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Your Directors have pleasure in presenting the Thirtieth Annual Report and Company's Audited Financial Statements for the financial year ended March 31, 2015.
REVIEW OF OPERATIONS AND STATE OF AFFAIRS:
On a Consolidated basis, total income for the financial year 2014–15 at Rs. 786.11 Crores was higher by 1.63% over last year (Rs. 773.49 Crores in 2013–14). Earnings before interest, tax, depreciation and amortisation (EBITDA) was Rs. 146.75 Crores registering growth of 1.83% over EBITDA of Rs.144.11 Crores in 2013–14. Net profit after tax and minority interest increased to Rs.18.26 Crores from Rs. 0.20 Crores during 2013–14.
On Standalone basis, total income for the financial year 2014–15 at Rs. 110.45 Crores was higher by 3.67% over last year (Rs. 106.54 Crores in 2013–14).Earnings before interest, tax, depreciation and amortisation (EBITDA) was Rs. 94.78 Crores registering a growth of 5.26% over EBITDA of Rs. 90.04 Crores in 2013–14. Profit after tax (PAT) increased by 12.88% to Rs. 92.59 Crores over PAT of Rs. 82.03 Crores in 2013–14.
Your Directors have declared interim dividend of R 15 per Equity Share (150 % Dividend on face value of Rs. 10/– per Equity Share) for financial year 2014–15 which has been paid. Your Directors have recommended interim dividend as the final dividend for the financial year 2014–15. The interim dividend involving a cash outflow of Rs. 37.00 Crores including Dividend Distribution Tax, representing 39.96% of the current year earnings.
TRANSFER TO RESERVES:
An amount of Rs. 9.26 Crores was transferred to the General Reserve and an amount of Rs. 542.08 Crores has been carried forward as Balance in the Statement of Profit and Loss.
REVIEW OF INDIAN ECONOMY:
The fiscal year 2014–15 has been a year of change, a year of high expectations and a year of mixed results for the Indian economy. Initial estimates for fiscal year 2014 (ending March 31, 2015) by the Government show that economic growth accelerated to 7.4%. A more robust economic performance as compared to earlier estimates emerged from revised data based on an updated base year, wider coverage of goods and services, and the inclusion of tax data to estimate economic activity. Monthly industrial production estimates indicate a more modest upturn. The production of capital goods expanded after three years in the red. However, consumer durables continued to decline. Improved coal production helped double the growth of electricity generation over the previous year's rate.
International Monetary Fund has projected that India will overtake China as the fastest growing emerging economy in 2015–16 by clocking a growth rate of 7.5%, helped by its recent policy initiatives, pick–up in investments and lower oil prices. World Bank too has similar GDP growth forecast for India for the current fiscal year.
These estimates are largely based on India's economy now being on a cyclical upswing and forward–looking indicators suggest domestic demand is gathering momentum. Low inflation has enabled the Reserve Bank of India to cut interest rates easing pressure on the private sector. Lower rates as well as the government's infrastructure and disinvestment programs should provide a boost to domestic–oriented industries. The dampener to these growth expectations could be the monsoons. Overall therefore, the economy is expected to do better in fiscal year 2016 compared to fiscal year 2015.
Hinduja Energy (India) Limited (HEIL):
India is the fifth largest producer and consumer of electricity in the world, after China, US, Russia and Japan. Power generation has grown more than 100 fold since independence, while demand growth has been even higher due to accelerated economic activity. The total installed capacity in the country crossed 270 GW, out of which over 69% is thermal power generation capacity. Private sector contributes over 35% of this capacity while rest belongs to central as well as state utilities. Emphasis is being given by the new Government on assured fuel availability and incentives are being given for renewable energy sector.
Hinduja National Power Corporation Limited's (a Subsidiary of HEIL) Greenfield 1040 MW Thermal Power Project in Visakhapatnam is expected to get commissioned in FY 2015–16 thus creating value for its investors from this year onwards.
Grant Investrade Limited (GIL):
GIL has embarked on a project for setting up infrastructure to provide services under the Headend–in–the–Sky (HITS) platform to the Cable TV industry. The Company has now got all its approvals from the Government of India, which includes mainly from Ministry of Information & Broadcasting (MIB) and Department of Telecommunications (DoT) for the HITS platform.
The brand name of the "Headend–in–the–Sky" (HITS) services to be provided by GIL is 'NXT Digital'.
HITS is a satellite multiplex service that provides cable channels to cable television operations. The HITS service effectively replaces the more complex traditional headend (A headend is a local operations center that receives, process and retransmits TV channels and other services) operations. At a traditional cable television headend, multitudes of satellite dishes and antennae are used to grab cable stations from dozens of communication satellites. In contrast, HITS combines cable stations (or TV channels) into multiplex signals on one or a few satellites. Cable networks can then pull in hundreds of channels at the local headend with relatively little equipment for onward digital distribution to subscriber homes.
HITS as a concept was developed to deliver signals to small cable headends that did not find it viable to install their own Conditional Access Systems (CAS) and centralized services like SMS and billing.
At the same time, the HITS platform delivers a huge number of pay television channels. This provides the HITS end consumer the largest possible choice of pay channels. This exactly is the need of the cable operators in the smaller towns constituting the Phase III & IV locations for the digitalisation program. GIL believes that the entire expansion in the Phase III & IV cities for digitalisation can best be addressed through the HITS technology owing to the superior technology, cost effectiveness as compared to the traditional methods of transmitting signals through fibre, low investment in capital equipment by the cable operators and at the same time world class quality of service is ensured for the consumers.
The total size of Phase III & IV market is approximately 100 million homes of which GIL expects to cover atleast 10 million in the next two years, especially in Phase III.
IndusInd Media & Communications Limited (IMCL):
As per a recent KPMG report, "digitalisation has changed the role of MSOs from being a B2B service provider to a B2C service provider and it is taking time for MSOs to build internal processes to reflect this change in business model." In line with the above trend, after having successfully implemented digitalisation in Phase I & II cities during the financial years 2012–13, 2013–14 and in the fiscal year 2014–15, IMCL's focus is on providing better consumer service and simultaneously bring in efficiency in operations.
The Company has achieved this by taking various steps like packaging of channels so that consumer get to choose and pay for what they view; providing the consumer with the option of making payments either through pre–paid or post paid mechanisms; improving turnaround time for attending to consumer complaints, etc. These steps have yielded good results through improved customer satisfaction, improved Average Revenue Per User (ARPU), improved collections and cost efficiencies.
IMCL is now taking steps to expand in the Phase III & IV digitalisation program. Phase III digitalisation deadline is December 31, 2015 and Phase IV is December 31, 2016. This expansion will have very little investment requirement, as IMCL will rely on the HITS platform provided by GIL, a fellow subsidiary Company for the launch, both with respect to the headend equipment and the set top boxes. For this purpose, IMCL has entered into an MoU with GIL for provision of passive white label infrastructure services. This will enable IMCL to upgrade its consumer base to a very high level of sophisticated digital video services at very minimum cost.
With a combination of improvement in operating efficiencies as mentioned above and an expansion in the next digitalisation program, IMCL, has passed over the difficult period it encountered in the past two years and is now on the road to recovery. With a mix of conventional DAS and HITS backend, IMCL expects to cover approximately 5 million homes in next two years.
IN ENTERTAINMENT (INDIA) LIMITED (INEL):
Digitisation has paved way for niche content platforms to monetize their reach and value. INEL is being restructured to harness this opportunity. CVO, In Digital Classic, In Digital Music are being restructured on account of programming, on–air packaging, reach and sales to take its rightful place in the Industry. Inorganic acquisitions will enable creating a good mix of in house channels to feed the HITS and DAS platforms.
Teleshopping business also is being restructured to improve product line, bring in cash–and–carry model and generate orders from relevant media. A multi–level e–commerce business model is being developed.
Digitisation of CATV Industry and HITS project present a significant opportunity to further growth of content business of INEL.
FUTURE OUTLOOK – MEDIA & CABLE TV SECTOR:
In the calendar year 2014, the Indian Media and Entertainment (M&E) Industry grew by 11.7% to reach INR 1026 Billion. It is expected to grow at a Compounded Annual Growth Rate (CAGR) of 13.9% in next 5 years to reach a value of INR 1964 Billions.
2014 has been a turning point for the Media and Entertainment Industry in India in many ways. With the current government's optimistic outlook, business sentiment has been positive and strengthened by a number of growth promoting policies. In the media sector, digital media continued its rapid growth, indicated by 44.5% growth in digital advertising in 2014.
In Television, advertising saw strong growth, driven by the positive shift in macroeconomic environment, the general election spends, and emergence of e–commerce as a significant new advertising spender.
The Print sector, although remaining highly fragmented, witnessed a rise in the circulation revenue on the back of rising cover prices and subscriptions.
In 2014, the TV industry grew by 13.8% to reach INR 474.9 Billion. It is expected to grow at a CAGR of 15.5% to reach INR 975 Billion by 2019 on the backs of increasing number of subscribers, higher ARPUs due to digitisation, and higher advertisement revenues.
Despite the introduction of Digital Addressable System (DAS), the anticipated improvement in addressability, improvement in subscription revenue and more equitable sharing of subscription revenue are being realized at a slow pace.
The Ministry of Information and Broadcasting (MIB) has extended the deadlines for the implementation of DAS in Phase III and Phase IV to December 31, 2015 and December 31, 2016, respectively. DAS rollout in Phase III and IV is expected to be more challenging on account of larger geographical spread, funding requirements and low potential for ARPUs.
HITS (Headend–in–the–Sky) technology and collaboration between larger MSOs and regional MSOs are expected to play important roles for MSOs in grabbing maximum share of the market in Phase III and IV. Challenges from DTH platforms and integrated telecom service providers with deep pockets will have to be faced with innovative consumer friendly cable services utilizing both the traditional MSO networks and the HITS platform.
AMALGAMATION OF IDL SPECIALITY
CHEMICALS LIMITED WITH THE COMPANY:
The Board of Directors of your Company has approved the Scheme of Amalgamation of IDL Speciality Chemicals Limited, a wholly owned subsidiary with your Company at its meeting held on April 24, 2015. The Scheme envisages resulting in consolidation of the business in one entity and strengthening the position of merged entity by enabling it to harness and optimize the synergies of the two companies. Once the scheme is approved, there will be an increase in the trading stock of a listed share in the banking sphere and a significant increase in the land bank for the two metros of Hyderabad and Bengaluru.
Your Company has received observation letters from BSE Limited and National Stock Exchange of India Limited vide letters No. DCS/AMAL/ CS/24(f)/102/2015–2016 dated July 17, 2015 and NSE/LIST/34175 dated July 17, 2015 respectively in respect of the scheme. Your Company has filed the scheme in the High Court of Judicature at Bombay on July 23, 2015. The Hon'ble High Court, Bombay vide its order dated July 31, 2015 has directed for Court Convened Meeting of the members of the Company to be held on September 01, 2015. The appointed date for the Scheme is April 01, 2015.
PERFORMANCE AND FINANCIAL POSITION OF THE SUBSIDIARIES:
Report on the performance and financial position of the subsidiaries has been provided in Form AOC–1 annexed as Annexure "A" to this report.
Pursuant to the provisions of Section 136 of the Companies Act, 2013 ("the Act"), the financial statements of the Company including consolidated financial statements along with relevant documents and separate audited accounts in respect of subsidiaries are available on the website of the Company www.hindujaventures.com
CONSOLIDATED FINANCIAL STATEMENTS:
In accordance with the Act and Accounting Standard AS–21 on Consolidated Financial Statements read with Accounting Standard AS–23 on Accounting for Investments in Associates and AS–27 on Financial Reporting of Interest in Joint Ventures, the audited Consolidated Financial Statements are provided in the Annual Report.
NATURE OF BUSINESS:
The Company is engaged in Media, Investment, Treasury and Real Estate. There was no change in the nature of the business of the Company during the year under review.
WHOLE–TIME DIRECTOR (WTD) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICATION:
The Whole–Time Director (WTD) and Chief Financial Officer (CFO) Certification as required under Clause 49(IX) of the Listing Agreement and the Whole–Time Director's declaration about the code of conduct are furnished in Annexure "B" and Annexure "C" to this report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Considering the nature of the business of your Company, there are no particulars to be disclosed relating to the Conservation of Energy, Research and Development & Technology Absorption pursuant to Section 134(3)(m) of the Act during the year under review.
The details of Foreign Exchange Earnings and outgo are given in Annexure "D" to this report.
As required under Clause 49 of the Listing Agreement, a detailed Report on Corporate Governance is annexed as Annexure "E" to this report.
The Statutory Auditors of your Company have examined the Company's compliance with regulations and have certified the same as required under the Listing Agreement. The certificate is annexed as Annexure "F" to this report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Pursuant to Clause 49 of the Listing Agreement, a separate Management Discussion and Analysis Report covering a wide range of issues relating to industry trends, Company performance, SWOT analysis, business outlook etc. is annexed as Annexure "G" to this report.
Your Company has not accepted any deposits from the public within the meaning of Chapter V of the Act and as such, no amount of principal or interest was outstanding as on the balance sheet date.
INTERNAL FINANCIAL CONTROL SYSTEM AND ITS ADEQUACY:
The Company maintains an adequate system of internal financial control with reference to financial statements, to ensure that all assets are safeguarded against loss from unauthorised use or disposition. Company policies, guidelines and procedures are in place to ensure that all transactions are authorised, recorded and reported correctly.
EXTRACT OF ANNUAL RETURN:
The details forming part of the extract of the Annual Return in Form MGT–9 is annexed herewith as Annexure "H" to this report.
LOANS, GUARANTEES AND INVESTMENTS:
Details of the loans, guarantees and investments covered under the provisions of Section 186 of the Act are given in Note 15 of the Notes to Financial Statements.
RELATED PARTY TRANSACTIONS:
All transactions entered by the Company with the related parties were in ordinary course of business and were on arm's length pricing basis.
During the year, the Company has not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions. Suitable disclosures as required under AS–18 have been made in Note 29 of the Notes to the Financial Statement.
Since all the transactions/ contracts/ arrangements of the nature as specified in Section 188(1) of the Act entered by the Company during the year under review with related party/(ies) are in the ordinary course of business and on arm's length basis, no particulars in Form AOC–2 is furnished as Section 188(1) of the Act is not applicable.
The Related Party Transactions policy as approved by the Board is disclosed on Company's Website at the web link: <http://www.hindujaventures.com/> en/inv/pdf/policy–related–party–transactions.pdf
DIRECTOR'S RESPONSIBILITY STATEMENT:
Your Directors to the best of the knowledge and belief and according to the information, explanation and representation obtained by them and after due enquiry, make the following statements in terms of Section 134(3)(c) and 134(5) of the Companies Act, 2013:
i. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
ii. that appropriate accounting policies have been selected and applied consistently and made judgments and estimates that are reasonable and prudent have been made so as to give a true and fair view of the state of affairs of your Company as on March 31, 2015 and of the profit of the Company for the year ended March 31, 2015;
iii. that proper and sufficient care to the best of their knowledge and ability has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. that the annual accounts have been prepared on going concern basis;
v. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively; and
vi. that systems to ensure compliance with provisions of all applicable laws were in place and were adequate and operating effectively.
DIRECTORS AND KEY MANAGERIAL PERSONNEL:
The following directors have resigned from the Board of the Company:
1. Mr. Hemraj Asher (DIN: 00024863), Independent Director with effect from June 05, 2014.
2. Mr. Ravi Mansukhani (DIN: 00155193), Alternate Director to Ms. Vinoo Hinduja with effect from August 12, 2014.
3. Ms. Vinoo Hinduja (DIN: 00493148) with effect from January 30, 2015.
4. Mr. Prakash Shah (DIN: 00120671), Independent Director with effect from the close of business hours of April 24, 2015.
The Board places on record its appreciation for the valuable contribution and guidance provided by Mr. Hemraj Asher, Mr. Ravi Mansukhani, Ms. Vinoo Hinduja and Mr. Prakash Shah.
At the ensuing Annual General Meeting of the Company to be held on September 23, 2015, Mr. Ramkrishan P. Hinduja, (Director) will retire by rotation. Mr. Ramkrishan P. Hinduja has not offered himself for re–appointment due to understandable pre–occupations and the vacancy caused by retirement by rotation of Mr. Ramkrishan P. Hinduja, will not be filled up at the ensuing Annual General Meeting to be held on September 23, 2015 or any adjournment thereof. The Board places on record its appreciation for valuable contributions made by him during his tenure.
In accordance with the provisions of Section 161(1) of Companies Act, 2013 ("the Act") and Article 124 of the Articles of Association of the Company, Mr. Prashant Asher (DIN: 00274409), Ms. Bhumika Batra (DIN: 03502004) and Mr. Sudhanshu Tripathi (DIN: 06431686) were appointed as Additional Directors with effect from September 23, 2014; March 11, 2015 and August 04, 2015 respectively.
The Company has received a notice under Section 160 of the Act along with the requisite deposits proposing the appointment of Mr. Prashant Asher, Ms. Bhumika Batra and Mr. Sudhanshu Tripathi and the resolutions seeking the approval of the Members for appointment of Mr. Prashant Asher, Ms. Bhumika Batra and Mr. Sudhanshu Tripathi have been incorporated in the notice of forthcoming Annual General Meeting of the Company along with the brief details about them.
Appointment of Mr. Prashant Asher and Ms. Bhumika Batra as Independent Directors pursuant to Section 149 and 152 of the Act and Clause 49 of the Listing Agreement are proposed to be made at the forthcoming Annual General Meeting for a term of consecutive five (5) years on non–rotational basis. The Company has received declaration from the said Directors that they meet the criteria for independence in terms of Section 149(6) of the Act.
Mr. Anil Harish (DIN: 00001685) and Mr. Rajendra P. Chitale (DIN: 00015986) who were appointed as Independent Directors for a term of five (5) years at the Annual General Meeting of the Company held on September 22, 2014 have submitted declaration that each of them meets the criteria of independence as laid down under Section 149(6) of the Act and Clause 49 of the Listing Agreement and there has been no change in the circumstances which may affect their status as Independent Director during the year.
The Board of Directors at its meeting held on January 30, 2015 re–appointed Mr. Ashok Mansukhani as Whole–Time Director pursuant to Section 196, 197, 203 and Schedule V of the Act for a period of three years with effect from April 30, 2015 to April 29, 2018. The resolution of re–appointment of Mr. Ashok Mansukhani and payment of remuneration for a period of three years with effect from April 30, 2015 to April 29, 2018 were approved by the members by postal ballot/e–voting on June 22, 2015.
Mr. Amar Chintopanth was appointed as a Chief Financial Officer of the Company under Section 203 of the Act with effect from August 12, 2014.
Mr. Hasmukh Shah was appointed as a Company Secretary of the Company under Section 203 of the Act with effect from January 1, 2015. Further, Mr. Amit Vyas, Company Secretary of the Company has resigned with effect from December 12, 2014.
Accordingly, Mr. Ashok Mansukhani, Whole–Time Director, Mr. Amar Chintopanth, Chief Financial Officer and Mr. Hasmukh Shah, Company Secretary were designated as "Key Managerial Personnel" of the Company.
BOARD MEETINGS HELD DURING THE YEAR:
During the year, Six (6) meetings of the Board of Directors were held. The details of the meetings are furnished in the Corporate Governance Report which is attached as Annexure "E" to this Report.
The Nomination and Remuneration Committee at its meeting held on November 13, 2014 laid down the criteria for performance evaluation of Independent Directors.
The Board of Directors has carried out an annual evaluation of its own performance, committees and individual directors pursuant to the provision of the Act and under Clause 49 of Listing Agreement.
The Nomination and Remuneration Committee and the Board while reviewing the performance of the Independent Directors, deliberated upon certain criteria such as commitment and guidance, advice and valuable inputs, expertise and knowledge.
The performance of the Board as a whole was reviewed by the Independent Directors relying upon the following parameters:
1) Presentation of detailed vs Key information necessary;
2) Information on financial and operational performance of the Company;
3) Information on Business environment;
4) Board debate and discussion and
5) Board leadership.
In a separate meeting of Independent Directors, performance of Non–Independent Directors, performance of the Board as a Whole and performance of the Chairman was evaluated, taking in to account the views of Executive Directors and Non–Executive Directors. The same was discussed in the board meeting at which the performance of the Board, its Committees and individual directors was also discussed.
COMPANY'S POLICY ON DIRECTOR'S
APPOINTMENT AND REMUNERATION:
The Company's policy on Director's appointment and remuneration and other matter provided in Section 178(3) of the Act has been disclosed in the Corporate Governance Report, which forms part of the Board's Report.
COMPOSITION OF AUDIT COMMITTEE:
The details pertaining to composition of Audit Committee are included in the Corporate Governance Report, which forms part of this report.
M/s. Deloitte Haskins & Sells LLP, Chartered Accountants (ICAI Firm Registration No. 117366W/W–100018), the Statutory Auditors of your Company, retire at the conclusion of the forthcoming Annual General Meeting of the Company and being eligible offer themselves for re–appointment as per Section 139 of the Act. M/s. Deloitte Haskins & Sells LLP have expressed their willingness to be re–appointed as Statutory Auditors of the Company and has furnished a certificate for their eligibility and consent under Section 141 of the Act and rules framed thereunder. The Board, based on the recommendation of the Audit Committee recommends the appointment of M/s. Deloitte Haskins & Sells LLP as Statutory Auditors of the Company for a period of five years.
The Auditors Report to the Shareholders for the year under review does not contain any qualification.
In accordance with Section 148 of the Act and rules framed there under, the Board of Directors on recommendation of Audit Committee appointed M/s. ABK & Associates, Cost Accountants, (Firm Registration No.000036) as Cost Auditors of the Company for the financial year 2015–2016 to audit the accounts relating to telecommunication activity for the financial year ended March 31, 2016 and has recommended their remuneration to the Shareholders for their ratification at the ensuing Annual General Meeting.
The Audit Committee has also received a certificate from Cost Auditor certifying their independence and arm's length relationship with the Company.
Secretarial Auditor's Report:
The Board has appointed Ms. Rupal Jhaveri, Company Secretaries in Whole–time Practice (CP: 4225), to carry out Secretarial Audit under the provisions of Section 204 of the Act and the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 for the financial year 2014–2015. The Secretarial Audit Report is annexed as Annexure "I" to this report.
The Secretarial Audit Report for the year under review does not contain any qualification.
CORPORATE SOCIAL RESPONSIBILITY:
Your Company in financial year 2012–13 considering its objective to promote education through Hinduja Foundation, provided financial support to meritorious scholars from the economically weaker section of society to enable them to study and complete their first graduation.
Your Company in financial year 2013–14 considering its objective to promote community healthcare through Hinduja Foundation provided much needed healthcare facility in tribal areas of Thane. The Child Development Services Programme of Government of India has served over 19,247 people and trained more than 15 teachers and over 6,000 children in hygiene and preventive care.
For financial year 2014–15 considering its objective to promote community healthcare, Rs.40,10,000 has been contributed to implement HVL CSR project of Upgradation of Primary Health Centres.
Hinduja Foundation is collaborating with Additional Collector at Jawahar for Upgrading Primary Health Centres (PHCs) and Basic Health Centres (BHCs) there by strengthening health services in the rural and tribal communities, thus creating a role model project for public private partnership. These PHCs and BHCs are being strengthened in collaboration with the Govt. Health Department.
The Composition of the Corporate Social Responsibility (CSR) Committee and the brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure "J" to this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. The policy is available on the website of the Company i.e. www.hindujaventures.com
VIGIL MECHANISM/ WHISTLE BLOWER:
In Compliance with Section 177(9) of the Act read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Clause 49 of the Listing Agreement, the Board of Directors had approved Vigil Mechanism/ Whistle Blower Policy and the same is uploaded on the website of the Company. This Policy inter–alia provides a direct access to the Chairman of the Audit Committee.
The mechanism enables the Directors and employees to report their genuine concerns about unethical behavior, actual or suspected fraud or violation of the company's code of conduct and assures to provide adequate safeguard against victimization of the concerned director or employee.
Your Company hereby affirms that no Director/ employee has been denied access to the Chairman of the Audit Committee and that no complaints were received during the year.
The policy on Vigil Mechanism/ Whistle Blower is available on the Company's website at the link:<http://www.hindujaventures.com/en/inv/pdf/> whistleblower–policy–vigil–mechanism.pdf
RISK MANAGEMENT POLICY:
The Company has formulated a risk management policy so as to identify, quantify and manage all risk and opportunities that may affect the achievement of entity's strategic and financial goals.
Risk Management within the organization involves reviewing the operations of the organization, identifying potential threats to the organization and the likelihood of their occurrence, and then taking appropriate actions to address the most likely threats.
These risks include but are not limited to financial, legal and operational risk and risks concerning the Company's reputation and ethical standards.
The key risk factors identified by the Company include but are not limited to the following areas:
• Economic Environment and Market conditions
• Political environment
• Technological obsolescence
• Financial reporting risks
• Finance risk
• Fluctuations in Foreign Exchange
• Legal and Compliance Risk
• Human resource management
The Company strives to mitigate the risk by avoiding risk, transferring risk, reducing risk and retaining the risk.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
The Company has in place an Anti Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, temporary, trainees) are covered under this policy.
The following is a summary of sexual harassment complaints received and disposed off during the year 2014–2015:
• No. of complaints received – Nil
• No. of complaints disposed off – Nil
COMMUNICATION AND PUBLIC RELATIONS:
Your Company has on a continuous basis, endeavored to increase awareness among its stakeholders and in the market place about the Company's strategy, new developments and financial performance as per rules laid down by the Regulatory Authority like SEBI etc.
EMPLOYEES PARTICULARS AND RELATED DISCLOSURES:
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure "K" and "L" to this report.
1. No significant or material orders were passed by any Regulator or Court or Tribunal, which can have an impact on the going concern status and the Company's operations in future.
2. There are no material changes and commitments that have occurred between the end of the financial year of the Company and the date of this report.
Your Board takes this opportunity to thank the Company's employees, customers, vendors, business partners, shareholders and bankers for the faith reposed in the Company and also to thank various regulatory authorities and agencies for their support and looks forward to their continued encouragement.
For and on behalf of the Board of Directors
Ashok P. Hinduja
Date : August 4, 2015
Place : Mumbai