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ANNUAL REPORT2018-19
ASSAM CARBON PRODUCTS LIMITED
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Annual Report 2018-2019Assam Carbon Products Limited 1
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ASSAM CARBON PRODUCTS LIMITEDCIN: L23101AS1963PLC001206ANNUAL REPORT 2018-19
CONTENTS Page No.
1. Notice 2-142. DirectorsReport&itsAnnexures 15-413. ManagementDiscussion &AnalysisReport 42-444. AuditorsReport 45-515. BalanceSheet 526. StatementofProfit&Loss 537. CashflowStatement 54-558. StatementofChangesinEquity 569. NotestoFinancialStatements 57-7810.UpdationofShareholders’detailsinthe 79 recordsoftheCompany
BOARD OF DIRECTORSMr.RakeshHimatsingka,ChairmanMr.KaliKrishnaBhattacharya,ManagingDirectorMrs.AnitaHimatsingkaMs.MaalikaHimatsingkaMr.SandipModi(w.e.f.1stMay,2019)Mr.SusheelKumarSharma(w.e.f.1stMay,2019)Mrs.RupanjanaDeMr.SanjayKumarLhilaMr.AmitavSaikia-NomineeofAIDCLtd.
CHIEF FINANCIAL OFFICERMr.PijushBysack
COMPANY SECRETARYMr.SubhenduChakraborty
REGISTERED OFFICEBirkuchi,NarengiChandrapurRoad,Narengi,Guwahati-781026,Assam.Ph:0361-2640262/2640630,Fax:0361–2640368EMail:[email protected]:http://www.assamcarbon.in
CORPORATE OFFICE6,OldPostOfficeStreet,TempleChambers,5thFloor,Kolkata-700001
AUDITORS•D.Basu&Co.,CharteredAccountants,StatutoryAuditors•A.S&Associates,CostAccountants,CostAuditors•J.KumarJain&Associates,CharteredAccountants,InternalAuditors•Mr.RajatKumarJalan,PracticingCompanySecretary,SecretarialAuditors
REGISTRARS & SHARE TRANSFER AGENTSCBManagementServices(P)LtdP-22BondelRoad,Kolkata–700019PhoneNo.:40116700/17/18FaxNo.:(033)40116739,E-mail:[email protected]
BANKERSAxisBankStateBankofIndia
WORKSPlant I:NarengiChandrapurRoad,Birkuchi,Narengi,Guwahati,Pin–781026,Assam
Plant II:PlotNo.2,I.D.A,Phase-IPatancheru–502319Dist–Medak,Telangana,Pin:502319
Annual Report 2018-2019Assam Carbon Products Limited 2
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NOTICE TO MEMBERS
NOTICE is hereby given that the 56th Annual GeneralMeeting of theMembers of Assam Carbon Products Limited (‘theCompany’),willbeheldonFriday,the27thdayofSeptember,2019at11.45a.m.,attheregisteredofficeoftheCompany,atNarengiChandrapurRoad,Birkuchi,Narengi,Guwahati,Assam–781026,totransactthefollowingbusinesses:ORDINARY BUSINESS:Toconsiderand,ifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolutionsasordinaryresolutions:1. AdoptionofFinancialStatements: ToconsiderandadopttheAuditedFinancialStatementsoftheCompanyfortheFinancialYearended31stMarch,2019,
togetherwiththeReportsoftheBoardofDirectorsandtheAuditorsthereon.2. Re-appointmentofMrs.AnitaHimatsingkaasaDirector,liabletoretirebyrotation:
Tore-appointDirector, inplaceofMrs.AnitaHimatsingka,(DIN:01201879),whoretiresbyrotationandbeingeligibleoffersherselfforre-appointment.
3. Re-appointmentofMs.MaalikaHimatsingkaasaDirector,liabletoretirebyrotation: Tore-appointDirector,inplaceofMs.MaalikaHimatsingka,(DIN:07811394),whoretiresbyrotationandbeingeligible
offersherselfforreappointment.SPECIAL BUSINESS: 4. AppointmentofMr.SusheelKumarSharma(DIN:01636111)asaDirector: To consider and, if thought fit, to pass with or without modification(s) the following resolution as an Ordinary
Resolution: “RESOLVED THAT pursuanttotheprovisionsofSections149,152andanyotherapplicableprovisionsoftheCompanies
Act,2013(‘Act’)andtheRulesframedthereunder(includinganystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce)Mr.SusheelKumarSharma(DIN:01636111),whowasappointedbytheBoardasanAdditionalDirectoroftheCompanywitheffectfromMay1,2019andwhoholdsofficeuptothedateofthisAnnualGeneralMeeting,pursuanttotheprovisionsofSection161oftheCompaniesAct,2013readwithArticle94oftheArticlesofAssociationoftheCompanyandinrespectofwhomtheCompanyhasreceivedanoticeinwritingunderSection160oftheAct,proposinghiscandidaturefortheofficeofaDirector,beand isherebyappointedasaNon-ExecutiveDirectorof theCompany,liabletoretirebyrotation.”
5. AppointmentofMr.SandipModi(DIN:01797999)asanIndependentDirector: Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s)thefollowingresolutionasanOrdinaryResolution: “RESOLVED THATMr. SandipModi (DIN: 01797999),whowas appointedby theBoardofDirectors as anAdditional
Directorof theCompanywitheffect fromMay1,2019 andwhoholdsofficeup to thedateof thisAnnualGeneralMeetingoftheCompanyintermsofSection161oftheCompaniesAct,2013(“Act”)andArticle94oftheArticlesofAssociationoftheCompany,beingeligibleforappointmentandinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromaMemberunderSection160oftheActproposinghiscandidaturefortheofficeofDirectoroftheCompany,beandisherebyappointedasaNon-ExecutiveDirectoroftheCompany.”
“RESOLVED FURTHER THATpursuanttotheprovisionsofSections149,150and152andotherapplicableprovisions,ifany,oftheAct,theCompanies(AppointmentandQualificationsofDirectors)Rules,2014,readwithScheduleIVtotheActandRegulation17andotherapplicableregulationsoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“SEBIListingRegulations”),asamendedfromtimetotime,theappointmentofMr.SandipModi,whomeetsthecriteriaforindependenceasprovidedinSection149(6)oftheActalongwiththerulesframedthereunder,andRegulation16(1)(b)ofSEBIListingRegulationsandwhohassubmittedadeclarationtothateffect,andwhoiseligibleforappointmentasanIndependentDirectoroftheCompany,notliabletoretirebyrotation,foratermoffiveyearscommencingfrom1stMay,2019to30thApril,2024,beandisherebyapproved.”
6. Re-AppointmentofMrSanjayKumarLhila(DIN:01383460)asanIndependentDirector: Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s)thefollowingresolutionasaSpecialResolution: “RESOLVED THATpursuanttotheprovisionsofSections149,150and152readwithScheduleIVandotherapplicable
provisions,ifany,oftheCompaniesAct,2013(“theAct”),theCompanies(AppointmentandQualificationofDirectors)Rules,2014andtheapplicableprovisionsoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015[includinganystatutorymodification(s)orre-enactment(s)thereof,forthetimebeinginforce],Mr.SanjayKumarLhila(DIN:01383460),whowasappointedasanIndependentDirectorandwhoholdsofficeofIndependentDirectorupto30thMarch,2020,beingeligible,andwhosere-appointmenthasbeenrecommendedbytheNomination&RemunerationCommitteeandwhohassubmittedadeclarationtotheeffectthathemeetsthecriteria
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Notice(Contd.)
of independenceasprovided inSection149(6)oftheActandRegulation16(1)(b)ofSEBIListingRegulations,beandisherebyre-appointedasanIndependentDirectoroftheCompany,notliabletoretirebyrotation,toholdofficeforasecondtermof5(five)consecutiveyearsontheBoardoftheCompany,witheffectfrom31stMarch,2020.”
7. Re-AppointmentofMrs.RupanjanaDe(DIN:01560140)asanIndependentDirector: Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s)thefollowingresolutionasaSpecialResolution: “RESOLVED THATpursuanttotheprovisionsofSections149,150and152readwithScheduleIVandotherapplicable
provisions,ifany,oftheCompaniesAct,2013(“theAct”),theCompanies(AppointmentandQualificationofDirectors)Rules,2014andtheapplicableprovisionsoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015[includinganystatutorymodification(s)orre-enactment(s)thereof,forthetimebeinginforce],Mrs.RupanjanaDe(DIN:01560140),whowasappointedasanIndependentDirectorandwhoholdsofficeofIndependentDirectorupto30thMarch,2020,beingeligible,whosere-appointmenthasbeenrecommendedbytheNomination&RemunerationCommitteeandwhohassubmittedadeclarationtotheeffectthatshemeetsthecriteriaof independenceasprovided inSection149(6)oftheActandRegulation16(1)(b)ofSEBIListingRegulations,beandisherebyre-appointedasanIndependentDirectoroftheCompany,notliabletoretirebyrotation,toholdofficeforasecondtermof5(five)consecutiveyearsontheBoardoftheCompany,witheffectfrom31stMarch,2020.”
8. RatificationofRemunerationoftheCostAuditors: Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s)thefollowingresolutionasanOrdinaryResolution: “RESOLVED THATpursuanttotheprovisionsofSection148readwithSection141oftheCompaniesAct,2013andthe
Companies(AuditandAuditors)Rules,2014[includinganystatutorymodification(s)orre-enactmentthereofforthetimebeinginforce],theremunerationpayabletoM/s.AS&Associates,CostAccountants(FirmRegd.No.:000523),appointedbytheBoardofDirectors,ontherecommendationoftheAuditCommittee,astheCostAuditorsoftheCompany,toconducttheauditofthecostaccountingrecordsmaintainedbytheCompanyfortheProducts(s)/Services(s)forthefinancialyearendingon31stMarch,2020,ataremunerationof̀ 20,000/-(TwentyThousandOnly),plusapplicabletaxesandincidentalexpenses,ifany,beandisherebyratifiedandconfirmed”.
9. ApprovalofTransactionsunderSection185oftheCompaniesAct,2013: Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s)thefollowingresolutionasaSpecialResolution: “RESOLVED THATsubjecttotheprovisionsofSection185,186andsuchotherprovisions,asmaybeapplicable,including
anystatutorymodification(s)or re-enactment(s) thereof for thetimebeing in force, consentof theMembersof theCompany,beandisherebyaccorded,totheBoardofDirectorsoftheCompany(hereinafterreferredtoasthe‘Board’,which term shall bedeemed to include, unless the context otherwise required, any committeeof theBoardor anyDirector(s)orKeyManagerialPersonnelorOfficer(s)authorizedbytheBoardtoexercisethepowersconferredontheBoardunderthisresolution),tomakeinvestments/acquisitions/giveloan(s)/anyotherformofdebttoanyperson(s)orotherbodycorporate(s)and/orguarantee(s)/provideanysecurity(ies)inconnectionwithaloan/anyotherformofdebttoanyotherbodycorporate(s)orperson(s)andtomakeinvestmentoracquirebywayofsubscription,purchaseorotherwisethesecuritiesofanyotherbodycorporate(s)whetherIndianoroverseas,inwhichanyDirectorsaredirectlyorindirectlydeemedtobeinterested,uptoasumnotexceeding`100croresatanypointoftime,inoneormoretranches,intheirabsolutediscretionasmaybedeembeneficialandintheinterestoftheCompany”.
10. ToApprovethePaymentofCommissiontoMr.RakeshHimatsingka,Non-ExecutiveChairmanoftheCompany: Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s)thefollowingresolutionasaSpecialResolution: “RESOLVED THATpursuanttoSections197,198,ScheduleVandotherapplicableprovisions,ifany,oftheCompanies
Act, 2013 and the rules framed thereunder and SEBI (ListingObligations andDisclosure Requirements) Regulations,2015,includinganystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce,theconsentoftheShareholdersbeandisherebyaccordedforpaymentofcommissionupto1%ofthenetprofitsoftheCompany,computedinthemannerlaiddowninSection198oftheCompaniesAct,2013,fromthefinancialyear2018-2019andonwardsuntilotherwiserepudiatedbytheBoardofDirectors,toMr.RakeshHimatsingka,(DIN:00632156)Non-ExecutiveChairmanoftheBoard,inadditiontothesittingfeesforattendingthemeetingoftheBoardofDirectors/Committeesthereofandanyotherexpensesincurredforofficial/businesspurposesonly.”
Date:30thApril2019 ByOrderoftheBoardPlace:Kolkata Sd/-RegisteredOffice:Birkuchi,Guwahati,Assam-781026 RakeshHimatsingkaCIN: L23101AS1963PLC001206 Chairman
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Notice(Contd.)
NOTES:1. A MEMBER ENTITLED TO ATTEND AND VOTE ON A POLL AT THE ABOVE MEETING IS ENTITLED TO APPOINT ONE OR
MORE PROXIES TO ATTEND AND VOTE INSTEAD OF HIMSELF / HERSELF AND A PROXY NEED NOT BE A MEMBER OF THE COMPANY.PROXIES,INORDERTOBEVALIDMUSTBERECEIVEDBYTHECOMPANYNOTLESSTHAN48HOURSBEFORETHE MEETING.
A PERSON CAN ACT AS A PROXY ON BEHALF OF MEMBERS NOT EXCEEDING FIFTY AND HOLDING IN THE AGGREGATE NOT MORE THAN TEN PERCENT OF THE TOTAL SHARE CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS. A MEMBER HOLDING MORE THAN TEN PERCENT OF THE TOTAL SHARE CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS MAY APPOINT A SINGLE PERSON AS PROXY AND SUCH PERSON SHALL NOT ACT AS A PROXY FOR ANY OTHER PERSON OR SHAREHOLDER.
2. CorporateMembersintendingtosendtheirauthorizedrepresentativesarerequestedtosendadulycertifiedcopyoftheBoardResolutionauthorizingtheirrepresentativestoattendandvoteattheAnnualGeneralMeeting(AGM)oruploaditonthee-votingportal.
3. MembersarerequestedtobringtheircopyofAnnualReporttothemeeting.4. Members/ProxiesshouldfilltheAttendanceSlipforattendingthemeeting.Memberswhoholdsharesindematerialized
formarerequestedtowritetheirClientIDandDPIDnumberandthosewhoholdsharesinPhysicalformarerequestedtowritetheirFolioNumberintheattendanceslipforattendingthemeeting.
5. Incaseofjointholdersattendingthemeetingonlysuchjointholderwhoishigherintheorderofnameswillbeentitledtovote.
6. TheRegisterofMembersandShareTransferRegistersoftheCompanywillremainclosefrom21stSeptember,2019to27thSeptember,2019,bothdaysinclusive
7. Explanatory Statements pursuant to Section 102 of the Companies Act, 2013 relating to the Special Business to betransactedatthemeetingareannexedhereto.
8. DetailsundertheprovisionsofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,(asamended)andtheSecretarialStandardsissuedbytheInstituteofCompanySecretariesofIndia(ICSI),inrespectofDirectorsseekingappointment/re-appointmentattheAGMareprovidedunderaseparateheading,whichformspartofthisNotice.
9. EquitysharesoftheCompanyarelistedwithTheCalcuttaStockExchangeLimited(CSE).TherearenodueswithregardtopaymentofListingfees.TheISINcodeoftheCompanyisINE496C01018.TheCSEScripCodeoftheCompanyis011403
10. Theinvestorsarerequestedtoenrolltheire-mailidswiththeCompanyandcanwritetotheRegistrar&ShareTransferAgentatrta@cbmsl.comortotheCompanySecretaryatsubhendu.chakraborty@ascarbon.com.
11. TheCompanyhasappointedthefollowingRegistrar&ShareTransferAgent(RTA)todealwithbothPhysicalandDematshares.
C.B.ManagementServices(P)Limited P-22,BondelRoad,Kolkata-700019 PhoneNo.03340116700/17/18 FaxNo.:03340116739 E-mail:[email protected] Membersare requested to send theirqueries relating to share transfer/transmission, changeof address, etc. to the
aboveaddress.12. All documents referred to in the Notice and accompanying Explanatory Statement and copy of Audited Financial
Statements,theRegisterofDirectorsandKeyManagerialPersonnelandtheirshareholdings,theRegisterofContractsorArrangements inwhichtheDirectorsare interestedandeveryotherdocumentsrequiredby lawtobeannexedorattachedtotheFinancialStatementsasperSection136ofCompaniesAct,2013,areopenforinspectionattheRegisteredOfficeoftheCompany,onallworkingdaysfromMondaytoFridayinbetween10amto5pm,uptothedateoftheAnnualGeneralMeetingandalsoatthevenueoftheAnnualGeneralMeeting.
13. ThisnoticeofMeetingandtheAnnualReportisalsoavailableontheCompany’swebsitehttp://www.assamcarbon.infordownloadandalsoonthewebsiteofNSDLatwww.evoting.nsdl.com.
14. TheNoticeoftheAnnualGeneralMeetingalongwiththecopyofAnnualReport2018-19 isbeingsentbyelectronicmodetothosememberswhosee-mailaddressesareregisteredwiththeCompany/Depositories,unlessanyMemberhasrequestedforaphysicalcopyofthesame.Formemberswhohavenotregisteredtheire-mailaddresses,physicalcopiesarebeingsentbythepermittedmode.
15. Membersarerequestedintheirowninterest: a) TonotifytheCompany/RegistrarandShareTransferAgentabouttheirPAN,anychangeinaddress/namewith
correctpincode,mandate/bankdetailsandtheire-mailid,etcwithsupportingdocuments. b) ToquotecorrectFolioNo./ClientID.No.andDPID.No.inallcorrespondencewiththeCompany/Registrarand
ShareTransferAgenttofacilitatebetterservicetothemembers.
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Notice(Contd.)
c) TodematerializetheEquitySharesoftheCompanyheldinphysicalmode.16. AspertheprovisionsoftheCompaniesAct,2013,facilityformakingnominationsisavailabletothemembersinrespect
ofthesharesheldbythem.NominationformscanbeobtainedfromtheCompany’sRegistrarsandTransferAgentsbyMembersholdingsharesinphysicalform.MembersholdingsharesinelectronicformmayobtainNominationformsfromtheirrespectiveDepositoryParticipant.
17. TheMinistryofCorporateAffairs(MCA),GovernmentofIndiahasintroduced‘GreenInitiativeinCorporateGovernance’by allowing paperless compliance by the Companies for service of documents to theirMembers through electronicmode.Incaseyouhavenotregistered/updatedyoure-mailaddress,pleasecommunicatethesametotheCompanyoritsRTAattheircommunicationaddressgivenintheAnnualReportinrespectofthesharesheldinphysicalmodeorcommunicatetoyourDepositoryParticipantsconcernedinrespectofsharesheldindemat/electronicmode.AlthoughyouareentitledtoreceivephysicalcopyoftheNotices,AnnualReports,etc.fromtheCompany,wesincerelyseekyoursupporttoenableustoforwardthesedocumentstoyouonlybye-mail,whichwillhelpustoparticipateintheGreenInitiativeoftheMCAandtoprotectourenvironment.
18. TheSecuritiesandExchangeBoardofIndia(SEBI)hasmandatedthesubmissionofPermanentAccountNumber(PAN)byeveryparticipantinsecuritiesmarket.Membersholdingsharesinelectronicformare,therefore,requestedtosubmittheir PAN to theirDepositoryparticipantswithwhom theyaremaintaining their demat accounts.MembersholdingsharesinphysicalformcansubmittheirPANtotheCompany/Company’sRegistrar&ShareTransferAgent.
19. SEBINotificationNo.SEBI/LAD-NRO/GN/2018/24dated8th June2018and furtheramendmentvideNotificationNo.SEBI/LAD-NRO/GN/2018/49dated30thNovember2018requests foreffectingtransferofSecurities (except incaseoftransmissionortranspositionofsecurities)shallnotbeprocessedfrom1stApril2019unlessthesecuritiesareheldinthedematerialisedformwiththedepositories.Therefore,MembersarerequestedtotakeactiontodematerialisetheEquitySharesoftheCompany,promptly.
20. MembersseekinganyinformationwithregardtoAccounts/FinancialStatementsarerequestedtowritetotheCompanyatanearlydate,soastoenablethemanagementtokeeptheinformationreadyattheMeeting.
21. ProcedureofVotingthroughElectronicMeans I. IncompliancewithprovisionsofSection108oftheCompaniesAct,2013,Rule20oftheCompanies(Management
andAdministration)Rules,2014,asamendedbytheCompanies(ManagementandAdministration)AmendmentRules,2015andRegulation44oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,asmaybeamendedfromtimetotime,theCompanyispleasedtoprovideitsMembers,facilityofvotingbyelectronicmeansinrespectofbusinessproposedtobetransactedatthe56thAnnualGeneralMeeting(AGM)byelectronicmeans and thebusinessmaybe transacted through e-Voting Services. The facility of casting the votes by theMembersusinganelectronicvotingsystemfromaplaceotherthanvenueoftheAGM(“remotee-voting”)willbeprovidedbyNationalSecuritiesDepositoryLimited(NSDL).
II. The facility for voting throughBallot Paper shall also bemade available to themembers at theAGMand theMembersattendingtheMeetingwhohavenotcasttheirvotebyremotee-votingshallbeabletoexercisetheirrightattheMeetingthroughBallotPaper.
III. TheMemberswhohavealreadycasttheirvotebyremotee-votingpriortotheAGMmayalsoattendtheAGMbutshallnotbeentitledtovoteagainattheAGM.
IV. Thecut-offdatetodeterminetheMembersentitledtoundertakevotingelectronicallyonalltheresolutionssetforthinthisNoticebyremotee-votingandalsovotingattheAGMvenueshallbe20thSeptember,2019.
V. Theremotee-votingperiodcommenceson24thSeptember,2019(at9.00a.m.IST)andendson26thSeptember,2019(at5.00p.m.IST).DuringthisperiodMembersoftheCompany,holdingshareseitherinphysicalformorindematerializedform,asonthecut-offdatei.e.20thSeptember,2019,maycasttheirvotebyremotee-voting.Theremotee-votingmoduleshallbedisabledbyNSDLforvotingthereafter.OncethevoteonaresolutioniscastbytheMember,theMembershallnotbeallowedtochangeitsubsequently.
VI. Theprocessandmannerforremotee-votingareasunder: HowdoIvoteelectronicallyusingNSDLe-Votingsystem? ThewaytovoteelectronicallyonNSDLe-Votingsystemconsistsof“TwoSteps”whicharementionedbelow:
Step1:Log-intoNSDLe-Votingsystemathttps://www.evoting.nsdl.com/ Step2:CastyourvoteelectronicallyonNSDLe-Votingsystem. DetailsonStep1ismentionedbelow: HowtoLog-intoNSDLe-Votingwebsite? 1. Visitthee-VotingwebsiteofNSDL.OpenwebbrowserbytypingthefollowingURL:https://www.evoting.nsdl.com/
eitheronaPersonalComputeroronamobile. 2. Oncethehomepageofe-Votingsystemislaunched,clickontheicon“Login”whichisavailableunder‘Shareholders’
section.
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Notice(Contd.)
3. Anewscreenwillopen.YouwillhavetoenteryourUserID,yourPasswordandaVerificationCodeasshownonthescreen.
4. Alternatively,ifyouareregisteredforNSDLeservicesi.e.IDEAS,youcanlog-inathttps://eservices.nsdl.com/ with yourexistingIDEASlogin.Onceyoulog-intoNSDLeservicesafterusingyourlog-incredentials,clickone-VotingandyoucanproceedtoStep2i.e.Castyourvoteelectronically.
YourUserIDdetailsaregivenbelow:
Manner of holding shares i.e. Demat (NSDL orCDSL)orPhysical
YourUserIDis:
a) For Members who hold shares in demataccountwithNSDL.
8CharacterDPIDfollowedby8DigitClientIDFor example if your DP ID is IN300*** and Client ID is12******thenyouruserIDisIN300***12******.
b) For Members who hold shares in demataccountwithCDSL.
16DigitBeneficiaryIDForexampleifyourBeneficiaryIDis12**************thenyouruserIDis12**************
c) For Members holding shares in PhysicalForm.
EVENNumberfollowedbyFolioNumberregisteredwiththecompanyForexample if folionumber is 001***andEVEN is 101456thenuserIDis101456001***
5. Yourpassworddetailsaregivenbelow: a) Ifyouarealreadyregisteredfore-Voting,thenyoucanuseyourexistingpasswordtologinandcastyour
vote. b) IfyouareusingNSDLe-Votingsystemforthefirsttime,youwillneedtoretrievethe‘initialpassword’which
wascommunicatedtoyou.Onceyouretrieveyour‘initialpassword’,youneedtoenterthe‘initialpassword’andthesystemwillforceyoutochangeyourpassword.
c) Howtoretrieveyour‘initialpassword’? (i) Ifyouremail ID isregisteredinyourdemataccountorwiththeCompany,your ‘initialpassword’ is
communicatedtoyouonyouremail ID.TracetheemailsenttoyoufromNSDLfromyourmailbox.Opentheemailandopentheattachment i.e.a .pdffile.Openthe .pdffile.Thepasswordtoopenthe.pdffileisyour8digitclientIDforNSDLaccount,last8digitsofclientIDforCDSLaccountorfolionumberforsharesheldinphysicalform.The.pdffilecontainsyour‘UserID’andyour‘initialpassword’.
(ii) IfyouremailIDisnotregistered,your‘initialpassword’iscommunicatedtoyouonyourpostaladdress. 6. Ifyouareunabletoretrieveorhavenotreceivedthe“Initialpassword”orhaveforgottenyourpassword: Clickon“ForgotUserDetails/Password?”(IfyouareholdingsharesinyourdemataccountwithNSDLorCDSL)
optionavailableonwww.evoting.nsdl.com. PhysicalUserResetPassword?”(Ifyouareholdingsharesinphysicalmode)optionavailableonwww.evoting.nsdl.
com. Ifyouarestillunabletogetthepasswordbyaforesaidtwooptions,[email protected]
mentioningyourdemataccountnumber/folionumber,yourPAN,yournameandyourregisteredaddress. MemberscanalsousetheOTP(OneTimePassword)basedloginforcastingthevotesonthee-votingsystemof
NSDL. 7. Afterenteringyourpassword,tickonAgreeto“TermsandConditions”byselectingonthecheckbox. 8. Now,youwillhavetoclickon“Login”button. 9. Afteryouclickonthe“Login”button,Homepageofe-Votingwillopen. DetailsonStep2aregivenbelow: HowtocastyourvoteelectronicallyonNSDLe-Votingsystem? 1. AftersuccessfulloginatStep1,youwillbeabletoseetheHomepageofe-Voting.Clickone-Voting.Then,
clickonActiveVotingCycles. 2. AfterclickonActiveVotingCycles,youwillbeabletoseeallthecompanies“EVEN”inwhichyouareholding
sharesandwhosevotingcycleisinactivestatus. 3. Select“EVEN”ofcompanyforwhichyouwishtocastyourvote. 4. Nowyouarereadyfore-VotingastheVotingpageopens. 5. Castyourvotebyselectingappropriateoptionsi.e.assentordissent,verify/modifythenumberofsharesfor
whichyouwishtocastyourvoteandclickon“Submit”andalso“Confirm”whenprompted.
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Notice(Contd.)
6. Uponconfirmation,themessage“Votecastsuccessfully”willbedisplayed. 7. Youcanalsotaketheprintoutofthevotescastbyyoubyclickingontheprintoptionontheconfirmation
page. 8. Onceyouconfirmyourvoteontheresolution,youwillnotbeallowedtomodifyyourvote. GeneralGuidelinesforshareholders 1. Institutionalshareholders(i.e.otherthanindividuals,HUF,NRIetc.)arerequiredtosendscannedcopy(PDF/
JPGFormat)oftherelevantBoardResolution/Authorityletteretc.withattestedspecimensignatureofthedulyauthorizedsignatory(ies)whoareauthorizedtovote,totheScrutinizerbye-mailtokashliwalanant@[email protected].
2. Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.Logintothee-votingwebsitewillbedisableduponfiveunsuccessfulattemptsto key in the correctpassword. In suchanevent, youwill need to go through the “ForgotUserDetails/Password?” or “Physical User Reset Password?” option available on www.evoting.nsdl.com to reset thepassword.
3. Incaseofanyqueries,youmayrefertheFrequentlyAskedQuestions(FAQs)forShareholdersande-votingusermanualforShareholdersavailableatthedownloadsectionofwww.evoting.nsdl.comorcallontollfreeno.:[email protected]
VII. Youcanalsoupdateyourmobilenumberande-mailidintheuserprofiledetailsofthefoliowhichmaybeusedforsendingfuturecommunication(s).
VIII. Thevoting rightsofMembers shallbe inproportion to their sharesof thepaidupEquityShareCapitalof theCompanyheldasonthecut-offdatei.e.20thSeptember,2019.
IX. Anyperson,whoacquiressharesoftheCompanyandbecomesMemberoftheCompanyafterdispatchoftheNoticeofAGMandholdingsharesasonthecut-offdatei.e.20thSeptember,2019,mayobtaintheloginIDandpasswordbysendingarequestatevoting@nsdl.co.in or [email protected]/herFolioNumber/DPIDandClientID.However,ifyouarealreadyregisteredwithNSDLforremotee-votingthenyoucanuseyourexistinguserIDandpasswordforcastingyourvote. Ifyouforgotyourpassword,youcanresetyourpasswordbyusing“ForgotUserDetails/Password”optionavailableonwww.evoting.nsdl.comorcontactNSDLatthefollowingtollfreeno.:1800-222-990.
X. Aperson,whosenameisrecordedintheRegisterofMembersorRegisterofBeneficialOwnersmaintainedbythedepositoriesasontheclosingworkinghoursofcut-offdate,shallbeentitledtoavailthefacilityofremotee-votingaswellasvotingattheAGMthroughBallotPaper(whohavenotcasttheirvoteelectronically).
XI. Mr. Anant Kashliwal, Practicing Chartered Accountant, Guwahati, (Membership No.: 302972, Firm Regd. No.:328654E)whohasconsentedtoactasthescrutinizerandisavailableforthepurposeofascertainingtherequisitemajority,hasbeenappointedastheScrutinizertoscrutinizethevotingandremotee-votingprocess/ballot/pollinafairandtransparentmanner.
XII. Chairmanshall,attheAGM,aftertheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvotingwiththeassistanceofscrutinizer,byuseofBallotorpollingPaperforallthoseMemberswhoarepresentattheAGMbuthavenotcasttheirvotesbyavailingtheremotee-votingfacility.
XIII. TheScrutinizershall,immediatelyaftertheconclusionofvotingattheAGM,willfirstcountthevotescastattheMeetingandthereafterunblockthevotescastthroughremotee-votinginthepresenceofatleasttwowitnessesnotintheemploymentoftheCompanyandwithinaperiodnotexceeding48hoursfromtheconclusionoftheAGM,makeaconsolidatedScrutinizer’sReportofthetotalvotescastinfavouroragainst,ifany,totheChairmanoftheCompanyoranyotherpersonauthorizedbyhiminwriting,whoshallcountersignthesameanddeclaretheresultofthevotingforthwith.
XIV. The resultsdeclaredalongwith theScrutinizer’sReport shallbeplacedon thewebsiteof theCompanywww.assamcarbon.in andon thewebsiteofNSDLwww.evoting.nsdl.com immediatelyafter thedeclarationof resultbytheChairmanorapersonauthorizedbyhiminwriting.TheresultsshallalsobecommunicatedtotheCalcuttaStockExchangeLimitedwithintheprescribedtimelimit.
ExplanatoryStatementpursuanttoSection102oftheCompaniesAct,2013(“Act”),thefollowingexplanatorystatementsetsoutallmaterialfactsrelatingtobusinessmentionedunderItemNos.4to10oftheaccompanyingNotice:Re:Item4BasedontherecommendationsoftheNominationandRemunerationCommittee,theBoardofDirectorshadappointedMr.SusheelKumarSharma(DIN:01636111)asanAdditionalDirectoroftheCompany,inthecategoryofNon-Executiveandliabletoretirebyrotation,witheffectfrom1stMay2019.PursuanttotheprovisionsofSection161(1)oftheActandArticle94oftheArticlesofAssociationoftheCompany,Mr.SusheelKumarSharmashallholdofficeuptothedateofthisAnnualGeneralMeeting(“AGM”)andiseligibletobeappointedasaDirector.TheCompanyhas,intermsofSection160oftheAct,receivedin
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Notice(Contd.)
writinganoticefromMember(s),proposinghiscandidaturefortheofficeofaDirector.TheBoardofDirectorsisoftheopinionthatMr.Sharma’sassociationasamemberontheBoardwillbebeneficialfortheCompany.YourBoardrecommendsfortheapprovalofshareholders,fortheappointmentofMr.SusheelKumarSharmaasaNon-ExecutiveDirectoroftheCompany,liabletoretirebyrotation.Your Board proposes the resolution, as set out at ItemNo.4 of theNotice, for approval of theMembers as anOrdinaryResolution.MemorandumofInterest:ConcernedDirectorisinterestedintheresolutionbeingrelatedtohisownappointment.ApartfromhimnoneoftheDirectorsoftheCompanyand/orKeyManagerialPersonnelandtheirrelativesareinanywayconcernedorinterestedintheaforesaidresolutionassetoutatItemNo.4oftheNotice,excepttotheextentoftheirshareholding(s),ifany,intheCompany.Re:Item5BasedontherecommendationsoftheNominationandRemunerationCommittee,theBoardofDirectorshadappointedMr.SandipModi(DIN:01797999)asanAdditionalDirectoroftheCompany,inthecategoryofIndependentandnotliabletoretirebyrotation,witheffectfrom1stMay2019.PursuanttotheprovisionsofSection161(1)oftheActandArticle94oftheArticlesofAssociationoftheCompany,Mr.SandipModishallholdofficeuptothedateofthisAnnualGeneralMeeting(“AGM”)andiseligibletobeappointedasaDirector.TheCompanyhas,intermsofSection160oftheAct,receivedinwritinganoticefromMember(s),proposinghiscandidaturefortheofficeofaDirector.TheCompanyhasreceiveddeclarationsfromMr.SandipModitotheeffectthathemeetsthecriteriaof independenceasprovidedinSection149(6)oftheActreadwiththeRulesframedthereunderandRegulation16(1)(b)oftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“SEBIListingRegulations”).IntermsofRegulation25(8)of SEBI ListingRegulations,Mr.Modihave confirmed thathe isnot awareof any circumstanceor situationwhich exists ormaybe reasonably anticipated that could impair or impact his ability to dischargehis duties.In theopinionof theBoard,Mr.Modi fulfils theconditionsspecified in theAct,RulesandSEBIListingRegulations for theappointmentasanIndependentDirectorandisindependentofthemanagementoftheCompany.ThetermsandconditionsofhisappointmentshallbeopenforinspectionbytheMembersattheRegisteredOfficeoftheCompanyduringthenormalbusinesshoursonanyworkingday(exceptSaturday)andwillalsobekeptopenatthevenueoftheAGMtilltheconclusionoftheAGM.TheBoardofDirectorsisoftheopinionthatMr.SandipModi’sassociationasamemberontheBoardwillbebeneficialfortheCompany.IncompliancewiththeprovisionsofSection149,readwithScheduleIVoftheActandRegulation17ofSEBIListingRegulationsandotherapplicableRegulations,theappointmentofMr.ModiasanIndependentDirectorisnowbeingplacedbeforetheMembersfortheirapproval.Your Board proposes the resolution, as set out at ItemNo.5 of theNotice, for approval of theMembers as anOrdinaryResolution.MemorandumofInterest:ConcernedDirectorisinterestedintheresolutionbeingrelatedtohisownappointment.ApartfromhimnoneoftheDirectorsoftheCompanyand/orKeyManagerialPersonnelandtheirrelativesareinanywayconcernedorinterestedintheaforesaidresolutionassetoutatItemNo.5oftheNotice,excepttotheextentoftheirshareholding(s),ifany,intheCompany.Re:Item6BasedontherecommendationsoftheNominationandRemunerationCommittee,theBoardofDirectorsproposesthere-appointmentofMr.SanjayKumarLhila(DIN:01383460)asanIndependentDirector,forasecondtermoffiveyearsfrom31stMarch,2020to30thMarch,2025,notliabletoretirebyrotation.Mr.SanjayKumarLhilawasappointedasanIndependentDirector at theBoardMeetingof theCompanyheldon31stMarch, 2015onand from thatdate itself,whichwas furtherconfirmedandapprovedbyShareholders/Membersatthe52ndAnnualGeneralMeeting(“AGM”)oftheCompanyandholdsofficeupto30thMarch,2020.TheCompanyhas,intermsofSection160oftheAct,receivedinwritinganoticefromMember(s),proposinghiscandidaturefortheofficeofaDirector.TheBoard,basedon theperformanceevaluationand recommendationof theNominationandRemunerationCommittee,considersthatgivenhisbackground,experienceandcontribution,thecontinuedassociationofMr.SanjayKumarLhila,wouldbebeneficialtotheCompanyanditisdesirabletocontinuetoavailofhisservicesasanIndependentDirector.TheCompanyhasreceiveddeclarationsfromMr.SanjayKumarLhilatotheeffectthathemeetsthecriteriaofindependenceasprovidedinSection149(6)oftheActreadwiththeRulesframedthereunderandRegulation16(1)(b)oftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“SEBIListingRegulations”).IntermsofRegulation25(8)ofSEBIListingRegulations,Mr.Lhilahaveconfirmedthatheisnotawareofanycircumstanceorsituationwhichexistsormaybereasonablyanticipatedthatcouldimpairorimpacthisabilitytodischargehisduties.IntheopinionoftheBoard,Mr.LhilafulfilstheconditionsspecifiedintheAct,RulesandSEBIListingRegulationsforappointmentasanIndependentDirectorandisindependentofthemanagementoftheCompany.ThetermsandconditionsofhisappointmentshallbeopenforinspectionbytheMembers,attheRegisteredOfficeoftheCompany,duringthenormalbusinesshoursonanyworkingday(exceptSaturday)andwillalsobekeptopenatthevenueoftheAGMtilltheconclusionoftheAGM.TheBoardofDirectorsisoftheopinionthatMr.Lhila’sassociationasanIndependentDirectorontheBoardwillbebeneficialfortheCompany.IncompliancewiththeprovisionsofSection149,readwithScheduleIVoftheActandRegulation17ofSEBI
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Notice(Contd.)
ListingRegulationsandotherapplicableRegulations,theappointmentofMr.LhilaasanIndependentDirector,isnowbeingplacedbeforetheMembersfortheirapproval.YourBoardproposestheresolution,assetoutatItemNo.6oftheNotice,forapprovaloftheMembersasaSpecialResolution.MemorandumofInterest:ConcernedDirectorisinterestedintheresolutionbeingrelatedtohisownappointment.ApartfromhimnoneoftheDirectorsoftheCompanyand/orKeyManagerialPersonnelandtheirrelativesareinanywayconcernedorinterestedintheaforesaidresolutionassetoutatItemNo.6oftheNotice,excepttotheextentoftheirshareholding(s),ifany,intheCompany.Re:Item7Basedon the recommendationof theNominationandRemunerationCommittee, theBoardofDirectorsproposes the re-appointmentofMrs.RupanjanaDe(DIN:01560140)asanIndependentDirector,forasecondtermoffiveyearsfrom31stMarch,2020to30thMarch,2025,notliabletoretirebyrotation.Mrs.RupanjanaDewasappointedasanIndependentDirectorattheBoardMeetingoftheCompanyheldon31stMarch,2015onandfromthatdateitself,whichwasfurtherconfirmedandapprovedbyShareholders/Membersatthe52ndAnnualGeneralMeeting(“AGM”)oftheCompanyandholdsofficeupto30th March,2020.TheCompanyhas,intermsofSection160oftheAct,receivedinwritinganoticefromMember(s),proposinghercandidaturefortheofficeofaDirector.TheBoard,basedon theperformanceevaluationand recommendationof theNominationandRemunerationCommittee,considersthatgivenherbackground,experienceandcontribution,thecontinuedassociationofMrs.RupanjanaDe,wouldbebeneficialtotheCompanyanditisdesirabletocontinuetoavailofherservicesasanIndependentDirector.TheCompanyhasreceiveddeclarationsfromMrs.DetotheeffectthatshemeetsthecriteriaofindependenceasprovidedinSection149(6)oftheActreadwiththeRulesframedthereunderandRegulation16(1)(b)oftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“SEBIListingRegulations”).IntermsofRegulation25(8)ofSEBIListingRegulations,Mrs.Dehaveconfirmedthatsheisnotawareofanycircumstanceorsituationwhichexistsormaybereasonablyanticipatedthatcouldimpairorimpactherabilitytodischargeherduties.IntheopinionoftheBoard,Mrs.DefulfilstheconditionsspecifiedintheAct,RulesandSEBIListingRegulationsforappointmentasanIndependentDirectorandisindependentofthemanagementoftheCompany.Thetermsandconditionsofherappointmentshallbeopenforinspectionby theMembers at theRegisteredOfficeof theCompany, during thenormal businesshourson anyworkingday (exceptSaturday)andwillalsobekeptopenatthevenueoftheAGMtilltheconclusionoftheAGM.TheBoardofDirectorsisoftheopinionthatMrs.De’sassociationasanIndependentDirectorontheBoardwillbebeneficialfortheCompany.IncompliancewiththeprovisionsofSection149,readwithScheduleIVoftheActandRegulation17ofSEBIListingRegulationsandotherapplicableRegulations,theappointmentofMrs.DeasanIndependentDirector,isnowbeingplacedbeforetheMembersfortheirapproval.YourBoardproposestheresolution,assetoutatItemNo.7oftheNotice,forapprovaloftheMembersasaSpecialResolution.MemorandumofInterest:ConcernedDirectorisinterestedintheresolutionbeingrelatedtoherownappointment.ApartfromhernoneoftheDirectorsoftheCompanyand/orKeyManagerialPersonnelandtheirrelativesareinanywayconcernedorinterestedintheaforesaidresolutionassetoutatItemNo.7oftheNotice,excepttotheextentoftheirshareholding(s),ifany,intheCompany.Re:Item8AsperSection148oftheCompaniesAct,2013,theCompanies(AuditandAuditors)Rules,2014,theCompanies(CostRecordsandAudit)Rules,2014,asmaybeamendedfromtimetotime,andanychanges/modificationsintheAct,Rules,Circulars,Notificationsthereafter,theAuditCommitteehasmadearecommendationtotheBoardfortheappointmentofM/s.AS&Associates,CostAccountants(FirmRegd.No.:000523)asCostAuditoroftheCompanyforthefinancialyearending31stMarch2020,ataremunerationofRs20,000/-plusapplicabletaxesandincidentalexpenses.TheBoardbasedontherecommendationoftheAuditCommittee,appointedM/sAS&Associates,CostAccountantsasCostAuditorsoftheCompanyforthefinancialyearending31stMarch2020.AsperRule14oftheCompanies(AuditandAuditors)Rules,2014(asamendedorre-enactedfromtimetotime)theremunerationasmentionedabove,payabletotheCostAuditorisrequiredtoberatifiedbytheMembersoftheCompany.Accordingly,theMembersarerequestedtoratifytheremunerationpayabletotheCostAuditors,forthefinancialyearendingMarch31,2020,assetoutintheOrdinaryResolutionfortheaforesaidservicestoberenderedbythem.The Board of Directors recommends theOrdinary Resolution, as set out at ItemNo.8 of theNotice, for approval by theMembers.MemorandumofInterest:NoneoftheDirectorsoftheCompanyand/orKeyManagerialPersonnelandtheirrelativesare inanywayconcernedorinterestedintheaforesaidresolutionassetoutatItemNo.8oftheNotice,excepttotheextentoftheirshareholding(s),ifany,intheCompany.Re:Item9TheshareholdershadvideresolutionpassedattheAnnualGeneralMeetingoftheCompanydated18thSeptember,2017consentedandauthorisedtheBoardofDirectorstomakeinvestments/acquisitions/giveloan(s)/anyotherformofdebttoanyperson(s)orotherbodycorporate(s)and/orguarantee(s)/provideanysecurity(ies)inconnectionwithaloan/anyotherformofdebttoanyotherbodycorporate(s)orperson(s)andtomakeinvestmentoracquirebywayofsubscription,purchase
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orotherwisethesecuritiesofanyotherbodycorporate(s)whetherIndianoroverseas,inexcessoflimitsprescribedunderSection186oftheCompaniesAct,2013viz.,60%ofthepaid-upsharecapital,freereservesandsecuritiespremiumoftheCompanyor100%offreereservesandsecuritiespremiumoftheCompany,whicheverismoreorupto`100crore,whicheverishigher.TheBoardofDirectorshasbeencareful inactingupon thedelegationsby the shareholders including limitsandregularlymonitoringthesamethroughproperreviewmechanisms.TheCompanyisexpectedtorendersupportforthebusinessrequirementsofothercompaniesinoroutsideitsgroup,fromtime to time, inwhich theDirectors are directly or indirectly interested. However, owing to certain restrictive provisionscontainedintheSection185oftheCompaniesAct,2013,theCompanywasunabletoextendfinancialassistancebywayofloan,guaranteeorsecuritytootherentitiesinoroutsideitsgroup,inwhichtheDirectorsaredirectlyorindirectlyinterested.InthelightofamendmentsnotifiedeffectiveMay7,2018,inter-aliareplacingtheprovisionsSection185ofCompaniesAct,2013,theCompanywiththeapprovalofmembersbywayofspecialresolution,wouldbeinapositiontoprovidefinancialassistancebywayofloantootherentitiesinwhichtheDirectorsaredirectlyorindirectlyinterestedundersection185oftheCompaniesAct,2013orgiveguaranteeorprovidesecurityinrespectofloanstakenbysuchentities,fortheirprincipalbusinessactivities.ThemembersmaynotethattheBoardofDirectorswouldjudiciouslyevaluateproposalsandprovidesuchloan(s),guarantee(s)orsecurityproposalsthroughdeploymentoffundsoutofinternalresources/accrualsand/oranyotherappropriatesources,fromtimetotime,onlyforprincipalbusinessactivitiesoftheentities,inwhichtheDirectorsaredirectlyorindirectlyinterested,pursuanttoprovisionsofSection185oftheCompaniesAct,2013.InordertoenabletheCompanytoadvanceanyloan(s),guarantee(s)orsecurityproposalstoitsSubsidiaries/JointVentures/associates/anyotherCompanies/Firms/bodycorporate(s)inwhichtheDirectorsaredirectlyorindirectlyinterested,pursuanttoprovisionsofSection185oftheCompaniesAct,2013,requiresapprovalofitsmembersbywayofaSpecialResolution.NoneoftheDirectorsorKeyManagerialPersonneland/ortheirrelativesisdeemedtobeinterestedorconcernedfinancialorotherwise,inthisresolution,excepttotheextentoftheirshareholding,ifany,intheCompany.TheBoardofDirectorsrecommendstheSpecialResolution,assetoutatItemNo.9oftheNotice,forapprovalbytheMembers.MemorandumofInterest:NoneoftheDirectorsoftheCompanyand/orKeyManagerialPersonnelandtheirrelativesare inanywayconcernedorinterestedintheaforesaidresolutionassetoutatItemNo.9oftheNotice,excepttotheextentoftheirshareholding(s),ifany,intheCompany.Re:Item10ValuedcontributionarecontinuouslybeingmadebyMr.RakeshHimatsingka(DIN:00632156),Non-ExecutiveChairmanoftheBoardandthroughhisactiveparticipation,theCompanyhasbeenprogressingovertheyears.TherichexperienceofMr.RakeshHimatsingka inengineering,business,managementandadministrationhas led to theCompany turning thecornerandgrowfromstrengthtostrength.Mr.Himatsingkaisdevotingconsiderabletimetoprovideandlaydownthepoliciesandguidelinestocarryoutthebusinesscompetitively.ItisappropriatethattheservicesbeingrenderedbyhimtotheCompanyarerecognizedbywayofpaymentofremuneration.Inaccordancewith theprovisionsof Section197of theCompaniesAct,2013andSEBI (ListingObligationsandDisclosureRequirements)Regulations,2015[includinganystatutorymodification(s)orre-enactmentthereofforthetimebeinginforce],remunerationbywayofcommissionupto1%ofthenetprofits,bepaidtoMr.RakeshHimatsingka,fromthefinancialyear2018-2019andonwards,subjecttotheapprovaloftheShareholdersoftheCompany.BasedontherecommendationsreceivedfromtheNomination&RemunerationCommittee,theBoardofDirectorsattheirmeetingheldon30thApril,2019,hadunanimouslyapprovedthepaymentofremunerationtoMr.RakeshHimatsingka,bywayofcommissionupto1%ofthenetprofits,whichamountsto`6,34,000/-,whichexceedsfiftypercentofthetotalannualremunerationpayabletoallnon-executivedirectorsoftheCompany.TheBoardofDirectorsrecommendstheSpecialResolution,assetoutatItemNo.10oftheNotice,forapprovalbytheMembers.MemorandumofInterest:ConcernedDirectorisinterestedintheresolutionbeingrelatedtohisownpayment.Apartfromhim,Ms.MaalikaHimatsingka,Director(DIN:07811394)beingthedaughterofMr.RakeshHimatsingkaandMrs.AnitaHimatsingka,Director(DIN:01201879)being thespouseofMr.RakeshHimatsingkamaybeconsideredas interestedparties in this resolution.Mr.ShauryaVeerHimatsingka,oneof thePromotersandshareholdersof theCompany,being theSonofMr.RakeshHimatsingkamayalsobetreatedasinterestedpartyinthisresolution.Otherthantheaforesaid,noneoftheDirectorsoftheCompanyand/orKeyManagerialPersonnelandtheirrelativesareinanywayconcernedorinterestedintheaforesaidresolutionassetoutatItemNo.10oftheNotice,excepttotheextentoftheirshareholding(s),ifany,intheCompany.Date:30thApril2019 ByOrderoftheBoardPlace:Kolkata Sd/-
RegisteredOffice: RakeshHimatsingkaBirkuchi,Guwahati,Assam-781026 ChairmanCIN: L23101AS1963PLC001206 (DIN:00632156)
Notice(Contd.)
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AnnexuretotheNoticedatedApril30,2019
BRIEF PARTICULARS OF DIRECTORS RETIRING BY ROTATION / SEEKING APPOINTMENT / RE-APPOINTMENT
NameoftheDirector Mrs.AnitaHimatsingka Ms.MaalikaHimatsingka Mr.SusheelKumarSharmaDateofBirth 15thSeptember,1953 7thFebruary,1979 24thDecember,1956DateofAppointment 25thMay2016 10thMay,2017 1stMay,2019Expertiseinspecificfunctionalareas&Justificationforchoosingtheappointeesforappointment/re-appointment
BusinessManagement BusinessManagementincludingResourceOptimization,ChangeManagementandContinuousImprovementbothStrategicandOperational,DataManagement.
BusinessManagement&FinancialManagement
Qualifications B.A.(Honours)inEnglishfromDelhiUniversity BAEconomics;LadyShriRamCollegeforWomen,NewDelhiMBA,INSEAD,France-Singapore
B.ComfromUniversityofCalcutta
ListofoutsideDirectorshipheld
1. AssamPlywoodLimited2. APLHoldings&InvestmentsLtd.3. ShreeShyamOrchidEstatesLtd.4. APLInvestmentsLimited5. TowerInvestment&TradingCo.Ltd.6. WelvaartRealtyPrivateLimited7. BudgeBudgeCarbonLimited8. GonerilInvestment&TradingCo.Ltd.9. EvimeriaRealtyPrivateLimited10. PrabhushilGroupInvestmentLtd.11. SunrayVanijyaPvt.Ltd.12. JyotsanaInvestmentCo.Ltd
N.A. 1. APLInvestmentsLtd.2. RedHotMercantile
PrivateLimited3. SubhagProjectsPrivate
Limited4. SubhagPowerPrivate
Limited
Chairman/MemberoftheCommitteeofotherCompaniesinwhichhe/sheisaDirector
a)AuditCommittee
b)StakeholdersRelationshipCommittee
c)NominationandRemunerationCommittee
1.GonerilInvestment&TradingCo.Ltd.(Member)2.JyotsanaInvestmentCo.Ltd.(Member)3.TowerInvestment&TradingCo.Ltd.(Member)
1.GonerilInvestment&TradingCo.Ltd.(Member)2.JyotsanaInvestmentCo.Ltd.(Member)3.TowerInvestment&TradingCo.Ltd.(Member)
1.GonerilInvestment&TradingCo.Ltd.(Member)2.JyotsanaInvestmentCo.Ltd.(Member)3.TowerInvestment&TradingCo.Ltd.(Member)
Nil
Nil
Nil
Nil
Nil
Nil
ShareholdingintheCompanyason31.03.19
275025 90000 2120
DisclosureofrelationshipbetweenDirectorsinter-se
SpouseofMr.RakeshHimatsingkaandMotherofMs.MaalikaHimatsingka
DaughterofMr.RakeshHimatsingkaandMrs.AnitaHimatsingka
NotrelatedtoanyDirector/Key
ManagerialPersonnel
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NameoftheDirector Mrs.AnitaHimatsingka Ms.MaalikaHimatsingka Mr.SusheelKumarSharmaTermsandConditionsofappointment/re-appointmentalongwithdetailsofremunerationsoughttobepaidandremunerationlastdrawnbysuchperson(includingsittingfees)
Aspertheresolutionatitemno.2oftheNoticeconveningAnnualGeneralMeetingonSeptember27,2019.
SittingFeeslastdrawnfromtheCompany:` 1,68,000/-.
Aspertheresolutionatitemno.3oftheNoticeconveningAnnualGeneralMeetingonSeptember27,2019.
SittingFeeslastdrawnfromtheCompany:`40,000/-.
Aspertheresolutionatitemno.4oftheNoticeconveningAnnual General Meeting onSeptember 27, 2019 readwith explanatory statementthereto.
Remuneration last drawnfromtheCompany:N.A.
Note:• CM–ChairmanoftheCommittee.• M–MemberoftheCommittee.• DirectorshipinForeignCo.’s&CompaniesU/s8oftheCompaniesAct,2013areexcluded.Chairmanship/MembershipoftheAuditCommittee,Shareholders’GrievanceCommitteeandNomination&RemunerationCommitteealonehasbeenconsidered.
BRIEF PARTICULARS OF DIRECTORS RETIRING BY ROTATION / SEEKING APPOINTMENT / RE-APPOINTMENT
NameoftheDirector Mrs.RupanjanaDe Mr.SanjayKumarLhila Mr.SandipModiDateofBirth 4thJuly,1975 5thMay,1951 9thAugust,1975DateofAppointment 31stMarch,2015 31stMarch,2015 1stMay,2019Expertiseinspecificfunctionalareas&Justificationforchoosingtheappointeesforappointment/re-appointment
BusinessManagement,CorporateGovernanceandCorporateLaws
BusinessManagementincludingFinance,Accounting,TaxationAndAuditing.
BusinessManagement&FinancialManagement
Qualifications CompanySecretaryfromTheInstituteofCompanySecretariesofIndia,LLB,LLMfromUniversityofHamburg,MA(Economics)fromUniversityPaulCezanneAix-MarseilleIII,FranceandaEuropeanMasterinLawandEconomicsfromEramusUniversityRotterdam,TheNetherlands.
CharteredAccountantfromtheInstituteofCharteredAccountantsofIndiaandCostAccountantfromtheInstituteofCostAccountantsofIndia.
B.ComfromUniversityofCalcutta
ListofoutsideDirectorshipheld
1. HiranmayeEnergyLimited2. AfieldTouriosityPrivateLimited3. BengalShelterHousingDevelopment
Limited4. NandiResourcesGenerationTechnology
Pvt.Ltd.5. VisaSteelLimited6. VisaPowerLimited7. EnvertAgroandFoodPrivateLimited8. EnvertE-VehiclesPrivateLimited9. ShyamMetalicsandEnergyLtd.10. BhagalpurSmartCityLimited11. BalasoreAlloysLimited
1. MadhuMatiFinancePvtLtd.
1. SubhagPropertiesPvt.Ltd.
2. RedHotMercantilePrivateLimited
3. SubhagProjectsPrivateLimited
4. SubhagPowerPrivateLimited
5. NewAgePetcokePrivateLimited
AnnexuretotheNotice (Contd.)
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NameoftheDirector Mrs.RupanjanaDe Mr.SanjayKumarLhila Mr.SandipModiChairman/MemberoftheCommitteeofotherCompaniesinwhichhe/sheisaDirector
a)AuditCommittee
b)StakeholdersRelationshipCommittee
c)NominationandRemunerationCommittee
1.HiranmayeEnergyLimited(Member)2.BengalShelterHousingDevelopmentLimited(Member)3.VisaSteelLimited(Chairperson)4.BhagalpurSmartCityLimited(Member)
1.VisaSteelLimited(Member)
1.HiranmayeEnergyLimited(Member)2.BengalShelterHousingDevelopmentLimited(Chairperson)3.VisaSteelLimited(Member)4.ShyamMetaliksandEnergyLtd.
Nil
Nil
Nil
Nil
Nil
Nil
ShareholdingintheCompanyason31.03.19
Nil Nil Nil
DisclosureofrelationshipbetweenDirectorsinter-se
NotrelatedtoanyDirector/KeyManagerialPersonnel
NotrelatedtoanyDirector/KeyManagerialPersonnel
NotrelatedtoanyDirector/KeyManagerialPersonnel
TermsandConditionsofappointment/re-appointmentalongwithdetailsofremunerationsoughttobepaidandremunerationlastdrawnbysuchperson(includingsittingfees)
Aspertheresolutionatitemno.7oftheNoticeconveningAnnualGeneralMeetingonSeptember27,2019readwithexplanatorystatementthereto.SittingFeeslastdrawnfromtheCompany:` 1,33,000/-.
Aspertheresolutionatitemno.6oftheNoticeconveningAnnualGeneralMeetingonSeptember27,2019readwithexplanatorystatementthereto.SittingFeeslastdrawnfromtheCompany:`1,26,000/-.
Aspertheresolutionatitemno.5oftheNoticeconveningAnnual General Meeting onSeptember 27, 2019 readwith explanatory statementthereto.Remuneration last drawnfromtheCompany:N.A.
Note:• CM/CP–Chairman/ChairpersonoftheCommittee.• M–MemberoftheCommittee.• DirectorshipinForeignCo.’s&CompaniesU/s8oftheCompaniesAct,2013areexcluded.Chairmanship/MembershipoftheAuditCommittee,Shareholders’GrievanceCommitteeandNomination&RemunerationCommitteealonehasbeenconsidered.
AnnexuretotheNotice (Contd.)
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RouteMaptothe56thAnnualGeneralMeetingofAssamCarbonProductsLimited
Venue
Regd.Office:NarengiChandrapurRoad,Birkuchi,Narengi
Guwahati,Assam–781026
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TotheMembers,YourDirectorshavepleasureinpresentingthe56thAnnualReportonthebusinessandoperationsoftheCompanyalongwiththeAuditedFinancialAccountsforthefinancialyearended31stMarch,2019.1. CORPORATE OVERVIEW YourCompanyisoneofthemarketleadersinElectrical&MechanicalCarbonProducts,withinterestsinmanufacturing
ofCarbonBlocksofvariousgrades.ItmanufacturesacompleterangeofCarbonBrushesforRailwaysandIndustrialuses.InadditiontoCarbonBrushes,itsRailwayTractionproductsincludePantograph,CurrentCollectors&SIGContacts.
MechanicalCarbonDivisioninPatancherunearHyderabadproducesCarbonSeals,Bearings,VanesandThrustPadsfromtheCarbonBlocksandBlanksproducedinGuwahati.ThefinishingunitatPatancheruisequippedwiththelateststate-of-the-artmachinestooffercustomersproductaspertheirspecificrequirementtohighestleveloftoleranceandsurfacefinish.
SpecialityGraphiteDivisionoftheCompanyofferssolutionstotheDiamondToolIndustry,Opticalfibermanufacturing,HardmetalsinteringandElectronicindustry.
YourCompanyalsomanufacturesvariouskindsofGraphiteproductsViz.,Hi-TempInsulator,FuelCells,HeatingElements,CastingDyes,LubricatingBlocksandothersuchitemsaspertheneedoftheCustomers.Aegis–theworld’smosteffectiveshaftgroundingbrushisalsoprovidedbytheCompany.
Your Company continues to sustain its commitment to the highest levels of quality, superior and robust servicemanagementandmaturebusinesscontinuitymanagement.
2. FINANCIAL RESULTS (INR ‘000 except EPS Figure)
Particulars 2014-15 2015-16 2016-17 2017-18 2018-19TotalRevenue 3,98,338 3,71,631 3,92,684 4,52,932 5,24,784RevenuefromOperation 3,71,654 3,70,411 3,90,602 4,39,299 5,12,700TotalComprehensiveIncome/(Loss)fortheyear (18,071) (533) 27,338 56,553 49,192EarningPerShare(Basic&Diluted) (6.56) (0.19) 9.82 20.97 18.33
Directors’Report
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3. OPERATIONSANDSTATEOFCOMPANY’SAFFAIRS Duringtheyearunderreview,which isonly thethird fullyearofoperationunderthenewpromoters, revenuefrom
operationsoftheCompanyincreasedto`5127.00Lacsascomparedto`4392.99Lacs inthepreviousyearwhich isa healthy 16.71% growth.Thisincreasein the sales was achieved by continuously improving the production andproductivitybyremovingbottlenecksinoperationsandbyaddingnewPlantandMachinery.
The12MonthsbottomlineclosedwithaprofitofINR634Lacs(beforeprovisionoftax)asagainstapreviousyear12MonthsprofitofINR687Lacs.[Figuresroundedoff].Themajorcauseforaslightdipinprofitmarginwasbecausethecurrentfinancialyear2018-19hadwitnessedsettlementofthevariouslegacyissueswhichwaspendingsincethepastfiveyearsresultinginaonetimeeffectintheStatementofProfit&Loss.Ifweaddbacktheselegacyissues,theProfitbeforetaxfigureoftheCompanyforthisfinancialyearwouldhavebeenINR984LacsinsteadofINR634Lacs.
Duringtheyear,yourCompanyincurredaforexlossof`0.25Lacsonlyascomparedtoaforexgainof`1.46lakhsinthepreviousyear,basicallyasaresultofbettermanagementoftheforextransactions,asrelativeinstabilityintheforexmarketcontinuedinthisfinancialyear.
Duringtheyear,yourCompanyachievedanexportsalesof̀ 27.67Lacsasagainst̀ 46Lacsinthepreviousyear.However,themanagementhastakenstronginitiativeandisconfidentthatitwillpick-upinthenextyear.
Duringtheyear,yourCompanyhasfurtherworkedactivelytowardsrationalizingitsbusinessandproductportfoliosandaddingnewproductlines.
Exercisecommencedthreeyearsback forcostcutting,savings inpowerand fuelaswellas improvingefficiencyandproductivitycontinuedrelentlesslyandishelpingtheCompanyreaprichdividends.
BalancingofPlantandMachineries,refurbishingoldequipmentandadditionofnewequipmentsandmachinerieswithaviewtooptimizingproductionthroughmodernization,wasundertakenontoppriorityaswasproductionplanningandoptimizationofrawmaterialsprocurementandstockscontinuedthisyeartoo.
4. FUTURE OUTLOOK BusinessenvironmentcontinuestoimproveinthesegmentsinwhichyourCompanyisinbusinessandithasstartedto
showresultsintheformofordersatimprovedprices.NewBusinessOpportunitieswithverylargepotentialforgrowth,havebeenidentifiedandnewcustomersinducted,whichwillcontributesignificantlytothetopandbottomlineoftheCompanygoingforward.
Further, in view of the substantial addition to the ongoing business, Company’s expansion inMechanical Carbons,especiallyforRadialBearings&Vaneswasmovingrapidlyandforwhichseveralnewhighprecisionmachinesarebeingacquired.Somemachineshavealreadybeenbought,bothdomesticallyaswellasimportedandthiswillbeanongoingprocess,tokeepupwiththerapidlygrowingdemand.
Inadditionithasbeenstronglyfeltthattocuttimeandcosts,somebasicmaterialsmanufacturingfacility,asatGuwahatishouldalsobeinstalledintheSouth.Whilst,Patancheruwouldbetheidealsite,butasthelandinhandisalreadyfullyoccupied,andalsowehavebeenunofficiallyinformedthatsoonerthanlater,wewillbeinstructedtomoveourfactory,as theCity residentialarea isbeingexpanded,hence itwas thoughtprudent to look forsuitable land forexpansion,withoutanyfurtherdelay.SeniorofficialsofPatancherufactoryhavebeenactivelylookingforalternativelands,havingRedZoneStatusandfinallytwoparcelsoflandatVishakhapatnam,AndhraPradeshandCoimbatore,TamilNaduhavebeenidentified.FinaldiscussionsonthePriceoftheLandandotherstudiesintermsofLabour,PowerAvailability&Cost,Accessibilityetc.,isbeinglookedintoandyourCompanyexpectstofinalizeitverysoon.
DuringtheperiodofJointVenturewithMorgans,theCompanywasexportingsubstantiallyalloverthroughthem.Thismarkethasnowtotallydriedupandthemanagementisconfidentofmakingabreakthroughandsensingthisopportunityasquitefavorableintermsofcostreduction,easeofdoingbusiness,accesstobettertechnologicalknow-how,buildingan international brand, awidespread customer base in the global arena, access tomore demanding and extensivemarkets, expansion of business across the globe, etc., is desirous to incorporate a wholly owned Subsidiary in theUnitedKingdom(UK)withthenameandstyleofASSAMCARBONPRODUCTSUKLIMITEDandhavingitsmainobjectsasmarketingofallproductsofAssamCarbonProductsLimited,exploringnewmarketsinUK,Europeorotherneighboringareas/Countries,enteringintosometechnologytransferagreements,JointVentureAgreements,sharingknowhow,NewProductDevelopmentagreements,etc.
5. DIVIDEND Afterthehugeoperatinglossesinthepastseveralyears,underMorgansmanagement,theCompanyhasjuststarted
making operating profits from the last two financial years, under the newmanagement and there is still amassiveamountofrepairsandmaintenance,modernization&upgradationofthePlantandMachineryatboththefactoriesaswellascapitalexpendituretobeincurredandassuchtheBoardhasdecidednottodeclaredividendforthecurrentyear,inordertopreserveitscashreserve.
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Annual Report 2018-2019Assam Carbon Products Limited 17
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6. PUBLICDEPOSIT TheCompanyhasnotaccepted/renewedanypublicdepositunderSection73oftheCompaniesAct,2013,readwith
Companies(AcceptanceofDeposits)Rules,2014,duringtheyear.7. STATUTORYAUDITORS’ANDTHEIRREPORT M/s D Basu& Co., the Statutory Auditors of the Company, shall hold office until the conclusion of the 57th Annual
GeneralMeeting.TheyhaveconfirmedthattheireligibilityiswithintheprescribedlimitsundertheActandtheyarenotdisqualified.
TheMembersmaynotethatconsequenttothechangesmadeintheCompaniesAct,2013andtheCompanies(AuditandAuditors)Rules,2014bytheMinistryofCorporateAffairs(MCA)videnotificationdatedMay7,2018,theprovisotoSection139(1)oftheCompaniesAct,2013readwithexplanationtosub-rule7ofRule3oftheCompanies(AuditandAuditors)Rules,2014,therequirementofratificationofappointmentofAuditorsbytheMembersateveryAGMhasbeendoneawaywith.Therefore,theCompanyisnotseekinganyratificationofappointmentofM/s.DBasu&Co,CharteredAccountantsastheAuditorsoftheCompany,bytheMembersattheensuingAGM.
Theobservationsmade in the Auditors’ Report read togetherwith relevantnotes thereonare self-explanatory andtherefore,donotcallforanyfurtherexplanationsorcomments.
StatutoryAuditorsoftheCompanyhasdrawnattentiontoNote25(A)(iii)totheIndASFinancialStatements,whereinitisstatedthattheCompanyhasnotestablishedaprovisionforemployeewagesandbenefits,forthelockoutperiodattheCompany’sGuwahatiFactoryfrom7December2010to8March2012,ontheprincipleof‘NoWorkNoPay’.Theyhadfurtherstatedthatasthematteriscurrentlysubjudiceandhencetheimpact,ifany,intermsofprovisionofemployeewagesandemployeebenefitsanditsresultantimpactonprofitfortheyearended31March2019,reservesandsurplusandcurrentliabilities,cannotcurrentlybedetermined.
With regard to the StatutoryAuditor’s qualifiedopinion inNote25(A)(iii) to the IndAS Financial Statements, in theopinionoftheManagement,theissueofpaymentofbackwagesduringtheperiodofstrike/lock-outattheCompany’sGuwahati Unit employees effective from 7th December 2010 to 8th March 2012 has been referred to appropriateauthorities.However,theCompany,ontheprincipleof‘NoWorkNoPay’,hasneitherascertainednormadeanyprovisionforpaymentofsuchwagesandotheremployeebenefitsfortheperiodofstrikeandlockout.Thematteriscurrentlysubjudice.
8. DIRECTORS TheBoardofyourCompanyconsistsofthefollowingdirectors:
NAME OF DIRECTORS DESIGNATION DINMr.KaliKrishnaBhattacharya ManagingDirector 07011241Mr.RakeshHimatsingka ChairmanandNonExecutiveDirector 00632156Mrs.AnitaHimatsingka NonExecutiveWomanDirector 01201879Ms.MaalikaHimatsingka NonExecutiveWomanDirector 07811394Mrs.RupanjanaDe NonExecutiveIndependentWomanDirector 01560140Mr.AmitavSaikia NonExecutiveNomineeDirector 02663720Mr.SandipModi NonExecutiveIndependentDirector(w.e.f.1stMay,2019) 01797999Mr.SanjayKumarLhila NonExecutiveIndependentDirector 01383460Mr.SusheelKumarSharma NonExecutiveDirector(w.e.f.1stMay,2019) 01636111
TheBoardofDirectorsofyourCompany,basedontherecommendationsofNominationandRemunerationCommittee(“NRC”),approvedthefollowingappointmentsandre-appointmentsontheBoardoftheCompany:
Appointment of Mr. Susheel Kumar Sharma (DIN: 01636111), as an Additional (Non-Executive, Non-Independent)DirectoroftheCompanyw.e.f.May1,2019.TheBoardrecommendshisre-appointment.
Appointment of Mr. Sandip Modi (DIN: 01797999), as an Additional (Non-Executive, Independent) Director of theCompanyw.e.f.May1,2019.TheBoardrecommendshisre-appointment.
Re-appointmentofMrs.RupanjanaDe(DIN:01560140)andofMr.SanjayKumarLhila(DIN:01383460),asaDirectors(Non-Executive,Independent)oftheCompanyw.e.f.,31stMarch,2020forasecondtermof5(five)consecutiveyears,subjecttoapprovaloftheShareholdersattheensuingAnnualGeneralMeeting,bytheBoardofDirectorsoftheCompanyatitsmeetingheldon30thApril,2019.TheBoardrecommendstheirre-appointment.
Mrs.AnitaHimatsingka(DIN:01201879andMs.MaalikaHimatsingka(DIN:07811394),Directors(Non-Executive),retiresbyrotationandbeingeligible,offersthemselvesforre-appointment.TheBoardrecommendstheirre-appointment.
Appropriate Resolutions for confirming the above appointment(s) and re-appointment(s), forms part of the Noticeconveningthe56thAnnualGeneralMeeting(‘AGM’)scheduledtobeheldonSeptember27,2019.
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Annual Report 2018-2019Assam Carbon Products Limited 18
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Briefprofileandparticularsofexperience,attributesandskillsthatqualifytheaboveDirectorsfortheBoardmembershiparedisclosedintheNoticeconveningtheAGMtobeheldonSeptember27,2019.
As per the disclosure received from the Directors, none of the Directors are disqualified from being appointed asDirectors,asspecifiedinSection164(2)oftheCompaniesAct,2013.
9. KEY MANAGERIAL PERSONNEL PursuanttoSection203oftheCompaniesAct,2013,followingaretheKeyManagerialPersonneloftheCompany: 1. Mr.KaliKrishnaBhattacharya,ManagingDirector, 2. Mr.PijushBysack,ChiefFinancialOfficer, 3. Mr.SubhenduChakraborty,CompanySecretaryandComplianceOfficer Duringtheyearunderreview,therehasbeennochangeintheKeyManagerialPersonneloftheCompany.10. INDEPENDENTDIRECTORS’DECLARATION TheCompanyhasreceiveddeclarationspursuanttoSection149(7)oftheCompaniesAct,2013fromalltheIndependent
DirectorsoftheCompany,confirmingthattheymeetthecriteriaofindependenceasprescribedundersub-section(6)ofSection149oftheCompaniesAct,2013aswellastheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015[includinganystatutorymodification(s)orre-enactmentthereofforthetimebeing inforce], inrespectoftheirpositionasan“IndependentDirector”ofAssamCarbonProductsLtd.
11. INTERNAL FINANCIAL CONTROL SYSTEM The Company has an Internal Financial Control System, commensurate with the size, scale and complexity of its
operations.TheInternalAuditfunctionisdonebyindependentCharteredAccountants,whosereportsarebeingplacedintheAuditCommitteeandBoardfortheirreview.Theirobjective is toensureefficientusageandprotectionoftheCompany’sresources,accuracyinfinancialreportingandduecomplianceofstatutesandprocedures.Theinternalcontrolstructureshowednoreportablematerialweaknesses.TheCompany’sInternalFinancialControlsystemiscommensuratewithcurrentbestpracticesandeffectivelyaddressesemergingchallengesofitsbusiness.TheCompanyhasaprocessinplacetocontinuouslyidentifygapsandimplementnewerand/orimprovedcontrolswherevertheeffectofsuchgapswouldhaveamaterialeffectontheCompany’soperation.
12. RISK MANAGEMENT POLICY TheCompany’sRiskManagementPolicyiswelldefinedtoidentifyandevaluatebusinessrisksacrossallbusinesses.It
assessesallriskatbothpreandpost-mitigationlevelsandlooksattheactualorpotentialimpactthatariskmayhaveonthebusinesstogetherwithanevaluationoftheprobabilityofthesameoccurring.Riskmappingexercisesarecarriedoutwithaviewtoregularlymonitorandreviewtherisks,identifyownershipoftherisk,assessingmonetaryvalueofsuchriskandmethodstomitigatethesame.ThePolicyforthesameishostedonitswebsiteatwww.assamcarbon.inundertheHeadingAboutUs→InvestorRelations→BoardPolicies.
13. GOING CONCERN STATUS RegulatorsorCourtsorTribunalspassednoordersduringtheyearaffectingtheCompany’sgoingconcernstatusandits
futureoperations.14. SHARE CAPITAL TheCompanyhasneitherissuedanyclassofsharesnorwasthereanybuy-backofsharesduringtheyearunderreview.
Further,theCompanydoesnothaveanystockoptionschemeforitsemployees.15. EVALUATION OF BOARD PERFORMANCE TheBoardcarriedoutanannualevaluationofitsownperformance,ofeachBoardMemberindividually,aswellasthe
workingofitsCommitteesincompliancewiththeprovisionsoftheActandListingRegulations. The Board works with the nomination and remuneration committee to lay down the evaluation criteria for the
performanceofexecutive/non-executive/independentdirectors. PursuanttotheprovisionsofSection149(8)of theCompaniesAct,2013readwithSchedule IVthereto,anexclusive
meetingoftheIndependentDirectorsoftheCompanywasdulyconvenedandheldbetweenthemselveson13thFebruary2019duringtheFinancialYear2018-19.
16. NUMBEROFBOARDMEETINGS AtentativecalendarofBoardMeetings ispreparedandcirculatedtotheBoardMembers inadvance.Aminimumof
fourBoardMeetingsareheldannually.AdditionalBoardMeetingsareconvenedbygivingappropriatenoticetoaddresstheCompany’sspecificneeds, ifany. Incaseofbusinessexigenciesorurgencyofmatters, resolutionsarepassedbycirculation.TheCompanyhasheldatleastoneBoardMeetingineverythreemonthsandthemaximumtimegapbetweenanytwoconsecutivemeetingshavealwaysbeenlessthanonehundredandtwentydays.
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TheBoardofDirectorsmet4(four)timesduringthefinancialyear2018-19,namely,on4thMay2018,1stAugust2018,6th November2018and13thFebruary2019respectively.
17. VIGILMECHANISM/WHISTLEBLOWERPOLICY TheCompanyhasavigilmechanismnamedVigilMechanismandWhistleBlowerPolicytodealwithinstanceoffraud
andmismanagement,ifany,aspertheprovisionsoftheCompaniesAct2013whichishostedonitswebsiteatwww.assamcarbon.inundertheHeadingAboutUs→InvestorRelations→BoardPolicies.
18. AUDIT COMMITTEE TheAuditCommitteeason31stMarch, 2019 comprisesof 3 (three)membersoutofwhich, 2 (two)Non-Executive
Independent Directors and 1 (one) Non-Executive Directors namely,Mr. S. K. Lhila, (Chairman),Mrs. Rupanjana De(Member)andMr.RakeshHimatsingka(Member)respectively.TheCompanySecretaryistheSecretaryoftheCommittee.TheChiefFinancialOfficerandtheManagingDirectoraretheinviteestotheMeetingsalongwiththevariousAuditors.
Duringtheyearended31stMarch2019,theAuditCommitteemet4(four)timeson4thMay2018,1stAugust2018,6th November2018,13thFebruary2019respectively.Themaximumgapbetweenanytwoconsecutivemeetingswaslessthanonehundredandtwentydays.AllrecommendationsoftheAuditCommitteeweredulyacceptedbytheBoard.
19. NOMINATION AND REMUNERATION COMMITTEE AND POLICY TheCommitteeason31stMarch2019comprises3(three)membersoutofwhich,2(two)Non-ExecutiveIndependent
Directorsand1(one)Non-ExecutiveDirectornamely,Mr.SKLhila(Chairperson),andMrs.RupanjanaDe(Member)andMr.RakeshHimatsingka(Member)respectively.
Duringtheyearended31stMarch2019,theCommitteemet2(two)timeson4thMay2018and6thNovember2018. TheCompany’sNominationandRemunerationPolicyhasbeenpreparedinaccordancewithSection178(3)oftheActand
isavailableattheweb-link-www.assamcarbon.inundertheHeadingAboutUs→InvestorRelations→BoardPolicies.20. SHARE TRANSFER COMMITTEE TheBoardhasdelegatedthepowersofapprovingtransfer/transmission,etc.ofsharestotheShareTransferCommittee.
The said Committeehasmet 11 (eleven) times during the year ended31stMarch 2019 for approving the transfer /transmission,etc.ofshareslodgedwiththeCompany.
However,theBoardhasdecidedtodissolvethecommitteewitheffectfrom30thApril2019andmergeitwithStakeholdersRelationshipCommittee.
21. STAKEHOLDERS RELATIONSHIP COMMITTEE During the year under review, this committee, comprises 3 (three) members out of which, 1 (one) Non-Executive
IndependentDirectorsand2(two)Non-ExecutiveDirector,namely,Mr.SKLhila(Chairperson),Mr.RakeshHimatsingka(Member)andMrs.AnitaHimatsingka(Member)respectively.
Duringtheyearended31stMarch2019,theCommitteemetonceon13thFebruary2019.22. PARTICULARSOFLOANS,GUARANTEESORINVESTMENTS YourCompanyhasnotgivenanyloanorguaranteescoveredundertheprovisionsofSection186oftheCompaniesAct,
2013,norhavemadeanyinvestmentundertheCompaniesAct2013.23. RELATED PARTY TRANSACTIONS Allrelatedpartytransactionsthatwereenteredintoduringthefinancialyearwereatarm’slengthbasisandwereinthe
ordinarycourseofthebusiness. Therearenomateriallysignificant relatedparty transactionsmadebytheCompanywithPromoters,KeyManagerial
PersonnelorotherdesignatedpersonswhichmayhavepotentialconflictwithinterestoftheCompanyatlarge. ParticularsofcontractsorarrangementswithrelatedpartiesreferredtoinSection188oftheCompaniesAct,2013(as
maybeamendedfromtimetotime),intheprescribedFormAOC-2,isappendedas“AnnexureA”totheBoard’sReport.24. HOLDING / SUBSIDIARY COMPANIES TheCompanydoesnothaveanyHoldingorSubsidiaryCompanyason31stMarch,2019.25. OBLIGATION OF THE COMPANY UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITIONANDREDRESSAL)ACT,2013 InordertopreventsexualharassmentofwomenatworkplaceyourCompanyhasfollowedadequatePolicyforprevention,
prohibitionandredressalofSexualHarassmentofWomenatworkplaceandhassetupaCommitteeforimplementationofthesaidpolicy.DuringtheyearCompanyhasreceivedonecomplaintatitsGuwahatiUnitwhichwassubsequentlydisposedoffafterenquiry.
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Annual Report 2018-2019Assam Carbon Products Limited 20
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26. COSTAUDITORS PursuanttoSection148oftheCompaniesAct,2013(‘theAct’)readwiththeCompanies(CostRecordsandAudit)Rules,
2014,asamendedfromtimetotime,theCompanyisrequiredtomaintaincostrecordsandhavetheauditofitscostrecordsconductedbyaCostAccountant.Cost recordsaremadeandmaintainedby theCompanyas requiredunderSection148(1)oftheAct.TheBoard,uponrecommendationfromtheAuditCommitteeappointedM/s.AS&Associates,CostAccountants(FRN:000523)asCostAuditorsoftheCompany,toAuditthecostaccountingrecordsmaintainedbytheCompanyforthefinancialyearended31stMarch,2020ataremunerationof`20,000/-plusapplicabletaxesandincidentalexpenses.Accordingly,aresolutionseekingratificationoftheremunerationpayabletotheCostAuditors,hasbeenincludedasapartoftheNoticeconveningthe56thAnnualGeneralMeeting.
27. CORPORATEGOVERNANCE YourCompany isexempted fromcompliancewith theCorporateGovernanceprovisionsunderRegulation15ofSEBI
(ListingObligationsandDisclosureRequirements),Regulations2015,sincetheCompany’ssharecapitalandnetworth,waslessthanthespecifiedthresholdlimitasonthelastdayofthepreviousfinancialyear.
28. CODE OF CONDUCT PursuanttotheprovisionsofRegulation17(5)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,
2015,theCompanyhasinplaceaCodeofConductfortheBoardofDirectors,SeniorManagersandallotherEmployeesoftheCompany.Thecodeofconductishostedonitswebsiteatwww.assamcarbon.inundertheHeadingAboutUs→ InvestorRelations→BoardPolicies.
TheManagingDirector’sCertificateunderRegulation34(3)readwithPartDofScheduleVtotheSEBI(ListingObligationsandDisclosureRequirements)Regulation,2015relatingtoCompliancewiththeCodeofConductfortheyearended31stMarch2019formsapartofthisReportenclosedas“AnnexureB”.
29. SECRETARIAL AUDIT PursuanttoprovisionsofSection204oftheCompaniesAct,2013andtheCompanies(AppointmentandRemuneration
ofManagerialPersonnel)Rules,2014,theCompanyhasappointedMr.RajatKumarJalan,PractisingCompanySecretary(CPNo.5705,MembershipNo.ACS14895)toundertaketheSecretarialAuditoftheCompanyforthefinancialyear2019-2020.
Duringtheyear,theCompanyhascompliedwiththeapplicableSecretarialStandardsissuedbytheInstituteofCompanySecretariesofIndia.
TheSecretarialAuditreportalongwiththeSecretarialComplianceReportforthefinancialyear2018-2019areannexedherewithas“AnnexureC”andformspartofthisreport.TherearenoqualificationsintheReport.
30. INTERNAL AUDITORS BasedontherecommendationoftheAuditCommitteeatitsmeetingheldon30thApril,2019,theBoardhasapproved
there-appointmentofM/s.JKumarJain&Associates,CharteredAccountants,astheInternalAuditorsoftheCompanyforthefinancialyear2019-2020.
31. DETAILS OF FRAUD REPORTED BY THE AUDITORS AsperAuditors’Report,nofraudu/s143(12)wasreportedbytheauditors.32. EXTRACT OF ANNUAL RETURN TheextractofannualreturninFormMGT9asrequiredunderSection92(3)oftheCompaniesAct,2013andRule12
oftheCompanies(ManagementandAdministration)Rules,2014isenclosedas“AnnexureD”andthesameisavailablewithintheannualreportinthewebsiteoftheCompanyatwww.assamcarbon.in undertheHeadingAboutUs→InvestorRelations→AnnualReports&AnnualGeneralMeetings.
33. INDUSTRIAL RELATIONS AtGuwahatifactory,sincethenewuniontakingcharge,therehavebeenillegaltoolsdown,etcandindustrialrelations
havebeenstrained.Inaddition,lowproductivityandabsenteeismcontinuedtobeagreatcauseforworry.InspiteofallsuchpositivestepsfromManagement’sside,thecooperationandproductivityfromtheworkmenisn’tforthcomingasexpected.Whilst,PatancheruUnionreadilyacceptedManagement’sproposaltoscalebackthefestivalholidaysfromfifteentotwelve,butBirkuchiUnionpointblankrefused.BoththeCharterofDemandsi.e.2015and2018havebeenresolvedandtheworkmenreceivedtherevisedwagesasperagreementandappointmentof17nosofTraineeworkmenwasregularized.
WithrespecttotheCompany’sPatancheruUnit,therearenoIRissuesasondate.TheCompanyhadenteredintowageagreementwhichisvalidtillDecember2019.
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34. CONSERVATIONOFENERGY,TECHNOLOGYABSORPTION,FOREIGNEXCHANGEEARNINGSANDOUTGO InformationonConservationofEnergy,TechnologicalAbsorptionandForeignExchangeearningsandoutgoisappended
as“AnnexureE”inthisreport.35. EMPLOYEES/ MANAGERIAL REMUNERATION The statement containing the disclosure as required in accordance with the provisions of Section 197(12) of the
CompaniesAct2013readwithrule5(1)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014isannexedas“Annexure-F”andformsapartoftheBoardReport.
Further,noneoftheemployeesoftheCompanyare inreceiptofremunerationexceedingthe limitprescribedunderRule5(2)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014.Statementpursuantto Section 197(12) of the Companies Act 2013 read with rule 5(2) and 5(3) of the Companies (Appointment andRemunerationofManagerialPersonnel)Rules,2014alsoformspartofthisreportandisappendedas“AnnexureF”.
36. DIRECTORS’RESPONSIBILITYSTATEMENT PursuanttoSection134(5)oftheCompaniesAct,2013,theDirectorsconfirm: i) thatinpreparationoftheannualaccounts,theapplicableaccountingstandardshavebeenfollowedalongwiththe
properexplanationrelatingtomaterialdepartures; ii) thatsuchaccountingpolicieshavebeenselectedandappliedconsistentlyandsuchjudgmentsandestimateshave
beenmadethatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearended31stMarch,2019andoftheprofitoftheCompanyfortheyearendedonthatdate;
iii) thatproperandsufficientcarewastakenforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsofthisActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;
iv) thattheannualaccountshavebeenpreparedonagoingconcernbasis; v) thatproperinternalfinancialcontrolsareinplaceandtheinternalfinancialcontrolsareadequateandoperating
effectively; vi) thatpropersystemtoensurecompliancewiththeprovisionsofallapplicablelawsincludingapplicableSecretarial
Standardsareinplaceandsuchsystemsareadequateandoperatingeffectively;37. CORPORATESOCIALRESPONSIBILITY(CSR) ThebriefoutlineoftheCorporateSocialResponsibility(CSR)PolicyoftheCompanyandtheinitiativesundertakenbythe
CompanyonCSRactivitiesalongwithcompositionofCSRCommitteewithdetailparticularsofCSRmeetingheldduringtheyeararesetoutin“Annexure–G”ofthisreport.ThepolicyisavailableatthewebsiteoftheCompanyattheweb-link-www.assamcarbon.inundertheHeadingAboutUs→InvestorRelationsBoardPolicies.
38. MATERIAL CHANGES & COMMITMENTS AFFECTING FINANCIAL POSITION OF THE COMPANY, OCCURING AFTERBALANCE SHEET DATE
NomaterialchangesandcommitmentsaffectingthefinancialpositionoftheCompanyoccurredbetweentheendofthefinancialyeartowhichthisfinancialstatementrelatesandonthedateofthisreport.
39. NOTE OF APPRECIATION TheDirectorsexpressedtheirgratitude for theassistanceandco-operationthat theCompanyhas received fromthe
Central Government, State Governments of Assam and Telengana, other State Governments, Statutory Authorities,RegulatoryBodies,Customers,Bankers,SuppliersandShareholders.YourDirectorsalsowishtoplaceonrecordtheirappreciationfortheservicesbytheexecutives,staffandworkersoftheCompany.
Directors’Report(Contd.)
ForandonbehalfoftheBoardDate:30thApril,2019Place:Kolkata Sd/- Sd/-RegisteredOffice: KaliKrishnaBhattacharya RakeshHimatsingkaBirkuchi,Guwahati,Assam-781026 ManagingDirector ChairmanCIN:L23101AS1963PLC001206 (DIN:07011241) (DIN:00632156)
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AnnexuretotheBoardofDirectors’Report(Contd.)
“AnnexureA”
FORM NO. AOC -2[Pursuanttoclause(h)ofsub-section(3)ofsection134oftheActandRule8(2)oftheCompanies(Accounts)Rules,2014]
FormforDisclosureofparticularsofcontracts/arrangementsenteredintobythecompanywithrelatedpartiesreferredtoinsubsection(1)ofsection188oftheCompaniesAct,2013includingcertainarmslengthtransactionunderthirdprovisothereto.1. DetailsofcontractsorarrangementsortransactionsnotatArm’slengthbasis. TherewerenocontractsorarrangementsortransactionenteredintoduringtheyearendedMarch31,2019,whichwas
notatArmLengthbasis.2. DetailsofcontractsorarrangementsortransactionsatArm’slengthbasisfortheyearended31.03.2019areasfollows:
Name(s)oftheRelatedparty&NatureofRelationship
NatureofContracts/arrangements/transactions
DurationofContracts/
arrangements/transactions
SalientTermsoftheContractsorarrangementsor
transactionsincludingthevalue,ifany
Justificationforenteringinto
suchContractsorarrangementsortransactions
Date(s)ofapprovalbytheBoard
Amountin`
IndiaCarbonLtdMr.RakeshHimatsingka,NonExecutiveDirectorandChairmanoftheBoard,isinterested.
SaleandPurchaseof
Goods
April1st,2018-March31st,2019
OmnibusapprovalaccordedforSale,
Purchaseorsupplyofanygoodsormaterialandavailorrenderanyservicenotexceeding`5.00CrorefortheF.Y
2018-19
Purchaseofrawmaterialwhichistobeusedin
productionprocess
04.05.18,01.08.18,06.11.18,13.02.19
Purchaseofrawmaterialsamountingto`7.00Lacs
andsaleof` 7.84Lacs
ForandonbehalfoftheBoardDate:30thApril,2019Place:Kolkata Sd/- Sd/-RegisteredOffice: KaliKrishnaBhattacharya RakeshHimatsingkaBirkuchi,Guwahati,Assam-781026 ManagingDirector ChairmanCIN:L23101AS1963PLC001206 (DIN:07011241) (DIN:00632156)
“AnnexureB”
MANAGINGDIRECTOR’SCERTIFICATEONCOMPLIANCEWITHTHECODEOFCONDUCT
AsrequiredunderRegulation34(3)readwithPartDofScheduleVofSecuritiesandExchangeBoardofIndia(ListingObligationsand Disclosure Requirements) Regulations, 2015, I hereby declare that all the Board Members and Senior ManagementPersonneloftheCompanyhavecompliedwiththeCodeofConductoftheCompanyfortheyearended31stMarch2019.
ForandonbehalfoftheBoardofDirectorsSd/-
KaliKrishnaBhattacharyaKolkata ManagingDirectorDate:30thApril,2019 DIN:07011241
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AnnexuretotheBoardofDirectors’Report(Contd.)
“AnnexureC”
FormNo.MR-3SECRETARIALAUDITREPORT
ForTheFinancialYearEnded31stMarch,2019[Pursuanttosection204(1)oftheCompaniesAct,2013andRuleNo.9oftheCompanies(AppointmentandRemunerationPersonnel)Rules,2014]
To,TheMembers,AssamCarbonProductsLtd,Birkuchi,Guwahati-781026,Assam.
IhaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyASSAMCARBONPRODUCTSLTD(hereinaftercalledtheCompany).SecretarialAuditwasconductedinamannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.BasedonmyverificationoftheASSAMCARBONPRODUCTSLTD’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinion,theCompanyhas,duringtheauditperiodcoveringthefinancialyearendedon31stMarch,2019,compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbyASSAMCARBONPRODUCTSLTD(“theCompany”)forthefinancialyearendedon31stMarch,2019,accordingtotheprovisionsof:(i) TheCompaniesAct,2013/theCompanies(Amendment)Act,2017(theAct)andtherulesmadethereunderasamended
fromtimetotime;(ii) theSecuritiesContracts(Regulation)Act,1956(“SCRA”),rulesmadethereunderandtheRegulations,circulars,guidelines
issuedthereunderbytheSecuritiesandExchangeBoardofIndia(“SEBI”)asmaybeamendedfromtimetotime;(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunderandasmaybeamendedfromtimeto
time;(iv) ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereunderasmaybeamendedfromtime
totimetotheextentofForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowingsandasmaybeamendedfromtimetotime;
(v) ThefollowingRegulations,Circulars,GuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’)(asmaybeamendedfromtimetotime):-
(a) TheSecuritiesandExchangeBoardofIndia(ListingObligationsAndDisclosureRequirements)Regulations,2015(asamendedfromtimetotime);
(b) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011(asamendedfromtimetotime);
(c) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015(asamendedfromtimetotime);
(d) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018(asmaybeamendedfromtimetotime);-NotApplicableastherewasnoreportableevent;
(e) TheSecuritiesandExchangeBoardofIndia(EmployeeStockOptionSchemeandEmployeeStockPurchaseScheme)Guidelines,1999/SecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014(asmaybeamendedfromtimetotime);-NotApplicableastherewasnoreportableevent;
(f) The Securities andExchangeBoardof India (Issueand ListingofDebt Securities)Regulations, 2008asmaybeamendedfromtimetotime;-NotApplicableastherewasnoreportableevent;
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AnnexuretotheBoardofDirectors’Report(Contd.)
(g) TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesActanddealingwithclient(asmaybeamendedfromtimetotime);-NotApplicableastherewasnoreportableevent;
(h) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009(asmaybeamendedfromtimetotime);-NotApplicableastherewasnoreportableevent;
(i) SecuritiesandExchangeBoardofIndia(IssueandListingofNon-ConvertibleandRedeemablePreferenceShares)Regulations,2013(asmaybeamendedfromtimetotime);
(j) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,2018(asmaybeamendedfromtimetotime);-NotApplicableastherewasnoreportableevent;and
(k) AnyotherRegulations/Rules/Notifications/Circulars/Amendmentsetc.asissuedbytheSecuritiesandExchangeBoardofIndiafromtimetotime;
(vi) Otherlaws/acts/rulesasmaybeapplicablespecificallytothecompany: (a) PaymentofBonusAct,1965asmaybeamendedfromtimetotime; (b) PaymentofGratuityAct,1972asmaybeamendedfromtimetotime; (c) PaymentofWagesAct,1936asmaybeamendedfromtimetotime; (d) TradeUnionsAct,1926asmaybeamendedfromtimetotime; (e) Workmen’sCompensationAct,1923asmaybeamendedfromtimetotime; (f) Employees’ProvidentFundsandMiscellaneousProvisionsAct,1952asmaybeamendedfromtimetotime; (g) Employees’StateInsuranceAct,1948asmaybeamendedfromtimetotime; (h) MinimumWagesAct,1948anditsRulesasmaybeamendedfromtimetotime; (i) TheFactoriesAct,1948&itsalliedStateLaws&Rulesandasmaybeamendedfromtimetotime; (j) PollutionControlBoardClearanceasmaybeamendedfromtimetotime; (k) Air(PreventionandControlofPollution)Act,1981andtherulesandstandardsmadethereunder. (l) Water(PreventionandControlofPollution)Act,1974andWater(PreventionandControlofPollution)Rules,1975 (m) EnvironmentProtectionAct,1986andtherules,notificationsissuedthereunder. (n) CentralExciseAct,1944anditsRulesasmaybeamendedfromtimetotime; (o) IncomeTaxAct,1961anditsRulesasmaybeamendedfromtimetotime; (p) CentralSalesTaxAct,1956anditsRulesasmaybeamendedfromtimetotime; (q) VATActanditsRulesasmaybeamendedfromtimetotime; (r) ProfessionTaxanditsRulesasmaybeamendedfromtimetotime; (s) ShopsandEstablishmentsActanditsRulesasmaybeamendedfromtimetotime; (t) IndustrialDisputesAct1947anditsRulesasmaybeamendedfromtimetotime; (u) ServiceTaxActanditsRulesasmaybeamendedfromtimetotime; (v) ContractLabor(RegulationandAbolition)Act,1970asmaybeamendedfromtimetotime. (w) CentralGoodsandServicesTaxAct,2017&itsRules/theIntegratedGoodsandServicesTaxAct,2017&itsRules
thereunderincludinganyCirculars/Notificationsissuedfromtimetotime.IhavealsoexaminedtherequiredlicensesspecifictotheCompanyandfoundthemdulyuptodate/appliedforrenewal,asthecasemaybe.Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:(i) SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndiawithrespecttoBoardandGeneralMeetings.(ii) TheListingAgreementsenteredintobytheCompanywiththeCalcuttaStockExchangeLimitedreadwiththeSecurities
andExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.During theperiodunder review theCompanyhas compliedwith theprovisionsof theAct,Rules,Regulations,Guidelines,Standards,etc.mentionedabove.
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AnnexuretotheBoardofDirectors’Report(Contd.)
Ifurtherreportthat:TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectors,IndependentDirectorsandWomenDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.Majoritydecision iscarriedthroughwhile thedissentingmembers’views, ifany,arecapturedandrecordedaspartof theminutes.Ifurtherreportthatthereareadequatesystemsandprocessesinthecompanycommensuratewiththesizeandoperationsofthecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.IfurtherreportthatCompanyhaspassedspecialresolutionpursuanttoSection197,198,ScheduleVandotherapplicableprovisions,ifany,oftheCompaniesAct,2013andtherulesframedthereunder,includinganystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforceandSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,andhadobtainedtheconsentoftheShareholdersforpaymentofcommissionupto1%ofthenetprofitsoftheCompany,computedinthemannerlaiddowninSection198oftheCompaniesAct,2013,fromthefinancialyear2017-2018andonwardsuntilotherwiserepudiatedbytheBoardofDirectors,toMr.RakeshHimatsingka,(DIN:00632156)Non-ExecutiveChairmanoftheBoard,inadditiontothesittingfeesforattendingthemeetingoftheBoardofDirectors/Committeesthereofandanyotherexpensesincurredforofficial/businesspurposesonly.IfurtherreportthatCompanyhaspassedspecialresolutionpursuantto190,196,197,198and203readalongwithScheduleVandotherapplicableprovisionsandRules,ifany,oftheCompaniesAct,2013(includinganystatutorymodificationsorre-enactmentthereof),andhadobtainedtheapprovaloftheshareholdersoftheCompany,forthere-appointmentofMr.KKBhattacharya(DIN:07011241)astheManagingDirectoroftheCompanyforaperiodof2(two)years,from9thOctober2018to8thOctober,2020.
Sd/- RajatKumarJalan PractisingCompanySecretaryPlace:Kolkata CPNo.:5705Date:30thApril,2019 ACSNo.:14895
Annual Report 2018-2019Assam Carbon Products Limited 26
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SecretarialCompliancereportofAssamCarbonProductsLimited,
Birkuchi,Guwahati,Assam-781026fortheyearended31stMarch,2019
I,ShriRajatKumarJalan,CompanySecretaryinPractice,haveexamined:
(a) allthedocumentsandrecordsmadeavailabletousandexplanationprovidedbyAssamCarbonProductsLimited (“thelistedentity”),
(b) thefilings/submissionsmadebythelistedentitytothestockexchanges,
(c) websiteofthelistedentitywhichishttp://www.assamcarbon.in/
(d) allotherdocument/filing,asmayberelevant,whichhasbeenreliedupontomakethiscertification, fortheyearended31stMarch,2019(“ReviewPeriod”),inrespectofcompliancewiththeprovisionsof:
(a) the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and the Regulations, circulars,guidelinesissuedthereunder;and
(b) theSecuritiesContracts(Regulation)Act,1956(“SCRA”),rulesmadethereunderandtheRegulations,circulars,guidelinesissuedthereunderbytheSecuritiesandExchangeBoardofIndia(“SEBI”);
ThespecificRegulations,whoseprovisionsandthecirculars/guidelinesissuedthereunder,havebeenexamined,include:-
(a) SecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015;
(b) SecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018;
(c) SecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;
(d) SecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,2018;
(e) SecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014;
(f) SecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;
(g) SecuritiesandExchangeBoardof India (Issueand ListingofNon-ConvertibleandRedeemablePreferenceShares)Regulations,2013;
(h) SecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;
(i) All other regulations asmaybe applicable and circulars/ guidelines issued thereunder; andbasedon theaboveexamination,I/Weherebyreportthat,duringtheReviewPeriod:
(a) The listedentityhascompliedwiththeprovisionsoftheaboveRegulationsandcirculars/guidelinesissuedthereunder,exceptinrespectofmattersspecifiedbelow:-
Sr.No. ComplianceRequirement(Regulations/Circulars/Guidelinesincludingspecificclause)
Deviations Observations/RemarksofthePracticingCompanySecretary
NOTAPPLICABLE
(b) The listed entity hasmaintained proper records under the provisions of the above Regulations andcirculars/guidelinesissuedthereunderinsofarasitappearsfrommy/ourexaminationofthoserecords.
(c) Thefollowingarethedetailsofactionstakenagainstthelistedentity/itspromoters/directors/materialsubsidiarieseitherbySEBIorbyStockExchanges(includingundertheStandardOperatingProceduresissuedbySEBIthroughvariouscirculars)undertheaforesaidActs/Regulationsandcirculars/guidelinesissuedthereunder:
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 27
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Sr.No.
ActionTakenby Detailsofviolation
Detailsofactiontakene.g.fines,warningletter,debarment,etc.
Observations/remarksofthePracticingCompanySecretary,(ifany)
NOTAPPLICABLE
(d) The listed entity has taken the following actions to complywith theobservationsmade in previousreports:
Sr.No.
ObservationsofthePracticingCompanySecretaryinthe
previousreports
Observationsmadeinthesecretarialcompliancereportfortheyearended
31stMarch,2019
Actionstakenbythelistedentity,
ifany
CommentsofthePracticingCompanySecretaryontheactions
takenbythelistedentityNOTAPPLICABLE
Sd/- RajatKumarJalan PractisingCompanySecretaryPlace:Kolkata CPNo.:5705Date:30thApril,2019 ACSNo.:14895
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 28
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“AnnexureD”
FormNo.MGT-9EXTRACTOFANNUALRETURN
asonthefinancialyearendedon31stMarch,2019[Pursuanttosection92(3)oftheCompaniesAct,2013andrule12(1)ofthe
Companies(ManagementandAdministration)Rules,2014,asamendedfromtimetotime]
I. REGISTRATION & OTHER DETAILS :
1. CIN L23101AS1963PLC0012062. RegistrationDate 17thApril19633. NameoftheCompany ASSAM CARBON PRODUCTS LTD4. Category/Sub-categoryoftheCompany CompanyLimitedbyShares5. AddressoftheRegisteredoffice&contactdetails BIRKUCHI,
GUWAHATI,ASSAMINDIA–781026
6. Whetherlistedcompany Yes7. Name,Address&contactdetailsof theRegistrar&
TransferAgent,ifany.CBManagementServices(P)Ltd,P-22,BondelRoad,Kolkata-700019PhoneNo.:40116700/17/18.FaxNo.:(033)40116739,Email:[email protected]
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated)
Sl. No.
NameandDescriptionofmainproducts/services
NICCodeoftheProduct/service
%tototalturnoverofthecompany
1 CARBONBLOCKS NA 13%2 CARBONBRUSH NA 45%3 MECHANICALANDSPECIALCARBON
COMPONENTSNA 42%
III. PARTICULARSOFHOLDING,SUBSIDIARYANDASSOCIATECOMPANIES
Sl. No.
NameandAddressoftheCompany
CIN/ Holding/Subsidiary/Associate
%ofsharesheld Applicablesection
1 NIL NA NA NA NA
AnnexuretotheBoardofDirectors’Report(Contd.)
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IV. SHAREHOLDINGPATTERN(EquityShareCapitalBreakupaspercentageofTotalEquity) Category-wiseShareHoldingCategoryof Shareholder
Numberofsharesheldatthebeginningoftheyear
Numberofsharesheldattheendoftheyear %changeduringthe
yearDemat Physical Total %oftotalshares
Demat Physical Total %oftotalshares
A.Promoters (1)Indian (a)Individual/HUF 2049300 0 2049300 74.37 2049300 0 2049300 74.37 0.00(b)CentralGovernment 0 0 0 0.00 0 0 0 0.00 0.00(c)StateGovernment(s) 0 0 0 0.00 0 0 0 0.00 0.00(d)BodiesCorporate 0 0 0 0.00 0 0 0 0.00 0.00(e)Banks/FI 0 0 0 0.00 0 0 0 0.00 0.00(f)AnyOther 0 0 0 0.00 0 0 0 0.00 0.00SubTotal(A)(1) 2049300 0 2049300 74.37 2049300 0 2049300 74.37 0.00(2)Foreign(a)NRIs-Individuals 0 0 0 0.00 0 0 0 0.00 0.00(b)Other-Individuals 0 0 0 0.00 0 0 0 0.00 0.00(c)BodiesCorporate 0 0 0 0.00 0 0 0 0.00 0.00(d)Banks/FI 0 0 0 0.00 0 0 0 0.00 0.00(e)AnyOther 0 0 0 0.00 0 0 0 0.00 0.00SubTotal(A)(2) 0 0 0 0.00 0 0 0 0.00 0.00TotalShareholdingofPromoter(A)=(A)(1)+(A)(2)
2049300 0 2049300 74.37 2049300 0 2049300 74.37 0.00
B.Publicshareholding1.Institutions(a)MutualFunds 0 0 0 0.00 0 0 0 0.00 0.00(b)Banks/FI 1950 100050 102000 3.70 50 100050 100100 3.63 -0.07(c)CentralGovernment 0 0 0 0.00 0 0 0 0.00 0.00(d)StateGovernment(s) 0 0 0 0.00 0 0 0 0.00 0.00(e)VentureCapitalFunds 0 0 0 0.00 0 0 0 0.00 0.00(f)InsuranceCompanies 0 0 0 0.00 0 0 0 0.00 0.00(g)FIIs 0 0 0 0.00 0 0 0 0.00 0.00(h)ForeignVentureCapitalFunds 0 0 0 0.00 0 0 0 0.00 0.00(i)Other(specify) 0 0 0 0.00 0 0 0 0.00 0.00Sub-Total(B)(1) 1950 100050 102000 3.70 50 100050 100100 3.63 -0.072.Non-institutions(a)BodiesCorporate(i)Indian 11358 12100 23458 0.85 20953 12100 33053 1.20 0.35(ii)Overseas 0 0 0 0.00 0 0 0 0.00 0.00(b)Individuals(i)Individualshareholdersholdingnominalsharecapitalupto`1lakh
226813 194531 421344 15.29 227102 179897 406999 14.77 -0.52
(ii)Individualshareholdersholdingnominalsharecapitalinexcessof` 1lakh.
157073 0 157073 5.70 157423 0 157423 5.71 0.01
(c)Others(specify) (c-i)Non-ResidentIndividuals 1925 350 2275 0.08 2025 350 2375 0.09 0.01(c-ii)LLP 0 0 0 0.00 6200 0 6200 0.22 0.22(c-iii)Trust 150 0 150 0.01 150 0 150 0.01 0.00Sub-Total(B)(2) 397319 206981 604300 21.93 413853 192347 606200 22.00 0.07TotalPublicShareholding(B)=(B)(1)+(B)(2)
399269 307031 706300 25.63 413903 292397 706300 25.63 0.00
C.SharesheldbyCustodiansforGDRs&ADRs
0 0 0 0.00 0 0 0 0.00 0.00
GRANDTOTAL(A)+(B)+(C) 2448569 307031 2755600 100.00 2463203 292397 2755600 100.00 0.00
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 30
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B) ShareholdingofPromoters-
Sl. No.
Shareholder’sName Shareholdingatthebeginningoftheyear Shareholdingattheendoftheyear %changeinshareholdingduringthe
year
No.ofShares
%oftotalSharesoftheCompany
%ofSharesPledged /
encumberedtototalshares
No.ofShares
%oftotalSharesoftheCompany
%ofSharesPledged /
encumberedtototalshares
1 Mr.RakeshHimatsingka 796452 28.90 NIL 796452 28.90 NIL 0.002 Mr.ShauryaVeerHimatsingka 887823 32.22 NIL 887823 32.22 NIL 0.003 Mrs.AnitaHimatsingka 275025 9.98 NIL 275025 9.98 NIL 0.004 Ms.MaalikaHimatsingka 90000 3.27 NIL 90000 3.27 NIL 0.00
C) ChangeinPromoters’Shareholding(pleasespecify,ifthereisnochange)
Sl.No.
Particulars Shareholdingatthebeginningoftheyear
CumulativeShareholdingduringtheyear
No.ofshares %oftotalsharesoftheCompany
No.ofshares %oftotalsharesoftheCompany
1. MR. RAKESH HIMATSINGKAAtthebeginningoftheyear 796452 28.90 796452 28.90DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
Nil Nil Nil Nil
Attheendoftheyear - - 796452 28.902. MR. SHAURYA VEER HIMATSINGKA
Atthebeginningoftheyear 887823 32.22 887823 32.22DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
Nil Nil Nil Nil
Attheendoftheyear - - 887823 32.223. MRS. ANITA HIMATSINGKA
Atthebeginningoftheyear 275025 9.98 275025 9.98DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
Nil Nil Nil Nil
Attheendoftheyear - - 275025 9.984. MS. MAALIKA HIMATSINGKA
Atthebeginningoftheyear 90000 3.27 90000 3.27DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
Nil Nil Nil Nil
Attheendoftheyear - - 90000 3.27D) ShareholdingPatternoftoptenShareholders:(OtherthanDirectors,PromotersandHoldersofGDRsandADRs):
Sl. No.
ForEachoftheTop10Shareholders Shareholdingatthebeginningoftheyear
CumulativeShareholdingduringtheyear
No.ofshares %oftotalsharesoftheCompany
No.ofshares %oftotalsharesoftheCompany
1. AssamIndustrialDevelopmentCorporationLtd.Atthebeginningoftheyear 100000 3.63 100000 3.63DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
- - - -
Attheendoftheyear - - 100000 3.63
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 31
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Sl. No.
ForEachoftheTop10Shareholders Shareholdingatthebeginningoftheyear
CumulativeShareholdingduringtheyear
No.ofshares %oftotalsharesoftheCompany
No.ofshares %oftotalsharesoftheCompany
2. MahendraGirdharilalAtthebeginningoftheyear 65249 2.37 65249 2.37Increase/Purchase/04.05.2018 150 0.01 65399 2.37Increase/Purchase/20.07.2018 150 0.01 65549 2.38Attheendoftheyear - - 65549 2.38
3. PPZibiJoseAtthebeginningoftheyear 55000 2.00 55000 2.00Increase/Purchase/27.07.2018 50 0 55050 2.00Attheendoftheyear - - 55050 2.00
4. PremChandGoenkaAtthebeginningoftheyear 25924 0.94 25924 0.94DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
- - - -
Attheendoftheyear - - 25924 0.945. NarendraKumarBapna
Atthebeginningoftheyear 10900 0.40 10900 0.40DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
- - - -
Attheendoftheyear - - 10900 0.406. ShriParasramSecuritiesPvtLtd
Atthebeginningoftheyear 10750 0.39 10750 0.39DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
- - - -
Attheendoftheyear - - 10750 0.397. RajaKakati
Atthebeginningoftheyear 10000 0.36 10000 0.36DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
- - - -
Attheendoftheyear - - 10000 0.368. AsitBaranSarkar
Atthebeginningoftheyear 5600 0.20 5600 0.20Decrease/Sale/Transfer10.08.2018 - - 5600 0.20Attheendoftheyear - - 0 0
9. JyotsnaRajgarhiaAtthebeginningoftheyear 5350 0.19 5350 0.19DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
- - - -
Attheendoftheyear - - 5350 0.1910. VivekSheelAggarwal
Atthebeginningoftheyear 4300 0.16 4300 0.16DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
- - - -
Attheendoftheyear - - 4300 0.1611. IndraKumarBagri
Atthebeginningoftheyear 6108 0.22 6108 0.22
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 32
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Sl. No.
ForEachoftheTop10Shareholders Shareholdingatthebeginningoftheyear
CumulativeShareholdingduringtheyear
No.ofshares %oftotalsharesoftheCompany
No.ofshares %oftotalsharesoftheCompany
Decrease/Sale/Transfer25.05.2018 200 0.01 5908 0.21Increase/Purchase01.06.2018 500 0.02 6408 0.23Decrease/Sale/Transfer22.06.2018 400 0.01 6008 0.22Decrease/Sale/Transfer17.08.2018 300 0.01 5708 0.21Decrease/Sale/Transfer31.08.2018 200 0.01 5508 0.2Decrease/Sale/Transfer14.09.2018 400 0.01 5108 0.19Decrease/Sale/Transfer19.10.2018 100 0 5008 0.18Decrease/Sale/Transfer18.01.2019 250 0.01 4758 0.17Attheendoftheyear - - 4758 0.17
12. ShriParasramIndustriesPvt.Ltd.Atthebeginningoftheyear 3500 0.13 3500 0.13Decrease/Sale/Transfer06.04.2018 500 0.02 3000 0.11Increase/Purchase29.03.2019 8570 0.31 11570 0.42Attheendoftheyear - - 11570 0.42
13. 3AFinancialServicesLtdAtthebeginningoftheyear 2800 0.1 2800 0.1Increase/Purchase08.06.2018 675 0.02 3475 0.13Increase/Purchase29.06.2018 400 0.01 3875 0.14Increase/Purchase13.07.2018 100 0 3975 0.14Increase/Purchase27.07.2018 100 0 4075 0.15Increase/Purchase03.08.2018 100 0 4175 0.15Increase/Purchase10.08.2018 400 0.01 4575 0.17Increase/Purchase17.08.2018 100 0 4675 0.17Increase/Purchase07.09.2018 200 0.01 4875 0.18Increase/Purchase11.09.2018 550 0.02 5425 0.2Increase/Purchase19.10.2018 200 0.01 5625 0.2Increase/Purchase26.10.2018 450 0.02 6075 0.22Decrease/Sale/Transfer02.11.2018 350 0.01 5725 0.21Decrease/Sale/Transfer16.11.2018 500 0.02 5225 0.19Increase/Purchase23.11.2018 500 0.02 5725 0.21Increase/Purchase30.11.2018 400 0.01 6125 0.22Decrease/Sale/Transfer07.12.2018 250 0.01 5875 0.21Increase/Purchase21.12.2018 200 0.01 6075 0.22Increase/Purchase11.01.2019 550 0.02 6625 0.24Decrease/Sale/Transfer25.01.2019 50 0 6575 0.24Decrease/Sale/Transfer15.02.2019 25 0 6550 0.24Decrease/Sale/Transfer01.03.2019 25 0 6525 0.24Attheendoftheyear - - 6525 0.24
14 MaynaHShahAtthebeginningoftheyear 0 0 0 0Increase/Purchase25.05.2018 200 0.01 200 0.01Increase/Purchase01.06.2018 500 0.02 700 0.03Increase/Purchase08.06.2018 200 0.01 900 0.03Increase/Purchase22.06.2018 400 0.01 1300 0.05Increase/Purchase29.06.2018 50 0 1350 0.05Increase/Purchase20.07.2018 3600 0.13 4950 0.18Increase/Purchase27.07.2018 270 0.01 5220 0.19Increase/Purchase03.08.2018 400 0.01 5620 0.21Increase/Purchase24.08.2018 50 0 5670 0.21Decrease/Sale/Transfer21.09.2018 100 0 5570 0.2Increase/Purchase21.12.2018 250 0.01 5820 0.21Increase/Purchase18.01.2018 550 0.02 6370 0.23Attheendoftheyear - - 6370 0.23
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 33
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E) ShareholdingofDirectorsandKeyManagerialPersonnel:
Sl. No.
ShareholdingofeachDirectorsandeachKeyManagerialPersonnel Shareholdingatthebeginningoftheyear
CumulativeShareholdingduringtheYear
No.ofshares
%oftotalsharesoftheCompany
No.ofshares
%oftotalsharesoftheCompany
1 Mr.RakeshHimatsingka-ChairmanAtthebeginningoftheyear 796452 28.90 796452 28.90DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
Nil Nil Nil Nil
Attheendoftheyear - - 796452 28.902 Mr.KKBhattacharya-ManagingDirector
Atthebeginningoftheyear 0 0 0 0DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
0 0 0 0
Attheendoftheyear 0 0 0 03 Mrs.AnitaHimatsingka-Director
Atthebeginningoftheyear 275025 9.98 275025 9.98DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
Nil Nil Nil Nil
Attheendoftheyear - - 275025 9.984 Ms.MaalikaHimatsingka-Director
Atthebeginningoftheyear 90000 3.27 90000 3.27DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
Nil Nil Nil Nil
Attheendoftheyear - - 90000 3.275 Mr.SKLhila-IndependentDirector
Atthebeginningoftheyear 0 0 0 0DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
0 0 0 0
Attheendoftheyear 0 0 0 06 Mrs.RupanjanaDe-IndependentDirector
Atthebeginningoftheyear 0 0 0 0DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
0 0 0 0
Attheendoftheyear 0 0 0 07 Mr.ASaikia-Nominee Director
Atthebeginningoftheyear 0 0 0 0DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
0 0 0 0
Attheendoftheyear 0 0 0 08 Mr.SandipModi- IndependentDirector
Atthebeginningoftheyear 0 0 0 0DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
0 0 0 0
Attheendoftheyear 0 0 0 0
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 34
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Sl. No.
ShareholdingofeachDirectorsandeachKeyManagerialPersonnel Shareholdingatthebeginningoftheyear
CumulativeShareholdingduringtheYear
No.ofshares
%oftotalsharesoftheCompany
No.ofshares
%oftotalsharesoftheCompany
9 Mr.SusheelKumarSharma- DirectorAtthebeginningoftheyear 2120 0.08 2120 0.08DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
0 0 0 0
Attheendoftheyear - - 2120 0.0810 Mr.PijushBysack-ChiefFinancialOfficer
Atthebeginningoftheyear 0 0 0 0DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
0 0 0 0
Attheendoftheyear 0 0 0 011 Mr.SChakraborty-CompanySecretary
Atthebeginningoftheyear 0 0 0 0DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc.):
0 0 0 0
Attheendoftheyear 0 0 0 0
V) INDEBTEDNESS-IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment.(in`‘000) SecuredLoans
excludingdeposits
UnsecuredLoans
Deposits Total Indebtedness
Indebtednessatthebeginningofthefinancialyear
i) PrincipalAmount Nil Nil Nil Nil
ii) Interestduebutnotpaid Nil Nil Nil Nil
iii) Interestaccruedbutnotdue Nil Nil Nil Nil
Total(i+ii+iii) Nil Nil Nil Nil
ChangeinIndebtednessduringthefinancialyear Nil Nil Nil Nil
*Addition Nil 49500 Nil 49500
*Reduction Nil Nil Nil Nil
NetChange Nil 49500 Nil 49500
Indebtednessattheendofthefinancialyear
i) PrincipalAmount Nil 49500 Nil 49500
ii) Interestduebutnotpaid Nil Nil Nil Nil
iii) Interestaccruedbutnotdue Nil 358 Nil 358
Total(i+ii+iii) Nil 49858 Nil 49858
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 35
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VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-
A. RemunerationtoManagingDirector,Whole-timeDirectorsand/orManager: (In` )
Sl. No.
ParticularsofRemuneration NameofMD/WTD/Manager
TotalAmount (in`)
MrKKBhattacharya
1 Grosssalary
(a) Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961
5,28,000 5,28,000
(b) Valueofperquisitesu/s17(2)Income-taxAct,1961 5,34,168 5,34,168
(c) Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961
NIL NIL
2 StockOption NIL NIL
3 SweatEquity NIL NIL
4 Commission-as%ofprofit-others,specify…
NIL NIL
5 Others,pleasespecify NIL NIL
Total(A) 10,62,168 10,62,168
CeilingaspertheAct RemunerationiswithinthelimitsaslaiddownundertheCompaniesAct,2013&itsCorrespondingRules&Schedules.
B. Remunerationtootherdirectors (In` )
Sl. No.
NameofDirectors ParticularsofRemuneration TotalAmount (in`)IndependentDirectors FeeforattendingBoard/
CommitteeMeetingsCommission Others,please
specify1 MrSKLhila 1,26,000 NIL NIL 1,26,000
2 MrsRupanjanaDe 1,33,000 NIL NIL 1,33,000
NonExecutiveDirectors
3 Mr.RakeshHitamsingka 1,96,000 6,34,000 NIL 8,30,000
4 Mrs.AnitaHimatsingka 1,68,000 NIL NIL 1,68,000
5 Ms.MaalikaHimatsingka 40,000 NIL NIL 40,000
TotalManagerialRemunerationtootherDirectors(1+2+3+4)
6,63,000 6,34,000 NIL 12,97,000
OverallCeilingaspertheAct RemunerationiswithinthelimitsaslaiddownundertheCompaniesAct,2013&itsCorrespondingRules&Schedules.
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 36
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C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD (in`)
Sl. No.
ParticularsofRemuneration KeyManagerialPersonnelCS CFO CEO Total
1 Grosssalary (a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961
5,86,752 16,68,960 NIL 22,55,712
(b)Valueofperquisitesu/s17(2)Income-taxAct,1961
NIL NIL NIL NIL
(c)Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961
NIL NIL NIL NIL
2 StockOption NIL NIL NIL NIL3 SweatEquity NIL NIL NIL NIL4 Commission NIL NIL NIL NIL -as%ofprofit NIL NIL NIL NIL others,specify… NIL NIL NIL NIL5 Others,pleasespecify NIL NIL NIL NIL Total 5,86,752 16,68,960 NIL 22,55,712
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type SectionoftheCompaniesAct
Brief Description
DetailsofPenalty/Punishment/
Compoundingfeesimposed
Authority [RD / NCLT/
COURT]
Appealmade,ifany(giveDetails)
A. COMPANYPenalty NIL NIL NIL NIL NILPunishment NIL NIL NIL NIL NILCompounding NIL NIL NIL NIL NILB. DIRECTORSPenalty NIL NIL NIL NIL NILPunishment NIL NIL NIL NIL NILCompounding NIL NIL NIL NIL NILC. OTHER OFFICERS IN DEFAULTPenalty NIL NIL NIL NIL NILPunishment NIL NIL NIL NIL NILCompounding NIL NIL NIL NIL NIL
ForandonbehalfoftheBoardDate:30thApril,2019Place:Kolkata Sd/- Sd/-RegisteredOffice: KaliKrishnaBhattacharya RakeshHimatsingkaBirkuchi,Guwahati,Assam-781026 ManagingDirector ChairmanCIN:L23101AS1963PLC001206 (DIN:07011241) (DIN:00632156)
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 37
®
ForandonbehalfoftheBoardDate:30thApril,2019Place:Kolkata Sd/- Sd/-RegisteredOffice: KaliKrishnaBhattacharya RakeshHimatsingkaBirkuchi,Guwahati,Assam-781026 ManagingDirector ChairmanCIN:L23101AS1963PLC001206 (DIN:07011241) (DIN:00632156)
“AnnexureE”
A. ConservationofEnergy (a) EnergyConservationMeasures : TheCompanyisveryconsciousaboutEnergyConservationwhichoccupiesanimportantplace,whilechoosingnew
plantandmachineries. CompanyisalsorapidlymovingtowardsallLEDfixturestosaveenergy.B. TechnologyAbsorption ResearchandDevelopment(R&D) 1. SpecificareasinwhichR&Dcarriedoutbythecompany Indigenizationofrawmaterialsstartedintheearlieryears,continuedduringtheyear. 2. BenefitsderivedasaresultoftheaboveR&D Benefitsisbeingderivedintermsofbetterquality.
3. Futureplanofaction • ContinuedIndigenizationofimportedrawmaterials; • DevelopmentofNewMaterialforNewBusinessAreas,suchasforRadialBearings,AutoSectoretc; • ImproveexistingGradestomeetmoredemandingOperationalconditions. 4. ExpenditureonR&D (`Inlacs) a. Capital - b. Recurring 19.58 c. Total 19.58 d. TotalR&Dexpenditureasapercentageoftotalturnover 0.38 Technologyabsorption,adaptationandinnovation TheCompanyhasfullyabsorbedthetechnologyonexistingproductline.C. Foreignexchangeearningsandoutgo: a. Activitiesrelatingtoexports;initiativestakentoincreaseexports;developmentofnewexportmarketsforproducts
andservices;andexportplans:- Duringtheyear,exportsweremadetoEuropeandtheFarEast,forMechanicalCarbonProductsaswellasElectrical
Carbonproducts.Effortstoincreaseexportsareongoing. b. Totalforeignexchangeusedandearned (`InLacs) TotalForeignExchangeused 13.20 TotalForeignExchangeearned 27.33
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 38
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“Annexure-F”
DETAILSPERTAININGTOREMUNERATIONASREQUIREDUNDERSECTION197(12)OFCOMPANIESACT,2013READWITHRULE5(1)OFTHECOMPANIES(APPOINTMENTANDREMUNERATIONOFMANAGERIALPERSONNEL)RULES,2014i)ThepercentageincreaseinremunerationofeachDirector,ChiefFinancialOfficerandCompanySecretaryduringthefinancialyear2018-19,ratioofremunerationofeachDirectortothemedianremunerationofeachKeyManagerialPersonnel(KMP)againsttheperformanceoftheCompanyareasunder:
Sl. No.
NameoftheDirector/KMPandDesignation
RemunerationofDirector/KMPforF.Y
2018-19(in`)
%increaseinRemunerationofeachDirector/KMPintheFinancialYear2018-19
RatioofremunerationofeachDirector/KMPtomedianremunerationof
employees1. Mr.RHimatsingka,
Non-ExecutiveChairman8,30,000 7.79% 2.08:1
2. MrKKBhattacharya,MD 10,62,168 -36.01% 2.66:13. Mrs.AnitaHimatsingka,
Non-ExecutiveDirector1,68,000 273.33% 0.42:1
3. Ms.MaalikaHimatsingka,Non-ExecutiveDirector
40,000 60% 0.10:1
4. MrSKLhila,Non-Executive&Independent
1,26,000 61.53% 0.32:1
5. MrsRupanjanaDe,Non-Executive&Independent
1,33,000 82.19% 0.33:1
6. Mr.SubhenduChakraborty,CS 5,86,752 10.37% 1.47:17. Mr.PBysack,CFO 16,68,960 5.41% 4.19:1
Note:1. CalculationofmedianistakenonthefiguresasattheendofFinancialYear.2. i) TheMedianRemunerationofEmployeesasonMarch31,2019was`3,98,568andasonMarch31,2018was
`3,58,428. ii) Thepercentageincreaseinthemedianremunerationofemployeeswas11.19%duringthefinancialyear. iii) Therewere250permanentemployeesontherollsofCompanyasonMarch31,2019. iv) TheCompanyhasearnedaprofitaftertaxduringthefinancialyear2018-19amountingof`491.92Lacscompared
toaprofitofRs565.53Lacsduringthefinancialyear2017-18. v) Averagepercentageincreasemadeinthesalariesofemployeesotherthanthemanagerialpersonnelinthelast
financialyearwas21.05%,whereastheaveragepercentageincreasemadeinthesalariesofmanagerialpersonnelis12.82%.FurthertherewasnoexceptionalincreaseinthesalaryduringtheFinancialYearended31.03.2019ascomparedabove.
vi) It isherebyaffirmedthat the remunerationpaidduring theyearended31stDayofMarch,2019 isasper theRemunerationPolicyoftheCompany.
AnnexuretotheBoardofDirectors’Report(Contd.)
Annual Report 2018-2019Assam Carbon Products Limited 39
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AnnexuretotheBoardofDirectors’Report(Contd.)
i)Inform
ation
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156)
Annual Report 2018-2019Assam Carbon Products Limited 40
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AnnexuretotheBoardofDirectors’Report(Contd.)
“Annexure-G”
REPORTONCORPORATESOCIALRESPONSIBILITY(CSR)INITIATIVES
1. AbriefoutlineoftheCompany’sCSRpolicyincludingOverviewofprojects/programsundertaken: TheCompanyhasframedCorporateSocialResponsibility(CSR)PolicyinaccordancewiththeprovisionsoftheCompanies
Act,2013readwiththeCompanies(CorporateSocialResponsibility)Rules,2014,asmaybeamendedfromtimetotime.ItenumeratesthelistofactivitiesforchannelizingtheamountofexpendituretowardsCorporateSocialResponsibilitybytheCompany.
CSRCommitteehasproposedtospendmorethan2%ofCompany’saveragenetprofitsmadeduringthe3immediatelyprecedingfinancialyearsinManavKalyanTrustwithanestablishedtrackrecordofmorethan3yearsandIndianCouncilofChildwelfarewithanestablishedtrackrecordofmorethan3years.
TheCSRPolicyoftheCompanyasapprovedbytheBoardofDirectorsisavailableontheCompany’swebsiteattheweblinkwww.assamcarbon.in/
2. ThecompositionoftheCSRCommitteeisasunder:
Name Category Position
Mrs.RupanjanaDe NonExecutiveIndependentDirector Chairperson
Mrs.AnitaHimatsingka NonExecutiveNon-IndependentDirector Member
Mr.KaliKrishnaBhattacharya ManagingDirector Member
3. Duringtheyearended31stMarch2019,theCommitteemet2(two)timeson1stAugust2018and13thFebruary2019.4. AverageNetProfitoftheCompanyduringlast3FinancialYears:`385.74Lacs.5. PrescribedCSRExpenditure(twopercentoftheamountasinitem4above):7.72Lacs.6. DetailsofCSRspentduringthefinancialyear: (a) Totalamounttobespentfortheyear:`7.72Lacs. (b) Totalamountspentfortheyear:`10Lacs. (c) Amountunspent,ifany:N.A (d) Mannerinwhichtheamountspentduringthefinancialyearisdetailedbelow:
Sl No
CSRprojectoractivityidentified
SectorinwhichtheProject/activityiscovered
Projects/Programs1.Localareaorother2.SpecifytheStateandDistrictwhereprojectsorprogramwasundertaken
Amountoutlay(budget)project/programswise
AmountSpentontheProjectorprogramsSubheads:1.Directexpenditureonprojectorprogramme2.Overheads3.CorpusFund.
Cumulativeexpenditureuptothereportingperiod
Amountspentdirectly/throughimplementingagency
1. PromotionofEducationandhealthcareasspecifiedinCompany’sCSRPolicy
Educationandhealthcare
Kolkata,WestBengal
`2 Lakhs
`2Lakhsbywayofcontribution/donationtoManavKalyanTrust
`2Lakhs ThroughimplementingagencyManavKalyanTrustcameintoexistenceintheyear1977,eligibleasperprovisionsofCompaniesAct,2013
2. EmpoweringwomenandChildren
Settinguphostelsforwomenandorphans
Guwahati,Assam `8Lakhs
`8Lakhsbywayofcontribution/donationtoIndianCouncilforChildWelfare
`8Lakhs
ThroughimplementingagencyIndianCouncilforChildWelfarecameintoexistenceintheyear1968,eligibleasperprovisionsofCompaniesAct,2013
Annual Report 2018-2019Assam Carbon Products Limited 41
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AnnexuretotheBoardofDirectors’Report
7. CSRCommitteeResponsibilityStatement.
TheCSRCommitteeconfirmsthattheimplementationandmonitoringofCSRactivitiesoftheCompanyisincompliancewiththeCSRobjectivesandCSRPolicyoftheCompany.
ForandonbehalfoftheBoardDate:30thApril,2019Place:Kolkata Sd/- Sd/-RegisteredOffice: KaliKrishnaBhattacharya RakeshHimatsingkaBirkuchi,Guwahati,Assam-781026 ManagingDirector ChairmanCIN:L23101AS1963PLC001206 (DIN:07011241) (DIN:00632156)
Annual Report 2018-2019Assam Carbon Products Limited 42
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ManagementDiscussionandAnalysisReport
INDUSTRY STRUCTURE & DEVELOPMENT
YourCompanyisengagedinthemanufacturingofElectricalandMechanicalCarbonMaterialsandtheproductrangeincludesvariouskindsofCarbonandMetalGraphiteBlocks,CarbonBrushes,MechanicalandSpecialCarbonComponentsandCurrentCollectorsforRailwaynetwork,undergroundRailwaysandotherindustrialapplications.
Electricalmotorsareanintegralpartofthemachineryandcarbonbrushestransfertheelectricityfromoutsidethemotortothespinningwindinginthecenterofthemotor.
Another major product range represents the Electric Current Collectors which are used by Electric Locomotives to carryelectricalpowerfromoverheadlinesusedonintercityrailnetworkorelectricalthirdrailstotheelectricalequipmentofthevehicles,usedfortheMetro/undergroundrailnetworkwithinthecities.
OntheotherhandMechanicalCarbonproductsaresuitableforhightemperature,lubrication,chemicalinertness,dimensionalstability / impermeabilityand theproduct range includesRadialBearings,ThrustBearings,Mechanical Seals,PistonRings,PackingandVanes.
DuringApril-January2018-19,industrialoutputgrewat4.4percentasagainst4.1percentinthesameperiodpreviousfiscal,accordingtothedatareleasedbytheCentralStatisticsOffice(CSO).IndustrialProductioninIndiaisexpectedtobe4.50percentbytheend2019accordingtoTradingEconomicsglobalmacromodelsandanalystsexpectations.Lookingforward,weestimateIndustrialProduction in Indiatostandat4.80 in12monthstime.Thus, IndustryGrowthRate in Indiahasbeenregisteringasteadygrowthover thepast fewyears.Thishasgivenamajorboost to the Indianeconomy.Thegovernmentof India iscontinuingitseffortstoboosttheindustrialsectorintheCountry.India’seconomyisontracktogrowfromthepresentaround$2.5Trilliontoover$10Trillionby2030,therebybecomingtheworld’sthirdlargesteconomyafterChinaandtheUS.Thus,Indiahasbecomeoneofthemostattractivedestinationsforinvestmentsinthemanufacturingsector.BusinessconditionsintheIndianmanufacturingsectorcontinuetoremainpositiveandyourCompanyisexpectedthetakethebenefitofsuchgrowth.
OPPORTUNITIES & THREATS
YourCompanyconstantlyexaminestheopportunitiesandthreatsthatexistinitsbusinessandalreadyhasplanstoexploittheopportunityavailablegoingforwardaswellasequippedtohandlethreats.
Opportunities
TheCompany’sproductrangeincludesElectricalCarbonMaterials,MechanicalCarbonMaterialsandCurrentCollectors.
Afterdecadesofunder-investment,therailwaysectorisfinallygoingthroughamuch-neededcoursecorrection.Inthepasttwoyears,thegovernmenthassetinmotionnumerousmeasurestorealisethesector’spotentialasthenextgrowthengineoftheeconomy.Anambitiousinvestmentoutlayof̀ 8.56Trillionhasbeenannounced,supportedbyexternalfundingandparticipationofvariousstakeholders.Andofthis,`1Trillionhasalreadybeenexpended,markingthegovernment’sdeterminationtoseetheseplansmaterialisewithindefinedtimeframes.
WiththeongoingprogressofanewDedicatedFreightCorridor(DFC)byIndianRailwayscoveringabout3300routekmlongtworoutes-theEasternCorridorandtheWesternCorridor,aswellastherapidsettingupandexpansionofMetroRailwaysalloverIndia,therewillbeamassiverequirementforElectricalBrushesandCurrentCollectors.
With a booming economy, rapidly increasing urbanization and with the whole of India coming under the electric powerumbrella,thereisamajorsurgeinthedemandforMechanicalComponentsacrossalltheSectors,especiallyforRadialBearingswhichisafastgrowingsectorwithEnergyefficientfivestarratedpumpsallrequiringCarbonmaterials.
Threats
1. DumpingofcheapmaterialfromChina.
2. ConversionofDCmotortobrushlessACmotorinLocomotivesandPowerplants.
3. Pricewarfortenderbusiness.
SEGMENT-WISE/PRODUCT-WISE PERFORMANCE
Companyhasachievedagrossrevenuefromoperationamountingto`51.27Croreasagainst`43.93Croreinthelastfinancialyear,anincreaseof16.71%ascomparedtothepreviousfinancialyear.
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ManagementDiscussionandAnalysisReport(Contd.)
SaleofElectrical segmentcontributes67%tothetop lineasagainst75% in thepreviousfiscal,whileMechanicalsegmentwitnessedashareof33%andinrealtermstheElectricCarsegmentgrewbyonlyaround5%whereastheMechanicalCarbonsegmentgrewbyover50%.
PerformanceoftheCompanycontinuestoimproveduetovariouscostsavingmeasuresandoperationalefficiencymeasuresinitiatedbythemanagement,aswellasrationalizationofsalesprice,strictcontroloncreditsalesandstayingawayfromlossmakingaccounts.
OUTLOOK
TheoutlookfortheCompanycontinuestobeoptimisticbasedonthegrowth inthedemandforCompany’sproducts.TheCompanyhasalreadyupgradedandmodernizeditsplants.TheCompanyisalsoexploringnewgrowthopportunitiesaswellasoptimumutilizationofitsavailableresources,aswellasconstantlyworkingtowardsimprovedproductivitythroughfurtherupgradationofPlant&Machinerywhererequired,trainingofworkmen,etc.
Constant efforts are on towards achieving savings, improving operational efficiency, increasing market share, optimumutilizationofproductioncapacitiesandcustomer’ssatisfaction.
TheManagementisoptimisticaboutthegrowthandprofitabilityoftheCompany.
RISKS & CONCERNS
Unforeseen/unmitigatedtechnologyobsolescence,theemergenceofcompetingtechnologieswould impacttheCompany’sbusinessanditsabilitytodeliveronitsstrategicgoals.
TheadvancedtechnologicalnatureoftheCompanyrequirespeoplewithhighlydifferentiatedskillsets.Anyinabilitytorecruit,retainanddeveloptherightpeoplewouldimpacttheCompany’sabilitytoachieveitsstrategicgoals.
Supplyingintocriticalapplications,thequalityoftheCompany’scontractsmustmatchthequalityandnatureofitsproducts.IneffectivecontractriskmanagementcouldresultinsignificantliabilitiesfortheCompanyanddamagecustomerrelationships.
INTERNAL CONTROL SYSTEM & THEIR ADEQUACY
TheCompanyhasproperandadequateinternalcontrolsystemcommensuratewithitssizeandnatureofbusiness.Itensuresthatallassetsaresafeguardedandprotectedagainstimproperuseandthattransactionsareauthorized,recordedandreportedcorrectly.
InternalAuditisconductedbyindependentauditingfirmatalllocationsoftheCompany.TheinternalauditreportsarereviewedbytheAuditCommitteeandadequateremedialmeasuresaretakenintime.
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
During the year under review, revenue from operations of the Company increased to ` 5127.00Lacs as compared to ` 4392.99Lacsinthepreviousyearwhichisahealthy16.71%growth.Thisincreaseinthesaleswasachievedbyfirstlyimprovingproductionandproductivitybyremovingbottlenecksinoperations,addingnewPlantandMachinery.
YourCompanywasabletoearnaprofitof`491.92Lacsasagainstaprofitof`565.53Lacsinthepreviousyear.Themajorcauseforaslightdipinprofitmarginwasbecausethecurrentfinancialyearhadwitnessedsettlementofthevariouslegacyissueswhichwaspendingformorethan5yearsresultingtoonetimeeffectintheStatementofProfit&Loss.
DespiteseveralchallengesissuefacedbyyourCompanysuchaslowproductivity,absenteeism,outdatedandobsoletePlant&Equipment,globaleconomicslowdown,Foreignexchangepricerisk,cutthroatinternalcompetitionduetodumpingfromChinaandreductioninthepricesduetopricewar;yourCompanyhasbeenabletocontinuetowardshigherturnoverandprofits.
HUMAN RESOURCES/INDUSTRIAL RELATIONS
The Company has always given prime importance to Human Resources.Continued efforts towards optimum manpowerutilizationarebeingmadeforreductionofcostandoptimizationofproductivity.TheCompanycontinuestoprovidethrustonregulartrainingprogrammesforupgradationofjobknowledgeandotherrelatedskillsamongstitsemployees.
Thetotalnumberofpeopleemployedintheorganizationason31.03.2019was250ascomparedto254ason31.03.2018.
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Detailsofsignificantchangesinkeyfinancialratios,alongwithdetailedexplanations:FinancialRatiosforstandalonefinancials
Particulars YearEnded31.03.2019
YearEnded31.03.2018
DebtorsTurnover[NetCreditSales/AverageAccountsReceivable]
3.36 3.52
InventoryTurnover[CostofGoodsSold/AverageInventory]
3.01 2.81
InterestCoverage(*)[EarningBeforeInterest&Taxes/InterestExpenses]
149 1433
CurrentRatio[CurrentAssets/CurrentLiabilities]
0.95 1.04
DebtEquityRatio[TotalLiabilities/TotalShareholdersEquity]
0.22 0.27
NetProfitMargin(%)[NetProfit/Revenue]
9.59% 12.87%
ReturnonNetWorth(%)(^)[Profitaftertax/AverageEquityCapitalandOtherEquity]
45.10% 97.68%
(*)Thevarianceintheratioismainlyduetofreshborrowingstakenduringthecurrentfinancialyear.(^)Thevarianceintherationismainlyduetoloweravailablebalanceof‘OtherEquity’duringtheperiodendingMarch2018resultingtolower‘AverageEquityCapitalandotherEquity’.CAUTIONARY STATEMENT Statement in the “Management’s Discussion and Analysis” describing the Company’s objectives, projections, estimates,expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws andregulations.Actualresultscoulddiffermateriallyfromthoseexpressedorimpliedinthisreport.Importantfactorsthatwouldmakeadifference to theCompany’soperations includeglobal and Indiandemand/supply conditions, rawmaterialsprices,feed stockavailabilityandprices, cyclicaldemandandpricing in theCompany’sprincipalmarkets, changes inGovernmentregulations/policies,taxregimes,economicdevelopmentswithinthecountryandotherfactorssuchaslitigationandlabournegotiations.TheCompanyassumesnoresponsibilitytomodifyorreviseanyforward-lookingstatementsonthebasisofanyfutureeventsornewinformation.Actualresultsmaydifferfromthosementionedinthereport.
ManagementDiscussionandAnalysisReport
CERTIFICATE FROM COMPANY SECRETARY IN PRACTICE REGARDING NON-DISQUALIFICATION OF DIRECTORS(AsperclauseCofScheduleVoftheSecuritiesExchangeBoardofIndia(ListingObligationsandDisclosureRequirement)Regulations,2015readwithregulation34(3)ofthesaidListingRegulations).ToTheMembers,AssamCarbonProductsLimited,Birkuchi,Guwahati,Assam–781026.As requiredby item10(i)ofPartCofScheduleVof theSecuritiesExchangeBoardof India (ListingObligationsandDisclosure Requirement) Regulations, 2015, we certify that none of the directors on the Board of Assam CarbonProductsLimited,havebeendebarredordisqualifiedfrombeingappointedorcontinuingasdirectorsofcompaniesbytheSEBI/MinistryofCorporateAffairsoranysuchstatutoryauthority.
RajatKumarJalanPractisingCompanySecretary
Place:Kolkata CPNo.:5705Date:30thApril,2019 ACSNo.:14895
ForandonbehalfoftheBoardDate:30thApril,2019Place:Kolkata Sd/- Sd/-RegisteredOffice: KaliKrishnaBhattacharya RakeshHimatsingkaBirkuchi,Guwahati,Assam-781026 ManagingDirector ChairmanCIN:L23101AS1963PLC001206 (DIN:07011241) (DIN:00632156)
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TotheMembersofAssamCarbonProductsLimitedReportontheAuditoftheFinancialStatements
OpinionWehaveauditedtheaccompanyingfinancialstatementsofAssamCarbonProductsLimited(‘theCompany’),whichcomprisetheBalanceSheetasatMarch31,2019,andtheStatementofProfitandLoss(includingOtherComprehensiveIncome),andCashFlowStatementandtheStatementofchangesinEquityfortheyearthenendedandasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financialstatements,givetheinformationrequiredbytheAct,inthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndiaincludingtheINDAS,ofthestateofaffairsasatMarch31,2019anditsProfitincludingothercomprehensiveincome,itsCashFlowandchangesinequityfortheyearendedonthatdate.WedrawattentiontoNote25(A)(iii)totheIndASfinancialstatementswhereinitisstatedthattheCompanyhasnotestablishedaprovisionforemployeewagesandbenefitsforthelockoutperiodattheCompany’sGuwahatiFactoryfrom7December2010to8March2012ontheprincipleof‘NoWorkNoPay’.Thematteriscurrentlysubjudiceandhencetheimpact,ifany,intermsofprovisionofemployeewagesandemployeebenefitsanditsresultantimpactonprofitfortheyearended31March2019,reservesandsurplusandcurrentliabilities,cannotcurrentlybedetermined.BasisofOpinionWeconductedourauditof thefinancial statements inaccordancewith theStandardsonAuditing specifiedunder section143(10)oftheAct(SAs).OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor’sResponsibilityfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)togetherwiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsundertheprovisionsoftheActandtheRulesmadethereunder,andwehavefulfilledourotherethical responsibilities inaccordancewiththeserequirementsandtheCodeofEthics.Webelievethat theauditevidenceobtainedbyusissufficientandappropriatetoprovideabasisforourauditopiniononthefinancialstatements.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatterstobecommunicatedinourreport.
Sl. KeyAuditMatter Auditor’sResponse1. Litigation–Contingencies
Provision for employee wages and benefitsfor the lockout period at the factories ofthe company was not made based on theprinciples of ‘No Work No Pay’. This mighthaveanimpactontheresults,ifthepotentialexposures were to materialise. The labourmatter of Company’s Guwahati factory issubjudice.Refernote25A(iii)and(iv).
PrincipalAuditProceduresOuraudit approachwas a combinationof test of internal controlsand substantive procedures. Supporting documentation are testedforthepositionstakenbythemanagement.
InformationOtherthantheFinancialStatementsandAuditor’sReportThereon• The Company’s Board of Directors is responsible for the other information. The other information comprises the
informationincludedintheshareholderinformationandReportoftheBoardofDirectors&ManagementDiscussionandAnalysis,butdoesnotincludethefinancialstatementsandourauditor’sreportthereon.
• Our opinion on the financial statements does not cover the other information andwe do not express any form ofassuranceconclusionthereon.
• Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheother informationismaterially inconsistentwiththefinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.
IndependentAuditor’sReport
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Wehavenothingtoreportinthisregard.Management’sResponsibilityfortheFinancialStatementsTheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)oftheCompaniesAct.2013(“theAct”)withrespecttothepreparationoftheseINDASfinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformance(includingothercomprehensiveincome),cashflowsandchangesinequityoftheCompanyinaccordancewiththeAccountingprinciplesgenerallyacceptedinIndia,includingtheIndianAccountingStandards(INDAS)specifiedundersection133oftheactreadwithrule7oftheCompanies(Accounts)Rules2014.Thisresponsibilityalsoincludesthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheactforsafeguardingtheassetsofthecompanyandforpreventinganddetectingthefraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternal financial control, that were operating effectively for ensuring the accuracy and completeness of the accountingrecords,relevanttothepreparationandpresentationofINDASfinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThoseBoardofDirectorsarealsoresponsibleforoverseeingtheCompany’sfinancialreportingprocess.Auditor’sResponsibilityfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,design
andperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery, intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
• Obtainanunderstandingofinternalfinancialcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheCompanyhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.
• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.
• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingandbasedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate, tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, andwhether the financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materialityisthemagnitudeofmisstatementsinthefinancialstatementsthat,individuallyorinaggregate,makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthefinancialstatements.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.
IndependentAuditor’sReport(Contd.)
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IndependentAuditor’sReport(Contd.)
Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.From the matters communicated with those charged with governance, we determine those matters that were of mostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.ReportonOtherLegalandRegulatoryRequirements1. AsrequiredbytheCompanies(Auditor’sReport)Order2016(“theOrder”)asamended,issuedbyCentralGovernment
ofIndiaintermsofsubsection(11)ofSection143oftheact,wegiveinthe‘AnnexureA’,astatementonthemattersspecifiedinparagraphs3&4oftheorder.
2. Asrequiredbysection143(3)oftheAct,basedonourauditwereportthat: (a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbelief
werenecessaryforthepurposesofouraudit; (b) InouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfrom
ourexaminationofthosebooks; (c) TheBalanceSheet,theStatementofProfit&Lossincludingothercomprehensiveincome,CashFlowStatement
andstatementofchangesinequitydealtwithbythisreportareinagreementwiththebooksofaccount; (d) InouropiniontheaforesaidINDASfinancialstatementscomplywiththeAccountingStandardsspecifiedunder
section133oftheact. (e) OnthebasisofwrittenrepresentationsreceivedfromthedirectorsasonMarch31,2019,andtakenonrecord
bytheBoardofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2019,frombeingappointedasadirectorintermsofsubsection(2)ofsection164oftheAct.
(f) With respect to the adequacy of the Internal Financial Controls over financial reporting of the company andoperatingeffectivenessofsuchcontrols,refertoourseparateReport in“AnnexureB”.OurreportexpressesanunmodifiedopinionontheadequacyandoperatingeffectivenessoftheCompany’sinternalfinancialcontrolsoverfinancialreporting.
(g) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewiththerequirementsofsection197(16)oftheAct,asamended:
Inouropinionandtothebestofourinformationandaccordingtotheexplanationgiventous,theremunerationpaidbythecompanytoitsdirectorduringtheyearisinaccordancewiththeprovisionsofsection197oftheact.
(h) With respect to the othermatters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies(Audit&Auditors)Rules2014, inouropinionand tobest ofour informationandaccording to theexplanationsgiventous:
i) TheCompanyhasdisclosedtheimpactofpendinglitigationonitsfinancialpositioninitsIndASfinancialstatements inaccordancewith thegenerallyacceptedaccountingpractice–ReferNote25 to the IndAsfinancialstatements.
ii) TheCompanydidnothaveanylongtermcontractsincludingderivativecontractsforwhichtherewereanymaterialforeseeablelosses.
iii) TherewerenoamountswhichwererequiredtobetransferredtotheInvestor’sEducationandProtectionFundbythecompany.
ForD.Basu&Co.CharteredAccountants
Firm’sRegistrationNo.:301111E[AshisRanjanMaitra]
Place:Kolkata PartnerDate:30thApril2019 MembershipNo:056520
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AnnexureAtotheIndependentAuditor’sReport
(Referredtoinourreportofevendate)TheAnnexurereferredtoinIndependentAuditors’ReporttothemembersoftheCompanyonthestandaloneIndASfinancialstatementsfortheyearended31March2019,wereportthat:(i) (a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituation
offixedassets. (b) TheCompanyhasaregularprogrammeofphysicalverificationofitsfixedassetsbywhichallthefixedassetsare
verifiedinaphasedmanneroveraperiodoftwoyears.Inouropinion,theperiodicityofphysicalverificationisreasonablehavingregardtothesizeoftheCompanyandthenatureofitsfixedassets.Nomaterialdiscrepancieswerenoticedonsuchverification.
(c) AccordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecordsoftheCompany,thetitledeedsofimmovablepropertiesareheldinthenameoftheCompany.
(ii) Theinventory,exceptforgoodsintransithasbeenphysicallyverifiedbythemanagementduringtheyear.Inouropinion,thefrequencyofsuchverificationisreasonable.Thediscrepanciesnoticedonverificationbetweenthephysicalstocksandthebookrecordswerenotmaterial.
(iii) Accordingtotheinformationandexplanationgiventousandbasedonourexaminationoftherecordsofthecompany,theCompanyhasnotgrantedany loans,securedorunsecured,tocompanies,firms,LimitedLiabilityPartnershipsorotherpartiescoveredintheregistermaintainedundersection189oftheAct.Accordingly,paragraphs3(iii)oftheOrderisnotapplicabletotheCompany.
(iv) Accordingtotheinformationandexplanationgiventousandbasedonourexaminationoftherecordsofthecompany,theCompanyhasnotmadeanyinvestment,advancedanyloan,givenanyguaranteeorprovidedanysecuritiestootherduringtheyear.
(v) TheCompanyhasnotacceptedanydepositsduringtheyearasperthedirectivesissuedbytheReserveBankofIndiaundertheprovisionsofsection73to76oranyotherrelevantprovisionsoftheActandtherulesframedthereunder.Accordingly,paragraphs3(v)oftheOrderisnotapplicabletotheCompany.
(vi) TheCentralGovernmenthasnotprescribedthemaintenanceofcostrecordsundersub-section(1)ofsection148oftheCompaniesAct,2013foranyoftheproductsmanufacturedbytheCompany.
(vii) (a) Accordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecordsofthecompany,amountsdeducted/accruedinthebooksofaccountinrespectofundisputedstatutoryduesincludingprovident fund,employees’ state insurance, income-tax, sales-tax, service tax,dutyof customs,dutyofexcise,valueaddedtax,goodsandservicetaxandothermaterialstatutorydueshavegenerallybeenregularlydepositedduringtheyearbytheCompanywiththeappropriateauthorities.
Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectofprovidentfund,employees’stateinsurance,income-tax,sales-tax,servicetax,dutyofcustom,dutyofexcise,valueaddedtax,goodsandservicetaxandothermaterialstatutorydueswereinarrearsasat31March2019foraperiodofmorethansixmonthsfromthedatetheybecamepayable.
(b) Accordingtotheinformationandexplanationsgiventous,therearenoduesofincometax,salestax,servicetax,customduty,exciseduty, valueadded taxwhichhavenotbeendepositedwith theappropriateauthoritiesonaccountofanydispute.
(viii) Inouropinionandaccordingtotheinformationandexplanationgiventous,theCompanydidnothaveanyoutstandingdebentures during the year. The company has not defaulted in repayment of loans or borrowings to any financialinstitution,bankandgovernmentauthorities.Accordingly,paragraphs3(viii)oftheOrderisnotapplicable.
(ix) TheCompanydidnotraisedanymoneybywayofinitialpublicofferorfurtherpublicoffer(includingdebtinstruments)andtermloansduringtheyear.Accordingly,paragraphs3(ix)oftheOrderisnotapplicable.
(x) Accordingtotheinformationandexplanationsgiventous,nofraudbytheCompanyorontheCompanybyitsofficersoremployeeshasbeennoticedorreportedduringthecourseofouraudit.
(xi) TheCompanyhaspaidmanagerial remunerationduringtheyearwhich is inaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofsection197readwithScheduleVtotheCompaniesAct,2013.
(xii) Inouropinionandaccording to the informationandexplanationsgiventous, theCompany isnotanidhiCompany.Accordingly,paragraphs3(xii)oftheOrderisnotapplicable.
(xiii) AccordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecordsoftheCompany,
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AnnexureAtotheIndependentAuditor’sReport(Contd.)
transactionswiththerelatedpartiesareincompliancewithsections177and188oftheActwhereapplicableanddetailsofsuchtransactionshavebeendisclosedinthefinancialstatementsasrequiredbytheapplicableaccountingstandards.
(xiv) Accordingtotheinformationandexplanationsgiventous,andbasedonourexaminationoftherecordsoftheCompany,the Company has notmade any preferential allotment or private placement of shares or fully or partly convertibledebenturesduringtheyear.
(xv) Accordingtotheinformationandexplanationsgiventous,andbasedonourexaminationoftherecordsoftheCompany,theCompanyhasnotenteredintoanynon-cashtransactionswithdirectorsorpersonsconnectedwithhim.Accordingly,paragraphs3(xv)oftheOrderisnotapplicable.
(xvi) TheCompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,1934.ForD.Basu&Co.
CharteredAccountantsFirm’sRegistrationNo.:301111E
[AshisRanjanMaitra]
Place:Kolkata PartnerDate:30thApril2019 MembershipNo:056520
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AnnexureBtotheIndependentAuditor’sReport
Annexure-BtotheIndependentAuditors’ReportofevendateontheIndASfinancialstatementsofAssamCarbonProductsLimitedReportontheInternalFinancialControlsunderClause(i)ofSub-section3ofSection143oftheCompaniesAct,2013(“theAct”)WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofAssamCarbonProductsLimited(“theCompany”)asof31March2019inconjunctionwithourauditoftheIndASfinancialstatementsoftheCompanyfortheyearendedonthatdate.Management’sResponsibilityforInternalFinancialControlsTheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, includingadherencetocompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.Auditors’ResponsibilityOurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.Weconductedouraudit inaccordancewiththeGuidanceNoteonAuditof InternalFinancialControlsoverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemover financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.MeaningofInternalFinancialControlsoverFinancialReportingAcompany’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthe reliability of financial reporting and the preparation of financial statements for external purposes in accordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesand procedures that (1) pertain to themaintenance of records that, in reasonable detail, accurately and fairly reflect thetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.InherentLimitationsofInternalFinancialControlsOverFinancialReportingBecauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
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AnnexureBtotheIndependentAuditor’sReport
OpinionInouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingand such internalfinancial controls overfinancial reportingwereoperatingeffectively as at 31March2019,basedon theinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.
ForD.Basu&Co.CharteredAccountants
Firm’sRegistrationNo.:301111E[AshisRanjanMaitra]
Place:Kolkata PartnerDate:30thApril2019 MembershipNo:056520
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(AmountinRupeesthousand)
BalanceSheetasat31March,2019
Note 31Mar2019 31 Mar 2018ASSETSNonCurrentAssets(a) Property,Plant&Equipments 3 1,44,756 1,15,866(b) CapitalWorkinProgress 3 - 953(c) OtherIntangibleAssets 3 398 729 (d) OtherFinancialAssets 4 5,873 4,969
1,51,027 1,22,517CurrentAssets(a) Inventories 5 1,32,965 1,11,957(b) FinancialAssets (i) Investments 6 3,412 3,240 (ii) TradeReceivables 7 1,58,070 1,47,443 (iii) Cash&CashEquivalents 8 8,834 14,084 (iv) OtherFinancialAssets 4 14,126 12,005(c) OtherCurrentAssets 9 13,449 14,008
3,30,856 3,02,737TOTAL ASSETS 4,81,883 4,25,254EQUITY & LIABILITIESEquity(a) EquityShareCapital 10 27,556 27,556(b) OtherEquity 11 1,09,041 59,849
1,36,597 87,405NonCurrentLiabilities(a) FinancialLiabilities (i) Borrowings 12 - 118 (b) Provisions 13 29,479 23,708
29,479 23,826CurrentLiabilities(a) FinancialLiabilities (i) Borrowings 12 49,500 - (ii) TradePayables 14 29,198 27,395 (iii) OtherLiabilities 15 1,87,124 2,37,928(b) Provisions 13 24,123 19,937(c) OtherCurrentLiabilities 16 17,048 18,166(d) CurrentTaxLiabilities(Net) 17 8,814 10,597
3,15,807 3,14,023TOTAL EQUITY AND LIABILITIES 4,81,883 4,25,254Significantaccountingpolicies 1B
ThenotesreferredtoaboveformanintegralpartofthefinancialstatementsAsperourreportofevendateattachedForD.Basu&Co. ForandonbehalfoftheBoardofDirectorsofCharteredAccountants AssamCarbonProductsLimitedFirmRegistrationNo.:301111E RakeshHimatsingka K.K.Bhattacharya S.K.LhilaAshisRanjanMaitra Chairman ManagingDirector DirectorPartner (DIN:00632156) (DIN:07011241) (DIN:01383460)MembershipNo.:056520Place:Kolkata SubhenduChakraborty PijushBysackDate:30.04.2019 CompanySecretary ChiefFinancialOfficer
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(AmountinRupeesthousand)
StatementofProfitandLossfortheyearended31March,2019
Note 31Mar2019 31 Mar 2018I. IncomefromOperations 18 5,12,700 4,39,299II. Otherincome 19 12,084 13,633III. TotalIncome(I+II) 5,24,784 4,52,932IV. Expenses
(a) Costofmaterialsconsumed 20 1,24,525 1,01,862(b) Purchaseofstockintrade 21 720 1,792(c) Changesininventoriesoffinishedgoods,workin
progress&stockintrade22 (12,209) (17,263)
(d) ExciseDuty[Netofrefundofpreviousyear`2,264] - 8,310(e) Employeebenefitsexpenses 23 1,47,624 1,14,683(f) Financecost 426 48(g) DepreciationandAmortisationexpenses 3 15,735 14,763(h) OtherExpenses 24 1,84,552 1,59,991TotalExpenses(IV) 4,61,373 3,84,186
V. Profit/(Loss)beforeexceptionalitemsandtax(III-IV) 63,411 68,746VI. ExceptionalItems - -VII. Profit/(Loss)beforetax(V-VI) 63,411 68,746VIII. TaxExpense/(Credit)
(a) Currenttax 12,895 10,973(b) Deferredtax - -TotalTaxExpenses/(Credit) 12,895 10,973
IX. Profit/(Loss)fortheyearfromcontinuingoperations(VII-VIII)
50,516 57,773
X. OtherComprehensiveIncome/(Loss)(a) ItemsthatwillnotbereclassifiedtoprofitorLoss
-Remeasurementgainsand(losses)ondefinedbenefitobligation
(1,324) (1,220)
-Equityinstrumentsfairvaluethroughothercomprehensiveincome
- -
(b) Income-tax(expense)/creditrelatingtoitemsthatwillnotbereclassifiedtoprofitorloss
- -
TotalOtherComprehensiveIncome/(Loss),netoftaxes (1,324) (1,220)XI. TotalComprehensiveIncome/(Loss)fortheyear(IX+X) 49,192 56,553XII. Earningspershare
Basic&Diluted 28 18.33 20.97 Significantaccountingpolicies 1B
ThenotesreferredtoaboveformanintegralpartofthefinancialstatementsAsperourreportofevendateattachedForD.Basu&Co. ForandonbehalfoftheBoardofDirectorsofCharteredAccountants AssamCarbonProductsLimitedFirmRegistrationNo.:301111E RakeshHimatsingka K.K.Bhattacharya S.K.LhilaAshisRanjanMaitra Chairman ManagingDirector DirectorPartner (DIN:00632156) (DIN:07011241) (DIN:01383460)MembershipNo.:056520Place:Kolkata SubhenduChakraborty PijushBysackDate:30.04.2019 CompanySecretary ChiefFinancialOfficer
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CashFlowStatementfortheyearended31March2019(AmountinRupeesthousand)
31Mar2019 31 Mar 2018 A. Cashflowfromoperatingactivities
Profit/(Loss)beforetax 63,411 68,746Adjustmentsfor:Depreciationandamortisation 15,735 14,763Allowancefordoubtfulreceivables - 3,342Advanceswrittenoff 761 1,668Financecost 426 48Interestincome (251) (245)Dividend (176) (194)RemeasurementofDefinedBenefitPlan (1,324) (1,220)ProvisionsandLiabilitiesnolongerrequiredwrittenback (1,247) (4,582)LossinReinstatementofInvestment 4 41Profitonsaleofinvestment - (33)Loss/(profit)onsale/discardoffixedasset 3 (49)
13,931 13,539Operatingcashflowbeforeworkingcapitalchanges 77,342 82,285Adjustmentsfor:Tradereceivables,loansandadvancesandothercurrentassets
(13,791) (64,225)
Inventories (21,008) (19,180)Tradepayable,provisionsandotherliabilities (39,122) (73,921) 10,425 (72,980)
3,421 9,305Less:DirectTaxespaid (14,680) (212)NetCashprovidedby/(usedin)operatingactivities (11,259) 9,093
B. CashflowfrominvestingactivitiesPurchaseoffixedassets(includingnetmovementincapitalWIP)
(43,347) (16,826)
Proceedsfromdisposaloffixedassets 3 103 InvestmentinMutualfunds (176) (3,000)(Investment)/Maturityintermdepositwithbank(net) 28 112 SaleofEquityInstruments - 38 DividendIncome 176 194Interestreceived 251 245Netcashprovidedby/(usedin)investingactivities (43,065) (19,134)
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(AmountinRupeesthousand)
CashFlowStatementfortheyearended31March2019(Contd.)
31Mar2019 31 Mar 2018 C. Cashflowfromfinancingactivities
Borrowings 49,500 -
Financecostpaid (426) (48)
Netcashprovidedby/(usedin)financingactivities 49,074 (48)
Netincreaseincashandcashequivalents(A+B+C) (5,250) (10,089)
Cashandcashequivalents-openingbalance 14,084 24,173Cashandcashequivalents-closingbalance 8,834 14,084
(5,250) (10,089)
Cashandcashequivalentsasattheyearendcomprisesof:Cashonhand 124 112 Balanceswithbanksincurrentaccounts 8,710 13,972
8,834 14,084
AsperourreportofevendateattachedForD.Basu&Co. ForandonbehalfoftheBoardofDirectorsofCharteredAccountants AssamCarbonProductsLimitedFirmRegistrationNo.:301111E RakeshHimatsingka K.K.Bhattacharya S.K.LhilaAshisRanjanMaitra Chairman ManagingDirector DirectorPartner (DIN:00632156) (DIN:07011241) (DIN:01383460)MembershipNo.:056520Place:Kolkata SubhenduChakraborty PijushBysackDate:30.04.2019 CompanySecretary ChiefFinancialOfficer
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Statementofchangesinequityasat31March2019
AsperourreportofevendateattachedForD.Basu&Co. ForandonbehalfoftheBoardofDirectorsofCharteredAccountants AssamCarbonProductsLimitedFirmRegistrationNo.:301111E RakeshHimatsingka K.K.Bhattacharya S.K.LhilaAshisRanjanMaitra Chairman ManagingDirector DirectorPartner (DIN:00632156) (DIN:07011241) (DIN:01383460)MembershipNo.:056520Place:Kolkata SubhenduChakraborty PijushBysackDate:30.04.2019 CompanySecretary ChiefFinancialOfficer
A EquityShareCapital
Balanceasat1April2018 27,556Changesinequitysharecapitalduringtheyear -Balanceasat31March2019 27,556B OtherEquity
AttributabletoshareholdersofAssamCarbonProductsLimited
OtherComponentsofEquity TotalOtherEquity
CapitalReserve
CapitalRedemptionReserve
GeneralReserve
RetainedEarnings
EquityInstrumentsthroughothercomprehensive
income
OtheritemsofOther
ComprehensiveIncome
Balanceasat1April2018 3,586 2,244 4,144 50,819 - (944) 59,849Profit/(Loss)fortheyear - - - 50,516 - - 50,516AdjustmentsfordisposalofEquityInstruments
- - - - - - -
OtherComprehensiveIncome/(loss)fortheyear
- - - - - (1,324) (1,324)
TotalComprehensiveIncome/(loss)fortheyear
- - - 50,516 - (1,324) 49,192
Balanceasat31March2019 3,586 2,244 4,144 1,01,335 - (2,268) 1,09,041Balanceasat1April2017 3,586 2,244 4,144 (6,954) 33 276 3,329Profit/(Loss)fortheyear - - - 57,773 - - 57,773AdjustmentsfordisposalofEquityInstruments
- - - - (33) - (33)
OtherComprehensiveIncome/(loss)fortheyear
- - - - - (1,220) (1,220)
TotalComprehensiveIncome/(loss)fortheyear
- - - 57,773 (33) (1,220) 56,520
Balanceasat31March2018 3,586 2,244 4,144 50,819 - (944) 59,849NatureandPurposeofeachreserveCapitalRedemptionReserve : TheAct requires thatwhereaCompany redeems itsPreferenceShares, a sumequal to thenominalvalueofthesharessoredeemedshallbetransfereedtoaCapitalRedemptionResrerve.ThiscanbeappliedbytheCompanyinissuingfullypaidBonusShares.GeneralReserve:UndertheeartswhileIndianCompaniesAct,1956aGeneralReservewascreatedthroughanannualtransferof net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of theCompaniesAct,2013theserequirementhasbeenwithdrawn.RetainedEarnings:ThisreserverepresentsthecumulativeprofitsoftheCompany.ThisreservecanbeutilisedinaccordancewiththeprovisionsoftheCompaniesAct,2013.ItemsofOtherComprehensiveIncome:ThisrepresentstheeffectsofremeasurementofdefinedbenefitobligationsandfairvalueofequityinstrumentsthroughOCI.SignificantaccountingpoliciesThenotesreferredtoaboveformanintegralpartofthefinancialstatements.
(AmountinRupeesthousand)
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NotestoFinancialStatementsfortheyearended31March2019
1.A ABOUT THE COMPANY AssamCarbonProductsLimitedisapubliccompany.ItisincorporatedundertheCompaniesAct,1956anditssharesare
listedontheCalcuttaStockExchangeLimited.TheCompanyisprimarilyengagedinmanufactureofcarbonproducts.
1.B SIGNIFICANT ACCOUNTING POLICIES i. Basisofpreparationoffinancialstatements ThesefinancialstatementshavebeenpreparedinaccordancewithIndianAccountingStandards(referredtoas‘Ind
AS’)aspertheCompanies(IndianAccountingStandards)Rules,2015,notifiedunderSection133oftheCompaniesAct,2013(‘theAct’)andotheraccountingprinciplesgenerallyacceptedinIndia,totheextentapplicable.
The financial statements are presented in Indian Rupees,which is the Company’s functional and presentationcurrencyandalltheamountsareroundedofftonearestthousand(`000)exceptasstatedotherwise.
ii. Useofestimates ThepreparationofthefinancialstatementsinconformitywithINDASrequiresmanagementtomakeestimates,
judgmentsandassumptions.Theseestimates,judgementsandassumptionsaffecttheapplicationofaccountingpoliciesandthereportedamountsofassetsandliabilities,thedisclosuresofcontingentassetsandliabilitiesatthedateofthefinancialstatementsandreportedamountsofrevenuesandexpensesduringtheperiod.Accountingestimatescouldchangefromperiodtoperiod.Actualresultscoulddifferfromthoseestimates.Appropriatechangesinestimatesaremadeasmanagementbecomesawareofchanges incircumstancessurroundingtheestimates.Differencesbetweentheactualresultsandestimatesarerecognisedintheyearinwhichtheresultsareknown/materializedand,ifmaterial,theireffectsaredisclosedinthenotestothefinancialstatements.
Keysourcesofestimationuncertainty Thefollowingarethekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyat
theendofthereportingperiodthatmayhaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear.
1. Usefullivesofproperty,plantandequipment As described in the significant accounting policies, the Company reviews the estimated useful lives of
property,plantandequipmentattheendofeachreportingperiod. 2. Fairvaluemeasurementsandvaluationprocesses SomeoftheCompany’sassetsandliabilitiesaremeasuredatfairvalueforfinancialreportingpurposes.In
estimatingthefairvalueofanassetoraliability,theCompanyusesmarket-observabledatatotheextentitisavailable.WhereLevel1inputsarenotavailable,theCompanyengagesthirdpartyvaluers,whererequired,toperformthevaluation.Informationaboutthevaluationtechniquesandinputsusedindeterminingthefairvalueofvariousassets,liabilitiesaredisclosedinthenotestothefinancialstatements.
3. Claims,ProvisionsandContingentLiabilities In case of any ongoing dispute / litigation,where an outflow of funds is believed to be probable and a
reliableestimateoftheoutcomeofthedisputecanbemadebasedonmanagement’sassessmentofspecificcircumstancesofeachdisputeandrelevantexternaladvice,managementprovidesforitsbestestimateoftheliability.Suchaccrualsarebynaturecomplexandcantakenumberofyearstoresolveandcaninvolveestimationuncertainty.
4. ActuarialValuation ThedeterminationofCompany’sliabilitytowardsdefinedbenefitobligationtoemployeesismadethrough
independentactuarialvaluationincludingdeterminationofamountstoberecognisedintheStatementofProfitandLossandinothercomprehensiveincome.Suchvaluationdependuponassumptionsdeterminedaftertakingintoaccountinflation,seniority,promotionandotherrelevantfactorssuchassupplyanddemandfactors intheemploymentmarket. Informationaboutsuchvaluation isprovided innotestothefinancialstatements.
iii. Current–noncurrentclassification Allassetsandliabilitieshavebeenclassifiedascurrentornon-currentaspertheCompany’snormaloperatingcycle
andothercriteriasetoutintheScheduleIIItotheCompaniesAct,2013.Basedonthenatureofoperations,theCompanyhasascertaineditsoperatingcycleforthepurposeofcurrent–noncurrentclassificationofassetsandliabilitiesas12months.
Allassetsandliabilitiesareclassifiedintocurrentandnon-current.
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)
Assets Anassetisclassifiedascurrentwhenitsatisfiesanyofthefollowingcriteria: a. itisexpectedtoberealisedin,orisintendedforsaleorconsumptionin,thecompany’snormaloperating
cycle; b. itisheldprimarilyforthepurposeofbeingtraded; c. itisexpectedtoberealisedwithin12monthsafterthereportingdate;or d. itiscashorcashequivalentunlessitisrestrictedfrombeingexchangedorusedtosettlealiabilityforatleast
12monthsafterthereportingdate. Currentassetsincludethecurrentportionofnon-currentfinancialassets. Allotherassetsareclassifiedasnon-current. Liabilities Aliabilityisclassifiedascurrentwhenitsatisfiesanyofthefollowingcriteria: a. itisexpectedtobesettledinthecompany’snormaloperatingcycle; b. itisheldprimarilyforthepurposeofbeingtraded; c. itisduetobesettledwithin12monthsafterthereportingdate;or d. thecompanydoesnothaveanunconditionalrighttodefersettlementoftheliabilityforatleast12months
after the reporting date. Terms of a liability that could, at the option of the counterparty, result in itssettlementbytheissueofequityinstrumentsdonotaffectitsclassification.
Currentliabilitiesincludecurrentportionofnon-currentfinancialliabilities. Allotherliabilitiesareclassifiedasnon-current. iv. FairValueMeasurement Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransaction
betweenmarketparticipantsatthemeasurementdateundercurrentmarketconditions. TheCompanycategorizesassetsandliabilitiesmeasuredatfairvalueintooneofthreelevelsdependingonthe
abilitytoobserveinputsemployedintheirmeasurementwhicharedescribedasfollows: a. Level1inputsarequotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities b. Level2inputsareinputsthatareobservable,eitherdirectlyorindirectly,otherthanquotedpricesincluded
withinlevel1fortheassetorliability. c. Level3inputsareunobservableinputsfortheassetorliability. v. PropertyPlantandEquipment Freeholdlandiscarriedathistoricalcost.AllotheritemsofPropertiesplantandequipmentarestatedattheircost
ofacquisition(netofinputcredit)orconstructionandarenetofaccumulateddepreciation.Thecostcomprisespurchaseprice,borrowingcostifcapitalizationcriteriaaremetanddirectlyattributablecostofbringingtheassettoitsworkingconditionfortheintendeduse.Whensignificantpartsofplantandequipmentarerequiredtobereplacedatintervals,theCompanydepreciatesthemseparatelybasedontheirspecificusefullives.Allotherrepairandmaintenancecostsarerecognisedinstatementofprofitorlossasincurred.
An item of property, plant and equipment and any significant part initially recognised is derecognized upondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.Anygainorlossarisingonde-recognitionoftheasset(calculatedasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheasset)isincludedinthestatementofprofitandlosswhentheassetisderecognized.
Sparesthatcanbeusedonlywithparticularitemsofplantandmachineryandsuchusageisexpectedtobeirregulararecapitalised.
Fixedassetsunderconstructionaredisclosedascapitalworkinprogress. Depreciation Depreciationonpropertyplantandequipmentcommenceswhentheassetsarereadyfortheirintendeduse. Depreciationontangiblefixedassets isprovidedunderstraightlinemethodoveruseful livesoffixedassets,as
estimatedbythemanagement.Useful livessoestimatedare in linewiththeuseful lives indicatedbyScheduleIItotheCompaniesAct,2013.Depreciationonadditions/deletionsisprovidedonproratabasis intheyearofpurchase/disposal.
Theresidualvalues,usefullivesandmethodofdepreciationofarereviewedateachfinancialyearendandadjustedprospectively,ifappropriate.
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)
vi. Intangiblefixedassets Intangibleassetsarestatedat theircostofacquisitionnetofamortisation.Thecostcomprisespurchaseprice,
borrowingcostifcapitalizationcriteriaaremetanddirectlyattributablecostofbringingtheassettoitsworkingconditionfortheintendeduse.
Applicationsoftwareisamortisedovertheestimatedeconomicusefullifeof6years. The amortizationperiod and the amortizationmethod are reviewed at least at eachfinancial year end. If the
expected useful life of the asset is significantly different from previous estimates, the amortization period ischangedaccordingly.
vii. Impairmentofnon-financialAssets TheCompanyassessesateachbalancesheetdatewhetherthereisanyindicationthatanassetmaybeimpaired.
If any such indicationexists, theCompanyestimates the recoverable amountof theasset. If such recoverableamountoftheassetortherecoverableamountofthecashgeneratingunittowhichtheassetbelongsislessthanits carryingamount, thecarryingamount is reduced to its recoverableamount.The reduction is treatedasanimpairmentlossandisrecognizedinthestatementofprofitandloss.
An impairment loss is reversed if therehasbeenachange intheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheassetscarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendeterminednetofdepreciationoramortisation,ifnoimpairmentlosshadbeenrecognised.
viii. FinancialInstruments a. FinancialAssets Financialassets,whereapplicablearerecognisedwhentheCompanybecomesapartytothecontractual
provisionsofthefinancialinstrumentandaremeasuredinitiallyatfairvalueadjustedfortransactioncosts. Classification Management determines the classification of an asset at initial recognition depending on the purpose
forwhich the assetswere acquired. The subsequentmeasurement of financial assets depends on suchclassification.
Thefinancialassetsareclassifiedasthosemeasuredat: 1. amortised cost,where thefinancial assets areheld solely for collectionof cashflows arising from
paymentsofprincipaland/orinterest. 2. fairvaluethroughothercomprehensiveincome(FVTOCI),wherethefinancialassetsareheldnotonly
forcollectionofcashflowsarisingfrompaymentsofprincipalandinterestbutalsofromthesaleofsuchassets.Suchassetsare subsequentlymeasuredat fairvalue,withunrealisedgainsand lossesarisingfromchangesinthefairvaluebeingrecognisedinothercomprehensiveincome.
3. fairvaluethroughprofitorloss(FVTPL),wheretheassetsaremanagedinaccordancewithanapprovedinvestmentstrategythattriggerspurchaseandsaledecisionsbasedontheirfairvalueofsuchassets.Suchassetsaresubsequentlymeasuredat fairvalue,withunrealisedgainsand lossesarising fromchangesinthefairvaluebeingrecognisedintheStatementofProfitandLossintheperiodinwhichtheyarise.
Tradereceivables,advances,securitydeposits,cashandcashequivalentsetc.areclassifiedformeasurementat amortised costwhile investmentsmay fall under anyof the aforesaid classes.However, in respect ofparticularinvestmentsinequityinstrumentsthatwouldotherwisebemeasuredatfairvaluethroughprofitorloss,anirrevocableelectionatinitialrecognitionmaybemadetopresentsubsequentchangesinfairvaluethroughothercomprehensiveincome.
Impairment TheCompanyassessesateachreportingdatewhetherafinancialasset(oragroupoffinancialassets)such
asinvestments,tradereceivables,advancesandsecuritydepositsheldatamortisedcostandfinancialassetsthataremeasuredatfairvaluethroughothercomprehensiveincomearetestedforimpairmentbasedonevidenceorinformationthatisavailablewithoutunduecostoreffort.Expectedcreditlossesareassessedandlossallowancesrecognisedifthecreditqualityofthefinancialassethasdeterioratedsignificantlysinceinitialrecognition.
De-recognition Afinancialassetisprimarilyde-recognisedwhentherightstoreceivecashflowsfromtheassethaveexpired
ortheCompanyhastransferreditsrightstoreceivecashflowsfromtheasset.
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)
b. FinancialLiabilities All financial liabilities are recognised initially at fair valueand transaction cost that is attributable to the
acquisitionofthefinancialliabilitiesisalsoadjusted.Theseliabilitiesareclassifiedasamortisedcost. Subsequenttoinitialrecognition,theseliabilitiesaremeasuredatamortisedcostusingtheeffectiveinterest
method.Theseliabilitiesincludeborrowingsanddeposits. De-recognitionoffinancialliabilities A financial liability are de-recognisedwhen the obligation under the liability is discharged, cancelled or
expires.Whenanexistingfinancial liability is replacedbyanother fromthesame lenderonsubstantiallydifferent terms, or the terms of an existing liability are substantially modified, such an exchange ormodificationistreatedasthede-recognitionoftheoriginalliabilityandtherecognitionofanewliability.ThedifferenceintherespectivecarryingamountsisrecognisedintheStatementofProfitandLoss.
c. OffsettingFinancialInstruments Financialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedinthebalancesheetifthere
isacurrentlyenforceablelegalrighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,torealizetheassetsandsettletheliabilitiessimultaneously.
ix. Inventories Rawmaterials,storesandsparepartsarevaluedatthelowerofcostandnetrealizablevalue.Costincludespurchase
price,dutiesandtaxes,freightandotherexpenditureincurredinbringingsuchinventoriestotheirpresentlocationandcondition. Indeterminingcost,weightedaveragemethod isused. Thecarryingamountsofrawmaterials,storesandsparepartsareappropriatelywrittendownwhenthereisadeclineinreplacementcostofsuchmaterialsandthefinishedproducts,inwhichtheywillbeincorporated,areexpectedtobesoldbelowcost.
Workinprogressandfinishedgoodsarevaluedatthelowerofcostandnetrealisablevalue.Costcomprisesofdirectmaterial, labour expenses and an appropriate portionof productionoverheads incurred in bringing theinventorytotheirpresentlocationandcondition.Fixedproductionoverheadsareallocatedonthebasisofnormalcapacityoftheproductionfacilities.
Tradedfinishedgoodsarevaluedatthelowerofcostandnetrealisablevalue. x. Revenue Revenuefromsaleofgoodsisrecognisedwhensignificantcontrolofownershipinthegoodsaretransferredto
customersanditisnotunreasonabletoexpectultimatecollectionofthesaleconsiderationthatisbeingrecognisedasrevenue.
Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished. Interest income is recognisedonatimeproportionbasis taking intoaccount theamountoutstandingand the
interestrateapplicable. xi. IncomefromGovernmentGrant The Companymay receive government grants that require compliance with certain conditions related to the
Company’soperatingactivitiesorareprovidedtotheCompanybywayoffinancialassistanceonthebasisofcertainqualifyingcriteria.
Governmentgrantsarerecognisedwhenthereisreasonableassurancethatthegrantwillbereceived,andtheCompanywillcomplywiththeconditionsattachedtothegrant.
Accordingly,governmentgrants: a. relatedtoorusedforassetsareincludedintheBalanceSheetasdeferredincomeandrecognisedasincome
overtheusefullifeoftheassets. b. relatedtoincurringspecificexpendituresaretakentotheStatementofProfitandLossonthesamebasisand
inthesameperiodsastheexpendituresincurred. c. byway of financial assistance on the basis of certain qualifying criteria are recognised as they become
receivable. In theunlikely event that a grant previously recognised is ultimately not received, it is treated as a change in
estimateandtheamountcumulativelyrecognisedisexpensedintheStatementofProfitandLoss. xii. Foreignexchangetransactions Transactionsinforeigncurrenciesaretranslatedintothefunctionalcurrencyattheexchangeratesprevailingon
thedateofthetransactions.Foreigncurrencymonetaryassetsandliabilitiesattheyear-endaretranslatedattheyear-endexchangerates.
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)
Non-monetaryitemswhicharecarriedintermsofhistoricalcostdenominatedinaforeigncurrency,arereportedusingtheexchangerateatthedateoftransaction.Thelossorgainthereonandalsoontheexchangedifferencesonsettlementoftheforeigncurrencytransactionsduringtheyeararerecognizedas incomeorexpense inthestatementofprofitandloss.
Foreignexchangegain/losstotheextentconsideredasanadjustmenttoInterestCostareconsideredaspartofborrowingcost.
xiii. Employeebenefits TheCompany’sobligationstowardsvariousemployeebenefitshavebeenrecognisedasfollows: Shorttermbenefits Employeebenefitspayablewhollywithintwelvemonthsofreceivingemployeeservicesareclassifiedasshort-term
employeebenefits.Thesebenefitsincludesalariesandwages,bonusandex-gratia.Theundiscountedamountofshort-termemployeebenefitstobepaid inexchangeforemployeeservices isrecognisedasanexpenseastherelatedserviceisrenderedbyemployees.
Post-employmentbenefits a) MonthlycontributionstoProvidentFundswhichareinthenatureofdefinedbenefitschemesarecharged
toStatementofProfitandLossanddepositedwiththeProvidentFundadministeredthroughtheCompany’strustonamonthlybasis.
b) Theadministrationofthegratuityschemewhichisinthenatureofdefinedbenefitplan,hasbeenentrustedtoLifeInsuranceCorporationofIndia(‘LIC’).AnnualchargeisrecognisedonthebasisofactuarialvaluationattheBalanceSheetdate,conductedbyanindependentactuaryappointedbytheCompanyandpaymentsaremadetoLIConthebasisofannualdemandreceivedfromthem.TheCompanyrecognizesallactuarialgainsandlossesintheStatementofProfitandLoss.
Otherlongtermbenefits Costof long termbenefitbywayofaccumulatingcompensatedabsencesare recognisedwhen theemployees
rendertheservicethat increasestheirentitlementtofuturecompensatedabsences.SuchcostsarerecognisedbasedonactuarialvaluationoftheCompany’syearendobligationinthisregardbyanindependentactuary.
Terminationbenefits CostsofterminationbenefitshavebeenrecognisedonlywhentheCompanyhasapresentobligationasaresultof
apastevent,itisprobablethatanoutflowofresourceswillberequiredtosettlesuchobligationandtheamountoftheobligationcanbereliablyestimated.
xiv. Incometaxes Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with
the income-tax law)anddeferred taxchargeor credit (reflecting the taxeffectsoftimingdifferencesbetweenaccountingincomeandtaxableincomefortheperiod).
a. Currenttax ismeasuredattheamountexpectedtobepaidto(recoveredfrom)thetaxationauthorities,usingtheapplicabletaxratesandtaxlaws.
b. Deferredtaxisrecognizedontemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesandtheamountsusedfortaxationpurposes(taxbase),atthetaxratesandtaxlawsenactedorsubstantivelyenactedbytheendofthereportingperiod.
Deferredtaxassetsarerecognisedforthefuturetaxconsequencestotheextentitisprobablethatfuturevirtualcertaintywillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilised.
Income tax, in so far as it relates to items disclosed under other comprehensive income or equity, aredisclosedseparatelyunderothercomprehensiveincomeorequity,asapplicable.
Deferredtaxassetsandliabilitiesareoffsetwhenthereislegallyenforceablerighttooffsetcurrenttaxassetsandliabilitiesandwhenthedeferredtaxbalancesrelatedtothesametaxationauthority.Currenttaxassetsandtaxliabilitiesareoffsetwheretheentityhasalegallyenforceablerighttooffsetandintendseithertosettleonnetbasis,ortorealizetheassetandsettletheliabilitysimultaneously.
Deferredtaxassetsarereviewedasateachbalancesheetdateandwrittendownorwritten-uptoreflecttheamountthatisreasonablycertain(asthecasemaybe)toberealised.
c. DividendDistribution Dividendspaid(includingincometaxthereon)isrecognisedintheperiodinwhichtheinterimdividendsare
approvedbytheBoardofDirectors,orinrespectofthefinaldividendwhenapprovedbyshareholders.
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)
xv. ProvisionsandContingentliabilities Provisionsarerecognizedonlywhenthereisapresentobligation,asaresultofpastevents,andwhenareliable
estimateoftheamountofobligationcanbemadeatthereportingdate.Theseestimatesarereviewedateachreportingdateandadjustedtoreflectthecurrentbestestimates.
Contingentliabilityisdisclosedfor: • Possible obligationswhichwill be confirmed only by future events notwhollywithin the control of the
Companyor • Presentobligationsarisingfrompasteventswhereit isnotprobablethatanoutflowofresourceswillbe
requiredtosettletheobligationorareliableestimateoftheamountoftheobligationcannotbemade. xvi. Operatingleases Leasepaymentsonoperatingleaseagreementsarerecognisedasanexpenseonastraight-linebasisoverthelease
termunlessthepaymentsarestructuredtoincreaseinlinewithexpectedgeneralinflationtocompensateforthelessor’sexpectedinflationarycostincreases.Associatedcosts,suchasmaintenanceandinsurance,areexpensedasincurred.
xvii. OperatingSegments Operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedtothechiefoperating
decision-maker(CODM).TheCODMwhoisresponsibleforallocatingresourcesandassessingperformanceoftheoperatingsegments,hasbeenidentifiedastheBoardofDirectorsoftheCompany.
xviii. Earningspershare Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders(afterdeductingattributabletaxes)bytheweightedaveragenumberofequitysharesoutstandingduringtheperiod.Theweightedaveragenumberofequitysharesoutstandingduringtheperiodisadjustedforeventsincludingabonusissue.
Forthepurposeofcalculatingdilutedearningspershare,thenetprofitorlossfortheperiodattributabletoequityshareholders and theweighted average number of shares outstanding during the period are adjusted for theeffectsofalldilutivepotentialequityshares.
2. FINANCIAL RISK MANAGEMENT TheCompany’sbusinessactivitiesareexposedtoavarietyofrisksincludingliquidityrisk,creditriskandmarketrisk.The
Companyseekstominimizepotentialadverseeffectsoftheserisksbymanagingthemthroughastructuredprocessofidentification,assessmentandprioritizationofrisksfollowedbycoordinatedeffortstomonitor,minimizeandmitigatetheimpactofsuchrisksonitsfinancialperformanceandcapital.Forthispurpose,theCompanyhaslaidcomprehensiveriskassessmentandminimization/mitigationprocedures,whicharereviewedbytheAuditCommitteeandapprovedbytheBoardfromtimetotime.Theseproceduresarereviewedtoensurethatexecutivemanagementcontrolsrisksbywayofproperlydefinedframework.TheCompanydoesnotenterintoderivativefinancialinstrumentsforspeculativepurposes.Thefollowingtableexplainsthesourcesofriskandhowtheentitymanagestheriskinitsfinancialstatements.Themanagement reviews the status of all principal riskswith a significant potential impact. Additionally, the AuditCommitteecarriedoutfocusedriskreviewsofeachPlantanddivisions.Thesereviewsincludedananalysisofboththeprincipalrisks,andthecontrols,monitoringandassuranceprocessesestablishedtomitigatethoseriskstoacceptablelevels.Asaresultofthesereviews,anumberofactionswereidentifiedtocontinuetoimproveinternalcontrolsandthemanagementofrisk.
Risk Exposurearisingfrom Measurement Management
CreditRisk Cashandcashequivalents,tradereceivables,financialassetsmeasuredatamortisedcost
Ageinganalysis,Creditanalysis
Creditlimitsandlettersofcredit
LiquidityRisk Borrowingsandotherliabilities CashFlowforecasts Creditfacilities
MarketRisk–foreignexchange
RecognisedfinancialassetsandliabilitiesnotdenominatedinINR
CashFlowforecasts Monitoringofcurrencymovement.
MarketRisk–interestrate
LongTermBorrowings/Liabilities ... Monitoringofinterestratemovements
MarketRisk–securityprices
InvestmentinSecurities ... PortfolioManagement
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a. CreditRisk Creditriskarisesfromthepossibilitythatthecounterpartymaynotbeabletosettletheirobligationsasagreed.
Creditriskarisesfromcashandcashequivalents, investmentcarriedatamortisedcost,depositwithbanksandfinancinginstitutionsaswellascreditexposuretocustomerandotherparties.
Forbanksandfinancial institutions,onlyhigh ratedbanks/institutionsareaccepted.Forotherfinancial assets,theentityassessesandmanagescreditriskbasedoninternalcreditevaluation.Itmonitorsparty-wiseexposureandbasedonevaluationcreditratingisallottedforeachparty.Thereafteracreditlimitisassignedtoeachpartydependingonthesolvencyofthesaidparty.
Theentityconsiders theprobabilityofdefaultonongoingbasisandateach reportingperiod.Micro-economicinformationisincorporatedaspartofinternalratingmodel.
Ingeneral,it ispresumedthatcreditriskhassignificantlyincreasedsinceinitialrecognitionifthepaymentsaremorethan180dayspastdue.
TheageingofTradereceivablesi.e.receivableswhicharepastdue(netofallowances/provisions)aregivenbelow:
Ageofreceivables 31 Mar 2019 31 Mar 20181–30dayspastdues 25,267 17,44731–60dayspastdues 12,141 6,30861–90dayspastdues 7,804 2,21791–180dayspastdues 7,642 4,990Morethan180dayspastdues 2,528 3,714
Asper thepolicy,any trade receivablesoverdue formore than365days,equivalentprovision /allowanceareprovidedinthebooksofaccountsontherelevantdate.
b. LiquidityRisk The company objective is to at all times maintain optimum level of liquidity to meet its cash and collateral
requirement at all times. The Company relies on Borrowing tomeet its additional need for fund. The currentcommittedlinesofcreditaresufficienttomeetitsshorttomediumtermexpansionneedsandhenceevaluatestheconcentrationofriskwithrespecttoliquidityaslow.TheCompanymonitorsrollingforecastsofitsliquidityrequirementstoensureithassufficientcashtomeetoperationalneedswhilemaintainingheadroomonitsundrawncommittedborrowingfacilitiesatalltimessothatCompanydoesnotbreachborrowinglimitsorcovenants(whereapplicable)onanyofitsborrowingfacilities.
Thecompanyisrequiredtomaintaindebtequityratioasmentionedintheloanagreementsatspecifiedlevels.Intheeventtomeetanyratiosthesebecomecallableattheoptionofthelenders,exceptwhereexceptionisprovidedbylender.
c. MarketRisk Market risk is therisk that the fairvalueof futurecashflowoffinancial instrumentsmayfluctuatebecauseof
changesinmarketconditions.Marketriskbroadlycomprisesthreetypesofrisksnamelycurrencyrisk,interestrateriskandpricerisk(forcommoditiesorequityinstruments).
(i) ForeignExchangeRisk-ThecompanyoperatesonlyinIndiaandhasnotenteredintoanyforeignexchangeorcommodityderivativecontracts.Accordinglythereinnosignificantexposuretomarketrisk.
(ii) InterestRateRisk- InterestrateexposureoftheCompanyismainlyonBorrowingfromBank/FI,whichislinkedtotheirprimelendingrateandtheCompanydoesnotforeseeanyriskonthesame.
(iii) SecurityPriceRisk–TheManagementinvestsitssurplusfundsinmutualfundsoperatedbyonlyhighratedbanks/institutions. These investments are generally short-term and accordingly there in no significantexposure.
NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)
3 PROPERTY,PLANT&EQUIPMENTS
OwnedAssetsFreehold
Land Buildings Plant and
MachineriesFurniture&Fittings
OfficeEquipments
Vehicles Total
GrosscarryingamountOriginalcostasat1Apr2017 1,853 34,252 2,65,342 4,264 16,223 5,126 3,27,060Additions - 671 14,448 - 665 584 16,368Disposals - - 395 - 26 - 421ClosingGrosscarryingamountasat31Mar2018 1,853 34,923 2,79,395 4,264 16,862 5,710 3,43,007Accumulateddepreciationasat1Apr2017 - 22,256 1,68,938 3,754 15,030 3,098 2,13,076DepreciationfortheYear - 610 12,986 65 305 466 14,432AccumulateddepreciationonDisposals - - 342 - 25 - 367 Accumulateddepreciationasat31Mar2018 - 22,866 1,81,582 3,819 15,310 3,564 2,27,141NetCarryingamountasat1April2017 1,853 11,996 96,404 510 1,193 2,028 1,13,984NetCarryingamountasat31March2018 1,853 12,057 97,813 445 1,552 2,146 1,15,866GrosscarryingamountOriginalcostasat1Apr2018 1,853 34,923 2,79,395 4,264 16,862 5,710 3,43,007Additions - 3,374 40,217 174 535 - 44,300Disposals - - - - - 122 122 ClosingGrosscarryingamountasat31Mar2019 1,853 38,297 3,19,612 4,438 17,397 5,588 3,87,185Accumulateddepreciationasat1Apr2018 - 22,866 1,81,582 3,819 15,310 3,564 2,27,141DepreciationfortheYear - 655 13,829 69 381 470 15,404AccumulateddepreciationonDisposals - - - - - 116 116Accumulateddepreciationasat31Mar2019 - 23,521 1,95,411 3,888 15,691 3,918 2,42,429NetCarryingamountasat31Mar2019 1,853 14,776 1,24,201 550 1,706 1,670 1,44,756Note:NetcarryingamountforVehicleblockincludes`494(31March2018-620)beingassetacquiredunderHirePurchaseoption.
3. CAPITAL WORK IN PROGRESSBalanceasat1Apr2017 495 Balanceasat1Apr2018 953 Addition 953 Addition - Assetscapitalisedduringtheyear 495 Assetscapitalisedduringtheyear 953 Balanceasat31Mar2018 953 Balanceasat31Mar2019 -
3. INTANGIBLEFIXEDASSETS-COMPUTERSOFTWARECOST COSTAsat1Apr2017 6,297 Asat1Apr2018 6,297Additions - Additions - Disposals - Disposals - Asat31Mar2018 6,297 Asat31Mar2019 6,297
ACCUMULATED DEPRECIATION ACCUMULATED DEPRECIATIONAsat1Apr2017 5,237 Asat1Apr2018 5,568Additions 331 DepreciationfortheYear 331 Disposals - AccumulateddepreciationonDisposals - Asat31Mar2018 5,568 Asat31Mar2019 5,899NetCarryingamountasat31Mar2018 729 NetCarryingamountasat31March2019 398
(AmountinRupeesthousand)
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)
4 OTHER FINANCIAL ASSETS
Atamortisedcost Non-current Current 31Mar2019 31 Mar 2018 31Mar2019 31 Mar 2018TopartiesotherthanrelatedpartiesSecuritydeposits
Unsecured,consideredgood 5,772 4,851 2,075 2,2645,772 4,851 2,075 2,264
OtherloansandadvancesUnsecuredconsideredgood,unlessotherwisestated
Interestaccruedonbankdeposits - - 216 41Bankdepositsduetomatureafter12monthsfromthereportingdate(Refernote8)-Heldasmarginmoney
101 118 540 551
Othersreceivable - - 11,295 9,1495,873 4,969 14,126 12,005
5 INVENTORIES (Valuedatlowerofcostornetrealizablevalue)
31Mar2019 31Mar2018
Rawmaterialsandcomponents 35,176 27,050RawmaterialsinTransit 7,907 6,156Storesandsparesparts 6,520 7,598Work-in-progress 68,821 63,575Finishedgoods -Manufactured 13,749 6,691-Traded 792 887
1,32,965 1,11,957
6 CURRENT INVESTMENT
31Mar2019 31Mar2018Non-tradeinvestmentInvestmentinMutualFunds(atfairvaluethroughProfit&Loss)ICICIEquityArbitrageFund 3,412 3,240
2,50,473.720unitswithNAVat` 13.6207(31March2018-2,37,541.482unitswithNAVat`13.6401)
3,412 3,240
ReferNote1.BforinformationaboutfairvaluemeasurementsandNote2forcreditriskandmarketriskininvestments.
7 TRADE RECEIVABLES
31Mar2019 31Mar2018Unsecured,consideredgood 1,58,070 1,47,443Unsecured,considereddoubtful 35,180 35,269
1,93,250 1,82,712Less:Allowancefordoubtfulreceivables 35,180 35,269
1,58,070 1,47,443
ReferNote2forinformationaboutcreditriskandmarketriskonreceivables.
(AmountinRupeesthousand)
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)
8 CASH AND BANK BALANCES
31Mar2019 31Mar2018Cashandcashequivalents
Balancewithbanks:Currentaccounts 8,710 13,972
Cashonhand 124 112 8,834 14,084
DetailsofdepositsBankdepositsduetomaturewithin12monthsofthereportingdateincludedunder‘OtherFinancialAssets(Current)’
540 551
9 OTHER CURRENT ASSETS
Non-current Current31Mar2019 31 Mar 2018 31Mar2019 31 Mar 2018
Unsecuredconsideredgood,unlessotherwisestatedAdvancestoemployees - - 1,185 1,268Balancewithsaletaxauthorities - - 846 847DepositwithRegistrar,DistrictJudgesCourt - - 3,071 - Prepaidexpenses - - 2,416 2,305AdvanceforCapitalGoods - - 1,745 3,180Advancesrecoverableincashorinkindorforvaluetobereceived
-Consideredgood - - 4,186 6,408-Considereddoubtful - - - -
- - 13,449 14,008
10 EQUITY SHARE CAPITAL
31Mar2019 31 Mar 2018Noofshares Amount Noofshares Amount
AuthorisedsharesEquitysharesof`10each 98,00,000 98,000 98,00,000 98,000
98,00,000 98,000 98,00,000 98,000Issued,subscribedandfullypaidupequitysharesof`10each
27,55,600 27,556 27,55,600 27,556
ReconciliationofthesharesoutstandingatthebeginningandattheendofthereportingperiodEquitysharesof`10eachfullypaidupAtthecommencementandattheendoftheyear 27,55,600 27,556 27,55,600 27,556TermsattachedtoequitysharesEachholderofequitysharesisentitledtoonevotepersharewitharighttoreceivepersharedividenddeclaredbytheCompany.Intheeventofliquidation,theequityshareholdersareentitledtoreceiveremainingassetsoftheCompany(afterdistributionofallpreferentialamounts)intheproportionofequitysharesheldbytheshareholders.ThedividendifproposedbytheBoardofDirectorsaresubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.
(AmountinRupeesthousand)
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Particularsofshareholdersholdingmorethan5%sharesoftheCompany
31Mar2019 31March2018Noofshares %ofholding Noofshares %ofholding
Equitysharesof`10eachfullypaidupheldbyMr.RakeshHimatsingka 7,96,452 28.90% 7,96,452 28.90%Mr.SVHimatsingka 8,87,823 32.22% 8,87,823 32.22%Mrs.AnitaHimatsingka 2,75,025 9.98% 2,75,025 9.98%
11 OTHER EQUITY
AttributabletoshareholdersofAssamCarbonProductsLimited TotalOtherEquityCapital
ReserveCapital
RedemptionReserve
GeneralReserve
RetainedEarnings
OtherComponentsofEquityEquity
Instrumentsthroughothercomprehensive
income
OtheritemsofOther
Comprehen-siveIncome
Balanceasat1April2018 3,586 2,244 4,144 50,819 - (944) 59,849Profit/(Loss)fortheyear - - - 50,516 - - 50,516AdjustmentsfordisposalofEquityInstruments
- - - - - - -
OtherComprehensiveIncome/(loss)fortheyear
- - - - - (1,324) (1,324)
TotalComprehensiveIncome/(loss)fortheyear
- - - 50,516 - (1,324) 49,192
Balanceasat31Mar2019 3,586 2,244 4,144 1,01,335 - (2,268) 1,09,041Balanceasat1Apr2017 3,586 2,244 4,144 (6,954) 33 276 3,329Profit/(Loss)fortheyear - - - 57,773 - - 57,773AdjustmentsfordisposalofEquityInstruments
- - - - (33) - (33)
OtherComprehensiveIncome/(loss)fortheyear
- - - - - (1,220) (1,220)
TotalComprehensiveIncome/(loss)fortheyear
- - - 57,773 (33) (1,220) 56,520
Balanceasat31Mar2018 3,586 2,244 4,144 50,819 - (944) 59,849
NatureandPurposeofeachreserveCapitalRedemptionReserve : TheAct requires thatwhereaCompany redeems itsPreferenceShares, a sumequal to thenominalvalueofthesharessoredeemedshallbetransferredtoaCapitalRedemptionReserve.ThiscanbeappliedbytheCompanyinissuingfullypaidBonusShares.GeneralReserve:UndertheerstwhileIndianCompaniesAct,1956aGeneralReservewascreatedthroughanannualtransferofnetprofitataspecifiedpercentageinaccordancewithapplicableregulations.ConsequenttotheintroductionoftheCompaniesAct,2013theserequirementhasbeenwithdrawn.RetainedEarnings:ThisreserverepresentsthecumulativeprofitsoftheCompany.ThisreservecanbeutilisedinaccordancewiththeprovisionsoftheCompaniesAct,2013.ItemsofOtherComprehensiveIncome:ThisrepresentstheeffectsofremeasurementofdefinedbenefitobligationsandfairvalueofequityinstrumentsthroughOCI.
NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
12 BORROWINGS
Non-current Current31Mar2019 31 Mar 2018 31Mar2019 31 Mar 2018
Secured(atamortisedcost)VehicleunderHirePurchase(*) - 118 - -
Unsecured(atamortisedcost)RelatedParties - - 39,500 - Others - - 10,000 -
- 118 49,500 -*Currentportionamountdisclosedunder'otherliabilities'.SecuredThebalanceisrepayablealongwithinterestthroughequatedmonthlyinstalmentsasstipulatedbytheLender.Thebalancecarriesaninterestrateof11.50%andissecuredagainsthypothecationofassetsacquiredfromtheproceedsofsuchamount.Un-securedThebalancecarriesaninterestrateof12%.The Company's Authorised capital includes 20,000 (31March 2018 - 20,000) Cumulative Convertible Preference shares of`100/-each.NoamountisoutstandingagainstsuchPreferenceshares.
13 PROVISIONS
Non-current Current 31Mar2019 31 Mar 2018 31Mar2019 31 Mar 2018ProvisionforemployeebenefitsGratuity(refernote29) 18,331 15,824 10,831 7,223Compensatedabsences 11,148 7,884 1,104 511Provisionforcontingencies - - 10,000 10,000Provisionforwarranties - - 2,188 2,203
29,479 23,708 24,123 19,937
MOVEMENT OF PROVISIONS Provisionforcontingencies Provisionforwarranties31Mar2019 31 Mar 2018 31Mar2019 31 Mar 2018
OpeningBalance 10,000 10,000 2,203 2,523Add:Provisionduringtheyear - - - -Less:Utilisedduringtheyear - - 15 320 ClosingBalance 10,000 10,000 2,188 2,203
a) Provisionforcontingencies TheCompanyhadentered into amemorandumof settlementwithworkersofGuwahati factory in theearlier years
pursuanttowhichtheCompanyhadagreedtopayacertainamounttoworkersonachievementofdesiredproductivitynorms.Basedontheagreementandasestimatedbythemanagement,theCompanyhassetaside`10,000asprovisionforfuturecontingenciesonaccountofvariouspersonnelcostswhichmayresultinpossibleoutflowofresources.
b) Provisionforwarranties Costoffreereplacementofmaterialswasprovidedintheearlieryearsbasedontheestimateoftotalcoststobeincurred
with respect to free replacement of defectivematerials sold to various customers. The closing balance of provisionrepresentstheprobablereplacementdueatafuturedate.
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
14 TRADE PAYABLES
31Mar2019 31 Mar 2018Outstandingduesofcreditorotherthanmicroenterprisesandsmallenterprises 26,744 25,044Outstandingduesofmicroenterprisesandsmallenterprises(*) 2,454 2,351
29,198 27,395DetailsofduestoMicroandSmallEnterprisesasperMicro,SmallandMediumEnterpriseDevelopmentAct,2006(MSMED):ParticularsTheamountsremainingunpaidtomicroandsmallsuppliersasattheendoftheyear
-Principal 2,277 2,174-Interest 177 177
TheamountofinterestpaidbythebuyeraspertheMSMED - -Theamountsofthepaymentsmadetomicroandsmallsuppliersbeyondtheappointeddayduringeachaccountingyear
- -
Theamountofinterestdueandpayablefortheperiodofdelayinmakingpayment(whichhavebeenpaidbutbeyondtheappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedunderMSMED
- -
Theamountofinterestaccruedandremainingunpaidattheendofeachaccountingyear
177 177
Theamountoffurtherinterestremainingdueandpayableeveninthesucceedingyears,untilsuchdatewhentheinterestduesasaboveareactuallypaidtothesmallenterpriseforthepurposeofdisallowanceasadeductibleexpenditureundertheMSMED
177 177
(*)TheamountincludesaPrincipalamountof`1760andinterestof`177whichissubjudiceagainstwhichanamountof`3071hasbeendepositedwithRegistrar,DistrictJudgesCourt.
15 OTHER LIABILITIES
Interestaccruedbutnotdue 358 - VehicleunderHirePurchase(*) 119 186 Creditorforcapitalgoods 3,410 1,430OutstandingLiabilitiesforExpenses 17,087 14,370PayableunderAssignmentAgreement 1,31,190 1,98,690Employeeliabilities 29,027 16,448Statutoryduespayable 5,933 6,804
1,87,124 2,37,928*NonCurrentportionamountdisclosedunder"Borrowings"
16 OTHER CURRENT LIABILITIES
Advancefromcustomer 1,219 2,337SubjudicePartRefundofExciseIncentiveagainstfurnishingSolventSurety 15,829 15,829
17,048 18,166
17 CURRENT TAX LIABILITIES
Provisionfortax(net) 8,814 10,5978,814 10,597
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NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
18 INCOME FROM OPERATIONS 31Mar2019 31 Mar 2018
SaleofproductsOwnmanufactured 5,10,217 4,35,338Traded 1,449 3,009Saleofproducts(gross)* 5,11,666 4,38,347
OtheroperatingincomeScrapsales 1,034 952
Total 5,12,700 4,39,299(*)SaleofproductsManufactured
EG,HC,NGandRBcarbonblocks 60,228 49,374MGandSGcarbonblocks 7,799 9,061Electricalcarbonbrushes 2,30,214 2,23,491MechanicalandSpecialCarboncomponents 2,07,045 1,49,087ISOGraphitecomponents 4,784 3,827Others 147 498
5,10,217 4,35,338Traded
CarbonBrushes 996 2,415CommutatorMaintenanceAccessories 453 594
1,449 3,009
19 OTHER INCOME
Interestincome 251 245DividendIncome 176 194BudgetarysupportunderGSTRegime 8,408 8,383ExciseDutyRefund 1,993 - Provisionandliabilitiesnolongerrequiredwrittenback 1,247 4,582Profitonsale/discardoffixedassets - 49Profitonsaleofinvestmentinequityinstruments - 33 Gainonforeignexchangefluctuation(net) - 146Miscellaneousincome 9 1
12,084 13,633
20 COST OF MATERIALS CONSUMED
OpeningStock 33,206 29,996Add:Purchases 1,34,402 1,05,072
1,67,608 1,35,068Less:ClosingStock 43,083 33,206
1,24,525 1,01,862BreakupofcostofmaterialconsumedLampblack,carbonblack,coke,natural&syntheticgraphite,pitchetc 33,191 27,864Nonferrousmetals,coppersheets,brasssheets,flexiblewires,tubesetc 34,097 29,269Coppersheets,brasssheets,flexiblewires,tubes,rodsetc 13,245 11,640Carbonbrushcomponents 15,947 12,854ISOgraphite&carbonblocks,blanksetc 20,674 15,045Others 7,371 5,190
1,24,525 1,01,862Breakupofinventory-materialsLampblack,carbonblack,coke,natural&syntheticgraphite,pitchetc 19,829 10,657Nonferrousmetals,coppersheets,brasssheets,flexiblewires,tubesetc 5,045 4,485Coppersheets,brasssheets,flexiblewires,tubes,rodesetc 5,211 5,742Carbonbrushcomponents 4,361 4,042ISOgraphite&carbonblocks,blanksetc 6,974 6,967Others 1,663 1,313
43,083 33,206
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21 PURCHASES OF STOCK IN TRADE31Mar2019 31 Mar 2018
Carbonbrushesandaccessories 720 1,792720 1,792
22 CHANGESININVENTORIESOFFINISHEDGOODS,WORKINPROGRESSANDSTOCK-IN-TRADE
OpeninginventoryWork-in-progress 63,575 45,778Finishedgoods-Manufactured 6,691 7,582-Traded 887 530
71,153 53,890Less:ClosinginventoryWork-in-progress 68,821 63,575Finishedgoods-Manufactured 13,749 6,691-Traded 792 887Netincrease (12,209) (17,263)
23 EMPLOYEE BENEFITS
Salaries,wagesandbonus 1,17,704 93,219ContributiontoProvidentandotherfunds 15,118 9,207Workmenstaffwelfareexpense 14,802 12,257
1,47,624 1,14,683
24 OTHER EXPENSES Storesandsparespartsconsumed 38,753 31,276Powerandfuel 64,124 58,256Fabricationcosts 21,926 12,037Repairsto:
-building 5,566 5,678-plantandmachinery 8,897 5,813-others 2,534 2,001
Insurance 645 662 Rent 707 648Commission-others 2,450 2,740Corporatesocialresponsibilityexpenditure(refernote38) 1,000 -Packingandfreight 6,279 4,938Travellingexpenses 8,054 8,919Allowancefordoubtfultradereceivables - 3,342Advances&otherreceivableswrittenoff CY PY 761 1,668BadDebtswrittenoff - 34,091Less:Adjustedagainstallowance - 34,091 - -Ratesandtaxes 1,016 1,510Legalandprofessionalfees 5,283 5,465Auditors'remuneration(refernote36) 485 485Nonexecutivedirectors'commissionandfees 1,297 991 Lossonsale/discardoffixedassets 3 - Lossonforeignexchangefluctuation(net) 25 - Lossonreinstatementofinvestment 4 41Excisedutyrelatedtoincrease/decreaseininventoryoffinishedgoods - 126 Postageandtelephone 1,019 1,010Securitycharges 2,770 2,617Bankcharges 189 250Miscellaneousexpenses 10,765 9,518
1,84,552 1,59,991
NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
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25 (A) Contingentliabilitynotprovidedfor: 31March2019 31March2018(i) Salestaxmattersunderappeal – 499(ii) BankGuarantee (againstwhichequivalent FDRhasbeen lodged
withbank)540 551
(iii) The issueof paymentof backwagesduring theperiodof strike/ lock-out at the Company's Guwahati Unit employees effectivefrom 7 December 2010 to 8 March 2012 has been referred toappropriateauthorities.However,theCompany,ontheprincipleof 'No Work No Pay', has neither ascertained nor made anyprovisionforpaymentofsuchwagesandotheremployeebenefitsfortheperiodofstrikeandlockout.Thelabourmatteriscurrentlysubjudice.
– –
(iv) TheCompanywascompelledtodeclarealock-outatitsPatancheruFactoryfortheperiodfrom5December2016to11January2017due to lighting strike by the workmen. The Company on theprincipleof ‘NoWorkNoPay’hasneitherascertainednormadeanyprovisionforpaymentofwagesandotheremployeebenefitsfortheperiodoflockout.
– –
(B) Capitalandothercommitments(totheextentnotprovidedfor)(i) Estimatedamountofcontracts(netofadvances)remainingtobe
executedonCapitalaccountandnotprovidedfor10,015 127
(ii) OtherCommitments 5 30
26 TheCompanyhasnosignificantforeigncurrencyexposureasattheyearendforwhichhedgingisrequired.
27 DEFERRED TAX
Deferredtaxassets 31March2019 31March2018Provisionfordoubtfulreceivablesandadvances 9,787 12,206Provisionforemployeebenefits(ThroughPL) 10,629 10,195Provisionforemployeebenefits(ThroughOCI) 893 339 Provisionforwarranties 609 762 Carriedforwardtaxlosses - 12,695Total 21,918 36,197DeferredtaxliabilitiesDifferencebetweenwrittendownvalueoffixedassetsasperbooksofaccountsandfortaxpurposes
8,894 11,426
Total 8,894 11,426Deferredtaxasset/(liability)[net] 13,024 24,771
Note:Inviewofabsenceofvirtualcertaintyofrealisationofdeferredtaxassetintheforeseeablefuture,deferredtaxassetisnotrecognisedinthefinancialstatements.
28 EARNINGS PER SHARE:
31March2019 31March2018(a) Weightedaveragenumberofequitysharesoutstandingduringtheyear 27,55,600 27,55,600(b) Netprofit/(loss)aftertaxattributabletoequityshareholders(`'000) 50,516 57,773(c) Basicanddilutedprofit/(loss)perequityshareoffacevalue`10(`) 18.33 20.97
NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
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29 EMPLOYEE BENEFITSI. PostEmploymentDefinedBenefitPlans:(A) Gratuity(Funded) TheCompanyprovidesforgratuity,adefinedbenefitretirementplancoveringeligibleemployees.Aspertheplan,
theGratuityFundTrusts,administeredandmanagedbytheTrusteesandfundedprimarilywithLifeInsuranceCorporationofIndia(LICI),makepaymenttovestedemployeesatretirement,death,incapacitationorterminationofemployment,ofanamountbasedontherespectiveemployee’ssalaryandthetenureofemployment.Vestingoccursuponcompletionoffiveyearsofservice.TheTrusteesareresponsiblefortheoverallgovernanceoftheplanandtoactinaccordancewiththeprovisionsofthetrustdeedandrulesinthebestinterestsoftheplanparticipants.EachyearanAsset-Liabilitymatchingstudyisperformedinwhichtheconsequencesofthestrategicinvestmentpoliciesareanalysedintermsofriskandreturnprofiles.Investmentandcontributionpoliciesareintegratedwithinthisstudy.LiabilitieswithregardtotheGratuityPlanaredeterminedbyactuarialvaluationassetoutinNote1B(ii)(4)baseduponwhich,theCompanymakescontributionstotheEmployees’GratuityFunds.
ThefollowingtablesetsforththeparticularsinrespectoftheGratuityPlan(Funded)oftheCompany:
31March2019 31March2018(a) Reconciliationofopeningandclosingbalancesofthepresentvalueofthe
DefinedBenefitObligation:Presentvalueofobligationatthebeginningoftheyear 54,431 55,679Currentservicecost 3,328 2,415Interestcost 3,908 4,037RemeasurementLossesActuariallossesarisingfromchangesinfinancialassumptions 871 (601)Actuariallossesarisingfromchangesinexperienceadjustments 2,090 (1,000)Benefitspaid 3,699 6,099Presentvalueofobligationattheendoftheyear 60,929 54,431
(b) ReconciliationofopeningandclosingbalancesofthefairvalueofPlanAssetsFairvalueofplanassetsatthebeginningoftheyear 31,384 32,129Interestincome 2,332 2,464RemeasurementGainsReturnonplanassets (250) (381)Contributionfromemployer 2,000 3,271Benefitspaid 3,699 6,099Fairvalueofplanassetsattheendoftheyear 31,767 31,384
(c) ReconciliationofthepresentvalueofthedefinedbenefitobligationandthefairvalueofplanassetsPresentvalueofobligationattheendoftheyear 60,929 54,431Fairvalueofplanassetsattheendoftheyear 31,767 31,384Liabilitiesrecognisedinthebalancesheet 29,162 23,047
(d) ActualReturnonplanassets 2,082 2,083(e) Expenserecognisedintheothercomprehensiveincome
Remeasurementlosses/gain 3,211 (1,220)(f) ExpensesrecognisedinProfitorLoss
Currentservicecost 3,328 2,415(g) Categoryofplanassets
FundedwithLIC 100% 100%(h) Maturityprofileofdefinedbenefitobligation
Within1year 11,226 7,3801-2years 11,872 11,7312-5years 14,803 12,481
NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
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31March2019 31March2018(i) Principalacturialassumptions
DiscountRate 7.43% 7.67%Salarygrowthrate 8% 8%
Assumptionsregardingfuturemortalityexperiencearebasedonmortalitytablesof'IndianAssuredLivesMortality(2006-2008)UltimatepublishedbytheInstituteofActuariesofIndia.Theestimateoffuturesalaryincreasestakesintoaccountinflation,seniority,promotionandotherrelevantfactors,suchasdemandandsupplyintheemploymentmarket.
Changesinassumption Impactondefinedbenefitobligation31March2019
Impactondefinedbenefitobligation31March2018
(j) Sensitivityanalysis
Discountrate Increaseby0.5% Decreaseby`1,888 Decreaseby`1,861
Decreaseby0.5% Increaseby`1997 Increaseby`1,644
Salarygrowthrate Increaseby0.5% Increaseby`1,968 Increaseby`1,616
Decreaseby0.5% Decreaseby`1,879 Decreaseby`1,806
Theabovesensitivityanalysesarebasedonachangeinanassumptionwhileholdingallotherassumptionsconstant.Inpractice,thisisunlikelytooccur,andchangesinsomeoftheassumptionsmaybecorrelated.Whencalculatingthesensitivityofthedefinedbenefitobligationtosignificantactuarialassumptions,thesamemethod(presentvalueofthedefinedbenefitobligationcalculatedwiththeprojectedunitcreditmethodattheendofthereportingperiod)hasbeenappliedaswhencalculatingthedefinedbenefitobligationrecognisedintheBalanceSheet.
Themethodsandtypesofassumptionsusedinpreparingthesensitivityanalysisdidnotchangecomparedtothepriorperiods.
(k) Thecompanyexpectstocontribute`6,000thefundedgratuityplanduringthenextfinancialyear.(B) Providentfund Contributionstowardsprovidentfundsarerecognisedasexpensefortheyear.TheCompanyhassetupProvidentFund
TrustsinrespectofcertaincategoriesofemployeeswhichareadministeredbyTrustees.BoththeemployeesandtheCompanymakemonthly contributions to the Funds at specified percentage of the employee’s salary and aggregatecontributions alongwith interest thereon are paid to the employees/nominees at retirement, death or cessationofemployment.TheTrustsinvestfundsfollowingapatternofinvestmentsprescribedbytheGovernment.TheinterestratepayabletothemembersoftheTrustsisnotlowerthantherateofinterestdeclaredannuallybytheGovernmentunderTheEmployees’ProvidentFundsandMiscellaneousProvisionsAct,1952andshortfall,ifany,onaccountofinterestistobemadegoodbytheCompany.
InviewoftheCompany’sobligationtomeetshortfall,ifany,onaccountofinterest,ProvidentFundtrustssetupbytheCompanyaretreatedasdefinedbenefitplans.
Duringtheyear,theCompany’scontributionof`6,733(Previousyear–`6,198)totheProvidentFundTrustshasbeenexpensedunderthe‘ContributiontoProvidentandOtherFunds’inNote23.
II. PostEmploymentDefinedContributionPlans SuperannuationFund CertaincategoriesofemployeesoftheCompanyparticipateinsuperannuation,adefinedcontributionplanadministered
bytheTrustees.TheCompanymakesquarterlycontributionsbasedonaspecifiedpercentageofeachcoveredemployee’ssalary.TheCompanyhasnofurtherobligationsundertheplanbeyonditsannualcontributions.
III. LeaveObligations TheCompanyprovides foraccumulationof leaveby certain categoriesof itsemployees.Theseemployees cancarry
forwardaportionoftheunutilisedleavebalancesandutiliseitinfutureperiodsorreceivecash(onlyincaseofearnedleave)inlieuthereofaspertheCompany’spolicy.TheCompanyrecordsaprovisionforleaveobligationsintheperiodinwhichtheemployeerenderstheservicesthatincreasesthisentitlement.
ThetotalprovisionrecordedbytheCompanytowardsthisobligationwas`12,252(asat31March,2018`8,395).Theamountoftheprovisioniscurrent,sincetheCompanydoesnothaveanunconditionalrighttodefersettlementforanyoftheseobligations.However,basedonpastexperience,theCompanydoesnotexpectallemployeestotakethefull
NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
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(AmountinRupeesthousand)amountofaccruedleaveorrequirepaymentwithinthenext12months.`11,148isnotexpectedtobetakenorpaidwithinthenext12monthsandshownunderNon-currentportion.
IV. RiskExposure Through itsdefinedbenefitplans, theCompany isexposed to some risks, themost significantofwhicharedetailed
below: DiscountRateRisk TheCompanyisexposedtotheriskoffallindiscountrate.Afallindiscountratewilleventuallyincreasetheultimatecost
ofprovidingtheabovebenefittherebyincreasingthevalueoftheliability. SalaryGrowthRisks Thepresentvalueofthedefinedbenefitplanliabilityiscalculatedbyreferencetothefuturesalariesofplanparticipants.
Anincreaseinthesalaryoftheplanparticipantswillincreasetheplanliability. DemographicRisk Inthevaluationoftheliability,certaindemographic(mortalityandattritionrates)assumptionsaremade.TheCompany
isexposedtothisrisktotheextentofactualexperienceeventuallybeingworsecomparedtotheassumptionstherebycausinganincreaseinthebenefitcost.
30 RELATED PARTY DISCLOSURES(a) Relatedparties(wherecontrolexists) None(b) PersonshavingsignificantinfluenceovertheCompany Mr.RakeshHimatsingka,Chairman Mrs.AnitaHimatsingka Ms.MaalikaHimatsingka Mr.ShauryaVeerHimatsingka(c) KeyManagerialPersonnel Mr.K.K.Bhattacharya,ManagingDirector Mr.PijushBysack,ChiefFinancialOfficer Mr.SubhendhuChakraborty,CompanySecretary&ComplianceOfficer(d) Company/EntityinwhichDirectorisinterestedasDirector IndiaCarbonLimited AssamPlywoodLimited BudgeBudgeCarbonLimited ManavKalyanTrust(e) RelatedpartiesandKeyManagerialPersonnelwithwhomtherehavebeentransactionsduringtheyear:
Nameoftheparty Natureofrelationship
Commission Remunera-tionpaid
Borrow-ings
Interest SittingFees
Receivable/(payable)atyearend
Mr.RakeshHimatsingka Chairman 634 - - - 196 (1,31,761)Mrs.AnitaHimatsingka Director - - - - 168 - Ms.MaalikaHimatsingka Director - - - - 40 - Mr.K.K.Bhattacharjee Keymanagerial
personnel- 1,062 - - - -
Mr.PijushBysack Keymanagerialpersonnel
- 1,669 - - - -
Mr.SubhenduChakraborty Keymanagerialpersonnel
- 587 - - - -
AssamPlywoodLimited RelatedCompany - - 22,500 130 - (22,617)BudgeBudgeCarbonLimited RelatedCompany - - 17,000 249 - (17,224)
Total 634 3,318 39,500 379 404 -
NotestoFinancialStatementsfortheyearended31March2019(Contd.)
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RelatedpartiesandKeyManagerialPersonnelwithwhomtherehavebeentransactionsduringthepreviousyear:
Nameoftheparty Natureofrelationship
Commission Remunerationpaid
Borrowings Interest SittingFees
Receivable/(payable)atyearend
Mr.RakeshHimatsingka Chairman 684 - - - 86 (1,99,305)Mrs.AnitaHimatsingka Director - - - - 45 -Ms.MaalikaHimatsingka Director - - - - 25 -Mr.K.K.Bhattacharjee Keymanagerial
personnel- 1,660 - - - -
Mr.PijushBysack Keymanagerialpersonnel
- 1,583 - - - -
Mr.SubhenduChakraborty Keymanagerialpersonnel
- 532 - - - -
Total 684 3,775 - - 156 -
(f) TheCompanyhaspurchasedrawmaterialsfromIndiaCarbonLimitedamountingto`700(Asat31Mar2018-`537)andsoldfinishedproductsof`784(Asat31Mar2018`NIL).Thebalanceoutstandingasat31Mar2019was`NIL(Asat31Mar2018-`354).
(g) TheCompanyhaspaidanamountof̀ 200(PreviousyearNIL)toManavKalyanTrustunderCorporateSocialResponsibilityActivities.
31 DETAILS OF INVENTORIES OF FINISHED GOODS
31March2019 31March2018ClassofgoodsMGandSGcarbonblocks 193 45Electricalcarbonbrushes 8,526 4,448Machinedandspecialcarboncomponents 4,871 2,060ISO-Graphitecomponents 159 138 Total 13,749 6,691
32 DETAILS OF INVENTORIES OF TRADED GOODS
31March2019 31March2018ClassofgoodsTradingBrush 85 75Commutatormaintenanceaccessories 707 812 Total 792 887
33 CAPITAL MANAGEMENT ForthepurposesoftheCompany’scapitalmanagement,capitalincludesissuedcapital,allotherequityreservesandlong
termaswellasshorttermborrowedcapitallessreportedcashandcashequivalents. TheprimaryobjectiveoftheCompany’scapitalmanagementistomaintainanefficientcapitalstructuretoreducethe
costofcapital,supportthecorporatestrategyandtomaximiseshareholder’svalue. TheCompany’spolicyistomanagetheliquidityprimarilyoutofinternalaccruals.TheCompanyalsomaintainscertain
non-fundbasedfacilitiestoprovideadditionalliquidity.Thesefacilities,togetherwithcashgeneratedfromoperationsareutilisedforoperationsoftheCompany.
TheCompanymonitorscapitalonthebasisofcostofcapital.
NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
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34 CATEGORIES OF FINANCIAL INSTRUMENTSSetoutbelow,isacomparisonbyclassofthecarryingamountsandfairvalueoftheCompany'sfinancialinstruments:
31-Mar-19 31-Mar-18CarryingValue
FairValue CarryingValue
FairValue
A. FinancialAssetsa. Measuredatamortisedcost Cash&CashEquivalents 8,834 8,834 14,084 14,084 TradeReceivables 1,58,070 1,58,070 1,47,443 1,47,443 OtherFinancialassets 19,999 19,999 16,974 16,974 SubTotal 1,86,903 1,86,903 1,78,501 1,78,501b. MeasuredatfairvaluethroughProfit&Loss InvestmentinMutualFund 3,412 3,412 3,240 3,240 SubTotal 3,412 3,412 3,240 3,240TotalFinancialAssets 1,90,315 1,90,315 1,81,741 1,81,741B. FinancialLiabilitiesa. Measuredatamortisedcost Borrowings 49,500 49,500 118 118 TradePayables 29,198 29,198 27,395 27,395 OtherFinancialLiabilities 1,87,124 1,87,124 2,37,928 2,37,928 SubTotal 2,65,822 2,65,822 2,65,441 2,65,441TotalFinancialLiabilities 2,65,822 2,65,822 2,65,441 2,65,441
Themanagementassessedthatcashandcashequivalents,tradereceivables,tradepayables,otherfinancialassetsandotherfinancialliabilitiesapproximatetheircarryingamountslargelyduetotheshort-termmaturitiesoftheseinstruments.
35 FAIR VALUE HIERARCHYThefollowingtableprovidesananalysisoffinancialinstrumentsthataremeasuredsubsequenttoinitialrecognitionatfairvalue,groupedintoLevel1toLevel3,asdescribedbelow:Quotedprices inanactivemarket(Level1):This levelofhierarchyincludesfinancialassetsthataremeasuredbyreferencetoquotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities.Thiscategoryconsistsofinvestmentinquotedequityshares,andmutualfundinvestments.Valuationtechniqueswithobservableinputs(Level2):Thislevelofhierarchyincludesfinancialassetsandliabilities,measuredusinginputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectly (i.e.,asprices)or indirectly (i.e.,derivedfromprices).This levelofhierarchydoesnot includeanyinstrument.Valuationtechniqueswithsignificantunobservableinputs(Level3):Thislevelofhierarchyincludesfinancialassetsandliabilitiesmeasuredusinginputsthatarenotbasedonobservablemarketdata(unobservableinputs).Fairvaluesaredeterminedinwholeorinpart,usingavaluationmodelbasedonassumptionsthatareneithersupportedbypricesfromobservablecurrentmarkettransactionsinthesameinstrumentnoraretheybasedonavailablemarketdata.
31-Mar-19 31-Mar-18LevelI LevelIII LevelI LevelIII
A.FinancialAssetsCash&CashEquivalents - 8,834 - 14,084TradeReceivables - 1,58,070 - 1,47,443OtherFinancialAssets - 19,999 - 16,974InvestmentinMutualFunds 3,412 - 3,240 -
TotalFinancialAssets 3,412 1,86,903 3,240 1,78,501B.FinancialLiabilities
Borrowings - 49,500 - 118 TradePayables - 29,198 - 27,395OtherFinancialLiabilities - 1,87,124 - 2,37,928
TotalFinancialLiabilities - 2,65,822 - 2,65,441
NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
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36 AUDITORS' REMUNERATION INCLUDES31Mar2019 31 Mar 2018
(a)Statutoryauditfees 375 375(b)LimitedReviews 30 30 (c)CertificationandOtherassignments 80 80
485 485
37 IncentivedeclaredbytheGovernmentof India toeligible IndustrialunitsunderCentralExcise towardsrefundofexcise duty paid through PLA (Current Account) on finished products vide Notification No. 32/1999-CE dated 8July 1999 (as amended)was reduced from100% to 36%during 2008. Being aggrievedby such reduction in theExcisebenefit,someof thebeneficiariesapproachedtheCourtofLaw.TheHon’bleSupremeCourthaddirectedtheGovernment through an interimorder dated7December 2015 to refund50%of thedifferential amount totheCompanyonfurnishingsolventsurety.Thus,tillthefinalorderispassedbytheSupremeCourt,the50%ofthedifferentialamountof`15,829thousandreceivedbytheCompanyduringthefinancialyear2016-17isliabletoberefundedondemandbytheGovernment.Therefore,thesamehasbeentreatedasCurrentLiabilitiesintheBalanceSheetandthefinalorderisstillawaited.
38 EXPENDITUREONCORPORATESOCIALRESPONSIBILITY(CSR)Fortheyearended
31Mar2019Fortheyearended
31 Mar 2018(a) Grossamountrequiredtobespent 792 - (b) Amountspent:
(i)Construction/acquisitionofanyasset - - (ii)Onpurposeotherthan(i)above 1,000 -
(c) AdministrativeExpenses - -
39 AMemorandum of Settlement has been arrived on 26.02.2019 related to the Guwahatiworkmen against theirCharterofDemandsresultingtoaliabilitytothetuneof`12,135fortheperiodfromJune2016tillJanuary2019whichhasbeenfullyprovidedfor.
40 Figuresof theprevious yearhavebeen re-arranged / regroupedwherevernecessary inorder to conform to thecurrentyear’sclassification.
41 Theincome-taxexpensesfortheyearcanbereconciliedtotheaccountingprofitasfollows:Fortheyearended
31Mar2019Fortheyearended
31 Mar 2018Profitbeforetax 63,411 68,[email protected]%(2018-20.39%) 12,930 14,016OtherDifferences - 642Total 12,930 14,658Adjustmentrecognisedinthecurrentyearinrelationtothecurrenttaxofprioryears
(35) (3,685)
IncometaxrecognisedinProfit&Loss 12,895 10,973Income-taxprovisionhasbeenmadeinaccordancewiththeprovisionsofsection115JBoftheIncome-taxAct,1961.
AsperourreportofevendateattachedForD.Basu&Co. ForandonbehalfoftheBoardofDirectorsofCharteredAccountants AssamCarbonProductsLimitedFirmRegistrationNo.:301111E RakeshHimatsingka K.K.Bhattacharya S.K.LhilaAshisRanjanMaitra Chairman ManagingDirector DirectorPartner (DIN:00632156) (DIN:07011241) (DIN:01383460)MembershipNo.:056520Place:Kolkata SubhenduChakraborty PijushBysackDate:30.04.2019 CompanySecretary ChiefFinancialOfficer
NotestoFinancialStatementsfortheyearended31March2019(Contd.)(AmountinRupeesthousand)
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DearShareholder,Re : FolioNo(s).Sub : UpdationofShareholders’detailsintherecordsoftheCompanyDearSir/Madam,Thisisinreferencetoourearliercommunicationsonvariousdates.WefindfromourrecordsthatyouholdsharesinourCompanyinthephysicalmode.Inthisregard,wewouldliketobringtoyourkindattention,thefollowings–UpdatingBankMandate,PAN,andcontactdetailsAspertheCompaniesAct,2013,SEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,andSEBICircularNo.SEBI/HO/MIRSD/DOP1/CIR/P/2018/73datedApril20,2018,alllistedCompaniesarerequiredtomakepaymentofdividend,ifdeclared,tothemembersthroughelectronicmodeandtomaintainupdatedBankdetailsofthemembers/beneficiaries.Wewouldalsoliketohaveyourcontactdetailsforpaperlessandspeedycommunicationtoyou.Inthisrespect,youarealsorequestedtogiveyourconsenttoreceiveallfurthercommunicationsinelectronicmode.Further, to facilitate speedy disbursal of dividend to your bank account, as andwhen itwill be declared and speedy communication and to complywith the SEBIRegulations,werequestyoutokindlyfilluptheenclosedformwithyourbankaccountdetailsfromwhereyouwillcollecttheproceedsofthedividendpaymentandyourcontactdetails,signtheformandarrangetodispatchthesamedirectlytoourRTA,vizM/sCBMANAGEMENTSERVICES(P)LTD(UNIT:AssamCarbonProductsLtd)P-22,BONDELROAD,KOLKATA700019within21daysofthisletter.PleasenotethatasperthelatestSEBIcircular,theshareholdersarerequiredtoprovide:1) acopyofthePANcardand2) originalcancelledchequeleaf/attestedbankpassbookshowingnameofaccountholder. (IncaseofresidentsofSikkim,therequirementofPANCardbesubstitutedwithavalidIdentityproofissuedbyGovernment.)SecuritiesholderswhoareunabletorespondtothisnoticeandprovidePANandbankdetailswithin180daysoftheSEBIcircularorhaveinformedthatthesecuritiesavailableintheirnameaspertherecordsofRTAdoesnotbelongtothem,shallbesubjecttoenhancedduediligencebytheCompany.DematerializationofSharesYouwouldkindlyappreciatethat intoday’sscenarioand in linewith"green initiative"bygovernment inthisregardwhichencouragespaperlessholding,thesafestpossiblewaytoholdshares is indematerialized form. Incaseofphysicalholding, theremaybeachanceof lossofsharecertificate,mutilationthereof resulting incomplianceonyourpart, certainmatters to restore the share certificates.Besides, if youwant topledge shares, theholdingmustbe indematmode. Further thedematerializationofshareswouldalsofacilitatetransfertoandclaimfromtheIEPFAuthority.Therefore,wewouldliketosuggesttoyoutokindlyconvertyoursharesoffacevalueof`10/-eachfromphysicalmodetodematmodeasitwillbebeneficialtoyou.Incaseyoudonothaveanydemataccount,youmaycontactyournearestDepositoryParticipant(DP)whowillguideyouinopeningthesame.Conversionofphysicalsharestodematerializedsharesisasimpleprocess. FurtherasperSEBInotificationNoSEBI/LAD-NRO/GN/2018/24dated8thJune2018nosaleorpurchasewillbeallowedinphysicalformw.e.f180daysfromthedateofpublicationofthesaidnotificationintheofficialgazettei.e.effectivefrom5thDecember,2018.Thedeadlinewasfurtherextendedtill1stApril,2019,videSEBI’sPRNo.:49/2018dated3rdDecember,2018.Yourkindco-operationinthismatterissolicited.Kindlyignorethisletter,ifalltherequirements,asaforesaid,havealreadybeendonefromyourend.Thankingyou,Yoursfaithfully,ForAssamCarbonProductsLtd.Sd/-S.ChakrabortyCompanySecretary&ComplianceOfficerEncl:a/a
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------BANK MANDATE AND EMAIL ID REGISTRATION FORM
To,CBMANAGEMENTSERVICES(P)LTD.,(UNIT:AssamCarbonProductsLtd,)P-22,BONDELROAD,KOLKATA700019Phone:(033)40116700/17/18DearSirs,I/We givemy/our consent to update the following details in the records of Assam Carbon Products Limited and to henceforth arrange allpaymentsandothercommunicationsbyelectronicmeansincompliancewithCompaniesAct,2013andSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015:ShareholderDetails BankAccountDetailsofFirstHolderFolioNo. BankNameNameofShareholder(s) BranchAddressFirstHolderSecondHolderThirdHolder AccountNo.PAN(FirstHolder) AccountType Savings/Current*EmailID(FirstHolder) IFSCMobileNo.(FirstHolder) MICRCode
*StrikeoutwhicheverisnotapplicableDate: Signature(s) Firstholder : Secondholder : Thirdholder :Encl:PhotocopyofPANcarddulyselfattested/OriginalcancelledChequeleaf/PhotocopyofBankpassbook-statementdulyselfattested.
ASSAM CARBON PRODUCTS LIMITED Regd. Office: Narengi Chandrapur Road, Birkuchi, Narengi, Guwahati -781026, Assam CIN: L23101AS1963PLC001206 Website: www.ascarbon.in, Ph: (0361)2640262/630, Fax: (0361)2640368, Email: [email protected]
ATTENDANCE SLIP
Folio No/DP ID & Client ID : Serial No. : Name of the Member(s) : Registered Address : No. of Share(s) Held :
I/We hereby record my/our presence at the 56th Annual General Meeting (AGM) of Assam Carbon Products Limited (“the Company’) held on Friday, 27th September, 2019 at 11.45 a.m. at the Regd. Office of the Company at Narengi Chandrapur Road, Birkuchi, Narengi, Guwahati -781026, Assam. ……………………………………………………………………….…. ………………………………………………………………………
Name of Shareholder / Proxy (in Block Letters) Signature of Shareholder / Proxy Present Note: Please bring the Attendance Slip duly signed to the meeting and hand it over at the Entrance of the Meeting Hall. Duplicate slips will not be issued at the venue of the AGM.
ELECTRONIC VOTING PARTICULARS
EVSN (Electronic Voting Sequence Number) User ID Password
Note: Please refer to the Notice of the 56th Annual General Meeting for e-voting instructions.
56h Annual General Meeting on Friday,
27th September, 2019 at 11.45 a.m.
ASSAM CARBON PRODUCTS LIMITED Regd. Office: Narengi Chandrapur Road, Birkuchi, Narengi, Guwahati -781026, Assam CIN: L23101AS1963PLC001206 Ph: (0361)2640262/ 2640630, Fax: (0361) 2640368 Website: www.ascarbon.in, Email: [email protected]
PROXY FORM
[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014]
Name of the Member(s): ……………………………………………………………………………………………………………………………………………..………………………………….……………………. Registered Address: …………………………………………………………………………………………………………………………………………………..………………………………………………………… E-mail ID: ……………………………………………………………………………………………………………………………………………………………………..………………………………….……………………. Folio No/DP ID & Client ID: ………………………………………………………………………………………………………………………………………..………………………………………………………… I/We, being the Member(s) of Assam Carbon Products Limited, holding………………………….Equity Shares of the Company, hereby appoint: 1) Name: ………………………………………………………………………..……………Address: ……………………………………………………………....……………………………………………………….
E-mail ID: ………………………………………………………………………..………Signature: ………………………………………………………………………………..………..or failing him/her; 2) Name: ………………………………………………………………………..……………Address: ……………………………………………………………………………………………………………………….
E-mail ID: ………………………………………………………………………..………Signature: ……….………………………………………………………………………..………..or failing him/her; 3) Name: ………………………………………………………………………..……………Address: ………………………………………………………………….……………………………………………………. E-mail ID: ………………………………………………………………………..………Signature: ………………………………………………………………………………..…………………………………….
as my/our Proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 56th Annual General Meeting (AGM) of the Company, to be held on Friday, 27th September, 2019 at 11.45 a.m. at the Registered Office of the Company at Narengi Chandrapur Road, Birkuchi, Narengi, Guwahati -781026, Assam and at any adjournment thereof in respect of such resolutions as are indicated below:
Resolution No.
Resolutions Optional * For Against
Ordinary Business
1. Ordinary Resolution for the consideration and adoption of the Audited Financial Statements of the Company for the Financial Year ended 31st March, 2019, together with the Reports of the Board of Directors & Auditors thereon.
2. Ordinary Resolution for the re-appointment of Mrs. Anita Himatsingka, (DIN: 01201879), who retires by rotation and being eligible offers herself for reappointment.
3. Ordinary Resolution for the re-appointment of Ms. Maalika Himatsingka, (DIN: 07811394), who retires by rotation and being eligible offers herself for reappointment.
Special Business
4. Ordinary Resolution for the appointment of Mr. Susheel Kumar Sharma (DIN: 01636111) as the Director of the Company.
5. Ordinary Resolution for the appointment of Mr. Sandip Modi (DIN: 01797999) as an Independent Director of the Company.
6. Special Resolution for the re-appointment of Mr. Sanjay Kumar Lhila (DIN: 01383460) as an Independent Director of the Company, to hold office for a second term of 5 (five) consecutive years, with effect from 31st March, 2020.
7. Special Resolution for the re-appointment of Mrs. Rupanjana De (DIN: 01560140) as an Independent Director of the Company, to hold office for a second term of 5 (five) consecutive years, with effect from 31st March, 2020.
8. Ordinary Resolution for the ratification of remuneration payable to the Cost Auditors of the Company M/s. A S & Associates (Firm Regd. No.: 000523).
9. Special Resolution for obtaining the consent of the members of the Company for approval of transactions pursuant to Section 185 of the Companies Act, 2013.
10. Special Resolution for the approval of the Payment of Commission, upto 1% of the net profits of the Company, to Mr. Rakesh Himatsingka, (DIN: 00632156) Non-Executive Chairman of the Company, for the financial year 2018-2019 and onwards.
Signed this …………………………………………….day of …………………………………….2019
Member’s Folio/ DP ID- Client ID No.: ………………………………………………………………
Signature of Shareholder(s)………………………………………………………………………….. Signature of Proxy Holder(s) ……………………….……………… Notes: 1. This form of proxy in order to be effective should be duly completed and deposited at the Company’s Registered Office not less than 48 hours before the commencement of
the AGM. 2. For the Resolutions, Explanatory Statement and Notes please refer to the Notice of 56th Annual General Meeting of the Company. 3. *It is optional to put a ‘X’ in the appropriate column against the resolutions indicated in the box. If you leave the ‘For’ or ‘against’ column blank against any or all the
resolutions, your Proxy will be entitled to vote in the manner as he/she thinks appropriate.
Affix Revenue
Stamp
ASSAM CARBON PRODUCTS LTD.CIN: L23101AS1963PLC001206 Birkuchi, Narengi Chandrapur Road,Narengi, Guwahati- 781 026, Assamor6, Old Post Office Street, Temple Chambers, 5th Floor, Kolkata- 700001
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