Mar 31, 2018
Dear Shareholders,
The Directors take pleasure in presenting the 23rd Annual Report of the Company together with the Audited Statements of Accounts for the year ended 31st March, 2018.
FINANCIAL HIGHLIGHTS
The Company''s financial performance for the year ended 31st March, 2018 is summarised below:
(Rs. in Lacs)
PARTICULARS |
2017-2018 |
2016-2017 |
|
Revenue From operations |
38,451.31 |
27,947.95 |
|
Other Income |
59.00 |
99.16 |
|
Total Income |
38,510.31 |
28,047.11 |
|
Total Expenditure other than Financial Cost & Depreciation |
37,741.07 |
27,330.03 |
|
Profit before Depreciation, Finance Cost & Tax |
769.24 |
717.08 |
|
Finance costs |
472.95 |
466.31 |
|
Depreciation and amortization expenses |
73.42 |
48.62 |
|
Profit/(loss) before exceptional items and tax |
222.87 |
202.14 |
|
Exceptional Items (Income) / Expense |
â |
â |
|
Profit/ (loss) before tax |
222.87 |
202.14 |
|
a) |
Current Tax |
67.72 |
65.47 |
b) |
Current Tax Expense relating to Prior Year''s |
6.13 |
9.75 |
c) |
Deferred Tax |
16.30 |
3.13 |
Profit/(loss) for the period |
132.72 |
123.71 |
|
Other Comprehensive Income (net of tax) |
2.06 |
1.29 |
|
A. |
(i) Items that will not be reclassified to profit or loss |
â |
â |
(ii) Income tax relating to items that will not be reclassified to profit or loss |
â |
â |
|
B. |
(i) Items that will be reclassified to profit or loss (ii) lncome tax relating to items that will be reclassified to profit or loss |
2.06 |
1.29 |
Total Comprehensive Income for the period Comprising Profit (Loss) and Other comprehensive Income for the period ) |
130.66 |
122.50 |
|
Earning per equity share (of Rs 10/- each) Basic (in Rs.) Diluted (in Rs.) |
0.63 0.63 |
0.59 0.59 |
RESULTS OF OPERATIONS AND STATE OF THE COMPANY''S AFFAIRS:
The Ministry of Corporate Affairs (MCA), vide its notification in its official gazette dated 16th February 2015, notified Indian Accounting Standards (Ind AS) applicable to certain class of Companies. Ind AS has replaced the existing Indian GAAP prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies Accounts Rules, 2014. For your company, Ind AS is applicable from April 1, 2017 with a transition date of April 1, 2016 and IGAAP as its previous GAAP.
- Revenue from operations increased by 37.58% to Rs. 38451.31 Lacs in 2017-18.
- Total Income increased by 37.31% to Rs. 38510.31 Lacs in 2017-18.
- PBT increased by 10.26% to Rs.222.87 Lacs in 2017-2018.
- PAT increased by 7.21 % to Rs. 132.72 Lacs in 2017-2018.
During the current financial year 2017-18, no amount has been appropriated to General Reserve.
The detailed Operational performance of your Company has been comprehensively discussed in the Management Discussion and Analysis Report.
SHARE CAPITAL
During the year under review, there was no change in the share capital structure and the paid up capital of the Company as on 31st March, 2018 was Rs.208,537,500.
DIVIDEND
No dividend was recommended for the current financial year to enable the company to conserve the surplus generated for future business use. There was no unpaid/unclaimed Dividend declared and paid last year and hence the provisions of Section 125 of the Companies Act, 2013 do not apply.
DEPOSITS
During the year under review the Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013, and the rules made thereunder.
FINANCIAL ACCOUNTING
The Financial Statements have been prepared in compliance with Indian Accounting Standards Ind-AS issued by The Institute of Chartered Accountants of India (ICAI) effective from 01, April, 2016 and provisions of Section 133 of the Companies Act, 2013.
These financial statements for the year ended 31 March, 2018 are the Company''s first Ind AS financial statements. The impact of transition has been accounted for in the opening reserves and the comparative period figures have been reinstated accordingly. Further, as per Ministry of Corporate Affairs (MCA) notification, the financial statements have been prepared as per the format prescribed under the Schedule III to the Companies Act, 2013.
LISTING OF SHARES
The Equity Shares of the Company are listed on the Bombay Stock Exchange Limited, Mumbai. During the year the Company migrated from SME Board of BSE to Main Board of BSE, w.e.f 5th June, 2017.
PERFORMANCE EVALUATION
The Company has devised a policy for performance evaluation of the Board, Committees and other Individual Directors (including Independent Directors) which include criteria for performance evaluation of Non-Executive Directors and Executive Directors. The evaluation process interalia considers attendance and participations of Directors in the meetings; commitment (including guidance provided to senior management outside of Board/ committee meetings); Effective deployment of qualification, knowledge and expertise; effective management of relationship with stakeholders; Integrity and maintaining of confidentiality; Independence of behaviour and judgement and impact and influence.
During the year under review, the Board carried out annual evaluation in accordance with the above said policy and expressed satisfaction on the evaluation process and the performance of all the Directors, the Committees and the Board as a whole.
POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF REMUNERATION AND DISCHARGE OF THEIR DUTIES
The Committee has formulated the Nomination and Remuneration Policy which broadly laid down the various principles of remuneration and covers the procedure for selection, appointment and compensation structure of Board members, Key Managerial Personnel (KMPs) and Senior Management Personnel (SMPs) of the Company. The said Policy forms a part of this Report as. Annexure-A, and the same is also available on the website of the company at www. aanchallispat. com
DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board hereby submit its responsibility Statement: â
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at 31st March, 2018 and of the profit of the company for the year end 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; and
(e) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
(f) your Company has had laid down Internal Financial Controls and that such Internal Financial Controls are adequate and were operating effectively.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology absorption, Foreign exchange Earnings and outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is furnished in Annexure-B as attached hereto and forming part of this report.
CORPORATE GOVERNANCE
Your Company has practised sound Corporate Governance and taken necessary actions at appropriate times for enhancing and meeting stakeholders'' expectations while continuing to comply with mandatory provisions of Corporate Governance. Your Company has complied with the requirements of all applicable regulations read with Schedule-V of SEBI Listing regulations as issued by SEBI and amended from time to time.
A report on Corporate Governance along with certificate from M/s Raj Chandra & Associates, Chartered Accountants, regarding compliance of conditions forms a part of this report and has been annexed as Annexure-C hereto.
CODE OF CONDUCT
The Code of Conduct of Directors, KMP''s and Senior executive of the Company is already in force and the same has been placed on the Company''s website www.aanchalispat.com and the declaration for the affirmation with the same forms a part of this report.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
Your Company do not have any Subsidiaries or Joint Venture or Associate during the year under review.
MANAGEMENT''S DISCUSSION AND ANALYSIS REPORT
As per the terms of Regulation 34(2) read with Schedule V of SEBI Listing Regulations, Management''s Discussion and Analysis Report for the year under review, is presented in a separate section forming part of the Annual Report.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES:
The particulars of employees as required under Section 197 (12) of the Act read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, (as amended) are given in separate annexure attached hereto as Annexure-D and forms a part of this report.
Further stating there were no such employees drawing remuneration in excess of the limits set out in Section 197 (12) of the Companies Act, 2013 read with Rule 5(2) & 5 (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
DIRECTORS
Events Occurring after Balance Sheet Date/Board''s Report
Ms. Preetee Agarwal, Woman Independent Director (DIN: 07344364) resigned from Directorship of the Company w.e.f. closure of business hours on 30th day of May, 2018 due to personal reasons. The Board placed on record its sincere appreciation for the contribution of Ms Preetee Agarwal as Independent Director of the Company during her directorship and also for her significant contributions made to the management of affairs of the Company and her valuable advises made to the Board from time to time.
Director retiring by Rotation
In accordance with the provisions of Section 152 of the Companies Act, 2013 and Articles of Association of the Company, Mr. Manoj Goel (DIN: 00554986) retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. The Board of Directors on recommendation of Nomination & Remuneration Committee has recommended for the approval of appointment/ re-appointment of the aforesaid Directors at the ensuing Annual General Meeting.
The brief details of the Directors to be appointed/re-appointed as required under Regulation 36 of the SEBI Listing Regulation are given in the Notice convening the ensuing Annual General Meeting.
KEY MANAGERIAL PERSONNEL
The Following director/officials of the Company have been designated as Key Managerial Personnels (KMP''s) of the Company by the Board of Directors in terms of provisions of Section 203 of the Companies Act, 2013 and the Regulations:
1. Mr. Mukesh Goel, Managing Director;
2. Mr. A.S Nageswar Rao, Chief Financial Officer;
3. Ms. Neha Sharma, Company Secretary & Compliance Officer.
During the Financial year 2017-2018, Ms. Priyanka Bhauwala, Company Secretary & Compliance Officer. resigned from her office w.e.f. close of business hours of 14th day of November, 2017.
Ms. Neha Sharma was appointed as the Company Secretary & Compliance Officer of the Company at the Board Meeting held on 14th of February, 2018.
DECLARATION FROM INDEPENDENT DIRECTORS
The terms & condition for appointment of Independent Directors are as per the provisions of Section 149 & Schedule IV of the Companies Act, 2013. The Company has received declarations from all Independent Directors confirming that they meet the criteria of Independence as laid down under Section 149(6) of the Companies Act, 2013 and the SEBI Listing Regulations and there has been no change in the circumstances which may affect their status as Independent directors during the year.
AUDITORS & AUDITORS'' REPORT
Statutory Auditors
M/s Raj Chandra & Associates, Chartered Accountants (Firm Registration No. 326312E) were appointed as Statutory Auditors of the Company for a term of five years at the 21st Annual General Meeting held on 28th September, 2016. They have confirmed that they are not disqualified from continuing as Auditors of the Company.
The notes on financial statement 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.
Their continuance of appointment or otherwise and payment of remuneration are to be confirmed and approved in the ensuing Annual General Meeting.
Cost Auditor
The Board had appointed M/s A.S & Associates, Cost Accountants (Firm Registration no. 000523) as the Cost Auditors of the Company for conducting the audit of cost records of products of the Company for the F.Y 2017-2018.
Secretarial Auditor
In terms of Section 204(1) of the Companies Act, 2013, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has engaged Ms. Manisha Saraf, Company Secretary in whole time practice (Membership No. FCS-7607, Certificate of Practice No.-8207) as the Secretarial Auditor of the Company for the Financial Year 2017-2018 to conduct the Secretarial Audit.
The Secretarial Audit Report for the financial year ended 31st March, 2018 has been annexed as Annexure- E and forms a part of this annual report.
The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.
CONTRACTS OR ARRANGEMENT WITH RELATED PARTY
All contracts /arrangement /transaction with related parties entered by the Company during financial year under review were on arm''s length basis and were in the ordinary course of business.
During the year, the Company had not entered contracts /arrangement /transaction with related parties which could be considered material as per the explanation provided under Regulation 23(1) of SEBI Listing Regulations.
The policy on dealing with Related Party Transactions as approved by the Board may be assessed on the Company''s Website at www.aanchalispat.com .
There were no materially significant related party transactions which could have potential conflict with the interest of the Company at large.
Members may refer to Note 30 to the standalone financial statements which set out related party disclosures pursuant to Ind AS.
NUMBER OF MEETINGS OF THE BOARD
The Board of Directors met 5 times during the year, detailed information about dates of meetings and attendance of Directors thereat is given in the Corporate Governance Report annexed to this report. The intervening gap between any two meetings was not more than one hundred twenty days as mandated under the provisions of Section 173 of the Companies Act, 2013and Regulation 17(2) of the SEBI Listing Regulations.
AUDIT COMMITTEE
The Audit Committee comprises of Mr. Sudhir Kumar Budhia, Mr. Mukesh Agarwal & Mr. Manoj Goel.
During the year, Ms. Preetee Agarwal (the erstwhile member of Committee) was inducted in the committee as a member at the Board meeting dated May, 29, 2017, and accordingly the Audit Committee had been reconstituted and later on ceased to be a member of the Committee due to her resignation with effect from May, 30, 2018.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013
During the period under review, the Company has not made any loan, guarantee or investment in terms of provisions of Section 186 of the Companies Act, 2013.
SECRETARIAL STANDARDS
The directors state that applicable Secretarial Standards, i.e. SS-1 & SS-2, relating to ''Meeting of the Board of Directors'' and ''General Meeting'' respectively have been duly followed by the Company.
MATERIAL CHANGES AFFECTING THE COMPANY
There are no material changes and commitments affecting the financial position of the Company between the end of the financial year and the date of this report. There has been no change in the nature of business of the Company.
RISK MANAGEMENT POLICY
The risk management strategy of your Company is based on a clear understanding of various risks, and adherence to well-laid out risk policies and procedures that are benchmarked with industry best practices. The Company has developed robust systems and embraced adequate practices for identifying, measuring and mitigating various risks - business, strategic, operational, market, credit, liquidity, reputational and process risks - and ensuring that they are maintained within pre-defined risk appetite levels.
EXTRACT OF THE ANNUAL RETURN
In terms of provisions of Section 92(3) of the Companies Act, 2013 and Rule 12 of the Companies (Management & Administration) Rules, 2014, a copy of the Annual return as prescribed under Section 92 of the Companies Act, 2013 forms a part of this report and is annexed as Annexure-F and the same can also be assessed at the website of the Company at www. aanchalispat. com.
DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The Company has not developed and implemented any Corporate Social Responsibility initiatives as the provisions of section 135 of the Companies Act, 2013 along with Companies (Corporate Social Responsibility Policy) Rules, 2014 are not applicable.
VIGIL MECHANSIM
The Company has established a robust vigil mechanism and whistle blower policy through the audit committee to mitigate the genuine concerns expressed by the employees and other Directors. The Company has also provided adequate safeguards against victimization of employees and Directors who express their concerns. The Company has also provided direct access to the chairman of the Audit Committee on reporting issues concerning the interests of employees and the Company.
Protected disclosures can be made by a whistle blower through an e-mail, or dedicated telephone line or a letter to the ethics officer or to the Chairman of the Audit Committee. The Policy on vigil mechanism and whistle blower policy may be accessed on the Company''s website at the link www. aanchalispat. com.
INTERNAL FINANCIAL CONTROLS
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Assurance on the effectiveness of internal financial controls is obtained through management reviews, control self-assessment, continuous monitoring by functional expert as well as testing of the internal financial control systems by the internal auditors during their course of their audit. We believe that these systems provide reasonable assurance that our internal financial controls are designed effectively and are operating as intended.
CREDIT RATING
During the Financial year 2017-2018, Company has been reaffirmed at BWR BB (pronounced as BWR Double B Plus) for Long term Tenure and at BWR A4 (Pronounced as BWR A Four Plus) for short term tenure. The said reaffirmation in rating is based on the operational and financial performance of the Company.
INSURANCE
The Company has taken appropriate insurance for all assets against foreseeable perils.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has constituted an Internal Compliant Committee under Section 4 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, which is responsible for redressal of complaints relating to sexual harassment at work place. During the year no complaint was filed before the said Committee.
COURT/TRIBUNAL ORDERS
There were no instances of any significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company''s operations in future.
ACKNOWLEDGEMENT
The Board of Directors thank the shareholders for their continued support and they would like to place on record their appreciation for the dedicated services rendered by the Employees at all levels.
We thank our customers, vendors, dealers, investors, business associates and bankers for their continued support during the year.
We place on record our appreciation of the contribution made by the employees at all levels. Our resilience to meet challenges was made possible by their hard work, solidarity, co-operation and support.
For and on Behalf of the Board of Directors
Sd/-
(Mukesh Goel)
Date: 30th May, 2018 Managing Director
Place: Howrah (DIN:00555061)
Mar 31, 2015
Dear Members,
The Directors have pleasure in submitting their 20th Annual Report of
the Company together with the Audited Statements of Accounts for the
year ended 3st March, 2015
1. FINANCIAL RESULTS
the Company's financial performance for the year ended 31st march, 2015
is summarised below:
Financial Summary or performance of the company:
YEAR ENDED YEAR ENDED
PARTICULARS 31.03.2015 31.03.2014
Net Sales/Income from
Business Operations 19067,53,739.00 19037,71,810.29
Other Income 6,06,535.62 17,77,680.54
Total Income 19073,60,274.62 19055,49,490.83
Less Interest 370,04,580.29 386,02,306.71
Profit before Depreciation 12971401.97 16410545.94
Less Depreciation. 63,86,003.74 45,50,125.38
Profit after depreciation
and Interest 65,85,398.23 118,60,420.56
Less Current Income Tax 32,85,655.02 41,87,930.00
Less Previous year
adjustment of Income Tax , - -
Less Deferred Tax (5,58,340.21) (10,581.82)
Net Profit after Tax 38,58,083.42 76,33,072.38
Dividend (including Interim
if any and final) - -
Net Profit after dividend
and Tax 38,58,083.42 76,83,072.38
Amount transferred to
General Reserve - -
Balance carried to
Balance Sheet 38,58/183.42 76,83,072.38
Earnings per share (Basic) 0.19 1.79
Earnings per Share (Diluted) 0.19 1.79
2. DIVIDEND
No Dividend was declared for the current financial year due to
conservation of Profits.
3. APPROPRIATIONS
During the financial year 2014-15, no amount has been appropriated to
General Reserve.
4. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCTION AND PROTECTION
FUND
There was no unpaid/tmclaimed Dividend declared and paid last year and
hence the provisions of Section,
125 of the Companies Act, 2013 do not apply for the year under review.
5. MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT
Management's Discussion and Analysis Report for the year under review,
as stipulated under Clause 52 of the
BSE SME Listing Agreement, is presented in a separate section forming
part of the Annual Report.
6. SHARES
A. INITIAL PUBLIC OFFER
The company has issued 80,04,000 equity shares of face value of Rs. 10
each ("equity shares") for cash at a price band of Rs. 20 per equity
share which includes a share premium of Rs. 10 per equity share
aggregating to Rs. 1,600.80 lacs in accordance with the provisions of
Section 62(1)(c) and all other applicable provisions, if any, of the
Companies Act, 2013 (the "Companies Act"), the provisions of the
Securities and Exchange Board of Lidia (Issue of Capital and Disclosure
Requirements) Regulations, 2009, as amended from time to time (the
"ICDR Regulations"), the listing agreements entered into by the Company
with SME platform of BSE Limited.
B. BONUS SHARES
The Company lias issued 85,66,500 shares of Rs 8,56,65,000/- as Bonus
Shares to the existing shareholders of the Company in the proportion of
2 share for every 1 share held in accordance with the provisions of
Section 63 of the Companies Act, 2013 read with Rule 14 of the
Companies(Share Capital and Debentures), Rules 2014.
C. SWEAT EQUITY
The Company has not issued any Sweat Equity Shares during The year
under review,
D .EMPLOYEES STOCK OPTION PLAN
The Company has not provided any Stock Option Scheme to the employees.
E BUY BACK OF SECURITIES
The Company has not bought back any of its securities during the year
under review.
7. DEPOSITS
The Company has neither accepted nor renewed any deposits during The
year under review,
8. REVIEW OF BUSINESS OPERATIONS AND FUTURE PROSPECTS
Your Directors wish to present The details of Business operations done
during the year under review:
A. Production and Profitability
Our company has achieved a PAT margin of 0.20% in the current year as
against PAT margin of 0.40% in the previous year. There has been a
decline in the profitability of the company due to the one-time
expenses incurred by the company in The previous year related to Lutial
Public Offer of its equity shares and secondly for the change in
Depreciation method of calculation as per the Companies Act, 2013.
B. Sales
Our Company's sales stood at Rs. 1,90,67,53,739.00 as compared to Rs.
1,90,37,71,810.29 in The previous year, registering an increase in the
top line of the company.
C. Marketing and Market environment.
Iron & Steel industry is the foundation industry of any economy,
especially in developing countries whose material intensity is likely
to increase significantly in the future, for infrastructure development
and growth in manufacturing sector. India certainly is one such economy
diat is poised to grow significantly over the next decade with its per
capita consumption nearly at one-fourth of the global average. A
competitive and efficient domestic steel industry is a pre-requisite for
Lidia to succeed in its industrial vision for 'Make in Lidia'.
Lwestments in the steel sector are highly capital intensive and long
term in nature, whose economic viability is dependent on the fundamental
growth assumptions of the domestic economy, The Government of Lidia aims
to triple the steel capacity to 300 million tonnes by 2025. In order to
ensure that such capacity is viable to set up and value creating for the
stakeholders, it is important to ensure that the ease of doing business
is enhanced and the Indian steel industry is not unfairly harmed by low
priced subsidised imports from overseas. However, in the month of August
2015, the import duty on Steel (Long Products) is increased by 2.5%.
D. Future Prospects including constraints affecting due to Government
policies.
The future of the Indian iron and steel sector looks promising as there
is enormous scope for increasing consumption of iron. & steel in almost
all sectors in India. There is an untapped potential of increasing
steel consumption in Indian even, to reach the comparable developing
and lately developed economies like China and other Europe, a quantum
jump in steel consumption will be required. India has rich mineral
resources. It has abundance of iron ore, coal and many other raw
materials required for iron and steel making.
Unexplored Rural Market - The Indian rural sector remains fairly
unexposed to their multi-faceted use of steel. Enhancing applications
in rural areas assumes a much greater significance now for increasing
per capital consumption of steel. The usage of steel in cost effective
manner is possible in the area of housing, fencing, structures and
other possible applications where steel can substitute other materials
which not only could bring about advantages to users but is also
desirable for conservation of forest resources.
Export Market Penetration - It is estimated that world steel
consumption will double in next 25 years, Quality improvement of Indian
steel combined with its low cost advantages will definitely help in
substantial gain in export.
9. MATERIAL CHANGES AND COMMITMENT IF ANY .AFFECTING THE FINANCIAL
POSITION OF THE COMPANY OCCURRED BETWEEN THE ENDS OF THE FINANCIAL YEAR
TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT.
No material changes and commitments affecting the financial position of
the Company occurred between the ends of the financial year to which
this financial statement relate oil the date of this report,
10. INTERNAL FINANCIAL CONTROLS
Aanchal Ispat Limited has an adequate system of internal control,
commensurate with the size and nature of its business to ensure that
the resources of the Company are used efficiently and effectively, all
assets are safeguarded and protected against loss from unauthorised use
or disposition whatsoever and the transactions are authorised, recorded
and reported correctly, financial and other data are reliable for
preparing financial information and other data and for maintaining
accountability of assets. The internal control is supplemented by
extensive programme of internal audits, review by management,
documented policies, guidelines and procedures. The Audit Committee of
the "Board continuously review's the significant observations, if any,
of the internal and Statutory Auditors on financials,
11. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
The Company does not have any Subsidiary, Joint venture or Associate
Company.
12. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology
absorption, Foreign exchange Earnings and outgo as required under
Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of
the Companies (Accounts) Rules, 2014 is furnished in Annexure I and is
attached to this report.
13. DIRECTORS
In accordance with the provisions of the Act and the Articles of
Association of the Company, Mr. Manoj Goel, Director of the Company,
retire by rotation at the ensuing Annual General Meeting and being
eligible have offered themselves for re-appointment.
During the year under review, the members approved the appointments of
Mr. Sudhir Kumar Budhia (DEM: 02869779) and Mr. Mukesh Agarwal (DEM:
06954595) as Independent Directors on 30th day of July, 2014 and lst
day of September, 2014 respectively who are not liable to retire by
rotation. The members have also re-appointed Mr. Mukesh Goel as the
Managing Director on 12th day of August, 2014 for a term of 5 years and
Mr. Manoj Goel was redesignated as the non-executive director w.e.f 3ld
day of September, 2014.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
independence as prescribed both under the Act and Clause 52 of BSE SME
Listed Companies.
14. MEETINGS OP BOARD OF DIRECTORS
During the financial year ended 31st March, 2015, Ten Board Meetings
were held, details of which are given, in the Corporate Governance
Report. The intervening gap between the Meetings was within the period
prescribed under the Companies Ac t, 2013,
15. AUDIT COMMITTEE
During the period under review, the Board of Directors of your Company
constituted a Audit Committee in accordance with The provisions of
Section 177 of the Companies Act, 2013 read with Rule 6 and 7 of the
Companies (Meetings of the Board and its Powers) Rules, 2013.
The Audit Committee consists of the following member's:
Name of the members Category Position Held
Mr. Sudhir Kumar Non -Executive Chairman of the Audit
Budhia Independent Director Committee
Mr. Mukesh Agarwal Non -Executive Member
Independent Director
Mr. Manoj Goel Non- Executive Director Member
The above composition of the Audit Committee consists of independent
Directors viz., Mr Sudhir Kumar Budhia and Mr Mukesh Agarwal, who form
the majority. All the recommendations made by the Audit Committee were
accepted by the Board.
16. VIGIL MECHANSIM
The Company has established a vigil mechanism policy through the audit
committee, the genuine concerns expressed by the employees and other
Directors. The Company has also provided adequate safeguards against
victimization of employees and Directors who express their concerns,
The Company has also provided direct access to the chairman of the
Audit Committee on reporting issues concerning the interests of co
employees and the Company. The Policy on vigil mechanism and whistle
blower policy may be accessed on the Company's website at the link:
http:// aanchalispat.com/policies.html.
17. NOMINATION AND REMUNERATION COMMITTEE
During the year under review, the Board of Directors of your Company
constituted a Nomination and Remuneration Committee in accordance with
the provisions of Section 178 of the Companies Act, 2013 and Companies
(Meetings of Board and its Powers) Rules, 2014 and Clause 52 of the BSE
SME Listing Agreement. The composition of the committee is as under:
Name of the members Category Position Held
Mr. Mukesh Agarwal Non -Executive Chairman
Independent Director
Mr. Sudhir Kumar Non -Executive Member
Budhia Independent Director
Mr. Manoj Goel Non- Executive Director Member
COMPANY'S POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF
REMUNERATION AND DISCHARGE OE THEIR DUTIES
e Committee has formulated the Nomination and Remuneration Policy which
broadly laid down the various principles of remuneration and covers the
procedure for selection, appointment and compensation structure of
Board members, Key Managerial Personnel (KMPs) and Senior Management
Personnel (SMPs) of your Company. The said Policy is available on your
Company s website at the link http://aanchalispat. cam/policies.html
I8. PERFORMANCE EVALUATION
the Nomination and Remuneration Committee (NRC) of your Company has
formulated and laid down criteria for Performance Evaluation of the
Board (including Committees) and every Director (including Independent
Directors) pursuant to provisions of Section 134, Section 149 read with
Code of Independent Directors (Schedule IV) and Section 178 of the
Companies Act, 2013 and the Clause 52 of the SME Listing Agreement
covering inter-alia the following parameters namely;
i) Board Evaluation
ii) Board Committee Evaluation
iii) Individual Director Evaluation
Based on these criteria, the performance of the Board, various Board
Committees via. Audit Committee, Stakeholders' Relationship Committee,
Nomination and Remuneration Committee and Corporate Social
Responsibility Committee, and Individual Directors (including
Independent Directors) was evaluated to be satisfactory.
During the year under review, the Independent Directors of your Company
reviewed the performance of Non- Independent Directors and Chairperson
of your Company, taking into account the views of Executive Directors
and Non-Executive Directors.
19. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES:
Li terms of the provisions of Section 197(12) of the Act read with
Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, tiiere were no such employees
drawing remuneration in excess of the limits set out in the said rules,
in terms of Section 136 of the Act, the Report and Accounts are being
sent to the Members and others entitled thereto, excluding the
information on employees' particulars which is available for inspection
by the Members at the Registered Office of the Company during business
hours on working days of the Company up to the date of the ensuing
Annual General Meeting, If any Member is interested in obtaining a copy
thereof, such Member may write to the Company Secretary7 in this
regard.
the Nomination and Remuneration Committee has affirmed that the
remuneration is as per remuneration policy of the Company.
20. KEY MANAGERIAL PERSONNEL (KMPs)
Pursuant to the resolution of the Board of Directors passed at its
meeting held on Sep 01, 2014 and Sep 06, 2014 the following executives
of the Company are whole-time Key Managerial Persons (KMPs) as on March
31, 2015 in accordance with the provisions of Section 203 of the
Companies Act, 2013.
Name Designation Effective Date
Ms. Babita Kaur Baesa Company Secretary 06.09.2014
Mr. Ritesh Shaw Chief Financial Officer
21. RISK MANAGEMENT POLICY
the process of Risk Management in the Company identifies inherent risks
in its operations and records residual risk after taking specific risk
mitigation steps, The Company has identified and categorized risks in
the area of Operations, Finance and Marketing, Regulatory Compliances
and Corporate matters. Wherever possible and necessary, appropriate
insurance cover is taken for financial risk mitigation.
On the Financial front, the Company has not borrowed any amount in
foreign currency however the foreign exchange fluctuation may affec t
the prices of raw material and other- allied inputs, but at present the
Company is not importing its Raw Material or other allied inputs. Such
Raw Materials and other allied inputs are abundantly available in tire
domestic market. Credit Policy of the Company is primarily based cut
the customer profile. The Management does not perceive any major
technological, environmental and/or financial risks for the Company in
the near future.
22. POLICY ON SEXUAL HARRASEMENT
Your Company is committed to provide and promote a safe, healthy and
congenial atmosphere irrespective of gender, caste, creed or social
class of the employees. Your Company in its endeavour to provide a safe
and healthy work environment for all its employees has developed a
policy to ensure zero tolerance towards verbal, physical, psychological
conduct of a sexual nature by any employee or stakeholder that directly
or indirectly harasses, disrupts or interferes with another's work
performance or creates an intimidating, offensive or hostile
environment such that each employee can realise his / her maximum
potential. Your Company has put in place a 'Policy on Prevention of
Sexual Harassment' as per- The Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013, The company
maintains ait open door for reportees; encourages employees to report
any harassment concerns and is responsive to employee complaints about
harassment or other unwelcome and offensive conduct. Our board lias
been empowered to enquire into complaints and to recommend appropriate
action, wherever required.
23. DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
the Company has not developed and implemented any Corporate Social
Responsibility initiatives as the provisions of section 135 of the
Companies Act, 2013 along with Companies (Corporate Social
Responsibility Policy} Rules, 2014 are not applicable.
24. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION
186 OF THE COMPANIES ACT, 2013
There were no loans, guarantees or investments made by the Company
under Section 186 of the Companies Act, 2013 during the year under
review and hence there are no disclosures,
25. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES
All the related party transactions of your Company are entered on arm's
length basis and are in compliance with the applicable provisions of
the Companies Act, 2013 and the Listing Agreement. There are no
materially significant transactions made by the Company with Promoters,
Directors or Key Managerial Personnel (KMPs) which have potential
conflict with the interest of your- Company at large . Members may
refer to the notes to the financial statements for details of related
party transactions. Since all related party transactions entered into
by your Company were in the ordinary course of business and were an an
arm's length basis, Form AOC-2 is not applicable to your Company.
26. ANNUAL RETURN
the extracts of Annual Return pursuant to the provisions of Section 92
read with Rule 12 of the Companies (Management and administration)
Rules, 2014 is furnished in Aimexuie II and is attached to this Report,
27. STATUTORY AUDITORS
M/s R.Modi & Co, Chartered Accountants were appointed as Statutory
Auditors for a period of 1 year in the Annual General Meeting held on
25/09/2014.
AUDIT QUALIFICATIONS
There were no qualifications, reservations or adverse remarks made by
the Auditors for the year under review.
28. SECRETARIAL AUDIT REPORT
Your Company appointed Ms. Manisha Saraf, member of The Institute of
Company Secretaries of India (Membership No. FCS 7607 Certificate of
Practice No. 8207 as the Secretarial Auditor of your Company for FY
2014-15 to conduct the Secretarial Audit pursuant to Section 204 of the
Companies Act, 2013 read with the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.
There were no qualifications, reservations or adverse remarks made by
the Practicing Company Secretary in. Secretarial Audit Report MR 3
except as mentioned below:
The Company has not appointed Woman Director as required under section
149 (1) of the Companies Act, 2013 read with rules 3 of Companies
(Appointment and Qualification) Rules, 2014 and clause 49(ii)(A)(l) of
the Listing Agreement.
The Secretarial Audit Report for the Financial Year 2014-15 forms a
part of the Annual Report.
29. CORPORATE GOVERNANCE
A separate section on Corporate Governance and a Certificate from the
Auditors of your Company regarding compliance with the requirements of
Corporate Governance as stipulated under Clause 52 of the SME Equity
Listing Agreement with the Stock Exchanges (revised effective October
01, 2014 vide SEBI Circular nos, IR/ CFD/POLICY/ CELL/2/2014 dated
April 17, 2014 and OR/CFD/POLICY/CELL/7/2014 dated September 15, 2014),
forms part of the Annual Report.
30. DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 134(5) of the Companies
Act, 2013 the Board hereby submit its responsibility Statement: Â
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(b) the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year and of the profit and
loss of the company for that period;
(c) the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern
basis; and
(e) the directors, in the case of a listed company, had laid down
internal financial controls to he followed by the company and that such
internal financial controls are adequate and were operating
effectively. Internal financial control means the policies and
procedures adopted by the Company for ensuring the orderly and
efficient conduct of its business including adherence to Company's
policies, the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the accounting
records and the timely preparation of reliable financial information.
(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.
31. ACKNOWLEDGEMENT
Your Directors place on record their sincere thanks to bankers,
business associates, consultants, and various Government Authorities
for their continued support extended to your Companies activities
during the year under review, Your Directors also acknowledges
gratefully the shareholders for their support and confidence reposed on
your Company.
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS:
Managing Director
Mttkesh Goel
Place:: Kolkata DIN: 00555061
Date:30/05/2015