As on: Oct 14, 2024 03:31 AM
To,
The Members,
Sharanam Infraproject and Trading Limited
Your Directors present the 32nd Board's Report on the Business and Operations of the Company together with the Audited Financial Statement and the Auditor's Report for the Financial Year ended on 31st March, 2024.
1. FINANCIAL RESULTS:
The financial performance of the Company for the Financial Year ended on 31st March, 2024 is summarized as below:
(Rs. in Lakhs)
2. OPERATIONS:
Total revenue for Financial Year 2023-24 is Rs. 176.07 Lakhs compared to the NIL revenue of previous Financial Year. The Company has incurred Profit before tax for the Financial Year 2023-24 of Rs. 2.58 Lakhs as compared to Loss of Rs. 17.20 Lakhs of previous Financial Year. Net Profit after Tax for the Financial Year 2023-24 is Rs. 2.58 Lakhs as against Net Loss after tax of Rs. 17.20 Lakhs of previous Financial Year. The Directors are continuously looking for the new avenues for future growth of the Company and expect more growth in the future period.
3. CHANGE IN NATURE OF BUSINESS, IF ANY:
There is no change in the nature of business during the year under review.
4. DIVIDEND:
To conserve the resources for future prospect and growth of the Company, your directors do not recommend any dividend for the Financial Year 2023-24 (Previous year - Nil).
5. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND:
Pursuant to Section 124 of the Companies Act, 2013, the amount of dividend remaining unpaid or unclaimed for a period of seven years shall be transferred to the Investor Education and Protection Fund ("IEPF"]. During the year under review, there was no unpaid or unclaimed dividend in the "Unpaid Dividend Account" lying for a period of seven years from the date of transfer of such unpaid dividend to the said account. Therefore, there were no funds which were required to be transferred to Investor Education and Protection Fund.
6. TRANSFER TO RESERVES:
The Profit of the Company for the Financial Year ending on 31st March, 2024 is transferred to profit and loss account of the Company under Reserves and Surplus.
7. WEBLINK OF ANNUAL RETURN:
Pursuant to Section 92(3] read with Section134(3](a] of the Act, the Annual Return as on March 31, 2024 is available on the Company's website at www.sharanaminfra.co.in
8. MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THE FINANCIAL STATEMENTS RELATES AND THE DATE OF THE REPORT:
i. Strategic partnership with Bloom Infra LLC:
The Company has entered into a strategic partnership with Bloom Infra LLC, a prominent real estate developer based in Abu Dhabi, United Arab Emirates. This agreement, effective from 29th March, 2024 endows Sharanam Infraproject with exclusive rights to act as the trading entity for land associated with various development projects in Khalifa City B (Shakhbout City], which are managed by Bloom Infra LLC. The aggregate value of the projects is estimated to be approximately AED 30 billion. Under the agreement, Sharanam Infraproject is poised to earn a trading fee ranging from 0.75% to 1.25% on transactions executed, which is expected to substantially augment our revenue streams and, by extension, enhance shareholder value.
ii. Allotment of Shares on Rights Issue Basis:
The Company has allotted 7,00,01,400 (Seven Crores One Thousand Four Hundred] Equity Shares having face value of Re. 1.00/- (Rupee One Only] each on a Rights basis to the eligible equity shareholders of the Company at a price of Re. 1.00/- (Rupee One Only] per equity share in the ratio of 7:5 i.e., 7 (Seven] Rights Equity shares for every 5 (Five] fully paid-up Equity shares held by the eligible equity shareholders as on the Record date i.e. Wednesday, 10th January, 2024. The said allotment was pursuant to the Letter of Offer dated 12th January, 2024 and the Basis of Allotment as approved by BSE Limited ("BSE"], the Designated Stock Exchange for this issue. Consequent to the said allotment, the Paid-up Equity Share Capital of the Company increased from Rs. 5,00,01,000/- to Rs. 12,00,02,400/-.
iii. Change in Registered Office:
The Company vide its board meeting held on Tuesday, 23rd April, 2024, changed its registered office within the local limits of the city from 303, Earth Arise, Nr. Y.M.C.A. Club, S. G. Road, Makarba, Vejalpur, Ahmedabad - 380051 to B418, Sobo Center, A Block, 4th Floor, Sobo Center, South Bopal, Ahmedabad - 380058, Gujarat, India.
9. SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS:
There are no significant material orders passed by the Regulators or Courts or Tribunal, which would impact the going concern status of the Company and its future operation.
10. MEETINGS OF THE BOARD OF DIRECTORS:
The Directors of the Company met at regular intervals at least once in a quarter with the gap between two meetings not exceeding 120 days to take a view of the Company's policies and strategies apart from the Board Matters.
During the year under the review, the Board of Directors met 11(Eleven) times viz. 16th May 2023, 2nd June, 2023, 16th June, 2023, 27th June, 2023, 21st July, 2023, 11th August, 2023, 8th September, 2023, 9th November, 2023, 12th January, 2024, 7th February, 2024, 12th February, 2024.
11. DIRECTORS RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 134 (3)(c) and Section 134(5) of the Companies Act, 2013, to the best of their knowledge and belief the Board of Directors hereby submit that:
a. In the preparation of the Annual Accounts, for the year ended on 31st March, 2024 the applicable accounting standards have been followed and there are no material departure from the same;
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 financial year and of the Profit of the Company for the financial year ended on 31st March, 2024.
c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of 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;
e. The Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively and
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.
12. CORPORATE SOCIAL RESPONSIBILITY (CSR):
The provisions of section 135 of the Companies Act, 2013 is not applicable to your Company as the Company does not fall under the criteria limits mentioned in the said section of the Act.
Hence, the Company has not taken voluntary initiative towards any activity mentioned for Corporate Social Responsibility.
13. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management Discussion and Analysis Report as required under Regulation 34 and Schedule V of the SEBI (Listing Obligation and Disclosure Requirements] Regulations, 2015 forms an integral part of this Report, and provides the Company's current working and future outlook as per Annexure - 1.
14. DISCLOSURES RELATING TO HOLDING / SUBSIDIARY, ASSOCIATE COMPANY AND JOINT VENTURES:
The Company does not have any Holding / Subsidiary/Associate Company and Joint Venture.
15. VIGIL MECHANISM:
During the year under review, the Company did not accept any deposits from the public and not borrowed money from the Banks and Public Financial Institutions. Accordingly, provisions of Section 177(9] of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers] Rules, 2014 does not apply to the Company.
16.SECRETARIAL STANDARDS:
During the year under review, the Company has complied with the applicable Secretarial Standards issued by The Institute of Company Secretaries of India (ICSI). The Company has devised proper systems to ensure compliance with its provisions and is in compliance with the same.
17.STATEMENT ON ANNUAL EVALUATION MADE BY THE BOARD OF DIRECTORS:
The Board evaluated the effectiveness of its functioning, that of the Committees and of individual Directors, pursuant to the provisions of the Act and SEBI Listing Regulations. The Board sought the feedback of Directors on various parameters including:
• Degree of fulfillment of key responsibilities towards stakeholders (by way of monitoring corporate governance practices, participation in the long-term strategic planning, etc.];
• Structure, composition, and role clarity of the Board and Committees;
• Extent of co-ordination and cohesiveness between the Board and its Committees;
• Effectiveness of the deliberations and process management;
• Board / Committee culture and dynamics; and
• Quality of relationship between Board Members and the Management.
The above criteria are broadly based on the Guidance Note on Board Evaluation issued by the Securities and Exchange Board of India on January 5, 2017.
The Chairman of the Board had one-on-one meetings with each Independent Director and the Chairman of NRC had one-on-one meetings with each Executive and NonExecutive, Non-Independent Directors. These meetings were intended to obtain Directors' inputs on effectiveness of the Board/ Committee processes.
In a separate meeting of Independent Directors, performance of Non-Independent Directors, the Board as a whole, and the Chairman of the Company was evaluated, taking into account the views of Executive Directors and Non-Executive Directors.
The Nomination and Remuneration Committee reviewed the performance of the individual directors and the Board as a whole.
In the Board meeting that followed the meeting of the independent directors and the meeting of Nomination and Remuneration Committee, the performance of the Board, its committees, and individual directors was discussed.
The evaluation process endorsed the Board Members' confidence in the ethical standards of the Company, the resilience of the Board and the Management in navigating the Company during challenging times, cohesiveness amongst the Board Members, constructive relationship between the Board and the Management, and the openness of the Management in sharing strategic information to enable Board Members to discharge their responsibilities and fiduciary duties.
The Board carried out an annual performance evaluation of its own performance and that of its committees and individual directors as per the formal mechanism for such evaluation adopted by the Board. The performance evaluation of all the Directors was carried out by the Nomination and Remuneration Committee.
The performance evaluation of the Chairman, the Non-Independent Directors and the Board as a whole was carried out by the Independent Directors. The exercise of performance evaluation was carried out through a structured evaluation process covering various aspects of the Board functioning such as composition of the Board & committees, experience & competencies, performance of specific duties & obligations, contribution at the meetings and otherwise, independent judgment, governance issues etc.
Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of the Directors individually as well as evaluation of the working of the Board by way of individual feedback from directors.
The evaluation frameworks were the following key areas:
a) For Non-Executive & Independent Directors:
• Knowledge
• Professional Conduct
• Comply Secretarial Standard issued by ICSI Duties
• Role and functions
b) For Executive Directors:
• Performance as leader
• Evaluating Business Opportunity and analysis of Risk Reward Scenarios
• Key set investment goal
• Professional conduct and integrity
• Sharing of information with Board.
• Adherence applicable government law
The Directors expressed their satisfaction with the evaluation process.
18. DETAILS OF INTERNAL FINANCIAL CONTROL WITH REFERENCE TO THE FINANCIAL CONTROL:
The Company has in place adequate internal financial controls with reference to financial statement across the organization. The same is subject to review periodically by the internal audit cell for its effectiveness. During the financial year, such controls were tested and no reportable material weaknesses in the design or operations were observed. The Statutory Auditors of the Company also test the effectiveness of Internal Financial Controls in accordance with the requisite standards prescribed by ICAI. Their expressed opinion forms part of the Independent Auditor's report.
Internal Financial Controls are an integrated part of the risk management process, addressing financial and financial reporting risks. The internal financial controls have been documented, digitized and embedded in the business processes.
Assurance on the effectiveness of internal financial controls is obtained through management reviews, control self-assessment, continuous monitoring by functional experts. We believe that these systems provide reasonable assurance that our internal financial controls are designed effectively and are operating as intended.
During the year, no reportable material weakness was observed.
19. REPORTING OF FRAUDS BY THE AUDITORS:
During the year under review, neither the Statutory nor the Secretarial Auditors has reported to the Audit Committee under Section 143(12) of the Companies Act, 2013 any instances of fraud committed against the Company by its officers or employees, the details of which would need to be mentioned in the Board's Report.
20. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT.2013:
The details of loans, investment, guarantees and securities covered under the provisions of section 186 of the Companies Act, 2013 are provided in the financial statement.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES:
All transactions to be entered by the Company with related parties will be in the ordinary course of business and on an arm's length basis. However, the Company has not entered into any related party transaction, as provided in Section 188 of the Companies Act, 2013, with the related party. Hence, Disclosure as required under Section 188 of the Companies Act, 2013 is not applicable to the Company.
21. MANAGING THE RISKS OF, CORRUPTION AND UNETHICAL BUSINESS PRACTICES:
a) Vigil Mechanism / Whistle Blower Policy:
The Company has established vigil mechanism and framed whistle blower policy for Directors and employees to report concerns about unethical behavior, actual or suspected fraud or violation of Company's Code of Conduct or Ethics Policy.
b) Business Conduct Policy:
The Company has framed "Business Conduct Policy". Every employee is required to review and sign the policy at the time of joining and an undertaking shall be given for adherence to the Policy. The objective of the Policy is to conduct the business in an honest, transparent and in an ethical manner. The policy provides for anti-bribery and avoidance of other corruption practices by the employees of the Company.
22. RESERVES & SURPLUS:
23.FOREIGN EXCHANGE EARNINGS AND OUTGO:
24. PARTICULARS OF EMPLOYEES:
The provisions of Rule 5(2) & (3) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 are not applicable to the Company as none of the Employees of the Company has received remuneration above the limits specified in the Rule 5(2) & (3) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 during the financial year 2023-24.
25. LOANS FROM DIRECTOR / RELATIVE OF DIRECTOR:
During the year under review, the Company has not entered into any materially significant related party transactions which may have potential conflict with the interest of the Company at large. Suitable disclosures as required are provided in AS-18 which is forming the part of the notes to financial statement.
26. DIRECTORS AND KEY MANAGERIALPERSONNEL:
The Directors and Key Managerial Personnel of the Company are summarized below as on below:
1 Appointment of Ms. Shwetaben Arvindbhai Saparia as Non-Executive and Independent Director, Mr. Ankitkumar Surendrakumar Agrawal as Non-Executive and Independent Director, Change in designation of Mr. Savankumar Shingala from Non-Executive and Independent Director to Non-Executive Non-Independent Director of the Company and Resignation of Ms. Eeti Shaileshkumar Panchal from the designation of NonExecutive and Independent Director and Mr. Siddharth Jayantibhai Patel from the designation of NonExecutive and Independent Director of the Compnay w.e.f. 10th May, 2024.
2. Appointment of Mr. Suraj Dineshbhai Nakrani as Managing Director and Chairman, Mr. Sandeep Sharma as Non-Executive and Non-Independent Director, Mr. Jitendra Pradipbhai Parmar as Non-Executive and Independent Director, Ms. Riddhiben Kevinkumar Tilva as Non-Executive and Independent Director and Mr. Bhavinkumar R Sherathia as Chief Financial Officer w.e.f. 16th July, 2024.
3. Resignation of Mr. Jigneshkumar Parshottambhai Ambalia from the designation of Managing Director and Chairman, Mr. Savankumar S Shingala from the designation of Non-Executive and Non-Independnet Director, Mr. Pareshbhai Ranchohdbhai Devaiya from the designation of Chief Financial Officer of the Company w.e.f. 18th July, 2024.
4. Resignation of Ms. Shwetaben Arvindbhai Saparia from the designation of Non-Executive and Independent Director, Mr. Ankitkumar Surendrakumar Agrawal from the designation of Non-Executive and Independent Director and
Apart from the above changes, there were no other changes in the composition of the Board of Directors of the Company during the Financial Year 2023-24 and till the date of Board's Report.
As per Companies Act, 2013 the Independent Directors are not liable to retire by rotation.
27. DECLARATION BY INDEPENDENT DIRECTORS:
Mr. Jitendra Pradipbhai Parmar and Ms. Riddhiben Kevinkumar Tilva, Independent Directors of the Company has confirmed to the Board that they meets the criteria of Independence as specified under Section 149 (6] of the Companies Act, 2013 and he qualifies to be an Independent Director and confirms that meets the requirement of Independent Director as mentioned under Regulation 16 (1] (b] of SEBI (Listing Obligation and Disclosure Requirements] Regulations, 2015. The confirmations were noted by the Board.
28. CORPORATE GOVERNANCE:
Your Company strives to incorporate the appropriate standards for corporate governance. Report on Corporate Governance and a Certificate from the secretarial Auditors M/s. Jay Pandya & Associates, Practicing Company Secretaries, regarding compliance of the conditions of Corporate Governance as stipulated in Schedule V of the SEBI (Listing Obligations and Disclosure Requirements] Regulations, 2015 has been annexed herewith as Annexure - 3 to this report
29. DEPOSITS:
As per Section 73 of the Companies Act, 2013, the Company has neither accepted nor renewed any deposits during the financial year. Hence, the Company has not defaulted in repayment of deposits or payment of interest during the financial year.
30. AUDITOR:
A. Statutory Auditor:
M/s A K Ostwal & Co., Chartered Accountants, Ahmedabad, bearing registration number 107200W, Statutory Auditors of the company for the Financial Year 2023-2024.
Company has received a written confirmation from M/s A K Ostwal & Co., Chartered Accountants, Ahmedabad, to the effect that their appointment, if made, would satisfy the criteria provided in Section 141 of the Companies Act, 2013 and the Rules framed there under for re-appointment as Auditors of your Company.
The Auditors have also furnished a declaration confirming their independence as well as their arm's length relationship with your Company as well as declaring that they have not taken up any prohibited non-audit assignments for your Company. The Audit Committee reviews the independence of the Auditors and the effectiveness of the Audit Process.
B. Secretarial Auditor:
The Board appointed M/s. Jay Pandya & Associates, Company Secretaries, Ahmedabad, to conduct Secretarial Audit for the Financial Year 2023-24. The Secretarial Audit Report for the Financial Year ended 31st March, 2023 is annexed herewith marked as Annexure-2 to this Report.
31.DISCLOSURES
A. Composition of Audit Committee:
During the year under review, meetings of members of the Audit committee as tabulated below, was held on 16th May 2023,11th August, 2023, 9th November, 2023, 12th January 2024, 7th February, 2024,12th February, 2024.
The attendance records of the members of the Committee are as follows:
Ms. Shwetaben Arvindbhai Saparia andMr. Ankitkumar Surendrakumar Agrawal appointed as Independent Directors on 10-05-2024 and Audit Committee was reconstituted as below:
Audit Committee was reconstituted on 16th July, 2024. Hence as on the date of Report, below is the Composition of Audit Committee:
B. Composition of Nomination and Remuneration Committee:
During the year under review, meetings of members of Nomination and Remuneration committee as tabulated below, was held on 16th May, 2023 & 8th September, 2023 and 7th February, 2024.
Ms. Shwetaben Arvindbhai Saparia and Mr. Ankitkumar Surendrakumar Agrawal appointed as Independent Directors on 10-05-2024 and Nomination and Remuneration Committee was reconstituted as below:
Nomination and Remuneration Committee was reconstituted on 16th July, 2024. Hence as on the date of Report, below is the Composition of Nomination and Remuneration Committee:
C. Composition of Stakeholders' Relationship Committee:
During the year under review, meetings of members of Stakeholders' Relationship committee as tabulated below, was held on 7th February, 2024 and the attendance records of the members of the Committee are as follows:
Ms. Shwetaben Arvindbhai Saparia and Mr. Ankitkumar Surendrakumar Agrawal appointed as Independent Directors on 10-05-2024 and Stakeholders' Relationship Committee was reconstituted as below:
Stakeholders' Relationship Committee was reconstituted on 16th July, 2024. Hence as on the date of Report, below is the Composition of Nomination and Remuneration Committee:
32.INDEPENDENT DIRECTOR:
Separate meetings of the Independent Directors of the Company were held on 31st March, 2024 to discuss the agenda items as prescribed under applicable laws. All Independent Directors have attended the said meeting. In the opinion of the Board, all the Independent Directors fulfil the conditions of Independence as defined under the Companies Act, 2013 and SEBI (LODR], 2015 and are independent of the management of the Company.
33. DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT.2013:
The Company has always been committed to provide a safe and conducive work environment to its employees. Your directors further state that during the year under review there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal] Act, 2013 as confirmed by the Internal Complaints Committee as constituted by the Company.
34. DEMATERIALISATION OF EQUITY SHARES:
As per direction of the SEBI, the shares of the Company are under compulsory demat form. The Company has established connectivity with both the Depositories i.e., National Securities Depository Limited and Central Depository Services (India] Limited and the Demat activation number allotted to the Company is ISIN: INE104S01022. Presently shares are held in electronic and physical mode.
35.INDUSTRIAL RELATIONS:
The Directors are pleased to report that the relations between the employees and the management continued to remain cordial during the year under review.
36. MAINTENANCE OF COST RECORDS:
The provisions relating to maintenance of cost records as specified by the Central Government under sub-section (1] of section 148 of the Companies Act, 2013, are not applicable to the Company and accordingly such accounts and records are not required to be maintained.
37. DETAILS OF APPLICATION MADE OR PROCEEDING PENDING UNDER INSOLVENCY AND BANKRUPTCY CODE:
During the year under review, there were no application made or any proceeding pending in the name of the company under the Insolvency and Bankruptcy Code, 2016 (31 of 2016].
38. EXPLANATIONS/COMMENTS BY THE BOARD ON EVERY QUALIFICATION- RESERVATION OR ADVERSE REMARK OR DISCLAIMER MADE:
i. Auditors' Report:
The observations of the Statutory Auditors, when read together with the relevant notes to the accounts and accounting policies are self-explanatory and do not call for any further comment.
ii. Secretarial Auditor's Report:
The Observation of the Secretarial Audit report do not call for any comments.
39. POLICY ON DIRECTOR'S APPOINTMENT AND REMUNERATION:
The Remuneration policy is directed towards rewarding performance based on review of achievements on a periodical basis. The remuneration policy is in consonance with the existing industry practice and is designed to create a high-performance culture. It enables the Company to attract, retain and motivate employees to achieve results. The Company has made adequate disclosures to the members on the remuneration paid to Directors from time to time. The Company's Policy on director's appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under Section 178 (3] of the Act is available on the website of the Company at www.sharanaminfra.co.in
40. THE DETAILS OF DIFFERENCE BETWEEN VALUATION AMOUNT OF ONE TIME SETTLEMENT AND THE VALUATION WHILE AVAILING LOAN FROM BANKS AND FINANCIAL INSTITUTIONS:
During the year under review, there has been no one time settlement of Loans taken from Banks and Financial Institutions.
ACKNOWLEDGEMENTS:
Your directors would like to express their sincere appreciation for the co-operation and assistance received from the Bankers, Regulatory Bodies, Stakeholders including Financial Institutions, Suppliers, Customers and other business associates who have extended their valuable sustained support and encouragement during the year under review.
Your directors take this opportunity to recognize and place on record their gratitude and appreciation for the commitment displayed by all executives, officers and staff at all levels of the Company. We look forward for the continued support of every stakeholder in the future.