Mar 31, 2015
Dear Members,
The Directors hereby present their 23rd Annual Report on the business
and operations of the Company and financial accounts for the year ended
31st March, 2015.
1. FINANCIAL HIGHLIGHTS:
(Rs. In Lacs)
2014-15 2013-14
1. Revenue
(a) Revenue from operation 14279.15 14273.73
(b) Other Income 90.67 92.92
Total 14819.81 14366.65
Profit Before Depreciation & Tax 261.98 318.72
Less: Depreciation &
Amortisation Expenses 119.50 100.49
Profit Before Tax 142.48 218.23
Current Tax 29.10 46.00
Less: MAT Receivable 9.81 46.00
Less: Tax adjustment of an earlier year 1.57 Nil
Less: Deferred Tax 3.37 62.77
Profit After Tax 118.25 155.46
2. Operations:
During the year under review, your Company has recorded income of
14819.81 Lacs as against Rs 14366.65 Lacs in the previous year. Due to
adverse & volatile market conditions our Company has recorded net
profit after tax of Rs. 1.18 Crore, resulting into an Earning Per
Share(EPS) of Rs. 1.45 for the financial year.
3. Future Outlook:
In the current year, the business of the Company is likely to improve
due to better market condition, technological advancements/improvement
in the economy. Moreover, the company is diversifying into other
related business areas where business potential is much more.
4. Dividend:
In order to conserve the resources for the future expansion plan of the
company under implementation, your directors do not recommend any
dividend for the year under the review.
5. Extract of Annual return:
The details forming part of the extract of the Annual Return in form
MGT 9 as required under Section 92 of the Companies Act, 2013, is
marked as ANNEXURE A which is annexed hereto and forms part of the
Directors' Report.
6. Number of Meetings of the Board:
The details of the number of meetings of the Board held during the
financial year 2014-15 forms part of the Corporate Governance Report.
7. Directors' Responsibility Statement:
As required by Section 134(3)(c) of the Companies Act, 2013 your
Directors state that:
(a) In the preparation of the annual accounts for the year ended 31st
March, 2015, the applicable accounting standards have been followed
with proper explanation relating to material departures, if any.
(b) The accounting policies adopted in the preparation of the annual
accounts have been applied consistently except as otherwise stated in
the Notes to financial statements and reasonable and prudent judgments
and estimates have been 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
2014-15 and of the profit for the year ended 31st March, 2015.
(c) Proper and efficient care has 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) The annual accounts for the year ended 31st March, 2015, have been
prepared on a going concern basis.
(e) That proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively.
(f) That systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively.
8. Declaration by independent directors:
Mr. Rajiv Bhatt and Mr. Aashish Vyas are independent directors on the
Board of the Company. The Company has received declaration from all
the independent directors of the Company confirming that they meet the
criteria of Independence as prescribed both under the Companies Act,
2013 and Clause 49 of the Listing Agreement.
9. Company's policy on Director's Appointment and Remuneration:
Pursuant to provisions of Section 178 of the Companies Act, 2013 and
Clause 49 of the Listing Agreement, the Board of Directors of the
Company, based on the recommendation of the Nomination and Remuneration
Committee, has formulated Remuneration Policy.
The remuneration policy of the Company, inter alia, include the aims
and objectives, principles of remuneration, guidelines for remuneration
to Executive Directors and Non - Executive Directors, fixed and
variable components in the remuneration package, criteria for
identification of the Board Members and appointment of senior
management.
The criteria for identification of the Board Members including that for
determining qualification, positive attributes, independence etc.
summarily given hereunder:
* The Board members shall possess appropriate skills, qualification,
characteristics and experience. The objective is to have a Board with
diverse background and experience in business, government, academics,
technology, human resources, social responsibilities, finance, law etc.
and in such other areas as may be considered relevant or desirable to
conduct the Company's business in holistic manner.
* Independent Director shall be person of integrity and possess
expertise and experience and / or someone who the Committee/Board
believes could contribute to the growth /philosophy/strategy of the
Company.
* In evaluating the suitability of individual board members, the
Committee takes into account many factors, including general
understanding of the Company's business dynamics, global business,
social perspective, educational and professional background and
personal achievements.
* Director should possess high level of personal and professional
ethics, integrity, and values. He should be able to balance the
legitimate interest and concerns of the company's stakeholders in
arriving at decisions, rather than advancing interest of particular
constituency.
* Director must be willing to devote sufficient time and energy in
carrying out their duties and responsibilities effectively. He must
have the aptitude to critically evaluate management's working as part
of a team in an environment of collegiality and trust.
* The Committee evaluates each individual with the objective of having
a group the best enables the success of the Company's business and
achieve its objectives.
10. Particulars of loans, guarantees or investments:
Details of Loans, Guarantees and investments covered under the
provisions of Section 186 of the Companies Act, 2013 are given in the
Notes to the Financial Statements.
11. Related party transactions:
All transactions entered with Related Parties during the financial year
were on an arm's length basis and were in the ordinary course of
business and the provisions of Section 188 of the Companies Act, 2013
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 the review made by the Company with promoters,
directors, and key managerial personnel or the designated persons which
may have a potential conflict with the interest of the Company at
large.
The policy on Related Party Transactions as approved by the Board is
uploaded on the Company's website.
12. Energy conservation, technology absorption and foreign exchange
earnings and outgo:
As required under the provisions of the Companies Act, 2013 and Rule
8(3) of Companies (Accounts) Rules, 2014 details relating to
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and outgo are given in Annexure B, which is annexed hereto and
forms part of the Directors' Report.
13. Risk management:
Risk management is the process of identification, assessment, and
prioritisation of risk followed by coordinated efforts to minimise,
monitor and mitigate / control the probability and / or impact of
unfortunate events or to maximise the realisation of opportunities.
14. Board evaluation:
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual evaluation
of its own performance, the Directors individually as well as the
evaluation of the working of the various committee. The independent
directors also carried out the evaluation of the performance of the
Chairman and the Non - Independent Directors, the details of which are
covered in the Corporate Governance Report.
15. Criteria for evaluation of directors:
For the purpose of proper evaluation, the Directors of the Company have
been divided into 3 (three) categories i.e. Independent, Non -
Independent, & Non - Executive and Executive.
The criteria for evaluation includes factors such as engagement,
strategic planning and vision, team spirit and consensus building,
effective leadership, domain knowledge, management qualities, team work
abilities, results/achievements, understanding and awareness,
motivation/commitment/diligence, integrity/ethics/values and
openness/receptivity.
16. Directors and key managerial personnel:
i. Mr. Ashok Kamath appointed as Chief Financial officer of the
Company w.e.f. 01st Oct, 2014.
ii. Mr. Apoorva Shah, Chairman & Managing Director of the Company
retires from the Board by rotation and eligible, offer himself for
reappointment. The Board recommends his reappointment. The Board places
on record its deep appreciation for the valuable contribution made by
him during his tenure as Managing Director of the Company.
In view of the provisions of Section 203 of the Companies Act, 2013 Mr.
Apoorva Shah, Chairman & Managing Director, Mrs. Alpa Shah, Whole -
Time Director, Mr. Ashok Kamath, Chief Financial Officer and Ms.
Suvarnalata Chavan, Company Secretary and Compliance Officer were
identified and appointed as Key Managerial Personnel of the Company.
17. Material changes/commitments affecting the financial position,
occurred after end of the financial year till date of report
No material changes have been occurred subsequent to the close of the
financial year of the Company to which the balance sheet relates and
the date of the report of Board like settlement of any tax liabilities,
depression in market value of investments, institution of cases by or
against the company, sale or purchase of capital assets or destruction
of any assets etc.
18. DETAILS OF UNCLAIMED SHARE CERTIFICATES
In accordance with the requirements of the Clause 5A of the Listing
Agreement, shares remaining unclaimed even after 3 reminders have to be
transferred and held in a separate demat account. As per the
information provided by the Registrars and Transfer Agent, No share
remained unclaimed at the end of the year.
19. Deposits:
Your company has not accepted any public deposit during the financial
period under review.
20. Details of significant and material orders passed by the
regulators, courts and tribunals
No significant and material order has been passed by the regulators,
courts, tribunals impacting the going concern status and company's
operation in future.
21. Internal control and systems:
The Company has adequate internal control procedures commensurate with
its size and nature of business. The objective of these procedure is to
ensure efficient use and protection of the Company's resources,
accuracy in financial reporting and due compliance of statutes and
corporate policies and procedures.
The adequacy of internal control systems are reviewed by the Audit
Committee of the Board in its periodical meetings.
22. VIGIL MECHANISM/WHISTLE BLOWER POLICY:
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 vigil mechanism/whistle blower policy to deal with unethical
behaviour, actual or suspected fraud or violation of the Company's code
of conduct or ethics policy, if any. The Vigil Mechanism / Whistle
Blower Policy has also been uploaded on the website of the Company.
23. CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
There has been no contract or arrangements entered into by the Company
with any related party referred to in sub-section (1) of Section 188 of
the Companies Act, 2013.
24. Particulars of employees:
As required under the provisions of the Companies Act, 2013 and Rule
5(2) and Rule 5(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, particulars of the employees
concerned forms a part of Director's Report. Having regard of the
provisions of Section 136 of the Companies Act, 2013, the Annual Report
excluding the aforesaid information is being sent to the members of the
Company. Any member interested in obtaining such particulars may write
to the Company Secretary of the Company.
25. Details relating to remuneration of directors, key managerial
personnel and employees:
Disclosure pertaining to remuneration and other details as required
under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 is marked as Annexure - C which is annexed hereto and forms
part of the Director's Report.
26. Human resource:
One of the major reason for the sustained success of NHC Foods is our
employees of the Company.
The Management of the Company fully recognise the fact that with a
well-motivated and energized work force, is key of achieving of Company
goals and aims.
The Human Resource Management in NHC Foods is concerned with the
people's dimension in the organisation, facilitating the competencies
and retention of skilled force, developing management systems that
promote commitment, practices that foster team work and flexibility,
making employees feel valued and rewarded. Our remuneration package
also has a large in-built flexibility to suit individual needs and
preferences. There is constant drive to keep the motivation levels of
employees high and let them take part in operating decisions of the
Company.
The recruitment policy ensure that it has the right number & kind of
people at the right place and at right time, capable of effectively and
efficiently completing those tasks that help the organisation achieve
its overall objective.
27. Auditors and auditor's report
Statutory Auditor:
M/s NGS & Co. LLP, Chartered Accountants (Firm Registration No.
119850W) Statutory Auditors of the Company, hold office till the
conclusion of the ensuing Annual General Meeting and are eligible for
re-appointment.
The Company has received a confirmation from M/s. NGS & Co. LLP to the
effect that their appointment, if made, at the ensuing AGM would be in
terms of Section 139 and 141 of the Companies Act, 2013 and Rules made
there under and that they are not disqualified for re-appointment.
Secretarial Auditor:
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 had appointed Mr. Dinesh Deora,
Practising Company Secretary 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 is annexed herewith and
marked as "Annexure - D". The report is self-explanatory and do not
call for any other comments.
28. Subsidiary / Joint Ventures / Associate Companies
Your company does not have any Subsidiary / Joint Ventures / Associate
Companies.
29. Disclosure on Sexual Harassment of women at workplace
The Company has set up an Internal Complaints Committee for providing a
redressal mechanism pertaining to sexual harassment of women employees
at workplace. there was no case of sexual harassment reported during
the year under review.
30. Acknowledgments :
The Board of Directors wish to place on record its sincere appreciation
for the support received from its stakeholders, including shareholders,
bankers, distributors, suppliers and business associates. The Directors
recognize and appreciate the sincere, hard work, loyalty, dedicated
efforts and contribution of all the employees that ensured sustained
performance in a challenging business environment.
For and on behalf of Board of Directors,
Apoorva Shah
(Chairman & Managing Director)
Registered Office:
NHC FOODS LTD.
Survey No. 777,
Umarsadi Desaiwad Road, Village Umarsadi,
Taluka Pardi, District Valsad,
Gujarat - 396175
Mar 31, 2014
Dear Members,
The Directors are pleased to present 22nd Annual Report and the
Company''s audited accounts for the financial year ended March 31, 2014.
1. FINANCIAL HIGHLIGHTS
The Company''s financial performance, for the year ended March 31, 2014
is summarized below:
(Rs. In Lacs)
2013-2014 2012-2013
Total Income 14273.73 13785.64
Profit Before Depreciation & Tax 318.72 331.71
Less: Depreciation 100.49 92.32
Profit Before Tax 218.23 239.39
Current tax 46.00 46.93
Less: MAT Receivable 46.00 46.93
Less: Deferred Tax 62.77 78.32
Profit After Tax 155.46 161.07
2. Operations
During the year under review, your Company has recorded income of Rs.
14273.73 Lacs as against Rs. 13785.64 Lacs in the previous year.
Factory Automation:
(a) Our manufacturing unit in Valsad, Gujarat is set up with modern
amenities and automated processing units imported from Germany and UK
which are well controlled by computer systems, which ensures uniform
and quality products.
(b) Our offices are well equipped and we use hi - tech machinery and
technology and connectivity to interact with our clients and agents
which on a daily basis, and enables us to respond to our buyer''s
queries immediately, thereby shortening our turnaround time and
satisfying their requirements which in turn help us to generate more
enquiries and more orders.
(c) We are also using e-storm software a mass mailing software which
helps us to mail our offers and introductions to multiple buyers at a
time without having to send mails to each and every buyer individually.
This software helps us target multiple buyers at a single time, thereby
generating more enquiries which will help us in getting us more clients
in the long run.
NHC Foods Limited - SAAZ:
During the month of Oct, 2011 we had launched our own brand "SAAZ"
under which we produce more than twenty varieties of blended spices
powders in the domestic market primarily in the states of Maharashtra,
Gujarat, Goa. In order to expand the market and business of all
products under the "SAAZ brand" to other states of India, the Company
is in the process of tying up and entering into agreements/
arrangements with popular modern trade outlets to other states in India
and is also considering setting our own retain shops under ownership
and franchising models.
3. Current Outlook
Current Outlook, industrial structure & development along with
opportunities and threats are discussed in the Management Discussion &
Analysis Report, which forms part of the report.
4. Dividend
In order to conserve the resources for the future expansion plan of the
Company under implementation, your Directors do not recommend any
dividend for the year under review.
5. Extra Ordinary General Meeting held on 28th November, 2013:
The Shareholders of the Company in its meeting held on 28th November,
2013 have approved:
(a) The Board be and is hereby authorised to, in its absolute
discretion create, issue, offer and allot equity shares/fully
convertible debentures/partly convertible debentures/ non convertible
debentures with warrants/any other securities (other than warrants)
which are convertible into or exchangeable with equity shares for an
amount not exceeding Rs. 40 Crores (Rupees Forty Crores Only) including
such premium /discount as may be finalized by the Board.
(b) Increase in the limit of investment by Foreign Institutional
Investors(FIIs) holding from 24% to 49% and limit of NRIs holding from
10% to 24% in terms of Foreign Exchange Management (Transfer or Issue
of Security by a Person Resident Outside India) Regulations, 2000.
6. Listing Agreement Compliances
Pursuant to the requirements of the Listing Agreement, the Company
declares that its Equity Shares are listed on the BSE Ltd. Further we
would like to inform you that the securities of the Company has been
Delisted from Madras Stock Exchange Limited (MSE) w.e.f. 25.03.2014
under voluntary delisting process. The Company confirms that it has
paid Annual Listing Fees due to BSE Ltd. for the year 2014-15.
7. Conversion of OCRPS
19,00,000 OCRPS were transferred from Mr. Apoorva Shah to non promoter
group.
Further, the Board of Directors on the receipt of request from
non-promoter group approved the conversion of 19,03,600 OCRPS into
ordinary shares in the Board Meeting held on 20th Feb, 2014.
The OCRPS have been allotted pursuant to the Scheme of Amalgamation
duly sanctioned by the Hon''ble High Court of Bombay on 11th Sept, 2010.
8. Technology & Quality
Sustained commitment to highest level of quality, best-in-class service
management helped the Company attain number of milestones during the
year.
Your Company has already obtained various quality certifications in its
name, such as:
* ISO 22000:2005 - (Food Safety Management Systems) - is awarded to our
plant at pardi, Gujarat, for laying down a set of standardized
requirements for Food Safety Management Systems after satisfactory
verification and validations of its Food Safety Management Systems.
This certification would have following benefits to our organization:
* A truly global international standard that converse the majority of
the requirements of the current food safety standards.
* An audible standard with clear requirements which provides a
framework for third party certification.
* Our Company, has received the ''Star Export House Status'' from the
Ministry of Commerce and Industry, office of Zonal Joint Director of
Foreign Trade, a recognition granted to established exporters for
promoting India''s exports and to building up marketing infrastructure
and expertise required for export promotion.
* Halal India Certificate:
Our manufacturing plant located at Survey No. 777, Umarsadi Desaiwad
Road, At Village Umarsadi, Taluka Pardi, District Valsad, Gujarat -
396175 has received a recognition granted by Halal India in accordance
with Shariah (Islamic) Board Guidelines.
9. Management''s Discussion and Analysis Report
Management''s Discussion and Analysis Report for the year under the
review, as stipulated under Clause 49 of the Listing Agreement with the
Stock Exchanges in India, is presented in a separate action forming
part of Annual Report.
10. Directors'' Responsibility Statement
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Directors'' Responsibility Statement, it is
hereby confirmed that:
i) in the preparation of the annual accounts for the year ended March
31, 2014, the applicable accounting standards read with requirements
set out under Schedule VI to the Companies Act, 1956, have been
followed and there are no material departure from the same;
ii) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give true and fair view of the state of affairs of
the Company as at March 31, 2014 and of the Profit of the Company for
the year ended on that date;
iii) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
iv) the Directors have prepared the annual accounts of the Company on
going concern basis.
11. Auditors and AuditorÂs Report
NGS & Co. LLP, Chartered Accountants, Statutory Auditors of the Company
retires at the annual general meeting and are eligible for
re-appointment. Pursuant to the provisions of Section 139 of the Act
and Rules framed there under, it is proposed to appoint M/s NGS & Co.
LLP as statutory auditors of the Company to hold office from the
conclusion of this Annual General Meeting until the conclusion of the
next Annual General Meeting of the Company subject to ratification of
such appointment by members at every AGM.
12. Cost Auditors
The Company has appointed Pasari & Associates as Cost Auditor for
conducting the audit of cost records of the Company for the financial
year 2014- 15.
Note: For the Financial year 2013-14 company has appointed Pasari &
Associates as a Cost Auditor by passing of Board Resolution dated 12th
May, 2014.
13. Secretarial Audit Report
As a measure of good corporate governance practice, the Board of
Directors of the Company appointed Mr. Dinesh Deora, Practicing Company
secretary, to conduct the Secretarial Audit. The Secretarial Audit
Report for the financial year ended March 31, 2014, is provided in the
Annual Report.
The Secretarial Audit Report confirms that the Company has complied
with all the applicable provisions of the Companies Act, 1956, the 98
Sections of the Companies Act, 2013 notified vide Ministry of Corporate
Affairs Gazette Notification No. S.O. 2754(E) dated September 12, 2013,
the Securities Contracts (Regulation) Act, 1956, Depositories Act,
1996, the Foreign Exchange Management Act, 1999 to the extent
applicable to Overseas Direct Investment, Foreign Direct Investment
(FDI) and External Commercial Borrowings (ECB), all the regulations and
guidelines of SEBI as applicable to the Company, including the
Securities and Exchange Board of India (Substantial Acquisition of
Shares and Takeovers) Regulations, 2011, the Securities and Exchange
Board of India (Prohibition of Insider Trading) Regulations, 1992,
Listing Agreements with the Stock Exchanges and the Memorandum and
Article of Association of the Company.
14. Particulars of Employees
Your Company does not have any employee of the category specified in
Section 217(2A) of the Companies Act, 1956 and the Companies
(Particular of Employees) Rules, 1975, as amended thereto from time to
time.
15. Directors
Mr. Rajiv Bhatt retires by rotation at the ensuing annual general
meeting and being eligible, has offered himself for re-appointment.
As per Section 149 of the Companies Act, 2013 (''The Act'') which come
into effect from 1st April, 2014, every listed company is required to
have at least one third of the total number of directors as Independent
Directors (ID). The IDs shall hold office for a term up to 5
consecutive years from the date of commencement of the act.
Accordingly, your Board recommends the appointment of Mr. Aashish Vyas
and Mr. Rajiv Bhatt, Directors as Independent Directors of the Company.
16. Corporate Governance
The Company is committed to maintain the highest standard of corporate
governance and adhere to the Corporate governance require set out by
SEBI. The Company has also implemented several best corporate
governance practices as prevalent globally.
The Report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of Annual Report.
The requisite certificate from Auditors of the Company confirming
compliance with the conditions of corporate governance as stipulated
under the aforesaid Clause 49, is attached to the Report of Corporate
Governance.
17. Finance and Accounts
Your Company continued to focus on cash generation. The focus on
managing optimal level of inventory, sound business performance,
operating efficiencies and cost savings helped generate healthy cash
flows. Your Company managed investments prudently by deploying cash
surplus in a balanced portfolio defined to offer primarily to safety
and liquidity of the investments.
18. Appreciations and Acknowledgement
Your Directors place on record their deep appreciation to employees at
all levels for their hard work, dedication and commitment. The
enthusiasm and unstinting efforts of the employees have enabled the
Company to remain as reputed Company.
Your Directors express their grateful appreciation for the assistance
and co-operation extended by the Company''s Shareholders, Customers,
Distributors, Bankers, Suppliers, Registrar and Share Transfer Agents,
Employees and all other authorities/stakeholders during the year and
look forward to their continued support in future years of growth.
For and on behalf of Board of Directors,
Apoorva Shah
(Chairman & Managing Director)
Registered Office:
NHC FOODS LTD.
Survey No. 777,
Umarsadi Desaiwad Road,
Village Umarsadi,
Taluka Pardi, District Valsad,
Gujarat-396175
Mar 31, 2013
Dear Members,
The Directors are pleased to present their 21st Annual Report together
with the Audited Financial Statement of Accounts along with the Report
of the Auditors for the year ended 31st March, 2013.
1. FINANCIAL HIGHLIGHTS:
The Financial Highlights of your Company for the year under review are
given below:
(Rs.In Lacs)
2012-2013 2011-2012
Total Income 13785.64 9326.27
Profit Before Depreciation & Tax 331.71 162.38
Less: Depreciation 92.32 87.09
Profit Before Tax 239.39 75.29
Current tax 46.93 11.26
Less: MAT Receivable 46.93 11.26
Less: Deferred Tax 78.32 28.98
Profit After Tax 161.07 46.31
2. Operations
During the year under review, your Company has recorded income of f
13785.64 Lacs as against Rs. 9326.27 Lacs in the previous year. The Net
Profit for the financial year ended 31st March, 2013 increased to Rs.
161.07 Lacs from Rs. 46.31 Lacs in the previous year.
A) NHC Foods Limited - Saaz
- Saaz, initially launched in just two states, but in just 2 years it
has started making presence in other states like Karnataka, Goa, Madhya
Pradesh and Rajasthan.
- Roll out in a phased manner - Launch in Tier I cities of Gujarat,
Mumbai & neighboring satellite towns. Over the year Saaz''s distribution
network has expanded and started spreading its reach to the remote
areas of Maharashtra and Gujarat.
- Vast Repertoire of 60 recipes of masalas and mixes - researched and
concocted in-house. Initially launched - 14 masala types processed
in-house.
B) NHC Foods Limited - Export
- NHC Foods Limited is a Government Recognized Star Export House
engaged in the Business of Exports of Whole & Ground Spices, Lentils,
Pulses, Grains, Oil Seeds and various other Agri - products and
Assorted Food Products.
- Currently NHC Foods Limited is Exporting the above-mentioned
Commodities to more than 60 Countries World-wide.
- Existing Clientele Countries:
Singapore, USA, Canada, Israel, Russia, Spain, New Zealand, Hong Kong,
Malaysia, China, Indonesia, Vietnam, Thailand, Taiwan, UAE, Saudi
Arabia, Kuwait, Bahrain, Turkey, Yemen, Egypt, Mauritius, Sri Lanka,
Brazil, Ukraine, Macedonia, Iran, Pakistan, Bangladesh.
3. Current Outlook
Current outlook, industry structure & development along with
opportunities and threats are discussed in the Management Discussion &
Analysis Report, which forms part of this report.
4. Dividend:
In order to conserve the resources for the future expansion plan of the
Company under implementation, your Directors do not recommend any
dividend for the year under review.
5. Reclassification and Increase in Authorised Share Capital/Capital
Raising Plans of the Company.
The Management of the Company is actively considering raising resources
for increasing production capacity to meet competitive requirements of
quality and value addition in both medium and long term:
a) Postal Ballot held on 21st Sept, 2012:
The Shareholders of the Company through postal ballot held on 21st
Sept, 2012 have approved increase in Authorised Share Capital of the
Company fromRs. 11,00,00,000/- divided into 35,00,000 Equity Shares of f
10/- each and 75,00,000 Preference Shares of Rs.10/- each to Rs.
19,00,00,000/- divided into 1,15,00,000 Equity Shares ofRs. 10/- each and
75,00,000 Preference Shares of Rs. 10/-.
b) Postal Ballot held on 07th March, 2013:
The Shareholders of the Company through postal ballot held on 07th
March, 2013 have approved:
1. Reclassification of Authorised Share Capital of the Company of Rs.
19,00,00,000/- divided into 1,15,00,000 Equity Shares ofRs. 10/- each and
75,00,000 Preference Shares of Rs. 10/- each be and is hereby
reclassified into 1,35,00,000 Equity Shares of Rs. 10/- each and
55,00,000 Preference Shares of Rs. 10/- each.
2. The Authorised Share Capital of the Company increased from Rs.
19,00,00,000/- divided into 1,35,00,000 Equity Shares of Rs. 10/- each
and 55,00,000 Preference Shares of Rs. 10/- each to Rs. 24,00,00,000/-
divided into 1,85,00,000 Equity Shares of Rs. 10/- each and 55,00,000
Preference Shares of Rs. 10/- each.
6. Preferential Allotment:
10,00,000 fully paid-up equity shares of the face value of Rs. 10/- each
at a share premium of Rs. 12.60/- per share aggregating to Rs.
2,26,00,000/- of the Company allotted to the Investors- the non
Promoters on Preferential basis on 05th Oct, 2012, on the terms and
conditions as mentioned in the Special Resolution passed by the
Shareholders through postal ballot held on 21st Sept, 2012.
7. Conversion of OCRPS:
20,89,200 OCRPS were allotted to Mrs. Hansa Shah pursuant to the scheme
of amalgamation of M/s NHC Industries Private Limited with that of the
Company, where OCRPS shall be converted in the ratio of 1 (One) New
Equity Shares of the face value ofRs. 10/- each for every 1 (one) OCRPS
of the face value of Rs. 10/- each.
Mrs. Hansa Shah exercised her option to convert 15,42,400 OCRPS
(Optionally Convertible Redeemable Preference Shares) into Ordinary
Shares. Accordingly, 15,42,400 Ordinary Shares of
Rs. 10/- each were allotted to Mrs. Hansa Shah on 05th Oct, 2012.
8. Delisting of shares:
The equity shares of the Company are voluntarily delisted from
Ahmedabad Stock Exchange Limited (ASE) w.e.f. 21/02/2013.
9. Award / Recognition:
NHC Foods Limited have been awarded for Certificate of Merit from the
Spices Board (Ministry of Commerce & Industry, Government of India) in
recognition of outstanding performance in the Export of
Spices and Spices products for the year 2011-12.
10. Technology and Quality:
Sustained commitment to highest level of quality, best  in  class
service management helped the Company attain number of milestones
during the year.
Your Company has already obtained various quality certifications in its
name, such as:
- *ISO 9001:2008 - for its satisfactory development, implementation and
continual improvements in Management Operations Systems for procurement
and dispatch of Whole & Grounded Spices and other food products and
Miscellaneous assorted products for grocery.
- ISO 22000: 2005 - (Food Safety Management Systems) - is awarded to
our plant at Pardi, Gujarat, for laying down a set of standardized
requirements for Food Safety Management Systems after satisfactory
verification and validations of its Food Safety Management Systems.
This certification would have following benefits to our organization:
- A truly global international standard that converse the majority of
the requirements of the current food safety standards.
- An auditable standard with clear requirements which provides a
framework for third party certification.
(*The said certifications are transferred in the name of our Company
from erstwhile, M/s. NHC Industries Private Limited, pursuant to the
Scheme of Amalgamation).
- Our Company, has received the *''Star Export House Status'' by the
Ministry of Commerce and Industry, Office of Zonal Joint Director of
Foreign Trade, a recognition granted to established exporters for
promoting India''s exports and to building up marketing infrastructure
and expertise required for export promotion.
11 . Directors'' Responsibility Statement:
Pursuant to the requirement of Section 217(2AA) of the Act, and based
on the representations received from the operating management, the
Directors hereby confirm that:
i) In the preparation of the annual accounts for the financial year
2012-13, the applicable accounting standards have been followed and
there are no material departures;
ii) They have selected such accounting policies and applied them
consistently and made judgment 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 profit of the
Company for the financial year
iii) They have taken proper and sufficient care to the best of their
knowledge and ability for the maintenance of adequate accounting
records in accordance with the provisions of the Act. They confirm
that there are adequate systems and controls for safeguarding the
assets of the Company and for preventing and detecting fraud and other
irregularities
iv) That the directors have prepared the annual accounts on a going
concern basis
12. Conservation of energy, technology absorption and foreign
exchange:
A Statement giving details of Conservation of Energy, technology
absorption, foreign exchange earnings, and outgo in accordance with the
Companies (Disclosures of Particulars in the Report of Board of
Directors) Rules, 1988 is annexed to this report.
Report on Management Discussion and Analysis is provided in a separate
section and forming part of this annual report.
13. Particulars of Employees:
Your Company does not have any employee of the category specified in
Section 217 (2-A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rule, 1975, as amended thereto from time to
time.
14. Internal Audit and Controls:
During the year under review, your Company has appointed M/s Surekha
Associates, Chartered Accountants as its internal Auditor. Your Company
continued to implement their suggestions and recommendations to improve
the control environment
Their scope of work includes safeguarding the assets of your Company,
review of operational efficiency, effectiveness of systems and
processes and assessing the internal control strengths in all areas of
operations,
The internal auditors finding are discussed with the processing person
and suitable corrective actions are taken as per the directors of the
Audit Committee on a going concern basis to improve the efficiency in
operations.
15. Auditors and their Report:
In terms of provisions of Section 224 of the Companies Act, 1956, M/s
NGS & Co. LLP, Chartered Accountants retire at this Annual General
Meeting and being eligible, offer themselves for re- appointment.
Pursuant to the recommendations of the Audit committee for
reappointment of M/s NGS & Co. LLP as Statutory Auditors of the Company
for the financial year 2013-14, the Board of Directors have, subject to
the approval of the Shareholders have approved the re-appointment of
M/s NGS & Co. LLP as Statutory Auditors of the Company for the
financial year 2013-14 and to hold the office till the conclusion of
the next of Annual General Meeting.
Resolution seeking your approval on this item is included in the Notice
convening the Annual General Meeting. Members are requested to consider
the appointment of M/s NGS & Co. LLP, Chartered Accountants, Mumbai,
for the year 2013- 14, on a remuneration to be decided by the Board of
Directors, in consultation with the said firm of Auditors.
16. Directors:
Pursuant to Article 138 of Article of Association of the Company Mr.
Aashish Vyas, Non - Executive Independent Director of your Company
retires from the office as Director of your Company, at the ensuing
Annual General Meeting & being eligible, offers himself for
re-appointment
The Board recommended the above re- appointment. Resolutions seeking
your approval on these items are included in the Notice Convening
Annual General Meeting together with brief resume of the Directors
being re-appointed.
As situated by Clause 49 of the Listing Agreement, brief profile of the
director seeking re-appointment, nature of his expertise in specific
functional area and names of companies in which he is director are
provided in the Annual report.
17. Depository System:
As the shareholders are aware, your Company''s shares are tradable in
electronic form and the Company has established connectivity with both
the depositories i.e. NSDL & CDSL. In view of the services offered by
the Depository system, the shareholders are requested to avail the
facility of dematerialization of the Company''s shares.
18. Fixed Deposits:
During the year under review, the Company has not accepted any deposits
within the meaning of Section 58A of the Companies Act, 1956 from the
Public. Hence, as on 31st March, 2013 there are no unclaimed deposits
lying with the Company.
19. Corporate Governance Report, Management Discussion and Analysis
Report and Business Responsibility Report:
As per Clause 49 of the Listing Agreements entered into with the Stock
Exchanges, Corporate Governance Report with Auditors'' Certificate and a
Management Discussion and Analysis Report are attached and form part of
this Report.
20. Listing Agreement Compliance:
Pursuant to the requirements of the Listing Agreement, the Company
declares that its Equity Shares are listed on the Bombay Stock Exchange
Limited (BSE), Madras Stock Exchange Limited (MSE). Further, we would
like to inform you that the securities of the Company has been Delisted
from Ahmedabad Stock Exchange Limited (ASE) w.e.f. 21.02.2013 under
voluntary delisting process. The Company confirms that it has paid
Annual Listing Fees due to Bombay Stock Exchange Limited and Madras
Stock Exchange Limited for the year 2013-2014.
21. Acknowledgement:
Your Directors express their grateful appreciation for the assistance
and co-operation extended by the Company''s Shareholders, Customers,
Distributors, Bankers, Suppliers, Registrar and Share Transfer Agents,
Employees and all other authorities/ stakeholders during the year and
look forward to their continued support in future years of growth.
For and on behalf of Board of Directors,
Apoorva Shah
(Chairman & Managing Director)
Registered Office:
NHC FOODS LTD.
Survey No. 777,
Umarsadi Desaiwad Road, Village Umarsadi,
Taluka Pardi, District Valsad,
Gujarat  396175
Place: Mumbai
Date: 17th July, 2013
Mar 31, 2012
The Directors are pleased to present their Twentieth Annual Report
together with the Audited Financial Statement of Accounts along with
the Report of the Auditors for the year ended 31st March, 2012.
FINANCIAL HIGHLIGHTS:
The Financial Highlights of your Company for the year under review are
given below:
(Rs. In Lacs)
2011-2012 2010-2011
Total Income 9326.27 7311.06
Profit Before Depreciation & Tax 162.38 125.10
Less : Depreciation 87.09 76.97
Profit Before Tax 75.29 48.13
Less : Earlier year adjustment - -
Less : Provision for Tax - 7.44
Less : Deferred Tax 28.98 (4.58)
Profit After Tax 46.31 45.27
OPERATIONS
During the year under review, your Company has recorded income of Rs.
9326.27 Lacs as against Rs. 7311.06 Lacs in the previous year. The Net
Profit for the financial year ended 31st March, 2012 increased to Rs.
46.31 Lacs from Rs. 45.27 Lacs in the previous year.
A) NHC FOODS LTD - "SAAZ"
Vision- India's Finest Premium Brand for Spice & Spice Mixes.
Mission - Export Quality Spices & Spice Mixes at Affordable Prices for
All.
Aim - Presence of NHC Foods Ltd Saaz in Pan India by 2014 - 2015.
Objective - To Capture 45% of Unorganized Spice Market Share in India
Current Upgradation for 2012 - 2013 - launch of 7 new variants in
September 2012 - Chole Masala, Sambhar Masala, Paani Puri Masala,
Kitchen Mix, Egg Curry Masala, Fish Masala, Jaljeera Masala, this will
increase the sale volume and turnover.
Brand Guru Mr. Jagdeep Kapoor of Samsika Marketing Consultants
appointed as marketing consultant for the success of 'NHC SAAZ'.
Final stage of negotiation for Exporting NHC SAAZ to USA, South Africa,
UAE, Malaysia & Israel.
BUSINESS OUTLOOK:
A rapidly growing domestic economy with changing consumption patterns
presents huge opportunity for your Company going forward and has draw
up a strategy to continue its focus on the branded food business. It
will continue to introduce new products and penetrate new markets,
overseas.
DIVIDEND:
In order to conserve the resources for the future expansion plan of the
Company & plans under implementation, your Directors do not recommend
any dividend for the year under review.
TECHNOLOGY AND QUALITY:
Your Company has already obtained various quality Certifications in its
name, such as:-
- *ISO 9001:2008 - for its satisfactory development, implementation and
continual improvements in Management Operations Systems for procurement
and dispatch of Whole & Grounded Spices and other food products and
Miscellaneous assorted products for grocery.
- ISO 22000: 2005 - (Food Safety Management Systems) - is awarded to
our plant at Pardi, Gujarat, for laying down a set of standardized
requirements for Food Safety Management Systems after satisfactory
verification and validations of its Food Safety Management Systems.
This certification would have following benefits to our organization:
- A truly global international standard that covers the majority of the
requirements of the current food safety standards.
- Complies with the Codex HACCP principles enabling the communication
of HACCP concepts internationally. HACCP compliance/HACCP certification
helps organizations focus on the hazards affecting food safety and
hygiene and also identifies them by setting up control limits at
critical points during the food production process.
- Auditable standard with clear requirements which provides a framework
for third party certification.
- Our Company, has received the *'Star Export House Status' by the
Ministry of Commerce and Industry, Office of Zonal Joint Director of
Foreign Trade, a recognition granted to established exporters for
promoting India's exports and to building up marketing infrastructure
and expertise required for export promotion.
(*The said certifications are transferred in the name of our Company
from erstwhile, M/s. NHC Industries Private Limited, pursuant to the
Scheme of Amalgamation).
At NHC FOODS LTD, quality is of paramount importance. Thus, the
Company ensures that stringent quality checks are followed at each and
every stage of processing so that the end result surpasses the
expectations of its customers.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE:
A Statement giving details of Conservation of Energy, Technology
Absorption, Foreign Exchange Earnings and Outgo in accordance with the
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 is annexed to this report.
Report on Management Discussion & Analysis is provided in a separate
section and forming part of this Annual Report.
PARTICULARS OF EMPLOYEES:
Your Company does not have any employee of the category as specified in
Section 217 (2-A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975, as amended thereto from time to
time.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors' Responsibilities Statement, your
Directors hereby confirm:
(1) that in the preparation of the annual accounts for the year ended
31st March, 2012, the applicable accounting standards have been
followed along with proper explanation relating to material departures.
(2) that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the Company for the financial year;
(3) 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, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
(4) that the Directors have prepared the annual accounts on a going
concern basis.
INTERNAL AUDIT AND CONTROLS:
During the year under review, your Company has appointed M/s. Surekha
Associates, Chartered Accountants as its Internal Auditor. Your Company
continued to implement their suggestions and recommendations to improve
the control environment.
Their scope of work includes safeguarding the assets of your Company,
review of operational efficiency, effectiveness of systems and
processes and assessing the internal control strengths in all areas of
operations.
The Internal Auditors findings are discussed with the processing
persons and suitable corrective actions are taken as per the Directions
of the Audit Committee on a going concern basis to improve the
efficiency in operations.
AUDITORS & THEIR REPORT:
In terms of provisions of Section 224 of the Companies Act, 1956, M/s.
NGS & Co., Chartered Accountants retire at this Annual General Meeting
and being eligible, offer themselves for re-appointment. Pursuant to
the recommendations of the Audit Committee for reappointment of M/s.
NGS & Co. as Statutory Auditors of the Company for the Financial year
2012-13, the Board of Directors have, subject to the approval of the
shareholders have approved the re-appointment of M/s. NGS & Co. as
Statutory Auditors of the Company for the Financial Year 2012-13 and to
hold the office till the conclusion of the next Annual General Meeting.
Resolution seeking your approval on this item is included in the Notice
convening the Annual General Meeting. Members are requested to
consider the appointment of M/s. NGS & Co., Chartered Accountants,
Mumbai, for the year 2012-13, on a remuneration to be decided by the
Board of Directors, in consultation with the said firm of Auditors.
DIRECTORS:
Pursuant to Article 138 of Article of Association of the Company Mr.
Rajiv Bhatt, Non à executive Independent Director of your Company
retires from the office as Director of your Company, at the ensuing
Annual General Meeting & being eligible, offers himself for re-
appointment.
Mr. Jai Popat, Non - executive Independent Director stepped down from
the Board of the Company, with effect from 17th August, 2011 and your
Directors wish to place on record their appreciation of the
distinguished services rendered by him and for his rich and valuable
contributions made to the Company.
The Board recommended the above re-appointment. Resolution seeking
your approval on these items are included in the Notice convening the
Annual General Meeting together with brief resumes of the Directors
being re-appointed.
As stipulated by Clause 49 of the Listing Agreement, brief profile of
the Director seeking re-appointment, nature of his expertise in
specific functional area and names of Companies in which he is director
are provided into Annual Report.
FIXED DEPOSITS:
During the year under review, the Company has not accepted any Deposits
within the meaning of Section 58A of the Companies Act, 1956 from the
Public. Hence, as on 31st March, 2012 there are no unclaimed deposits
lying with the Company.
DEPOSITORY SYSTEM:
As the Shareholders are aware, your Company's Shares are tradable in
electronic form and the Company has established connectivity with both
the depositories i.e. NSDL and CDSL. In view of the advantages offered
by the Depository System, the shareholders are requested to avail the
facility of dematerialization of the Company's shares.
LISTING AGREEMENT COMPLIANCE:
Pursuant to the requirements of the Listing Agreement, the Company
declares that its Equity Shares are listed on the Bombay Stock
Exchanges Limited, Ahmedabad Stock Exchange Limited and Madras Stock
Exchange Limited. The Company confirms that it has paid Annual Listing
Fees due to all the Stock Exchanges for the year 2012-2013.
Corporate Governance:
A separate report on Corporate Governance is annexed hereto as a part
of this report. A Certificate from the Chartered Accountant in practice
regarding compliance of conditions of Corporate Governance as
prescribed under Clause 49 of the Listing Agreement is attached to this
report. A Separate report on Management Discussion & Analysis is
enclosed as a part of the Annual Report.
CONSOLIDATED FINANCIAL STATEMENTS:
In compliance with the Accounting Standard 21 and the Listing Agreement
entered into with Stock Exchanges, this Annual Report includes the
consolidated financial statements of the Company for the financial year
2011- 12.
ACKNOWLEDGEMENT:
Yours Directors express their grateful appreciation for the assistance
and co-operation extended by the Company's Shareholders, Customers,
Bankers, Suppliers, Registrar and Share Transfer Agents, Employees and
all other Authorities/Stakeholders during the year and look forward to
their continued support in future years of growth.
For and on behalf of Board of Directors,
Apoorva Shah
(Chairman & Managing Director)
Registered Office:
NHC FOODS LTD.
2/13, Anand Nagar, Santacruz (East),
Mumbai - 400055
Place: Mumbai
Date : 26th May, 2012
Mar 31, 2010
The Directors present their Eighteenth Annual Report together with the
Audited Financial Statement of Accounts along with the Report of the
Auditors for the year ended 31st March 2010.
FINANCIAL HIGHLIGHTS
The Financial Highlights OF YOUR COMPANY for the year under review are
given below :
(Rupees in lacs)
2009-2010 2008-2009
Total Income 7,219.04 -
Profit/(Loss) Before Depreciation 149.41 (3.19)
Less : Depreciation 62.42 3.24
Profit/(Loss) Before Tax 86.99 (6.43)
Less : Provision for Income Tax 7.00 -
Less: Earlier year adjustments 12.95 -
Less: Extra-Ordinary items - 28.09
Less : Deferred Tax Liability 39.86 (1.70)
Profit/(Loss) After Tax 27.18 (32.82)
OPERATIONS :
During the year under review, pursuant to the sanction of the High
Court, Bombay for the Scheme of Amalgamation of NHC Industries Private
Limited, with the Company, the financial results reflects the
consolidated working of the erstwhile NHC Industries Private Limited,
with your Company. Post Amalgamation, your company has recorded a
turnover of Rs. 7146.18 Lakhs.
DIVIDEND :
In order to conserve the resources for the future expansion plan of the
company & plans under implementation, your Directors do not recommend
any dividend for the financial year 2009 - 2010.
CORPORATE FINANCIAL RESTRUCTURING :
1. REDUCTION OF EQUITY SHARE CAPITAL OF THE COMPANY:
As you are aware that at the Annual General Meeting of your Company
held on 14th August, 2009, the resolution for reduction of Equity Share
Capital under section 100 to 104 of the Companies Act, 1956 was passed.
The Honble High Court of Judicature at Bombay vide their order dated
09th October, 2009 has duly confirmed the said resolution and the
Equity Share Capital of the Company stands reduced from Rs.
3,00,11,000/-comprising of 30,01,100 Equity Shares of Rs. 10/-each
fully paid-up to Rs. 1,05,03,850/- comprising of 10,50,385 Equity
Shares of Rs. 10/- each by canceling / reducing of Rs. 1,95,07,150/-
divided into 19,50,715 Equity Shares of Rs. 10/- each in the paid-up
Equity Share Capital which is lost or unrepresented by the available
assets.
Thus, the present paid-up Equity Share Capital of the Company is Rs.
1,05,03,850/- comprising of 10,50,385 Equity Shares of Rs. 10/- each.
2. REVOCATION OF SUSPENSION IN TRADING :
The Board of Directors of the company had applied to the Bombay Stock
Exchange for the Revocation of Suspension of trading in Equity Shares
of the Company. On completing of all the revocation formalities, the
Bombay Stock Exchange had vide their Notice no. 20100120-10 dated
January 20, 2010 granted approval for trading in Equity Shares of the
Company from Friday, January 19, 2010. Accordingly, the Equity shares
of the company are now actively traded on the Bombay Stock Exchange
Limited.
3. SCHEME OF AMALGAMATION :
As you are aware, the business of NHC Industries Private Limited has
been merged with your company w.e.f 1st April, 2009, being the
appointed date fixed for the purpose, pursuant to the scheme of
Amalgamation under Section 391-394 and other relevant provisions of the
Companies Act, 1956 (the "Act"). Pursuant to the scheme of Amalgamation
and in consideration thereof, your company has issued 5 (five) Equity
Shares of the Company of Rs. 10/- each fully paid-up for every 4 (four)
Equity Shares of Rs. 10/- each fully paid-up held in the Share Capital
of NHC Industries Private Limited (NHC) and 4 (four) 0% Optionally
Convertible Redeemable Preference Shares of the Company of Rs. 10/-
each fully paid up for every 1 (one) Equity Shares of Rs. 10/- each
fully paid up held in the Share Capital of NHC Industries Private
Limited to the erstwhile shareholders of NHC as on 9th September, 2010.
The Scheme of Amalgamation has become effective on 7th September, 2010;
having filed the certified copies of the High Court order with the
Registrar of Companies, Maharashtra, Mumbai.
Upon amalgamation, your Company will be able to derive economies of
scale and create a platform for future substantial growth and
development, which shall in turn be beneficial to the entire
stakeholder.
CORPORATE GOVERNANCE :
Accountability and integrity with total transparency continue to be the
companys main objective towards achieving sustained growth. During the
year under review, your Company was in compliance with the provisions
of Clause 49 of the Listing Agreement with the stock exchanges relating
to corporate governance.
Certificate of the Auditors of the Company regarding compliance of the
conditions of Corporate Governance as stipulated in Clause 49 of the
Listing Agreement with the Stock Exchange, is enclosed.
PARTICULARS OF EMPLOYEES :
Your Company does not have any employee of the category specified in
Section 217 (2-A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975.
AUDIT COMMITTEE :
The Audit Committee of the Company met on 30.06.2009, 31.07.2009,
30.10.2009 and 14.01.2010 during the year under review.
DIRECTORS RESPONSIBILITY STATEMENT :
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors Responsibilities Statement, your
Directors hereby confirm:
(1) that in the preparation of the annual accounts for the year ended
31st March, 2010, the applicable accounting standards have been
followed along with proper explanation relating to material departures.
(2) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the company at the end of the financial year and of the
profit or loss of the company for that period;
(3) that the directors have taken proper and sufficient care of 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;
(4) that the directors have prepared the annual accounts on a going
concern basis.
SAFETY AND ECOLOGY:
Safety and Environment protection strategies continue to be accorded
the same priority.
FIXED DEPOSITS :
During the year under review, the Company has not accepted any Deposits
within the meaning of Section 58Aof the Companies Act, 1956 from the
Public. Hence, as on 31s< March, 2010 there are no unclaimed deposits
lying with the Company.
DIRECTORS:
Mr. Aashish Vyas, was appointed as an additional director (non-
executive independent director) with effect from 30th October, 2009 and
Mrs. Alpa Shah, was appointed as an additional director (non-executive
promoter director) with effect from 11th September, 2010 respectively,
to hold office till the conclusion of the ensuing Annual General
Meeting. The company has pursuant to Section 257, received notices in
writing from a Member proposing their candidature for office of
Directors, liable to retire by rotation.
Mr. Amit Shah, non-executive independent director of your company
retires from the office as Director of your Company, at the ensuing
Annual General Meeting, however has expressed his unwillingness to
continue as the Director and it is proposed not to fill the casual
vacancy caused by his retirement at the said meeting or any adjournment
thereof. The Directors place on record their appreciation of the
services rendered by Mr. Amit Shah, during his tenure as members of the
Board.
Mr. Rajiv Bhatt, non-executive independent director, retires from the
office as Director of your Company at the ensuing Annual General
Meeting and being eligible, offers himself for re-appointment.
The Board recommends the above appointment. Resolutions seeking your
approval on these items are included in the Notice convening the Annual
General Meeting together with a brief resume of the Directors being
appointed/re-appointed.
AUDITORS :
M/s. NGS & Co., Chartered Accounts, Mumbai be appointed as the
Statutory Auditors of the Company to hold office from the conclusion of
the ensuing Annual General Meeting till the conclusion of the next
Annual General Meeting of the Company. M/s. NGS& Co., Chartered
Accountants, Mumbai have forwarded their certificates to the Company,
stating that their appointment, if made, will be within the limit
specified in that behalf in Sub-section (1B) of Section 224 of the
Companies Act, 1956.
The Board proposes the re-appointment of M/s. NGS & Co., Chartered
Accountants, Mumbai as Statutory Auditors of your Company based on the
recommendation of the Audit Committee, to hold office from the
conclusion of the ensuing Annual General Meeting until the conclusion
of the next Annual General Meeting.
Resolutions seeking your approval on these items are included in the
Notice convening the Annual General Meeting.
Members are requested to consider the appointment of M/s. NGS & Co.,
Chartered Accountants, Mumbai, for the current year, on a remuneration
to be decided by the Board of Directors in consultation with the said
firm of Auditors.
AUDITORS QUALIFICATION :
Observations made in the Auditors Report read with relevant notes in
Notes to Accounts, are self explanatory and therefore do not call for
any further comments under Section 217(3) of the companies Act, 1956.
CONSERVATION OF ENERGY:
The Company is not covered under the list of specified industries.
However, required conservation measures are already taken for limiting
power consumption to the extent necessary.
FOREIGN EXCHANGE EARNINGS AND OUTGO :
(Rs. in Lacs)
Earnings: 6448.14
(Previous Year: Rs. Nil)
Outgoing: 119.56
(Previous Year: Rs. NIL)
LISTING AGREEMENT COMPLIANCE :
Pursuant to the requirements of the Listing Agreement, the Company
declares that its Equity Shares are listed on the Bombay Stock
Exchanges Ltd., Ahmedabad Stock Exchange Ltd., and Madras Stock
Exchange Ltd. The Company confirms that it has paid Annual Listing Fees
due to all the Stock Exchanges for the year 2009-2010.
ACKNOWLEDGEMENT :
Yours Directors express their grateful appreciation for the assistance
and co-operation extended by the Companys shareholders, customers,
Bankers, Suppliers, employees and all other authorities/ stakeholders
during the year and look forward to their continued support in future.
For and on behalf of the Board,
(APOORVA H. SHAH)
Place : Mumbai (Chairman & Director)
Date: 15-10-2010
Registered Office:
D-22/8, MIDC,
TTC Industrial Area, Thane-Belapur Road,
Turbhe, Navi Mumbai
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