(Formerly known as Silver Smith India Ltd.) · 2016-09-13 · Common Wealth Games Village Delhi 110092 ANNUAL REPORT 2015- 2016 2 5. To Consider and if thought it, to pass with or

(Formerly known as Silver Smith India Ltd.)

a multi dimensional jewellery solutions company

22nd Annual General Meeting

2015 - 2016

www.orosil.comCIN : L74899DL1994PLC059341

ANNUAL REPORT 2015- 2016

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CIN:L74899DL1994PLC059341RegisteredOf�ice:HemkuntChambers,Flat.620,89,NehruPlace,Delhi-110019Website:www.orosil.com|Email:[email protected],P:0120-4125476

NOTICE IS HEREBY GIVEN THAT THE 22 ND ANNUAL GENERAL MEETING OF THE MEMBERS OF M/S OROSIL SMITHS INDIA LIMITED WILL BE HELD ON FRIDAY, THE 09 TH DAY OF SEPTEMBER, 2016, AT 11.00 A.M AT YWCA OF DELHI, ASHOKA ROAD, NEW DELHI-110001 TO TRANSACT THE FOLLOWING BUSINESS:

ORDINARY BUSINESS:

1.Adoption of Audited Financial Statements for the Financial Year ended on 31 st March, 2016

To receive, consider and adopt the �inancial statements of the Company for the �inancial year ended 31 st March, 2016togetherwiththeReportsofBoardofDirector’sandAuditor’sthereon.

2.Re- appointment of Mr. B.K. Narula as a Director liable to retire by rotation

ToappointadirectorinplaceofMr.BhushanKumarNarula(holdingDIN: 00003629),whoretiresbyrotationandbeingeligible,offershimselfforre-appointment.

3.Appointment of Auditors

To ratify the appointment of auditors and to �ix their remuneration and to pass with or without modi�ication(s), thefollowingresolutionasanOrdinaryResolution:

“RESOLVED THAT pursuant toSection139andotherapplicableprovisions ifany,of theCompaniesAct,2013and the

rules framed there under, asamended fromtime to time andpursuant to theresolutionpassedby the members in the

AnnualGeneralMeetingheldon28th September2015 in respectof appointmentofM/sKumarAggarwal&Associates,

Chartered Accountants (Firm Registration No. 028231N) as statutory auditor of the company for the �ive consecutive

years, the members be and is hereby rati�ies and con�irms the appointment of M/s Kumar Aggarwal & Associates,

CharteredAccountantsasstatutoryauditortoholdof�icefromtheconclusionofthisAGMtilltheconclusionofnextannual

generalmeetingonsuchremunerationandtermsandconditionsasdulyrecommendedbyauditcommitteeandmutually

agreedbetweentheBoardofDirectorsoftheCompanyandthe Auditors.”

SPECIAL BUSINESS:

4.ToConsiderandifthought�it,topasswithorwithoutmodi�ication(s)thefollowingresolutionasanOrdinaryResolution

“RESOLVED THAT pursuanttoSection149,152oranyotherapplicableprovisionsofCompaniesAct,2013 readwithThe

Companies (Appointment and Quali�ication of Directors) Rules, 2014 and Schedule IV of the Act including statutory

modi�ication and re-enactment thereof for the time being in force,Mr. NikkhhilArora, a non executive Independent

Directorofthecompany,whohassubmittedadeclarationthathemeetsthecriteriaforindependenceasprovidedinSection

149(6)oftheActandwhoiseligibleforappointment,beandisherebyappointedasanIndependentDirectoroftheCompany,

foratermof�iveconsecutiveyearsfromthedateofthisAnnualGeneralMeeting,notliabletoretirebyrotation.

By Order of the BoardFor Orosil Smiths India Limited

Date: August 10, 2016Place: New Delhi

Sd/-B.K. Narula

Managing DirectorDIN: 00003629

Apartment No. 501, Tower-22, Common Wealth Games Village Delhi 110092


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5.ToConsiderandifthought�it,topasswithorwithoutmodi�ication(s)thefollowingresolutionasanSpecialResolution. “RESOLVEDTHATpursuanttotheprovisionsofSection180(1)(a)andotherapplicableprovisions,ifany,oftheCompaniesAct,

2013,andtherelevantrulesframedthereunderandapplicableprovisionsofSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(includinganystatutorymodi�ication(s)orre-enactmentthereof,forthetimebeinginforce),andtheenablingprovisionsinMemorandumofAssociationandArticlesofAssociationoftheCompany,approvalandconsentofthemembersoftheCompanybeandisherebygrantedtotheBoardofDirectors(hereinafterreferredtoas“theBoard’’,whichexpressionshallbedeemedtoincludeanyCommitteedulyconstituted/tobeconstitutedbytheBoardtoexerciseitspowers,includingthepowersconferredbythisResolution)toleaseorsellthewholeproperty,substaintaillythewholeoranypartthereofsituatedatA-89,Sector-2,Noida-201301.

RESOLVEDFURTHERTHATforthepurposeofgivingeffecttothisresolution,theBoardbeandisherebyauthorisedtodoallsuch

acts,deeds,mattersandthingsasitmayinitsabsolutediscretiondeemednecessary,proper,ordesirableexpedienttogiveeffecttothisresolution.”

NOTICE

NOTES:

1. ExplanatoryStatementpursuanttoSection102oftheCompaniesAct,2013,inrespectof thespecialbusinesssetoutaboveisannexedhereto.

2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY. ApersoncanactasProxyonbehalfofmembersnotexceeding�ifty(50)andholdingintheaggregatenotmorethan10%ofthetotalsharecapitalof theCompany.Members holdingmore than10%of the total share capital of theCompanymay appoint single person asproxywhoshallnotactasproxyforanyothermember.

TheinstrumentofProxyinordertobeeffective,shouldbedepositedattheRegisteredOf�iceoftheCompany,dulycompletedand signed, not later than forty-eight hours before the commencement of the meeting. Proxies submitted on behalf ofcompanies,societies,etc.mustbesupportedbyanappropriateresolution/authority,asapplicable. AProxyForm(FormNo.MGT-11)isannexedtothisreport.

3. Members/proxies/ authorized representative should bring duly �iled attendance slips enclosed herewith to attend the

meeting.

4. RoutemapofvenueofAnnualGeneralMeetingisattachedhereforyourreference.

5. Corporate members are intending to send their authorized representatives to attend the meeting are requested to send

certi�iedcopyoftheboardresolutiontothecompany,authorizingtheirrepresentativetoattendandvoteontheirbehalfat the

meeting.

6. The Register of Directors and Key managerial personnel and their shareholding maintained under section 170(1) of

CompaniesAct,2013willbeavailableforinspectionbythememberattheAGM.

7. TheRegisterofcontractsorarrangementsinwhichdirectorsareinterestedmaintainedundersection189ofCompaniesAct,

2013willbeavailableforinspectionbythemembersattheAGM.

nd8. The Register of Members and Share Transfer Books of the Company shall remain closed from 02 September, 2016 to th09 September, 2016 (both days inclusive).

9. Themembersarerequestedtosendthetransfers,changeofaddress,bankmandatesandotherrelatedcorrespondencetothe

RegistrarsandShareTransferAgents,M/s. SkylineFinancial ServicesPvt.Limited,D-153A,Okhla IndustrialArea,Phase-I,

NewDelhi – 110020.

nd10. ElectroniccopyoftheAnnualReport andNoticeof22 AnnualGeneralMeetingofthecompanyalongwithAttendanceSlip,Proxy formand instructionofE-voting isbeingsent toall thememberswhoseemail IDsareregisteredwith theCompany/

address,physicalcopiesoftheAnnualReportisbeingsentinthepermittedmode.

11. Topromotegreeninitiative,membersarerequested tobringtheircopiesoftheAnnualReporttothemeeting.Membersmayalso note that the Annual Report for FY 2015-16 will also be available on company’s website “www.orosil.com” for theirdownload.

12. Withaviewtousingnaturalresourcesresponsibility,werequest toshareholders toupdate theire-mail addresswith their

depositoryparticipantstoenablethecompanysendcommunicationelectronically.

13. Membersseekinganyclari�ication/informationrelatingtoAnnualAccountsarerequestedtowriteattheRegisteredOf�iceof

theCompanyat-leastoneweekbeforedateofmeeting.

14. Incaseofjointshareholdersattendingthemeeting,thememberswhosenameappearsasthe�irstholderinorderofnamesas

perregisterofmembersofthecompanywillbeentitledtovote.

15.Pursuant to provisions of Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and

Administration)Rules,2014,asamendedbytheCompanies(ManagementandAdministration)AmendmentRules,2015and

Regulation44ofSEBI(ListingobligationandDisclosuresRequirements)Regulation,2015theCompanyispleasedtoprovide

membersfacilitytoexercisetheirrighttovoteat theAnnualGeneralMeeting(AGM)byelectronicmeansandthebusiness

may be transacted through e-Voting Services. The facility of casting the votes by themembers using an electronic voting

system from aplace other than venue of theAGM (“remote e-voting”)will beprovidedbyNational SecuritiesDepository

Limited(NSDL).


Depositoriesunlessanymemberhasrequestedforahardcopyofthesame.Formemberswhohavenotregisteredtheiremail

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16.Facilityforvotingthroughballotpaper shallalsobemadeavailableatthemeetingandmembersattendingthemeetingwho

havenotalreadycasttheirvotebyremotee-votingshallbeabletoexercisetheirrightatthemeeting throughballotpaper.

17.Thememberswhohavecasttheirvotebyremotee-votingpriortotheAGMmayalsoattendtheAGMbutshallnotbeentitled

tocasttheirvoteagain.

18. The e-voting period commences on Tuesday, September 06, 2016 (9:00 am) and ends on Thursday, September 08, 2016

(5:00pm). DuringthisperiodshareholdersoftheCompany,maycasttheirvoteelectronically.Attheendofe-votingperiod

thefacilityshallforthwithbeblocked. Oncethevoteonaresolutioniscastbytheshareholder,theshareholdershallnotbe

allowedtochangeitsubsequently.Thecut-offdateofe-votingisSeptember03,2016.

19. Instructions for e-voting are as under:

I. TheprocessandmannerofremoteE-votingareasunder

A. IncaseaMemberreceivesanemailfromNSDL[formemberswhoseemailIDsareregisteredwiththeCompany/Depository

(i) OpenemailandopenPDF�ileviz;“remotee-voting.pdf”withyourClientIDorFolioNo.aspassword.ThesaidPDF�ile contains your user ID and password/PIN for remote e-voting. Please note that the password is an initialpassword.

(ii) LaunchinternetbrowserbytypingthefollowingURL:https://www.evoting.nsdl.com/

(iii) ClickonShareholder- Login

(iv) PutuserIDandpasswordasinitialpassword/PINnotedinstep(i)above.ClickLogin.

Passwordchangemenuappears.Changethepassword/PINwithnewpasswordofyourchoicewithminimum8digits/charactersor combination thereof.Notenewpassword. It is strongly recommendednot to share yourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordcon�idential.

(vi) Homepageofremotee-votingopens.Clickonremotee-voting:ActiveVotingCycles.

(vii) (E-VotingEventNumber)of“OrosilSmithsIndiaLimited

(viii) Nowyouarereadyforremotee-votingasCastVote pageopens.

(ix) Castyourvotebyselectingappropriateoptionandclickon“Submit”andalso“Con�irm”whenprompted.

(x) Uponcon�irmation,themessage“Votecastsuccessfully”willbedisplayed.

(xi) Onceyouhavevotedontheresolution,youwillnotbeallowedtomodifyyourvote.

(xii) Institutionalshareholders(i.e.otherthanindividuals,HUF,NRIetc.)arerequiredtosendscannedcopy(PDF/JPGFormat)oftherelevantBoardResolution/Authorityletteretc.togetherwithattestedspecimensignatureoftheduly authorized signatory(ies) who are authorized to vote, to the Scrutinizer through e-mail [email protected]@nsdl.co.in

B. IncaseaMemberreceivesphysicalcopyoftheNoticeofAGM[formemberswhoseemailIDsarenotregisteredwith

theCompany/DepositoryParticipants(s)orrequestingphysicalcopy]:

(i) InitialpasswordisprovidedatthebottomoftheAttendanceSlipfortheAGM:

EVEN (Remote e-voting Event Number) USER ID PASSWORD/PIN

(ii) PleasefollowallstepsfromSl.No.(ii)toSl.No.(xii)above,tocastvote.

II. In case of any queries, youmay refer the Frequently Asked Questions (FAQs) forMembers and remote e-voting usermanualforMembersavailableatthedownloadssectionofwww.evoting.nsdl.com orcallontollfreeno.:1800-222-990

III.IfyouarealreadyregisteredwithNSDLforremotee-votingthenyoucanuseyourexistinguserIDandpassword/PINforcasting your vote. If you forgot your password, you can resetyour password byusing “ForgotUserDetails/Password”optionavailableonwww.evoting.nsdl.comorcontactNSDLatthefollowingtollfreeno.:1800-222-990


Participants(s)]:

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IV.Youcanalsoupdateyourmobilenumberande-mailidintheuserpro�iledetailsofthefoliowhichmaybeusedforsendingfuturecommunication(s).

V.ThevotingrightsofmembersshallbeinproportiontotheirsharesofthepaidupequitysharecapitaloftheCompanyason the cut-off date of Saturday, September 03, 2016. Any person, who acquires shares of the Company and becomememberoftheCompanyafterdispatchofthenoticeandholdingsharesasofthecut-offdate,mayobtaintheloginIDandpasswordbysendingarequestatevoting@nsdl.co.in [email protected].

VI. Amembermay participate in theAGMeven after exercisinghis right tovote through remotee-voting but shallnotbeallowedtovoteagainattheAGM.

VII. Aperson,whosename is recorded in theregisterofmembersor in theregisterofbene�icialownersmaintainedby thedepositoriesasonthecut-offdatei.e.September03,2016 only shallbeentitledtoavailthefacilityofremotee-votingaswellasvotingattheAGMthrough ballotpapers.

VIII. The Company has appointed Ms. Navneet Kaur, proprietor of M/s. N. K. Chandok & Associates, Practicing CompanySecretary (COP No.: 12930) as Scrutinizer to scrutinize and conduct the voting and e-voting process in fair andtransparentmanner.

IXTheChairmanshall,attheAGM,attheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvotingwiththeassistanceofscrutinizer,byuseof“BallotPaper”forallthosememberswhoarepresentattheAGMbuthavenotcasttheirvotesbyavailingtheremotee-votingfacility.

GeneralMeetingandthereafterunblock thevotescast throughremotee-votingin thepresenceofat least twowitnessesnot in the employment of the Company and shall make, not later than three days of the conclusion of the AGM, aconsolidatedscrutinizer’s reportofthetotalvotescastinfavor oragainst,ifany,totheChairmanorapersonauthorizedbyhiminwriting,whoshallcountersignthesameanddeclaretheresultofthevotingforthwith.

VI. The results declared by Chairman along with the Scrutiniser’s Report shall be placed on Company’s website atwww.orosil.comandonthewebsiteofNSDL immediatelyaftertheresultisdeclaredbythe chairmanandthesamewillbecommunicatedtotheBombayStockExchange(BSE)wherethesharesoftheCompany arelisted.


Date: August 10, 2016Place: New Delhi Sd/-

B.K. NarulaManaging Director

DIN: 00003629Apartment No. 501, Tower-22,

Common Wealth Games Village Delhi 110092

EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013

The Board of directors at their meeting held on August 10, 2016 recommended for appointment of Non ExecutiveIndependentDirectorsofthecompanywhoshallholdof�iceforatermupto�iveconsecutiveyearsontheboardandisnotliabletoretirebyrotation.Mr.NikkhhilArorahasgivenadeclarationtotheboardthathemeetsthecriteriaofindependenceasprovidedundersection149(6)oftheAct.Andinopinionoftheboard,heful�illstheconditionsspeci�iedinthisActforsuchanappointment.

ThemembersarefurtherinformedthatpursuanttoSection149,152 oranyotherapplicableprovisionsofcompaniesAct,2013readwithTheCompanies(AppointmentandQuali�icationofDirectors) Rules,2014approvalofmembersisrequiredbywayofOrdinaryResolution.

Accordingly your board recommends the resolution set out in item no. 4 of the accompanying notice for approval ofmembersofthecompanybywayofOrdinaryResolution.

NoneoftheDirector,Manager,KeyManagerialPersonnelandtheirrelativesisconcerned�inanciallyorotherwise.



Sd/-B.K. Narula


Apartment No. 501, Tower-22, Common Wealth Games Village Delhi 110092


X.TheScrutinizershallaftertheconclusionofvotingatthegeneralmeeting,will�irstcountthevotescastattheAnnual

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I) Item No. 4

ii) Item No. 5Section180(1)(a)oftheCompaniesAct,2013mandatesthattheBoardofDirectorsofaCompanyshallexercisethepowertosell,leaseorotherwisedisposeofthewholeorsubstantiallythewholeoftheundertakingofthecompany,onlywiththeapprovalofthemembersoftheCompanybywayofspecialresolution.Themembersarefurtherinformedthatpursuanttosec.180(1)(a)approvalofmembersisrequiredtosellorleaseoAccordinglyyourboardrecommendstheresolutionsetoutinitemno.5oftheaccompanyingnoticeforapprovalofmembersofthecompanybywayofSpecialResolution.NoneoftheDirectors,KeyManagerialPersonneloftheCompanyandtheirrelativesisconcernedorinterested,�inanciallyorotherwise,intheresolution.

Additional Information of Director on Re-appointment under Regulation 36(3) of SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015

1. MR. BHUSHAN KUMAR NARULA (MANAGING DIRECTOR)

Mr.B.K.NarulaisaManagingDirectorofOrosilSmithsIndiaLimited.

Mr.BhushanKumarNarulawaschairmanofJewelleryDesign&TechnologyInstitute(JDTI),amodelinstitutesetuptoprovidethemuchneededskilledprofessionalstotheever-growingindustry,wasconceptualizedbyitsparentcompanyOrosilSmithsIndiaLimitedandManagingDirectorofM/sOrosilSmithsIndiaLimitedformerlyknownasSilverSmithIndiaLimitedsinceincorporationwith15yearsofexperienceinrelevant�ield.Nature of expertise in speci�ic functional Area:

FinanceandJewelleryDisclosure of relationship between directors interse:-

NorelationshipwithanyotherdirectorsexceptMs.RitaNarula,WholeTimeDirectorofthecompanyaswife.Names of Listed Entities (other than Orosil) in which Mr. B.K. Narula holds the directorship and the committee membership

NilShareholding in the Company

14,08,000shares

Last Drwan Remuneration:- Rs.12p.a.

Date of Appointment:-01.06.1994

Date of Birth and Age:-28.02.1954,62Years

2. MR. NIKKHHIL ARORA

Mr.NikkhhilAroraisabusinessmaninvolvedinthebusinessofFoodindustriesunderthenameandstyleofFronzenpackedfoodindustriesandQuali�iedasHighSchoolinstudies.HeisapersonalityofhighlyesteemedandsocialpersonwithLeadershipskills,DecisionmakingandmanyotherqualitieswhichsuitedhimforthepostofNonExecutiveIndependentDirectoroftheCompany.

Nature of expertise in speci�ic functional Area

PackeagedFoodIndustries

Disclosure of relationship between directors interse:-

Norelationshipwithanyotherdirectors

Names of Listed Entities (other than Orosil) in which holds the directorship and the committee membershipMr. B.K. Narula

Nil

Shareholding in the Company

Nil

Date of Birth and Age:-01.07.1979,37Years


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To,

Themembers

OrosilSmithsIndiaLimited

YourDirectorshavepleasureinpresenting22ndAnnualReporttogetherwiththeAuditedFinancialStatementsalongwiththe

ReportofAuditorsforthe�inancialyearendedMarch 31 st,2016.

FINANCIAL HIGHLIGHTS Amount (Rs. In Lacs)

Particulars Financial year ended March 31, 2016

Financial year ended March 31, 2015

IncomefromOperations 319.17 364.05

OtherIncome 4.08 8.00

TotalIncome 323.25 372.05

TotalexpenditureexcludingDepreciation

318.67 351.14

Depreciation 29.99 47.41Totalexpenditure 348.66 398.55Net Loss Before Tax & ExceptionalItem

(25.41) (26.50)

ExceptionalItem 0 0NetLossBeforeTax (25.41)TaxExpenses:CurrentTax 0 0DeferredTax 0 0

PreviousYearAdjustment 0 1.16

Pro�it/(Loss)afterTax (25.41) (27.66)BalancecarriedtoBalanceSheet

SHARE CAPITAL

DuringtheyeartherehasbeennochangeintheAuthorized,SubscribedandpaidupsharecapitaloftheCompany.Thepaidupsharecapitalofthecompany ason31st March2016wasRs.52,200,000/- dividedinto8263200EquitySharesofRs.5/- eachaggregatingtoRs.4,13,16,000 and1088400PreferenceSharesofRs.10/- each aggregatingtoRs.1,08,84,000.

DIVIDEND

Due to losses incurred by Company, your Directors have considered it �inancially prudent not to declare any dividend.Therefore,nodividendhasbeenrecommendedfortheyearendedMarch31st,2016.

TRANSFER OF RESERVES

TheCompanyhasnottransferredanyamounttoreservesandsurplus.

STATE OF COMPANY’S AFFAIRS AND FUTURE OUTLOOK

OrosilSmithsIndiaLimitedisacompanyincorporatedon01st June1994primarilyengagedinthebusinessofManufacturing,fabrication,Sale,Purchase,Traders/DealersofallkindsofGold,Silver,SilverOrnaments/Utensilsandallotheritemsof Gold,

Silver and allied business. During the year under review, the Income from operations is Rs. 323.25 Lacs (Previous Year:Rs.372.05Lacs)registeringalossof13.12%.

Pro�itafterTax(PAT)hasbeenalossofRs.25.41 Lacsascomparedtoapro�itofRs.27.66 Lacsinpreviousyear. Thedirectorsaremakingeffortstoenhancethebusinessactivitiesandarehopefulforgoodresultsinthecomingyear.

CHANGE IN NATURE OF BUSINESS, IF ANY

Therehasbeennochangeinnatureofbusinessofyourcompanyduringtheyearunderreview.


(26.50)

(25.41) (27.66)

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DETAILS OF SUBSIDIARIES/ JOINT VENTURE AND ASSOCIATES COMPANY

TheCompanydoesnothaveany Subsidiary,JointVentureandAssociatesCompany.Duringtheyearunderreviewnocompanyhas becomeorceasedtobeitssubsidiary,jointventureorassociateCompany.

DIRECTORS

PursuanttoSection152(6) oftheCompaniesAct,2013,Mr.BhushanKumarNarulawillretireattheensuingAnnualGeneralMeetingandbeingeligible,seekhimselfforre-appointment.

thDuringtheyearMr.VineetAggarwal wasappointedasnonExecutiveindependentDirector bytheboardofdirectorson 30thApril, 2015 and he was regularized at the Annual general Meeting held on 28 September, 2015 for a period of �ive

consecutiveyears w.e.f.September28,2015

Mr.BhushanKumarNarula,ManagingDirectorofthecompanydulyapprovedandrecommendedbyboardofDirectorsandNomination and remunerationCommittee, re appointed fora periodof5 yearsw.e.f. April 01,2015at theAnnualGeneralMeetingheldonSeptember28,2015.

Ms.RitaNarulaWholeTimeDirectorofthecompanydulyapprovedandrecommendedbyboardofDirectorsandNominationandremunerationCommittee,reappointedforaperiodof5yearsw.e.f.April01,2015attheAnnualGeneralMeetingheldonSeptember28,2015.

KEY MANAGERIAL PERSONNEL

During the year under review pursuant to Section 203 of CompaniesAct, 2013Mr. Sanjay Banawas appointed as a ChiefFinancialOf�icer(CFO)ofthecompanybytheBoardofDirectorsw.e.f.April30,2015.

Ms.PratibhaAnandhasresignedasaCompanySecretaryoftheCompanyw.e.f.October01,2015 theboardplacesonrecorddeepappreciationandvaluableguidanceprovidedbyherduringher tenure andMs.RakhiManchandawasappointed asaCompanySecretary(KMP)bytheBoardofDirectorsw.e.f.October28,2015.inordertocomplywithSection203ofCompaniesAct,2013.

NUMBER OF BOARD MEETINGS AND ATTENDANCE BY EACH DIRECTOR

The Board of Directors of the companymet Six (6) times on 30.04.2015, 28.05.2015, 10.08.2015, 28.10.2015, 28.12.2015,10.02.2016 during the �inancial Year 2015-2016. The details ofwhich is given in Corporate Governance report.Maximumintervalbetweenanytwomeetingsdidnotexceed120daysasprescribedinCompaniesAct,2013 and1meetingwasheldineverycalendarQuarterinthe�inancialyear2015-2016

DIRECTOR’S RESPONSIBILITY STATEMENT

AsrequiredunderSection134(3)(c) and134(5) oftheCompaniesAct,2013, yourDirectorsherebystate that:

i. inthepreparationofAnnualAccountsforthe�inancialyearended31stMarch,2016, theapplicableAccountingStandardshavebeenfollowed alongwithproperexplanationrelatingtomaterialdepartures.;

ii. theDirectorshad selectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatare reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company at the end of the�inancialyearandofthepro�itorlossoftheCompanyfortheyearunderreview;

iii. theDirectorshad takenproperandsuf�icientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsof thisAct forsafeguarding theassetsof theCompanyand forpreventinganddetecting fraudandotherirregularities;

stiv. theDirectorshadpreparedtheAnnualAccountsfortheyearended31 March,2016 onagoingconcernbasis.

v. theDirectors had laid down internal �inancial controls tobe followed by theCompany and that such internal �inancialcontrolsareadequateandwereoperatingeffectively;

vi. theDirectorshaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsand thatsuchsystemswereadequateandoperatingeffectively.

DECLARATION BY INDEPENDENT DIRECTOR(S)

ThecompanyhasreceivednecessarydeclarationfromIndependentDirectorsofthecompany thathe/she meets thecriteriaofindependenceaslaiddownunderSection149(6)oftheCompaniesAct,2013.


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BOARD EVALUATION

EXTRACT OF ANNUAL RETURN

Thedetails formingpartoftheextractoftheAnnualReturninFormMGT-9,asrequiredunderSection92oftheCompaniesAct,2013,areannexedherewithas“Annexure-A”.

RELATED PARTY TRANSACTIONS

All relatedpartytransactionsmadeduring the �inancialyear2015-16wereonarm's lengthbasisandwere in theordinarycourseofbusiness.DetailsofrelatedpartytransactionisinAOC-2asprescribedundersection188ofcompaniesAct,2013isannexedherewithas“Annexure –B”

All Related Party Transactions are placed before the Audit Committeeand also the Board for approval on quarterly basis,specifyingthenature,valueandterms&conditionsoftransactions

AUDITORS

Pursuant to theprovisions ofSection 139of theAct and the rules framed thereunder,M/sKumarAggarwal&Associates,Chartered Accountant (Firm registration No. 028231N) were appointed as Statutory Auditor of the company from the

st thconclusion of the 21 Annual General Meeting (AGM) of the Company held on 28 September, 2015 for a term of �iveconsecutive years subject to rati�ication by members at every AGM. The company hereby rati�ies and con�irms theappointmentofM/sKumarAggarwal&Associates,statutoryauditorfromtheconclusionofthisAnnualGeneralMeetingtilltheconclusionofnextAnnualGeneralMeetingonsuchremunerationasmaybemutuallyagreedbetweentheBoardandtheAuditor.TheAuditorbeingeligible,yourboardrecommendstoratifytheirappointment.

SECRETARIAL AUDITOR

The Board had appointed Ms. Navneet Kaur, Practicing Company Secretary, of M/s. N. K. Chandok & Associates (COP No.12930)toconductSecretarialAuditforthe�inancialyear2015-2016.TheSecretarialAuditReport forthe�inancialyearendedMarch31,2016 isannexedherewithmarkedasAnnexure C tothisReport.

COMMENTS ON AUDITORS REPORT

Therearenoquali�ication,reservationoradverseremarkordisclaimermadei.bytheauditorinhisreport;andii.bythe companysecretaryinpracticeinhissecretarialauditreport.

INTERNAL AUDITOR

stTheBoardhadappointedM/sDNA&Co.,CharteredAccountantasInternalAuditorforthe�inancialyearendedon31 March2016toconductinternalauditoftherecordsofthecompanypursuanttosection138ofCompaniesAct,2013.

COST AUDITOR

TheCompanywasnotrequiredtoappointcostauditorforthe�inancialyear2015-2016pursuanttosection148ofCompaniesAct,2013


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Pursuant to the provisions of the Companies Act, 2013 and Regulation 19 of the SEBI (Listing Obligations and DisclosureRequirements)Regulations,2015,theBoardhascarriedoutanevaluationofitsownperformance,thedirectorsindividuallyaswellastheevaluationof theworkingof itsCommittees.TheBoardhas framedaperformanceevaluationpolicy forevaluating itsownperformanceanditsCommittees,ExecutiveDirector,Non-executiveDirectorsincludingIndependentDirectors.BasedonthePerformanceEvaluationcarriedoutbytheBoardoftheCompany,theperformanceoftheBoardanditsCommitteesandindividualDirectoroftheCompanywasfoundsatisfactory.

TheevaluationoftheIndependentDirectorswascarriedoutbytheentireBoardandthatoftheChairmanandNon-IndependentDirectorswascarriedoutbytheIndependentDirectors.

IndependentDirectorswereevaluatedonthefollowingparameterssuchasAttendanceandparticipationsintheMeetingsandtimelyinputs on theminutes of themeetings, adherence to ethical standards & code of conduct of Company and disclosure of non-independence, as andwhen it exists and disclosure of interest, Interpersonal relationswith other directors andmanagement,Understanding of the Company and the external environment in which it operates and contribution to strategic direction,Safeguardinginterestofwhistle-blowersundervigilmechanismandSafeguardofcon�identialinformation.

TheDirectorsweresatis�iedwiththeevaluationresults,whichre�lectedtheoverallengagementoftheBoardanditsCommitteeswiththeCompany.

NOMINATION & REMUNERATION COMMITTEE

The Board has, on the recommendation of the Nomination & Remuneration Committee, framed a policy for selection andappointmentofDirectors,SeniorManagementandtheirremuneration.ThepolicyisworkinginaccordancewiththesizeandcompositionofBoard/managementofcompany.

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

The Company was not required to constitute corporate social responsibility committee pursuant to section 135 of theCompaniesAct,2013duringthe�inancial year2015-2016

DEPOSITS

TheCompanyhasnotaccepted/receivedanyDepositswithinthemeaningofSection73oftheCompaniesAct,2013,duringthe�inancialyearended31stMarch2016.TherewasnooutstandingpublicdepositasatMarch31,2016andtherewerenounclaimeddepositsasatMarch31,2016.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Thedetailsoftheloans,guaranteesorinvestmentsgivenormadebytheCompanyascoveredundertheprovisionsofSection

186oftheCompaniesAct,2013aregiveninthenotestothe�inancialstatements.

POLICIES OF COMPANY

Yourcompanyhaspostedthefollowingdocumentsonitswebsitewww.orosil.com

1.CodeofConductandEthics

2.WhistleBlowerPolicy

3.CodeofInternalProceduresandConductforRegulating,MonitoringandReportingofTradingbyInsiders.

4.ArchivalPolicy

5.Policyoncriteriafordeterminingmaterialityofevents.

6.RiskManagementPolicy

7.FamiliarizationProgrammeforIndependentDirectors.

8.CodeofFairdisclosures

COMPOSITION OF AUDIT COMMITTEE

13

TheDetailedcompositionofAuditCommitteeconstitutedundersection177ofCompaniesAct,2013isgivenunderCorporateGovernanceReportformingpartofthisAnnualReport.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

Thereareno signi�icantmaterialorderspassedbytheRegulators/CourtswhichwouldimpactthegoingconcernstatusoftheCompanyanditsfutureoperations.

RISK MANAGEMENT POLICY

In compliance with the requirement of the companies Act, 2013 the company has put in place risk minimization andassessment procedures. In order to effectively and ef�iciently manage risk and address challenges. The company hasformulatedRiskmanagementpolicy.

TheobjectiveofRiskManagementatOrosil Smiths India Limited is to create andprotect shareholdervalue byminimizingthreatsorlosses,andidentifyingandmaximizingopportunities.Anenterprisewideriskmanagementframeworkisappliedsothateffectivemanagementofrisksisanintegralpartofeveryemployee’sjob.

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


10

Therearenoparticularsasrequiredundersection134oftheCompaniesAct,2013readwithRule8(3)readwithCompanies(Accounts)Rules,2014relatingtoconservationofenergy,research&development,technologyabsorptionduringtheyearunderreview.

Howeverthetotalforeignexchangeusedandthetotalforeignexchangeearnedduringtheyearascomparedtotheprevious�inancialyearhasbeenprovidedhereunder:

Foreign Exchange Earnings & Outgo Current Year (2015-16) Previous Year (2014-15)

In�low - 406671

Out�low - -

VIGIL MECHANISM

PARTICULARS OF EMPLOYEES

In accordance with Section 197(12) of the Companies Act, 2013 readwith rule 5(2) of the Companies (Appointment and

RemunerationofManagerialPersonnel)Rules,2014,therearenoemployeesinreceiptofremunerationexceedingthelimits

prescribedtherein.

i.Mr.B.K.Narula,ManagingDirectorofCompanyisreceivingrupeeoneasamonthlysalarywithnootherallowance.

ii. Mrs. Rita Narula, Whole Time Director of Company is receiving rupees forty �ive thousand per month with no otherallowance& bene�its.

iii.Ms RakhiManchanda,CompanySecretaryisreceivingrupeestwentythousandpermonthwithnootherbene�its

iv.Mr.SanjayBana,Chief�inancialof�icerisreceivingrupeesthirtytwothousandtwohundred�iftyrupeeswithnootherbene�its.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY

No material changes and commitments affecting the �inancial position of the Company occurred between the end of the�inancialyeartowhichthis�inancialstatementsrelateandthedateofthis report.


LISTING OF SHARES

TheEquitySharesoftheCompanyarelistedattheBombayStockExchangeLimited.TheAnnualListingFeeforthe�inancialyear2015-16 hasbeenpaidtotheStockExchangewheretheSharesoftheCompanyarelisted.

ACKNOWLEDGEMENT

WeplaceonrecordoursincereappreciationtotheemployeesoftheCompanyatalllevelsfortheirco-operationanddedicatedservices.Wealsothankallourcustomersandsupplierswhoarealwaysco-operative.

We also express our sincere thanks to Bankers, Financial Institutions and the Shareholders for their continued support.


Sd/-

Sd/-

Rita Narula

B.K. Narula

Whole Time Director

Chairman & Managing Director

DIN: 00006096

DIN: 00003629

Apartment No. 501, Tower-22,

Apartment No. 501, Tower-22,

Common Wealth Games Village New Delhi 110092

Common Wealth Games Village New Delhi 110092Date: August 10, 2016Place: New Delhi 11

SWEAT EQUITY SHARES AND EMPLOYEE OPTION SCHEME

TheCompanyhasnotissuedanysweatequitysharesandemployeeoptionschemeduringtheyearunder review.

YourCompanyhasestablishedaVigilMechanism(WhistleBlowerPolicy)aspertherequirementsofSection177oftheCompaniesAct,2013andRegulation22oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.ThevigilmechanismisachannelthroughwhichtheDirectorsandEmployeesoftheCompanyhaveasecuremechanismtoreportgenuineconcernsincludinganyunethicalbehavior,actualorsuspectedfraudstakingplaceintheCompanyforappropriateactionorreporting.Thevigilmechanism(WhistleBlowerPolicy)maybeaccessedontheCompany’swebsite“www.orosil.com.”

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013TheCompanyalwaysEndeavour’stocreateandprovideanenvironmentthatisfreefromdiscriminationandharassmentincludingsexualharassment.TheCompanyhasinplaceanAntiSexualHarassmentPolicyinlinewiththerequirementsoftheSexualHarassmentofWomenattheWorkplace(Prevention,Prohibition&Redressal)Act,2013.InternalComplaintsCommittee(ICC)hasbeensetuptoredresscomplaintsreceivedregardingsexualharassment.Allemployees(permanent,contractual,temporary,trainees)arecoveredunderthispolicy.Duringtheyearunderreview,nocomplaintswerereceivedpursuanttotheSexualHarassmentofWomenatWorkplace(Prevention,Prohibition&Redressal)Act,2013

ANNEXURE - A

Form No. MGT-9

EXTRACT OF ANNUAL RETURN

As on the nancial year ended on March 31, 2016

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules,

2014]

(i) CIN : L74899DL1994PLC059341

(ii) RegistrationDate : 01/06/1994

(iii) NameoftheCompany : OROSILSMITHSINDIALIMITED

(iv) Category/Sub-CategoryoftheCompany :PublicCompanyLimitedbyShares

(v) AddressoftheRegisteredof�ice :620,HemkuntChambers,89,NehruPlace,andcontactdetails NewDelhi-110019

Tel:0120-2540571-72-73,Fax:+91-120-2540578Email- [email protected],W-www.orosil.com

(vi) Whetherlisted company(Yes/No) : Yes

(vii) Name,AddressandContactdetailsof : M/s.SkylineFinancialServicesPvt.LtdRegistrarandTransferAgent,ifany D-153A,FirstFloor,OkhlaIndustrialArea

Phase-1,NewDelhi-110020Tel:+91-11-26812682,26812683,64732681-88E-mail:[email protected]:www.skylinerta.com

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:

Name and Description of main products/services NIC Code of the % to total turnover of

Product/service the company

GemsandJewelry 321 100

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sr. NAME AND CIN/GLN Holding/ % of shares ApplicableNo. ADDRESS OF THE Subsidiary/ held Section

COMPANY Associate

NIL


12

IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

i) Category-wise Share Holding

Sr Category of Shareholder No. of shares held at the beginning of the year

(As on April 1, 2015) FV= Rs. 5/-No. of shares held at the c losingof the year

(As on March 31, 2016) FV= Rs. 5/-%

Nochange

Physical Demat Total % of Physical Demat Total % ofduring

Total Total the yearshares shares

(A) Promoter

(1) Indian

(a) Individuals/H.U.F 0 4603114 4603114 55.71 0 4760754 4760754 57.61 1.90

(b) Cental/State Government(s) 0 0 0 0.00 0 0 0 0 0

(c) Bodies Corporate 0 1399000 1399000 16.93 0 1505185 1505185 18.22 1.29

(d) Financial Institutions/Banks 0 0 0 0.00 0 0 0 0 0

(e) Any Other (specify) 0 0 0 0.00 0 0 0 0 0

Sub-Total (A)(1) 0 6002114 6002114 72.64 0 6265939 6265939 75.83 3.19

(2) Foreign

(a) Non Resident Individuals/

Foreign Nationals 0 0 0 0.00 0 0 0 0.00 0

(b) Bodies Corporate 0 0 0 0.00 0 0 0 0.00 0

(c) Institutions 0 0 0 0.00 0 0 0 0.00 0

(d) Qualied Foreign Investor 0 0 0 0.00 0 0 0 0.00 0

(e) Any Other (specify) 0 0 0 0.00 0 0 0 0.00 0

Sub-Total (A)(2) 0 0 0 0.00 0 0 0 0.00 0

Total holding of Promoter and

Promoter Group (A)=(A)(1)+(A)(2) 0 6002114 6002114 72.64 0 6265939 6265939 75.83 3.19


13

Category-wise Share Holding (contd.)

S.No

Category of Shareholder

No. of shares held at the beginning of the year (As on April 1, 2015)FV= Rs. 5/-

No. of shares held at the c losingof the year (As on March 31, 2016) FV= Rs. 5/-

% change during the year

Physical Demat Total % of total shares

Physical Demat Total % of total shares

(B) Public Shareholding

1. Institution

a) Mutual fund0 0 0 0 0 0 0 0 0

b) Banks / FI0 0 0 0 0 0 0 0 0

c) Central Govt0 0 0 0 0 0 0 0 0

d) State Govt(s)0 0 0 0 0 0 0 0 0

e) Venture Capital Funds0 0 0 0 0 0 0 0 0

f) Insurance Companies0 0 0 0 0 0 0 0 0

g) FIIs0 0 0 0 0 0 0 0 0

h) Foreign Venture Capital Funds

0 0 0 0 0 0 0 0 0

i) Others (specify0 0 0 0 0 0 0 0 0

Sub-total (B)(1)0 0 0 0 0 0 0 0 0

2. Non Institiution

a) Bodies Corporate 22400 1185833 1208233 14.62 22400 836849 859249 10.40 (4.22)

b) Individuals(i) Individual shareholders holding nominal share capital upto Rs. 1 lakh

115846 491488 607334 7.35 155846 486501 642347 7.77 0.42

(ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh

40000 160572 200572 2.43 0 332684 332684 4.02 1.59

c) N.R.I. (Rep & Non Rep.)0 2376 2376 0.03 0 2976 2976 0.04 0.01

d) Any Other (Specify)

i) Hindu Undivided Family0 129254 129254 1.56 0 160005 160005 1.94 0.38

ii) Clearing Members/ House0 113317 113317 1.37 0 0 0 0 (1.37)

Sub Total (B)(2) 178246 2082840 2261086 27.36 178246 1819015 1997261 24.17 (3.19)

Total Public Shareholding (B)=B(1)+B(2)

178246 2082840 2261086 27.36 178246 1819015 1997261 24.17 (3.19)

Total (A)+(B) 178246 8084954 8263200 100 178246 8084954 8263200 100 0

(C). Shares held by Custodian for GDRs & ADRs

1. Promoter and Promoter Group

0 0 0 0 0 0 0 0 0

2. Public0 0 0 0 0 0 0 0 0

GRAND TOTAL (A)+(B)+(C)178246 8084954 8263200 100 178246 8084954 8263200 100 0


14

ii) Shareholding of Promoters

Sr. Shareholder’s Name Shareholding at the beginning of stthe year 01 April, 2015 FV=Rs.5/-

Shareholding at the beginning stof the year 31 March 2016,

FV=Rs.5/-No. %

change in

No. of Shares

% of total Shares of

the company

%of Shares Pledged/

encumbered to total shares

No. of Shares

% of total Shares of

the company

%of Shares Pledged/

encumbered to total shares

share holding during

the year

1 B.K.Narula 1408000 17.04 0.00 1408000 17.04 0.00 0

2 RitaNarula 1171600 14.18 0.00 1251347 15.14 0.00 0.96

3 B.K.Narula(HUF) 885800 10.72 0.00 963693 11.66 0.00 0.94

4 SidhiNarula 595414 7.21 0.00 595414 7.21 0.00 0

5 RidhiSuri 542300 6.56 0.00 542300 6.56 0.00 0

6 SukarmaFinanceLimited 1076000 13.02 0.00 1131635 13.69 0.00 0.67

7 XtremsRetailsLimited 260000 3.15 0.00 260000 3.15 0.00 0

8 SridhiInfraPvt.Ltd 63000 0.76 0.00 113550 1.37 0.00 0.61

iii) Change in Promoters’ Shareholding (please specify, if there is no change)

SN.

Name of Promoters Shareholding at the beginning of the year

Cumulative Shareholding during the year

No. of shares % of totalshares of thecompany

No. of shares

% of totalshares of thecompany

1. Rita Narula

Atthebeginningoftheyear 1171600 14.18 1171600 14.18

Equity shares acquired through Takeover openoffer on18.12.2015

79747 0.96 1251347 15.14

Attheendoftheyear 1251347 15.14

2 B.K. Narula HUF


Equity shares acquired through Takeover openofferon18.12.2015

77893 0.94 963693 11.66


3 Sukarma Finance Limited



55635 0.67 1131635 13.69


Sridhi Infra Private Limited4



50550 0.61 113550 1.37



15

iv. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Thedetailsofshareholdingpositionoftoptenshareholdersareasfollows:-

SN.

Name of the Shareholder Shareholding at the beginning of the year


No. of shares % of totalshares of thecompany

No. of shares


1. Naveen Gupta

Atthebeginningoftheyear 0 0 0 0Equitysharespurchasedason18.03.2016 285000 3.45 285000 3.45


2 Religare Finvest Ltd


Equitysharestransactedduringtheyear 0 0 0 0


3 Pradeep Kumar Jain


Equitysharespurchasedason03/04/2015 113167 1.37 115287 1.4


Equitysharessoldason24/07/2015 -50 0 122762 1.49


EquitysharesPurchased ason31/03/2016 50 0 127874 1.55


4. A L Jain Overseas Private Limited.


Equitysharestransactedduringtheyear 0 0 101964 1.23


5 Lakhan Securities Private Ltd

Atthebeginningoftheyear 0 0 0 0

Equityshares transacted (Purchase/sold) duringtheyear onvariousdates

101129 1.22 101129 1.22


6 Global Jindal Fin Invest Ltd


Equitysharessoldason04/12/2015 83600 1.01 100000 1.21


7 Nishu Finlease Private LtdAt the beginning of the year 88000 1.06 88000 1.06

Equity shares transacted during the year 0 0 88000 1.06

At the end of the year 88000 1.06


16

SNo.

Name of the Shareholder Shareholding at the beginning of the year


No. of shares % of totalshares of

the company

No. of shares

% of totalshares of the

company

8 Capital Finvest LimitedAtthebeginningoftheyear 0 0 0 0

EquitysharesPurchasedon25.03.2016 50000 0.61 50000 0.61


9 Samrat JainAtthebeginningoftheyear 47684 0.58 47684 0.58



10 Rajat Corporate Management Pvt Limited. Atthebeginningoftheyear 40000 0.48 40000 0.48



v. Shareholding of Directors and Key Managerial Personnel:

KeyManagerialPersonneldonothaveanyshareholdinginthecompany andshareholdingofDirectorsofthecompanyismentionedinthetablebelow.

S.No

Shareholding of each Directors

Shareholding at the beginning of the year

Change in Shareholding

during the year

Shareholding at the end of the year

No. of shares


No. of shares

% of totalshares of

the company

No. of shares


1 BhushanKumarNarula 1408000 17.04 - - 1408000 17.04

2 RitaNarula 1171600 14.18 79747 0.96 1251347 15.14


V. Indebtedness of the Company including interest outstanding/accrued but not due for payment

(`inLacs)

Sr. No. Particulars Secured Loan Unsecured

Loan Deposits

Total Indebtedness

Indebtedness at the beginning of the �inancial year

1 PrincipalAmount 42.07 -

- 42.07

2 Interestduebutnotpaid -

-

- -

3 Interestaccruedbutnotdue -

-

- -

Total (1+2+3) 42.07 -

- 42.07

Change in Indebtedness during the �inancial year

1 Addition 1.07

-

- 1.07

2 Reduction (10.76) - - (10.76)

3 NetChange (9.69) - - (9.69)

Indebtedness at the end of the �inancial year (forlongterm loan)

1 PrincipalAmount 32.38 - - 32.38

2 Interestduebutnotpaid - - - -

3 Interestaccruedbutnotdue - - - -

Total (1+2+3) 32.38 - - 32.38

.

17

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager

SN. Particulars of Remuneration Name of Directors and Desgination Total Amount

Bhushan Kumar Narula (Managing Director)

Rita Narula (Whole Time Director)

1 Grosssalary Rs.12.00

-

-

-

--

---

12.00

Rs.540000.

-

-

-

--

---

5,40,000

5,40,012(a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961

-

(b)Valueofperquisitesu/s17(2)Income-taxAct,1961

-

(c)Pro�itsinlieuofsalaryundersection17(3)Income- taxAct,1961

-

2 StockOption -3 SweatEquity -4 Commission

-as%ofpro�it-others,specify…

-

5 Others,pleasespecify

Total(A) 5,40,012

CeilingaspertheAct


B. Remuneration to other Directors

SN. ParticularsofRemuneration NameofDirectors TotalAmount(inRs.)1 IndependentDirectors BhavanaS.Kumar VineetAggarwal -

Feeforattendingboardcommitteemeetings

10000/-

-

-

10000/--

----

10000/-

2500

-1000-

3500------

3,500-

12,500

Commission -Others,pleasespecify(conveyanceallowance)

1000/-

Total(1) 13,500/-

2 OtherNon-ExecutiveDirectorsFeeforattendingboardcommitteemeetings

-

Commission -Others,pleasespecify -Total(2) -

Total(B)=(1+2) 13,500

TotalManagerialRemuneration

- - -

OverallCeilingaspertheAct - - - - -

18

C. Remuneration to Key Managerial Personnel other than MD/ Manager/ WTD

SN Particulars of Remuneration Key Managerial Personnel

CEO CS CFO Total

1 Grosssalary

(a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961

- 213579 387000 621000

(b)Valueofperquisitesu/s17(2)Income-taxAct,1961

- - - -

(c)Pro�itsinlieuofsalaryundersection17(3)Income-taxAct,1961

- - - -

2 StockOption - - - -3 SweatEquity - - - -4 Commission - - - -

-as%ofpro�it - - - -others,specify… - - - -

5 Others,pleasespecify - - - -

Total - 213579 387000 621000

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES

NoPenalty/PunishmenthavebeenimposedontheCompanyduringtheFY2015-2016underreviewexceptthatththe SEBIhad by itsorderdated13 May,2015 given thedirection to thepromotersof thecompany tomakea

publicannouncementtoacquiresharesofthetargetcompanyinaccordancewiththeprovisionsoftheTakeoverRegulations,1997,orTakeoverCode2011withinaperiodof45daysfromthedateoftheorder.

Consequent of this order the B.K. Narula HUF, Rita Narula, Sukarma Finance Limited, and Sridhi Infra PrivateLimited, promoters of the company has completed Takeover Open offer and public announcement on 28thDecember,2015.


19

ANNEXURE - B

Form No. AOC-2(Pursuanttoclause(h)ofsub-section(3)ofsection134oftheActandRule8(2)oftheCompanies(Accounts)Rules,2014)

Disclosure of particulars of contracts/arrangements entered into by the companywith related parties referred to in sub-section(1)ofsection188oftheCompaniesAct,2013includingcertainarmslengthtransactionsunderthirdprovisothereto

1. Details of contracts or arrangements or transactions not at arm’s length basis- Nil

2. Details of contracts or arrangements or transactions at arm’s length basis

Thedetailsofmaterialcontractsorarrangementortransactionsatarm's lengthbasisfortheyearendedMarch31,

2016 areasfollows

(1) (2) (4) (5)

S. No

Name(s) of the related party and nature of

relationship

Nature of contracts/ arrangements/ transactions

Duration of the contracts /

arrangements/transactions

Amount paid as advances, if any:

1 M/sSukarmaFinanceLimited,AssociateCompany,

RentReceivedamountingtoRs.66,000/-

AspertermsandconditionsofAgreementandcontract

Nil

2 M/sRitaNarula,WholeTimeDirector

RentPaidtoRs.1,20,000/- AspertermsandconditionsofAgreementandcontract

Nil

Sd/-B.K. NarulaManaging DirectorDIN 00003629


20


ANNEXURE C

SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED ON MARCH 31, 2016

(Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014)

To,The Members,Orosil Smiths India Limited, Delhi

Ihaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherenceto good corporatepractices byOrosil Smiths India Limited (hereinafter called “the Company”). SecretarialAudit was conducted in a manner that provided me a reasonable basis for evaluating the corporateconducts/statutorycompliancesandexpressingmyopinionthereon.

Basedonmyveri�icationof theCompany'sbooks,papers,minutebooks, formsand returns �iledandother

recordsmaintainedbytheCompanyandalso theinformationprovidedbytheCompany, itsof�icers,agents

andauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinion,the

Companyhas,during theauditperiodcovering theFinancialYearendedonMarch31, 2016 compliedwith

the statutory provisions listed hereunder and also that the Company has proper Board-processes and

compliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

Ihaveexaminedthebooks,papers,minutebooks,formsandreturns�iledandotherrecordsmaintainedby

theCompanyforthe�inancialyearendedonMarch31, 2016 accordingtotheprovisionsof:

(i) TheCompaniesAct,2013(theAct)andtheRulesmadethereunder;

(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA')andtherulesmadethereunder;

(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

(iv) ForeignExchangeManagementAct, 1999and the rules/regulationsmade thereunder to theextentof

ForeignDirectInvestment,OverseasDirectInvestment&ExternalCommercialBorrowings:

(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardof India

Act,1992(‘SEBIAct'):

(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)

Regulations,2011;

(b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,1992;

(c) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,

2009;

(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock

PurchaseScheme)Guidelines,1999(NotapplicabletotheCompanyduringAuditPeriod);

(e) The Securities and ExchangeBoard of India (Issue and Listing ofDebt Securities)Regulations, 2008;

(NotapplicabletotheCompanyduringAuditPeriod)

(f) TheSecuritiesandExchangeBoardofIndia(RegistrarstoIssueandShareTransferAgents)Regulations,

1993regardingtheCompaniesActanddealingwithclient;

(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Not

applicabletotheCompanyduringAuditPeriod);and

(h) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998(Notapplicableto

theCompanyduringAuditPeriod).

21


Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

(i) SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndia;

(ii) TheListingAgreementas enteredintobytheCompanywithBombayStockExchange(BSE) Limited;

Ifurtherreportthat,havingregardtothecompliancesystemprevailingintheCompanyandonexamination

oftherelevantdocumentsandrecordsinpursuancethereof,ontest-checkbasis,theCompanyhascomplied

withNationalGemandJewelleryAuthority(NGJA)ActNo.50of1993,GemsandJewelleryExportPromotion

Council(GJEPC) andrulesmadethere under,applicablespeci�icallytotheCompany.

I furtherreport that,basedonthe informationprovidedandtherepresentationmade by theCompanyand

clari�icationsmade,theCompanyhascompliedwiththeprovisionsoftheAct,Rules,Regulations,Guidelines,

etc.mentionedabove.

Ifurtherreportthat,thecompliancebythe Companyofapplicable�inanciallawslikedirectandindirecttax

lawsandmaintenanceof�inancialrecordsandbooksofaccountshasnotbeenreviewedinthisAuditsince

thesamehavebeensubjecttoreviewbystatutory�inancialauditandotherdesignatedprofessionals.

I further report that balance of Directors is duly constituted with proper balance of Executive Directors

exceptincaseofNon-ExecutiveDirectorsandIndependentDirectorswhichwasnotproper duringtheyear.

The changes in the compositionof the Board of Directors that took place during the period under review

werecarriedoutincompliancewiththeprovisionoftheAct.

Adequatenoticeis giventoallDirectors toscheduletheBoardMeetings,agendaanddetailednotesonagenda

weresent atleastsevendaysinadvancetoallDirectors andasystemexistsforseekingandobtainingfurther

informationandclari�icationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthe

meeting.

AspertheminutesofthemeetingsdulyrecordedandsignedbytheChairmanthedecisionsoftheBoardwere

unanimousandnodissentingviewshavebeenrecorded.

IfurtherreportthatthereareadequatesystemsandprocessesintheCompanycommensuratewiththesize

andoperations of theCompany tomonitor and ensure compliancewith applicable laws, rules, regulations

andguidelines.

Ireportfurtherthat,duringtheauditperiod,therewerenootherspeci�icevents/actionsinpursuanceofthe

abovereferredlaws,rules,regulations,guidelinesetcexceptOpenofferandPublicAnnouncementofsharesthinPursuance of orderofSEBIdated13 May2015,havingthemajorbearingontheaffairsofthecompany.

For N. K. Chandok & Associates

Sd/-

Navneet Kaur

Proprietor

(COPNo.12930)

July29,2016,Delhi

22

A. INDUSTRY STRUCTURE AND DEVELOPMENT

YourCompany is engaged in themanufacturing and sale of silver jewelry, gold jewelry aswell as plain and trading ofSilverArticles.TheCompany launchedtwobrandsbythename “Kuhjoul”and“Sincere”forsemi-preciousandpreciousstonesstuddedingoldandsilver.

B. OPPORTUNITY AND THREATS

YourCompanyforeseesgreatopportunityinthislineofbusinessastheexportmarketsaswellasthedomesticmarketare

gainingmomentum.Theeffortsput inbythemanagementby introducingtheaffordablesilver&gold jewelry specially

targetedtotheworkingclasswomenmayreapbene�itsinthelongrun.

C. RISK AND CONCERN

Thepricesofthepreciousmetals is theonlymatterofconcern fortheCompanyotherwisethereisnootherriskas theglobalmarketispickingupandjewelryisalwaysavalueaddition.

D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has maintained a proper and adequate system of internal controls. This ensures that all Assets aresafeguarded and protected against loss from unauthorized use or disposition. The Audit Committee and IndependentInternalAuditorsregularlyreviewtheoperatingsystemsandproceduresforef�iciencyandeffectiveness.

Yourcompany’sinternalcontrolsystemsdocommensuratewiththenatureandsizeofitsbusinessoperations.

E. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

DuringtheyearunderreviewFinancialperformanceofyourCompany involves theIncomefromoperationsisRs.323.25Lacs(PreviousYear:Rs.372.05Lacs)registeringalossof13.12%..

Pro�it after Tax (PAT)has beena loss ofRs. 25.41 Lacs as compared toa pro�itofRs.27.66Lacs inprevious year. Thedirectorsaremakingeffortstoenhancethebusinessactivitiesandarehopefulforgoodresultsinthecomingyear.

F MATERIAL DEVELOPMENT IN HUMAN RESOURCES

YourCompanyiscontinuouslytryingtoretaintheCompetenciesofOrganizationaltalent,contributingtowardstheenhancementofbusinessactivitiesandsuccessoftheCompany.

G OUTLOOK

YourCompany is looking forward to the newopportunities in theGem& Jewellery Sector to expand anddiversify thebusinessintonewareasandlookingforabrightfutureofthecompany.

.


23

YourCompanyhas complied inall respectswith theapplicableCorporateGovernanceCode asperClause49of theListingAgreement and SEBI ( Listing obligation and Disclosures requirements), Regulation 2015 hereinafter called as ListingregulationwiththeStockExchanges.AReportonCorporateGovernancecomplianceisfurnishedbelow:

COMPANY’S CORPORATE GOVERNANCE PHILOSOPHY

CorporateGovernance is creation and enhancing long term sustainable value for the stakeholders through ethically drivenbusiness process. At Orosil Smiths India Limited it is imperative that our company affairs are managed in a fair andtransparentmanner. Good CorporateGovernance is achieved through increasedawareness for responsibility, transparencyandprofessionalismandfocusforeffectivecontrolandmanagementoftheorganization.

The Board of Directors of the Company is committed to the consistent adherence to the corporate governance code andconstantreviewoftheBoardprocesses,practicesandthemanagementsystemstomaintainagreaterdegreeofresponsibilityandaccountability andensurethatweevolveandfollowtheCorporateGovernanceguidelinesandbestpractices.Weconsideritourinherentresponsibilitytodisclosetimelyandaccurateinformationregardingour�inancialsandperformanceaswellasleadershipandgovernanceofthecompany..

BOARD OF DIRECTORS

YourCompanyhasanoptimumcombinationofexecutiveandnon-executiveDirectors includingwomendirector toprovidestrategic guidance to the Company, effective over-seeing of the management, de�ining responsibilities of the seniormanagementandensuringaccountability.

ThecompositionoftheBoardofDirectorsason31st March, 2016 isasunder:-

Name of Director DesignationDIN

Date of Appointment

Mr.B.K.Narula ChairmanandManagingDirector 00003629 01.06.1994

Mrs.RitaNarula WholeTimeDirector 00006096 01.06.1994

Ms.BhavanaSampathKumar

NonExecutiveIndependentDirector 05260084 28.05.2012

Mr.VineetAggarwal* NonExecutiveIndependentDirector 00539344 30.04.2015

*Mr. Vineet Aggarwal was appointed in the board meeting held on 30 th April 2015 and further regularized in the Annualgeneralmeetingheldon28th September2015

Board Meetings held during the year 2015-2016

DuringtheYear2015-2016,total6(Six)BoardMeetingsweredulyheldon30.04.2015,28.05.2015,10.08.2015,28.10.2015,28.12.2015,10.02.2016intermsofsection 173oftheCompaniesAct,2013,SecretarialStandards,thelistingagreementandListingregulation.


24

AttendanceoftheDirectorsattheBoardMeetingsandatthelastAnnualGeneralMeeting, includingnumberofotherDirectorsorcommitteesinwhichadirectorisamemberorchairperson areasunder:

S.No

Name of Directors

No. of Board Meeting Held

during the yearNo. of Board

Meetings Attended

Attendance at last AGM held on 28.09.2015

No of Outside *Directorships Held

1. Mr.B.KNarula** 6 6 Present 5

2. Mrs.RitaNarula** 6 6 - 4

3. Ms. Bhavana SampathKumar

6 5 - 0

4. Mr.VineetAggarwal 6 5 - 0

*Directorships in companies registered under the Companies act 1956 & 2013 excluding the Directorships of Section-25Companiesandalternatedirectorships.

**thereisnointerserelationshipbetweenboardmembersexceptMr.B.K.NarulaandMs.RitaNarulaasHusbandandwife.

Notes:-

No shares or any convertible instruments held by Ms. Bhavana Sampath Kumar and Mr. Vineet Aggarwal, non executivedirectorsofthecompanyduringthe�inancialyearunderreview.

Familirisation Programme for Independent Directors

TheCompanythroughitsExecutiveDirector/KeyManagerialPersonnelconductsprogrammes/presentationsperiodicallytofamiliarizetheIndependentDirectorswiththestrategy,operationsandfunctionsoftheCompany.

Themain objective of this programme are to provide insights into the Company and enable the Independent Directors tounderstandtheCompany’sbusinessindepththatwouldfacilitatetheiractiveparticipationinmanagingtheCompany.

The details of Company’s Familirisation Programme for the Independent Directors can be accessed athttp://www.kuhjohl.com/pdf/sebi-policies/famili-prog-for-indep-director.pdf

AUDIT COMMITTEE

TheAuditCommitteehasbeenconstitutedinlinewiththeprovisionsofSection177oftheCompaniesAct,2013 readwithTheCompanies(MeetingsofBoardanditsPowers)Rules,2014.TheroleandtermsofreferenceoftheAuditCommitteecoversthemattersspeci�iedforAuditCommitteeunderCompaniesAct,2013which,inter-alia,includefollowingsmatters

1.therecommendationforappointment,remunerationandtermsofappointmentofauditorsofthecompany

2.reviewandmonitortheauditor’sindependenceandperformanceandeffectivenessofauditprocess.

3.Examinationof�inancialstatementsandtheauditor’sreportthereon.

4.approvaloranysubsequentmodi�icationoftransactionsofthecompanywithrelatedparty

5.scrutinyofintercorporateloansandinvestments

6.valuationofundertakingsorassetsofthecompany,wherevernecessary

7.evaluationofinternal�inancialcontrolsandriskmanagementsystems.

8.performanceofInternalandStatutoryAuditors,adequacyofInternalAuditfunction,discussionswithInternalandStatutoryAuditors.


25

Composition of Audit Committee

(i) ThecompositionoftheAuditCommitteeandotherrelevantdetailsaregivenbelow

S.No.

NameDesignation

Category

No. of Audit Committee

meetings held during the year

No. of Audit Committee meetings Attended

1. Mr.VineetAggarwal Chairman Non-executiveIndependentDirector

4 3

2. Ms. Bhavana S.Kumar

Member Non-executiveIndependentDirector

4 3

3. Mr.B.K.Narula Member ManagingDirector 4 4

(ii) During the year 2015-2016, total 4 (four) Audit Committee Meetings were held on 28.05.2015, 10.08.2015,28.10.2015,10.02.2016

(iii) TheAuditCommittee inter-aliaperforms the functionsofapprovingAnnual internalAuditPlan, reviewof �inancialreportingsystem,internalcontrolsystem,discussiononquarterly,half-yearlyandannual�inancialresults,interactionwithstatutoryandInternalAuditors,recommendation forappointmentofStatutoryAuditors&their remuneration,recommendation for theappointmentand remunerationof InternalAuditors, reviewofBusinessRiskManagementPlan,ManagementDiscussionsandAnalysis,ReviewofInternalAuditReports,approvalandreviewofrelatedpartytransactions. In ful�illing theabove roleAudit committeehaspowers to investigateany activitywithin its termsofreference,toseekinformationfromemployeesandtoobtainoutsidelegalandprofessionaladvice.

iv) ThecompositionofAuditCommitteereconstitutedintheboardmeetingheldon30.04.2015.

NOMINATION AND REMUNERATION COMMITTEE:

(i) ThebroadtermsofreferenceoftheNominationandRemunerationCommitteeare:

- To formulate the criteria for determining quali�ications, positive attributes and independence of a Director and

recommendto theBoardapolicy,relatingtotheremunerationoftheDirectors,KeyManagerialPersonnelandother

employees;

- ToformulatethecriteriaforevaluationofalltheDirectorsontheBoard;

- TodeviseapolicyonBoarddiversity;and

- To identify persons who are quali�ied to become directors and who may be appointed in senior management in

accordancewiththecriterialaiddown,andrecommendtotheBoardtheirappointmentandremoval.

Composition of Nomination and Remuneration Committee

i) ThecompositionoftheNominationandremunerationCommitteeandotherrelevantdetailsaregivenbelow

S.No.

NameDesignation

Category

No. of Nomination and Remuneration

Committee meetings held

during the year

No. of Nomination and Remuneration

Committee meetings Attended

1. Ms. Bhavana S.Kumar

Chairman Non-executiveIndependentDirector

4 3

2. Mr.VineetAggarwal Member Non-executiveIndependentDirector

4 3

3. Mr.B.K.Narula Member ManagingDirector 4 4

ii) Duringthe year2015-2016,total4(four)NominationandRemunerationCommittee Meetingswereheldon28.05.2015,10.08.2015,28.10.2015,10.02.2016

iii) TheCommittee oversees the annual self evaluation of the Performance of theBoard, committees and of individualdirectors. and the boardas awholealso evaluates the performance for independent directors basedon the criteriasuchaspersonaltraits,ParticipationandcontributionbyaDirector;Commitment,includingguidanceprovidedtotheSenior Management outside of Board/ Committee Meetings, Effective deployment of knowledge and expertise,

Independenceofbehavior and judgment,Maintenanceof con�identialityofcriticalissues.


26

INDEPENDENT DIRECTORS MEETING

thTheindependentdirectorsmeton30 November,2015withoutthepresenceofNon- Independentdirectorsandmembersofthemanagement.AttheIndependentDirectorsinteraliaevaluatedandreviewtheperformanceofNonindependentdirectorsand board as a whole, review the performance of chairperson of the company and to review the Quality, Quantity andtimelinessof�lowofinformationbetweenthecompany,themanagementandtheBoard.

REMUNERATION OF DIRECTORS

The company make payment to the non executive directors as per sitting fees. During the Financial year 2015-2016 thecompanyhaspaidRs.13,500/- tothedirectorsassittingfees.

RemunerationPolicy:

TheCompany'sRemunerationpolicyconsidershumanresourcesasitsinvaluableassets,topayequitableremunerationtoall

Directors, key managerial personnel and employees of the company, to harmonize the aspirations of human resources

consistentwiththe goalsofthecompany.

TheRemunerationpolicyforalltheemployeesaredesignedinawaytoattracttalentedexecutivesandremuneratethemfairly

andresponsibly,thisbeingacontinuousongoingexerciseateachlevelintheorganization.

GENERAL BODY MEETINGS

Date, TimeandVenueofthelastthreeAnnualGeneralMeetingsaregiveninthebelowtable:

Special Resolutions passed during previous three AGM’s

NoSpecialResolutionwaspassedlastyearthroughpostalballotandotherdetailsofspecialresolutionpassedinlastthreeyearsisasfollows:-

September27,2013 NoneSeptember27,2014 NoneSeptember28,2015 i) Re- appointment of Mr. Bhushan Kumar Narula, Managing Director of company for a

periodof5yearsii)Re- appointmentofMs.RitaNarula,WholeTimeDirectorofcompany foraperiodof5years

MEANS OF COMMUNICATION

a) Quarterly ResultsThe quarterly results for the �irst, second, third quarters and the audited yearly results were published in "The

FinancialExpress”inEnglishLanguage”and"VeerArjun" inHindilanguage.

Financial Year (ended)Date Time Venue

March31,2013 September27,2013 10.00am YWCA of Delhi, Ashoka Road, NewDelhi-110001.

March31,2014 September27,2014 11.00am YWCA of Delhi, Ashoka Road, NewDelhi-110001.

March31,2015 September28,2015 11.00 am YWCA of Delhi, Ashoka Road, NewDelhi-110001.

These results and of�icial news releases are also available on thewebsite of the Company (www.orosil.com). No

presentationsweremadetoInstitutionalInvestorsortoAnalysts.

b) Newspaper wherein results normally published

NormallyTheQuarterly,halfyearlyandauditedannuallyresultspublishedinthenewspapernamedas"TheFinancial

Express”inEnglishLanguage”and"VeerArjun"inHindilanguage

Compliance with other mandatory requirements

(a) Management Discussion and Analysis

AManagement Discussion And Analysis Report forms part of the Annual Report and includes discussion on variousmattersspeci�iedunderscheduleVoftheListing Regulation.


27

(b) Secretarial Audit for reconciliation of share capital

A quali�ied Practicing Company Secretary has carried out reconciliation of share capital audit for every quarter toreconcile the total admitted capitalwith both the depositories; viz.National SecuritiesDepositoryLimited (NSDL) andCentral Depository Services (India) Limited (CDSL). The audit con�irms that the total issued/paid up capital is inagreementwith the aggregate total number of shares inphysical form, shares allotted& advised for demat credit butpendingexecutionandthetotalnumberofdematerializedsharesheldwithNSDLandCDSL.TheCompanyhadsubmittedthereconciliationofsharecapitalaudit reporttoBSEwithin30daysfromtheendofeachquarterinaccordancewiththeSEBIrequirements.

(c) Code for prevention of Insider Trading

Pursuant to SEBI circularNo. CIR/ISD/01/2015, regulation8and regulation9ofSEBI (Prohibitionof InsiderTrading)Regulations,2015TheCompanyhas formulatedCodeofpracticesandproceduresforfairDisclosureofUnpublished PriceSensitiveInformationandthesamebemadeavailableonthewebsiteofthecompany,www.Orosil.com.

(d) CEO/CFO Certi�ication

Acerti�icatefromChairman&ManagingDirectorandExecutiveDirectorwasplacedbeforetheBoard.

(e) Risk Management

TheCompanyhaslaiddownprocedurestoinformthemembersoftheBoardabouttheriskassessmentandminimizationprocedures.TheCompanyhasframedtheriskassessmentandminimizationprocedurewhichisperiodicallyreviewedbytheBoard.

GENERAL SHAREHOLDER INFORMATION

I. Annual General MeetingDate: th09 day of September, 2016 Time: 11.00 AMVenue : YWCA of Delhi, Ashoka Road, New Delhi-110001

II. Financial Year st: 1 Aprilto31st MarchIII. Book Closure Date nd th: 02 dayofSeptember,2016 to 09 dayofSeptember,2016 (both

daysinclusive)

IV. Dividend Payment Date : NotApplicable.V. Listing on Stock Exchanges : BombayStockExchange,Mumbai

PhirozeJeejeebhoyTowers,DalalStreet,Mumbai- 400001

TheCompanyhaspaidAnnual ListingFees for theFinancialYear2016-2017 totheaboveStockExchange.

VI. STOCK CODE :DEMAT ISIN NUMBER :

531626INE628B01026

Market Price Data (BSE)

MONTH April2015

May June July Aug. Sept. Oct. Nov. Dec. Jan.2016

Feb.2016

Mar.2016

HIGH 13.80 14.10 13.80 16.00 17.25 17.65 15.85 16.60 21.00 22.50 23.50 30.55LOW 12.92 14.10 13.80 15.80 17.25 17.65 15.60 16.55 21.00 22.50 23.50 30.55

VII. Registrar and Share Transfer Agent : SkylineFinancialServicesPrivateLimitedD-153A,OkhlaIndustrialArea,Phase-I,NewDelhi– 110020


28

VIII. Share Transfer System

Thesharetransfers,whicharereceivedinphysicalform,areprocessedandthesharecerti�icatesreturnedwithinaperiodof15daysfromthedateofreceipt,subjecttothedocumentsbeingvalidandcompleteinallrespects.Thecompanyhas,asperSEBI Guidelinesdated18thFebruary2000,offeredthefacilityoftransfercumdemats.Underthesaidsystem,afterthesharetransferisaffected,anOptionLetter issent tothetransferee indicatingthedetailsofthetransferredsharesandrequestinghimincasehewishestodemattheshares,toapproachaDepositoryParticipant(DP)withtheOptionLetter.TheDP,basedontheOptionletter,generatesadematrequestandsendsthesametotheCompanyalongwiththeOptionLetterissuedbytheCompany. On receipt of the same, the Company dematerializes the shares. In case the transferee does not wish todematerializeshares,heneednotexercisetheoptionandtheCompanywilldispatchthesharecerti�icatesafter15daysfromthedateofsuchOptionLetter.

stIX. Shareholding Pattern as on 31 March, 2016:

NameoftheCompany : OROSILSMITHSINDIALIMITEDScripCode : 531626Quarterended : st31 March,2016

Category Number of Shares %

Promoters- Individual/HinduUndividedFamily 4760754 57.61

BodiesCorporate 1505185 18.22

Public 1997261 24.17

TOTAL 8263200 100.00

Distribution of Shareholding as on 31st March, 2016 (Face Value of one Share is Rs. 5/-)

X. Dematerialization of Shares:

Over8084954 i.e.,97.84%oftheCompany’sPaid- upEquityShareCapitalhasbeendematerializeduptoMarch31,2016.TradinginEquitySharesoftheCompanyispermittedonlyindematerializedformaspernoti�icationissuedbySecuritiesandExchangeBoardofIndia(SEBI).

ShareholdingNominal Value (Rs.)

Number of shareholders

% to total Numbers

Shareholding Amount (Rs.)

Percentage to total amount

UpTo5,000 687 82.28 718925 1.745001To10,000 59 7.07 485410 1.1710001To20,000 24 2.87 412255 120001To30,000 18 2.16 443370 1.0730001To40,000 6 0.72 203620 0.4940001To50,000 4 0.48 185480 0.4550001To1,00,000 12 1.44 751990 1.821,00,000andAbove 25 2.99 38114950 92.25

Total 835 100 41316000 100.00

XI. Outstanding ADRs/ GDRs/ : NotApplicable Warrants or any convertible Instruments conversion date And likely impact on equity

XII. Plant : A-89,Sector-2, Noida-201301

XIII. Address for Investor Correspondence : SkylineFinancialServicesPvt.Ltd.D-153A,Okhla IndustrialArea,Phase-I,NewDelhi– 110020

XIV. E-Mail ID for Investors : [email protected]

XV. CIN & Registered Of�ice : L74899DL1994PLC059341FlatNo.620,HemkuntChambers,89, NehruPlace,NewDelhi-110019


29

Disclosures

a. Disclosures on materially signi�icant related party transactions that may have potential con�lict with the interests of

companyat large.Therehavebeennomaterially signi�icantRelatedPartyTransactions thatmayhavepotential con�lict

withtheinterestsoftheCompanyatlarge.

b. Therewasnonon-compliancebytheCompanyandnopenaltiesorstrictureswereimposedontheCompanybytheStock

ExchangesorSecuritiesandExchangeBoardofIndia(SEBI),oranystatutoryauthorityonanymatterrelatedtothecapitalthmarkets during the last three years except that SEBI had by its order dated 13 May, 2015 given the direction to the

promotersofthecompanytomakeapublicannouncementtoacquiresharesofthetargetcompanyinaccordancewiththe

provisionsoftheTakeoverRegulations,1997,orTakeoverCode2011withinaperiodof45daysfromthedateoftheorder.

Consequent of this order the B.K. Narula HUF, Rita Narula, Sukarma Finance Limited, and Sridhi infra Private Limited,

promotersofthecompanyhascompletedTakeoverOpenofferandpublicannouncementon28thDecember,2015.

c. Thecompanyhasestablishedvigilmechanismfordirectorsandemployeestoreportgenuineconcernagainstvictimizationofpersonsandrelevantwhistleblowerpolicywaspreparedintheregard.Thepolicyisalsomadeavailableatthewebsiteofcompany.Moreovernopersonnelhasbeendeniedaccesstotheauditcommittee.

d. The details regarding Policy for determining material subsidiaries can be accessed at http://www.orosil.com/policies-under-sebi-act-1611.

DECLARATION BY MANAGING DIRECTOR REGARDING CONFIRMATION OF COMPLIANCE OF CODE OF BUSINESS CONDUCT AND ETHICS

To,

TheMembersofOrosilSmithsIndiaLimited

ThisistodeclarethattothebestofmyknowledgeandbeliefalltheMembersoftheBoardandSeniorManagementPersonneloftheCompanyhaveaf�irmed theirrespectiveCompliancewiththeCompany’sCodeofConductandEthicsfortheyearended

March31,2016



Sd/-B.K. Narula


Apartment No. 501, Tower-22, Common Wealth Games

Village Delhi 110092


30

AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE

To the Members of OROSIL SMITHS INDIA LIMITED

WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyOROSILSMITHSINDIALIMITED(‘theCompany’),for the year endedMarch 31, 2016, as stipulated in Clause 49 of the Listing Agreements of the said Company with stock

st thexchanges in India for the period 1 April 2015 to 30 November 2015 and as per relevant provisions of SEBI (ListingObligations andDisclosureRequirements) Regulation, 2015 (‘Listing Regulation’) as referred to inRegulation 15(2) of the

st stListingRegulationfortheperiod01 December,2015to31 March2016.

ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityoftheCompany’smanagement.Ourexaminationwas limited to procedures and implementation thereof, adopted by the Company, for ensuring the compliance of theconditions of Corporate Governance. It is neither an audit nor an expression of opinion on the �inancial statements of theCompany.

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythatwithreferenceto SEBICircularCIR/CFD/POLICYCELL/7/2014dated September 15, 2014 andRegulation15(2) of ListingRegulation the

stCompany has paid up capital (Equity + preference) of Rs.5,22,00,000/- and net worth as on 31 March 2016 ofRs.4,10,63,628/- i.e.belowthelimitofRs. 10CroreandRs.25croreasprescribedinthecircularandregulationrespectively.

Therefore the company in terms of aforesaid circular and regulation is not underobligation to complywith the CorporateGovernancerequirement.

Wefurtherstate thatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheef�iciencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsof theCompany.

For Kumar Aggarwal & Associates

Chartered Accountants

ICAI Regn. 028231N

Ankur Kumar

Partner

M. No. 527070

Place :- NoidaDated :- July 20, 2016


sd/-

31

Independent Auditor’s Report

To the Members of

OROSIL SMITHS INDIA LIMITED

(FORMERLY KNOWN AS SILVER SMITH INDIA LIMITED)

Report on the Financial Statements

We have audited the accompanying standalone �inancial statements of OROSIL SMITHS INDIA LIMITED (FORMERLY KNOWN AS SILVER SMITH INDIA LIMITED) (“the Company”) whichcomprise theBalanceSheetasatMarch31,2016,theStatement ofPro�it andLoss, CashFlowStatement for theyear thenended, and a summaryof signi�icantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the standalone Financial Statements

TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesestandalone�inancialstatementsthatgiveatrueandfairviewofthe�inancialposition, �inancial performance and cash �lows of the Company in accordance with the accounting principles generallyaccepted in India, including the Accounting Standards speci�ied under Section 133 of the Act, read with Rule 7 of theCompanies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records inaccordancewith the provisions of theAct for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design, implementation andmaintenance of adequate internal �inancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothe preparation and presentation of the �inancial statements that give a true and fair view and are free from materialmisstatement,whetherduetofraudorerror.

Auditor’s Responsibility

Ourresponsibilityistoexpressanopiniononthesestandalone�inancialstatementsbasedonouraudit.

WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmade thereunder.Weconductedourauditinaccordancewith the StandardsonAuditing speci�iedunder Section143(10) of theAct.Those Standards require thatwecomply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the�inancialstatementsarefreefrommaterialmisstatement.

Anaudit involvesperformingprocedures toobtainauditevidenceabout theamountsandthedisclosuresin the �inancialstatements.Theproceduresselecteddependon theauditor’s judgment, including theassessmentof the risksofmaterialmisstatement of the �inancial statements, whether due to fraud or error. Inmaking those risk assessments, the auditorconsidersinternal�inancialcontrolrelevanttotheCompany’spreparationofthe�inancialstatementsthatgiveatrueandfair view in order to design audit procedures that areappropriatein thecircumstances,butnotfor thepurpose ofexpressinganopiniononwhethertheCompanyhasinplaceanadequateinternal�inancialcontrolssystemover�inancialreporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of theaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCompany’sDirectors,aswellasevaluatingtheoverallpresentationofthe�inancial statements.

Webelievethattheauditevidencewehaveobtainedissuf�icientandappropriate toprovideabasisforourauditopiniononthestandalone�inancialstatements.

Opinion

Inouropinionandtothebestofour informationandaccordingtotheexplanationsgiventous, theaforesaidstandalone�inancial statementsgive the informationrequiredbytheAct in themannerso requiredandgivea trueand fairview inconformitywiththeaccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2016,anditsLossanditsCashFlowfortheyearendedonthatdate.


32

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), as amended, issued by the Central

GovernmentofIndiaintermsofsub-section(11)ofsection143oftheAct,wegiveinthe“AnnexureA” astatementon

themattersspeci�iedinparagraphs3and4ofthe Order.

Asrequiredbysection143(3)oftheAct,wereport that:

a. wehavesoughtandobtainedall theinformationandexplanationswhichtothebestofourknowledgeandbelief

werenecessaryforthepurposeofouraudit;

b. inouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfrom

ourexaminationofthose books;

c. theBalanceSheet, theStatementofPro�itand LossandtheCashFlowStatementdealtwithbythisReportare in

agreementwiththebooksof account

d. in our opinion, the aforesaid Standalone �inancial statements comply with the Accounting Standards speci�ied

undersection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules, 2014.

e. OnthebasisofwrittenrepresentationsreceivedfromthedirectorsasonMarch31,2016takenonrecordbythe

BoardofDirectors,noneofthedirectorsisdisquali�iedasonMarch31,2016frombeingappointedasadirectorin

termsofSection164(2)oftheAct.

f. With respect to the adequacy of the internal �inancial controls over �inancial reporting of the Company and the

operatingeffectivenessofsuchcontrols,refertoourseparateReportin“Annexure B”.

g. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the

Companies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtothe

explanationsgiventous:

i. TheCompanydoesnothaveanypendinglitigationswhichwouldimpactits�inancialposition.

ii. TheCompanydidnothaveany long-termcontracts includingderivativecontracts forwhichtherewereany

materialforeseeablelosses.

iii. TherewerenoamountswhichwererequiredtobetransferredtotheInvestorEducationandProtectionFund

bytheCompany.



ICAI Regn. 028231N

Ankur Kumar

Partner

M. No. 527070

Place :- NoidaDated :-April 23, 2016

2.


sd/-

33

“Annexure A” to the Independent Auditors’ Report

Referredtoinparagraph1undertheheading‘ReportonOtherLegal&RegulatoryRequirement’ofourreportofevendatetothe�inancialstatementsoftheCompanyfortheyearendedMarch31, 2016:

1) (a) The Company has maintained proper records showing full particulars, including quantitative details andsituationoffixedassets;

(b) TheFixedAssetshavebeenphysicallyveri�iedbythemanagementinaphasedmanner,designedtocoverallthe itemsover aperiodof three years,which inouropinion, is reasonablehaving regard to the sizeof thecompanyandnatureofitsbusiness.Pursuanttotheprogram,aportionofthe�ixedassethasbeenphysicallyveri�iedbythemanagementduringtheyearandnomaterialdiscrepanciesbetweenthebooksrecordsandthephysical�ixedassetshavebeennoticed.

(c) Thetitledeedsofimmovablepropertiesareheldinthenameofthecompany.

2) (a)Themanagementhasconductedthephysicalveri�icationofinventoryatreasonableintervals.

b) The discrepancies noticed on physical veri�ication of the inventory as compared to books recordswhich hasbeenproperlydealtwithinthebooksofaccountwerenotmaterial.

3) TheCompanyhasnotgrantedanyloans,securedorunsecuredtocompanies,�irms,LimitedLiabilitypartnershipsorotherparties covered in theRegistermaintainedunder section 189 of theAct. Accordingly, theprovisions ofclause3(iii)(a)to(C)oftheOrderarenotapplicabletotheCompanyandhencenotcommentedupon.

4) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhascompliedwiththeprovisions of section 185 and I86 of the CompaniesAct, 2013 In respect of loans, investments, guarantees, andsecurity.

5) The CompanyhasnotacceptedanydepositsfromthepublicandhencethedirectivesissuedbytheReserveBankofIndia and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies(AcceptanceofDeposit)Rules,2015withregardtothedepositsacceptedfromthepublicarenotapplicable.

6) Asinformedtous,themaintenanceofCostRecordshasnotbeenspeci�iedbytheCentralGovernmentundersub-section(1)ofSection148oftheAct,inrespectoftheactivitiescarriedonbythecompany.

7) (a) According to information and explanations given to us and on the basis of our examination of the books ofaccount, andrecords, theCompanyhasbeengenerallyregular indepositingundisputedstatutorydues includingProvidentFund,EmployeesState Insurance, Income-Tax, Sales tax, ServiceTax,DutyofCustoms,DutyofExcise,ValueaddedTax,Cessandanyotherstatutorydueswiththeappropriateauthorities.Accordingtotheinformationandexplanationsgiventous,noundisputed amountspayableinrespectoftheabovewereinarrearsasatMarch31,2016foraperiodofmorethansixmonthsfromthedateonwhentheybecomepayable.

b)Accordingtotheinformationandexplanationgiventous,therearenoduesofincometax,salestax,servicetax,dutyofcustoms,dutyofexcise,valueaddedtaxoutstandingonaccountofany dispute.

8) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotdefaultedintherepayment ofdues tobanks. TheCompanyhas not takenany loan either from �inancial institutionsor from thegovernmentandhasnotissuedany debentures.

9) Basedupontheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement, the

companyhasnotraisedmoneysbywayofinitialpublicofferorfurtherpublicofferincludingdebtinstrumentsand

termLoans.Accordingly,theprovisionsofclause3(ix)oftheOrderarenotapplicabletotheCompanyandhence

notcommented upon.

10) Basedupontheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement,wereportthatnofraudbytheCompanyoronthecompanybyitsof�icersoremployeeshasbeennoticedorreportedduringthe year.

11) Basedupontheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement, themanagerialremunerationhasbeenpaidorprovidedinaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofsection197readwithScheduleVtotheCompaniesAct;

12) Inouropinion,theCompanyisnotaNidhiCompany.Therefore,theprovisionsofclause4(xii)oftheOrderarenotapplicabletothe Company.


34

13) In our opinion, all transactions with the related parties are in compliance with section 177and188ofCompaniesbytheapplicableaccounting

14) Basedupontheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement, thecompany has notmade any preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are notapplicabletotheCompanyandhencenotcommented upon.

15) Basedupontheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement,thecompany has not entered into any non-cash transactions with directors or persons connected with him.Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence notcommentedupon.

16) Inouropinion,thecompanyisnotrequiredtoberegisteredundersection45IAoftheReserveBankofIndiaAct,1934andaccordingly,theprovisionsofclause3(xvi)oftheOrderarenotapplicabletotheCompanyandhencenotcommentedupon.

For, Kumar Aggarwal & Associates


ICAI Regn. 028231N

Ankur Kumar

Partner

M. No. 527070

Place :- NoidaDated :- April 23, 2016


Act,2013andthedetailshavebeendisclosedintheFinancialStatementsasrequiredstandards.

sd/-

35

“Annexure B” to the Independent Auditor’s Report of even date on the Standalone Financial Statements of OROSIL SMITHS INDIA LIMITED (FORMERLY KNOWN AS SILVER SMITH INDIA LIMITED)

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

Wehaveauditedtheinternal�inancialcontrolsover�inancialreportingofOROSIL SMITHS INDIA LIMITED (FORMERLY KNOWN AS SILVER SMITH INDIA LIMITED) (“theCompany”)asofMarch31,2016 inconjunctionwithourauditofthestandalone�inancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

The Company’smanagement is responsible for establishing andmaintaining internal �inancial controls based on “theinternal control over �inancial reporting criteriaestablishedbytheCompanyconsideringtheessential componentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialsControlsoverFinancialReportingissuedbytheInstitute of Chartered Accountants of India”. These responsibilities include the design, implementation andmaintenanceof adequate internal �inancial controls thatwereoperating effectively forensuring the orderlyand ef�icientconduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention anddetection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation ofreliable�inancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’ Responsibility

OurresponsibilityistoexpressanopinionontheCompany's internal �inancialcontrolsover�inancial reportingbasedonour audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicable toanauditof internal �inancialcontrols,bothapplicable to an audit of Internal Financial Controls and, both issued by the Institute of CharteredAccountants of India.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternal�inancialcontrolsover�inancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ouraudit involves performing procedures to obtain audit evidence about the adequacy of the internal �inancial controlssystem over �inancial reporting and their operating effectiveness. Our audit of internal �inancial controls over �inancialreportingincludedobtaininganunderstandingofinternal�inancialcontrolsover�inancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedonthe assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterialmisstatementofthe�inancialstatements,whetherduetofraudor error.

Webelievethattheauditevidencewehaveobtainedissuf�icientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternal�inancialcontrolssystemover�inancialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

Acompany's internal �inancial control over �inancial reporting is a process designed to provide reasonable assuranceregarding the reliability of �inancial reporting and the preparation of �inancial statements for external purposes inaccordancewithgenerallyacceptedaccountingprinciples.Acompany's internal �inancialcontrolover �inancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyand fairly re�lect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance thattransactionsarerecordedasnecessarytopermitpreparationof�inancialstatementsinaccordancewithgenerallyacceptedaccounting principles, and that receipts and expenditures of the company are being made only in accordance withauthorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany'sassetsthatcouldhaveamaterialeffectonthe�inancialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal �inancial controls over �inancial reporting, including the possibility ofcollusion orimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternal�inancialcontrolsover�inancialreportingtofutureperiodsaresubjecttotheriskthattheinternal�inancialcontrolover�inancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.


36

Opinion

In our opinion, the Company has, in allmaterial respects, an adequate internal �inancial controls system over �inancialreporting and such internal �inancial controls over �inancial reportingwere operating effectively as at March 31, 2016,based on “the internal control over �inancial reporting criteria established by the Company considering the essentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountants ofIndia.



ICAI Regn. 028231N

Ankur Kumar

Partner

M. No. 527070

Place :- NoidaDated :-April 23, 2016


sd/-

37

OROSIL SMITHS INDIA LIMITED(FORMERLY KNOWN AS SILVER SMITH INDIA LIMITED)CIN L74899DL1994PLC059341

BALANCE SHEET AS AT March 31, 2016Notes As at As at

March 31, 2016 March 31, 2015

(Amount in Rs) (Amount in Rs)

EQUITY AND LIABILITIES

Shareholders' Funds

(a) Share Capital 1 52,200,000 52,200,000

(b) Reserves and Surplus 2 (11,136,372) (8,595,404)

41,063,628 43,604,596

Share application money pending allotment -

Non-current liabilities

(a) Long-Term Borrowings 3 2,162,119 3,238,450

(b) Long-Term Provisions 4 255,055 247,119

2,417,174 3,485,569

Current liabilities

(a) Trade Payables 5 225,799 225,799

(b) Other Current Liabilities 6 478,281 361,329

(c) Short-Term Provisions 4 4,393 4,296

(d) Short-Term Borrowings 3 1,076,013 968,748

1,784,486 1,560,172

Total 45,265,288 48,650,337

ASSETS

Non-current assets

(a) Fixed Assets 12

(i) Tangible assets 20,384,995 23,192,274

(ii) Intangible assets 41,846 233,948

20,426,841 23,426,222

(b) Non-current investments 11 3,774,850 4,274,850

(c) Long-term loans and advances 7 153,736 156,083

3,928,586 4,430,933

Current assets

(a) Inventories 9 15,286,036 16,231,430

(b) Trade Receivables 8 648,518 350,046

(c) Cash and Bank Balances 10 1,431,538 1,538,006

(d) Short-Term Loans and Advances 7 3,543,770 2,673,700

20,909,861 20,793,182

Total 45,265,288 48,650,337

Significant Accounting Policies 0Notes on Financial Statements 1 to 35The accompanying notes form an integral part of the financial statements

For & on behalf of the Board of Directors As per our Report of even date attached



ICAI Regn. 028231N

B. K. Narula

Director

DIN 00003629

Bhavna Sampath Kumar

Director

DIN 05260084

Ankur Kumar

Partner

M. No. 527070

Director

Rita Narula

DIN 00006096 Company Secretary

Rakhi Ahuja

PAN BHGPR9681G

Sanjay Bana

CFO

PAN ALMPB8242N

Place : Noida

Dated : April 23, 2016


sd/- sd/-sd/-

sd/- sd/- sd/-

38


STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED March 31, 2016

Notes For the year ended For the year endedMarch 31, 2016 March 31, 2015


INCOME

Income from Operations 13 31,917,394 36,405,180

Other Income 14 407,945 799,936

Total Revenue 32,325,339 37,205,116

EXPENDITURE

Cost of Materials Consumed 15 1,554,572 16,260,186

Purchase of Traded Goods 24,824,295 14,538,667

Changes in Inventories of Finished Goods and Stock-In-trade 16 1,298,352 119,277

Employee Benefits Expense 17 1,161,801 895,020

Financial Expenses 18 427,831 661,719

Depreciation 12 2,999,381 4,741,608

Other Expenses 19 2,600,075 2,638,948

Total Expenses 34,866,307 39,855,426

Profit/(Loss) Before Taxation (2,540,968) (2,650,310)

Tax Expenses

Less : Deferred tax (Refer Note 34) - -

Less : Current tax - -

Profit/(Loss) After Taxation (2,540,968) (2,650,310)

Less : Prior Period adjustments - 116,400

Profit/(Loss) For The Year (2,540,968) (2,766,710)

Earning / (Loss) per Share (Refer Note 25)

Basic (0.31) (0.33)

Diluted (0.31) (0.33)

Significant Accounting Policies

Notes on Financial Statements 1 to 35

The accompanying notes form an integral part of the financial statements

For & on behalf of the Board of DirectorsAs per our Report of even date attached



ICAI Regn. 028231N


B. K. Narula

Director

DIN 00003629


Director

DIN 05260084

Ankur Kumar

Partner

M. No. 527070

Director

Rita Narula


Rakhi Ahuja

PAN BHGPR9681G

Sanjay Bana

CFO

PAN ALMPB8242N

Place : Noida


sd/- sd/-sd/-

sd/- sd/- sd/-

39


CASH FLOW STATEMENT FOR THE YEAR ENDED March 31, 2016

For the year ended For the year endedMarch 31, 2016 March 31, 2015


A. CASH FLOW FROM OPERATING ACTIVITIES

Net profit/(Loss) before tax and extraordinary items (2,540,968)

(2,766,710)

Adjustments for :

Depreciation 2,999,381

4,741,608

Interest earned (22,030)

(18,728)

Profit on Sale of Investments 50,000

(328,525)

Interest Expenses 412,903

638,662

Operating profit before Working Capital changes 899,286

2,266,307

Adjustments for :

Trade & Other Receivables 1,166,195

(116,128)

Inventories (945,394)

(403,855)

Trade & other Payables 124,985

(2,462,460)

Cash flow from operating activities 1,245,071

(716,135)

Less : Income Tax Paid -

-

Net Cash flow from Operating activities 1,245,071

(716,135)

B. CASH FLOW FROM INVESTING ACTIVITIES

Addition to of Fixed Assets -

1,044,056

Sale of Investments 450,000

2,162,800

Sale of Fixed Assets -

-

Interest Received 22,030

18,728

Net Cash from /(Used) in Investing Activities 472,030

3,225,584

C. CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from borrowings (969,066) (968,748)

Interest Paid (412,903) (638,662)

Net Cash from/(Used) in Financing Activities (1,381,969) (1,607,410)

Net Increase / (decrease) in Cash and Cash Equivalents 335,133 902,039

Opening Cash and Cash Equivalents 1,538,006 388,848

Closing Cash and Cash Equivalents 1,431,538 1,538,006

Net Increase / (Decrease) as per Books (106,469) 1,149,158

Note:1. Cash and Cash equivalents consist of Cash and Bank Balances.

2. Previous Year figures have been regourped/rearranged wherever considered necessary.

The accompanying significant accounting policies and other notes to the accountsform an integral part of the financial statements 1 to 35

For & on behalf of the Board of Directors As per our Report of even date attachedFor Kumar Aggarwal & AssociatesChartered AccountantsICAI Regn. 028231N


B. K. Narula

Director

DIN 00003629


Director

DIN 05260084

Ankur Kumar

Partner

M. No. 527070

Director

Rita Narula


Rakhi Ahuja

PAN BHGPR9681G

Sanjay Bana

CFO

PAN ALMPB8242N

Place : Noida


sd/- sd/-sd/-

sd/- sd/- sd/-

40

OROSIL SMITHS INDIA LIMITED(FORMERLY KNOWN AS SILVER SMITH INDIA LIMITED)NOTES FORMING PART OF THE ACCOUNTS

As at As atMarch 31, 2016 March 31, 2015(Amount in Rs) (Amount in Rs)

1

Equity Share Capital

55,000,000 55,000,000

41,316,000 41,316,000

10,884,000 10,884,000

52,200,000 52,200,000

a.

No. (Amount in Rs) No. (Amount in Rs)At the beginning of the period 8,263,200 8,263,200 4,131,600 41,316,000Issued during the period - - - - Addition due to Stock Split * - - 4,131,600 -

Outstanding at the end of the period 8,263,200 8,263,200 8,263,200 41,316,000

*

No. (Amount in Rs) No. (Amount in Rs)At the beginning of the period 1,088,400 2,176,800 1,088,400 1,088,400 Issued during the period - - - 1,088,400

Outstanding at the end of the period 1,088,400 2,176,800 1,088,400 2,176,800

b. Terms and rights attached to shares

Equity Shares

Preference Shares

c

No. % holding No. % holdingFully paid up equity shares held by: *B. K. Narula 1,408,000 17.04% 1,408,000 17.04%B.K. Narula (HUF) 885,800 10.72% 885,800 10.72%Rita Narula 1,251,347 15.14% 1,171,600 14.18%Sidhi Narula 595,414 7.21% 595,414 7.21%Ridhi Narula 542,300 6.56% 542,300 6.56%Sukarma Finance Ltd. 1,131,635 13.69% 1,076,000 13.02%

2 Reserves and Surplus

(i) Surplus/ (deficit) in the Statement of Profit and Loss

Capital Reserves (A)Balance as per last financial statements 4,317,600 4,317,600

Closing balance 4,317,600 4,317,600

Securities premium account (B) 10,884,000 10,884,000

Closing balance 10,884,000 10,884,000

Reserves and Surplus (C )Balance as per last financial statements (23,797,004) (21,030,295)Add: Profit for the year (2,540,968) (2,766,710)

Net surplus / (deficit) (26,337,972) (23,797,004)

Total Reserves and Surplus (A+B+C) (11,136,372) (8,595,404)

1,084,000, 3.5% Optionally Cumulative Preference shares of Face Value Rs. 10/- each at a premium of Rs.

10/- each fully paid up

Details of shareholders holding more than 5% shares in the Company

31-Mar-16 31-Mar-15

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.

31-Mar-15

1,088,400 (previous year 1,088,400) 3.5% Optionally Cumulative Preference shares of Face Value Rs. 10/-

each at a premium of Rs. 10/- each fully paid up

Share Capital

Authorised shares

55,00,000 (previous year 55,00,000) Equity Shares of Rs 10/- each

8,263,200 (previous year 8,263,200 of Rs. 10/ each) Equity Shares of Rs. 5/-

each fully paid up*

Preference shares

31-Mar-16 31-Mar-15

The Company has issued during the previous year 1,088,400, 3.50% Optional Convertible Cumulative Preference Shares (‘‘OCCPS”) of face value Rs.10/- each at a

premium of Rs. 10/- each, convertible after 5 years from the date of issue. However, OCCPS holders does not have an option to convert into equity share at an

earlier date. The OCCPS Share holders have a right to receive dividend, prior to the Equity Shareholders. The dividend proposed by the Board of Directors if any

on the OCCPS is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation, the

Preference Shareholders are eligible to receive the remaining assets of the Company before distribution to the Equity Shareholders, in proportion to their

shareholding.

During the previous year, the Company in its General Board Meeting held on May 09, 2014 approved to Split / Sub-Division of its 41,31,600 Equity Shares from

Face Value of Rs. 10/ per share to Rs. 5/- per Share.

Issued, subscribed and fully paid-up shares

Total issued, subscribed and fully paid-up share capital

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity shares31-Mar-16


41



NOTES FORMING PART OF THE ACCOUNTS

As at As at As at As at

March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015

(Amount in Rs) (Amount in Rs) (Amount in Rs) (Amount in Rs)

3 Long Term Borrowings

Secured Loans

Vehicle Loan From Banks (Secured against Hypothecation of Vehicles) 2,162,119

3,238,450 1,076,013 968,748

2,162,119

3,238,450 1,076,013 968,748

Note:

Terms of Repayment for secured borrowing:

Borrowing Terms of Repayment

Vehicle Loan Repayable in 5 Years @ 10.50 % per annum

4 Provisions

Provision for employee benefits (Refer Note 28) 255,055 247,119 4,393 4,296

(includes Gratuity and Leave encashment)

255,055 247,119 4,393 4,296


March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015

(Amount in Rs) (Amount in Rs) (Amount in Rs) (Amount in Rs)

5 Trade Payables

Trade Payables (Refer Note 26 for Disclosure under Micro, Small and Medium

Act, 2006)

- - 225,799 225,799

- - 225,799 225,799

6 Other Liabilities

Advances from customers - - 11,236 -

Duties & Taxes - - 13,465 23,934

Other Liabilities - - 453,580 337,395

- - 478,281 361,329

Short termLong term

CurrentNon Current

7 Loans and Advances(Unsecured, considered good unless otherwise stated)

Security Deposits 153,736

156,083 - -

Advance Income Tax (Net of Provision for Tax) - 329,530 431,605Advances recoverable in cash or in kind or for value to be received - 2,100,298 1,100,299Prepaid Expenses - 66,086 93,940Assets held for Sale (Refer Note 31) - 1,047,856 1,047,856

153,736

156,083 3,543,770 2,673,700

As at As at As at As at March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015(Amount in Rs) (Amount in Rs) (Amount in Rs) (Amount in Rs)

8 Trade Receivables(Unsecured, considered good unless otherwise stated)

Outstanding for a period exceeding six months from the date they

are due for payment

Considered Good 648,518 350,046Considered Doubtful - -

- - 648,518 350,046Less : Provision for doubtful debt - - - -

- - 648,518 350,046

Others receivables - - - -

Total - - 648,518 350,046

9 Inventories

Raw Materials - - 3,877,851 3,509,866Finished Goods - - 11,311,655 12,610,007Packing Materials - - - 1,880Consumables - - 88,362 94,592Printing & Stationary - - 8,168 15,085

- - 15,286,036 16,231,430

CurrentNon Current


42

10 Cash and Cash Equivalents

Cash in hand - - 801,021 735,637Bank balances - In current account - - 391,094 578,120 - In Deposit account* - - 239,423 224,249

*Pledged with Sales Tax Authority for Rs.239,423

(previous year Rs.224,249)

- - 1,431,538 1,538,006


March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015(Amount in Rs) (Amount in Rs) (Amount in Rs) (Amount in Rs)

CurrentNon Current



NOTES FORMING PART OF THE ACCOUNTS

11 Non Current Investments

Particulars

Face Value Nos. Value (Rs) Face Value Nos. Value (Rs) Trade Investments

(unquoted)

Sridhi Infra Pvt. Ltd. 1/- 3,600,000

3,600,000 1/- 4,100,000 4,100,000

Electrolux Kelvinator Ltd. 10/- 2,850

154,850 10/- 2,850 154,850

Citizen Co-Operative Bank Ltd. 25/- 800

20,000 25/- 800 20,000

Total 3,774,850 4,274,850

As at

March 31, 2016

(Amount in Rs)

As at

March 31, 2015

(Amount in Rs)


43

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44

OROSIL SMITHS INDIA LIMITED(FORMERLY KNOWN AS SILVER SMITH INDIA LIMITED)NOTES FORMING PART OF THE ACCOUNTS

For the Year ended For the Year endedMarch 31, 2016 March 31, 2015(Amount in Rs) (Amount in Rs)

13 Revenue from operations

Sales of Products 31,732,394 35,859,930Service Income 185,000 545,250

Total 31,917,394 36,405,180

14 Other Income

Interest Income 22,030 18,728Profit on sale of investments - 328,525Rental Income 66,000 66,000Liabilities written back 178,750 357,508Miscellaneous Income 141,165 29,175

Total 407,945 799,936

15 Cost of Materials Consumed

Opening Stock :Raw Materials 3,509,866 2,967,665Packing Materials 1,880 9,768Consumables 94,592 104,320Printing & Stationary 15,085 16,538

Total (A) 3,621,423 3,098,291

Add : PurchaseRaw Materials 1,897,224 16,733,337Consumables - 25,200Printing & Stationary 10,306 24,781

Total (B) 1,907,530 16,783,318

Less : Closing StockRaw Materials 3,877,851 3,509,866Packing Materials - 1,880Consumables 88,362 94,592Printing & Stationary 8,168 15,085

Total ( C ) 3,974,381 3,621,423

Cost of Materials Consumed (A+B-C) 1,554,572 16,260,186

16 Changes in inventories of finished goods, work-in-progress and

stock-in-trade

Inventories at the end of the year:Finished Goods 11,311,655 12,610,007

Total (A)11,311,655 12,610,007

Inventories at the beginning of the year:Finished Goods 12,610,007 12,729,284

Total (B) 12,610,007 12,729,284

Net (Increase) / Decrease 1,298,352 119,277

17 Employee benefit expense

Salaries and Wages 1,102,747 835,550Contribution to provident and other funds (Refer Note 28) - 6,740Staff Welfare 59,054 52,730

Total 1,161,801 895,020

18 Finance Cost

Interest on Borrowings 412,903 638,662Bank Charges 14,928 23,057

Total 427,831 661,719

19 Other Expenses

Audit Fee- Tax Audit 15,000 15,000- Statutory Audit 43,000 43,000Loss on Sale of Investments 50,000 -Communication Expenses 111,482 180,557Directors' Remuneration 540,012 540,012Electricity & Water Charges 362,642 323,655Freight & Forwarding Expenses 160 3,300Insurance Expenses 119,577 35,699Job Worker Expenses 51,590 240,973Legal & Professional Charges 78,876 130,394Miscellaneous Expenses 416,461 299,498Office Maintenance Expenses 45,978 48,747Repairs and maintenance-Others 4,287 4,420Rent (Refer Note 29) 120,000 149,040Sales Promotion & Marketing Expense 168,625 208,353Security Expenses 238,500 211,145Travelling and Conveyance Expenses 233,884 205,155

Total 2,600,075 2,638,948


45

OROSIL SMITHS INDIA LIMITED(FORMERLY KNOWN AS SILVER SMITH INDIA LIMITED)

Note 20: Signi�icant Accounting Policies and Notes to accounts

(All amounts in Rupees, unless otherwise speci�ied)

20. BACKGROUND

OrosilSmiths IndiaLimitedwasincorporatedinJune01,1994asperCompaniesAct,1956,TheCompanyoperatinginGemsandJewellerysector.

Operational Outlook

DuringtheFinancialyearendedMarch31,2016theCompanyhadatotalincomeofRs32,325,339(March31,2015RsRs37,205,116)alongwithLossafterTaxof2,540,968(March31,2015Rs2,766,710).AsatMarch31,2016theCompany’saccumulatedlossesisRs11,136,372.

Share Holders having more than 5% shares of the Company has committed to provide continued operational and�inancial support to theCompany.Accordingly, theaccompanying �inancial statementshavebeenpreparedonagoingconcernbasis.

21. SIGNIFICANT ACCOUNTING POLICIES

21.1 Basis of preparation of �inancial statements

These�inancialstatementshavebeenpreparedinaccordancewiththeGenerallyAcceptedAccountingPrinciplesinIndia(GAAP)underthehistoricalcostconventiononaccrualbasis,exceptforcertaintangibleassetswhicharebeingcarriedatrevaluedamounts.These�inancialstatementshavebeenpreparedtocomplyinallmaterialaspectswiththeaccountingstandards speci�ied under Section 133 of the Companies Act, 2013 (the Act), read with Rule 7 of the Companies(Accounts)Rules,2014.

Allassetsandliabilitieshavebeenclassi�iedascurrentornon-currentaspertheCompany’snormaloperatingcycleandothercriteriasetoutintheCompaniesAct,2013.

The accountingpolicies adopted in the preparation of these �inancial statements are consistentwith those applied inpreviousyear.

21.2 Tangible Assets

Tangible assets are stated at cost (or revalued amounts, as the case may be), net of accumulated depreciation andaccumulated impairment losses, if any. Costcomprisespurchasepriceandanyotherattributablecostofbringing theassettoitsworkingconditionforitsintendeduse.

Thecostof�ixedassetsnotreadyfortheirintendeduseisrecordedascapitalwork-in-progressbeforesuchdate.Costofconstructionthatrelatedirectlytospeci�ic �ixedassetsandthatareattributabletoconstructionactivityingeneralandcanbeallocatedtospeci�ic�ixedassetsareincludedincapitalwork-in-progress.

Subsequent expendituresrelated toan itemof �ixedasset areadded to its bookvalueonly if they increase the futurebene�itsfromtheexistingassetbeyonditspreviouslyassessedstandardofperformance.

Gainsorlossesarisingfromdisposalofassetsaremeasuredasthedifferencesbetweenthenetdisposalproceedsandthecarryingamountoftheassetsandarerecognizedinthestatementofpro�itandlosswhentheassetisdisposedoff.

Depreciationisprovidedonapro-ratabasisonWrittenDownValueMethod(WDV)usingtheratesarrivedbasedontheusefullivesofassetsspeci�iedinPartCofScheduleIItheretooftheCompaniesAct,2013

21.3 Leases

WheretheCompanyisthelessee

Leases inwhichasigni�icantportionoftherisksandrewardsofownershipareretainedbythelessorareclassi�iedasoperatingleases.Paymentsmadeunderoperatingleasesarecharged totheStatementofPro�itandLossonastraight-linebasisovertheperiodofthelease.

21.4 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic bene�its will �low to the Company and therevenuecanbereliablymeasured.Revenuesfromservicesarerecognizedasperthecontractualarrangement.


46

21.6 Employee bene�its

ProvidentFund:Contributiontowardsprovidentfundforcertainemployeesismadetotheregulatoryauthorities,wheretheCompanyhasno furtherobligations. Suchbene�its areclassi�iedasDe�inedContributionSchemesas theCompanydoesnotcarry anyfurtherobligations,apartfromthecontributionsmadeonamonthlybasis.

Gratuity liability isade�inedbene�itobligationand isprovidedonthebasisofanactuarialvaluationonprojectedunitcreditmethod.TheCompanyrecognizestheactuarial gainsandlossesintheStatementofpro�it&lossintheperiodinwhichtheyarise.

Liability for leave encashment is provided on the basis of an actuarial valuation on projected unit creditmethod. TheCompanyrecognizestheactuarialgainsandlossesintheStatementofpro�it&lossintheperiodinwhichtheyarise.

21.7 Current and deferred taxes

Taxexpensefortheperiod,comprisingcurrenttaxanddeferredtax,areincludedinthedeterminationofthenetpro�itfortheperiod.Currenttaxismeasuredattheamountexpectedtobepaidtothetaxauthoritiesinaccordancewiththetaxationlawsprevailingintherespectivejurisdictions.Deferredtaxisrecognisedforallthetimingdifferences,subjecttotheconsiderationofprudenceinrespectofdeferredtaxassets.Deferredtaxassetsarerecognisedandcarriedforwardonlytotheextentthat thereisareasonablecertaintythatsuf�icientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredtaxassetscanberealised.

Deferredtaxassetsandliabilitiesaremeasuredusingthetaxratesandtaxlawsthathavebeenenactedorsubstantivelyenacted by the Balance Sheet date. At each Balance Sheet date, the Company re-assesses unrecognized deferred taxassets,ifany.

Currenttaxassetsandcurrenttaxliabilitiesareoffsetwhenthereisalegallyenforceablerighttosetofftherecognisedamountsandthereisanintentiontosettletheassetandtheliabilityonanetbasis.Deferredtaxassetsanddeferredtaxliabilitiesareoffsetwhenthereisalegallyenforceablerighttosetoffassetsagainstliabilitiesrepresentingcurrenttaxandwherethedeferredtaxassetsandthedeferredtaxliabilitiesrelatetotaxesonincomeleviedbythesamegoverningtaxationlaws

MinimumAlternativeTaxcreditisrecognizedasanassetonlywhenandtotheextentthereisconvincingevidencethatthecompanywillpaynormalincometaxduringthespeci�iedperiod.SuchassetisreviewedateachBalanceSheetdateandthecarryingamountoftheMATcreditassetiswrittendowntotheextentthereisnolongeraconvincingevidencetotheeffectthattheCompanywillpaynormalincometaxduringthespeci�iedperiod.

21.8 Provisions and contingencies

Provisions:Provisionsarerecognizedwhenthereisapresentobligationasaresultofapastevent,itisprobablethatanout�low of resources embodying economic bene�its will be required to settle the obligation and there is a reliableestimateof theamount of theobligation. Provisionsaremeasuredat thebest estimateof theexpenditure required tosettlethepresentobligationattheBalancesheetdateandarenotdiscountedtoitspresentvalue.

21.5 Other Income

InterestIncome:Interest Income is recognized on time proportion basis taking into account the amount outstanding and the rateapplicable.

ContingentLiabilities:Contingentliabilitiesaredisclosedwhenthereisapossibleobligationarisingfrompastevents,theexistenceofwhichwillbecon�irmedonlybytheoccurrenceornonoccurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontrolofthecompanyorapresentobligationthatarisesfrompasteventswhereitiseithernotprobablethatanout�lowofresourceswillberequiredtosettleorareliableestimateoftheamountcannotbemade.

21.9 Earnings Per Share

Indetermining theEarningsPerShare (EPS), theCompany considers thenetpro�itafter taxand includes thepost taxeffectofanyextraordinary/exceptionalitem.Inabsenceofanydilutiveeffectofequityshares,thebasicanddilutedEPSarecalculatedon the same basis.Thenumberof shares used in computingbasic anddilutedearningsper shares, theweightedaveragenumberofequitysharesoutstandingduringtheyearisused.


47

22. RELATED PARTY DISCLOSURES

(A) List of Related Parties and Relationship

Associates

SukarmaFinanceLtd

CorporateResearch&IntelligenceServicesLtd.

Key Management Personnel

Mr.B.K.Narula,Director

Mrs.RitaNarula,DirectorMrs.BhavanaSampathKumar,DirectorMrs.RakhiAhuja,CompanySecretaryMr.SanjayBana,CFO

Relatives of Key Management Personnel

Ms.RidhiSuri

Mr.CLNarula

Entities over which Key Management Personnel are able to exercise signi�icant in�luence

B.K.Narula(HUF)

Xtrems RetailsPvt.Ltd.

BKNEducationalSociety

SridhiInfraPvt.Ltd.

21.10 Segment InformationTheCompany operates under single reportable segmentandhence requirement ofAccounting Standard-17 “SegmentReporting”speci�iedunderSection211(3C)oftheActisnotapplicable.


48

b) The following transactions were carried out with related party in the ordinary course of business

Particulars As at 31-3-2016 As at 31-3-2015

i) Associates (Sukarma Finance Limited)

RentReceived 66,000 66,000

InterestPaid-

5,302

LoansRepaid-

2,50,000

ReimbursementofExpenses 327,982 -

ii) Associates (Corporate Research & Intelligence Services Limited)

ReimbursementofExpenses 400

iii) Key Management Personnel & their Relatives

-

RemunerationtoDirectors5,40,012 5,40,012

DirectorsSittingFees13,500 12,500

ReimbursementofMedicalExpenses Nil137

TradingPurchases Nil7,51,950

LoansRepaid Nil33,40,000

RentalPayment1,20,000 1,20,000

RemunerationtoCompanySecretary 213,579 1,40,069

RemunerationtoCFO387,000 387,000

iii) Entities Over which Key Management Personnel are able to exercise signi�icant in�luence.

LoansRepaid450,000 10,555,000

SaleofInvestment Nil 819,00

InterestPaidNil

54,038TradingSales Nil 419,704

Therearenoamountpayable/receivableoutstandingfortheyearendingMarch31,2016andMarch31,2015

23. Contingent Liabilities

The Company has given Bank Guarantee to Sales Tax authorities amounting to Rs. 239,423 as at March 31, 2016

(PreviousyearRs.224,249).

24. CAPITAL AND OTHER COMMITMENTS

TherearenoCapitalandothercommitmentsoutstandingasatMarch31,2016.


49

25. EARNINGS PER SHARE

Particulars For the year endedMarch 31, 2016

For the year endedMarch 31, 2015

Numberofsharesoutstandingduringtheyear 8,263,200 8,263,200Netpro�itaftertaxavailableforequityShareholders(Rupees)

(2,540,968) (2,766,710)

Basic/ Diluted earnings per equity share (in Rupees)

(0.31) (0.33)

26. Basedontheinformationavailablewiththemanagement,thereareno outstandingduestoMicro,SmallandMedium Enterprises as per Micro, Small and Medium Enterprise Development Act, 2006 as at year end(previousyear– Nil).

27. SUPPLEMENTARY STATUTORY INFORMATION

S. No. Particulars For the year ended March 31, 2016

(Amounts in Rs.)

For the year ended March 31, 2015(Amounts in Rs.)

1. Expenditure in Foreign Currency

(a) MarketingExpenses Nil Nil

Total Nil Nil

2. Earnings in Foreign Currency

SaleofProduct Nil 406,671

Total Nil 406,671

28. Gratuity and Post Employment Bene�it Plans

TheCompanyhasade�inedbene�itgratuityplan.Everyemployeewhohascompleted�iveyearsormoreof

servicegetsagratuityondepartureat15dayssalary(lastdrawnsalary)foreachcompletedyearofservice.

Theschemeisunfunded.

Thefollowingtablessummarizethecomponentsofnetbene�itexpenserecognizedintheStatementofpro�it&lossandamountsrecognizedinthebalancesheetfortherespectiveplans:

Statement of Pro�it & Loss

Netemployeebene�itexpense(recognizedinEmployeeCost)fortheyearendedMarch31,2016

2015-16

(Amounts in Rs.)2014-15

(Amounts in Rs.)Currentservicecost 36,761 37,589Interestcostonbene�itobligation 19,610 27,649Expectedreturnonplanassets - -Netactuarial(gain)/lossrecognizedintheyear (48,337) (159,431)Pastservicecost - -Net bene�it expense 8,034 (94,193)


50

Balance sheet

DetailsofProvisionforgratuityasatMarch31,2016

2015-16


(Amounts in Rs.)

Definedbene�itobligation 187,921 251,415Fairvalueofplanassets - -Less:Unrecognizedpastservicecost - -Plan (asset) / liability 187,921 251,415

Changes in the present value of the de�ined bene�it obligation for the year endedMarch 31, 2016 are asfollows:

2015-16


(Amounts in Rs.)Openingde�inedbene�itobligation 183,134 279,561Interestcost 14,284 22,365Currentservicecost 28,186 28,245Bene�itspaid - -Actuarial(gains)/lossesonobligation (37,683) (147,037)Closing de�ined bene�it obligation 187, 921 183,134

Theprincipalassumptionsusedindetermininggratuityandleavebene�itobligationsfortheCompany’splansareshownbelow:

2015-16 2014-15Discountrate 7.80% 8.00%Expectedrateofreturnonassets N.A. N.A.Employeeturnover 13.5% 13.5%

Theestimatesoffuturesalaryincreases,consideredinactuarialvaluation,takeaccountofin�lation,seniority,

promotionandotherrelevantfactors,suchassupplyanddemandintheemploymentmarket.

Inrespectofde�inedcontributionplan,theCompanyhasrecognizedthefollowingamountsinthestatementofpro�it&Loss:

Particulars For the year ended

March 31, 2016(Amounts in Rs.)

For the year ended March 31, 2015

(Amounts in Rs.)Employer’sContributiontoProvidentFundincludingFamilyPensionFund*

Nil 6,740

*IncludedintheheadContributiontoProvidentandOtherFunds

Notes:

Information relating to experience adjustment in the actual valuation of gratuity as required by Para 120(n)(ii)oftheAccountingStandard15(Revised)onEmployeeBene�itsisnotavailablewiththeCompany.

29. LEASE COMMITMENTS

TheCompanyhasenteredintooperatingleasetransactionforrentingofOf�iceandresidentialpremises.Theterms of leases includes terms of renewal, increase of rent of premises in future period and terms ofcancellation etc. The leases are cancellable in nature. The Company has made payment of Rs. 120,000(previousyearRs.149,040)recognizedasanexpense in theStatementofPro�it&Loss for theyearended

March31,2015.


51

30. TheCompanyhasidenti�iedFixedAssetsamountingRs.10.47LacsasheldforsaleandthereforeithasbeendiscardedfromFixedAssetsatitsbookvalueornetrealizablevalue,whicheverislower.

31. TheCompanydoesnothaveanyexposureinrespectofforeigncurrencydenominatedassetsandliabilities(nothedgedbyderivativeinstruments)asat31March2016.

32. Balance of Trade Receivables, Trade Payables and Loans and Advances are subject to independentcon�irmationsandreconciliation.

33. Deferred Taxes

Keepinginviewtheprudenceandabsenceofvirtualcertaintyoffuturetaxableincome,thedeferredtax

assetsonunabsorbedbusinesslossesanddepreciationhasnotbeencreatedasonthereportingdate.

34. Previousyear�igureshavebeentakenfrom�inancialstatementsauditedandopinedbypreviousstatutoryauditors.

35. PREVIOUS YEAR COMPARATIVES

Previousyear�igureshavebeenreclassi�iedtoconformtothisyear’sclassification.

For & on behalf of the Board of Directors

As per our Report of even date attachedFor Kumar Aggarwal & AssociatesChartered AccountantsICAI Regn. 028231N


B. K. Narula

Director

DIN 00003629


Director

DIN 05260084

Ankur Kumar

Partner

M. No. 527070

Director

Rita Narula


Rakhi Ahuja

PAN BHGPR9681G

Sanjay Bana

CFO

PAN ALMPB8242N

Place : Noida


sd/- sd/-sd/-

sd/- sd/- sd/-

52

OROSIL SMITHS INDIA LIMITEDCIN: L74899DL1994PLC059341

Registered ofce: Flat No.620, Hemkunt Chambers, 89, Nehru Place, New Delhi-110019

Tel: +91-120-2540571, Fax: +91-120-2540578, E-mail: [email protected], W: www.orosil.com

PROXY FORM(FormNo.MGT-11)

[Pursuanttosection105(6)oftheCompaniesAct,2013andRule19(3)oftheCompanies(ManagementandAdministration)Rules, 2014]

CIN :L74899DL1994PLC059341NameofCompany :OROSILSMITHSINDIALIMITEDRegisteredOf�ice :FlatNo.620,HemkuntChambers,89,NehruPlace,NewDelhi-110019Nameofthemember(s) :RegisteredAddress :FolioNo./ClientID :DPID :EmailID :

I/We,beingthemember(s)of…………………………….SharesoftheabovenamedCompany,herebyappoint:

1. Name :……………………………………………………………………..E-mailID:………………………………………………………Address :………………………………………………………………………………………………………………………………………..

Signature :……………………………………………………………………………………………………………………..orfailinghim/her





ndasmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe22 AnnualGeneralMeetingoftheCompanytobeheldonthFriday, the09 dayofSeptember,2016 at11AMatYWCAofDelhi,AshokaRoad,NewDelhi– 110001oranyadjournmentthereofinrespectof

such

resolutionsasareindicatedbelow:

Signedonthis…………………………….dayof………………………………2016.

SignatureofShareholder………………………..SignatureofProxyholder(s)………………………………………

Notes:

1)ThisformofproxyinordertobeeffectiveshouldbedulycompletedanddepositedattheRegisteredOf�iceoftheCompanynotlessthan48hoursbeforethecommencementoftheMeeting.

2)Apersoncanactasproxyonbehalfofmembersnotexceeding�ifty(50)and holdingintheaggregatenotmorethan10%ofthetotalsharecapitaloftheCompany.Amemberholdingmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappointasinglepersonasaproxy.However,suchpersonshallnotactasproxyforanyothershareholders.

Resolution Number

Description of Resolutions Assent Dissent

Ordinary Business:1. AdoptionofAuditedFinancialStatementsfortheFinancialYearendedon31 st March,20162. AppointmentofDirector inplaceofMr.B.K.Narula,whoretiresby rotation and,beingeligible,

offershimselfforre-appointment.3. AppointmentofM/sKumarAggarwal&Associates,CharteredAccountantsasStatutoryAuditors

oftheCompany.Special Business:4 AppointmentofMr.NikkhhilAroraasaNon - ExecutiveIndependentDirectoroftheCompany

Af�ixOneRupeeRevenueStamp


53

54

OROSIL SMITHS INDIA LIMITEDCIN: L74899DL1994PLC059341

Registered ofce: Flat No.620, Hemkunt Chambers, 89, Nehru Place, New Delhi-110019

Tel: +91-120-2540571, Fax: +91-120-2540578, E-mail: [email protected], W: www.orosil.com

ATTENDANCE SLIP

22ND ANNUAL GENERAL MEETING ON FRIDAY, 09 TH SEPTEMBER, 2016 at 11 A.M

Mr./Mrs./Miss……………………………………………………………………………………………………………………

……………………………………………….

Address…………………………………………………………………………………………………………………………

Folio No. (Physical holding)………………… ……DP ID (Demat holding)……………….…..Client ID……………………

No. of Shares held ……………………………………………………………………………………………………………….

I/We certify that I am/we are registered Shareholder/Proxy for the registered shareholder of the Company.

I/We hereby record my/our presence at the 22 nd Annual General Meeting of the Company on Friday, the 09 th day of

September, 2016 at 11 a.m. at YWCA of Delhi, Ashoka Road, New Delhi - 110001.

[Signature of Shareholders/Proxy(s)]………………………………………………………………………….

Notes: 1) Please ll in this attendance slip and hand it over at the entrance of the Meeting Hall.

2) Member’s Signature should be in accordance with the specimen signature registered with the Company.

3) Please bring your copy of the Annual Report for reference at the Meeting.

--------------------- ✁ ----------------------------------------------------------------------------------------------------------------------------


If Undelivered, please return it to :

OROSIL SMITHS INDIA LTD.

Flat No. 620, Hemkunt Chambers,

89, Nehru Place, New Delhi-110019

CIN : L74899DL1994PLC059341

Website : www.orosil.com, Email : [email protected]

OROSIL SMITHS INDIA LTD.

BOOK-POST


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