22 nd Annual Report 2016-2017 MUKAND VIJAYANAGAR STEEL LIMITED CIN: U85110MH1995PLC235609 Board of Directors Mr. Virendra K. Mital (DIN: 00376830) - Chairman Mr. R. Jagannathan (DIN: 01011638) - Vice – Chairman Mr. Umesh V. Joshi (DIN: 00152567) Mr. Satish K. Ahluwalia (DIN: 00539975) Auditors M/s. Lodha & Co. Chartered Accountants Registered Office Bajaj Bhawan, 3 rd Floor, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai – 400 021 Tel: 022 – 61216666 Fax: 022 – 22021174 E-mail: [email protected]
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MUKAND VIJAYANAGAR STEEL LIMITED...Email: [email protected] DIRECTORS’ REPORT To the Members of MUKAND VIJAYANAGAR STEEL LIMITED Your Directors take pleasure in presenting the 22nd
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To the Members of MUKAND VIJAYANAGAR STEEL LIMITED
Your Directors take pleasure in presenting the 22nd Annual Report of the Company along with the audited f inancial statements for the f inancial year ended 31s t March 2017.
1. Financial Results
Summary of Financial Results for the year ended 31.03.2017 is as under:
(Amount Rs.)
Particulars Financial Year
2016-17 2015-16
Total Income - 30,000
Total Expenses 7,80,013 1,53,756
Prof it / ( loss) for the year (7,80,013) (1,23,756)
2. Project Review and Operations
The Board of Directors of the Company on 12th January, 2017, has considered and approved, a Scheme of Arrangement and Amalgamation amongst Mukand Limited and Mukand Alloy Steels Private Limited and the Company and their respective shareholders and creditors under the provisions of Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 for transfer of Alloy Steel Roll ing & Finishing business of Mukand Limited. The Appointed Date for Slump Sale and Amalgamation under the Scheme is 1st January, 2017. The Scheme is subject to the approval of the shareholders, creditors and other competent statutory/regulatory authorit ies. An applicat ion in this regard has been f i led with the National Company Law Tribunal.
3. Dividend / Transfer to Reserves
The Company has not commenced its commercial operations and as such has no prof it f rom operations for the year under review, hence no
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dividend is recommended nor any amount is proposed to be transferred to reserves.
4. Subsidiary / Holding Company
In view of the acquisit ion / subscript ion of the entire paid up equity share capital of the Company by Mukand Limited, the Company has become wholly owned subsidiary Company of the said Company with effect from 30 t h December, 2016.
5. General Meeting
During the year under review, two Extra Ordinary General Meetings of the members of the Company were held and the resolutions were approved with requisite majority thereat, details of which are as under:-
Sr.
No.
Date of
EGM Particulars of Resolution in brief
Ordinary /
Special
1 19/12/2016
Increase in Authorised Share
Capital Ordinary
Amendment in Memorandum of Association of the Company pursuant to Increase in Authorised Share Capital
Ordinary
Amendment in Articles of Association of the Company pursuant to Increase in Authorised Share Capital
Special
2 28/12/2016 Approval for Issue of equity shares on Preferential basis
Special
6. Material Changes and Commitments
There have been no material changes and commitments, affecting the f inancial posit ion of the Company, which have occurred between the end of the f inancial year of the Company and the date of this report.
7. Share Capital
The paid up Equity Share Capital of the Company was Rs. 7,06,62,430/- as on 31s t March 2017 (Previous Year: Rs. 7,00,000/-).
During the year under review:
i . The Authorized Share capital of the Company was increased to Rs. 7,50,00,000/- (Rupees Seven Crore Fif ty Lakhs only) divided into 75,00,000 equity shares of face value Rs. 10/- (Rupees Ten Only) each.
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i i . The Company had issued and al lotted 69,96,243 equity shares to
Mukand Limited ( ‘ the holding company’) on preferential basis which rank pari passu with the exist ing Equity Shares.
8. Deposits
The Company has neither accepted nor renewed any deposits during the year under review.
9. Disclosure of Orders Passed by Regulators or Courts or Tribunal
No orders have been passed by any Regulator, Court or Tribunal impacting the going concern status and the Company’s operat ions in future.
10. Particulars of Loans, Guarantees and Investments
The Company has neither given any loans/guarantees to any other entit ies nor has made any investments during the f inancial year.
11. Related Party Transactions
There were no related party transactions entered into by the Company during the f inancial year which attracted the provisions of Section 188 of the Companies Act, 2013 as all related party transact ions that were entered into by the Company during the year were on an arm’s length basis and were in the ordinary course of the Company's business. Hence there are no transactions which are required to be disclosed in Form AOC-2.
12. Director’s Responsibility Statement
Pursuant to clause (c) of sub-sect ion (3) of Section 134 of the Companies Act, 2013, the Board of Directors of the Company hereby state and confirm that:
i. in the preparat ion of the annual accounts, the applicable accounting
standards have been followed and no material departures have been made therefrom;
i i . the directors have selected such accounting pol icies and applied them consistent ly 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 for the f inancial year ended as at 31s t March, 2017 and of the loss of the Company for the said period;
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i i i . the directors have taken proper and suff icient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregulari t ies;
iv. the directors have prepared the annual accounts on a going concern basis;
v. the Company being an unlisted public company, is not required to lay down internal f inancial controls to be followed by the Company; and
vi. the directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
13. Extract of Annual Return
The extract of the Annual Return as provided under sub-sect ion (3) of Section 92 of the Companies Act, 2013, in the prescribed Form MGT- 9 is annexed to this report as Annexure A .
14. Board of Directors & Key Managerial Personnel
A. Board of Directors:
The Board of Directors of the Company as on 31s t March, 2017 consists of four non-executive directors as per details given below:
a) Mr. Virendra K. Mital - Chairman b) Mr. R. Jagannathan - Vice – Chairman c) Mr. Umesh V. Joshi d) Mr. Satish K. Ahluwalia
Mr. Virendra K. Mital (DIN: 00376830) and Mr. Umesh V. Joshi (DIN:
00152567), Non-Executive Directors of the Company, retire by rotation and being eligible, offer themselves for reappointment. The Board recommends their reappointment at the ensuing Annual General Meeting. None of the Directors draws any remuneration from the Company.
B. Key Managerial Personnel:
Since the paid-up capital of the Company is less than Rs. 10 crore, the provisions of Section 203 of the Companies Act, 2013 relat ing to appointment of Key Managerial Personnel, i.e. Managing Director, or
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Chief Executive Off icer or Manager and in their absence a Whole-time Director; and Chief Financial Off icer are not applicable to the Company.
15. Declaration of Independence
The provisions of Section 149 of the Companies Act, 2013 relating to appointment of independent directors are not applicable to the Company.
16. Board Meetings
The Board of Directors of the Company met eight t imes during the year under review on 21.05.2016, 11.08.2016, 26.11.2016, 19.12.2016, 28.12.2016, 30.12.2016, 12.01.2017 and 10.03.2017. The particulars of attendance of the Board of Directors at the said meetings are provided in the table below.
Name of Director Number of Board Meetings held during the year
Number of Board Meetings attended during the year
Mr. Virendra K. Mital 8 4 Mr. R. Jagannathan 8 8 Mr. Umesh V. Joshi 8 8 Mr. Satish K. Ahluwalia 8 8
17. Corporate Social Responsibil ity(CSR)
The provisions of Section 135 of the Companies Act, 2013 relating to CSR init iat ives which need to be undertaken by a Company are not applicable to the Company.
18. Directors’ Remuneration Policy & Criteria for Matters under Section
178
The Company is not required to constitute any Nomination and Remuneration Committee as per the provisions of Section 178 of the Companies Act, 2013 and accordingly the Company has not formulated a Remunerat ion policy or criteria for appointment and remuneration for the directors, Key Managerial Personnel and other employees.
19. Risk Management Policy
The process of identif ication and evaluation of various risks inherent in the business environment and the operations of the Company and
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init iation of appropriate measures for prevention and/or mit igat ion of the same are dealt with by the Board of Directors of the Company.
20. Adequacy of Internal Financial Controls
The Company has adequate internal control systems commensurate with its current size of operations to ensure proper recording and accounting of f inancial and operat ional information in compliance with regulatory and statutory requirements applicable to the Company.
21. Performance Evaluation of the Board
The provisions of Section 134(3)(p) of the Companies Act, 2013 read with Rule 8(4) of the Companies (Accounts) Rules, 2014, relat ing to the evaluation performance of the Board, individual directors, including the Chairman of the Board and that of its committees is not applicable to the Company since the paid up capital of the Company is less than Rs. 25 crore.
22. Conservation of Energy, Technology Absorption and Foreign
Exchange Earnings & Outgo
The statutory disclosures in accordance with the provisions of section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 with respect to conservat ion of energy, technology absorption and earnings in foreign exchange are not required to be made as the Company is yet to commence its business operations and the project is in the process of being set up. There was no foreign exchange outgo/earnings during the year ended March 31, 2017.
23. Particulars of Employees
There were no employees employed throughout or part of the year whose remunerat ion was within the purview of the l imits prescribed under the provisions of Section 197 of the Companies Act, 2013 read with Rule 5(2) and rule 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
24. Auditor
Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the rules made thereunder, the current auditors of the Company, M/s. Lodha & Co., Chartered Accountants (Firm Registration No. 301051E) were appointed by the shareholders at the 19 t h Annual
I. REGISTRATION AND OTHERS DETAILS
i) CIN U85110MH1995PLC235609
ii) Registration Date 08/09/1995
iii) Name Of The Company MUKAND VIJAYANAGAR STEEL
LIMITED
iv) Category /Sub-Category Of The Company Company having Share Capital
v) Address of the Registered office and contact details 3rd Floor, Bajaj Bhawan, Jamnalal Bajaj
Marg, 226, Nariman Point, Mumbai,
Maharashtra 400021
Ph: 022 61216666
Fax: 022 22021174
vi) Whether Listed Company (Yes/No) No
vii) Name, Address and Contact details of Registrar and Transfer Agent,
if any
Not Applicable
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Sr. No.
Name and Description of Main Products/ Services NIC Code Of The Product /Service % to total turnover of the Company