Mar 31, 2018
Dear Shareholders,
The Directors are pleased to present the 8th (Eighth) Annual Report on the business and operations of the Company together with the Audited Financial Statements for the financial year ended 31st March, 2018.
FINANCIAL RESULTS:
(Rs. in Lacs)
Particulars |
2017-18 |
2016-17 |
Total Revenue |
23203.98 |
24647.08 |
Profit Before Tax |
206.09 |
(559.95) |
Less: Provisions for Taxation |
(81.68) |
(24.89) |
Profit After Tax |
124.41 |
(535.06) |
Other Comprehensive Income |
4.02 |
(3.66) |
Total Comprehensive Income for the year |
128.43 |
(538.72) |
Balance brought forward from previous year |
(1334.47) |
(799.41) |
Surplus/ (Deficit) carried to Balance Sheet |
(1210.06) |
(1334.47) |
STATE OF COMPANYâS AFFAIRS AND FUTURE OUTLOOK
Kindly refer to Management Discussion and Analysis Reportâ which forms part of the Annual Report.
CHANGES IN THE NATURE OF BUSINESS, IF ANY
There has been no change in the nature of business of the Company during the year under review.
DIVIDEND
To conserve the resources of the Company for future growth and business diversification, the Board of Directors have not recommended any dividend for the Financial Year 2017-18.
TRANSFER TO RESERVES
During the year under review the Company has not transferred any amount to the General Reserve Account.
CHANGES IN SHARE CAPITAL
The paid-up Equity Share Capital of the Company as on 31st March, 2018 stood at Rs. 655.34 lacs. During the year under review, the Company has not issued any further shares.
DETAILS PERTAINING TO SHARES IN SUSPENSE ACCOUNT
Details of shares held in the demat suspense account as required under Regulation 39(4) read with Para F of Schedule VI of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as âListing Regulationsâ) forms part of the Corporate Governance Report.
OPERATIONS AND BUSINESS PERFORMANCE
The details of operations and business performance of the Company has been elaborated in the âManagement Discussion and Analysis Reportâ, forming part of this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report for the year under review, as stipulated under Regulation 34(2)(e) read with Para B of Schedule V of the Listing Regulations forms part of this Annual Report.
DETAILS UNDER SECTION 67(3) OF THE COMPANIES ACT, 2013 (HEREINAFTER REFERRED TO AS âACTâ) IN RESPECT OF ANY SCHEME OF PROVISIONS OF MONEY FOR PURCHASE OF OWN SHARES BY EMPLOYEES OR BY TRUSTEES FOR THE BENEFIT OF EMPLOYEES
No such instance took place during the year under review.
DETAILS RELATING TO MATERIAL VARIATIONS
The Company has not issued any prospectus or letter of offer during the last five years and as such the requirement for providing the details relating to material variation is not applicable upon the company for the year under review.
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 and commitments affecting the financial position of the Company.
TRANSITION TO INDIAN ACCOUNTING STANDARDS
The Indian Accounting Standard (Ind AS) has been applicable to the Company for the first time during the Financial Year 2017-18 and accordingly, with effect from 1st April 2017, your Company was required to align its accounting policies and disclosures in accordance with the Ind AS. Necessary adjustments in the previous year figures and in the format of presentation in compliance with the requirement of Ind AS have been made in the accounts.
EXTRACT OF ANNUAL RETURN
The extract of Annual Return as on 31st March, 2018 in the prescribed Form MGT-9, pursuant to Section 92(3) of the Act, read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014 forms part of this Directorsâ Report and marked as Annexure- âAâ.
CORPORATE GOVERNANCE REPORT
The Company follows the corporate governance guidelines and best practices sincerely, and discloses timely and accurate information regarding the operations and performance of the Company.
Pursuant to Regulation 34 read with Para C of Schedule V of the Listing Regulations, Report on the Corporate Governance along with a certificate from the Statutory Auditors of the Company confirming compliance with the conditions of the Corporate Governance is annexed as Annexure-âBâ.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The details of number of meetings of Board of Directors held during the year have been provided in the Corporate Governance Report forming part of this Directorsâ Report.
SECRETARIAL STANDARDS
The Institute of Company Secretaries of India has issued Secretarial Standard -1 (SS-1) on âMeeting of the Board of Directorsâ and Secretarial Standard - 2 (SS-2) on âGeneral Meetingâ and both the Secretarial Standards have been approved by the Central Government under section 118(10) of the Companies Act, 2013. Pursuant to the provisions of section 118(10) of the Companies Act, 2013, it is mandatory for the company to observe the secretarial standards with respect to Board Meeting and General Meeting. The Company has adopted and followed the set of principles prescribed in the respective Secretarial Standards for convening and conducting Meetings of Board of Directors, General Meeting and matters related thereto. The Directors have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards and that such systems are adequate and operating effectively.
DIRECTORSâ RESPONSIBILITY STATEMENT
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory, cost auditors, secretarial auditors and the reviews performed by management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the Companyâs Internal Financial Control were adequate and effective during Financial Year 2017-18.
Accordingly, pursuant to Section 134(3)(c) and 134(5) of the Act, the Board of Directors, to the best of its knowledge and ability, confirms that:
a) in the preparation of the annual accounts for the year ended 31st March, 2018, the applicable accounting standards had been followed along with proper explanations relating to material departures, if any;
b) the Directors had adopted such accounting policies and applied them consistently and made judgements and estimates in a reasonable and prudent manner so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year 2017-18 and of the 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 the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) the annual accounts had been prepared 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 were adequate and operating effectively;
f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
STATEMENT ON DECLARATION BY INDEPENDENT DIRECTORS
The Company has appointed Mr Ajay Kumar Chakraborty (DIN: 00133604), Dr Kali Kumar Chaudhuri (DIN:00206157) and Mrs Smita Khaitan (DIN:01116869) as Independent Directors of the Company for a fixed term of 5 (Five) years in the Extraordinary General Meeting of the Company held on 17th November, 2014.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as laid down under Section 149(6) of the Act and Regulation 16 of the Listing Regulations.
DIRECTORS & KEY MANAGERIAL PERSONNEL
In accordance with the provisions of Section 152(6) of the Act and the Article 87 of the Articles of Association of the Company, Mr. Vineet Agrawal (DIN: 00441223) and Mr. Anuradha Agrawal (DIN: 06537905) Directors of the Company, is liable to retire by rotation at the ensuing Annual General Meeting (hereinafter referred to as the âAGMâ) and being eligible offers himself for re-appointment.
During the year under review, Mr. Deepak Chamaria, Chief Financial Officer has resigned from the office with effect from the close of working hours on 31st May, 2017 and Mr. Amit Agrawal was appointed as Chief Financial Officer of the Company with effect from 1st June, 2017.
The brief Resume/Profile of the Directors recommended by the Board for appointment/re-appointment have been provided in the Notice convening the 8th (Eighth) AGM.
STATUTORY AUDITORS & AUDITORSâ REPORT
M/s S. K. Agrawal & Co., Chartered Accountants, (Firm Registration No. 306033E), had been appointed as statutory auditors of the Company at the 4th AGM held on 10th September, 2014, to hold office from the conclusion of 4th AGM until the conclusion of 9th Annual General Meeting, on such remuneration as may be fixed by the Board subject to ratification by the Shareholders in the forthcoming AGM, apart from reimbursement of out-of-pocket expenses as may be incurred by them for the purpose of audit.
The First Proviso of the Section 139(1) of the Companies Act, 2013 has been omitted pursuant to the Companies (Amendment) Act, 2017 and therefore the requirement of placing the matter relating to appointment of auditor for ratification by members at every Annual General Meeting has been done away. As authorized by the shareholders at the 4th AGM, the Board of Directors on the recommendation of the Audit Committee has approved the remuneration payable to M/s. S. K. Agrawal & Co., Chartered Accountants, for the Financial Year 2018-19.
There are no observations (including any qualification, reservation, adverse remarks or disclaimer) of the Auditors in their Audit Report that may call for any explanation from the Directors. The specific notes forming part of the accounts referred to in Auditorâs Report are self explanatory and give complete information.
SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of the Act, and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company had appointed M/s Vinod Kothari & Company, Practising Company Secretaries, to conduct Secretarial Audit of the Company for the Financial Year 2017-18.
SECRETARIAL AUDIT REPORT
The Secretarial Audit Report in Form MR-3 as given by the Secretarial Auditor for the Financial Year ended 31st March, 2018, forms part of the Directors Report and annexed as Annexure- âCâ.
The Secretarial Audit Report confirms that the Company has complied with the provisions of the Act, Rules, Regulations and Guidelines and that there were no deviations or non-compliances.
The Secretarial Auditors Report of the Company, does not contain any observations (including any qualification, reservation, adverse remark or disclaimer) that may call for any explanation from the Directors.
COST AUDITORS
Pursuant to the requirement of Section 148 of the Act, the provisions of cost audit is applicable on your Company for manufacturing items covered under Rule 3 of Companies (Cost Records and Audit) Rules, 2014. The Board of Directors of your Company on the recommendation of Audit Committee has appointed M/s B. Mukhopadhyay & Co., Cost Accountants as Cost Auditors of the Company for the Financial Year 2017-18. As required under the Act, the remuneration payable to the Cost Auditor was ratified by the shareholders in the AGM held on 22nd September, 2017.
The due date for filing the Cost Audit Reports for Financial Year 2017-18 is 27th September, 2018 and the Cost Auditors are expected to file the reports with the Central Government within the said period.
The Board, pursuant to the provisions of Section 148 of the Act, read with Companies (Cost Records & Audit) Rules, 2014 has re-appointed M/s B. Mukhopadhyay & Co, Cost Accountants, B-20, Amarabati, Sodepur, Kolkata- 700 110, as the Cost Auditors of the Company for the Financial Year 2018-19 and accordingly, a resolution for seeking Members ratification for the remuneration payable to the Cost Auditors is included at Item No 6 of the Notice Convening the AGM.
FRAUD REPORTING
There was no fraud reported by the Auditors of the Company under Section 143(12) of the Act, to the Audit Committee or the Board of Directors during the year under review.
DISCLOSURE ON EMPLOYEE STOCK OPTION/ PURCHASE SCHEME
During the year under review, your Company has not provided any employee stock option / purchase scheme.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
The Company has not given any loans, made any investments or given any guarantee as stipulated under the provisions of Section 186 of the Act, during the financial year 2017-18.
PARTICULARS OF CONTRACT OR ARRANGEMENTS WITH RELATED PARTIES
All contracts/arrangements/transactions entered by the Company with related parties for the year under review were on armâs length basis and in the ordinary course of business and were reviewed by the Audit Committee, and that the provisions of Section 188(1) read with the Companies (Meetings of Board and its Powers) Rules, 2014 are not attracted. Further, there are no materially significant related party transactions during the year under review made by the Company which may have a potential conflict with the interest of the Company at large. Since all related party transactions entered into by your Company were in the ordinary course of business and were on an armâs length basis,thus, disclosure in Form AOC-2 is not required.
All Related Party transactions are placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee is obtained for the transactions which are of un-foreseen in nature. The transactions entered into pursuant to the omnibus approval so granted are reviewed by the Audit Committee and a statement giving details of all related party transactions is placed before the Audit Committee and the Board of Directors for their noting on a quarterly basis.
During the year under review, the Company has not entered into any contract/ arrangement/ transaction with related parties which could be considered material in accordance with the Companyâs Policy on Materiality of Related Party Transactions.
The policy on Related Party Transactions as approved by the Board of Directors of the Company may be accessed on the Companyâs website www.manaksia.com and the weblink thereto is http://www.manaksia.com/corp_policy_aluminium.php
PARTICULARS OF LOANS/ADVANCES/INVESTMENTS OUTSTANIDNG DURING THE FINANCIAL YEAR AS REQUIRED UNDER SCHEDULE V OF THE LISITNG REGULATIONS
The details of Related Party disclosures with respect to loans/ advances/ investments at the year end and maximum outstanding amount thereof during the year as required under Part A of Schedule V of the Listing Regulations have been provided in the notes to the Financial Statements of the Company.
DETAILS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The details required pursuant to the provisions of Section 134(3)(m) of the Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014, relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo forms part of this Directors Report and marked as Annexure-âDâ.
RISK MANAGEMENT SYSTEM
Risk Management is the process of identification, assessment and prioritization of risks followed by coordinated efforts to minimize, monitor and mitigate the probability and/or impact of unfortunate events or to maximize the realisation of opportunities.
The Company has structured Risk Management Policy, designed to safeguard the organization from various risks through adequate and timely actions. The Company manages, monitors and reports on its risks and uncertainties that can impact its ability to achieve its objectives. The major risks have been identified by the Company and its mitigation process/measures have been formulated.
AUDIT COMMITTEE
The Company pursuant to the provisions of Section 177 of the Act, read with Regulation 18 of the Listing Regulations, has in place Audit Committee comprising of 4 (Four) members, Mr. Ajay Kumar Chakraborty (DIN: 00133604)- Independent Director (Chairman), Dr. Kali Kumar Chaudhuri (DIN: 00206157)- Independent Director, Mr. Sunil Kumar Agrawal (DIN: 00091784)-Managing Director and Mrs. Smita Khaitan (DIN: 01116869)- Independent Director.
The details of composition, terms of reference and number of meetings held for the Committee is provided in the Corporate Governance Report.
There were no such instances where in the Board had not accepted recommendation of the Audit Committee.
NOMINATION & REMUNERATION COMMITTEE
The Company pursuant to the provisions of Section 178(1) of the Act, read with Regulation 19 of the Listing Regulations has in place the Nomination & Remuneration Committee comprising of 4 (Four) members, Dr Kali Kumar Chaudhuri (DIN: 00206157) - Independent Director (Chairman), Mr. Ajay Kumar Chakraborty (DIN: 00133604) - Independent Director, Mr. Vineet Agrawal (DIN: 00441223)- Non-Executive Director and Mrs. Smita Khaitan (DIN: 01116869)- Independent Director.
The details of composition, terms of reference and number of meetings held for the Committee is provided in the Corporate Governance Report.
The Company pursuant to provisions of section 178 of the Act and Regulation 19 read with Para A of Part D of Schedule II of Listing Regulations, upon recommendation of Nomination & Remuneration Committee has devised a policy on Remuneration of Directors and Key Managerial Personnel and other employees. The said policy forms part of the Directors Report and marked as Annexure âEâ.
STAKEHOLDERS RELATIONSHIP COMMITTEE
As required by the provisions of Section 178(5) of the Act, read with Regulation 20 of the Listing Regulations, the Company has constituted the Stakeholders Relationship Committee comprising of 3 (Three) members, Dr Kali Kumar Chaudhuri (DIN: 00206157) - Independent Director (Chairman), Mr. Sunil Kumar Agrawal (DIN: 00091784)- Managing Director and Mr. Vineet Agrawal (DIN: 00441223) - Non-Executive Director.
The details of composition, terms of reference and number of meetings held for the Committee is provided in the Corporate Governance Report.
CORPORATE SOCIAL RESPONSIBILITY
The provisions of Section 135 of the Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014 are not applicable to your Company.
ANNUAL EVALUATION OF BOARD PERFORMANCE AND PERFORMANCE OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS
Pursuant to the provisions of the Act and Regulation 25 of the Listing Regulations, the Board has carried out an annual evaluation of its own performance, performance of the Directors individually as well as the evaluation of the working of its Committees. Pursuant to the provisions of the Companies Act, 2013 and Regulation 25 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 read with Guidance Note on Board Evaluation of SEBI dated 5th January, 2017, the Nomination & Remuneration Committee has laid down the criteria for performance evaluation, in a structured questionnaire form after taking into consideration various aspects of the Board functioning, composition of the Board and its Committees, culture, execution, diligence, integrity, awareness and performance of specific laws, duties, obligations and governance, on the basis of which, the Board has carried out the annual evaluation of its own performance, the performance of Board Committee and of Directors individually.
As per Para VII of Schedule IV of the Act, the Independent Directors of the Company, without the participation of NonIndependent Directors and members of management, in their separate meeting held on 19th May, 2017 have reviewed the performance of:
- Non-Independent Directors and the Board as a whole;
- the Chairman of the Company taking into account the views of Executive Directors and Non Executive Directors.
- assessed the quality, quantity and timeliness of flow of information between the company management and the board that is necessary for the board to effectively and reasonably perform their duties.
The review of performance of Non-Independent Directors was done after discussing with them on various parameters, such as, skill, competence, experience, degree of engagement, ideas and planning etc. The Board performance was reviewed on various parameters, such as adequacy of the composition of the Board, Board culture, appropriateness of qualification & expertise of Board members, process of identification and appointment of Independent Directors, inter-personal skills, ability to act proactively, managing conflicts, managing crisis situations, diversity in the knowledge and related industry expertise, roles and responsibilities of Board members, appropriate utilization of talents and skills of Board members etc. The evaluation of the Chairman of the Company was conducted on various parameters such as leadership, quality, capability, availability, clarity of understanding, governance & compliance and degree of contribution etc.
The Board of Directors of the Company expressed their satisfaction towards the process of review and evaluation of performance of Board, its Committees and of individual directors.
FAMILIARIZATION PROGRAMME
Familiarization programme undertaken for Independent Directors is provided at the following weblink: http://www.manaksia. com/pdf/Details-of-Familiarisation-Program-imparted-to-IDs-Aluminium.pdf
DEPOSITS
The Company has neither accepted nor renewed any deposits during the year under review in terms of Chapter V of the Act.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS, COURTS AND TRIBUNALS
The Company has not received any significant or material orders passed by any regulatory authority, court or tribunal which may impact its going concern status and Companyâs operations in future.
STATEMENT IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS
The Company has in place adequate internal financial controls with reference to the financial statements. Your 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. To commensurate the internal financial control with its size, scale and complexities of its operations the Company on the recommendation of Audit Committee has appointed M/s S Bhalotia & Associates, Chartered Accountants, as Internal Auditors of the Company.
The Audit Committee reviews the Report submitted by the Internal Auditors. The Audit Committee actively reviews the adequacy and effectiveness of the internal control systems, in this regard, your Board confirms the following:
a. Systems have been laid to ensure that all transactions are executed in accordance with managementâs general and specific authorization. There are well-laid manuals for such general or specific authorization.
b. Systems and procedures exist to ensure that all transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles or any other criteria applicable to such statements, and to maintain accountability for aspects and the timely preparation of reliable financial information.
c. Access to assets is permitted only in accordance with managementâs general and specific authorization. No assets of the Company are allowed to be used for personal purposes, except in accordance with terms of employment or except as specifically permitted.
d. The existing assets of the Company are verified/checked at reasonable intervals and appropriate action is taken with respect to any differences, if any.
e. Proper systems are in place for prevention and detection of frauds and errors and for ensuring adherence to the Companyâs policies.
WHISTLE BLOWER POLICY/ VIGIL MECHANISM
In Compliance with the provisions of section 177(9) of the Act and Listing Regulations, the Company has framed a Whistle Blower Policy to establish a vigil mechanism for Directors and employees to report genuine concerns about actual or suspected unethical behaviour, mal practice, wrongful conduct, discrimination, sexual harassment, fraud, violation of the Company polices including Code of Conduct without fear of reprisal/retaliation. The Whistle Blower Policy/Vigil Mechanism has also been uploaded on Companyâs weblink http://www.manaksia.com/images/pdf/corp-policies/Whistle-Blower-Policy-Aluminium. pdf.
DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
There has been no such case filed/pending during the year under review.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
The disclosure pertaining to remuneration and other details as required under the provisions of Section 197(12) of the Act read with applicable provisions of Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of the Directors Report and marked as Annexure-âFâ.
During the year under review, no employee of the Company drew remuneration in excess of the limits specified under the provisions of section 197(12) of the Act, 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and hence no disclosure is required to be made in the Annual Report.
ACKNOWLEDGEMENT
Your Company continues its relentless focus on strengthening competition in all its businesses. It is the endeavour of your Company to deploy resources in a balanced manner so as to secure the interest of the shareholders in the best possible manner in the short, medium and long terms.
Your Directors convey their grateful appreciation for the valuable patronage and co-operation received and goodwill enjoyed by the Company from its esteemed customers, commercial associates, banks, financial institutions, Central Government, State Government, various Government and Local authorities, other stakeholders and the media.
Your Directors also wish to place on record their deep sense of appreciation to all the employees at all levels for their commendable teamwork, professionalism and enthusiastic contribution towards the working of the Company.
Your Directors look forward to the future with hope and conviction.
For and on behalf of the Board of Directors
Sunil Kumar Agrawal Basudeo Agarwal
Place : Kolkata Managing Director Whole-time Director
Dated: 15th May, 2018 DIN: 00091784 DIN: 00438754
Mar 31, 2015
Dear Shareholders,
The Directors are pleased to present the Fifth Annual Report on the
business and operations of the Company together with the Audited
Financial Statements for the year ended 31st March, 2015.
FINANCIAL RESULTS : (Rs. in Lacs)
Particulars 2014-15 2013-14
Total Revenue 29805.59 17814.93
Profit Before Tax (738.58) 446.95
Less: Provisions for Taxation (114.47) 196.40
Net Profit (624.11) 250.55
Balance brought forward from previous year 248.09 (2.46)
Total Amount available for appropriation (376.02) 248.09
Appropriations:
Dividend on Equity Shares - -
Surplus Carried to Balance Sheet (376.02) 248.09
Total (376.02) 248.09
STATE OF COMPANY'S AFFAIRS AND FUTURE OUTLOOK
The Company was the wholly-owned subsidiary of Manaksia Limited.
Pursuant to Scheme of Arrangement as sanctioned by the Hon'ble Calcuta
High Court the Aluminium undertaking of Manaksia Limited has been
transferred to Manaksia Aluminium Company Limited on a going concern
basis. The Company is currently carrying on the Aluminium business.
Your Company manufactures two major products viz. Aluminium rolled
products in coil and sheet form and Aluminium Alloy Ingots.
We have vertically integrated certain parts of our operations across a
number of products. This has resulted in a reduction in manufacturing
costs, greater control on quality and an expansion in the range of
products.
The Demand for aluminium is estimated to grow at 6%-8% per annum. Also,
demand for the metal is expected to pick up as the scenario improves
for user industries, like power, infrastructure and transportation.
The demand for aluminium has been strong in recent years. However
aluminium industry being cyclical in nature, it could see a downturn in
demand with the recent slowdown being witnessed in Indian and world
economies.
CHANGES IN THE NATURE OF BUSINESS
There has been no change in the nature of business of the Company
during the financial year 2014-15.
DIVIDEND
Since your Company has incurred loss the Board of Directors of your
Company have not recommended any dividend for the financial year
2014-15.
TRANSFER TO RESERVES
During the year under review the Company has not transferred any amount
to the General Reserve Account.
SCHEME OF ARRANGEMENT
The Honbl'e Calcuta High Court vide its Order dated 24th March, 2014
has sanctioned the Scheme of Arrangement under the provisions of
Sections 391-394 of the Companies Act, 1956 for demerger of Aluminium
Undertaking of Manaksia Limited into Manaksia Aluminium Company Limited
on a going Concern basis. The certified copy of the Order sanctioning
the Scheme was received on 19th November, 2014 and the Company has duly
fled the said Order with the Registrar of Companies, West Bengal, on
23rd November, 2014. The Scheme has become effective on and from the
date of fling with the Registrar of Companies. Upon the Scheme being
effective, the Company had made application to National Stock Exchange
of India Limited and BSE Limited for listing of its equity shares.
Accordingly, the shares of the Company got listed on both the Stock
Exchanges on 30th March, 2015.
SHARE CAPITAL
The Company pursuant to the Scheme of Arrangement as sanctioned by the
Hon'ble Calcuta High Court vide its Order dated 24th March, 2014 has
issued and alloted to the shareholder of Manaksia Limited, one share of
Re 1/- each of the Company, for every one share of Rs 2/- each held by
them in Manaksia Limited. The paid-up Equity Share Capital of the
Company as at 31st March, 2015 stood at Rs. 655.34 lacs. During the
year under review, the Company has neither issued shares with
differential voting rights nor has granted any stock options or sweat
equity.
DETAILS PERTAINING TO SHARES IN SUSPENSE ACCOUNT
Details of shares held in the demat suspense account as required under
Clause 5A I and 5A II of the Listing Agreement forms part of the
Corporate Governance Report.
OPERATIONS AND BUSINESS PERFORMANCE
Kindly refer to Management Discussion and Analysis Report, which forms
part of the Annual Report.
MANAGEMENT DISCUSSION ANALYSIS REPORT
Management Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement forms part of this
Annual Report.
DETAILS RELATING TO MATERIAL VARIATIONS
During the year under review, there is no material variations as no
prospectus or letter of offer has been issued.
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 is no such material changes and commitments affecting the
financial position of the Company.
EXTRACT OF ANNUAL RETRUN
The extract of Annual Return as on 31st March, 2015 in the prescribed
Form MGT-9, pursuant to Section 92(3) of the Companies Act, 2013 and
Rule 12(1) of the Companies (Management and Administration) Rules, 2014
forms part of this Directors' Report and marked as Annexure- "A".
CORPORATE GOVERNANCE REPORT
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Report on the Corporate Governance along with a certificate
from the Auditors of the Company confirming compliance with the
conditions of the Corporate Governance is annexed as Annexure-"B".
NUMBER OF MEETINGS OF THE BOARD
The details of numbers of meeting of Board held during the financial
year 2014-15 forms part of the Corporate Governance Report.
DIRECTORS' RESPONSIBILITY STATEMENT
Directors of your Company, hereby confirm, pursuant to the provisions
of Section 134 (3) (c) of the Companies Act, 2013, in respect of
financial year under review:
a) That in the preparation of the annual accounts for the year ended
31st March, 2015, all the applicable accounting standards prescribed by
the Institute of Chartered Accountants of India have been followed
along with proper explanations relating to material departures, if any;
b) That the Directors have adopted such accounting policies and have
applied them consistently and have made judgements and estimates in a
reasonable and prudent manner so as to give a true and fair view of the
state of affairs of the Company as at the end of the financial year
2014-15 and of the loss of the Company for the year ended 31st March,
2015;
c) That 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) That the annual accounts have been prepared on a going concern
basis;
e) That the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively;
f) That the Directors have devised proper systems to ensure compliance
with the provisions of all applicable laws and that such systems are
adequate and operating effectively.
DECLARATION BY INDEPENDENT DIRECTORS
During the year under review, the Company at its Extra-ordinary General
Meeting held on 17th November 2014 appointed Mr. Ajay Kumar
Chakraborty, Mrs. Smita Khaitan and Dr. Kali Kumar Chaudhuri, as
Independent Directors of the Company for a period of 5 (Five) years and
shall hold office upto the conclusion of the Annual General Meeting of
the Company to be held in the calendar year 2019.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
independence as laid down under Section 149(6) of the Companies Act,
2013 and Clause 49 of the Listing Agreement.
DIRECTORS & KEY MANAGERIAL PERSONNEL
In accordance with the provisions of Section 152(6) of the Companies
Act, 2013 and the Articles of Association of the Company, Mr. Mrinal
Kant Pal, Director of the Company, retire by rotation at the ensuing
Annual General Meeting and being eligible offers himself for re-
appointment.
During the year under review, the Company has appointed following
persons as Key Managerial Personnel of the Company:
Sl.
No. Name of the Person Designation
1 Mr. Sunil Kumar Agrawal Managing Director
2 Mr. Vivek Jain Company Secretary
3 Mr. Deepak Chamaria Chief Financial Officer
4 Mr. Vineet Agrawal Whole-Time Director
The Board has changed the terms of appointment of Mr. Sunil Kumar
Agrawal by changing his designation from Non-Executive Director to
Managing Director of the Company in its meeting held on 23rd November,
2014, for a period of 3 years subject to the approval of shareholders
in the ensuing Annual General Meeting of the Company.
Apart from receiving managerial remuneration the Managing Director and
Whole-time Directors of the Company are not entitled to any
remuneration.
The brief Resume/Profile of the Directors recommended by the Board for
appointment/re-appointment forms part of Notice convening the 5th
Annual General Meeting.
STATUTORY AUDITORS & AUDITORS' REPORT
At the 4th Annual General Meeting held on 10th September, 2014 the
members approved appointment of Messers S K Agrawal & Co., Chartered
Accountants, (Registration No. 306033E) to hold office from the
conclusion of the 4th Annual General Meeting until the conclusion of
the 9th Annual General Meeting, (subject to ratification of the
appointment by the members, at every Annual General Meeting held after
the 4th Annual General Meeting) on such remuneration as may be fixed by
the Shareholders, apart from reimbursement of out of pocket expenses as
may be incurred by them for the purpose of audit.
In accordance with Section 139 of the Act, members are requested to
ratify the appointment of the Auditors to hold office from the
conclusion of the 5th Annual General Meeting till the conclusion of the
6th Annual General Meeting.
There are no observations (including any qualification, reservation,
adverse remarks or disclaimer) of the Auditors in their Audit Report
that may call for any explanation from the Directors. The specific
notes forming part of the accounts referred to in Auditor's Report are
self- explanatory and give complete information.
SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Board of Directors of the Company has
appointed Vinod Kothari & Company, Practising Company Secretaries to
conduct Secretarial Audit of the Company for the Financial Year
2014-15.
The Secretarial Audit Report for the Financial Year ended 31st March,
2015, forms part of the Directors Report and annexed as Annexure- "C".
The Secretarial Auditors Report addressed to the shareholders of the
Company, does not contain any qualification.
COST AUDITORS
The provisions of Section 148 of the Companies Act, 2013 and the
relevant rules made thereunder are not applicable to your Company.
FRAUD REPORTING
There was no fraud reported by the Auditors of the Company to the Audit
Committee or the Board of Directors during the year under review.
PARTICUALARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company has not given any loans, made any investments or given any
guarantee as stipulated under the provisions Section 186 of Companies
Act, 2013, during the financial year 2014-15.
PARTICULARS OF CONTRACT OR ARRANGEMENTS WITH RELATED PARTIES
All transactions entered into with Related Parties for the year under
review were on arm's length basis and in the ordinary course of
business and that the provisions of Section 188 read with the Companies
(Meetings of Board and its Powers) Rules, 2014 are not attracted. Thus,
disclosure in Form AOC-2 is not required. Further there are no
materially significant related party transactions during the year under
review made by the Company with Promoters, Directors or Key Managerial
Personnel or other Designated persons which may have a potential
conflict with the interest of the Company at large.
All Related Party Transactions are approved by the Audit Committee
prior to the transaction. Related Party Transactions of repetitive
nature are approved by the Audit Committee on omnibus basis for one
year at a time. All omnibus approvals are reviewed by the Audit
Committee on a quarterly basis.
The policy on Related Party Transactions as approved by the Board of
Directors of the Company may be accessed on the Company's website
www.manaksia.com and the weblink thereto is
htp://www.manaksia.com/corp_policy_aluminium.php.
DETAILS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO
The details required pursuant to the provisions of Section 134(3)(m) of
the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts)
Rules, 2014 relating to Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo forms part of this Directors
Report and marked as Annexure-"D".
RISK MANAGEMENT
Risk Management is the process of identification, assessment and
prioritization of risks followed by coordinated efforts to minimize,
monitor and mitigate the probability and/or impact of unfortunate
events or to maximize the realisation of opportunities.
The Company has structured Risk Management Policy, designed to
safeguard the organization from various risks through adequate and
timely actions. The Company manages monitors and reports on its risks
and uncertainties that can impact its ability to achieve its
objectives. The major risks have been identified by the Company and
its mitigation process/measures have been formulated.
AUDIT COMMITTEE
The Company pursuant to the requirement of the provisions of Section
177 of the Companies Act, 2013 read with the provisions of Clause 49 of
the Listing Agreement has constituted Audit Committee comprising of 4
(Four) Directors, Mr. Ajay Kumar Chakraborty - Independent Director
(Chairman), Dr. Kali Kumar Chaudhuri - Independent Director, Mr. Sunil
Kumar Agrawal - Executive Director and Mrs. Smita Khaitan - Independent
Director. The detailed terms of reference of the Committee is provided
in the Corporate Governance Report. The Board has accepted all the
recommendations made by the Audit Committee.
NOMINATION & REMUNERATION COMMITTEE
As required by the provisions of Section 178(1) of the Companies Act,
2013 read with the provisions of Clause 49 of the Listing Agreement the
Company has constituted the Nomination & Remuneration Committee
comprising of 4 (Four) Directors, Mr. Ajay Kumar Chakraborty -
Independent Director (Chairman), Dr Kali Kumar Chaudhuri - Independent
Director, Mr. Basudeo Agrawal - Non-Executive Director and Mrs. Smita
Khaitan - Independent Director. The detailed terms of reference of the
Committee is provided in the Corporate Governance Report.
The Company pursuant to provisions of Section 178 of the Companies Act,
2013 and Clause 49 of the Listing Agreement and upon recommendation of
Nomination & Remuneration committee has devised a policy on
Remuneration of Directors and Key Managerial Personnel. The said policy
forms part of the Directors Report and marked as Annexure-"E".
The Company got listed on 30th March, 2015 and is in the process of
finalisation of criteria for evaluation of performance of all the
Directors based on the recommendation of Nomination & Remuneration
Committee.
Familiarization programme undertaken for Independent Directors is
provided at the following weblink: htp://www.manaksia.com/
management-team-aluminium-co.php.
STAKEHOLDERS RELATIONSHIP COMMITTEE
As required by the provisions of Section 178(5) of the Companies Act,
2013 read with the provisions of Clause 49 of the Listing Agreement the
Company has constituted the Stakeholders Relationship Committee
comprising of 3 (Three) Directors, Dr Kali Kumar Chaudhuri -
Independent Director, Mr. Sunil Kumar Agrawal - Executive Director and
Mr. Vineet Agrawal - Executive Director. The detailed terms of
reference of the Committee is provided in the Corporate Governance
Report.
CORPORATE SOCIAL RESPONSIBILITY
Your Company got listed at National Stock Exchange of India Limited and
BSE Limited on 30th March, 2015, therefore, provisions of Section 135
read with Companies (Corporate Social Responsibility Policy) Rules,
2014 are not applicable to your Company.
BOARD EVALUATION
Pursuant to requirement of the provisions of Companies Act, 2013 and
Clause 49 of the Listing Agreement, the Company is in the process of
the preparation of criteria for evaluation of the Executive Directors,
Non-Executive Directors, Board as a Whole and the Committees of the
Board, keeping in mind various aspects of the Board functioning,
composition of the Board and its Committees, culture, execution,
diligence, integrity, awareness and performance of specific laws,
duties, obligations and governance.
DEPOSITS
The Company has neither accepted nor renewed any deposits during the
Financial Year 2014-15 in terms of Chapter V of the Companies Act,
2013.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS,
COURTS AND TRIBUNALS
The Company has not received any significant or material orders passed
by any regulatory authority, court or tribunal which shall impact the
going concern status and Company's operations in future.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with
reference to financial statements. To commensurate the internal
financial control with its size, scale and complexities of its
operations the Company on the recommendation of Audit Committee has
appointed M/s Namita Kedia & Associates, Chartered Accountants, as
Internal Auditor of the Company.
The Audit Committee reviews the report submitted by the Internal
Auditors. The Audit Committee of the Board of Directors actively
reviews the adequacy and effectiveness of the internal control systems
with regard to Â
1. Systems have been laid to ensure that all transactions are executed
in accordance with management's general and specific authorization.
There are well-laid manuals for such general or specific authorization.
2. Systems and procedures exist to ensure that all transactions are
recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles or any other
criteria applicable to such statements, and to maintain accountability
for aspects and the timely preparation of reliable financial
information.
3. Access to assets is permitted only in accordance with management's
general and specific authorization. No assets of the Company are
allowed to be used for personal purposes, except in accordance with
terms of employment or except as specifically permitted.
4. The existing assets of the Company are verified/checked at
reasonable intervals and appropriate action is taken with respect to
any differences, if any.
5. Proper systems are in place for prevention and detection of frauds
and errors and for ensuring adherence to the Company's policies.
WHISTLE BLOWER POLICY/ VIGIL MECHANISM
In Compliance with the provisions of Section 177(9) of the Companies
Act, 2013 and Clause 49 of the Listing Agreement, the Company has
framed a Whistle Blower Policy to establish a vigil mechanism for
Directors and employees to report genuine concerns about actual or
suspected unethical behaviour, mal practice, wrongful conduct,
discrimination, sexual harassment, fraud, violation of the Company
polices including Code of Conduct without fear of reprisal/retaliation.
The Whistle Blower Policy/Vigil Mechanism has also been uploaded on
Company's website www.manaksia.com.
DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION & REDRESSAL) ACT 2013
There has been no such case fled/pending during the year under review.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
The disclosure pertaining to remuneration and other details as required
under the provisions of Section 197(12) of the Companies Act, 2013 read
with Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 forms part of the Directors Report
and marked as Annexure-"F".
During the period under review, no employee of the Company drew
remuneration in excess of the limits specified under the provisions of
Section 197(12) of the Companies Act, read with Rules 5(2) and 5(3) of
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 and hence no disclosure is required to be made in the
Annual Report.
CREDIT RATING
The Company was awarded 'A' rating by CARE for its long term loans,
'A1' (A One) rating by CARE for short term loans and commercial paper
and 'A' rating by ICRA for long term loans and A1 (A ONE) rating by
ICRA for short term loans and commercial paper, which represent high
security for timely payment of loans and carrying very low credit risk.
The Company's financial discipline and prudence are reflected from the
good Credit ratings by leading agencies.
ACKNOWLEDGEMENT
Your Company continues its relentless focus on strengthening
competition in all its businesses. It is the endeavour of your Company
to deploy resources in a balanced manner so as to secure the interest
of the shareholders in the best possible manner in the short, medium
and long terms.
Your Directors convey their grateful appreciation for the valuable
patronage and co-operation received and goodwill enjoyed by the Company
from its esteemed customers, commercial associates, banks, financial
institutions, Government Authorities, other stakeholders and the media.
Your Directors also wish to place on record their deep sense of
appreciation to all the employees at all levels for their commendable
team- work, professionalism and enthusiastic contribution towards the
working of the Company during the year under review.
Your Directors look forward to the future with hope and conviction.
For and on behalf of the Board of Directors
Ajay Kumar Chakraborty
Place : Kolkata Chairman
Date : 3rd August, 2015 DIN : 00133604
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