Your Directors have pleasure in presenting the 20th Annual Report on the business and operations of the Company together with the Audited Accounts of the Company for the year ended 31st March, 2024.
FINANCIAL RESULT
The summary of financial results for the year and appropriation of divisible profits is given below:
(Rs in Lakhs)
| |
Particulars
|
2023-2024
|
2022-2023
|
| |
Turnover
|
92389.77
|
32281.76
|
| |
Profit Before Taxation
|
5906.93
|
3893.86
|
| |
Taxation
|
1862.64
|
1220.26
|
| |
Profit / (Loss) after Tax
|
4044.29
|
2673.60
|
| |
Profit Before Tax Margin (%)
|
6.39
|
12.06
|
| |
Profit After Tax Margin (%)
|
4.36
|
8.28
|
PERFORMANCE REVIEW AND STATE OF COMPANY’S AFFAIR:
During the period under review the company has achieved turnover of Rs 92389.77 lakhs and the profit of the company before tax is Rs 5906.93 lakhs and profit after tax is Rs 4044.29 lakhs.
The production of 61526 M.T. of Beneficiated Rock Phosphate, 113291 M.T. of Single Super Phosphate (including consumption of micronutrient Zinc Sulphate and Boron), 150466 M.T. of Sulphuric Acid, Oleum, Coloro Sulphonic Acid, and other Products, 97671 MT of Nitrogen Phosphate & Potassium (NPK), 48171 MT of Phosphoric Acid, 51291 MT of Di Ammonia Phosphate.
The profit of the company before tax is Rs 5906.93 lakhs and profit after tax is Rs 4044.29 lakhs.
CHANGE IN THE NATURE OF BUSINESS OF COMPANY
During the year under review, there is no change in the nature of business of Company.
LISTING OF THE COMPANY
The Shares of your Company are Listed on "National Stock Exchange" Platform with stock code "KRISHANA" The annual Listing Fees for the Year 2024-25 has been Paid by the company to the exchange.
SHARE CAPITAL
The Authorized Equity Share Capital of your company has been increased from Rs. 40,00,00,000 to Rs. 70,00,00,000 during the year under review. The Authorized Equity Share Capital of Company as on 31st March, 2024 stood at Rs.70,00,00,000/- (Rupees Seventy Crore Only) comprising of 7,00,00,000 (Seven Crore) Equity Shares of Face Value of 10/- (Rupees Ten Only) each.
The paid-up share capital of your company has been increased from Rs. 30,91,38,000 to Rs. 61,82,76,000 during the year under review. The Company has issued and allotted 3,09,13,800 fully paid-up Bonus Equity shares of Rs 10 each on 25th October 2023 in the ratio of 1:1(i.e 1 Bonus Equity shares for every 1 existing equity shares of the company).
Post Bonus, the paid-up Equity Share Capital of the company stands at 61,82,76,00 equity shares of 10 each, aggregating to Rs. 61,82,76,000.
ANNUAL RETURN (SECTION 92):
The information required pursuant to the provisions of Section 134 (3) (a) and Section 92 (3) of the Companies Act, 2013 read with Rule 12 of Companies (Management and Administration) Rules, 2014, the Annual Return for the financial year ended on March 31st, 2024 is available on the website of the Company viz. http:/ /www.krishnaphoschem.com
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
Pursuant to Regulation 34 of the Listing Regulations, the Business Responsibility and Sustainability Report for the financial year ended 31st March, 2024, is provided in Annexure I forming part of this report and the same is also available on the website of the Company.
STATUTORY AUDITORS' & STATUTORY AUDITORS' REPORT
Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, M/s Ashok Kanther & Associates, Chartered Accountants, was appointed as the Auditor of the Company for a period of 5 consecutive years till the conclusion of 23rd AGM to be held in the year 2027.
The Auditor's Report is self-explanatory and therefore, does not call for any further comments/ clarifications and Auditor's report does not contain any qualification, reservation or adverse remarks
SECRETARIAL AUDITOR & SECRETARIAL AUDITORS' REPORT
Pursuant to the provisions of Section 204(1) of the Companies Act, 2013 and the Companies (Appointment & Remuneration of Managerial personnel) Rules, 2014, the company has Reappointed M/s Sourabh Bapna & Associates, a Proprietorship firm of company Secretaries in practice to undertake the Secretarial Audit of the Company for financial year 2024-25. The Company has received their consent for Re-appointment.
The Secretarial Audit report for financial year 2023-24 received from Sourabh Bapna & Associates is provided in Annexure II forming part of this report.
The Secretarial Audit report received from M/s Sourabh Bapna & Associates does not contain any qualification, reservation or adverse remarks.
COST AUDITOR
M/s. K. C. Moondra & Associates, Cost Accountant, was re-appointed as Cost Auditors of your Company for FY 2024-2025.
For the financial year 2023-24, M/s. K. C. Moondra & Associates, Cost Accountant have conducted the audit of the cost records of the Company.
In accordance with the provisions of Section 148 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, and on the recommendation of the Audit Committee, the Board has Re-appointed M/s K.C. Moondra & Associates, Cost Accountants (Registration No. 101814), at such remuneration as fixed by board of directors to conduct the audit of the cost records of the Company for the financial year ending 31stMarch, 2025. The Re-appointment and the remuneration of the Cost Auditor is required to be ratified subsequently by the Members of the Company and further subject to the approval of the Central Government.
The Company has received their written consent and confirmation that the Re-appointment will be in accordance with the applicable provisions of the Act and rules framed thereunder.
INTERNAL AUDITOR & AUDITORS' REPORT
As per section 138 of The Companies Act 2013 read with Rule 13 of Companies (Accounts) Rules, 2014, the company has Re-appointed M/s Sourabh Bapna & Associates, Practising Company Secretaries as Internal Auditor to conduct Internal Audit for the Financial Year 2024-25. The Company has received their consent for Re-appointment.
The Internal Audit Report is received by the Company and the same is reviewed and approved by the Audit Committee and Board of Directors for the year 2023-2024. All the observations made by the Internal Auditors have been attended to.
INTERNAL CONTROL SYSTEM
The company has in place an adequate internal control system, which is commensurate with the size, scale and complexity of the company. The internal auditors independently evaluate the adequacy of internal controls and concurrently audit the majority of the transactions in value terms. Independence of the audit compliance is ensured by the direct reporting of Internal Audit Division and Internal Auditors to the Audit Committee of the Board.
During the period under review the Internal Financial Control were tested and no reportable material weakness in the design or operation were observed.
REPORTING OF FRAUDS BY AUDITORS, IF ANY:
No fraud has been reported by auditors under section 143 (12) of the companies act 2013. RESERVES
During the Year under review, The Board of Director of company have recommended to transfer Rs. 3889.72 lakhs to Retained Earnings and issue bonus share of Rs.3091.38 from retained earning reserves hence, the retained earnings has increased to Rs 16,845.10 lakhs.
DIVIDEND
After considering earnings, requirement for funds and with the objective of rewarding the Shareholders, the Board has recommended final dividend of 5% being Rs. 0.50 per equity share of Rs. 10/- each for the financial year 2023-24, subject to approval at the ensuing Annual General Meeting.
The Dividend payout for the Financial Year under review is in accordance with the Company's Dividend Distribution Policy.
In terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Dividend Distribution Policy of the Company is made available on the website of the Company. The same can be accessed on http:/ /www.krishnaphoschem.com
DEPOSITS:
During the year, the Company has not accepted deposits from the public under section 73 chater V of the Companies Act, 2013.
NO DEFAULT:
The company has not defaulted in payment of interest and/or repayment of loan to any of the financial institutions and/or bank.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with provisions of Companies Act, 2013 and company's Articles of Association, Mr. Sunil Kothari (DIN: 02056569), Director of the Company, retire by rotation and being eligible, offers himself for re-appointment. The Board recommends his re-appointment.
During the year, Mr. Praveen Ostwal Managing Director of the Company, Mr. Sunil Kothari, Whole Time Director & Chief Financial Officer,Ms. Priyanka Bansal, Company Secretary & Compliance Officer of the Company (Resigned w.e.f 30.09.2023) and Mr. Ankit Mundra Company Secretary & Compliance Officer of the Company(appointed w.e.f 13.12.2023) were designated as Key Managerial Personnel of the Company pursuant to Section 203 of the Companies Act, 2013.
POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND OTHER DETAILS
The policy on appointment of directors, remuneration and other matters provided in Section 178(3) of the Act has been disclosed in the Corporate Governance Report, which is a part of this report and is also available on the Company's website at http:/ /www.krishnaphoschem.com.
DECLARATION OF INDEPENDENT DIRECTORS:
The Company has received necessary declaration from each Independent Director under Section 149(7) of the Companies Act, 2013, to the effect that they meet the criteria of independence laid down in Section 149(6) of the Companies Act, 2013. The terms and conditions for appointment of the Independent Directors are incorporated on the website of the Company.
The Board is of the opinion that the Independent Directors of the Company possess requisite qualifications, experience and expertise and that they hold highest standards of integrity
NUMBER OF MEETING OF BOARD OF DIRECTORS:
The Board of Directors duly met 10 (Ten) times on 21st April 2023, 12h June 2023, 10th August 2023, 29th August 2023,23rd September 2023, 30th September 2023,25th October 2023, 10th November 2023, 13th December 2023 and 12thFebruary 2024 in the Financial Year 2023-24 in respect of each meetings, proper notices were given and the proceedings were properly recorded and signed in the Minutes Book maintained for the purpose. The details of Board Meetings and the attendance of the Directors there at are provided in the Corporate Governance Report. The intervening time gap between two consecutive Meetings of the Board was within the limit prescribed under the Companies Act, 2013.
INSOLVENCY AND BANKRUPTCY CODE & ONE-TIME SETTLEMENT
The company does not make any application under the Insolvency and Bankruptcy Code, 2016 and There is no proceeding pending against the Company under the Insolvency and Bankruptcy Code, 2016 (IBC Code).
Further, there has not been any instance of one-time settlement of the Company with any bank or financial institution.
PARTICULARS OF EMPLOYEES
The information required pursuant to the Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of ratio of remuneration of each director to the median remuneration of the employees of the Company is provided in Annexure III forming part of this report.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGOING
The details as required under section 134 (3) (m) of the Companies Act, 2013 read with the Rule 8 of Companies (Account) Rule, 2014 for conservation of Energy, Technology Absorption and Foreign Exchange earnings and outgo are given in Annexure IV forming part of this report.
PARTICULAR OF LOAN, GUARANTEE AND INVESTMENT UNDER SECTION 186:
The information required for loans given, investment made or guarantee given or security provided under section 186 of the Companies Act, 2013 read with the rule 11 of Companies (Meetings of Board and its power) Rule, 2014 is given in Annexure V forming part of this report and also provided in the financial statement of the Company (please refer Notes of the balance sheet).
RISK MANAGEMENT POLICY :
Proper Risk Management Practices have been followed for the purpose of risk identification, analysis, response planning, and monitoring, controlling, and reporting. Although, all risks cannot be eliminated, but mitigation and contingency plans have been developed to lessen their impact if they occur.
The Company has constituted a Risk Management Committee, as per the details set out in the Corporate Governance Report. The Company has formulated a Risk Management Policy to ensure risks associated with the business operations are identified and risk mitigation plans put in place. Details of the key risk associated with the business are given in the Management Discussion and Analysis Report.
COMPLIANCE WITH THE SECRETARIAL STANDARDS:
The Company is in compliance with the Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI), as applicable.
RELATED PARTY TRANSACTION UNDER SECTION 188
All related party transactions that were entered into during the financial year were on arm's length basis and were in the ordinary course of the business. There are no materially significant related party transactions made by the company during the financial year which were in the conflict of interest of the company.
Information on transactions with related parties pursuant to Section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 are given in Annexure VI in Form AOC-2 and the same forms part of this report.
Related party transactions as required under the Indian Accounting Standards are disclosed in Notes to the financial statements of the Company for the financial year ended March 31, 2024. The Policy on Related Party Transaction is available on the Company's website at http://www.krishnaphoschem.com.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORTS
The Corporate Governance and Management Discussion & Analysis Report, as required pursuant to the SEBI ((Listing Obligations & Disclosure Requirements) Regulations, 2015, is provided in Annexure VII and Annexure VIII respectively forming part of this report.
BOARD EVALUATION:
Pursuant to the relevant provisions of the Companies Act, 2013 and the Listing regulations, the Board has carried out an annual performance evaluation of its own, working of its Committees and the Directors. The Nomination and Remuneration Committee has carried out evaluation of every Director. The Independent Directors evaluated performance of the Non-Independent Directors, the Board as whole and the Chairperson of the Company.
COMMITTEES OF BOARD:
The Board of Directors of your Company has constituted the following committees in terms of the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosures Requirements), Regulation, 2015:
AUDIT COMMITTEE DISCLOSURE UNDER SECTION 177:
The Audit Committee of the Company consists of 2 Independent Directors and 1 Executive Director. The Chairman of the Audit Committee is financially literate and majority of them having accounting or related financial management experience. Company Secretary acts as Secretary to the Committee.
The following Directors are the members of Audit Committee.
(1) Mr. Pradeep Agrawal Chairman
(2) Mrs. Priyanka Surana Member
(3) Mr. Sunil Kothari Member
During the year the Committee had 4 Meetings i.e. on 21st April 2023, 10th August 2023, 10th November 2023 and 12th February 2024.
NOMINATION & REMUNERATION COMMITTEE DISCLOSURE UNDER SECTION 178:
In pursuant to the provisions of section 178 (4) of the Companies Act, 2013, Nomination and Remuneration Policy recommended by the Nomination and Remuneration committee is duly approved by the Board of Directors of the Company. Policy is disclosed on the website of the Company http:/ /www.krishnaphoschem.com
The following Directors are the members of Nomination and Remuneration Committee.
(1) Mr. Pradeep Agrawal Chairman
(2) Mr. Gopal Inani Member
(3) Mr. Priyanka Surana Member
The Committee meets twice in a year and also as and when any remuneration is to be fixed for any Director /Managing Director and Key Managerial Personnel. During the year the Committee had 2 Meetings i.e. on 25th October 2023 and 13th December 2023.
Mr. Sunil Kothari was appointed as a member of committee w.e.f 10.08.2023 in place of Mr. Praveen Ostwal.
INDEPENDENT DIRECTORS COMMITTEE:
The following are the members of independent directors committee:
(1) Mr. Pradeep Agarwal Chairman
(2) Mr. Gopal Inani Member
(3) Mrs. Priyanka Surana Member
During the year one Independent Directors Committee Meeting were held on 30th March 2024. STAKEHOLDER RELATIONSHIP COMMITTEE:
The following Committee of Directors looks after the Investor Grievances:
(1) Mr.Pradeep Agarwal Chairman
(2) Mr. Gopal Inani Member
(3) Mr. Sunil Kothari Member
During the year the 4 Stakeholder Relationship Committee Meetings were held on 21st April 2023, 10th August 2023, 10th November 2023 and 12th February 2024 the complaints received and their disposal has been reviewed.
CORPORATE SOCIAL RESPONSIBILITY:
In pursuant to the provisions of section 135 and schedule VII of the Companies Act, 2013, CSR Committee of the Board of Directors was formed to recommend (a) the policy on Corporate Social Responsibility (CSR) and (b) implementation of the CSR Projects or Programs to be undertaken by the Company as per CSR Policy for consideration and approval by the Board of Directors. CSR Policy is disclosed on the website of the Company viz. http:/ /www.krishnaphoschem.com.
As per provision of new enacted Company Act, 2013, the Board of Directors have framed Corporate Social Responsibilities Committee having the following members: -
(1) Mr. Pradeep Agarwal Chairman
(2) Mr. Gopal Inani Member
(3) Mr. Sunil Kothari Member
Our Company considers social responsibility as an integral part of its business activities and endeavors to utilize allocable CSR budget for the benefit of society.
Krishana Phoschem Limited (KPL) contributed immensely to help the marginalized sections of the society.
Your company as part of its responsibility towards society has been taking welfare measures from time to time.
During the year the Committee had 2 Meetings i.e., on 30th September 2023 and 30th March 2024.
The CSR Report for the financial year ended on March 31st, 2024 is provided in Annexure IX forming part of this report.
RISK MANAGEMENT COMMITTEE:
The Board of Directors of the Company have constituted a Risk Management Committee to inter-alia, assist the Board in overseeing the responsibilities with regard to identification, evaluation and mitigation of operational, strategic and external environmental risks.
The following Directors are the members of Risk Management Committee.:
(1) Mrs. Priyanka Surana Chairman
(2) Mr. Pradeep Agarwal Member
(3) Mr. Sunil Kothari Member
During the year the 2 Risk Management Committee Meetings were held on 10st August 2023 and 25th October 2023.
WHISTLE BLOWER POLICY / VIGIL MECHANISM
The Board of Directors has adopted Whistle Blower Policy. The Whistle Blower Policy aims for conducting the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behaviour. A mechanism has been established for employees to report concerns about unethical behaviour, actual or suspected fraud or violation of Code of Conduct and Ethics. It also provides for adequate safeguards against the victimization of employees who avail of the mechanism and allows direct access to the Chairperson of the audit committee in exceptional cases.
The whistle Blower Policy has been uploaded on the website of the Company (www.krishnaphoschem.com).
MATERIAL CHANGES AND COMMITMENTS:
There have been no material changes and commitments, affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of this report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
No significant and material orders have been passed by the regulators or Courts or Tribunals which impact the going concern status of your Company and the Company's operations in future.
SUBSIDIARY, JOINT VENTURE AND ASSOCIATE COMPANY:
The Company does not have any Subsidiary, Joint Venture and Associate Company.
CREDIT RATINGS:
During financial Year 2023-24 CRISIL Rating has assigned overall Credit Ratings in respect of borrowings availed by the Company as 'CRISIL A/Stable'.
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 requirement of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainee) are covered under this policy.
The following is a summary of sexual harassment complaints received and disposed off during the year 2023-24.
No. of complaints received: Nil No. of complaints disposed off: Nil
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134 (3) (c) & 134 (5) of the Companies Act, 2013 with respect to Directors Responsibility Statement, it is hereby confirmed that:
(a) In the preparation of the annual accounts for the Financial Year ended 31st March, 2024, 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 the year under review;
(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 for the financial year ended 31st March, 2024 on a going concern basis;
(e) That the Directors 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.
HEALTH, SAFETY, QUALITY AND ENVIRONMENTAL PROTECTION
Your Company is ISO 9001:2015 certified and maintains high quality of product and processes. The quality assurance is ensured at all stages of manufacturing processes, maintenance and support services. Quality reviews are regularly conducted and feedback from end users (farmers) is accorded utmost importance. Sophisticated instruments are in place for monitoring of critical quality parameters.
ACKNOWLEDGEMENT
Your Directors wish to place on record their grateful appreciation for the co-operation and assistance received from Share Holders, Customers, Banks, Financial Corporations, various Government Authorities for their whole hearted support. Your Directors also recognize and appreciate the efforts and hard work of all employees of the company and their continued contribution to company's progress.
For and on Behalf of the Board of Directors
Date: 17.08.2024 Sd/- Sd/-
Place: Bhilwara Praveen Ostwal Sunil Kothari
(Managing Director) (Whole time Director & CFO)
(DIN: 00412207) (DIN: 02056569)
|