DIVYA JYOTI INDUSTRIES LIMITED REPORT 2017- 2018.pdf · Annual Report-2017-18 01 NOTICE Notice is...

DIVYAJYOTIINDUSTRIESLIMITED26thAnnualReport2017-2018

BalanceSheet...............................................................................29StatementofProfit&Loss........................................................30

StatementofChangesinEquity…………………........………..32NotesonFinancialStatement..................................................33

CashFlowStatement...................................................................31

StatutoryAuditReport............................................................ 24SecretarialAuditReport........................................................22ManagementDiscussionandAnalysis............................ 20CorporateGovernanceReport..................................................12BoardReport................................................................................... 6Notice................................................................................................... 1

01AnnualReport-2017-18

NOTICE

Notice is hereby given that theTwenty SixthAnnualGeneralMeeting of theMembers ofDIVYA JYOTI INDUSTRIESthLIMITEDwillbeheldonSaturday,the29 dayofSeptember,2018at11:30AM.attheRegisteredOfficeoftheCompany

situatedat19-39,SectorIII,IndustrialArea,Pithampur-454775,DistrictDhar(M.P.)totransactthefollowingbusiness:

ORDINARYBUSINESS:st 1. ToconsiderandadopttheAuditedFinancialStatementoftheCompanyfortheyearended31 March,2018andreportof

BoardofDirectorsandAuditorsthereon.

2. Tore-appointMr.GirdhariLalNyati(DIN:00118079),WholeTimeDirectoroftheCompanywhoretiresbyrotationat thisAnnualGeneralMeetingandbeingeligibleoffershimselfforre-appointment.

RESOLVEDFURTHERTHATtheBoardbeandisherebyauthorizedtodoallsuchactsandtakeallsuchstepsasmaybe necessary,properorexpedienttogiveeffecttothisresolution.”

RESOLVEDFURTHERTHATthisresolutionshallhaveoverridingeffectandshallsubstituteanyotherearlierresolutionst st passedinentiretywitheffectfrom1 April,2019to31 March,2024;

“RESOLVEDTHATpursuanttotheRegulation17(1A)oftheSEBI(ListingObligationsandDisclosureRequirements) Regulations,2015asinsertedbytheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2018(tobe

st effectivefrom1 April,2019),Section149,152oftheCompaniesAct,2013readwithScheduleIVtothesaidActandthe Companies(AppointmentandQualificationofDirectors)Rules,2014(includinganystatutoryamendmenttheretoor modificationthereofforthetimebeinginforce)Mr.SudarshanShastri(DIN:00155105),IndependentDirectorofthe Companybeandisherebyre-appointedasNonExecutive-IndependentDirectoroftheCompanytoholdofficeforaterm

st st ofFiveconsecutiveYearswitheffectfrom1 April,2019to31 March,2024;

Toconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolutionasaSpecialResolution:

5.RE-APPOINTMENTOFNONEXECUTIVE-INDEPENDENTDIRECTOR

RESOLVEDFURTHERTHATtheBoardbeandisherebyauthorizedtodoallactsandtakeallsuchstepsasmaybe necessary,properorexpedienttogiveeffecttothisresolution.”

“RESOLVEDTHATpursuanttotheprovisionsofSection196,197,and203readwithScheduleVandallotherapplicable provisions of the Companies Act,2013 and the Companies (Appointment and Remuneration of Managerial Personnel)Rules,2014(includingstatutorymodification(s)orre-enactmentthereofforthetimebeinginforce),approval ofthemembersbeandisherebyaccordedtothere-appointmentofMr.Gopal Nyati(DIN:00784071)asWhole-Time DirectoroftheCompany,foraperiodof5(five)yearswitheffectfrom1stApril,2018onthetermsandconditionsasmay bemutuallydecidedinaccordancewiththeapplicablelegalprovisions,anystatutorymodificationorre-enactment thereof;withlibertytotheBoardofDirectors(hereinafterreferredtoas“theBoard”Whichtermshallbedeemedto includeAuditCommitteeandNominationandRemunerationCommitteeoftheBoard)toalterandvarythetermsand conditionsofthesaidreappointmentasitmaydeemfitandasmaybeacceptabletoMr.GopalNyati;

Toconsiderandifthoughtfittopasswithorwithoutmodifications(s),thefollowingresolutionasanordinaryresolution:

4.RE-APPOINTMENTOFWHOLE-TIMEDIRECTOR

SPECIALBUSINESS:

“RESOLVEDTHATpursuant to the provisions of Sections 139, 142 and other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s)orre-enactment(s)thereof,forthetimebeinginforce),theappointmentofM/s.ANUBHAVPRADHAN& CO.CharteredAccountants(ICAIFRN:013822C),beandisherebyratifiedasStatutoryAuditoroftheCompanyforthe financialyear2018-2019,atsuchremunerationasmaybefixedbytheBoardofDirectorsoftheCompanyinconsultation withtheAuditCommitteeandagreedbytheAuditor.”

Toconsiderandifthoughtfit,topasswithorwithoutmodification(s),thefollowingresolutionasanOrdinaryResolution:

3. RatificationofAppointmentofStatutoryAuditor

AnnualReport-2017-18 02

1. TheExplanatoryStatementannexedtothisnoticepursuanttoSection102(1)oftheCompaniesAct,2013setoutthematerialfactsinrespectofthebusinessunderItemNos.4,5and6assetoutabove.Further,thedetailsrequiredunderRegulation 36(3) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations,2015areincludedintherespectiveitemofbusinessintheExplanatoryStatement.

2. AMEMBERENTITLEDTOATTENDANDVOTEATTHEMEETINGISENTITLEDTOAPPOINTAPROXYTOATTENDANDVOTEINSTEADOFHIMSELF/HERSELF.THEPROXYNEEDNOTBEAMEMBER.Apersoncanactasproxyonbehalfofmembersnotexceedingfifty(50)andholdingintheaggregatenotmorethantenpercentofthetotalsharecapitaloftheCompany.AmemberholdingmorethantenpercentofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappoint a singlepersonasproxy and suchperson shall not act as aproxy for anyotherpersonor shareholder.Theinstrumentappointingproxyshouldhoweverbedepositedattheregisteredofficeofthecompanynotlaterthan48hoursbeforethecommencementofthemeeting.Proxyshallnothaveanyrighttospeakatthemeeting.

3. Duringtheperiodbeginning24hoursbeforethetimefixedforthecommencementoftheAGManduntiltheconclusionofthemeeting,amemberwouldbeentitledtoinspecttheproxieslodgedduringthebusinesshoursoftheCompanyprovidedthatnotlessthanthreedaysnoticeinwritingisgiventotheCompany.

4. CorporateMembersarerequestedtosendadulycertifiedcopyoftheBoardresolution,pursuanttoSection113oftheCompaniesAct,2013authorizingtheirrepresentativetoattendandvoteattheAnnualGeneralMeeting.

5. Incaseofjointholdersattendingthemeeting,theMemberwhosenameappearsasthefirstholderintheorderofnamesaspertheRegisterofMembersoftheCompanywillbeentitledtovote.

th6. TheRegisterofmembersandshare transferbooksof theCompanywill remainclosed fromSeptember27 ,2018 tothSeptember29 ,2018(bothdaysinclusive)forthepurposeofAnnualGeneralMeeting.

7. ShareholdersseekinganyinformationwithregardtoaccountsarerequestedtowritetotheCompanyatleast10daysbeforethemeetingsoastoenablethemanagementtokeeptheinformationready.

8. AlldocumentsreferredtointheaccompanyingnoticeandexplanatorystatementwillbekeptopenforinspectionattheRegisteredOfficeofCompanyonallworkingdaysexceptSaturdaybetween11.00A.M.to1.00P.M.

9. MembersarerequestedtobringthecopyofAnnualReportatthemeeting.10.MembersarerequestedtosupportGreenInitiativebyregistering/updatingtheire-mailaddresseswiththeDepository

participant(incaseofsharesheldindematerializedform)orwithLinkintimeIndiaPrivatelimited(incasesharesheldinphysicalform)

11.Membersholdingsharesinphysicalformarerequestedtonotifychangeinaddress,ifanytotheRTAoftheCompany. Incasesharesheldindematerializedform,theinformationregardingchangeofaddressshouldbegiventotheirrespectiveDepositoryParticipant.

12.Votingthroughelectronicmeans:

TheCompanyispleasedtooffere-votingfacilitytoallitsmemberstoenablethemtocasttheirvoteelectronicallyintermsofSection108oftheCompaniesAct,2013readwiththeCompanies(ManagementandAdministration)Rules,2014andRegulation44oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(includinganystatutorymodificationorre-enactmentthereofforthetimebeinginforce).Accordingly,amembermayexercisehis/hervotebyelectronicmeans.

E-VOTINGPROCESS:

Theinstructionsforshareholdersvotingelectronicallyareasunder:th th(I)Thevotingperiodbeginson26 September,2018at9:00A.M.andendson28 September,2018at5:00P.M.Duringthis

periodshareholdersoftheCompanyholdingshareseitherinphysicalformorindematerializedform,asonthecut-offdatend22 September,2018maycasttheirvoteelectronically.Thee-votingmoduleshallbedisabledbyCDSLforvotingthereafter.

RESOLVEDFURTHERTHATtheBoardofDirectorsoftheCompanybeandisherebyauthorizedtodoallactsandtakeallsuchstepsasmaybenecessary,properorexpedienttogiveeffecttothisresolution.”

Notes:-

Toconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolutionasanOrdinaryResolution:

“RESOLVEDTHATpursuanttotheprovisionsofSection148andallotherapplicableprovisionsoftheCompaniesAct,2013andtheCompanies(CostRecordsandAudit)Rules,2014,includinganystatutorymodificationorre-enactmentthereof,forthetimebeinginforceandasrecommendedbytheBoardandAuditCommittee,thetotalconsolidated remunerationpayableduringtheyear2018-19toM/sG.K.Gupta&Co.,CostAccountants,appointedbytheBoardofDirectorstoconducttheauditofcostrecordsofthecompanyforthefinancialyear2018-19,AmountingtoRs.18,000/-(RupeesEighteenThousandOnly)beandisherebyratifiedandconfirmed;

6.RATIFICATIONOFREMUNERATIONOFCOSTAUDITORFORTHEFINANCIALYEAR2018-19

ForMembersholdingsharesinDematFormandPhysicalForm

PAN Enteryour10digitalpha-numericPANissuedbyIncomeTaxDepartment(Applicableforbothdematshareholdersaswellasphysicalshareholders)"MemberswhohavenotupdatedtheirPANwiththeCompany/DepositoryParticipantarerequestedtousethesequencenumberwhichisprintedonAttendanceSlipindicatedinthePANfield.

DividendBankDetailsORDateofBirth(DOB)

EntertheDividendBankDetailsorDateofBirth(indd/mm/yyyyformat)asrecordedinyourdemataccountorinthecompanyrecordsinordertologin."Ifboththedetailsarenotrecordedwiththedepositoryorcompanypleaseenterthememberid/folionumberintheDividendBankdetailsfieldasmentionedininstruction(iv).

03AnnualReport-2017-18


ByOrderoftheBoardofDirectors

sd/-SuruchiMaheshwariCompanySecretary

ANNEXURETONOTICEEXPLANATORYSTATEMENTPURSUANTTOSECTION102(1)OFTHECOMPANIESACT,2013

Place:IndorethDate:14 August,2018

ThefollowingStatementsetsoutallmaterialfactsrelatingtotheSpecialBusinessmentionedintheaccompanyingNotice:

Mr.GopalNyatiisadynamicDirectoroftheCompany.HeisaFellowCharteredAccountant.Hehasgotverykeenknowledge,expertiseandrichexperienceinthefieldofSoyaIndustry,productionandpromotionofproductsandisbeingassociatedwith

ththeCompanyalongbackandjoinedtheBoardoftheCompanyon20 October,2007.HehassignificantlycontributedtoCompany's all round growth. He plays an active role in overall strategic decisions of the company. His proactive andpersonalized approach towards business and the competitive spirit has been instrumental in establishing businessrelationshipsoftheCompany.Hebringsacrosssharpfinancialacumenandinsightsintobusinesstransactionsbothfromriskandrewardperspective.Thebusinessofthecompanyhasgrownmanyfoldsinhistenure.Keepinginviewhisuntiringeffortandcontribution,theBoardhasresolvedtoreappointhimaswholetimedirector.

NoneoftheDirectors/KeyManagerialPersonneloftheCompany/theirrelativesare,inanyway,concernedorinterested,financiallyorotherwise,intheaboveresolutionexceptthedirectorhimselfandMrs.BabitaNyati(DIN:06904655),NonexecutiveDirectoroftheCompanyastheyaremutuallyrelatedasspouse.

ITEMNO.4PursuanttoSection152,196,197,203,otherapplicableprovisionsoftheCompaniesAct,2013,ScheduleVtheretoandtheapplicable Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 subject to anyamendmenttheretoormodificationthereofforthetimebeinginforce,Mr.GopalNyati(DIN:00784071),wasappointedas

stWholeTimeDirectorof theCompanyforaperiodoffiveyearswhichisexpiredon31 March,2018.OnrecommendationofAuditCommitteeandNominationandRemunerationCommittee,theBoardofDirectorsoftheCompanyhaveconsideredthe

thmatterofhisreappointmentandattheirmeetingheldon10 February,2018approvedthere-appointmentofMr.GopalNyatist st(DIN-00784071)asWholetimeDirectoroftheCompanyforafurtherperiodof5yearscommencingfrom1 April,2018to31

March,2023ontheperusaloffollowingfactsandtermsandconditionsofappointmentassetoutinthisstatement.

TheBoardrecommendsResolutionassetoutinitemno.4forapprovalofmembersasordinaryresolution.


Further, in the opinion of Nomination and Remuneration Committee and the Board, Mr. Sudarshan Shastri fulfills theconditionsofappointmentofIndependentDirectorasspecifiedintheCompaniesAct,2013,Rulesmadethereunderandotherapplicableprovisionsoflistingregulationsandisindependentofthemanagementandhasgivenhisconsentanddeclarationforthesame.

TheBoardrecommendsResolutionassetoutinitemno.6forapprovalofmembersasOrdinaryResolution.

DuringhistenureasanIndependentDirectorhehaveactivelyparticipatedintheCommitteeandBoardMeetingsandhave rigorouslyreviewedcompany'sactivitiesasIndependentDirectoroftheCompany.There-appointmentandcontinuationofhisdirectorshipwouldbenefitcompanymanifoldsinthegovernanceoftheCompany.

TheBoardrecommendsResolutionassetoutinitemno.5forapprovalofmembersasSpecialResolution.

NoneoftheDirectors/KeyManagerialPersonneloftheCompany/theirrelativesareinanyway,concernedorinterested,financiallyorotherwise,intheaboveresolution.

Mr.SudarshanShastri(DIN:00155105),wasappointedasNonExecutive-IndependentDirectoroftheCompanyforatermth nd thuptofiveconsecutiveyearsi.e.30 September,2019at22 AnnualGeneralMeetingoftheCompanyheldon29 September,

th2014attheregisteredofficeoftheCompany.Consecutively,hisexistingtenureisexpiringon30 September,2019.

However,PursuanttotheamendmenttoSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015bywayofinsertionofRegulation17(1A)videSEBIListingObligationsandDisclosureRequirements)Regulations,2018(tobeeffectivefrom1stApril,2019),Section149,152oftheCompaniesAct,2013readwithScheduleIVtothesaidActandtheCompanies(AppointmentandQualificationofDirectors)Rules,2014(includinganystatutoryamendmenttheretoormodificationthereofforthetimebeinginforce)there-appointment/continuationofdirectorshipofMr.SudarshanShastri(DIN:00155105)asNonExecutive-IndependentDirectoroftheCompanyrequiresapprovalofthemembers.

ITEMNO.5

Mr.SudarshanShastriholdsaBachelorDegreeinLaw(LL.B)andtheDegreeofMasterofCommerce(M.Com).Mr.Shatripossesaverywidebackgroundofpracticeincorporatelawsandalliedmattersforabout40yearsandhavetremendouslegalandcommercialknowledgeandisassociatedwiththeCompanyformorethanadecade.

TheDirectorshipandmembershipoftheboardandcommitteesoftheotherlistedentity(s)andshareholdingoftheCompanyofMr.SudarshanShastriisdisclosedinCorporateGovernanceReportformingpartofthisannualreport.

Keeping in view the above facts, on recommendation of Nomination and Remuneration Committee and PerformancethEvaluation, theBoardofDirectorsat theirmeetingheldon14 August,2018hasconsidered thematteranddecided to

Continueandre-appointMr.SudarshanShastri(DIN:00155105)asNonExecutive-IndependentDirectoroftheCompanyforast sttermuptofiveconsecutiveyearscommencingfrom1 April,2019to31 March,2024.

NoneoftheDirectors/KeyManagerialPersonneloftheCompany/theirrelativesare,inanyway,concernedorinterested,financiallyorotherwise,intheaboveresolutionexcepttheDirectorhimselftotheextentofhisshareholdingintheCompany.

OntherecommendationoftheAuditCommitteeandonreceiptofConsentandeligibilitycertificatefromG.K.Gupta&Co.,CostAccountants,BoardhasapprovedthereappointmentofthesaidfirmasCostAuditorsoftheCompanytoconducttheauditofthecostrecordsoftheCompanyforthefinancialyear2018-19andremunerationthereto.InaccordancewiththeprovisionsofSection148oftheActreadwiththeCompanies(CostRecordsandAudit)Rules,2014,theremunerationoftheCostAuditorsisrequiredtobeconfirmedbytheshareholdersoftheCompany.

ACopyofdraft letterofappointmentofShriSudarshanShastri, settingout the termsandconditionsofappointment isavailableforinspectionbythemembersattheregisteredofficeoftheCompany.

ITEMNo.6

ByOrderoftheBoardofDirectors

SuruchiMaheshwariCompanySecretary

Place:IndorethDate:14 August,2018

sd/-


DearMembers,

FINANCIALHIGHLIGHTS

thYourDirectors arepleased to present the26 AnnualReportand theCompany's auditedFinancial Statements for thestFinancialYearended31 March,2018.

stTheCompany'sfinancialperformancefortheyearendedon31 March,2018issummarizedbelow:

Particulars 2017-18 2016-17

1041.53

1105.33

122.60

63.80

0

646.35

95.59

428.16

38.29

218.19

10.43

12147.43

-6.50

12157.86

Less: (a)CurrentTax

(b)DeferredTax

RevenuefromOperations

Add:OtherIncome

TotalRevenue

EarningsBeforeFinancecost&Depreciation&Tax

Less:FinanceCosts

ProfitBeforeDepreciation

Less:DepreciationandamortizationExpenses

ProfitBeforeTax(PBT)

ProfitAvailableforAppropriation

Less:Transferredduringtheyear

ProfitAfterTax(PAT)

Add:ProfitBroughtForward

223.30

124.59

98.71

453.07

676.37

11673.50

11652.12

21.38

34.53

(2.29)

66.47

975.06

0

1,041.53

In compliancewith section92(3), section134 (3) (a) and rule11of theCompanies (Management andAdministration)Rules,2014 andTheCompaniesAmendmentAct,2017theannualreturnforthefinancialyear2017-18isavailableonthewebsiteoftheCompanyontheweblinkhttp://www.divyajyoti.net/AGM/Annual-Return-2017-18.pdf

COMPOSITIONANDMEETINGSOFTHEBOARD

InaccordancewiththeprovisionsofCompaniesAct,2013andArticlesofAssociationoftheCompanyMr.GirdhariLalNyati(DIN- 00118079), Whole Time Director retires by rotation and being eligible offers himself for re-appointment & thedeclarationhasbeenreceivedfromhimcertifyingthathemeetswithcriteriaofappointmentandholdingofficeofDirectorthereto.

DIRECTORSANDKEYMANAGERIALPERSONNELBased on recommendation of Nomination and Remuneration Committee and Audit Committee, Mr. Gopal Nyati (DIN:

st00784071),ExecutiveDirectoroftheCompanywhoseperiodofappointmentasWholeTimeDirectorhasexpiredon31 thMarch,2018wasreappointedasWhole-timeDirectorintheBoardMeetingheldon10 February,2018subjecttotheapproval

ofmembersatthisAnnualGeneralMeeting.Necessaryresolutionseekingapprovalofthemembersforre-appointmentofMr.GopalNyatiasWholetimeDirectorhasbeenincorporatedintheNoticeoftheensuingAnnualGeneralMeeting.

ANNUALRETURN

Currently, the Board has three committees: the Audit Committee, the Nomination & Remuneration Committee and theStakeholders'RelationshipCommittee.AdetailednoteonthecompositionoftheBoardanditscommitteesisprovidedintheCorporateGovernanceReportformingpartofthisAnnualReport.6(Six)meetingsoftheBoardofDirectorswereheldduringtheyear.ThedetailsofBoardandCommitteemeetingsarementionedintheCorporateGovernanceReport.

Duringtheyearunderreview,yourCompanyhasrecordedtotalrevenueofRs.121.57Crores.TherevenuefromoperationsofsttheCompanyfortheyearended31 March,2018hasincreased.

BUSINESSPERFORMANCEANDTHESTATEOFCOMPANYAFFAIRS

BOARDREPORT


Matchingtheneedsof theCompanyandenhancingthecompetenciesof theBoardarethebasis for theNominationandRemunerationCommitteetoselectacandidateforappointmenttotheBoard.Thecurrentpolicyistohaveabalancedmixofexecutiveandnon-executiveIndependentDirectorstomaintaintheindependenceoftheBoard,andseparateitsfunctionsofgovernanceandmanagement.

Duringtheperiodunderreview,Mr.ShriNiwasSoni(DIN:02302980),hasresignedasIndependentDirectoroftheCompanythw.e.f.12 March,2018.

Duringtheyear,Ms.PrabhaviMungeehasresignedfromthepostofCompanySecretaryandComplianceofficer(KMP)w.e.f.st31 December,2017andMs.SuruchiMaheshwariwasappointedasCompanySecretaryandComplianceofficer(KMP)ofthe

thCompanyw.e.f5 January,2018.

INDEPENDENTDIRECTORSMr.SudarshanShastri(DIN:00155105),IndependentDirectoroftheCompanyisproposedtobere-appointedasIndependentDirectorof theCompanyat thisAnnualGeneralMeeting for a termup to five consecutiveyears in accordancewith theprovisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as

thamended.RelevantinformationandtheproposalforthesameisincludedintheNoticecalling26 AnnualGeneralMeeting.

Duringtheyearunderreview,appointmentofMr.SureshKumarVarma(DIN:07651488)asIndependentDirectoroftheth thCompanyw.e.f.14 November,2016foraperiodoffiveyearshasbeen approvedbythemembersat25 AnnualGeneral

thMeetingoftheCompanyheldon27 September,2017.

TheCompanyhasreceivednecessarydeclarationfromeachindependentdirectorunderSection149(7)oftheCompaniesAct,2013,thathemeetsthecriteriaofindependenceaslaiddowninSection149(6)oftheCompaniesAct,2013andRegulation25ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

MEETINGOFINDEPENDENTDIRECTORS

(i) EvaluationoftheperformanceofNon-IndependentDirectorsandtheBoardofDirectorsasawhole;

Duringtheyearunderreview,theIndependentDirectorsmetonThursday,the1stdayofMarch,2018,interalia,carriedonthefollowingbusiness:

(ii) EvaluationoftheperformanceoftheChairmanoftheCompany,takingintoaccounttheviewsoftheExecutiveandNon- ExecutiveDirectors;(iii) Evaluationofthequality,contentandtimelinesofflowofinformationbetweentheManagementandtheBoardthatis necessaryfortheBoardtoeffectivelyandreasonablyperformitsduties.

FORMALANNUALEVALUATION

PolicyonDirector'sAppointmentandRemuneration

Thepolicyformulatesthecriteriafordeterminingqualifications,competencies,positiveattributesandindependencefortheappointmentofadirector(executive/non-executive)andalsothecriteriafordeterminingtheremunerationofthedirectors,key managerial personnel and other employees.The Complete policy is available on the web linkhttp://www.divyajyoti.net/Policies/Remuneration%20Policy.pdf.

DIRECTORS'RESPONSIBILITYSTATEMENTPursuanttoSection134(5)oftheCompaniesAct,2013,theBoardofDirectorsconfirmthat:-

(vi) TheDirectorshavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuch systemsareadequateandoperatingeffectively.

(ii) Theyhave,intheselectionoftheaccountingpolicies,consultedthestatutoryauditorsandhaveappliedthem consistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthe stateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitoftheCompanyforthatperiod.

(I) Inthepreparationoftheannualaccounts,theapplicableaccountingstandardshavebeenfollowedandthatthereareno materialdepartures.

(iii) Theyhavetakenproperandsufficientcare,tothebestoftheirknowledgeandability,forthemaintenanceofadequate accountingrecordsinaccordancewiththeprovisionsoftheCompaniesAct,2013forsafeguardingtheassetsofthe Companyandforpreventinganddetectingfraudandotherirregularities.

POLICIES

(iv) Theyhavepreparedtheannualaccountsonagoingconcernbasis.(v) TheDirectorshavelaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancial controlsareadequateandareoperatingeffectively.

TheBoardcarriedoutanannualperformanceevaluationofitsownperformance,theIndependentDirectorsindividuallyaswellastheevaluationoftheworkingoftheCommitteesoftheBoard.TheperformanceevaluationofalltheDirectorswascarriedoutindividuallybytheNominationandRemunerationCommittee.


ExpenditureinForeignCurrency : Nil ValueofCIFImports : Nil2. OutGo

TheCompanyhasdirectlyexportedLecithinforFOBvalue$2,55,200.00(DollarTwoLacsFiftyFiveThousandTwo Hundredonly)amounting toRs.1,62,60,720/- (RupeesOneCroreSixtyTwoLacsSixtyThousandSevenHundred Twentyonly)duringtheyearunderreview.

1. Earnings

TheCompanyhasalreadyestablishedanexportmarketforitsproductsandhasbeentakingkeeninterestfordevelopingnewexportmarketforitsproducts.

III.FOREIGNEXCHANGEEARNINGS&OUTGO

isnotapplicable.3. Wedonothaveanyimportedtechnologyandhence,thedetailsrequiredtobegivenforimportedtechnology2. However,itisnotpossibletoevaluatetheexactcostreductionandproductionimprovement.1. Thetechnologyisinnovatedonthebasisofexperiencegainedintheworkingoftheplant.

(B)TechnologyAbsorption,AdaptionandInnovation

4. ExpenditureonR&D.:N.A.3. FuturePlanofAction:Atthemoment,thecompanyhasnospecialareastocarryonR&D.2. BenefitsderivedasaresultoftheaboveR&D:N.A.

1. TheCompanyisnotcarryingonanyR&DinspecialareabutiscontinuouslyengagedinimprovementofPlantand Machinerytoconserveenergyforbetterworkingresults.

(A) Research&DevelopmentII. TECHNOLOGYABSORPTION

TheCompanyhasbeenlayingemphasisontheconservationofenergyandtakingseveralmeasureslikeeffective

controlonutilizationofenergyandregularmonitoringofitsconsumptionetc.Theadoptionofthesemeasuresto

conserveenergyhasresultedinsavingofthesame

I.CONSERVATIONOFENERGY

Theparticularsrelatingtoenergyconservation,Technologyabsorption,foreignexchangeearningsandoutgo,asrequiredto

bedisclosedunderSection134(3)(m)oftheCompaniesAct,2013readwiththeCompanies(Accounts)Rules,2014are

formingpartoftheBoardReport.

CONSERVATIONOFENERGY,TECHNOLOGYABSORPTION&FOREIGNEXCHANGEEARNINGSANDOUTGO

Rate/Litre(InRs.) 48.17 52.55 TotalCost(InRs.) 430170.36 9,94,889 Quantity(Litre) 8931 18931Diesel

Rate/MT(InRs.) 6584.73 6,229.20 TotalCost(InRs.) 26181136.37 1,79,42,27,300 Quantity(Metricton) 3976.035 2880.360Coal

Rate/Unit(InRs.) 8.57 9.41 TotalCost(InRs.) 1,73,07,650.00 1,64,68,514.00 Unit(KWH) 2019104 1750455Electricity

PowerandFuelConsumption 2017-18 2016-17

(AmountinRs.)


Thecompanyhasadequatesystemofmanagement,supervisedinternalcontrol,whichisaimedatachievingefficiencyinoperations,optimumutilizationofresources,effectivemonitoringandcompliancewithallapplicablelaws.Itensurethatallcorporatepoliciesarestrictlyadheredto.Anabsolutetransparencyisfollowedinaccountingandallitsbusinessdealings.TheCompany's internalcontrolsystemsarecommensuratewiththenatureof itsbusinessandthesizeandcomplexityof itsoperations.Thecompanyensuresadherencetoallinternalcontrolpoliciesandprocedures.AqualifiedandindependentauditcommitteeoftheBoard,reviewstheadequacyofinternalcontrol.ThereportonInternalFinancialControlhasalsobeenannexedwiththefinancialstatementsoftheCompanyasprovidedbytheStatutoryAuditoroftheCompany.

INTERNALCONTROLSYSTEMANDTHEIRADEQUACY

DEPOSITSTheCompanyhasnotinvited/acceptedpublicdepositwithinthemeaningofsection73oftheCompaniesAct,2013andrulesmadethereunder,duringtheyearunderreview.

DisclosurespertainingtoremunerationandotherdetailsasRequiredunderSection197(12)oftheActreadwithRule5(1)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014areasfollows:-i. ThepercentageincreaseinremunerationofeachDirector,ChiefFinancialOfficerandCompanySecretaryduring thefinancialyear2017-18:-

PARTICULARSOFEMPLOYEESANDRELATEDDISCLOSURES

ThereisnoincreaseinremunerationofDirectorsandKMPexceptintheremunerationofMr.AnkitMaheshwari,CFO oftheCompany,by16.28%inthefinancialyear2017-18.

ii. ratiooftheremunerationofDirectortothemedianremunerationoftheemployeesoftheCompanyforthefinancial year2017-18areasunder:

Further,duringtheyearunderreview,CompanyhasreceivedloanfromMr.GopalNyati(DIN:00784071),WholeTimeDirectoroftheCompanyforanaggregateamountofRs.FiftyFiveLakhsonly,inaccordancewiththeprovisionsofCompaniesAct,2013andunderthedeclarationasprescribedunderRule2(1)(c)(viii)ofCompanies(AcceptanceofDeposits)Rules,2014.

Further, In accordance with the provisions of Section 197(12) of the Act read with Rule 5 (2) and 5 (3) Companies

(AppointmentandRemunerationofManagerialPersonnel)Rules,2014,readwithSection136(1)oftheAct,theReportand

Accountsassetouttherein,arebeingsenttoallMembersofyourCompanyexcludingthestatementasrequiredunderthe

aforesaidrules.The copiesofsameisavailableforinspectionbyMemberatitsregisteredofficeduringworkinghoursforathperiodoftwentyonedaysbeforethedateoftheannualgeneralmeetingi.e.from8 September,2018.

PersonnelandotherEmployees.

vii. ItisherebyaffirmedthattheremunerationpaidisaspertheRemunerationPolicyforDirectors,KeyManagerial

vi. Average percentage increasemade in the salaries of employees other than themanagerial personnel in the last financialyeari.e.2017-18was2.05%.

stv. Therewere114permanentemployeesontherollsoftheCompanyason31 March,2018.iv. Inthefinancialyear,increaseofinthemedianremunerationofemployees:Niliii. ThemedianremunerationofemployeesoftheCompanyforthefinancialyearwasRs.9250/-P.M.

S.No.

12 240000

840000

RemunerationofDirector/KMPfor

financialyear2017-18

2.16

RatioofRemunerationofeachDirectortomedian

Remunerationofemployees

7.56WholeTimeDirectorWholeTimeDirector

Designation

Mr.GopalNyatiMr.GirdhariNyati

NameofDirector


BoardofDirectorswouldliketoexpresssincereappreciationfortheassistanceandco-operationreceivedfromthefinancial

institutions,banks,governmentauthorities,customers,vendorsandmembersduringtheyearunderreview.YourDirectors

alsowishtoplaceonrecordtheirdeepsenseofappreciationforthecommittedservicesbytheCompany'sexecutives,staffand

Workers.

ACKNOWLDGEMENT

Management Discussion and Analysis Report for the year under review, as stipulated under Companies Act, 2013 andSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015ispresentedinaseparatesectionandformingpartoftheAnnualReport.

MANAGEMENTDISCUSSIONANDANALYSISREPORT

TherequisitecertificateanddeclarationsarealsoannexedtotheCorporateGovernanceReport.

TheReportonCorporateGovernanceasstipulatedunderSecuritiesandExchangeBoardofIndia(ListingObligationsand

DisclosureRequirements)Regulations,2015andListingAgreementwith theBombayStockExchange formspartof this

AnnualReport.

CORPORATEGOVERNANCE

Place:Indore thDate:14 August,2018

sd/-GirdhariR.Nyati

WholeTimeDirectorDIN:00118079

sd/-GopalNyati

WholeTimeDirectorDIN:00784071

OnbehalfoftheBoardofDirectors


CORPORATEGOVERNANCEREPORT

TheCompany'sCorporateGovernancepolicyisbasedontheideologyoftransparencyandopennessintheeffectiveworkingofthemanagementandtheBoard.ItisimperativetonotethatgoodCorporateGovernanceliesnotmerelyindraftingacodeofCorporateGovernancebutinpracticingit.YourCompanyconfirmsthecomplianceofCorporateGovernanceaspertheListingAgreementandRegulationsascontainedinChapterIVoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015("SEBI(LODRRegulations)")asamended.

COMPANYPHILOSOPHYONCORPORATEGOVERNANCE

BOARDOFDIRECTORS

a) COMPOSITIONOFTHEBOARD TheBoardofDirectorsoftheCompanyconsistsofanoptimumcombinationofExecutive,NonExecutiveandIndependent directors, to ensure the independent functioning of the Board.ThecompositionoftheBoardofDirectorsisas follows.

CORPORATEGOVERNANCEREPORTInaccordancewithSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015,theDirectorspresenttheCompany'sReportonCorporateGovernance.

1.

2.

3.

4.

5.

6.

Mr.GirdhariRNyati

Mr.GopalNyati

Mrs.BabitaNyati

Mr.SudarshanShastri

Mr.SureshKumarVarma

Mr.JohnneyPaul

WholeTimeDirector

ExecutiveDirector

WomanDirector

Director

Director

Director

Executive

Executive

NonExecutive

IndependentNonExecutive



b) NO.OFBOARDMEETINGSHELDDURINGTHEFINANCIALYEAR2017-18

Duringtheyearunderreview,theBoardofDirectorsmet(6)timesonthedatesgivenhereinbelow:

27.05.2017 11.08.2017 25.11.2017 05.01.2018 10.02.2018 12.03.2018

Directorship

ofother

Indian

Companies

NameofDirectorsS.No.

No.ofChairmanship/MembershipofotherBoard

No.ofBoardMeetings Attendanceat

thelastAGM

Held Attendance

1.

2.

3.

4.

5.

6.

7.

Mr.GirdhariRNyati

Mr.GopalNyati

Mr.ShriniwasSoni*

Mr.SudarshanShastri

Mrs.BabitaNyati

Mr.SureshKumarVarma

Mr.JohnneyPaul

1

1

Nil

1

1

Nil

3

Nil

2

3*

6

1

2

Nil

6

6

6*

6

6

6

6

6

6

5

6

6

1

1

Yes

Yes

Yes

Yes

Yes

No

No


th1. Mr.ShriniwasSonihasresignedw.e.f.12 March,2018.2. ShriGopalNyati(DIN:00784071)andSmt.BabitaByati(DIN:0694655),DirectorsoftheCompanyarerelatedtoeach otheri.e.spouse.3. HoldingofsharesbyNonExecutiveDirectors

Note:-

Mrs.BabitaNyati Mr.SudarshanShastri

90000EquityShares 3000EquityShares

5. ReviewingwiththeManagement,theperformanceofStatutoryAuditorsandadequacyofinternalcontrolsystems.

c) majoraccountingentriesinvolvingestimatesbasedontheexerciseofjudgmentbymanagement;

6. CarryingoutsuchotherfunctionsasmaybespecificallyreferredtotheCommitteebytheBoardofDirectorsand/orother CommitteesofDirectorsoftheCompanyandasrequiredbyanyapplicablelaw.

f) modifiedopinion(s)inthedraftauditreport.

4. theweblinkoffamilarisationprogrammeis: http://www.divyajyoti.net/Policies/Familiarization%20programme%20of%20Independent%20Directors.pdf

COMMITTEESOFTHEBOARDInCompliancewiththerequirementsundertheSEBI(ListingObligationsandDisclosureRequirementsRegulations),2015,ListingAgreementandtheapplicablelaws,theBoardhasconstitutedthefollowingcommittees:

2.Nomination&RemunerationCommittee 1.AuditCommittee

3.StakeholdersRelationshipCommittee

TermsofReferenceandRoleofAuditCommittee:-

TheAuditCommitteeisconstitutedinaccordancewiththeprovisionsofSection177oftheCompaniesAct,2013andSecuritiesandExchangeBoardofIndia(ListingObligations andDisclosure Requirements) Regulations,2015.MembersoftheAuditCommitteearefinanciallyliterateamongwhomMr.GopalNyatiisaCharteredAccountantandthefinanceprofessionalandMr.SudarshanShastriisSeniorCorporateLegalandFinancialConsultant.

AUDITCOMMITTEE

4. ReviewingwiththeManagement,theQuarterlyFinancialresultsbeforesubmissiontotheBoardforapproval.

The composition, procedures, powers and role/functions of the Audit Committee of the Company comply with therequirementsofRegulation18(3)andPartCofScheduleIIofSecurities andExchangeBoardofIndia(ListingObligations andDisclosureRequirements)Regulations,2015andprovisionsoftheCompaniesAct,2013.RoleofAuditCommitteeincludesthefollowing:1. OversightoftheCompany'sfinancialreportingprocessandthedisclosureofitsfinancialinformationtoensurethatthe FinancialStatementsarecorrect,sufficientandcredible.2. RecommendingtotheBoard,theappointment,reappointmentand,ifrequired,thereplacementorremovalofStatutory AuditorsincludingCostAuditorsandfixationofauditfees.

a) mattersrequiredtobeincludedinthedirector'sResponsibilityStatementtobeincludedintheboard'sreportinterms

ThescopeandfunctionoftheAuditCommitteeistoregularlyreviewtheinternalcontrolsystemsandprocedures,accountingpoliciesandothermattersthatprotecttheinterestofthestakeholders,ensurecompliancewiththelawsandmonitoractivitieswithaview to provide effective supervision to the management's process, ensure accurate, timely and proper disclosures,transparency,integrityandqualityoffinancialreporting.

3. ReviewingwiththeManagement,theAnnualFinancialStatementsbeforesubmissiontotheBoardforapprovalwith particularreferenceto:

ofclause(c)ofsub-section(3)ofSection134oftheCompaniesAct,2013; b) Changes,ifany,inaccountingpoliciesandpracticesandreasonsforthesame;

d) Compliancewithlistingandotherlegalrequirementsrelatingtofinancialstatements; c) Significantadjustmentsmadeinthefinancialstatementsarisingoutofauditfindings;

e) Disclosureofrelatedpartytransactions;


27.05.2017 11.08.2017 25.11.2017 05.01.2018 10.02.2018

MEETINGSHELDDuringtheFinancialYear2017-18,5(Five)AuditCommitteeMeetingswereheldonthefollowingdates:

COMPOSITIONANDATTENDANCE

NameOftheMember stCompositionason31 March2018 No.ofMeetingsAttended

Mr.SudarshanShastriMr.GopalNyatiMr.SureshKumarVerma

ChairmanMemberMember*

55

NotApplicable

Note:1.Mr.ShriNiwasSonihasresignedfromDirectorshipandtheCommitteethereofw.e.f.12.03.2018.Themeetingsheld

andattendedbyhimduringhistenureintheFinancialYear2017-18wereFour(4).th2.Mr.SureshKumarVarmahasappointedasmemberofAuditCommitteew.e.f.12 March,2018.

NOMINATIONANDREMUNERATIONCOMMITTEE

DescriptionandRoleoftheNomination&RemunerationCommittee:

Inaccordancewiththeprovisionsofsection178oftheCompaniesAct,2013readwithRule6oftheCompanies(Meetingsof

BoardanditsPowers)Rules,2014andRegulation19oftheSecuritiesandExchangeBoardofIndia(ListingObligationsand

DisclosureRequirements)Regulations,2015,roleofthesaidcommitteeisasunder:

2. Formulationofcriteriaforevaluationofperformanceofindependentdirectorsandboardofdirectors.

3. DevisingapolicyondiversityofBoard.

1. Formulationofcriteriafordeterminingqualifications,positiveattributes,independenceofadirectorandrecommend

totheBoardapolicyrelatingto,theremunerationofdirectors,keymanagerialpersonnelandotheremployees.

6. CarryingoutsuchotherfunctionsasmaybespecificallyreferredtotheCommitteebytheBoardofDirectorsand/or

otherCommitteesofDirectorsoftheCompanyandasrequiredbyanyapplicablelaw.

4. Identifying personswho are qualified to become directors andwhomay be appointed in seniormanagement in

accordancewiththecriterialaiddownandrecommendtotheBoardofDirectorstheirappointmentandremoval.

5. Whether to extend or continue the term of appointment of the independent director, on the basis of report of

performanceevaluationofindependentdirectors.

MEETINGSHELDDuringtheFinancialYear2017-18,2(Two)Nomination&RemunerationCommitteeMeetingwasheldonFollowingDates

th05 January,2018th10 February,2018

COMPOSITIONANDATTENDANCE

NameOftheMember stCompositionason31 March2018 No.ofMeetingsAttended

Mr.SudarshanShastriMrs.BabitaNyatiMr.SureshKumarVarma

ChairmanMemberMember

2NotApplicable

Nil

th 3. Mr.GopalNyatihasresignedfromthecommitteew.e.f.25 November,2017.

Note:1.Mr.ShriNiwasSonihasresignedfromDirectorshipandtheCommitteethereofw.e.f.12.03.2018andthemeetings heldandattendedbyhimduringhistenureintheFinancialYear2017-18wereTwo(2).

th 2.Mr.SureshKumarVarmaandMrs.BabitaNyati haveappointedasmemberofCommitteew.e.f.25 November,th 2017and12 March,2018respectively.


PERFORMANCEEVALUATIONCRITERIAFORINDEPENDENTDIRECTORS:

TheDirectorsexpressedtheirsatisfactiontotheevaluationprocess.

PursuanttotheprovisionsoftheCompaniesAct,2013andSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015,aBoardEvaluationPolicyhasbeenframedandapprovedbytheNominationandRemunerationCommittee(NRC)andbytheBoardwhichalsosetouttheperformanceevaluationcriteriaforIndependentDirectors.FurtherCodeofConductforIndependentDirectorsisinplace.

The Board carried out an annual performance evaluation of the Independent Directors individually. The performanceevaluationofalltheDirectorswascarriedoutbytheNominationandRemunerationCommittee.TheperformanceevaluationoftheChairmanandtheNon-IndependentDirectorswascarriedoutbytheIndependentDirectors.

REMUNERATIONOFDIRECTORS:

S.No. NameofDirector DescriptionofTransaction

1.2.

Mr.GirdhariR.NyatiMr.GopalNyati

SalarySalary

2,40000/-8,40000/-

2. No service contract has been executed between the company and executive directors. The services of Executive

DirectorsaresubjecttothepersonnelpolicyoftheCompany.Noseverancefeesispayabletoexecutivedirectors.

4. Presently, the Company does not have a scheme for grant of Stock Options either to the executive directors or

employees.

5. AllNonExecutiveDirectorsdonothaveanypecuniaryrelationshipwiththeCompanyotherthanreceiptofsittingfees

forattendingmeetingsoftheBoardandCommitteesandnoremunerationispayabletothem.

6. Thecompanydoesnotpaycommissionorperformancelinkedincentivestoanyofthedirectors

STAKEHOLDERS'RELATIONSHIPCOMMITTEE

3. Theremuneration to the executive directors is being paid as per the recommendation of Remuneration

Committeeandapprovaloftheshareholdersatthegeneralbodymeeting.

stCOMPOSITIONANDATTENDANCE(CompositionAson31 March2018)

Notes

1. Theremunerationtotheexecutivedirectorsisbeingpaidaspertheapprovaloftheshareholdersatthegeneralbody

meeting.

NameOftheMember Designation No.OfMeetingsAttended

Mr.SureshKumarVarmaMr.SudarshanShastriMr.GopalNyati

ChairmanMemberMember

Nil*44

2. Mr. SureshKumarVarma haveappointed Chairmanand Memberof Stakeholders'RelationshipCommitteeth w.e.f.12 March,2018.

Note: 1. Mr.ShriNiwasSonihasresignedfromDirectorshipandtheCommitteethereofasChairmanandmember w.e.f. 12.03.2018. The meetings held and attended by him during his tenure in the Financial Year 2017-18 were Four(4).

MEETINGSHELD

DuringtheFinancialYear2017-18,4(Four)StakeholdersRelationshipCommitteeMeetingswereheldonthefollowingdates:

th27 May,2017 th11 August,2017 th25 November,2017 th10 February,2018

AnnualReport-2017-18

Alltheresolution,includingspecialresolutions,werepassedbytheshareholdersassetoutintherespectivenoticesthroughpoll.Noresolutionwasputtovotethroughpostalballotinlastyeari.e.2016-17andnoresolutionisputtovotethroughpostalballotintheyearunderreviewi.e.FY.2017-18.

MEANSOFCOMMUNICATIONS

FinancialResults:ThequarterlyfinancialresultsaresubmittedtotheBombayStockExchangeinaccordancewiththeSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andListingAgreement theretoandsimultaneouslypublishedinNewspapersi.e.Englisheditionof'FreePress'andHindieditionof'ChouthaSansar'.

Timelydisclosureofconsistent,comparable,relevantandreliableinformationoncorporatefinancialperformanceisatthecoreofgoodgovernance.TowardsthisendtheCompanyfurnishesfinancialinformationasfollows–

Website:TheCompany'swebsitewww.divyajyoti.netcontainsaseparatededicatedsection“Investors”whereinformationforshareholdersisavailable.TheQuarterly/AnnualFinancialResults,annualreportsarepostedonthewebsite.

GENERALSHAREHOLDERINFORMATIONAGMDETAILS

thDate : Saturday,29 September,2018

Time : 11:30AMVenue : PlotNo.M-19-39,Sector-III,IndustrialArea,PithampurDist-Dhar(M.P.)

FinancialYear: April1,2017toMarch31,2018th thBookClosureDate: 27 September,2018to29 September,2018(bothdaysinclusive)

Corporate Filing: Announcements, Quarterly Results, Shareholding Pattern etc. of the Company regularly filed by theCompany,arealsoavailableonthewebsiteofTheBombayStockExchangeLimited–www.bseindia.com.

Street,Mumbai400001

ISIN: INE666B01018AnnualCustody/IssuerfeefortheyearunderreviewhasbeenpaidbytheCompany.

StockScripCode: 526285

ListedonStockExchanges: BombayStockExchangeLimited,PhirozeJeejeebhoyTowers,Dalal

16

2014-20152015-20162016-2017

September21,2015September26,2016September27,2017

11.00am11.30am11.30am

RegisteredOfficeRegisteredOfficeRegisteredOffice

-1-


STOCKMARKETPRICEDATA

April17

May17

June17

July17

August17

September17

October17

November17

December17

January18

February18

March18

8.95

8.82

8.26

8.40

7.98

7.50

6.65

6.80

7.85

7.00

7.00

6.35

6.69

7.91

7.70

7.60

7.25

6.00

5.92

5.61

6.60

5.80

5.97

5.70

6843

6540

5839

12081

1070

4498

3800

2200

5521

23357

7545

4256

MonthMonth'sHighPrice(`)Month'sLowPrice(`)No.OfShares

C101,247Park,LBSMarg,VikhroliWest,Mumbai400083

LinkIntimeIndiaPrivateLimitedREGISTRAR&SHARETRANSFERAGENT

PhoneNo:022-25963838Fax:022-25946969

TransferanddematerializationofsharesareprocessedbyLinkIntimeIndiaPvt.Limited,Mumbaiandareapprovedby

Stakeholders'RelationshipCommittee.

Email:[email protected]

STDISTRIBUTIONOFSHAREHOLDINGASON31 MARCH,2018

SHARETRANSFERSYSTEM

1-500

501-1000

1001-2000

2001-3000

3001-4000

4001-5000

5001-10000

10001andabove

Total

10352

494

260

69

32

36

58

78

11379

1607356

410542

396176

177481

113514

170441

431284

6993206

10300000

90.9746

4.3413

2.2849

0.6064

.2812

0.3164

0.5097

0.6855

100.00

15.6054

3.9858

3.8464

1.7231

1.1021

1.6548

4.1872

67.8952

100.00

Sr.No.SharesRange No.of %ofTotal TotalShares %ofIssued

Shareholders Shareholders fortheRange Capital


STCATEGORIESOFSHAREHOLDINGASON31 MARCH,2018

ThesharesoftheCompanyareavailablefortradingontheStockExchangeandthepositionofdematerializationofsharesisasfollows:

DEMATERIALIZATION

Ms.SuruchiMaheshwariCompanySecretary

a) DISCLOSUREREGARDINGMATERIALLYSIGNIFICANTRELATEDPARTYTRANSACTIONS There arenomaterially significant relatedparty transactions thatmayhavepotential conflictwith the interests of companyatlargeinthefinancialyear2017-18.RelatedpartytransactionshavebeendisclosedinNoteNo.33ofNoteson

st FinancialStatementformingpartoftheAnnualFinancialStatementfortheyearended31 March,2018.

ADDRESSFORCORRESPONDENSE

Phone:0731-4010900-901

DivyaJyotiIndustriesLimited

SapnaSangeetaRoad,Indore-452001(M.P.)

DISCLOSURES

201-204B.M.TowerOppositeLotusShowroom,

TheCompanydoesnothaveanyoutstandinginstrumentsGDRs/ADRsoranyconvertibleinstrumentsason31.03.2018.

Pithampur-454775,Dist.Dhar(M.P.)19-39,Sector-III,IndustrialArea

OutstandingGDRs/ADRs/Warrantsoranyotherconvertibleinstrumentsandtheirimpactonequity:

PLANTLOCATION

The Company has complied with all the mandatory requirements of the Securities and Exchange Board of India (Listing

ObligationsandDisclosureRequirements)Regulations,2015.

b)LEGALCOMPLIANCES TheCompanyhascompliedwithalltherequirementofregulatoryauthoritiesonthemattersrelatedtocapitalmarket hencenopenaltiesorstrictureshavebeenimposedontheCompanybyStockExchanges,SEBIoranyotherstatutory authorityduringthelastthreeyears.

c) WHISTLEBLOWERPOLICY/VIGILMECHANISM TheCompanyhasconveyedexistenceofWhistleBlowerPolicy/VigilMechanismtoallitsemployeesanditishereby affirmedbytheBoardthatnopersonnelhasbeendeniedaccesstotheAuditCommittee.

d) MANDATORYANDNON-MANDATORYREQUIREMENTS


S.No.

1

2

http://divyajyoti.net/Policies/Material%20Subsidiary%20Policy.pdf

http://divyajyoti.net/Policies/Related-Party-Transaction-Policy.pdf

WebLink

(f)CommodityPriceRiskand/orForeignExchangeRiskandhedgingactivities:

Place:Indore

thDate:14 August,2018

Duringtheyearunderreview,theCompanywasnotengagedinhedgingactivityandalltheforeignexchangerisk(s)werefullycovered.TheCompanyisnotdealingincommoditiesmarket,thereforethereisnocommoditypricerisk.

Theinvestorcomplaint(s)areprocessedinacentralizedwebbasedcomplaintsredresssystem.Thesalientfeaturesofthissystemare:Centralizeddatabaseofallcomplaints,onlineuploadofActionTakenReports(ATRs)bytheconcernedcompaniesandonlineviewingbyinvestorsofactionstakenonthecomplaintanditscurrentstatus.

SEBIComplaintsRedressSystem(SCORES):

OnbehalfoftheBoardofDirectors

Sd/-

GopalNyati

WholeTimeDirector

DIN:00784071

DECLARATIONFROMCHIEFEXECUTIVEOFFICER

Date:August14,2018 ChiefExecutiveOfficer

PursuanttotheprovisionsofScheduleV(D)ofSecuritiesandExchangeBoardofIndia(ListingObligations andDisclosure

Requirements)Regulations, 2015 I, SanjayBaweja, CEOof theCompanydeclare thatmembersof theBoard andSenior

ManagementPersonnelhaveaffirmedcompliancewiththecodeofconductoftheCompanyforBoardofDirectorsandSenior

management.

Place:Indore SanjayBaweja Sd/-

AUDITORS'CERTIFICATEONCORPORATEGOVERNANCE

WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyDivyaJyotiIndustriesLimited,fortheyearended31stMarch,2018asstipulatedinSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015andListingAgreementwiththeBombayStockExchanges.

TheMembersTo

DivyaJyotiIndustriesLimited

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythatthecompanyhascompliedwiththemandatoryrequirementsofCorporateGovernanceasstipulatedintheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015andListingAgreement.

ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityoftheManagement.Ourexaminationhasbeenlimitedtoa

reviewoftheproceduresadoptedandimplementationthereofbytheCompanyforensuringcompliancewiththeconditionsoftheCorporate

GovernanceasstipulatedinthesaidRegulations.It isneitheranauditnoranexpressionofopiniononthefinancialstatementsofthe

Company.

WestatethatsuchcompliancesareneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

e)WEBLINKOFPOLICIES

thDate:14 August,2018

Place:Indore

forAnubhavPradhan&CoCharteredAccountants

FRN.:013822C

sd/-AnubhavPradhanPartnerMembershipNo.113980


MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Soybean is a kharif crop and contributes to nearly one-third of India's overall oilseeds output. As per the latest survey by the apex industry body Soybean Processors' Association (SOPA), India's soybean output is at 83.5 lakh tonne for the harvesting season 2017-18.

In addition to above, BSE has signed a pact with Soybean Processors Association of India (SOPA) for the growth and development of commodity market and its value-chain participants, enabling them to manage price risk in a better manner in the Soybean oil complex.

The proactive approach of management assist Company in availing the opportunities comes in its path and have a promising way ahead. There can be risks inherent in meeting unforeseen situation, not uncommon in the industry. Company is fully aware of these challenges and is geared to meet them. Company also recognizes the risks associated with business and would take adequate measures to address the associated risks and concerns. However, management also sense the limitations due to limited resources in hand and funding scenario prevailing in the industry.

The long-term outlook of edible oil demand in India is favorable on expectation of increasing population, increase in per capita consumption which in turn would be driven by changing lifestyles, growing urbanization, increasing proportion of middle-class population and steadily rising affluence levels. The near-term outlook for the edible oil business is expected to be stable on steady edible oil domestic demand and improvement in operating margin due to increasing refining operations.

OUTLOOK

Segment Reporting is not being applicable on the company as the business activity of the company falls within single primary business segment viz. Solvent Extraction & Refinery. The core products of the Company are Soya DOC, Soya Refined oil and Soya Solvent Oil and it is to be noted that all these three products have relatively higher contribution during the year under review as compared to the past financial years.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

Indian Edible oil Industry has witnessed financial stress due to droughts, rising production costs and cheaper imports thus forcing several small & larger firms to suffer hardship in carrying on business. Volatility in margins has cost in terms of working capital erosion. Additional working capital is a challenge in current funding scenario to the industry as many of large players in Soya Industries have not been able to sustain the huge debt in light of the thin margins attributed to margins volatility. Opportunity cost to the other industry players, specially small, has been very high due to very limited working capital being available and absence of capital raising resources.

Supported by record soya bean production and attractive prices for international buyers, India's soya meal exports are rapidly gaining ground in the global market. Trade sources revealed that countries that refrained from importing Indian soya meal are now among the top destinations.

OPPORTUNITIES AND THREATS

The agreement will be beneficial for launching products like soybean, soya oil and soya meal futures trading on BSE. BSE and SOPA have made significant progress in their respective areas for the growth and development of the commodity market and will share knowledge and expertise in this regard.

In line with this, the Company consistently aligns its strategies with ever changing business environment, which helps us to move towards a sustainable future. However, we also acknowledge that increasing pricing volatility both in procurement & supplying is a challenge and requires additional working capital to withstand it resulting in sustained margins. We also acknowledge the major developments in last 1 year where large players were forced to resort to NCLT for their unsustainable debt which mainly result of unprecedented volatility in raw material and finished goods prices has squeezed the margins of the industry substantially, can be contagious.

INDUSTRY STRUCTURE AND DEVELOPMENTS

20


ManagementhasputinplaceeffectiveInternalControlSystemstoprovidereasonableassuranceforsafeguardingassetsandtheirusage.ThereismaintenanceofproperaccountingrecordsandadequacyandreliabilityoftheinformationusedforcarryingonBusinessOperations. InternalAuditorof theCompanyensures complianceandeffectivenessof the InternalControlSystems.TheAuditCommitteeisregularlyreviewingtheinternalauditactivitiesfortheauditingcarriedoutinallthekeyareasoftheoperations.

INTERNALCONTROLSYSTEMSANDTHEIRADEQUACY

StatementsintheManagementDiscussionandAnalysisReportdescribingtheCompany'sstrengths,strategies,projectionsandestimates,areforward-lookingstatementsandprogressivewithinthemeaningofapplicablelawsandregulations.Actualresultsmayvaryfromthoseexpressedor implied,dependinguponeconomicconditions,GovernmentPoliciesandotherincidentalfactors.Readersarecautionednottoplaceunduerelianceontheforwardlookingstatement.

CAUTIONARYSTATEMENT

DISCUSSIONONFINANCIALPERFORMANCEWITHRESPECTTOOPERATIONALPERFORMANCEYourCompanyrecordedrevenueofRs.12147.43LacsduringtheyearunderreviewasagainsttherevenueofRs.11652.11lacsintheprecedingfinancialyearasthesalesofcoreproductsoftheCompanyintheyearunderreviewwasrelativelyhightothatof theprecedingfinancialyear.Debtorsof thecompanyhasbeenhighduetocurrent liquidityscenarioprevailing intheindustryhowever,companyishopefulofnotlettingitstretchfurtherunlessterminalmeltdownatdebtorsendlikehappenedincaseofmanySoyaIndustry’slargeplayerswhowereforcedtoresorttoNCLTfordebtbeingunsustainableduetoindustrialdevelopments.

Relations between themanagement& the employees at all levels remained healthy& cordial throughout the year. TheManagementandtheemployeesarededicatedtoachievethecorporateobjectivesandthetargetssetbeforetheCompany.Internaltransfer,jobrotationandtraininghavebeeninculcatedatdifferentlevelsoforganizationinordertonurturethepotentialskillsoftheemployeesoftheCompany.Therewere114employeesontheRollattheendoftheFinancialYear.

HUMANRESOURCE/INDUSTRIALRELATIONS

21


f. TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008(NotApplicabletothe companyduringtheyear);

e. TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regarding theCompaniesActanddealingwithclient;

V. ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992('SEBI Act')totheextentapplicabletotheCompany:-

IV.ForeignExchangeManagementAct,1999andtheRulesandRegulationsmadethereundertotheextentofForeignDirect Investment,OverseasDirectInvestmentandExternalCommercialBorrowings(NotApplicabletothecompanyduringthe year);

DuringtheperiodunderreviewtheCompanyhascompliedwiththeprovisionsoftheAct,Rules,Regulations,Guidelines, Standards,ListingAgreementsetcmentionedabove.

i. TheCompanyhascompliedwiththerequirementsundertheSEBI(ListingObligationsandDisclosureRequirements) Regulations,2015.

h. TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998(NotApplicabletothecompany duringtheyear);

III.TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

CIN:L15143MP1992PLC007090

PITHMPUR-454775,Dist.Dhar

We,haveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporate practices by (hereinafter called the Company). Secretarial Audit wasDIVYA JYOTI INDUSTRIES LIMITEDconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.Basedonourverificationofthebooks,papers,minutebooks,formsandreturnsfiledandother recordsmaintained by the Company and also the information provided by the Company, its officers, agents andauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,theCompanyhas,

stduringtheauditperiodcoveringthefinancialyearendedonMarch31 ,2018,compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

1.Wehaveexamined thebooks, papers,minutebooks, formsand returns filedandother records maintainedby the st Companyforthefinancialyearendedon31 March,2018accordingtotheprovisionsof:

II. TheSecuritiesContracts(Regulation)Act,1956('SCRA')andtheRulesmadethereunder;

TheMembers,To,

I. TheCompaniesAct,2013(theAct)andtheRulesmadethereunder;

FormNo.MR-3

(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]

19-39SECTORIIIINDUSTRIALAREA,

[PursuanttoSection204(1)oftheCompaniesAct,2013andRuleNo.9oftheCompanies

SecretarialAuditReport

g. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009(NotApplicabletothecompany duringtheyear);

c. TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014(NotApplicableto thecompanyduringtheyear);

st(Forthefinancialyearended31 March,2018)

d. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009(Not Applicabletothecompanyduringtheyear);

DIVYAJYOTIINDUSTRIESLIMITED

b. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015; a. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

I. SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndia.We,havealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

II. TheListingAgreementsenteredintobytheCompanywiththeBSELimited.


· AllthedecisionsattheBoardMeetingsandCommitteeMeetingshavebeencarriedoutunanimouslyasrecordedinthe minutesofthemeetingoftheBoardofDirectorsorCommitteesoftheBoard,asthecasemaybe.

Place:Indore

Wefurtherreportthat:

thDate:July14 ,2018

· thereareadequatesystemsandprocessesinthecompanycommensuratewiththesizeandoperationsoftheCompanyto monitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

Wefurtherreportthat

· therewerenosuchspecificevents/actionsinpursuanceoftheabovereferredlaws,rules,regulations,etc.,havingamajor bearingontheCompany'saffairs.

· AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentat leastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsonthe agendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

· TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-Executive DirectorsandIndependentDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringthe periodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.

forKaushalAmeta&Co.sd/-

KaushalAmeta(Proprietor)PracticingCompanySecretary

MembershipNo:F8144C.P.No.:9103

forKaushalAmeta&Co.sd/-

KaushalAmeta(Proprietor)PracticingCompanySecretary

MembershipNo:F8144C.P.No.:9103

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

Place:Indore thDate:July14 ,2018

5. ThecomplianceoftheprovisionsofCorporateandotherapplicablelaws,rules,regulations,standardsistheresponsibility ofmanagement.

DIVYAJYOTIINDUSTRIESLIMITED

2. We have followed the audit practices and processes aswere appropriate to obtain reasonable assurance about the correctnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsare reflectedinsecretarialrecords.

4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulationsandhappeningofeventsetc.

19-39SECTORIIIINDUSTRIALAREA,

3. Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.Wehavenotverified thecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsofthecompany.

CIN:L15143MP1992PLC007090

AnnexuretoSecretarialAuditReportTo,TheMembers

PITHMPUR-454775,Dist.Dhar

OurSecretarialreportofevendateistobereadalongwiththisletter.1. Maintenanceofsecretarialrecordistheresponsibilityofthemanagementofthecompany.Ourresponsibilityistoexpress anopiniononthesesecretarialrecordsbasedonouraudit.


OtherMatters

a. Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofouraudit

b. InouropinionproperbooksofaccountsasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks.

2. AsrequiredbySection143(3)oftheAct,wereportthat:

1. AsrequiredbytheCompanies(Auditor'sReport)Order,2016('theOrder')issuedbytheCentralGovernmentofIndiaintermsofSection143(11)oftheAct,wegiveintheAnnexureA,astatementintheparagraph3and4oftheorder.

ReportonotherLegalandRegulatoryRequirements

TheCompany'sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)ofCompaniesAct2013('TheAct')withrespecttothepreparationoftheseIndASfinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financial performance, changes in equity and cash flows of the company in accordancewith the Accounting principlesgenerallyacceptedinIndia,includingtheIndianAccountingStandards(IndAS)prescribedundersection133oftheAct.ThisresponsibilityalsoincludesthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguarding the assets of the company and for preventing and detecting frauds and other irregularities, selection andapplicationofappropriateaccountingpolicy,makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceof internalfinancialcontrolrelevanttothepreparationandpresentationoftheIndASfinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidoftheIndASfinancialstatementsgivetheinformationrequiredbytheAct inthemannersorequiredandgiveatrueandfairviewinconformitywith the accountingprinciples generally accepted in India including the IndAS, of the stateof affairsof theCompanyasatMarch31,2018,itsprofit(includingothercomprehensiveincome),itscashflowsandchangesinequityfortheyearendedonthatdate.

ThecomparativefinancialinformationofthecompanyfortheyearendedMarch31,2017andthetransitiondateopeningBalanceSheetasatApril1,2016preparedinaccordancewithIndASincludedintheseIndASFinancialStatementshavebeenauditedbythepredecessorAuditorwhoexpressedanunmodifiedopiniononthosestatementsonMay27,2017.

Opinion

AnauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresintheIndASfinancialstatements.Theproceduresselecteddependontheauditor'sjudgment,includingtheassessmentoftherisksofmaterialmisstatementoftheIndASfinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsiders internal financial control relevant to the Company's preparation and fair presentation of the IndAS financialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances.AnauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCompany'sDirectors,aswellasevaluatingtheoverallpresentationoftheIndASfinancialstatements.

OurresponsibilityistoexpressanopinionontheseIndASfinancialstatementsbasedonouraudit.WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtherulesmadethereunderandtheorderissuedu/s.143(11)oftheAct. WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedu/s.143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhethertheIndASfinancialstatementsarefreefrommaterialmisstatement.

WebelievethattheauditevidenceobtainedbyusissufficientandappropriatetoprovideabasisforourauditopinionontheIndASfinancialstatements.

Management'sResponsibilityfortheIndASFinancialStatements

Auditor'sResponsibility

ReportontheIndASFinancialStatements

TheMembersofDivyaJyotiIndustriesLimitedTo,

WehaveauditedtheaccompanyingIndASfinancialstatementsofDivyaJyotiIndustriesLimited(“theCompany”),whichcomprisetheBalanceSheetasatMarch31,2018,theStatementofProfitandLoss(includingOtherComprehensiveIncome),theCashFlowStatementandtheStatementofChanges inEquity for theyear thenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas“IndASFinancialStatements”).

INDEPENDENTAUDITOR'SREPORT

24


c. TheBalanceSheet,theStatementofProfitandLoss,theCashFlowStatementandtheStatementofChangesinEquitydealtwithbythisreportareinagreementwiththebooksofaccount;

g. With respect to theothermatters tobe included in theAuditor's report in accordancewithRule11of theCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandexplanationsgiventous:

d. Inouropinion,theaforesaidIndASfinancialstatementscomplywiththeaccountingstandardsspecifiedundersection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

Place:Indore

(iii) Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheCompany.

f. Withrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingofthecompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportin'AnnexureB'and

(ii) The Company hasmade provision, as required under the applicable law or Accounting Standards, formaterialforeseeablelosses,ifany,onlongtermcontractsincludingderivativecontracts.

(I) TheCompanyhasdisclosedtheimpactofpendinglitigationsonthefinancialpositioninitsIndASfinancialstatements.

thDate:May29 ,2018

ste. Onthebasisofthewrittenrepresentationreceivedfromthedirectorsason31 March2018takenonrecordbysttheBoardofDirectors,noneofthedirectorsisdisqualifiedason31 March2018frombeingappointedasa

directorintermsofSection164(2)oftheAct;

25

ForAnubhavPradhanandCo.CharteredAccountants

FirmRegistrationNo.013822C

sd/-AnubhavPradhan

PartnerMembershipNo.:113980


Name of theStatute

Natureofdues Amount(inLacs)

Period towhich theAmountrelates

Forumwheredisputeispending

M.P. CommercialTaxAct,1994

CommercialTax

6.51 2004-05 Reference Application filed toAppellateTribunal,Bhopal

M.P. CommercialTaxAct,1994

CommercialTax

2.39 2005-06 Reference Application filed toAppellateTribunal,Bhopal

M.P. Entry TaxAct,1976

EntryTax 0.26 2005-06 Reference Application filed inJabalpurHighCourt


EntryTax 0.79 2006-07 Writ Petition filed at Indore HighCourt





M.P. Central TaxAct,1956

Central SalesTax

57.85 2003-04 WritPetition filedat JabalpurHighCourt

26

ANNEXURE“A'TOINDEPENDENTAUDITOR'SREPORT

(c) Accordingtothe informationandexplanationgiventousandonthebasisofourexaminationthetitledeedsof immovablepropertiesareheldinthenameofthecompany.

The annexure referred to in Independent Auditor's Report to the members of the company on the Ind AS financial ststatementsfortheyearendedon31 March2018,wereportthat:

i. (a)Thecompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationof fixedassets.

iii. Thecompanyhasnotgrantedloans,securedorunsecuredtocompanies,firms,limitedliabilitypartnershipsorother partiescoveredintheregistermaintainedundersection189oftheCompaniesAct,2013.

(b)Asexplainedtousandonthebasisofourexamination,thecompanyhasregularprogrammeforphysicalverification ofitsfixedassetswhichisreasonablewithregardtothesizeofthecompanyandnatureofitsassetsandnomaterial discrepancieswerenoticedonsuchverification.

iv. Thecompanyhasnotgivenanyloans,investments,guaranteesandsecurityundertheprovisionsofsection185and186 oftheCompaniesAct,2013.

vi. Accordingtotheinformationandexplanationgiventousandverifiedbyusbroadlythecompanyhasmaintainedthecost recordsasprescribedbythecentralgovernmentundersubsection1ofsection148oftheCompaniesAct,2013.However, wehavenotmadeadetailedexaminationofCostrecordswithaviewtodeterminewhethertheyareaccurateorcomplete.

v. Thecompanyhasnotacceptedanydepositsfromthepublic.

vii. (a) Accordingto the informationandexplanationgiventousandonthebasisofourexaminationofrecordsof the company,thecompanyisregularindepositingstatutorydues,includingprovidentfund,employeesstateinsurance, Incometax,SalesTax,ServiceTax,GoodsandServiceTax(GST),DutyofCustoms,DutyofExcise,Valueaddedtax,cess andanyotherstatutoryduestotheappropriateauthorities. (b)According to the information and explanations given to us, no undisputed amounts payable in respect of ProvidentFund,Employees'StateInsurance,Income-Tax,Sales-Tax,ServiceTax,GoodsandServicesTax,Dutyof Customs,DutyofExcise,ValueAddedTax,Cessandothermaterialstatutorydueswereinarrearsasat31stMarch, 2018foraperiodofmorethansixmonthsfromthedatetheybecamepayable.

ii. Accordingtotheinformationandexplanationgiventous,thephysicalverificationofinventoryhasbeenconductedat reasonable intervals by the management. The procedure of physical verification of inventory followed by the managementisreasonableandadequateinrelationtothesizeofthecompanyandnatureofitsbusiness.Thecompany has maintained proper record of inventories and no material discrepancies were noticed on such verification of inventoriesascomparedtothebookrecords.

(c) Accordingtotheinformationandexplanationgiventous,followingduesofIncomeTax,salestax,servicetax,dutyof customsordutyof exciseorvalueadded taxhavenotbeendepositedby the companyonaccountofdisputes.


Name of theStatute

Natureofdues Amount(inLacs)

Period towhich theAmountrelates

Forumwheredisputeispending


Central SalesTax

181.46 2004-05 WritPetition filedat JabalpurHighCourt

M.P. ValueAddedTax,2002

Value AddedTax

52.44 2006-07 Appeal filed at Appellate Authority,CommercialTax,Indore


Central SalesTax

39.59 2008-09 AppealfiledatAppellateAuthority,CommercialTax,Indore


Central SalesTax



Central SalesTax



Central SalesTax



Central SalesTax


(xi) Accordingtothe informationandexplanationgiventousandbasedonourexaminationoftherecordsof the company, thecompanyhaspaid/provided for themanagerial remuneration inaccordancewith theapprovals mandatedbytheprovisionsofsection197,readwithScheduleVoftheCompaniesAct,2013.

thDate:May29 ,2018Place:Indore

(ix) The company did not raise anymoney by way of initial public offer or further public offer (including debt instruments)andtermloansduringtheyear.Accordingly,paragraph3(ix)oftheorderisnotapplicable.

(viii) Thecompanyhasnotdefaultedinrepaymentsofloansorborrowingstofinancialinstitutions,banks,government. Thecompanyhasnottakenanyloansfromdebentureholders.

(xiv) Accordingtothe informationandexplanationgiventousandbasedonourexaminationoftherecordsof the company,thecompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartly convertibledebenturesduringtheyear.

Note:Theamountduehasbeenshownasnetofamountspaid.

(x) Accordingtotheinformationandexplanationsgiventous,nofraudbythecompanyoronthecompanybyits officersoremployeeshasbeennoticedorreportedduringthecourseofouraudit.

Theamountdoesnotincludetheinterestclaimed,butnotyetquantified.

(xiii)Accordingtotheinformationandexplanationgiventousbythemanagement,transactionswithrelatedpartiesare incompliancewithSection177and188oftheCompaniesAct,2013,whereapplicableandthedetailshavebeen disclosedinthenotestothefinancialstatements.

(xv) Accordingtotheinformationandexplanationgiventousandbasedonourexaminationofrecordsofthecompany, thecompanyhasnotenteredintononcashtransactionwithdirectorsorpersonsconnectedwithhim.Accordingly paragraph3(xv)oftheorderisnotapplicable.

(xii) InouropinionandaccordingtotheinformationandexplanationgiventousthecompanyisnotaNidhiCompany. Accordingly,paragraph3(xii)oftheorderisnotapplicabletothecompany.

(xvi) Thecompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,1934.



sd/-AnubhavPradhan



(i) Pertain to themaintenance of records, in reasonable details, accurately and fairly reflects the transactions anddispositionsoftheassetsofthecompany.

MeaningofInternalFinancialControlsoverFinancialReportingAcompany'sinternalfinancialcontroloverfinancialreportingisaprocessdesigntoprovidereasonableassuranceregardingthereliabilityof financial reportingandthepreparationof financialstatement forexternalpurposes inaccordancewithgenerally accepted accounting principles. A company's internal financial controls over financial reporting include thosepoliciesandproceduresthat:

(ii) Providereasonableassurancethattransactionarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationofthemanagementsandthedirectorsofthecompanyand

(iii) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, ordispositionofthecompany'sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

InherentLimitationsofInternalFinancialControlsoverFinancialReportingBecauseofInherentlimitationsofinternalfinancialcontrolsoffinancialreporting,includingthepossibilitiesofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrolsoverfinancialreportingmaybecomeinadequatebecauseofchangesincondition,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.OpinionInouropinionthecompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreporting

standsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31 March,2018,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbythecompanyconsideringtheessentialcomponentofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.

Date:May29,2018 Place:Indore

Auditor'sResponsibilityOurresponsibilityistoexpressopinionontheCompany'sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialcontrolsoverfinancialreporting('theGuidanceNote')andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedunderSection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalfinancialControls,andbothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNote require thatwe complywith ethical requirements and plan and perform the audit to obtain reasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwereestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.Ouraudit involvesperformingprocedures toobtainauditevidenceabout theadequacyof the internal financialcontrolssystemsoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolssystemoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingriskthatamaterialweaknessexists,andtestingandevaluatingthedesignanoperatingeffectivenessofinternalfinancialcontrolsbasedontheassessedrisk.Theproceduresselecteddependontheauditor'sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

Management'sResponsibilityforInternalFinancialControls

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany'sInternalFinancialControlssystemoverfinancialreporting.

TheCompany'smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbythecompanyconsideringtheessentialcomponentsofinternalcontrolstated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India('ICAI').These responsibilities include the design, implementation and maintenance ofadequate internal controls thatwereoperatingeffectively for ensuring theorderly andefficient conductof itsbusiness,includingadherencetotheCompany'spolicies, thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecordsandthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

ReportontheInternalFinancialControlsunderClause(i)ofsub-section3ofSection143ofCompaniesAct,2013('theAct').

Annexure'B'totheAuditor'sReport

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofDivyaJyotiIndustriesLimited('theCompany')asofst31 March,2018inconjunctionwithourauditoftheIndASfinancialstatementsofthecompanyfortheyearendedonthatdate.

28



sd/-AnubhavPradhan



BalanceSheetasat31stMarch,2018

Particular Note Asat1stApril,2016

Asat31stMarch,2017

Asat31stMarch,2018

29

sd/-

sd/-

sd/-

sd/-

sd/-


Fortheyearended31stMarch,2018


StatementofProfitandLossfortheyearended31stMarch,2018

Particular Note

(c) DeferredTax(Net) (650121) (229009)

(a) CostofMaterialsConsumed 23 1050430635 933573333

(a) RevenuefromOperations 21 1214743335 1165211711

NetCurrentTaxExpenses(a+b) 3829002 3452972

(b) OtherIncome 22 1042778 2138218

A INCOME

Total 1215786113 1167349929

B EXPENDITURE

C PROFITBEFORETAX 9559265 9870861

D TAXEXPENSES

(e) FinanceCosts 27 42816456 45306923

(b) ShortProvisionofearlieryears’tax 250674 132514

(f) DepreciationandAmortisationExpense 28 12259285 12458519

(g) OtherExpenses 29 97446446 75281745

(a) CurrentTaxExpenses 3578328 3320458

Total 1206226848 1157479068

&Stock-in-Trade 25 (31933839) (12519891)

(d) EmployeeBenefitsExpense 26 23354036 23205660

(b) Exciseduty 516546 1488080

(b) PurchasesofStock-in-Trade 24 11337283 78744699

(c) ChangesinInventoriesofFinishedGoods,SIP

Total 3178881 3223963

E PROFITFORTHEYEAR 6380384 6646898

F EARNINGSPEREUITYSHAREOF

facevalueofRs.10/-each: 30

BasicandDiluted(inRs.) 0.62 0.65

NotesonFinancialStatements 1-36

30

sd/-

sd/-

sd/-

sd/-

sd/-


Particular Fortheyearended31stMarch,2017


CashFlowStatementfortheyearended31March,2018

Adjustmentsforincrease/(decrease)inoperatingliabilities: (a) TradePayables (6,217,889) 2,78,14,245

(f) Gainonforeigncurrencytransactions (57,895) -

OperatingProfitbeforeWorkingCapitalChanges 64034114 67086803 ChangesinWorkingCapital:

(f) LossonsaleofFixedAssets 1,702 1,05,285

Adjustmentsfor(increase)/decreaseinoperatingassets:

54474849 57215943

(e) DividendIncome (7,500) (3,750) (d) InterestIncome (537,199) (6,51,034)

A. CashFlowfromOperatingActivitiesProfitBeforeTax 9559265 9870860 Adjustmentsfor: (a) UtilisedfromReserve 0 0 (b) DepreciationandAmortisationExpense 12,259,285 1,24,58,519 (c) FinanceCosts 42,816,456 4,53,06,922

(e) OtherAssets(BankFDRs) 30,000 - (d) OtherCurrentAssets(Interestaccued) (57,249) 16,502

(b) TradeReceivables (11,060,713) (8,75,37,083) (a) Inventories (30,681,273) (1,68,75,113)

(c) OtherCurrentAssets 4,485,385 16,35,4,262

(b) OtherCurrentLiabilities 7,363,241 1,42,11,293 (c) Provisions (692,962) 35,95,586 (36831461) (42420308) CashGeneratedfromOperations 2,72,02,654 2,46,66,494 (a) NetTaxpaid (3,829,002) (34,52,972) NetCashFlowfrom/(usedin)OperatingActivities(A) 23,373,652 21,213,522B. CashFlowFromInvestingActivities: (a) PurchaseofFixedAssets (953,549) (2,95,371) (b) ProceedsfromSaleofFixedAssets 27,500 1,57,931 (c) Long-termLoansandAdvances (1,383,408) (31,38,764) (d) InterestIncome 537,199 6,51,034 (e) DividendIncome 7,500 3,750 (f) Gaininforeigncurrencytransaction 57895 - NetCashFlowfrom/(usedin)InvestingActivities(B) (1,706,863) (2,621,420)C. CashFlowFromFinancingActivities: (a) ProceedsfromLong-TermBorrowings 11,129,233 97,04,314 (b) RepaymentofLong-TermLiabilities 561,553 (57,234) (c) Netincrease/(decrease)inWorkingCapitalBorrowings 3,692,209 1,71,69,653 (d) FinanceCosts (42,816,456) (45,306,923) NetCashFlowfrom/(usedin)FinancingActivities(c) (27,433,461) (18,490,190) (a) NetIncreaseinCashandCashEquivalents (5,766,672) 1,01,912 (b) CashandCashEquivalentsatbeginningoftheyear 9,962,794 98,60,882 (c) CashandCashEquivalentsattheendoftheyear 4,196,122 99,62,794

31

(Amt.inRs.)

Note:TheaboveCashFlowStatementhasbeenpreparedunderthe"IndirectMethod"assetoutinIndianAccountingStandard-7on"CashFlowStatement"

sd/-

sd/-

sd/-

sd/-

sd/-


Particular Asat31stMarch2018

Asat31stMarch2017

StatementofchangesinEquityfortheyearended31March,2018

32

(Amt.inRs.)

A.EQUITYSHARECAPITAL

EquitySharesofINR10eachIssued,subscribedandfullypaid

Balanceatthebeginningoftheyear 103000000 103000000

Changesduringtheyear

Balanceattheendoftheyear 103000000 103000000

B.OTHEREQUITY

ReservesandSurplus

Particulars Capital Securities General SurplusinP&L Total

Reserve Premium Reserves

Reserve

Balanceat1stApril,2016 2965000 1186000 - 97505649 101656649

Add/(Less):

TotalComprehensiveIncome

foryear2016-17 - - - 6646897 6646897

Balanceat31stMarch,2017

asperIndAS 2965000 1186000 - 104152546 108303546

Add/(Less):

TotalComprehensiveIncome

foryear2017-18 - - - 6380384 6380384

TransfertoGeneralReserves - - 62935 - 62935

Balanceattheendofthe

reportingperiod

(31/03/2018) 2965000 1186000 62935 110532930 114746865

sd/-

sd/-

sd/-

sd/-

sd/-


NotesonFinancialStatementsfortheyearended31March2018

33

1 A.GeneralCorporateInformation DivyaJyotiIndustriesLimited(theCompany)isaPublicLimitedCompanyincorporatedundertheprovisionsof

CompanyAct,1956.ItssharesarelistedonBombayStockExchange(BSE)inIndia.ThecompanyisengagedinSolventExtraction&RefineryofSoyaOil.

1B. SignificantAccountingPolicies a.BasisofPreparationofFinancialStatements ThefinancialstatementshavebeenpreparedinaccordancewithIndianAccountingStandards(IndAs)notifiedunder

the Companies (Indian Accounting Standards) Rules,2015 and with Companies (Indian Accounting Standards)(Amendment)Rules,2016.

Forallperiodsuptoandincludingtheyearendedon31stMarch,2017,thegroupprepareditsfinancialstatementsinaccordancewithaccountingstandardsnotifiedundersection133oftheCompaniesAct,2013readwithparagraph7oftheCompanies(Accounts)Rules,2014(IndianGapp).ThesefinancialstatementsarethefirstthatthecompanyhaspreparedinaccordancewithIndAS.Thefinancialstatementshavebeenpreparedonthehistoricalcostbasis.

b.RevenueRecognition SaleofGoods Revenue from sale of goods is recognized when substantial risks and rewards of ownership in the goods are

transferredtothebuyerasperthetermsofthecontract. Salesarerecognizedatthetimeofdispatchofgoodsfromfactoryandarerecordedincludingexcisedutybutexclusive

ofsalestaxandtradediscountwhereverapplicable. OtherIncome Dividend:DividendIncomeisrecognizedwhentherighttoreceivedividendisestablished. Interest:InterestIncomeisrecognizedontimeproportionbasistakingintoaccounttheamountoutstandingandrate

applicable. c. ExciseDuty ExciseDutyisaccountedonthebasisofboth,paymentsmadeinrespectofgoodsclearedandalsoprovisionmadefor

goodslyingatfactory.SalesTax/ValueaddedTaxpaidischargedtoStatementofProfitandloss. d. Investments Investmentsareclassifiedintocurrentandnoncurrentinvestments.CurrentInvestmentsarestatedatcostorfair

market valuewhichever is lower computed categorywise.Noncurrent Investments, if any are stated at cost. Aprovisionfordimunition,ifanyismadetorecognizeadecline,otherthantemporary,andisreducedfromthecarryingamount.

e. Inventories InventoriesarestatedatlowerofcostorNetrealizablevalue.CostisdeterminedusingFIFOmethod.Thecostof

finishedgoodsandStockinProcesscomprisesRawmaterial,DirectMaterial,DirectLabour,otherdirectcostsandrelated production overhead upto the relevant stage of completion. By products and waste are valued at NetRealizable Value.Net Realizable value is the estimated selling price in the ordinary course of business, less theestimatedcostsnecessarytomakethesale.

f. BorrowingCosts Borrowingcoststhatareattributabletotheacquisitionorconstructionofqualifyingassetsarecapitalizedaspartof

thecostofsuchassets.Aqualifyingassetisonethattakessubstantialperiodoftimetogetreadyforintendeduse.Allotherborrowingcostsarechargedtorevenueintheperiodinwhichtheyareincurred.

g. TangibleFixedAssets 1TangibleFixedAssetsarecarriedatcostlessaccumulateddepreciationandimpairmentlosses,ifany.Thecostoffixed

assetscomprisesitspurchasepricenetofanytradediscountsandrebates,anyimportdutiesandothertaxes(otherthanthosesubsequentlyrecoverablefromthetaxauthorities),anydirectlyattributableexpenditureonmakingtheassetreadyforitsintendeduse,otherincidentalexpensesandinterestonborrowingsattributabletoacquisitionofqualifyingassetsuptothedatethefixedassetisreadyforitsintendeduse.Thefixedassetsarestatedathistoricalcostsandsubsequentexpenditurerelatedtoanitemoftangiblefixedassetareaddedtoitsbookvalueonlyiftheyincreasethefutureeconomicbenefitsfromtheexistingassetbeyonditspreviouslyassessedstandardofperformance.

2TangibleAssetsnotreadyforintendeduseasonthedateofBalanceSheetaredisclosedas“CapitalWorkinProgress.”

3Lossesand/orGainsarisingfromdisposaloftangibleassets,whicharecarriedatcost,arerecognizedintheStatementofProfitandLoss.



34

h. IntangibleFixedAssets

Intangibleassets,ifanyarestatedatcostofacquisitionlessaccumulatedamortization,ifanyandimpairmentlosses,ifany.

i. Depreciation.

Depreciation isprovidedbasedon theuseful lives assigned to eachasset in accordancewith Schedule II of theCompaniesAct,2013,withtheexceptionofassetsdepreciated,basedontechnicalevaluation.

Depreciationonassetsadded/disposedoffduringtheyearhasbeenprovidedonproratabasis.

Deferredtaxisthetaxeffectoftimingdifferencerepresentingthedifferencebetweentaxableincomeandaccountingincomethatoriginateinoneperiodandarecapableofreversalinoneormoresubsequentperiod(s).ThisismeasuredusingsubstantivelyenactedtaxrateandtaxregulationsasoftheBalanceSheetDate.

MinimumAlternateTax(MAT)isrecognizedasanasset inthebalancesheetwhenit isprobablethatthefutureeconomicbenefitassociatedwithitflowtothegroupandtheassetcanbemeasuredreliably.MATCreditentitlementifany,isutilizedaspertheprovisionsofIncomeTaxAct,1961.

k. ForeignCurrencyTransactions

Transactionsdenominated in foreigncurrenciesare recordedat theexchange rateprevailingon thedateof thetransactionsorthatapproximatetheactualrateatthedateoftransaction.AnyIncomeorexpensesonaccountofexchangedifferenceonsettlementisrecognizedintheprofitandlossaccount,ifitisrelatedtorevenueaccountandifrelatedtofixedassetsandliabilities,thesameisadjustedtotheacquisitioncostofsuchassetsanddepreciatedoveritsremainingusefullife.

l. EmployeeBenefits

DefinedContributionPlan:Company'scontributionspaid/payableduringtheyeartoprovidentfund,employeestateinsuranceschemearerecognizedduringtheperiodinwhichtheemployeerenderstherelatedservices.

DefinedBenefitplan:LiabilityinrespectofEmployees'GroupGratuityFundSchemearefundedbylifeInsuranceCorporationofIndia.

m.ImpairmentofAssets

AssessmentofImpairmentisdoneateachBalanceSheetdate.Wherevereventsorchangesincircumstancesindicatethecarryingcostofassetsexceedsitsrecoverablevalue,animpairmentlossischargedtoProfitandLossAccountintheyearinwhichanassetisidentifiedasimpaired.

j. Taxation

TaxesonIncomeareaccountedinaccordancewithIndAS–12“TaxesonIncome”.TaxesonIncomecomprisebothcurrenttaxanddeferredtax.ProvisionforcurrenttaxismadeaftertakingintoconsiderationbenefitsadmissibleundertheprovisionoftheIncomeTaxAct,1961,Advancetaxandprovisionforcurrentincometaxarepresentedinthebalancesheetafteroff-settingadvancetaxpaidandincometaxprovision.TaxexpensesfortheperiodcomprisingofCurrentTaxandDeferredTax

Type of Assets

Factory Building

Office Building

Plant and Machinery

Furntiure & Fixtures

Vehicles

Computers & Printers (except

Servers)

Servers

Office Equipments

Laboratory Equipments

Useful lives estimated by the Management(Years)

30

60

20

10

8

3

6

5

10



35

n.Provisions,ContingentLiabilitiesandContingentAssets

Provisions:Provisions involving degree of estimation inmeasurement are recognizedwhen there is a present

obligationasaresultofpastresultsanditisprobablethattherewillbeanoutflowofresources.

Contingentliabilities:Contingentliabilitiesaredisclosed,unlessthepossibilityofanoutflowofresourceembodying

theeconomicbenefitisremote.

ContingentAssets:Contingentassetsareneitherrecognizednordisclosedinthefinancialstatements.

Provisions,contingentliabilitiesandcontingentassetsarereviewedateachbalancesheetdate.

o. CashandCashEquivalents

CashandCashEquivalentsforthepurposeofCashFlowStatementscomprisescashatbankandcashinhandand

balancesindepositaccountswithbankshavingoriginalmaturitiesof12monthsorless.

p. Earningspershare

ThecompanyreportsthebasicanddilutedearningspershareinaccordancewithIndAS-33-“Earningpershare”.

BasicEarningperequityshareiscomputedbydividingthenetprofitaftertaxationbyweightedaveragenumberof

equitysharesoutstandingduringtheyear,adjustedforeventssuchasbonussharesandanyotherconversionof

equityshare.Thecompanydoesnothaveanydilutedequityshareshencebasicanddilutedearningspershareare

same.


NotesonFinancialStatements

fortheyearended31M

arch2018

Note2Property,Plant&Equipment

Note2Pro

perty,Plant&Equ

ipmen

t

36




Asat31stMarch,2017

Asat31stMarch,2018

37

Note-3Non-CurrentInvestments

InvestmentsinShares-Unquoted

a) 2,500(2500)EquitySharesofRs.10(10)each

fullypaidupinSaraswatCo-opBankLtd. 25000 25000 25000

b) 300(300)EquitySharesofRs.10(10)each

fullypaidupinShreeCo-OpBankLtd. 3000 3000 3000

c) 100(100)EquitySharesofRs.10(10)each

fullypaidupinNationalBoardofTrade 1000 1000 1000

Total 29000 29000 29000

Aggregateamountofunquotedinvestments 29000 29000 29000

Note-4OtherNon-CurrentFinancialAssets

BankFDRs(Maturityformorethan12months) 234734 264734 264734

Total 234734 264734 264734

Note-5OtherNon-CurrentAssets

(a) SecurityDeposits 4597610 4085303 4838034

(b) Advancetax(IncludingRefundsReceivable) 24838939 23967838 20076343

Total 29436549 28053141 24914377

Note-6Inventories

(a) RawMaterials

SoyaSeed 4802297 999790 211734

SoyaCrudeDegummedOil 0 4465338 3409923

Hexane 3951119 3124983 3304907

Coal 2408034 3381332 471014

Diesel 1348121 1154341 936380

GunnyBags 206343 216041 533477

PPBags 512775 331315 352982

Total 13228689 13673140 9220417

(b) Stock-in-Progress

SoyaSolventOil 229148 80280 3307817

Total 229148 80280 3307817

(c) FinishedGoods(otherthanthoseacquiredfortrading)

SoyaSolventOil 50999312 23913053 2548252

SoyaDOC 662012 703395 4587630

SoyaRefinedOil 33267850 26921454 29158562

AcidOil 539908 1382896 146921

Lecithin 1647271 2468818 1474741

FattyAcid 569465 295203 396201

Fly-Ash 12246 9132 9716

Total 87698064 55693951 38322024




Asat31stMarch,2017

Asat31stMarch,2018

38

(d) Stock-in-Trade(acquiredfortrading) SoyaDOC 0 292285 1916785 Total 0 292285 1916785 (e) StoresandSpares 6866887 7601859 7699359 Total 6866887 7601859 7699359 GrossTotal 108022788 77341515 60466402 Note-7TradeReceivables (a) UnsecuredandConsideredGood 469969298 458908585 371371502 Total 469969298 458908585 371371502 Note-8CashandCashEquivalents (a) Cashonhand 696955 3139613 3433777(b) BalanceswithBanksIncurrentaccounts 101710 106672 116280 Total 798665 3246285 3550057 Note-9BankBalancesotherthanCash&CashEquivalents (a) BalancesinBankDepositAccounts 1.Maturityformorethan12months 234734 264734 264734 2.Maturityformorethan3monthsbutlessthan12months2016243 1941231 1638369 3.MarginMoneyDeposit 1381214 4775278 4672456 Total 3632191 6981243 6575559 Less:AmountDisclosedunderNonCurrentFinancialAssets (234734) (264734) (264734) Total 3397457 6716509 6310825 9.1 MarginMoneyDepositsgivenasunder: MarginMoneyDepositswithacarryingamountofRs.13,81,214/-(31March2017:Rs.47,75,278/-)aresubjectto firstchargetosecurethecompany'sLCLimit. Note-10OtherCurrentFinancialAssets (a) Interestaccruedondeposits 189979 132730 149232 Total 189979 132730 149232 Note-11OtherCurrentAssets (a) LoansandAdvancestoEmployees 615850 714651 682923(b) PrepaidExpenses 685218 1270027 983342(c) BalanceswithGovernmentAuthorities 5117316 1448518 1482900(d) AdvancestoSuppliers 3627291 10380235 27549642(e) InsuranceClaimsReceivables 147000 147000 160942(f) OtherAdvances 7706844 8424474 7879417 Total 17899520 22384905 38739166 BalanceswithGovernmentAuthoritiesincludeMATCreditEntitlement,TEDEDBenefit,DutyCredit,DutyDrawbackReceivable,GSTInputCreditandTDS.



Particular

Particular

Note

Note

Asat1stApril,2016

Asat1stApril,2016

Asat31stMarch,2017

Asat31stMarch,2017

Asat31stMarch,2018

Asat31stMarch,2018

39

Note-12ShareCapital

(a) AuthorisedShareCapital:

1,05,00,000(1,05,00,000)EquitysharesofRs.10(10)each 105000000 105000000 105000000

Total 105000000 105000000 105000000

(b) Issued,subscribedandfullypaidup:

1,03,00,000(1,03,00,000)EquitysharesofRs.10(10)each 103000000 103000000 103000000

Total 103000000 103000000 103000000

12.1TheCompanyhasonlyoneclassofsharesreferredtoasequitySharehavingafacevalueofRs.10Each.HolderofEquity

Shareisentitledtoonevotepershare.

12.2Reconciliationofthenumberofsharesandamountoutstandingatthebeginningandattheendofthereportingperiod:

Particulars Numberof Numberof Numberof

Shares Shares Shares

(a) EquitySharesatthebeginningoftheyear 10300000 10300000 10300000

Add:Sharesissuedduringtheyear 0 0 0

Less:SharescancelledonbuybackofEquityShares 0 0 0

(b) EquitySharesattheendoftheyear 10300000 10300000 10300000

12.3NoBonusshareshavebeenissuedduringfiveyearsimmediatelypreceeding31stMarch,2018.

Note-13OtherEquity

(a) CapitalReserve 2965000 2965000 2965000

(b) SecuritiesPremiumReserve 1186000 1186000 1186000

(c) GeneralReserve 62935 0 0

(d) SurplusinStatementofProfitandLoss

OpeningBalance 104152546 97505649 92533861

Add:Profitfortheyear 6380,389 6646897 4971788

ClosingBalance 110532930 104152546 97505649

Total 114746865 108303546 101656649

Note-14Non-CurrentBorrowings

(a) Secured:

VehicleLoanfromSaraswatCo-operativeBankLtd. 229350 499163 741141

Total(a) 229350 499163 741141

(b) Unsecured:

InterCorporateDeposits 70446491 59047445 49101153

Total(b) 70446491 59047445 49101153

Total 70675841 59546608 49842294




Asat31stMarch,2017

Asat31stMarch,2018

40

14.1 VehicleLoansfromSaraswatCo-OpBankLtdistakenduringthefinancialyear2013-14.TheLoanisrepayablein

60monthlyinstallments.TheloanissecuredbyhypothecationchargeonVehicle.Further,loanhasbeenguarateedby

thepersonalguaranteeofMr.GirdhariNyati,WholeTimeDirectorandMr.GopalNyati,ExecutiveDirector.

Note-15DeferredTaxLiabilities(Net)

OpeningDeferredTaxLiability 25762079 25991088 25833190

Add:DeferredTaxLiabilityprovidedduringtheyear 0 0 157898

Less:DeferredTaxExpensesprovidedduringtheyear 650121 229009 0

Total 25111958 25762079 25991088

Note-16OtherNon-CurrentLiabilities

GratuityPayable 1116670 555118 612352

Total 1116670 555118 612352

Note-17CurrentBorrowings(Secured)

WorkingCapitalLoansFromBanks 336337587 332645377 315475724

Total 336337587 332645377 315475724

17.1 DetailsofWorkingCapitalLoansfromBanks

(a) CashCredit:

DenaBank 104178403 90108555 92229910

OrientalBankofCommerce 112838216 88317507 86142578

SaraswatCo-operativeBankLtd. 92067385 89225604 88006201

TotalCashCreditLimit 309084004 267651666 266378689

(b) LetterofCreditLimit:

DenaBank 27253583 38994886 25149130

OrientalBankofCommerce 0 25998825 23947905

TotalLCs 27253583 64993711 49097035

TotalWorkingCapitalLimits-fromBanks 336337587 332645377 315475724

17.2 (a)"CashCredit,ExportPackingCreditandLetterofCreditaresecuredbyequitablemortgageoftitledeedonthe

company'simmovablepropertiesconsisitingofLeaseholdLand,Building,structure,erection,Plant&Machinery

situatedatPlotNo.M-19-39,IndustrialArea,Pithampur."

(b)HypothicationofCurrentAssetsofthecompanyincludingStockofRawMaterial,Stockinprocess,Stores,Spares,

BillsReceivables,BookDebtsandallothermovableassets.

(c)EquitableMortagageofLandandBuildingsituatedatDhamnod(Dist.-Dhar)admeasuring3831.87sq.mtrs.

belongingtoM/s.ShrinathPressingUdhyog(prop.RangnathNyatiHUF).

(d)CashCreditandExportPackingCreditLoansarerepayableondemand.Further,loanhasbeenguarateedbythe

personalguaranteeofMr.GirdhariNyati,WholeTimeDirectorandMr.GopalNyati,ExecutiveDirector.

Note-18TradePayables

CreditorsforSupplies 83276613 89494503 61680258

Total 83276613 89494503 61680258



Particular

Particular

Note

Note

Asat1stApril,2016


Asat31stMarch,2017


Asat31stMarch,2018

41

Note-19OtherCurrentLiabilities

(a) CreditorsforCapitalExpenditure 547996 560976 569751

(b) Advancesfromcustomers 13435453 1359480 529749

(c) OtherPayables

(i)StatutoryDues 3889309 5361159 3785863

(ii)OtherPayable-SundryCreditors 20852465 24080366 12265325

Total 38725223 31361981 17150688

Note-20Provisions

(a) ProvisionforBonus 757875 840096 870171

(b) Others

(i)ProvisionforTax(netofadvancetax) 3829002 2820458 870135

(ii)OtherProvisions 170339 1789624 114286

Total 4757216 5450178 1854592

Note- 21RevenuefromOperations (a)SaleofProducts 1209440360 1159267255 (b)OtherOperatingRevenues 5302975 5944456 Total 1214743335 1165211711 21.1 ParticularsofSaleofProducts (a)ManufacturedGoods SoyaDOC 509365560 337548125 SoyaRefinedOil 654263290 709540431 AcidOil 5549375 4736673 Lecithin 5293481 13832491 FattyAcid 5176520 4063461 SoyaOilSludge - 764228 SoyaSolventOil 12390342 - Total 1192038568 1070485410 (b)DirectExport Lecithin 17401792 4452668 Total 17401792 4452668 (c)TradedGoods SoyaDOC - 84329178 Total - 84329178 GrossTotal 1209440360 115926725521.2 ParticularsofOtherOperatingRevenues (a)SaleofScraps 3305989 1932680 (b)JobWorkCharges 1753076 3265084 (c)DutydrawbackandotherExportIncentives 243910 746692 Total 5302975 5944456



Particular Note Fortheyearended31stMarch,2017


42

Note- 22OtherIncome (a)InterestIncome 537199 651034 (b)DividendIncome 7500 3750 (c)Gainonforeigncurrencytransactions 57895 - (d)OtherNon-OperatingIncome 440184 1483434 Total 1042778 213821822.1 ParticularsofInterestIncome (a)InterestfromBankDeposits 400636 465002 (b)InterestfromOthers 136563 186032 Total 537199 65103422.2 ParticularsofOtherNonOperatingIncome (a)SundryBalancewrittenoff 52378 - (b)MiscellaneousIncome 387806 1483434 Total 440184 1483434Note- 23CostofMaterialsConsumed (a)OpeningStock 5465128 3621657 (b)Add:Purchases 1049767805 935356804 1055232933 938978461 (c)Less:ClosingStock 4802297 5465128 A.CostofMaterialConsumed 1050430635 933513333 MaterialConsumedcomprises: (a)SoyaBeenSeed 597918064 307714686 (b)SoyaSolventOil 234747187 307671830 (C)SoyaDegumOil 217765384 318126817 B.Total 1050430635 933513333Note- 24PurchaseofTradedGoods SoyaDOC 11337283 78744699 Total 11337283 78744699 Note- 25ChangesinInventoriesofFinishedGoods,Stock-in-Progress andStock-in-Trade (a)Inventoriesattheendoftheyear: FinishedGoods 87698064 55693952 Stock-in-Progress 229148 80280 Stock-in-Trade - 292285 Total 87927213 56066517 (b)Inventoriesatthebeginningoftheyear: FinishedGoods* 55620809 38322024 Stock-in-Process 80280 3307817 Stock-in-Trade 292285 1916785 Total 55993374 43546626 Net(Increase)/Decrease (31933839) (12519891) *GSTandExciseDuty:- 1 EffectiveJuly1,2017;SalesarerecordednetofGST,whereasearliersaleswererecordedasGrossofExciseDuty whichformpartofexpenses. 2 Inpreviousyear,unpaidexcisedutyamountingRs.73,142/-wasprovided,whichhasbeenreversedduringthe yearaffectingtheinventoriesatthebeginningoftheyear.


Asat1stApril,2016

Asat31stMarch,2017

Asat31stMarch,2018




43

Note- 26EmployeeBenefitsExpense (a)SalariesandWages 20474713 20875485 (b)ContributionstoProvidentandESICFunds 1939078 1938374 (c)GratuityExpenses 561553 -57234 (d)StaffWelfareExpenses 378692 449035 Total 23354036 23205660

26.1 DisclosureasrequiredunderIndAS19- EmployeeBenefitsaregivenbelow: (a) DefinedContributionsPlansContributiontoDefined Plans,recognizedasexpensefortheyearisasunder: Employer'sContributiontoProvidentFund 1359019 1376258 871906 Employer'sContributiontoEmployeesStateInsuranceCorporation 580059 562116 907565 Total 1939078 1938374 1779471(b) DefinedBenefitPlan TheemployeesgratuityfundschememanagedbyaTrust (LifeInsuranceCorporationofIndia)isadefinedbenefitplan. 1 ReconciliationofOpeningandClosingBalanceofDefinedBenefitObligation DefinedBenefitObligationatbeginningoftheyear 3697467 3215094 3126569 CurrentServiceCost 500078 406843 436257 InterestCost 295797 243044 235962 ActurialGain/(Loss) (39249) 90997 (158734) BenefitsPaid (253730) (81461) (424960) DefinedBenefitObligationattheendoftheyear 4200363 3874517 32150942 ReconciliationofOpeningandClosingBalancesof FairValueofPlanAssets FairValueofPlanAssetsatbeginningoftheyear 3142349 3021036 2757495 ExpectedReturnonPlanAssets 195073 202774 229024 Employers'Contribution - - 459477 BenefitsPaid (253730) (81461) (424960) ActurialGain/(Loss) - - - FairValueofPlanAssetsattheendoftheyear 3083693 3142349 30210363 ReconciliationofFairValueofAssetsandObligation FairValueofPlanAssets 3083693 3142349 3021036 PresentvalueofObligation 4200363 3697467 3038044 AmountRecognisedinBalanceSheet (1116670) (555118) (17008)4 ExpensesRecognisedDuringtheYear CurrentServiceCost 500078 406843 436257 InterestCost 295797 243044 235962 ExpectedReturnonPlanAssets (195073) (202774) (229025) Acturial(Gain)/Loss (39249) 90997 (158734) NetCost 561553 538110 2844605 ActuarialAssumptions Particulars % % % DiscountRate(perannum) 8 8 8 Expectedrateofreturnonplanassets 8 9 9 Rateofescalationinsalary(perannum) 7 7 7





44

Note: Theestimatesofrateofescalationinsalaryconsideredinactuarialvaluation,takeintoaccountinflation,seniority, promotionandotherrelevantfactorsincludingsupplyanddemandintheemploymentmarket. ThepresentvalueofobligationisdeterminedbasedonactuarialvaluationusingtheProjectedUnitCreditMethod.

Note- 27FinanceCosts

(a)InterestExpenseon

(i)Borrowings 39106707 41700023

(ii)Others 1170365 399162

(b)Otherborrowingcosts(BankCharges) 2539384 3207738

Total 42816456 45306923

Note- 28Depreciation

DepreciationandAmortisationfortheyear 12259285 12458519

Total 12259285 12458519

Note- 29OtherExpenses

(a)ManufacturingExpenses:

ConsumptionofPackingMaterials 3022304 2448958

ConsumptionofHaxene 4864161 2665210

RefineryOperatingExpenses 9816597 11491900

LaboratoryExpenses 61822 35497

Increase/(Decrease)ofexcisedutyoninventory - 444433

Power,FuelandElectricalExpenses 44607864 35954712

WaterCharges 2174243 2194076

FreightInward 46510 61797

LeaseRent 54670 122951

RepairsandMaintenance-Buildings 460691 566401

RepairsandMaintenance-Plant&Machinery 3048780 3380788

BrokerageInward 479505 924834

Insurance 335002 419941

SecurityExpenses 1391901 1130169

LicensesFeesExpenses 227083 391214

RatesandTaxes 280630 315187

Total 70871761 62548067

(b)Office&AdministrationExpenses:

CommunicationExpenses 545384 766439

TravellingandConveyance 982474 901991

RepairsandMaintenance-Others 213328 193790

PrintingandStationery 121252 331201

Donationsandcontributions 58200 86900

Rent 1065600 770100

LegalandProfessionalCharges 1109123 937333

PaymentstoAuditors 87500 109250

ElectricalExpenses(HO) 369188 243705

LossonFixedAssetsSold 1702 105285





45

PriorPeriodItems(net) 857736 11381 OtherExpenses 350913 195490 NewsPaper&Periodical 7809 7854 ListingFees 288336 229000 Lossonforeigncurrencytransactions - 72200 SundryBalancewrittenoff - 103884 MembershipFees 303713 344702 Total 6362259 5410504 (c)SellingandDistributionExpenses: BusinessPromotion 58107 92907 DiscountonExportLicense 46308 15792 AdvertisementandPublicity 94924 79319 Clearing&Forwarding 346467 631168 FreightOutward 18812321 4586362 BrokerageOutward 532843 552173 Testing&Analysisfees 165462 106056 VATandServiceTax 155993 1259397 Total 20212425 7323174 GrandTotal 97446446 7528174629.1 PaymenttoAuditors (a)StatutoryAuditFees 55000 55000 (b)TaxAuditFees 10000 10000 (c)LimitedReviewFees 22500 30000 (d)Reimbursementofexpenses - 14250 Total 87500 10925029.2 PriorPeriodItem (a)IncomeTaxrelatedtoLastYears 597899 - (b)ShortProvisionofIncomeTaxofLastYear 250674 - (c)OtherExpensesrelatedtoLastYear 9162 11381 Total 857736 11381Note- 30EarningPerShare(EPS) (a)NetProfitAfterTax(Rs..) 6380384 6646897 (b)WeightedAverageNumberofEquityShareusedasdenomination 10300000 10300000 (c)BasicandDilutedEarningPerShare(Rs.) 0.62 0.65 (d)FaceValuePerEquityShare(Rs.) 10.00 10.00

Note-31Commitments&ContingentLiabilities: (a)BankGuaranteeissuedbyBanksonbehalfofthecompany 8,00,000 8,00,000 (b)Disputedtaxdemandpendingonappeal(Netofpre-deposit) (i)CentralSalesTax 81988429 81988429 (ii)CommercialTax 8,89,854 8,89,854 (iii)EntryTax 3,75,11,604 3,75,11,604 (xi)VAT 52,44,482 52,44,482 Note-32EarningInForeignCurrency FOBValueofExports 16260720 4344914



46

Asat31stMarch,2018

Asat31stMarch,2017

Note-33RelatedPartyDisclosures (a)ListofRelatedParty Mr.GirdhariNyati : Director Mr.GopalNyati : Director Mr.AniruddhaNyati : ChiefOperatingOfficer ChhatraChayaNirmanPvt.Ltd. ShreeNyati&Sons (b)RelatedPartyTransactions-Remuneration Mr.GirdhariNyati 2,40,000 2,40,000 Mr.GopalNyati 8,40,000 8,40,000 Mr.AniruddhaNyati 6,00,000 6,00,000 OtherTransactions Mr.GopalNyati(Loanreceived) 5500000 - ChhatraChayaNirmanPvt.Ltd.(Loanreceived) 5000000 - ChhatraChayaNirmanPvt.Ltd.(InterestonLoanpaid) 70274 - ShreeNyati&Sons(Expenses) 652700 - Note-34 TheCompanyisoperatingonlyinonesegment,hencenosegmentwisedisclosureasperIndAS-108 isprovided. Note-35 SupplierswhoarecoveredunderMSMEDAct.2006havebeenidentifiedtotheextentofinformationavailable withthecompany.TheprincipalBalanceduetoMicroandSmallEnterprisesasat31stMarch2018isRs.Nil(31st March2017isRs.Nil).FurthernointeresthasbeenpaidorispayableundertheAct. Note-36 Previousyear’sfigureshavebeenregrouped/reclassifiedwherevernecessarytocorrespondwiththecurrent year’sclassification/disclosure.

Particular

sd/-

sd/-

sd/-

sd/-

sd/-


Signatureofmember


RegisteredFolioNo./DPIDNo./ClientIDNo.:NameandAddressoftheMember :Name(s)oftheJointHolder(s)ifany :No.ofsharesheld :FullnameofProxy(INBLOCKLETTERS) :IherebyrecordmypresenceattheTWENTYSIXTHANNUALGENERALMEETINGoftheCompanyheldonSaturdaythe

th29 September,2018at11:30AM.atRegisteredOfficeofthecompanyat19-39,SectorIII,IndustrialArea,Pithampur-454775DistrictDhar(M.P.)

" " "

ROUTEMAP

DIVYA JYOTI INDUSTRIES LIMITED REPORT 2017- 2018.pdf · Annual Report-2017-18 01 NOTICE Notice is...

Documents

Transcript of DIVYA JYOTI INDUSTRIES LIMITED REPORT 2017- 2018.pdf · Annual Report-2017-18 01 NOTICE Notice is...