Farmax India Ltd
Directors Reports
To the Members,
The Directors have pleasure in presenting before you the Annual Report of the Company
together with the Audited Statements of Accounts for the year ended 31st March,
2016. The Company's performance is summarized below:
FINANCIAL SUMMARY/HIGHLIGHTS, OPERATIONS, STATE OF AFFARIS:
The performance during the period ended 31st March, 2016 has been as under:
|
|
|
(Rs. In Lakhs) |
| Particulars |
Consolidated Results |
Standalone Results |
|
2015-16 |
2014-15 |
2015-16 |
2014-15 |
| Total Income |
1,669.73 |
2,282.97 |
1,669.73 |
2,282.97 |
| Total Expenditure |
2,652.37 |
2,497.33 |
2,647.86 |
2,493.08 |
| Profit before exceptional items and Tax |
(982.64) |
(214.36) |
( 978.13) |
(210.11) |
| Exceptional Item |
- |
- |
- |
- |
| Profit/(Loss) Before Tax |
(982.64) |
(214.36) |
( 978.13) |
(210.11) |
| Less: Extra Ordinary Items |
- |
- |
- |
- |
| Less: Deferred Tax |
- |
- |
- |
- |
| Less: Provision of MAT |
- |
- |
- |
- |
| Net Profit/ (loss) after Tax |
(982.64) |
(214.36) |
( 978.13) |
(210.11) |
| Balance Carried to Balance Sheet |
(982.64) |
(214.36) |
( 978.13) |
(210.11) |
REVIEW OF OPERATIONS:
During the year under review, the Company has recorded an income of Rs. 1669.73 Lakhs
and Loss of Rs. 978.13 Lakhs as against the income of Rs. 2282.97 Lakhs and Loss of Rs.
210.11 Lakhs in the previous financial year ending 31.03.2015.
CHANGE IN THE NATURE OF BUSINESS, IF ANY:
During the period under review and the date of Board's Report there was no change in
the nature of Business.
DEPOSITS FROM PUBLIC:
The Company has not accepted any deposits falling within the meaning of Section 73 of
the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules 2014, during the
financial year under review.
TRANSFER TO RESERVES:
Directors have decided not to transfer any amount to reserves for the year.
DIVIDEND:
Keeping the Company's revival plans in mind, your Directors have decided not to
recommend dividend for the year.
REVISION OF FINANCIAL STATEMENTS:
There was no revision of the financial statements for the year under review.
DISCLOSURES UNDER SECTION 134(3)(l) OF THE COMPANIES ACT, 2013:
There have been no material changes and commitments, affecting the financial position
of the Company which occurred during between the end of the financial year to which the
financial statements relate and the date of this report.
PARTICULARS OF CONTRACTS OR ARRANGEMENT WITH RELATED PARTIES
The details of transactions/contracts/arrangements entered into by the Company with
related party(ies) as defined under the provisions of Section 2(76) of the Companies Act,
2013, during the financial year under review, are furnished in detail somewhere else in
the report (if applicable) and forms part of this Report.
DISCLOSURE UNDER SECTION 43(a)(ii) OF THE COMPANIES ACT, 2013:
The Company has not issued any shares with differential rights and hence no information
as per provisions of Section 43(a)(ii) of the Act read with Rule 4(4) of the Companies
(Share Capital and Debenture) Rules, 2014.
DISCLOSURE UNDER SECTION 54(1)(d) OF THE COMPANIES ACT, 2013:
The Company has not issued any sweat equity shares during the year under review and
hence no information as per provisions of Section 54(1)(d) of the Act read with Rule 8(13)
of the Companies (Share Capital and Debenture) Rules, 2014.
DISCLOSURE UNDER SECTION 62(1)(b) OF THE COMPANIES ACT, 2013:
The Company has not issued any equity shares under Employees Stock Option Scheme during
the year under review and hence no information as per provisions of Section 62(1)(b) of
the Act read with Rule 12(9) of the Companies (Share Capital and Debenture) Rules, 2014.
DISCLOSURE UNDER SECTION 67(3) OF THE COMPANIES ACT, 2013:
During the year under review, there were no instances of non-exercising of voting
rights in respect of shares purchased directly by employees under a scheme pursuant to
Section 67(3) of the Act read with Rule 16(4) of Companies (Share Capital and Debentures)
Rules, 2014.
DETAILS OF SIGNIFICANT MATERIAL ORDERS PASSED BY REGULATORS, COURTS, TRIBUNALS,
IMPACTING THE GOING CONCERN BASIS OF THE COMPANY:
• There were no significant material orders passed by regulators, courts,
tribunals, impacting the going concern basis of the Company.
• During the year the income tax Appellate, tribunal, Hyderabad has passed the
order in favour of the company pertaining to FY 2008-2009 AY 2009-2010.
CORPORATE GOVERNANCE:
A Separate section titled "Report on Corporate Governance" along with the
Auditors' Certificate on Corporate Governance as stipulated under Regulation 34 read with
Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 as a part of this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management discussion and analysis report for the year under review as stipulated under
Regulation 4(3) read with schedule V , Part B of SEBI(Listing Obligations and Disclosure
Requirements), Regulations 2015 with the stock exchange in India is presented in a
separate section forming part of the annual report.
EXTRACT OF ANNUAL RETURN:
As required pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the
Companies (Management and Administration) Rules, 2014, an extract of annual return in MGT
9 as a part of this Annual Report.
APPOINTMENT OF DIRECTORS / CEO / CFO AND KEY MANAGERIAL PERSONNEL:
During the year no Director/CEO/CFO and Key Managerial Personnel appointed.
AUTHORISED AND PAID UP CAPITAL OF THE COMPANY:
The authorized capital of the company stands at 60,00,00,000 /- divided into
60,00,00,000 equity shares of Rs.1/- each and The company's paid up capital at
53,41,71,427 divided into 53,41,71,427 equity shares of Rs 1/- each.
DECLARATION FROM INDEPENDENT DIRECTORS ON ANNUAL BASIS:
The Company has received declarations from Mr. A.V.Rama Raju, Mrs. Priyanka and
Mr.E.Sudheer Reddy, Independent directors of the company to the effect that they are
meeting the criteria of independence as provided in Sub-section (7) of Section 149 of the
Companies Act, 2013 and Regulation 25 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. Annexure - II
DIRECTOR'S RESPONSIBILITY STATEMENT:
In pursuance of section 134 (5) of the Companies Act, 2013, the Directors hereby
confirm 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 had laid down internal financial controls to be followed by the
company and that such internal financial controls are adequate and were operating
effectively.
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.
INFORMATION ABOUT THE FINANCIAL PERFORMANCE / FINANCIAL POSITION OF THE SUBSIDIARIES /
ASSOCIATES:
The Company has one subsidiary company in the name and style as Farmax International
FZE. There were no operations in the FZE for the financial year 2015-2016 The company in
its recently concluded Board Meeting on 13-08-2016 decided to close the subsidiary Farmax
International FZE.
STATUTORY AUDITORS:
M/s. Vijay Sai Kumar & Associates, Statutory Auditors of the company retires at the
ensuing annual general meeting and is eligible for reappointment. As required under the
provisions of Section 139 of the Companies Act, 2013, the Company has received a written
consent from the auditors to their re-appointment and a certificate to the effect that
their re-appointment, if made, would be in accordance with the Companies Act, 2013 and the
rules framed there under and that they have satisfied the criteria provided in Section 141
of the Companies Act, 2013.
The Board recommends the re-appointment of M/s. Vijay Sai Kumar & Associates., as
the statutory auditors of the Company from the conclusion of this Annual General meeting
till the conclusion of the next Annual General Meeting.
INTERNAL AUDITOR:
Mr.Kushinder is the Internal Auditors of the company for the F.Y 2015-16.
SECRETARIAL AUDITOR:
The Board had appointed M/s. S.S.Reddy & Associates, Practicing Company
Secretaries, Hyderabad, having CP No.7478 to conduct Secretarial Audit for the financial
year 2015-16, pursuant to the provisions of Section 204 of the Companies Act, 2013 and
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The
Secretarial Audit Report in Form MR - 3 for the financial year 2015- 16 is enclosed
herewith as Annexure-I to this Report. The Secretarial Audit Report does not contain any
observation or adverse remark.
Pursuant to the provisions of Section 134(3) (f) & Section 204 of the Companies
Act, 2013, Secretarial audit report as provided by M/s. S. S. Reddy & Associates,
Practicing Company Secretaries is annexed to this Report as annexure-I.
AUDIT REPORTS:
(a) Statutory Auditors Report:
The Board has duly reviewed the Statutory Auditor's Report on the Accounts for the year
ended March 31, 2016 and has noted that the same does not have any reservation,
qualification or adverse remarks. However, the Board decided to further strengthen the
existing system and procedures to meet all kinds of challenges that may occur in the
industry.
(b) Secretarial Audit Report:
The Board has duly reviewed the Secretarial Audit Report on the Compliances according
to the provisions of section 204 of the Companies Act 2013 and there are no qualifications
in the report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:
The required information as per Sec.134 of the Companies Act 2013 is provided
hereunder:
A. Conservation of Energy:
The Company's has been adopting Various Measures to conserve Energy
B. Technology Absorption:
1. Research and Development (R&D): NIL
2. Technology absorption, adoption and innovation: NIL
C. Foreign Exchange Earnings and Out Go:
Foreign Exchange Earnings: Rs. NIL
Foreign Exchange Outgo: Rs. NIL
CORPORATE SOCIAL RESPONSIBILTY POLICY:
Since your Company does not have net worth of Rs. 500 Crore or more or turnover of Rs.
1000 Crore or more or a net profit of Rs. 5 Crore or more during the financial year,
section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility is not
applicable and hence the Company need not adopt any Corporate Social Responsibility
Policy.
SECRETARIAL STANDARDS
The company is in compliance with Secretarial Standards issued by The Institute of
Company Secretaries of India on Meetings of the Board of Directors and General Meeting.
INSURANCE: NA
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The company has not given loans or Guarantees during the year under review.
CREDIT & GUARANTEE FACILITIES:
The Company has a Credit facility with SBI Bank to an extent of Rs. 32.86 Cores
.However the same has become NPA.
DISCLOSURE OF INTERNAL FINANCIAL CONTROLS:
The Company has in place adequate internal control systems, which commensurate with its
size, nature of business and complexity of its operations and are designed to provide a
reasonable degree of assurance regarding the effectiveness and efficiency of operations,
the adequacy of safeguard for assets, internal control over financial reporting, and
compliance with applicable laws and regulations. Internal audit function evaluates the
adequacy of and compliance with policies, plans, regulatory and statutory requirements.
The Internal Auditors directly report to the Board's Audit Committee, thus ensuring the
independence of the process. It also evaluates and suggests improvement in effectiveness
of risk management, controls and governance process. The Audit committee and Board
provides necessary oversight and directions to the Internal audit function and
periodically reviews the findings and ensures corrective measures are taken.
RISK MANAGEMENT POLICY:
Your Company follows a comprehensive system of Risk Management. Your Company has
adopted a procedure for assessment and minimization of probable risks. It ensures that all
the risks are timely defined and mitigated in accordance with the well-structured risk
management process.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES:
Particulars of contracts or arrangements with related parties referred to in Section
188(1) of the Companies Act, 2013, in the prescribed Form AOC-2, is appended as Annexure
III to the Board's report.
DISCLOSURE ABOUT COST AUDIT:
Cost Audit is not applicable for the financial year 2015-16.
RATIO OF REMUNERATION TO EACH DIRECTOR:
Under section 197(12) of the Companies Act, 2013, and Rule 5(1)(2) & (3) of the
Companies(Appointment & Remuneration) Rules, 2014, the ratio of remuneration to maiden
employees is 3.49:1. times in case of Mr.M. Srinivasa Reddy.
NON-EXECUTIVE DIRECTORS' COMPENSATION AND DISCLOSURES
None of the Independent / Non-Executive Directors has any pecuniary relationship or
transactions with the Company which in the Judgment of the Board may affect the
independence of the Directors.
INDUSTRY BASED DISCLOSURES AS MANDATED BY THE RESPECTIVE LAWS GOVERNING THE COMPANY
The Company is not a NBFC, Housing Companies etc., and hence Industry based disclosures
is not required.
INDUSTRIAL RELATIONS:
Industrial relations remained cordial during the year. Employees' competencies and
skills were enhanced by exposing them to several internal and external training programs.
Various measures were taken to improve motivation level of employees.
HEALTH & SAFETY:
The Company provides a safe and healthy workplace for its employees by establishing the
right safety culture across the organisation. The senior leadership is fully committed to
the ultimate goal of zero injury to its employees and all stakeholders who are associated
with the Company's operations. Emphasis is laid on creating a participatory safety
governance model.
ENVIRONMENT AND POLLUTION CONTROL:
The Company is well aware of its responsibility towards a better and clean environment.
Our efforts in environment management go well beyond mere compliance with statutory
requirements. The Company has always maintained harmony with nature by adopting
eco-friendly technologies and upgrading the same from time to time incidental to its
growth programs.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013
The Company has in place a Anti-Sexual Harassment Policy in compliance with the
requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013. The Company always endeavors to create and provide an environment
that is free from discrimination and harassment including sexual harassment. The Internal
Complaints Committee (ICC) has been set up to redress complaints regarding sexual
harassment, if any.
The Directors further state that during the year under review, there were no cases
filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013.
|
|
For and on behalf of the Board |
|
|
Farmax India Limited |
|
Sd/- |
Sd/- |
| Place: Hyderabad |
A.V.Rama Raju |
M. Srinivasa Reddy |
| Date: 29.08.2016 |
Independent Director |
Managing Director |
|
(DIN: 01408193) |
(DIN: 00882956) |
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