To
THE MEMBERS OFABHAYAM TRADING LIMITED
Your Directors present herewith the 29th Annual Report of your Company together with
the Audited Accounts for the year ended 31st March 2017.
The financial highlights for the year under review are
as follows:
|
(Rupees in lacs) |
Particulars |
Year Ended 31st March 2017 |
Year Ended 31st March 2016 |
Profit / Loss before Int., Depreciation and Tax |
(29.73) |
(47.04) |
Less: : Depreciation |
Nil |
0.02 |
Profit / Loss before Tax |
(29.73) |
(47.02) |
Add : Provision for Non Performing assets |
NIL |
NIL |
Less : Fringe Benefit Tax |
NIL |
NIL |
Add : Depreciation related to earlier years |
Nil |
NIL |
Profit / Loss after Int., Depreciation and Tax |
(29.73) |
(47.02) |
Balance in Profit & Loss Account b/f (Loss) |
(29890.64) |
(29843.62) |
Balance in Profit & Loss Account c/f (Loss) |
(29920.37) |
(29890.64) |
There were no disbursements during the year under review. The Company has continued its
efforts for recovery of overdues.
On account of accumulated loss, your Directors are not in a position to recommend any
Dividend.
DIRECTORS
Mr. JS Narayana , who retires by rotation and being eligible offers himself for
re-election. A brief resume of the director retiring by rotation at the ensuing AGM,
nature of his expertise in specific functional areas and the name of companies in which he
holds directorshi p and/or membershi p /chairmanshi p of committees of the board as sti
pulated under clause 49 of the listing agreement, is given in the section on Corporate
governance elsewhere in the Annual report.
Management Discussion and Analysis
Report (MDAR)
a) Industry Structure and Developments:
Indian economy is likely to grow in the range of 6.75 to 7.5 per cent in 2017-18.. As
regards the downside risks, cash ban (demonetisation) is likely to bring down the growth
rate for 2016-17 to less than 7%.
b) Opportunities and Threats:
The Management of the Company discussed about the Strengths, Weakness, Opportunities
and threats for the same.
c) Segment wise or Product wise performance:
The Company is concentrating on recovery of its old
Loans.
d) Outlook :
Prospects for the coming year remain uncertain.
e) Risk and areas of concern
Market and legal risks involved in recovery process are adequately addressed by the
internal control systems and are continuously reviewed and monitored by a dedicated team
of people.
f) Internal Control system and their adequacy:
The Company has adequate internal control procedures commensurate with the size of the
company and the nature of business.
Mr.Subrahmaniya Sivam R.,Chartered Accountant, has been appointed to conduct Internal
Audit and the findings and recommendations are placed before the Audit Committee of the
Board regularly. The Audit Committee regularly reviews the audit findings as well as the
adequacy and effectiveness of the internal control measures and reports to the Board..
g) Vigil Mechanism /Whistle blower Policy.
As per Sec.177 (9) of Companies Act., and Rule 7 under Companies (Meetings of Board and
its powers )Rules 2014,the Company has vigil mechanism policy to deal with fraud or
mis-management if any, Details are given in Corporate Governance Report and also posted on
the website.
h) Related Party Transactions:
There are no related party transactions during the
year.
I) Material developments in Human Resources /
Industrial relations front :
Your Company believes that its greatest assets are its people The Company has
maintained cordial relationshi p with its employees throughout the year.
Extract of Annual Return is as per Annexure - A
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134 of the Companies Act, 2013 the Directors confirm that :
1. In the preparation of the annual accounts, the applicable accounting standards have
been followed;
2. Appropriate accounting policies have been selected and applied consistently and have
made judgements and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company as at 31st March 2017and of the
Profit/Loss of the Company for the year ended 31st March 2017
3. Proper and sufficient care has been taken for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act for safeguarding the assets
of the Company and for preventing and detecting fraud and other irregularities;
4. The annual accounts have been prepared for the year ended 31st March 2017 on a going
concern basis.
CORPORATE GOVERNANCE
A separate Report on Corporate Governance is produced as a part of this Annual Report
along with the Auditors Statement on its compliance.
DEPOSITORIES
As the Members are aware, your Company's shares are tradable compulsorily in electronic
form and your Company has established connectivity with both the Depositories i.e.
National Securities Depository Limited and Central Depository Services(India) Limited.
In view of the numerous advantages offered by the Depository system, Members are
requested to avail of the facility of dematerialisation of the Company's shares on either
of the Depositories aforesaid.
At present over 64.98% of the paid-up equity capital of the Company is held in
dematerialised form.
FIXED DEPOSITS
Your Company has no outstanding Deposits as all Unclaimed Deposits in the Company have
been transferred to Government A/c as per Companies Act 1956.The Company ,during the year
under review, has not accepted any deposits from public.
AUDITORS
The Company's Auditors M/s Brahmayya & Co, Chartered Accountants, Chennai will
retire at the ensuing Annual General meeting and being eligible have offered themselves
for re-appointment and the requisite certificate u/s 139 of the Companies Act, 2013 has
been obtained from them for this purpose.
AUDITORS' REPORT
As regards observations of the Auditors under the head "Opinion" in the
Independent Auditors' Report, attention of the members is invited to Note No.19. to the
Annual accounts, which is self explanatory.
As regards observations under "Emphasis of Matters". a. Provisions are being
carried due to on going legal cases pending at various stages being pursued for a very
long period. b. 1). In view of the established law of limitation and clear legal opinion
obtained, the company does not have any payment obligation.
2). These are long pending, unresolved amounts and no claim is envisaged.
Secretarial Audit Report Pursuant to Sec.204 of the Companies Act 2013,and Companies
(Appointment and Remuneration of Managerial Personnell)Rules 2014 .The Board has appointed
M/s PK Panda & Co., Practising Company Secretaries, to carry out Secretarial Audit of
the Company, as per Annexure - B
As regards observations in secretarial audit report:
1. Efforts are being made continuously to appoint a Company Secretary.
2. Certificate under Reg.7(3) of SEBI (LODR) regulations 2015, being now filed
regularly.
3 a). Form A/B being now regularly submitted.
b). Signed Audit Report now being submitted.
PARTICULARS OF PERSONNEL
The information required under Sec.197 of the Companies Act 2013, read with Rule 5 of
the Companies (Appointment and remuneration of managerial personnel) Rules 2014 are
provided in Annexure C.
The particulars of employees as required u/s 134 of the Companies Act, 2013 read with
the Companies (Particulars of Employees) Rules 1975 is not applicable to the Company as
there were no employees drawing remuneration in excess of the limits specified under the
said rules.
Rule 8 under Companies(Accounts) Rules 2014:
1,2,3 Your Company has no activity relating to Conservation of Energy, Technology,
Absorption and Foreign Exchange these areas during the period under review.
4. Further the Board has made an annual evaluation of its own performance and that of
its committees by analysing the agenda considered ,notes and discussion papers and
attendance of individual directors.
5. i) Financial Summary given above.
ii) Change in business does not apply.
iii) Independent Directors are.Mr. JRK Sarma and Mr. K.Elangovan. iv) Subsidiaries and
Joint Ventures Nil
v) Deposits under chapter V - Nil
vi) Deposits not in compliance with Chapter V- NA
vii) No significant /Material orders passed by regulators/ Court/Tribunals impacting
the going concern status/future operations.
viii)Adequate internal financial controls in force.
Rule 8 of Companies (CSR Policy) Rules 2014.
As the company has incurred loss the above doesnot apply.
ACKNOWLEDGEMENTS
Your Directors wish to express their gratitude to the Shareholders, Bankers and
employees for their support.
For and on behalf the Board
JRK Sarma |
K Elan govan |
Director |
Director |
J S Narayana |
V Padma |
Director |
Director |
Place : Chennai |
|
Date : 24th April 2017 |
|
Annexure - C
Disclosure under Sec.197(12) and Rule 5 of Companies (Appt.and Remuneration of
managerial personnel) Rules 2014.
1. Ratio of remuneration of each Director to the median remuneration of the employees
for financial year ended 31st March 2017.
S.No. |
Director |
Remn.(Rs.) |
Median Remn.(Rs) |
Ratio |
1. |
JRK Sarma |
7500.00 |
25025.00 |
30 |
2. |
K Elangovan |
7500.00 |
25025.00 |
30 |
3. |
JS Narayana |
4500.00 |
25025.00 |
18 |
4. |
V.Padma |
6000.00 |
25025.00 |
24 |
2. The % increase in remuneration of each Director and KMP in the financial year.
S.No. |
Director |
% Increase |
1. |
Not Applicable |
|
3. The % increase in median remuneration of employees in the Financial year. NIL
4. No.of permanent Employees on the rolls of the Company as at 31st Mar. 2017. 2 nos.
5. As the Company is not in business, relationshi p between average increase in
remuneration and Company performance does not apply.
6. As the Company is not in business, comparison of remuneration of KMP against
performance of the Company does not apply.
7. As stock is not quoted during the year, variations in market capitalisation does not
apply.
8. There has been no increase in the salaries of employees.
9. As the Company is not in business, comparison of each ,remuneration of KMP against
performance of the Company does not apply
10. There is no variable component of remuneration availed by Directors.
11. Ratio of remuneration of the highest paid Director to that of the employees who are
not Directors,but receive remuneration in excess of the highest paid Directors during the
year .
D.Harold 0.031,, Jaikumaar BV - 0.06
12. It is affirmed that the remuneration paid is as per the remuneration policy of the
Company.
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