Mar 31, 2018
Dear Members,
The Directors take pleasure in presenting the Companyâs Tenth Annual Report on the business and operational performance of the Company together with the Audited Financial Statements for the financial year ended March 31, 2018.
FINANCIAL HIGHLIGHTS
(Rs. in lakhs)
Particulars |
FY 2017-18 |
FY 2016-17 |
Revenue from Operations |
42,817.36 |
37,090.53 |
Other Income |
295.27 |
1,312.84 |
Total Revenue |
43,112.63 |
38,403.37 |
Less: Expenses |
30,274.29 |
28,482.21 |
Profit Before Tax |
12,838.34 |
9,921.16 |
Less: Tax Expenses |
2,746.57 |
1,042.28 |
Profit for the Year |
10,091.77 |
8,878.88 |
Other Comprehensive Income for the year (net of taxes) |
12.49 |
(32.98) |
Total Comprehensive Income for the year (Comprising Profit and other Comprehensive Income for the year) |
10,104.26 |
8,845.90 |
The Company has adopted Indian Accounting Standard (referred to as âInd ASâ) for the financial year commencing from April 1, 2016 and accordingly, these financial results along with the comparatives have been prepared in accordance with the recognitions and measurement principles stated therein, prescribed under Section 133 of the Companies Act, 2013 read with relevant rules framed thereunder and the other accounting principles generally accepted in India.
The financial results of your Company as on March 31, 2018, are prepared with the effect of business combination of Navkar Terminals Limited (NTL) in Navkar corporation Limited (NCL) subsequent to amalgamation of NTL into NCL. For details, kindly refer subsequent para. Therefore the figures for the year ended March 31, 2017 has been re-stated considering the effect of amalgamation.
RESULTS OF OPERATIONS
Your Company is engaged in the business of Container Freight Station (CFS) and related activities. The CFS industry in India is facing challenges by increasing share of direct port delivery (DPD) of import containers. But your Company registered a satisfactory performance during the financial year 2017-18 countering such challenges.
The Companyâs Total Revenue increased to Rs. 43112.63 lakh as against Rs. 38403.37 lakh in the previous fiscal, up by 12.26% over the previous year. This revenue was driven by handling of higher TEUs and higher realizations. The Company also progressed well on multiple performance improvement initiatives, reduction in finance cost, optimization of logistics cost, and productivity. As a result, the operating EBIDTA for the year grew by 12.55% in comparison to the last year. The Company posted net profit of Rs. 10,104.26 lakh for FY 2017-18 as compared to the net profit of Rs. 8845.90 lakh for FY 2016-17.
SCHEME OF AMALGAMATION
Amalgamation of Navkar Terminals Limited (âTransferor Companyâ) into Navkar Corporation Limited (âTransferee Companyâ) and their respective shareholders
During the year under review, National Company Law Tribunal (NCLT), Mumbai Bench vide its order dated November 16, 2017 has directed to convene a meeting of Equity Shareholders (Court Convened Meeting) on January 5, 2018 and meeting of Preference Shareholders on January 6, 2018 respectively for the purpose of taking approval of the proposed amalgamation embodied in the Scheme of Amalgamation of Navkar Terminals Limited into Navkar Corporation Limited.
The Shareholders of your Company in their meeting held on January 5, 2018 and January 6, 2018 had approved the Scheme under Sections 230 to 232 of the Companies Act, 2013.
The Scheme was sanctioned by NCLT on March 28, 2018. The certified true copy of the NCLT Order No. CSP 6 of 2018 / CSP 9 of 2018 , both, dated March 28, 2018 were filed with Registrar of Companies on May 11, 2018. Consequent upon the Scheme became effective from May 11, 2018.
With effect from the Appointed Date March 1, 2016 and upon the Scheme coming into effect, the Navkar Terminals Limited, Transferor Company stand merged with and be vested in the Navkar Corporation Limited, Transferee Company, as a going concern, and pursuant to the provisions of Section 230 to 232 of the Companies Act, 2013, together with all the properties, assets, rights, liabilities, benefits and interest therein. Kindly refer Note 44 to the financial statements.
In terms of the scheme, upon the scheme becoming effective, Navkar Corporation Limited was to issue and allot 99,790 ( Ninety Nine Thousand Seven Hundred and Ninety), 6% Cumulative Redeemable Preference Shares of face value of Rs. 100/- each aggregating to Rs. 99,79,000/- (Rupees Ninety Nine Lakhs Seventy Nine Thousand only) on the terms and conditions as mentioned in the Scheme, to the Preference Shareholders of the Navkar Terminals Limited whose names appear in the register of members on Record Date. Accordingly, the Company has issued and allotted the said number of preference shares to the allottees in the Board meeting held on June 21, 2018.
COMPANYâS STATE OF AFFAIRS
The Company has three Container Freight Stations (CFS), two at Ajivali and one at Somathane in Panvel with aggregate installed capacity of over 5,00,000 TEUs per annum. The Company has a Private Freight Terminals (PFT) which allows the Company to load and unload cargo from container trains operating between Somathane CFS and JNPT and to transport domestic cargo to and from inland destinations on the Indian rail network. The Company has started ICD operations at Vapi in the last year with an approximate installed capacity of 5,00,000 TEUs per annum. Vapi terminal volumes are growing at the higher rate. Navkar received final approval from the Indian Railways for operating a PFT at Vapi. The approval is favourable to both the railways and Navkar as the distance between the two is around 175 km. Commencement of rail operation at Vapi is expected to further improve volumes and profitability as the company has an Inland Container Depot at Valsad (Gujarat) along the industrial belt. The management expects to handle 5,000 TEUs per month through this terminal. The ramp-up in volumes will result in significant margin expansion as it will enjoy high operating leverage. Detailed report is available under separate section Management Discussion and Analysis, forms part of this Annual Report.
DIVIDEND AND RESERVES
With a view to conserve the resources for current as well as future business requirements and expansion plans, your Board is of the view that the current yearâs profit be ploughed back into the operations and hence no dividend is recommended for the financial year ended March 31, 2018.
As per Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has formulated Dividend Distribution Policy taking into account the parameters prescribed in the said Regulations. The decision of the Board of Directors on dividend for the financial year 2017-18 is in accordance with the Companyâs policy of meeting long-term growth objectives of the Company by internal cash accruals.
The details of reserves and surplus are provided in note no 17 of the notes to the financial statement.
As per the regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âListing Regulationsâ) requires the top 500 listed entities, based on market capitalization calculated as on 31st March of every financial year, to formulate a Dividend Distribution Policy and disclose the same in their Annual Reports and on their websites.
In the last yearâs Annual Report, the above disclosure was absent inadvertently. The Dividend Distribution policy is annexed as Annexure - 1. However, the policy is available on Companyâs website: http://www.navkarcfs.com/b7download/ policies/Dividend-Distribution-Policy.pdf.
AWARDS AND RECOGNITIONS
The Company has received the following awards and recognitions during the financial year 2017-18:
Container Freight Station of the Year award by 8th All India MALA (Maritime & Logistics Awards) in September 2017 at Mumbai.
Container Freight Station of the Year award at the 2nd Edition of India Maritime Awards in June 2017 at Mumbai.
Container Freight Station of the Year award at the 5th Samudra Manthan Awards 2017 in December 2017 at Mumbai.
Award for Highest Import deliveries of containers from Jawaharlal Nehru Port Trust (JNPT) during the year 2017-18 at Mumbai.
SHARE CAPITAL
During the financial year, the Authorized Share Capital of the Company was increased from Rs. 160 Crore to Rs. 170 Crores vide memberâs approval dt. August 24, 2017. Further in terms of the Amalgamation Scheme of wholly owned subsidiary Company Navkar Terminals Limited with your Company the Authorised Shares Capital of the Company was increased hence the present Authorized Share Capital of the Company is Rs. 2,26,00,00,000/- (Rupees Two Hundred Twenty Six Crore Only) divided into 21,50,00,000 (Twenty One Crore Fifty Lakh) Equity Shares of Rs. 10/- (Rupees Ten Only) each, 50,00,000 (Fifty Lakh) 0% Cumulative Redeemable Preference Shares of Rs. 10/-(Rupees Ten Only) each and 6,00,000 (Six Lakh) 6% Cumulative Redeemable Preference Shares of Rs, 100/- (Rupees One Hundred Only) each.
The Company successfully raised Rs. 144,77,41,914/- (Rupees One Hundred Forty Four Crores Seventy Seven Lakhs Fourty One Thousand Nine Hundred Fourteen only) through Qualified Institutional Placement (QIP) in October, 2017 by issuing 79,11,158 (Seventy Nine Lakhs Eleven Thousand One Hundred Fifty Eight) Equity Shares (Face Value Rs. 10/- each) at the price of Rs. 183/- each.
As on March 31, 2018, the issued, subscribed, paid up share capital of your Company stood at Rs. 152,81,91,810/-(Rupees One Hundred Fifty Two Crore Eighty One Lakhs Ninety One Thousand Eight Hundred Ten only) comprising 15,05,19,181 (Fifteen Crores Five Lakhs Nineteen Thousand One Hundred Eighty One) Equity Shares of face value of Rs. 10/-(Rupees Ten) each and 23,00,000 (Twenty Three Lakhs) 0% cumulative Redeemable Preference Shares of face value of Rs. 10/- (Rupees Ten) each.
On June 21, 2018, Company has issued and allotted 99790 (Ninety Nine Thousand Seven Hundred Ninety) 6% Cumulative Redeemable Preference Shares of Rs. 100/- (Rupees One Hundred Only) each to existing Preference Shareholders of the amalgamated Company Navkar Terminals Limited towards consideration of aforesaid amalgamation.
Apart from the above there are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year and date of signing of this report
DETAILS OF UTILISATION OF IPO AND QIP PROCEEDS
a) IPO Proceeds
Pursuant to the Initial Public Offer made in September 2015, the Company had collected Rs. 51,000 Lakhs through fresh issue of 32,903,225 Equity Shares of the face value of Rs. 10/- each at a premium of Rs. 145/- each share. Utilization of funds so raised is as under
Statement of Utilization of funds raised through Initial Public Offering (lPO):
(Rs. In Lakh)
Particulars |
Amount |
Issue Proceeds |
51,000.00 |
Less: Issue expenses (including service tax) |
3,185.80 |
Net Proceeds from IPO |
47,814.20 |
Less: Utilization of IPO proceeds upto December 31, 2017 |
47,814.20 |
Funds to be utilized |
NIL |
Additional Amount utilised out of internal accruals upto Decemer 31, 2017 |
520.20 |
Object wise details of utilization are as under: (Rs. in Lakh)
Particulars |
Proposed amount as per Prospectus |
Revised proposed amount |
Amount utilized |
Amount unutilized |
(1) |
(2) |
(3) |
(4)=(2) - (3) |
|
Capacity enhancement of the Somathane CFS |
11,452.80 |
7,794.30 |
7,794.30 |
NIL |
Development of the non-notified areas of CFSs (Somathane) |
5,425.10 |
4,468.70 |
4,468.70 |
NIL |
Establishment of a logistics park at Valsad (near Vapi) |
31,456.50 |
20,764.60 |
20,764.60 |
NIL |
Repayment of loan |
- |
15,306.80 |
15,306.80 |
NIL |
Total |
48,334.40 |
48,334.40 |
48,334.40 |
NIL |
IPO of the Company was comprise of an offer for sale of 58,06,451 Equity Shares aggregating to Rs. 90 Crores by Sidhhartha Corporation Private Limited, a member of Promoter G roup.
b) Details of Utilization of QIP Proceeds
Statement of Utilization of funds raised through Qualified Institutional Placement (QIP):
Utilization of QIP Proceeds (Rs. in Lakh)
Particulars |
Amount |
Gross proceeds from QIP issue |
14,477.42 |
Less: Utilization of QIP proceeds for the objects stated in the Placement Document |
14,477.42 |
Funds unutilized |
Nil |
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis Report for the financial year 2017-18, as stipulated under Regulation 34 read with Schedule V to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section forming part of this Annual Report.
CORPORATE GOVERNANCE REPORT
The Company constantly endeavors to follow best Corporate Governance guidelines and best practices and disclose the same transparently. The Board is conscious of its inherent responsibility to disclose timely and accurate information on the Companyâs operations, performance, material corporate events as well as on the leadership and governance matters relating to the Company. The Company has put in place an effective corporate governance system which ensures that the provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 are duly complied with.
A Certificate from Practicing Company Secretary M/s. HS Associates, Mumbai confirming compliance with the conditions of Corporate Governance stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed to the Report on Corporate Governance.
BUSINESS RESPONSIBILITY REPORT
Your Company is committed to carry on business with ethics, transparency and accountability of all its stakeholders. The Company believes in demonstrating responsible behavior while adding value to the society and community as well as ensuring environmental well being.
Pursuant to provisions of Regulation 34(2) (f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Business Responsibility Report describing the initiatives taken by the Company during the period under review from an environmental, social and governance perspective, has been annexed to this Report
SUBSIDIARY, ASSOCIATES AND JOINT VENTURE COMPANY
During the period under review, Navkar Terminals Limited (NTL) was a Wholly Owned Subsidiary Company of Navkar Corporation Limited (NCL). Subsequent to Amalgamation of NTL with NCL, NTL stands merged with NCL and therefore it ceases to be Wholly Owned Subsidiary of your Company. There is no other subsidiary, joint venture and associate Company of NCL.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
During the year ended March 31, 2018, Ms. Sudha Gupta (DIN 01749008) Independent Director and Capt. Dinesh Gautama (DIN 02384688), Whole time Director & Chief Executive Officer of the Company have resigned from the Directoship of the Company w.e.f. October 6, 2017 and December 7, 2017 respectively. The Board placed on record appreciation of their valuable contribution during their tenure towards the Company. However, Capt. Dinesh Gautama continues as a Chief Executive Officer of the Company.
Ms. Pooja H. Goyal (DIN 7813296) and Mr. Sandeep Kumar Singh (DIN 02814440) were appointed as an Additional Director in the category of Non-executive- Independent Director by the Board of Directors with effect from December 14, 2017 and August 23, 2018 respectively, shall hold office upto the conclusion of ensuing Annual General Meeting (AGM) in terms of section 161 of the Companies Act, 2013. Proposals for their appointment as an Independent Directors is being placed before the members in the ensuing Annual General Meeting for their approval.
Mr. Lalit Menghnani (DIN 06614582), Independent Director has resigned from the Company w.e.f. May 25, 2018. Your Directors place on record deep appreciation of his valuable contribution to the Company during his tenure.
In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Nemichand J Mehta, (DIN 01131811), is liable to retire by rotation at the ensuing AGM and being eligible, has offered himself for re-appointment. Accordingly, the Board of Directors of the Company recommends his re-appointment. On his re-appointment, same terms and conditions will remain applicable as approved by share holders earlier.
The brief resume of Directors seeking appointment/reappointment and other related information has been detailed in the Notice convening the 10th AGM.
During the year under review Mr. Hitesh Kumar Jain had resigned from the post of Company Secretary & Compliance officer of the Company with effect from December 15, 2017. Subsequent to his resignation, Ms. Deepa Gehani has been appointed as a Company Secretary & Compliance officer of the Company with effect from January 5, 2018 as per section 203 (1) of the Companies Act, 2013 and Regulation 6 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
As on March 31, 2018, the following are the Key Managerial Personnel of the Company;
Mr. Shantilal J Mehta - Chairman & Managing Director
Mr. Nemichand J Mehta - Whole time Director
Capt. Dinesh Gautama - Chief Executive Officer
Mr. Anish Maheshwari - Chief Financial Officer
Ms. Deepa Gehani - Company Secretary
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received declarations from the Independent Directors under Section 149(7) of the Companies Act, 2013 that he/she meets the criteria of independence as enumerated under section 149(6) of the Companies Act, 2013 and Regulation 16 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
BOARD EVALUATION
The Company has devised a Policy for performance evaluation of the Board of Directors, Board Committees and other individual directors including Chairman, Executive, Independent Directors which include criteria for performance evaluation of Executive Directors and Non-Executive Directors. The evaluation process inter-alia considers availability and attendance, experience, effective participation, domain knowledge, compliance with code of conduct, integrity, diligence and participation, leadership, etc.
The Board of Directors has carried out an annual performance evaluation of its own performance, the Directors individually as well as the evaluation of the working of the Committees of the Board.
The performance evaluation of the Chairman and NonIndependent Directors was carried out by Independent Directors. Details of the same are given in the report on Corporate Governance annexed hereto. The report on performance evaluation of the Individual Directors was reviewed by the Chairman of the Board and feedback was given to Directors.
NUMBER OF MEETINGS OF THE BOARD
Five (05) meetings of the Board of Directors were held during the financial year 2017-18. The details of the number of meetings held and attended by each Director are provided in the Corporate Governance Report, which forms part of this Annual Report.
During the financial year 2017-18, one (1) separate meeting of the Independent Directors of the Company was held on May 29, 2017 in accordance with the provisions of the Schedule IV of the Companies Act, 2013.
AUDIT COMMITTEE
Composition of the Audit Committee meets the requirement of Section 177 of the Companies Act, 2013 and Regulation 18 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. As on March 31, 2018, the Composition of the committee is as under:
Mr. Ashok Kumar Thakur - Chairman (Independent Director)
Ms. Pooja H. Goyal - Member (Independent Director)
Mr. Nemichand J. Mehta - Member (Whole time Director)
During the period under review, there were no instances of non acceptance of any recommendation of the Audit Committee of the Company by the Board of Directors.
DIRECTORSâ RESPONSIBILITY STATEMENT
In terms of Section 134 (5) of the Companies Act, 2013, the directors would like to state that:
(a) In the preparation of the annual accounts for the year ended March 31, 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures;
(b) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2018 and of the profit of the Company for the year ended on that date;
(c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) The Directors have prepared the annual accounts on a going concern basis; and
(e) The Directors, have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.
(f) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
INTERNAL FINANCIAL CONTROLS AND AUDIT
As per section 134(5)(e) of the Companies Act, 2013, your Directors have an overall responsibility for ensuring that the Company has implemented robust system and framework of internal financial controls. This provides the Directors with reasonable assurances regarding the adequacy and operating effectiveness of controls with regards to reporting, operational and compliance risks. Your Company has adequate internal control systems commensurate with the nature of the Companyâs business, size and complexity of its operations are in place and such internal financial controls over financial reporting are operating effectively based on the criteria established by the Company considering the essential components of internal control.
Further, the Internal Financial Controls with reference to financial statements as designed and implemented by the Company are adequate. Proper policies and procedures are in place to ensure orderly and efficient conduct of its business, including adherence to the Companyâs policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial disclosures. The Company has an internal audit function that inculcates the best standards and policies. The Company has a strong internal audit department reporting to the Audit Committee. Internal Audit team has access of all the information. During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls.
RISK MANAGEMENT POLICY
The Company recognizes that existing and emerging risks should be mitigated to:
a. To protect the interest of shareholders and other stakeholders interest
b. Achieve its business objective
c. Enable sustainable growth
Your Company has adopted a well-defined process for managing its risks on an ongoing basis and for conducting the business in a risk conscious manner. These self-regulatory processes and procedures are contained in our Risk Management Policy.
Under the guidance of the Board of Directors of the Company, Key Managerial Personnel and Senior Employees who are conversant with risk management systems and procedures have been entrusted with the risk management of the Company in accordance with the formulated policy. The Audit Committee has additional oversight in the area of financial risks and controls. All risks are systematically addressed through mitigating actions on a continuing basis.
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
The Company has in place Anti-Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees are covered under this policy. No complaints pertaining to Sexual Harassment has been received during the FY 2017-18.
ESTABLISHMENT OF VIGIL MECHANISM / WHISTLE BLOWER POLICY
As per provisions of Section 177 of the Companies Act, 2013 and applicable Rules framed thereunder, the Company has established a vigil mechanism in form of Whistle Blower Policy for Directors and employees to report their genuine concerns about unethical behavior, actual or suspected fraud or violation of the Companyâs Code of Conduct or ethics policy, details of which are provided in the Corporate Governance Report, which forms part of the Annual Report. The policy has been placed on the website of the Company.
The Policy provides for adequate safeguards against victimization of Directors/employees who avail of the mechanism and also provides for direct access to the Chairman of the Audit Committee. During the FY 2017-18, the Company has not received any complaints through vigil mechanism.
The Whistle Blower Policy is available on the companies website at the link i.e. http://www.navkarcfs.com/b/download/policies/ vigil-mechanism-or-whistle-blower-policy.pdf
NOMINATION AND REMUNERATION POLICY
The current policy is to have an appropriate proportion of Executive and Independent directors to maintain the independence on the Board and separate its functions of governance and management.
The Company has framed Nomination and Remuneration Policy. Silent features of such policy are outlined in Annexure - 2 of this Report.
The Nomination and Remuneration policy is available on the Companyâs website at the link i.e. http://www.navkarcfs.c0m/b/ download/policies/nomination-&-remuneration-policy.pdf
CORPORATE SOCIAL RESPONSIBILITY
As required under the provisions of the Section 135 of the Companies Act, 2013, the Board has constituted the Corporate Social Responsibility Committee which monitors and oversees various CSR initiatives and activities of the Company. The Committee comprises three directors with Non-Executive-Independent Director as its Chairperson. Further details such as composition, terms, functions, meetings and attendance of directors of the said committee are provided in the Corporate Governance Report forming part of this Annual Report.
The Report on CSR activities as required under the Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed as Annexure - 3 and forms an integral part of this Report. Policy on Corporate Social Responsibility is available on the Companyâs website at the link http://www.navkarcfs.com/b/download/ policies/CSR-Policy.pdf
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE COMPANY
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the Notes to the Financial Statements.
RELATED PARTY TRANSACTIONS
All related party transactions that were entered into during the Financial Year 2017-18 were on armâs length basis and were in the ordinary course of the business. There are no materially significant related party transactions made by the Company with Promoters, Key Managerial Personnel or other designated persons which may have potential conflict with interest of the Company at large.
All related party transactions pre-cleared by the Audit Committee and these are placed before the Audit Committee and also to the Board for approval. Omnibus approval was obtained for annual transactions which are of recurring nature. A statement containing details of all transactions entered into pursuant to omnibus approval are placed before the Audit Committee and the Board for review and approval on a quarterly basis.
The particulars of contracts or arrangements with related parties referred to in Section 188(1) read with section 134(1 )(h) and applicable rules of the Companies Act, 2013 are provided in the prescribed form AOC-2 as Annexure - 4 which forms part of this Report.
The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board of Directors of the Company can be viewed on the website of the Company through the link: http://navkarcfs.com/b/download/ policies/RPT-Policy.pdf
AUDITORS AND AUDITORSâ REPORT
Statutory Auditors
The Statutory Auditors, M/s. S. K. Patodia & Associates, Chartered Accountants (Firm Registration No.: 112723W), Mumbai, had been appointed as Statutory Auditors in the Sixth Annual General Meeting (AGM) of the Company held on September 11, 2014 to hold office from the conclusion of the Sixth AGM till the conclusion of Eleventh AGM to be held in the financial year 2018 - 2019 (subject to ratification by members at every AGM).
According to the Companies (Amendment) Act, 2017 notified by the Ministry of Corporate Affairs on May 07, 2018, the requirement of ratification of Statutory Auditors by the members of the company at every Annual General Meeting has been done away with. Therefore, no resolution has been proposed for their ratification at the ensuing AGM. They have confirmed that they are not disqualified from continuing as Statutory Auditors of the Company.
The Notes on financial statement referred to in the Auditorsâ Report are self explanatory and do not call for any further comments. The Auditorsâ Report does not contain any qualification, reservation, adverse remark or disclaimer.
Secretarial Auditor
Pursuant to section 204 of the Companies Act, 2013, the Board had appointed M/s. HS Associates, a Firm of Practicing Company Secretaries, Mumbai, to conduct Secretarial Audit for the financial year 2017 -18. The Secretarial Audit Report in Form MR-3 is annexed as Annexure - 5 with this Report.
The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.
Secretarial Standards
During the period under review, the Company has complied with the all applicable Secretarial Standards i.e. SS - 1 and SS - 2 relating to meetings of Board of Directors and General Meetings respectively issued by the Institute of Company Secretaries of India.
EXTRACT OF ANNUAL RETURN
Extract of the Annual Return in form MGT 9, as provided under Section 92 of the Companies Act, 2013, is annexed as Annexure - 6 and forms an integral part of this Report. The Company has placed a copy of such form on itâs website that can be viewed by following the link: http://www.navkarcfs.com/b/ download/documents/annualreturn.pdf
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
Information in accordance with the provisions of Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 regarding conservation of energy, technology absorption and foreign exchange earning & outgo is given in Annexure -7 forms part of this report.
PARTICULARS OF EMPLOYEES
Disclosures with respect to the remuneration of Directors and Employees as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) and 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 have been annexed as Annexure - 8 to this Report.
ENVIRONMENT AND SAFETY
Your Company is committed to make surrounding atmosphere at itâs all CFS and ICD full of fresh air and greenery. In its efforts, huge number of trees has been planted at CFS and ICD year on year.
The Company pay special attention to the safety and smooth flow of the containers. To ensure this, our processes are designed such that they come built-in with safety features. Right from installing a revolutionary technology, like RFID-based container tracking to basking in the goodwill with shipping lines, importers and exporters, freight forwarders and custom house agents. The Companyâs policy requires conduct of operations in such a manner so as to ensure safety of all concerned, compliances of environmental regulations and preservation of natural resources. Audit of safety measures taken by the Company is being carried out at regular interval.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
Human Resources are important assets of Navkar. Your Company has adopted employee friendly HR processes that held to grow and offer them personal developmental opportunities. The Companyâs HR policies encourage talent acquisition and retention process, ensure transparency, and facilitate development, building trust and encourage and support performance oriented environment. Providing equal opportunities to all employees and ensuring diversity by creating level playing field for under privileged segments of the society through positive actions are the ethos of team building process at Navkar. Your Company has such policies in place to prevent discrimination, sexual harassment and encourage talent.
GENERAL
The Board of Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the financial year 2017-18:
- Deposits covered under Chapter V of the Companies Act, 2013.
- Issue of equity shares with differential rights as to dividend, voting or otherwise.
- Issue of shares (including sweat equity shares) to employees of the Company under any scheme.
- The Company does not have any Employeesâ Stock Option Scheme.
- The Company does not have any scheme of provision of money for the purchase of its own shares by employees or by trustees for the benefit of employees.
- Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from its Subsidiary Company.
- No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companyâs operations in future.
- No fraud has been reported by the Auditors to the Audit Committee or the Board.
ACKNOWLEDGEMENT
Your Directors takes this opportunity to express their appreciation for the cooperation and assistance received from the Government of India, Government Authorities Banks, Customers and Shareholders during the period under review. Your Directors also wish to place on record their appreciation of the devoted and dedicated services rendered by all employees of the Company.
On behalf of the Board of Directors
Shantilal J. Mehta
Chairman & Managing Director
Navi Mumbai DIN: 00134162
August 23, 2018
Mar 31, 2017
Dear Members,
The Directors of the Company are pleased to present the Ninth Annual Report on the business and operations of the Company together with the Audited Financial Statements for the financial year ended March 31, 2017.
FINANCIAL HIGHLIGHTS
(Rs. in lakhs)
Particulars |
Standalone |
Consolidated |
||
2016-17 |
2015-16 |
2016-17 |
2015-16 |
|
Revenue from Operations |
35,516.08 |
34,725.73 |
37,090.53 |
34,725.73 |
Other Income |
2,363.49 |
3,233.62 |
1,312.84 |
2,318.46 |
Total Revenue |
37,879.57 |
37,959.35 |
38,403.37 |
37,044.19 |
Less: Expenses |
26,945.30 |
26,698.24 |
28,482.22 |
26,728.86 |
Profit Before Tax |
10,934.27 |
11,261.11 |
9,921.15 |
10,315.33 |
Less: Tax Expenses |
1,313.58 |
1,770.97 |
1,361.14 |
1,762.73 |
Profit for the Year |
9,620.69 |
9,490.14 |
8,560.01 |
8,552.60 |
Other Comprehensive Income for the year (net of taxes) |
(33.19) |
(8.57) |
(32.98) |
(8.57) |
Total Comprehensive Income for the year |
9,587.50 |
9,481.57 |
8,527.03 |
8,544.03 |
As mandated by the Ministry of Corporate Affairs, the Company has adopted the Ind-AS for the Financial Year commencing from April 1, 2016. The estimates and judgments relating to the Financial Statements are made on a prudent basis, so as to reflect in a true and fair manner, the form and substance of transactions and reasonably present the Companyâs state of affairs, profits and cash flows for the year ended March 31, 2017.
RESULTS OF OPERATIONS AND THE STATE OF COMPANYâS AFFAIRS
During the financial year 2016-17, the overall performance of the Company was satisfactory. At Standalone level, the Companyâs Total Revenue stood at Rs.37,879.57 lakh as against Rs.37,959.35 lakh in the previous fiscal, Revenue from Operations stood at Rs.35,516.08 lakh as against Rs.34,725.73 lakh during the previous fiscal and Profit After Tax stood at Rs.9,620.69 lakh as against Rs.9,490.14 lakh in previous year.
At Consolidated level, the Companyâs Total Revenue stood at Rs.38,403.37 lakh as against Rs.37,044.19 lakh in the previous fiscal, Revenue from Operations stood at Rs.37,090.53 lakh as against Rs.34,725.73 lakh during the previous fiscal and Profit After Tax stood at Rs.8,560.01 lakh as against Rs.8,552.60 lakh in previous year.
There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year and the date of this Report.
AWARDS AND RECOGNITIONS
The Company has received the following awards and recognitions:
- Container Freight Station Operator of the Year award by India Maritime Award in June 2016.
- Container Freight Station Operator of the Year (Specific) award at the 7th Maritime And Logistics Awards (MALA) in September 2016.
- Container Freight Station of the Year award at Samudra Manthan Awards in December 2016.
- ICC Supply Chain & Logistics Excellence Award 2016 in the category of Container Freight Services in February 2017.
Capt. Dinesh Gautama, Whole-time Director and Chief Executive Officer of the Company, has received Mentor of the Year (Shipping) 2016 award at Samudra Manthan Awards in December 2016.
DIVIDEND AND RESERVES
In order to conserve the resources for the ongoing projects of the Company as well as the Wholly Owned Subsidiary of the Company, the Board of Directors do not recommend any dividend on the Equity Shares of the Company for the financial year ended March 31, 2017.
As per the provisions of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has formulated Dividend Distribution Policy taking into account the parameters prescribed in the said Regulations. The decision of the Board of Directors on dividend for the financial year 2016-17 is in accordance with the Companyâs policy of meeting long-term growth objectives of the Company by internal cash accruals.
The details of reserves and surplus are provided in note no.22 of the notes to the financial statement.
SHARE CAPITAL
During the financial year 2016-17, there is no change in the Share Capital of the Company.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis Report for the financial year 2016-17, as stipulated under Regulation 34 read with Schedule V to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section forming part of the Annual Report.
CORPORATE GOVERNANCE REPORT
The Company is strictly complying with the Corporate Governance practices as envisaged in the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. A report on corporate governance together with requisite certificate from M/s. HS Associates, Practicing Company Secretaries, Mumbai confirming compliance with the conditions of corporate governance forms part of the Annual Report.
BUSINESS RESPONSIBILITY REPORT
The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, stipulates for the Business Responsibility Report describing the initiatives taken by the companies from an environmental, social and governance perspective. The provisions have been made applicable to Top 500 listed companies in terms of market capitalization as at March 31. As on March 31, 2017, the Company stands among Top 500 listed companies in terms of market capitalization. The Company has adopted the Principles to assess compliance with Environmental, Social and Governance Norms and accordingly the Business Responsibility Report for the financial year 201617 is presented in a separate section forming part of the Annual Report. The detailed Business Responsibility Report is available on the Companyâs website at the link http://www.navkarcfs. com/a/investor-relations.php.
SUBSIDIARY COMPANY
The Company has only one subsidiary, namely Navkar Terminals Limited (NTL). During the financial year 2016-17, NTL has started commercial operations. During the financial year 201617, NTLâs Total Revenue stood at Rs.1,623.15 lakh, Revenue from Operations stood at Rs.1,574.45 lakh and Profit After Tax stood at Rs.38.67 lakh.
The Board of Directors of the Company in its meeting held on March 30, 2017, has approved amalgamation of NTL into the Company. The Company has made applications to BSE Limited and National Stock Exchange of India Limited for obtaining Observation Letters from the Exchanges and the same are awaited.
A Statement containing the salient features of the financial statement including the performance and financial position of the Subsidiaries/Joint Ventures/Associates pursuant to the provisions of the Companies Act, 2013, is given in the prescribed Form AOC -1 as Annexure - 1 which forms part of this Report.
CONSOLIDATED FINANCIAL STATEMENT
Pursuant to Section 129(3) of the Companies Act, 2013, the audited consolidated financial statement is provided in the Annual Report.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Capt. Dinesh Gautama, retires by rotation at the ensuing Annual General Meeting and being eligible has offered himself for re-appointment. On re-appointment, Capt. Dinesh Gautama shall continue as Whole-time Director and Chief Executive Officer of the Company on terms and conditions of his appointment as approved by the members and the Board of Directors.
Mr. R. C. Purohit, an Independent Director of the Company, passed away on November 30, 2016. Mr. Ashok Kumar Thakur was appointed as an Additional Director (Non-executive, Independent) of the Company by the Board of Directors of the Company with effect from January 25, 2017 and he shall hold office upto the date of ensuing Annual General Meeting. In compliance of Section 149, read with Schedule IV of the Companies Act, 2013, the appointment of Mr. Ashok Kumar Thakur as Independent Director is being placed before the members in the Annual General Meeting for approval of the Members.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence prescribed under the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and there has been no change in the circumstances which may affect his status as Independent Director.
The present term of Mr. Shantilal Mehta, Chairman and Managing Director of the Company is expiring on September 30, 2017. The Board of Directors of the Company on the recommendation of Nomination and Remuneration Committee, in its meeting held on May 29, 2017, subject to approval of the Members, has reappointed Mr. Shantilal Mehta as Chairman and Managing Director of the Company for a period of three years with effect from October 1, 2017. Accordingly the reappointment of Mr. Shantilal Mehta, as Chairman and Managing Director is being placed before the members in the Annual General Meeting for approval of the members.
As on March 31, 2017, the Key Managerial Personnel of the Company under Section 203 of the Companies Act, 2013 are Mr. Shantilal Mehta, Chairman and Managing Director, Mr. Nemichand Mehta, Whole-time Director, Capt. Dinesh Gautama, Whole-time Director and Chief Executive Officer, Mr. Anish Maheshwari, Chief Financial Officer and Mr. Hitesh Kumar Jain, Company Secretary and Compliance Officer. Ms. Ekta Chuglani ceased to be Company Secretary of the Company with effect from November 25, 2016.
BOARD EVALUATION
The Company has devised a Policy for performance evaluation of the Board of Directors, Board Committees and Directors including Chairman, Executive Directors, Non-executive Directors and Independent Directors. The evaluation process inter-alia considers availability and attendance, experience, effective participation, domain knowledge, compliance with code of conduct, integrity, diligence and participation, leadership, etc.
Pursuant to the provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, a structured questionnaire was prepared after taking into consideration the various aspects of the Boardâs functioning, composition of the Board and its Committees, culture, execution and performance of specific duties, obligations and governance including the procedure prescribed under SEBI Circular dated January 05, 2017 on Guidance Note on Board Evaluation.
The Board of Directors has carried out an annual performance evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Audit Committee, Nomination and Remuneration Committee, Corporate Social Responsibility Committee and Stakeholders Relationship Committee.
The performance evaluation of the Chairman and Non Independent Directors was carried out by Independent Directors. The reports on performance evaluation of the Individual Directors were reviewed by the Nomination and Remuneration Committee and the Chairman of the Board held discussions with each Board member and provided feedback to them on the evaluation outcome. The Board of Directors expressed their satisfaction with the evaluation process.
NUMBER OF MEETINGS OF THE BAORD
Five meetings of the Board of Directors were held during the financial year 2016-17. The details of the number of meetings held and attended by each Director are provided in the Corporate Governance Report, which forms part of this Report.
DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act, 2013, the Board of Directors of the Company, to the best of their knowledge and ability, confirm that:
(a) in the preparation of the annual accounts for the year ended March 31, 2017, the applicable accounting standards have been followed and there are no material departures from the same;
(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 as at March 31, 2017 and of the profit of the Company for the year ended on that date;
(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) the Directors have prepared the annual accounts on a going concern basis;
(e) the Directors have 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 have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
INTERNAL FINANCIAL CONTROLS
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the Internal, Statutory and Secretarial Auditors and external consultants, including audit of internal financial controls over financial reporting by the Statutory Auditors, and the reviews performed by management and the relevant committees of the Board, including the Audit Committee, the Board of Directors of the Company is of the opinion that the Companyâs internal financial controls were adequate and effective during the financial year 2016-17.
RISK MANAGEMENT POLICY
The Company has formulated and implemented a Risk Management Policy that outlines the framework and procedures to assess and mitigate the impact of risks.
Under the guidance of the Board of Directors of the Company, Key Managerial Personnel and senior employees who are conversant with risk management systems and procedures have been entrusted with the risk management of the Company in accordance with the formulated policy. The Audit Committee has additional oversight in the area of financial risks and controls. All risks are systematically addressed through mitigating actions on a continuing basis.
AUDIT COMMITTEE RECOMMENDATIONS
During the financial year 2016-17, there were no instances of non-acceptance of any recommendation of the Audit Committee by the Board of Directors.
ESTABLISHMENT OF VIGIL MECHANISM / WHISTLE BLOWER POLICY
As per the provisions of Section 177 of the Companies Act, 2013, the Company has adopted the Vigil Mechanism/Whistle Blower Policy to provide appropriate avenues to the employees to bring to the attention of the management any issues which is perceived to be in violation of or in conflict with the fundamental business principals of the Company.
The employees are free to report to the management concerns about unethical behavior, actual or suspected fraud or violation of the codes of conduct or corporate governance policy or any improper activity to the Audit Committee of the Company or Chairman of the Company.
The Whistle Blower Policy has been appropriately communicated within the Company. The policy empowers the Chairman of the Audit Committee/Chairman of the Company to investigate any protected disclosure including matters concerning financials/ accounting, etc. received from the employees under this policy.
During the financial year 2016-17, the Company has not received any complaint through Vigil Mechanism. The Whistle Blower Policy is available on the Companyâs website at the link http:// www.navkarcfs.com/a/investor-relations.php.
NOMINATION AND REMUNERATION POLICY
The Board has, on the recommendation of the Nomination and Remuneration Committee formulated Nomination and Remuneration Policy for determining the criteria for determining qualifications, positive attributes and independence of a director and also criteria for determining the remuneration of directors, key managerial personnel and other employees. The policy is available on the Companyâs website at the link http://www. navkarcfs.com/a/investor-relations.php.
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) activities of the Company are guided by its CSR Policy, which is framed in accordance of applicable provisions of the Companies Act, 2013 by the Board of Directors of the Company.
The Company undertakes its CSR activities through Navkar Charitable Trust which is currently executing various projects on eradication of hunger, maintenance of homes for aged and orphans, promoting healthcare, education and animal welfare. These projects are in accordance with Schedule VII of the Companies Act, 2013 and the Companyâs CSR policy.
The Report on CSR activities as required under the Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed as Annexure - 2 and forms an integral part of this Report. Policy on Corporate Social Responsibility is available on the Companyâs website at the link http://www.navkarcfs.com/a/ investor-relations.php.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE COMPANY
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the Notes to Financial Statements.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
In line with the provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors of the Company has approved a policy on related party transactions. The policy on related party transactions has been placed on the Companyâs website at the link http://www. navkarcfs.com/a/investor-relations.php.
All Related Party Transactions are placed on a quarterly basis before the Audit Committee and also before the Board of Directors for approval. Prior omnibus approval of the Audit Committee is obtained for the transactions which are of a foreseeable and repetitive nature.
The particulars of contracts or arrangements with related parties referred to in Section 188(1) and applicable rules of the Companies Act, 2013 is provided in the prescribed form AOC-2 as Annexure - 3 which forms part of this Report.
AUDITORS AND AUDITORSâ REPORT
Statutory Auditors
The Statutory Auditors, M/s S. K. Patodia & Associates, Chartered Accountants (Firm Registration No.: 112723W), Mumbai, were appointed in the Sixth Annual General Meeting held on 11th September, 2014 to hold office from the conclusion of the Sixth Annual General Meeting till the conclusion of Eleventh Annual General Meeting to be held in the year 2019. The Company has received letter from the Statutory Auditors to the effect that the ratification of appointment, if made, would be within the prescribed limits under Section 141 of the Companies Act, 2013 and that they are not disqualified for re-appointment. The Notes on financial statement referred to in the Auditorsâ Report are self explanatory and do not call for any further comments. The Auditorsâ Report does not contain any qualification, reservation, adverse remark or disclaimer.
Secretarial Auditor
The Board has appointed M/s. HS Associates, Practicing Company Secretaries, Mumbai, to conduct Secretarial Audit for the financial year 2016 -17. The Secretarial Audit Report is annexed as Annexure - 4 with this Report. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.
EXTRACT OF ANNUAL RETURN
Extract of the Annual Return in form MGT 9, as provided under Section 92 of the Companies Act, 2013, is annexed as Annexure - 5 and forms an integral part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
Conservation of Energy:
The Company continuously strives to conserve and optimise energy, adopt environment friendly practices and employ technology for more efficient operations. Adequate measures have been implemented to conserve energy with the focus on uses of the conventional and exploring other sources of energy.
Technology Absorption:
The Company sincerely believes in utilizing technology to improve productivity, efficiency and quality of its business operations and working environment. The Company is incurring major capital expenditure for installing Rubber Tyred Gantry (RTG) Cranes, development of softwareâs and networking setup for CFS Operations.
PARTICULARS OF EMPLOYEES
The statements containing particulars of employees as required pursuant to Section 197 of the Companies Act, 2013, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure - 6 and forms part of this Report.
ENVIRONMENT AND SAFETY
The Company is conscious of the importance of environmentally clean and safe operations. The Companyâs policy requires conduct of operations in such a manner so as to ensure safety of all concerned, compliances of environmental regulations and preservation of natural resources.
As required by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has formulated a policy on prevention of sexual harassment at the workplace with a mechanism of lodging complaints. During the year under review, no complaints were reported to the Board.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
The Company takes pride in the commitment, competence and dedication of its employees in all areas of its business. The Company has a structured induction process at all locations and development programs to upgrade skills of managers.
The Company is committed to nurturing, enhancing and retaining its top talent through superior learning and organizational development. This is a critical pillar to support the organizationâs growth and its sustainability in the long run.
OTHER DISCLOSURES
The Board of Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the financial year 2016-17:
- Deposits covered under Chapter V of the Companies Act, 2013.
- Issue of equity shares with differential rights as to dividend, voting or otherwise.
- Issue of shares (including sweat equity shares) to employees of the Company under any scheme.
- The Company does not have any Employeesâ Stock Option Scheme.
- The Company does not have any scheme of provision of money for the purchase of its own shares by employees or by trustees for the benefit of employees.
- Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from its Subsidiary Company.
- No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companyâs operations in future.
- No fraud has been reported by the Auditors to the Audit Committee or the Board.
ACKNOWLEDGEMENT
The Board of Directors of the Company expresses its sincere appreciation for the continuous assistance and co-operation received from the Banks, Government Authorities, Customers and Shareholders. The Directors also wish to place on record their appreciation for the committed services by the Companyâs employees at all levels.
On behalf of the Board of Directors
Shantilal Mehta
Chairman and Managing Director
Navi Mumbai, May 29, 2017 DIN: 00134162
Mar 31, 2016
Dear Members,
The Directors of the Company are pleased to present the Eighth Annual Report of the Company together with the audited financial statements for the financial year ended March 31, 2016.
FINANCIAL HIGHLIGHTS
The Company''s financial performance, for the year ended March 31, 2016 is summarized below:
(Rs. in Crore)
Particulars |
2015-16 |
2014-15 |
Revenue from Operations |
347.26 |
328.75 |
Other Income |
31.36 |
3.26 |
Total Revenue |
378.62 |
332.01 |
Less: Expenses |
255.94 |
250.64 |
Profit Before Tax |
122.68 |
81.37 |
Less: Tax Expenses |
19.19 |
11.70 |
Profit After Tax |
103.49 |
69.67 |
RESULTS OF OPERATIONS AND THE STATE OF COMPANY''S AFFAIRS
During the financial year 2015-16, the Company''s total revenues increased by 14.04% to Rs. 378.62 Crore, as against Rs. 332.01 Crore in the previous fiscal, primarily due to increase in revenue from operations and other income. During the financial year 2015-16, the Company''s Profit After Tax increased by 48.54% to Rs. 103.49 Crore, as against Rs. 69.67 Crore in previous year, primarily due to operational efficiency and increase in other income.
During the financial year 2015-16, revenue from operations increased by 5.63% to Rs. 347.26 Crore, as against Rs. 328.75 Crore for the financial year 2014-15, primarily on account of increase of 10.89% in revenues from Cargo Handling Services which constituted 75.68% of total revenue from operations for the financial year 2015-16.
During the financial year 2015-16, Other Income was Rs. 31.36 Crore, as against Rs. 3.26 Crore for the financial year 2014-15. The increase in Other Income is primarily on account of increase in Interest Income, Profit on sales of Current Investments and Reversal of provision for diminution in value of Investment.
No material changes and commitments have occurred after the close of the financial year 2015-16 till the date of this Report, which affect the financial position of the Company.
PERFORMANCE DURING THE FIRST QUARTER ENDED JUNE 30, 2016
The Board of Directors approved the Company''s Unaudited Financial Results (Standalone and Consolidated), based on the Indian Accounting Standards (Ind-AS), for the quarter ended June 30, 2016 which are as under:
(Rs. in Crore)
Particulars |
Standalone |
Consolidated |
Revenue from operations |
89.60 |
90.21 |
PBT from ordinary activities |
29.40 |
26.24 |
Other Comprehensive Income (net of Income tax) |
0.06 |
0.06 |
Net Profit |
26.31 |
23.56 |
The Unaudited Financial Results for the first quarter are available on the Company''s website at the link: http://www.navkarcfs. com/a/investor-relations.php.
AWARDS AND RECOGNITIONS
The Company has received the following awards and recognitions:
Container Freight Station Operator of the Year award at the 6th Maritime And Logistics Award (MALA) in September, 2015.
Container Freight Station of the Year award at the Samudra Manthan Award in November, 2015.
ICC Supply Chain & Logistics Excellence Award 2016 in the category of Container Freight Services in March, 2016.
Container Freight Station Operator of the Year award by India Maritime Award in June, 2016.
DIVIDEND AND RESERVES
In order to conserve the resources for the ongoing projects of the Company as well as the Wholly Owned Subsidiary of the Company and the capital requirement for ongoing business expansion, the Board of Directors do not recommend any dividend on the Equity Shares of the Company for the financial year ended March 31, 2016.
As per the provisions of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has formulated Dividend Distribution Policy taking into account the parameters prescribed in the said Regulations. The decision of the Board of Directors on dividend for the financial year 2015-16 is in accordance with the Company''s policy of meeting long-term growth objectives of the Company by internal cash accruals.
The details of reserves and surplus are provided in note no.4 of the notes to the financial statement.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis Report for the financial year 2015-16, as stipulated under Regulation 34 read with Schedule V to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section forming part of the Annual Report.
SHARE CAPITAL
During the financial year 2015-16, the Company completed its Initial Public Offering pursuant to which 3,29,03,225 equity shares of the Company of Rs. 10 each were allotted at a price of Rs. 155 per equity share. The equity shares of the Company were listed on BSE Limited and The National Stock Exchange of India Limited on September 9, 2015.
STATEMENT OF UTILISATION OF FUND RECEIVED FROM INITIAL PUBLIC OFFERING (IPO)
As on March 31 2016, utilization of funds raised through IPO of equity shares is as follows:
Rs. In Crore
Particulars |
Amount |
Issue Proceeds from fresh issue of 3,29,03,225 equity shares |
510.00 |
Less: Issue expenses (including service tax) |
31.86 |
Net Proceeds from IPO |
478.14 |
Less: Utilization of IPO proceeds up to March 31, 2016 |
197.76 |
Funds to be Utilized (remain invested in bank current account and deposits) |
280.38 |
Object wise details of utilization are as under:
Rs. In Crore
Particulars |
Proposed amount as per prospectus |
Revised proposed amount |
Amount utilized uto March 31,2016 |
Amount unutilized as on March 31, 2016 |
Capacity enhancement of the Soma thane CFS |
114.53 |
79.89 |
36.21 |
43.68 |
Development of the non-notified areas of CFSs |
54.25 |
46.93 |
19.20 |
27.73 |
Establishment of a logistics park at Valsad (near Vapi) |
314.56 |
269.26 |
67.83 |
201.43 |
Repayment of loan |
- |
87.27 |
74.53 |
12.74 |
Total |
483.34 |
483.35 |
197.77 |
285.58 |
The amount pending utilization is kept in Fixed Deposits with Banks and Monitoring Current Account with HDFC Bank Limited as under:
Rs. In Crore
Particulars |
Amount |
Investments in Fixed Deposits with Banks |
279.53 |
In Monitoring Current Account with HDFC |
0.85 |
Bank Limited |
|
Total |
280.38 |
SUBSIDIARY COMPANY
The Company has only one subsidiary, namely Navkar Terminals Limited (NTL).
During the financial year 2015-16, NTL has made significant progress in its project of developing an Inland Container Depot (ICD) adjacent to the proposed logistics park of the Company at Umergaon, Valsad district (near Vapi), Gujarat.
The Customs Authorities vide Public Notice No. 03/2016, dated March 14, 2016 have notified the ICD and allocated Location Code IN SAJ6 to the ICD. The Customs Authorities have notified March 15, 2016 as the date of commencement of operation of the ICD.
NTL vide an agreement entered with Kribhco Infrastructure Limited (KRIL), has received contract for operation and management of part of the KRIL''s Container Freight Station (CFS)/ICD and for handling of Container Trains at Hazira Terminal, Gujarat.
A Statement containing the salient features of the financial statements including the performance and financial position of the Subsidiaries/Joint Ventures/Associates pursuant to the provisions of the Companies Act, 2013, is given in the prescribed Form AOC -1 as Annexure - 1 which forms part of this Report.
CONSOLIDATED FINANCIAL STATEMENT
Pursuant to Section 129 of the Companies Act, 2013 and Accounting Standard (AS) - 21, the audited consolidated financial statements is provided in the Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to section 134(5) of the Companies Act, 2013, the Board of Directors of the Company, to the best of their knowledge and ability, confirm that:
(a) in the preparation of the annual accounts for the year ended March 31, 2016, the applicable accounting standards have been followed and there are no material departures from the same;
(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 as at March 31, 2016 and of the profit of the Company for the year ended on that date;
(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) the Directors have prepared the annual accounts on a going concern basis;
(e) the Directors have 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 have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
INTERNAL FINANCIAL CONTROLS
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the Internal, Statutory and Secretarial Auditors and external consultants, including audit of internal financial controls over financial reporting by the Statutory Auditors, and the reviews performed by management and the relevant committees of the Board, including the Audit Committee, the Board of Directors of the Company is of the opinion that the Company''s internal financial controls were adequate and effective during the financial year 2015-16.
CORPORATE GOVERNANCE REPORT
The Company is strictly complying with the Corporate Governance practices as envisaged in the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. A report on corporate governance together with requisite certificate from M/s. HS Associates, Practicing Company Secretaries, Mumbai confirming compliance with the conditions of corporate governance forms part of the Annual Report.
BUSINESS RESPONSIBILITY REPORT
The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, stipulates for the Business Responsibility Report describing the initiatives taken by the companies from an environmental, social and governance perspective. The provisions have been made applicable to Top 500 listed companies in terms of market capitalization as at March 31. During the financial year 2015-16, the Company completed its Initial Public Offering. The equity shares of the Company were listed on BSE Limited and The National Stock Exchange of India Limited on September 9, 2015. As on March 31, 2016, the Company stands among Top 500 listed companies in terms of market capitalization. The Company has adopted the Principles to assess compliance with Environmental, Social and Governance Norms and accordingly the Business Responsibility Report for the year 2015-16 is attached as part of Annual Report and is also available on the Company''s website at the link http:// www.navkarcfs.com/a/investor-relations.php.
RISK MANAGEMENT POLICY
The Company has formulated and implemented a Risk Management Policy that outlines the framework and procedures to assess and mitigate the impact of risks.
Under the guidance of the Board of Directors of the Company, Key Managerial Personnel and senior employees who are conversant with risk management systems and procedures have been entrusted with the risk management of the Company in accordance with the formulated policy. The Audit Committee has additional oversight in the area of financial risks and controls. All risks are systematically addressed through mitigating actions on a continuing basis.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Shantilal Jayavantraj Mehta retires by rotation at the ensuing Annual General Meeting and being eligible has offered himself for reappointment. The Board of Directors of the Company commends his re-appointment.
Pursuant to the provisions of Section 149 of the Companies Act, 2013, Mrs. Sudha Gupta, Mr. Lalit Menghnani and Mr. Rameshchandra Purohit were appointed as Independent Directors at the General Meeting of the Company held on September 30, 2014. The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence prescribed under the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and there has been no change in the circumstances which may affect their status as Independent Director.
Mr. Jayesh Nemichand Mehta has ceased to be Whole-time Director of the Company with effect from September 1, 2016.
As on March 31, 2016, the Key Managerial Personnel of the Company under Section 203 of the Companies Act, 2013 are
Mr. Nemichand Jayavantraj Mehta, Chief Executive Officer, Mr. Anish Maheshwari, Chief Financial Officer and Ms. Ekta Chuglani, Company Secretary. There has been no change in the Key Managerial Personnel during the financial year 2015
16. Mr. Nemichand Jayavantraj Mehta ceased to be Chief Executive Officer with effect from September 1, 2016. The Board of Directors has appointed Capt. Dinesh Gautama, Whole-time Director as Chief Executive Officer of the Company with effect from September 1, 2016 and designated him as Whole-time Director and Chief Executive Officer.
The Company has devised a Policy for performance evaluation of the Board of Directors, Committees and other individual Directors (including Independent Directors) which includes criteria for performance evaluation of the Non-executive Directors and Executive Directors. The evaluation process inter-alia considers attendance of Directors at Board of Directors and Committee meetings, effective participation, domain knowledge, compliance with code of conduct, vision and strategy, benchmarks established by global peers, etc.
The Board of Directors has carried out an annual performance evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Audit Committee, Nomination & Remuneration Committee, Corporate Social Responsibility Committee and Stakeholders Relationship Committee. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.
The performance evaluation of the Chairman and Non Independent Directors was carried out by Independent Directors. The reports on performance evaluation of the Individual Directors were reviewed by the Nomination and Remuneration Committee and the Chairman of the Board held discussions with each Board member and provided feedback to them on the evaluation outcome.
The summary of the Policy for selection of Directors and determining Directors independence; and Remuneration Policy for Directors and Key Managerial Personnel are provided in the Corporate Governance Section which forms part of this Report and detailed policies are available on the Company''s website at the link http://www.navkarcfs.com/a/investor-relations.php.
BOARD MEETING
Fifteen meetings of the Board of Directors were held during the financial year 2015-16. The details of the number of meeting held and attendance of each Director are provided in the Corporate Governance Report, which forms part of this Report.
AUDIT COMMITTEE
As on March 31, 2016, the Audit Committee comprises Ms. Sudha Gupta (Chairperson), Mr. Rameshchandra Meghraj Purohit (Member) and Mr. Jayesh Nemichand Mehta (Member). During the financial year 2015-16, there were no instances of non-acceptance of any recommendation of the Audit Committee by the Board of Directors.
ESTABLISHMENT OF VIGIL MECHANISM / WHISTLE BLOWER POLICY
As per the provisions of Section 177 of the Companies Act, 2013, the Company has adopted the Vigil Mechanism/Whistle Blower Policy to provide appropriate avenues to the employees to bring to the attention of the management any issues which is perceived to be in violation of or in conflict with the fundamental business principals of the Company.
The employees are free to report to the management concerns about unethical behavior, actual or suspected fraud or violation of the codes of conduct or corporate governance policy or any improper activity to the Audit Committee of the Company or Chairman of the Company.
The Whistle Blower Policy has been appropriately communicated within the Company. The policy empowers the Chairman of the Audit Committee/Chairman of the Company to investigate any protected disclosure including matters concerning financials/ accounting, etc. received from the employees under this policy.
During the financial year 2015-16, the Company has not received any complaint through Vigil Mechanism. The Whistle Blower Policy is available on the Company''s website at the link http:// www.navkarcfs.com/a/investor-relations.php.
NOMINATION AND REMUNERATION POLICY
The Board has, on the recommendation of the Nomination & Remuneration Committee formulated Nomination and Remuneration Policy for determining the criteria for determining qualifications, positive attributes and independence of a director and also criteria for determining the remuneration of directors, key managerial personnel and other employees. The policy is available on the Company''s website at the link http://www. navkarcfs.com/a/investor-relations.php.
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
As on March 31, 2016, the Corporate Social Responsibility Committee comprises Ms. Sudha Gupta (Chairperson), Mr. Shantilal Jayavantraj Mehta (Member) and Mr. Jayesh Nemichand Mehta (Member).
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) activities of the Company are guided by its CSR Policy, which is framed and approved by the Board of Directors of the Company.
The Company undertakes its CSR activities through Navkar Charitable Trust. Some of the objects of the Navkar Charitable Trust include eradication of hunger, maintenance of homes for aged and orphans, promoting healthcare, education and animal welfare. The Company contributes to the corpus of Navkar Charitable Trust towards the above activities.
The statutory disclosure with respect to CSR activities forms part of this Annual Report and is annexed with this Report as Annexure - 2. Policy on Corporate Social Responsibility is available on the Company''s website at the link http://www. navkarcfs.com/a/investor-relations.php.
PARTICULARS OF LOANS GIVEN, INVESTMENT MADE, GUARANTEES GIVEN AND SECURITIES PROVIDED
Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipients are provided in the standalone financial statement (Please refer to Notes 14, 15, 17, 21, 32 and 41 to the standalone financial statement).
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
In line with the provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors of the Company has approved a policy on related party transactions. The policy on related party transactions has been placed on the Company''s website at the link http://www. navkarcfs.com/a/investor-relations.php.
All Related Party Transactions are placed on a quarterly basis before the Audit Committee and also before the Board of Directors for approval. Prior omnibus approval of the Audit Committee is obtained for the transactions which are of a foreseeable and repetitive nature.
The particulars of contracts or arrangements with related parties referred to in Section 188(1) and applicable rules of the Companies Act, 2013 is provided in the prescribed form AOC-2 as Annexure - 3 which forms part of this Report.
AUDITORS AND AUDITORS'' REPORT
Statutory Auditors
The Statutory Auditors, M/s. S. K. Patodia & Associates, Chartered Accountants (Firm Registration No.: 112723W), Mumbai, were appointed in the Sixth Annual General Meeting held on 11th September, 2014 to hold office from the conclusion of the Sixth Annual General Meeting till the conclusion of Eleventh Annual General Meeting to be held in the year 2019. The Company has received letter from the Statutory Auditors to the effect that the ratification of appointment, if made, would be within the prescribed limits under Section 141 of the Companies Act, 2013 and that they are not disqualified for re-appointment. As required under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Notes on financial statements referred to in the Auditors'' Report are self explanatory and do not call for any further comments. The Auditors'' Report does not contain any qualification, reservation, adverse remark or disclaimer.
Secretarial Auditor
The Board has appointed M/s. H S Associates, Practicing Company Secretaries, Mumbai, to conduct Secretarial Audit for the financial year 2015-16. The Secretarial Audit Report is annexed as Annexure - 4 with this Report. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.
EXTRACT OF ANNUAL RETURN
Extract of the Annual Return in form MGT 9 is annexed as Annexure - 5 with this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
Conservation of Energy:
The Company continuously strives to conserve and optimize energy, adopt environment friendly practices and employ technology for more efficient operations. Adequate measures have been implemented to conserve energy with the focus on uses of the conventional and exploring other sources of energy.
Technology Absorption:
The Company sincerely believes in utilizing technology to improve productivity, efficiency and quality of its business operations and working environment. The Company is incurring major capital expenditure for installing Rubber Tyred Gantry (RTG) Cranes, development of software''s and networking setup for CFS Operations.
Foreign Exchange Earnings and Outgo
Foreign Exchange Earnings : Nil
Foreign Exchange Outgo : Rs. 2,90,39,830/-
PARTICULARS OF EMPLOYEES
The statement containing particulars of employees as required pursuant to Section 197 of the Companies Act, 2013, read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is not applicable since none of the employees are in receipt of remuneration in excess of the limits set out in the said rules.
Disclosures relating to remuneration and other details as required under Section 197 of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in the Annual Report as Annexure - 6 which forms part of this Report.
OTHER DISCLOSURES
The Board of Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the financial year 2015-16:
- Deposits covered under Chapter V of the Companies Act, 2013.
- Issue of equity shares with differential rights as to dividend, voting or otherwise.
- Issue of shares (including sweat equity shares) to employees of the Company under any scheme.
- The Company does not have any Employees'' Stock Option Scheme.
- The Company does not have any scheme of provision of money for the purchase of its own shares by employees or by trustees for the benefit of employees.
- Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from its Subsidiary Company.
- No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company''s operations in future.
- No fraud has been reported by the Auditors to the Audit Committee or the Board.
ACKNOWLEDGEMENT
The Board of Directors of the Company expresses its sincere appreciation for the continuous assistance and co-operation received from the Banks, Government Authorities, Customers and Shareholders. The Directors also wish to place on record their appreciation for the committed services by the Company''s employees.
On behalf of the Board of Directors
Date : September 1, 2016 Shantilal J Mehta
Place : Mumbai Chairman and Managing Director
Mar 31, 2015
The Directors are pleased to present the Seventh Annual Report of the
Company together with the audited financial statements of your Company
for the financial year ended March 31, 2015.
1. financial Highlights (Standalone) (in)
for the year For the Year
particulars Ended March Ended March
31, 2015 31, 2014
Revenue from Operations 3,287,542,893 3,493,500,801
Other Income 32,607,216 208,361,074
Total Revenue 3,320,150,109 3,701,861,875
Less: Expenses 2,506,378,515 2,710,465,657
Profit Before Tax 813,771,594 991,396,218
Less: Tax Expenses 117,087,716 85,891,816
Profit After Tax 696,683,878 905,504,402
2. Operations/State of the Company's affairs
During the financial year 2014-15, your Company performed creditably in
a challenging macroeconomic environment. During the year, the cargo
handling services volumes increased from 244,128 TEUs for the financial
year 2013-14 to 268,836 TEUs for the financial year 2014-15.
The total revenue of the Company decreased by 10.3% from Rs. 370.19 crore
for the financial year 2013-14 to Rs. 332.02 crore for the financial year
2014-15, primarily due to a decrease in revenue from operations and due
to a decrease in other income.
The revenue from operations decreased by 5.9% from Rs. 349.35 crore for
the financial year 2013-14 to Rs. 328.76 crore for the financial year
2014-15, primarily since the Company discontinued business of the sale
of agro products with effect from April 1, 2014, which accounted for Rs.
60.51 crore of revenue from operations for the financial year 2013-14.
The decrease in the revenue from operations was partially offset by an
increase of 11.2% in revenues from the cargo handling services to Rs.
236.99 crore for the financial year 2014-15 from Rs. 213.16 crore for the
financial year 2013-14 and an increase of 19.7% in the revenues from the
cargo storage services to Rs. 86.00 crore for the financial year 2014-15
from Rs. 71.83 crore for the financial year 2013-14.
Other income decreased by 84.4% from Rs. 20.84 crore for the financial
year 2013-14 to Rs. 3.26 crore for the financial year 2014-15, primarily
due to a decrease in foreign exchange gains from Rs. 16.98 crore for the
financial year 2013-14 to Nil for the financial year 2014-15. This
decrease was primarily due to foreign exchange fluctuations.
3. dividend and Reserves
In order to conserve the resources, your Directors do not recommend any
dividend for the year ended March 31, 2015. The details of reserves and
surplus are provided in note no. 4 of the notes to the financial
statements.
4. Share Capital
During the year under review, the authorized share capital of the
Company was increased from Rs. 25.91 crore to Rs. 160 crore.
Further the Company has issued bonus shares to the existing equity
shareholders of the Company in proportion of Five (5) equity shares for
every One (1) equity share held and the paid up share capital of the
Company was increased from Rs. 20.58 crore to Rs. 112 crore on March 3,
2015.
5. Subsidiary Company
During the year under review, the Company has one subsidiary, namely
Navkar Terminals Limited.
Navkar Terminals Limited is in the process of developing an ICD
adjacent to the proposed logistics park of the Company at Umergaon,
Valsad district (near Vapi), Gujarat.
6. Consolidated financial Statements
Pursuant to Section 129 of the Companies Act, 2013, and Accounting
Standard AS 21, the Company has prepared consolidated accounts with
that of its subsidiary, which also form part of this Annual Report.
7. public deposits
During the year under review, your Company has not accepted any
deposits from the public within the ambit of Section 73 of the
Companies Act, 2013 read with the Companies (Acceptance of Deposit)
Rules, 2014.
8. particulars of Loans, guarantees or investment by the Company
Details of Loans made, Guarantees given and Investments made by the
Company as covered under the provisions of Section 186 of the Companies
Act, 2013 are given in the notes (note no.14,15 and 37) to the
Financial Statements.
9. particulars of contracts or arrangements with related parties.
Details of contracts or arrangements entered into with the related
parties as per the provisions of Section 188 of the Companies Act, 2013
are disclosed in form No. AOC - 2 annexed with the Board Report as
Annexure - 1.
10. Material changes and commitments, if any, affecting the financial
position of the Company which have occurred between the end of the
financial year of the company to which the financial statements relate
and the date of the report
There are no material changes occurred subsequent to the close of the
financial year of the Company to which the balance sheet relates and the
date of the report like settlement of tax liabilities, operation of
patent rights, depression in market value of investments, institution
of cases by or against the company, sale or purchase of capital assets
or destruction of any assets etc.
11. Details of significant and material orders passed by the regulators
or courts or tribunals impacting the going concern status and Company's
operations in future
There has been no significant and material orders that has been passed
by the Regulators or Courts or Tribunals that has impacted the Going
Concern Status and Company's Operations in future.
12. Statutory auditors
The Statutory Auditors, M/s S.K. Patodia & Associates, Chartered
Accountants (Firm Registration No.: 112723W), Mumbai, who retire at the
ensuing Annual General Meeting of the Company are eligible for
re-appointment. They have confirmed their eligibility under section 141
of the Companies Act, 2013 and the Rules framed there under for
re-appointment as Auditors of the Company.
13. auditors' Report
The report of the Auditor's on the accounts of the Company does not
contain any observations/remarks or qualifications and the same does not
calls for any clarifications or explanations to be given in the
Directors' Report.
14. Secretarial audit Report
Pursuant to provisions of Section 204 of the Companies Act,
2013 and the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s HS Associates,
Practicing Company Secretaries, Mumbai, to undertake the Secretarial
Audit of the Company. The Secretarial Audit Report is annexed herewith
as "Annexure-2".
With reference to the observations of the Secretarial Auditor, the
Company has appointed Company Secretary and Internal Auditor during the
year. The observation of the Secretarial Auditor on related party
guarantee is self explanatory. Hence for brevity no repetition is made
here.
15. Corporate governance Report
A report on corporate governance together with the Secretarial
Auditor's Certificate on compliance with the conditions of corporate
governance, forms the part of this Annual Report.
16. Extract of annual return
The details forming part of the extract of the Annual Return in form
MGT 9 is annexed herewith as "Annexure-3".
17. Directors and Key Managerial personnel
Capt. Dinesh Gautama was appointed as an additional Director of the
Company with effect from December 08, 2014 and Mrs. Shailaja N Mehta
has resigned from the Directorship with effect from December 08, 2014.
All Independent Directors have given declarations that they meet the
criteria of independence as laid down under Section 149(6) of the
Companies Act, 2013.
Mr. Nemichand J Mehta ceased to be the Managing Director of the Company
with effect from September 04, 2014 and was appointed as the Chief
Executive Officer of the Company with effect from the same date.
The Board of Directors had designated Mr. Shantilal J Mehta as Chairman
and Managing Director of the Company with effect from September 12,
2014 for further period of 3 years and re-appointed Mr. Jayesh N Mehta
as Whole-time Director of the Company for further period of 3 years
with effect from September 12, 2014.
In accordance with the provisions of the Companies Act, 2013 and in
terms of the Articles of Association of the Company, Mr. Jayesh N Mehta
retires by rotation and being eligible for re-appointment, offers his
candidature for the same.
Ms. Ekta Chuglani was appointed Company Secretary of the Company with
effect from September 12, 2014.
Mr. Jayesh Kritikant Kothari was appointed as Chief Financial Officer
(CFO) of the Company with effect from September 25, 2014 and during the
year he resigned from the post of CFO with effect from February 06,
2015. Mr. Anish Sewaram Maheshwari was appointed as a CFO with effect
from the same date.
18. Board Evaluation
Pursuant to the provisions of the Companies Act, 2013, the Board has
carried out an annual performance evaluation of its own performance,
the directors individually as well as the evaluation of the working of
its Audit, Nomination & Remuneration, Corporate Social Responsibility
Committee and Stakeholders' Grievance Committee. The manner in which
the evaluation has been carried out has been explained in the Corporate
Governance Report.
19. Board Meeting
During the year 37 meetings were convened and held. The details of the
same are given in the Corporate Governance Report. The intervening gap
between the Meetings was within the period prescribed under the
Companies Act, 2013.
20. audit Committee
During the year Audit Committee was re-constituted on October 01, 2014.
As on March 31, 2015 the Committee comprised the following :
Ms. Sudha Gupta - Chairperson
Mr. Rameshchandra Meghraj Purohit - Member
Mr. Jayesh Nemichand Mehta - Member
21. Establishment of Vigil Mechanism / whistle blower policy
As per the provisions of Section 177 of the Companies Act, 2013, your
Company has adopted the Vigil Mechanism/ Whistle Blower Policy to
provide appropriate avenues to the employees to bring to the attention
of the management any issues which is perceived to be in violation of
or in conflict with the fundamental business principals of the Company.
The employees are firee to report to the management concerns about
unethical behavior, actual or suspected fraud or violation of the codes
of conduct or corporate governance policy or any improper activity to
the Audit Committee of the Company or Chairman of the Company.
The Whistle Blower Policy has been appropriately communicated within
the Company. The policy empowers the Chairman of the Audit
Committee/Chairman of the Company to investigate any protected
disclosure including matters concerning financials/accounting, etc.
received from the employees under this policy.
22. Nomination and Remuneration policy
The Board has, on the recommendation of the Nomination & Remuneration
Committee formulated the criteria for determining qualifications,
positive attributes and independence of a director and also criteria
for determining the remuneration of Directors, Key Managerial
Personnel's and other Employees.
23. Corporate Social Responsibility Committee
During the year Corporate Social Responsibility Committee was
constituted on October 01, 2014. As on March 31, 2015 the Committee
comprised the following :
Ms. Sudha Gupta - Chairperson
Mr. Shantilal J Mehta - Member
Mr. Jayesh Nemichand Mehta - Member
24. Corporate Social Responsibility
Corporate Social Responsibility (CSR) activities of the Company are
guided by its CSR Policy, which is framed and approved by the Board of
Directors of the Company. The Company undertakes its CSR activities
through Navkar Charitable Trust. Some of the objects of the Navkar
Charitable Trust include eradication of hunger, maintenance of homes
for aged and orphans, promoting healthcare and animal welfare. The
Company contributes to the corpus of Navkar Charitable Trust towards
the above activities.
The statutory disclosure with respect to CSR activities forms part of
this Annual Report and is annexed herewith as Annexure-4.
25. Risk Management policy
As per the requirement of Section 134(3)(n) of the Companies Act, 2013,
every company is required to include a statement indicating development
and implementation of a risk management policy for the Company
including identification therein of the elements of risk, if any, which
in the opinion of the Board may threaten the existence of the Company.
Accordingly, your Company has formulated a Risk Management Policy that
outlines the framework and procedures to assess and mitigate the impact
of risks.
Senior professionals, who are conversant with risk management systems
and procedures have been entrusted with the risk management of the
Company in accordance with the formulated policy.
26. Conservation of Energy, Technology absorption, foreign Exchange
Earnings and Outgo
Conservation of Energy:
Your Company continuously strives to conserve energy, adopt enviornment
friendly practices and employ technology for more effcient operations.
Adequate measures have been implemented to conserve energy.
Technology absorption:
The Company sincerely believes in utilizing technology to improve
productivity, efficiency and quality of its business operations and
working environment. There is major capital expenditure incurred for
development of software's and networking setup for CFS Operations.
foreign Exchange Earnings and Outgo (Value in)
Foreign Exchange Earnings : NIL
Foreign Exchange Outgo : 12,579,502
27. particulars of Employees
There were no employees in receipt of remuneration as specified under
Rule 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014.
28. directors' Responsibility Statement
Pursuant to Section 134(3)(c) of the Companies Act, 2013, your
Directors state that:
(a) in the preparation of the annual accounts for the year ended March
31, 2015, the applicable accounting standards had been followed and
there are no material departures from the same;
(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 as at March 31, 2015 and of the Profit of the Company for
the year ended on that date;
(c) the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(d) 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.
(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.
29. awards and Recognitions
In August 2014, your Company received 'Container Fireight Station of the
Year' award at the Gateway Awards, 2014.
In September 2014, your Company received 'Container Fireight Station
Operator of the Year (Specifc)' for Nhava Sheva by the 5th All India
Maritime and Logistics Awards, 2014.
In February 2015, your Company received the ICC Supply Chain Excellence
Award 2015 in the category of 'CFS Management' from the Indian Chamber
of Commerce.
30. acknowledgement
Your Directors gratefully acknowledge all stakeholders of the Company
viz. customers, dealers, vendors, banks and others. The Directors place
on record their sincere appreciation to all the employees of the
Company for their unstinted commitment and continued contribution to
the Company.
On behalf of the Board of directors
Shantilal J Mehta
Chairman and Managing Director
DIN: 00134162
Date : June 17, 2015
Place : Mumbai