Director’s Report Dear Members, Your Directors have pleasure in presenting their 24th Annual Report of the Company together with the Audited Accounts of the Company for the financial year ended as on 31.03.2016. Financial Results: The financial results of the Company for the year under review are summarized as under. Dividends: No dividend was considered by the Director for the year. Operations: No major changes in the operation of the company for the reported year. Deposits: The Company has not accepted any deposits from public in the year under review. Management Discussions and analysis forming part of Director’s Report: Factors effecting demand and supply of stone industry: The World Bank on recently projected that India will grow by a robust 7.8 per cent in 2016 and 7.9 per cent in the next two years. World Bank also predicted that India will be the fastest growing economy in the world in the next three years. In the year 2015, Indian real estate sector witnessed regulatory changes that included relaxing of foreign direct investment laws and the Union Cabinet approving the much awaited Real Estate Bill. Everyone sees it as a positive move for the sluggish real estate sector. Realty experts believe that the year 2016 will begin on a positive note for the sector and may witness a pick up in sales with an improvement in the number of unsold inventories. The past two years reveal that the market has been adjusting to new trends in terms of aligning supply with relevant demand. Sales have been low throughout the past 4-5 quarters on account of low sentiment. There are many factors such as stagnant growth in prices, lower ticket size of apartments (also resulting from smaller unit sizes), consistent fall in interest rates through 2015 – and, more broadly, an overall improvement in macroeconomic factors. Given these factors at play, 2016 could witness a more balanced demand-supply equation that should bring down unsold inventories across major cities to a more sustainable level. The budget announcement on allowing 100 per cent deduction for profits to housing projects building homes up to 30 sq metres in the four metro cities and 60 sq metres in other cities is likely to spur supply of affordable homes, demand for which makes for almost 90 per cent of the demand for homes in India. Impact of Government Policy on the Industry: The main end user for the stone industry is the real estate industry. Hence policy changes in real estate industry are directly effecting the changes in stone industry. By the size Indian stone industry is a small industry hence government of India is not making any dedicated policy for the sector. The following recent policy changes in real estate industry of India will have direct impact on stone industry. The Government of India has been supportive to the real estate sector. In August 2015, the Union Cabinet approved 100 Smart City Projects in India. The Government has also raised FDI limits for townships and settlements development projects to 100 per cent. Real estate projects within the Special Economic Zone (SEZ) are also permitted 100 per cent FDI. In Union Budget 2015-16, the government allocated US$ 3.72 billion for housing and urban development. The government has also released draft guidelines for investments by Real Estate Investment Trusts (REITs) in non-residential segment. Responsibility Statement: The Director’s Confirm: a) That in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same. b) That they 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 at the end of the financial year and of the profit or loss of the Company for that period; c) That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; d) That they have prepared the annual accounts on a going concern basis. Technology: The company is using modern technology available for the entire manufacturing process. The management has full attention to get the maximum yield and fine quality with minimum energy requirement. Foreign Exchange Earnings and Outgo: There is no inflow or outflow of foreign exchange during the year. Vigil Mechanism: The Company has established vigil mechanism and adopted whistle blower policy for directors and employees to report concerns about unethical behavior, actual or suspected fraud or violation of the company’s code of conduct or ethics policy. Directors and Managers: Mr. Mayur Sundrawat Director of the Company is retire by rotation and is eligible offer himself for reappointment. Particulars of Employees: As per provision of section 197(2) , read with 5(1) of the companies ( Appointment and Remuneration of Managerial Personnel) Rules 2014, the payment of remuneration to Directors are as follows: 1) Shri Mahaveer Sundrawat Rs. 5.40 Lacs 2) Shri Mayur Sundrawat Rs 4.20 Lacs No employee employed throughout the financial year and in receipt of remuneration of Rs 60.00 lacs or more or employed for part of the year and in receipt of Rs. 5.00 lacs or more a month, under 5(2) of the companies (Appointment and Remuneration of Managerial Personnel) Rules 2014. Auditor’s and Auditors Report: Ms, Surendra Kumar Jain & Company, retires and is eligible for appointment as Auditors. The auditor has risen following two qualifications in its report about income tax demand and unsecured loans. In reply to the qualification the directors states that Income Tax demand of Rs.00.21 Lacs disputed by company for which company has made application for rectification of error U/s154. A brought forward unsecured loan amount of Rs.08.90 lacs taken from Director Shri Mahaveer Sundrawat is pending for the payment. Secretarial Audit: The Company has appointed M/s. B.L. Harawat and Associates, Company Secretaries as Secretarial Auditors to conduct the audit of secretarial and related records of the Company for the FY ended 31st March, 2016. Particulars of Loans, guarantees or investments u/s 186: No loan or guarantee is extended by the company so as to attract the provision of above mentioned section. Related Party Contracts or arrangements During the year under review the company had not entered into any related party contracts except normal trade entered with proprietorship firm owned by wife of promoter director. Material Changes & Commitments affecting financial position of the Company, occurring after Balance Sheet Date: There remains no material change affected after the date of Balance which needs to be mentioned specifically. Energy Conservation, Technology absorption, FOREX earnings & outgo; No forex transaction took place during the year by the company. Corporate Social Responsibility: Provisions of section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014 are not applicable to the company. Employee’s Relations: Relations between the management and employees remain cordial during the year under review. The Director’s place on records their appreciations of the efficient and loyal services rendered by the employee’s at all levels. Insider Trading Regulations: Based on the requirements under SEBI (Prohibition of Insider Trading) Regulations, 1992, as amended from time to time, the Company has adopted Code of Conduct for prevention of Insider Trading and the same is in force Corporate Governance: The Corporate Governance report for the year ended as on 31.03.2016, as per requirement of Clause 49 of Listing Agreement has been given separately in the annexure. Acknowledgement: The Director’s wish to express their deep appreciations and gratitude’s to Banker’s, Financial Institution’s, all central and state level departments for their valued supports. For & on behalf of the Board. -sd- (Mahavir N Sundrawat) Managing Director Place: Banswara, 30.04.16 |