To
The Members
Padmalaya Telefilms Limited
Your directors have pleasure in presenting the 33rd Annual Report on the
business of your company and the Audited Financial Statements for the year ended on 31st
March 2024 thereof. The Business and operations of the company over the last fiscal year
are briefly encapsulated in this Annual Report.
Financial Results
Financial performance of the Company is elaborated in the Financial Statements annexed
to this Annual Report.
Business Performance Review
During the year under review, the performance of the company is not as per the business
standards set-up by the management due to various external, marketing & industry
factors have affected the business. The Board and its Management has made the postmortem
analysis on the performance and the Board of Directors assures you better performance in
the years to come.
Outlook for the current year
Your Company is not as per the expectations in spite of continuous efforts to
strengthen its stand in the market.
Dividend
The Board could not recommend dividend during the year under review in absence of
profits.
BUSINESS RISK MANAGEMENT
The Company, like any other enterprise, is exposed to business risk which can be
internal risks as well as external risks. The threats to the industry in which the company
operates are:
Piracy: Piracy of the produced content, under the purview of intellectual property
rights, can adversely affect revenues and profitability.
Mitigation: Industry members have set up an Antipiracy Society (AACT) to fight the
menace.
DEPOSITS
The Company has not accepted deposits covered under Chapter V of the Companies Act,
2013 and accordingly, the disclosure requirements stipulated under the said Chapter are
not applicable.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
During the year under review, the company has not given any loans, Guarantees and
Investments covered under the provisions of Section 186 of the Companies Act, 2013
CONTRACTS AND ARRANGEMEMENTS WITH RELATED PARTIES
Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of
the Companies (Accounts) Rules, 2014, except the remuneration to managerial personnel,
there are no related party transactions to be disclosed.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexed
herewith elsewhere in the Annual Report.
DEMAT SUSPENSE ACCOUNT UNCLAIMED SHARES
As on 31st March 2024, there were no Equity Shares of Shareholders were
lying in the Escrow Account due to non-availability of the correct particulars.
CORPORATE GOVERNANCE
Your Company is compliant with the Corporate Governance requirements as per the
Provisions of SEBI (Listing Obligations and Disclosures Requirements) Regulations upto a
certain extent. A separate section on Corporate Governance together with a certificate
from the Statutory Auditor's confirming compliance is set out in the Annexure forming part
of this report.
MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT
A Management Discussion and Analysis Report, has been attached and forms part of the
Annual Report.
ADDITIONAL INFORMATION AS REQUIRED U/ S 134(3)(m) OF THE COMPANIES ACT, 2013
(a) Conservation of Energy:
(i) details of steps taken by the company for utilising alternate sources of energy,
and (ii) the capital investment on energy conservation equipment's, are - The company is
not engaged in manufacturing activities, and as such the particulars relating to
conservation of energy is not applicable. The company makes every effort to conserve
energy as far as possible in its editing facilities, Production Floors, Office etc.
(b) Technology Absorption, adaptation and innovation:-
(i) The company is not engaged in manufacturing activities, and as such the particulars
relating to Research, Development and technology absorption are not applicable.
(ii) Research and Development (R & D): No research and Development has been carried
out.
(c) Foreign exchange earnings: Nil
(d) Foreign exchange out go: Nil
PARTICULARS OF EMPLOYEES
The Directors are to report that none of the employee was in receipt of remuneration
exceeding the limit prescribed under rule 5(2) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules 2014 .
AUDIT COMMITTEE:
Pursuant to the provisions of section 177 of the Companies Act, 2013 the company's
Board constituted the Audit Committee with the following directors.
| Sri Datla Venkata Narasimha Raju, Independent Director as Chairman. |
| Sri Bharadwaja Thammareddy, Non-Executive - Independent Director |
| Smt. Uma Devi Narravula, Non-Executive Independent Director. |
STATUTORY AUDITORS
At the 31st Annual General Meeting held on 30th September, 2022,
M/s. P Murali & Co., Chartered Accountants (FRN: 007257S), Hyderabad were appointed as
Statutory Auditors of the Company, to hold office for a period of five consecutive years
commencing from the financial year 2022-23. In this regard, the said Statutory Auditors
has given the declaration that they meet the criteria to act as the Statutory Auditor and
they are not disqualified to continue as the Statutory Auditors of the Company. It would
be in accordance with the provisions of section 141 of the Companies Act, 2013.
BOARD AND COMMITTEES PERFORMANCE EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and SEBI (LODR) Regulations 2015,
the Board has carried out an annual performance, the directors individually as well as the
evaluation of the working of its Audit and Nomination & Remuneration Committees.
NUMBER OF BOARD MEETINGS HELD DURING THE FINANCIAL YEAR AND THE DATES OF THE BOARD
MEETINGS:
The Board met during the financial year 2023-24 as follows & the dates on which the
above-Board meetings were held are as follows: 30th May 2023, 14th
August 2023, 5th September 2023, 14th November 2023, and 14th
February 2024.
DIRECTORS AND INDEPENDENT DIRECTORS
In accordance with the provisions of the Act and Articles of Association of the
Company, the Board is duly constituted. During the financial year under review, Sri. G.V.
Narasimha Rao (DIN: 01763565) Director retired by rotation and being eligible were
reappointed.
Mrs. Uma Devi Narravula was appointed by the Board of Directors as an Additional
Director of the Company w.e.f 14th August 2019 and she was regularized as Director as well
as Independent Director in the Annual General Meeting held on 30th September
2019 for a period of five years. Board of Directors in its meeting held on 14th
August 2024, has considered and approved her re-appointment for the second term as
Independent Director, which needs to be ratified by the shareholders of the Company in
this Annual General Meeting.
Dr. DVN Raju was originally appointed on 26th December 2005, and as required under the
Companies Act, 2013, earlier appointed as Independent Directors of the Company in the 23rd
Annual General Meeting held on 30th September 2014, for a period of five years i.e. till
29th September 2019. Subsequently, he was reappointed for the second time as Independent
Director of the Company, term of which expires on 30th September 2024. As per
the provisions of the Companies Act, 2013 with respect to appointment and tenure of the
Independent Director, the Independent Director shall be appointed for not more than two
terms of five years each and shall not be liable to retire by rotation at every AGM.
Accordingly, the Independent Director will serve for not more than two terms of five years
each on the Board of the Company. In line with the requirements of the Companies Act,
2013, it is therefore proposed to designate him as Non Executive Non-Independent Director
on the Board of the Company, commencing from 30th September 2024. A brief profile of
proposed Independent Director, including nature of their expertise, is provided in this
Annual Report.
All Independent Directors have given declarations that they meet the criteria of
independence as laid down under Section 149(6) of the Companies Act, 2013 and SEBI (LODR)
Regulations 2015. The Company has received declarations from the Independent Directors of
the Company to the effect that they are meeting the criteria of independence as provided
in Sub-section (6) of Section 149 of the Companies Act, 2013 and are available for
inspection at the registered office of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134(3) (c) of the Companies Act, 2013, with
respect to Director's responsibilities Statement it is hereby confirmed:
| a. That in preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to material
departures; |
| b. That the directors 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 at the end of the
financial year ended 31st March, 2024 and of the profit and loss of the company
for that period; |
| c. That the directors have 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. That the directors have prepared the annual accounts on a going
concern basis. |
| e. that proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively; |
| f. That systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating effectively. |
POLICIES
Material Subsidiary
During the year ended March 31, 2024, the Company does not have any material
listed/unlisted subsidiary companies as defined in SEBI (LODR) Regulations. The policy on
determining material unlisted subsidiary of the Company is approved by the Board of
Directors of the Company.
Vigil Mechanism
Pursuant to the provisions of section 177(9) & (10) of the Companies Act, 2013,
Pursuant to the provisions of section 177(9) & (10) of the Companies Act, 2013, a
Vigil Blower Mechanism for directors and employees to report genuine concerns has been
established.
The Board of Directors of the company are committed to maintain the highest standard of
honesty, openness and accountability and recognize that employees have important role to
play in achieving the goal. As a public company the integrity of the financial matters of
the Company and the accuracy of financial information is paramount. The stakeholders of
the Company and the financial markets rely on this information to make decisions.
For these reasons, the Company must maintain workplace where it can retain and treat
all complaints concerning questionable accounting practices, internal accounting controls
or auditing matters or concerning the reporting of fraudulent financial information to our
shareholders, the Government or the financial markets. The employees should be able to
raise these free of any discrimination, retaliation or harassment. Pursuant to the policy,
employees are encouraged to report questionable accounting practices to Dr. DVN Raju (DIN:
01887919), Chairman of Audit Committee through email or by correspondence through post.
Details of Subsidiaries, Associate Companies, and Joint Venture Companies, including in
the consolidated financial statements:
The Company do not have Subsidiaries, Associate Companies, and Joint Venture Companies.
So, the financials of the Company do not require to be prepared on consolidated basis.
Material changes and commitments affecting the financial position.
During the period under review, there is no event & Material change and commitments
affecting the financial position.
Company's policy on director's appointment & remuneration.
The Company has a policy on Directors' appointment & Remuneration and the same will
be implemented whenever the appointments take place.
Particulars of loans, Guarantees or investments.
During the period under review, there were no loans / Guarantees / Investments
taken/provided by the Company.
Particulars of contract or arrangement with related party
During the period under review, there were no contracts or arrangement with related
party except as provided in the Auditor's Report.
Annual evaluation of its own & Board committees' performance.
The company has a policy on Board & Committees' evolution & performance and the
same is being reviewed on quarterly basis.
Implementation of risk management policy.
The company has a policy on risk management and the same is implemented by the Company
to mitigate the risk in the business.
Policy on CSR initiatives
The Company need not have to make constitute a policy for CSR as the same is not
applicable to the Company.
Post Balance Sheet events
There are no material events after the 31st March 2024 till the signing of
this Annual Report, which has significant impact on the business of the Company.
Disclosure about Cost Audit
The requirement of maintaining the cost Audit Records is not applicable to the Company
Disclosure about ESOP and Sweat Equity Share
There are no securities issued on ESOP basis / Sweat Equity.
Familiarisation programme for Independent Directors
Pursuant to the provisions of SEBI (LODR) Regulations, the Company has formulated a
programme for familiarising the Independent Directors with the company, their roles,
rights, responsibilities in the company, nature of the industry in which the company
operates, business model of the company etc through various initiatives.
Key Managerial Personnel
Sri. GV Narasimha Rao (DIN: 01763565) Executive Director of the Company is the Chief
Executive Officer of the Company (CEO), Sri. MVRS Suryanarayana, Chief Financial Officer
(CFO) & Compliance officer of the Company, are the Key Managerial Personnel in
accordance with the Section 203 of the Companies Act, 2013.
Related Party Transaction
Policy on dealing with Related Party Transactions is approved by the Board. No related
party transactions were entered into during the financial year under review, except
remuneration to managerial personnel, there are no materially significant related party
transactions made by the Company with Promoters, Directors, Key Managerial Personnel or
other designated persons which may have a potential conflict with the interest of the
Company at large. The same was discussed by the Audit Committee as also the Board. The
policy on Related Party Transactions as approved by the Board. None of the Directors has
any pecuniary relationships or transactions vis-a-vis the Company.
Internal Financial Controls
The Company has in place adequate internal financial controls with reference to
financial statements. Periodic audits are undertaken on a continuous basis covering all
the operations i.e., manufacturing, sales & distribution, marketing, finance, etc.
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.
Depository System
Your Company's equity shares are tradable compulsorily in electronic form and your
Company has connectivity with both the Depositories i.e., National Securities Depository
Limited (NSDL) and Central Depository Service (India) Limited (CDSL). As per the SEBI
(Listing Obligations & Disclosure Requirements) (Fourth Amendment) Regulations, 2018,
vide Gazette notification dated 8th June 8June, 2018 & 30th
November, 2018 mandated that Share transfer shall be mandatorily carried out in
dematerialized form only w.e.f. from 1st April 1, 2019. In view of the numerous advantages
offered by the Depository System, members are requested to avail the facility of
Dematerialization of the Company's shares on either of the Depositories mentioned as
aforesaid.
Corporate Governance Report
Your Company has taken adequate steps to adhere to all the stipulations laid down in 27
of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. A report
on the Corporate Governance is included as a part of this report. Certificate from the
Secretarial Auditors of the company M/s. Puttaparthi Jagannatham & Co, Company
Secretaries, Hyderabad, confirming the compliance with the conditions of Corporate
Governance as stipulated under above regulations is included as Annexure-6.
Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Secretarial Audit
Report in Form MR-3 is obtained by the company from M/s. Puttaparthi Jagannatham & Co,
Company Secretaries, Hyderabad, and forms part of this Annual report annexed as
Annexure-I.
Explanation to the qualifications mentioned in the Secretarial Audit Report in Form
MR-3 obtained from M/s. Puttaparthi Jagannatham & Co, Company Secretaries, Hyderabad:
The Secretarial Auditors i.e., M/s. Puttaparthi Jagannatham & Co, Company
Secretaries, Hyderabad, has made qualifications in their Secretarial Audit Report,
regarding the instances of non-filing/delay in filing of compliances with the Stock
Exchange during the financial year and others; The Company shall be cautious in future in
this regard, and shall adhere to the Compliance. The Company has set in place the
compliance adherence mechanism as on the date of this report and is reviewed quarterly to
achieve 100% compliance status.
Disclosures pursuant to the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014
The details of remuneration paid to the Managerial Personnel are as under -
1. The Disclosures pursuant to sub-rule (1) of Rule 5 of The Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 are forms part of the Board's Report.
2. The Disclosures pursuant to sub-rule (2) of Rule 5 of The Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, in respect of employees of the Company
forms part of the Board's Report.
Remuneration Policy
The Board has, on the recommendation of the Nomination & Remuneration Committee
framed a policy for selection and appointment of Directors, Senior Management and their
remuneration. The details pertaining to criteria for determining qualifications, positive
attributes and independence of a Director and remuneration policy have been provided in
Section of the attached Corporate Governance Report.
Significant and Material Orders Passed by the Regulators or Courts
There are no significant material orders passed by the Regulators/Courts which would
impact the going concern status of the Company and its future operations.
Reply to the Qualifications / Reservation in the Audit Report / Secretarial Audit
Report
Statutory Auditors of the Company, has made the following qualification / reservations
on the financial statements for the period ended on 31st March 2024, and the
reply of management is as follows:
1. The Company has not paid the GST liability of Rs. 56.06/-(in lakhs) upto 31st
March 2024.
Management's Response:
The GST liability as on 31st Mach 2024, could not be paid due to the
suspension of the registration of the GST registration. The company made appeal and it is
under active consideration of the department for restoration of the same. On resolving of
the issue, the company will proceed to affect the payments.
2. The Company has not submitted the physical verification reports of inventory
aggregating to Rs. 13,13.14/-(in lakhs) as at 31st March 2024, and we are
unable to obtain sufficient appropriate audit evidence regarding the physical existence
and valuation of Inventory. In the absence of alternative corroborative evidence, we are
unable to comment on carrying value of inventory and realizable value of the same.
Management's Response:
The amount has been spent by the company over the past years and the company does not
have any inventory to be valued as on date as the inventory pertains to the production of
films in the past and it is not practically verifiable at this point of time due to
practical difficulties involved in the typical film production.
3. The Company has not submitted the confirmations of Trade Payables and Trade
Receivables of Rs. 36.00/- (in lakhs). In the absence of alternative corroborative
evidence, we are unable to comment on the extent to which such balances are payable ore
receivable.
Management's Response:
The company as per customary practice has issue letters to the trade creditors as well
as to the Trade debtors and no response has been received and as such the company is not
able to confirm the actual balances.
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 Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act
2013. An Internal committee has been set up to redress the complaints received regarding
sexual harassment at workplace. All employees including trainees are covered under this
policy.
PERSONNEL
The relationship between the management and the staff was very cordial throughout the
year under review. Your directors take this opportunity to record their appreciation for
the cooperation and loyal services rendered by the employees.
ACKNOWLEDGEMENTS
Your directors place on records their appreciation of the continuous assistance and
co-operation extended to your Company by the valued customers, bankers, Reserve Bank
India, SEBI, Bombay Stock Exchange Limited & National Stock Exchange of India Limited
and all other regulatory Authorities. The Directors also sincerely acknowledge the
significant contributions made by all the employees for their dedicated services to the
Company.
|
By Order of the Board of Directors |
|
|
For PADMALAYA TELEFILMS LIMITED |
|
|
Sd/- |
Sd/- |
|
G.V.Narasimaha Rao |
Datla Venkata Narasimha Raju |
|
CEO & Executive Director |
Director |
|
(DIN: 01763565) |
(DIN : 01887919) |
|
Sd/- |
|
| Place: Hyderabad |
MVRS Suryanarayana |
|
| Date: 2nd September 2024 |
CFO & Compliance Officer |
|