The Directors hereby present the Thirty-sixth Annual Report on the
business and operations of the Company, together with the Audited
Statements of Accounts for the year ended 31st March, 2015.
The Company''s performance during the financial year ended 31st March,
2015 on standalone basis, as compared to the previous financial year,
is summarized below.
(Rs in crores)
Particulars 2014-15 2013-14
Total Revenue 2648.44 3081.27
Earning before interest,depreciation
and tax(EBIDTA) 116.62 66.69
Less: Finance Costs 183.24 158.22
Depreciation 76.13 92.37
Profit/(Loss)beforeTax (142.75) (183.90)
(Add)/Less:ProvisionforTax 0.00 (39.45)
Profit / (Loss) after Tax (142.75) (144.45)
Considering the loss incurred by the Company, your Directors do not
recommend any dividend on equity shares for the financial year 2014-15.
In absence of distributable profits / earnings, it is not proposed to
transfer any amount to reserves for the financial year 2014-15.
Nature of Business
The Company belongs to the GARDEN VARELI Group which is a leader in the
Indian Textile Industry with particular strength in polyester filament
based textiles, both yarn and fabric. The Company is also a leading
player in polyester chips for both textile and film applications. The
Company is known to be a differentiated producer of chips, Partially
Oriented Yarn (POY), Fully Drawn Yarn (FDY), Draw Texturised Yarn, Draw
Warped Yarn, Draw Twisted Yarn, greige fabric, as well as printed and
dyed fabric. The Company is a regular supplier of bright, cationic,
micro denier, fine denier yarn, mother yarn and dope-dyed yarn in the
There was no change in the nature of business of the Company during the
year under review.
Review of Operations
The Company''s standalone total revenue for the year 2014-15 was Rs.
2648.44 crore as compared to Rs. 3081.27 crore for the previous year, a
decline of about 14%. The fall in sales was due to lower utilization
rates due to excess capacity in the face of subdued market conditions.
The entire industry operated at a lower utilization rate owing to a
large capacity addition by the largest producer of PFY.
Despite lower revenues, the operating profit (earning before interest,
depreciation and tax) for the year 2014-15 was higher at Rs. 116.62 crore
as compared to Rs. 66.69 crore in the previous year. This was possible
despite a challenging year that saw an oil-price driven crash in raw
material prices leading to concomitant inventory losses and weak market
sentiment. Our emphasis on increased product differentiation, along
with record operational efficiencies, timely exports and careful
working capital management helped us to remain competitive and improve
our EBITDA. However, the high and increased interest cost resulted in
another year of loss for the Company. The net loss for the year stood
at Rs. 142.75 crore as compared to Rs. 144.45 crore in the previous year.
The sale of chips was lower at 102,031 MT for the year 2014-15 as
compared to 124,620 MT in the previous year. The total sale of
polyester filament yarn (PFY) was marginally lower at 149,222 MT as
compared to 152,200 MT in the previous year.
The overall production of Chips was at 244053 MT during the year
2014-15 as compared to 266831 MT achieved in the previous year. Whereas
the production of PFY during the year was higher at 152275 MT as
compared to 148949 MT in the previous year. In the weaving segment,
grey cloth production for the year 2014-15 was higher at 292.89 lacs
mtrs as compared to 275.86 lacs mtrs. during the previous year. The
Company had to curtail the production during the year to avoid
inventory losses due to volatility of prices of raw material as well as
finished goods. Production was also hampered by a shortage of PTA due
to plant maintenance by local PTA suppliers in the early part ofthe
Your Company''s performance was assisted by never-before achieved
operational efficiency, first quality production and wastage levels
across its yarn plants. Coal, which is the major fuel for the company
reduced in price by over 8% during the year. This, coupled with
increased substitution of gas with coal was a major cause of cost
reduction across our chips and yarn divisions.
Owing to the over-competitive local market, the company also
increasingly focussed on the international market. Subsidiaries and
their financial position
During the year under review, GAIA International FZE, Wholly Owned
Overseas Subsidiary was incorporated on 8th July, 2014. The subsidiary
commenced its operation during the year 2014-15. The subsidiary
achieved a turnover ofRs. 333.29 Lacs and incurred net loss of Rs. 20.09
Lacs for the year ended 31st March, 2015.
Garden Exim Pte Ltd, another Wholly Owned Overseas Subsidiary was
incorporated on 23rd October, 2014. The subsidiary has not commenced
its operation during the year 2014-15. The subsidiary incurred net loss
ofRs. 4.74 Lacs for the year ended 31st March, 2015.
The consolidated total revenue of the Company for the year 2014-15 was
Rs. 2648.69 crore. The operating Profit (earning before interest,
depreciation and tax) was at Rs. 116.60 crore. The loss for the year
2014-15 was Rs. 143 crore.
Pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5
of the Companies (Accounts) Rules, 2014, the statement containing the
salient features of the financial statements of the Company''s
Subsidiaries (in Form AOC-1) is forming part of the Consolidated
Financial Statements. Pursuant to Section 136 of the Companies Act,
2013 (the Act) the Company is exempted from attaching to is Annual
Report, the Annual Report ofthe Subsidiary Company.
The financial statement of the subsidiary company is kept open for
inspection by the shareholders at the Registered Office of the Company.
The Company shall provide the copy of the financial statement of its
subsidiary company to the shareholders upon their request free of cost.
It is also available on the website of the Company.
The financial year 2014-15, being the first year that consolidated
financial statement are presented, comparative figures for the previous
year have not been presented in accordance with the transitional
provisions of AS-21 consolidated financial statement.
Changes in Share Capital
During the year under review, your Company allotted 1,949,860 equity
shares ofRs. 10 each fully paid up at a premium of Rs. 25.90 per share to
the promoters / promoter group on exercise of option for conversion
ofthe 1,487,147 0.001% Optionally Convertible Cumulative Preference
Shares (OCCPS) issued on preferential basis pursuant to the SEBI (ICDR)
Regulation, 2009. As a result of such allotment, the paid up equity
share capital of the Company increased from 40132665 equity shares of Rs.
10 each aggregating to Rs. 40,13,26,650 to 42082525 equity shares of Rs. 10
each aggregating to Rs. 42,08,25,250.
During the year under review, the Company has not issued shares with
differential voting rights, nor granted stock options nor sweat equity.
As on 31st March, 2015, the shareholding of the Directors in the
Company has been disclosed in the Corporate Governance Report which
forms part ofthis report.
Disclosures in respect of voting rights not directly exercised by
There are no shares held by trustees for the benefit of employees and
hence no disclosure under Rule 16(4) of the Companies (Share Capital
and Debentures) Rules, 2014 has been furnished.
During the year under review, your Company did not accept any deposits
in terms of Section 73 of the Companies Act, 2013 read with the
Companies (Acceptance of Deposit) Rules, 2014. As on April 1, 2014, no
amounts were outstanding which were classified ''Deposits'' under the
applicable provisions of Companies Act, 1956 and hence the requirement
for furnishing of details of deposits which are not in compliance with
the Chapter V of the Companies Act, 2013 is not applicable.
On the recommendations of the Nomination and Remuneration Committee,
the Board appointed Shri Sunil S. Sheth as an Independent Director of
the Company with effect from 13th August, 2014. Shri Sunil Sheth had a
long tenure as Member of the Board and retired by rotation at the AGM
held on 30th July, 2014 and did not seek re-appointment. However, in
the interest of maintaining continuity and providing guidance during
challenging time, the Nomination and Remuneration Committee and the
Board of Directors of the Company requested Shri Sunil Sheth to accept
the Board position once again. Shri Sheth accepted the request. We
seek your support in confirming the appointment of Shri Sunil Sheth in
the ensuing AGM.
Smt. Anita Mandrekar was appointed as an Additional Directors
(Independent) on the Board with effect from 30th May, 2015
respectively. We seek your confirmation for her appointment as
Independent Directors for a term up to 5 (five) consecutive years i.e.
from the date ofthe 36th AGM ofthe Company on non-rotational basis.
The resolutions seeking approval of the Members for the appointment of
Shri Sunil S. Sheth and Smt. Anita Mandrekar have been incorporated in
the Notice ofthe ensuing Annual General Meeting ofthe Company along
with brief details about them. The Company has received notice under
Section 160 of the Companies Act, 2013 along with the requisite deposit
proposing the appointment of Shri Sunil S. Sheth and Smt. Anita
The Independent Directors of the Company have declared that they meet
the criteria of Independence in terms of Section 149(6) of the
Companies Act, 2013 and that there is no change in their status of
During the year under review, Shri Madanlal Lankapati, independent
Director resigned from the Board of Directors ofthe Company with effect
from 30th March, 2015. The Board of Directors wish to place on record
their appreciation for the contribution made by Shri Lankapati to the
Board and the Company during his tenure as a Director.
Pursuant to the provisions of Section 152 of the Companies Act, 2013,
Shri Alok P. Shah (DIN: 00218180) will retire at the ensuing Annual
General Meeting, and being eligible, seek re-appointment. The Board
recommends his re-appointment.
The Companies Act, 2013, provides for the appointment of Independent
Directors. Sub-section (10) of Section 149 of the Companies Act, 2013
provides that Independent Directors shall hold office for a term of up
to five consecutive years on the board of a company and shall be
eligible for re-appointment on passing of a special resolution by the
shareholders of the Company. Accordingly, all the Independent Directors
except for Shri Sunil Sheth who was appointed as additional Director on
13th August, 2014 were appointed by the shareholders at the general
meeting held on 30th July, 2014. Further, sub- section (13) of Section
149, provides that the provisions of retirement by rotation as defined
in sub-section (6) and (7) of Section 152 of the Companies Act, 2013
shall not apply to such IDs. Hence, none of the Independent Directors
retire at the ensuing AGM.
During the year, the non-executive directors of the Company have no
pecuniary relationship of transactions with the Company.
Key Managerial Personnel
At the Board Meeting held on 28th May, 2014 Mr. Praful A. Shah,
Managing Director, Mr. Alok P. Shah, Joint Managing Director and CFO
and Mr. Kamlesh B. Vyas, Company Secretary and Compliance Officerwere
designated as Key Managerial Personnel of the Company pursuant to
Section 2(51) and 203 of the Companies Act, 2013 read with the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance and that of its committees viz. Audit
Committee, Stakeholder Relationship Committee, Nomination and
Remuneration Committee and Corporate Social Responsibility Committee
and that of the individual directors. The manner in which the
evaluation has been carried out has been explained in the Corporate
Nomination and Remuneration Policy
The Board has adopted, on recommendation of the Nomination and
Remuneration Committee, a policy for selection and appointment of
Directors, Senior Management and their remuneration.
The details pertaining to criteria for determining qualifications,
positive attributes, independence of a Director, remuneration policy
and other related matters have been provided in the Corporate
Governance Report and also posted on the website of the Company,
Declaration by Independent Directors
As per the provisions of Section 149 of the Companies Act, 2013 read
with Clause 49 of the Listing Agreement, there were three Non-Executive
Independent Directors - Shri Arunchandra N. Jariwala, Shri J. P. Shah
and Shri Yatish Parekh. The Company has received the necessary
declaration from each Independent Directors in accordance with Section
149(7) ofthe Companies Act, 2013, that he/she meets the criteria of
independence as laid out in the sub section (6) of Section 149 of the
Companies Act, 2013 and Clause 49 of the Listing Agreement. Further the
two new Additional Directors appointed by the board of Directors ofthe
Company have also submitted similar Declarations.
Directors'' Responsibility Statement
Pursuant to Section 134(5) ofthe Companies Act, 2013, the Board of
Directors ofthe Company, to the best of their knowledge and ability,
i. in the preparation ofthe 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 as 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
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.
Extract ofAnnual Return
Pursuant to the provisions of Section 134(3)(a) of the Companies Act,
2013, Extract of the Annual Return in Form MGT-9, for the financial
year ended 31st March, 2015 made under the provisions of Section 92(3)
of the Act is attached as Annexure F which forms part of this Report.
Particulars of loans, guarantees or investments under Section 186 of
the Companies Act, 2013
During the year under review, your Company has invested in 1 Equity
Share of GAIA International FZE, Dubai of 185000 AED equivalent to Rs.
30.26 Lacs and 10000 Equity Shares of Garden Exim Pte Ltd, Singapore of
1 USD equivalent to Rs. 6.24 Lacs towards share capital of the
The report on Corporate Governance and the certificate from the
Statutory Auditors regarding compliance with the conditions of
Corporate Governance have been furnished in the Annual Report and forms
part of the annual report.
Conservation of Energy, Technology Absorption, Foreign Exchange
Earnings and Outgo
Energy conservation is a key component of the Company''s continuous
improvement program. Power, heat and steam are key inputs for the
Company requiring careful and prudent management across levels in the
organization. During the year under review, there was no major capital
investment on energy conservation equipment.
The particulars as required under the provisions of Section 134(3)(m)
of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts)
Rules, 2014 in respect of Conservation of Energy, Technology
Absorption, Foreign Exchange Earnings and Outgo are furnished in
Annexure A to this Report.
Particulars of Employees and Related disclosure
The information as required under the provisions of Section 197(12) of
the Companies Act, 2013 and Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, are set out in
Annexure G hereto, which forms part of this report. As on 31st March,
2015 there were 5639 permanent employees.
Pursuant to the provisions of Section 139 of the Companies Act, 2013
and the Companies (Audit and Auditors) Rules, 2014, M/s Natvarlal
Vepari & Co., Chartered Accountants, the Statutory Auditors of the
Company, hold office upto the conclusion of this Annual General
Meeting. However, their appointment as Statutory Auditors of the
Company is subject to ratification by the Members at every Annual
The Company has received confirmation from the firm regarding their
consent and eligibility under Sections 139 and 141 of the Companies
Act, 2013 read with the Companies (Accounts) Rules, 2014 for
appointment as the Auditors of the Company.
As required under Clause 41 of the Listing Agreement, the Auditors have
also confirmed that they hold a valid certificate issued by the Peer
Review Board of the Institute of Chartered Accountants of India.
The Audit Committee and the Board of Directors have recommended the
appointment of the Auditors for the financial year 2015-16. Necessary
resolution for ratification of appointment of the said Auditors is
included in the Notice ofAnnual General Meeting for seeking approval of
Pursuant to the provisions of Section 148 of the Companies Act, 2013
read with notifications / circulars issued by the Ministry of Corporate
Affairs from time to time and as per the recommendation of the Audit
Committee, the Board of Directors at their meeting dated 28th May,
2014, appointed M/s Manubhai & Associates, Cost Accountants, as the
Cost Auditors of the Company for the Financial Year 2014-15.
In respect of Financial Year 2015-16, the Board, based on the
recommendation of the Audit Committee, has approved the appointment of
M/s Manubhai & Associates, Cost Accountants, as the Cost Auditors of
the Company. A resolution for ratification of the payment to be made
for such appointment is included in the notice of the ensuing Annual
Pursuant to the provisions of Section 204 of the Companies Act, 2013,
and The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Board of Directors of the Company has
appointed M/s K. Dalai & Co., a firm of Company Secretaries in Practice
to undertake the Secretarial Audit of the Company for the year 2014-15.
The report of the Secretarial Auditor is annexed to this report as
Annexure D which is self explanatory and give complete information.
Comments on the Auditors Report
The Audit Report on the financial statements for the year ended on 31st
March, 2015 and observations/comments/remarks etc. made by statutory
auditors of the Company read with the Notes to Financial Statements are
With regard to the observation made by the Auditors at Point No.ix of
the Annexure to the Auditors'' Report regarding the delay in payment of
interest for the quarter January-March, 2015, we would like to inform
that the same has been paid during the quarter April-June 2015.
Pursuant to the provisions of Section 138 of the Companies Act, 2013,
the Board of Directors of the Company has appointed Shri Piyush Patel,
Chartered Accountant (ICAI Membership No.116769) as Internal Auditor of
the Company. The audit committee of the Board of Directors in
consultation with the Internal Auditor formulates the scope,
functioning, periodicity and methodology for conducting the internal
Related Party Transactions
The Company has formulated a policy on dealing with Related Party
Transactions. The policy is disclosed on the website of the Company.
All transactions entered into with Related Parties as defined under the
Companies Act, 2013 and Clause 49 of the Listing Agreement during the
financial year were in the ordinary course of business and on arm''s
length basis and do not attract the provisions of Section 188 of the
Companies Act, 2013. During the year, the Company had not entered into
any contracts / arrangements / transactions with related parties which
can be considered as material in nature. The related party transactions
are disclosed under Note 30 of the Note to Financial Statements for the
financial year 2014-15.
Disclosure of orders passed by the regulators or courts or tribunal
No significant and material orders have been passed by any Regulators
or Court or Tribunal which can have an impact on the going concern
status and the Company''s operations in future.
Corporate Social Responsibility Committee
The Company has constituted a Corporate Social Responsibility (CSR)
Committee in accordance with Section 135 of the Companies Act, 2013.
The CSR committee was constituted by the Board of Directors of the
Company comprising of three directors including Independent Directors.
The Company has incurred loss during the last three financial years,
therefore the provisions with respect to amount to be spent towards the
CSR activity is not applicable. However, the Company has voluntarily
incurred expenditure on CSR related activity during the year. The
details in terms of the Companies (Corporate Social Responsibility
Policy) Rules, 2014, are appended to this Report as Annexure B .
An Audit Committee is in existence in accordance with the provisions of
Section 177 of the Companies Act, 2013. The Audit Committee of the
Company comprises of four Independent Directors. The composition of
directors and other details are provided in the Corporate Governance
Report of the Company. During the year, there were no instances where
the Board has not accepted the recommendation ofthe Audit Committee.
Nomination and Remuneration Committee
A nomination and Remuneration Committee is in existence in accordance
with the provisions of sub-section (3) of Section 178 Kindly refer
section on Corporate Governance, under the head, ''Nomination and
Remuneration Committee'' for matters relating to constitution, meeting,
functions of the Committee and the remuneration policy formulated by
Risk Management Policy
The Board of Directors of the Company has formed a risk management
policy to frame, implement and monitor the risk management plan for the
Company. The Committee is responsible for reviewing the risk management
plan and ensuring its effectiveness. It regularly analyses and takes
corrective actions for managing / mitigating the same. The audit
committee has additional oversight in the area of financial risks and
controls. Your Company''s risk management framework ensures compliance
with the provisions of Clause 49 of the Listing Agreement. The details
of Risk Management as practiced by the Company forms part of the
Corporate Governance Report.
The properties and insurable interests of your Company like buildings,
plant and machinery, stocks etc. are adequately insured by the Company.
Your Company has repaid / prepaid Secured Rupee Term Loan availed from
banks / financial institutions, to the tune of Rs. 207.13 Crore during
the year. The Company also availed term loan aggregating to Rs. 33.05
Crore from the banks / financial institutions during the year.
Cash and cash equivalent as at March 31, 2015 was Rs. 45.37 crore. The
Company continues to focus on judicious management of its working
capital. Receivables, Inventories and other working capital parameters
were kept under strict check through continuous monitoring. The working
capital requirement of the Company continues to be funded by a
consortium of banks led by Bank of Baroda.
The Company has also taken steps to refinance some of its loans at a
lower interest rate with the support of its bankers.
Your Company has entered into a Long Term Advance Payment and Supply
Agreement (ASPA) with one of its export customers. Under the ASPA,
your Company has received Long Term Advances against Exports to the
tune of USD 66.48 Million which will be adjusted against exports to
that Customer over 10 years.
Payment of remuneration / commission to Directors from holding or
None of the managerial personnel i.e. Managing Director and Whole Time
Director/s of the Company are in receipt of remuneration / commission
from the holding or subsidiary company of the Company.
Meetings ofthe Board
During the year, 6 Board Meetings and 4 Audit Committee Meetings were
convened and held. Directors actively participated in the meetings and
contributed valuable inputs on the matters brought before the members
from time to time. The intervening gap between the Meetings was within
the period prescribed under the Companies Act, 2013 and as per Clause
49 of the Listing Agreement. The details of the meetings are furnished
in the Corporate Governance Report.
Independent Directors'' Meeting
In compliance with the requirements of Schedule IV of the Companies
Act, 2013 and Clause 49(II)(B)(6) of the Listing Agreement a meeting
ofthe Independent Directors was held on 18th March, 2015, without the
participation ofthe Executive Directors or management personnel. The
Independent Directors carried out performance evaluation of
Non-Independent Directors and the Board of Directors as a whole,
performance of Chairman of the Company, the quality, contents and
timelines of flow of information between the Management and Board,
based on the performance evaluation framework of the Company.
The criteria for performance evaluation have been detailed in the
Corporate Governance Report forming part of this report.
Familiarisation programme for Independent Directors
Pursuant to the provisions of Clause 49 ofthe Listing Agreement, the
Company has formulated a programme for familiarizing the Independent
Directors with the Company, their roles, rights, responsibilities in
the Company, nature ofthe industry in which the Company operates,
business model ofthe Company etc. through various initiatives.
Quarterly updates on relevant statutory changes encompassing important
laws are regularly circulated to the Directors.
The detail of such familiarization programmes for Independent Directors
are posted on the website of the Company at www.gardenvareli.com.
Disclosure 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. Internal Complaints
Committee (ICC) has been set up to redress complaints received
regarding sexual harassment. All employees (permanent, contractual,
temporary, trainees) are covered under this policy.
The Company has constituted an Internal Complaint Committee (''ICC'') as
required by the said Act with 3 members of which 2 members as the
employees and 1 member representing NGO. The Company is strongly
opposed to sexual harassment and employees are made aware about the
consequences of such acts and about the constitution of ICC. During the
year under review, no complaints were tiled with the Committee under
the provisions of the said Act.
During the year ended 31st March, 2015, the Company does not have any
material listed / unlisted subsidiary companies as detined in Clause 49
of the Listing Agreement. The details of the policy on determining
material unlisted subsidiary of the Company is available on the
Company''s website www.gardenvareli.com.
Disclosures under Section 134(3)(l) ofthe Companies Act, 2013
There were no material changes and commitment which could affect the
Company''s tinancial position have occurred between the end oftinancial
year ofthe Company and the date ofthis Report.
Vigil Mechanism /Whistle Blower Policy
Pursuant to Section 177(9) ofthe Companies Act, 2013 read with Rule 7
ofthe Companies (Meetings of Board and its Powers) Rules, 2014 and
Clause 49 ofthe Listing Agreement, the Board of Directors had approved
the Policy on Vigil Mechanism / Whistle Blower and the same was hosted
on the website ofthe Company.
Your Company hereby affirms that no Director / employee has been denied
access to the Chairman ofthe Audit Committee and that no complaints
were received during the year. Brief details about the policy are
provided in the Corporate Governance Report attached as Annexure B to
this Report and also available on the Company''s website
Unclaimed and Unpaid Dividends
As on 31st March, 2015 an aggregate amounts of Rs. 48.97 Lacs is lying in
the unpaid equity dividend account ofthe Company in respect ofthe
dividend for the tinancial year 2007-08,2008-09,2009-10 and 2010-11.
Members who have not yet received / claimed their dividend entitlements
are requested to contact the Company or the Registrar and Transfer
Agents of the Company.
Investor Education and Protection Fund
In terms of Section 205C ofthe Companies Act, 1956, read with the
Investor Education and Protection Fund (Awareness and Protection of
Investor) Rules, 2001 (which are still applicable as the relevant
sections under the Companies Act, 2013 are yet to be notitied), the
Company has credited during the year ended 31st March, 2015 an
aggregate amount ofRs. 10.51 lacs, which pertains to the dividend for the
year 2006-07 and remained unpaid or unclaimed for a period of 7 years
from the date of declaration, to the Investor Education and Protection
Service of documents through electronic means
All documents, including the Notice and Annual Report shall be sent
through electronic transmission in respect of members whose email IDs
are registered in their demat account or are otherwise provided by the
members. A member shall be entitled to request for physical copy of any
Adequacy of Internal Financial Control
The Company has in place adequate internal financial controls with
reference to financial statements. Periodic audits are undertaken on
continuous basis covering all the major operations. Reports of internal
audits are reviewed by management from time to time and desired actions
are initiated to strengthen the control and effectiveness of the
system. During the year, such controls were tested and no reportable
material weakness in the design or operation was observed.
The Internal Financial Control 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 of such
Your Directors take this opportunity to thank the customers, suppliers,
bankers, business partners / associates, financial institutions and
various regulatory authorities for their consistent support /
encouragement to the Company.
Your Directors are thankful to the esteemed shareholders for their
continuous support and the confidence reposed in the Company and its
For and on behalf of the Board
Praful A. Shah
Chairman & Managing Director
Surat, 5th June, 2015