To,
The Members of
ROCKINGDEALS CIRCULAR ECONOMY LIMITED
Your Directors are pleased to present the 22nd Annual Report on the business and operations of Rockingdeals Circular Economy Limited (the Company or ‘RDCEL') along with the Audited Financial Statements for the Financial Year ended March 31, 2024.
1. FINANCIAL SUMMARY
The Company's standalone financial performance for the year ended 31st March, 2024 is summarized as below:
(Rs In Lakhs)
2. STATE OF COMPANY AFFAIRS
The major highlights pertaining to the business and operations of the Company for the year 2023-24 are given below:
• The Revenue from operations stood at Rs 4956 Lakhs as against Rs1501 Lakhs in the previous year.
• The Profit before Depreciation Interest and tax is Rs 781 Lakhs as compared to Rs 264 Lakhs in the previous year.
• The Profit after tax for the year stood at Rs521 Lakhs as compared to Rs145 Lakhs for the previous year.
• The Earning per Share has also grown to Rs 11.72 as against Rs3.94 in the Previous Year.
3. SUBSIDIARY / ASSOCIATE COMPANY / JOINT VENTURE
Company does not have any Subsidiary Company. However, our company has entered into a strategic partnership with SSL E-Waste Management LLP, under which our company holds 50.01% of capital. SSL E-waste Management LLP ("SSL"). The Strategic partnership between SSL and Rockingdeals CE was agreed on April 03, 2023, through a Memorandum of Understanding. But Company signed an Exit Agreement with M/s SSL E-Waste Management LLP in February, 2024.
4. DIVIDEND
Keeping in view future growth opportunities, your directors consider it prudent to plough back the profits and not to recommend any dividend for the financial year 2023-2024.
5. RESERVES
The Company has not transferred any amount to its reserves, the details in respect of which can be verified from the audited financial statement forming part of this report.
6. SHARE CAPITAL
A. Authorized Capital
During the Financial year, the Company has increased its authorized share capital from Rs. 50,00,000/- (Rupees Fifty Lakhs Only) divided into 5,00,000 (Five Lakhs) equity shares of Rs. 10/- each to Rs. 5,50,00,000/- (Rs. Five Crore Fifty Lakhs only) divided into 55,00,000 (Fifty-Five Lakhs) equity shares of Rs. 10/- (Rupees Ten only) each by the creation of additional 50,00,000 (Fifty Lakh) equity shares of Rs. 10/- (Rupees Ten only) each in the Extra-ordinary General Meeting 01st April, 2023.
Further, in the Extra-ordinary General Meeting held on 31st August, 2023, the Company has increased its authorized share capital from Rs. 5,50,00,000/- (Rs. Five Crore Fifty Lakhs Only) divided into 55,00,000 (Fifty-Five lakhs) Equity shares of Rs. 10/- (Rupees Ten) each to Rs. 5,73,00,000/- (Rupees Five Crores and Seventy-Three Lakhs only) divided into 57,30,000 (Fifty-Seven Lakhs and Thirty Thousand) Equity Shares of Rs. 10/- (Rupees Ten) each by the creation of additional 2,30,000 (Two Lakhs and Thirty- Thousand) equity shares of Rs. 10/- (Rupees Ten only) each.
As on 31st march, 2024, the company has authorized share capital of Rs. 5.73 Crores, divided into 57,30,000 Equity shares of Rs. 10 each.
B. Issued/Subscribed/Paid up Capital
During the Financial year, the Company has increased its Paid- Up Capital from Rs 12,26,290 (Rupees Twelve Lakhs Twenty-Six Thousand and Two Hundred Ninety Only) to Rs 36,78,870 by issuance of
35,56,241 (Thirty-Five Lakh Fifty-Six thousand and Two Hundred and Forty-One only) Equity shares of Rs 10/- each by way of Bonus Issue in the ratio of 29:1 dated 10th April, 2023.
Further, by way of Private Placement dated 15th September, 2023, the Company has increased its Paid- Up Capital from Rs 36,78,870 (Rupees Thirty-Six Lakh Seventy-Eight Thousand Eight Hundred and Seventy Only) to Rs. 4,15,90,000 (Rupees Four Crore Fifteen Lakhs and Ninety Thousand Only) by issuance of 4,80,130 Equity Shares of the Company of face value of INR 10 each at a premium of INR 90 per share amounting to INR 100/- per share only),
Subsequently, the Company has increased its Paid- Up Capital from Rs. 4,15,90,000 (Rupees Four Crore Fifteen Lakhs and Ninety Thousand Only) to Rs. 5,65,90,000 (Rupees Five Crore Sixty Five Lakhs and Ninety Thousand Only) by issuance of 15,00,000 Equity shares of Rs 10/- each at a premium of Rs 130/-
i.e. at an Issue price of Rs. 140/- per share by way of Initial Public Offering (IPO) dated 28th November, 2023.
During the year, the Company has not issued any equity share with differential voting rights hence the disclosure under Rule 4 (4) of the Companies (Share Capital and Debentures) Rules, 2014 is not applicable.
7. COMPOSITION OF BOARD
The Board of Dir ectors of the Company has an optimum composition of Executive, Non-Executive and Independent Directors in compliance with the provisions of Companies Act, 2013 and SEBI (LODR) Regulations, 2015. As on March 31, 2024, Board of Directors comprise of 6 Directors out of which 2 are Executive Directors, 2 are Non-Executive Non-Independent Woman Director and 2 are Non-Executive Independent Directors which is in compliance with the provisions of Companies Act, 2013. All Independent Directors are eminent persons and bring a wide range of expertise and experience to the Board thereby ensuring the best interest of stakeholders and die Company. Following persons comprise the Board:
As per provisions of the Companies Act, 2013 the Independent Directors were appointed in the EGM of the Company held on August 04th, 2023 for a term of 5 (Five) consecutive years commencing from 30.05.2023 to 29.05.2028 and are not liable to retire by rotation. Further. Mrs. Avneetkaur Prabhjotsingh Chandhok was also appointed as the Non-Executive Director in the same EGM whose period of office will be liable to determination by retirement of directors by rotation.
8. DECALARATION BY INDEPENDENT DIRECTORS
The Company has received necessary declarations from Mr. Ravtej Singh Teer and Mr. Prabhkamal Singh Sahni, Independent Directors of the Company confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 ("Act") and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"). In the opinion of the Board, they fulfill the conditions of independence as specified in the Act and the Listing Regulations and are independent of the Management.
9. KEY MANAGERIAL PERSONNEL Changes in KMP:
Following persons are the Key Managerial Personnel of the Company as on March 31, 2024 pursuant to Section 2(51) and Section 203 of the Act, read with the Rules framed there under:
i) Mr. Aman Preet - Managing Director
ii) Mr. Gaurav Gupta - Chief Financial Officer
v) Ms. Deepika Dixit - Company Secretary and Compliance Officer
During the year, Mr. Gaurav Gupta, was appointed as the Chief Financial Officer of the Company and Mr. Aman Preet was appointed as Managing Director of the Company w.e.f. April 01, 2023. Further, Ms. Deepika Dixit, was appointed as the Company Secretary and Compliance Officer of the Company w.e.f. July 03, 2023.
Further, after the financial year ending March 31, 2024, Mr. Gaurav Gupta, Chief Financial officer of the Company, resigned with effect from May 31,2024. Subsequent to his resignation, Mr. Jitender Vermawas appointed as the Chief Financial officer of the Company with effect from June 01, 2024.
Retirement by Rotation:
Pursuant to the provisions of Section 152 of the Companies Act, 2013 read with Rules made thereunder and the Articles of Association of the Company, Mrs. Kulbir Chopra (DIN: 03193553), Non-Executive Director of the Company, is liable to retire by rotation at ensuing Annual General Meeting and being eligible has offered herself for re-appointment. The Board recommends her re-appointment. Profile of the Director seeking re-appointment is given in the Statement under Section 102 of the Companies Act, 2013 to the Notice of the ensuing AGM of the Company.
10. BOARD MEETINGS
The Board of Directors met 24 times dining the year i.e. on 01.04.2023, 10.04.2023, 20.04.2023,
01.05.2023, 03.05.2023, 31.05.2023, 16.06.2023, 03.07.2023, 20.07.2023, 04.08.2023, 08.08.2023,
16.08.2023, 17.08.2023, 02.09.2023, 15.09.2023, 18.09.2023, 22.09.2023, 18.10.2023, 25.10.2023,
14.11.2023, 27.11.2023, 28.11.2023, 21.12.2023 and 29.03.2024. The intervening gap between the
Meetings was within the period prescribed under the Companies Act, 2013. The attendance of each director in the respective Board Meetings is as follows:
Further, the Independent Directors of the Company also met once during the year on October 18, 2023; without the presence of Executive Directors, to review the performance of the Executive Directors and that of the Board as a whole.
11. GENERAL MEETINGS:
During the period under review, the Annual general meeting of the company was held on 14th August, 2023. The company also had Seven (7) Extraordinary General Meetings on 01.04.2023, 10.04.2023,
20.04.2023, 04.08.2023, 19.08.2023, 31.08.2023 and 04.09.2023.
12. COMMITTEES OF THE BOARD & THEIR MEETINGS
With a view to have more focused attention on business and for better governance and accountability; the Board has the following mandatory committees:
1. Audit Committee
2. Nomination and Remuneration Committee
3. Stakeholders Relationship Committee
The terms of reference of these Committees are determined by the Board and their relevance reviewed from time to time. Meetings of each of these Committees are convened by the respective Chairman of the Committee. The Board supervises the execution of its responsibilities by the Committees and is responsible for their action. The minutes and proceedings of the meetings of all Committees are placed before the Board for review. The Minutes of die Committee Meetings are sent to all members of the Committee individually and tabled at the Board Meetings. Following are the details of Board Committees;
As on the financial year ended March 31, 2024; Audit Committee of the Company comprises of two Independent Directors and one Executive Director with Chairman being an Independent Director as required under Section 177 of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.
During the Financial Year 2023-24, Members of Audit Committee met 4 times. Audit Committee Meetings held on July 20, 2023; October 18, 2023; December 21, 2023 and March 29, 2024. The representatives of Statutory Auditors & Internal Auditors, Executives from Accounts & Finance Department are invited to the meetings of the Committee, as and when required. The Internal Auditor reports directly to the Committee. The Company Secretary acts as the Secretary of die Committee. The composition of Audit Committee as on March 31, 2024 and the details of Members attendance at the meetings of the Committee are as under:
All the members of Audit Committee have the requisite qualification for appointment in the Committee and possess sound knowledge of finance, accounting practices and internal controls.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee of the Company comprises of two Independent Directors and an Executive Director with the Chairman being an hidependent Director which meets with the requirements of Seclion 178 of the Act read with SEBI (LODR) Regulations, 2015. The Company Secretary of the Company acts as the Secretary of the Committee.
The members of Nomination and Remuneration Committee met 1 lime during the Financial Year 2023- 24 on October 18, 2023. The composition of Nomination and Remuneration Committee as on March 31, 2024 and the details of Members attendance at the meeting of the Committee are as under:
Stakeholders Relationship Committee
The Stakeholders Relationship Committee of the Company comprises of three Members, out of which two are Independent Directors and one is Executive Director with Chairman being an Independent Director. The composition of the Committee meets with the requirements of Section 178 of the Act read with SEBI (LODR) Regulations, 2015. The Company Secretary of the Company acts as the Secretary of the Committee.
During the Financial Year 2023-24, the Committee met 1 time on October 18, 2023. The composition of the Stakeholders Relationship Committee as on March 29, 2024 and the details of Members attendance at the meetings of the Committee are as under:
13. EVALUATION OF BOARD'S PERFORMANCE
Your Company being listed on SME Exchange - "NSE Emerge" is exempt under Regulation 17(10) of the SEBI (Listing Obhgations and Disclosure Requirements) Regulations, 2015. However, pursuant to the provisions of section 134(3)(p) of Companies Act, 2013, the Board has carried out annual evaluation of the performance of the Board, its Committees and of individual directors based on devised criteria. Furthermore, in a separate meeting of Independent Directors held on October 18, 2023, performance of the Non-Independent Directors and the Board as a whole was also reviewed.
The Company has devised a policy naming (Policy on Nomination & Remuneration and Board Diversity) for performance evaluation of Independent Directors, Board, Committees and other individual directors which includes the criteria and process for the performance evaluation of the Executive/ Non executive Directors, Committees and the board as a whole. The policy is available on the website of the Company
i.e. (https://rdcel.com/investor-relationsA.
The evaluation process inter alia consider attendance of Directors at Board and Committee Meetings, acquaintance with business, communicating inter-se Board Members, effective participation, domain knowledge, compliance with code of conduct, vision and strategy. The Directors expressed then- satisfaction with the evaluation process.
14. REMUNERATION POLICY
The Company has a Policy relating to appointment of Directors, payment of Managerial Remuneration, Director's qualification, positive attributes, independence of Directors and other related matters as provided under Section 178(3) of the Companies Act, 2013 and Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 and is available on the Company's Website
(https://rdcel.com/invcslor-rclationsA.
15. RISK MANAGEMENT
The Company has business Risk Management framework to identify and evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on its business objectives and enhance its competitive advantage. It defines the risk management approach across the Company at various levels including the documentation and reporting. Audit Committee of the Company has been entrusted with responsibility to assist die Board in following matters:
(a) Overseeing the Company's Risk Management process and controls, risk tolerance and Capital Liquidity and funding
(b) Seding Strategic plans and objectives for Risk Management and review of Risk Assessment of the Company
(c) Review of the Company's risk appetite and strategy relating to key risks, including credit risk, liquidity and funding risk, product risk and reputational risk as well as the guidelines and processes for monitoring and mitigating such risks.
During the period under review, the Company has not identified any element of risk which may threaten its existence or are very minimal.
16. WHISTLE BLOWER POLICY AND VIGIL MECHANISM
The Company has adopted a Whistle Blower Policy establishing Vigil Mechanism, to provide a formal mechanism to die Directors and employees to report their concerns about unethical behaviour, actual or
suspected fraud or violation of the Company's Code of Conduct. This Policy provides adequate safeguard against victimization of employees who avail of the mechanism and also provides for direct access to the Chairman of the Audit Committee. It is affirmed that no personnel of the Company has been denied access to the Audit Committee. The Policy of Vigil Mechanism is available on the Company's Websii
(https://rdcel.com/investor-relations/).
17. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 As on 31st march, 2024, there is no Loans or Guarantees provided as covered under the provisions c Section 186 of the Companies Act, 2013. However, the Company has given its property on mortgaged a capacity in Guarantor in favour of company i.e. M/s Rockingdeals Private Limited on the terms an conditions as mentioned in their sanction Letter dated 05th August, 2022. Nevertheless, the loan will respect to which corporate guarantee was given was repaid in March, 2024.
Further, the details of the investments made by the Company are stated in the notes to audited financial statements.
18. INTERNAL FINANCIAL CONTROLS SYSTEM
The internal control systems commensurate with the size, scale and complexity of the operations of tl Company. These have been designed to provide reasonable assurance with regard to recording an providing reliable financial and operational information, complying with the applicable statute safeguarding assets from unauthorized use, executing transactions with proper authorization, and ensuring compliance with corporate policies.
The company has appointed Internal Auditors and the scope & authority of Internal Audit Function defined in the appointment letter issued to the Internal Auditors. In order to maintain its objectivity an Independence, the internal auditor reports directly to the Chairman of the Audit Committee. Based on tl report of the Internal Audit the Company undertakes corrective action in the respective reported areas ( concern thereby strengthening the Internal Controls.
The Audit Committee of die Board of Directors, comprising of Independent Directors, reviews tl effectiveness of the internal control system across the Company including annual plan, significant and findings and recommendations, adequacy of internal controls and compliance with accounting politic and regulations.
19. TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUN (IEPF)
Your Company did not have any funds lying unpaid or unclaimed which were required to be transferred to Investor Education and Protection Fund (IEPF) under Section 125 of Companies Act, 2013.
20. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management's Discussion and Analysis Report for the year under review, as stipulated under the SEE (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), presented in a separate section, forming part of the Annual Report.
21. HUMAN RESOURCES
The Company believes that people are its most valuable assets. To this extent, the Company provides a fair and inclusive environment that promotes new ideas, respect for the individual and equal opportunity to succeed. Experience, merit and performance, leadership abilities, strategic vision, collaborative mindset, teamwork and result orientation are actively promoted and rewarded through an objective appraisal process.
The number of people employed as on March 31, 2024 was 22 (March 31, 2023 was 08). Your Company wishes to put on record its deep appreciation of the co-operation extended and efforts made by all employees.
22. CORPORATE SOCIAL RESPONSIBILITY
The provisions of section 135 of the Companies Act 2013 are not applicable to the Company, hence it was not required to constitute CSR Committee or to formulate CSR Policy in this regard. Further, the Company constantly strives to ensure: strong corporate culture which emphasizes on integrating CSR values with business objectives.
However, upto the approval of this report the provisions of Section 135 become applicable in the current Financial Year 2024-25 due in increase in net profit of the company.
23. PARTICULARS OF EMPLOYEES
Disclosure with respect to die remuneration of Directors and employees as required under Section 197 (12) of Companies Act, 2013 and Rule 5(1) Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been appended as ‘ANNEXURE-I' to this Report.
24. MATERIAL CHANGES BETWEEN THE DATE OF THE BOARD REPORT AND END OF FINANCIAL YEAR
There have been no material changes and commitments, which affect the financial position of the Company which have occurred between the end of the financial period to which die financial statements relate and the date of this Report.
25. AUDITORS AND THEIR REPORT
Statutory Auditor
In terms of the provisions of Section 139 of the Companies Act, 2013, read with provisions of the Companies (Audit and Auditors) Rules, 2014 as amended from time to time, M/s AKAR & Associates, Chartered Accountants, (FRN: 003753N) Delhi, were re-appointed as the Statutory Auditors of the Company for a term of 5 consecutive years in the 22nd Annual General Meeting held on September 30, 2024 till the conclusion of the 27th Annual General Meeting. As well as they were first appointed in the Annual General Meeting held on September 30, 2019 till the conclusion of the 22nd Annual General Meeting
Based on the recommendation of the Audit Committee, your Board at its meeting held on September 06, 2024 has proposed to reappoint M/s AKAR & Associates, Chartered Accountants, (FRN: 003753N) Delhi, as the Auditors of the Company to hold the office from the conclusion of the ensuing 22nd AGM until conclusion of the 27th AGM of your Company to be held in the year 2027.
They have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India as required under the provisions of Regulation 33 of the Listing Regulations
Audit Report
The Auditor's Report for financial year ended 31st March 2024, does not contain any qualification, reservation or adverse remarks. All observations made in the Independent Auditors' Report and notes forming part of the Financial Statements are self-explanatory and do not call for any further comments and also, there is no incident of lfaud requiring reporting by the auditors under section 143(12) of the Companies Act, 2013 during the year under review.
The Auditor's report is enclosed with the financial statements in this Director's Report.
Internal Auditor
M/s Ankur V Goel & Associates, Chartered Accountants, has been appointed as the Internal Auditors to perform die Internal Audit of the Company for the Financial Year 2023-24. The Audit Committee of the Board in consultation with the Internal Auditor formulates the scope, functioning, periodicity and methodology for conducting the internal audit.
Secretarial Auditor
The Board had appointed M/s. Apoorv & Associates, Practicing Company Secretaries (Membership No. F12734, C.P. No. 21063) to undertake the Secretarial Audit of the Company for the Financial Year ended March 31, 2024.
The Secretarial Audit Report for the Financial Year ended March 31, 2024 annexed herewith is marked as Annexure II to this Report. Following observation has been made by the Secretarial Auditor in his report:
Observation No. 1- . During the year under review, we have noted that the Company has filed an MGT- 14 for Special Resolutions passed under section 185, 186 of the Companies Act, 2013 in Extra Ordinary General Meeting held on December 31, 2020 which is beyond 30 days and thus a non-compliance of Section 117 (1) of the Companies Act, 2013 read with Rules made thereunder:
Observation No. 2- According to Section 152(6) of the Companies Act of 2013, In a public Company Directors are liable to retire by rotation at every annual general meeting (AGM). At least two-thirds of the total directors, are liable to retire by rotation and one third are liable to retire at every general meeting after the meeting at which first directors are appointed. And the AGM notice makes this clear that Company has not followed the provisions of Section 152 (6) of the Companies Act of 2013 read with Rules made thereunder.
Observation No. 3-Form MR-1 for appointment of Mr. Aman Preet as Managing Director has been filed twice during the year under review.
Response to Secretarial Audit Observation
Management's Reply to Observation No, 1- The submission of Form MGT-14 was inadvertently overlooked due to an administrative oversight. Upon observing it, we promptly submitted the Form with the additional fees vide challan No. AA3591962 dated 30/08/2023.
Management's Reply to Observation No. 2- In the AGM held on 14th August, 2023 for the financial year 2022-2023, Rotation of Directors took place as documented in the Minutes of the AGM. But unfortunately, the incorrect or outdated copy of notice and Director report was inadvertently appended rather than the updated one in Form AOC-4XBRL.
Management's Reply to Observation No. 3- MR-1 with regards to appointment of Mr. Aman Preet, Managing Director of the Company had been already filed dated 25/04/2023 vide challan No. AA2133269. However, by mistake Form MR-1 filed again with regards to same dated 12/08/2023 vide challan No. AA4094194.
Cost Audit
The provisions of Section 148 of the Companies Act 2013 read with the Companies (Cost and Audit) Rules, 2014 and Rule 14 of the Companies (Audit and Auditor) Rules, 2014 are not apphcable to the Company.
25. CHANGE IN THE NATURE OF BUSINESS
The company had entered into a strategic partnership with SSL E-Waste Management LLP, under which our company holds 50.01% of capital. SSL E-waste Management LLP ("SSL"). The Strategic partnership between SSL and Rockingdeals CE was agreed on April 03, 2023, through a Memorandum of Understanding. But Company signed an Exit Agreement with M/s SSL E-Waste Management LLP in
February, 2024.
26. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
Information on conservation of Energy, Technology absorption, Foreign Exchange earnings and outgorequired to be disclosed under Section 134 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 are provided hereunder:
27. ANNUAL RETURN
The draft Annual Return of the Company for the year ended on March 31. 2024 as approved by the Board is available on the Company's website www.rdcel.com Please, also note that in accordance with the provisions of the Companies Act, 2013, the final annual return will be hosted on website of the Company at the given link after the conclusion of AGM and requisite certifications.
28. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All contracts/transactions entered into by the Company during the financial year with related parties were in the ordinary course of business and on an arm's length basis
All Related Party Transactions are placed before the Audit Committee for review and approval. All Related Party Transactions are subjected to independent review by a reputed accounting firm to establish compliance with the requirements of Related Party Transactions under the Act and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Details of related party transactions for the year under review are given in Form AOC-2 as Annexure- III to this report.
29. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has zero tolerance towards any action on the part of any of its officials, which may fall under the ambit of "Sexual Harassment" at workplace. Pursuant to the provisions of Section 21 of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition, Redressal) Act, 2013, the Company formulated a Policy on Prevention of Sexual Harassment at Workplace. All employees (permanent, contractual temporary, trainees, etc) are covered under this policy. An Internal Complaints Committee (ICC) was constituted which is responsible for redressal of complaints related to sexual harassment at the workplace.
Your Company is committed to maintain good Corporate Governance practices and is committed to the highest standards of compliance. Pursuant to the Regulation 15(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015. the compliance with the corporate governance provisions as specified in the Regulations 17 to 27 and clauses (b) to (i) & (t) of Regulations 46(2) and Para C. D. and E of Schedule V shall not apply to the Company, as the securities of the Company are listed on the SME Exchange (EMERGE platform NSE). Therefore, the Corporate Governance Report is not applicable to the Company.
32. SECRETARIAL STANDARDS
The Company complies with all the applicable Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI).
33. GENERAL
Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items dining the year under review:
a) Details relating to deposits covered under Chapter V of the Companies Act 2013.
b) Issue of equity shares with differential right as to dividend, voting or otherwise.
c) Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and except Employees' Stock Options Plan referred to in this Report.
d) No significant or material orders were passed by the Regulators or Courts or tribunals which impact the going concern status and Company's operation in future.
e) No fraud has been reported by the Auditors to the Audit Committee or die Board.
34. DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016
No application was made and no proceedings are pending against the company under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year under review.
35. DIFFERENCE IN VALUATION
During the year under review, no such settlement was taking place.
36. INDUSTRIAL RELATIONS
During the year under review your Company enjoyed cordial relationship with the workers and employees at all levels.
37. PREVENTION OF INSIDER TRADING
Pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015, the Company has adopted a Code of Conduct for prevention of insider trading with a view to regulate trading in securities by the Directors and designated persons of the Company. The details of Insider Trading Policy is available on the website of the Company at https://rdcel.com/investor-relations/
The code requires trading plan, pre-clearance for dealing in the Company's shares by the Directors and designated persons while in possession of UPSI in relation to the Company and during the period when the trading window is closed. However, there were no such instances in the Company during the year
2023-2024.
38. CODE OF CONDUCT
The Company has in place a comprehensive Code of Conduct and Our Code (the Codes) applicable to the Directors and employees. The Codes give guidance and support needed for ethical conduct of business and compliance of law.
The Codes reflect the core values of the Company viz. Customer Value, Ownership Mindset, Respect, Integrity, One Team and Excellence. A copy of die Code of Conduct and Our Code are available on the website of the Company at www.rdcel.com. The Codes have been circulated to the Directors and Senior Management Personnel and its compliance is affirmed by them annually.
39. POLICY FOR PRESERVATION OF DOCUMENTS
Pursuant to the Regulation 9 of SEBI (LODR), 2015 the Company has maintained the policy of preservation of documents to keep the documents preserve as per Regulation 9(a) & 9(b) of SEBI (LODR), 2015 and the same has been uploaded on the website of the Company on www.rdcel.com
40. ACKNOWLEDGEMENT
Your Directors wish to place on record its sincere appreciation for the assistance and co-operation extended by the employees at all level, customers, vendors, bankers and other associates and look forward to continue fruitful association with all business partners of the company. Your Directors are especially grateful to the shareholders for reposing their trust and confidence in the Company. Our consistent growth is only possible because of their hard work, solidarity, co-operation and support.