AFFLUENCE

S.No.

CONTENTS OF THE REPORT

1.

FINANCIAL  SUMMARY/HIGHLIGHTS, OPERATIONS, STATE OF AFFAIRS:                          

During the year under review[JK1] , there is a remarkable growth in Business of 11% Comparing to the previous Financial year 2017. The Company is focusing on growing Organically in the DSB Business.

2.

BOARD MEETINGS AND COMMITTEE MEETINGS:

The Board of Directors met Nine (9) times during this financial year on 08/05/2017, 05/06/2017, 12/07/2017, 05/09/2017[JK2] , 06/09/2017, 18/10/2017, 13/12/2017, 17/01/2018 and 07/02/2018. The financials were reviewed by the Audit Committee’s meeting held on 06/09/2017.

3.

DIRECTOR’S RESPONSIBILITY STATEMENT:

In pursuance of section 134 (5) of the Companies Act, 2013, the Directors hereby confirm that:

a)    in the preparation of the annual accounts, 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 at the end of the financial year and of the profit and loss 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 this Act 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 had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

4.

EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMERS MADE BY THE AUDITORS :

There was no qualification, reservations or adverse remarks made by the Auditors in their report, except for the following comment in Annexure A to the report:

During the course of examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have come across few instances of fraud on the Company by its officers and employees and suitable legal action has been taken by the management.

Board’s reply  to the above Comment:

As specified in the Audit report, Management has taken legal action against the said employees and officers.  

5.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013:

 Advances (recoverable in cash or in kind or for face value to be received) have been made to related parties within the limits provided under Sec. 186 of the companies act, 2013.

6.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES:

Contracts or arrangements made with related parties as defined under Section 188 of the Companies Act, 2013 during the year under review are given as ANNEXURE I.

7.

AMOUNT, IF ANY, CARRIED FORWARD TO RESERVES: 

The Company has not transferred any amount to its Reserve account during the financial year.

8.

DIVIDEND:

Interim Dividend was declared in the Board meeting held on 8th May, 2017 and paid Interim Dividend – I  @ 378% and Interim dividend – II @ 62% to the equity shares.

9.

MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT:

No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which this financial statements relate and the date of this report.

10.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

The provisions of Section 134(m) of the Companies Act, 2013 do not apply to our Company. There was no foreign exchange inflow or Outflow during the year under review.

11.

(i) STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE COMPANY:

The Company has well defined Risk Management Policy in place. The fact that the Risks and opportunities are inevitably intertwined is well recognised by the Company and thus aims to identify, manage and minimise, risks, strategically. It is committed to embedding risk management throughout the organisation and its systems and controls are designed to ensure that exposure to significant risk is properly managed. With the predefined risk management principles and policy, the Company identifies, categorises, assesses and addresses risks.

Key Elements of Risks:

1.    Global Economic Situation:  The Economic environment around the world is showing sign of growth.  Growth in the Construction industry has been fairly positive.

2.    Cost pressure: Increasing operating cost may create a pressure on margin. The Company is focusing to put up framework for cost management.

3.    Regulatory risks:  Any Change in regulations in the field of our operations, would have an impact on the operations. The Company is vigilant on such changes for easy adaptability.

4.    Emerging Trend: New technologies and trends used in construction industry may impact consumers’ behaviour. The Company continuously scan business environment for early detection of emerging trend.

(ii) POLICY ON PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT AT WORKPLACE:

The Company has adopted a Policy on prevention, prohibition and redressal of Sexual Harassment at the workplace, to provide protection to employees at the workplace and for prevention and redressal of complaints of sexual harassment and for matters connected or incidental thereto, with the objective of providing a safe working environment, where employees feel secure.

12.

CHANGE IN THE NATURE OF BUSINESS, IF ANY:

There has been no change in the nature of business of the Company during the Financial Year.

13.

DIRECTORS:

14.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES:

The Company does not have any Subsidiary, Joint venture or Associate Company.

15.

DEPOSITS:

The Company has neither accepted nor renewed any deposits during the year under review.

16.

STATUTORY AUDITORS:

Proposal for re-appointment of M/s. Menon&Pai (FRN - 008025S), Chartered Accountants, Chennai, as Statutory Auditors of the Company to hold office from the conclusion of the forthcoming Annual General Meeting of the Company until the conclusion of the next Annual General Meeting, is placed before the members for approval at the ensuing AGM.

17.

SHARES:

18.

EXTRACT OF ANNUAL RETURN:

As required pursuant to section 92(3) oftheCompaniesAct, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014, an extract of annual return in MGT-9 is given as a part of this Annual Report underANNEXURE-II.

19.

ANTI SEXUAL HARASSMENT  POLICY:

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. Sexual harassment complaints cell has been set up to redress complaints received regarding sexual harassment.  There were no complaints received during the FY 2017-18.

20.

CORPORATE SOCIAL RESPONSIBILITY:

The Board has constituted a Corporate Social Responsibility Committee consisting of Col. David Devasahayam, Chairman and Dr. Renuka David, member. The Company has adopted a Corporate Social Responsibility Policy pursuant to Sec. 135 of Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) rule, 2014 and the Report on CSR Activities as required there under is given as a part of this Report under ANNEXURE-III.

21.

ACKNOWLEDGEMENTS:

Your Directors place on record their sincere thanks to bankers, business associates, consultants, and various Government Authorities for their continued support extended to your Companies activities during the year under review. Your Directors also acknowledges gratefully the shareholders for their support and confidence reposed on your Company.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

                        Sd/-                                                      Sd/-

 Col. David Devasahayam                     Dr. Renuka David

Director(DIN-02154891)             Director(DIN-02190575)

Date: 10/09/2018
Place: Chennai