| Dear Members,
We are pleased to present the 29thAnnual Report together with the
audited financial statements of the company for the financial year
ended March 31, 2015.
OPERATIONAL RESULTS
The summary of the financial performance of the Company for the
financial year ended March 31, 2015 compared to the previous year ended
March 31, 2014 is given below:
(Rs. In lakhs)
PARTICULARS Year Ended Year Ended
31.03.2015 31.03.2014
Net Sales/lncome(including other
income of for FY 2015 4238.75 11006.97
and Rs. 1071.29 for FY2014)
Gross profit/Loss before interest
and depreciation (3870.16) (17495.87)
Finance cost 422,84 1770,31
Profit/Loss before depreciation
and amortization - (4293) (19266.18)
(Cash Profit/Cash Loss)
Depreciation and Amortization 1767.82 2044.48
Profit/Loss before Tax and before
exceptional (6060.82) (21310.64)
Exceptional items -- --
Profit/Loss before Tax (PBT) (6060.82) (21310,64)
Provision for Tax - Current -- --
Provision for Tax - Deferred (727,50) (1312)
Profit/Loss after Tax (5333.32) (19998 64)
Earning per share (26.59) (99.70)
PERFORMANCE HIGHLIGHTS &STATE OF COMPANY'SAFFAIRS
Your Company focuses on providing services to businesses (small, medium
and large) and its offerings include Data Centre & Cloud Hosting
Solutions, Enterprise Messaging &Hosting Solutions and Domain name
registration. Since inception, within a short span of time, your Company
has grown multi-folds and became the largest provider of web hosting
services and domain name registration in India. Powered by a pool of
talented professionals and equipped with latest Technologies, the
Company caters to the Web and Application services, Data Centre and
Cloud Computing services to its clients. However, the slow down of the
world economy has considerably tapered off the growth momentum in almost
all the sectors, including but limited to IT related sectors, on account
of rising inflation, depreciating rupee and higher interest costs.
General stress in the Indian economy had also made it difficult for
companies like us to sustain and achieve the desired targets."
Your company suffered heavily for the last 2 odd years mainly due to
its involvement in the Network Integration business. Not only did this
lead to a high amount bad debts, but was also the main reason for the
high gearing the company took on. Your company is no longer operating
this business segment.
The company has made major inroads into solidifying and securing the
existing profitable business, reducing costs heavily across the board
and concentrating only its core strength areas. Our highly dedicated
employees are working tirelessly to ensure that the company steadily
but surely implements and achieves its revival plan. We can already see
the daylight and are extremely confident of a bounce back to
profitability and further stability form the next financial year.
Your Company, following all the necessary applicable ethical
considerations and best sustainability business model under the current
legal framework of the country, is leading strategically thus
continuously growing its business operations as desired. All its
functions are holistically benefiting all the involved stakeholders
withouteopardizing the interests of one at the cost of other. The
company's operations are running to achieve the desirable economic ends
with all the socially acceptable means. This is very much in consonance
with the current business needs of the company and operational
efficiency along with future growth.
DIVIDEND
In order to conserve the resources of the company for the good future
prospects and growth, and as the Company has suffer loss in the said
reporting period, the Board of Directors taking this view have decided
not to distributed any dividend out of the reserve of the Company and
therefore the Board of Directors of the company has not recommended any
dividend to the shareholders.
SHARE CAPITAL
The paid up Equity Share Capital of the Company as on March 31, 2015
was Rs.20,05,82,500/- comprising of 2,00,58,250 equity shares of
Rs.10/- each. During the year under review, the Company has neither
issued any kind of shares nor granted any stock options. Details of
Director's shareholding have been stated in the annexure.
FINANCE
During the year 2014-15, your company has successfully raised resources
in the form of Long Term and Short term to part finance of the company
besides meeting overall working capital requirements of the company.
The details are as follows:
S. NATURE OF BORROWING AMOUNT (IN LAKHS)
NO
1. Long Term Borrowings form Bank(Secured) 14073.66
2. From Others &Fixed Deposits (unsecured) 1433.80
DEPOSITS
Due to certain circumstances beyond the control of the company and
management, the Company had suffered massive losses and has been
suffering from severe financial crunch since about 2 years now and is
having a tough liquidity position at the moment as well. This all had
led the Company into defaults in repayment of deposits since August
2013, and the Company had stopped accepting deposits thereafter.The
company has filed a repayment and revival scheme with the honorable
Company Law Board and is following their directions from time to time.
SUBSIDIARIES
S. NAME DETAIL
NO
1 NET 4 COMMUNICATIONS LTD CIN:U72900WB2005PLC104025
Date of I ncorporation:05/07/2005
Registered office:3rd Floor Unit
3E 20B Abdul
Hamid street, Kolkata,
West Bengal
2 Net4 Network Services Limited CIN: U72200DL2011PLC219357
Date of Incorporation: 18/05/2011
Registered office:303A Third
Floor, Plot N Pocket H Market
SaritaVihar, Delhi-110076
3. Pipete Communications Private CIN: U64200DL2009PTC193950
Limited Date of I ncorporation:04/09/2009
Registered office: 139-A-1 S/F
Mohammadpur, New Delhi-110061,
4. Net4 HK Limited Certificate of Incorporation:
1598959
Date of Incorporation: 11/05/2011
Registered office: Honkong
Pursuant to the circular dated February 8, 2011 issued by Ministry of
Corporate Affairs, Government of India and Section 136 of the Companies
Act, 2013, which has exempted companies from attaching the financial
statements of the subsidiary companies along with the Annual Report of
the Company. The Company will make available the annual financial
statements of the subsidiary company and the related detailed
information to any members of the company on receipt of a written
request from them at the Registered Office of the Company. The annual
financial statements of the subsidiary company will also be kept open
for inspection at the Registered Office of the Company on any working
day during business hours. The Consolidated Financial Statements
presented by the Company include financial results of its subsidiary
companies, associates etc. Details regarding subsidiaries have been
provided in Form AOC-1 attached as per annexure 3.The statements are
also available on the corporate website of the Company www.net4.in
CONSOLIDATED FINANCIAL STATEMENTS
Your Directors have pleasure in attaching the Consolidated Financial
Statements pursuant to Clause 32 read with Clause 41 of the Listing
Agreement entered into with the Stock Exchanges and prepared in
accordance with Accounting Standard 21 (Consolidated Financial
Statements) of Institute of Chartered Accountants of India, for
financial year ended March 31, 2015.
MANAGEMENT DISCUSSION AND ANALYSIS
In terms of Clause 49 of the Listing Agreement of the Stock Exchanges,
the detailed review of the operations, performance and future outlook
of the Company and its business is given in the Management's Discussion
and Analysis Report which forms part of this Annual Report. The report
on Management's Discussion and Analysis is annexed as per annexure 4
with the Report.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, a compliance report on Corporate Governance has been annexed
as part of the Annual Report along with Auditor's certificate for the
compliance.
SECRETARIAL AUDIT REPORT
In line with the requirement of Section 204 of the Companies Act, 2013
and the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 read with other applicable provisions, if any;
the Board of Directors of the Company had appointed M/s Abnish Kumar &
Associates, Practicing Company Secretary to conduct Secretarial Audit
of the Company for the financial year 2014-15. The Secretarial Audit
Report for the financial year ended March 31, 2015 is annexed with the
Board's report and formed as part of the Annual Report.
The Secretarial Auditors' remarks are taken note of and the Company is
trying its level best to come out of this hardship and will try to
adopt reasonable steps for proper compliance of all the laws,
committees applicable on our Company.
LISTING/DELISTING OF THE EQUITY SHARES
The equity shares of your Company are listed at the National Stock
Exchange (NET4) the Bombay Stock Exchange (Scrip Code: 532912) and
Delhi Stock Exchange (Scrip Code: 113089).The annual listing fees for
the year 2014-15 have been paid to all these Stock Exchanges.
DIRECTORS
Mr.asjit Singh Sawhney, Mr. Amarjit Singh Sawhney and Mr. Surya S.
Chadha continue to act as the directors of the Company.
Resignation of Company Secretary:-
Ms. Nandita goel,Company Secretary and the Compliance Officer of the
company had resigned from the position as such with effect from 15th
May, 2014.
Ms. Khushboo Mehndiratta, Company Secretary and the Compliance Officer
of the company appointed with effect fromune 5, 2014 had resigned
from the position as such with effect from 29th September, 2015.
Appointment of Company Secretary:-
Ms. Nidhi Singh has been appointed as a Company Secretary and the
Compliance Officer of the company in place of Ms. Khushboo Mehndiratta
with effect from 17th December, 2014.
MEETING OF THE BOARD
During the financial year 2014-15, 06 (Six) meetings i.e. 06.06.2014,
12.06.2014,14.08.2014, 06.12.2014,10.12.2014,14.02.2015of Board of
Directors of the Company were held andthe intervening gap between the
Meetings was within the period prescribed under the Companies Act,
2013 (i.e., the maximum interval between any two board meeting did not
exceed 120 Days),Details of the Meetings (Number of the Director
present etc) is mention in Corporate Governance Report a part of Annual
Report.
BOARD EVALUATION
As per the provisions of Section 149 read with Schedule IV of the
Companies Act, 2013 read with Clause 49- ll-B(5),the Independent
Directors shall conduct a separate meeting to review the performance of
Non-Independent Directors. But the Company has not complied with the
above said provisions as the Company does not have independent
Directors at their Board due to the immediate and consecutive
resignation of all the independent directors, the Composition of Board
has been traumatized. However, the management is concerning the issue
and is taking appropriate steps to revive the Board's Composition.
NOMINATION AND REMUNERATION COMMITTEE AND REMUNERATION POLICY
The Board does not have a Nomination & Remuneration Committee for
selection and appointment of Directors, Senior Management and their
remuneration as per Section 178 of the Companies Act, 2013 and rule 6 of
the Companies (Meetings of Board and its Powers) Rules, 2014 and read
with clause 49(IV) of the Listing Agreement due to non availability of
independent directors.
EXTRACTS OF ANNUAL RETURN
The Extract of Annual Return in Form MGT-9 pursuant to Section 92(3) of
the Companies Act, 2013 and Rule 12 of the Companies (Management and
Administration) Rules, 2014 for the financial year 2014-15 has been
enclosed with this report in ANNEXURE-1
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Section 135 of the Companies Act, 2013 is not applicable on your
Company as the company has suffered Losses
BUSINESS RESPONSIBILITY REPORTING
As per Clause 55 of the Listing Agreement with the Stock Exchanges,
listed companies shall submit, as part of their Annual Reports,
Business Responsibility Reports, describing the initiatives taken by
them from an environmental, social and governance perspective, in the
prescribed format. This clause 55 has been inserted pursuant to SEBI
circular No. CIR/CFD/ DIL/8/2012 dated August 13, 2012 and clause is
applicable to top 100 listed companies (based on market capitalization
as on March 31, 2012). Hence, this clause is not applicable to your
company.
AUDIT COMMITTEE
Audit Committee of the Board has not been constituted as per Section
177 of the Companies Act, 2013 and rule 6 of the Companies (Meetings of
Board and its Powers) Rules, 2014 and read with clause 49(lll) of the
Listing Agreement due to the immediate and consecutive resignation of
all the independent directors, the Composition of Committee cannot be
made However, the management is extremely concernedabout the issue and
is taking appropriate steps to revive the Board's Composition so that
the Company can make the appropriate Committees as per the provisions
of the Companies Act 2013.
STAKEHOLDERS RELATIONSHIPCOMMITTEE AND VIGIL MECHANISM / WHISTLE BLOWER
POLICY
The Stakeholders Relationship Committee has not been constituted as per
section 178 (5) of the Companies Act, 2013 read with Clause 49
(VIII)(E)(4) of the Listing Agreement, the reasons for non-composition
of stakeholders relationship committee as same as mentioned under the
above head of Audit Committee. Further the Vigil Mechanism / Whistle
Blower Policy was also not formulated by the Company but the Company
will soon appoint the Independent director and Constitute committees.
RELATED PARTY TRANSACTIONS
During the year, the Company has entered into transactions with related
parties as defined under Section 2(76) of the Companies Act, 2013 which
were in the ordinary course of business and on arm's length basis and
in accordance with the provisions of the Companies Act, 2013, Rules
issued thereunder and Clause 49 of the Listing Agreement. During the
year, there were no transactions with related parties which qualify as
material transactions under the Listing Agreement.
The details of the related party transactions as required under
Accounting Standard -18 are set out in Notes to the financial
statements forming part of this Annual Report.
The Disclosure required in Form AOC-2 pursuant to Section 134 (3)(h)
read with Rule 8(2) of the Companies (Accounts) Rules, 2014 is NIL.
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.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS & 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 are given in Annexure -1 forming part of this Report.
MANAGERIAL REMUNERATION & PARTICULARS OF EMPLOYEES
The information required pursuant to Section 197 read with Rule 5 of
The Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 in respect of employees of the Company, will be provided
upon request. In terms of Section 136 of the Act, the Report and
financial statements are being sent to the members and others entitled
thereto, excluding the information on employees' particulars which is
available for inspection by the members at the Registered Office of the
Company during business hours on working days of the Company up to the
date of the ensuing Annual General Meeting. If any Member is interested
in obtaining a copy thereof, such Member may write to the Company in
this regard.
Considering the current financial position of the company and their
limited involvement, the company has not paid remuneration to any of
its directors.
DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION & REDRESSAL) ACT 2013
Your Company is committed to creating and maintaining a secure work
environment where its employees, agents, vendors and partners can work
and pursue business together in an atmosphere free of harassment,
exploitation and intimidation. To empower women and protect women
against sexual harassment, a policy for prevention of sexual harassment
has been rolled out and Internal Complaints Committee as per legal
guidelines has been set up. This policy allows employees to report
sexual harassment at the workplace. The Internal Committee is empowered
to look into all complaints of sexual harassment and facilitate free
and fair enquiry process with clear timelines.
AUDITORS AND AUDITORS REPORT
Your Company s auditors, M/s Sandy Associates, Statutory Auditors of
the Company was appointed for the period of 5 years in the Annual
general Meeting of the Company held on 30.09.2014 subject to the
ratification at every Annual General Meeting. They have confirmed
their eligibility under Section 141 of the Companies Act, 2013 and the
Rules framed thereunder for re-appointment as Auditors of the Company.
As required under Clause 49 of the Listing Agreement, the auditors have
also confirmed that they hold a valid certificate issued by the Peer
Review Board of the Institute of Chartered Accountants of India. The
Board recommends their re-appointment.
Directors Reply on Auditors Remarks
a. ) During the financial year 2013-14 the Company had defaulted in
repayment of principle and interest thereon of Term Loan from State Bank
of India. Working Capital Loans taken from State Bank of India. State
Bank of Travancore and Loan against FDR from Canara Bank. All the loans
had been classified as Non-Performing Assets (NPA) by these banks. The
status of these loans & credit facilities has remained the same during
the current financial year. The Management believes that it was a wrong
Calculation from the Banks end and the date at which the account was NPA
was incorrect. The SBI had not Extended facility as per accorded in the
Sanctioned Letter potentially Leading to alleged Defaults. The same is
the case with SBt and further SBT has not Quantified and cleared the
Position as to Security Deposit amounting to Rs 3.75 Cr. held by them
for the Company against its Loan. With ref to Canara Bank, the
management believes that this loan has been settled with the 100%
security Deposit held with Canara Bank.
b. ) Income Tax demand of Rs.132.78Lacs (Approx.) from AY 2004-05 to AY
2011-12 not deposited and appeals have been filed or in the process of
filing.
The company believes the demand is unjust and inaccurate and has
accordingly filed appeals in the matter
c. ) Service Tax Amounting to Rs.8.33Crores (net) (Approx.) upto 31st
March 2015 not deposited. Company believes that there is pending an
accurate Calculation of CENVAT Credit and this will reduce the pending
amount significantly. Further to this the Company has been paying more
than its accruing liability on a consistent basis over the last 2 years
and working to extinguish the liability at the earliest. The company has
paid service tax amounting to Rs. 6,48,52,070/- in the last 2 years.
d. ) Provident Fund and ESI amounting to Rs.59.13Lacs (Approx.) upto
31st March, 2015 not deposited. The Company has now paid of the complete
liability of the Financial year 2014-15
e. ) TDS amounting to Rs.68.59 Lacs(Approx.) as on 31st March 2015 not
deposited. The Company has deposited TDS amounting to Rs. 46 lakh approx
f. ) VAT liablity for certain branches still to be deposited. . The
Company has deposited VAT amounting to Rs. 21,413/- and believes that
any other demands are unjustified and incorrect.
g. ) Fixed Deposit amounting to Rs.13.77 crore (approx.) were due for
repayment as on 31st March, 2015. The Company has filed a Fixed deposit
Scheme in CLB for Repayment to FD holders, and the company is following
the instructions of Company Law Board from time to time. Pursuant to the
instruction of the CLB and even including payments made otherwise, the
company has cleared approximately Rs 3.8 Cr. of its Fixed Deposit
Liability, as above.
The company has written off bad debts amounting to Rs. 13.78Crores
(Approx.) The company has no security for these debts. On the basis
that no security has been obtained and no cash has been received on
these debts, the company has written off bad debts thereby reducing the
profit for the year (if any) and net assets at 31st March by that
amount.
"As enumerated above, the losses the company suffered were mainly
caused due caused due to acute recession/down turn in the market and
liquidity enviiroment starting 2012-2013. The difficulties were further
complicated by slow recovery of the dues from the customers. A large
number of customers also refused to pay on account of some or the other
product and service deficiency or non conformity with the order. Some
of these were due to the service and implementation deficiencies caused
by the acute shortage of manpower and the company has had to
consequently book these and other non recoverable amounts as bad
debts."
OTHER MATTERS
As per statutory records produced before us and explanations given to
us, our comment as follows:
(i) There were no Independent Directors in the company leading to
non-compliance of the provisions of the listing Agreement as well as
the Companies Act 2013.
The Company had already published the advertisement twice in the
newspapers in the recent past, concerning inviting candidature for the
appointment of Independent director. However, we have not yet received
the appropriate candidature for the same. Also, the Company is lacking
in receipt of director's candidatures, in quantum, for being appointed
on the Board of the Company.
The reason behind the lack in receipt of director's candidature would
probably be the concerning financial position of the Company and other
ongoing numerous issues/cases therein.The company is going through an
extremely tough financial position since more than two years and has
suffered heavy losses.
In the backdrop of the above, the director's, independent or otherwise,
might not find their position comfortable; and thus, the company is not
receiving the candidature for the position as such.
We however, submit that the Company is consistently trying to appoint
suitable candidature on the Board of the Company at the earliest and
have already taken step in compliance thereof by publishing the
advertisements as specified above and are continually stepping ahead
for recruiting the suitable candidature.
We are endeavoring hard for the appointment of the suitable candidature
and as soon as we find the suitable candidature, we'll make the
appointment with no delays.
(ii) There was no Woman Director in the Board of Directors of the
company, leading to non-compliance of the applicable provision. The
Company has appointed a woman Director on October 30 2015 (in) There was
no Audit Committee for the year. Due to the Sudden Resignation of all
the Independent Directors, the company could not Constitute an audit
Committee
(iv) There was no Nomination and Remuneration Committee for the year.
Due to the Sudden Resignation of all the Independent Directors, the
company could not Constitute the said vommittee
(v) There was no Risk Management Committee for the year. Due to the
Sudden Resignation of all the Independent Directors, the company could
not Constitute the said Committee
(vi) There was no Shareholder's & Investor Grievance Committee for the
year. Due to the Sudden Resignation of all the Independent Directors,
the company could not Constitute the said Committee y
(vii) There was no Internal Auditor for the year. Due to the resignation
of the Internal auditor the position was vacated however the company
shall appoint the same with no delays
h. ) Non-Compliance of provisions relating to public deposit i.e.as per
the requirements of Company (Acceptance of Deposit) Rules, 1975 a
company has to deposit or invest at least 15% of its deposits maturing
during the financial year latest by 30th April 2014. This requirement
has not been complied by the company. Due to the tough financial
position The company has filed the repayment scheme to CLBfor Repayment
to FD holders, and the company is following the instructions of Company
Law Board from time to time. Pursuant to the instruction of the CLB and
even including payments made otherwise, the company has cleared
approximately Rs 3.8 Cr. of its Fixed Deposit Liability.
(viii) The company has litigationsfiled against it under various counts
like under section 138 of Negotiable Instrument Act, Arbitration,
petition filed by ex-employee for recovery of dues, winding up
petition, etc. The number of cases is large although the exact number
of cases was not made available to us. /As per available information &
explanation provided by the management, the quantum of amount on these
cases cannot be ascertained. The Company is making all its efforts to
make the Settlement with the genuine Debt holders
(ix) The company had received winding up order from the Court on the
basis of a petition filed by 2 companies due to non-repayment of loans.
However, the company has obtained stay order from the court on the
basis of repayment schedule submitted before it. The Court has stayed
this order subject to payment of Rs. 25 Lacs in 4 weeks out of which
Rs. 10 Lacs was paid immediately and for the balance, the company has
time till 17thune, 2015.This observation is incorrect, as, although
the company had received the winding up order dated 23.04.2015 it was
not a part of the period under review. Be that as it may, the Company
had appealed the decision and received a stay order dated 18.05.2015
and has paid Rs. 45 lacs in compliance of the order of the Hon'ble high
Court which is 9 lacs more than the actual liability. The matter is
under consideration by the Court.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. The Company has not accepted any deposits from the public covered
under section 73to 76 of the Companies Act, 2013 during the year.
However, public deposits were accepted in earlier years. Earlier,
deposits were governed by the provisions of Sections 58A of the
Companies Act, 1956 and the rules framed thereunder relating to the
deposits accepted, same were, wherever applicable, have not been
complied with. The company has defaulted in repayment of principal and
interest thereon w.e.f. August 2013. During the financial year 2014-15,
the company has paid amount of principle & interest of Rs. 25.34 Lac
(approx.). Total amount payable (due plus overdue amount) as on
31.03.2015 was Rs.13.77 Crore (approx.).
i. ) Fixed Deposit amounting to Rs.13.77 crore (approx.) were due for
repayment as on 31st March, 2015. Due to the tough financial position
The company has filed the repayment scheme to CLB for Repayment to FD
holders, and the company is following the instructions of Company Law
Board from time to time. Pursuant to the instruction of the CLB and even
including payments made otherwise, the company has cleared approximately
Rs 3.8 Cr. of its Fixed Deposit Liability.
2, The accumulated losses of the company at the end of the financial
year are more than the net worth and also it has incurred cash loss
during the financial year covered by our audit and in the immediately
preceding financial year.
The Company has significantly reduced Cost of Operation through various
means, including by Outsourcing Infrastructural and Technical activity
in order to reduce cost of sales and concentrate on widening customer
sales. The company's revival plan is on track and it is confident that
it will bridge the gap to settle genuine outstanding liabilities in the
not too distant future.
3 According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from bank or
financial institutions. Terms loans, other credit limits and loan from
financial institutions were unpaid and the dues have been classified as
Non-Performing Assets (NPA) by the banks.
The Management believes that it was a wrong Calculation from the Banks
end and the date at which the account was NPA was incorrect. The SBI
had not Extended facility as per accorded in the Sanctioned Letter
potentially Leading to alleged Defaults. The same is the case with SBt
and further SBT has not Quantified and cleared the Position as to
Security Deposit amounting to Rs 3.75 Cr. held by them for the Company
against its Loan. With ref to Canara Bank, the management believes that
this loan has been settled with the 100% security Deposit held with
Canara Bank.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed during the financial
year 2014 - 2015 by the Regulators / Courts which would impact the
going concern status of the Company and its future operations..
DIRECTORS' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanations obtained by them and also based on the
representations received from the Operating Management, your directors
make the following statement in terms of Section 134 (3) (c) of the
Companies Act, 2013 that:
a. in the preparation of the annual accounts for the financial year
ended March 31, 2015, the applicable accounting standards have been
followed along with proper explanation relating to material departures,
if any;
b. such accounting policies as mentioned in the Notes to the Financial
Statements have been selected and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the
Company as at March 31, 2015 and of the profit and loss of the Company
for the financial year ended March 31, 2015;
c. the proper and sufficient care has been taken by them 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 financial year ended March 31, 2015
have been prepared by them on a going concern basis;
e. proper Internal financial controls have been followed by the
company and that such internal financial controls are adequate and were
operating effectively; and
f. proper systems to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating
effectively.
ACKNOWLEDGEMENT
The Directors express their gratitude to Financial Institutions, Banks,
and various other agencies for the co-operation extended to the
Company. The Directors also take this opportunity to thank the
shareholders, customers, suppliers, lenders, distributors and other
stakeholders for the confidence reposed by them in the Company. The
employees of the Company contributed significantly in achieving the
results. The Directors take this opportunity of thanking them and hope
that they will maintain their commitment to excellence in the years to
come.
By Order of the Board
Sd/-
Amarjit Singh Sawhney
Director
DIN 00110823 | 