DIRECTOR'S REPORT To, The Members, Sobhagya Mercantile Limited. Your Directors have pleasure in presenting the Thirty-first Annual Report with the audited statement of Accounts for the year ended 31st March 2015. Dividend: On account of accumulated losses, your directors regret their inability to recommend payment of dividend for the financial year under review. Transfer to Reserves The Company has not transferred any amount to reserves. Operation: The Company has reported total income of Rs.20,787/- for the current year as compared to Rs.7,066/- in the previous year. The Net Loss for the year under review amounted to Rs. -214060/-in the current year as compared to Rs.-1,15,300/- in the previous year. Material Changes between the date of the Board report and end of financial year. There have been no material changes and commitments, 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. Significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company's operations in future: During the year under review there has been no such significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company's operations in future. Subsidiary Company: As on March 31, 2015, the Company does not have any subsidiary. Statutory Auditor & Audit Report: M/s. Vijay R. Tater & Co., Chartered Accountants, who are the statutory auditors of your Company, hold office until the conclusion of the Thirty-fifth AGM to be held in the year 2019, subject to ratification of their appointment at every AGM. The Members, year on year, will be requested, to ratify their appointment as Auditors and to authorise the Board of Directors to fix their remuneration. The notes on accounts referred to in the Auditors' Report are self-explanatory and therefore do not call for any further explanations/comments. Secretarial Audit Report Pursuant to the provisions of Section 204 of the Companies Act, 2013, the Company has appointed M/s. R.S. Mittal & Co., Company Secretaries to undertake the secretarial audit of the Company for the financial year 2014-15. The Secretarial Audit Report for the financial year ended 31st March, 2015 is attached as Annexure 'I' and forms a part of the reports of the Directors. The observation made by the secretarial auditors in their report are self-explanatory and therefore do not call for any further explanations/comments. Change in the nature of business : There is no change in the nature of the business of the company Director: Shri. Mukesh Nolkha shall be retiring by rotation at the forthcoming Annual General Meeting and being eligible, offers himself for reappointment. The Board of Directors of your Company had co-opted Ms. Sneh Lata Gupta as an Additional director with effect from March 27, 2015, in terms of Section 161 of the Companies Act, 2013 Ms. Sneh Lata Gupta will hold office till the date of ensuing Annual General Meeting of the Company and being eligible offer themselves for re-appointment. Declaration by Independent Directors: All the independent directors have submitted the declaration of independence, as required under Section 149(7) of the Companies Act, 2013, stating that they meet the criteria of independence as provided in Section 149 (6) of Companies Act, 2013. Fixed Deposits: During the period under review, your company has not accepted any deposits as contemplated under the provisions of section 73 of the Companies Act, 2013. There are no deposits unpaid or unclaimed at the year-end. Conservation of Energy, Technology Absorption: Your Company is a Non-Banking Finance Company and is not engaged in manufacturing activity of any kind. The disclosure of information relating to conservation of energy and technology absorption is therefore not applicable to your Company. Foreign Exchange Earning & Outgo: There were no foreign exchange earnings or outgo for your Company during the year. Corporate Social Responsibility: The Company is not required to constitute a Corporate Social Responsibility Committee as it does not fall within purview of Section 135(1) of the Companies Act, 2013 and hence it is not required to formulate policy on corporate social responsibility. Audit Committee The Board of Directors has constituted an Audit Committee and empowered the committee to deal with all such matters which it may consider appropriate to perform as audit committee including items specified in Section 177(4) of the Companies Act, 2013 (as may be modified/amended from time to time) and such matters as may be assigned from time to time by the Board of Directors. There have been no instances of non acceptance of any recommendations of the Audit Committee by the Board during the financial year under review. Nomination And Remuneration Committee The Board constituted Nomination and Remuneration committee. The Committee has formulated a Nomination and Remuneration Policy . Director's Responsibility statement: The Board of Directors acknowledges the responsibility for ensuring compliance with the provisions of Section 134(3)(c) read with Section 134(5) of the Companies Act, 2013 in the preparation of the annual accounts for the year ended 31st March, 2015 and state that: (i) in the preparation of the Annual Account, the applicable Accounting standards have been followed with proper explanation relating to material departures; (ii) they 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 state of affairs of the Company at the end of the financial year and of the profits of the Company for that period; (iii) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) they have prepared the annual accounts on a 'going concern' basis; (v) they have laid down internal financial controls for the company and such internal financial controls are adequate and operating effectively: and (vi) they have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively. Vigil Mechanism In compliance with the requirements of Section 177 of the Companies Act, 2013 and revised Clause 49 of Listing Agreement with the Stock Exchanges, your Company has established a vigil mechanism for the Directors and Employees of the Company through which genuine concerns regarding various issues can be communicated. A Vigil Mechanism under the chairmanship of the Audit Committee Chairman has been constituted. The Policy provides access to the Chairman of the Audit Committee. Risk Management Policy The Company's risk management framework is based on a clear understanding of various risks, disciplined risk assessment and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are continuously benchmarked with group's best practices and guidelines and in line with the local laws and regulations. The Board of Directors has oversight on all the risks assumed by the Company. The business activities are undertaken within this defined policy framework. Company's policy on directors' appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178; In terms of Section 178 of the Companies Act, 2013 and the Listing Agreement, the Nomination and Remuneration Committee oversee the Company's nomination process for the senior management and specifically to identify, screen and review individuals qualified to serve as Executive and Non -executive Directors, Independent Directors consistent with criteria approved by the Board and to recommend, for approval by the Board, nominees for election at the AGM of the shareholders. The Committee has the overall responsibility of approving and evaluating the compensation plans, policies and programs for Directors and the senior management. The Committee further coordinates and oversees the annual self-evaluation of the performance of the Board, Committees' and of individual Directors. Particulars of loans, guarantees or investments under section 186: During the year under review, the Company has not advanced any loans/ given guarantees/ made investments. Particulars of Employee: None of the employee has received remuneration exceeding the limit as stated in rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 Corporate Governance and Management Discussion and Analysis Report: This is not applicable/mandatory as per revised clause 49 of the listing agreement vide SEBI circular CIR/CFD/POLICY CELL/7/2014 dated 15.09.2014. EXTRACT OF THE ANNUAL RETURN IN FORM MGT-9: The details forming part of extract of annual return as per Form MGT- 9 is annexed herewith as Annexure - 'II'. Related Party Transactions: All related party transactions that were entered into during the financial year were on an arm's length basis and were in the ordinary course of business. There were no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. Hence form AOC - 2 is not applicable to the Company. Acknowledgement: Your Directors would like to express their appreciation for co-operation and assistance received from the shareholders, bankers, government authorities and employees during the year under review. On behalf of the Boards of Directors Sd/- Brijmohan Kabra Director sd/- Kaushal Mehta Director Place : Mumbai Dated :31/08/2015 |