To
The Members,
Mahadushi International Trade Limited
The Directors have pleasure in presenting the 24th Directors’ Report of your Company together with Audited Statement of Accounts and the Auditors’ Report of your Company for the financial year ended, 31st March, 2018.
FINANCIAL SUMMARY OR HIGHLIGHTS/PERFORMANCE OF THE COMPANY
The highlights of financial results of your Company are as follows:
|
Particulars
|
For the Financial year ended as on 31st March, 2018
|
For the Financial year ended as on 31st March, 2017
|
|
Amount (in Rs.)
|
Amount (in Rs.)
|
|
Income
|
8,191,255
|
17,330,448
|
|
Less: Expenditure
|
8,126,985
|
16,982,059
|
|
Profit/(Loss) before taxation
|
64,270
|
348,389
|
|
Less: Current Tax
|
16,318
|
79,798
|
|
Deferred tax / Deferred tax adjustment
|
29755
|
-
|
|
Net profit/ (Loss) after taxation
|
18197
|
268,591
|
During the year under review, the Company’s income is Rs. 8,191,255/- as against income of Rs. 17,330,448/-in 2016-17. The net profit after tax during the year has been Rs. 18,197/-as against the net profit of Rs 268,591/- in the previous year.
DIVIDEND
The Directors have not recommended any dividend for the financial year 2017-18 for growth requirement and expansion of the business.
RESERVE AND SURPLUS
As on 31st March, 2018, Rs. 18,197 /- is being transferred to the Amount of Reserve and Surplus as the current year profit.
CHANGE IN THE SHARE CAPITAL
During the period under review, no change in share capital of the company CHANGE IN THE NATURE OF BUSINESS
During the year, the Company has not changed its nature of business.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
There have been no material changes and commitments which can affect the financial position of the Company occurred between the end of the financial year of the Company and date of this report.
DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS
The Company has a formal system of internal control testing which examines both the design effectiveness and operational effectiveness to ensure reliability of financial and operational information and all statutory / regulatory compliances. The Company has a strong monitoring and reporting process resulting in financial discipline and accountability.
RISK MANAGEMENT POLICY
The Company has devised and implemented a mechanism for risk management and has developed a Risk Management Policy.
PARTICULARS OF EMPLOYEES AND OTHER DISCLOSURE
The prescribed particulars of Employees 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 given herein below:
The information required pursuant to Section 197(12) read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of Employees of the Company, will be provided on request. In terms of Section 136 of the Act, the reports and accounts are being sent to the members and others entitled thereto, excluding the information on employees particulars mentioned in rule 5(2) of the said rule which is available for inspection by the Members at the Registered Office of the Company during the business hours on working days of the Company upto the date of ensuing Annual General Meeting. If any Member is interest in inspecting the same, such Member may write to the Compliance officer in advance.
DETAILS PERTAINING TO REMUNERATION 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
|
Sr. No.
|
Name of Director/KMP and Designation
|
|
Remuneration of Director/ KMP for FY 2017-18(Rs. In Lakhs)
|
|
% increase in Remuneration in FY2017-18**
|
Ratio of Remuneration of Director to Median Remuneration of employees
|
|
Ratio of Remuneration of Director to Median Remuneration of Employees
|
|
|
1.
|
Mr. Raju Yadav, Whole Time Director
|
Nil
|
N.A.
|
N.A.
|
N.A.
|
The number of permanent employees as on 31st March 2018 was 2.
Average of remuneration of employees excluding KMPs - Nil
No employee’s remuneration for the year 2017-18 exceeded the remuneration of any of the Directors.
Company’s performance has been provided in the Directors’ Report which forms part of the Board Report.
The key parameter for the variable component of key managerial personnel(s) is linked with Company performance and Individual performance.
The remuneration of Directors, KMPs and other employees is in accordance with the Remuneration Policy of the Company.
STATEMENT CONTAINING THE PARTICULARS OF EMPLOYEES IN ACCORDANCE WITH SECTION 197 OF THE COMPANIES ACT, 2013 READ WITH RULE 5 OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 AND FORMING PART OF DIRECTORS’ REPORT FOR THE FINANCIAL YEAR ENDED MARCH 31, 2018 -NOT APPLICABLE
DEPOSITS
The Company has not accepted deposit from the public falling within the ambit of Section 73 of the Companies Act, 2013 and The Companies (Acceptance of Deposits) Rules, 2014. No amount of principal or interest was outstanding as on the date of Balance Sheet.
STATE OF COMPANY AFFAIRS:
The Company is complying with all the applicable laws and provisions and there is no adverse action against the business operations of the Company.
NAME OF THE COMPANIES WHICH HAVE BEEN BECOME OR CEASED TO BE ITS SUBSIDIARIES AND ASSOCIATE COMPANIES DURING THE YEAR
Since the Company has no subsidiaries as on 31st March, 2018, provision of section 129 of the Companies Act, 2013 is not applicable.
STATUTORY AUDITORS
M/s. G.P.KESHRI & ASSOCIATES , Chartered Accountants, Statutory Auditors of the Company, Chartered Accountants, to the effect that their appointment, if made, would be in accordance with the Act and that they are not disqualified for such appointment. The Company has received letters from Auditor to the effect that their ratification, if made, would be within the prescribed limits under Section 141(3)(g) of the Companies Act, 2013 and that they are not disqualified.
AUDITORS’ REPORT
The Notes on Financial Statements referred to in the Auditors’ Report are self-explanatory and therefore, in the opinion of the Directors, do not call for further comments.
EXTRACT OF THE ANNUAL RETURN
The extract of the annual return in form no. MGT - 9 has been annexed to the Report, as Annexure A.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars as required under the provisions of Section 314(3)(m) of the Companies Act, 2013 read with Rule 8(3) of The Companies (Accounts) Rules, 2014 in respect of Conservation of Energy and Technology Absorption have not been furnished considering the nature of activities undertaken by the Company during the year under review.
There was no foreign exchange earning & outgo during the financial year under review.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
During the year under review, the Company is not required to comply with the provisions related to Corporate Social Responsibility on the basis of its financial statement.
DIRECTORS & COMMITTEES:
a) Changes in Directors and Key Managerial Personnel
During the year under review, Mr. Chandan Mandal was appointed as the Additional Director of the company w.e.f. 26.03.2018, and Mr. Dharmendra and Mrs. Radhika Thapliyal had resigned from the directorship of the company w.e.f. 26.03.2018.
Except above, there is no change in the composition of Board of Director of the company during the financial year under review.
b) Declaration by an Independent Director(s) and re- appointment, if any
All Independent Directors have given declaration that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, and Listing Agreement.
c) Formal Annual Evaluation
Pursuant to the provisions of companies Act, 2013, the Board has carried out annual performance evaluation of its own performance, the directors individually as well the evaluation of the working of its Audit, Nomination & Remuneration and Stakeholder Relationship Committee.
SEXUAL HARASSMENT:
The Company has zero tolerance for Sexual Harassment at workplace and has adopted a Policy on prevention of Sexual Harassment in line with the provisions of Sexual Harassment of Woman at Workplace (Prevention, Prohibition and Redresssal) Act, 2013 and the Rules made there under. There was no complaint on sexual harassment during the year under review.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS AND THEIR COMMITTEES. a. BOARD MEETINGS
During the year Six (6) Board Meetings were convened and held. The details of which are given below. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.
28th May, 2017, 10th August, 2017, 02nd September, 2017, 13th November, 2017, 14th February, 2018 and 26thMarch, 2018,
COMPOSITION AND MEETINGS OF AUDIT COMMITTEE
The Composition and terms of reference of the Committee satisfy the requirements Section 177 of the Companies Act, 2013. Audit Committee met 4 times during the financial year 2017-18 on 29.05.2017, 10.08.2017, 13.11.2017, and 14.02.2018 following is the composition:
As on 31st March, 2018, the Composition of Audit Committee is as follows:
|
Name of Member
|
|
Designation
|
|
Category
|
|
Mr. Amar Sharma
|
|
Chairman
|
|
Non Executive and Independent Director
|
|
Mr. Chandan Mandal
|
|
Member
|
|
Non Executive and Non Independent Director
|
|
Mr. Raju Yadav
|
|
Member
|
|
Whole Time Director
|
COMPOSITION AND MEETINGS OF STAKEHOLDER RELATIONSHIP COMMITTEE
The Composition and terms of reference of the Committee satisfy the requirements Section 178 of the Companies Act, 2013. Stakeholder Relationship Committee met 4 times during the financial year 2017-18 on 29.05.2017, 10.08.2017, 13.11.2017, and 14.02.2018 following is the composition:
|
Name of Member
|
|
Designation
|
Category
|
|
Mr. Amar Sharma
|
|
Chairman
|
Non Executive and Independent Director
|
|
Mr. Chandan Mandal
|
|
Member
|
Non Executive and Non Independent Director
|
|
Mr. Raju Yadav
|
|
Member
|
Whole Time Director
|
NOMINATION & REMUNERATION COMMITTEE & ITS POLICY
The Company has duly constituted Nomination and Remuneration Committee to align with the requirements prescribed under the provisions of the Companies Act, 2013. The Nomination and Remuneration Committee met 4 times during the financial year 2017-18 on 29.05.2017, 02.09.2017, 13.11.2017, and 26.03.2018 following is the composition:
The details of the Composition of the Nomination and Remuneration Committee are given below:
|
Name of Member
|
Designation
|
Category
|
|
Mr. Amar Sharma
|
Chairman
|
Non Executive and Independent Director
|
|
Mr. Chandan Mandal
|
Member
|
Non Executive and Non Independent Director
|
|
Mr. Raju Yadav
|
Member
|
Whole Time Director
|
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM FOR DIRECTORS AND EMPLOYEES
During the year, as per Section 177(9) read with Rule 7(1) of The Companies (Meeting of Board and its Powers) Rules, 2014, Company is required to establish a Vigil Mechanism for its Directors and employees. In order to ensure that the activities of the Company and its employees are conducted in a fair and transparent manner by adoption of highest standards of professionalism, honesty, integrity and ethical behavior the company has adopted a vigil mechanism policy. This policy has been posted on the website of company.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
During the year, Company has not provided Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013.
FAMILIARIZATION PROGRAMME
The Company at its various meetings held during the Financial year 2017-18 had familiarize the Independent Directors with regard to the roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, the Business models of the Company etc. The Independent Directors have been provided with necessary documents, reports and internal policies to familiarize then with the Company’s policies, procedures and practices.
Periodic presentations are made to the Board and Board Committee meeting on Business and performance updates of the Company, Business strategy and risks involved.
Quarterly updates on relevant statutory changes and judicial pronouncements and encompassing important amendments are briefed to the Directors.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
The Company has no material significant transactions with its related parties which may have a potential conflict with the interest of the Company at large. The details of transactions with the Company and related parties are given for information under notes to Accounts.
MANAGERIAL REMUNERATION POLICY
Provisions relating to Managerial Remuneration as per Section 197 read with Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 The Board has on the recommendation of the Nomination & Remuneration Committee framed a Policy for Selection and appointment of Directors, Senior management and their Remuneration
REMUNERATION POLICY
Provisions relating to Managerial Remuneration as per Section 197 read with Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 The Board have on the recommendation of the Nomination & Remuneration Committee framed a Policy for Selection and appointment of Directors, senior management and their Remuneration.
SECRETARIAL AUDIT REPORT AND EXPLANATION TO THE QUALIFICATIONS REPORTED IN THE REPORT
Provisions relating to Secretarial Audit as per Section 204 read with Rule 9 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company have appointed M/s. Priyanka G & Associates, Company Secretaries, to undertake the Secretarial audit of the Company for the Financial Year 2017-18. The report is annexed herewith as Annexure B.
With respect to the qualifications, the Company is searching the best candidate for the post of Company Secretary and Chief Financial officer, and would try to intimate and file the required information/ compliances timely.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATIONS IN FUTURE
No significant and material orders have been passed by the regulators or courts or tribunals, impacting the going concern status and company’s operations in future.
HUMAN RESOURCES INDUSTRIAL RELATIONS:
The takes pride in the commitment, competence and dedication shown by its employees in all areas of Business.
The Company is committed to nurturing, enhancing and retaining top talent through superior Learning and Organizational Development. This is a part of Corporate HR function and is a critical pillar to support the Organization’s growth and its sustainability in the long run.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors’ Responsibility Statement referred to in clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, shall state that -
(a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) The directors had prepared the annual accounts on a going concern basis; and
(e) The directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively. - NOT APPLICABLE
(f The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
ACKNOWLEDGEMENTS
Your Directors place on record their gratitude for the continuing support of Shareholders, employees, bankers and Business associates at all levels.
For and on behalf of the Board
Negotium International Trade Limited
(Formerly Known as Mahadushi International Trade Limited)
Sd /- Sd/-
Raju Yadav Chandan Mandal
Director Director
Date: 23.08.2018 DIN: 06692750 DIN: 08091815
Place: New Delhi
| 