TO THE MEMBERS,
Your Directors take pleasure in presenting the 03rd Annual Report on the
business and operations of your Company together with the Audited Accounts for the
financial year ended 31st March 2023.
FINANCIAL PERFORMANCE/ STATE OF AFFAIRS:
During the financial year ended 31st March 2023, your company has recorded a
total revenue of Rs. 9773.15 lakhs against Rs. 6510.87 lakhs in the previous year,
representing an increase of 50.11%. During the year, the company has incurred profit of
Rs. 800.25 lakhs as compared to profit of Rs. 488.50 lakhs in the previous year. Financial
performance of the Company for Financial Year 2022-23 is summarized below: (Figure in
lakhs)
Particulars |
F.Y. 2022-23 |
F.Y. 2021-22 |
| Revenue from Operations |
9683.38 |
6427.45 |
| Other Income |
89.78 |
83.42 |
Total Income |
9773.15 |
6510.87 |
Total Expenses |
8658.11 |
5844.60 |
| Profit / (Loss) Before Tax & Exceptional / Extraordinary Items |
1115.05 |
666.27 |
| Less: Exceptional / Extraordinary items |
35.74 |
-- |
Profit / (Loss) Before Tax |
1079.30 |
666.27 |
| Less: Tax Expense : |
|
|
| - Current Tax |
281.71 |
178.23 |
| - Deferred Tax |
(2.66) |
(0.46) |
Net Profit/(Loss) After Tax |
800.25 |
488.50 |
DIVIDEND:
Keeping in mind the overall performance and outlook for your Company, your Board of
Directors does not declare dividends as the company is at growing stage and requires funds
for expansion. Your Directors are unable to recommend any dividend for the year ended 31st
March, 2023.
UNCLAIMED DIVIDEND:
There is no balance lying in unpaid equity dividend account.
SHARE CAPITAL:
The authorised share capital of the Company as on March 31, 2023 was Rs. 5,00,00,000
divided into 50,00,000 equity shares of Rs. 10/- each.
The issued, subscribed and paid-up Equity Share Capital of the Company as on March 31,
2023 was Rs. 5,00,00,000 divided into 50,00,000 equity shares of Rs. 10/- each.
The company has made IPO allotment of 13,80,000 equity shares having face value of Rs.
10/- per share during the Year.
MATERIAL CHANGES:
There have been no material changes and commitments, which affect the financial
position of the company which have occurred between the end of the financial year to which
the financial statements relate and the date of this Report.
TRANSFER TO RESERVES:
The Board of Directors of your company has decided not to transfer any amount to the
Reserves for the year under review.
DIRECTORSf RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 134 (3) (c) of the Companies Act, 2013 with
respect to Directors Responsibility Statement, it is hereby confirmed that: a. In the
preparation of the annual accounts for the year ended March 31, 2023, the applicable
Accounting Standards 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 were reasonable and prudent so as to
give a true and fair view of the State of affairs of the Company as at March 31, 2022 and
of the Profit & Loss of the Company for that period; 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 had prepared the annual accounts of the Company on a going concern basis; and e.
The Directors had laid down internal financial controls to be followed by the company and
that such internal financial controls are adequate and were operating effectively; f. The
directors have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating effectively.
DECLARATION BY INDEPENDENT DIRECTOR:
All the independent directors have submitted their disclosures to the Board that they
fulfill all the requirements as stipulated in section 149(6) of the Companies Act, 2013
and Regulation 16 of the Listing Regulations 2015. None of the Directors of the Company
are disqualified for being appointed as Directors as specified in Section 164(2) of the
Act and Rule 14(1) of the Companies (Appointment and Qualification of Directors) Rules,
2014.
PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS:
Details of Loans, Guarantees and Investments made by the Company pursuant to the
provisions of Section 186 of the Companies Act, 2013 read with the Companies (Meetings of
Board and its Powers) Rules, 2014 during the year under review are provided in the notes
to the Financial Statements.
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES:
The Company does not have any Subsidiary, Joint Venture or Associate Company.
EXTRACT OF ANNUAL RETURN:
Pursuant to Section 92(3) of the Act and Rule 12 of the Companies (Management and
Administration) Rules, 2014, the Annual Return for FY 2022-23 in Form MGT-7 is available
on Company s website at www.sunriseefficientmarketing.com
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Pursuant to the provisions of Regulation 34 read with Part B of Schedule V of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Management Discussion and Analysis of the financial condition and
results of consolidated operations of the Company under review, is annexed and forms an
integral part of the Directors Report, is given in Annexure I.
NUMBER OF MEETING HELD DURING THE YEAR:
During the year under review, 7 (Seven) meetings of the Board of Directors were held.
The Details of All meeting of Board of Directors and Committee meeting had taken place
during the year and their detailed composition along with their attendance are given in Annexure
II. The composition of the Board and its committee is also available on the website of
the company at www.sunriseefficientmarketing.com
COMPOSITION OF BOARD AND ITS COMMITTEE
The details of the composition of the Board and its Committees thereof and detail of
the changes in their composition if any is given in Annexure II.
CORPORATE GOVERNANCE:
The Company being listed on the SME Platform of BSE Limited. Therefore, the Regulation
15(2)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
Regulation 27 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
and Part C of Schedule V relating to compliance of Corporate Governance shall not
applicable to the Company.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES:
There was no employee drawing remuneration in excess of limits prescribed under section
197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014. The disclosures
pertaining to remuneration as required under section 197(12) of the Companies Act, 2013
read with rules 5(1) of the Companies (Appointment and Remuneration of Managerial
Personnel) Amendment rules, 2016 are annexed in Annexure III.
STATEMENT ON RISK MANAGEMENT:
Risk management is integral to your Company s strategy and for the achievement of our
long-term goals. Our success as an organization depends on our ability to identify and
leverage the opportunities while managing the risks.
These changes and challenges have brought a mix of opportunities and uncertainties
impacting the Company s objectives. Risk Management, which aims at managing the impact of
these uncertainties, is an integral part of the Company s strategy setting process. The
Company regularly identifies uncertainties and after assessing them, devises short-term
and long-term actions to mitigate any risk which could materially impact your Company s
long-term goals. This process of identifying and assessing the risks is a two-way process.
Inputs are taken while finalizing the risk treatment plans.
Our approach to risk management is designed to provide reasonable assurance that our
assets are safeguarded, the risks facing the business are being assessed and mitigated. A
detailed exercise is being carried out to identify, evaluate, monitor and manage both
business and non-business risks.
The Company has been exempt under Regulation 21 of the SEBI (Listing Obligation and
Disclosure requirements) Regulations, 2015 from reporting of risk management.
STATUTORY AUDITORS:
M/s. SBMG & CO., Chartered Accountants (Firm Registration No. 127756W) are
Statutory Auditors of the Company, who were appointed in 2nd Annual General
Meeting held on 30.09.2022, holds office until the conclusion of the 5th Annual
General Meeting.
SECRETARIAL AUDITOR:
The Board of Directors had appointed M/s Dhiren R. Dave & Co., Company Secretaries
to conduct Secretarial Audit for financial year 2022-23 in their Board Meeting held on 21st
May, 2023. The Secretarial Audit Report is annexed herewith in Annexure IV. The
secretarial
Auditor s report is self explanatory and as such they do not call for further
explanations.
INTERNAL AUDITOR:
The Board has appointed M/s Rachna Patel & Associates as an internal auditor of the
company for the financial year 2023-24 in their Board Meeting held on 21st May,
2023.
COMMENTS ON AUDITORfS REPORT:
The notes referred to in the Auditor's Report are self explanatory and as such they do
not call for any further explanation.
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES:
Your Board endeavors that all contracts/ arrangements/transactions entered by the
Company during the financial year with related parties are in the ordinary course of
business and on an arm s length basis only.
During the year under review the Company had not entered into transaction with related
parties which could be considered material in accordance with the policy of the Company on
materiality of related party transactions. The Policy on Related Party Transactions is
uploaded on the website of the company. The web link is www.sunriseefficientmarketing.com
Further all related party transactions entered into by the Company were in the ordinary
course of business and were on an arm s length basis are attached herewith in Form No.
AOC-2 in Annexure V.
ENERGY CONSERVATION MEASURES, TECHNOLOGY ABSORPTION AND R & D EFFORTS AND FOREIGN
EXCHANGE EARNINGS AND OUTGO:
The requirements for disclosure in respect of Conservation of Energy, Technology
Absorption, in terms of Section 134(3) (m) of the Companies Act, 2013 read with the rule 8
of Companies (Accounts) Rules, 2014 are given below:
A. CONSERVATION OF ENERGY i.) The steps taken or impact on conservation of energy:
Company ensures that the operations are conducted in the manner whereby optimum
utilisation and maximum possible savings of energy is achieved. ii.) The steps taken by
the Company for utilizing alternate sources of energy: No alternate source has been
adopted. iii.) The capital investment on energy conservation equipment: No specific
investment has been made in reduction in energy consumption.
B. TECHNOLOGY ABSORPTION i.) The effort made towards technology absorption: Not
Applicable. ii.) The benefit derived like product improvement, cost reduction, product
development or import substitution: Not Applicable iii.) in case of imported technology
(imported during the last three years reckoned from the beginning of the financial year) -
a. The details of technology imported: Nil b. The year of import: Not Applicable c.
Whether the technology has been fully absorbed: Not Applicable d. If not fully absorbed,
areas where absorption has not taken place, and the reasons thereof: Not Applicable. iv.)
The expenditure incurred on Research and Development: Nil
C. FOREIGN EXCHANGE EARNINGS & EXPENDITURE: i.) Details of Foreign Exchange
Earnings: Nil ii.) Details of Foreign Exchange Expenditure: Nil
CEO/ CFO CERTIFICATION:
In terms of Regulation 17(8) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 the CFO has certified to the Board of Directors of the
Company with regard to the financial statements and other matters specified in the said
regulation for the financial year 2022-23. The certificate received from CFO is attached
herewith as per
Annexure VI.
BOARD EVALUATION:
The performance of the board was evaluated by the board after seeking inputs from all
the directors on the basis of the criteria such as the board composition and structure,
effectiveness of board processes, information and functioning, etc. The performance of the
committees was evaluated by the board after seeking inputs from the committee members on
the basis of the criteria such as the composition of committees, effectiveness of
committee meetings, etc. The overall performance evaluation exercise was completed to the
satisfaction of the Board. The Board of Directors deliberated on the outcome and agreed to
take necessary steps going forward.
DIRECTORS AND KEY MANAGERIAL PERSONNEL:
The List of board of Directors and Key Managerial Personnel (KMP) as on 31st
March, 2023:
Name of Director/KMP |
Designation |
Date of |
Date of |
|
|
Appointment |
Resignation |
| Lejas Hemantrai Desai |
Managing Director |
09-07-2020 |
-- |
| Mitaliben Lejas Desai |
Managing Director |
09-07-2020 |
-- |
| Hemantrai Thakorbhai Desai |
Wholetime Director |
09-07-2020 |
-- |
| Hiren Kunverji Shah |
Wholetime Director |
15-02-2022 |
-- |
| Pinkal Sureshbhai Pancholi |
Wholetime Director |
15-02-2022 |
-- |
Anurag Dindayal Harlalka |
Non Executive Independent Director |
15-02-2022 |
-- |
Krishna Pratik Lankapati |
Non Executive Independent Director |
15-02-2022 |
-- |
Prashantkumar Rameshchandra Patil |
Non Executive Independent Director |
15-02-2022 |
-- |
| Bhranti Gaurav Desai |
Chief Financial Officer |
15-02-2022 |
-- |
| Kaushik Haribhai Vegad |
Company Secretary |
01-08-2022 |
-- |
| Manish Vaghela |
Company Secretary |
15-02-2022 |
14-06-2022 |
In accordance with Section 152(6) of the Companies Act, 2013 read with the Articles of
Association of the Company, Mr. Lejas Hemantrai Desai (DIN: 02488965), Executive Director,
retire by rotation and is being eligible has offered himself for re-appointment at the
ensuing Annual General Meeting. Company s policy on directors appointment and remuneration
is available in the web link www.sunriseefficientmarketing.com
Based on the confirmations received from Directors, none of the Directors are
disqualified from appointment under Section 164 of the Companies Act, 2013.
PUBLIC DEPOSIT:
The company has not accepted deposits from the public during the financial year under
review within the meaning of Section 73 of the Act of the Companies Act 2013, read with
Companies (Acceptance of Deposits) Rules, 2014.
INTERNAL FINANCIAL CONTROL SYSTEM:
The Company has adequate system of internal controls commensuration with the size of
its operation and business, to ensure that all assets are safeguarded and protected
against loss from unauthorized use or disposition, and to ensure that all the business
transactions are authorized, recorded and reported correctly and adequately. The Company
has a well placed, proper and adequate internal financial control system which ensures
that all the assets are safeguarded and protected and that the transactions are authorized
recorded and reported correctly. The internal audit covers a wide variety of operational
matters and ensures compliance with specific standard with regards to availability and
suitability of policies and procedures. During the year no reportable material weakness in
the design or operation were observed.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:
The Companies Act, 2013 re-emphasizes the need for an effective internal financial
control system in the company. Rule 8(5) (viii) of Companies (Accounts) Rules, 2014
requires the information regarding adequacy of internal financial controls with reference
to the financial statements to be disclosed in the Board s Report. The detailed report
forms part of Independent Auditors Report.
WHISTLE BLOWER POLICY / VIGIL MECHANISM:
Your Company has established a mechanism called Vigil Mechanism/Whistle Blower Policy
for the directors and employees to report to the appropriate authorities of unethical
behavior, actual or suspected, fraud or violation of the Company s code of conduct or
ethics policy and provides safeguards against victimization of employees who avail the
mechanism. The policy permits all the employees to report their concerns directly to the
Chairman of the Audit Committee of the Company. The Vigil Mechanism/Whistle Blower Policy
as approved by the Board is uploaded on the Company s website. The web link is
www.sunriseefficientmarketing.com
STATUTORY INFORMATION:
We are an ISO 9001:2015 certified Company primarily engaged in the business as traders,
distributors, super stockiest, retailers, wholesalers, importers, exporters, agents,
dealers, buyers, sellers, fabricators, assemblers, fitters, installers, repairers of all
types of Industrial machineries, its spare parts, electrical items, electronic items,
mechanical and engineering items, pipes, pipe fittings, sanitation parts, all types of
machined and un-machined castings, industrial valves and its spares, Oils, lubricants, all
types of motors, pumps, generator sets, batteries and all types of electrical, mechanical,
electromechanical & electronic items, and spare parts, accessories used for
industrial, domestic and agricultural purposes. We are also distributor for FMCG products.
SECRETARIAL STANDARDS ISSUED BY THE INSTITUTE OF COMPANY SECRETARIES OF INDIA (ICSI):
The Company complies with all applicable mandatory Secretarial Standards issued by the
Institute of Company Secretaries of India (ICSI).
FRAUD REPORTING:
During the year under review, no fraud has been reported by Auditors under Section
143(12) of the Companies Act, 2013.
COMPLIANCE CERTIFICATE FROM THE AUDITORS REGARDING COMPLIANCE OF CONDITIONS OF
CORPORATE GOVERNANCE:
The Company being listed on the SME Platform of BSE Limited. Therefore, the Regulation
15(2)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
Regulation 27 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
and Part C of Schedule V relating to compliance of Corporate Governance shall not
applicable to the Company.
RESEARCH & DEVELOPMENT:
The Company believes that technological obsolescence is a reality. Only progressive
research and development will help us to measure up to future challenges and
opportunities. We invest in and encourage continuous innovation. During the year under
review, expenditure on research and development is in significant in relation to the
nature size of operations of your Company.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013:
The company has complied with provisions relating to the constitution of Internal
Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. The Company did not receive any complaints on sexual
harassment during the year 2022-23 and hence no complaints remain pending as of 31st
March, 2023.
APPRECIATION:
Your Directors place on record their deep appreciation to employees at all levels for
their hard work, dedication and commitment and express their sincere thanks and
appreciation to all the employees for their continued contribution, support and
co-operation to the operations and performance of the company.
ACKNOWLEDGEMENT:
Your Directors would like to express their sincere appreciation of the co-operation and
assistance received from Shareholders, Bankers, regulatory bodies and other business
constituents during the year under review. Your Directors also wish to place on record
their deep sense of appreciation for the commitment displayed by all executives, officers
and staff, resulting in successful performance of the Company during the year.
For and on behalf of the Board of Directors
Place: Surat |
|
Date: 05/08/2023 |
Sd/- |
|
Hemantrai Thakorbhai Desai |
|
Chairman and Wholetime Director |
|
DIN: 08787617 |
|