grandeur products limited - bombay stock exchangegrandeur products limited annual report 2015-16...

Grandeur products limitedAnnual Report

2015 - 2016

2

Grandeur products limited Annual Report 2015-16

S. No Contents Page No

1 Company Information 03

2 Notice 04

3 Directors Report 10

4 Annexures to Directors Report 15

5 Auditors Report 31

6 Balance Sheet 37

7 Profit&LossAccount 38

8 CashFlowStatement 39

9 NotesonAccounts 40

10 Attendance Slip 46

11 Proxy 48

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Board of Directors DesignationVijayKumarDeekonda WholeTimeDirectorandCFOPoppoppuLeninBabu IndependentDirectorMajeti Venkatasesha Sridhar Kumar Independent DirectorMunnangi Jayaramaprasad Non Executive Director Jonnada Vaghira Kumari Independent Director (up to 31.05.2016)SrideviDasari Independent Director (from 31.05.2016)

BOARD COMMITTEESAudit Committee DesignationPoppoppuLeninBabu ChairmanSrideviDasari MemberMunnangiJayaramaprasad Member

Stakeholders Relationship Committee DesignationMajeti Venkatasesha Sridhar Kumar ChairmanMunnangiJayaramaprasad MemberPoppoppuLeninBabu Member

Nomination and Remuneration Committee DesignationPoppoppuLeninBabu Chairman

MunnangiJayaramaprasad MemberMajetiVenkataseshaSridharKumar Member

Company Information

Registered Office:CIN: L15500TG1983PLC110115

10-2-9&10-2-249,FlatNo703,6thFloor,NasrApartments,ACGuardsHyderabadHyderabad,Telangana-500004Phone: 040-66513251Email: [email protected]

Corporate Office:FlatNo.103,FirstFloor,7-1-24/2/D,Greendale,Ameerpet,Hyderabad-500016 Bankers:AxisBankLtdUnit-1GroundFloorH.No.8-2-273/276&277,RoadNo.2,BanjaraHillsHyderabad–500034.Ph.No.040–23553077

Company Secretary & Compliance OfficerPriyanka Kumari

Auditors: M/s.RamasamyKoteswaraRao&Co.,Chartered Accountants PlotNo238/A,MLA’sColony,RoadNo12,BanjaraHills,Hyderabad-034

Internal Auditors:M/sSVP&Co.,CharteredAccountantFlatNo.G-2(102)atH.No.6-3-1104,PriyaApartments,Somajiguda,Hyderabad-500082.

Secretarial Auditors:M/s.P.S.Rao&Associates,CompanySecretaries,FlatNo.10,4thFloor,D.No.6-3-347/22/2IshwaryaNilayam,Opp:SaiBabaTemple,DwarakapuriColony,Punjagutta,Hyderabad–500082,T.S.,India

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NOTICE

Noticeisherebygiventhatthe33rdAnnualGeneralMeetingoftheMembersofGRANDEURPRODUCTSLIMITEDwillbeheldonFriday,the30thdayofSeptember2016at11.00AMatregisteredofficeoftheCom-panyRegisteredOffice:10-2-9&10-2-249,FlatNo703,6thFloor,NasrApartments,ACGuards,Hyderabad500004totransactthefollowingbusiness:

ORDINARY BUSINESS:

Item No. 1- Adoption of Financial Statements

ToconsiderandadopttheAuditedFinancialStatementsoftheCompanyfortheFinancialYearendedMarch31,2016andthereportsoftheBoardofDirectorsandAuditorsthereon.

Item No. 2-ToappointaDirectorinplaceofMr.MunnangiJayaramaprasad(DIN:03034183)whoretiresbyrotationandbeingeligibleoffershimselfforre-appointment.

Item No. 3 – Ratification of Appointment of Auditors

ToratifytheappointmentofStatutoryAuditorandfixtheirremuneration,bypassingthefollowingresolutionwithorwithoutmodification(s)asanOrdinaryResolution

“RESOLVEDTHATpursuanttotheprovisionsofSections139,142andotherapplicableprovisions, ifany,oftheCompaniesAct,2013andtheCompanies(Audit&Auditors)Rules,2014,includinganyamendment,modification,orvariationthereof,andpursuanttotherecommendationofauditcommittee,andpursuanttotheresolutionpassedbytheMembersattheAnnualGeneralMeetingheldon19thJune2014,theappointmentofM/s.RamasamyKoteswaraRao&Co,CharteredAccountants,(RegistrationNo.010396S)asstatutoryaudi-torsofthecompanytoholdofficefromtheconclusionofthisAnnualGeneralMeetingtilltheconclusionofnextAnnualGeneralMeetingoftheCompanytobeheldinCalendarYear2019beandisherebyratifiedonsuchremunerationasmaybeagreeduponbytheBoardofDirectorsandtheAuditors,inadditiontoreimbursementofalloutofpocketexpensesinconnectionwiththeauditoftheaccountsoftheCompanyforthefinancialyearendingMarch31,2017.”

Special business

Item no. 4-Appointment of Mrs. Sridevi Dasari (DIN 07512095) as an Independent Director Toconsiderand,ifthoughtfit,topass,withorwithoutmodification(s),thefollowingResolutionasanOrdinaryResolution:

“RESOLVED THATpursuanttotheprovisionsofSections149,150and152anyotherapplicableprovisionsof theCompaniesAct,2013(“Act”)andtheRulesmadethereunderreadwithScheduleIVtotheAct,(in-cludinganystatutorymodification(s)orre-enactmentthereofforthetimebeinginforce),Mrs.SrideviDasari(DIN07512095),whowasappointedasanAdditional(Independent)DirectoroftheCompanybytheBoardofDirectorsatitsmeetingheldonMay31,2016andwhosetermofofficeexpiresatthisAnnualGeneralMeeting(‘AGM’)andinrespectofwhomtheCompanyhasreceivedaNoticeinwritingfromaMemberalongwiththedepositoftherequisiteamountunderSection160oftheCompaniesAct,2013proposinghiscandidaturefortheofficeofDirectorandwhohassubmittedadeclarationthatshemeetsthecriteriafor independenceasprovidedinSection149(6)oftheAct,beandisherebyappointedasanIndependentDirectoroftheCompanytoholdofficeforatermof5(five)consecutiveyearscommencingfromMay31,2016.”

ForandonbehalfoftheBoard ForGrandeur Products Limited

Priyanka Kumari Company SecretaryPlace:HyderabadDate:12thAugust,2016

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NOTES:

1. AMEMBERENTITLEDTOATTENDANDVOTEATTHEMEETING ISENTITLEDTOAPPOINTAPROXYTOATTENDANDVOTEINSTEADOFHIMSELF/HERSELFONAPOLLANDSUCHPROXYNEEDNOTBEAMEMBEROFTHECOMPANY.

2. Proxies,inordertobeeffective,mustbereceivedattheCorporateOfficeoftheCompanynotlessthanforty-eighthoursbeforethescheduledtimeofcommencementofthemeeting.

3. TheregisterofmembersandShareTransferBooksoftheCompanywillremainclosedduringtheperiodfrom 23.09.2016 to 30.09.2016 (bothdaysinclusive).

4. M/s.VentureCapitalandCorporateInvestmentsPvt.Ltd.,12-10-167,BharatNagar,Hyderabad-500018is the Share Transfer Agent (STA) of the Company. All communications in respect of share transfers and changeintheaddressofthemembersmaybecommunicatedtothem.

5. Membersseekinganyinformationorclarificationontheaccountsarerequestedtosendqueriesinwrit-ingtotheRegisteredOfficeoftheCompany,atleastoneweekbeforethedateofthemeeting.Replieswillbeprovidedinrespectofsuchwrittenqueriesatthemeeting.

6. Members/ProxiesarerequestedtobringtheircopiesoftheAnnualReporttotheAGMandtheAttend-anceslipdulyfilledinforattendingAGM.CopiesofAnnualReportwillnotbeprovidedattheAGM.

7. MembersholdingsharesinidenticalorderofnamesinmorethanonefolioarerequestedtowritetotheCompany’sRegistrarandTransferAgentenclosingtheirsharecertificatestoenableconsolidationoftheir shareholdings in one folio.

8. MembersholdingSharesinphysicalformmaywritetotheRegistrar&ShareTransferAgents(RTA)foranychangeintheiraddressandbankmandates;membershavingsharesinelectronicformmayinformthe same to their depository participants immediately.

9. Aspartofthe“Green Initiative”,theNoticeofAGM,AnnualReportandAttendanceSliparebeingsentinelectronicmodetomemberswhosee-mailIDsareregisteredwiththeCompanyortheDepositoryParticipantsunlessthemembershaveregisteredtheirrequestforahardcopyofthesame.

10. Processandmannerformembersoptingfore-votingareasunder:

TheCompanyisofferinge-votingfacilitytoitsmembersenablingthemtocasttheirvoteselectronically.TheCompanyhassignedanagreementwithM/sCentralDepositoryServices(India)Limited(CDSL)forfacilitatinge-votingtoenabletheshareholderstocasttheirvoteselectronicallypursuanttoRule20ofCompanies(Man-agementandAdministration)Rules,2014.Theinstructionsfore-votingareasunder:

(i) Thevotingperiodbeginson27thSeptember, 2016 at 9.00 A.M. and ends on 29th September, 2016 at 5.00 P.M.Duringthisperiodshareholders’oftheCompany,holdingshareseitherinphys-icalformorindematerializedform,asonthecut-offdateof25thSeptember,2016,maycasttheirvoteelectronically.Thee-votingmoduleshallbedisabledbyCDSLforvotingthereafter.

(ii) Theshareholdersshouldlogontothee-votingwebsitewww.evotingindia.comduringthevotingperiod.

(iii) Clickon“Shareholders”tab.

(iv) Now,selectthe“GrandeurProductsLimited”fromthedropdownmenuandclickon“SUBMIT”

(v) NowEnteryourUserID

a. ForCDSL:16digitsbeneficiaryID,

b. ForNSDL:8CharacterDPIDfollowedby8DigitsClientID,

c. Membersholdingshares inPhysicalFormshouldenterFolioNumber registeredwith theCompany.

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(vi) NextentertheImageVerificationasdisplayedandClickonLogin.

(vii) Ifyouareholdingsharesindematformandhadloggedontowww.evotingindia.comandvotedonanearliervotingofanycompany,thenyourexistingpasswordistobeused.

(viii) Ifyouareafirsttimeuserfollowthestepsgivenbelow:

For Members holding shares in Demat Form and Physical Form

PAN Enteryour10digitalpha-numericPANissuedbyIncomeTaxDepartmentwhenpromptedbythesystemwhilee-voting(applicableforbothdematshareholdersaswellasphysicalshareholders)

1. MemberswhohavenotupdatedtheirPANwiththeCompany/DepositoryParticipantarerequestedtousethefirsttwolettersoftheirnameandthe8digitsofthefolionumberinthePANfield

2. Incasethefolionumberislessthan8digitsentertheapplicablenumberof0’sbeforethenumberafterthefirsttwocharactersofthenameinCAPITALLetters.Eg.IfyournameisRameshKumarwithSequencenumber1thenenterRA00000001inthePANfield

DOB# EntertheDateofBirthasrecordedinyourdemataccountorinthecompanyrecordsforthesaiddemat account or folio in dd/mm/yyyy format.

Enter the Dividend Bank Details as recorded in your demat account or in the company records for the said demat account or folio.

(ix) Afterenteringthesedetailsappropriately,clickon“SUBMIT”tab.

(x) MembersholdingsharesinphysicalformwillthendirectlyreachtheCompanyselectionscreen.However members holding shares in demat form will now reach ‘Password Creation’ menuwherein theyarerequire tomandatorilyenter their loginpassword in thenewpasswordfield.Kindlynotethatthispasswordistobealsousedbythedematholdersforvotingforresolutionsofanyothercompanyonwhichtheyareeligibletovote,providedthatcompanyoptsfore-votingthroughCDSLplatform.Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.

(xi) ForMembersholdingsharesinphysicalform,thedetailscanbeusedonlyfore-votingontheresolution contained in this Notice.

(xii) Click on the EVSN for the relevant <Grandeur Products Limited>onwhichyouchoosetovote.

(xiii) Onthevotingpage,youwillsee“RESOLUTIONDESCRIPTION”andagainstthesametheop-tion“YES/NO”forvoting.SelecttheoptionYESorNOasdesired.TheoptionYESimpliesthatyouassenttotheResolutionandoptionNOimpliesthatyoudissenttotheResolution.

(xiv) Clickonthe“RESOLUTIONSFILELINK”ifyouwishtoviewtheentireResolutiondetails.

(xv) Afterselectingtheresolutionyouhavedecidedtovoteon,clickon“SUBMIT”.Aconfirmationboxwillbedisplayed.Ifyouwishtoconfirmyourvote,clickon“OK”,elsetochangeyourvote,clickon“CANCEL”andaccordinglymodifyyourvote.

(xvi) Onceyou“CONFIRM”yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.

(xvii) Youcanalsotakeoutprintofthevotingdonebyyoubyclickingon“Clickheretoprint”optiononthe Voting page.

(xviii) IfDemataccountholderhasforgottenthepasswordthenentertheUserIDandtheimageverifi-cationcodeandclickonForgotPassword&enterthedetailsaspromptedbythesystem.

(xix) Note for Institutional Shareholders

DividendBank Details#

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1. Institutionalshareholders(i.e.otherthanIndividuals,HUF,NRIetc.)arerequiredtologontohttps://www.evotingindia.co.inandregisterthemselvesasCorporate.

2. AscannedcopyoftheRegistrationFormbearingthestampandsignoftheentityshouldbeemailedtohelpdesk.evoting@cdslindia.com

3. Afterreceivingthelogindetailstheyhavetocreateacomplianceuserwhichshouldbecreatedusingtheadminloginandpassword.TheComplianceuserwouldbeabletolinktheaccount(s)forwhichtheywishtovoteon.

4. Thelistofaccountsshouldbemailedtohelpdesk.evoting@cdslindia.comandonapprovaloftheac-countstheywouldbeabletocasttheirvote.

5. AscannedcopyoftheBoardResolutionandPowerofAttorney(POA)whichtheyhaveissuedinfavouroftheCustodian,ifany,shouldbeuploadedinPDFformatinthesystemforthescrutinizertoverifythesame.

(xx) Incaseyouhaveanyqueriesorissuesregardinge-voting,youmayrefertheFrequentlyAskedQues-tions(“FAQs”)ande-votingmanualavailableatwww.evotingindia.co.inunderhelpsectionorwriteanemail to [email protected].

11. Kindlynotethat theshareholderscanoptonlyonemodeofvoting i.e.eitherbye-votingorphysicalmode.Ifyouareoptingfore-voting,thendonotvotebyphysicallyalsoandviceversa.However,incaseshareholderscasttheirvotephysicallyande-voting,thenvotingdonethroughe-votingwillprevailandvotingdonephysicallywillbetreatedasinvalid.

12. TheBoardofDirectorshaveappointedMrs.N.Vanitha,aPracticingCompanySecretary(CPNo.10573)asaScrutinizertoprocessthee-votingandsubmitareporttotheChairman.

13. Priyanka Kumari, CompanySecretaryandComplianceOfficerof theCompanywilladdressall thegrievancesinrelationtothisannualgeneralmeetingincludinge-voting.HercontactdetailsareEmail:[email protected] Phone Nos. 040-66513251.

14. ThemembersmaydownloadacopyofthenoticeofthismeetingandtheresultsdeclaredalongwiththeScrutinizer’sReportfromthewebsiteoftheCompany(www.grandeurproducts.com)orfromwww.evotingindia.com.

15. BriefprofileofDirectorsseekingappointment/reappointmentatthe33rdannualgeneralmeeting(pur-suanttoRegulation36ofSEBI(LODR)Regulations2015isattachedtothisnoticeasAnnexure-A

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EXPLANATORY STATEMENT IN RESPECT OF THE SPECIAL BUSINESS PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013

Item No.4

Mrs.SrideviDasariwasappointedasanAdditionalDirectoroftheCompanywitheffectfrom31stMay,2016.IntermsoftheprovisionofSection161oftheAct,sheholdsofficetillthedateoftheensuingAGMandiseligiblefor re-appointment.

Mrs.SrideviDasariisqualifiedCompanySecretaryandhasover4yearsworkingexperienceinSecretarialFinanceandadministrationDivision.

InaccordancewiththeprovisionsofSection149readwithScheduleIVtotheCompaniesAct,2013,appoint-mentofanIndependentDirectorrequiresapprovalofmembers.BasedontherecommendationoftheNom-inationandRemunerationCommittee,theBoardofDirectorshaveproposedthatMrs.SrideviDasari(DIN:07512095),beappointedasanIndependentDirectoroftheCompany.

TheappointmentofMrs.SrideviDasarishallbeeffectiveuponapprovalbythemembersintheMeetingTheCompanyhasreceivedanoticeinwritingfromamemberalongwiththedepositofrequisiteamountunderSection160oftheActproposingthecandidaturefortheofficeofDirectoroftheCompany.Mrs.SrideviDasariisnotdisqualifiedfrombeingappointedasaDirectorintermsofSection164oftheActandhasgivenhercon-sent to act as a Director. The Company has received a declaration from Mrs. Sridevi Dasari that she meets the criteriaofindependenceasprescribedbothundersub-section(6)ofSection149oftheActandunderlistingregulations.

ExceptMrs.SrideviDasaribeinganappointee,noneoftheDirectorsandKeyManagerialPersonneloftheCompanyandtheirrelativesisconcernedorinterested,financialorotherwise,intheresolutionsetoutatItemNo. 4.

ForandonbehalfoftheBoard ForGrandeur Products Limited

Priyanka Kumari Company SecretaryPlace:HyderabadDate:12thAugust,2016

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Details of Directors seeking appointment/re-appointment at the fourthcomingAnnual General Meeting

(Pursuant to regulation 36(3) of the SEBI Listing Regulations)

Name of Director Sridevi Dasari Munnangi Jayaramaprasad

DateofBirth 11.04.1982 03.12.1984Date of Appointment 31.05.2016 30.10.2015Qualifications CompanySecretary Engineering Graduatein Electronics and Instrumentation& Business Administration in Marketing

RelationshipbetweenDirectorsinter-se NIL NIL

Expertiseinspecificfunctionalarea Secretarial,Finance Business &Administration Administration

ListedentitiesinwhichDirectorshipsheld NIL NIL

MembershipsoftheCommitteesoftheBoard(includes only Audit Committee and StakeholdersRelationshipCommittee) NIL NIL

No.ofSharesheldintheCompany NIL 1089250

Annexure -A

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DIRECTORS’ REPORT

TotheShareholders,

YourDirectorshavepleasureinpresentingthe33rdAnnualReportofGrandeurProductsLimited(theCompany)togetherwiththeAuditedaccountsforthefinancialyearended31stMarch2016.

FINANCIAL RESULTS

Theperformanceofyourcompanyfortheyearunderreviewissummarizedbelow:

(` inLakhs)

Particulars 31.03.2016 31.3.2015

Grossrevenueandotherincome 1635.19 1696.32

Profitbeforetax 20.11 10.76

TaxExpense 8.57 5.11

ProfitafterTax 11.54 5.64

OPERATIONS:

Theperformanceof thecompanyshouldbeconsideredsatisfactory for2015-16.During thefinancialyear2015-16,turnoverstoodatRs.1635.19LakhscomparedtoRs.1696.32LakhsinthepreviousyearandprofitaftertaxstoodRs.11.54LakhscomparedtopreviousyearRs.5.64Lakhs.

DIVIDEND:

The Board of directors does not recommend any dividend for the year as at 31st March 2016.

LISTING OF EQUITY SHARES:

DuringtheyearunderreviewsecuritiesofthecompanygotlistedonBSELimitedon21stJuly,2015.

INFUSION OF CAPITAL:

Duringtheyearunderreviewcompanyhasissued54,60,000sharesonpreferentialbasistopromotersandnon-promoters group.

ThePaid-upEquityShareCapitalason31stMarch,2016wasRs.10.00Crorescomprisingof1,00,00,000Shares of Rs 10 each.

STATUTORY AUDITORS:

The shareholders in their meeting held on 19thJune 2014 approved the appointment of M/s RamasamyKoteswaraRao&Co,CharteredAccountants,(FirmRegistrationNumber010396S)astheStatutoryAuditorsof theCompany to hold office till the conclusion of 36thAnnualGeneralMeeting subject to ratification ofshareholders in everyAnnualGeneralMeeting.Accordingly, a resolution seekingMembers’ ratification onappointmentofM/sRamasamyKoteswaraRao&Co,astheStatutoryAuditorsoftheCompanyforthefinancialyear2016-17isincludedatItemNo.3oftheNoticeconveningtheAnnualGeneralMeeting.

TheAuditReportissuedbytheStatutoryAuditorsforthefinancialyearended31stMarch,2016formspartofthisReport.Therearenoqualifications,reservationsoradverseremarksmadebytheStatutoryAuditorswhichrequires explanation or comments from the Board.

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SECRETARIAL AUDIT:

PursuanttotheprovisionsofSection204oftheCompaniesAct,2013andtherulesmadethereunder,theCompany had appointed M/s P.S. Rao &Associates, Practicing Company Secretaries, to undertake theSecretarialAuditoftheCompanyfortheyearended31stMarch,2016.TheSecretarialAuditReportissuedinthis regard is annexed as Annexure A.

TheAuditors’ReportandtheSecretarialAuditReportfortheFinancialYearended31stMarch,2016donotcontainanyqualification,reservation,adverseremarkordisclaimer.

Directors & Key Managerial Personnel

Mrs. SrideviDasari (DIN 07512095)was appointed as anAdditionalDirector of theCompanywho holdsoffice till the ensuingAnnual GeneralMeeting. The Board, based on the recommendation of Nominationand Remuneration Committee considered the appointment ofMrs. Sridevi Dasari (DIN 07512095) as anIndependent Director subject to approval of shareholders. Accordingly a resolution seeking approval ofshareholdersforhisappointmentasanIndependentDirectorforaperiodoffiveyearsisincludedatItemNo.4oftheNoticeconveningtheAnnualGeneralMeeting.

MunnangiJayaramaprasad(DIN:03034183),whoretiresbyrotationandbeingeligible,seeksre-appointment.

All the Independent Directors have given declarations stating that they meet the criteria of independence as laiddownunderSection149(6)oftheCompaniesAct,2013andSEBIListingRegulations.IntheopinionoftheBoard,theyfulfilltheconditionsofindependenceasspecifiedintheActandRulesmadethereunderandare independent of the Management.

DuringtheyearunderreviewVijayKumarDeekondawhoiswholetimedirectoroftheCompanyappointedasChiefFinancialOfficeroftheCompanyw.e.f30thOctober,2015.

DuringtheyearunderreviewMs.SujaniVassireddiresignedfromtheservicesoftheCompanyandPriyankaKumariappointedasCompanySecretaryoftheCompanyw.e.f23rdNovember,2015.

Subsidiaries and Associates

TheCompanydoesnothaveanySubsidiaries,AssociateorJointVentureCompanies.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS: N.A.

RELATED PARTY TRANSACTIONS

DuringtheFinancialYear2015-16Companyhasnotenteredanysignificantrelatedpartytransactionwhichwill fall under the scope of related parties of section 188(1) of theCompaniesAct, 2013. Information ontransactionswithrelatedpartiespursuanttosection134(3)(h)oftheActreadwithrule8(2)oftheCompanies(Accounts)Rules,2014aregiveninAnnexureCinFormAOC-2andformspartofthisreport.

FIXED DEPOSITS:

YourCompanyhasnotacceptedanyfixeddepositsandassuchnoprincipalorinterestwasoutstandingason the date of the Balance sheet.

DISCLOSURE AS PER SEXUAL HARRASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

TheCompanyhaszerotoleranceforsexualharassmentatworkplaceandhasadoptedapolicyonprevention,prohibitionandredressalofsexualharassmentatworkplaceinlinewiththeprovisionsofSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013andtherulesframedthereunder.

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CORPORATE SOCIAL RESPONSIBILITY (CSR):

During the financial year 2015-16, the provisions of Section 135 of the CompaniesAct, 2013 read withapplicablerulesrelatedtoCorporateSocialResponsibilitywasnotapplicabletoCompany.

VIGIL MECHANISM / WHISTLE BLOWER POLICY:

TheCompanyhasaWhistleBlowerPolicyframedtodealwithinstanceoffraudandmismanagement,ifanyintheGroup.ThedetailsofthePolicyareexplainedintheCorporateGovernanceReportandalsopostedonthewebsiteoftheCompanyi.eishttp://grandeurproducts.com/index.html.

RISK MANAGEMENT:

TheRiskManagement is overseen by theAudit Committee of theCompany on a continuous basis. TheCommitteeoverseesCompany’sprocessandpoliciesfordeterminingrisktoleranceandreviewmanagement’smeasurement and comparison of overall risk tolerance to established levels.Major risks identified by thebusinessesandfunctionsaresystematicallyaddressedthroughmitigatingactionsonacontinuousbasis.Fordetails,pleaserefertotheManagementDiscussionandAnalysisreportwhichformpartoftheBoardReport.http://grandeurproducts.com/index.html

DIRECTORS’ RESPONSIBILITY STATEMENT:

PursuanttoSection134(5)oftheCompaniesAct,2013,yourDirectorsconfirmthattothebestoftheirknowledgeandbeliefandaccordingtotheinformationandexplanationobtainedbythem,

i) Inthepreparationoftheannualaccounts,theapplicableaccountingstandardshavebeenfollowedalongwithproperexplanationrelatingtomaterialdepartures;

ii) SuchaccountingpoliciesasmentionedinthenotestothefinancialstatementshavebeenselectedandappliedconsistentlyandjudgmentsandestimatesthatarereasonableandprudentmadesoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyear2015-16andoftheprofitorlossoftheCompanyforthatperiod;

iii) Proper and sufficient care has been taken for themaintenanceof adequate accounting records inaccordancewiththeprovisionsoftheCompaniesAct,2013forsafeguardingtheassetsofthecompanyandforpreventinganddetectingfraudandotherirregularities;

iv) Theannualaccountsfortheyear2015-16havebeenpreparedonagoingconcernbasis.

v) Thatproperinternalfinancialcontrolswereinplaceandthatthefinancialcontrolswereadequateand wereoperatingeffectively.

vi) Thatsystemstoensurecompliancewiththeprovisionsofallapplicablelawswereinplaceandwereadequate and operating effectively.

BOARD EVALUATION:

PursuanttotheapplicableprovisionsoftheCompaniesAct,2013andSEBIListingRegulations,theBoardhascarriedoutanAnnualEvaluationofitsownperformance,performanceoftheDirectorsandtheworkingofitsCommitteesontheevaluationcriteriadefinedbyNominationandRemunerationCommittee(NRC)forperformanceevaluationprocessoftheBoard,itsCommitteesandDirectors.

Aseparatemeetingof the independentdirectorswasconvenedon26thMarch,2016,which reviewed theperformanceoftheBoard(asawhole),thenon-independentdirectorsandtheChairman.PosttheIndependent

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directorsmeeting,thecollectivefeedbackofeachoftheIndependentDirectorswasdiscussedbytheChairmanoftheNRCwiththeBoard’sChairmancoveringperformanceoftheBoardasawholeperformanceofthenon-independent directors and performance of the Board Chairman.

Someofthekeycriteriaforperformanceevaluationareasfollows–

Performance evaluation of Directors:

• AttendanceatBoardorCommitteemeetings.• ContributionatBoardorCommitteemeetings.• Guidance/SupporttomanagementoutsideBoardorCommitteemeetings.

Performance evaluation of Board and Committees:

• Degreeoffulfillmentofkeyresponsibilities.• Boardstructureandcomposition.• EstablishmentanddelineationofresponsibilitiestoCommittees.• EffectivenessofBoardprocesses,Informationandfunctioning.• Boardcultureanddynamics.• QualityofrelationshipbetweenBoardandManagement.• EfficiencyofCommunicationwithexternalstakeholders.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

TheparticularsasprescribedunderRule8(3)of theCompanies(Accounts)Rules,2014,aresetout inan“Annexure-D”tothisReport.

EXTRACT OF ANNUAL RETURN:

Pursuant toSection 92(3) of theCompaniesAct, 2013 andRule 12(1) of theCompanies (Management andAdministration)Rules,2014,theextractoftheAnnualReturninFormMGT-9isannexedherewithasAnnexure B.

MANAGEMENT DISCUSSION & ANALYSIS:

TheManagementDiscussionandAnalysisReportfortheyearunderreviewispresentedinaseparatesectionandformsapartoftheDirectors’Report.

CORPORATE GOVERNANCE:

TheprovisionsofCorporateGovernancewerenotapplicableonyourcompanyduringtheFinancialyear2015-16.

Material Changes and commitments, if any, affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statement relates and the date of the report

· The Company has increased the Authorised share Capital of the Company from Rs 12.00 Crore to Rs 15.00 Crore.

·TheCompanyissuedandallotted20,00,000(TwentyLakhs)EquitySharesataPriceofRs.20each(includingPremiumofRs.10each)onaPreferentialbasistoPromoterandNonPromotergroup.

·TheCompany issued and allotted 6,00,000 (Six Lakhs) SecuredRedeemableUnlistedNon-ConvertibleDebenturestoNonPromotergroupatapriceofRs.100eachonPrivatePlacementbasis.

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HUMAN RESOURCES:

YourCompanyconsiders itsHumanResourcesas thekey toachieve itsobjectives.Keeping this inview,your Company takes utmost care to attract and retain quality employees. The employees are sufficientlyempoweredandsuchworkenvironmentpropelsthemtoachievehigherlevelsofperformance.TheunflinchingcommitmentoftheemployeesisthedrivingforcebehindtheCompany’svision.YourCompanyappreciatesthespirit of its dedicated employees.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

Therearenosignificantmaterial orderspassedby theRegulators /Courtswhichwould impact thegoingconcern status of the Company and its future operations.

Particulars of Employees and Remuneration:

Statementcontaining informationasrequiredunderSection197(12)of theCompaniesAct,2013,readwithRule5oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014,isannexedas Annexure E.

ACKNOWLEDGEMENTS:

YourDirectorswishtoexpresstheirgratitudetothecentralandstategovernment,investors,analysts,financialinstitutions,banks,businessassociatesandcustomers,themedicalprofession,distributorsandsuppliersfortheirwhole-heartedsupport.Yourdirectorscommendalltheemployeesofyourcompanyfortheircontinueddedication,significantcontributions,hardworkandcommitment.

Forandonbehalfoftheboard

Date:12.08.2016 Sd/- Sd/-Place:Hyderabad VijayKumarDeekonda MunnangiJayaramaprasad Whole Time Director Non Executive Director DIN:06991267 DIN:03034183

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Annexure - A SECRETARIAL AUDIT REPORT

For the Financial year ended 31st March, 2016(Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies

(Appointment and Remuneration Personnel)

To,TheMembers,Grandeur Products Limited10-2-9&10-2-249,FlatNo703,6thFloor,NasrApartments,ACGuards,Hyderabad-500004

We have conducted the Secretarial Audit of the compliances of applicable statutory provisions and theadherence to good corporate practices by Grandeur Products Limited (herein after called the company).SecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutory compliances and expressing my opinion thereon.

BasedonourverificationoftheGrandeurProductsLimitedbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany, itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,theCompanyhasduringtheauditperiodcoveringthefinancialyearendedon31stMarch,2016compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoardprocessandcompliancemechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

Wehaveexaminedthebooks,papers,minutebooks,formsandreturnfieldandotherrecordsmaintainedbyGrandeurProductsLimitedfortheFinancialYearendedon31stMarch,2016accordingtotheprovisionsof:

i. TheCompaniesAct,2013(theAct)andtherulesmadethereunder;

ii. TheSecuritiesContract(Regulation)Act,1956(SCRA)andtherulesmadethereunder;

iii. TheDepositoriesAct,1996andRegulationsandByeLawsframedthereunder;

iv. The Securities and Exchange Board of India ( Substantial Acquisition of Shares and Takeovers)Regulations,2011;

v. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015.

vi. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009.

vii. ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(SEBIAct)werenotapplicabletotheCompanyinthefinancialyearunderreport:-

a. TheSecuritiesandExchangeBoardof India (EmployeeStockOptionSchemeandEmployeeStockPurchaseScheme)Guidelines,1999.

b. TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;

c. The Securities and Exchange Board of India ( Registrars to an Issue and Share Transfer Agents) Regulations,1993regardingtheCompaniesActanddealingwithclient;

d. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009

e. TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998

Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

a. Secretarial StandardsSS-1 andSS-2with respect tomeetings of the board of directors andgeneralmeetings respectively issuedandnotifiedbyThe InstituteofCompanySecretariesof

16


Indiawhichcameintoforcew.e.f.1stJuly,2015undertheprovisionsofsection118(10)oftheAct.

b. Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations,2015(Effectivefrom01.12.2015)andTheListingAgreementsenteredintobytheCompanywithBSELimited(sincerepealed).

Duringtheperiodunderreviewthecompanyhascompliedwiththeprovisionsofthe

Act,Rules,Regulations,Guidelines,andStandardsetc.mentionedabove.

We further report that

TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,NonExecutive Directors and Independent Directors. The Changes in the composition of the Board of Directors that tookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.

DuringtheyearunderreviewVijayKumarDeekondawhoiswholetimedirectoroftheCompanyisappointedasChiefFinancialOfficeroftheCompanyw.e.f30thOctober,2015.

DuringtheyearunderreviewMs.SujaniVassireddiresignedfromtheservicesoftheCompanyasCompanySecretary&ComplianceOfficerandMs.PriyankaKumariappointedasCompanySecretary&ComplianceOfficeroftheCompanyw.e.f23rdNovember,2015.

AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

All the decisions at the boardmeetings and committeemeetings have been carried out unanimously asrecordedintheminutesofthemeetingsoftheBoardofDirectorsorCommitteeoftheBoard,asthecasemaybe.

We further report that

ThereareadequatesystemsandprocessesintheCompanycommensuratewiththesizeand operationsoftheCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

Wefurtherreportthatduringtheyearunderreview

• TheequitysharesoftheCompanygotlistedandadmittedtodealingontheBSELimitedeffectivefromJuly21,2015.

• TheAuthorisedShareCapitaloftheCompanyincreasedfromRs.5.00CrorestoRs12Croresbywayofcreationofadditional70,00,000(SeventyLaconly)equitysharesofRs.10(Rupeestenonly)each,aggregatingtoRs.7,00,00,000(RupeesSevenCroresonly).

• TheRegisteredOfficeoftheCompanyshiftedfromStateofWestBengaltoStateofTelangana.

• Companyhasissued54,60,000equitysharesoffacevalueofRs.10/-eachonpreferentialbasis.

For P.S. Rao & Associates Company Secretaries

Sd/- N. Vanitha M.No.26859 C.P. No.10573

Note:Thisreportistobereadwithourletterofevendatewhichisannexedas‘AnnexureA1’andformsanintegral part of this report.

Place:HyderabadDate:12/08/2016

17


ToTheMembers,GrandeurProductsLimited10-2-9&10-2-249,FlatNo703,6thFloor,NasrApartments,ACGuards,Hyderabad-500004

Ourreportofevendateistobereadalongwiththisletter.

1. Maintenance of secretarial record is the responsibility of the management of the company. Ourresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.

2. WehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.

3. WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsof the company.

4. Whereever required,wehaveobtained theManagement representationabout thecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.

5. ThecomplianceoftheprovisionsofCorporateandotherapplicablelaws,rules,regulations,standardsistheresponsibilityofmanagement.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.

6. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityofthecompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.

ForP.S.Rao&Associates Company Secretaries Sd/- N. Vanitha M.No.26859 C.P. No.10573Place:HyderabadDate:12.08.2016

‘Annexure A1’

18


Annexure-BFORM NO. MGT-9

EXTRACT OF ANNUAL RETURNAs on financial year ended on 31.03.2016

[Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management & Admin-istration) Rules, 2014.]

I. REGISTRATION & OTHER DETAILS:

1. CIN L15500TG1983PLC1101152. RegistrationDate 03/01/19833. NameoftheCompany GrandeurProductsLimited4. Category/Sub-category CompanyLimitedbyShares/ oftheCompany IndianNon-GovernmentCompany.5. AddressoftheRegisteredoffice 10-2-9&10-2-249,FlatNo703,6thFloor, &contactdetails NasrApartments,ACGuards,Hyderabad,Telangana-500004 Contact no.040-66513251 ` Email: [email protected]. Whetherlistedcompany Yes.7. Name,Address&contactdetailsofthe VentureCapitalAndCorporate Registrar&TransferAgent,ifany. InvestmentsPrivateLimited 12-10-167,BharatNagar, Hyderabad,Telangana500018 Contactno.-040-23818475,FaxNo.-040-23868024 Email id: [email protected]

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY(Allthebusinessactivitiescontributing10 %ormoreofthetotalturnoverofthecompanyshallbestated)

S. No. Name and Description of main NIC Code of the % to total turnover products / services products / services of the company

1 Wholesale trade services on a feeorcontractbasis 99612270 100%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -

CompanyisnothavinganyHolding,SubsidiaryandAssociateCompanies.

19


IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) A. Category-wise Share HoldingCategory of No. of Shares held at the No. of Shares held at the % ChangeShareholders beginningoftheyear endoftheyear during [As on 31-March-2015] [As on 31-March-2016] the year Demat Physical Total % of Demat Physical Total % of Total Total Shares SharesA. Promoters (1) Indian a)Individual/HUF 1089250 88850 1178100 25.95 2595000 0 2595000 25.95 0b)CentralGovt 0 0 0 0 0 0 0 0 0c)StateGovt(s) 0 0 0 0 0 0 0 0 0d) Bodies Corp. 0 0 0 0 0 0 0 0 0e)Banks/FI 0 0 0 0 0 0 0 0 0f) Any other 0 0 0 0 0 0 0 0 0Sub Total (A) (1) 1089250 88850 1178100 25.95 2595000 0 2595000 25.95 0(2) Foreign

(a) Individuals ( Non-Resident Individuals/ ForeignIndividuals) 0 0 0 0 0 0 0 0 0(a) Bodies Corporate 0 0 0 0 0 0 0 0 0(b) Institutions 0 0 0 0 0 0 0 0 0(c) QualifiedForeignInvestors0 0 0 0 0 0 0 0 0Sub Total (A) (2) 0 0 0 0 0 0 0 0 0Total shareholding of Promoter and Promoter Group (A) = (A)(1)+(A)(2). 1089250 88850 1178100 25.95 2595000 0 2595000 25.95 0B. Public Shareholding 1. Institutions 0 0 0 0 0 0 0 0 0a)MutualFunds 0 0 0 0 0 0 0 0 0b)Banks/FI 0 0 0 0 0 0 0 0 0c)CentralGovt 0 0 0 0 0 0 0 0 0d)StateGovt(s) 0 0 0 0 0 0 0 0 0e)VentureCapitalFunds 0 0 0 0 0 0 0 0 0f) Insurance Companies 0 0 0 0 0 0 0 0 0g)FIIs 0 0 0 0 0 0 0 0 0h)ForeignVentureCapitalFunds 0 0 0 0 0 0 0 0 0i)Others(specify) 0 0 0 0 0 0 0 0 0 Sub-total (B)(1):- 0 0 0 0 0 0 0 0 02. Non-Institutions a) Bodies Corp. 0 0 0 0 0 0 0 0 0i) Indian 0 0 0 0 0 0 0 0 0ii)Overseas 0 0 0 0 0 0 0 0 0b)Individuals 0 0 0 0 0 0 0 0 0i) Individual shareholders holding nominal share capital uptoRs.1lakh 0 6000 0 0.13 0 244820 244820 2.45 2.28ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh 0 3355900 0 73.92 1714450 1397200 3111650 31.11 (42.81)

20


Category of No. of Shares held at the No. of Shares held at the % ChangeShareholders beginningoftheyear endoftheyear during [As on 31-March-2015] [As on 31-March-2016] the year

Demat Physical Total % of Demat Physical Total % of Total Total Shares Shares

c) Others (specify) 0 0 0 0 0 0 0 0 0

BodiesCorporate 0 0 0 0 4043100 5430 4048530 40.49 40.49

Sub-total(B)(2):- 0 3361900 3361900 74.05 5757550 1647450 7405000 74.05 -

Total Public Shareholding 0 3361900 3361900 74.05 5757550 1647450 7405000 74.05 -(B)=(B)(1)+ (B)(2)

C. Shares held by Custodian for GDRs & ADRs 0 0 0 0 0 0 0 0

Grand Total (A+B+C) 1089250 3450750 4540000 100.00 8352550 1647450 10000000 100.00 -

B) Shareholding of PromoterSl Shareholders Shares held at the Shares held at the % Change in No. Name beginningoftheyear endoftheyear shareholding the year during No of %of total % of Shares No of %of total % of Shares Shares shares Pledged Shares Shares of Pledge/ ofthe encumbered the encumbered company to total company to total shares shares

1 VisweswaraRao 88850 1.96 0 1405750 14.05 0 12.092 JayaramMunnangi 1089250 23.99 0 1089250 10.89 0 (13.10)3 Sai Charan N 0 0 0 100000 10.00 0 10.00

Total 1178100 25.95 0 2595000 25.95 0 -

21


C) Change in Promoters’ Shareholding (please specify, if there is no change)SN Particulars Shareholding at the Cumulative Shareholding beginningoftheyear duringtheyear No. of shares % of total No. of shares % of total shares of the shares of the company company1 VisweswaraRaoK At thebeginningoftheyear 88850 1.96 Allotmenton16.11.2015 1316900 13.16 At the end of the year 1405750 14.05 1405750 14.05 2 Jayaram Munnangi Atthebeginningoftheyear 1089250 23.99 Attheendoftheyear 1089250 10.89 1089250 10.893 Sai Charan N Atthebeginningoftheyear - - Allotment on 16.11.2015 100000 10.00 At the end of the year 100000 10.00 100000 10.00

D) Shareholding Pattern of top ten Shareholders:(Other than Directors, Promoters and Holders of GDRs and ADRs):

SN Name of Shareholder Shareholding at the Cumulative Shareholding beginningoftheyear Endoftheyear 01.04.2015 31.03.2016 No. of % of total No. of % of total shares shares shares shares of the of the company company

1 AdhbuthamBusinessSolutionsPrivateLimited (previouslyknownasKensiumBusiness SolutionsPrivateLimited) Atthebeginningoftheyear 0 0 0 0 Allotment on 16.11.2015 2300000 23.00 2300000 23.00 At the end of the year 2300000 2300000

2 TaskPeopleFoodAndServicesPrivateLimited Atthebeginningoftheyear 0 0 0 0 Allotment on 16.11.2015 1743100 17.43 1743100 17.43 At the end of the year 1743100 17.43

3 Mohan Krishna B Atthebeginningoftheyear 1000000 22.00 1000000 10.00 At the end of the year

4 Satish Kumar Tondapu Atthebeginningoftheyear 500000 11.00 500000 5.00 At the end of the year 500000 5.00

5 N.V.V.Lakshmi Atthebeginningoftheyear 204300 4.5 204300 2.14 At the end of the year 204300 2.14

6 Sai Kiran K Atthebeginningoftheyear 200000 4.4 200000 2.00 At the end of the year 200000 2.00

22


7 S Narasimha Prasad Atthebeginningoftheyear 42300 0.9 42300 0.42 At the end of the year 42300 0.42

8 B.Srinivas Atthebeginningoftheyear 42000 0.9 42000 0.42 At the end of the year 42000 0.42

9 KRadhakrishnan Atthebeginningoftheyear 41400 0.9 41400 0.41 At the end of the year 41400 0.41

10 Ch.Janaki Ratnam Atthebeginningoftheyear 41000 0.9 41000 0.41 At the end of the year 41000 0.41

E) Shareholding of Directors and Key Managerial Personnel:

SN Name of the Date Reason Shareholding at the Cumulative Shareholding beginningoftheyear Endoftheyear

No. of % of total No. of % of total shares shares shares company of the of the company company

1 JayaramPrasadM N.A. N.A. 1089250 23.00 0 0

N.A. N.A. 1089250 23.00 1089250 23.00

V) INDEBTEDNESS -Indebtedness of the Company including interest outstanding/accrued but not due for payment. SecuredLoans Unsecured Deposits Total excludingdeposits Loans Indebtedness

Indebtedness at the beginning of the financial year 0 0 0 0i) Principal Amount 0 0 0 0ii)Interestduebutnotpaid 0 0 0 0iii)Interestaccruedbutnotdue 0 0 0 0Total (i+ii+iii) 0 0 0 0ChangeinIndebtednessduringthefinancialyear * Addition 0 0 0 0* Reduction 0 0 0 0Net Change 0 0 0 0Indebtednessattheendofthefinancialyear i) Principal Amount 0 0 0 0ii)Interestduebutnotpaid 0 0 0 0iii)Interestaccruedbutnotdue 0 0 0 0

Total (i+ii+iii) 0 0 0 0


23

V. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-A.RemunerationtoManagingDirector,Whole-timeDirectorsand/orManager:

S. No. Particulars of Remuneration Whole Time Director Total Amount

Vijay Kumar Deekonda

1 Gross salary (a) Salary as per provisions contained 480000 480000 insection17(1)oftheIncome-taxAct,1961 (b)Valueofperquisitesu/s17(2) Income-taxAct,1961 (c)Profitsinlieuofsalaryundersection17(3) Income-taxAct,1961 2 StockOption 0 0

3 SweatEquity 0 0

4 Commission -as%ofprofit -others,specify… 0 0

5 Others,pleasespecify 0 0 Total (A) 480000 480000

Ceiling as per the Act 5%

B. Remuneration to other directors:

SN. Particulars of Remuneration Name of Directors Total Amount Poppoppu Majeti Jonnada Jayaram LeninBabu Venkatasesha VaghiraKumari Prasad Sridhar Kumar Munnagi

1 Independent Directors 0 0 0 0 0 Feeforattendingboard committeemeetings 55000 45000 47000 41000 188000 Commission 0 0 0 0 0 Others,pleasespecify 0 0 0 0 0 Total (1) 0 0 0 0 02 OtherNon-ExecutiveDirectors 0 0 0 0 Feeforattendingboard committee meetings 0 0 0 0 0 Commission 0 0 0 0 0 Others,pleasespecify 0 0 0 0 0 Total (2) 0 0 0 0 0 Total (B)=(1+2) 0 0 0 0 0 Total Managerial Remuneration 55000 45000 47000 41000 188000 Ceiling limit as per the Act, 2013

Within the Ceiling limit as per the Companies Act, 2013

24


C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

S. No. Particulars of Remuneration Key Managerial Personnel Company ChiefFinancial Total Secretary Officer(CFO)

1 (a) Salary as per provisions contained in section17(1)oftheIncome-taxAct,1961 225333 0 225333 (b)Valueofperquisitesu/s17(2) Income-taxAct,1961 0 0 0 (c)Profitsinlieuofsalaryunder section17(3)Income-taxAct,1961 0 0 02 StockOption 0 0 03 SweatEquity 0 0 04 Commission 0 0 0 -as%ofprofit 0 0 0 Others,specify… 0 0 05 Others,pleasespecify 0 0 0 Total 225333 0 225333

VI. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Therewerenopenalties,punishmentorcompoundingofoffencesduringtheyearendedMarch31,2016.



25


Annexure - CForm No. AOC-2

(Pursuanttoclause(h)ofsub-section(3)ofsection134oftheActandRule8(2)oftheCompanies(Accounts)Rules,2014)

Form for disclosure of particulars of contracts/arrangements entered into by the Company with relatedpartiesreferredtoinsub-section(1)ofsection188oftheCompaniesAct,2013includingcertainarm’slengthtransactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arm’s length basis: TheCompany has notenteredintoanycontract/arrangement/transactionwithitsrelatedpartieswhicharenotinordinarycourseofbusinessoratarm’slengthduringFY2015-16.

(a) Name(s) of the related party and nature of relationship: Not Applicable(b)Nature of contracts/arrangements/transactions: Not Applicable(c) Duration of the contracts / arrangements/transactions: Not Applicable(d)Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany:Not Applicable(e)Justificationforenteringintosuchcontractsorarrangementsortransactions:Not Applicable(f) Date(s)ofapprovalbytheBoard:Not Applicable(g)Amountpaidasadvances,ifany: Not Applicable(h) Dateonwhich thespecial resolutionwaspassed ingeneralmeetingasrequiredunderfirstproviso to

section188:NotApplicable

2.Detailsofmaterialcontractsorarrangementortransactionsatarm’slengthbasis:

(a) Name(s) of the related party and nature of relationship: Not Applicable(b)Natureofcontracts/arrangements/transactions:Not Applicable(c) Duration of the contracts / arrangements/transactions: Not Applicable(d)Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany:Not Applicable(e)Justificationforenteringintosuchcontractsorarrangementsortransactions: Not Applicable(f) Date(s)ofapprovalbytheBoard:Not Applicable(g)Amountpaidasadvances,ifany:Not Applicable(h) Dateonwhich thespecial resolutionwaspassed ingeneralmeetingasrequiredunderfirstproviso to

section188:Not Applicable



26


Annexure:DConservation of energy, research and development, technology absorption,

foreign exchange earnings and outgo(ParticularspursuanttotheCompanies(Accounts)Rules,2014)

A. Conservation of Energy:

EnergyConservationmeasuretaken–“N.A.”

Impactoftheclause(1)and(2)aboveforreductionofenergyconsumptionandconsequentimpactontheproductionofgoods-“N.A.”

B. Technology Absorption:

1. Efforts,inbrief,madetowardstechnologyabsorption,adoptionandinnovation: Nil

2. Benefitsderivedasaresultoftheaboveefforts,Ex;productimprovement,costreduction,productdevelopment,importsubstitutionetc.: Nil

3. Import of technology : Nil

C. Research and Development:

1. SpecificareasinwhichR&DcarriedoutbytheCompany :Nil2. BenefitsderivedasaresultoftheaboveR&D :Nil3. Futureplanofaction :Nil4. ExpenditureonR&Da) Capital : Nil b) Recurring :Nilc) Total : Nil d) TotalExpenditureonR&Dasapercentageoftotalturnover :Nil

D. Foreign Exchange Earnings and out go.

ForeignExchangeearningsduringtheyearisRs.15,87,44,422&OutflowisRs.0(ZERO).



27


Annexure-EPARTICULARS OF EMPLOYEES

[Pursuant to Rule 5(1) of the Companies (Appointment and Remuneration of ManagerialPersonnel)Rules,2014]

a. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the Financial Year:

Name of Director/KMP Designation Ratio to median remuneration VijayKumarDeekonda WholeTimeDirectorandCFO 145.45% Priyanka Kumari Company Secretary and 72.72% ComplianceOfficer

“The Company has not paid any remuneration to the non-executive directors of the Company for the Financial Year 2015-16.”

b. Thepercentage increase in remunerationofeachdirector,ChiefExecutiveOfficer,ChiefFinancialOfficer,CompanySecretaryintheFinancialYear:NIL

“During the Financial Year 2015-16, there is no increase in the remuneration of each director, chief executive officer, chief financial officer, company secretary of the Company.”

c. The Percentage increase in the median remuneration of employees in the Financial Year: NIL

d. The number of permanent employees on the rolls of Company: Other thanWholeTimeDirector andCompanysecretary,nopermanentEmployeesworkingintheCompanyandCompanydoesdoingbusinessoncontractualbasis.

e. Average percentile increase already made in the salaries of employees other than the managerial personnel inthelastfinancialyearanditscomparisonwiththepercentileincreaseinthemanagerialremunerationandjustificationthereofandpointout if thereareanyexceptionalcircumstancesfor increase in themanagerialremuneration: N.A.

f. Affirmation that the remuneration is as per the remuneration policy of the Company:

TheCompanyaffirmsremunerationisaspertheremunerationpolicyoftheCompany.



28


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29


MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT :

Theglobal coffee industry is at a crossroads, enjoyingunprecedentedgrowth, yet facinga complex competitiveenvironment.Developedmarketsoffer competition, commoditizationanddemand formorepremiumofferings. Inemergingmarkets,coffeecultureexpandsapace,yetmeetingdemandamong lower-incomeconsumers remainschallenging.Atthecentreofitallisthecoffeeshop,theaxisaroundwhichtheentireindustryturns,andanemergingpresenceinthegloballuxurymarket.

TheglobalproductionofCoffeefortheyear2015isestimatedat144.7millionbagsandconsumptionat152.1mil-lionbagsasperInternationalCoffeeOrganization.DuetohigherproductionofRobustainVietnamandweakeningemergingmarketcurrencies,coffeepriceshitadownwardspiralin2015-16.Theyearunderreviewhasbeenchal-lengingduetoaglobaldipinthecoffeeprices.

B. OPPORTUNITIES:

Recently,entrepreneurialopportunitiesaboundinalmostallthesectorsinIndia,buttheagriculturesector,inparticu-lar,offersunprecedentedopportunitiesforbuddingentrepreneurs.Inorderforthecloserandmorestrategicintegra-tionoffarmingwithinwiderlocalandregionaleconomicgrowthanddevelopmentinitiatives,andtoenterintoglobalmarketonaleveledfield,Indianagriculturewillincreasinglyneedtoadapttochangedmarketdemands.

C. RISKS, CONCERNS AND THREATS:

Volatility in the demand for Coffee and its prices in the International Commodity Market and Currency Exchange movementsaresomeofthemajorriskstowhichtheCompanyisexposedto.TheCompanyhasrobustcurrencyhedgingpoliciesandbusinessmarketingpracticestomitigatetheserisks.TheCurrencyhedgingstrategyismoni-toredbyRiskManagementCommitteeonaregularbasis.

TheCompanyoperatesinhighlycompetitiveInstantCoffeemarketswhicharepricesensitiveandhassubstantialdependenceoncertaingeographiesandcustomers.Thischallengeisbeingmitigatedandde-riskedbydiversifyingsalesintoothergeographiesandbuildinglongtermCustomerrelationships.TheCompanyisrequiredtomaintainitscostcompetitiveedgebytimelysourcingofgreencoffee–theprimaryrawmaterial,whosepricesarehighlyvolatileintheInternationalmarkets.Constanteffortsarerequiredtocreateandinnovatenewblendstocatertotheconstantlychanging needs of the Customers taste in different markets.

D. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

Major Product Wise Turnover:

DuringtheyearunderreviewtheCompanywasengagedexclusivelyintotradingofgoods(i.eCoffee)andhasgen-eratedaRevenueofRs.15,87,44,422fromthesame.

E. OUTLOOK:

Themoderntimeshavewitnessedevolutionofcoffeedrinkingfromaneverydayhabittoahealthylifestylechoice.Coffeehasgained thestatusofbeing themostpreferredbeverageworldwide.Coffee is thesecondmost tradedcommodityintheworld.

Theconvenience,versatilityofflavorandformat,andbrandedexperienceprovidedbyinstantcoffeeenableittobepositionedasapremiumhotdrinkoption,particularly fornewcoffeedrinkers inpredominantly lower incometea-drinking markets.

ThedemandfortheSupermarketbrandshasbeenconsistentlyincreasingacrossEurope.TheCompanyisabletocatertheneedsoftheSupermarketsandhasaconsiderablygoodmarketshareacrossSupermarketPrivatelabelsacrossEurope.TheCoffeeconsumersarepreferringpremiumproductssuchasFreezeDriedCoffeeandtherebycreating a huge market for the premium products.

30


Intermsofthecoffeesectoritself,theRussianmarketshowsastrongpreferenceforinstantcoffeeoverfreshandground.Thisisoftenthecasefortraditionallytea-drinkingcountries;theactofmakinginstantcoffeeissimilarenoughtothatoftea(i.e.simplyaddinghotwater)thatitprovidesaneasygatewayfromteaconsumptiontocoffee.

TheInstantcoffeemarketinIndiaisgrowingatarateof20%yearonyearwithSouthIndiaaccountingfor70-80%of the coffee consumption.

Apositive consumeroutlook towardsnewexperiences suchaspremiumcoffee, higherdisposable incomesandthegrowingnumberofyoungprofessionalsweresomeoftheimportantfactorsthatpromotedgrowthincoffeecon-sumptioninIndia.Additionally, increasedaccesstocoffeemachinesinofficesandinstitutionstriggeredinterestincoffeeamongconsumers,whichindirectlydrovesalesinhouseholds,aspeoplebegantoacquireatasteandinturnconsumedcoffeeathomeaswell.

Theinstantcoffeesectoroutlookisbrightasconsumersincreasinglyvalueinstantcoffee’ssimplicityofpreparation.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

TheCompanyhasaligneditscurrentsystemsofInternalFinancialControlwiththerequirementofCompaniesAct2013.TheCompany’s InternalControls are commensuratewith its size and the nature of its operations.ThesehavebeendesignedtoprovidereasonableassurancewithregardtorecordingandprovidingreliableFinancialandOperationalinformation,complyingwithapplicablestatutes,safeguardingassetsfromunauthoriseduse,executingtransactionswithproperauthorisationandensuringcomplianceofCorporatePolicies.

TheCompanyhasawell-defineddelegationofpowerwithauthoritylimitsforapprovingrevenueaswellasexpendi-ture.ProcessesforformulatingandreviewingAnnualandLongtermBusinessPlanshavebeenlaiddown.TheCom-panyusesaState-of-the-ArtEnterpriseResourcePlanning(ERP)systemtorecorddataforAccounting,Consolida-tionandManagementInformationpurposesandconnectstodifferentlocationsforefficientexchangeofinformation.Ithascontinueditseffortstoalignallitsprocessesandcontrolswithglobalbestpractices.

G. FINANCIAL AND OPERATIONAL PERFORMANCE:

TheIncomefromOperationsshowedahealthyimprovementwiththetoplineatRs.1635.19Lacs.TheProfitbeforetaxRs.20.11Lacswashigherthanthepreviousyear’sprofitofRs.10.76Lacs.TheProfitaftertaxisRs.11.54Lacsvis-à-visRs.5.64Lacsinthepreviousyear.

H. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT AND NUMBER OF PEOPLE EMPLOYED:

TheManpowerstrengthoftheCompanybasicallyincludesthetemporaryandcontractualworkers.HarmoniousIndustrialRelationsprevailedintheCompanyduringtheFinancialYear2015-16.

Yourcompanyrecognizesthatthehumanresourcesarethemostcrucialfactorforachievingsustainedgrowthovertheyears.Themanagementconsiders it’shighlymotivatedandpassiondrivenwork forceas it ‘spartner in thegrowthofthecompany

I. CAUTIONARY STATEMENT:

CertainstatementsmadeintheManagementDiscussionandAnalysisReportrelatingtotheCompany’sObjectives,Projections,Outlook, Expectations, Estimates andOthersmay constitute ‘forward looking statements’ within themeaningofapplicablelawsandregulations.Actualresultsmaydifferfromsuchexpectationswhetherexpressedorimplied.SeveralfactorscouldmakesignificantdifferencetotheCompany’sOperations.TheseincludeClimaticandEconomicConditionsaffectingDemandandSupply,GovernmentRegulationsandTaxation,NaturalCalamitiesoverwhichtheCompanydoesnothaveanydirectcontrol.

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INDEPENDENT AUDITOR’S REPORT

TotheMembers,GRANDEUR PRODUCTS LIMITED

Report on the Financial Statements

WehaveauditedtheaccompanyingfinancialstatementsofM/s.GrandeurProductsLimited(“theCompany”)whichcomprisetheBalanceSheetasatMarch31,2016,theStatementofProfitandLoss,CashFlowState-mentfortheyearthenendedandsummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Standalone Financial Statements

TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013 (“theAct”)with respect to thepreparationof thesefinancialstatements thatgivea trueand fairviewofthefinancialposition,financialperformanceandcashflowsoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandappli-cationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffec-tivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’sResponsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoob-tainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsandthedisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopiniononwhethertheCompanyhasinplaceanadequate internalfinancialcontrolssystemoverfinancial reportingandtheoperatingeffectivenessofsuchcontrols. An audit also includes evaluating the appropriateness of the accounting policies used and the rea-sonablenessoftheaccountingestimatesmadebytheCompany’sDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheStandalonefinancialstatements

Opinion

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidfinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2016,anditsProfitanditsCashFlowfortheyearendedonthatdate.

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Report on Other Legal and Regulatory Requirements

1. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”),asamended,issuedbytheCentralGovernmentofIndiaintermsofsub-section(11)ofsection143oftheAct,wegiveinthe“An-nexureA”astatementonthemattersspecifiedinparagraphs3and4oftheOrder.

2. Asrequiredbysection143(3)oftheAct,wereportthat:

a. wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowl-edgeandbeliefwerenecessaryforthepurposeofouraudit;

b. inouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks;

c. theBalanceSheet,theStatementofProfitandLossandtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount

d. inouropinion,theaforesaidStandalonefinancialstatementscomplywiththeAccountingStand-ardsspecifiedundersection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

e. onthebasisofwrittenrepresentationsreceivedfromthedirectorsasonMarch31,2016takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2016frombeingappointedasadirectorintermsofSection164(2)oftheAct.

f. withrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCom-panyandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportin“AnnexureB”.

g. withrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinforma-tion and according to the explanations given to us:

i. TheCompanydoesnothaveanypendinglitigationswhichwouldimpactitsfinancialposi-tion.

ii. TheCompanydidnothaveanylong-termcontractsincludingderivativecontractsforwhichtherewereanymaterialforeseeablelosses.

iii. TherewerenoamountswhichwererequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.

ForRamasamyKoteswaraRao&Co, Chartered Accountants FirmRegistrationNumber:010396S

(C V Koteswara Rao)Place:Hyderabad PartnerDate:27-05-2016 MembershipNo.028353

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Annexure-A to the Auditors’ Report (referred to in paragraph 1 of our Report of even date to the Members of “GRANDEUR PRODUCTS LIMITED” for the year ended March 31, 2016)

Onthebasisofsuchchecksasweconsideredappropriateandaccordingtotheinformationandexplanationgiventousduringthecourseofouraudit,wereportthat;

i. TheCompanydoesn’thaveFixedAssets;hencethereportingunderthisClauseisnotapplicable.

ii. TheCompanydoesn’thaveInventory;hencethereportingunderthisClausearenotapplicable.

iii. TheCompanyhasnotgrantedany loans,securedorunsecured tocompanies,firms,LimitedLiabilitypartnershipsorotherpartiescoveredintheRegistermaintainedundersection189oftheAct.Accordingly,theprovisionsofclause3(iii) (a) to(C)of theOrder isnotapplicable to theCompanyandhencenotcommented upon.

iv. Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhascompliedwiththeprovisionsofsection185andI86oftheCompaniesAct,2013Inrespectofloans,investments,guarantees,andsecurity.

v. TheCompanyhasnotacceptedanydeposits from thepublicandhence thedirectives issuedby theReserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act andtheCompanies(AcceptanceofDeposit)Rules,2015withregardtothedepositsacceptedfromthepublicarenotapplicable.

vi. TheCentralGovernmenthasnotprescribedthemaintenanceofcostrecordsundersection148(1)oftheCompaniesAct2013,hencetheDisclosureRequirementsunderthisClausearenotapplicable.

vii. (a) Accordingtoinformationandexplanationsgiventousandonthebasisofourexaminationofthebooksofaccount,andrecords,theCompanyhasbeengenerallyregularindepositingundisputedstatutory dues including Income-Tax, Sales tax, Value addedTax,Cess and any other statutorydueswith theappropriateauthorities.According to the informationandexplanationsgiven tous,noundisputedamountspayableinrespectoftheabovewereinarrearsasatMarch31,2016foraperiodofmorethansixmonthsfromthedateonwhentheybecomepayable.

(b) Accordingtotheinformationandexplanationgiventous,therearenoduesofincometax,salestax,and value added tax outstanding on account of any dispute.

viii. Basedonourauditproceduresandontheinformationandexplanationgiventous,weareoftheopinionthecompanyhasnottakenanyloansfrombankorfinancialinstitutions.Accordinglyclause3(ix)oftheorderisnotapplicabletothecompany.HencethereportingunderthisClauseisnotapplicable.

ix. Based upon the audit procedures performed and the information and explanations given by themanagement, thecompanyhasnot raisedmoneysbywayof initial publicofferor furtherpublicofferincludingdebtinstrumentsandtermLoans.Accordingly,theprovisionsofclause3(ix)oftheOrderarenotapplicabletotheCompanyandhencenotcommentedupon.

x. Based upon the audit procedures performed and the information and explanations given by themanagement,wereportthatnofraudbytheCompanyoronthecompanybyitsofficersoremployeeshasbeennoticedorreportedduringtheyear.

xi. Based upon the audit procedures performed and the information and explanations given by themanagement, the provisions of section 197 readwith Schedule V to the CompaniesAct 2013 arecomplied.HencethereportingunderthisClauseisnotapplicable.

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xii. Inouropinion,theCompanyisnotaNidhiCompany.Therefore,theprovisionsofclause4(xii)oftheOrderarenotapplicabletotheCompany.HencethereportingunderthisClauseisnotapplicable.

xiii. Inouropinion,complianceRequirementsunderSection177and188ofCompaniesAct,2013arenotapplicabletotheCompanyanddisclosurerequirementsinthefinancialstatementsasrequiredbytheapplicableaccountingstandardsarecomplied.

xiv. Based upon the audit procedures performed and the information and explanations given by themanagement,thecompanyhasmadeprivateplacementofsharesduringtheyearunderreview.Therequirementofsection42ofCompaniesAct2013hasbeencompliedwithandtheamountraisedhasbeenusedforthepurposeforwhichthefundswereraised.

xv. Based upon the audit procedures performed and the information and explanations given by themanagement,thecompanyhasnotenteredintoanynon-cashtransactionswithdirectorsorpersonsconnectedwithhim.Accordingly,theprovisionsofclause3(xv)oftheOrderarenotapplicabletotheCompany and hence not commented upon.

xvi. Inouropinion,thecompanyisnotrequiredtoberegisteredundersection45IAoftheReserveBankofIndiaAct,1934.Thusparagraph3(iv)oftheorderisnotapplicabletothecompany.



35


“Annexure B” to the Independent Auditor’s Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

Wehaveaudited the internalfinancialcontrolsoverfinancial reportingofGrandeurProductsLimited (“theCompany”)asofMarch31,2016inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompany for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

TheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.Theseresponsibilitiesincludethedesign,implementationandmaintenanceof adequate internal financial controls thatwereoperatingeffectively forensuring the orderly and efficient conduct of its business, including adherence to company’s policies, thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’ Responsibility

OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbased on our audit.We conducted our audit in accordance with the Guidance Note onAudit of InternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditof internalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequate internalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedand ifsuch controls operated effectively in all material respects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrols system over financial reporting and their operating effectiveness. Our audit of internal financialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting, assessing the risk that amaterial weakness exists, and testing and evaluating the design andoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

Acompany’s internalfinancialcontroloverfinancial reporting isaprocessdesigned toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat, inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatements inaccordancewithgenerallyacceptedaccountingprinciples,and that receiptsandexpendituresof thecompanyarebeingmadeonly inaccordancewithauthorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmay

36


occurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorprocedures may deteriorate.

Opinion

Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancial reportingandsuch internalfinancialcontrolsoverfinancial reportingwereoperatingeffectivelyasatMarch31,2016,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsidering the essential components of internal control stated in theGuidanceNote onAudit of InternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.



37


BALANCE SHEET AS AT MARCH 31, 2016 (Amount In `) Particulars Note No As at As at March 31, 2016 March 31, 2015 EQUITY AND LIABILITIES Shareholder’s Funds ShareCapital 1 10,00,00,000 4,54,00,000ReservesandSurplus 2 23,92,049 12,38,667 Current Liabilities TradePayables 3 1,25,92,135 9,24,02,861OtherCurrentLiabilities 4 9,66,064 6,26,227 Total 11,59,50,249 13,96,67,755 ASSETS Current assets Investments 78,720 -Traderecievables 5 1,27,34,063 9,49,39,917Cashandcashequivalents 6 6,20,45,578 1,38,37,851Short-termloansandadvances 7 4,02,65,000 3,07,15,397OthercurrentAssets 8 8,26,888 1,74,590 Total 11,59,50,249 13,96,67,755

Significant Accounting policies and notes to accounts

As per our report of even date ForRAMASAMY KOTESWARA RAO & CO., ForandonbehalfoftheBoard Chartered Accountants FRNNO.010396S Vijay Kumar Deekonda Munnangi Jayaram Prasad Director Director DIN:06991627 DIN:03034183 C V Koteswara Rao Partner Priyanka Kumari M.No:028353 CompanySecretary Place:Hyderabad Date: 27-05-2016

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PROFIT & LOSS STATEMENT FOR THE YEAR ENDED 31st MARCH, 2016 (Amount In `) Particulars Note No As on As on March 31, 2016 March 31, 2015 INCOME Revenuefromoperations 9 15,87,44,422 16,92,00,850 OtherIncome 10 47,74,528 4,30,685

Total Revenue 16,35,18,950 16,96,31,535

EXPENSES PurchaseofStock-inTrade 11 15,44,66,973 16,60,53,038SalariesandWages 12 48,54,650 3,80,000Otherexpenses 13 21,86,744 21,22,770 Total Expenses 16,15,08,367 16,85,55,808 Profitbeforetax,priorperioditems 20,10,582 10,75,728 prior period items - - Profitbeforetax 20,10,582 10,75,728 Tax expense: (1)Currenttax 8,57,200 5,11,460 (2) Deferred tax - Profit/(Loss) for the period 11,53,382 5,64,268 Earning per equity share: Basic and Diluted 0.02 0.12 Significant Accounting policies and notes to accounts


39


CASH FLOW STATEMENT FOR THE YEAR ENDED 31.03.2016 (Amount In `) Particulars For the year For the year ended 31.03.2016 ended 31.03.2015 A Cash flow from operating Activities NetProfit/(Loss)BeforeTax 20,10,582 10,75,728 Adjustments for :- Depreciation - - Preliminary Expenses - - OperatingprofitbeforeworkingCapitalChanges 20,10,582 10,75,728 (Decrease)/increaseinCurrentLiabilities -7,94,70,888 9,23,42,123 Decrease/(increase)inCurrentAssets 7,20,03,953 (7,94,81,588) Cashflowsfromoperatingactivities (54,56,353) 1,39,36,264 Taxespaid 8,57,200 1,48,316 NetCashflowsfromoperatingactivities (63,13,553) 1,37,87,948 B Cash flow from investing Activities PurchaseoffixedAssets Purchaseofshares -78,720 Net Cash flows from Investing activities (78,720) - C Cash flow from Financing Activities IncreaseofShareCapital 5,46,00,000 0 IncreaseinLongtermBorrowings 0 - Net Cash flows from Financing activities 5,46,00,000 0

NetIncrease/(Decrease)inCashandCashequivalents 4,82,07,727 1,37,87,948Cashandcashequivalentsatthebeginningoftheyear 1,38,37,852 49,904Cashandcashequivalentsattheendoftheyear 6,20,45,578 1,38,37,852Cash&Cashequivalents 6,20,45,578


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Notes Forming Part of Balance Sheet & Profit and Loss Statement. Particulars Asat31st, Asat31st, Asat31st, Asat31st, March 2016 March 2016 March 2015 March 2015 Note 1 No. of Shares Amount No. of Shares Amount SHARECAPITAL AUTHORISEDCAPITAL EquitySharesofRs.10/-each 1,20,00,00012,00,00,000.00 50,00,000 5,00,00,000 12,00,00,000 5,00,00,000 ISSUED,SUBSCRIBED&PAIDUPCAPITAL 1,00,00,00010,00,00,000.00 45,40,0004,54,00,0000 Equity Shares of Rs. 10/- each fully paid up 1,00,00,000 10,00,00,000 4,54,00,000 4,54,00,000 A)Reconcilitationofnumberofshares Equity Shares Asatbeginningoftheyear 45,40,000 4,54,00,000 2,40,000 24,00,000Add:Issueofshares 54,60,000 5,46,00,000 43,00,000 4,30,00,000 As at end of the year 1,00,00,000 10,00,00,000 45,40,000 4,54,00,000 0 B) Shareholders holding more than 5% equity shares No of Shares % No of Shares % JayaramMunnangi 10,89,050 10.89% 10,89,050 23.99%B.MohanKrishna 10,00,000 10.00% 10,00,000 22.03%T.Satish 5,00,000 5.00% 5,00,000 11.01%TaskPeopleFood&ServicesPvtltd 17,43,100 17.43% VishwehwarRao.K 14,05,750 14.06% KensiumBusinessSolutionsPvtltd 23,00,000 23.00% 80,37,900 80.38% 25,89,050 57.03%

Note 2 Particulars As at 31st, As at 31st, March 2016 March 2015

RESERVES & SURPLUS

(a) SurplusinStatementofProfit&Loss OpeningBalance 12,38,667 6,74,399Add:Profitfortheyear 11,53,382 5,64,268Less:MiscelleanousExpenditurenotwritten-off - - At the end of the year 23,92,049 12,38,667 Note 3 Particulars As at 31st, As at 31st, March 2016 March 2015 Trade Payables Sundrycreditors 1,25,92,135 9,23,50,861Morethan6months - 52,000 Total 1,25,92,135 9,24,02,861

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Note 4 Particulars As at 31st, As at 31st, March 2016 March 2015 OTHER CURRENT LIABILTIES AuditFeePayable 71,392 78,767RentPayable - 36,000IncomeTaxPayable 8,57,200 5,11,460ProfessionalTaxPayable 23,200 -TDSPayable 14,272 - Total 9,66,064 6,26,227


Trade recievables Sundrydebtors 1,27,34,063 9,49,39,917

Total 1,27,34,063 9,49,39,917 Note 6 Particulars As at 31st, As at 31st, March 2016 March 2015 CASH & BANK BALANCES Cashinhand 5,576 24,904BalancewithBanks 6,20,40,002 1,38,12,947 Total 6,20,45,578 1,38,37,851

Note 7 Particulars As at 31st, As at 31st, March 2016 March 2015 SHORT-TERM LOAN & ADVANCES AdvancesReceivable 32,35,000 32,00,000CapitalAdvances 3,70,00,000 2,71,15,397OtherLoansandadvances 30,000 4,00,000 Total 4,02,65,000 3,07,15,397 Note 8 Particulars As at 31st, As at 31st, March 2016 March 2015 Other current Assets AdvanceTax 7,00,000 75,000PrepaidInsurance 3,743 26,274TDSReceivables 1,23,145 73,316

Total 8,26,888 1,74,590

Notes Forming Part of Balance Sheet & Profit and Loss Statement.

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Note 9 Particulars As at 31st, As at 31st, March 2016 March 2015 REVENUE FROM OPERATION SaleofGoods 15,87,44,422 16,92,00,850 Total 15,87,44,422 16,92,00,850 Note 10 Particulars As at 31st, As at 31st, March 2016 March 2015

OTHER INCOME InterestIncome 12,31,439Otherincome 35,43,089 4,30,685

Total 47,74,528 4,30,685 Note 11 Particulars As at 31st, As at 31st, March 2016 March 2015

Purchase Stock in trade Purchaseofgoods 15,44,66,973 16,60,53,038 15,44,66,973 16,60,53,038 Note 12 Particulars As at 31st, As at 31st, March 2016 March 2015

Salaries and wages Salariesandwages 43,74,650 1,40,000DirectorsRemuneration 4,80,000 2,40,000 48,54,650 3,80,000


OPERATION AND OTHER EXPENSES AccountingExpenses 3,600 16,500AdvertisementExpenses 15,606 -BankCharges 3,95,132 1,77,934CertificationCharges 17,723 47,742DirectorSittingFee 1,88,000 -Donations 4,000 -ForeignExchangeLoss - 44,115TransportationExpenses 2,988 -

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Expenditureonincreasedauthorisedsharecapital 7,00,000 5,70,583Expenditureincurredforshiftingregisteredoffice 20,000 -InsuranceCharges 27,531 8,726InterestonIncomeTax 39,528 8,898InternalAuditFee 15,000 15,000ListingExpenses 3,64,800 10,44,130Printing&Stationery 14,973 22,017ProcessingCharges 89,198 41,610ProfessionalCharges 8,500 35,417ProfessionalTax 5,000 12,500RatesandTaxes 79,790 16,598Rent 72,000 36,000TravellingExpenses 74,220 -TelephoneExpenses 2,340 -OtherExpenses 18,190 - Payment to Auditors a)AuditFee 28,625 25,000

Total 21,86,744 21,22,770

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Notes to financial statements.

1. Basis of preparation of financial Statements: TheFinancial statements havebeenprepared under the historical cost convention on accrual basis.ThemandatoryapplicableaccountingstandardsinIndiaandtheprovisionsofthecompaniesAct,2013havebeenfollowedinpreparationofthesefinancialstatements.

Allassetsandliabilitieshavebeenclassifiedascurrentornon-currentaspertheoperatingcyclecriteriasetoutintheRevisedScheduleIIItotheCompaniesAct,2013.

2. Summary of significant accounting policies

a. Use of Estimates:

Thepreparationoffinancialstatementsrequiresestimatesandassumptionstobemadethataffectthereportedamountofassetsandliabilitiesonthedateofthefinancialstatementsandthereportedamountofrevenuesandexpensesduringthereportingperiod.Differencebetweentheactualresultsandesti-matesarerecognizedintheperiodinwhichtheresultsareknown/materialized.

b. Revenue recognition:

Revenueisrecognizedtotheextentthatitisprobablethattheeconomicbenefitswillflowtothecom-panyandrevenuecanbereliablymeasured.

Sale of Products:

Revenueisrecognizedonlywhenitcanbereliablymeasuredanditisreasonabletoexpectultimatecollection.

Interestincomeisrecognizedonatimeproportionbasistakingintoaccounttheamountoutstanding

andtheapplicablerates.

c. Taxation:

CurrentTax:provisionforcurrentincometaxismadeonthetaxableincomeusingtheapplicabletaxratesandtaxlaws.

d. Provisions and Contingent Liabilities

Provisions:Provisionsarerecognizedwhenthereisapresentobligationasaresultofapastevent,itisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandthereisareliableestimateoftheamountoftheobligation.ProvisionsaremeasuredatthebestestimateoftheexpenditurerequiredtosettlethepresentobligationattheBalanceSheetdateand are not discounted to its present value.

e) Foreign Currency Transactions:

The Company translates all foreign currency transactions at Exchange rates prevailing on the date of transactions. Exchange rate differences resulting from foreign exchange transactions settled during the yeararerecognizedasincomeorexpensesintheperiodinwhichtheyarise.

Monetarycurrentassetsandcurrentliabilitiesthataredenominatedinforeigncurrencyaretranslatedattheexchangerateprevalentatthedateofthebalancesheet.TheresultingdifferenceisalsorecordedinthestatementofProfitandloss.

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Notes to Financial Statements

a) Related Party Disclosures:

ListofTransactionswithkeymanagementpersonelduringtheyear: Amount (Rs.)

Particulars Nature of Relation Nature Of 2015-16 2014-15 Transactions

VijayKumarDeekonda Wholetime-director Managerial 480000 240000 Remuneration

b) ContingentLiabilitiesandCapitalCommitments:

For the FY 2015-16 For the FY 2014-15(i) OutstandingGuaranteegivenbythecompanyNil Nil(ii) ClaimsagainstcompanynotacknowledgeasdebtNil Nil(iii) ClaimsmadebythecompanynotacknowledgeasdebtNil Nil

c) Foreign Exchange earnings and outgo For the FY 2015-16 For the FY 2014-15 Earnings in foreign exchange (On accrual basis) IncomefromExportsofGoods 15,87,44,422 13,94,70,923

Expenditure in Foreign exchange (on accrual basis) CostofImports (0) (9,91,14,404) NetEarningsinforeignexchange 15,87,44,422 4,03,56,519

d) Earnings Per Share (EPS)

Basicearningspersharearecalculatedbydividingthenetprofitorlossfortheperiodattributabletoequityshareholdersbytheweightedaveragenumberofequitysharesoutstandingduringtheperiod. Amount (Rs.)

S. No Particulars 2015-16 2014-15

I NetProfitsAttributabletoEquityShareholders 11,53,382 5,64,268

IIWeightedAverageNoofEquitySharesOutstandingduringtheYear 66,404,110 45,40,000

Earnings per Share (I/II) 0.02 0.12

ForRAMASAMY KOTESWARA RAO & CO., ForandonbehalfoftheBoard Chartered Accountants Grandeur Products Limited FRNNO.010396S Vijay Kumar Deekonda Munnangi Jayaram Prasad Director Director DIN-06991267 DIN-03034183C V Koteswara Rao Partner Priyanka Kumari M.No:028353 CompanySecretary Place:Hyderabad Date: 27-05-2016

46


GRANDEUR PRODUCTS LIMITED (CIN:L15500TG1983PLC110115)

RegdOffice:10-2-9&10-2-249,FlatNo703,6thFloor,NasrApartments,ACGuardsHyderabad,Telangana-500004

ATTENDANCE SLIPS(Tobepresentedattheentrance)

33rd ANNUAL GENERAL MEETING ON 30th day of September,2016, AT 11.00 A.M

FolioNo._____________________DPIDNo._________________________ClientIDNo._______________

NameoftheMember:___________________________________________Signature:_______________

NameoftheProxyholder:________________________________________Signature:______________

Electronicvoting(e-voting)facilityisbeingprovidedinrespectoftheResolutionsproposedatthe33rdAGM,inaccordancewithSection108oftheCompaniesAct,2013readwithRule20oftheCompanies(ManagementandAdministration)Rules,2014.PleaseseeNoteNo.15totheNoticedated12thAugust,2016youre-votinguserIDandpasswordareprovidedbelow:

Electronic Voting Event Number(EVEN) User ID Password

Use your existing password

ELECTRONIC VOTING

48


GRANDEUR PRODUCTS LIMITED CIN:L15500TG1983PLC1101157

RegisteredOffice:10-2-9&10-2-249,FlatNo703,6thFloor,NasrApartments,ACGuards,Hyderabad500004Corporateoffice:FlatNo.103,FirstFloor,7-1-24/2/D,Greendale,Ameerpet,Hyderabad-500016

Phone:040-66513251,Email:[email protected],Website:www.grandeurproducts.com

Proxy Form[Pursuanttosection105(6)oftheCompaniesAct,2013andRule19(3)oftheCompanies

(ManagementandAdministration),Rules,2014]NameoftheMember(s) :_________________________________________________________________Registeredaddress :_________________________________________________________________E-mailId :_________________________________________________________________FolioNo./ClientIDNo. :_________________________________________________________________DPIDNo. :________________________________________________________________ I/We,beingthemember(s)ofSharesofGrandeurProductsLimited,herebyappoint

1. Name:___________________________________E-mailId:___________________________________ Address:_____________________________________________________________________________________________________________________Signature:__________________________________ or failing him

2. Name:___________________________________E-mailId:___________________________________ Address:_____________________________________________________________________________________________________________________Signature:__________________________________ or failing him

3. Name:___________________________________E-mailId:___________________________________ Address:_____________________________________________________________________________________________________________________Signature:__________________________________ or failing himAsmy/ourproxy toattendandvote (onapoll) forme/usandonmy/ourbehalf at the33rdAnnualGeneralMeetingoftheCompanytobeheldon10-2-9&10-2-249,FlatNo703,6thFloor,NasrApartments,ACGuardsHy-derabadHyderabad-500004,at11.00A.M.andanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow: S. No Resolutions For Against1 ConsiderandadoptAuditedFinancialStatement,Reportsofthe Board of Directors and Auditors2 To appoint a Director in place of Mr. Munnangi Jayaramaprasad (DIN:03034183)whoretiresbyrotationandbeingeligibleoffers himself for re-appointment.3 RatificationofappointmentofAuditors4 AppointmentofMrs.SrideviDasari(DIN07512095) as an Independent Director

Signedthis_________________________dayof_______________2016

Signature of Shareholder 1.ThisformofProxy,inordertobeeffective,shouldbedulycompletedanddepositedattheRegisteredOfficeoftheCompany,at10-2-9&10-2-249,FlatNo703,6thFloor,NasrApartments,ACGuardsHyderabadHyderabad-500004notlessthanForty-Eight(48)hoursbeforethecommencementofthemeeting.

2.FortheResolutions,ExplanatoryStatementandNotes,pleaserefertotheNoticeoftheAnnualGeneralMeeting.

AffixRevenue Stamp

RouteMaptoreachtheAGMVenueGrandeurProductsLimited

RegisteredOffice:10-2-9&10-2-249,FlatNo703,6thFloor,NasrApartments,ACGuardsHyderabad

Hyderabad,Telangana-500004

Grandeur products limited10-2-9&10-2-249,FlatNo703,6thFloor,NasrApartments,ACGuardsHyderabadHyderabad,Telangana-500004

grandeur products limited - bombay stock exchangegrandeur products limited annual report 2015-16...

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