To
The Members,
Your Directors take pleasure in presenting their Thirty Seventh Annual Report on the Business and Operations of the Company and the Accounts for the Financial Year ended 31st March, 2024 (period under review).
1. FINANCIAL PERFORMANCE OF THE COMPANY:
The summary of the financial performance for the financial year ended March 31, 2024 and the previous financial year ended March 31, 2023 is given below:
2. REVIEW OF OPERATIONS
The Total Income of the Company stood at 2628.00 lakhs for the year ended March 31, 2024 as against 1417.33 lakhs in the previous year. The Company made a net profit of 484.99 lakhs for the year ended March 31, 2024 as compared to the net profit of 300.19 lakhs in the previous year.
3. CASH FLOW STATEMENTS
As required under regulation 34 of the SEBI (LODR) Regulations, 2015, a Cash Flow Statement forms part of Annual Report.
4. TRANSFER TO RESERVES IN TERMS OF SECTION 134 (3) (J) OF THE COMPANIES ACT, 2013
The Board has decided not to transfer any amount to the Reserves for the year under review.
5. DIVIDEND:
The dividend policy for the year under review has been formulated taking into consideration of growth of the company and to conserve resources, the Directors do not recommend any dividend for year ended March 31, 2024.
6. TRANSFER OF UNPAID AND UNCLAIMED DIVIDENDS TO INVESTOR EDUCATION AND PROTECTION FUND
The Ministry of Corporate Affairs under Sections 124 and 125 of the Companies Act, 2013 requires dividends that are not encashed/ claimed by the shareholders for a period of seven consecutive years, to be transferred to the Investor Education and Protection Fund (IEPF). In FY 2023-24, there was no amount due for transfer to IEPF.
7. SHARE CAPITAL
The authorized share capital of the company is Rs. 7,00,00,000/- divided into 70,00,000 equity shares of Rs. 10/- The Paid up capital of the Company is Rs. 6,11,00,000/- divided into 61,10,000 Equity shares of Rs. 10/- Company has appointed M/s Kfin Technologies Limited as the Registrar and Transfer Agent of the Company.
8. MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT:
Management's Discussion and Analysis Report for the year under review, in terms of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing Regulations") and SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018 (the "Amended Listing Regulations"), is presented in a separate section forming part of the Annual Report as Annexure III".
9. CHANGE IN NATURE OF BUSINESS, IF ANY
There has been no change in nature of business of the Company during the FY under review.
10. DISCLOSURES BY DIRECTORS
The Board of Directors has submitted notice of interest in Form MBP 1 under Section 184(1) as well as intimation by directors in Form DIR 8 under Section 164(2) and declarations as to compliance with the Code of Conduct of the Company.
Certificate of Non-Disqualification of Directors received from Satyajit Mishra & Co., Practicing Company Secretary is annexed to the Board's Report as "Annexure IV".
11. SUBSIDIARY/ JOINT VENTURE/ ASSOCIATE COMPANY
The Company incorporated "Sunita Leoquip Aerospace Private Limited" as its subsidiary on April 25, 2024.
12. MATERIAL CHANGES AND COMMITMENTS
The Company has obtained the status of being listed on BSE SME Platform with effect from October 11, 2023. The
Company managed to raise 2,204.00 Lakhs by initial public offer of 15,20,000 equity shares of 10 each through its prospectus dated September 20, 2023. Further stakeholder may find the Prospectus though link: https://www.sunitatools.com/investor-relations.php
Listing on Stock Exchanges:
The Company has obtained the status of being listed on BSE SME Platform with effect from October 11, 2023. The Company managed to raise 2,204.00 Lakhs by initial public offer of 15,20,000 equity shares of 10/- each through its Prospectus dated September 20, 2023. Further 15,20,000 Equity Shares of face value of Rs. 10/- each were available under the Offer, at Issue Price of Rs. 145/-. The Offer opened for subscription on September 26, 2023 and closed on September 28, 2023. The Equity shares of Sunita Tools Limited have been listed on BSE SME Platform on October 11, 2023.
The above were the material changes and commitments affecting the financial position of the company which have occurred during the period under review.
13. EXTRACT OF ANNUAL RETURN:
The Annual Return of the Company as on 31st March, 2024 is available on the website of the Company at https://www.sunitatools.com/
14. CHANGE IN SHARE CAPITAL:
During the year under review, the company came up with fresh issue of 13,20,000 (Thirteen Lakh Twenty Thousand) Equity Shares aggregating to 19,14,00,000 (Rupees Nineteen Crore Fourteen lakhs) and offer for sale of 2,00,000 (Two Lakhs) Equity Shares aggregating to 2,90,00,000 (Rupees Two Crore Ninety Lakhs). The Total Issue of 15,20,000 (Fifteen Lakhs Twenty Thousand)Equity Shares aggregating 22,04,00,000 (Rupees Twenty Two Crore and Four Lakhs) was made by the Company.
Post the year under review, the shareholders of the company had approved the increase in Authorised Share Capital of the Company from existing Rs. 6,00,00,000/- (Rupees Six Crores Only) divided into 60,00,000 (Sixty Lakhs) Equity Shares of Rs. 10/- (Rupees Ten Only) each to Rs.7,00,00,000/- (Rupees Seven Crores Only) divided into 70,00,000 (Seventy Lakhs) Equity Shares of Rs. 10/- (Rupees Ten Only) each by creation of additional 10,00,000 (Ten Lakhs) Equity Shares of Rs. 10/- (Rupees Ten Only) each at the EOGM dated May 29, 2024.
Further, consequent to resolution passed by the shareholders at EGM dated May 29, 2024, the company increased its Paid Up Share Capital from existing Rs. 5,62,50,000/- (Rupees Five Crores Sixty Two Lakhs Fifty Thousand Only) divided into 56,25,000 (Fifty Six Lakhs Twenty Five Thousand) Equity Shares of Rs. 10/- (Rupees Ten Only) each to Rs.6,11,00,000/- (Rupees Six Crores Eleven Lakhs Only) divided into 61,10,000 (Sixty One Lakhs) Equity Shares of Rs. 10/- (Rupees Ten Only) each by creation of additionally raising 4,85,000 (Four Lakhs Eighty Five Thousand) Equity Shares of Rs. 10/- (Rupees Ten Only) each through preferential issue.
15. FAMILIARISATION PROGRAMME FOR DIRECTORS
As a practice, all Directors (including Independent Directors) inducted to the Board go through a structured orientation programme. Presentations are made by Senior Management giving an overview of the operations, to familiarise the new Directors with the Company's business operations. The Directors are given an orientation on the products of the business, group structure and subsidiaries, Board constitution and procedures, matters reserved for the Board, and the major risks and risk management strategy of the Company.
During the year under review, 2 (two) new Independent Directors were inducted to the Board.
16. DIRECTORS AND KEY MANAGERIAL PERSONNEL:
i. Change in Directors & Key Managerial Personnel:
ii. Retirement by Rotation of the Directors
In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Satish Kumar Pandey, Managing Director of the Company, retires by rotation and offers himself for re- appointment.
The brief resume of Mr. Satish Kumar Pandey, the nature of his expertise in specific functional areas, names of the companies in which he has held directorships, his shareholding etc. are furnished in the Annexure - A to the notice of the ensuing AGM.
iii. Independent Directors
Our Company has received annual declarations from all the Independent Directors of the Company confirming that they meet with the criteria of Independence provided in Section 149(6) of the Companies Act, 2013 and Regulations 16(1) (b) & 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and there has been no change in the circumstances, which may affect their status as Independent Director during the year.
The Independent Directors met on 28th March, 2024, without the attendance of Non-Independent Directors and members of the Management. The Independent Directors reviewed the performance of Non-Independent Directors and the Board as a whole; the performance of the Chairman of the Company, taking into account the views of Executive Directors and Non-Executive Directors and assessed the quality, quantity and timeliness of flow of information between the Company Management and the Board that is necessary for the Board to effectively and reasonably perform their duties.
17. BOARD MEETINGS:
The Company held twelve meetings of its Board of Directors during the year on April 10, 2023, April 29, 2023, May 22, 2023, June 02, 2023, June 09, 2023, June 17, 2023, August 21 2023, October 06, 2023, November 06, 2023, January 10, 2024, March 03, 2024 and March 28, 2024.
18. COMMITTEES OF THE BOARD:
(a) Audit Committee:
The Audit Committee, as per Section 177 of Companies Act, 2013, was constituted on June 17, 2023 under the chairmanship of Mr. Nikhil Malpani. After constitution the committee met Twice (2) times with full attendance of all the members. The composition of the Audit Committee as at March 31, 2024 and details of the Members participation at the Meetings of the Committee are as under
The Committee is governed by a Charter which is in line with the regulatory requirements mandated by the Companies Act, 2013. Some of the important functions performed by the Committee are:
Financial Reporting and Related Processes:
Oversight of the Company's financial reporting process and financial information submitted to the Stock
Exchanges, regulatory authorities or the public.
Reviewing with the Management, the Half Yearly Unaudited Financial Statements and the Auditor's Limited Review Report thereon / Audited Annual Financial Statements and Auditors' Report thereon before submission to the Board for approval. This would, inter alia, include reviewing changes in the accounting policies and reasons for the same, major accounting estimates based on exercise of judgement by the Management, significant adjustments made in the Financial Statements and / or recommendation, if any, made by the Statutory Auditors in this regard. Review the Management Discussion & Analysis of financial and operational performance.
Discuss with the Statutory Auditors its judgement about the quality and appropriateness of the Company's accounting principles with reference to the Accounting Standard Policy. Review the investments made by the Company.
All the Members on the Audit Committee have the requisite qualification for appointment on the Committee and possess sound knowledge of finance, accounting practices and internal controls. The Auditors, Internal Auditors, Chief Financial Officer are invited to attend the meetings of the Committee. The Company Secretary acts as the Secretary to the Committee.
(b) Nomination and Remuneration Committee:
The Nomination and Remuneration Committee, as per Section 178(1) of Companies Act, 2013, was constituted on June 17, 2023 under the Chairmanship of Mrs. Diksha Maheshwari. After constitution the committee met once with full attendance of all the members. The composition of the Nomination and Remuneration Committee as at March 31, 2024 and details of the Members participation at the Meetings of the Committee are as under:
The terms of reference of the Committee as per Companies Act 2013 and SEBI (LODR) 2015, include the following:
Formulation of the criteria for determining qualifications, positive attributes and independence of a director and recommend to the board of directors a policy relating to, the remuneration of the directors, key managerial personnel and other employees; For every appointment of an independent director, the Nomination and Remuneration Committee shall evaluate the balance of skills, knowledge and experience on the Board and on the basis of such evaluation, prepare a description of the role and capabilities required of an independent director. The person recommended to the Board for appointment as an independent director shall have the capabilities identified in such description. For the purpose of identifying suitable candidates, the Committee may: a) Use the services of an external agencies, if required; b) Consider candidates from a wide range of backgrounds, having due regard to diversity; and c) Consider the time commitments of the candidates.
Formulation of criteria for evaluation of performance of independent directors and the board of directors; Devising a policy on diversity of board of directors;
Identifying persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down, and recommend to the board of directors their appointment and removal. Whether to extend or continue the term of appointment of the independent director, on the basis of the report of performance evaluation of independent directors. Recommend to the board, all remuneration, in whatever form, payable to senior management.
The Company has formulated a Remuneration Policy which is annexed to the Board's Report in "Annexure I".
(c) Stakeholders Relationship Committee:
The Stakeholders Relationship Committee, as per Section 178 (5) of Companies Act, 2013, was constituted vide Board Resolution dated June 17, 2023. The Committee is governed by a Charter, which is in line with the regulatory requirements mandated by the Companies Act, 2013. During the year, the committee met one time with full attendance of all the members. The composition of the Stakeholders Relationship Committee as at March 31, 2024 and details of the Members participation at the Meetings of the Committee are as under:
The terms of reference of the Committee are:
Resolving the grievances of the security holders of the listed entity including complaints related to transfer/transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new/duplicate certificates, general meetings etc. Review of measures taken for effective exercise of voting rights by shareholders. Review of adherence to the service standards adopted by the listed entity in respect of various services being rendered by the Registrar & Share Transfer Agent. Review of the various measures and initiatives taken by the listed entity for reducing the quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of the company.
During the year, no complaints were received from shareholders. There are no balance complaints. The Company had no share transfers pending as on March 31, 2024.
Ms. Rupal Dedhia, Company Secretary is the Compliance Officer of the Company.
19. BOARD'S PERFORMANCE EVALUATION:
The Board of Directors carried out an annual evaluation of the Board itself, its Committees and individual Directors. The entire Board carried out performance evaluation of each Independent Director excluding the Independent Director being evaluated. The Nomination Remuneration Committee also carried out evaluation of every director's performance.
The evaluation was done after taking into consideration inputs received from the Directors, setting out parameters of evaluation. Evaluation parameters of the Board and Committees were mainly based on Disclosure of Information, Key functions of the Board and Committees, Responsibilities of the Board and Committees, etc. Evaluation parameters of
Individual Directors including the Chairman of the Board and Independent Directors were based on Knowledge to Perform the Role, Time and Level of Participation, Performance of Duties and Level of Oversight and Professional Conduct etc.
Independent Directors in their separate meeting evaluated the performance of Non-Independent Directors, Chairman of the Board and the Board as a whole.
20. CORPORATE SOCIAL RESPONSIBILITY
The Company does not fall under the criteria laid under the provisions of Section 135 of the Companies Act 2013 and rules framed there under for the year ended 31st March 2024. Therefore, the provisions of Corporate Social Responsibility are not applicable to the Company during the period.
21. AUDITORS:
i. Statutory Auditors:
The Board has re-appointed M/s K M A & Co., Chartered Accountants as the statutory auditors of the Company for 2nd term of five consecutive years, from the conclusion of 32nd Annual General Meeting till the conclusion of the 38th Annual General Meeting to be held in the year 2024-25, as approved by shareholders of the Company.
ii. Secretarial Auditor:
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. Satyajit Mishra & Co., a firm of Company Secretaries in Practice (CP No. 4997), to undertake the Secretarial Audit of the Company for the F.Y. 2023-24 and F.Y. 2024-25 in its meeting held on November 06, 2023. The Secretarial Audit Report for F.Y. 2023-24 is annexed herewith as "Annexure II".
iii. Cost Auditor:
The provisions of Section 148 of the Companies Act, 2013 is not applicable to the Company.
iv. Internal Auditor:
The Board of Directors based on the recommendation of the Audit Committee and pursuant to the provisions of section 138 of the Act read with the Companies (Accounts) Rules, 2014, has appointed M/s RSL & Co., Chartered Accountants as the Internal Auditors of your Company for the F.Y. 2023-24 and F.Y. 2024-25. The Internal Auditor conducts the internal audit of the functions and operations of the Company and reports to the Audit Committee and Board.
22. AUDITOR'S REPORT:
The Auditor's Report and Secretarial Auditor's Report does not contain any qualifications, reservations or adverse remarks. Report of the Auditors is given as an Annexure which forms part of this report.
23. VIGIL MECHANISM / WHISTLE BLOWER POLICY:
Pursuant to the provisions of Section 177(9) of the Act, read with the Rules made thereunder, the Company has adopted a Whistle-Blower Policy for Directors and Employees to report genuine concerns and to provide adequate safeguards against victimization of persons who may use such mechanism. The functioning process of this mechanism has been more elaborately mentioned in the Corporate Governance Report which forms part of this
Annual Report. The said Policy is available on Company's website at https://www.sunitatools.com/
24. INTERNAL AUDIT & CONTROLS:
Pursuant to provisions of Section 138 read with rules made there under, the Board has appointed M/s RSL & Co., Chartered Accountants, as an Internal Auditors of the Company to check the internal controls and functioning of the activities and recommend ways of improvement. The Internal Audit is carried out on half yearly basis; the report is placed in the Audit Committee Meeting and the Board Meeting for their consideration and direction.
The Internal Financial Controls with reference to financial statements as designed and implemented by the Company are adequate. During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls.
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory and secretarial auditors and external consultants and the reviews performed by management and the relevant board committees, including the audit committee, the board is of the opinion that the Company's internal financial controls were adequate and effective during the financial year 2023-24.
25. RISK ASSESSMENT AND MANAGEMENT:
The Company has been on a continuous basis reviewing and streamlining its various operational and business risks involved in its business as part of its risk management policy. The Company also takes all efforts to train its employees from time to time to handle and minimize these risks.
26. LISTING WITH STOCK EXCHANGES:
Sunita Tools Limited is listed on the SME Platform of the BSE Limited. It has paid the Annual Listing Fees for the year 2024-25 to BSE Limited.
27. COMPLIANCE WITH SECRETARIAL STANDARDS:
In terms of Section 118(10) of the Act, the Company is complying with the Secretarial Standards issued by the Institute of Company Secretaries of India and approved by Central Government with respect to Meetings of the Board of Directors and General Meetings.
28. *PARTICULARS OF EMPLOYEES AND REMUNERATION
The information required under Section 197 & Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given below.
a) The median remuneration of employees of the Company during the financial year is Rs. 2,35,500
b) Percentage increase/decrease in the median remuneration of employees in the financial year 2023-24 : Not Applicable
c) Number of permanent employees on the rolls of the Company as on March 31, 2024: 50 (Fifty)
d) It is hereby affirmed that the remuneration paid during the year is as per the Remuneration policy of the Company.
e) There is no employee covered under the provisions of section 197(14) of the Companies Act, 2013.
There was no employee in the Company who drew remuneration of Rs. 1,00,00,000/ - per annum during the period under review. Hence, the Company is not required to disclose any information as per Rule 5(2) of the Companies (Appointment and Remuneration) Rules, 2014.
29. POLICIES AND DISCLOSURE REQUIREMENTS:
In terms of provisions of the Companies Act, 2013 the Company has adopted following policies which are available on its website https://www.sunitatools.com/
30. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO:
i. Conservation of Energy
a) The steps taken or impact on conservation of energy The Operations of the Company are not energy intensive. However, adequate measures have been initiated for conservation of energy.
b) The steps taken by the Company for utilizing alternate source of energy Company shall consider on adoption of alternate source of energy as and when necessities.
c) The Capital Investment on energy conversation equipment No Capital Investment yet.
ii. Technology Absorption
a) The efforts made towards technology absorption. Minimum technology required for Business is absorbed.
b) The benefits derived like product improvement, cost reduction, product development or import substitution Not Applicable.
c) In case of imported technology (imported during the last three years reckoned from the beginning of the financial year) Not Applicable.
1. the details of technology imported;
2. the year of import;
3. whether the technology been fully absorbed;
4. if not fully absorbed, areas where absorption has not taken place, and the reasons thereof
iii. The expenditure incurred on Research and Development Not Applicable.
iv. Foreign exchange earnings and Outgo - Not Applicable.
31. PARTICULARS OF LOANS, INVESTMENTS AND GUARANTEES:
The Board has obtained approval from the shareholders of the company in Extra Ordinary General Meeting of the company by way of Special Resolution to authorize the Board of Directors (hereinafter referred to as "the Board" which term shall include any Committee thereof) for making Investments in other bodies corporate / giving Loans to any other person / providing Guarantees / Securities on behalf of loan availed by any other person, from time to time, on such terms and conditions and with or without security as the Board of Directors may think fit which, together with the investments made / loans given / guarantees / securities already made by the Company, which may exceed 60% of paid up share capital and free reserves and securities premium OR 100% of free reserves and securities premium, that is to say, reserves not set apart for any specific purpose, whichever is more, provided that the total amount of investments made / loans given / guarantees / securities already made by the Company, shall not at any time exceed the limit of Rs. 100,00,00,000/- (Rupees Hundred Crores Only). However, the Board has yet not given any loan.
32. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
No contracts / arrangements / transactions entered by the Company during the financial year with related parties. Thus Disclosure in form AOC-2 is not required. Further, 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 details of the related party transactions as required under Indian Accounting Standard (IND-AS) 24 are set out in Note to the financial statements forming part of this Annual Report.
33. DEPOSITS:
The Company did not accept / hold any deposits from public / shareholders during the year under review.
34. PREVENTION OF INSIDER TRADING:
In compliance with the provisions of the Securities and Exchange Board of India (Prohibition of Insider Trading)
Regulations, 2015, as amended, the Company has formulated and adopted the revised "Code of Conduct for Prevention of Insider Trading" ("the Insider Trading Code"). The object of the Insider Trading Code is to set framework, rules and procedures which all concerned persons should follow, while trading in listed or proposed to be listed securities of the Company. During the year, the Company has also adopted the Code of Practice and Procedures for Fair Disclosure of Unpublished Price Sensitive Information ("the Code") in line with the SEBI (Prohibition of Insider Trading) Amendment Regulations, 2018. The Code is available on the Company's website https://www.sunitatools.com/
35. RELATED PARTY TRANSACTIONS
All transactions entered into with related parties as defined under the Act during the FY 2023-24 were in the ordinary course of business and on an arm's length pricing basis and do not attract the provisions of Section 188 of the Act. There were no materially significant transactions with the related parties during the FY which were in conflict with the interest of the Company.
36. SIGNIFICANT AND MATERIAL ORDERS:
There are no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Company's operations in future.
37. FRAUD REPORTING
There have been no frauds reported by the Auditors of the Company to the Audit Committee or the Board of Directors under sub-section (12) of section 143 of the Companies Act, 2013 during the financial year.
38. OBLIGATION OF COMPANY UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
The Company has in place an Anti-Sexual Harassment Policy in line with the Requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013 and an Internal Complaints Committee has been set up to redress complaints received regarding Sexual Harassment at workplace, with a mechanism of lodging & redress the complaints. All employees (permanent, contractual, temporary, trainees, etc.) are covered under this policy.
Your Directors further state that pursuant to the requirements of Section 22 of Sexual Harassment of Women at Work place (Prevention, Prohibition & Redressal) Act, 2013 read with Rules there under, the Company has not received any complaint of sexual harassment during the year under review.
39. HUMAN RESOURCES:
The Company has established an organization structure that is agile and focused on delivering business results. With regular communication and sustained efforts it is ensuring that employees are aligned on common objectives and have the right information on business evolution.
40. CORPORATE GOVERNANCE:
In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 exempts companies which have listed their specified securities on SME Exchange from compliance with corporate governance provisions.
Since the equity share capital of your Company is listed exclusively on the SME Platform of BSE, the Company is exempted from compliance with Corporate Governance requirements, and accordingly the reporting requirements like Corporate Governance Report, Business Responsibility Report etc. are not applicable to the Company.
41. DISCLOSURES:
The following disclosures are not applicable to the company:
1. The details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year alongwith their status as at the end of the financial year.
2. The details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof.
42. DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 134(5) of the Companies Act, 2013, the board of directors, to the best of their knowledge and ability, confirm that:
i. In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures.
ii. 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 the Company at the end of the financial year and of the profit of the Company for that period.
iii. 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 the Company and for preventing and detecting fraud and other irregularities.
iv. They have prepared the annual accounts on a going concern basis.
v. They have laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively.
vi. They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
43. CAUTIONARY STATEMENTS:
Statements in this Annual Report, particularly those which relate to Management Discussion and Analysis describing the Company's objectives, projections, estimates and expectations may constitute ‘forward looking statements' within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied in the statement depending on the circumstances.
44. ACKNOWLEDGEMENTS:
The Directors would like to express deep sense of appreciation for the assistance and co-operation received from the Financial Institutions, Banks, Government Authorities and Shareholders and for the devoted service by the Executives, staff and workers of the Company. The Directors express their gratitude towards each one of them.
(Formerly known as Sunita Tools Private Limited)