To
The Members,
The Directors are pleased to present the Nineteenth Annual Report on business and operations of the company together with the Audited Financial Statements for the financial year ended 31st March, 2018.
1. FINANCIAL RESULTS
The Company’s Financial Performance, for the year ended 31st March, 2018 is summarized below:
(Rs. In Lacs)
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Particulars
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Standalone
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Consolidated
|
| |
2017-2018
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2016-2017
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2017-2018
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2016-2017
|
|
Revenue from operations
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9516.40
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17302.00
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9516.40
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17302.00
|
|
Other Income
|
15.77
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20.89
|
15.77
|
20.89
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|
Total Revenue
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9532.17
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17322.88
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9532.17
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17322.88
|
|
Profit Before Interest , Depreciation & Tax
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(250.09)
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1202.90
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(250.21)
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1202.42
|
|
Finance Cost
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1020.24
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1211.76
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1020.24
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1211.76
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|
Depreciation & Amortisation
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789.34
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920.15
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789.34
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920.17
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|
Total Expenditure
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11591.85
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18251.89
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11591.97
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18252.40
|
|
Profit Before Tax
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(2059.68)
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(929.01)
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(2059.79)
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(929.51)
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|
Provision for Current Tax, Deferred Tax & Other Tax Expenses
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(278.37)
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(326.54)
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(278.37)
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(326.54)
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|
Profit After Tax
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(1781.31)
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(602.47)
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(1781.43)
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(602.98)
|
|
Equity Share Capital
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1582.76
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1582.76
|
1582.76
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1582.76
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|
Other Equity /Reserves and Surplus
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4228.90
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5986.59
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4247.86
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5965.67
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|
Total Equity
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5811.65
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7569.35
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5830.61
|
7548.42
|
|
Proposed Dividend
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-
|
-
|
-
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-
|
2. FINANCIAL HIGHLIGHTS/OPERATIONAL REVIEW/ STATE OF COMPANY’S AFFAIR
During the year under review, your Company incurred a Net Loss after tax of Rs. 1781.31 lacs as compared to Net Loss after Tax of Rs. 602.47 lacs during the Financial year 2016-17.Revenue from operation during the year under review stood at Rs. 9516.40 as compared to Rs. 17302.00 lacs during the Financial year 2016-17.
The Company is operating in only one segment i.e. S. S. Products. The company mainly manufactures SS Angles, SS Flats & SS Rounds and the % wise breakup of the products of the total turnover of the company is as under:-
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S.S. ANGLE BARS
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32%
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S.S. FLAT BARS
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36 %
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S.S. ROUND BARS
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18%
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3. DIVIDEND & RESERVES
Due to inadequate profit your directors are not in a position to recommend any dividend for the financial year ended 31st March, 2018. No amount has been transferred to General Reserve.
4. INDIAN ACCOUNTING STANDARDS (Ind AS)
As mandated by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (“Ind AS”) from 1st April, 2017 with a transition date of 1st April, 2016. The Financial Results for the year 2017-18 have been prepared in accordance with Ind AS, prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued there under and the other recognized accounting practices and policies to the extent applicable. The Financial Results for all the periods of 2017-18 presented have been prepared in accordance with Ind AS.
5. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
In terms of the SEBI (Listing Obligations and Disclosure requirements) Regulations, 2015, the Management Discussion and Analysis Report is given separately in “ANNEXURE F”, forming part of the Annual report.
6. FIXED DEPOSITS
During the year under review, the Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits)Rules, 2014 and as such, no amount on account of principal or interest on public deposits was outstanding at the end of financial year 2017-18.
7. SUBSIDIARY, JOINT VENTURE & ASSOCIATE COMPANIES & CONSOLIDATED FINANCIAL STATEMENT
None of the Company has become or ceased to become the subsidiary, joint venture or associate of the Company during the Financial Year 2017-18.
The Company has prepared Consolidated Financial Statement of the Company and while preparing the Consolidated Financial Statements, the Company has consolidated the accounts of our subsidiary and associate Company viz. Thai Indo Steel Co. Ltd. and M/s. Goldman Hotels and Resorts Private Limited as per the requirements of Accounting Standards issued by the Institute of Chartered Accountants of India. The details of financial performance of Subsidiary Company is furnished in Annexure C and attached to this report.
In accordance with Section 136 of the Companies Act, 2013, the audited financial statements, including consolidated financial statements of the Company and audited accounts of each of its subsidiaries, are available on our website, www.gyscoal.com.
8. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS
The Directors have laid down proper and adequate system of internal financial controls to be followed by the Company and such policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the adequacy and completeness of accounting records and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
The internal financial controls have been put in place across all key business processes of the Company. The internal controls are designed to facilitate and support the achievement of the Company’s business objectives and such controls do enable the Company to adapt to changing and operating environment, to mitigate risks to acceptable levels and to support sound decision making and good governance.
The Company has appointed M/s Ravi Thakkar & Co., Chartered Accountants, Ahmedabad as Internal Auditors to carry out the internal audit. The Internal Auditors’ Reports are regularly reviewed by the Senior Management and the Audit Committee of the Board for its implementation and effectiveness.
The Company endeavors to constantly upgrade the internal financial controls system and periodic evaluation of the same is undertaken by the Senior Management and the Audit Committee of the Board
9. CORPORATE GOVERNANCE REPORT
In terms of Regulation 34 of SEBI (Listing Obligation & Disclosure Requirements) Regulation, 2015 (hereinafter “Listing Regulation”), a Report on Corporate Governance along with Compliance Certificate issued by M/s Chirag Shah & Associates, Company Secretary in Practice, confirming compliance of the conditions of Corporate Governance Report is attached as Annexure - G, which forms part of the Director’s Report.
10. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information pertaining to Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is furnished in “Annexure - A” and is attached to this report.
11. STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE COMPANY
Risk is an integral part of any business and therefore, Risk Management is an important function that the business management has to perform to ensure sustainable business growth.
The Board of the Company has framed the Risk Management Policy. The details of the policy are as updated on website of the company www.gyscoal.com. The risk management includes identifying types of risks and its assessment, risk handling and monitoring and reporting. At present the company has not identified any element of risk which may threaten the existence of the company.
The Company does not fall under the ambit of top 100 listed entities, determined on the basis of market capitalisation as at the end of the immediately preceding financial year. Hence, compliance under Regulation 21 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is not applicable.
12. DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said provisions are not applicable.
13. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013
The Company has not granted and loans or made any investments, or provided any guarantee or security to the parties coved under section 185 and 186.
The details of Loans, Guarantee and Investments are given in the Notes No. 37 to the Financial Statements.
14. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES
All contracts/arrangements/transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on arm’s length basis. During the year, the Company had not entered into any contract/arrangement/transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions.
The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Company’s website at www.gyscoal.com.
Your Directors draw attention of the members to Note 35.2 & 35.3 to the financial statement which sets out related party disclosures.
15. AUDITORS
a) Statutory Auditor
The Statutory Auditors, M/s. Saurabh R Shah & Co., Chartered Accountants (ICAI Registration No. 112647W), Ahmedabad, were appointed at the 17th AGM to hold office from the conclusion of 17th AGM till the conclusion of the 22nd AGM.
b) Secretarial Auditor
Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the Companies appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. Chirag Shah & Associates, Practicing Company Secretaries, Ahmedabad as its Secretarial Auditors to conduct the Secretarial Audit of the Company for the Financial year 2017-18. The report given by the Secretarial Auditor is annexed as Annexure E and forms integral part of this Report.
c) Internal Auditor
The Company has appointed M/s Ravi Thakkar & Co., Chartered Accountants, Ahemdabad as Internal Auditors to carry out the internal audit of the Company for the Financial year 2017-18. The Internal Auditors’ Reports are regularly reviewed by the Senior Management and the Audit Committee of the Board for its implementation and effectiveness.
d) Cost Auditor
Pursuant to Section 148 of the Companies Act, 2013 read with The Companies (Cost Records and Audit) Amendment Rules, 2014, your Directors has, on recommendation of the Audit Committee, appointed M/s. V.H. Shah & Co., Cost Accountant (ICWAI Registration No. 100257), Ahmedabad as Cost Auditor for conducting audit of cost accounting records maintained by the Company for “Steel Plant” for the financial year 2017-18 at a remuneration of Rs. 50,000/- (Rupees Fifty Thousands only) plus out of pocket expenses, if any. As required under the Companies Act, 2013, the remuneration payable to the Cost Auditor is required to be placed before the Members in a general meeting for their ratification. Accordingly, the resolution seeking Members’ ratification is included in the Notice convening the 19th Annual General Meeting.
16. STATUTORY AUDIT REPORT
The observation made in the Auditor’s Report are self explanatory and therefore, do not call for any further comments under Section 134(3)(f) of the Act.
The explanation on adverse remarks / qualification(s) in the Auditor’s Report-
Point No. (vii) (a) to the Standalone Financial Statements: According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities during the period. However, in some cases such statutory dues are paid after its due dates along with interest during the year.
According to the information and explanations given to us, no undisputed amounts payable in respect of sales tax, customs duty, excise duty, cess and other material statutory dues applicable to it, were in arrears, as at 31st March, 2018 for a period of more than six months from the date they became payable
Point No. (vii) (b) to the Standalone Financial Statements: According to the information and explanations given to us, the disputed statutory dues aggregating Rs.999065290/- that have not been deposited on account of disputed matter pending before appropriate authorities
Point No. (viii) to the Standalone Financial Statements: According to the information and explanations given to us, the Company has defaulted in repayment of dues aggregating of Rs. 858491436/- to financial institutions, banks or debenture holders during the year and all those Accounts classified by bank as NPA, interest on the same is not charged by the bank in the said accounts. So, the company has made provision of interest payable on such accounts at the interest rates sanctioned by the banks and shown under the Other Current Liabilities in Balance Sheet.
Explanation to Point No. (vii) (a), Point No. (vii) (b) and Point No. (viii)to the Standalone Financial Statements:
For Point No. (vii) (a) The audit qualifications pointed out by the auditor are just the disclosure of fact that the company has not deposited its disputed statutory dues with appropriate authority and has made default in repayment of Bank loan. This is not impacting financial position of the Company.
For Point No. (vii) (b) The stay order has been received against the amount disputed and not deposited & management is in the process of taking necessary steps to resolve pending statutory dues as mentioned in the Auditor’s Report and taking measures to pay them within due course.
For Point No. (viii) in respect of default in repayment of Bank loans the company is in process of taking necessary steps to regularize those account.
17. SECRETARIAL AUDIT REPORT
The Board has appointed M/s Chirag Shah & Associates, Practicing Company Secretaries (ICSI Membership No. 5545 & CPN 3498), to conduct Secretarial Audit for the financial year 2017-18. The Secretarial Audit Report for the financial year ended March 31, 2018 is annexed herewith marked as “Annexure E” to this Report.
18. COMPANY’S POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF REMUNERATION AND DISCHARGE OF THEIR DUTIES
The Company has adopted a Remuneration Policy for the Directors, Key Managerial Personnel and other employees, pursuant to Section 178(3) of the Companies Act, 2013.
The philosophy for remuneration of Directors, Key Managerial Personnel and all other employees of the Company is based on the commitment of fostering a culture of leadership with trust. The Remuneration Policy of the Company is aligned to this philosophy.
It is affirmed that the remuneration paid to Directors, Key Managerial Personnel and all other employees is as per the Remuneration Policy of the Company. Details of the Remuneration Policy are given in the Corporate Governance Report.
Your Company has adopted a defined policy and procedure for Appointment of Independent Directors which has been put on Company websitewww.gyscoal.com.
19. EXTRACTS OF ANNUAL RETURN
The extracts of Annual Return pursuant to the provisions of Section 92 read with Rule 12 of the Companies (Management and administration) Rules, 2014 is furnished in “Annexure B” and is attached to this Report.
20. NUMBER OF BOARD MEETINGS CONDUCTED DURING THE YEAR UNDER REVIEW
The Company had 4(Four) Board Meetings during the financial year under review. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.
21. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement of Section 134(5) of the Companies Act, 2013 (“the Act”), the Board of Directors of your Company, to the best of their knowledge and ability, confirm that:
a) in the preparation of the Annual Accounts, the applicable accounting standards have been followed and there are no material departures;
b) 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 your Company at the end of the Financial Year and of the profit of your Company for that period;
c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities;
d) they have prepared the Annual Accounts on a going concern basis;
e) they have laid down internal financial controls to be followed by your Company and that such internal financial controls are adequate and are operating effectively;
f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
22. PARTICULARS OF EMPLOYEES
A statement containing the names and other particulars of the employees in accordance with the provisions of section 197(12) of the Companies Act, 2013 read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016 is appended as “Annexure - D” to this report. No employee has received remuneration in excess of the limits set out in rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016 during FY 2017-18.
23. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
The Company strongly believes in providing a safe and harassment free workplace to all its employees. The Company continuously endeavours to create and provide an environment that enables women employees to work without fear of prejudice, gender bias and sexual harassment and/or any such orientation in implicit or explicit form. For this purpose, the Company has in place ‘Policy of Protection of Women against Sexual Harassment at Work Place’ and also formed Complaint Redressal Committees at various administrative units/ Offices.
During the year under review, no cases of sexual harassment against women employees at any of its work place were filed under Section 22 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
24. DIRECTORS AND KEY MANAGERIAL PERSONNEL Directors
Mr. Zankarsinh Kishorsinh Solanki (DIN 00014226) will retire by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment. The Board of Directors recommends his re-appointment.
A brief profile and other details as required under Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are provided in the notice of 19th Annual General Meeting of the Company.
Key Managerial Personnel
Ms. Priti Kakkar has resigned from the post of Company Secretary and Compliance officer from the Company with effect from 13th April, 2018. In her place, Ms. Bhavika Sharma has been appointed as Company Secretary and Compliance Officer of the Company with effect from 28th May, 2018 Further, Ms. Bhavika Sharma was also appointed and designated as Key Managerial Personnel of the Company as per the provisions of Section 203 of the Companies Act, 2013 and rules made thereunder.
The Independent Directors of the Company have given a declaration confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 (“the Act”) and the SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015.
The terms of appointment of Independent Directors may be accessed on the Company’s website at the link: www.gyscoal.com
25. REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY
There are no significant and material order passed by the Regulators or Courts or Tribunals which would impact the going concern status and the company’s future operations.
26. ANNUAL EVALUATION OF BOARD’S PERFORMANCE
Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of its own performance, Directors individually as well as evaluation of its Committees. The evaluation criteria, inter-alia, covered various aspects of the Board functioning including its composition, attendance of Directors, participation levels, bringing specialized knowledge for decision making, smooth functioning of the Board and effective decision making.
The performance of individual Directors was evaluated on parameters such as level of engagement and contribution, independence of judgment and safeguarding the interest of the Company, etc. The Directors expressed their satisfaction with the evaluation process.
27. DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND PROVIDING VIGIL MECHANISM
The Audit Committee consists of the following members:
a) Shri Sunil Talati - Chairman
b) Shri Surendra Patel - Member
c) Shri Viral Shah - Member
The Company has established a vigil mechanism and overseas through the committee, the genuine concerns expressed by the employees and other Directors. The Company has also provided adequate safeguards against victimization of employees and Directors who express their concerns. The Company has also provided direct access to the chairman of the Audit Committee on reporting issues concerning the interests of co employees and the Company.
28. EMPLOYEES STOCK OPTION PLANS /SCHEMES
No Employee Stock Options were granted to the Directors or Employees of the Company during the year under review
29. ACKNOWLEDGEMENT
Your Directors place on record their sincere thanks to bankers, business associates, consultants, and various Government Authorities for their continued support extended to your Companies activities during the year under review. Your Directors also acknowledges gratefully the shareholders for their support and confidence reposed on your Company.
For and on behalf of Board Of Directors
Viral M. Shah
Date : 13/08/2018 (Managing Director)
Place : Ahmedabad DIN - 00014182
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