BOARD'S REPORT
Dear Members
Your directors are pleased to present the Seventeenth Annual Report of the Company covering the operating and financial performance together with the Audited Financial Statements and the Auditors' Report thereon for the Financial Year ended on March 31, 2024.
1. FINANCIAL RESULTS:
During the year under review, the performance of the company is as follows:
2. STATE OF COMPANY AFFAIRS AND FUTURE OUTLOOK:
During the year under review, the company has made Standalone Revenue from Operations of Rs. 12,185.03 Lakh and Net Profit after Tax of Rs. 1,130.64 lacs. The Board of Directors of your Company is optimistic about the future prospects of the Company. Your directors are of the view that the progressive growth of the company will continue in the subsequent financial year and are hopeful for bright future prospects. The financial result as reflected in the statement of profit and loss account of the company is self-explanatory.
3. TRANSFER TO RESERVES:
The Board has decided to transfer Rs. 1,130.64 Lakhs net profit to the Reserves for the year under review.
4. DIVIDEND:
The Board of Directors of your company, after considering holistically the relevant circumstances and keeping view the company's dividend distribution policy, has decided it would be prudent, not to recommend any Dividend for the year ended on 31st March, 2024 and the entire surplus be ploughed back to the reserve of the company.
5. SHARE CAPITAL:
During the year under review, the Company has made changes in the share capital the details of the same are mentioned below:
i. Authorized Share Capital:
The Company's Authorized share capital has increased from Rs. 2,60,00,000/- (Rupees Two Crores Sixty Lakhs) comprising of 26,00,000 (Twenty Six Lakhs) equity share of Rs. 10 (Ten rupees) to Rs. 18,00,00,000/- (Rupees Eighteen Crores only) comprising of 1,80,00,000 (One Crore Eighty Lakh) equity share of Rs. 10 (Ten rupees) each, vide Ordinary Resolution passed at their Shareholder Meeting dated 23rd day of April 2023.
ii. Paid Up Share Capital:
The Company's paid-up share capital has been increased by the way of a Bonus Issue of Equity Shares from Rs. 2,60,00,000 (Rupees Two Crores Sixty Lakh only) comprising of 26,00,000 (Twenty Six Lakhs) Equity Shares of Rs. 10/- each to 10,40,00,000 (Rupees Ten Crore Forty Lakhs only) comprising of 1,04,00,000 (One Crore Four Lakh) equity shares of Rs.10/- each vides Ordinary Resolution passed at their Extra Ordinary General Meeting dated 05th May, 2023.
6. DETAILS OF UTILISATION OF FUNDS AND STATEMENT OF DEVIATION OR VARIATION
Pursuant to Regulation 32 (l) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations/LODR') there was no deviation/variation in the utilization of proceeds as mentioned in the Prospectus.
7. CHANGES IN NATURE OF BUSINESS:
There is no change in the nature of the business of the Company.
8. DETAILS OF IPO:
a. The company launched an IPO with a total size of ^45.16 crores (Rupees Forty- Five Crores and Sixteen Lakhs Only).
b. The issue comprised 4,656,000 equity shares.
c. This was a book-built issue, slated for listing on the NSE SME exchange.
d. The IPO witnessed an overall subscription of 91.65 times, with exceptionally high demand from Non-lnstitutional Investors (Nil) who subscribed 200.78 times. Retail investors also showed strong interest, with the issue subscribed 75.88 times in this category.
9. LISTING WITH STOCK EXCHANGE:
The shares of the company are listed on BSE Limited (BSE) SME Platform w.e.f. October 03, 2023.
10. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND
Pursuant to the Section 124 applicable provisions of the Companies Act, 2013, read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 ("IEPF Rules"), all the unpaid or unclaimed dividends are required to be transferred to the IEPF established by the Central Government, upon completion of seven (7) years. Further, according to the Investor Education and Protection Fund ("IEPF") Rules, the shares in respect of whi ch dividend has not been paid or claimed by the Shareholders for seven (7) consecutive years or more shall also be transferred to the Demat account created by the IEPF Authority. The company does not have any unpaid or unclaimed dividends or shares relating thereto which is required to be transferred to the IEPF as on the date of this Report.
11. DEPOSITS:
During the year the Company has not accepted or renewed any deposits from the public in terms of the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules made there under hence information regarding outstanding deposits is not required.
12. SUBSIDIARY, JOINT VENTURE AND ASSOCIATE COMPANY:
The Company has no subsidiaries, joint venture or an associate Company.
13. DETAILS OF CHANGE IN COMPOSITION OF DIRECTORS OR KEY MANAGERIAL PERSONNEL:
• Constitution of Board:
The Board of the Company comprises Executive Directors, Non-Executive and Independent Directors. In terms of Section 149 of the Companies Act, 2013 and rules made there under and Listing Regulations, the Company has three Non- Promoter Non-Executive Independent Directors. In the opinion of the Board of Directors, all three Independent Directors of the Company meet all the criteria mandated by Section 149 of the Companies Act, 2013 and rules made there under and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and they are Independent of Management.
A separate meeting of Independent Directors was held on January 24 2024, to review the performance of Non-Independent Directors and the Board as a whole and the performance of the Chairperson of the Company including assessment of quality, quantity and timeliness of flow of information between Company management and Board that is necessary for the board of directors to effectively and reasonably perform their duties.
The Company has received a declaration from the Independent Directors of the Company under Section 149(7) of the Companies Act, 2013 and 16(l)(b) of Listing Regulations confirming that they meet the criteria of Independence as per relevant provisions of Companies Act, 2013 for the financial year 2023-24. The Board of Directors of the Company has taken on record the said declarations and confirmation as submitted by the Independent Directors after undertaking due assessment of the veracity of the same. In the opinion of the Board, they fulfil the conditions for Independent Directors and are independent of the Management. All the Independent Directors have confirmed that they comply with Rules 6(l) and 6(2) of the Companies (Appointment and Qualification of Directors) Rules, 2014, concerning registration with the data bank of Independent Directors maintained by the Indian Institute of Corporate Affairs.
None of the Independent Directors have resigned during the year.
• Retirement by Rotation
In accordance with the provisions of the Articles of Association and Section 152 of the Companies Act, 2013, Mrs. Chitra Vijay Latkar (DIN: 03291988), an Non-Executive Director of the Company retires by rotation at the ensuing Annual General Meeting. She, being eligible, has offered herself for re-appointment as such and seeks re-appointment. The Board of Directors recommends her appointment to the Board. The relevant details, as required under Regulation 36 (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") and Secretarial Standards-ll issued by ICSI, of the person seeking reappointment as Directors are annexed to the Notice convening the 15th Annual General Meeting. The details of re-appointment has been attached as Annexure - I
• Cessation
During the year under review, there is no cessation from Directorship.
• Key Managerial Personnel
14. DECLARATION BY INDEPENDENT DIRECTORS
The Company has received declaration pursuant to Section 149(7) of the Companies Act, 2013 from each of its Non-Executive and Independent Directors to the effect that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013, Regulation 16(l) (b) and Regulation 25 of the SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as "Listing Regulations"). These declarations have been placed before and noted by the Board.
15. DIRECTORS RESPONSIBILITY STATEMENT:
The Directors' Responsibility Statement referred to in clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, shall state:
a. That in the preparation of Annual Accounts, the mandatory Accounting Standards have been followed along with proper explanation relating to material departures.
b. That proper accounting policies have been selected and applied consistently; and, the judgments and estimates that are made are reasonable and prudent to give a true and fair view of the state of affairs of the company as on 31st March 2024 and of the Profit of the Company for that period.
c. That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the Companies Act, 2013, for safeguarding the assets of the company and preventing and detecting fraud and other irregularities.
d. That the Annual Accounts have been prepared on a going concern basis.
e. That the directors laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively.
f. That the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
16. COMPOSITION OF THE BOARD AND VARIOUS COMMITTEES AND THEIR MEETING:
The Board of Directors along with its committees provide leadership and guidance to the Management and directs and supervises the performance of the Company, thereby enhancing stakeholder value.
• BOARD OF DIRECTORS:
The Board has a fiduciary relationship in ensuring that the rights of all stakeholders are protected. The Board of Saakshi Medtech and Panels Limited comprises of Executive (Whole-Time) and Non-Executive Directors. Independent Directors are eminent persons with proven records in diverse areas like business, accounting, finance, economics, administration, etc. The composition of the Board of Directors represents an optimal mix of professionalism, qualification, knowledge, skill sets, track record, integrity, expertise and diversity. The Board of Directors, as on March 31, 2024, comprised of 6 Directors, out of which 1 was Executive Director ("ED") (MD and Chairman), 2 were Executive Directors Whole Ti - me Directors ("EDs") of which 1 Director is Whole Time Director CFO and 2 were Non Executive Directors ("NEDs") Independent Directors ("IDs")
• COMPOSITION OF BOARD:
• BOARD MEETINGS:
The Board of Directors duly meet 11 times at regular intervals during the mentioned financial year and in respect of which meetings proper notices were given and the proceedings were properly recorded and signed in the Minutes Book maintained for the purpose. The intervening gap between the two meetings was within the period prescribed under the Companies Act, 2013.
The dates on which meetings were held are as follows:
Extra - Ordinary General Meetings:
• COMMITTEES OF THE BOARD:
The Board of Directors has constituted the following Commitiees and their details are hereunder:
a) NOMINATION AND REMUNERATION COMMITTEE:
As per provision of section 178, Schedule V and other applicable provisions of the Companies Act, 2013 read with rule 6 of the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required to constitute a Nomination and Remuneration Committee. Hence, the Board constituted Nomination and Remuneration Committee which consists of Three Independent Directors as on 31st March, 2024. The detailed composition of the members of the Nomination and Remuneration Committee at present is given below:
NOMINATION AND REMUNERATION COMMITTEE
In terms of requirements prescribed under Section 178(3) of the Companies Act, 2013, the Nomination and Remuneration Policy inter-alia provides the terms for appointment and payment of remuneration to Directors and Key Managerial Personnel.
The Nomination and Remuneration Policy, as adopted by the Board of Directors, is placed on the website of the Company at https://https://www.smtpl.co.
During the year NOMINATION AND REMUNERATION COMMITTEE was met one time.
b) AUDIT COMMITTEE:
As per provision of section 177 and other applicable provisions of the Companies Act, 2013 read with rule 6 of the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required to constitute an Audit Committee. Hence, the Board constituted an Audit Commitiee which consists of Two Independent Directors and One Executive Director as on 31st March, 2024. The detailed composition of the members of the Audit Commitiee at present is given below:
c) STAKEHOLDER RELATIONSHIP COMMITTEE:
As per provision of section 178 sub-section (5) and other applicable provisions of the Companies Act, 2013 read with rule 6 of the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required to constitute a Stakeholder Relationship Committee. Hence, the Board constituted a Stakeholder Relationship Committee which consists of Two Independent Directors and One Executive Director as on 31st March, 2024. The detailed composition of the members of the Stakeholder Relationship Committee at present is given below:
STAKEHOLDER RELATIONSHIP COMMITTEE
d) CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:
As per provision of section 135 sub-section (l) and other applicable provisions of the Companies Act, 2013 read with a rule made under the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required to constitute Corporate Social Responsibility Committee. Hence, the Board constituted the Corporate Social Responsibility Committee which consists of Two Independent Directors and One Executive Director as on 31st March 2024. The detailed composition of the members of the Stakeholder Relationship Committee at present is given below:
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
17. DETAIL OF FRAUD REPORTED BY AUDITORS:
During the year under review, there was no fraud reported by the auditors to the Board under Section 143(l2) of the Companies Act, 2013.
18. POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION:
The Company has formed Nomination and Remuneration Committee which has framed Nomination and Remuneration Policy. The Committee reviews and recommends to the Board of Directors about remuneration for Directors and Key Managerial Personnel and other employee up to one level below Key Managerial Personnel. The Company does not pay any remuneration to the Non-Executive Directors of the Company other than a signing fee for attending the Meetings of the Board of Directors and Committees of the Board. Remuneration to Executive Directors is governed under the relevant provisions of the Act and approvals.
The Company has devised the Nomination and Remuneration Policy for the appointment, reappointment and remuneration of Directors and key Managers. All the appointment, reappointment and remuneration of Directors and Key Managerial Personnel are as per the Nomination and Remuneration Policy of the Company. The Nomination and Remuneration Policy is also available on the website of the Company https://www.smtpl.co/ in the head of Policies and Code.
The Board of Directors of the Company has laid down a code of conduct for all the Board Members and Senior Management of the Company. The main object of the Code is to set a benchmark for the Company's commitment to values and ethical business conduct and practices. Its purpose is to conduct the business of the Company in accordance with its value systems, fair and ethical practices, applicable laws, rules and regulations. Further, the Code provides for the highest standard of professional integrity while discharging the duties and to promote and demonstrate professionalism in the Company.
All the Board Members and Senior Management of the Company have affirmed compliance with the code of conduct for the financial year ended on March 31, 2024, as required by Regulation 26(3) of the Listing Regulations. A declaration signed by the Chairman and Managing Director to this effect attached as a part of this Annual Report in Annexure II The code of conduct is also available on the website of the Company https://www.smtpl.co/.
19. POLICY FOR PREVENTION OF INSIDER TRADING:
The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 came into effect from May 15, 2015 to put in place a framework for prohibition of insider trading in securities and to strengthen the legal framework thereof. Pursuant to Regulation 8 of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, the Company has formulated and adopted the Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information ("Code of Fair Disclosure") of the Company. The Code of Fair Disclosure is available on the website of the Company https://www.smtpl.co/. Further, pursuant to Regulation 9 of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, the Company has formulated and adopted the Code of Conduct for Prevention of Insider Trading. The Code lays down guidelines and procedures to be followed and disclosures to be made while dealing with the shares of the Company and cautioning them on the consequence of non-compliances. The Company Secretary has been appointed as a Compliance Officer and is responsible for monitoring adherence to the Code. The code of conduct to regulate, monitor and report trading by insiders is also available on the website of the Company https://www.smtpl.co/.
20. VIGIL MECHANISM/WHISTLE BLOWER POLICY:
The Company is committed to principles of professional integrity and ethical behavior in the conduct of its affairs. The Whistle-blower Policy provides for adequate safeguards against victimization of director(s)/employee(s) who avail of the mechanism and also provides for direct access to the Chairperson of the Audit Committee. It is affirmed that no person has been denied access to the Audit Committee. The Compliance Officer and Audit Committee is mandated to receive the complaints under this policy. The Board every year has presented an update on the whistleblower policy. Whistle Blower policy is available on the website of the Company at https://www.smtpl.co/. The Policy ensures complete protection to the whistle-blower and follows a zero-tolerance approach to retaliation or unfair treatment against the whistle-blower and all others who report any concern under this Policy. During the year under review, the Company did not receive any complaint of any fraud, misfeasance etc. The Company's Whistle Blower Policy (vigil Mechanism) has also been amended to make employees aware of the existence of policies and procedures for inquiry in case of leakage of Unpublished Price Sensitive Information to enable them to report on leakages, if any, of such information.
21. BOARD EVALUATION
The Board evaluated the effectiveness of its functioning, that of the Commitiees and of individual Directors, pursuant to the provisions of the Act and SEBI Listing Regulations.
The Board sought the feedback of Directors on various parameters including:
• Degree of fulfillment of key responsibilities towards stakeholders (by way of monitoring corporate governance practices, participation in the longterm strategic planning, etc.);
• Structure, composition, and role clarity of the Board and Committees; (
V
• Extent of co-ordination and cohesiveness between the Board and its Committees;
• Effectiveness of the deliberations and process management;
• Board/Committee culture and dynamics; and
• Quality of relationship between Board Members and the Management.
The evaluation frameworks were the following key areas:
1. For Non-Executive and Independent Directors:
• Knowledge
• Professional Conduct
• Comply Secretarial Standard issued by ICSI Duties,
• Role and functions
2. For Executive Directors:
• Performance as leader
• Evaluating Business Opportunity and analysis of Risk Reward Scenarios
• Key set investment goal
• Professional conduct and integrity
• Sharing of information with Board.
• Adherence applicable government law.
22. RISK MANAGEMENT POLICY:
The Company is aware of the risks associated with the business. It regularly analyses and takes corrective actions for managing/mitigating the same. The Company has framed a formal Risk Management Policy for risk assessment and risk minimization which is periodically reviewed to ensure smooth operation and effective management control which is also available on our website https://www.smtpl.co/. The Audit Committee also reviews the adequacy of the risk management framework of the Company, the key risks associated with the business and measures and steps in place to minimize the same.
23. DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013:
Your Company provides equal opportunities and is commitied to creating a healthy working environment that enables our Minds to work with equality and without fear of discrimination, prejudice, gender bias or any form of harassment at the workplace. The Company has in place a Prevention of Sexual Harassment (POSH) policy in accordance with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 which is also available on our website https://www.smtpl.co/.
24. AUDITORS:
I. STATUTORY AUDITORS:
The Company has appointed M/s. Kishor Gujar and Associates, Chartered Accountants, Pune having Firm Registration No. FRN- 116747W, as the Statutory Auditor of the company for five consecutive years at the Annual General Meeting held on 30th September 2023 until the conclusion of the Annual General Meeting of the Company in the year 2028. The Auditors' Report for the financial year ended on March 31, 2024 has been provided in "Financial Statements" forming part of this Annual Report. The report of the Statutory Auditor does not contain any qualification, reservation, adverse remark or disclaimer. The observations made in the Auditor's Report are self- explanatory and therefore do not call for any further comments.
II. INTERNAL AUDITORS:
M/s. A. H. Joshi and Co. (FRN: 112396W) has been appointed as an Internal Auditor of the company on 20th December 2023 for the Financial Year 2022-23 and 2023-24 and will continue until resolved further. Internal Auditor is appointed by the Board of Directors of the Company on a yearly basis and based on the recommendation of the Audit Committee. The Internal Auditor reports their findings on the Internal Audit of the Company, to the Audit Committee on a half- yearly basis. The scope of the internal audit is approved by the Audit Committee. 54
III. SECRETARIAL AUDITOR:
Pursuant to Section 204 of the Companies Act, 2013 and rules made thereunder, the Company has appointed M/s. Aditya Patil & Co., Practicing Company Secretaries as Secretarial Auditor of the Company for the financial year ended on March 31, 2024. The Secretarial Audit Report in Form MR-3 for the financial year ended on March 31, 2024 is approached to the Director's Report and forms part of this Annual Report (Annexure - III). The report of the Secretarial auditor does not contain any qualification, reservation, adverse remark or disclaimer.
25. DIRECTORS' RESPONSE ON AUDITORS' QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMER MADE:
There is no qualification or Disclaimer of Opinion in the Auditor's Report on the Financial Statements to the shareholders of the Company made by the Statutory Auditors in their Auditors.
26. COMPLIANCE WITH SECRETARIAL STANDARDS:
The Company has articulated proper systems to ensure compliance with Secretarial Standards Secretarial Standards issued by The Institute of Company Secretaries of India and its provisions and complies with the same.
27. ANNUAL RETURN:
In accordance with Sections 134(3)(a) 61 92(3) of the Companies Act, 2013 read with Rule 12(l) of the Companies (Management and Administration) Rules, 2014. The annual return in Form No. MGT-7 for the financial year 2023- 24 will be available on the website of the Company (https://www.smtpl.co/). The due date for filing annual returns for the financial year 2023- 24 is within a period of sixty days from the date of the annual general meeting. Accordingly, the Company shall file the same with the Ministry of Corporate Affairs within the prescribed time and a copy of the same shall be made available on the website of the Company (https://www.smtpl.co/) as is required in terms of Section 92(3) of the Companies Act, 2013.
28. CORPORATE GOVERNANCE:
As per the Regulation 15 (Listing Obligations and Disclosure Requirements) Regulations, 2015 applicability of Corporate Governance shall not be mandatory for companies listed on the SME Platform. Since our company has registered on the SME platform the requirement of Corporate Governance does not apply to us.
29. MANAGEMNET DISCUSSION AND ANALYSIS REPORT:
The Management Discussion and Analysis Report as required under Regulation 34(2)(e) read with Schedule V Part B of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations, 2015") is annexed herewith as (Annexure IV)
30. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013:
The details of loans/guarantees/ investments (if any) made by the Company under Section 186 of the Companies Act, 2013 have been disclosed in the Financial Statement.
31. LOANS FROM DIRECTOR/ RELATIVE OF DIRECTOR:
The opening and closing balances of funds accepted by the Company from Directors and their relatives have been disclosed in the Financial Statement. These funds were provided from the Director's personal resources and not from borrowed sources.
32. PARTICULARS OF CONTRACTS OR ARRANGEMENTS 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 an 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. Accordingly, the disclosure of Related Party Transactions as required under Section 134(3) of the Companies Act in Form AOC-2 is not applicable. The attention of the members is drawn to the disclosures of transactions with the related parties is set out in Notes to Accounts forming part of the financial statement.
33. CORPORATE SOCIAL RESPONSIBILITY:
Pursuant to section 135 of the Companies Act. 2013 read with Rule 5 of the Corporate Social Responsibility Rules, 2014 and any other applicable provisions thereof (including any statutory modification(s) or re-enactment thereof for the time being in force) as amended from time to time, and as per the company CSR policy approved by the Board of Director and as recommended by the Corporate Social Responsibility Commitiee consent of the Board of Directors be and is hereby accorded to approve the Contribution for the Financial Year 2023-24 of Rs. 22,01,593 (Rupees Twenty Two Lakh One Thousand Five Flundred Ninety Three) as the CSR Expenditure.
During the financial year 2023-24 company has made the payment of CSR Contribution to below NGO's (eligible to take CSR) for purpose of different activities:
1. Payment of Rs. 1.5 lakhs was made to Ishwar Puram Charitable Trust on 01st October, 2023.
2. Payment of Rs. 10 lakhs was made to BVP South Pune Charitable Trusts Parvati on 10th February, 2024.
3. Payment of Rs. 4 lakhs was made to Ishwar Puram Charitable Trust on 29th February, 2024.
4. Payment of Rs. 6.52 lakhs was made to Rotary Club of Chinchwad Charitable Trust on 29th February, 2024.
34. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for the orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and merely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.
35. PARTICULARS OF EMPLOYEES:
The information required under Section 197 of the Companies Act, 2013 read with rule 5(l) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are as follows:
I. The ratio of the remuneration of each director to the median remuneration of the employees of the Company and the percentage increase in remuneration of each Director, Chief Executive Officer, Chief Financial Officer and Company Secretary in the financial year:
-
II. The percentage increase in the median remuneration of employees in the financial year: 15.67 %
III. The number of permanent employees on the rolls of Company: 120
IV. The average percentile increase in salaries of employees, excluding managerial personnel, during the last financial year, has been compared with the percentile increase in managerial remuneration. Justifications for these adjustments have been provided, along with any exceptional circumstances that may have warranted an increase in managerial remuneration.
V. Affirmation that the remuneration is as per the remuneration policy of the Company. The Company affirms that the remuneration is as per the remuneration policy of the Company. The information pursuant to Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is not applicable to the company as no employee is in receipt of remuneration exceeding Rs. 8,50,000/- per month or Rs. 1,02,00,000/- per annum.
36. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO:
1-1 Conservation of Energy:
The steps taken or impact on the conservation of energy: -
a. The company is puting continuous efforts to reduce the consumption of energy and maximum possible saving of energy.
b. The steps taken by the company for utilizing alternate sources of energy: - The Company has used alternate sources of energy, whenever and to the extent possible
c. The capital investment on energy conservation equipment: - NIL
1.2 Technology Absorption:
a. The effort made towards technology absorption: - Management keep on accessing and adding relevant technology required for our business.
b. The benefits derived like product improvement, cost reduction, product development or import substitution: -Management keeps on evaluating this, recently few products developed to substitute import.
c. In case of imported technology (imported during the last three years reckoned from the beginning of the financial year: - N.A.
d. The expenditure incurred on Research and Development: - we keep on expending to realize new technologies for the Company.
1.3 Foreign Exchange Earnings and Outgo: Further, the details of foreign exchange earnings or outgoings during the year under review as required in accordance with the provisions of section 134 (m) of the Companies Act, 2013 are as follows:
37. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:
During the year under review, there were no significant and/or material orders passed by any Court or Regulator or Tribunal, which may impact the going concern status or the Company's operations in future.
38. INDUSTRIAL RELATIONS:
The company has maintained good industrial relations on all fronts. Your directors wish to place on record their appreciation for the honest and efficient services rendered by the employees of the company.
39. BUSINESS RESPONSIBILITY REPORT:
Pursuant to Regulation 34(2)(f) of the Listing Regulations the Business Responsibility Report is to be given only by the top 1000 listed companies based on market capitalization, therefore the same does not apply to the Company as on March 31, 2024.
40. MAINENTANCE OF COST RECORD:
The Cost audit as specified by the Central Government under section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Amendment Rules, 2014 does not apply to the company. However, the maintenance of cost records is applicable as the turnover of the relevant HSN code is more than the prescribed limit and our company is maintaining the cost record as per the applicable rules.
41. DEMATERIALISATION OF SHARES:
The Demat activation number allotted to the Company is ISIN INE0PSK01027. The shares of your Company are being traded in electronic form and the Company has established connectivity with both the depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
42. INSOLVENCY AND BANKRUPTCY CODE
There is no application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year. The details of the difference between the amount of the valuation done at the time of one-time settlement and the valuation done while taking a loan from the Banks or Financial Institutions along with the reasons thereof does not apply to the Company.
43. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
Your Company has laid down the set of standards, processes and structure which enables to implementation of internal financial control across the Organization and ensures that the same are adequate and operating effectively. To maintain the objectivity and independence of Internal Audit, the Internal Auditor reports to the Chairman of the Audit Commitiee of the Board. The Internal Auditor monitors and evaluates the efficacy and adequacy of the internal control system in the Company, its compliance with the operating systems, accounting procedures and policies of the
Company. Based on the report of the Internal Auditor, the process owners undertake the corrective action in their respective areas and thereby strengthen the Control. Significant audit observations and corrective actions thereon are presented to the Audit Commitiee of the Board.
44. WEB LINK OF ANNUAL RETURN:
The Annual Return of the Company as on 31st March 2024 will be available on the website of the Company at https://www.smtpl.co/
45. ACKNOWLEDGEMENTS:
The Board of Directors greatly appreciates the commitment and dedicati on of employees at all levels who have contributed to the growth and success of the Company. We also thank all our clients, vendors, investors, bankers and other business associates for their continued support and encouragement during the year We also thank the Government of India, Government of Maharashtra, Ministry of Commerce and Industry, Ministry of Finance, Customs and Excise Departments, Income Tax Department and all other Government Agencies for their support during the year and look forward to their continued support in future.
46.CAUTIONARY STATEMENT:
This report contains forward-looking statements based on the perceptions of the Company and the data and information available to the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect the Company's current views of future events and are subject to risks and uncertainties. Many factors like changes in general economic conditions, amongst others, could cause actual results to be materially different.