Directors Report of Mipco Seamless Rings (Gujarat) Ltd.

Mar 31, 2015

Dear Members,

Your Directors have pleasure in presenting their 35th Annual Report and Audited Accounts for the year ended 31st March 2015.

1. FINANCIAL RESULTS:

(Rs. in Lakhs)

Year ended Year ended

31.03.2015 31.03.2014

Revenue from operations 0 0

Other income 0 0

PBDIT (12.29) (7.86)

Interest and finance charges 0 0

Depreciation 0 0

Net profit/(Loss) before tax (3.25) (7.86)

Less: Provision for Tax: 0 0

Net profit/(Loss) after tax (3.25) (7.86)

Add: Balance Brought forward from previous year (1337.44) (1329.58)

Loss carried to Balance Sheet (1343.49) (1337.44)

2. OPERATIONS:

Currently the Company is not carrying its activities. The management of the Company evaluating opportunities available in current market scenario to revive its activities.

3. DIVIDEND:

During the year under review, the Company has not recommended any dividend for financial year 2014-15.

4. PUBLC DEPOSITS:

During the year under review, the Company has not accepted any deposits hence the provisions of Chapter V of the Companies Act, 2013 and The Companies (Acceptance of Deposit) Rules, 2014 are not applicable.

5. SHARE CAPITAL:

During the year under review, there is no change in Authorised and Paid-up share capital of the Company except conversion of 1825 partly paid-up equity shares of Rs. 10/- each into fully paid-up equity shares vide board resolution dated 28th October 2014.

6. PROMOTER OF THE COMPANY:

During the year under review, there is no change in promoters of the Company.

7. DIRECTORS:

During the period under review, Mrs. Sridevi Nadella was appointed as additional Director of the Company with effect from 15th December, 2014 by the Board of Director of the Company under section 161(1) of the Companies Act, 2013 to act as Independent Director of the Company in terms of section 149 of the Companies Act, 2013. Further there were no changes in composition of Board of Directors of the Company. The Board consists of Executive and Non-executive Directors including Independent Director as per section 149 of the Companies Act, 2013 and rules made thereunder read with Clause 49 of the Listing Agreement.

The Board proposed the appointment of Mr. Sanjiv Kumar Tandon, who retires on rotation, as a Director of the Company and Mr. Sachendra Tummala as Managing Directors of the Company in terms of section 197, 198 and 203 of the Companies Act, 2013 and rules made thereunder.

The number and details of the meetings of the Board and other Committees are furnished in the Corporate Governance Report.

The Independent Directors have furnished declaration of independence under Section 149 of the Companies Act 2013.

Familiarization Programme for Independent Directors

The Company familiarizes its Independent Directors with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company, etc. through various programmes on a continuing basis. The Familiarisation programme for Independent Directors is disclosed on the Company's website.

Separate Meeting of Independent Directors

A separate meeting of Independent Directors of the Company was held on 31st March,2015 as required under Schedule IV to the Companies Act, 2013 (Code for Independent Directors) and Clause 49 of the Listing Agreement. At the Meeting, the Independent Directors:

* Reviewed the performance of Non-Independent Directors and the Board as a whole;

* Reviewed the performance of the Chairman of the Company, taking into account the views of Executive Director and Non-Executive Directors;

All the Independent Directors attended the Meeting of Independent Directors and Mr. Ravi Kumar Chennupati was the Lead Independent Director of that Meeting.

Board & Directors' Evaluation

Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Board, its Committees and the Directors have carried out annual evaluation / annual performance evaluation, covering various aspects of the Board's functioning such as adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance. The Directors expressed their satisfaction with the evaluation process.

Directors' Appointment and Remuneration Policy

The Nomination and Remuneration Committee is responsible for developing competency requirements for the Board based on the industry and strategy of the Company and formulates the criteria for determining qualifications, positive attributes and independence of Directors in terms of provisions of Section 178 (3) of the Act and Clause 49 of the Listing Agreement. The Board has, on the recommendations of the Nomination & Remuneration Committee framed a policy for remuneration of the Directors and Key Managerial Personnel.

9. PARTICULARS OF EMPLOYEES AND REMUNERATION

The information required under Section 197 (12) of the Act read with Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is NIL

10. AUDITOR'S AND AUDITOR'S REPORT:

M/s. Ganesh Venkat & Co., Chartered Accountants (Registration No. 005293S; M.No. 025104), Hyderabad, Statutory Auditors of the Company, who was appointed as Statutory Auditors of the Company by shareholders of the Company vide resolution dated 29.09.2014 until the conclusion of Annual General Meeting for the financial year ended 31st March, 2017 subject to ratification by the members at every Annual General Meeting. The Company has received written consent along with a certificate under 141 of the Companies Act, 2013 expressing their eligibility to be appointed as Statutory Auditors of the Company and in view of the same the Board has proposed a resolution for ratification of Auditors appointment for the financial year 2015-16. Further, comments in their report and notes forming part of financial statements are self explanatory and do not require any comments.

Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. Ajay S Shrivastava, Company Secretary in Practice to undertake the Secretarial Audit of the Company. The Report of the Secretarial Audit Report is annexed herewith as 'Annexure III'.

There was no qualification, reservation or adverse remark in the secretarial audit report.

11. SUBSIDIARY COMPANIES:

The Company does not have any subsidiary/ associate/ Joint venture companies under review. Since the statement in terms of first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014 is not required to be attached.

12. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

As on 31st March, 2015, the company has unsecured loan of Rs. 40.81 Lacs.

13. INTERNAL CONTROL SYSTEMS

Your Company has in place internal and financial control systems commensurate with the size of the Company. The primary objective of our internal control framework is to ensure that internal controls are established, properly documented, maintained and adhered to in each functional department for ensuring orderly and efficient conduct of business which includes proper use and protection of the Company's resources, accuracy in financial reporting, compliance with the statutes, timely feedback on achievement of operational and strategic goals.

14. RESEARCH & DEVELOPMENT:

During the year under review, No R & D activity was undertaken by the Company.

15. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as 'Annexure ' VI.

16. INFORMATION ON STOCK EXCHANGES

The Equity shares of the Company are listed on BSE Limited and the Listing Fee has been paid for FY 2015-16.

17. CORPORATE GOVERNANCE

A detailed report on the subject forms part of this report. The Statutory Auditors of the Company have examined the Company's compliance and have certified the same as required under the SEBI Guidelines. Such certificate is reproduced in this Annual Report.

18. DIRECTORS' RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134 of the Companies Act, 2013:

(a) that in the preparation of the annual accounts/financial statements for the financial year ended 31st March 2015, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;

(b) that the accounting policies as mentioned in the financial statements were selected and applied consistently and reasonable and prudent judgments and estimates were made 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) that proper and sufficient care had been taken 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 were prepared on a going concern basis;

(e) that proper internal financial controls were in place and that such internal financial controls are adequate and were operating effectively; and

(f that proper systems to ensure compliance with the provisions of all applicable laws were in place and that such systems were adequate and operating effectively.

19. CORPORATE SOCIAL RESPONSIBILITY (CSR)

As the Company does not fall under the criteria stipulated for applicability of section 135 of the Companies Act, 2015 the Company has not constituted a Committee of Corporate Social Responsibility and no contributions were made during the year.

20. VIGIL MECHANISM / WHISTLE BLOWER POLICY

In terms of the requirements of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Company has a vigil mechanism to deal with instance of fraud and mismanagement, if any. The details of the vigil mechanism are displayed on the website of the Company. The Audit Committee reviews the functioning of the vigil / whistle blower mechanism from time to time. There were no allegations / disclosures / concerns received during the year under review in terms of the vigil mechanism established by the Company "Annexure IV"

21. RELATED PARTY TRANSACTIONS

During the year under review, the Company has entered into any related party transactions.

* The Company has paid a rent of Rs. 0.24 Lacs to an Associate Company

* During the year the Company has borrowed an Unsecured Loan of Rs. 9.03 Lacs from its KMP

22. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

During the year under review, the Company has received an Adjudicating Order No. ISD/MSRGL/AO/DRK-AKS/EAD3-723/48-2015 dated 30.03.2015 under Section 151 of SEBI Act, 1992 read with 5(1) of SEBI imposing penalty of Rs. 7,00,000/- (Rupees Seven Lakh Only) for violation of disclosure requirement for the financial years 1998 to 2002, 2004 and 2007 i.e. the period prior to the takeover by present Management, under of SEBI , 1999 and same has been deposited to SEBI.

No other orders were received during the year.

23. EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as 'Annexure' VI.

ACKNOWLEDGEMENTS

Your Directors would like to express their appreciation for the assistance and co-operation received from the financial institutions, banks, Government of India and various State Government authorities and agencies, customers, vendors and members during the year under review.

For and on behalf of the Board of Directors Date: 13.08.2015 Place: Hyderabad Sd/- Sachendra Tummala Managing Director

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Mar 31, 2014

Dear Members,

The Directors present their 34th Annual Report for financial year 2013-14. As per Ministry of Corporate Affairs'' General Circular 08/2014 No. 1/19/2013-CL-V dated April 4, 2014, the Financial Statements and other reports required to be attached to the Annual Report for financial year 2013-14 are governed by the relevant provisions, Schedules, Rules of the Companies Act, 1956.

FINANCIAL RESULTS:

(Rs. in Lakhs) Year ended Year ended 31.03.2014 31.03.2013

Revenue from operations 0 0

Other income 0 0

PBDIT (7.86) (9.62)

Interest and finance charges 0 0

Depreciation 0 0

Net profit/(Loss) before tax (7.86) (9.62)

Less: Provision for Tax: 0 0

Net profit/(Loss) after tax (7.86) (9.62)

Add: Balance Brought forward from previous year (1329.58) (1319.96)

Loss carried to Balance Sheet (1337.44) (1329.58)

OPERATIONS:

The Company has closed its manufacturing operations for the last few years. The new management proposes to undertake business in telecom software in near future which is deferred due to ongoing paucity of funds and market conditions in the trade.

DIVIDEND:

Your Directors have not recommended any dividend under review, since the Company has not been carrying any business for last few years.

FIXED DEPOSITS:

During the year under review, the Company has not accepted any deposit under sections 58A and 58AA of the Companies Act, 1956 read with the Companies (Acceptance of Deposits) Rules, 1975.

SHARE CAPITAL:

There is no change in Authorised and Paid-up share capital during the year under review.

DIRECTORS:

During the period no changes were made in constitution of Board of Directors of the Company. The Board consists of Executive and Non-executive Directors including Independent Director as per Clause 49 of the Listing Agreement. The Board has proposed to re-appointment of Mr. Surya Chilukuri and Mr. Sudhir Manubhai Patel, Directors of the Company who retire by rotation. The Board has also proposed to appoint Mr. Ravi Kumar Chennupati as an Independent Director for 5 consecutive years w.e.f the date of Annual General Meeting under the provisions of section 149 of the Companies act, 2013.

SCHEME OF ARRENGEMENT:

As informed earlier the Company was under process of merger with Corpus Software (P) Ltd and the scheme of arrangement was filed before respective Hon''ble High Courts. However in view of SEBI Circular No. CIR/CFD/DIL/5/2013 dated February 04, 2013 read with SEBI Circular No. CIR/CFD/DIL/8/2013 dated May 21, 2013, the Company decided to file Scheme of Arrangement with Securities and Exchange Board of India through Bombay Stock Exchange Limited (BSE), the designated Stock Exchange, in spite of having in-principle approval from BSE, as a matter of abundant caution and good corporate governance practice. However in view of SEBI''s observations, the scheme of arrangement is kept in abeyance.

CORPORATE GOVERNANCE:

Your Company has complied with the requirements of the Code of Corporate Governance in accordance with Clause 49 of the Listing Agreement with Bombay Stock Exchange Limited. A separate report on Corporate Governance along with Auditors'' certificate on its compliance is being attached as annexure - I to this Report along with a report of Management Discussion and Analysis, as prescribed by the Listing Agreement.

DIRECTOR''S RESPONSIBILITY STATEMENT:

Your Directors placed the following responsibility statement as required under the provisions of Section 217(2AA) of the Companies Act, 1956:

1. That the preparation of Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to the material departures.

2. Such accounting policies have been applied consistently and made judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company for the financial year ended 31st March, 2014 and of loss of the Company for that year.

3. Proper and sufficient care has been taken for maintenance of the adequate accounting records in accordance with provisions of this Act for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities;

4. The annual accounts for the financial year ended 31st March, 2014 have been prepared on going concern basis since the Directors are considering and evaluating ways and means to restructure operations by taking into account appropriate business strategies and financial viabilities.

SUBSIDIARY COMPANIES:

The Company does not have any subsidiaries companies under review. Since the statement in terms of section 212 is not required to be attached.

AUDITOR''S AND AUDITOR''S REPORT:

M/s. Ganesh Venkat & Co., Chartered Accountants (ICAI Firm Registration No. 005293S; M.No. 025104), Hyderabad, Statutory Auditors of the Company, retire at ensuing Annual General Meeting and are being eligible have offered themselves for reappointment and the Company has received written consent along with a certificate under 141 of the Companies Act, 2013 expressing their eligibility to be appointed as Statutory Auditors of the Company. Further, comments in their report and notes forming part of financial statements are self explanatory and are not required any comments.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The following information is required to be given under section 217( 1 )(e) of the Companies Act, 1956.

Consumption of Energy and Technology absorption: NIL Foreign Exchange Earnings: NIL Foreign Exchange outgo: NIL

EMPLOYEE''S DETAILS UNDER SECTION 217(2A) OF THE COMPANIES ACT, 1956.

During the financial year none of the employees were paid remuneration of Rs. 60,00,000/- per annum or more and for any part of the year Rs. 5,00,000/- per month or more.

ACKNOWLEDGEMENTS:

Your Directors take this opportunity to thank the customers, shareholders, suppliers, bankers, financial institutions and Central and State Government for their consistent support to the Company.

Place: Hyderabad For and on behalf of the Board Date: 04th August, 2014 Sd/- Sachendra Tummala Managing Director

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Mar 31, 2011

Dear Members,

The Directors present herewith their 31st Annual Report and the Audited Accounts of the Company for the year ended 31st March, 2011.

FINANCIAL RESULTS: Rs. in lacs.

Year ended Year ended 31.03.2011 31.03.2010

Gross Profit/(Loss) before Interest, Depreciation and Tax (4.21) (8.31)

Less: Depreciation - -

Loss for the year (4.21) (8.31)

Extraordinary Items (Net of tax expense Rs.Nil) Interest Remission on one time settlement Sundry Balances of Creditors written off

Less : Provision for Tax: Fringe Benefit Tax Refund - (0.17)

Deferred Tax charge/credit 0.28 -

Add: Balance Brought forward from previous year (1307.60) (1299.46)

Loss carried to Balance Sheet (1312.09) (1307.60)

OPERATIONS:

The Company has closed its manufacturing operations for the last three years. It does not have any other business activity.

DIVIDEND:

In view of the loss, your Directors do not recommend any dividend for the year under review.

DIRECTORS:

Mr. Sanjiv Kumar Director of the Company retires by rotation and being eligible, offers himself for re-appointment. Necessary resolution for his re-appointment is being placed before the members for your approval. Mr. Ravi Kumar Chennupati and Mr. Lakshmi Prasad Yemeni, who were appointed as Additional Director by the Board are proposed to be appointed as Director liable to retire by rotation. Board recommends their appointment.

DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to Section 217(2AA) of the Companies Act 1956, your Directors report that:

1. in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanatory statement relating to material departures, if any.

2. such accounting policies have been selected and applied consistently and the judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the Loss of the Company for that year.

3. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

4. the accounts have been prepared on a going-concern basis since the Directors are considering and evaluating ways and means to restructure operations by taking into account appropriate business strategies and financial viabilities.

CORPORATE GOVERNANCE:

Your Company has complied with the requirements of the Code of Corporate Governance in accordance with Clause 49 of the Listing Agreement with Bombay Stock Exchange Limited. A separate report on Corporate Governance along with Auditors' certificate on its compliance is attached to this Report. Management Discussion and Analysis, as prescribed by the Listing Agreement, also forms a part of the Annual Report.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information relating to Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo as required to be disclosed under section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is not given as the Company has no business activities.

AUDITORS:

M/s. Ganesh Venkat & Co; Chartered Accountants, Statutory Auditors of the Company, hold office until the conclusion of the ensuing Annual General Meeting and are eligible for re- appointment. The Company has received confirmation that their appointment, if made, will be within the limits prescribed under Section 224(1 B) of the Companies Act, 1956.

FIXED DEPOSITS:

Your Company has not accepted any fixed deposits covered under section 58A and 58AA of the Companies Act 1956 from the public or its shareholders during the year under review.

SUBSIDARY COMPANIES: There are no subsidaries to the company as on date of the report.

PARTICULARS RELATING TO EMPLOYEES:

Information pursuant to Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, is not applicable to the Company.

ACKNOWLEDGEMENTS:

Your Directors take the opportunity to express their grateful appreciation for the co-operation and assistance by the government authorities, bankers and other business associates as well as shareholders and employees.

For and on behalf of the Board

Place: Hyderabad Sachendra Tummala Date : 28th May, 2011 Director