To the Members,
The Board of Directors presents the 28TH Integrated Annual Report of Aanchal
Ispat Limited (the Company) along with the audited financial statements for the financial
year ended March 31, 2023.
1. FINANCIAL RESULTS
The Company's financial performance for the year ended 31st March, 2023 is
summarised below:
(` in lakhs)
PARTICULARS |
2022-2023 |
2021-2022 |
Sales and other operating Income |
19,453.67 |
17,441.30 |
Earnings before Interest, Tax, Depreciation & amortization |
(2218.29) |
242.64 |
(EBITDA) |
|
|
Finance costs |
765.15 |
656.52 |
Depreciation and amortization expenses |
63.81 |
61.81 |
Profit/ (loss) before tax |
(3047.25) |
(475.69) |
a) Current Tax |
- |
- |
b) Current Tax Expense relating to Prior Year's |
- |
- |
c) Deferred Tax |
(701.55) |
(122.61) |
Profit/(loss) for the period |
(2345.71) |
(353.09) |
2. RESULTS OF OPERATIONS AND STATE OF THE COMPANY'S AFFAIRS:
The Company's revenue in FY 2022-23 was Rs. 19,453.67 lakhs compare to Rs. 17,441.30
lakhs in the previous financial year. EBIDTA stood at Rs. (2218.29) lakhs in FY 2022-2023
compared to Rs. 242.64 lakhs in the previous financial year. The Company reported a
post-tax loss of Rs. 2345.71 lakhs in FY 2022-2023 compared to a post-tax loss of Rs.
353.09 lakhs in the previous financial year.
3. TRANSFER TO RESERVES
The Company has not transferred any amount to the Reserves for the year ended 31st
March, 2023.
4. DIVIDEND
The Board of Directors does not recommend the payment of any dividend on equity shares
for the year ended 31st March, 2023.
5. CHANGE IN THE NATURE OF BUSINESS
The company is engaged in manufacturing of a wide range of TMT Bars, MS Rounds &
Angles, besides Trading of Steel Products etc. There has been no change in the nature of
business of the Company.
6. SHARE CAPITAL
The paid up Equity Share Capital as at March 31, 2023 stood at `20.85 cores. During the
year under review, the Company has not issued shares or convertible securities or shares
with differential voting rights nor has granted any stock options or sweat equity or
warrants. As on March 31, 2023, none of the Directors of the Company hold instruments
convertible into Equity Shares of the Company.
7. ANNUAL RETURN
In terms of provisions of Section 92(3) of the Companies Act, 2013 and Rule 12 of the
Companies (Management & Administration) Rules, 2014, a copy of the Annual Return as
prescribed under Section 92 of the Companies Act, 2013 forms a part of this report and is
annexed as Annexure "A" and the same can also be assessed at the
website of the Company at www.aanchalispat.com.
8. DEPOSITS
The Company has not accepted any public deposit during the year under review and no
amount against the same was outstanding at the end of the year.
9. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
The company is not having a holding or subsidiary company during the year and no other
company has become a holding/subsidiary/ joint venture.
10. SECRETARIAL STANDARDS OF ICSI
The Ministry of Corporate Affairs has mandated SS-1 and SS-2 with respect to
board/committee meetings and general meetings respectively. The Company has ensured
compliance with the same.
11. REGULATORY STATEMENT
In conformity with the provision of regulation 34(2) (c) of SEBI (LODR), Regulations
2015, the Cash Flow Statement for the year ended 31.03.2023 is annexed hereto. The equity
shares of the Company are listed on the BSE Ltd.
12. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS, AND OUTGO
As required under Section 134 (3) (m) of the Act read with Rule 8 of The Companies
(Accounts) Rules, 2014, particulars relating to conservation of Energy, R & D,
Technology absorption, and foreign exchange earnings/outgo are separately provided in the
annexure to this report as Annexure "B".
13. MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT
As per the terms of Regulation 34(2) read with Schedule V of SEBI Listing Regulations,
Management's Discussion and Analysis Report for the year under review is presented in a
separate section forming part of the Annual Report.
14. DIRECTORS AND KEY MANAGERIAL PERSONNEL
There were changes in the composition of the Board of Directors. None of the Directors
are disqualified from being appointed as Directors, as specified in Section 164 of the
Companies Act, 2013.
Ms. Shikha Jaiswal (DIN: 09733093) appointed as the Non-Executive Independent Director
of the Company with effect from 22nd September, 2022. Mr. Vijay Srivastava
(DIN: 03618949) resigned from the directorship of the company with effect from 13th
December, 2022. Furthermore change in designation of Mr. Manoj Goel from Non-Executive
Director to Whole Time Director of the Company w.e.f 27th March, 2023. None of the
Directors of the Company is disqualified for being appointed as Director, as specified
under section 164(2) of the Companies Act, 2013 and Rule 14(1) of the Companies
(Appointment and Qualification of Directors) Rules, 2014.
Pursuant to the provisions of Section 203 of the Act read with the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, Mr. Mukesh Goel,
Managing Director, Mr. Manoj Goel, Whole Time Director, Mr. Mukesh Kumar Agarwal, Chief
Financial Officer, and Ms. Puja Kaul Company Secretary, are the Key Managerial Personnel
of the Company.
15. RETIREMENT BY ROTATION AND SUBSEQUENT RE-APPOINTMENT
In accordance with the provisions of Section 152 and other applicable provisions, if
any, of the Act (including any statutory modification(s) or re-enactment(s) thereof for
the time being in force) and the Articles of Association of the Company, Mr. Manoj Goel,
Director, is liable to retire by rotation at the ensuing AGM and being eligible have
offered himself for re-appointment. A resolution seeking shareholders' approval for his
re-appointment along with other required details forms part of the Notice. The Managing
Director & CEO and Independent Directors of the Company are not liable to retire by
rotation.
16. DECLARATION BY INDEPENDENT DIRECTORS
Pursuant to the provisions of Section 149 of the Act, the independent directors have
submitted declarations that each of them meets the criteria of independence as provided in
Section 149(6) of the Act along with Rules framed thereunder and Regulation 16(1) (b) of
the SEBI Listing Regulations. There has been no change in the circumstances affecting
their status as independent directors of the Company.
17. NUMBER OF MEETINGS OF THE BOARD
15 (fifteen) meetings of the Board of Directors were held during the financial year
2022-2023. The maximum gap between any two meetings was less than 120 days, as stipulated
under SEBI's Listing Requirements, 2015. The details of the meetings of the Board of
Directors of the Company convened and attended by the Directors during the financial year
2022-23 are given in the Corporate Governance Report which forms part of this Annual
Report.
18. NOMINATION AND REMUNERATION POLICY
The salient features of the Nomination and Remuneration Policy of the Company are set
out in the Corporate Governance Report which forms part of this Annual Report. The said
Policy of the Company, inter alia, provides that the Nomination and Remuneration Committee
shall formulate the criteria for appointment & re-appointment of Directors on the
Board of the Company and persons holding Senior Management positions in the Company,
including their remuneration and other matters as provided under Section 178 of the Act
and Listing Regulations.
19. BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013, the Board has carried out an
annual performance evaluation of its own performance, the directors individually as well
as the evaluation of the working of its Audit, Nomination & Remuneration, and other
Committees. The Board's performance for the year under review was assessed on the basis of
participation of directors, quality of information provided/available, quality of
discussion and contribution etc. A structured questionnaire was prepared after taking into
consideration inputs received from the directors, covering the aforesaid aspects of the
Board's functioning. The overall performance of the Board and Committees of the Board was
found satisfactory.
The overall performance of the Chairman, Executive Directors, and the Non-Executive
Directors of the Company was found satisfactory. The review of performance was based on
the criteria of performance, knowledge, analysis, quality of decision making etc. The
manner and detail in which the evaluation was carried out is stated in the Corporate
Governance Report which is annexed and forms a part of this report.
20. COMMITTEES
As on 31st March, 2023, the Board has three committees: Audit Committee, Nomination and
Remuneration Committee and Stakeholders Relationship Committee During the year, all
recommendations made by the committees were approved by the Board. A detailed note on the
composition of the Board and its committees is provided in the corporate governance
report.
- AUDIT COMMITTEE
The Audit Committee comprises of 4 non-executive directors, out of which three are
independent. During the year, the Audit Committee met 7 (Seven) times to deliberate on
various matters on 25.04.2022, 09.05.2022, 30.05.2022, 13.08.2022, 17.08.2022, 10.11.2022
and 14.02.2023. The Composition of the Audit Committee and the attendance of
each member at these meetings are as follows:-
Name |
Position Held |
Number of Meetings during the Financial Year 2022-23 |
|
|
Entitled |
Attended |
Ms. Nilu Nigania |
Chairperson |
7 |
7 |
Mr. Mukesh Agarwal |
Member |
7 |
7 |
Mr. Manoj Goel |
Member |
7 |
7 |
Ms. Shikha Jaiswal |
Member |
7 |
2 |
The Quarterly Un-audited Financial Results, as well as the Annual Financial Statements,
are reviewed and examined by the members of the Audit Committee before recommendation of
the same to the Board of Directors of the Company for their perusal and approval. The
Audit Committee ensures an effective internal control system.
- NOMINATION AND REMUNERATION COMMITTEE
The Nomination and Remuneration Committee comprises 4 non-executive directors, out of
which three are independent. During the year, the Nomination and Remuneration Committee
met 4 (Four) times to deliberate on various matters on 22.09.2022, 15.12.2022, 02.01.2023
and 27.03.2023. The Composition of the Nomination and Remuneration Committee
and the attendance of each member at these meetings are as follows:-
Name |
Position Held |
Number of Meeting during the Financial Year 2022-23 |
|
|
Entitled |
Attended |
Mr. Mukesh Agarwal |
Chairman |
4 |
4 |
Ms. Nilu Nigania |
Member |
4 |
4 |
Mr. Manoj Goel |
Member |
4 |
4 |
Ms. Shikha Jaiswal |
Member |
4 |
4 |
- STAKEHOLDER'S RELATIONSHIP COMMITTEE
The Stakeholders Relationship Committee comprises 4 non-executive directors, out of
which three are independent. During the year, the Nomination and Remuneration Committee
met 1 (One) time to deliberate on various matters on 30.05.2022. The Composition of the
Nomination and Remuneration Committee and the attendance of each member at these meetings
are as follows:-
Name |
Position Held |
Number of Meeting during the Financial Year 2022-23 |
|
|
Entitled |
Attended |
Mr. Mukesh Agarwal |
Chairman |
1 |
1 |
Ms. Nilu Nigania |
Member |
1 |
1 |
Mr. Manoj Goel |
Member |
1 |
1 |
Ms. Shikha Jaiswal |
Member |
0 |
0 |
21. SEPARATE MEETING OF INDEPENDENT DIRECTORS
Detail of the separate meeting of the Independent Directors held and attendance of
Independent Directors therein are provided in the Report on Corporate Governance forming
part of this Report.
22. FAMILIARIZATION PROGRAM FOR INDEPENDENT DIRECTORS
All independent directors inducted into the Board are familiarized with the operations
and functioning of the Company. The details of the training and familiarization program
are provided in the Corporate Governance report.
23. DIRECTORS RESPONSIBILITY STATEMENT
In compliance with the provisions of Section 134(5) of the Companies Act, 2013 the
Board of Directors to the best of their knowledge and hereby confirm the following:
(a) in the preparation of the annual accounts for the financial year ended 31st
March 2023, the applicable accounting standards had been followed along with proper
explanation relating to material departures;
(b) the directors had 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 as at 31st
March, 2023 and profit and loss account of the Company for that period;
(c) the directors had taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act, 2013,
for safeguarding the assets of the company and for preventing and detecting fraud and
other irregularities;
(d) the directors had prepared the annual accounts on a going concern basis; and
(e) the directors of the company had laid down internal financial controls to be
followed by the company and that such internal financial controls are adequate and were
operating effectively.
(f) 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.
24. AUDITORS & AUDITORS' REPORT
Statutory Auditors
M/s Rajesh Jalan & Associates, Chartered Accountants, Kolkata (FRN 326370E) were
appointed as Statutory Auditors of the Company for the term of five years at the 25TH
Annual General Meeting held on 15TH December, 2020 as per the provisions of the
Companies Act, 2013. The Auditors have issued a modified opinion on the Financial
Statements for the financial year ended 31st March, 2023. The Auditors' Report
for the financial year ended 31st March, 2023 on the financial statements of the Company
is a part of this Annual Report.
Cost Auditor
Pursuant to Section 148 of the Act, read with the Companies (Cost Records and Audit)
Rules, 2014 and amendments thereof, the Company is required to maintain cost accounting
records in respect of certain specified products, and accordingly, such accounts and
records are made and maintained in the prescribed manner. The cost accounting records
maintained by the Company are required to be audited and, accordingly, M/s. Rana Ghosh
& Co were appointed Cost Auditors for FY 2022-23. On the recommendation of the Audit
Committee, the Board has re-appointed M/s. Rana Ghosh & Co Cost Accountant, as Cost
Auditors for auditing the cost records of the Company for the financial year 2023-24. The
Act mandates that the remuneration payable to the Cost Auditor is ratified by the
shareholders. Accordingly, a resolution seeking ratification of the shareholders for the
remuneration payable to the Cost Auditors for the financial year 2023-24 is included in
the Notice convening the 28TH Annual General Meeting.
Internal Auditor
The Company appointed M/s Sailesh Agarwal & Associates LLP (FRN: E300263 )
for the FY 2022-23 an Independent firm of Chartered Accountants to act as an Internal
Auditor as per the suggestion of auditors and the recommendation of the Audit Committee in
the Board Meeting held on 9TH May, 2022 in order to strengthen the internal
control system for the Company.
Secretarial Auditor
Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company
appointed M/s Manisha Saraf & Associates, Practicing Company Secretaries, as its
secretarial auditor to undertake the Secretarial Audit for FY 2022-23. The Company has
received consent from M/s. Manisha Saraf & Associates to act as the auditor for
conducting an audit of the secretarial records for the financial year ending 31st March,
2023. The secretarial audit report certified by the secretarial auditors, in the specified
form MR-3 is annexed herewith and forms part of this report (Annexure "C").
The secretarial audit report does not contain any qualifications, reservations, or adverse
remarks.
25. CODE OF CONDUCT
The Code of Conduct of Directors, KMPs and Senior executive of the Company is
already in force and the same has been placed on the Company's website www.aanchalispat.com
and the declaration for the affirmation with the same forms a part of this report.
26. CORPORATE GOVERNANCE
Your Company has practice sound Corporate Governance and taken necessary actions at
appropriate times for enhancing and meeting stakeholders' expectations while continuing to
comply with mandatory provisions of Corporate Governance. Your Company has complied with
the requirements of all applicable regulations read with Schedule-V of SEBI Listing
regulations as issued by SEBI and amended from time to time. A report on Corporate
Governance along with certificate from M/s Rajesh Jalan & Associates, Chartered
Accountants, regarding the compliance of conditions is presented in a separate section
forming part of the Annual Report.
27. POLICY RELATING TO DIRECTOR'S APPOINTMENT, PAYMENT OF REMUNERATION AND DISCHARGE OF
THEIR DUTIES
The policy of the Company on Director's appointment and remuneration, including
criteria for determining qualifications, independence, and other matters is as provided
under subsection(3) of Section 178 of the Companies Act, 2013 is available on the
company's website at www.aanchalispat.com.
28. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
The particulars of employees as required under Section 197 (12) of the Act read with
Rule 5 (1)of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, (as amended) are given in separate annexure attached hereto as Annexure-"D"
and forms a part of this report. Further stating there were no such employees drawing
remuneration in excess of the limits set out in Section 197 (12) of the Companies Act,
2013 read with Rule 5(2) & 5 (3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014.
29. DETAILS OF RELATED PARTIES TRANSACTIONS PURSUANT TO SECTION 188(1) OF THE COMPANIES
ACT, 2013
During the financial year, all transactions entered into with the Related Parties as
defined under the Companies Act, 2013, were in the ordinary course of business on arm's
length basis and as such did not attract provisions of Section 188 (1) of Companies Act,
2013. The company has formulated a policy on related party transactions. Particulars of
related party transactions pursuant to Section 134(3) (h) of the Act read with Rule 8(2)
of the Companies (Accounts) Rules, 2014 in Form AOC-2 is attached at Annexure
"E".
Approvals from the Audit Committee are obtained even for transactions which are in the
ordinary course of business and repetitive in nature. Further, on a quarterly basis,
disclosures are made to the Audit Committee and to the Board in its meetings. Details of
related party transactions are given in the notes to financial statements.
30. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE
COMPANIES ACT, 2013
Details of loans, guarantees, and investments under the provisions of Section 186 of
the Act read with the Companies (Meetings of Board and its Powers) Rules, 2014, as on 31st
March, 2023, are set out in Note 8 to the Financial Statements of the Company.
31. RISK MANAGEMENT POLICY
The risk management strategy of your Company is based on a clear understanding of
various risks, and adherence to well-laid-out risk policies and procedures that are
benchmarked with industry best practices. The Company has developed robust systems and
embraced adequate practices for identifying, measuring, and mitigating various risks
business, strategic, operational, market, credit, liquidity, reputational and
process risks and ensuring that they are maintained within pre-defined risk
appetite levels.
32. DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIAL
RESPONSIBILITY INITIATIVES
The Company has not developed and implemented any Corporate Social Responsibility
initiatives as the provisions of section 135 of the Companies Act, 2013 along with
Companies (Corporate Social Responsibility Policy) Rules, 2014 as they are not applicable.
33. WHISTLE BLOWER POLICY
The Company has established an effective Whistle blower policy (Vigil mechanism) and
procedures for its Directors and employees whereby employees, directors and other
stakeholders can report matters such as generic grievances, corruption, misconduct, fraud,
misappropriation of assets, and non-compliance with code of conduct to the Company. The
policy safeguards the whistle blowers to report concerns or grievances and also provides
direct access to the Chairman of the Audit Committee. During the year under review, none
of the personnel has been denied access to the Chairman of the Audit Committee. This
policy is available on Company's website www.aanchalispat.com.
34. CODE OF CONDUCT FOR PREVENTION OF INSIDER TRADING
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 PIT
Regulations.
35. INTERNAL FINANCIAL CONTROLS
The Company has adopted policies and procedures for ensuring the orderly and efficient
conduct of its business, including adherence to the Company's Policies, the safeguarding
of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of accounting records, and the timely preparation of financial disclosures.
The Company has an Internal Control System commensurate with the size, scale and
complexity of its operations. These are routinely tested and certified by Statutory as
well as Internal Auditor. Significant audit observations and corrective action are
reported to the Audit Committee.
The concerned executives monitors and evaluates the efficacy and adequacy of internal
control system in the Company, its compliance with operating systems, accounting
procedures and policies at all locations of the Company. Based on the report of internal
audit function, process owners undertake corrective action in their respective areas and
thereby strengthen the controls. Significant audit observations and corrective actions
thereon are presented to the Audit Committee.
36. INSURANCE
The Company has taken appropriate insurance for all assets against foreseeable perils.
37. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION, AND REDRESSAL) ACT, 2013
There were no complaints pending for the redresses at the beginning of the year and no
complaints received during the financial year.
38. COURT/TRIBUNAL ORDERS
There were no instances of any significant and material orders passed by the regulators
or courts or tribunals impacting the going concern status and the Company's operations in
the future.
39. MATERIAL CHANGES AFFECTING THE COMPANY
There are no material changes and commitments affecting the financial position of the
Company between the end of the financial year and the date of this report. There has been
no change in the nature of business of the Company.
40. APPRECIATION
The Board of Directors thank the shareholders for their continued support and they
would like to place on record their appreciation for the dedicated services rendered by
the Employees at all levels. We thank our customers, vendors, dealers, investors, business
associates and bankers for their continued support during the year. We place on record our
appreciation of the contribution made by the employees at all levels. Our resilience to
meet challenges was made possible by their hard work, solidarity, co-operation and
support.
|
For and on Behalf of the Board of Directors |
|
Aanchal Ispat Limited |
Place: Howrah |
Sd/- |
Date: 30.05.2023 |
Mukesh Goel |
|
Chairman & Managing Director |
|
DIN: 00555061 |