24th - bseindia.com · be held on thursday, the 29th day of september, 2016 at 10.00 a.m at...

24TH

Annual Report2015 - 2016

AARV INFRATEL LIMITED(Formerly Known as ‘Nylofils India Limited’)

CIN: L05005AP1992PLC013697

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AARV INFRATEL LIMITED 24TH Annual Report(Formerly Known as ‘Nylofils India Limited’)

Index Page

1. Notice 04

2. Directors Reports 13

3. Auditors Reports 29

4. Balance Sheets 34

5. Profit&LossAccount 35

6. Cash Flow Statement 36

7. Notes 37

8. Attendance Slip 51

9. Proxy Slip 53

24TH ANNUAL GENERAL MEETING Thursday, 29th day of September, 2016

at 10.00 a.m at Vikramahal, Subrahmanya Maidanam,

Rajahmundry, Andhra Pradesh-533103,

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CoRPoRATE INFoRMATIoN

Board of Directors:Mrs. Anita Sakuru : Managing Director Mr. Raghuveer Sakuru : Whole Time Director Mr. Praveen Reddy Cheruku : Independent Director Mr. Mallikharjuna Rao Yerrapragada : Independent DirectorMrs. Sudi Vijaya Lakshmi : Independent Director

Audit Committee: Mr. Mallikharjuna Rao Yerrapragada : Chairman Mr. Praveen Reddy Cheruku : Member Mrs. Anita Sakuru : Member

Nomination and Remuneration Committee: Mr. Mallikharjuna Rao Yerrapragada : Chairman Mr. Praveen Reddy Cheruku : Member Mrs. Sudi Vijaya Lakshmi : Member

Stakeholders Relationship Committee: Mr. Mallikharjuna Rao Yerrapragada : Chairman Mr. Praveen Reddy Cheruku : Member Mrs. Anita Sakuru : Member

Registered Office : 46-11-29/1,Danavaipeta, Opp: Rajahmundry Hospital, Rajahmundry - 533103 Andhra Pradesh.

Auditors : M/s. P S Nagaraju & Co Chartered Accountants #604,Kanchanjunga Apartments, D Block, Aditya Enclave, Ameerpet, Hyderabad- 500004 Telangana. Registrars & Share Transfer Agents : System Support Services Opp: Gala no 209, Shivai Industrial, Estate, 89,Andheri Kurla Road, SakinakaAndheri East, Mumbai 400072.

Listed At : BSE Limited

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Notice

Noticeisherebygiventhatthe24thAnnualGeneralMeetingoftheMembersof‘AarvInfratelLimited’willbe held on Thursday, the 29th day of September, 2016 at 10.00 a.m at Vikramahal, Subrahmanya Maidanam, Rajahmundry, Andhra Pradesh-533103, to transact the following business:

ORDINARY BUSINESS:

1. To consider and adoptthe audited Financial Statements of the Company for the Financial Year 2015-16 together with the Report of the Board of Directors and Auditors thereon;

2. ToappointadirectorinplaceofMrs.AnitaSakuru,whoretiresbyrotationandbeingeligible,offersherself for re-appointment.

3. ToratifytheappointmentofStatutoryAuditorsoftheCompanyandfixremuneration.

“RESOLVEDTHATpursuanttotheprovisionsofSections139,141and142oftheCompaniesAct,2013,theappointmentofM/s.NekkantiSrinivasu&co,CharteredAccountants(FirmRegistrationNumber008801S),Hyderabad,whowereappointedastheStatutoryAuditorsoftheCompanytilltheconclusionof25thAnnualGeneralMeeting,beandareherebyratifiedandconfirmed,onsuchremunerationasmay be agreed upon by the Board of Directors and the Auditors, in addition to reimbursement of all outofpocketexpensesinconnectionwiththeauditoftheaccountsoftheCompanyforthefinancialyear ending 31st March, 2017.”

SPECIAL BUSINESS:

4. AppointmentofMrs.AnitaSakuru(DIN-00475947)asManagingDirector

To consider and if thought fit, to pass with or without modification, the following resolution as Sprcial Resolution:

“RESOLVEDTHATPursuanttotheprovisionsofSections196,197&203readwithScheduleV,andotherapplicableprovisions,ifany,oftheCompaniesAct,2013(“theAct”),thecompanies(AppointmentandRemunerationofManagerialpersonnel) 2014 (including any statutorymodificationsor re -enactment(s),forthetimebeinginforce)andsuchotherapprovals/consentsasmayberequired,theconsent of members of company be and is hereby accorded for appointment of Mrs. Anita Sakuru (DIN-00475947)asManagingDirectoroftheCompanyforaperiodof5yearsw.e.f.28thDecember,2015 on a remuneration and such other terms and conditions as set out in the Explanatory Statement annexed hereto.”

5. AppointmentofMr.RaghuveerSakuru(DIN-00475998)asWholeTimeDirector

To consider and if thought fit, to pass with or without modification, the following resolution as a Special Resolution

“RESOLVEDTHATPursuanttotheprovisionsofSections196,197&203readwithScheduleV,andotherapplicableprovisions,ifany,oftheCompaniesAct,2013(theAct),thecompanies(appointmentand remuneration ofmanagerial personnel) 2014 (including any statutorymodifications orreenactment(s),forthetimebeinginforce)andsuchotherapprovals/consentsasmayberequired,the

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consent of members of company be and is hereby accorded for appointment of Mr. Raghuveer Sakuru (DIN-00475998)asWholeTimeDirectoroftheCompanyforaperiodof5yearsw.e.f.28thDecember,2015 on a remuneration and such other terms and conditions as set out in the Explanatory Statement annexed hereto.”

6. AppointmentofMr.PraveenReddyCheruku(DIN-01807406)asIndependentDirector

To consider and if thought fit, to pass with or without modification, the following resolution as a Ordinary Resolution

“RESOLVEDTHATpursuanttotheprovisionsofSections149,150,152,160andanyotherapplicableprovisionsof theCompaniesAct, 2013 and the rulesmade thereunder (includingany statutorymodification(s) or re-enactment thereof for the timebeing in force) readwithSchedule IV to theCompaniesAct,2013,Mr.PraveenReddyCheruku(DIN-01807406)whowasappointedbytheBoardofDirectorsasanAdditionalDirectoroftheCompanywitheffectfrom28thDecember,2015andwhoholdsofficeuptothedateofthisAnnualGeneralMeetingoftheCompanyinandinrespectofwhomthe Company has received a notice in writing from a Member under Section 160 of the Act that his term asanIndependentDirectorforaperiodoffiveyears,beandisherebyappointedasanIndependentDirectorof theCompany, foraperiodoffive consecutiveyears from theensuingAnnualGeneralMeeting.

7. AppointmentofMrs.SudiVijayaLakshmi(DIN-07312976)asIndependentDirector

To consider and if thought fit, to pass with or without modification, the following resolution as a Ordinary Resolution

“RESOLVEDTHATpursuanttotheprovisionsofSections149,150,152,160andanyotherapplicableprovisionsof theCompaniesAct, 2013 and the rulesmade thereunder (includingany statutorymodification(s) or re-enactment thereof for the timebeing in force) readwithSchedule IV to theCompaniesAct,2013,Mrs.SudiVijayaLakshmi(DIN-07312976)whowasappointedbytheBoardofDirectorsasanAdditionalDirectoroftheCompanywitheffectfrom28thDecember,2015andwhoholdsofficeuptothedateofthisAnnualGeneralMeetingoftheCompanyandinrespectofwhomtheCompany has received a notice in writing from a Member under Section 160 of the Act that his term as an IndependentDirectorforaperiodoffiveyears,beandisherebyappointedasanIndependentDirectoroftheCompany,foraperiodoffiveconsecutiveyearsfromtheensuingAnnualGeneralMeeting.

By Order of the Board ForAARVINFRATELLIMITED

Date: 12th August 2016 Sd/-Place:Hyderabad. AnitaSakuru Managing Director (DINNo.:00475947)

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NOTES:

1. A Member entitled to attend and vote at the Annual General Meeting may appoint a proxy to attend and vote on a poll on his behalf. A proxy need not be a Member of the Company. The instrument of proxy inordertobeeffective,mustbereceivedattheRegisteredOfficeoftheCompany,dulycompletedandsigned not less than forty-eight hours before the commencement of the Annual General Meeting.

2. TheRegisterofMembersandtheShareTransferBooksoftheCompanywillbeclosedfromWednesday21stSeptember2016toThursday,29thSeptember2016(bothdaysinclusive).

3. Explanatory Statement setting out to the Notice of the Meeting.

4. Corporatemembersarerequestedtosend,adulycertifiedcopyoftheboardresolutionpursuanttoSection 113 of the Companies Act, 2013 authorizing their representative to attend and vote at the Annual General Meeting.

5. MembersholdingsharesinphysicalformshouldinformtheCompany’sRegistrarandTransferAgents,M/s. System Support Servicesof any change in their registered address, e-mail address. Similarly, MembersholdingsharesinelectronicformshouldinformtheirDepositoryParticipants(DP)ofanychange in their registered address, e-mail address.

6. Memberswhohavemultiplefoliosinidenticalnamesorjointnamesinthesameorderarerequestedto intimate to the Registrar and Transfer Agents, M/s. System Support Services about these folios to enable consolidation of all such shareholdings into one folio.

7. For the convenience of Members and for proper conduct of the meeting, entry to the venue of the Meeting willberegulatedbyAttendanceSlip,whichisenclosedwiththisnotice.Membersarerequestedtosignat the place provided on the Attendance Slip and hand it over at the entrance to the venue.

8. TheCompanyhasdesignated an exclusive e-mail ID called [email protected] forRedressal ofshareholders’complaints/grievances.

9. The Register of Directors and Key Managerial Personnel and their shareholding, maintained under Section 170 of the Companies Act, 2013, will be available for inspection by the members at the AGM.

10. ThedocumentsreferredtointhisnoticeareopenforinspectionattheRegisteredOfficeoftheCompanyon all working days, except Saturdays, between 10.00 a.m. and 03.00 p.m. up to the date of Annual General Meeting.

11. TheMinistryofCorporateAffairs (MCA),Govt.of Indiahas takenaGreen Initiativebyallowingpaperless compliance by the Companies and has permitted Companies to issue copies of Annual Report bye-mailtotheShareholders.TheListingAgreementwiththeStockExchangesrequirestheCompanyto send soft copies of the Annual Report and Accounts to those Members who have registered their e-mail addresses for the purpose. The Members can register their e-mail addresses with the Registrar and Transfer Agent of the Company. The registration by the Members will contribute towards furtherance of the “Green Initiative in Corporate Governance” announced by MCA.

12. In compliance with the provisions of Section 108 of the Companies Act, 2013, read with Rule 20 of theCompanies(ManagementandAdministration)Rules,2014,theCompanyispleasedtoprovideto

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theMembersthefacilitytoexercisetheirrighttovoteatthe24thAnnualGeneralMeeting(AGM)byelectronic means and the business may be transacted through e-voting services provided by Central DepositoryServices(India)Ltd.(CDSL).

13. TheCompanyhasappointedMrs.N.Vanitha (ACSNo.26859,CPNo.10573),PracticingCompanySecretary,whointheopinionoftheBoardisadulyqualifiedperson,asaScrutinizerwhowillscrutinizethe electronic voting process in a fair and transparent manner. The Scrutinizer shall within a period of three working days from the date of conclusion of e-voting period, submit her report of the votes cast in favour or against, if any, to the Chairman of the Company. The result of the same will be disclosed at the AGM proceedings.

Instructions for E-voting:

Members receiving electronic copy and/or a physical copy of the Annual Report:

The business as set out in the Notice may be transacted through electronic voting system and the Company is providing facility for voting by electronic means. Pursuant to the provisions of Section 108oftheCompaniesAct,2013,readwiththeCompanies(ManagementandAdministration)Rules,2014,theCompanyispleasedtooffere-votingfacilityasanalternatetoitsmemberstocasttheirvoteselectronically on all resolutions set forth in the Notice convening the 24th Annual General Meeting. The CompanyhasengagedtheservicesofCentralDepositoryServicesIndiaLimited(CDSL)toprovidethee-voting facility.

TheMemberswhosenamesappearintheRegisterofMembers/ListofBeneficialOwnersason22ndSeptember,2016(cut-offdate),areentitledtovoteontheresolutionssetforthinthisNotice

The e-voting period will commence on day, Monday 26th September, 2016 from 09.00 and will end on Thursday 28th September, 2016 at 17.00 during this period, shareholders of the Company holding shares eitherinphysicalformorindematerializedform,asonthecut-offdatemaycasttheirvoteelectronically.Thee-votingmoduleshallbedisabledbyCDSLforvotingthereafter.Memberswillnotbeabletocasttheirvoteselectronicallybeyondthedate&timementionedabove.

PROCEDURE FOR E-VOTING:

Instructions for members for voting electronically are as under: A. Incaseofmembersreceivinge-mail(formemberswhosee-mailaddressareregisteredwiththe

Company/Registrars) (i) Theshareholdersshouldlogontothee-votingwebsitewww.evotingindia.com.(ii) Clickon“Shareholders”tab.(iii) NowEnteryourUserID

a. ForCDSL:16digitsbeneficiaryIDb. ForNSDL:8CharacterDPIDfollowedby8DigitsClientIDc. Members holding shares in Physical Form should enter Folio Number registered with the

Company. (iv) NextentertheImageVerificationasdisplayedandClickonLogin.(v) Ifyouareholdingsharesindematformandhadloggedontowww.evotingindia.comandvoted

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on an earlier voting of any company, then your existing password is to be used. (vi) Ifyouareafirsttimeuser,followthestepsgivenbelowforthepassword:

For Members holding shares in Demat Form and Physical Form

PAN Enteryour10digitalpha-numeric*PANissuedbyIncomeTaxDepartment(Applicablefor both demat shareholders as well as physical shareholders). Members who have not updatedtheirPANwiththeCompany/DepositoryParticipantarerequestedtousethefirsttwolettersoftheirnameandthe8digitsofthesequencenumberinthePANfield.Incasethesequencenumberislessthan8digitsentertheapplicablenumberof0’sbeforethenumberafterthefirsttwocharactersofthenameinCAPITALletters.Eg.IfyournameisRameshKumarwithsequencenumber1thenenterRA00000001inthePANfield

EntertheDateofBirth(DOB)asrecordedinyourdemataccountorintheCompanyrecordsfor the said demat account or folio in dd/mm/yyyy format.

Enter the Dividend Bank Details as recorded in your demat account or in the Company records for the said demat account or folio. Please enter the DOB or Dividend Bank Details in order to login. If the details are not recorded with the depository or Company please enterthememberid/folionumberintheDividendBankdetailsfield

(vii) Afterenteringthesedetailsappropriately,clickon“SUBMIT”tab.

(viii) MembersholdingsharesinphysicalformwillthendirectlyreachtheCompanyselectionscreen.However,membersholding shares indemat formwillnowreach ‘PasswordCreation’menuwhereintheyarerequiredtomandatorilyentertheirloginpasswordinthenewpasswordfield.Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other Company on which they are eligible to vote, provided that company opts for e-voting throughCDSLplatform.Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.

(ix) ForMembersholdingsharesinphysicalform,thedetailscanbeusedonlyfore-votingontheresolutions contained in this Notice.

(x) ClickontheEVSNfortherelevantCompany,i.e.,AarvInfrarelLimitedonwhichyouchoosetovote.

(xi) Onthevotingpage,youwillsee“RESOLUTIONDESCRIPTION”andagainstthesametheoption“YES/NO” for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.

(xii) Clickonthe“RESOLUTIONSFILELINK”ifyouwishtoviewtheentireResolutiondetails.

(xiii) Afterselectingtheresolutionyouhavedecidedtovoteon,clickon“SUBMIT”.Aconfirmationboxwillbedisplayed.Ifyouwishtoconfirmyourvote,clickon“OK”,elsetochangeyourvote,clickon“CANCEL”andaccordinglymodifyyourvote.

Date of Birth

Dividend BankDetails#

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(xiv) Onceyou“CONFIRM”yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.

(xv) Youcanalsotakeoutprintofthevotingdonebyyoubyclickingon“Clickheretoprint”optionon the Voting page.

(xvi) IfDemataccountholderhasforgottenthesamepasswordthenentertheUserIDandtheimageverificationcodeandclickonForgotPassword&enterthedetailsaspromptedbythesystem.

(xvii) NoteforNon–IndividualShareholdersandCustodians.\

a. Non-Individualshareholders(i.e.otherthanIndividuals,HUF,NRIetc.)andCustodianarerequiredtologontowww.evotingindia.comandregisterthemselvesasCorporate.

b. A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to [email protected]

c. After receiving the login details a compliance user should be created using the admin login andpassword.Thecomplianceuserwouldbeabletolinktheaccount(s)forwhichtheywish to vote on.

d. The list of accounts should be mailed to [email protected] and on approval of the accounts they would be able to cast their vote.

e. AscannedcopyoftheBoardResolutionandPowerofAttorney(POA)whichtheyhaveissued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.

(xviii)Incaseyouhaveanyqueriesorissuesregardinge-voting,youmayrefertheFrequentlyAskedQuestions(“FAQs”)ande-votingmanualavailableatwww.evotingindia.com,underhelpsectionor write an email to [email protected].

B. Incaseofmembersreceivingthephysicalcopyofnoticeof24thAnnualGeneralMeeting(formembers whose e-mail ids are not registered with the Company/Depositories):

i. PleasefollowallthestepsfromS.No.(i)toS.No.(xvii)tocastvote

C. General Instructions:

i. The voting rights of Members shall be in proportion to the shares held by them in the paid up equitysharecapitaloftheCompanyason22ndSeptember,2016.

ii. Members can opt for only one mode of voting, i.e., either by physical poll or e-voting. In case Members cast their votes through both the modes, voting done by e-voting shall prevail and votes cast through physical poll will be treated as invalid.

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iii. Members who do not have access to e-voting facility have been additionally provided the facility through Ballot Form. They may send duly completed Ballot Form to the Scrutinizer, Mrs. N. VanithaattheRegisteredOfficeoftheCompanysoastoreachonorbeforetheconclusionofthe24th Annual General Meeting or can carry the same to the AGM and deposit in the Ballot Box duringtheMeeting.Membershavetheoptiontoinfo@nylofils.comrequestforphysicalcopyofBallot Form by sending an e-mail to by mentioning their Folio No. / DP ID and Client ID.

iv. The facility for voting through polling paper shall also be made available at the meeting and the members attending the meeting who have not already cast their vote by e-voting shall be able to exercise their right at the meeting.

v. The member who cast their vote by e-voting prior to the meeting may also attend the meeting, but shall not be entitled to cast their vote again.

vi. The Scrutinizer, after scrutinizing the votes cast at the meeting through poll and through e-voting will,notlaterthanthreedaysofconclusionoftheMeeting,makeaconsolidatedscrutinizer’sreport and submit the same to the Chairman. The results declared along with the consolidated scrutinizer’sreportshallbeplacedonthewebsiteoftheCompanyhttp://www.nylofils.com/and on the website of www.cdslindia.com. The results shall simultaneously be communicated to the Stock Exchanges.

vii. The result of the voting on the Resolutions at the Meeting will be announced by the Chairman or any other person authorized by him within three days of the AGM

EXPLANATORY STATEMENT(PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013)

Item No.4:

The Resolution seeks approval of the members in terms of section 196 and other applicable provisions ofcompaniesact,2013(includinganystatutorymodificationsorreenactment(s),forthetimebeinginforce) for the appointment of Mrs. Anita Sakuru as Managing Director of the company w.e.f from 28th December, 2015.

The terms and conditions of appointment are as follows:

1. Mrs. Anita Sakuru will perform such duties as shall from time to time be entrusted to him by the Board of Directors of subject to superintendence ,guidance and control of the Board of Directors

2. Salary Payable: Rs.9, 00,000/ per annum.

3. Reimbursement of Expense: The Managing Director shall be entitled for reimbursement of payments madeforofficialpurpose/forenhancementofCompany’sbusinessandsuchreimbursementshallnot form part of remuneration for the purpose of ceilings, wherever is applicable.

Other details of Mrs. Anita Sakuru are provided at Annexure-A of this notice:

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The statement containing informationas requiredunderSection II ofPart II of ScheduleVof theCompanies Act, 2013, to the extent applicable, is given here under:

A. General Information:

1) NatureofIndustry-TheCompanyisengagedinthebusinessoftradingofMonofilamentYarn,Fish Nets, Fish Crates, Fish Net Cords, Ropes etc

2) DateofCommencementofCommercialProduction–13thJanuary,1992.

3) In case of new Companies, expected date of commencement of activities as per project approved byfinancialinstitutionsappearingintheprospectus–N.A

4) FinancialPerformancebasedongivenindicators–theoperatingrevenueoftheCompanyfortheyear2015-16isNilagainstNilfortheyear2015-16.Thenetprofitfortheyear2015-16isRs.3.53lacs against Rs. 2.84 lacs in the year 2015-16.

5) ForeignInvestmentsorCollaborators,ifany-NIL

B. Information about the appointee:

(1) Background details-

Mrs.AnitaSakuruisapostgraduate(M.ScHons)fromtheprestigiousBITS,Pilani.Shehassecured an MBA from Kellogg School of Management, Chicago, USA. Ms.Anitha has 23 years of Information technology experience globally. After graduating in 1991, she has started working as a IT professional in India and moved to U.S.A in 1994 after executing a couple of projects in Singapore and Thailand. Mrs. Anita is a proven technologist with a sharp noseforbusinessandentrepreneurship.BeforejoiningKenexa’sexecutivemanagementteam,heco-foundedPragma,Inc.,acompanyacquiredbyKenexain1996

Mrs. Anita served as an Executive Vice president of Kenexa Corporation, USA in Boston, MAandleadtheTechnologySolutionsGroup,themostprofitable&growthdivisionofthe company.

HercontributionsincludetransformingKenexafromaheadhuntingcompanyin1996toatechnologyleaderinHRspaceby2003.Shewaspartoftheteamthatraisedfirstroundof venture capital funding for the Company in 1999/2000.

Sheistheco-founderofEkhamMobileTechnologiesPvt.Ltdandiscurrentlyoneoftheboard members acting as CFO/COO and handles marketing, operation, new markets and finance.

Mrs.Anita’sexperienceandstrengthsinherinitialyearsofcareerarefromoperationsandtechnology. After years of experience, she has focused herself into strategy. She is on the boardof5companiesinIndiaandalsomanagesanon-profitcancerfoundationforChildren.Sheisalsoafrequentspeakeratvariousconferences.

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(2) Past remuneration – NIL

(3) Recognition or awards –

Shehaswonseveralawardswiththecompanyfrom“MostGrowthTeam”,“MostprofitableTeam”, and “Best leader”to“Most Valuable Player award.

(4) Job profile and his suitability –

Mrs.AnitaSakuruisapostgraduate(M.ScHons)fromtheprestigiousBITS,Pilani.Shehassecured an MBA from Kellogg School of Management, Chicago, USA. She is the Managing Director of the Company. Mrs. Anita Sakuru looks after the overall operations of the Company.Hehasenrichedexperienceof23Informationtechnologyexperienceglobally.She has knowledge of latest technology and advancement in manufacturing operations as well as a great vision for future of textile industry.

She is well suited as he is not only experienced but he is also well versed of entire operations of theCompany.The challengingbusiness environment requires reviewofoperations,monitoring and decision making on day-to-day basis besides strategic guidance and advice on ongoing basis for modernization, technological up-gradation and expansion/diversificationactivities inwhich theCompanywouldbe immenselybenefitedbyhismatured and timely advice.

(5) Remuneration proposed –

PleaserefertodetailsgiveninAnnexureIItotheDirector’sreport.

(6) Comparative remuneration profile with respect to industry, size of the Company, profile of the position and person –

TakingintoconsiderationthesizeoftheCompany,theprofileofMrs. Anita, Managing Director of the Company, the responsibilities shouldered by her and the industry benchmarks, the remuneration proposed to be paid is commensurate with the remuneration packages paid to similar senior level incumbents, in other companies.

(7) Pecuniary relationship directly or indirectly with the company, or Relationship with the managerial personnel, if any –

in addition to the entitlements of remuneration as set out above for his services as Managing Director of the Company Mrs. AnitaSakuruisrelatedtotheWholetimedirector(KMP)the Company.

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C. Other information:

(1) Reasons of loss or inadequate profits-There is none of the activities carried out by the company during the year 2015-16.Therefore there is no Revenue from operations to the company there is only expenditure to Company.

(2) Steps taken or proposed to be taken for improvement –

i. Optimal utilization of the resources available with the Company, by using technologically advanced machines to achieve optimum production mix.

ii. Aggressive Marketing to capture sizable shares in the business of trading of MonofilamentYarn,FishNets,FishCrates,FishNetCords,Ropesetc.TheCompanyisplanning to expand its presence in those domains where small and mid size companies areoperatingbutcannotprovidesuperiorqualityproductsandthusitwillhelptheCompany to increase its order book size and in turn help the Company to achieve optimum utilization of its installed capacity as well as optimum product mix.

iii. NewproductdevelopmenttocaptureuntappedareasofMonofilamentYarn,FishNets, Fish Crates, Fish Net Cords, Ropes etc. The Company is working on enhancing itsR&Dactivity,whereinthemainthrustwillbedevelopingnewproductsandwhere by the existing infrastructure of the Company can be utilized to its optimum level without having to make new investments.

iv. Concentrating on the Export Market. The Company is actively touching base with new clients in international market, whereby the untapped territories can be explored leading to increase in overall performance of the Company.

3. Expected increase in productivity and profits in measurable terms –

WiththeabovementionedstepstakenbytheCompany,theCompanywillbeabletoimproveitssalesandprofit.IncreasedproductioncapacityisexpectedtoincreaseturnoveroftheCompany.

Item No. 5

The Resolution seeks approval of the members in terms of section 196 and other applicable provisions ofcompaniesact,2013(includinganystatutorymodificationsorreenactment(s),forthetimebeinginforce)fortheappointmentofMr.RaghuveerSakuruasWholetimeDirectorofthecompanyw.e.ffrom28th December, 2015.

The terms and conditions of appointment are as follows:

1. Mr. Raghuveer Sakuru will perform such duties as shall from time to time be entrusted to him by the Board of Directors of subject to superintendence ,guidance and control of the Board of Directors

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2. Salary Payable: Rs.9, 00,000/ per annum.

3. ReimbursementofExpense:TheWholetimeDirectorshallbeentitledforreimbursementof paymentsmadeforofficialpurpose/forenhancementofCompany’sbusinessandsuch reimbursement shall not form part of remuneration for the purpose of ceilings, wherever is applicable.

Other details of Mr. Raghuveer Sakuru are provided at Annexure-A of this notice:

ThestatementcontaininginformationasrequiredunderSectionIIofPartIIofScheduleVof the Companies Act, 2013, to the extent applicable, is given here under:

A. General Information:

1. Nature of Industry - The Company is engaged in the businessoftradingofMonofilamentYarn,Fish Nets, Fish Crates, Fish Net Cords, Ropes etc

2. DateofCommencementofCommercialProduction–13thJanuary,1992.

3. In case of new Companies, expected date of commencement of activities as per project approved byfinancialinstitutionsappearingintheprospectus–N.A

4. FinancialPerformancebasedongivenindicators–theoperatingrevenueoftheCompanyfortheyear 2015-16 is Nil against Nil for the year 2015-16. The net loss for the year 2015-16 is Rs. 3.53 lacs against Rs. 2.84 lacs in the year 2015-16.

5. ForeignInvestmentsorCollaborators,ifany-NIL

B. Information about the appointee:

(1) Backgrounddetails–

Mr.RaghuveerSakuruisanEngineeringGraduatefromtheJawaharlalNehruTechnologicalUniversity,Hyderabad.HeattendedgraduateschoolinMechanicalEngineeringandComputerScienceintheUSand came back to India in early 2003, after 14 years, to start the Indian operations for Kenexa, Inc. USA.

Hehas27yearsofbusinessandITexperienceheisaprovenentrepreneurwithasharpnoseforbusinessandentrepreneurship.Before joiningKenexa’sexecutivemanagementteam,heco-foundedPragma,Inc.,acompanyacquiredbyKenexain1995

Raghuveer’s expertise stems fromhis vast experience spanning across business consulting andManagement.HehasbeeninvolvedwithKellogg’s,SunMicrosystems,FairIsaac,ComputerTaskGroup(CTG)andKenexaoverthepast14yearsandhisworkfocusesmainlyonTechnologyServices.

Hiscaliberasatechnicalapplications‘guru’wasrecognizedandisreflectedinhisphenomenalgrowth

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atKenexa.HehasmovedfromPrincipalConsultanttoPartnertoHeadofConsultingDeliveryTeamtoHeadofSales/Delivery-allwithinaspanofjustfouryears.HewasalsoinstrumentalinbuildingtheERPpracticeatKenexaandhasmovedfromZeroto10millionfrom1996thru2001.HelastservedasaManagingDirectorofKenexaTechnologiesPvt.Ltd,India,a100%subsidiaryofKenexaInc.USA.KenexaInc.,USAwasacquiredbyIBMin2012.

Mr.Raghuveerisoneoftheco-foundersofEkhamMobileTechnologiesPvt.LtdandiscurrentlyoneoftheboardofdirectorsservingasaManagingDirectorofthecompany.Heisresponsibleforthegrowthof the company.

(2) Past remuneration – NIL(3) Recognition or awards – NIL(4) Job profile and his suitability –

Mr.Raghuveer, 49,holds abachelorsdegree inEngineering.He is theWhole timeDirectorof theCompany.Mr.RaghuveerlooksaftertheoveralloperationsoftheCompany.Hehasenrichedexperienceof27yearsinbusinessandITexperience.Hehasknowledgeoflatesttechnologyandadvancementinmanufacturing operations as well as a great vision for future of textile industry.

HeiswellsuitedasheisnotonlyexperiencedbutheisalsowellversedofentireoperationsoftheCompany.Thechallengingbusinessenvironmentrequiresreviewofoperations,monitoringanddecisionmaking on day-to-day basis besides strategic guidance and advice on ongoing basis for modernization, technologicalup-gradationandexpansion/diversificationactivitiesinwhichtheCompanywouldbeimmenselybenefitedbyhismaturedandtimelyadvice

(5) Remuneration proposed -

PleaserefertodetailsgiveninAnnexureIItotheDirector’sreport.

(6) Comparative remuneration profile with respect to industry, size of the Company, profile of the position and person

TakingintoconsiderationthesizeoftheCompany,theprofileofMr.Raghuveer,WholetimeDirectorofthe Company, the responsibilities shouldered by him and the industry benchmarks, the remuneration proposed to be paid is commensurate with the remuneration packages paid to similar senior level incumbents, in other companies.

(7) Pecuniary relationship directly or indirectly with the company, or Relationship with the managerial personnel, if any –

In addition to the entitlements of remuneration as set out above for his services as Managing Director of theCompanyMr.RaghuveerSakuruisrelatedtothemanagingdirector(KMP)theCompany.

17


C. Other information:

(1) Reasonsoflossorinadequateprofits-Thereisnoneoftheactivitiescarriedoutbythecompanyduring the year 2015-16.Therefore there is no Revenue from operations to the company there is only expenditure to Company.

(2) Steps taken or proposed to be taken for improvement –

i) Optimal utilization of the resources available with the Company, by using technologically advanced machines to achieve optimum production mix.

ii) AggressiveMarketingtocapturesizablesharesinthebusinessoftradingofMonofilamentYarn,Fish Nets, Fish Crates, Fish Net Cords, Ropes etc. The Company is planning to expand its presence in those domains where small and mid size companies are operating but cannot provide superior qualityproductsandthusitwillhelptheCompanytoincreaseitsorderbooksizeandinturnhelpthe Company to achieve optimum utilization of its installed capacity as well as optimum product mix.

iii) NewproductdevelopmenttocaptureuntappedareasofMonofilamentYarn,FishNets,FishCrates,FishNetCords,Ropesetc.TheCompanyisworkingonenhancingitsR&Dactivity,whereinthe main thrust will be developing new products and where by the existing infrastructure of the Company can be utilized to its optimum level without having to make new investments.

iv) Concentrating on the Export Market. The Company is actively touching base with new clients in international market, whereby the untapped territories can be explored leading to increase in overall performance of the Company.

4. Expected increase in productivity and profits in measurable terms –

WiththeabovementionedstepstakenbytheCompany,theCompanywillbeabletoimproveitssalesandprofit.IncreasedproductioncapacityisexpectedtoincreaseturnoveroftheCompany.

Details of Directors as on Mach 31, 2016 seeking appointment/ re-appointment at the Annual General Meetingscheduledtobeheldon30thSeptember,2016(PursuanttoRegulation36(3)ofSEBI(LODR)Regulations, 2015)

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A Name AnitaSakuru RaghuveerSakuru PraveenReddy SudiVijayaLashmi

B Brief Resume

i) Age 46 49 50 32

ii) Qualification 1.postgraduate B.Tech 1.BSME Graduation (M.ScHons), 2.MSME 2 .MBA iii) Experienceinspecific Hehas23yearsof Hehas27yearsof Hehas21yearsof Havingaexperience

functionalarea Experienceinthe experienceinthe experienceinthe inthefieldof fieldofInformation Information Information Accounts. technology technology. technology.

iv) Date of appointment on 28/12/2015 28/12/2015 28/12/2015 28/12/2015 the Board of the Company

C Namesofothercompaniesin Nil Nil Nil S.S.OrganicsLimited which directorship held

D Name(s)ofthecompaniesin Nil Nil Nil Nil which committee Membership(s)held

E. No. of Shares of Rs. 10/- each 1159827 1159128 Nil Nil held by the Director

F RelationshipbetweenDirectors Sheisthespouseof Heisthehusband Heisnotrelatedto Sheisnotrelatedto interse[aspersection2(77)ofthe RaghuveerSakuru ofAnitaSakuru any other director any other director CompaniesAct,2013,readwith (WholetimeDirector) (ManagingDirector) Rule 4 of the Companies (Specificationofdefinitions details) Rules, 2014]

By Order of the Board ForAARVINFRATELLIMITED

Date: 12th August 2016 Sd/-Place:Hyderabad. AnitaSakuru Managing Director (DINNo.:00475947)

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DIRECTORS’ REPORT

To the Shareholders,

YourDirectorshavepleasureinpresentingthe24thAnnualReportofAarvInfratelLimited(theCompany)togetherwiththeAuditedaccountsforthefinancialyearended31stMarch2016.

FINANCIAL RESULTS:

Duringtheyearunderreview,yourCompanyhasrecordedagrosstotalincomeisNILfortheyearended 31.03.2016

OPERATIONS:;

Duringthefinancialyear2015-16,yourCompanyrevenuefromtheoperationsisNIL.

DIVIDEND:

The Board of directors does not recommend any dividend for the year ended 31st March 2016.

STATUTORY AUDITORS:

The Shareholders in their meeting held on 30th September, 2015 approved the appointment of. M/s. Nekkanti Srinivasu&Co,CharteredAccountants, (RegistrationNo.0088001S),Hyderabad, as theStatutoryAuditorsoftheCompanytoholdofficetilltheconclusionof28thAnnualGeneralMeetingsubject to ratificationof shareholders in everyAnnualGeneralMeeting.Accordingly, a resolutionseekingMembers’ratificationonappointmentofM/s.NekkantiSrinivasu&Co,CharteredAccountants,Hyderabad,astheStatutoryAuditorsoftheCompanyforthefinancialyear2016-17.

SECRETARIAL AUDITOR:

M/s.P.S.Rao&Associates,PracticingCompanySecretaries,wasappointedtoconducttheSecretarialAuditoftheCompanyforthefinancialyear2015-16,asrequiredunderSection204oftheCompaniesAct, 2013 and Rules there-under. The secretarial audit report for FY 2015-16, forms part of the Annual ReportasAnnexureItotheBoard’sreport.TheBoardhasappointedM/s.P.S.Rao&Associates,PracticingCompanySecretaries,assecretarialauditorsoftheCompanyforthefinancialyear2015-16.

Replies to Qualifications made by Secretarial Auditors:

Qualification No.1:CompanyhasnotappointedtheWholeTimeCompanySecretaryoftheCompanyaspertheprovisionsofSection203oftheCompaniesAct,2013andRule8ofCompanies(Appointmentand Remuneration of Managerial Personnel) Rules, 2014 for the Financial Year 2015-16.

Reply: TheBoardofdirectorshadinitiatedtoappointWholeTimeCompanySecretaryoftheCompanyandthesameisstillinprocess,Oncewefindthedesiredcandidate,wewillcompletetheformalitiesfor the appointment of the same.

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Qualification No.2: CompanyhasnotappointedChiefFinancialOfficeroftheCompanyaspertheprovisionsofSection203of theCompaniesAct, 2013andRule8ofCompanies (AppointmentandRemuneration of Managerial Personnel) Rules, 2014 for the Financial Year 2015-16.

Reply: TheBoardofdirectorshadinitiatedtoappointChiefFinancialOfficeroftheCompanyoftheCompanyandthesameisstill inprocess,Oncewefindthesuitableprofessionalcandidate,wewillcomplete the formalities for the appointment of the same

TAKE OVER:

Duringyear2015-16Mr.RaghuveerSakuru(‘Acquirer1’)andMrs.AnitaSakuru(‘Acquirer2’)(hereinaftercollectivelyreferredtoas‘Acquirers’)pursuanttoregulation18(7)oftheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011,asamended[“SEBI(SAST)Regulations”],inrespectoftheOpenOffertoacquire14,26,300fullypaid-upEquitySharesof`10eachofNylofilsIndiaLimited(‘NIL’/‘TargetCompany’)representing26%oftheShareCapitaland28.31%of the Voting Capital of the Target Company.

Asthecowitnessedasopenofferthereisachangeinthemanagementofthecompany.

EXTRACT OF ANNUAL RETURN:

The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as “Annexure II” to this report.

NUMBER OF MEETINGS OF THE BOARD :

1. 30 May 20152. 12 August 20153. 14 November 20154. 28 December 20155. 12 February 2016

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

TheparticularsasprescribedunderRule8(3)oftheCompanies(Accounts)Rules,2014,aresetoutinan “Annexure-III” to this Report.

DIRECTORS:

In compliance with the provisions of Companies Act, 2013, the appointments of Mr. Praveen Reddy Cheruku,andMrs.SudiVijayaLakshmiasIndependentDirectorsforatermoffiveyearsareplacedbefore the Members in the forthcoming general meeting for their approval.

During the year under review, Mr. Vetcha Venkateswara Rao and Mrs. Vetcha Kali Kumari Mr. Singmasetty KishoreresignedfromtheDirectorshipoftheCompanywitheffectfromDecember28,2015.TheBoardplaces on record their appreciation and gratitude and gratitude for their guidance and contribution during their association with the Company.

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Pursuant to the provisions of Section 152 of the Companies Act, 2013, Mrs. Anita Sakuru, Director of the Company,isliabletoretirebyrotationandbeingeligible,offersherselfforre-appointment.

Further, Mrs. Anita Sakuru has been appointed as Managing Director of the Company upon the approval ofthemembersofthecompanyattheensuringannualgeneralmeetingforaperiodoffiveyearsw.e.fDecember 28, 2015.

Further,Mr.RaghuveerSakuruhasbeenappointedasWholetimeDirectoroftheCompanyupontheapprovalofthemembersofthecompanyattheensuringannualgeneralmeetingforaperiodoffiveyears w.e.f December 28, 2015.

EveryIndependentDirector,atthefirstmeetingoftheBoardinwhichheparticipatesasaDirectorandthereafteratthefirstmeetingoftheBoardineveryfinancialyear,givesadeclarationthathemeetsthecriteria of independence as provided under the Companies Act, 2013.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS: N.A.

RELATED PARTY TRANSACTIONS:

During the year, the Company had not entered into any Contract/Arrangement/Transactions with related parties which would be considered material in accordance with the policy of the Company on materialityofrelatedpartytransactions.Hence,thedisclosureunderFormAOC-2isnotapplicable.TheCompany has developed a Policy on Related Party Transactions in accordance with provisions of all applicablelawsandClause49oftheListingAgreementforthepurposeofidentificationandmonitoringof such transactions. FIXED DEPOSITS:

YourCompanyhasnotacceptedanyfixeddepositsandassuchnoprincipalorinterestwasoutstandingas on the date of the Balance sheet.

DISCLOSURE AS PER SEXUAL HARRASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

The Company has zero tolerance for sexual harassment at workplace and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of SexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013andtherules framed there under.

CORPORATE SOCIAL RESPONSIBILITY (CSR):

Companyhasgenerallytakencorporatesocialresponsibilityinitiatives.However,thepresentfinancialposition of the company does not mandate the implementation of corporate social responsibility activities pursuant to the provisions of Section 135 and Schedule VII of the Companies Act, 2013. The company will constitute CSR Committee, develop CSR policy and implement the CSR initiatives whenever it is applicable to the Company.

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VIGIL MECHANISM / WHISTLE BLOWER POLICY:

TheCompanyhasaWhistleBlowerPolicyframedtodealwithinstanceoffraudandmismanagement,if any in the Group and also posted on the website of the Company.

RISK MANAGEMENT:

The Risk Management is overseen by the Audit Committee of the Company on a continuous basis. TheCommitteeoverseesCompany’sprocessandpoliciesfordeterminingrisktoleranceandreviewmanagement’smeasurementandcomparisonofoverallrisktolerancetoestablishedlevels.Majorrisksidentifiedbythebusinessesandfunctionsaresystematicallyaddressedthroughmitigatingactionsona continuous basis. For details, please refer to the Management Discussion and Analysis report which form part of the Board Report.

DIRECTORS’ RESPONSIBILITY STATEMENT:

PursuanttotherequirementofSection134(5)oftheAct,andbasedontherepresentationsreceivedfromthemanagement,thedirectorsherebyconfirmthat:

i. inthepreparationoftheannualaccountsforthefinancialyear2015-16,theapplicableaccountingstandards have been followed and there are no material departures;

ii. They 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 affairsoftheCompanyattheendofthefinancialyearandoftheprofitoftheCompanyforthefinancialyear;

iii. Theyhave takenproperandsufficient care to thebestof theirknowledgeandability for themaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheAct.TheyconfirmthatthereareadequatesystemsandcontrolsforsafeguardingtheassetsoftheCompanyand for preventing and detecting fraud and other irregularities;

iv. They have prepared the annual accounts on a going concern basis;

v. theyhavelaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancialcontrolsareadequateandoperatingproperly;and

vi. They have devised proper systems to ensure compliance with the provisions of all applicable laws andthatsuchsystemswereadequateandoperatingeffectively.

BOARD EVALUATION:

The performance evaluation of the Board, its Committees and individual directors was conducted and thesamewasbasedonquestionnaireandfeedback fromall theDirectorson theBoardasawhole,Committees and self-evaluation.

Directors, who were designated, held separate discussions with each of the Directors of the Company andobtainedtheirfeedbackonoverallBoardeffectivenessaswellaseachoftheotherDirectors

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Aseparatemeetingoftheindependentdirectors(“AnnualIDmeeting”)wasconvened,whichreviewedtheperformanceoftheBoard(asawhole),thenon-independentdirectorsandtheChairman.PosttheAnnual ID meeting, the collective feedback of each of the Independent Directors was discussed by theChairmanoftheNRCwiththeBoard’sChairmancoveringperformanceoftheBoardasawholeperformance of the non-independent directors and performance of the Board Chairman.Someofthekeycriteriaforperformanceevaluationareasfollows–

Performance evaluation of Directors:

• AttendanceatBoardorCommitteemeetings.• ContributionatBoardorCommitteemeetings.• Guidance/SupporttomanagementoutsideBoardorCommitteemeetings.

Performance evaluation of Board and Committees:

• Degreeoffulfillmentofkeyresponsibilities.• Boardstructureandcomposition.• EstablishmentanddelineationofresponsibilitiestoCommittees.• EffectivenessofBoardprocesses,Informationandfunctioning.• Boardcultureanddynamics.• QualityofrelationshipbetweenBoardandManagement.• EfficiencyofCommunicationwithexternalstakeholders.

MANAGEMENT DISCUSSION & ANALYSIS:

AreportonManagementDiscussion&Analysisisherewithannexedas‘Annexure IV’ to this report.

CORPORATE GOVERNANCE: N.A.

CompanyhavingpaidupequitysharecapitalofRs.5,03,74,000whichisnotexceedingRs.10croreandNetworthofRs.(30,74,000)whichisnotexceedingRs.25crore,asonthelastdayofthepreviousfinancialyear2015-2016.HencetheprovisionsofRegulations17,18,19,20,21,22,23,24,25,26,27andclauses(b)to(i)ofsub-regulation2ofRegulation46andparaC,D&EofScheduleVoftheSecuritiesExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015,arenotapplicable to the Company.

PARTICULARS OF EMPLOYEES:

pursuanttoSection197(12)oftheCompaniesAct,2013readwithRule5(2)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014formingpartoftheDirectors’Reportfortheyear ended March 31, 2016, there is no employee in the Company who is drawing the remuneration worth Rs. 5 lacs per monthorRs.60lacsperannumduringthefinancialyear.

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HUMAN RESOURCES:

YourCompanyconsidersitsHumanResourcesasthekeytoachieveitsobjectives.Keepingthisinview,yourCompanytakesutmostcaretoattractandretainqualityemployees.Theemployeesaresufficientlyempowered and such work environment propels them to achieve higher levels of performance. The unflinching commitmentof the employees is thedriving forcebehind theCompany’svision.YourCompany appreciates the spirit of its dedicated employees.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

TherearenosignificantmaterialorderspassedbytheRegulators/Courtswhichwouldimpactthegoing concern status of the Company and its future operations.

PARTICULARS OF EMPLOYEES:

Theinformationrequiredundersection197oftheActreadwithRule5(1)oftheCompanies(Appointmentand Remuneration of Managerial Personnel) Rules, 2014 are given below:

a. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the Financial Year:

b. Thepercentageincreaseinremunerationofeachdirector,ChiefExecutiveOfficer,ChiefFinancialOfficer,CompanySecretaryintheFinancialYear:N.A.

c. The Percentage increase in the median remuneration of employees in the Financial Year: N.A.

d. The number of permanent employees on the rolls of Company: Other than Managing Director andWholeTimeDirector,nopermanentEmployeesworkingintheCompanyandCompanydoesdoing business on contractual basis.

e. Average percentile increase already made in the salaries of employees other than the managerial personnelinthelastfinancialyearanditscomparisonwiththepercentileincreaseinthemanagerialremunerationandjustificationthereofandpointoutifthereareanyexceptionalcircumstancesfor increase in the managerial remuneration: N.A.

f The Key parameters for any variable component of remuneration availed by the directors: N.A.

g. TheCompany affirms remuneration toDirectors andKeyManagerial personnel asper theremuneration policy of the Company.

Name of the Director/

Key Managerial personnel

Anita Sakuru 900000 -- --

Raghuveer Sakuru 900000 -- --

Remuneration of Director KMP for thefinancialyear

2015-16

percentage increase in

Remuneration inthefinancialyear 2015-16

Ratio of the remunerationto the median remuneration

of the employees

25


26


ACKNOWLEDGEMENTS:

Your Directors wish to express their gratitude to the central and state government, investors, analysts, financialinstitutions,banks,businessassociatesandcustomers,themedicalprofession,distributorsandsuppliers for their whole-hearted support. Your directors commend all the employees of your company fortheircontinueddedication,significantcontributions,hardworkandcommitment.

For and on behalf of the board

Date: 12.08.2016 Sd/-Place:Hyderabad AnitaSakuru Chairperson

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Annexure IMR - 3

SECRETARIAL AUDIT REPORTFor the Financial year ended 31st March, 2016

(PursuanttoSection204(1)oftheCompaniesAct,2013andRuleNo.9oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules2014

To,The Members,AarvInfratelLimited,46-11-29/1, Danavaipeta,Opp:RajahmundryHospital,Rajahmundry-533103Andhra Pradesh

Wehave conducted theSecretarialAuditof the compliancesof applicable statutoryprovisionsandthe adherence to good corporate practices by Aarv infratel Limited(hereinaftercalledthecompany).Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

BasedonourverificationoftheAarv infratel Limited, books, papers, minute books, forms and returns filedandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,theCompanyhasduringtheauditperiodcoveringthefinancialyearendedon 31st March, 2016 complied with the statutory provisions listed hereunder and also that the Company has proper Board process and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter

Wehaveexaminedthebooks,papers,minutebooks,formsandreturnfieldandotherrecordsmaintainedbyAarvinfratelLimitedfortheFinancialYearendedon31stMarch,2016accordingtotheprovisionsof:

i. The CompaniesAct,2013(theAct)andtherulesmadethereunder;

ii. TheSecuritiesContract(Regulation)Act,1956(SCRA)andtherulesmadethereunder;

iii. TheDepositoriesAct,1996andRegulationsandByeLawsframedthereunder;

iv. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extentofForeignDirect Investment,OverseasDirect Investment andExternalCommercial (Company has not raised External Commercial Borrowings)

v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board ofIndiaAct,1992(SEBIAct)

a. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations, 2011;

b. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015.

28


c. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009(NotapplicabletotheCompanyduringtheauditperiod)

d. d. TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014(NotApplicabletotheCompanyduringtheauditperiod)

e. TheSecuritiesandExchangeBoardofIndia(issueandListingofDebtSecurities)Regulations,2008;(NotApplicabletotheCompanyduringtheauditperiod)

f. TheSecuritiesandExchangeBoardof India (Registrars toan IssueandShareTransferAgents)Regulations, 1993 regarding theCompaniesAct anddealingwith client; (NotApplicable to the Company during the audit period)

g. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009(NotApplicabletotheCompanyduringtheauditperiod);and

h. TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998(Not applicable to the Company during the audit period);

i. TheSecuritiesandExchangeBoardofIndia(ListingobligationsandDisclosureRequirements)Regulations,2015

vi. OtherspecificApplicableLawstotheindustry:

a) The Indian Fisheries Act, 1897

Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

a. Secretarial Standards SS-1 and SS-2 with respect to meetings of the board of directors and generalmeetingsrespectivelyissuedandnotifiedbyTheInstituteofCompanySecretariesofIndiawhichcameintoforcew.e.f.1stJuly,2015undertheprovisionsofsection118(10)of the Act.

b. SecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(Effectivefrom01.12.2015)andTheListingAgreementsenteredintobytheCompanywithBSELimited(sincerepealed).

During the period under review the company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards etc. mentioned above.

Wefurtherreportthat

• TheBoardofDirectorsof theCompany isdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectors and IndependentDirectors as perClause 49 of ListingAgreement entered with stock exchanges. The Changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

• AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotes on agenda were sent at least seven days in advance, and a system exists for seeking and

29


obtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningful participation at the meeting.

• Allthedecisionsattheboardmeetingsandcommitteemeetingshavebeencarriedoutunanimouslyas recorded in the minutes of the meetings of the Board of Directors or Committee of the Board, as the case may be.

The Following non compliances are found during the audit for the year of 2015-16 in respect of above paras.

1. TheCompanyhasnotappointedfollowingpersonsasKeyManagerialPerson(KMP)aspertheProvisions of Section 203 of the Companies Act, 2013.

A. ChiefFinancialOfficer(CFO)

B. Company Secretary.

Wefurtherreportthat

• Thereare adequate systemsandprocesses in theCompany commensuratewith the size andoperations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

• Therewereno such specific events/actions inpursuanceof the above referred laws, rules,regulationsetc.havingamajorbearingontheCompany’saffairs.

ForP.S.Rao&AssociatesPlace:HyderabadDate: 12/08/2016. Sd/- N. Vanitha M.No. 26859 C.P. No.10573

Note: This report is to be read with our letter of even date which is annexed as ‘Annexure B’ and forms an integral part of this report.

30


‘Annexure B’ToThe Members,AarvinfratelLimited46-11-29/1, Danavaipeta,Opp:RajahmundryHospital,Rajahmundry - 533103,Andhra Pradesh.

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.

2. WehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocesses and practices, we followed provide a reasonable basis for our opinion.

3. WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsof the company.

4. Whereeverrequired,wehaveobtainedtheManagementrepresentationaboutthecomplianceof laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standardsistheresponsibilityofmanagement.Ourexaminationwaslimitedtotheverificationofprocedures on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of theefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.

ForP.S.Rao&Associates Company SecretariesPlace:HyderabadDate: 12.08.2016 Sd/- N. Vanitha M.No. 26859 C.P. No.10573

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Annexure-IIFORM NO. MGT-9

EXTRACT OF ANNUAL RETURNAsonfinancialyearendedon31.03.2016

[PursuanttoSection92(3)oftheCompaniesAct,2013andrule12(1)oftheCompanies(Management&Administration) Rules, 2014.]

I. REGISTRATION & OTHER DETAILS:

1. CIN L05005AP1992PLC013697

2. Registration Date 13/01/1992

3. NameoftheCompany AARVINFRATELLIMITED

4. Category/Sub-categoryoftheCompany CompanyLimitedbyShares/ Indian Non-Government Company.

5. AddressoftheRegisteredoffice 46-11-29/1,Danavaipeta,Opp:Rajahmundry contactdetails Hospital,Rajahmundry-533103AndhraPradesh

6. Whetherlistedcompany Yes.ListedatBSELimited

7. Name,Address&contactdetailsofthe SystemSupportServices Registrar&TransferAgent,ifany. Opp:Galano209,ShivaiIndustrial, Estate, 89,Andheri Kurla Road, SakinakaAndheri East, Mumbai 400072.

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbe

stated) : Nil

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -

CompanyisnothavinganyHolding,SubsidiaryandAssociateCompanies.

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IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)A. Category-wise Share Holding

Category of No. of Shares held at the beginning No. of Shares held at the end of %Change of the year [As on 31-March-2015] year [As on 31-March-2016] during Demat Physical Total %ofTotal Demat Physical Total %ofTotal Shares Shares

A. Promoter(1) India a)Individual/HUF 1759771 299484 2059255 37.54 2153171 165784 2318955 42.27 4.73b) Central Govt 0 0 0 0 0 0 0 0 0c)StateGovt(s) 0 0 0 0 0 0 0 0 0d) Bodies Corp. 0 0 0 0 0 0 0 0 0e) Banks / FI 0 0 0 0 0 0 0 0 0f) Any other 0 0 0 0 0 0 0 0 0SubTotal(A)(1) 1759771 299484 2059255 37.54 2153171 165784 2318955 42.27 4.73(2)Foreign (a)Individuals(Non-ResidentIndividuals/Foreign Individuals) 0 0 0 0 0 0 0 0 0 Bodies Corporate 0 0 0 0 0 0 0 0 0(b)Institutions 0 0 0 0 0 0 0 0 0(c)QualifiedForeignInvestors 0 0 0 0 0 0 0 0 0Sub Total (A) (2) 0 0 0 0 0 0 0 0 0Total shareholding of Promoter and Promoter Group (A) = (A)(1)+(A)(2). 1759771 299484 2059255 37.54 2153171 165784 2318955 42.27 4.73B. Public Shareholding 1. Institutions 0 0 0 0 0 0 0 0 0a) Mutual Funds 0 0 0 0 0 0 0 0 0b) Banks / FI 0 0 0 0 0 0 0 0 0c) Central Govt 0 0 0 0 0 0 0 0 0d)StateGovt(s) 0 250000 250000 4.56 0 0 0 0 0e) Venture Capital Funds 0 0 0 0 0 0 0 0 0f) Insurance Companies 0 0 0 0 0 0 0 0 0g) FIIs 0 0 0 0 0 0 0 0 0 h) Foreign Venture Capital Funds 0 0 0 0 0 0 0 0 0i)Others(specify) 0 0 0 0 0 0 0 0 0Sub-total(B)(1):- 0 250000 250000 4.56 0 0 0 0 02. Non-Institutions a) Bodies Corp. 0 186500 230300 4.20 43800 296200 340000 6.20 2 i) Indian 0 0 0 0 0 0 0 0 0ii) Overseas 0 0 0 0 0 0 0 0 0b) Individuals 0 0 0 0 0 0 0 0 0i) Individual shareholders holding nominal share capital uptoRs. 1 lakh 4700 2496615 2501315 45.60 5700 2420615 2426315 0.01ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh 30800 413830 444630 8.11 30800 369430 400230 0c)Others(specify) 0 0 0 0 0 0 0 0 0i.Non Resident Indians 0 0 0 0 0 0 0 0 0ii.Directors 0 0 0 0 0 0 0 0 0iii.Clearing Members 0 0 0 0 0 0 0 0 0Sub-total (B)(2):- 34200 3141945 3176145 57.90 80300 3086245 3166545 57.73 0.17Total Public Shareholding (B)=(B)(1)+ (B)(2) 34200 3391945 3426145 62.46 80300 3086245 3166545 57.73 4.73C. Shares held by Custodian for GDRs & ADRs 0 0 0 0 0 0 0 0 0Grand Total (A+B+C) 1794071 3691429 5485500 100 2233471 3252029 5485500 100.00 0.00

Note. : The Company also had 8, 96,262 partly paid up shares.

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B. Shareholdings of Promoters:

SN Shareholder’s Shareholdingatthe Shareholdingatthe %changein Name beginning of the year end of the year shareholding 01.04.2015 31.03.2016 during the year No.of %oftotal %of Share Noof %oftotal %ofShares Shares Shares of Shares holder Shares Shares of the Pledges/ the Pledged/ name company encumbere company encumber d to total ed to total shares

1 KLPRASAD 33050 0.6 0.00 - - - - -0.62 KVRATNAMALA 122334 2.2 0.00 - - - - -2.23 VKALIKUMARI 200 0.0 0.00 - - - - -0.04 VVRAMALINGAYYA 500 0.0 0.00 - - - - -0.05 VETCHAKALI KUMARI 669619 12.2 0.00 - - - - -12.26 VETCHA LAKSHMANKUMAR 387700 7.0 0 - - - - -7.07 VETCHARAMA LATHA 143400 2.6 0.00 - - - - -2.68 VETCHA VENKATESWARARAO 702652 12.8 0.00 - - - - -12.89 Anita Sakuru - - - Anita Sakuru 1159827 21.14 0 21.1410 Raghuveer Sakuru - - - Raghuveer 1159128 21.13 0 21.13 Sakuru Total 2059255 37.5 0.00 Total 2318955 42.27 0 4.77

34


C. Change in Promoters’ Shareholding (please specify, if there is no change)

SN Particulars Shareholding at the Cumulative Shareholding beginning of the year End of the year

No.ofshares %oftotal No.of %oftotal shares of the shares shares of the company company

1 Anita Sakuru - - 1159827 21.14

2 Raghuveer Sakuru - - 1159128 21.13

3 KLPrasad 33050 0.6 - -

4 K V Ratnamala 122334 2.2 - -

5 V Kali Kumari 200 0.0 - -

6 V V Ramalingayya 500 0.0 - -

7 Vetcha Kali Kumari 669619 12.2 - -

8 VetchaLakshmanKumar 387700 7.0 - -

9 VetchaRamaLatha 143400 2.6 - -

10 Vetcha Venkateswara Rao 702452 12.8 - -

35


D) Shareholding Pattern of top ten Shareholders: (OtherthanDirectors,PromotersandHoldersofGDRsandADRs):

S. No. Top 10 Shareholders Shareholding at the beginning Cumulative Shareholding of the year 01.04.2015 End of the year 31.03.2016 No.ofshares %oftotal No.ofshares %oftotal shares of the shares of the company company1 AISHUFINANCELTD 139500 2.5 139500 2.52 RAJASRINIVASBOMMIDALA 108900 1.9 108900 1.93 Y ARUNA KUMARI 88530 1.6 88530 1.64 USHAKIRANFINANCELIMITED 43800 0.7 43800 0.75 KGMOHANTHY 32700 0.5 32700 0.56 BRAHMAJIA 30800 0.5 30800 0.57 TELANGANAINVESTMENTS &FINANCELTD 30000 0.5 30000 0.58 A V RAMANA 25500 0.4 25500 0.49 RAJASRINIVASB 24500 0.4 25000 0.410 NVENUGOPAL* 0 0 18500 0.311 ANDHARAPRADESHINDUSTRIAL CORPORATIONLTD# 250000 4.5 0 0

#CeasedtobeinthelistofTop10shareholdersasonMarch31,2016.Thesameisreflectedabovesincetheshareholderwas one of the Top 10 shareholders as on April 1, 2015

*NotinthelistofTop10shareholdersasonApril1,2015.Thesamehasbeenreflectedabovesincetheshareholderwasoneof the Top 10 shareholders as on March 31, 2016.

E) Shareholding of Directors and Key Managerial Personnel:

Sr. No. Name of the Shareholder Date Reason Shareholding Cumulative at the beginning Shareholding of the Year during the Year No.ofshares %oftotal No.ofshares %oftotal shares of the shares of the company company

1 V Kali Kumari N.A. N.A. 669819 12.21 0 02 Vetcha VenkateswaraRao N.A. N.A 702552 12.8 0 03 Anita Sakuru - - - - 1159827 21.144 Raghuveer Sakuru - - - - 1159128 21.13 Total N.A. N.A. 702552 12.8 2318955 42.27

36


V) INDEBTEDNESS -Indebtedness of the Company including interest outstanding/accrued but not due for payment.

SecuredLoans UnsecuredLoans Deposits Total excluding deposits IndebtednessIndebtednessatthebeginningofthefinancialyear i) Principal Amount 0 579671 0 579671ii) Interest due but not paid 0 0 0 0iii) Interest accrued but not due 0 0 0 0Total(i+ii+iii) 0 579671 0 579671ChangeinIndebtednessduringthefinancialyear * Addition 0 262000 0 262000* Reduction 0 0 0 0Net Change 0 262000 0 262000Indebtednessattheendofthefinancialyear i) Principal Amount 0 841671 0 841671ii) Interest due but not paid 0 0 0 0iii) Interest accrued but not due 0 0 0 0Total(i+ii+iii) 0 841671 0 841671

V. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-(i) Remuneration to Managing Director, Whole-time Directors and/or Manager: The Company has paid remuneration to the Managing Director Subject to maximum limit of Rs.9,

00,000/- per annum.

TheCompanyhaspaidremunerationtotheWhole-timeDirectorsSubjecttomaximumlimitofRs.9,00,000/- per annum.

(ii) Remuneration to other directors: The Company has not paid remuneration to the Directors

(iii) Remuneration to Key Managerial Personnel other than MD/Manager/WTD: The Company has not paid remuneration to the Key Managerial Personnel other than MD/ Manager/

WTD

VI. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: There were no penalties,punishmentorcompoundingofoffencesduringtheyearendedMarch31,2016.

37


Annexure: III

Conservation of energy, research and development, technology absorption, foreign exchange earnings and outgo

(ParticularspursuanttotheCompanies(Accounts)Rules,2014)

A. Conservation of Energy:

EnergyConservationmeasuretaken–“NIL”

Impactoftheclause(1)and(2)aboveforreductionofenergyconsumptionandconsequentimpactontheproductionofgoods-“NIL”

B. Technology Absorption:

1. Efforts,inbrief,madetowardstechnologyabsorption,adoptionandinnovation:Nil

2. Benefitsderivedasaresultoftheaboveefforts,Ex;productimprovement,costreduction,productdevelopment, import substitution etc. : Nil

3. Import of technology : Nil

C. Research and Development: 1.SpecificareasinwhichR&DcarriedoutbytheCompany :Nil 2.BenefitsderivedasaresultoftheaboveR&D :Nil 3. Future plan of action : Nil 4.ExpenditureonR&D a) Capital : Nil b) Recurring : Nil c) Total : Nil d)TotalExpenditureonR&Dasapercentageoftotalturnover :Nil

D. Foreign Exchange Earnings and out go. Particulars For F.Y. 2015-16

Earnings in Foreign Exchange 0.00 Less:ExpenditureinForeignExchange 0.00 Net Earnings in Foreign Exchange 0.00

38


Annexure IVMANAGEMENT DISCUSSION AND ANALYSIS

(FormingpartofDirectors’Report)

Indian Retail Industry Overview:

TheCompany is into trading of various types ofMonofilament yarn, fish-nets, fish crates, fish netcord,ropes,fishinghookswhichareusedinfisheryindustry,TheIndustrystructureconsistsofbothorganizedandunorganizedsectors.AndCompanyistryingtocapturetheLocalMarketwiththehelpofmarketingtechniques.

Opportunities & threats:

Asthefisheryindustryisoneofthegrowingindustry,therearelotsofopportunitiesforproductsusedbytheFisheryindustryi.efish-nets,fishcrates,fishnetcord,ropes,fishinghooks.Itappearstherearelot of challenges in reviving the business in view of negative Net worth, accumulated losses, inability to raisefundsetc.,Companyistryingtoovercomedifficultiesbyusingbettertechniques.

Outlook: Company is evaluating various opportunities and suitable business opportunities which improve the operations of the company.

Performance Review:

Discussion on Financial Performance with respect to Operational Performance:

1. Total Income: Nil

2. Share Capital:

The paid up share capital as on 31st March, 2016 is Rs. 5,03,73,688/-

3. Net Loss: TheCompany’soperatinglossRs.3,53,000duringtheyear.

4. Earnings Per Share (EPS): TheEarningPerSharefortheFinancialYear2015-16isRs.(0.07)pershare(FaceValue:Rs.10/-each).

Your directors are putting continuous efforts to increase the performance of theCompany and arehopeful that the performance in coming year will overcome from the present situation.

Human Resource:

Your company recognizes that the human resources are the most crucial factor for achieving sustained growthovertheyears.Themanagementconsidersit’shighlymotivatedandpassiondrivenworkforceasit’spartnerinthegrowthofthecompany.

39


INDEPENDENT AUDITOR’S REPORT

To The Members of AARV INFRATEL LIMITED(FormerlyKnownas‘NylofilsIndiaLimited)

Report on the Financial Statements

We have audited the accompanying financial statements AARV INFRATEL LIMITED (“theCompany”),whichcomprisetheBalanceSheetasat31stMarch,2016,theStatementofProfitandLoss,theCashFlowStatementfortheyearthenended,andasummaryofthesignificantaccountingpoliciesand other explanatory information.

Management’s Responsibility for the Financial Statements

TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialpositionandfinancialperformanceoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.Thisresponsibilityalso includesmaintenanceofadequateaccounting records inaccordancewith theprovisionsof theAct for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgive a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.We have taken into account the provisions of theAct, the accounting and auditing standards andmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRules made there under.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures inthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttothe

40


Company’spreparationof thefinancialstatements thatgivea trueandfairviewinorder todesignaudit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion onwhether theCompanyhas inplace an adequate internal financial controls systemoverfinancialreportingandtheoperatingeffectivenessofsuchcontrols.Anauditalsoincludesevaluatingthe appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthefinancialstatements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaidfinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgive a true and fair view in conformity with the accounting principles generally accepted in India,

a) InthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasatMarch31,2016;b) InthecaseoftheStatementofProfitandLoss,oftheLossfortheyearendedonthatdate;andc) InthecaseoftheCashFlowStatement,ofthecashflowsfortheyearendedonthatdate.

Report on Other Legal and Regulatory Requirements

AsrequiredbytheCompanies(Auditor’sReport)Order,2016,issuedbythedepartmentofcompanyaffairs,intermsofsection143(11)ofthecompaniesAct,2013,andonthebasisofourexaminationofthe books and records as we considered appropriate and according to the information and explanation giventous,wegiveintheAnnexureastatementonthemattersspecifiedinparagraph3&4oftheOrder, to the extent applicable.

As required by Section 143 (3) of the Act, we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of ourknowledge and belief were necessary for the purposes of our audit.

(b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofar as it appears from our examination of those books.

(c) TheBalanceSheet,theStatementofProfitandLoss,andtheCashFlowStatementdealtwithbythis Report are in agreement with the books of account.

(d) In our opinion, the aforesaid financial statements comply with the Applicable AccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules, 2014.

(e) Onthebasisofthewrittenrepresentationsreceivedfromthedirectorsason31stMarch,2016takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedason31stMarch,

41


2016frombeingappointedasadirectorintermsofSection164(2)oftheAct.

(f) Withrespect to theadequacyof the internalfinancialcontrolsoverfinancial reportingof thecompanyandtheoperatingeffectivenessofsuchcontrols,referourseparatereportinAnnexureB and

(g) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11of theCompanies (AuditandAuditors)Rules,2014, inouropinionand to thebestofourinformation and according to the explanations given to us:

i. TheCompanydoesnothave anypending litigationswhichwould impact itsfinancialposition.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii.TherewerenoamountswhichwererequiredtobetransferredtotheInvestorEducationandProtection Fund by the Company.

ForNekkantiSrinivasu&Co., Chartered Accountants Firm’sregistrationnumber:008801S

NEKKANTI SRINIVASU Partner Membership Number: 0209453 Place:HyderabadDate: 30.05.2016

42


Annexure to the Independent Auditor’s ReportAnnexurereferred to inparagraph1under theheadingof“ReportonOtherLegalandRegulatoryRequirements”ofourreportofevendate,wereportthat:

(i) InrespectofFixed Assets : (a) The company has maintained proper records showing full particulars, including

quantitativedetailsandsituationoffixedassets; (b) Thefixedassetshavebeenphysicallyverifiedbythemanagementatreasonableintervals;

weareinformedthatnomaterialdiscrepancieswerenoticedonsuchverification. (ii) Thecompanydoesnotholdanyinventory.Hence,paragraph3(ii)oftheorderisnotapplicable.

(iii) TheCompanyhasgrantedunsecuredloantoonepartycoveredintheregistermaintainedundersection 189 of companies act

(a) The Said loan is interest free and repayable on demand (b) Therearenooverdueamountmorethanrupeesonelakhstowardsprincipleandinterest.

(iv) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhascomplied with the provisions of section 185 and 186 of the act , with respect to the investments and loans made.

(v) AccordingtotheinformationandexplanationsgiventousthecompanyhadnotacceptedanyPublic deposits, within the meaning of sections 73 to 76 or any other relevant provisions of the CompaniesActandtherulesframedthereunder.Therefore,provisionsofclause(v)ofparagraph3 of the CARO 2015 are not applicable to the company

(vi) Thecentralgovernmenthasnotprescribedthemaintenanceofcostrecordsundersection148(1)of the companies Act 2013.

(vii) InrespectofStatutoryMatters: (a) According to the information and explanations given to us the company is regular

in depositing undisputed statutory dues including provident fund, employees’ stateinsurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and the following wereoutstanding statutorydues as at the lastdayof thefinancial yearconcerned are in arrears for a period of more than six months from the date they became payable.

Income tax payable : Rs. 1, 20,221/- Professional Tax : Rs. 22,723/- (b) Accordingtotheinformationandexplanationsgiventoustherewerenoduesofincome

tax , sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess that have not been deposited on account of any dispute.

43


(viii) The Company does not have any loans or borrowings from any financial institution, banks,governmentordebentureholdersduringtheyear.Accordingly,paragraph3(ix)oftheOrderisnot applicable.

(ix) TheCompanydidnotraiseanymoneybywayofinitialpublicoffer(includingdebtinstruments)andtermloansduringtheyear,accordinglyparagraph3(ix)oftheorderisnotapplicable..

(x) Accordingtotheinformationandexplanationsgiventous,nomaterialfraudbytheCompanyorontheCompanybyitsofficersoremployeeshasbeennoticedorreportedduringthecourseofour audit.

(xi) Accordingtotheinformationandexplanationsgivetousandbasedonourexaminationoftherecords of the Company, the Company has not paid / provided for managerial remuneration inaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofSection197readwithSchedule V to the Act.

(xii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyisnotaNidhicompany.Accordingly,paragraph3(xii)oftheOrderisnotapplicable.

(xiii) Accordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecords of the Company, transactions with the related parties are in compliance with Sections 177 and188oftheAct.Whereapplicableanddetailsofsuchtransactionshavebeendisclosedinthefinancialstatementsasrequiredbytheapplicableaccountingstandards.

(xiv) According to the informationandexplanationsgiven tousandbasedonourexaminationofthe records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

(xv) Accordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecords of the Company, the Company has not entered into non-cash transactions with directors orpersonsconnectedwithhim.Accordingly,paragraph3(xv)oftheOrderisnotapplicable.

(xvi) TheCompanyisnotrequiredtoberegisteredunderSection45-IAoftheReserveBankofIndiaAct 1934.


NEKKANTI SRINIVASU Partner Membership Number: 0209453Place:HyderabadDate: 30.05.2016

44


Annexure B to the Auditors’ ReportReportontheInternalFinancialControlsunderClause(i)ofsub-section3ofSection143ofthe

CompaniesAct,2013(‘theAct’)

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofAARV INFRATEL LIMITED (‘theCompany’)asof31March2016inconjunctionwithourauditofthefinancialstatementsoftheCompany for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

TheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringthe essential components of internal control stated in the Guidance Note on Audit of Internal Financial ControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’).These responsibilities include the design, implementation and maintenance of adequate internalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetotheCompany’spolicies,thesafeguardingofitsassets,thepreventionand detection of frauds and errors, the accuracy and completeness of the accounting records, and the timelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’ Responsibility

OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditof InternalFinancialControlsoverFinancialReporting (the ‘GuidanceNote’)and theStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedunderSection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and theGuidanceNote require thatwe complywith ethical requirements andplan andperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwereestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinall material respects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancial controls system over financial reporting and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining anunderstanding of internalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditors’ judgment, includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

45


Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to providereasonableassuranceregarding thereliabilityoffinancial reportingand thepreparationoffinancialstatements for external purposes in accordance with generally accepted accounting principles. A company’s internalfinancialcontroloverfinancial reporting includes thosepoliciesandproceduresthat (1)pertain to themaintenanceof records that, inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsoftheCompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the Management and directors of the Company; and (3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionoftheCompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, includingthe possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancial reportingandsuch internalfinancialcontrolsoverfinancial reportingwereoperatingeffectivelyasat31March2016,basedontheinternalcontroloverfinancialreportingcriteriaestablishedby the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.


NEKKANTI SRINIVASU Partner Membership Number: 0209453Place:HyderabadDate: 30.05.2016

46


EQUITY AND LIABILITIES Shareholder’sfunds (a)Sharecapital 3 5,03,73,688 5,03,73,688(b)Reservesandsurplus 4 (5,34,47,870) (5,30,94,870) Share application money pending allotment - - Non-current liabilities - - Current liabilities (a)Short-termborrowings 5 4,87,304 2,25,304(b)Tradepayables 6 35,70,745 35,70,745(c)Othercurrentliabilities 7 14,42,353 13,52,367(d)Short-termprovisions 8 2,48,294 2,48,294 TOTAL 26,74,514 26,75,528

ASSETS Non-current assets (a)Fixedassets (i)Tangibleassets 9 279 279(b)Non-currentinvestments 10 3,500 3,500(c)Long-termloansandadvances 11 11,99,456 11,99,456 Current assets (a)Tradereceivables 12 9,18,879 9,18,879(b)CashandBankBalances 13 (i)Cash&CashEquivalents 12,972 13,986(ii)OtherBankBalances 20,000 20,000(c)Short-termloansandadvances 14 5,02,753 5,02,753(d)Othercurrentassets 15 16,675 16,675 TOTAL 26,74,514 26,75,528

Particulars Note As At As At No. 31.03.2016 31.03.2015

BALANCE SHEET AS ON 31ST MARCH, 2016

Notes referred to above form an integral part of Balance sheet

Per our report of even date attached. For Nekkanti Srinivasu & Co Chartered Accountants FRN No. 008801S

NEKKANTI SRINIVASUPartner

M.No. 209453 Place:HyderabadDate : 30.05.2016

Amount in `

For and on behalf of the Board

Sd/- Sd/- Sakuru Anita Sakuru Raghuveer Director Director DIN : 00475947 DIN : 00475998

47


1 Revenue from operations (gross) - - Less:Exciseduty - - Revenuefromoperations(net) - -2 Other income - - 3 Total revenue (1+2) - - 4 Expenses (a)Purchasesofstock-in-trade - - (b)Depreciationandamortisationexpense 9 - 696 (c)Otherexpenses 16 3,53,000 2,82,993

Total expenses 3,53,000 2,83,689 5 Profit / (Loss) before exceptional and extraordinary items and tax (3 - 4) (3,53,000) (2,83,689)6 Exceptional items - - 7 Profit / (Loss) before extraordinary items and tax (5 + 6) (3,53,000) (2,83,689)8 Extraordinary items - - 9 Profit / (Loss) before tax (7 + 8) (3,53,000) (2,83,689)10 Tax expense: - - 11 Profit / (Loss) from continuing operations (9 +10) (3,53,000) (2,83,689)13 Profit / (Loss) from discontinuing operations (12.i + 12.ii + 12.iii) - - 14 Profit / (Loss) for the year (11 + 13) (3,53,000) (2,83,689)15 Earnings per share (of ` 10/- each): (a) Basic & Diluted 18 (0.05) (0.05) See accompanying notes 1-19 forming part of the financial statements

Significantaccountingpolicies

Particulars Note As at As at No 31.03.2016 31.03.2015

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2016 Amount in `

Notes referred to above form an integral part of Balance sheet

Per our report of even date attached. For Nekkanti Srinivasu & Co Chartered Accountants FRN No. 008801S

NEKKANTI SRINIVASUPartner

M.No. 209453 Place:HyderabadDate : 30.05.2016



48


A.CASHFLOWFROMOPERATINGACTIVITIES

1 NetProfit/(Loss)BeforetaxandExceptionalItems (3,53,000) (2,83,689) 2 Add/Less:Adjustmenttoreconcilenet profitbeforetaxtocashprovidedbyoperatingactivity

a) Depreciation and Amortization - 696 3 Add/Less:Changesincurrentassetandliabilities

a) Trade Receivables - - b) Short term Borrowings 2,62,000 - c) Provisions - 23,832 d) Other Payables 89,986 1,48,000 e) Trade Payables - 1,13,500

4 Net cash generated by operating activities before Exceptionalitems (1,014) 2,340

less: Exceptional Items - - NetcashflowfromOperatingactivities (1,014) 2,340

II Cash Flow from Investing Activities: Net cash generated by operating and investing activities - -

III Cash Flow from Financing Activities: a) Long term Loans and Advances - -

Net Increase/(Decrease) in Cash and Cash Equivalents

from operating, investing and financing activities (1,014) 2,340 Cash and Cash Equivalents at beginning of the year 33,986 31,647 Cash and Cash Equivalents at end of the year 32,972 33,986

Particulars 31.03.2016 31.03.2015 Amount Amount

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH,2016 Amount in `

Notes referred to above form an integral part of Balance sheet Per our report of even date attached. For Nekkanti Srinivasu & Co Chartered Accountants FRN No. 008801S

NEKKANTI SRINIVASUPartnerM.No. 209453 Place:HyderabadDate : 30.05.2016



49


Notes forming part of the financial statements

1 Corporate information

ThecompanyisinthebusinessoftradingofMonofilamentYarn,FishNets,FishCrates,FishNetCords, Ropes etc, the management in the process of reviving the business operations.

2 Significant accounting policies

2.1 Basis of accounting and preparation of financial statements

ThefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewiththeaccountingprinciples generally accepted in India, including the Accounting Standards specified underSection133of theCompaniesAct2013,readwithRule7of theCompanies(Accounts)Rules,2014. The financial statements have been prepared on accrual basis under the historical costconvention.Theaccountingpoliciesadoptedinthepreparationofthefinancialstatementsareconsistent with those followed in the previous year except where a new statute newly or a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requiresachangeintheaccountingpolicyhithertoinuse.

The Accumulated losses of the company as at the year ended March 31, 2016 are more than its NetWorth,andthecompanyhasincurredcashlossesbothinthecurrentandpreviousfinancialyear.However,theFinancialStatementsarepreparedasaGoingConcernbasis.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires theManagement to make estimates and assumptions considered in the reported amounts of assets andliabilities(includingcontingentliabilities)andthereportedincomeandexpensesduringtheyear.TheManagementbelievesthattheestimatesusedinpreparationofthefinancialstatementsareprudentandreasonable.Futureresultscoulddifferduetotheseestimatesandthedifferencesbetween the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2.3 Inventories

Inventories are valued at the lower of cost (onFIFObasis) and thenet realisable value afterproviding for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octrol and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriateproportion of overheads and, where applicable, excise duty.

50


2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cashonhand anddemanddepositswith banks.Cash equivalents are short-termbalances(withanoriginalmaturityofthreemonthsorlessfromthedateofacquisition),highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandwhicharesubjecttoinsignificantriskofchangesinvalue.

2.5 Cash flow statement

Cashflowsarereportedusingtheindirectmethod,wherebyprofit/(loss)beforeextraordinaryitemsandtaxisadjustedfortheeffectsoftransactionsofnon-cashnatureandanydeferralsoraccrualsofpastorfuturecashreceiptsorpayments.Thecashflowsfromoperating,investingandfinancingactivitiesoftheCompanyaresegregatedbasedontheavailableinformation.

2.6 Depreciation and amortisation

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management.

2.7 Revenue recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks andrewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

2.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

2.9 Tangible fixed assets

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The costoffixedassetsincludesmajormodifications/betterments/interest/financialchargesandotherexpenditureincidentaltosuchacquisition.

2.10 Investments

Long-terminvestments(excludinginvestmentproperties),arecarriedindividuallyatcostlessprovision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments includeacquisitionchargessuchasbrokerage,feesandduties.

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2.11 Employee benefits

AstherearenoEmployeeswithemploymentbenefitspayabletheactualvaluationordisclosuresasrequiredundertheAccountingStandard-15arenotapplicable.

2.12 Borrowing costs

Borrowingcostsincludeinterest,amortisationofancillarycostsincurredandexchangedifferencesarising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related totheacquisitionofqualifyingassetsarechargedtotheStatementofProfitandLossoverthetenureof the loan.Borrowingcosts,allocated toandutilised forqualifyingassets,pertainingto the period from commencement of activities relating to construction / development of the qualifyingassetuptothedateofcapitalisationofsuchassetisaddedtothecostoftheassets.CapitalisationofborrowingcostsissuspendedandchargedtotheStatementofProfitandLossduringextendedperiodswhenactivedevelopmentactivityonthequalifyingassetsisinterrupted.

2.17 Segment reporting

SincethecompanyisdealinginasingleproductthedisclosurerequirementsasperAccountingStandard -17 on Segment Reporting is not applicable.

2.18 Leases

AstherearenoLeasearrangementsinthecompanyrecognition,valuationanddisclosurerequirementsasrequiredundertheAccountingStandard-19forleasesarenotapplicable.

2.19 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including theposttaxeffectofextraordinaryitems,ifany)bytheweightedaveragenumberofequitysharesoutstanding during the year. Diluted earnings per share is computed by dividing the profit/ (loss) after tax (including thepost tax effect of extraordinary items, if any) as adjusted fordividend,interestandotherchargestoexpenseorincomerelatingtothedilutivepotentialequityshares,bytheweightedaveragenumberofequitysharesconsideredforderivingbasicearningspershareandtheweightedaveragenumberofequityshareswhichcouldhavebeenissuedontheconversionofalldilutivepotentialequityshares.Potentialequitysharesaredeemedtobedilutiveonlyiftheirconversiontoequityshareswoulddecreasethenetprofitpersharefromcontinuingordinaryoperations.Potentialdilutiveequitysharesaredeemedtobeconvertedasat the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for theproceeds receivablehad the sharesbeenactually issuedatfairvalue(i.e.averagemarketvalueoftheoutstandingshares).Dilutivepotentialequitysharesare determined independently for each period presented. The number of equity shares andpotentiallydilutiveequitysharesareadjustedforsharesplits/reversesharesplitsandbonusshares, as appropriate.

52


2.20 Taxes on income

Accounting for Taxes on Income and ascertainment of deferred taxes is not possible as there is no possibilityofprofitsinthenearfuture.

2.23 Impairment of assets

The entire plant is considered as a cash generating unit. As the recoverable amount of the cash generating unit, is expected to be in excess of its carrying amount there is no impairment loss in terms of Accounting Standard - 28 on Impairment of Assets.

2.24 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events anditisprobablethatanoutflowofresourceswillberequiredtosettletheobligationinrespectofwhich a reliable estimate can bemade. Provisions (excluding retirement benefits) are notdiscounted to theirpresentvalueandaredeterminedbasedon thebest estimate required tosettle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjustedtoreflectthecurrentbestestimates.ContingentliabilitiesaredisclosedintheNotes.

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NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.20163 Share Capital

Name of the shareholders As at As at Number ` Number ` of share of shares (a)Authorised Equitysharesof` 10 each with voting rights 60,00,000 6,00,00,000 60,00,000 6,00,00,000 (b)Issued Equitysharesof`10eachwith voting rights 60,00,000 6,00,00,000 60,00,000 6,00,00,000 (c)Subscribedandfullypaidup Equitysharesof` 10 each with voting rights 45,89,238 4,58,92,380 45,89,238 4,58,92,380 (d)Subscribedbutnotfullypaidup Equitysharesof` 10/- each with voting rights, ` 5/- not paid up 8,96,262 44,81,308 8,96,262 44,81,308 Total 54,85,500 5,03,73,688 54,85,500 5,03,73,688

(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Particulars Opening Fresh Bonus ESOP Conversion Buy Other Closing ` Balance issue back changes Balance (give details)

Equityshareswithvoting rights

Year ended 31 March, 2015 - Number of shares 5485500 5485500 -Amount(`) 5,03,73,688 5,03,73,688 Year ended 31 March, 2016 - Number of shares 5485500 5485500-Amount(`) 5,03,73,688 5,03,73,688

Amount in `

54


(ii) Details of shares held by each shareholder holding more than 5% shares:

Class of shares / As at 31 March, 2016 As at 31 March, 2015Name of shareholder Number of % Holding of Number of % holding in shares held that class shares held that class of Shares Shares Mr.V.LakshmanaKumar - - 3,87,700 7.07Ms. V.KaliKumari - - 6,69,619 12.21 Mr. V.VenkateswaraRao - - 7,02,552 12.81 Ms. Anita Sakuru 11,59,827 21.14 - - Mr. Raghuveer 11,59,128 21.13 - -

Note 4 : Reserves and surplus Particulars As at 31.03.2016 As at 31.03.2015 ` ` Surplus/(Deficit)inStatementofProfitandLoss Openingbalance (5,30,94,870) (5,28,11,182)Add:Profit/(Loss)fortheyear (3,53,000) (2,83,689) Closingbalance (5,34,47,870) (5,30,94,870)

Note : 5 Short-term borrowings

Particulars As at 31.03.2016 As at 31.03.2015 ` ` (b)Loansandadvancesfromrelatedparties (ReferNote18.1) Unsecured 4,87,304 2,25,304 Total 4,87,304 2,25,304 Note : 6 Trade payables

Particulars As at 31.03.2016 As at 31.03.2015 ` ` Trade payables: MicroSmall&MediumEnterprises Others 35,70,745 35,70,745 Total 35,70,745 35,70,745

55


Note : 7 Other current liabilities

Particulars As at 31.03.2016 As at 31.03.2015 ` `

Other payables (i)AdvancefromCustomer(RelatedParties - Refer Note 18.1) 3,54,367 3,54,367 (ii)Payablesonpurchaseoffixedassets 9,98,000 9,98,000(iii)OtherExpensesPayable 89,986 - Total 14,42,353 13,52,367 Note : 8 Short-term provisions


Provision - Others: (i)Provisionfortax 1,20,221 1,20,221(ii)ProvisionforProfessionalTaxes 22,723 22,723(iii)Provision-others(CENTRALCARDDUESPAYABLE) 25,214 25,214(iv)Provision-others(AUDITFEEPAYABLE) 80,136 80,136

Total 2,48,294 2,48,294

56


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57


Note : 10 Non-current investments

Particulars Balance Balance as at 31 March, 2016 as at 31 March, 2015 Unquoted Total Unquoted Total ` ` ` ` Investments(Atcost): Othernon-currentinvestments(NSCBONDS) 3,500.00 3,500.00 3,500.00 3,500.00 Total 3,500.00 3,500.00

Note : 11 Long-term loans and advances


(a)Securitydeposits Secured, considered good Unsecured, considered good 1,51,279.00 1,51,279.00 Doubtful Less:Provisionfordoubtfuldeposits (b)Otherloansandadvances(specifynature) Secured, considered good Unsecured, considered good 10,48,177.00 10,48,177.00 Doubtful Less:Provisionforotherdoubtfulloansandadvances Total 11,99,456.00 11,99,456.00

Note:Long-termloansandadvancesincludeamountsduefrom:

Note : 12 Trade receivables


Trade receivables outstanding for a period exceeding six months from the date they were due for payment

Unsecured, considered good 9,18,879.00 9,18,879.00 Total 9,18,879.00 9,18,879.00

58


Note : 13 Cash and Bank Balances


(a)Cashonhand 12,972 490

(b)Balanceswithbanks

(i)Incurrentaccounts - 13,497

(iii)Indepositaccounts 20,000 20,000

Total 32,972 33,986

Note : 14 Short-term loans and advances

Particulars As at 31.03.2016 As at 31.03.2015 ` `(g)Others(specifynature) Unsecured, considered good 5,02,753 5,02,753 Total 5,02,753 5,02,753

Note : 15 Other current assets

Particulars For the year For the year ended Ended 31.03.2016 Ended 31.03.2015 ` `

(d)Others

(i)Others(BALANCEWITHESI) 16,675 16,675

Total 16,675 16,675 Note : 16 Other expenses


Postage and Telephone - 85 Travelling and conveyance - - Printing and stationery - 9,280 FeesandLicenses 2,44,000 1,92,633Business promotion - 33,840 Paymentstoauditors(ReferNote(i)below) 46,304 46,304Miscellaneous expenses 62,696 851 Total 3,53,000 2,82,993

59


Note : 16 Other expenses


(i)Paymentstotheauditorscomprises (netofservicetaxinputcredit,whereapplicable): As auditors - Statutory Audit 22,821 22,821 For company law matters 23,483 23,483 Total 46,304 46,304

Note : 14 Short-term loans and advances

17.1 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Develop-ment Act, 2006


(i) Principalamountremainingunpaidtoany supplier as at the end of the accounting year 0 0(ii) Interestduethereonremainingunpaidto any supplier as at the end of the accounting year 0 0(iii) Theamountofinterestpaidalongwiththe amounts of the payment made to the supplier beyond the appointed day 0 0(iv) Theamountofinterestdueand payable for the year 0 0(v) Theamountofinterestaccruedandremaining unpaid at the end of the accounting year 0 0(vi) Theamountoffurtherinterestdueandpayable even in the succeeding year, until such date when the interest dues as above are actually paid 0 0 Dues to Micro and Small Enterprises have been determined to the extent such parties have been identifiedonthebasisofinformationcollectedbytheManagement.Thishasbeenrelieduponbytheauditors.

60


Note : 18 Disclosures under Accounting Standards 18.1 Related party transactions 18.1.a Details of related parties: Description of relationship Names of related parties KeyManagementPersonnel(KMP) Mr.V.VenkateswaraRao(Director) Mrs.V.KaliKumari(ManagingDirector) RelativesofKMP Mr.V.LakshmanKumar(Shareholder/Relative) Entities in which KMP / Relatives of KMP can exercise significantinfluence M/sV.V.FishNets

Note:RelatedpartieshavebeenidentifiedbytheManagement. Details of related party transactions during the year ended 31 March, 2015 and balances outstanding as at 31 March, 2016: `

18.1.b KMP Entities in Total which KMP / relatives of KMP have significant influence Purchase of goods - - - Balances outstanding at the end of the year Trade receivables LoansandadvancestoRelatedParties 5,68,177 5,68,177 (5,68,177) (5,68,177)LoansandadvancesfromRelatedParties 3,54,367 3,54,367 (3,54,367) (3,54,367)Trade payables 7,59,512 7,59,512 (7,59,512) (7,59,512)Borrowings 4,87,304 4,87,304 (2,25,304) (2,25,304)Provision for doubtful receivables, loans and advances - - Note: Figures in bracket relates to the previous year

61


Note : 18 Disclosures under Accounting Standards (contd.)


18.2 Earnings per share Basic&Diluted Netprofit/(loss)fortheyearattributableto theequityshareholders (3,53,000.00) (2,83,688.50) Weightedaveragenumberofequityshares 54,85,500.00 54,85,500.00 Par value per share 10.00 10.00 Earningspershare-Basic (0.06) (0.05)

Note : 19 Other Disclosures

19.1 IntheopinionoftheBoard,assetsotherthanfixedassetsandnon-currentinvestmentshaveavalueonrealisationintheordinarycourseofbusinesswhichisatleastequaltotheamountatwhich they are stated.

19.2 Previous year’s figures : Previousyear’sfigureshavebeenregrouped/reclassifiedwherevernecessarytocorrespond withthecurrentyear’sclassification/disclosure.

62


intentionally left blank

63


AARV INFRATEL LIMITEDCIN: L05005AP1992PLC013697

RegdOffice:46-11-29/1,Danavaipeta,Opp:RajahmundryHospital,Rajahmundry,AndhraPradesh,India,

ATTENDANCE SLIPS(To be presented at the entrance)

24th ANNUAL GENERAL MEETING ON 29

IcertifythatIamaregisteredshareholder/proxy/representativefortheregisteredshareholder(s)ofSkylineVentureIndiaLimited

I hereby record my presence at the 24th Annual General Meeting of the Shareholders AARV INFRATEL LIMITED on Thursday, the 29th day of September, 2016 at 10.00 a.m at Vikramahal, Subrahmanya Maidanam, Rajahmundry, Andhra Pradesh-533103

FolioNo.DP IDNo.ClientIDNo. _____________________________________________________________

Name of theMember:Signature: _____________________________________________________________

NameoftheProxy holder:Signature: __________________________________________________________

Signature of Shareholder/Proxy/ Representative(PleaseSpecify)

ELECTRONIC VOTING

Electronicvoting(e-voting)facilityisbeingprovidedinrespectoftheResolutionsproposedatthe28thAGM,inaccordancewithSection`108oftheCompaniesAct,2013readwithRule`20oftheCompanies(Management andAdministration) Rules, 2014. Please seeNote (10) to theNotice of 28thAnnualGeneral Meeting of the Company, convening the AGM for the procedure with respect to e-voting.

Your e-voting user ID and password are provided below:

ElectronicVotingEventNumber(EVEN) UserID Password

Use your existing password

64


65


Form No. MGT-11Proxy form

[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of theCompanies (Management and Administration) Rules, 2014]

CIN : L05005AP1992PLC013697NameoftheCompany : AARVINFRATELLIMITEDRegisteredOffice : 46-11-29/1,Danavaipeta,Opp:Rajahmundry Hospital,Rajahmundry,AndhraPradesh,India Name of the Member : Registered Address : Email ID : Folio No/ Client ID : DP ID.: I/We,beingthemember(s)of___________sharesoftheabovenamedcompany,herebyappoint

1. Name:

Address

Email ID

Or failing him

2. Name:

Address

Email ID

Or failing him

3. Name:

Address

Email ID

Or failing him

asmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe 24th Annual GeneralMeeting of the Company to be held on 29.09.2016 at 10.00 A.M. at Vikramahal, SubrahmanyaMaidanam, Rajahmundry, Andhra Pradesh-533103,and at any adjournment thereof in respect of such resolutions as are indicated below:

Signature

Signature

Signature

66


Resolutions For Against

Ordinary Business:

1 Consider and adopt Audited Financial Statement, Reports of the Board of Directors and Auditors

2. To appoint a director in place of Mrs. Anita Sakuru, who retires by rotation andbeingeligible,offershimselfforre-appointment.

3. ToratifyappointmentofM/s.NekkantiSrinivasu&co,CharteredAccountants(FirmRegistrationNumber008801S)asStatutoryAuditors

Special Business:

4. Appointment of Mrs. Anita Sakuru as Managing Director5. AppointmentofMr.RaghuveerSakuruasWholetimeDirector6. Appointment of Mr. Praveen Reddy Chekurku as Independent Director7. AppointmentofMrs.SudiVijayaLakshmiasIndependentDirector

Signed this …………. day of ………………. 2016.

Signatureofshareholder: SignatureofProxyholder(s):

NOTES: 1. ThisFormofProxyinordertobeeffectiveshouldbedulycompletedanddepositedattheRegd

Office:46-11-29/1,Danavaipeta,Opp:RajahmundryHospital,Rajahmundry,AndhraPradesh,India, not less than48 hours before the commencement of the Meeting.

2. Thosememberswhohavemultiple folioswithdifferent joint holdersmayuse copies of thisProxy.

3. It is optional to indicate your preference. If you leave the for, against or abstain column blank against any or all resolutions, your proxy will be entitled to vote in the manner as he/she may deem appropriate

AffixRevenue

Stamp

67


Routemap to AGM Venue

If undelivered please return to:AARV INFRATEL LIMITED(FormerlyKnownas‘NylofilsIndiaLimited)

L05005AP1992PLC013697RegdOffice:46-11-29/1, Danavaipeta, Opp: Rajahmundry Hospital,Rajahmundry,AndhraPradesh,India

24th - bseindia.com · be held on thursday, the 29th day of september, 2016 at 10.00 a.m at...

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