Mar 31, 2018
To the Members,
The directors have pleasure in presenting the Twenty-Ninth Annual Report on the business and operations of Company and the financial accounts for the year ended 31st March 2018.
FINANCIAL HIGHLIGHTS:
The financial highlights of your Company, for the year ended 31st March, 2018 are summarized below:
(Rs. in Lakhs)
Particulars |
31st March, 2018 |
31st March, 2017 |
Net Revenue from Operations |
24,208.73 |
18,973.07 |
Other Income |
12.63 |
12.03 |
Profit before Tax and Exceptional Items |
641.26 |
370.41 |
Exceptional Items |
-144.58 |
15.33 |
Profit before Tax |
496.68 |
385.74 |
Tax |
176.54 |
140.22 |
Profit After Tax |
320.14 |
245.52 |
Movement in Retained Earnings: |
||
Balance Brought Forward |
1,338.62 |
1,228.73 |
Add: Profit after Tax |
320.14 |
245.52 |
Add: Other Comprehensive Income |
-1.04 |
-54.69 |
Less: Dividend |
59.33 |
53.94 |
Less: Dividend Tax |
12.20 |
12.00 |
Less: Transfer to General Reserve |
15.00 |
15.00 |
Balance Carried Forward |
1,571.19 |
1,338.62 |
COMPANY''S PERFORMANCE AND OPERATIONS:
The Company mainly manufactures automobile parts for heavy commercial vehicles as well as passenger vehicles. The Company''s endeavour is to leverage its technology to meet the needs of the market and strengthen its position in its area of business. The Company has recorded another steady year of growth, despite performing in a highly competitive environment. The company achieved net revenue from operations of Rs.24,208.73 Lakhs as compare to Rs.18,973.07 Lakhs in the previous year. The Profit after Tax was Rs.320.14 Lakhs for the year under review as against Rs. 245.52 Lakhs in the previous year registering a growth of 30.39%.
INDIAN ACCOUNTING STANDARDS:
The Ministry of Corporate Affairs (MCA), vide its notification dated February 16, 2015, notified the Indian Accounting Standards (Ind AS) applicable to certain classes of companies. Ind AS has replaced the existing Indian GAAP prescribed under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
Being applicable, the Company has adopted Ind AS from 1st April, 2017 and accordingly, the transition was carried out, from the Accounting Principles generally accepted in India as specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (previous GAAP) to Ind AS 101 "First time adoption of Indian Accounting Standards". The impact of transition has been recorded in opening reserves as at 1st April, 2016 and the periods presented have been restated / reclassified.
The reconciliation and descriptions of the effect of the transition from Indian GAAP to Ind AS have been provided in Note 4 in the notes to accounts in the standalone and consolidated financial statements.
DIVIDEND:
The Board of Directors have recommended a dividend of 11% i.e. Rs. 0.55/- per share on 1,07,88,010 equity shares of Rs.5/- each for the year 2017-18, subject to the approval of the Shareholders at the Annual General Meeting of the Company to be held on 28th September, 2018.
FINANCIAL STATEMENTS:
Full version of the Annual Report 2017-18 containing complete Balance Sheet, Statement of Profit & Loss, other statements and notes thereto, prepared as per the requirements of Schedule III to the Companies Act, 2013, Directors'' Report (including Management Discussion and Analysis, Corporate Governance Report) are being sent via email to all shareholders who have provided their email address(es).
Full version of Annual Report 2017-18 is also available for inspection at the registered office of the Company during working hours upto the date of ensuing Annual General Meeting (AGM). It is also available at the Company''s website at www.akartoolsltd.com.
SHARE CAPITAL:
The paid up equity share capital as on 31st March, 2018 was Rs. 5,39,40,050/- divided into 1,07,88,010 equity shares of face value of Rs. 5/- each. There was no public issue, rights issue, bonus issue or preferential issue, etc. during the year. The Company has not issued shares with differential voting rights, sweat equity shares, nor has it granted any stock options.
The shares of the Company has been sub-divided from the face value of Rs. 10/- per share to the face value of Rs. 5/- per share with effect from 1st December, 2017.
COMPANY NAME CHANGE:
The name of the Company has been changed from ''Akar Tools Limited'' to ''Akar Auto Industries Limited'' with effect from 23rd October, 2017.
TRANSFER TO RESERVES:
(Rs. in Lakhs)
Particulars |
Amount |
General Reserve: |
|
Balance as per last financial statements |
321.97 |
Add: Amount transferred from P&L Account |
15.00 |
Closing Balance |
336.97 |
INVESTOR EDUCATION AND PROTECTION FUND:
Dividend which was declared by the Company for the year ended 31st March, 2011 at the Annual General Meeting held on 26th November, 2011 and remain unclaimed will be transferred to the Investor Education and Protection Fund of the Central Government pursuant to the provisions of Companies Act, 2013. The last date for claiming the dividend is 25th September, 2018. Thereafter no claim shall lie on dividend for the year ended March, 2011 from the shareholders.
MCA has notified the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules). Pursuant Section 124(6) of the Companies Act, 2013 read with IEPF Rules as amended, all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more, shall be transferred by the Company to the IEPF.
Accordingly, the Company has sent notice to the respective shareholders who have not claimed dividend for seven consecutive years or more and the newspaper advertisement stating the same has been published in the newspapers. The list of equity shareholders whose shares are liable to be transferred to IEPF can be accessed on the website of the Company www.akatoolsltd.com under the tab ''Investors''.
SUBSIDIARIES:
The Company does not have any subsidiary within the meaning of the Companies Act, 2013.
CREDIT RATING:
The rating committee of Brickwork has assigned a long term credit rating of BWR BBB- (pronounced as BWR Triple B Minus) and a short term credit rating of BWR A3 (pronounced as BWR A Three) to the line of credit facility enjoyed by the Company. The outlook on the long term and short term rating is stable.
PARTICULARS OF REMUNERATION OF DIRECTORS / KMP / EMPLOYEES:
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rules 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached to this Report as ANNEXURE I.
THE CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EARNINGS AND OUTGO:
Information in accordance with the provisions of Section 134 (3) (m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 is given in ANNEXURE II which forms part of this Report.
STATUTORY AUDITORS:
M/s Jaju & Kabra, Chartered Accountants, Aurangabad were appointed as the statutory auditors of the Company, for the period of five (5) years at the 28th Annual General Meeting of the Company held on 22nd September, 2017. They have confirmed that they are not disqualified from continuing as Statutory Auditors of the Company. The Independent Auditors Report for the financial year ended 31st March, 2018 does not contain any adverse remark or reservation and therefore, do not call for any further explanation or comments from the Board under Section 134(3) of the Companies Act, 2013.
SECRETARIAL AUDITORS:
As per the provisions of Section 204 of the Companies Act, 2013 and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company appointed M/s Nitin S.Sharma & Associates (CP No. 9761), Practising Company Secretaries, Aurangabad to undertake the Secretarial Audit of the Company for the Financial Year 2017-18. The Secretarial Audit Report in Form No MR-3 for the Financial Year 2017-18 is annexed herewith as ANNEXURE III and forms a part of this report. The Secretarial Auditors in their report, have made an observation stating that Mr. Sanjay Jhawar was appointed as the Chief Financial Officer (i.e. Key Managerial Personnel) on 8th November, 2017, resulting into filling up of the vacancy for the office of whole time key managerial personnel after a period of six months. This was so because the Company was looking out for the candidate with right skills and calibre for the position of Chief Financial Officer since there was a vacancy for this position. The board after screening various candidates, decided to appoint Mr. Sanjay Jhawar as the Chief Financial Officer.
COST AUDITORS:
As per the provisions of Section 148 (3) of the Companies Act, 2013, the Board of Directors of the Company had appointed M/s B R Chandak & Co. (Registration No. 21959), as Cost Auditors of the Company, for conducting the audit of cost records for the financial year ended 31st March 2018. The Cost Auditor has submitted its report for the financial year 2017-18 to the Board of Directors. A proposal for ratification of remuneration of the Cost Auditors for the financial year 2018-19 is placed before the shareholders for ratification / approval.
ADEQUACY OF INTERNAL FINANCIAL CONTROL SYSTEM:
According to Section 134(5)(e) of the Companies Act, 2013, the term Internal Financial Control (IFC) means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.
Rule 8(5)(viii) of Companies (Accounts) Rules, 2014 requires the information regarding adequacy of Internal Financial Controls with reference to the financial statements to be disclosed in the Board''s report. The Company has a well placed, proper and adequate IFC system which ensures that all assets are safeguarded and protected and that the transactions are authorised, recorded and reported correctly. The Internal Auditors are an integral part of the internal control system of the Company. To maintain its objective and independence, the Internal Auditors report to the Audit Committee of the Board. The Internal Auditors monitor and evaluate the efficacy and adequacy of internal control systems in the Company.
DIRECTORS:
Director retiring by rotation:
Mr. N. K. Gupta (holding DIN 00062268) retires by rotation under Section 152 of the Companies Act, 2013 and being eligible, offers himself for re-appointment.
The brief resume of Mr. N. K. Gupta, the nature of his expertise in specific functional areas, names of the companies in which he has held directorships, committee memberships / chairmanships, his shareholding etc. are furnished in the explanatory statement to the notice of the ensuing AGM.
Appointment of Directors:
Mr. Bhimsen Raghavendra Galgali was appointed as Additional Director (Independent) with effect from 1st March, 2018 on the recommendation of Nomination & Remuneration Committee.
Mrs. Bhavana vijay Saboo was appointed as Independent Director with effect from 14th August, 2018 to fill the casual vacancy caused due to the resignation of Mrs. Shilpa Sharma as an Independent Director of the Company.
Declaration by Independent Directors:
Your Company has received declarations from Mr. V. K. Chopra, Mr. S. N. Shukla, Mr. Bhimsen Galgali, and Mrs. Bhavana Saboo, Independent Directors, under provisions of Section 149(7) of the Companies Act, 2013, stating that they meet the criteria of independence as provided under sub-section (6) of Section 149 of the Companies Act, 2013.
KEY MANAGERIAL PERSONNEL:
The Key Managerial Personnel (KMP) of the Company as per Section 2(51) and 203 of the Companies Act, 2013 are as follows:
Mr. Sunil Todi |
Managing Director |
Mr. P. M. Nijampurkar |
Whole-time Director |
Mr. Mitesh Gadhiya |
Company Secretary |
Mr. Sanjay Jhawar, has resigned as the Chief Financial Officer of the Company with effect from 6th July, 2018.
EXTRACT OF THE ANNUAL RETURN:
In accordance with requirements under Section 134(3)(a) and Section 92(3) of the Companies Act, 2013, the details forming part of the extract of the Annual Return in form MGT 9 is given in ANNEXURE IV which forms part of this report.
CORPORATE GOVERNANCE:
All the requirements of the Corporate Governance are adhered to both in letter and spirit. All the committees of the Board of Directors meets at regular intervals as required in terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Board of Directors have taken all necessary steps to ensure compliance with all statutory requirements. The Directors and Key Managerial Personnel of your Company have complied with the approved ''Code of Conduct for Board of Directors and Senior Executives of the Company''.
The report on Corporate Governance as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of this report and is annexed as ANNEXURE V
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS AND COMMITTEE MEETINGS:
The details regarding the number of meetings of the Board of Directors and Committee meetings during the period under review is given in the Corporate Governance Report.
PERFORMANCE EVALUATION OF THE BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS:
Pursuant to applicable provisions of the Companies Act, 2013 and the Listing Regulations 2015, the Board, in consultation with its Nomination & Remuneration Committee, has formulated a framework containing, inter-alia, the criteria for performance evaluation of the entire Board of the Company, its Committees and Individual Directors, including Independent Directors. The detailed information in this regard has been given in the Corporate Governance Report.
MANAGEMENT DISCUSSION AND ANALYSIS:
A detailed report on the Management Discussion and analysis is annexed as ANNEXURE VI and forms part of this report.
VIGIL MECHANISM FOR DIRECTORS AND EMPLOYEES:
Pursuant to the provisions of Section 177(9) and (10) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, the Company has in place a vigil mechanism for Directors and employees of the Company.
NOMINATION AND REMUNERATION POLICY:
Pursuant to the requirement under Section 134(3) (e) and Section 178(3) of the Companies Act, 2013, the Nomination and Remuneration Committee of the Board of Directors has in place a policy which deals with the manner of selection of Board of Directors and Managing Director and their remuneration. The objectives and key features of this policy are:
(a) Formulation of the criteria for determining qualifications, positive attributes of directors, Key Managerial Personnel (KMP) and senior management personnel and also independence of Independent Directors;
(b) Aligning the remuneration of Directors, KMPs and senior management personnel with the Company''s financial position, remuneration paid by its industry peers etc.;
(c) Performance evaluation of the Board, its committees and Directors including Independent Directors;
(d) Ensuring Board diversity;
(e) Identifying persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down; and
(f) Directors'' induction and continued training.
The Nomination and Remuneration policy of the Company is available on Company''s website www.akartoolsltd.com.
RELATED PARTY TRANSACTIONS:
All related party transactions those were entered during the financial year were in the ordinary course of business and on arm''s length basis. All related party transactions are placed before the Audit Committee for review and approval. Prior omnibus approval is also obtained from the Audit Committee for the related party transactions which are of repetitive nature and which can be foreseen and accordingly the required disclosures are made to the Audit Committee on quarterly basis in terms of the omnibus approval of the Committee.
Since all the related party transactions entered into by the Company were in ordinary course of business and were on an amr''s length basis during the period under review, therefore Section 188 (1) of Companies Act, 2013 is not applicable to the said related party transactions. Thus the Company is not required to prepare Form AOC-2.
The policy on materiality of related party transactions and also on dealing with related party transactions as approved by the Audit Committee and the Board of Directors is uploaded on the web-site of the Company "www.akartoolsltd.com".
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013:
There is no loan given or guarantee provided or investment made by the Company during the financial year 2017-18 as per Section 186 of the Companies Act, 2013.
DEMATERIALISATION OF SHARES:
The shares of your Company are being traded in electronic form and the Company has established connectivity with both the depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). In view of the numerous advantages offered by the Depository system, Members are requested to avail the facility of dematerialization of shares with either of the Depositories as aforesaid. As on 31st March, 2018, 98.00% of the share capital stands dematerialized.
CORPORATE SOCIAL RESPONSIBILITY (CSR):
The Company does not exceed the threshold limits mentioned in Section 135 (1) of the Companies Act, 2013. Therefore the provisions pertaining to Corporate Social Responsibility are not applicable to the Company.
DISCLOSURE ON AUDIT COMMITTEE:
The Audit Committee as on March 31, 2018 comprises of the following Directors:
i. Mr. V. K. Chopra (Chairman)
ii. Mr. S. N. Shukla (Member)
iii. Mr. Sunil Todi (Member)
All the recommendations of the Audit Committee were accepted by the Board of Directors.
RISK ASSESSMENT AND MANAGEMENT:
Your company is exposed to various business risks. These risks are driven through external factors like economic environment, competition, regulations etc. The Company has laid down a well defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process. A detailed exercise is being carried out to identify, evaluate, manage and monitor business and non-business risks. The Audit Committee and Board periodically review the risks and suggest steps to be taken to manage/mitigate the same through a properly defined framework.
During the year, a risk analysis and assessment was conducted and no major risks were noticed, which may threaten the existence of the Company.
DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to the requirements under Section 134 (3) (c) of the Companies Act, 2013, with respect to Directors Responsibility Statement, it is hereby confirmed that:
(a) in the preparation of the annual financial statements for the year ended 31st March 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures;
(b) the Directors have, in consultation with Statutory Auditors, selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year and of the net profit of the Company for the financial year ended 31st March 2018;
(c) the Directors have taken proper and sufficient care to maintain adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) the Directors have prepared the annual accounts on a going concern basis;
(e) the Directors have laid down adequate internal financial controls to be followed by the Company and such internal financial controls were operating effectively during the financial year ended 31st March 2018; and
(f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively throughout the financial year ended 31st March 2018.
DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SECTION 143 (12) OF COMPANIES ACT, 2013:
During the financial year ended 31st March 2018, there were no frauds reported by the auditors to the Audit Committee or the Board under Section 143 (12) of the Companies Act, 2013.
DEPOSITS:
Your Company has not accepted any deposits under Section 73 of the Companies Act, 2013 during the period under review.
MATERIAL CHANGES AFFECTING THE FINANCIAL POSITION OF THE COMPANY:
No material changes have occurred and commitments made, affecting the financial position of the Company, between the end of the financial year of the Company and date of this report.
There is no order passed by any regulator or court or tribunal against the Company, impacting the going concern concept or future operations of the Company.
CONTINGENT LIABILITIES:
The details of contingent liabilities are given in Note No. 31 of the Notes to Financial Statements.
NATURE OF BUSINESS:
There has been no change in the nature of business of the Company.
HUMAN RESOURCES:
Your Company believes in engaging human resources as they are the key differentiator for the success of the Company. Keeping the employees engaged and committed can go a long way in attainment of objectives and ensuring sustained business performance. In line with this, your Company has initiated several interventions that will enhance the engagement of the employees. Being a people centric organisation, your Company recognises the significance of building next generation leadership by developing internal talent to meet the organisational objectives. Through this, the human resources function continues to align its strategic interventions and processes, while simultaneously addressing the needs of multiple stakeholders and maintaining a competitive employee cost. Your Company continues to have cordial and harmonious industrial relations across all the manufacturing units. The total number of employees of the Company as on 31st March, 2018 stood at 322.
OCCUPATIONAL HEALTH, SAFETY, ENVIRONMENT AND INDUSTRIAL RELATIONS:
Your Company has effectively deployed policies on Safety, Occupational Health & Environment at all locations. It continually focuses on improving the effectiveness of system processes, through globally accepted standards. Your Company develop and manufacture products that are safe, eco-friendly and economical. Your Company reviews its processes and its behaviour on a regular basis and measures its effect on people''s health and on the nature.
During the year the Company had cordial relations with workers, staff and officers. The shop floor management is done through personal touch, using various motivational tools and meeting their training needs requirements. The Company has taken initiative for safety of employees and implemented regular safety, imparted machine safety training, wearing protective equipment etc.
LISTING:
Your Company''s shares continue to be listed on BSE Limited and are actively traded. The listing fee to BSE Limited for the year 2018-19 has been paid by your Company.
POLICY AGAINST SEXUAL HARASSMENT AT WORKPLACE:
Pursuant to the provisions of Section 4(1) of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has in place an Internal Complaints'' Committee. The following is a summary of sexual harassment complaints received and disposed off during the year
No. of complaints received : Nil
No. of complaints disposed off : NA
CODE OF CONDUCT:
Directors, Key Managerial Personnel and Senior Management of the Company have confirmed compliance with the Code of Conduct applicable to the Directors and employees of the Company. The Code of Conduct is available on the Company''s Website www.akartoolsltd.com.
POLICY FOR PRESERVATION OF DOCUMENTS AND ARCHIVAL POLICY:
In compliance with Regulation 9 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, the Company has in place the policy for preservation of document and archival policy.
ACKNOWLEDGEMENTS:
Your Directors are pleased to express their gratitude for all the co-operation and assistance received from bankers, members, customers, vendors, various Government authorities and employees for their support and faith in the Company.
For and on Behalf of Board
Sd/-
Date: 14th August 2018 R.L.Gupta
Place: Aurangabad (Chairman)
DIN:00061861
Mar 31, 2016
Directors'' Report
(Including Management Discussion and Analysis)
The Board of Directors are pleased to present 27th Annual report of the Company together with Audited Accounts for the year ended March 31, 2016.
ECONOMIC ENVIRONMENT
The advance estimate of real GDP growth released in February 2016 by the Central Statistical Organization of the Government of India suggests a pick-up from 7.2% in the previous year to 7.6% for 2015-16 (henceforth FY2016). While still short of the 8% growth that India needs to achieve, on a steady state basis, this will be a creditable achievement given the muted global economic scenario. Indeed, there have been early signs of an up-tick in both consumer demand and the beginnings of much needed growth in investments. As of now, these are more in the nature of ''green shoots''. However, if the monsoons are as good as the preliminary meteorological forecast suggests â coming as it will after two consecutive years of drought across many parts of India â then the country ought to expect higher GDP growth in 2016-17.
INDUSTRY SCENERIO
India''s economy showed gradual recovery in 2015-16. Fiscal deficit and inflation were under control. Public investment was up. Interest rates were reduced. But rural demand and private investment remained weak. The fall in global prices of oil and commodities benefited the economy and the automobile sector. However, the slowdown in the global economy led to weak export demand.
The automotive industry in general is cyclical and economic slowdowns in the recent past have affected the manufacturing sector including the automotive and related industries in India. Persistence of negative economic trends or further deterioration in key economic factors such as growth rate, interest rates and inflation as well as reduced availability of financing for vehicles at competitive rates could materially and adversely affect the Company automotive sales in India and results of operations key for this year.
performance review
The Company achieved total turnover of Rs. 18455.48 lacs against Rs.15930.49 lacs in the previous year which is more than 15.85% . The Net Profit after tax was also increased to Rs. 183.55 lacs against Rs 122.68 in the previous year. This achieved by expending the customer base and also increasing its presence of export market.
technology up gradation
In order to maintain its leadership position, your Company is continuously focused on upgrading its product and manufacturing technology as well as acquire new and advanced technology to meet the emerging expectations of the customers. The R&D staff is actively involved in the development of new, cutting-edge products together with developments in new materials as well as advanced manufacturing techniques. The in-house R&D plays a major role in providing the interface between the company priorities and the adoption of the collaborators technology.
dividend
FINANCIAL RESULTS AT A GLANCE
(Rs. in lacs)
particulars |
31 March, 2016 |
31 March, 2015 |
Net Revenue from operations |
18455.48 |
15930.49 |
Other Income |
15.52 |
8.29 |
Profit before tax and exceptional items |
283.83 |
92.90 |
Exceptional items |
0.05 |
87.77 |
Profit before tax |
283.88 |
180.67 |
Profit After Tax |
183.55 |
122.68 |
Balance Brought Forward |
1189.21 |
1110.71 |
Amount available for Appropriation |
1372.77 |
1233.39 |
APPROPRIATIONS: |
||
Dividend |
53.94 |
37.76 |
Dividend Tax |
12.00 |
6.42 |
General Reserve |
15.00 |
0 |
Balance Carried Forward |
1291.83 |
1189.21 |
1372.77 |
1233.39 |
|
Earnings Per Share |
3.40 |
2.27 |
The Board recommended a dividend of 10% (i.e. Rs. 1.00 per share) on 53, 94, 005 equity shares of Rs.10 each for 2015-16, Subject to the approval of the Shareholders at the Annual General Meeting to be held on 30th September, 2016.
SHARE CAPITAL
The paid up equity share capital as on March 31, 2016 was Rs.5,39,40,050, divided into 5394005 equity share of face value of Re. 10/- each.
A) Issue of equity shares with differential rights
The Company did not issue equity shares with differential rights during the financial year 2015-16.
B) Issue of sweat equity shares
The Company did not issue sweat equity shares during the financial year 2015-16.
C) Issue of employee stock options
The Company did not issue stock options during the financial year 2015-16.
D) provision of money by company for purchase of its own shares by employees or by trustees for the benefit of employees
The Company does not have a scheme for purchase of its own shares by employees or by trustees for the benefit of employees.
TRANSFER TO RESERVES
The appropriations for the year are:-
(Rs. in lacs)
particulars |
31 March, 2016 |
General Reserve |
|
Balance as per last financial statements |
302.10 |
Less: Depreciation on Lease hold Land |
-1.91 |
Add: Amount transferred from statement of Profit and Loss |
15.00 |
Closing Balance |
315.19 |
deposit
Your Company has not accepted any deposits, covered under Chapter V of the Companies Act, 2013 and hence no details pursuant to Rule 8(v) and 8(vi) of the Companies (Accounts) Rules, 2014 are reported.
particulars of loans, investments AND GUARANTEES:
The Particulars of loans, guarantee or investments given or made by the Company under Section 186 of the Companies Act, 2013 are disclosed at Note Nos. 11 & 28 of the financial statements.
Contingent Liabilities:-
The company has given performance guarantees and /or guarantees against loans given by Karvy Finance Services Limited to Akar Industries Pvt. Ltd.
MATREIAL CHANGES EFFECTING FINANCIAL POSITIONS OF THE COMPANY
No material changes have occurred and commitments made, affecting the financial position of the company, between the end of the financial year of the Company and date of this report.
There is no order passed by any regulator or court or tribunal against the company, impacting the going concern concept or future operations of the Company.
investor education and PROTECTION FUND
Dividend which was declared by the company for the year ended March 31, 2009 at the Annual General Meeting held on 30th September, 2009 and remain unclaimed will be transferred to the Investor Education and Protection Fund of the Central Government on October 30th, 2016 pursuant to the provisions of Companies Act, 2013. Thereafter no claim shall lie on dividend for the year ended March, 2009 from the shareholders. Notice for unpaid dividend is attached with the Notice convening 27th Annual General Meeting.
auditors
The Shareholders of the Company in their Twenty Fifth Annual General Meeting held on 29th September, 2015 had accorded their approval pursuant to the provisions of Section 139, 141 and other applicable provisions of Companies Act, 2013 and rules made there under to appoint M/s A. K. Bagadia & Co., Chartered Accountants, as Statutory Auditor of the Company of the period of three years commencing from the conclusion of Twenty Fifth Annual General Meeting until the conclusion of Twenty Eighth Annual General Meeting.
The Board of Directors of the Company has pursuant to the provisions of Section 139, recommended the ratification of appointment M/s A. K. Bagadia & Co, Chartered Accountants for the approval of the Shareholders from the conclusion of Twenty Seventh Annual General Meeting till the conclusion of Twenty Eighth Annual General Meeting.
The Auditor''s report to the Shareholders for the year under review does not contain any qualification, reservation or adverse remark or disclaimer.
SECRETARIAL Audit
The Secretarial Auditors, M/s Pankaj & Associates, Company Secretaries, has issued Secretarial Audit Report of the Financial Year 2015-16 pursuant to Section 204 of the Companies Act, 2013, which is annexed to the Director''s Report.
cost auditor
Your Directors have appointed M/s B. R. Chandak & Co, Cost Accountants, as the Cost Auditors for the Financial Year 2016-17. M/s B. R. Chandak & Co , Cost Accountants will submit the cost audit report along with annexure to the Central Government (Ministry of Corporate Affairs) in the prescribe form within specified time and at the same time forward a copy of such report to your company.
subsidaries
The Company does not have any subsidiary within the meaning of the Companies Act, 2013
corporate governance
Transparency is the cornerstone of your Company''s philosophy and all requirements of Corporate Governance are adhered to both in letter and spirit. All the Committees of the Board of Directors meets at regular intervals as required in terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Your Board of Directors has taken all necessary steps to ensure compliance with all statutory requirements. The Directors and Key Management Personnel of your Company have complied with the approved ''Code of Ethics for Board of Directors and Senior Executives'' of the Company.
The Report on Corporate Governance as required under the SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015 forms part of and is annexed herewith marked as "Annexure - V".
occupational health, safety & ENVIRONMENT
Your Company has effectively deployed policies on Safety, Occupational Health & Environment at all locations. It continually focus on improving the effectiveness of system processes, through globally accepted standards. Your Company develop and manufacture products that are safe, eco-friendly and economical. Our products enhance people''s safety and reduce contamination to environment, also during their subsequent recycling and disposal.
Your Company design processes to ensure that people''s health and safety and effects on the environment. Your company is fully prepared to deal with emergencies due to fire & safety. Your Company reviews its processes and its behavior on a regular basis and measure their effects on people and on the nature. This is the process of identifying potential for improvement, and ensures the effectiveness of our program towards work safety, people''s health and the environment.
During the year the Company had cordial relations with workers, staff and officers. The shop floor management is done through personal touch, using various motivational tools and meeting their training needs requirements. The Company has taken initiative for safety of employees and implemented regular safety, imparted machine safety training, wearing protective equipments etc.
INTERNAL CONTROL SYSTEM
The Company has adequate internal control systems and procedures designed to effectively control the operations at its corporate office and plants. The internal control systems are designed to ensure that the financial and other records are reliable for the preparation of financial statements and for maintaining assets. The Company has well designed Standard Operating Procedures. Internal Auditors conduct audit covering a wide range of operational matters and ensure compliance with specified standards. Planned periodic reviews are carried out by Internal Audit. The findings of Internal Audit are reviewed by the top management and by the Audit Committee of the Board of Directors.
Based on the deliberations of Statutory Auditors to ascertain their views on the financial statements including the financial reporting System and Compliance to Accounting Policies and Procedures, the Audit Committee was satisfied with the adequacy and effectiveness of the Internal Controls and System followed by the Company.
OUTLOOK
The Indian automotive industry is affected materially by the general economic conditions in India and around the world. Muted industrial growth in India during FY 201516 along with continuing higher inflation and interest rates continue to pose risks to overall growth in this market. The automotive industry in general is cyclical and economic slowdowns in the recent past have affected the manufacturing sector including the automotive and related industries in India. Persistence of negative economic trends or further deterioration in key economic factors such as growth rate, interest rates and inflation as well as reduced availability of financing for vehicles at competitive rates could materially and adversely affect the Company automotive sales in India and results of operations key for this year.
Your company has advantage of having strong brand value, large network, widely spread product range, strong partners and collaborators relationship. It is fully prepared to meet the challenge of competition leveraging its competitive strengths of network quality, technology, product range and brand value.
risk AND AREA OF CONCERN:
Your company is exposed to various business risks. These risks are driven through external factors like economic environment, competition, regulations etc. Cost & Quality are critical success factors in current business environment. Risk of losing market share/ ability to maintain high share or losing business share with key accounts are rooted on these factors.
The Company has laid down a well defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process. A detailed exercise is being carried out to identify, evaluate, manage and monitor and non-business risks. The Audit Committee and Board periodically review the risks and suggest steps to be taken to manage/mitigate the same through a properly defined framework.
During the year, a risk analysis and assessment was conducted and no major risks were noticed, which may threaten the existence of the Company.
opportunities and threats
Your Company has growth opportunities in industrial and automotive division''s specially commercial vehicle divisions. Your Company has strategies in place to tap the potential. However the new entrants and aggressive expansion plan of existing competitors are biggest challenge. The competitive price, network strategy, technology & product quality are critical to our success. Your company has advantage of having strong brand value, large network, widely spread product range, strong partners and collaborators relationship. It is fully prepared to meet the challenge of competition leveraging its competitive strengths of network quality, technology, product range and brand value. With increasing awareness and education of the Indian customer, a range of non-vehicular products and services like spares, after sales, annual maintenance contracts etc are also gaining popularity in demand. India has emerged as a major hub for global manufacturing with its advantage of lower input costs, availability of local supplier base and high domestic demand.
In addition to the above, the Company also has the advantage of a strong in-house design and development facility and professionals. The Company is focusing on increasing its global presence, as an effective hedge against domestic downturn as well as a growth opportunity.
The automotive industry, and the demand for automobiles, is influenced by general economic conditions, including among other things, rates of economic growth, availability of credit, disposable income of consumers, interest rates, environmental and tax policies, safety regulations, freight rates and fuel and commodity prices. Negative trends in any of these factors impacting the regions where the Company operates could materially and adversely affect our business, results of operations and financial condition. The Indian automotive industry is affected materially by the general economic conditions in India and around the world. The progress of the economy also depends on the political situation around the world.
The automotive industry in general is cyclical and economic slowdowns in the recent past have affected the manufacturing sector including the automotive and related industries in India.
WHISTLE BLOWER POLICY
The Company believes in the conduct of the affairs of its constituents in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity and ethical conduct. The Company has a Whistle Blower Policy under which the employees are free to report violations of the applicable laws and regulations and Code of Conduct.
Whistle Blower Policy is available on the website of the company at www.akartoolsltd.com.
DIRECTORS AND KEY MANAGERIAL personnel
On the recommendation of Nomination and Remuneration Committee, the Board re-designate Shri. Pradeep Nijampurkar, as an Whole Time Director of the Company with effect from 01.04.2016, for a further period of 3 years, subject to approval of the shareholders. We seek your approval for the appointment of Shri. Pradeep Nijampurkar as an Whole Time Director in the ensuing Annual General Meeting.
As per the provisions of the Companies Act, 2013, Shri Sunil Todi & Shri R. L. Gupta will retire by rotation at the ensuing Annual General Meeting and being eligible offered themselves for re-appointment. The Board recommends for their re-appointment.
The information on the particulars of Directors eligible for appointment in terms of regulation 33 of SEBI (Listing Obligations and Disclosure requirements) Regulations, 2015 has been provided in the notes to the notice convening the Annual General Meeting.
independent directors declaration
The Independent Directors have confirmed and declared that they are not disqualified to act as an Independent Director in compliance with provisions of Section 149 of the Companies Act, 2013 and the board is also of the opinion that the Independent Directors fulfill all the conditions specified in the Companies Act, 2013 making them eligible to act as Independent Directors.
BOARD MEETING
During the year under review four Board Meetings and four Audit Committee Meetings were convened and held, the detail of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.
The details of constitution of the Board and its Committees are given in the Corporate Governance Report.
stakeholder relationship COMMITTEE
Stakeholder relationship Committee comprises of Shri. N K Gupta as Chairman, Shri. Sunil Todi and Shri. Pradeep Nijampurkar as members. The details of term of reference of the Committee member, dates of meeting held and attendance of the Directors are given separately in the Corporate Governance Report.
audit committee
The Audit Committee comprises of Shri V K Chopra as Chairman, Shri S N Shukla and Shri Sunil Todi as Members. The details of term of reference of the Committee member, dates of meeting held and attendance of the Directors are given separately in the Corporate Governance Report
CODE OF CONDUCT
Directors, Key Managerial Personnel and Senior Management of the Company have confirmed compliance with the Code of Conduct applicable to the Directors and employees of the Company. The Code of Conduct is available on the Company''s website www. akartoolsltd.com
LISTING
The equity shares continue to be listed on the BSE Limited (BSE). The Company has paid annual listing fee for the financial year 2016-17 to BSE..
particulars of contracts or ARRANGEMENTS WITH RELATED PARTIES
All related party transactions those were entered during the financial year were in the ordinary course of business and on an arm''s length basis. There were no materially significant related party transactions entered into by the Company with Promoters, Directors, Key Managerial Personnel or other persons which may have a potential conflict with the interest of the Company.
All related party transactions are placed before the Audit Committee for review and approval. Prior omnibus approval is also obtained from the Audit Committee for the related party transactions which are of repetitive nature and which can be foreseen and accordingly the required disclosures are made to the Audit Committee on quarterly basis in terms of the omnibus approval of the Committee.
The policy on materiality of related party transactions and also on dealing with related party transactions as approved by the Audit Committee and the Board of Directors is uploaded on the web-site under the following web-link ''http://www.akartoolsltd.com
Since all related party transactions entered into by the Company were in the ordinary course of business and were on an arm''s length basis and there were no material related party transactions during the year, Form AOC - 2 is not applicable to the Company.
annual return
The particulars required to be furnished under section 134(3) (a) of the Companies Act, 2013 read with Companies (Management and Administration) Rules, 2014as prescribed in Form No. MGT -9 is given in Annexure ''III''.
DEMATERIALISATION OF SHARES
The shares of your Company are being traded in electronic form and the Company has established connectivity with both the depositories i.e National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). In view of the numerous advantages offered by the Depository system, Members are requested to avail the facility of dematerialization of shares with either of the Depositories as aforesaid, As on March 31st, 2016, 97.9% of the share capital stands dematerialized.
energy conservation, technology absorption, and foreign exchange EARNINGS AND OUTGO
The information relating to energy conservation, technology absorption and foreign exchange earnings and outgo as required to be disclosed under the Companies (Accounts) Rules, 2014 are in Annexed-IV as a part of this Annual Report.
MATERIAL DEVELOPMENTS IN HUMAN resources /industrial RELATION front, including number of people employed:
The Company believes that success of any organization depends upon availability of human capital. Our assets are our people who work to innovate beyond and challenge established boundaries. Thus, employees are vital to the Company. We have a favorable work environment that encourages innovation and meritocracy. We focus on attracting the best and brightest talent and the meritocracy is the sole criteria for selection. The Company firmly believes that manpower is the most important asset, above all. The Company has good cordial relation with trade union and employees representatives and views these relationships as contributing positively to the success of the business.
The total number of employees of the Company as on March 31, 2016 stood at 471.
particulars of employees
Disclosures pertaining to remuneration and other details are required under section 134 (3)(q) and 197(12) of the Companies Act, 2013 read with Rule 5(1) and 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 provided in the Board Report.
DISCLOSURE AS PER SEXUAL HARRASEMENT OF WOMEN AT workplace (prevention, prohibition AND REDRESSAL) ACT, 2013
Pursuant to Section 22 of the Sexual Harassment of Women at Workplace (Prevention and Prohibition and Redressal) Act, 2013 read with Rule 14, the internal committee constituted under the said act.
During the year, no complaints with allegations of sexual harassment were filed with the Company.
ANNEXURES FORMING A PART OF DIRECTOR''S REPORT
The Annexure referred to in this Report and other information which are required to be disclosed are annexed herewith and form a part of this Report:
Annexure |
particulars |
I |
Particulars of Employees under Section 134(3)(q) and Section 197(12) of the Companies Act, 2013 |
II |
Secretarial Audit Report |
III |
Extract of the Annual Return in Form MGT-9 |
IV |
Particulars of Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo |
V |
Corporate Governance Report |
DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to the provisions of sub-section (5) of Section 134 of the companies act, 2013, your directors confirm that:
1 in the preparation of annual accounts, the applicable accounting standard had been followed along with proper explanation relating to material departures.
2 the Directors had in consultation with Statutory Auditors, selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the Net Profit of the Company for the Financial Year Ended 31st March, 2016.
3 the Directors have taken proper and sufficient care to maintain adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities.
4 the Directors have prepared the annual accounts on a ''going concern'' basis.
5 The Directors have laid down adequate Internal Financial Controls to be followed by the Company and such Internal Financial Controls were operating effectively during the Financial Year Ended 31st March, 2016.
6 The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively throughout the Financial Year Ended 31st march, 2016.
FORWARD LOOKING STATEMENTS
This Report contains forward-looking statements that involve risks and uncertainties.
When used in this Report, the words "anticipate", "believe", "estimate", "expect", "intend", "will" and other similar expressions as they relate to the Company and/or its businesses are intended to identify such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results, performance or achievements could differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates. This Report should be read in conjunction with the financial statements included herein and the notes thereto.
ACKNOWLEDGEMENT
Your Directors wish to place on record the their appreciation of the assistance and cooperation received from its bankers, customers (domestic as well as overseas), suppliers, shareholders, staff from each level and other business associates for their valuable contribution in the growth of the organization whose continuous support and cooperation has been a source of strength to the company enabling it to achieve its goals. The Directors look forward to their continued support in future.
On behalf of the Board of Directors
Place: Aurangabad R.L.Gupta
Date: 12th August, 2016 Chairman
CIN: L29220MH1989PLC052305 (DIN:00061861)
Website: www.akartoolsltd.com
E-mail: [email protected]
Reg. Office: 304, Abhay Steel House,
Baroda Street, Carnac Bunder,
Mumbai- 400009.
Mar 31, 2015
Dear Shareholder's
The Directors hereby present their Twenty Sixth Annual Report along
with Audited Statement of Accounts of the Company for the year ended
March 31, 2015.
FINANCIAL RESULTS AT A GLANCE:
(Rs. in Lacs)
PARTICULARS 31st March, 2015 31st March, 2014
Net Revenue from operations 16635.57 14255.59
Other Income 8.29 9.30
Profit before tax and exceptional items 92.90 135.81
Exceptional items 87.77 0.00
Profit before tax 180.67 135.81
Profit After Tax 122.68 68.96
Balance Brought Forward 1110.71 1094.61
Amount available for Appropriation 1233.39 1163.57
APPROPRIATIONS:
Dividend 37.76 32.36
Dividend Tax 6.42 5.50
General Reserve 0 15.00
Balance Carried Forward 1189.21 1110.71
1233.39 1163.57
Earnings Per Share 2.27 1.28
The Company achieved total turnover of Rs. 16635.57 lacs against Rs.
14255.59 lacs in the previous year which is more than 16.70%. The Net
Profit after tax was also increased to Rs. 122.68 lacs against Rs 68.96
in the previous year. This could be achieved by adding new customer
both in India and abroad
The Company expects to improve its performance during the year, as the
addition of new customers will results in increase turnover and profit.
The market for the Automobile Industry is still competitive but hope
that for Next Quarter of Current Year things will start improving
DIVIDEND
Your Directors recommend a dividend of 7 % (i.e. Rs. 0.70 per share) on
53, 94, 005 equity shares of Rs.10 each for 2014- 15, Subject to the
approval of the Shareholders at the Annua General Meeting to be held on
30th September, 2015
DIRECTORS
Shri N. K. Gupta, Director of the Company will retire by rotation at
the ensuing Annual General Meeting pursuant to the provisions of
Section 152 of Companies Act, 2013 and being eligible and offered
himself for re-appointment
INDEPENDENT DIRECTORS
The Board of Directors of the Company has, on the recommendation of
Nomination and Remuneration Committee, appointed Smt Shilpa Sharma as
Additional Director w.e.f. 31.03.2015 in the category of Independent &
Non- Executive Director.
The Board has received declarations from all Independent Directors of
the Company confirming that they meet with the criteria of Independence
as prescribed under Sub-Section (6) of Section 149 of the Companies
Act, 2013 and who in the opinion of the Board fulfills the conditions
specified in the Act and the rules made there under and are Independent
of the Management. Thus the Board recommended their appointment as
Independent Directors.
Brief details of the Director, who is to be appointed/re- appointed as
mentioned herein above has been furnished along with the Explanatory
Statement to the Notice of the ensuing Annual General Meeting.
DIRECTOR'S RESPONSIBILITY STATEMENT
Pursuant to the provisions of sub-section (5) of Section 134 of the
companies act, 2013, your directors confirm that:
1 in the preparation of annual accounts, the applicable accounting
standard had been followed along with proper explanation relating to
material departures.
2 the Directors had in consultation with Statutory Auditors, selected
such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company at the end of
the financial year and of the Net Profit of the Company for the
Financial Year Ended 31st March, 2015.
3 the Directors have taken proper and sufficient care to maintain
adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and
preventing and detecting fraud and other irregularities.
4 the Directors have prepared the annual accounts on a 'going concern'
basis.
5 The Directors have laid down adequate Internal Financia Controls to
be followed by the Company and such Interna Financial Controls were
operating effectively during the Financial Year Ended 31st March, 2015.
6 The Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively throughout the Financial Year Ended
31st March, 2015.
AUDITORS
The Shareholders of the Company in their Twenty Fifth Annua General
Meeting held on 29th September, 2015 had accorded their approval
pursuant to the provisions of Section 139, 141 and other applicable
provisions of Companies Act, 2013 and rules made there under to appoint
M/s A. K. Bagadia & Co., Chartered Accountants, as Statutory Auditor of
the Company of the period of three years commencing from the conclusion
of Twenty Fifth Annual General Meeting until the conclusion of Twenty
Eighth Annual General Meeting
The Board of Directors of the Company has pursuant to the provisions of
Section 139, recommended the ratification of appointment M/s A. K.
Bagadia & Co, Chartered Accountants for the approval of the
Shareholders from the conclusion of Twenty Sixth Annual General Meeting
till the conclusion of Twenty Seventh Annual General Meeting
The Auditor's report to the Shareholders for the year under review does
not contain any qualification, reservation or adverse remark or
disclaimer.
SECRETARIAL AUDIT
The Secretarial Auditors, M/s KMP & Associates, Company Secretaries,
has issued Secretarial Audit Report of the Financia Year 2014-15
pursuant to Section 204 of the Companies Act, 2013, which is annexed to
the Director's Report as Annexure I
COST AUDITOR
Your Directors have appointed M/s B. R. Chandak & Co, Cost Accountants,
as the Cost Auditors for the Financial Year 2015- 16. M/s B. R. Chandak
& Co , Cost Accountants will submit the cost audit report alongwith
annexure to the Centra Government (Ministry of Corporate Affairs) in
the prescribe form within specified time and at the same time forward a
copy of such report to your company.
PARTICULARS OF LOANS, INVESTMENTS AND GUARANTEES:
Details of investments made have been given in note no. 12 to the
Financial Statement.
Details of Loans given is given note no. 13 to the Financial Statement.
The Company has not given any guarantee pursuant to the provisions of
Section 186 of the Companies Act, 2013.
RELATED PARTY TRANSACTIONS:
The Company has entered into contract/arrangements with the related
parties in the ordinary course of business and on arm's length basis.
Thus provisions of Section 188(1) of the Act are not applicable.
CORPORATE GOVERNANCE
Your Company reaffirms and remains committed to high standards of
Corporate Governance. The Company believes that appropriate disclosures
procedures, transparent accounting policies, strong and independent
Board practices and highest levels of ethical standards are critical to
enhance and retain investor trust and generate sustainable corporate
growth. Your Company established systems and procedures to comply with
the amended provisions of the Code of Corporate Governance and complied
with all the requirements of the Code of Corporate Governance as per
Clause 49 of the Listing Agreement with the stock exchange. A Report
separately titled "Corporate Governance" along with Auditors'
Certificate, regarding compliance of the same are annexed as a part of
this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS
As required under Clause 49 of the Listing Agreement with stock
exchange, a management discussion and analysis report, inter-alia,
deals adequately with operations and the current and future outlook of
the Company is annexed and form as part of this Annual Report.
WHISTLE BLOWER POLICY
The Company believes in the conduct of the affairs of its constituents
in a fair and transparent manner by adopting the highest standards of
professionalism, honesty, integrity and ethical conduct. The Company
has a Whistle Blower Policy under which the employees are free to
report violations of the applicable laws and regulations and Code of
Conduct.
Whistle Blower Policy is available on the website of the company at
www.akartoolsltd.com
ANNUAL RETURN
The extract of Annual Return is annexed to Director's Report as
Annexure II
ADEQUACY OF INTERNAL FINANCIAL CONTROLS
Your Company's internal financial control systems are commensurate with
the nature, size and complexity of the businesses and operations. These
are routinely tested and certified by Statutory as well as Internal
Auditors. Significant audit observations and the follow up action are
reported to the Audit Committee.
PARTICULARS OF EMPLOYEES
Disclosures pertaining to remuneration and other details are required
under section 197(12) of the Act read with Rule 5(1) and 5(2) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 provided in the Board Report as Annexure III
FIXED DEPOSIT
Your Company has not accepted any deposits, covered under Chapter V of
the Companies Act, 2013 and hence no details pursuant to Rule 8(v) anf
8(vi) of the Companies (Accounts) Rules, 2014 are reported
DISCLOSURE AS PER SEXUAL HARRASEMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013
Pursuant to Section 22 of the Sexual Harassment of Women at Workplace
(Prevention and Prohibition and Redressal) Act, 2013 read with rule 14,
the internal committee constituted under the said act has confirmed
that no complaint/case has been filed/pending with the Company during
the year.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to energy conservation, technology absorption
and foreign exchange earnings and outgo as required to be disclosed
under the Companies (Accounts) Rules, 2014 are in Annexed as a part of
this Directors Report as Annexure IV.
ACKNOWLEDGEMENT
Your Directors wish to place on record the their appreciation of the
assistance and cooperation received from its bankers, customers
(domestic as well as overseas), suppliers, shareholders, staff from
each level and other business associates for their valuable
contribution in the growth of the organization whose continuous support
and cooperation has been a source of strength to the company enabling
it to achieve its goals. The Directors look forward to their continued
support in future.
By the Order of the Board of Directors
Place : Aurangabad. (N.K.Gupta)
Date : 12th August, 2015 Chairman
Mar 31, 2014
Dear Shareholders
The Directors hereby present their Twenty Fifth Annual Report along
with Audited Statement of Accounts of the Company for the year ended
March 31, 2014.
Financial Results at a glance: ( Rs. in lacs)
PARTICULARS 31st March, 2014 31st March, 2013
Sales & Other Income 14,264.89 14,206.35
Profit Before Tax 135.81 158.79
Profit After Tax 68.96 92.86
Balance Brought Forward 1,094.61 1,047.77
Amount available for Appropriation 1,163.57 1,140.63
APPROPRIATIONS:
Dividend 32.36 26.97
Dividend Tax 5.50 4.05
General Reserve 15.00 15.00
Balance Carried Forward 1,110.71 1,094.61
1,163.57 1,140.63
Earnings Per Share 1.28 1.72
The Company achieved total turnover of Rs. 14264.89 lacs against Rs.
14206.35 lacs in the previous year. The net profit after tax was Rs.
68.96 lacs against Rs. 92.86 lacs in the previous year which is mainly
attributable to the rise in the cost of inputs. Company now
aggressively working in various new market in India and abroad with
various OEM''s for their products. The benefit of the same would be
available to Company once the economy starts reviving.
DIVIDEND
Your Directors recommend a dividend of 6% on 53,94,005 equity shares of
Rs.10 each for 2013-14, Subject to the approval of the Shareholders at
the Annual General Meeting to be held on 29th September, 2014.
AUDITORS
The Auditors of the company M/s A. K. Bagadia & Co., Chartered
Accountants, retire at this Annual General Meeting and are eligible for
reappointment. The Audit Committee and your Board recommend their
reappointment.
SEBI REGULATIONS & LISTING FEES:
The Annual Listing Fees for the year under review have been paid to
Bombay Stock Exchange Limited where your Company''s Shares are listed.
Company has initiated the process of delisting with Delhi Stock
Exchange which is in process.
DIRECTORS
Shri Pradeep Nijampurkar, Director of the Company will retire by
rotation at the forthcoming Annual General Meeting and being eligible
have offered themselves for re- appointment as Directors of the
Company, liable to retire by rotation, in the said meeting.
INDEPENDENT DIRECTORS
Pursuant to Section 149 & 152 of the Companies Act, 2013 read with
Rules made there under, the Independent Directors shall hold office for
a period of up to 5 consecutive years and shall not be liable to retire
by rotation. They may be appointed for a maximum of two consecutive
terms of up to 5 years each. In terms of revised clause 49 of the
Listing Agreement which will be applicable from 01st October, 2014, In
case the Independent Directors has already served for 5 or more years,
he can be appointed for only one term up to 5 years only. On 22nd
August, 2014, the Nomination and Remuneration Committee recommended the
appointment of Shri V K Chopra & Shri. Surendra Nath Shukla, all the
existing Independent Directors for one more consecutive term of 5
years not liable to retire by rotation.
The Board has received declarations from all Independent Directors of
the Company confirming that they meet with the criteria of Independence
as prescribed under Sub-Section (6) of Section 149 of the Companies
Act, 2013 and who in the opinion of the Board fulfills the conditions
specified in the Act and the rules made there under and are Independent
of the Management. Thus the Board recommended their appointment as
Independent Directors.
Brief resume /details of the Director, who is/are to be
appointed/re-appointed as mentioned herein above has been furnished
along with the Explanatory Statement to the Notice of the ensuing
Annual General Meeting.
DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to the requirements of Section 217(2AA) of the Companies Act,
1956 it is hereby confirmed
1 Those in the preparation of annual accounts, the applicable
accounting standard have been followed along with proper explanation
relating to material departures.
2 That the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit or
loss of the Company for the Financial Year Ended 31st March, 2014.
3 That the Directors have taken proper and sufficient care to maintain
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and
preventing and detecting fraud and other irregularities and
4 That the Directors have prepared the annual accounts on a ''going
concern'' basis.
MANAGEMENT DISCUSSION AND ANALYSIS
As required under Clause 49 of the Listing Agreement with stock
exchange, a management discussion and analysis report, inter-alia,
deals adequately with operations and the current and future outlook of
the Company is annexed and form as part of the Annual Report.
CORPORATE SOCIAL RESPONSIBILITY
The Company has spent Rs 1.34 Lacs for education of underprivileged
class of children.
CORPORATE GOVERNANCE
Your Company reaffirms and remains committed to high standards of
Corporate Governance. The Company believes that appropriate disclosures
procedures, transparent accounting policies, strong and independent
Board practices and highest levels of ethical standards are critical to
enhance and retain investor trust and generate sustainable corporate
growth. Your Company established systems and procedures to comply with
the amended provisions of the Code of Corporate Governance and complied
with all the requirements of the Code of Corporate Governance as per
Clause 49 of the Listing Agreement with the stock exchange. A Report
separately titled "Corporate Governance" along with Auditors''
Certificate, regarding compliance of the same are annexed as a part of
this Annual Report.
PARTICULARS OF EMPLOYEES
The Particulars of Employees as required under Section 217(2A) of the
Companies Act, 1956 is not given, since no employee of the Company
draws remuneration in excess of the limit as prescribed in the above
section.
ENERGY CONSERVATION, TECHNOLOGY
ABSORPTION, AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to energy conservation, technology absorption
and foreign exchange earnings and outgo as required to be disclosed
under the Companies (Disclosure of Particulars in the Report of Board
of Directors) Rules, 1988 are in Annexed as a part of this Annual
Report.
ACKNOWLEDGEMENT
Your Directors wish to place on record the appreciation of the
assistance and co-operation received from its bankers, customers
(domestic as well as overseas), suppliers, shareholders, staff from
each level and other business associates for their valuable
contribution in the growth of the organization whose continuous support
and cooperation has been a source of strength to the company enabling
it to achieve its goals. The Directors look forward to their continued
support in future.
On behalf of the Board of Directors
Place: Aurangabad. R. L. GUPTA
Date: 22nd August, 2014. Chairman
Mar 31, 2013
Dear Shareholders,
The Directors hereby present their Twenty Fourth Annual Report along
with Audited Statement of Accounts of the Company for the year ended
March 31, 2013.
1. PERFORMANCE OF THE COMPANY
I. Financial Results at a glance:
( Rs. in lacs)
PARTICULARS 31st March, 2013 31st March, 2012
Sales & Other Income 14206.35 14295.22
Profit Before Tax 158.79 269.94
Profit After Tax 92.86 222.96
Balance Brought Forward 1047.77 871.16
Amount available for
Appropriation 1140.63 1094.12
APPROPRIATIONS:
Dividend 26.97 26.97
Dividend Tax 4.05 4.38
General Reserve 15.00 15.00
Balance Carried Forward 1094.61 1047.77
1140.63 1094.12
Earnings Per Share 1.74 4.13
II. Operations
The financial year under review began with a positive note. However,
the economy started witnessing effect of inflationary trend during the
second half of the year which together with tightening of the monetary
policy resulted in pressure on overall performance of the Company.
Despite the pressure in International Market, the Company could achieve
its Sales projections. The stress on cost of raw material and other
expenses was partly offset by savings in financial cost by prudent
financial management.
The Company achieved total turnover of Rs. 14206.35 lacs against Rs.
14295.22 lacs in the previous year. The net profit after tax was Rs.
92.86 lacs against Rs. 222.96 lacs in the previous year which is mainly
attributable to the rise in the cost of inputs. Company now
aggressively opens new market in India and abroad for its products.
Further the company is leveraging its customer base by developing new
components parts to enhance the sales and profitability.
2. DIVIDEND
Your Directors recommended a dividend of 5 % (i.e. Rs. 0.50 per share)
on 53, 94,005 equity shares of Rs.10 each for 2012- 13, Subject to the
approval of the Shareholders at the Annual General Meeting to be held
on 27th September, 2013.
3. AUDITORS
The Auditors of the company M/s A. K. Bagadia & Co., Chartered
Accountants, retire at this Annual General Meeting and are eligible for
reappointment. The Audit Committee and your Board recommend their
reappointment.
4. COST AUDITORS
Complying with the provisions of Section 233B of the Companies Act,
1956 and the MCA General Circulars, the Audit Committee has recommended
and the Board of the Directors has appointed M/s B. R. Chandak & Co.,
Cost Accountants, as Cost Auditors of the Company.
5. SEBI REGULATIONS & LISTING FEES:
The Annual Listing Fees for the year under review have been paid to
Bombay Stock Exchange Limited where your Company''s Shares are listed.
Company has initiated the process of delisting with Delhi Stock
Exchange which is in process.
6. DIRECTORS
Shri RaghunandanLal Gupta and Shri. Ravi Machhar retires by rotation
and offer themselves for re- appointment, which your Directors consider
it to be in the best interests of the Company and recommend their
re-appointment. Appropriate resolutions seeking your approval for their
re-appointment are appearing in the notice convening the 24th Annual
General Meeting.
Shri Bhagwan Das Narang was appointed by the Board of Directors as an
Additional Director of the Company w.e.f. 14.02.2013. In terms of
Section 260 of the Companies Act,1956 Shri Bhagwan Das Narang holds
office up to conclusion of the ensuing Annual General Meeting of the
Company. Notices under Section 257 of the Companies Act, 1956 have been
received from member of the Company proposing Shri Bhagwan Das Narang
as a candidate for the office of Director, liable to retire by
rotation, which your Directors consider it to be in the best interests
of the Company and recommend his appointment. Appropriate resolution
seeking your approval to his appointment is appearing in the notice
convening the 24th Annual General Meeting.
During the year Ms. Rajashree V. Dubey has been appointed by the Board
of Directors as a Company Secretary.
7. DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to the requirements of Section 217(2AA) of the Companies Act,
1956 it is hereby confirmed
1 Those in the preparation of annual accounts, the applicable
accounting standard have been followed along with proper explanation
relating to material departures.
2 That the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit or
loss of the Company for that period.
3 That the Directors have taken proper and sufficient care to maintain
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and
preventing and detecting fraud and other irregularities and
4 That the Directors have prepared the annual accounts on a ''going
concern'' basis.
8. MANAGEMENT DISCUSSION AND ANALYSIS
As required under Clause 49 of the Listing Agreement with stock
exchange, a management discussion and analysis report, inter-alia,
deals adequately with operations and the current and future outlook of
the Company is annexed and form as part of the Annual Report.
9. CORPORATE GOVERNANCE
Your Company reaffirms and remains committed to high standards of
Corporate Governance. The Company believes that appropriate disclosures
procedures, transparent accounting policies, strong and independent
Board practices and highest levels of ethical standards are critical to
enhance and retain investor trust and generate sustainable corporate
growth. Your Company established systems and procedures to comply with
the amended provisions of the Code of Corporate Governance and complied
with all the requirements of the Code of Corporate Governance as per
Clause 49 of the Listing Agreement with the stock exchange. A Report
separately titled "Corporate Governance" along with Auditors''
Certificate, regarding compliance of the same are annexed as a part of
this Annual Report.
10. PARTICULARS OF EMPLOYEES
The Particulars of Employees as required under Section 217(2A) of the
Companies Act, 1956 is not given, since no employee of the Company
draws remuneration in excess of the limit as prescribed in the above
section.
11. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to energy conservation, technology absorption
and foreign exchange earnings and outgo as required to be disclosed
under the Companies (Disclosure of Particulars in the Report of Board
of Directors) Rules, 1988 are in Annexed as a part of this Annual
Report.
12. ACKNOWLEDGEMENTS
Your Directors wish to place on record the appreciation of the
assistance and cooperation received from its bankers, customers
(domestic as well as overseas), suppliers, shareholders, staff from
each level and other business associates for their valuable
contribution in the growth of the organization whose continuous support
and cooperation has been a source of strength to the company enabling
it to achieve its goals.
On behalf of the Board of Directors
Place: Aurangabad. R. L. GUPTA
Date: 12th August, 2013. Chairman
Mar 31, 2010
The Directors present the 21st Annual Report along with Audited
Statement of Accounts for the year ended March 31, 2010.
Financial results at a glance (rs. in lacs)
March 31, 2010 March 31, 2009
Sales & other income 11,353.41 8,968.93
Profit before tax 339.36 165.86
Profit after tax 204.50 40.14
Balance brought forward 446.10 484.07
650.60 524.21
Appropriations:
Dividend 64.73 53.94
Dividend tax 11.00 9.16
General reserve 15.00 15.00
Balance carried forward 559.87 446.11
650.60 524.21
Earning per share 3.79 0.74
Operations
Net sales turnover was 111,353.41 lacs as compared with t 8,968.93 lacs
during 2008-09. The profit before tax during 2009-10 was at t 339.36
lacs (Previous Year 165.86 lacs)
All expansion programs under progress are on schedule.
Dividend
Your Directors recommended a dividend of 12% (i.e.Rs. 1.20 per share) on
53,94,005 equity shares of Rs. 10 each for 2009-10. The previous year
dividend paid was at 10% (i.e. t 1.00 per share).
Management discussion and analysis
As required under Clause 49 of the Listing Agreement with stock
exchange, a Management discussion and analysis report, inter-alia,
deals adequately with operations and the current and future outlook of
the Company is annexed and forms a part of the Directors Report.
Auditors
M/s Hemant J. Vora & Co., Chartered Accountants, the present statutory
auditors retire at this Annual General Meeting and are eligible for
reappointment. The Audit Committee and your Board recommend their
reappointment.
Directors
Shri R. L. Gupta and Shri P. M. Nijampurkar retire by rotation and
offer themselves for reelection, which your Directors consider to be in
the best interests of the Company.
Directors responsibility statement
Pursuant to the requirements of Section 217(2AA) of the Companies Act,
1956 it is hereby confirmed
1 That in the preparation of annual accounts, the applicable accounting
standard were followed along with proper explanation relating to
material departures
2 That we selected such accounting policies and applied them
consistently and made judgments and estimates that were reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit or loss
of the Company for that period.
3 That we took proper and sufficient care to maintain adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of the Company and preventing and
detecting fraud and other irregularities
4 That we prepared the annual accounts on a going concern basis.
Corporate Governance
Your Company reaffirms and remains
committed to high standards of Corporate Governance. The Company
believes that appropriate disclosures procedures, transparent
accounting policies, strong and independent Board practices and highest
levels of ethical standards are critical to enhance and retain investor
trust and generate sustainable corporate growth. Your Company
established systems and procedures to comply with the amended
provisions of the Code of Corporate Governance and complied with all
the requirements of the Code of Corporate Governance as per Clause 49
of the Listing Agreement with the stock exchange. A Report separately
titled "Corporate Governance" along with Auditors Certificate,
regarding compliance of the same are annexed as a part of this Annual
Report.
Particulars of Employees
The Particular of Employees as required under Section 217(2A)ofthe
Companies Act, 1956 is not given, since no employee of the Company
draws remuneration in excess of the limit as prescribed in the above
section.
Energy conservation, technology absorption, and foreign exchange
earnings and outgo
The information relating to energy conservation, technology absorption
and foreign exchange earnings and outgo as required to be disclosed
under the Companies (Disclosure of Particulars in the Report of Board
of Directors) Rules, 1988 is given in Annexure forming part of this
Report.
Acknowledgements
Your Directors wish to place on record the appreciation of the
assistance and cooperation received from bankers, customers (domestic
as well as overseas), suppliers, shareholders, staff from each level
and other business associates for their valuable contribution in the
growth of the organization whose continuous support and cooperation has
been a source of strength to the company enabling it to achieve it
goals.
On behalf of the Board
Place: Aurangabad R. L. Gupta
Date: August 21, 2010 Chairman