The Company does not have any subsidiary/associate company.
Material changes and commitments
There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year to which the financial statement relates and the date of the report.
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo as required pursuant to Section 134(3) of the Companies Act, 2013 read with rule 8(3) of the Companies (Accounts) Rules, 2014 is given in Annexure B
Risk Management Policy
Provisions of Reg 21 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 regarding Risk Management Policy are not applicable to the Company. However, your Company has adopted Risk Management Policy to manage & mitigate the risk.
Risk Management Committee constituted by the Board of Directors meets regularly to review the risk and the measures taken to mitigate the same.
Corporate Social Responsibility Policy
Pursuant to Section 135 of the Companies Act, 2013 the Board of Directors has constituted a Corporate Social Responsibility committee under Chairmanship of Mr. Bhaswar Mukherjee, independent director. The Corporate Social Responsibility Policy has been approved by the Board of Directors and monitored by the Committee.
Annual Report on Corporate Social Responsibility is provided in Annexure C.
Significant & Material Orders passed by the Regulators or Courts
No significant material orders have been passed by the Regulators, the Courts or Tribunals which would impact the going concern status of the Company and its future operations.
Fixed Deposit / Public Deposits
The Company has not accepted or renewed any deposit/s within the purview of provisions of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014 during the year under review. Hence requirements of furnishing details of deposits which are not in compliance with the Chapter V of the Act is not applicable.
Internal Financial Controls
Your Company has in place adequate internal financial controls with reference to financial statements. Your Company has adopted the policies and procedures for ensuring the orderly and efficient conduct of its business including adherence to its policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial disclosures.
A Corporate Governance Report as prescribed under the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 forms integral part of this report. The Company complies all the requirement of Corporate Governance. Certificate of compliance by the Statutory Auditors forms integral part of this report.
Extract of Annual Return
Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12 of the Companies (Management and Administration) Rules, 2014 extract of Annual Return in Form MGT-9 forms an integral part of this report and is attached herewith as Annexure D.
Equity share capital
Authorised share capital of the Company is Rs. 26.00 Crs and issued, subscribed & paid-up capital of the Company is Rs. 25.49 Crs. During the year under review there was no change in share capital of the Company.
Auditors statutory auditors
Pursuant to provisions of Section 139 of the Companies Act, 2013 M/s. PNG & Co., Chartered Accountants, New Delhi (Firm Registration No. 021910N) has been appointed as Statutory Auditors of the Company to hold office from the conclusion of 31 st Annual General Meeting till the conclusion of 36th Annual General Meeting. The Ministry of Corporate Affairs vide Notification No. S.O. 1833(E) dated 7th May, 2018 has dispensed with requirement of ratification of appointment of Statutory Auditors by members at every Annual General Meeting. Hence the matter of ratification of Statutory Auditors is not included in the Notice of the ensuing Annual General Meeting.
The report of the Statutory Auditors read with notes to account being self-explanatory needs no further clarification. The report does not contain any qualification, reservation or adverse remark.
Pursuant to provisions of Section 138 of the Companies Act, 2013 the Board on recommendation of the Audit Committee has appointed M/s Jain Mittal Chaudhary & Associates, Chartered Accountants, New Delhi as Internal Auditors of the Company.
As prescribed by the Central Government and pursuant to provisions of Section 148 of the Companies Act, 2013 and applicable rules, cost audit is applicable to the Company.
The Board of Directors on recommendation of the Audit Committee has appointed Mr. Dilip Murlidhar Bathija, Cost Accountant, (Membership No. 10904) as Cost Auditor of the Company for the financial year 2018-19.
The remuneration proposed to be paid is required to be ratified by the members of the Company. Accordingly, the matter will be placed at the ensuing Annual General Meeting of the Company for ratification.
Pursuant to Section 204 of the Companies Act, 2013 and Rule 9 of the Companies (appointment and Remuneration of Managerial Personnel) Rules, 2014 the Company has appointed CS Punit Shah (ACS No. 20536), Practicing Company Secretary (CP No. 7506) as Secretarial Auditor of the Company for the financial year 2018-19.
The report of the Secretarial Auditors is attached herewith as Annexure E and forms an integral part of this report. The report is self-explanatory and does not call for any further comments.
Particulars of Employees
The information required to be disclosed in the Directors’ Report pursuant to Section 197 of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is set out as Annexure F to this Report.
As per provisions of Section 136(1) of the Companies Act, 2013 the Report and Accounts are being sent to all the members of the Company excluding the information required under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of Companies (Appointment and Remuneration of Managerial Personnel), Rules, 2014. Any member interested in obtaining such information may write to the Company Secretary at the Registered Office during working hours up to date of Annual General Meeting.
Your Company recognizes the importance and contribution of its human resources for its growth & development and values their talent, integrity and dedication and treats as one of its most important assets. The Company offers a highly entrepreneurial culture with a team based approach that we believe encourages growth and motivates its employees. The Company has been successful in attracting and retaining key professionals and intends to continue to seek fresh talent to further enhance and grow its business.
Code of Conduct
The Board of Directors has approved & adopted the Code of Conduct for all members of the Board and senior management which incorporates the role, responsibilities and duties of independent directors as laid down in the Companies Act, 2013. The Code is available at the website of the Company www.gppetroleums.co.in.
All members of the Board and senior management have affirmed compliance with the Code of Conduct as per Regulation 26(3) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
A declaration to this effect, by the CEO is attached as Annexure G.
Nomination, Remuneration and Succession Planning Policy
The Board of Directors has formulated Nomination, Remuneration and Succession Planning Policy which is available on the website of the Company website i.e. www.gppetroleums.co.in. Salient features of the policy is attached as Annexure H.
Whistle Blower Policy
The Company has adopted a Whistle Blower Policy, to provide a formal mechanism to its directors and employees to report their concerns about unethical behavior, actual or suspected fraud, violation of code of conduct of the Company or any other matter derogatory to the business or progress of the Company. The Policy provides for adequate safeguards 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 Chairman of the Audit Committee.
All protected disclosures concerning financial or accounting matters should be addressed, in writing to the Audit Committee either directly or through designated officer, Mr. Arjun Verma for investigation.
Such disclosure/ communication should be submitted with covering letter signed by the Whistle Blower in a closed and secured envelope and should be super scribed as “Disclosure under the Whistle Blower Policy” or if send through email, with subject as “Disclosure under the Whistle Blower Policy”.
No complaint was received under the said policy during the year.
Code of Conduct for Prevention of Insider Trading
The Company has adopted a Code of Conduct for Prevention of Insider Trading, under the SEBI (Prohibition of Insider Trading) Regulations, 2015 with a view to regulate trading in securities by the Directors, KMPs and designated employees of the Company. The Code lays down guidelines for procedures to be followed and disclosures to be made by insiders while trading in the shares of the Company.
Disclosure under Prevention of Sexual Harassment Policy
Your Company is committed to provide safe and secure working environment for women employees and adopt zero tolerance towards sexual harassment at workplace.
An Internal Complaint Committee has been constituted as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
No complaint was received during the year under review.
Management Discussion and Analysis
The Management Discussion and Analysis Report is presented as separate section and forms intigral part of this Report.
We thank our clients, investors, dealers, suppliers and bankers for their continued support during the year. We place on record our sincere appreciation for the contributions made by employees at all levels. Our consistent growth was made possible by their hard work, solidarity, co-operation and support.
By order of the Board of Directors
For GP Petroleums Limited
Mumbai, May 29, 2018 Chairman