Dear Members,
The Directors have pleasure in presenting the 38th Annual Report and
Financial Statements (Standalone & Consolidated) for the financial year ended 31st
March, 2023
FINANCIAL HIGHLIGHTS
The Company's Standalone and Consolidated Financial Performance during
the year ended 31st March, 2023 as compared to the previous year's is summarized as below:
(Amount in Rs)
PARTICULARS |
Standalone |
Consolidated |
|
2022-23 |
2021-22 |
2022-23 |
2021-22 |
Gross Sales and Services |
3,30,00,000 |
3,25,00,000 |
9,46,76,62,000 |
5,81,54,34,000 |
Other Income |
69,63,000 |
48,34,706 |
1,61,73,000 |
6,53,88,000 |
Profit/(Loss) before depreciation, finance charges and
taxation |
97,26,000 |
60,08,489 |
13,03,77,000 |
9,72,07,106 |
Less: Depreciation & Amortisation expenses |
11,73,000 |
5,36,906 |
1,58,13,000 |
1,74,40,077 |
Less: Finance Charges |
4,43,000 |
1,91,025 |
6,81,36,000 |
3,52,65,216 |
Profit before Exceptional items and Tax |
81,10,000 |
52,80,558 |
4,64,28,000 |
4,45,01,813 |
Less: Exceptional items |
- |
- |
- |
- |
Profit/(Loss) before taxes |
81,10,000 |
52,80,558 |
4,64,28,000 |
4,45,01,813 |
Less: Tax Expenses |
|
|
|
|
Current tax |
5,34,000 |
3,70,675 |
2,25,95,000 |
2,07,14,692 |
Deferred tax |
2,01,000 |
55,339 |
(3,58,000) |
(5,95,900) |
Income Tax for Earlier Years |
5,75,000 |
- |
5,77,000 |
2,56,272 |
Profit/ (Loss) for the year after tax |
68,00,000 |
48,54,411 |
2,36,14,000 |
2,41,26,749 |
INDIAN ACCOUNTING STANDARDS (IND-AS)
Financial Statements of your Company and its subsidiaries for the
financial year ended 31st March, 2023, are prepared in accordance with Indian Accounting
Standards (Ind-AS), as notified under Section 133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time.
TRANSFER TO RESERVE
The Board of Directors has decided to retain the entire amount of
profits for the FY23 except the 20 percent of the profit transfer to Reserve Fund U/s
45-IC of the RBI Act, 1934 and remaining amount has been transferred to the Retained
Earnings and has not transferred any amount to the General Reserves, during the year under
review.
DIVIDEND
Your Board of Directors has not recommended any dividend on Equity
Share Capital for the year under review with a view to conserve resources and to plough
back the profits for the Financial Year ended 31st March, 2023 and to strengthen the
working capital of the Company.
DIVIDEND DISTRIBUTION POLICY
As per Regulation 43A of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2021,
top 1000 listed companies based on the market capitalization, shall formulate a Dividend
Distribution Policy.
Accordingly, the Policy has been adopted by the Board of Directors of
the Company setting out the parameters and circumstances that will be taken into account
by the Board in determining the distribution of dividend to its Shareholders and/ or
retaining profits earned by the Company.
The Dividend Distribution Policy is available on the Company?s
website at https://mmwlindia.com/PDF/MMWL Dividend Policv.pdf
MANAGEMENT DISCUSSIONS & ANALYSIS (MDA)
FINANCIAL REVIEW
The Company had a revenue of the Company of Rs.3,30,00,000/- during the
financial year ended 2022-2023. During the financial year ended 31st March, 2023, the
Company has earned profit of Rs.68,00,000/- as compared to the profit of Rs.48,54,000/-
for the previous financial year ended 2022 on standalone basis. The Consolidated revenue
during the financial year ended 31st March, 2023 stood at Rs.9,46,76,62,000/- as against
the Consolidated revenue of Rs.5,81,54,34,000/- in the previous financial year ended 31st
March, 2022. During the financial year ended 31st March, 2023, the Company has earned a
profit of Rs.2,36,14,000/- as compared to profit of Rs.2,41,27,000/- in the previous year
ended 31st March, 2022 on consolidated basis.
Particulars |
Standalone |
Ratios |
FY 2022-23 |
FY 2021-22 |
Debtors Turnover |
NA |
NA |
Inventory Turnover |
NA |
NA |
Interest Coverage Ratio |
NA |
NA |
Current Ratio |
0.22 |
1.33 |
Debt Equity Ratio |
NA |
NA |
Operating Profit Margin (%) |
24.16 |
16.84 |
Net Profit Margin (%) |
20.61 |
14.94 |
Net Worth (In Rs.) |
1,47,58,16,000 |
1,46,85,48,185 |
SHARE CAPITAL
As on 31st March, 2023, the Authorized Share Capital of your Company
stood at Rs.150 Crores (Rupees One Hundred Fifty Crores only) divided into 150 Crores
equity shares of face value of Rs.1/- (Rupee One) each.
PAID-UP SHARE CAPITAL
During the financial year 2022-23, the paid up equity share capital of
the Company stood at Rs.1,13,27,42,219 (Rupees One Hundred Thirteen Crore Twenty Seven
Lacs Forty Two Thousand Two Hundred Nineteen Only) divided into 1,13,27,42,219 Equity
Shares of Re.1/- each.
industry OVERVIEW FOR THE company & ITS SUBSIDIARIES
Media Matrix Worldwide Limited is a B2B Value Added Services player
providing niche and differentiated offerings to help clients towards consistent high
performance, revenue optimization, enhanced end-user experience and growth.
MOBILE HANDSETS MARKET IN INDIA
One of the subsidiaries of the Company, nexG Devices Private Limited
(NDPL), is engaged into trading of mobile handsets business in India.
Mobile Handset Market Overview
According to CyberMedia Research (CMR)'s India Mobile Handset Market
Review Report for Q1 2023 released on May, 2023, the 5G smartphone shipment share in India
increased to 41%, with 5G smartphone shipments growing 14% YoY. India's 5G smartphone
momentum continued through Q1 2023 with 34 new 5G launches. Samsung led the 5G smartphone
market in India with a 23% market share, followed by Apple with a 17% market share. During
Q1 2023, India's smartphone market shipments declined 21% YoY, while the overall mobile
market in India declined 20% YoY
The decline in smartphone shipments during Q1 2023 marks the first ever
Q1 decline since 2019 and is attributed to extended inventory, weakened demand, and
inflation. The overall feature phone segment declined by 19% YoY, driven by muted demand
and an increase in feature phone to smartphone upgrades. 5G smartphone shipments are all
set to surpass the cumulative 4G smartphone shipments done in CY2022.
Smartphone Segment
India's smartphone shipments declined 9% YoY to reach over 152 million
units in 2022, according to the latest research from Counterpoint's Market Monitor
service. The YoY decline, which is the second ever in India's smartphone market, can be
attributed to the decline in entry-level and budget segments which faced supply
constraints at the beginning of the year and then witnessed lower demand throughout the
year. However, the premium segment continued to rise and captured a double-digit share for
the first time, leading to growth in retail ASP. Counterpoint said, we believe that the
inventory and demand situation will continue to affect the market in the first half of
2023 before improving in the latter half driven by the festive season and upgrades to 5G
devices."
Market Share as per calender year 2021-2022
In spite of the overall decline in the smartphone market in the
calender year 2022, nexG Devices with its robust distribution and logistics network had
achieved growth of 59% in its turnover in the year 2022 as compared to year 2021.
Feature Phone Segment
The overall feature phone segment declined by 34% YoY, driven by the
weak consumer sentiment, owing to high device prices. Both 2G and 4G feature phone segment
declined by 30% and 57% YoY respectively.
Q1 2022: Key Smartphone Market Highlights
Samsung held the top spot in the smartphone market with a 20% market
share. The company was also the leader in the 5G smartphone segment with a 23% share, and
its 5G shipments increased by 16% YoY. Furthermore, Samsung led the Premium smartphone
segment (INR 25,000-INR 50,000) with a 24% share.
Vivo secured the second spot with a 17% market share thanks to its
robust channel marketing. Its 5G smartphone shipments were largely driven by the vivo Y75
5G, vivo T1 and vivo V23E models, accounting for 42% of its total 5G shipments.
Xiaomi slipped to the third position in the smartphone leaderboard with
a 16% share, mainly due to the stock build-up and muted demand. Redmi A1, Redmi 10A and
Redmi 10 (2022) were the top three models. Xiaomi's sub-brand, Poco saw a 4% YoY decline
in its shipments.
OPPO secured the fourth position with a market share of 10%. Its top
three shipped models were the OPPO A16k, OPPO A16e, and OPPO A76.
Realme held the fifth position with a market share of 9%, and its
shipments saw a YoY decline of 55%. The top three models shipped by Realme were Realme
C33, Realme 10 Pro, and Realme C55.
OnePlus recorded a 39% YoY growth in smartphone shipments, with the
OnePlus Nord CE 2 Lite and Nord CE 2
models accounted for 69% of its 5G smartphone shipments.
Apple maintained its steady growth with a 7% market share in the
smartphone market in Q1 2023, recording a significant YoY increase of 67% in its
shipments.
Transsion Group brands (Itel, Infinix and Tecno) overall (Smartphone +
Feature Phone) shipments increased by 9% YoY. Future Market Outlook
According to CMR's estimates, market conditions are expected to remain
moderate with muted growth in Q2 2023. Smartphone shipments for the entire year are
projected to grow in single digits YoY.
According to CyberMedia Research (CMR), "The smartphone market is
expected to bounce back in H2 2023, especially in the run-up to the festive season. All
said the smartphone market is going to post muted growth. The overall foldable smartphone
shipments grew 125% YoY in Q1 2023. This growth in the foldable smartphone market will
bolster the overall smartphone market in CY2023 and beyond."
OPPORTUNITIES AND OUTLOOK
The strategy of Company and/or its subsidiaries has been towards
investing in the new application and/or technologies related to Mobile on account of
rising demand for data services/solution in 4G era and now future technologies of 5G, and
making investments in next generation businesses including Contents, Telecom and Media
businesses which are expected to have substantial growth over the next decade on account
of rising demand from online and e-commerce businesses. The Company would be working
either directly or through its subsidiaries to take up existing and/or new projects to
achieve the above.
THREAT, RISKS & CONCERN
The Company and/or its subsidiaries operates in a competitive
environment and faces competition from both the international as well as domestic players
and within domestic industry from both the organized and unorganized players. However, no
player in the industry is an integrated player.
OUR SUBSIDIARIES
NEXG DEVICES PRIVATE LIMITED (NDPL)
Our Subsidiary, NDPL, has rich experience in procurement and
distribution of Mobile Handsets of various brands. NDPL has distribution arrangement with
various brands for distribution and marketing of handsets in the Indian markets. NDPL has
marketing offices and warehouses located at various cities in India and over a period of
time it has established a nationwide network to handle the distribution business all over
India.
With the launch of 4G services, mainly by Reliance Jio, this market has
expanded very fast and is going to expand manifold in future as well and will have more
opportunities for NDPL, having a strong presence with warehouses across the country.
NDPL is currently doing business with VIVO, Xiaomi, TECNO and ITEL
mobile brands to distribute mobile handsets to LFRs (Large Format Retail outlets) across
the Country. NDPL has also entered in Audio segment and is doing business with HARMAN for
distribution of their brand "Infinity" in general trade and it brand JBL in
modern trade. NDPL has also ventured into the segment of consumer electronics market
through brand AKAI and AIWA.
NDPL is in the process of further tie-ups with renowned brands by
leveraging its logistics, warehousing & distribution expertise across the country
MEDIA MATRIX ENTERPRISES PRIVATE LIMITED (MMEPL)
Media Matrix Enterprises Private Limited is engaged in business of
making investments in existing/new projects to be undertaken by us jointly or severally.
CORPORATE GOVERNANCE
Your Company is committed to benchmark itself with global standards for
providing good corporate governance. Your Board constantly endeavors to take the business
forward in such a way that it maximizes long term value for the stakeholders. The Company
has put in place an effective corporate governance system which ensures that the
provisions of The Securities Exchange Board of India (Listing Obligations and Disclosure
Requirements) regulation, 2015 (Hereinafter referred to as Listing Regulations) are duly
complied with.
A detailed report on the Corporate Governance pursuant to the
requirements of the SEBI Listing Regulations forms part of this Annual Report.
A Certificate from the Secretarial Auditor of the Company, confirming
compliance of conditions of corporate governance as stipulated in SEBI Listing
Regulations, is provided in the Report on Corporate Governance which forms part of the
Corporate Governance Report.
A separate statement in Form AOC-1, containing the salient features of
financial statements of all subsidiaries of your Company forms part of Consolidated
Financial Statements in compliance with Section 129 and other applicable provisions, if
any, of the Companies Act, 2013.
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
As stipulated under Regulation 34(2)(f) of the SEBI Listing
Regulations, the Business Responsibility & Sustainability Report, describing the
initiatives taken by the Company from environmental, social and governance perspective
forms part of this Annual Report.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of your Company for the financial
year 2022-23 are prepared in accordance with the provision of the Companies Act, 2013 read
with the rules issued thereunder, Accounting Standard AS -21 on Consolidated Financial
Statements read with AS-23 on Accounting for Investments in Associates, AS -27 on
Financial Reporting of Interests in Joint Ventures and the provisions of the Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 (hereinafter referred to as the "Listing Regulations"). The Audited
Consolidated Financial Statements are provided in the Annual Report.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
A separate statement in Form AOC-1, containing the salient features of
financial statements of all subsidiaries of your Company forms part of Consolidated
Financial Statements in compliance with Section 129 and other applicable provisions, if
any, of the Companies Act, 2013.
The financial statements of the subsidiary companies and related
information are available for inspection by the members at the Registered Office of your
Company during business hours on all days except Saturdays, Sundays and public holidays up
to the date of the Annual General Meeting (AGM) as required under Section 136 of the
Companies Act, 2013. Any shareholder desirous of obtaining the Annual Accounts and related
information of the above subsidiary companies may write to the Company Secretary at Media
Matrix Worldwide Ltd. Plot No. 38, 4th Floor, Sector 32, Institutional Area,
Gurugram-122001, Haryana and the same shall be sent by post. The financial statements
including the consolidated financial statements and all other documents required to be
attached to this report have been uploaded on the website of the Company i.e.
www.mmwlindia.com.
MATERIAL SUBSIDIARIES
The Company has adopted a 'Policy for determining Material
Subsidiaries' as per requirements stipulated in Explanation to Regulation 16(1)(c) of the
SEBI Listing Regulations.
During the year under review, there was no change in the Policy for
Determining Material Subsidiaries.
The said policy may be accessed on the website of the Company at
https://mmwlindia.com/PDF/PDF
17-Mar-22/Policv%20for%20determining%20material%20subsidiaries.pdf The Company has one
material subsidiary company viz. nexG Devices Private Limited as on 31st March, 2023.
FIXED DEPOSITS
During the financial year 2022-23, your Company has not accepted or
renewed any amount falling within the purview of provisions of Section 73 of the Companies
Act 2013 ("the Act") read with the Companies (Acceptance of Deposit) Rules,
2014. Hence, the requirement of furnishing details relating to Deposits covered under
Chapter V of the Act or the details of Deposits which are not in compliance with the
Chapter V of the Act is not applicable.
DISCLOSURE RELATING TO REMUNERATION OF DIRECTORS, KEY MANAGERIAL
PERSONNEL AND PARTICULARS OF employees
The remuneration paid to the Directors is in accordance with the
Remuneration Policy formulated in accordance with Section 178 of the Companies Act, 2013
(including any statutory modification(s) or re-enactment(s) for the time being in force)
and Regulation 19 of the Listing Regulations. The salient aspects covered in the
Remuneration Policy have been outlined in the Corporate Governance Report which forms part
of this report.
The Whole-time Director of your Company does not receive remuneration
from any of the subsidiaries of the Company. The information required under Section 197 of
the Companies Act, 2013 read with Rule 5(1), 5(2) & 5(3) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 in respect of Directors/employees of
the Company and a statement showing the names of top ten employees of the Company in terms
of remuneration drawn and other particulars of the employees drawing remuneration in
excess of the limits set out in said rules are given in "Annexure - A" to this
Report.
The remuneration paid to the Directors is in accordance with the
Remuneration Policy formulated in accordance with Section 178 of the Act and Regulation 19
of the SEBI Listing Regulations (including any statutory modification(s) or reenactments)
thereof for the time being in force).
DISCLOSURE UNDER SECTION 197(14) OF THE COMPANIES ACT, 2013
The whole-time Director cum Chief Financial Officer of the Company does
not receive remuneration or commission from any of the subsidiaries of the Company.
REMUNERATION POLICY
Pursuant to provisions of Section 178 of the Act and the SEBI Listing
Regulations, the Nomination and Remuneration Committee of your Board has formulated a
Remuneration Policy for the appointment and determination of remuneration of the Directors
including criteria for determining qualifications, positive attributes, and independence
of a Director, Key Managerial Personnel, Senior Management Personnel and other employees
of your Company.
The NRC Committee has also developed the criteria for determining the
qualifications, positive attributes and independence of Directors and for making payments
to Executive and Non-Executive Directors and Senior Management Personnel of the Company.
The detailed Policy is available on the Company's website at
https://mmwlindia.com/PDF/CorporateGovernance/Remuneration%20Policv.pdf and the salient
aspects covered in the Remuneration Policy have been outlined in the Corporate Governance
Report, which forms part of this Report.
DIRECTORS & KEY MANAGERIAL PERSONNEL
APPOINTMENTS/RE-APPOINTMENTS/RESIGNATIONS
Shri Chhattar Kumar Goushal and Shri Suresh Bohra was appointed as
Independent Directors of the Company at the 32nd Annual General Meeting (AGM) held on 29th
September, 2017 to hold office for 5 (five) consecutive years upto the conclusion of 37th
AGM of the Company. The term of both of them has come to end on 37th Annual
General Meeting (AGM). Shri Suresh Bohra ceased to be director from the conclusion of 37th
AGM. Shri Chhattar Kumar Goushal was appointed as a Non-Executive Director of the Company,
liable to retire by rotation w.e.f. the conclusion of Annual General Meeting held on 29th
September, 2022.
Smt. Mansi Gupta was appointed as an Independent Director through
postal ballot dated 26th April, 2023 to hold office for 5 (five) consecutive
years for a term commencing w.e.f. 27th March, 2023 to 26th March, 2028 pursuant to
Section 149, 152 and 160 read with Schedule IV and all other applicable provisions of the
Companies Act, 2013 and the Companies (Appointment and Qualifications of Directors) Rules,
2014 (including any statutory modification(s) or re-enactment thereof for the time being
in force).
The Nomination and Remuneration Committee and the Board of Directors at
its respective meeting held on 8th August, 2023 has approved reappointment of Mr. Aasheesh
Verma (DIN: 08199653) as an Independent Director on the Board of the Company, not liable
to retire by rotation for the second term, for a period of 5 (five) consecutive years
w.e.f. 13th August, 2023 to 12th August, 2028, subject to the approval of shareholders of
the Company by way of a Special Resolution in the ensuing Annual General Meeting.
Shri Sarvdeep Garg was appointed as an Independent Director through
Postal Ballot dated 26th April, 2023 to hold office for first term of 5 (five) consecutive
years for a term commencing w.e.f. 26th April, 2023 to 25th April, 2028 pursuant to
Section 149, 152 and 160 read with Schedule IV and all other applicable provisions of the
Companies Act, 2013 and the Companies (Appointment and Qualifications of Directors) Rules,
2014 (including any statutory modification(s) or reenactment thereof for the time being in
force).
Shri Sunil Batra, Director is liable to retire by rotation at ensuing
Annual General Meeting pursuant to Section 152 of the Companies Act, 2013 read with the
Companies (Appointment and Qualification of Directors) Rules, 2014 and the Article of
Association of your Company and being eligible offers herself for re-appointment.
Appropriate resolution for his re-appointment is being placed for your
approval at the ensuing AGM. A brief resume of him and other related information has been
detailed in the Notice convening the 38th AGM of your Company.
KEY MANAGERIAL PERSONNEL
During the financial year ended 31st March, 2023, Shri Sandeep Jairath,
Whole-time Director cum Chief Financial Officer and Shri Gurvinder Singh Monga, Company
Secretary remained the Key Managerial Personnel in accordance with the provisions of
Section 203 of the Companies Act, 2013 and Rules made thereunder.
DECLARATION BY THE COMPANY
The Company has issued confirmation to its Directors, confirming that
it has not made any default under Section 164(2) of the Act, as on March 31, 2023.
FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS
The details of programmes for familiarisation of Independent Directors
with the Company, their roles, rights, responsibilities in the Company and related matters
are put up on the website of the Company at the link: https://mmwlindia.com/PDF/mmwl
pdf/MMWL Familiarisation Prog.ID.pdf
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
As stipulated under Regulation 34(2)(f ) of the SEBI Listing
Regulations, the Business Responsibility and Sustainability Report, describing the
initiatives taken by the Company from environmental, social and governance perspective
forms part of this Annual Report.
ANNUAL EVALUATION OF BOARD PERFORMANCE
Pursuant to the provisions of the Companies Act, 2013, read with the
rules issued thereunder (including any statutory modification(s) or re-enactment(s)
thereof for the time being in force) and Listing Regulations, the Nomination and
Remuneration Committee/Committee of Independent Directors have evaluated the effectiveness
of the Board/Committee/ Directors for the financial year 2022-23.
Further, the Board of Directors have also evaluated the performance of
Independent Directors as required under Regulation 17 of the Listing Regulations. The
criteria applied in the evaluation process are detailed in the Corporate Governance Report
which forms part of this Report.
NUMBER OF MEETINGS OF THE BOARD AND AUDIT COMMITTEE
Six meetings of the Board of Directors were held during the financial
year 2022-23.
The intervening gap between any two consecutive meetings of the Board
was within the stipulated time frame prescribed under the Act and the SEBI Listing
Regulations.
Details of meetings held and attendance of directors are mentioned in
Corporate Governance Report, which forms part of this Report.
COMMITTEE
The provisions of the Companies Act, 2013 and the Securities Exchange
Board of India (Listing Obligations and Disclosures Requirements), Regulation, 2015 have
prescribed and mandated forming of Committees of the Board for efficient working and
effective delegation of work and to ensure transparency in the practices of the Company.
Accordingly, the Committees formed by the Board are as follows:
A. Audit Committee:
Pursuant to Section 177 of the Companies Act, the Board has formed an
Audit Committee. The details of which have been disclosed in the Corporate Governance
Report.
The Board of Directors of the Company had accepted all the
recommendations of the Committee.
B. Nomination and Remuneration Committee:
The Company pursuant to Section 178(1) of the Companies Act, 2013 has
formed the Nomination and Remuneration Committee. The details are disclosed in the
Corporate Governance Report.
C. Stakeholders' Relationship Committee:
The Board has in accordance with the provisions of Section 178(5) of
the Companies Act, 2013 constituted Stakeholder Relationship Committee. The details of
which have been disclosed in detail in the Corporate Governance report.
D. Risk Management Committee:
Pursuant to the Regulation 21 of the SEBI (Listing Obligations and
Disclosure Requirements), 2015, the Board has framed a Risk Management Committee. The
details of which have been disclosed in the Corporate Governance Report.
The details with respect to the composition, powers, roles, terms of
reference, number of meetings etc. of the Committees held during the financial year
2022-23 and attendance of the Members at each Committee Meeting, are provided in the
Corporate Governance Report which forms part of this Report.
DECLARATION BY THE COMPANY
The Company has issued confirmation to its Directors, confirming that
it has not made any default under Section 164(2) of the Act as on 31st March, 2023.
DECLARATION OF INDEPENDENCE
The Company has received declarations from all the Independent
Directors confirming that they meet the criteria of independence as prescribed under the
provisions of Companies Act, 2013 read with the Schedules and Rules issued thereunder as
well as Regulation 16(1)(b) of Listing Regulations. In terms of Regulation 25(8) of the
Listing Regulations, the Independent Directors have confirmed that they are not aware of
any circumstance or situation, which exist or may be reasonably anticipated, that could
impair or impact their ability to discharge their duties.
The Independent Directors have also confirmed that they have complied
with the Company's Code of Conduct.
In the opinion of the Board, Independent Directors fulfil the
conditions specified in the Act, Rules made thereunder and the SEBI Listing Regulations
and are independent of the management.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirements under Section 134(3)(c) of the Companies
Act, 2013, the Directors confirm that:
(a) in the preparation of the annual accounts for the financial year
ended 31st March, 2023, the applicable accounting standards and Schedule III to the
Companies Act, 2013, have been followed and there are no material departures from the
same;
(b) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable and prudent so as
to give a true and fair view of the state of affairs of the Company as at 31st March, 2023
and of the profit of the Company for the financial year ended 31st March, 2023;
(c) the Directors have taken proper and sufficient care 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;
(d) the Directors have prepared the annual accounts on a 'going
concern' basis;
(e) the Directors have laid down proper internal financial controls to
be followed by the Company and that such internal financial controls are adequate and are
operating effectively; and
(f) the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are adequate and operating
effectively.
AUDITORS AND AUDITORS' REPORT
SGN & CO, Chartered Accountants (Firm registration number 134565W)
("SGN") were appointed as statutory auditor of the Company for a term of five
consecutive years at the 36th Annual General Meeting of the Company for auditing accounts
of the Company from the financial year 2020-2021 to 2024-2025.
The requirement to place the matter relating to appointment of auditors
for ratification by members at every AGM has been done away by the Companies (Amendment)
Act, 2017 with effect from May 07, 2018. Accordingly, no resolution is being proposed for
ratification of appointment of Statutory Auditors at the ensuing AGM and a note in respect
of the same has been included in the Notice convening ensuing AGM.
The Statutory Auditors have confirmed that they are not disqualified
from continuing as Statutory Auditors of the Company The Auditors' Report does not contain
any qualification, reservation or adverse remark.
Further, there were no frauds reported by the Statutory Auditors to the
Audit Committee or the Board under Section 143(12) of the Act.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013
read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, your Company has appointed M/s MZ & Associates, Company Secretaries to conduct
the Secretarial Audit of your Company.
The Secretarial Audit Report is annexed herewith as "Annexure -
B" to this Report. The Secretarial Auditor has issued its Report with following
qualification
"During the year under review, BSE Limited has imposed a fine of
Rs. 5,42,800/-for non-compliance of Regulation 17(1) of SEBI (LODR) Regulations, 2015 with
respect to the composition of the Board. The Company has fallen short of one Independent
Director in its composition of Board of Directors during the period beginning from 30th
September, 2022 to 9th February, 2023. Subsequently, the Company at its meeting
held on 10th February, 2023, has designated Mr. Chhattar Kumar Goushal,
non-Executive Director as the Chairman of the Board of Directors of the Company w.e.f 10th
February, 2023 and has also appointed Mr. Sarvdeep Garg as an Independent director w. e.f
26th April, 2023 and thereby making the Compliance good on that date."
Management reply on qualification by statutory auditor.
The Company at its meeting held on 10th February,2023, on the
recommendation of Nomination and Remuneration Committee, has designated Mr. Chhattar Kumar
Goushal, non-Executive Director as the Chairman of the Board of Directors of the Company
w.e.f 10th February, 2023. Subsequently the Company has also appointed Mr. Sarvdeep Garg
as an independent director on its Board effective from 26th April, 2023 and hence
complying with the requirement of regulations 17(1) of SEBI (LODR) Regulations, 2015
EXTRACT OF ANNUAL RETURN
The Annual Return of the Company as on 31st March, 2022, in prescribed
e-form MGT-7 in accordance with Section 92(3) of the Act, read with Section 134(3)(a) of
the Act, is available on the Company's website at https://mmwlindia.com/PDF/
Annual%20Return%2022-2023.pdf
Further, the Annual Return (i.e. e-form MGT-7) for the FY23 shall be
filed by the Company with the Registrar of Companies, Mumbai Maharashtra, within the
stipulated period and the same can also be accessed thereafter on the Company's website at
http://www.mmwlindia.com.
RELATED PARTY TRANSACTIONS
In line with the requirements of the Companies Act, 2013 and amendment
to the Listing Regulations, your Company has formulated a revised 'Policy on Related Party
Transactions', which is also available on the Company's website at
https://mmwlindia.com/PDF/MMWL-Related-partv-transactions-policv.pdf. The Policy intends
to ensure that proper reporting, approval and disclosure processes are in place for all
transactions between the Company and Related Parties.
All Related Party Transactions and subsequent material modifications
are placed before the Audit Committee for review and approval. Prior omnibus approval is
obtained for Related Party Transactions on a quarterly basis for transactions which are of
repetitive nature and/ or entered in the Ordinary Course of Business and are at Arm's
Length. All Related Party Transactions are subjected to independent review by a reputed
accounting firm to establish compliance with the requirements of Related Party
Transactions under the Companies Act, 2013, and Listing Regulations.
All Related Party Transactions entered during the year were in Ordinary
Course of the Business and at Arm's Length basis. No Material Related Party Transactions,
as per the materiality threshold adopted by the Board of Directors, were entered during
the year by your Company. Accordingly, the disclosure of Related Party Transactions as
required under Section 134(3)(h) of the Companies Act, 2013, in Form AOC-2 is not
applicable.
The details of the related party transactions as required under Indian
Accounting Standard (Ind AS) - 24 are set out in Note - 32 to the standalone financial
statements forming part of this Annual Report.
There are no transactions with the person(s) or entities forming part
of the Promoter(s) / Promoter(s) Group, which individually hold 10% or more shareholding
in the Company.
LOANS, GUARANTEES AND INVESTMENTS
The details of loans, guarantees and investments under Section 186 of
the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers) Rules,
2014 are as follows:
Amounts outstanding as at 31st March, 2023
Particulars |
(Rs. in Lacs) |
Loans given |
NIL |
Guarantees given |
11200.03 |
Investments made |
14674.36 |
Loans, Guarantees and Investments made during the financial year
2022-23:
Name of Entity |
Relation |
Amount (Rs.in Lacs) |
Particulars of Loans, Guarantees and Investments |
Purpose for which the Loans, Guarantees and Investments are
proposed to be utilized |
nexG Devices Private Limited |
Subsidiary under Section 2(87) of the Companies Act, 2013 |
9000.00 |
Guarantee |
Corporate Guarantee in favour of HDFC Bank Limited on behalf
of nexG Devices Private Limited, a subsidiary of the Company, for carrying out the
operations and business activities. |
nexG Devices Private Limited |
Subsidiary under Section 2(87) of the Companies Act, 2013 |
2200.00 |
Guarantee |
Corporate Guarantee in favour of IndusInd Bank Limited on
behalf of nexG Devices Private Limited, a subsidiary of the Company, for carrying out and
enhancing the operations and business activities. |
VIGIL MECHANISM
The Board of Directors of the Company has formulated a Vigil Mechanism/
Whistle Blower Policy which is in compliance with the provisions of Section 177(9) &
(10) of the Companies Act, 2013 and Regulation 22 of the Listing Regulations. The Company
through this Policy envisages to encourage the Directors and Employees of the Company to
report to the appropriate authorities any unethical behaviour, improper, illegal or
questionable acts, deeds, actual or suspected frauds or violation of the Company's Code of
Conduct for Directors and Senior Management Personnel.
During the financial year 2022-23, no complaint was received and no
individual was denied access to the Audit Committee for reporting concerns, if any.
The Policy on Vigil Mechanism/ Whistle blower policy may be accessed on
the Company's website at the link:
https://mmwlindia.com/PDF/investors/Whisle-Blower-Policv.pdf
Brief details of establishment of Vigil Mechanism in the Company, is
also provided in the Corporate Governance Report which forms part of this Report.
DEMATERIALIZATION OF SHARES
Trading in the Equity Shares of the Company is only permitted in the
dematerialized form as per the Securities and Exchange Board of India (SEBI) circular
dated May 29, 2000.
The Company has established connectivity with both the Depositories
viz. National Security Depository Ltd. (NSDL) as well as Central Depository Services
(India) Ltd. (CDSL) to facilitate the demat trading. As on 31st March, 2023, 99.99% of the
Company's Share Capital is in dematerialized form.
The ISIN allotted to the equity shares of the Company is INE200D01020.
The Company's shares are frequently traded on BSE Limited.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo as stipulated under Section 134 of the Companies Act,
2013 read with the Companies (Accounts) Rules, 2014 is as under:
Part A and Part B relating to conservation of energy and technology
absorption are not applicable to the Company as your Company is not a manufacturing
Company.
FOREIGN EXCHANGE EARNINGS AND OUTGO:
Particulars |
Financial Year Ended 31.03.2023 |
Financial Year Ended 31.03.2022 |
Foreign exchange earned in terms of actual inflows |
NIL |
NIL |
Foreign exchange outgo in terms of actual outflows |
NIL |
NIL |
MATERIAL CHANGES AFFECTING THE COMPANY
There are no material changes and commitments affecting the financial
position of the Company which have occurred between the end of financial year and date of
this report.
SIGNIFICANT/MATERIAL ORDERS PASSED BY THE REGULATORS
There are no significant/material orders passed by the Regulators or
Courts or Tribunals impacting the going concern status of your Company and its operations
in future.
insolvency AND bankruptcy CODE, 2016
There is no application made or any proceeding pending under the
Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the Financial Year 2023.
GENERAL
a) Your Company has not issued equity shares with differential rights
as to dividend, voting or otherwise;
b) Your Company does not have any ESOP scheme for its
employees/directors.
c) No fraud has been reported by the Auditors to the Audit Committee or
the Board of Directors of the Company.
d) During the year, your Company was not required to maintained cost
records as prescribed under Section 148(1) of the Companies Act, 2013.
e) The Company has complied with the Secretarial Standards issued by
the Institute of Company Secretaries of India on Meetings of the Board of Directors and
General Meetings.
CAUTIONARY STATEMENT
Statement in the Management Discussions and Analysis describing the
Company's projections, estimates, expectations or predictions may be 'forward looking
statements' within the meaning of applicable securities laws and regulations. Actual
results could differ materially from those expressed or implied. Important factors that
would make a difference to the Company's operations include demand supply conditions,
changes in government regulations, tax regimes and economic developments within the
country and abroad and such other factors.
ACKNOWLEDGEMENTS
The Directors of the Company are grateful to all the stakeholders
including the customers, bankers, suppliers and employees of the Company for their
co-operation and assistance.
Place : Gurugram |
(Sandeep Jairath) |
For and on behalf of the Board C.K. Goushal |
Date : 4th September, 2023 |
Whole-time Director |
(Director) |
|
Cum Chief Financial Officer (DIN : 05300460) |
(DIN : 01187644) |