FINANCIAL CONTROL
The quality of internal financial procedure and control observed by the management and its officials are commensurate with the size and the operations of the Company.
DISCLOSURE OF REMUNERATION VIS A VIS EMPLOYEES
No disclosure is required to be made pursuant to Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as there is only one male employee of the Company. Further non-executive directors are paid commission related to profits and fees. The Managing Director is not paid remuneration.
The Company has no employees covered under Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
UNCLAIMED SECURITIES
In accordance with Regulation 39 read with Schedule VI, the Company has transferred unclaimed securities to âIndustrial Prudential Unclaimed Securities Suspence Accountâ on 5th May, 2016. Aggregate number of shareholders is 330 holding 8703 shares. The voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.
AUDITORSâ REPORT
There are no qualifications or adverse remarks in the Auditorsâ Report.
AUDITORS
In accordance with Section 139 of the Act read with Rules made there under, the Company at the Annual General Meeting held on 24th September, 2014 appointed Messrs. V S Somani & Co., Chartered Accountants, the existing statutory auditors (being a sole proprietary firm) for a period of three years. The appointment is to be ratified by members at every annual general meeting thereafter.
In accordance with provisions of Section 139 of the Act, the Board of Directors has received consent and certificates of eligibility and compliance of criteria under Section 141 of the Act from Messrs. V S Somani & Co., Chartered Accountants, Mumbai. Members are requested to ratify the appointment of the existing statutory auditors Messrs. V S Somani & Co., Chartered Accountants, and to fix their remuneration.
On behalf of the Board of Directors
A. V. SETALVAD
Chairman
Registered Office:
125, Maker Chambers III,
Nariman Point, Mumbai-400 021.
Mumbai, May 30, 2016.
Mar 31, 2015
Dear Members,
The directors have pleasure in submitting the ANNUAL REPORT relating
to the affairs of the Company together with Audited Financial
Statements of the Company for the year ended 31st March, 2015.
FINANCIAL RESULTS
Rs in lakhs
Year ended Year ended
Particulars 31.03.2015 31.03.2014
Income 780.29 266.20
Expenditure
(a) Expenses 64.68 50.31
(b) Provision for diminution in Long 3.98 17.17
Term Investments
(c) Provision for Corporate Social 10.00 Â
Responsibility
Profit before taxation 701.63 198.72
Provision for taxation
Current tax
 For the year 45.00 5.10
 Minimum Alternate Tax credit  (510)
 Relating to earlier years 0.42 Â
45.42 Â
Net Profit after taxation 656.21 198.72
Add: Balance brought forward from Balance 979.63 1,215.27
Sheet
1.635.84 1,413.99
Profit for appropriation
Appropriation
Dividend 319.98 319.98
Tax on Proposed Dividend 65.14 54.38
Special Reserve (in terms of Section 132.00 40.00
45-IC of RBI Act, 1934)
General Reserve  20.00
Depreciation as per Schedule II for 0.24 Â
earlier years
Balance carried to Balance Sheet 1,118.48 979.63
Balance carried to Balance Sheet 1,118.48 979.63
1.635.84 1,413.99
DIVIDEND
Directors recommend dividend of Rs 55 per share (previous year Rs 55
per share).
HOLDING COMPANY
Paharpur Cooling Towers Limited (PCTL) controls the composition of the
Board of Directors of the Company. Consequently PCTL in terms of
section 2(87)(i) read with Explanation (b) of the Companies Act, 2013
(hereinafter referred to as "the Act"), is the subsidiary of PCTL.
DIRECTORS
Mr. Gaurav Swarup (DIN 00374298) retires by rotation and being eligible
offers himself for re-appointment.
During the year Mr. Vikram Swarup (DIN 00163543) resigned on
12.11.2014. The Board of Directors wishes to place on record its
appreciation of service rendered by Mr. Swarup as a Director.
In accordance with Article 115 of the Articles of Association of the
Company and section 161 of the Act, Ms. Binaisha Sundaram (DIN
06637130) was appointed as a woman director on 22.04.2015 to fill the
casual vacancy caused by the resignationof Mr. Vikram Swarup. Ms.
Binaisha would hold office only till the date up to which Mr. Vikram
Swarup in whose place she was appointed would have held office, namely
till the annual general meeting to be held in the year 2017.
On recommendation of the Nomination and Remuneration Committee, at the
ensuing annual general meeting it is proposed to confirm the
appointment of Ms. Binaisha Sundaram as an independent director in
terms of section 149 of the Act, from 31.08.2015 up to 30.08.2020. Ms.
Binaisha Sundaram is an independent director in compliance with clause
49 of the Listing Agreement with the Bombay Stock Exchange. She meets
criteria of Independent director in accordance with section 149 of the
Act. Pursuant to section 149 read with section 152 of the Act, she has
to be confirmed as an independent director for a period of five years.
KEY MANAGERIAL PEROSONNEL
The Board of Directors has appointed the following Key Managerial
Personnel (KMP) on 30.03.2015.
a. Mr. Gaurav Swarup, Managing Director.
b. Mr. A. K. Singhania, Chief Financial Officer.
c. Mr. Hirak Ghosh, Company Secretary.
All the above are also KMP of the PCTL. Therefore their appointment is
covered by section 203(3) of the Act. Appointment of Mr. G Swarup as
Managing Director is subject to approval of members at the ensuing
annual general meeting. Tenure of Mr. Swarup is concurrent with his
tenure as Managing Director in PCTL, i.e. up to 30.01.2017.
Incompliance with the Act and Listing Agreement with the BSE the
following reports are attached.
Sr. Particulars Annexure
No.
1. Corporate Governance Report with requisite certificate
from the Practising Company Secretary (PCS) A
2. Management Discussion And Analysis Report B
3. Secretarial Audit Report C
Refer Para on qualificatin in the Secretarial Report
4. A Statement containing salient features of the
financial statement of New Holding and Trading Co. Ltd. D
(wholly owned subsidiary) and KSB Pumps Limited (Associate
Company) in Form AOC 1
5. Extract of Annual Return in Form MGT 9 E
6. Corporate Social Responsibility report in accordance
with Section 135 of the Act read with the Rules F
7. Financial Summary/Highlights G
8. Consolidated Financial Statement H
NUMBER OF MEETINGS OF THE BOARD
During the financial year under review the Board of Directors met five
times. The details are given in the Corporate Governance Report
(Annexure A). All suggestions of the Audit Committee have been accepted
by the Board.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) and sub section (5) of the Act, your
Directors confirm that:
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures, if any.
(b) Appropriate accounting policies have been selected and applied
consistently and that the judgements and estimates made are reasonable
and prudent so as to give a true and fair view of the affairs of the
Company for the year ended March 31, 2015 and of the profit for the
year under review.
(c) proper and sufficient care have been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Act, for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and
(d) the annual accounts have been prepared on a 'going concern' basis.
(e) internal financial controls have been laid down and followed by the
company and such internal financial controls are adequate and operating
satisfactorily.
(f) there is proper systems to ensure compliance with the provisions of
all applicable laws and that such systems were adequate and operating
effectively.
AUDIT COMMITTEE
Members of the Audit Committee are Mr. A R Broacha, Mr. A K Modi and
Mr. A V Setalvad. Details of the said committee are set out in the
Corporate Governance Report (Annexure A).
A STATEMENT OF DECLARATION BY INDEPENDENT DIRECTORS
Mr. A R Broacha and Mr. A K Modi, independent directors have furnished
declarations that they meet the criteria of independence as laid down
under Section 149(6) of the Act, and clause 49 of the Listing
Agreement.
POLICY ON DIRECTORS' APPOINTMENT, REMUNERATION AND CRITERIA OF
INDEPENDENCE OF DIRECTORS
Nomination and Remuneration Committee recommends to the Board
appointment of director.
With regard to remuneration, except Mr. G Swarup all the directors are
non-executive director. Mr. Swarup will not draw any remuneration after
30.03.2015, the date of his appointment as KMP. Directors are paid
sitting fee as well as commission based on the net profits of the
Company. Mr. Gaurav Swarup has been paid commission based on profits
for his tenure as non-executive director. The members have approved
payment of commission within the limit laid down in the Act.
SECRETARIAL AUDIT REPORT
Pursuant to Section 204 of the Act, the Board of Directors has
appointed Mayur Mehta, PCS as secretarial auditor. Secretarial Audit
Report received from Mayur Mehta is enclosed (Annexure C).
Observations in the Report
a. "The Company has appointed Ms Binaisha Sundaram, woman director, in
accordance with second proviso to section 149(1) of the Companies Act,
2013 and clause 49(II)(A)(1) of the Listing Agreement with BSE on
22.04.2015, i.e. after the close of the financial year ended
31.03.2015. The BSE has proposed penalty of Rs. 50,000 pursuant to
directive of Securities Exchange Board of India."
b. "Penalty of Rs. 4961 paid to the BSE for late filing of
shareholding pattern as at 31.03.2014 under clause 35 of the listing
agreement."
Explanation
a. The Board of Directors had made intensive search for a suitable
woman candidate who could be inducted as an independent woman director
before 31.03.2015. Like many other corporates, the Company faced
difficulty in selection of suitable candidate and therefore there was
delay in the appointment.
b. There has been administrative delay.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company's principal business is dealing in investments and
securities and it is registered as NBFC with the Reserve Bank of India.
As nothing in Section 186 except sub Section (1) of the Act applies in
accordance with Section 186(11) details are not required to be given.
However Note Nos 7 and 9 of the attached financial statement gives
details of the same.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
There are no material related party transactions during the year under
review with the promoters, directors, Key Managerial Personnel and
their relatives. Therefor no details are required to be disclosed in
the Form AOC 2.
MATERIAL CHANGES AND FINANCIAL COMMITMENTS, IF ANY,
No material changes and financial commitments have occurred between the
end of the financial year of the Company to which the balance sheet
relates and the date of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGOINGS
There are no particulars to be disclosed with regard to
* conservation of energy,
* technology absorption and
* foreign exchange earnings and outgoings
RISK MANAGEMENT
The principal business of the company is dealing in investments and
securities which are subject to market risks. The Board of
Directors/Committee of Directors take policy decision on deployment of
funds of the Company in securities market based on investment climate
and economic conditions in the country and movement in the stock
markets. The investment portfolio is periodically reviewed by the Board
of Directors/ Committee of Directors and cautious approach is a key
note of the policy to mitigate the risks.
CORPORATE SOCIAL RESPONSIBILITY
In accordance with the Section 135 of the Act read with the Companies
(Corporate Social Responsibilities) Rules, 2014, the Corporate Social
Responsibility Committee was constituted during the year.
As recommended by the CSR committee the Board has adopted CSR policy
which is available on the Website of the Company.
The budgeted expenditure of Rs. 10 lakhs as recommended by the CSR
Committee has been provided in the accounts for the year ended
31.03.2015. It is proposed to contribute to Jnana Prabodhini
Shivapradesh, NGO for a project of setting up a small hostel facility
for girls as Velhe in the state of Maharashtra. During the year the
money could not be spent as the project identified by the Board of
Directors needed funds for the financial year 2015-16.
CHANGE IN BUSINESS
There has been no change in the nature of business of the Company.
DEPOSITS
The Company had no deposits at the beginning of the Financial Year. It
has not accepted any deposits from its members/directors. The Company
does not have any outstanding deposits at the end of the Financial
Year.
SIGNIFICANT MATERIAL ORDERS
Save as mentioned under the Secretarial Audit Report above, no
significant and material orders have been passed by the regulators or
courts or tribunals impacting the going concern status and the
Company's operations in future.
INTERNAL FINANCIAL CONTROL
The quality of internal financial procedure and control observed by the
management and its officials are commensurate with the size of the
operations of the Company.
DISCLOSURE OF REMUNERATION VIS A VIS EMPLOYEES
No disclosure is required to be made pursuant to Rule 5 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 as there are only two male employees of the Company. Further
non-executive directors are paid commission related to profits and
fees. The Managing Director has been appointed on 30.03.2015 and he is
not to be paid remuneration.
The Company has no employees covered under Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014.
AUDITORS' REPORT
There are no qualification or adverse remarks in the Auditor's Report.
AUDITORS
In accordance with Section 139 of the Act, the Company at the Annual
General Meeting held on 24th September, 2014 appointed M/s. V S Somani
& Co., Chartered Accountants, the existing statutory auditors (being a
sole proprietary firm) for a period of three years. The appointment was
to be ratified by members at every annual general meeting thereafter.
In accordance with provisions of Section 139 of the Act, the Board of
Directors has received consent and certificates of eligibility and
compliance of criteria under Section 141 of the said Act from M/s. V S
Somani & Co., Chartered Accountants, Mumbai. Members are requested to
ratify the appointment of the existing statutory auditors M/s. V S
Somani & Co., Chartered Accountants, and fix their remuneration.
On behalf of the Board of Directors
A. V. SETALVAD
Chairman
Registered Office:
125, Maker Chambers III,
Nariman Point, Mumbai-400 021.
Mumbai, May 28, 2015.
Mar 31, 2014
Dear members,
The Directors beg to submit their report and audited Balance Sheet and
Statement of Profit and Loss Account of the Company for the year ended
31st March 2014.
1. ACCOUNTS:
2013 - 2014 2012 - 2013
Income 266.20 845.00
Expenditure:
(a) Expenses 50.31 60.22
(b) Provision for 17.17 ---
Diminution in
Long Term
Investments
(c) Exceptional --- 5.96
Expenses
Profit before Taxation 198.72 778.82
Provision for Taxation:
Current Tax
- For the year 5.10 4.95
- Minimum alternate Tax credit (5.10) (4.95)
- Relating to earlier years --- ---
Net Profit after taxation 198.72 779.77
Add: Balance brought forward 1,215.27 1,043.86
from Balance Sheet
Profit for Appropriation 1,413.99 1,823.63
Appropriation:
Dividend 319.98 319.98
Tax on Dividend 54.38 54.38
Special Reserve (in terms
of Section 45-IC of RBI Act, 1934) 40.00 156.00
General Reserve 20.00 78.00
Balance Carried to Balance Sheet 979.63 1,215.27
1,413.99 1,215.27
2. DIVIDEND:
Your Directors recommend a dividend of Rs. 55 per share (previous year
Rs. 55 per share.)
3. CONSOLIDATED ACCOUNTS:
As per the requirement of SEBI, Consolidated Accounts in accordance
with the Accounting Standard AS-21 have been annexed to this annual
report.
4. SUBSIDIARY''S ACCOUNTS
Annual accounts for the year ended 31st March, 2014, of New Holding and
Trading Company Limited (the Company''s wholly owned subsidiary) showing
profit before tax of Rs.9 Lacs (previous year Rs.29 Lacs.) is attached.
5. DIRECTORS
Mr. V Swarup retires by rotation and being eligible, offers himself for
reappointment.
Under Section 262 of the Companies Act, 1956 and Article 115 of the
Articles of Association of the Company, Mr. A. K. Modi, was appointed
on 11th September, 2013, as an Independent Director to fill a casual
vacancy caused by the demise of Mr. V. C. Vaidya, one of the
independent directors. In accordance with Section 262 of the Companies
Act, 1956 corresponding to Section 161 of the Companies Act, 2013, Mr.
Modi, holds office only till the date up to which Mr. V. C. Vaidya in
whose place he was appointed would have held office, namely till the
date of this Annual General Meeting.
Mr. Modi is an independent director in compliance with clause 49 of the
Listing Agreement with the Bombay Stock Exchange. He also fulfills
criteria of Independent Director in accordance with section 149 of the
Companies Act, 2013. Pursuant to provisions of sections 149 and 152 of
the Companies Act, he is to be appointed as an independent director at
the annual general meeting initially for a period of five years.
Members at the annual general meeting held on 11th September, 2009, re-
appointed Mr. A. R. Broacha, a director liable to retire by rotation.
He is due to retire by rotation at the next annual general meeting. Mr.
Broacha is an independent director in compliance with clause 49 of the
Listing Agreement with the Bombay Stock Exchange. He also fulfills
criteria of Independent Director in accordance with section 149 of the
Companies Act, 2013. Pursuant to provisions of sections 149 and 152 of
the Companies Act, he is to be confirmed as an independent director at
the annual general meeting initially for a period of five years.
6. CORPORATE GOVERNANCE REPORT
A Report on Corporate Governance together with a Certificate from the
Practicing Company Secretary confirming compliance with the conditions
of Corporate Governance is annexed to this Report.
7. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report, forming part of this
report, as required under Clause 49(IV)(F) of the Listing Agreement
with the Stock Exchanges, is attached.
8. FIXED DEPOSITS
During the year under review, the Company has not accepted any deposits
from the public.
9. TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
During the year, in accordance with section 205C of the Companies Act,
1956, an amount of Rs. 1,27,824/- being unclaimed dividends up to the
accounting year ended 31st March, 2007, was transferred to the Investor
Education & Protection Fund established by the Central Government.
10. DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
confirm that:
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed;
(b) Appropriate accounting policies have been selected and applied
consistently and that the judgments and estimates made are reasonable
and prudent so as to give a true and fair view of the affairs of the
Company for the year ended March 31, 2014 and of the profit for the
year under review.
(c) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
(d) the annual accounts have been prepared on a ''going concern''
basis.
11. AUDITORS
In accordance with Section 139 of the said Act read with rules made
thereunder, the Company being a listed company, is required to appoint
at the annual general meeting the existing retiring statutory auditors
(individual) for a period of three years. The appointment is to be
ratified by members at every annual general meeting thereafter. Messrs.
V S Somani & Co., Chartered Accountants, the existing statutory
auditors (being a sole proprietary firm) retires at the ensuing annual
general meeting and is required to be appointed for a period of three
years so as to hold office up to the conclusion of the third Annual
General Meeting to be held after this meeting. In accordance with
provisions of Section 139 of the said Act, the Board of Directors has
received consent and certificates of eligibility and compliance of
criteria under Section 141 of the said Act from Messrs. V S Somani &
Co., Chartered Accountants. Members are requested to approve the
appointment of the existing statutory auditors Messrs. V S Somani &
Co., Chartered Accountants and fix their remuneration.
12. PARTICULARS OF EMPLOYEES
The Company has no employees covered under section 217 (2A) of the
Companies Act, 1956.
13. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGOINGS
Your Company is not engaged in any manufacturing activities, and
therefore, there are no particulars to be disclosed under the Companies
(Disclosure of Particulars in the Report of the Board of Directors)
Rules, 1988, relating to conservation of energy or technology
absorption.
14. COMPLIANCE CERTIFICATE
A copy of Compliance Certificate under section 383A of the Companies
Act, 1956, for the year ended 31st March, 2014, received from Mr. Mayur
Mehta, Practising Company Certificate, is annexed and form part of this
report.
For and on behalf of the Board of Directors
A. V. SETALVAD
Mumbai, May 28, 2014. Chairman
Mar 31, 2013
The Directors beg to submit their report and audited Balance Sheet and
Statement of Profit and Loss Account of the Company for the year ended
31st March 2013.
1. ACCOUNTS:
Rs. in Lacs
2012-2013 2011-2012
Income 845.00 559.06
Expenditure:
(a) Expenses 60.22 45.49
(b) Adjustments to the carrying
amount of current investments 18.88
(c) Exceptional expenses 5.96
Profit before Taxation 778.82 494.69
Provision for Taxation:
Current Tax
 for the year (4.95)
 relating to earlier years (0.95)
Deferred Tax (0.11)
(0.95) (0.11)
Net Profit 779.77 494.80
Add: Balance brought forward
from Balance Sheet 1,043.86 1,070.95
Profit for Appropriation 1,823.63 1,565.75
Appropriation:
Dividend 319.98 319.98
Tax on Dividend 54.38 51.91
Special Reserve (in terms of
Section 45-IC of RBI Act, 1934) 156.00 100.00
General Reserve 78.00 50.00
Balance Carried to Balance Sheet 1,215.27 1,043.86
1,823.63 1,565.75
2. DIVIDEND:
From the profit of the year, your Directors recommend a dividend of Rs.
55.00 per share (previous year Rs.55.00 per Share).
3. CONSOLIDATED ACCOUNTS:
As per the requirement of SEBI, Consolidated accounts in accordance
with Accounting Standard (AS) - 21 have been annexed to this Annual
Report.
4. DIRECTORS:
In accordance with the provisions of the Companies Act, 1956 and the
the Articles of Association of the Company, Mr. A. R. Broacha and Mr.
A. V. Setalvad retire by rotation and, being eligible, offer
themeselves for re-appointment
5. AUDITORS:
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors, Messrs V. S. Somani & Co.,
Chartered Accountants, are eligible and offer themselves for
re-appointment. The Company has received a certificate from Messrs V.
S. Somani & Co., Chartered Accountants, to the effect that their
re-appointment, if made, will be within the prescribed limits in
Section 224(1-B) of the Companies Act, 1956.
6. DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of The Companies Act, 1956, the Board of
Directors report that:
 in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures, if any.
 accounting policies have been selected and applied consistently and
that the judgements and estimates made 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.
 proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of The
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
 the annual accounts have been prepared on a going concern basis.
7 COMPLIANCE CERTIFICATE
A copy of Compliance Certificate U/s. 383A of the Companies Act. 1956,
received from Mr. Mayur Mehta, Practising Company Secretary is annexed
and form part of this report.
8 SUBSIDIARY''S ACCOUNTS:
New Holding And Trading Company Limited''s Accounts for the year ended
March 31, 2013 are attached.
9 EMPLOYEES:
The Company has no employees covered under section 217(2A) of the
Companies Act, 1956.
For and on behalf of the Board of Directors
A. V. SETALVAD
Mumbai, May 24, 2013. Chairman
Mar 31, 2012
The Directors beg to submit their report and audited Balance Sheet and
Profit and Loss Statement of the Company for the year ended 31st March
2012.
1. ACCOUNTS: Rs. in lacs
2011-2012 2010-2011
Income 559.06 636.00
Expenditure:
(a) Expenses 45.49 28.61
(b) Adjustments to the carrying amount of
current investments 18.88 9.78
Profit before Taxation 494.69 597.61
Provision for Taxation:
Current Tax
- for the year - 1.50
- relating to earlier year - (0.16)
Deferred Tax (0.11) (0.01)
(0.11) 1.33
Net Profit 494.80 596.28
Add: Balance brought forward from Balance Sheet 1,070.95 1,026.20
Profit for Appropriation 1,565.75 1,622.48
Appropriation:
Dividend 319.98 319.98
Tax on Dividend 51.91 51.55
Special Reserve (in terms of Section 45-IC
of RBI Act, 1934) 100.00 120.00
General Reserve 50.00 60.00
Balance Carried to Balance Sheet 1,043.86 1,070.95
1,565.75 1,622.48
2. DIVIDEND:
From the profit of the year, your Directors recommend a dividend of Rs.
55.00 per share (previous year Rs.55.00 per Share).
Market conditions have had a bearing on the Company's working for the
year.
3. CONSOLIDATED ACCOUNTS:
As per the requirement of SEBI, Consolidated accounts in accordance
with Accounting Standard (AS) - 21 have been annexed to this Annual
Report.
4. DIRECTORS:
In accordance with the provisions of the Companies Act, 1956 and the
the Articles of Association of the Company, Mr. V. Swarup and Mr. G.
Swarup retire by rotation and, being eligible, offer themselves for
re-appointment.
5. AUDITORS:
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors, Messrs V. S. Somani & Co.,
Chartered Accountants, are eligible and offer themselves for
re-appointment. The Company has received a certificate from Messrs V.
S. Somani & Co. Chartered Accountants to the effect that their
re-appointment, if made, will be within the prescribed limits in
Section 224(1-B) of the Companies Act, 1956.
6. DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of The Companies Act, 1956, the Board of
Directors report that:
à in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures, if any.
à accounting policies have been selected and applied consistently and
that the judgements and estimates made 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.
à proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of The
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
à the annual accounts have been prepared on a going concern basis.
7 COMPLIANCE CERTIFICATE
A copy of Compliance Certificate U/s.383A of the Companies Act. 1956,
received from Ragini Chokshi & Associates, Company Secretaries, is
annexed and form part of this report.
8 SUBSIDIARY'S ACCOUNTS:
New Holding And Trading Company Limited's Accounts for the year ended
March 31, 2012 are attached.
9 EMPLOYEES:
The Company has no employees covered under Section 217 (2A) of the
Companies Act, 1956.
For and on behalf of the Board of Directors
A. V. SETALVAD
Mumbai, May 18, 2012. Chairman
Mar 31, 2011
Dear Members,
The Directors beg to submit their report and audited Balance Sheet and
Profit and Loss Account of the Company for the year ended 31st March
2011.
1. ACCOUNTS:
Rs. in lacs
2010-2011 2009-2010
Income 636.00 366.24
Expenditure
(a) Expenses 28.61 21.41
(b) Provision for diminution
in the value of Investment (current) 9.78 (47.62)
Profit before Taxation 597.61 392.45
Provision for Taxation :
Current Tax
- for the year 1.50 10.00
- relating to earlier year (0.16) 11.13
Deferred Tax (0.01) (0.02)
1.33 21.11
Net Profit 596.28 371.34
Add: Balance brought
forward from Balance Sheet 1,026.20 876.76
Profit for Appropriation 1,622.48 1,248.10
Appropriation:
Dividend 319.98 93.08
Tax on Dividend 51.55 15.82
Special Reserve (in terms of
Section 45-IC of RBI Act, 1934) 120.00 75.00
General Reserve 60.00 38.00
Balance Carried to Balance Sheet 1,070.95 1,026.20
1,622.48 1,248.10
2. DIVIDEND:
From the profit of the year, your Directors recommend an increased
dividend of Rs. 55.00 per share (previous year Rs. 16.00 per Share)
3. CONSOLIDATED ACCOUNTS:
As per the requirement of SEBI, Consolidated accounts in accordance
with Accounting Standard (AS) - 21 have been annexed to this Annual
Report.
4. DIRECTORS:
In accordance with the provisions of the Companies Act, 1956 and the
the Articles of Association of the Company, Mr. V. C. Vaidya and Mr. A.
V. Setalvad retire by rotation and, being eligible, offer themeselves
for re-appointment.
5. AUDITORS:
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors, Messrs N. M. Raiji & Co.,
Chartered Accountants, have expressed their unwillingness to seek
re-appointment as the same would not be within the limits under Section
224(1B) of the Companies Act, 1956. It is proposed to appoint Messrs
V.S. Somani & Co., Chartered Accountants, as Statutory Auditors of the
Company for the year 2011 - 2012. A special notice has been received
from a member of the Company in terms of provision of the Companies
Act,1956, signifying intension to propose the appointment of Messrs V.
S. Somani & Co, Chartered Accountants as Statutory Auditors of the
Company. The Company has received a certificate from Messrs.
V. S. Somani & Co., Chartered Accountants, to the effect that their
appointment, if made, will be within the prescribed limits specified
in at Section 224 (1-B) of the Companies Act, 1956.
6. DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of The Companies Act, 1956, the Board of
Directors report that:
* in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures, if any.
* accounting policies have been selected and applied consistently and
that the judgements and estimates made 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.
* proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of The
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
* the annual accounts have been prepared on a going concern basis.
7. COMPLIANCE CERTIFICATE
A copy of Compliance Certificate U/s.383A of the Companies Act.1956,
received from Ragini Chokshi & Co., Company Secretaries, is annexed and
form part of this report.
8. SUBSIDIARY'S ACCOUNTS:
New Holding And Trading Company Limited's Accounts for the year ended
March 31, 2011 are attached.
9. EMPLOYEES:
The Company has no employees covered under Section 217 (2A) of the
Companies Act, 1956.
For and on behalf of the Board of Directors
Place : Mumbai A.V. SETALVAD
Date : 23rd May, 2011 CHAIRMAN
Mar 31, 2010
The Directors beg to submit their report and audited Balance Sheet and
Profit and Loss Account of the Company for the year ended 31 st March
2010.
1. ACCOUNTS: Rs. in lacs
2009-2010 2008- 2009
Income 366.24 355.36
Expenditure
(a) Expenses 21.41 20.33
(b) Provision for diminution in the value
of Investment (current) (47.62) 40.13
Profit before Taxation 392.45 294.90
Provision for Taxation :
Current Tax
-for the year 10.00 --
- relating to earlier year 11.13 1.25
Deferred Tax (0.02) (0.04)
Fringe Benefit Tax - 0.05
21.11 1.26
Net Profit 371.34 293.64
Add: Balance brought forward from
Balance Sheet 876.76 754.80
Profit for Appropriation 1,248.10 1,048.44
Appropriation:
Dividend 93.08 69.81
Tax on Dividend 15.82 11.87
Special Reserve (in terms of Section
45-IC of RBI Act, 1934) 75.00 60.00
General Reserve 38.00 30.00
Balance Carried to Balance Sheet 1,026.20 876.76
1,248.10 1,048.44
2. DIVIDEND:
From the profit of the year, your Directors recommend a dividend of Rs.
16.00 per share (previous year Rs.12.00 per Share)
3. CONSOLIDATED ACCOUNTS:
As per the requirement of SEBI, Consolidated accounts in accordance
with Accounting Standard (AS)-21 have been annexed to thisAnnual
Report.
4. DIRECTORS:
In accordance with the provisions of the Companies Act, 1956 and the
the Articles of Association of the Company, Mr.V. C. Vaidya and Mr. A.
R. Broacha retire by rotation and, being eligible, offer themeselves
for re-appointment.
5. AUDITORS:
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors, Messrs N. M. Raiji & Co.,
Chartered Accountants, are eligible and offer themselves for
re-appointment. The Company has received a certificate from Messrs N.
M. Raiji & Co. to the effect that their re-appointment, if made, will
be within the presscribed limits in Section 224(1-B) of the Companies
Act, 1956.
6. DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of The Companies Act, 1956, the Board of
Directors report that:
* in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures, if any.
* accounting policies have been selected and applied consistently and
that the judgements and estimates made 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 thefinancial year and of the profit of the Company for that
period.
* proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of The
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
* the annual accounts have been prepared on a going concern basis.
7 COMPLIANCE CERTIFICATE
A copy of Compliance Certificate U/s.383A of the Companies Act. 1956,
received from Ragini Chokshi & Co., Company Secretaries, is annexed and
form part of this report.
8 SUBSIDIARYS ACCOUNTS:
New Holding And trading Company Limiteds Accounts for the year ended
March 31,2010 are attached.
9 EMPLOYEES:
The Company has no employees covered under Section 217 (2A) of the
Companies Act, 1956.
For and on behalf of the Board of Directors
A. V. SETALVAD
Mumbai, 22nd June, 2010 Chairman