To,
The Members of,
LIPPI SYSTEMS LIMITED
Your Directors are pleased to present 31st Annual Report together with the Audited
Standalone Financial Statements for the financial year ended 31st March, 2024.
FINANCIAL RESULTS:
(Rs in Lacs)
Particulars: |
2023-24 |
2022-23 |
Net Sales |
Nil |
Nil |
Other Income |
79.42 |
64.36 |
Finance Cost |
0.01 |
0.34 |
Depreciation |
85.54 |
87.06 |
Income Tax Provision |
Nil |
Nil |
Deferred Tax Liability |
(30.03) |
(56.13) |
Net Profit |
(85.94) |
(161.17) |
OPERATIONS:
Your Directors report that for the year under review, your Company has not done any
business activity. Your company had made Net Loss of Rs. 0.86 Crores as against a Loss of
Rs. 1.61 Crores for the preceding year.
The Board of Directors of the Company at their meeting held on 08th November 2023 had
approved to shift the Registered Office of the Company from 3rd Floor, Satya Complex, Nr
Ashwamegh IV, 132Ft Ring Road, Satellite Road, Ahmedabad - 380015 Gujarat, INDIA to
"601 & 602, 6th Floor, Shaligram Corporates, Nr. Dishman House, Iscon-Ambli Road,
Ahmedabad - 380058, Gujarat, INDIA" within the local limits of Ahmedabad city with
effect from 10th November 2023.
During the Financial Year 2022-23, the Company has not changed its nature ofbusiness.
The Company is engaged in the Business of Manufacturing of Rota Gravures.
CHANGE IN NATURE OF BUSINESS, IF ANY:
During the Financial Year 2023-24, the Company has not changed its nature of business.
The Company is engaged in the Business of Manufacturing of Rota Gravures.
SUBSIDIARIES, JOINT VENTURES & ASSOCIATES:
Your Company doesn't have any Subsidiaries, Joint Ventures and Associates.
SEGMENT WISE PERFORMANCE:
The Company is into Manufacturing of Roto Gravure Printing Cylinder and generating
power from wind turbine generator in accordance with the definition of "Segment"
as per the IND AS. The performance of the Company is discussed separately in this Report.
CAPITAL STRUCTURE
The Authorised Share Capital of the Company as on March 31, 2024 was Rs 10,00,00,000
(Rupees Ten crores) divided into 1,00,00,000 (One crores) equity shares of Rs 10 each.
The paid up share capital of the Company as on March 31, 2024, was Rs 7,00,00,000
(Rupees Seven crores only) divided into 70,00,000 (Seventy lakhs ) equity shares of Rs 10
each.
During the year under review, the Company has not issued any Shares with or without
differential rights or Debentures or any other securities by way of Public offer, Private
Placement, Preferential allotment, Rights issue, Bonus Issue, Sweat Equity Shares, and
Employee Stock Option Scheme or in any such other manners.
DIVIDEND:
In view of the marginal profits for the year under review, your directors have not
recommended any dividend for the year under report.
DEPOSITS:
During the year under review your company has not accepted any fixed deposits from the
public under section 73 of companies act, 2013, and therefore no information is required
to be furnished in respect of outstanding deposits.
VIGIL MECHANISM/WHISTLE BLOWER POLICY:
Pursuant to Section 177(9) of the Companies Act, 2013 and as per SEBI (Listing
Obligation and Discourse Requirements) Regulations, 2015, the Company has formulated a
Whistle Blower Policy to establish a vigil mechanism for directors and employees of the
Company. The purpose and objective of this Policy is to provide a framework to promote
responsible and secure whistle blowing. It protects the employees wishing to raise a
concern about serious irregularities within the Company. The details of the Whistle Blower
Policy are posted on the website (www.lippisystems.com) of the Company.
CODE OF CONDUCT FOR PREVENTION OF INSIDER TRADING:
The Board of Directors has adopted the Insider Trading Policy in accordance with the
requirements of the SEBI (Prohibition of Insider Trading) Regulations, 2015. The Insider
Trading policy of the Company lays down guidelines and procedures to be followed, and
disclosures to be made while dealing with shares of the Company as well as consequences of
violation. The Policy has been formulated to regulate, monitor and ensure reporting of
deals by the employees and to maintain the highest ethical standards of dealing in the
Company's Shares. The Code is also available on the website of the Company.
The Company has adopted the amended Code of Practices and Procedures for Fair
Disclosure of Unpublished Price Sensitive Information in terms of the SEBI (Prohibition of
Insider Trading) Regulation, 2015 (as amended). The same has been filed with the BSE
Limited and also uploaded on the website of the Company.
SECRETARIAL STANDARDS
During the year under review, the Company has complied with the provisions of
Secretarial Standard 1 (relating to Meetings of the Board of Directors) and Secretarial
Standard 2 (relating to General Meetings) issued by the Institute of the Company
Secretaries of India.
RISK MANAGEMENT AND INTERNAL CONTROL SYSTEMS:
The Company has established a well-defined process of risk management, wherein the
identification, analysis and assessment of the various risks, measuring of the probable
impact of such risks, formulation of risk mitigation strategy and implementation of the
same takes place in a structured manner. Though the various risks associated with the
business cannot be eliminated completely, all efforts are made to minimize the impact of
such risks on the operations of the Company. Necessary internal control systems are also
put in place by the Company on various activities across the board to ensure that business
operations are directed towards attaining the stated organizational objectives with
optimum utilization of the resources. Apart from these internal control procedures, a
well-defined and established system of internal audit is in operation to independently
review and strengthen these control measures, which is carried out by a reputed firm of
Chartered Accountants. The Audit Committee of the Company regularly reviews the reports of
the internal auditors and recommends actions for further improvement of the internal
controls. The Risk Management policy is posted on the website of the Company.
RELATED PARTY TRANSACTIONS:
The Company has entered into related party transaction during the financial year 2023-
24, the details of which are given in the notes forming parts of Financial Statements. All
Related Party Transactions entered into are on an arm's length basis. 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 potential
conflict with the interests of the Company at large.
On the recommendation of the Audit Committee, the Board of Directors has adopted a
policy on Related Party Transactions, which is also uploaded on the website of the Company
(www.lippisystems.com) under the head of 'Investor'. The Policy envisages the procedure
governing related party transactions required to be followed to ensure compliance with the
applicable laws and regulations as well as to ensure that the Related Party Transactions
are managed and disclosed in accordance with the strict legal and accounting requirements.
A statement of all related party transactions is presented before the Audit Committee
on a quarterly basis, specifying the nature, value and terms &conditions of the
transactions. The statement is supported by a certificate from the CEO/ CFO.
None of the Directors has any pecuniary relationships or transactions vis-a-vis the
Company.
EXTRACT OF ANNUAL RETURN:
The Annual Return as required under sub-section (3) of Section 92 of the Companies Act,
2013 ('the Act') in form MGT-7 is made available on the website of the Company and can be
accessed at www.lippisystems.com.
CORPORATE SOCIAL RESPONSIBILITY:
The Company is not required to give information relating to Corporate Social
Responsibility as the Company does not fall under the applicable threshold limit mentioned
under section 135 of the Companies Act, 2013.
The Company is striving to make good profit in the coming years and the Board of
Directors of the Company assures to contribute funds in future.
MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT:
Management's Discussion and Analysis Report for the year under review, as stipulated
under SEBI (Listing Obligation and Discourse Requirements) Regulations, 2015, is presented
in a separate section forming part of the Annual Report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:
There are no significant and material orders passed by the Regulators/Courts which
would impact the going concern status of the Company and its future operations.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH
HAVE OCCURED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL
STATEMENTS RELATE AND THE DATE OF THE REPORT:
In terms of Section 134(3) (l) of the Companies Act, 2013, except as disclosed
elsewhere in this Report, no material changes and commitments which could affect the
Company's financial position have occurred between the end of the financial year of the
Company and date of this Report.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The Company has disclosed the full particulars of the loans given, investments made or
guarantees given or security provided as required under section 186 of the Companies Act,
2013, Regulation 34(3) and Schedule V of the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015 in Notes forming part of the financial statements.
TRANSFER TO RESERVES:
The Company has transferred current year's Loss of Rs. 85.94 Lakhs to the Reserve &
Surplus and the same is in compliance with the applicable provisions prescribed under the
Companies Act, 2013.
DIRECTORS:
As on March 31, 2024, the Board comprised of Five (5) Directors out of which Two (2)
are Executive Promoter Directors, and rest Three (3) are Independent Directors including
Woman Director. The composition of the Board is in conformity with the Companies Act, 2013
and the Securities Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
(i) Appointment
Following Directors were appointed:
1. Tirthraj Pandya (Non- Executive non Independent Director) from 01/04/2024 as an
additional Director.
2. Apexa Panchal (Woman - Independent Director) from 30/05/2024 as an addition
Director.
The Board of Directors had proposed their appointments in the 31st Annual General
Meeting and the resolution for said appointments shall form part of the Notice of 31st
Annual General Meeting.
(ii) Retirement by rotation
In accordance with the provisions of the Companies Act, 2013 and Articles of
Association of the Company, Mr. Nandlal J. Agrawal (DIN: 00336556) retires by rotation and
is eligible for reappointment. Appropriate resolution for his re-appointment is being
placed for your approval at the ensuing AGM.
A brief resume and other relevant details of the Directors proposed to be appointed /
re- appointed are given in the Annexure to the Notice convening the AGM.
(iii) Retirements and Resignations along with facts of resignation:
During the Financial Year 2023-24, Mr. Kamlesh Sunderlal Sharma (DIN-01563040) has been
retired from the position of Independent Director (Non-Executive) of the Company, pursuant
to completion of his term (two consecutive terms), with effect from 31st March 2024 (close
of business hours).
Mr. Tirthraj Ashokbhai Pandya (DIN - 02972285) has been retired from the position of
Independent Director (Non-Executive) of the Company, pursuant to completion of his term
(two consecutive terms), with effect from 31st March 2024 (close of business hours).
Mr. Swetal Sapra (DIN - 08536677), Independent Director has tendered her Resignation
from the office of Director with effect from the closing of the business hours on
Thursday, 30th May, 2024 due to personal reasons.
The Board placed on record its appreciation for his valuable contribution during her
tenure as Woman Independent Director of the Company.
(iv) Declarations by Independent Directors
Your Company has received declarations from all the Independent Directors under Section
149(7) of the Companies Act, 2013 confirming that they fulfill the criteria of
independence as prescribed under Section 149(6) of the Companies Act, 2013 read with the
Schedules and Rules issued thereunder as well as under Regulation 16(b) of the Securities
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015.
All the Independent Directors of the Company have registered themselves with the Indian
Institute of Corporate Affairs ("IICA").
(v) Key Managerial Personnel:
As on 31st March, 2024, Pursuant to the provisions of Section 203 of the Companies Act,
2013, Mr., Nandlal Jaigopal Agrawal (Managing Director), Mr. Kunal Nandlal Agrawal
(Whole-Time Director), Mr. Gopalkrishna D Sharma (CFO) and Mr. Darshan B. Shah (CS) are
the Key Managerial Personnel's of your Company.
(vi) Board Evaluation
In compliance with the provisions of the Companies Act, 2013 ('the Act') and LODR, the
Board during the year adopted a formal mechanism for evaluation of its performances as
well as that of its committees and individual Directors, including the Chairman of the
Board. A structured mechanism was prepared after taking into consideration inputs received
from the Directors, covering various aspects of the Board's functioning such as adequacy
of the composition of the Board and its Committees, Board culture, execution and
performance of specific duties, obligations and governance.
A separate exercise was carried out to evaluate the performance of individual Directors
including the Chairman of the Board, who were evaluated on parameters such as level of
engagement and contribution, independence of judgment, safeguarding the interest of the
Company and its minority shareholders, etc. The performance evaluation of the Independent
Directors was carried out by the entire Board. The performance evaluation of the Chairman
and the Non-Independent Directors was carried out by the Independent Directors. The
Directors expressed their satisfaction with the evaluation process.
(vii) Familiarization Program for Independent Directors
On appointment, the concerned Director is issued a letter of Appointment setting out in
detail, the terms of appointment, duties and responsibilities. Each newly appointed
Independent Director is taken through a familiarization program. The program aims to
familiarize the Directors with the Company, their role and responsibilities, business
model of the Company etc.
(viii) Code of Conduct
The Board of Directors of the Company have adopted Code of Business Conduct &
Ethics. This Code is applicable to all the Directors and senior management personnel.
In terms of the requirements of SEBI (Listing Obligation and Disclosure Requirements)
Regulations, 2015, the Code of Business Conduct & Ethics, as approved by the Board of
Directors, has been displayed at the website of the company, www.lippisystems.com, under
the heading 'Investors'. All the members of the Board and senior management personnel have
affirmed compliance with the Code for the year ended 31st March, 2023 and a declaration to
that effect signed by the Chairman & Managing Director is attached and forms part of
this report.
(vii) Nomination & Remuneration Policy
The Board has, on the recommendation of the Nomination & Remuneration Committee,
framed a Policy for selection, appointment and remuneration of Directors and Key
Managerial Personnel, including criteria for determining qualifications, positive
attributes, Independence of Directors.
(vi) Board Meetings
During the year 5 Meetings of the Board were held. The Board of directors was met on
30/05/2023, 14/08/2023, 08/11/2023, 08/02/2023 and 30/03/2024.
As on 31st March, 2022, the composition and attendance of Board of Directors are as:
Sl. No. Name of Director |
Category of Director |
No. of Board Meetings attended |
Attendance at the last AGM |
No. of committee/ membership in which he/she is a member of
Chairperson |
1 Shri Nandlal Agrawal (DIN:00336556) |
Managing Director -Chairman |
5 |
Yes |
None |
2 Shri Kunal Agrawal (DIN:00169324) |
Whole Time Director |
5 |
Yes |
None |
3 Shri Tirthraj Pandya (DIN:02972285) |
Independent |
5 |
Yes |
Member in One Committee & Chairman in one Committee |
4 Shri Kamlesh Sharma (DIN: 01563040) |
Independent |
5 |
Yes |
Chairman in one Committee |
5 Ms Swetal Sapra (DIN: 07155395) |
Woman -Independent |
5 |
Yes |
Member in three Committee |
6 Shri. Govindlal C. Thakkar (DIN:07531165) |
Independent |
5 |
Yes |
Chairman in one Committee Member in Two Committees |
The intervening gap between the meetings was within the period prescribed under the
Companies Act, 2013. Every Director currently on the Board of the Company has personally
attended at least one Board / Committee of Directors' Meeting in the financial year
2023-24. All the information required to be furnished to the Board was made available
along with detailed Agenda.
As per Schedule IV of the Companies Act, 2013, a separate meeting of Independent
Directors without the attendance of Non-Independent Directors was held on 08th February
2024 to discuss the agenda items as required under the Companies Act, 2013 and Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015. The Independent Directors reviewed the performance of non-independent directors and
the Board as whole, reviewed the performance of the Chairman of the Company taking into
account the views of executive and non-executive directors and assessed the quality,
quantity and timeliness flow of information between the Company Management and the Board
that is necessary for the Board to effectively and reasonably perform their duties. The
Independent Directors expressed their satisfaction with overall functioning and
implementations of their suggestions.
The information as specified in Schedule II of the Securities Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 is regularly made
available to the Board. The minutes of the meeting of Board and its Committees are
captured in accordance with the provisions of the Companies Act, 2013 and the Companies
(Meetings of Board and its Powers) Rules, 2014 and Secretarial Standards in respect of
Board Meeting and also circulated in advance to all Directors and Members of the Committee
and confirmed at subsequent meeting.
COMMITTEES OF THE BOARD
The Board of directors of the company has constituted various committees of the members
of the board. The terms of reference of these committees have determined by the board from
time to time.
AUDIT COMMITTEE:
Audit Committee comprises of Mr. Govind C Thakkar (Chairman) (DIN: 07531165), Ms.
Swetal Sapra (DIN: 08536677) and Mr. Tirthraj Pandya (DIN: 02972285).
The terms of reference of the Committee are as is specified in Companies Act, 2013 and
Regulations 27 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015. During the financial year the Committee met on 30/05/2023, 14/08/2023, 08/11/2023
and 08/02/2024. Presently, the following functions are performed by the Audit Committee:
Overseeing the company's financial reporting process and the disclosure of
financial information to ensure that the financial statements are correct, sufficient and
credible;
Recommending to the Board, the appointment, re-appointment and, if required, the
replacement or removal of the statutory & internal auditors, fixing audit fees and
approving payments for any other service;
Reviewing with management the annual financial statements before submission to
the Board;
Reviewing with the management Quarterly/Annual and other financial statements
before submission to the Board for approval;
Reviewing with the management the performance of statutory and internal
auditors, the adequacy of internal control systems and recommending improvements to the
management;
Reviewing the adequacy of internal audit function;
Discussing with internal auditors of any significant findings and follow-up
thereon;
Reviewing the findings of any internal investigation by the internal auditors
into matters where there is a suspected fraud or irregularity or a failure of the internal
control systems of a material nature and reporting the matter to the Board;
Discussing with the statutory auditors before the audit commences on the nature
and scope of audit as well as have post-audit discussions to ascertain any area of
concern;
Reviewing reports furnished by statutory & internal auditors and ensuring
follow- up thereon;
The Committee also reviews the Management Discussion and Analysis of the
financial condition and results of operations, statements of significant related party
transactions and any other matter which may be a part of its terms of reference or
referred to by the Board of Directors.
The Company Secretary acts as the Secretary of the Committee.
All the recommendations of the Audit Committee during the year were accepted by the
Board of Directors.
NOMINATION AND REMUNERATION COMMITTEE:
The Nomination and Remuneration Committee consists of Mr. Kamlesh Sharma (Chairman)
(DIN: 01563040), Ms. Swetal Sapra (DIN: 08536677), and Mr. Govind Thakkar (DIN: 07531165).
The Nomination and Remuneration Committee shall identify persons who are qualified to
become directors and who may be appointed in senior management in accordance with the
criteria laid down, recommend to the Board their appointment and removal and shall carry
out evaluation of every director's performance. The committee has been constituted to
recommend/ review the remuneration package of Managing/ whole time Directors.
During the financial year the Committee met on 30/05/2023, 14/08/2023, 08/11/2023,
08/02/2024 and 30/03/2024.
Nomination and Remuneration Policy
This Nomination and Remuneration Policy is being formulated in compliance with Section
178 of the Companies Act, 2013 read along with the applicable rules thereto and as per
(LODR) Regulations, 2015 as amended from time to time. This policy on nomination and
remuneration of Directors, Key Managerial Personnel and Senior Management has been
formulated by the Nomination and Remuneration Committee (NRC or the Committee) and has
been approved by the Board of Directors.
Definitions:
"Remuneration" means any money or its equivalent given or passed to any
person for services rendered by him and includes perquisites as defined under the
Income-tax Act, 1961;
"Key Managerial Personnel" means:
i) Managing Director, or Chief Executive Officer or Manager and in their absence, a
Whole-time Director;
ii) Chief Financial Officer;
iii) Company Secretary; and
iv) Such other officer as may be prescribed.
"Senior Managerial Personnel" mean the personnel of the company who are
members of its core management team excluding Board of Directors. Normally, this would
comprise all members of management, of rank equivalent to General Manager and above,
including all functional heads.
Objective:
The objective of the policy is to ensure that
The level and composition of remuneration is reasonable and sufficient to
attract, retain and motivate directors of the quality required to run the company
successfully;
Relationship of remuneration to performance is clear and meets appropriate
performance benchmarks; and
Remuneration to directors, key managerial personnel and senior management
involves a balance between fixed and incentive pay reflecting short and long-term
performance objectives appropriate to the working of the company and its goals.
Role of the Committee:
The role of the NRC will be the following:
To formulate criteria for determining qualifications, positive attributes and
independence of a Director.
To formulate criteria for evaluation of Independent Directors and the Board.
To identify persons who are qualified to become Directors and who may be
appointed in Senior Management in accordance with the criteria laid down in this policy.
To carry out evaluation of Director's performance.
To recommend to the Board the appointment and removal of Directors and Senior
Management.
To recommend to the Board policy relating to remuneration for Directors, Key
Managerial Personnel and Senior Management.
To devise a policy on Board diversity, composition, size.
Succession planning for replacing Key Executives and overseeing.
To carry out any other function as is mandated by the Board from time to time
and / or enforced by any statutory notification, amendment or modification, as may be
applicable.
To perform such other functions as may be necessary or appropriate for the
performance of its duties.
APPOINTMENT AND REMOVAL OF DIRECTOR, KEY MANAGERIAL PERSONNELAND SENIOR
MANAGEMENT
a) The Committee shall identify and ascertain the integrity, qualification, expertise
and experience of the person for appointment as Director, KMP or at Senior Management
level and recommend his / her appointment, as per Company's Policy.
b) A person should possess adequate qualification, expertise and experience for the
position he /she is considered for appointment. The Committee has authority to decide
whether qualification, expertise and experience possessed by a person is sufficient /
satisfactory for the position.
c) The Company shall not appoint or continue the employment of any person as Whole-time
Director who has attained the age of seventy years. Provided that the term of the person
holding this position may be extended beyond the age of seventy years with the approval of
shareholders by passing a special resolution.
TERM / TENURE
a) Managing Director/Whole-time Director:
The Company shall appoint or re-appoint any person as its Executive Chairman, Managing
Director or Executive Director for a term not exceeding Three years at a time. No
re-appointment shall be made earlier than one year before the expiry of term.
b) Independent Director:
An Independent Director shall hold office for a term up to five consecutive years on
the Board of the Company and will be eligible for re-appointment on passing of a special
resolution by the Company and disclosure of such appointment in the Board's report.
No Independent Director shall hold office for more than two consecutive terms of upto
maximum of 5 years each, but such Independent Director shall be eligible for appointment
after expiry of three years of ceasing to become an Independent Director.
Provided that an Independent Director shall not, during the said period of three years,
be appointed in or be associated with the Company in any other capacity, either directly
or indirectly.
At the time of appointment of Independent Director it should be ensured that number of
Boards on which such Independent Director serves is restricted to seven listed companies
as an Independent Director and three listed companies as an Independent Director in case
such person is serving as a Whole-time Director of a listed company or such other number
as may be prescribed under the Act.
EVALUATION
The Committee shall carry out evaluation of performance of Director, KMP and Senior
Management Personnel yearly or at such intervals as may be considered necessary.
REMOVAL
The Committee may recommend with reasons recorded in writing, removal of a Director,
KMP or Senior Management Personnel subject to the provisions and compliance of the
Companies Act, 2013, rules and regulations and the policy of the Company.
RETIREMENT
The Director, KMP and Senior Management Personnel shall retire as per the applicable
provisions of the Act and the prevailing policy of the Company. The Board will have the
discretion to retain the Director, KMP, Senior Management Personnel in the same position/
remuneration or otherwise even after attaining the retirement age, for the benefit of the
Company.
POLICY FOR REMUNERATION TO DIRECTORS/ KMP/ SENIOR MANAGEMENT PERSONNEL
1) Remuneration to Managing Director / Whole-time Directors:
a) The Remuneration/ Commission etc. to be paid to Managing Director / Whole-time
Directors, etc. shall be governed as per provisions of the Companies Act, 2013 and rules
made there under or any other enactment for the time being in force and the approvals
obtained from the Members of the Company.
b) The Nomination and Remuneration Committee shall make such recommendations to the
Board of Directors, as it may consider appropriate with regard to remuneration to Managing
Director / Whole-time Directors.
2) Remuneration to Non- Executive / Independent Directors:
a) The Non-Executive / Independent Directors may receive sitting fees and such other
remuneration as permissible under the provisions of Companies Act, 2013. The amount of
sitting fees shall be such as may be recommended by the Nomination and Remuneration
Committee and approved by the Board of Directors.
b) All the remuneration of the Non- Executive / Independent Directors (excluding
remuneration for attending meetings as prescribed under Section 197 (5) of the Companies
Act, 2013) shall be subject to ceiling/ limits as provided under Companies Act, 2013 and
rules made there under or any other enactment for the time being in force. The amount of
such remuneration shall be such as may be recommended by the Nomination and Remuneration
Committee and approved by the Board of Directors or shareholders, as the case may be.
c) An Independent Director shall not be eligible to get Stock Options and also shall
not be eligible to participate in any share based payment schemes of the Company.
d) Any remuneration paid to Non- Executive / Independent Directors for services
rendered which are of professional in nature shall not be considered as part of the
remuneration for the purposes of clause (b) above if the following conditions are
satisfied:
i) The Services are rendered by such Director in his capacity as the professional; and
ii) In the opinion of the Committee, the director possesses the requisite qualification
for the practice of that profession.
e) The Compensation Committee of the Company, constituted for the purpose of
administering the Employee Stock Option/ Purchase Schemes, shall determine the stock
options and other share based payments to be made to Directors (other than Independent
Directors).
3) Remuneration to Key Managerial Personnel and Senior Management:
a) The remuneration to Key Managerial Personnel and Senior Management shall consist of
fixed pay and incentive pay, in compliance with the provisions of the Companies Act,
2013and in accordance with the Company's Policy.
b) The Compensation Committee of the Company, constituted for the purpose of
administering the Employee Stock Option/ Purchase Schemes, shall determine the stock
options and other share based payments to be made to Key Managerial Personnel and Senior
Management.
c) The Fixed pay shall include monthly remuneration, employer's contribution to
Provident Fund, contribution to pension fund, pension schemes, etc. as decided from to
time.
d) The Incentive pay shall be decided based on the balance between performance of the
Company and performance of the Key Managerial Personnel and Senior Management, to be
decided annually or at such intervals as may be considered appropriate.
IMPLEMENTATION
The Committee may issue guidelines, procedures, formats, reporting mechanism and
manuals in supplement and for better implementation of this policy as considered
appropriate.
The Committee may Delegate any of its powers to one or more of its members.
SHAREHOLDERS' GRIEVANCE AND STAKEHOLDERS RELATIONSHIPS COMMITTEE:
The Board has constituted Shareholder's Grievance and Stakeholders Relationship
Committee consisting of Mr. Tirthraj Pandya (Chairman) (DIN: 02972285), Ms. Swetal Sapra
(DIN: 08536677) and Mr. Govindlal Thakkar (DIN: 07531165).
During the financial year the Committee met on 30/05/2023, 14/08/2023, 08/11/2023 and
08/02/2024.
The terms of reference of the Committee are as specified below:
Terms of reference
i. To allot equity shares of the Company,
ii. Efficient transfer of shares; including review of cases for refusal of transfer /
transmission of shares and debentures;
iii. Redressal of shareholder and investor complaints like transfer of shares, non-
receipt of balance sheet, non-receipt of dividends etc;
iv. Issue of duplicate / split / consolidated share certificates;
v. Allotment and listing of shares;
vi. Review of cases for refusal of transfer / transmission of shares and debentures;
vii. Reference to statutory and regulatory authorities regarding investor grievances;
viii. And to otherwise ensure proper and timely attendance and Redressal of investor
queries and grievances.
Details of Shareholders Complaints are given below: RTA
Details of Shareholders Complaints are given below: RTA
Details of Complaints Received |
Nos. |
Number of Shareholders' Complaints received from 01.04.2023 to 31.03.2024 |
0 |
Number of Complaints not solved to the satisfaction of the shareholder |
0 |
Number of Pending Complaints on 31.03.2024 |
0 |
DETAILS OF REMUNERATION TO DIRECTORS DURING THE YEAR ENDING ON 31ST MARCH, 2024:
Remuneration paid during the Financial Year 2023-24 to Executive Directors are:
Name of Director |
Yearly Remuneration (Rs.) |
Mr. Nandlal Jaigopal Agrawal (DIN: 00336556) |
9,00,000.00 |
Mr. Kunal Nandlal Agrawal (DIN: 00169324) |
6,00,000.00 |
Total |
15,00,000.00 |
The company is neither paying any sitting fees nor providing any perquisite to its
Directors.
BOARD DIVERSITY:
The Company recognizes the importance of a diverse Board in its process. We believe
that a truly diverse Board will leverage differences in thought, perspective, knowledge,
skill, regional and industry experience, cultural and geographical background, age,
ethnicity, race and gender which will help to provide better directions and supervision to
the affairs of the Company. The Board has adopted the Board diversity policy which sets
out the approach to diversity of the Board of Directors. The Policy is also available on
the website of the Company.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO:
The information relating to conservation of energy, technology absorption and foreign
exchange earnings & outgo as required under Section 134(3) (m) of the Companies Act,
2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is Annexed herewith as
"Annexure - A".
AUDIT COMMITTEE:
Pursuant to Section 177 of the Companies Act, 2013 the board of directors has
constituted an audit committee. The audit committee comprises of Shri Govindlal C Thakkar
(DIN: 07531165) Chairperson, Shri Tirthraj Pandya (DIN: 02972285) Member and, Ms. Swetal
Sapra (DIN: 08536677) up to 30th May, 2024 and Ms. Apexa Panchal from 30th May, 2024
Member.
DIRECTORS' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and
explanations obtained by them, your Directors make the following statements in terms of
the Section 134(3) (c) of the Companies Act, 2013:
(i) That in the preparation of the annual financial statements for the year ended March
31, 2024, the applicable accounting standards have been followed along with proper
explanation relating to material departures, if any;
(ii) That such accounting policies, as mentioned in the Financial Statements as
'Significant Accounting Policies' have been selected and applied consistently and
judgments and estimates have been made that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the company as at March 31,2024 and of the
profit of the Company for the year ended on that date;
(iii) That proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 2013 for
safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;
(iv) That the annual financial statements have been prepared on a going concern basis;
(v) That proper internal financial controls were in place and that the financial
controls were adequate and were operating effectively;
(vi) That proper systems to ensure compliance with the provisions of all applicable
laws were in place and were adequate and operating effectively.
AUDITORS:
(i) Statutory Auditors
The Board of Directors after considering the recommendations of the Audit Committee, at
its meeting held on 26th August, 2022 has recommended the appointment of M/s Ashok
Dhariwal & Co, Chartered Accountants (FRN- 100648W), as the Statutory Auditors of the
Company for a period commencing from the conclusion of this 29th Annual General Meeting
till the conclusion of the 34th Annual General Meeting to audit the Financial Statements
of the Company. Further in terms of Clause 40 of Companies (Amendment) Act, 2017 which was
notified vide Notification dated S.O. 1833 (E) dated 7th May 2018 and effective from the
date, the Proviso of Section 139(1) relating to ratification of Appointment of Auditors at
every Annual General Meeting of the Company has been omitted and the requirement of
Ratification of Auditors Appointment is no longer required as per the Companies Act, 2013.
Therefore, the resolution for ratification of Appointment of Statutory Auditors M/s
Ashok Dhariwal & Co, Chartered Accountants (FRN-100648W), Chartered Accountants, has
not been provided for the approval of the Shareholders and not formed as a part of Notice
of the 31st AGM of the Company.
The Auditors' Report for Financial Year ended 31st March 2024 forms part of the
Integrated Annual Report and does not contain any qualification, reservation or adverse
remarks.
(ii) Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has
appointed M/s Kunal Sharma & Associates, a firm of Company Secretaries in Practice, to
undertake the Secretarial Audit of the Company. The Report of the Secretarial Audit is
annexed herewith as "Annexure - B".
Reply to the Observation:
The 100% Shareholding of the Promoters and Promoters Group are not in Dematerialised
Form. |
The Company is under discussions and dialogues with the Promoters who are holding the
Equity Shares in Physical form to get those Dematerialised at the earliest. However,
response for the said matter is awaited. |
(iii) Internal Auditor
Pursuant to provisions of Section 138 of the Companies Act, 2013 and the Companies
(Accounts) Rules, 2014, M/s Vijay Moondra & Co., Chartered Accountants has been
appointed as Internal Auditors of the Company for the Financial Year 2023-24.
(iv) Cost Auditor:
The appointment of Cost Auditor for the Company is not applicable to the Company.
FRAUDS REPORTED BY AUDITORS:
No frauds are reported by the Auditors which fall under the purview of sub section (12)
of Section 143 ofthe Companies Act, 2013.
PARTICULARS OF EMPLOYEES
No employee of the Company was in receipt of remuneration more than the limits
specified under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, during the financial year ended 31st March 2023. The information
required under Section 197(12) of the Companies Act, 2013 read with Rule 5 of the
Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 is given in
the Statement annexed herewith as "Annexure - C". CORPORATE GOVERNANCE REPORT
Pursuant to Regulation 15 of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR"),
Corporate Governance provisions as specified is not applicable to the Company, since
the paid up share capital of the Company and the Net Worth is below the threshold
limits prescribed under the SEBI LODR.
SEXUAL HARASSMENT:
The Company has complied with the provisions relating to the Constitution of Internal
Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. There was no case filled or registered with the
Committee during the year, under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition & Redressal) Act, 2013. Further Company ensures that there is a healthy
and safe environment for every women employee at the workplace and made the necessary
policies for safe and secure environment for women employee.
ADEQUACY OF INTERNAL FINANCIAL CONTROL
The Company has adequate internal financial control with reference to the financial
statements commensurate with its size and nature of business. These controls include well
documented procedures, covering financial and operational functions. The internal
financial controls of the Company are adequate to ensure the accuracy and completeness of
accounting records, timely preparation of reliable financial information, prevention and
detection of frauds and errors and safeguard against any losses or unauthorized use or
disposal of assets. These controls are assessed on a regular basis by Internal Audit. OTHER
DISCLOSURES:
The Company does not have any scheme or provision of money for the purchase of
its own shares by employees or by trustees for the benefit of employees.
There is no proceeding pending under the Insolvency and Bankruptcy Code, 2016.
There was no instance of one-time settlement with any Bank or Financial
Institution.
ACKNOWLEDGEMENT:
The Board wishes to place on record their sincere appreciation and acknowledge with
gratitude the effort put in and co-operation extended by bankers, shareholders, employees
at all levels and all other associated persons, bodies or agencies for their continued
support.
Place: - Ahmedabad |
By order of the Board of Directors |
Date: - 14th August, 2024. |
For Lippi Systems Limited |
|
Nandlal J. Agrawal |
|
Chairman & Managing Director |
|
(DIN: 00336556) |