Mar 31, 2018
Dear Members,
The Board of Directors/Resolution Professional presents to the Members the 32nd Annual Report of the Company, which includes the Boardsâ Report (âAnnual Reportâ).
In accordance with the applicable provisions of the Insolvency and Bankruptcy Code 2016 (âIBC/Codeâ), the Corporate Insolvency Resolution Process (âCIRP Processâ) of Amtek Auto Limited (âCompanyâ) was initiated by the Financial Creditors of the Company. The Financial Creditors petition to initiate the CIRP Process was admitted by the National Company Law Tribunal (âNCLTâ),Chandigarh Bench on July 24, 2017 (âInsolvency Commencement Dateâ). Mr. Dinkar T. Venkatasubramanian was appointed as the Interim Resolution Professional (âIRPâ) to manage the affairs of the Company by the National Company Law Tribunal (âNCLTâ), Chandigarh Bench by Order Dated July 27, 2017. Subsequently, Mr. Dinkar T. Venkatasubramanian was confirmed as the Resolution Professional (âRPâ) by the committee of creditors (âCoCâ) in its Meeting held on 22nd August, 2017. On appointment of the IRP/RP, the powers of the Board of Directors of the Company were suspended.
This report is containing the business and operations of your Company (âthe Companyâ or âAmtek Auto Limitedâ), along with the audited financial statements, for the financial year ended March 31, 2018. The consolidated performance of the Company and its subsidiaries has been referred to wherever required.
FINANCIAL RESULTS
The standalone and consolidated financial statements for the financial year ended March 31, 2018, forming part of this Annual Report, have been prepared in accordance with the Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs.
Key highlights of financial performance of your Company for the financial year 2017-18 are provided below:
FINANCIAL PERFORMANCE
in Rs. lakhs except per equity share data
Particulars |
Standalone |
Consolidated |
||
31st March, 2018 (Year Ended) |
31st March, 2017 (Year Ended) |
31st March, 2018 (Year Ended) |
31st March, 2017 (Year Ended) |
|
Revenue |
153516 |
198246 |
474458 |
458977 |
Less : Expenditures (Excluding Depreciation) |
372964 |
295344 |
674070 |
528217 |
Gross Profit Before Depreciation |
(219448) |
(97098) |
(199612) |
(69240) |
Less : Depreciation |
71054 |
56,876 |
101817 |
70831 |
Profit Before Tax & Exceptional Items |
(290502) |
(153974) |
(301429) |
(140071) |
Share of Profit/loss of Associates/ Joint Venture |
(59116) |
(95238) |
||
Profit/(loss) before Exceptional Item |
(290502) |
(153974) |
(360545) |
(235309) |
Less : Exceptional Item |
870829 |
70378 |
641441 |
71994 |
Profit Before tax |
(1161331) |
(224352) |
(1001986) |
(307303) |
Less : Tax Expenses |
53737 |
(61953) |
25736 |
(59092) |
Profit /(Loss) for the year from Continuing operation |
(1215068) |
(162399) |
(1027722) |
(248211) |
Other Comprehensive Income (net of Tax) |
216 |
12977 |
(15505) |
27088 |
Total Comprehensive Income |
(1214852) |
(149422) |
(1043227) |
(221123) |
Total Comprehensive Income from Discontinued operations |
- |
7415 |
(75795) |
|
Total Comprehensive Income (Profit/Loss) |
(1214852) |
(149422) |
(1035812) |
(296918) |
Earning Per Share for continuing operation |
(489.44) |
(72.24) |
(401.74) |
(111.05) |
Earning Per Share for discontinuing operation |
- |
2.79 |
(16.36) |
|
Earning Per Share for continuing and discontinuing operation |
(489.44) |
(72.24) |
(398.95) |
(127.41) |
PERFORMANCE REVIEW
During the Period under review, the revenue of the Company is Rs. 153516 Lakhs. The loss after tax stood at Rs. 1215068 Lakhs. The Reserve & Surplus position at Rs. (912183) Lakhs.
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 class 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. Pursuant to the aforesaid notification, with effect from April 01, 2016, the Company has transitioned to Ind AS. The transition is carried out from accounting principles generally accepted in India being the previous GAAP.
Accordingly, The annexed financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act), Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time and other relevant provisions of the Act.
MATERIAL CHANGES AND COMMITMENTS
The âCorporate Insolvency Resolution ProcessRs. (CIRP) was initiated, on a petition filed by Corporation Bank, against the Company, which was admitted vide an Order of the National Company Law Tribunal (NCLT), Chandigarh dated July 24, 2017 under the provisions of the Insolvency and Bankruptcy Code 2016 (âCode / IBCâ).
That pursuant thereto, on July 27, 2017, Honâble NCLT appointed Mr. Dinkar T. Venkatasubramanian as Interim Resolution Professional (IRP) in terms of IBC, who was subsequently confirmed as Resolution Professional (RP) by Committee of Creditors (CoC), constituted under IBC. Mr. Dinkar T. Venkatasubramanian, in his capacity as RP, has taken control and custody of the management and operations of the company with effect from July 27, 2017.
Under the CIRP, a resolution plan needs to be submitted by resolution applicant, which is to be approved by the CoC, and would further be approved by NCLT. As per the Code, the RP has to receive, collate and admit all the claims submitted by the creditors of the company. Such claims can be submitted to the RP during the CIRP, till the approval of a resolution plan by the CoC.
The âResolution Planâ wherein Liberty House Group Pte. Limited (LHG) would acquire the control in the company in accordance with the applicable laws and as defined in the resolution plan. The resolution plan was voted upon (between April 4, 2018 and April 5, 2018) &duly approved by the CoC and has further been approved by NCLT vide Order dated July 25, 2018.
Accordingly as also covered in the resolution plan read with the NCLT order dated July 25, 2018, the financial results for the quarter and year ended 31st March, 2018 have been continued to be prepared on a going concern basis.
As per NCLT Order read with the implementation provisions of the Resolution Plan, the Resolution Applicant and Resolution Professional shall jointly supervise the implementation of the Resolution Plan until closing date. The Resolution Professional shall act as Insolvency Professional and will be a member on the Monitoring committee till such closing date.
However, the Resolution Plan has not been implemented within the timelines as prescribed in the approved Resolution Plan. This Resolution Plan was approved by the Honâble NCLT and forms part of court order to be implemented.Accordingly, the lenders, who have formed the COC of the Corporate Debtor during CIRP, have sought directions from Honâble NCLT for reinstatement of the CIRP Process by excluding the time spent in negotiating the plan with Liberty House Group Pte Ltd (âLHGâ). It is likely that in view of the circumstances of Amtek Auto Ltd, the Honâble NCLT will exclude the time spent with LHG in negotiating the Resolution plan and will also be excluded while calculating the 270 days in the CIRP period and will allow opportunity to invite fresh resolution plans to negotiate with the Resolution Applicants who had submitted Resolution plans / Expression of interests. It is a consistent view of the Honâble NCLTs, that liquidation should be ordered only as a last resort after all avenues for a Resolution have been exhausted.
SIGNING OF MOU FOR STAKE SALE OF ITS JV COMPANY
During the period under review, The Amtek Auto Limited has signed and executed Memorandum of Understanding (MOU) with Nippon Steel and Sumitomo Metal Corporation (âNSSMCâ) to sell all equity shares and preference shares held by AAL in its Joint Venture Company, SMI Amtek Crankshaft Private Limited to NSSMC.
CAPITAL STRUCTURE OF THE COMPANY
The Share Capital Structure of the Company is categorised into two classes:-
S.No |
Particulars |
Equity Shares Capital |
Preference Shares Capital |
1. |
Authorised Share Capital |
80,00,00,000 |
35,00,00,000 |
2. |
Paid Up Share Capital |
49,65,10,856 |
- |
3. |
Value per Share |
2 |
100 |
During the period under review, there was no public issue, rights issue, bonus 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.
DIVIDEND
In view of losses incurred during the period under review, the Company does not recommend any dividend on the equity shares for the financial year ended March 31, 2018
FIXED DEPOSITS
During the period under review, your Company has not accepted any Deposits within the meaning of Section 73 of the Companies Act, 2013 from the Shareholders/Public.
SUBSIDIARY AND ASSOCIATES
During the year, the Board of Directors (âthe Boardâ) reviewed the affairs of the subsidiaries. In accordance with Section 129(3) of the Companies Act, 2013, we have prepared consolidated financial statements of the Company, which forms part of this Annual Report. Further, a statement containing the salient features of the financial statements of our subsidiaries, associates, joint ventures in the prescribed Form AOC-1 is annexed to the consolidated financial statements and forms part of the Annual Report which covers the financial position of subsidiaries and associate Company and hence not repeated here for the sake of brevity.
In accordance with Section 136 of the Companies Act, 2013, the audited financial statements, including the consolidated financial statements and related information of the Company and audited accounts of each of its subsidiaries, are available on our website, These documents will also be available for inspection during business hours at our registered office in Haryana, India.
DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
a) Change in Directors during the Financial Year ended March 31, 2018:- During the Financial year ended March 31, 2018 Mr. John Ernest Flintham & Mr. Sanjiv Bhasin resigned From office of Director w.e.f 23rd June,2017 Mr. Bahushrut Lugani has resigned From the Directorship w.e.f 22nd July, 2017, Mrs. Madhu Vj resigned from the office of Director w.e.f. 21st September, 2017. Further Mr. Gautam Malhotra has resigned From directorship of the Company w.e.f 23rd May 2018.
b) Retire by Rotation on the Board of Directors of the Company:- In accordance with the provisions of Section 152 the Companies Act, 2013 and the Article of Association of the Company read with Companies (Appointment and Qualification of Directors) Rules, 2014, Mr. Arvind Dham(DIN: 00047217) retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. However, the same will be given effect to post Corporate Insolvency Resolution Process.
c) Independent Directors:- All the Independent Directors of the Company have given requisite declarations that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 and Regulations 16 & 25 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015
d) Key Managerial Personnel: Pursuant to the provisions of Section 203 of the Act, which came into effect from April 1, 2014, the appointments of Mr. Gautam Malhotra Whole-time director, Mr. Vinod Kumar Uppal, Chief Financial Officer and Mr. Rajeev Raj Kumar, Company Secretary as key managerial personnel of the Company were formalized during the Financial Year Ended 31st March,2018.
Further Mr. Gautam Malhotra has resigned from directorship of the Company w.e.f 23rd May 2018.
There has been no other change in the directors and Key Managerial Personnel of the Company except as stated above and during the year, the non-executive directors of the Company had no pecuniary relationship or transactions with the Company.
NUMBER OF BOARD MEETING
Four (04) meetings of the Board were held during the period, the details of which are provided in the Corporate Governance Report that forms part of this Annual Report. The intervening gap between any two meetings was within the period prescribed under the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations 2015.
No meeting of Board of Directors or Committee was held after the Commencement of Corporate Insolvency Resolution Process (CIRP) w.e.f 24th July 2017.
POLICY ON DIRECTORSâ APPOINTMENT AND REMUNERATION
The Companyâs current policy is to have an appropriate mix of executive and independent directors to maintain the independence of the Board, and separate its functions of governance and management. On March 31, 2018, the Board consists of six members, one of whom is executive Whole Time Director, One is non-executive Director, one is nominee Director, and three are independent directors.
The policy of the Company on directorsâ appointment and remuneration, including criteria for determining qualifications, positive attributes, independence of a director and other matters, as required under sub-section (3) of Section 178 of the Companies Act, 2013, is available on our website i.e. www.amtek.com and also in the Corporate Governance Report. There has been no change in the policy since the last fiscal year. We affirm that the remuneration paid to the directors is as per the terms laid out in the nomination and remuneration policy of the Company.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013, that he / she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
BOARD EVALUATION
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, mandates that the Board shall monitor and review the Board evaluation framework. The framework includes the evaluation of directors on various parameters.
The Companies Act, 2013 states that a formal annual evaluation needs to be made by the Board of its own performance and that of its committees and individual directors. Schedule IV of the Companies Act, 2013 states that the performance evaluation of independent directors shall be done by the entire Board of Directors, excluding the director being evaluated.
The evaluation of all the directors and the Board as a whole was conducted based on the criteria and framework adopted by the Board. The evaluation process has been explained in the corporate governance report. The Board approved the evaluation results as collated by the nomination and remuneration committee.
FAMILIARIZATION PROGRAM FOR INDEPENDENT DIRECTORS
All new independent directors inducted into the Board attend an orientation program. The detail of training and familiarization program is provided in the Corporate governance report and is also available on our website (www.amtek.com).
Further, at the time of the appointment of an independent director, the Company issues a formal letter of appointment outlining his / her role, function, duties and responsibilities. The format of the letter of appointment is available on our website (www.amtek.com)
COMMITTEES OF THE BOARD
The Committees of the Board focus on certain specific areas and make informed decisions in line with the delegated authority.
Details of composition, terms of reference and number of meetings held for respective committees are given in the Report on Corporate Governance.
The Board has laid down separate Codes of Conduct for Non-Executive Directors and Senior Management personnel of the Company and the same are posted on the Companyâs website. All Board Members and Senior Management personnel have affirmed compliance with the Code of Conduct. The Managing Director has also confirmed and certified the same. The certification is enclosed at the end of the Report on Corporate Governance
All the recommendations made by the Audit Committee were accepted by the Board during the financial year 2017-18.
DIRECTORSâ RESPONSIBILTY STATEMENT
Pursuant to the provisions of Section 134(5) of the Companies Act, 2013 the Directors hereby confirm that:
i. in the preparation of Annual Accounts, the applicable Accounting Standards have been followed and there has been no material departure.
ii. they have selected accounting policies were applied consistently and the directors 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 as at 31st March, 2018 and of the profits/losses for the year ended on that date.
iii. they have made proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
iv. they have prepared the annual accounts on a going concern basis.
v. they have laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively.
vi. they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
AUDITORS
M/s Raj Gupta & Co., Chartered Accountants, New Delhi has been appointed as an Statutory Auditors in place of M/s Manoj Mohan & Associates, Chartered Accountants, by the board of directors in its meeting held on 22nd July, 2017.
Subsequently M/s SCV & Co. LLP Chartered Accountants has been appointed as an Statutory Auditors in place of M/s Raj Gupta & Co, Chartered Accountants, by the Committee of Creditors in its meeting held on 21st September, 2017 have authorized Resolution Professional to appoint M/s SCV & Co. LLP Chartered Accountants as Statutory auditor of the Company.
Pursuant to provisions of Section 139 & Sec. 142 of the Companies Act, 2013 and rules framed there under, it is proposed to appoint M/s SCV & Co. LLP Chartered Accountants as Statutory Auditors of the Company from the conclusion of 31st Annual General Meeting (AGM) till the conclusion of Annual General Meeting to be held for financial year 2021-2022 of the Company and on such remuneration as will be fixed by the Board of Directors of the Company.
The Company has received letters from the auditors to the effect that their re-appointment, if made, would be within the prescribed limits under Section 141 of the Companies Act, 2013 and that they are not disqualified for appointment.
AUDITORSâ REPORT
The Auditor Report of the auditor is given as an annexure which forms part of the Annual Report.
COST AUDITORS
The Board has appointed Mr. Yash Pal Sardana (Membership No. 17996), practicing Cost Accountant, as Cost Auditor for conducting the audit of the cost records of the Company for the financial year 2018-19.
SECRETARIAL AUDIT REPORT
The Board has appointed M/s S.N Jain & Co, Ms. Shruti Jain Practicing Company Secretaries, to conduct Secretarial Audit for the financial year 2017-18. The Secretarial Audit Report for the financial year ended March 31, 2018 is annexed herewith marked as Annexure -I to this Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
RECONCILIATION OF SHARE CAPITAL AUDIT REPORT
As per the directive of Securities and Exchange Board of India, M/s S. Khurana & Associates, Company Secretaries, New Delhi, undertook the Reconciliation of Share Capital Audit on a quarterly basis. The purpose of the audit is to reconcile the total number of shares held in National Securities Depository Limited (NSDL), Central Depository Services (India) Limited (CDSL) and in physical form with the respect to admitted, issued and paid up capital of the Company.
CORPORATE GOVERNANCE
The Company is committed to maintain high standards of Corporate Governance and adhere to the Corporate Governance requirements set out by SEBI. The Report on Corporate Governance as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms an Integral part of the Annual Report. Requisite Certificate from the Auditors of the Company confirming compliance with the conditions of Corporate Governance is attached to this Report.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs 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 disclosures.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013
Particulars of Loans, guarantees and investments covered under Section 186 of the Companies Act, 2013 form part of the notes to the financial statements provided in this Annual Report. These loans /guarantees are primarily granted for the furtherance of business of the borrowing companies.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
Information on transactions with related parties pursuant to section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 are given in Annexure - II in Form AOC-2 and the same forms part of this report.
ANNUAL RETURN EXTRACT
As provided under Section 92(3) of the Act, the extract of annual return is given as Annexure-III in the prescribed Form MGT-9, which forms part of this report.
Whereas, in pursuant to the Companies (Amendment) Act, 2017, the act has made substitution under Section 134(3) (a) of the Companies Act, 2013 to place the extract of Annual Return on the website of the Company. As to comply with the said provision the Company has placed the extract of Annual Return in Form MGT-09 on the website of the company i.e www.amtek.com
CORPORATE SOCIAL RESPONSIBILITY
The brief outline of the corporate social responsibility (CSR) policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure-IV of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. For other details regarding the CSR Committee, please refer to the corporate governance report, which forms part of this report. The policy is available on the website of the Company www.amtek.com
RISK MANAGEMENT
The board of directors of the Company has formed a risk management committee to frame, implement and monitor the risk management plan for the Company. The committee is responsible for reviewing the risk management plan and ensuring its effectiveness. The audit committee has additional oversight in the area of financial risks and controls. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.
The development and implementation of risk management policy has been covered in the management discussion and analysis, which forms part of this report.
PARTICULARS OF EMPLOYEES AND REMUNERATION
(a) The ratio of remuneration of each director to the median of employeesâ remuneration as per Section 197(12) of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of the Boardâs report Annexure - V(a).
(b) The statement containing particulars of employees as required under section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is forms part of the Boardâs report Annexure - V(b).
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS & OUTGO
The Energy conservation continues to be an area of focus for Amtek. Initiatives to integrate energy efficiency into overall operations are undertaken through design considerations and operational practices. The key initiatives towards conservation of energy were:
- improved monitoring of energy consumption through smart metering and integration with building management systems;
- setting internal targets for energy performance improvement and institution of rigorous operational controls toward achieving these targets;
- creating awareness amongst associates on energy conservation through campaigns and events;
- focusing on enhancing the component of renewable power in our power sourcing strategy (through on-site solar power generation and third party purchase as feasible);
- Increased focus on procurement of energy efficient equipment.
The relevant data regarding the above is given in the Annexure-VI hereto and forms part of this report. MANAGEMENT DISCUSSION & ANALYSIS REPORT
A detailed review of operations, performance and future outlook of the Company is given separately under the head âManagement Discussion and Analysis Reportâ and forms a part of this report.
DISCLOSURE REQUIREMENTS
Details of the Familiarization Programmed of the independent directors are available on the website of the Company (www.amtek.com)
Policy on dealing related party transaction is available on the website of the Company (www.amtek.com)
The Company has formulated and published a Whistle Blower Policy to provide Vigil Mechanism for employees including directors of the Company to report genuine concerns. The provisions of this policy are in line with the provisions of the Section 177(9) of the Companies Act, 2013 and SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015. (URL: www.amtek.com/investors).
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:
- National Company Law Tribunal (âNCLTâ),Chandigarh Bench on July 24, 2017 (âInsolvency Commencement Dateâ). was appointed Mr. Dinkar T. Venkatasubramanian as the Interim Resolution Professional (âIRPâ) to manage the affairs of the Company by the National Company Law Tribunal (âNCLTâ), Chandigarh Bench by Order Dated July 27, 2017. Subsequently, Mr. Dinkar T. Venkatasubramanian was confirmed as the Resolution Professional (âRPâ) by the committee of creditors (âCoCâ) in its Meeting held on 22nd August, 2017. On appointment of the IRP/RP, the powers of the Board of Directors of the Company were suspended.
- National Company Law Tribunal (âNCLTâ), Chandigarh Bench approved the resolution plan submitted by Liberty House Group PTE Ltd (âLibertyâ) and approved by the CoC (âApproved Resolution Planâ), on July 25, 2018 (âIBC/NCLT Order)
ACKNOWLEDGEMENTS
The Directors Insolvency Professional wish to place on record their appreciation for the sincere services rendered by employees of the Company at all levels. Your Directors also wish to place on record their appreciation for the valuable cooperation and support received from the Government of India, various state governments, the Banks/ financial institutions and other stakeholders such as, shareholders, customers and suppliers, among others. The Directors also commend the continuing commitment and dedication of the employees at all levels, which has been critical for the Companyâs success. The Directors look forward to their continued support in future.
By Order of the Board
For AMTEK AUTO LIMITED
(Arvind Dham)
Date : 22.01.2019 DIN No. 00047217
Place : New Delhi Chairman
Mar 31, 2016
Dear Members,
The Board of Directors hereby submits the report of the business and
operations of your Company (''the Company'' or ''Amtek Auto Limited''),
along with the audited financial statements, for the financial year
ended March 31, 2016. The consolidated performance of the Company and
its subsidiaries has been referred to wherever required.
CHANGE OF FINANCIAL YEAR
In order to comply with Second Proviso of Section 2 (41) of the
Companies Act, 2013, the Company has closed the current financial year
2015-2016 on 31st March, 2016 containing a period of six months from
01st October, 2015 to 31st March, 2016. Thereafter, every financial
year shall commence on the first day of April and end on 31st March.
FINANCIAL RESULTS
As the current financial year comprises a period of six months from
October 1, 2015 to March 31, 2016, therefore, numbers pertaining to
current financial year 2015-16 are not comparable with numbers of
previous financial year 2014-15. However, The Company''s, financial
performance, for the period ended 31st March, 2016 and year ended 30th
September, 2015 is summarized below:
(in Rs, lakhs)
Particulars Standalone Consolidated
31st March, 30th Sep
tember 31st March, 30th
September
2016 2015 2016 2015
(Six Months (Year
Ended) (Six Months (Year
Ended)
Ended) Ended)
Revenue 1,51,167 3,77,378 7,07,887 15,21,346
Less :
Expenditures
(Excluding
Depreciation) 1,74,882 3,59,266 7,03,430 14,27,489
Gross Profit
Before
Depreciation (23,715) 18,112 4,457 93,857
Less :
Depreciation 29,403 52,514 61,494 1,19,890
Profit Before
Tax & Excep
tional Items (53,118) (34,402) (57,037) (26,033)
Less : Excep
tional Item 41,399 15,680 48,135 30,217
Profit Before tax (94,517) (18,722) (1,05,177) (56,250)
Less : Tax
Expenses (28,433) (7163) (30,644) 6,600
Profit /(Loss)
for the year (66,084) (11,559) (74,528) (62,850)
Earning Per
Equity Shares
1. Basic before
extraordinary
item
& exceptional item (29.40) (5.24) (50.42) (44.75)
2. Diluted before
extraordinary item
& exceptional item (29.40) (5.24) (50.42) (44.75)
3. Basic after
extraordinary item
& exceptional item (29.40) (5.24) (50.42) (44.75)
4. Diluted after
extraordinary item
& exceptional item (29.40) (5.24) (50.42) (44.75)
Note : Figures of Financial year 2015-16 is from 1st October, 2015 to
31st March, 2016
FINANCIAL PERFORMANCE
During the Period under review, the revenue of the Company is Rs,
1,51,167 Lakhs. The loss after tax stood at Rs, 66,084 Lakhs. The
Reserve & Surplus position at Rs, 4,38,291 Lakhs.
During the period under review, based upon the Consolidated Financial
Statements, the revenue of the Company is Rs, 7,07,887 Lakhs. The Net
Loss stood at Rs, 74,529 Lakhs. The Reserve & Surplus position as on
31st March, 2016 is Rs, 5,04,480 Lakhs.
MATERIAL CHANGES AND COMMITMENTS
The Company faced a cash flow mismatch and had difficulty in certain
payments to its lenders and in view of the same a Joint Lenders Forum
(hereinafter referred as "JLF") was constituted as per the binding
guidelines of Reserve Bank of India ("RBI") to arrive at the Corrective
Action Plan to assist Amtek overcome the financial stress. These
guidelines dated 26th February, 2014 and as amended on 8th July, 2015
and 25th February, 2016 provide for restructuring and revitalization/
refinance of various facilities advanced by Lenders.
DIVIDEND
In view of losses incurred during the period under review, the Board of
Director does not recommend any dividend on the equity shares for the
financial year ended March 31, 2016
FIXED DEPOSITS
During the period under review, your Company has not accepted any
Deposits within the meaning of Section 73 of the Companies Act, 2013
from the Shareholders/Public.
SUBSIDIARY AND ASSOCIATES
During the period, the Board of Directors (''the Board'') reviewed the
affairs of the subsidiaries. In accordance with Section 129(3) of the
Companies Act, 2013, we have prepared consolidated financial statements
of the Company, which forms part of this Annual Report. Further, a
statement containing the salient features of the financial statement of
our subsidiaries, associates, joint ventures in the prescribed Form
AOC-1 is annexed to the consolidated financial statement and forms part
of the Annual Report which covers the financial position of
subsidiaries and associate Company and hence not repeated here for the
sake of brevity.
In accordance with the provision of Section 136 of the Companies Act,
2013, the audited financial statements, including the consolidated
financial statements and related information of the Company and audited
accounts of each of its subsidiaries, are available on our website,
www.amtek.com. These documents will also be available for inspection
during business hours at our registered office in Haryana, India.
DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provision of Section 152 of the Companies Act,
2013 and in terms of the Articles of Association of the Company, Mr.
J.E. Flintham retire by rotation at the ensuing Annual General Meeting
of the Company and being eligible offer himself for re-appointment.
During the period, the non-executive directors of the Company had no
pecuniary relationship or transactions with the Company.
Pursuant to Regulation 36(3) of SEBI Listing Regulations, 2015 a brief
resume of Mr. John Flintham, proposed to be re- appointed, highlighting
his industry expertise in specific functional areas, names of companies
in which he hold directorships is provided in the notice forming part
of Annual Report. Further, the name of the Companies in which he hold
the memberships/chairmanships of Board Committees, is provided in the
Corporate Governance Section of this Annual Report.
Pursuant to the provisions of Section 203 of the Act, the Company has
duly appointed Key Managerial Personnel, viz. Mr. John Earnest
Flintham and Mr. D.S. Malik the Managing Directors, Mr. Vinod Kumar
Uppal the Chief Financial Officer and Mr. Rajeev Raj Kumar the Company
Secretary. There has been no changes in KMP(s) during the year.
NUMBER OF BOARD MEETING
The Board met two times during the financial year, the details of which
are given in the Corporate Governance Report. The maximum interval
between any two meetings did not exceed 120 days, as prescribed in the
Companies Act, 2013
POLICY ON DIRECTORS'' APPOINTMENT AND REMUNERATION
The Company''s current policy is to have an appropriate mix of executive
and independent directors to maintain the independence of the Board,
and separate its functions of governance and management. On March 31,
2016, the Board consists of eleven members, two of whom are executive
and Managing Directors, and six are independent directors.
The policy of the Company on directors'' appointment and remuneration,
including criteria for determining qualifications, positive attributes,
independence of a director and other matters, as required under
sub-section (3) of Section 178 of the Companies Act, 2013, is available
on our website and also in the Corporate Governance Report. There has
been no change in the policy since the last fiscal year. We affirm that
the remuneration paid to the directors is as per the terms laid out in
the nomination and remuneration policy of the Company.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received necessary declaration from each independent
director under Section 149(7) of the Companies Act, 2013, that he / she
meets the criteria of independence laid down in Section 149(6) of the
Companies Act, 2013 and Regulation 25 of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
BOARD EVALUATION
SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, mandates that the Board shall monitor and review the Board
evaluation framework. The framework includes the evaluation of
directors on various parameters such as :
The Companies Act, 2013 states that a formal annual evaluation needs to
be made by the Board of its own performance and that of its committees
and individual directors. Schedule IV of the Companies Act, 2013 states
that the performance evaluation of independent directors shall be done
by the entire Board of Directors, excluding the director being
evaluated.
The evaluation of all the directors and the Board as a whole was
conducted based on the criteria and framework adopted by the Board. The
evaluation process has been explained in the corporate governance
report. The Board approved the evaluation results as collated by the
nomination and remuneration committee.
FAMILIARIZATION PROGRAM FOR INDEPENDENT DIRECTORS
All new independent directors inducted into the Board attend an
orientation program. The details of training and familiarization
program are provided in the Corporate governance report and is also
available on our website (www.amtek.com).
Further, at the time of the appointment of an independent director, the
Company issues a formal letter of appointment outlining his / her role,
function, duties and responsibilities. The format of the letter of
appointment is available on our website (www.amtek.com)
COMMITTEES OF THE BOARD
The Committees of the Board focus on certain specific areas and make
informed decisions in line with the delegated authority.
Details of composition, terms of reference and number of meetings held
for respective committees are given in the Report on Corporate
Governance.
The Board has laid down separate Codes of Conduct for Non-Executive
Directors and Senior Management personnel of the Company and the same
are posted on the Company''s website. All Board Members and Senior
Management personnel have affirmed compliance with the Code of Conduct.
The Managing Director has also confirmed and certified the same.
DIRECTORS'' RESPONSIBILTY STATEMENT
Pursuant to the provisions of Section 134(5) of the Companies Act, 2013
the Directors hereby confirm that:
i. in the preparation of Annual Accounts, the applicable Accounting
Standards have been followed and there has been no material departure.
ii. they have selected accounting policies were applied consistently
and the directors 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 as at 31st March, 2016 and of the profits for the period
ended on that date.
iii. they have made proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
iv. they have prepared the annual accounts on a going concern basis.
v. they have laid down internal financial controls to be followed by
the Company and such internal financial controls are adequate and
operating effectively.
vi. they have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate
and operating effectively.
AUDITORS
Pursuant to provisions of Section 139 of the Companies Act, 2013 and
rules framed there under, it is proposed to appoint M/s Manoj Mahon &
Associates, Chartered Accountants as Statutory Auditors of the Company
from the conclusion of this Annual General Meeting (AGM) till the
conclusion of next Annual General Meeting of the Company and on such
remuneration as will be fixed by the Board of Directors of the Company.
The Company has received letters from the auditors to the effect that
their re-appointment, if made, would be within the prescribed limits
under Section 141 of the Companies Act, 2013 and that they are not
disqualified for re-appointment.
AUDITORS'' REPORT
The auditors'' report does not contain any qualifications, reservations
or adverse remarks. Report of the auditor is given as an annexure which
forms part of this report.
COST AUDITORS
The Board has appointed Mr. Yash Pal Sardana (Membership No. 17996),
practicing Cost Accountant, as Cost Auditor for conducting the audit of
the cost records of the Company.
SECRETARIAL AUDIT REPORT
The Board has appointed M/s S. Khurana & Associates, Company
Secretaries, to conduct Secretarial Audit for the financial year
2015-16. The Secretarial Audit Report for the financial year ended
March 31, 2016 is annexed herewith marked as Annexure - I to this
Report. The Secretarial Audit Report does not contain any
qualification, reservation or adverse remark.
As per the directive of Securities and Exchange Board of India, M/s S.
Khurana & Associates Company Secretaries, New Delhi, undertook the
Reconciliation of Share Capital Audit on a quarterly basis. The purpose
of the audit is to reconcile the total number of shares held in
National Securities Depository Limited (NSDL), Central Depository
Services (India) Limited (CDSL) and in physical form with the respect
to admitted, issued and paid up capital of the Company.
CORPORATE GOVERNANCE
The Company is committed to maintain high standards of Corporate
Governance and adhere to the Corporate Governance requirements set out
by SEBI. The Report on Corporate Governance as stipulated under SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015
forms an Integral part of the Annual Report. Requisite Certificate from
the Auditors of the Company confirming compliance with the conditions
of Corporate Governance is attached to this Report.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Board has adopted policies and procedures for ensuring the orderly
and efficient conduct of its business, including adherence to the
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
disclosures.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF
THE COMPANIES ACT, 2013
Particulars of Loans, guarantees and investments covered under Section
186 of the Companies Act, 2013 form part of the notes to the financial
statement provided in this Annual Report. These loans /guarantees are
primarily granted for the furtherance of business of the borrowing
Companies.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
None of the transactions with related parties falls under the scope of
section 188(1) of the Act. Information on transactions with related
parties pursuant to section 134(3)(h) of the Act read with rule 8(2) of
the Companies (Accounts) Rules, 2014 are given in Annexure - II in Form
AOC-2 and the same forms part of this report.
ANNUAL RETURN EXTRACT
As provided under Section 92(3) of the Act, the extract of annual
return is given as Annexure-III in the prescribed Form MGT-9, which
forms part of this report.
CORPORATE SOCIAL RESPONSIBILITY
The brief outline of the corporate social responsibility (CSR) policy
of the Company is set out in Annexure-IV of this report in the format
prescribed in the Companies (Corporate Social Responsibility Policy)
Rules, 2014. For other details regarding the CSR Committee, please
refer to the corporate governance report, which forms part of this
report. The policy is available on the website of the Company
www.amtek.com
RISK MANAGEMENT
The board of directors of the Company has formed a risk management
committee to frame, implement and monitor the risk management plan for
the Company. The committee is responsible for reviewing the risk
management plan and ensuring its effectiveness. The audit committee has
additional oversight in the area of financial risks and controls. Major
risks identified by the businesses and functions are systematically
addressed through mitigating actions on a continuing basis.
The development and implementation of risk management policy has been
covered in the management discussion and analysis, which forms part of
this report.
PARTICULARS OF EMPLOYEES AND REMUNERATION
(a) The ratio of remuneration of each director to the median of
employees'' remuneration as per Section 197(12) of the Companies Act,
2013, read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 forms part of the
Board''s Report Annexure - V(a).
(b) The statement containing particulars of employees as required under
section 197(12) of the Act read with Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, is
forms part of the Board''s Report Annexure - V(b).
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS & OUTGO
The Energy conservation continues to be an area of focus for Amtek.
Initiatives to integrate energy efficiency into overall operations are
undertaken through design considerations and operational practices. The
key initiatives towards conservation of energy were:
- improved monitoring of energy consumption through smart metering and
integration with building management systems;
- setting internal targets for energy performance improvement and
institution of rigorous operational controls toward achieving these
targets;
- creating awareness amongst associates on energy conservation through
campaigns and events;
- focusing on enhancing the component of renewable power in our power
sourcing strategy (through on-site solar power generation and third
party purchase as feasible);
- increased focus on procurement of energy efficient equipment.
The relevant data regarding the above is given in the Annexure-VI
hereto and forms part of this report.
MANAGEMENT DISCUSSION & ANALYSIS REPORT
A detailed review of operations, performance and future outlook of the
Company is given separately under the head "Management Discussion and
Analysis Report" and forms a part of this report.
ACKNOWLEDGEMENTS
The Directors wish to place on record their appreciation for the
sincere services rendered by employees of the Company at all levels.
Your Directors also wish to place on record their appreciation for the
valuable co-operation and support received from the Government of
India, various state governments, the Banks/ financial institutions and
other stakeholders such as, shareholders, customers and suppliers,
among others. The Directors also commend the continuing commitment and
dedication of the employees at all levels, which has been critical for
the Company''s success. The Directors look forward to their continued
support in future.
By Order of the Board
For AMTEK AUTO LIMITED
(Arvind Dham)
Date : 30.08.2016 DIN No. 00047217
Place : New Delhi CHAIRMAN
Sep 30, 2015
Dear Members
It gives me great pleasure to present, on behalf of the Board of
Directors of your Company, the 29th Annual Report on the business and
operations of Amtek Auto Limited and its Audited Financial Statements
for the year ended 30th September'2015, together with the Auditors'
Report.
FINANCIAL RESULTS
The Company's financial performance, for the year ended September 30,
2015 is summarized below:
(Rs. in Lacs)
Particulars Year ended on Year ended on
30th September 2015 30th September 2014
Revenue 3,77,378.19 399,969.95
Expenditures (Excluding
Depreciation) 3,59,266.27 319,863.67
Gross Profit Before
Depreciation 18,111.92 80,106.28
Depreciation 52,513.78 32,903.26
Profit Before Tax &
Exceptional Items (34,401.86) 47,203.02
Exceptional Item
(Income)/Expense (15,679.83) -
Profit Before tax (18,722.03) 47,203.02
Tax Expenses(Deferred Tax) (7,163.27) 14,867.46
Profit /(Loss) for the year (11,558.76) 32,335.56
Earning Per Equity
Shares
(1) Basic before
extraordinary item (5.24) 14.78
(2) Diluted before
extraordinary item (5.24) 14.72
(3) Basic after
extraordinary item (5.24) 14.78
(4) Diluted after
extraordinary item (5.24) 14.72
FINANCIAL PERFORMANCE
During the year under review, the revenue of the Company is Rs.
3,77,378.19 lacs compared to Rs. 399,969.95 lacs during the previous
year. The loss after tax stood at Rs. 11,558.76 lacs as compared to the
previous year profit of Rs. 32,335.56 lacs. The Reserve & Surplus
position at Rs. 5,04,374.86 lacs.
DIVIDEND
In view of losses incurred during the year under review, the Board of
Directors do not recommend any dividend on the equity shares for the
financial year ended September 30, 2015
SUBSIDIARY AND ASSOCIATES
In accordance with proviso to sub-section (3) of Section 129 of the
Companies Act 2013, a statement containing salient features of the
financial statements of the Company's subsidiaries, associates and
joint ventures and the report on their performance and financial
position in Form AOC-1 is annexed to the consolidated financial
statements and forms part of the Annual Report, which covers the
financial position of Subsidiaries and Associate Company and hence not
repeated here for the sake of brevity.
In accordance with third proviso to Section 136(1) of the Companies
Act, 2013, the Annual Report of your Company, containing therein its
audited standalone and the consolidated financial statements has been
placed on the website of the Company. Further, audited financial
statements together with related information and other reports of each
of the subsidiary companies, have also been placed on the website of
the Company.
ISSUE OF REDEEMABLE NON CONVERTIBLE DEBENTURES
During the year under review, pursuant to the approval from the
shareholders in their meeting held on December 31, 2014 for issue of
debenture, the Allotment Committee of the Company allotted 5317 Secured
Redeemable Non - Convertible Debentures (SRNCDs) of Rs. 10,00,000 /-
each to various investors.
ACQUISITIONS
Scholz Edelstahl GmbH
During the year under review, the Company has acquired German based
Scholz Edelstahl GmbH through its 100% Singapore based subsidiary Amtek
Precision Engineering Pte. Ltd. Scholz is a leading high quality hot
die forgings manufacturer for the auto and non-auto component
industries. Scholz is also engaged in the special steel trading
business which will enable backward integration with all of Amtek
Group's international business.
Asahi Tec Corporation
In June 2015, the Company, through its overseas subsidiary, acquired
various group companies of Japan based Asahi Tec Corporation which are
engaged in the business of Iron Casting, Forging and Machining. The
acquired companies has various manufacturing facilities located in
Japan, Thailand and China having long standing relationships with blue
chip OEM.
The key products manufactured by Asahi Tec Corporation include Engine
Blocks, Cylinder Heads, Front Axle Beams, Crankshafts, Turbocharger
Housings and other engine & suspension related Iron, Castings and
Forgings.
ISSUE OF EQUITY SHARES ON PREFERENTIAL BASIS
During the year under review, pursuant to the approval of shareholders
in their meeting held on August 24, 2015, the Company converted
unsecured loan of Rs. 75 crores of promoter companies i.e. Aisa
International Pvt. Ltd. and Amtek laboratories Limited into equity
shares of the Company through issue and allotment of 44,37,500 (Forty
Four Lacs Thirty Seven Thousand Five Hundred) equity shares of Rs.2/-
each fully paid-up at a price of Rs 169/- (Rupees One hundred Sixty
Nine only) per share including a premium of Rs. 167/- (Rupees One
Hundred and Sixty Seven only) to these companies in accordance with
applicable provisions of the SEBI (ICDR) Regulations 2009 and the
Companies Act, 2013 read with the applicable rules made there under for
the issuance of Equity Shares on Preferential basis.
DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with Section 152 of the Companies Act, 2013 and the
Articles of Association of the Company, Mr. D. S. Malik retire by
rotation at the ensuing Annual General Meeting of the Company and being
eligible offer himself for re-appointment.
During the year, the non-executive directors of the Company had no
pecuniary relationship or transactions with the Company.
Pursuant to the provisions of Section 149, 152 read with Schedule IV
and all other applicable provisions of the Companies Act, 2013 and
Clause 49 of the Listing Agreement, the Board of Directors at its
meeting held on 19th March, 2015, Mrs. Madhu Vij was appointed as
Non-Executive Independent Additional Director whose term of office
expires at the ensuing Annual General Meeting of the Company.
As per the provisions of Section 149 of the Act, an independent
director shall hold office for a term up to five consecutive years on
the Board of a company and is not liable to retire by rotation. Mrs.
Madhu Vij has given a declaration to the Board that she meets the
criteria of independence as provided under Section 149 (6) of the Act.
In compliance with the provisions of Section 149 read with Schedule IV
of the Act, and with approval of the Nomination & Remuneration
Committee, which commends her appointment as an Independent Director
for a period of five years is being placed before the Members in
general meeting for their approval.
Brief resumes of the Directors proposed to be appointed or
re-appointed, highlighting their industry expertise in specific
functional areas, names of companies in which they hold directorships
is provided in the notice forming part of Annual Report. Further, the
name of the Companies in which they hold the memberships/chairmanships
of Board Committees, as stipulated under Clause 49 of the Listing
Agreement is provided in the Corporate Governance Section of this
Annual Report.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
independence as prescribed both under the Act and Clause 49 of the
Listing Agreement with the Stock Exchanges.
The Company has devised a Policy for performance evaluation of
Independent Directors, Board, Committees and other individual Directors
which includes criteria for performance evaluation of the non-executive
directors and executive directors.
LIC of India has appointed Mr. M.K. Gupta as Nominee Director to
represent LIC on the Board of the Company in place of Mr. B. Venugopal.
Mr. M.K. Gupta is not liable to retire by rotation.
Brief resumes of the Directors proposed to be appointed or
re-appointed, highlighting their industry expertise in specific
functional areas, names of companies in which they hold directorships
is provided in the notice forming part of Annual Report. Further, the
name of the Companies in which they hold the memberships/chairmanships
of Board Committees, as stipulated under Clause 49 of the Listing
Agreement is provided in the Corporate Governance Section of this
Annual Report.
Pursuant to the provisions of Section 203 of the Act, which came into
effect from April 1, 2014, the appointments of Mr. D.S. Malik,
Managing Director, Mr. Vinod Kumar Uppal, Chief Financial Officer and
Mr. Rajeev Raj Kumar, Company Secretary as key managerial personnel of
the Company were formalized.
NUMBER OF BOARD MEETING
Six (6) meetings of the board were held during the year 2014-15. For
details of the meetings of the board, please refer to the corporate
governance report, which forms part of this report.
DIRECTORS' RESPONSIBILTY STATEMENT
Pursuant to the provisions of Section 134(5) of the Companies Act,
2013, the Directors hereby confirm that:
1. In the preparation of Annual Accounts, the applicable Accounting
Standards have been followed and there has been no material departure
from the same.
2. The Directors have 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 as at 30th September, 2015 and of the profits for the
year ended on that date.
3. The Directors have made proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
4. The Directors have prepared annual accounts on a going concern
basis.
5. The Director has laid down internal financial controls to be
followed by the Company and such internal financial controls are
adequate and operating effectively.
6. The Directors have been devised proper systems to ensure compliance
with the provisions of all applicable laws and that such systems were
adequate and operating effectively.
POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND OTHER DETAILS
The Company's policy on directors' appointment and remuneration and
other matters provided in Section 178(3) of the Act has been disclosed
in the Corporate Governance Report, which forms part of the Boards'
Report.
AUDITORS AND AUDITORS' REPORT
Pursuant to provisions of Section 139 of the Companies Act, 2013 and
rules framed there under, it is proposed to appoint M/s Manoj Mahon &
Associates, Chartered Accountants as Statutory Auditors of the Company
from the conclusion of this Annual General Meeting (AGM) till the
conclusion of the next Annual General Meeting of the Company and on
such remuneration as will be fixed by the Board of Directors of the
Company.
The Company has received letter from the auditor to the effect that
their re-appointment, if made, would be within the prescribed limits
under Section 141 of the Companies Act, 2013 and that they are not
disqualified for re-appointment.
The Notes on Financial Statements referred to in the Auditors' Report
are self-explanatory and do not call for any further comments. The
Auditor's Report does not call for any qualification, reservation or
adverse remarks.
COST AUDITORS
The Board has appointed Mr. Yash Pal Sardana (Membership No. 17996),
practicing Cost Accountant, as Cost Auditor for conducting the audit of
the cost records of the Company.
SECRETARIAL AUDIT REPORT
The Board has appointed M/s S. Khurana & Associates, Company
Secretaries, to conduct Secretarial Audit for the financial year
2014-15. The Secretarial Audit Report for the financial year ended
September 30, 2015 is annexed herewith marked as Annexure -I to this
Report. The Secretarial Audit Report does not contain any
qualification, reservation or adverse remark.
As per the directive of the Securities & Exchange Board of India, M/s
S. Khurana & Associates Company Secretaries, New Delhi, undertook the
Reconciliation of Share Capital Audit on a quarterly basis. The purpose
of the audit is to reconcile the total number of shares held in
National Securities Depository Limited (NSDL), Central Depository
Services (India) Limited (CDSL) and in physical form with respect to
admitted, issued and paid up capital of the Company.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF
THE COMPANIES ACT, 2013
Particulars of Loans, guarantees and investments covered under Section
186 of the Companies Act, 2013 form part of the notes to the financial
statement provided in this Annual Report. These loans /guarantees are
primarily granted for the furtherance of business of the borrowing
companies.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All contracts or arrangements entered into by the Company, during the
financial year with Related Parties were in the ordinary course of
business and on arm's length basis. Therefore, Form AOC-2 does not form
part of this report.
ANNUAL RETURN EXTRACT
As provided under Section 92(3) of the Act, the extract of annual
return is given as Annexure-II in the prescribed Form MGT-9, which
forms part of this report.
CORPORATE SOCIAL RESPONSIBILITY
The brief outline of the Corporate Social Responsibility (CSR) Policy
of the Company and the initiatives undertaken by the Company on CSR
activities during the year are set out in Annexure III of this report
in the format prescribed in the Companies (Corporate Social
Responsibility Policy) Rules, 2014. The policy is available on the
website of the Company at www.amtek.com
PARTICULARS OF EMPLOYEES AND REMUNERATION
The details as required in terms of the provisions of Section 197 read
with Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 are attached as Annexure  IV to this
Report.
The particulars of employees as required in terms of the provisions of
Section 197 read with Rule 5 (2) & (3) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 is Nil.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The details in respect of internal financial control and their adequacy
are included in the Management Discussion & Analysis Report, which
forms part of this report.
COMMITTEES OF THE BOARD
The Committees of the Board focus on certain specific areas and make
informed decisions in line with the delegated authority.
Details of composition, terms of reference and number of meetings held
for respective committees are given in the Report on Corporate
Governance.
The Board has laid down separate Codes of Conduct for Non-Executive
Directors and Senior Management personnel of the Company and the same
are posted on the Company's website. All Board Members and Senior
Management personnel have affirmed compliance with the Code of Conduct.
The Managing Director has also confirmed and certified the same. The
certification is enclosed at the end of the Report on Corporate
Governance
FIXED DEPOSITS
During the year under review, the Company has not accepted any Deposits
within the meaning of Section 73 of the Companies Act, 2013 from the
Shareholders or Public.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS & OUTGO
The relevant data regarding the above is given in the Annexure-V hereto
and forms part of this report.
MANAGEMENT DISCUSSION & ANALYSIS REPORT
A detailed review of operations, performance and future outlook of the
Company is given separately under the head "Management Discussion and
Analysis Report" and forms a part of this report.
DISCLOSURE REQUIREMENTS
Details of the Familiarization Programme of the independent directors
are available on the website of the Company (www.amtek.com)
Policy on dealing related party transaction is available on the website
of the Company (www.amtek.com)
The Company has formulated and published a Whistle Blower Policy to
provide Vigil Mechanism for employees including directors of the
Company to report genuine concerns. The provisions of this policy are
in line with the provisions of the Section 177(9) of the Act and the
revised Clause 49 of the Listing Agreements with stock exchanges (URL:
www.amtek.com/ investors).
ACKNOWLEDGEMENTS
The Directors wish to place on record their appreciation for the
sincere services rendered by employees of the Company at all levels.
Your Directors also wish to place on record their appreciation for the
valuable co-operation and support received from the Government of
India, various state governments, the Banks / financial institutions
and other stakeholders such as, shareholders, customers and suppliers,
among others. The Directors also commend the continuing commitment and
dedication of the employees at all levels, which has been critical for
the Company's success. The Directors look forward to their continued
support in future.
By Order of the Board
For AMTEK AUTO LIMITED
Sd/-
(Arvind Dham)
Place: New Delhi DIN No. 00047217
Date: 28-11-2015 CHAIRMAN
Sep 30, 2014
Dear Members,
It gives me great pleasure to present, on behalf of the Board of
Directors of your Company, the 28th Annual Report on the business and
operations of Amtek Auto Limited and its Audited Statements of Accounts
for the year ended 30th September, 2014, together with the Auditors''
Report. Your company along with its group companies has witnessed yet
another year of sustained performance, success and growth in the
automotive component sector where we have engaged ourselves
significantly.
FINANCIAL RESULTS
The Company''s financial performance, for the year ended September 30,
2014 is summarized below:
(Rs. in Lacs)
Particulars Year ended on Fifteen Months
30th September ended on
2014 30th September
2013
Revenue 399,969.95 312,597.86
Expenditures
(Excluding Depreciation) 319,863.67 246,037.95
Gross Profit Before Depreciation 80,106.28 66,559.91
Depreciation 32,903.26 28,373.86
Profit Before Tax 47,203.02 38,186.05
Exceptional Item - 18,984.61
Tax Expenses 14,867.46 12,098.55
Profit after Tax 32,335.56 45,072.11
Add. Accumulated Profit 24,058.01 18,795.75
Balance available for appropriation 56,393.57 63,867.86
APPROPRIATIONS:
Transfer to General Reserve 26,652.00 15,000.00
Transfer to Debenture
Redemption Reserve 1,800 23,666.00
Proposed Dividend on Equity Shares 1101.59 1093.12
Equity Dividend & Tax for previous
year (not appropriated in previous
year) 5.08 (55.92)
Corporate Dividend Tax 168.69 106.65
Surplus carried to Balance Sheet 26,666.21 24,058.01
FINANCIAL PERFORMANCE
Operating in a volatile and uncertain environment, the Company
demonstrated the resilience of it business model, The Company''s best
in-class automotive component business enabled it to deliver robust
profits during the financial year under review. The revenue of the
Company is Rs. 399,969.95 Lacs compared to Rs. 312,597.86 Lacs during
the previous year. The Profit after tax Rs. 32,335.56 Lacs as compared
to the previous year of Rs. 45,072.11 Lacs. The Company has a strong
Reserves & Surplus position of Rs. 508,952.45 Lacs.
DIVIDEND
Your Directors have recommended a dividend of Rs. 0.50 per equity share
for the financial year ended September 30, 2014 amounting to Rs.
1270.28 Crore (inclusive of tax of 168.69 Crore). The dividend payout
is subject to approval of members at the ensuing Annual General
Meeting.
The dividend will be paid to members whose names appear in the Register
of Members as on 28th December, 2014; in respect of shares held in
dematerialized form, it will be paid to members whose names are
furnished by National Securities Depository Limited and Central
Depository Services (India) Limited, as beneficial owners as on that
date. The dividend payout for the year under review has been formulated
in accordance with shareholders'' aspirations and the Company''s policy
to pay sustainable dividend linked to long term growth objectives of
the Company to be met by internal cash accruals.
MANAGEMENT''S DISCUSSION AND ANALYSIS REPORT
Management''s Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India is presented in a separate section forming part of
the Annual Report.
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
Amtek Auto''s vision and categories focus on having right balance
between Value Creation and Corporate Citizenship. The Companies Act,
2013 mandates that every Company, who meets certain eligibility
criteria needs to spend at least 2% of its average net profit for the
immediately preceding three financial years on Corporate Social
Responsibility activities.
Therefore, your directors have constituted the Corporate Social
Responsibility Committee (CSR Committee) comprising Mr. Rajeev Kumar
Thakur as the Chairman and Mr. D.S. Malik, Mr. Gautam Malhotra, as
members. The said Committee has been entrusted with the responsibility
of formulating and recommending to the Board, a Corporate Social
Responsibility Policy (CSR Policy) indicating the activities to be
undertaken by the Company, monitoring the implementation of the
framework of the CSR Policy and recommending the amount to be spent on
CSR activities.
CONSOLIDATED FINANCIAL STATEMENT
In accordance with the Accounting Standard (AS) - 21 on Consolidated
Financial Statements read with AS - 23 Accounting for Investments in
Associates and AS - 27 on Financial Reporting of Interests in Joint
Ventures, the Audited consolidated financial statements are provided in
the Annual Report.
SUBSIDIARIES
As of 30th September 2014, Your Company has following subsidiaries:-
* Amtek Investments U.K. Limited (UK)
* Amtek Deutschland GmbH, Germany
* Amtek Germany Holding GP GmbH
* Amtek Germany Holding GmbH & Co., KG
* Amtek Global Technologies Pte. Ltd., Singapore
* Amtek Holdings B.V. , Netherlands
* Amtek India Limited
* Ahmednagar Forgings Limited
* JMT Auto Limited
* Amtek Transportation Systems Limited
* Alliance Hydro Power Limited
* Amtek Defence Technologies Limited
As per the provisions of Section 212 of the Companies Act 1956, the
Company is required to attach the Directors'' Report, Balance Sheet,
Statement of Profit & Loss and other information of the Subsidiary
Companies to its Balance Sheet. However, the Ministry of Corporate
Affairs, Government of India has vide its General Circular No. 2 and 3
dated 8th February, 2011 and 21st February, 2011, respectively, granted
a general exemption from compliance with section 212(8) of the
Companies Act, 1956 from attaching the Annual Accounts of subsidiaries
with the annual published accounts of the Company subject to
fulfillment of conditions stipulated in the circulars. In compliance
with the above circular, the Annual Accounts will be made available
upon request by any member of the Company/ its Subsidiary. The Annual
Accounts of the Subsidiary Companies will also be kept for inspection
by any investor at the Registered Office of the Company and at the
office of the respective Subsidiary Companies during business hours of
the respective Companies.
Further as per the provisions of Section 212 of the Companies Act 1956,
a statement of the holding Company''s interest in the Subsidiary
Companies is attached herewith and forms part of the Annual Report.
However, pursuant to Accounting Standard AS-21 issued by the Institute
of Chartered Accountants of India, Consolidated Financial Statements
presented by the Company include the financial statements of each of
its Subsidiaries
DIRECTORS
In accordance with Section 161 of the Companies Act, 2013 and the
Articles of Association of the Company, Mr. Gautam Malhotra retires by
rotation at the ensuing Annual General Meeting of the Company and being
eligible offers himself for re-appointment. The Company has received
requisite notice in writing from member proposing his re-appointment.
Pursuant to Section 161 (1) of the Companies Act, 2013 and the Articles
of Association of the Company, Mr. Sanjiv Bhasin, was appointed as an
additional director designated as Independent Director and he shall
hold office upto the date of the ensuing Annual General Meeting of the
Company. The Company has received requisite notice in writing from
member proposing his appointment as Independent Director.
Pursuant to the provisions of Section 149, 152 read with Schedule IV
and all other applicable provisions of the Companies Act, 2013 and
Clause 49 of the Listing Agreement, the Board of Directors at its
meeting held on 24th November, 2014 appointed the existing independent
directors Mr. Sanjay Chhabra, Mr. Rajeev Kumar Thakur, Mr. Raj Narain
Bhardwaj and Mr. Bahushrut Lugani as Independent Directors for the term
of five consecutive years w.e.f the date of ensuing Annual General
Meeting subject to the approval of shareholders.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet with the criteria of
independence as prescribed both under sub-section (6) of Section 149 of
the Companies Act, 2013 and under Clause 49 of the Listing Agreement
with the Stock Exchanges.
Mr. John Ernest Flintham has been re-appointed as Senior Managing
Director for a period of two years w.e.f. August 14, 2014 subject to
the approval of members.
Brief resumes of the Directors proposed to be appointed/re-appointed,
highlighting their industry expertise in specific functional areas,
names of companies in which they hold directorships is provided in the
notice forming part of Annual Report. Further, the name of the
Companies in which they hold the memberships/chairmanships of Board
Committees, as stipulated under Clause 49 of the Listing Agreement is
provided in the Corporate Governance Section of this Annual Report
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Directors'' Responsibility Statement, it is
hereby confirmed that:
* in the preparation of the annual accounts for the year ended
September 30, 2014, the applicable accounting standards read with
requirements set out under Schedule VI to the Companies Act, 1956, have
been followed;
* the Directors have 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 as at September 30, 2014. and of the profit of the Company
for the year ended on that date;
* the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
* The annual accounts of the Company have been prepared on a ''going
concern'' basis.
AUDITORS AND AUDITORS'' REPORT
Pursuant to the provisions of Section 139 of the Companies Act'' 2013
and rules framed thereunder, it is proposed to appoint M/s. Manoj Mahon
& Associates, Chartered Accountants as statutory auditors of the
Company from the conclusion of this Annual General Meeting (AGM) till
the conclusion of the next AGM of the Company and to fix their
remuneration for the financial year 2014-2015
The Company has received letter from the auditor to the effect that
their re-appointment, if made, would be within the prescribed limits
under Section 141 of the Companies Act, 2013 and that they are not
disqualified for re-appointment.
The Notes on Financial Statements referred to in the Auditors'' Report
are self-explanatory and do not call for any Further comments.
COST AUDITORS
The Company has appointed Mr. Yash Pal Sardana (Membership No. 17996),
practicing Cost Accountant, as cost auditor for conducting the audit of
the cost records of the Company.
RECONCILIATION OF SHARE CAPITAL AUDIT
As per the directive of the Securities & Exchange Board of India
("SEBI"), M/s Iqneet Kaur & Company, Company Secretaries, New Delhi, is
appointed to undertake the Share Capital Audit on a quarterly basis.
The purpose of the audit is to reconcile the total number of shares
held in CDSL, NSDL and in physical form with the admitted, issued and
paid up capital of the Company.
The Share Capital Audit Reports as submitted by M/s Iqneet Kaur &
Company, Company Secretaries, New Delhi, on a quarterly basis were
forwarded to the Bombay Stock Exchange Limited and National Stock
Exchange of India Limited where the equity shares of the Company are
listed.
FIXED DEPOSITS
The Company has not accepted any public deposits during FY 2013-14.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975,
as amended, the names and other particulars of the employees are set
out in the Annexure to the Directors'' Report.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUT GO
The particulars relating to Research & Development, energy
conservation, technology absorption, foreign exchange earnings and
outgo, as Required to be disclosed under Section 217(1) (e) of the
Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988, are provided in
Annexure to this Report.
TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND
Pursuant to the provisions of Section 205A(5) and 205C of the Companies
Act, 1956, relevant amounts which remained unpaid or unclaimed for a
period of seven years have been transferred by the Company, from to
time to time on due dates, to the Investor Education and Protection
Fund.
Pursuant to the provisions of Investor Education and Protection Fund
(Uploading of information regarding unpaid and unclaimed amounts lying
with companies) Rules, 2012, the Company has uploaded the details of
unpaid and unclaimed amounts lying with the Company as on the date of
last Annual General Meeting on the Company''s website (www.amtek.com),
as also on the Ministry of Corporate Affairs'' Portal.
CORPORATE GOVERNANCE
The Company is committed to maintain the highest standards of Corporate
Governance and adhere to the corporate governance requirements set out
by SEBI. The Company has also implemented several best Corporate
Governance practices as prevalent globally. The Report on Corporate
Governance as stipulated under Clause 49 of the Listing Agreement forms
part of the Annual Report.
The requisite certificate from the Auditors of the Company confirming
compliance with the conditions of Corporate Governance as stipulated
under the aforesaid Clause 49 is attached to the Report on Corporate
Governance.
INDUSTRIAL RELATIONS
During the year under review, the relations between the Management and
the workmen were highly cordial. Industrial relations generally
remained cordial and satisfactory.
Human resources initiatives such as skill level up gradation, training,
appropriate reward & recognition systems and productivity improvement
are the key focus areas for development of the employees of the
Company.
INVESTOR RELATIONS
Your Company always endeavors to keep the time of response to
shareholders'' requests / grievances at the minimum.
Priority is accorded to address all the issues raised by the
shareholders and provide them a satisfactory reply at the earliest
possible time. The Stakeholder Relationship Committee of the Board
meets periodically and reviews the status of the redressal of
investors'' grievances. The shares of the Company continue to be traded
in Electronic Form and the De-materialization arrangement exists with
both the depositories, viz, National Securities Depository Limited and
Central Depository Services (India) Limited.
EMPLOYEE WELFARE
Your Company demonstrated that it is a caring organization by
continuing to devise and implement several welfare measures for the
employees and their families. Employee welfare programme and schemes
were implemented with utmost zeal and they were constantly reviewed and
improvements were made wherever necessary at the earliest.
ACKNOWLEDGEMENT
Your Directors are highly grateful for all the help, guidance and
support received from state government authorities, business
associates, banks and financial institutions. Your Directors
acknowledge the constructive suggestions received from Statutory
Auditors are grateful for their continued support and cooperation. Your
Directors thank all share-owners, business partners and members of the
Amtek Auto''s Family for their faith, trust and confidence reposed in
Amtek Auto Limited. Your Directors wish to place on record their
sincere appreciation for the unstinting efforts and dedicated
contributions put in by the employees at all levels, to ensure that the
Company continues to grow and excel.
By Order of the Board
For AMTEK AUTO LIMITED
Sd/-
(Arvind Dham)
Place : New Delhi DIN No. 00047217
Date : 24-11-2014 CHAIRMAN
Sep 30, 2013
The Directors have great pleasure in presenting the 27th Annual Report
on the performance of your Company together with the Audited Annual
Accounts for the period of Fifteen months ended on 30th September 2013.
FINANCIAL RESULTS (Rs. in Lacs)
Particulars Fifteen Months
ended on Year ended
30th September
2013 30th June 2012
Revenue 312,597.86 245,392.72
Expenditures (Excluding
Depreciation) 246,037.95 183,223.71
Gross Profit Before Depreciation 66,559.91 62,169.01
Depreciation 28,373.86 21,184.94
Profit Before Tax 38,186.05 40,984.07
Exceptional Item 18,984.61 -
Tax Expense 12,098.55 11,828.37
Profit after Tax 45,072.11 29,155.70
Add. Accumulated Profit 18,795.75 811.54
Balance available for
appropriation 63,867.86 29,967.24
APPROPRIATIONS:
Transfer to General Reserve 15,000.00 5,000.00
Transfer to Debenture Redemption
Reserve 23,666.00 5,000.00
Proposed Dividend on Equity Shares 1093.12 1,093.12
Equity Dividend & Tax for previous
year (not appropriated in previous
year) (55.92) -
Corporate Dividend Tax 106.65 78.37
Surplus carried to Balance Sheet 24,058.01 18,795.75
FINANCIAL PERFORMANCE
During the period under review, the revenue of the Company is Rs.
312,597.86 Lacs compared to Rs. 245,392.72 Lacs during the previous
year. The Profit after tax has increased to Rs. 45,072.11 Lacs as
compared to the previous year of Rs. 29,155.70 Lacs. The Company has a
strong Reserve & Surplus position of Rs. 475,411.97 Lacs.
DIVIDEND
Your Directors are pleased to recommend a Final Dividend of Rs. 0.50
per Equity Share (25%) of the face value of Rs. 2/- each, aggregating
to Rs 1093.12 Lacs (exclusive of tax on dividend) for the period ended
September 30, 2013 for your approval.
The dividend, if approved at the ensuing Annual General Meeting, will
be paid to members whose names appear in the Register of Members as on
Friday, March 21, 2014; in respect of shares held in dematerialised
form, it will be paid to members whose names are furnished by National
Securities Depository Limited and Central Depository Services (India)
Limited, as beneficial owners as at the end of that date.
The dividend payout for the period under review has been formulated in
accordance with shareholders'' aspirations and the Company''s policy to
pay sustainable dividend linked to long term growth objectives of the
Company to be met by internal cash accruals.
It is proposed to transfer Rs 15,000 Lacs to the General Reserves. An
amount of Rs 24,058.01 Lacs is proposed to retained in the Statement of
Profit & Loss.
BUSINESS OVERVIEW
Amtek Auto is one of the largest integrated component manufacturers
headquartered in India with truly global manufacturing facilities. The
Company has significant expertise in the automotive components sector
with proven capabilities in forging, grey and ductile iron casting,
gravity and high pressure aluminium die casting and machining and
sub-assembly. It has an extensive product portfolio with a range of
highly engineered components. The Company supplies components for
passenger cars, light and heavy commercial vehicles, 2/3 wheelers,
tractors, locomotive components and construction and earth moving
vehicles.
In addition to being one of the leading casting and machining companies
in the automotive sector in India, the Amtek Auto with its subsidiaries
has become one of the world''s largest global forging and integrated
machining companies. Founded in 1987 by Mr. Arvind Dham, Amtek Auto
and its subsidiaries now have 60 world class facilities across India,
UK, Germany, Brazil, Italy, Mexico, Russia and US. It is widely
recognized as a preferred OEM supplier for passenger cars, light and
heavy commercial vehicles, 2/3 wheelers and diesel engines. Global blue
chip customers include BMW, Caterpillar, CNH America, Cummins, Fiat,
Ford, Halliburton, Honda, JCB, Maruti, Tata JLR, Timken and Volkswagen.
Over the last decade, Amtek Auto has established several joint ventures
and technical partnerships with leading global firms to offer customers
a world class product range. Collaborating companies include Magna
Powertrain in Canada, Sumitomo Metal in Japan and Aizen in Japan. The
joint ventures are progressing in line with the management
expectations. As part of its strategy to leverage its core skill base
and manufacturing platform, Amtek Auto has also developed a product
range for non-automotive customers. These cover end markets such as
locomotive components, earth moving and construction equipment and
tractors.
During the period under review, Amtek Auto acquired Neumayer Tekfor in
Germany and JMT Auto in India. Amtek Auto sold a 56% equity stake in
each of Amtek Ring Gears Ltd and Amtek Crankshaft India Ltd, unlocking
value from relatively lower profit margin units.
The acquisition of Neumayer Tekfor was transformational, providing
Amtek Auto with an enhanced product portfolio and geographic market
reach from which to supply its combined global customers. As a leading
forging and integrated machining company, Neumayer Tekfor''s extensive
high technology product range includes high precision camshafts, valve
train components, connecting rods and specialized safety fasteners.
Business Snapshot
1. Leading Market Position:
a. Global engineering company with operations across forging, iron &
aluminium casting, machining and sub-assemblies
b. Broad spectrum of high quality of products
c. Leader across multiple product categories
2. Best in Class Operations:
a. World class integrated facilities globally
b. Excellent in-house design and product development
c. Joint ventures with leading global firms
d. High end technology along with global engineering design centres in
Germany, Brazil and India
3. Premier Global Customer Base:
a. Growing access to high-end technology to better serve customers and
upcoming industry trends
b. Diversified and global blue chip customer base
c. Enhanced product portfolio to fulfil demands of global OEM''s
requirements
4. Strong Financial Performance:
a. Financial strength to pursue growth strategy
b. Increased revenue contribution from new geographies
c. Improved operational efficiencies across all product lines
ACQUISITON OF NEUMAYER TEKFOR
During the period under review, the Company successfully acquired
Neumayer Tekfor in Germany, through its wholly owned subsidiary Amtek
Global Technologies Pte. Ltd., a Singapore based Special Purpose
Vehicle. Neumayer Tekfor is focused on the forging and integrated
machining of automotive components, with a turnover of Euro 500 million
for year ended 2012.
Business Overview:
- Operating with nine manufacturing facilities, spread globally
across Germany, the U.S., Brazil, Mexico and Italy
- Market leader in the development and production of pioneering
solutions for transmissions, engines, drivelines, special applications
and safety fasteners
- Provides support to customers from the earliest project stage:
analysing, providing consulting for and developing high-end solutions.
- High technology product range includes high precision camshafts, ,
connecting rods and specialised safety fasteners
- Key customers include Volkswagen Group, Fiat, SKF, BMW, Daimler and
Ford Strategic Rationale:
- Transformation of Amtek Auto''s forging division into world leading
position
- Delivers international manufacturing platform to support global
customers
- Diversified blue chip customer base to increase market share and
diversify revenue streams with enhanced geographic reach
- Significantly enhance Amtek Auto''s product portfolio
- Provide access to Hatebeur technology and warm and cold forging
technology
- Supports cross selling opportunities across global OEMs KEY
PRODUCTS
ACQUISITION OF CONTROLLING STAKE IN JMT AUTO
During the period under review, the Company acquired 10,326,063 fully
paid equity shares representing 71.73% of the total paid up equity
share capital of JMT Auto Limited. Consequent to the above acquisition,
Amtek Auto became the holding Company and new promoter of the Company.
Business Overview:
- One of the leading automotive component manufacturers in the
Eastern region of India and is headquartered in Jamshedpur
- Engaged in the manufacturing of a wide range of high quality
automotive components through technology based manufacturing processes
- 7 Manufacturing facilities in India with its OEM customer reach
across the world including the U.S., Belgium, South East Asia, Brazil,
Germany, Italy and Mexico
- Caters to automotive and non-automotive markets including light,
medium & heavy commercial vehicles, tractors, diesel engines and oil &
gas components
- Key customers include Caterpillar, Cummins, Tata Motors and Timken
- Significant export business with Halliburton, CNH America and other
major OEMs
- Listed on the BSE and the NSE Strategic Rationale:
- Strengthens the product portfolio particularly in the areas of
gear, shaft and oil & gas components§ Benefit from state-of-the-art
technology, including the latest CNC technology, deeper supply chains,
enhanced R&D and best in class manufacturing capabilities
- Acquisition makes Amtek Auto one of the largest gears and shafts
manufacturer in India
- New entry into the oil & gas segment
- Enhanced domestic geographic reach, particularly in Eastern India
- Supports cross selling opportunities
KEY PRODUCTS
SUBSIDIARY COMPANIES
As of 30th September 2013, Your Company has following subsidiaries:-
- Amtek Investments U.K. Limited (UK)
- Amtek Deutschland Gm Bh, Germany
- Amtek Germany Holding GP Gmbh
- Amtek Global Technologies Pte. Ltd.
- Amtek Holdings B.V.
- Amtek India Limited
- Ahmednagar Forgings Limited
- JMT Auto Limited
- Amtek Transportation Systems Limited
- Alliance Hydro Power Limited
- Amtek Defence Technologies Limited
As per the provisions of Section 212 of the Companies Act 1956, the
Company is required to attach the Directors'' Report, Balance Sheet,
Statement of Profit & Loss and other information of the Subsidiary
Companies to its Balance Sheet. However, the Ministry of Corporate
Affairs, Government of India has vide its General Circular No. 2 and 3
dated 8th February, 2011 and 21st February, 2011, respectively, granted
a general exemption from compliance with section 212(8) of the
Companies Act, 1956 from attaching the Annual Accounts of subsidiaries
with the annual published accounts of the Company subject to
fulfillment of conditions stipulated in the circulars. In compliance
with the above circular, the Annual Accounts will be made available
upon request by any member of the Company/ its Subsidiary. The Annual
Accounts of the Subsidiary Companies will also be kept for inspection
by any investor at the Registered Office of the Company and at the
office of the respective Subsidiary Companies during business hours of
the respective Companies.
Further as per the provisions of Section 212 of the Act, a statement of
the holding Company''s interest in the Subsidiary Companies is attached
herewith and forms part of the Annual Report.
However, pursuant to Accounting Standard AS-21 issued by the Institute
of Chartered Accountants of India, Consolidated Financial Statements
presented by the Company include the financial statements of each of
its Subsidiaries
EXTENSION OF FINANCIAL YEAR
During the period under review, the Company has made an international
acquisition of German based Company Neumayer Tekfor Group (NT Group) in
first week of June and subsequently acquired JMT Auto Ltd. in the last
week of June for which Public offer has been made on July 04, 2013. The
process of integration of NT Group with Amtek Auto Ltd., for preparing
its consolidated financial results to be placed before the shareholders
of the Company, which took around three months. Therefore in view of
the same, Board decided in their meeting held on August 02, 2013 to
extend the current Financial Year ending June 30, 2013 by 3 (Three)
months, so as to end on September 30, 2013, accordingly extended
Financial Year 2012-13 comprise of 15 (Fifteen) months i.e. July 01,
2012 to September 30, 2013.
DIRECTORS
Mr. Arvind Dham and Mr. Sanjay Chhabra are directors liable to retire
by rotation. During the period under review, Mr. Gautam Malhotra was
appointed as an additional Director of the Company w.e.f. 13th
May,2013. Brief resumes of the Directors proposed to be
appointed/re-appointed, highlighting their industry expertise in
specific functional areas, names of companies in which they hold
directorships is provided in the notice forming part of Annual Report.
Further, the name of the Companies in which they hold the
memberships/chairmanships of Board Committees, as stipulated under
clause 49 of the Listing Agreement is provided in the Corporate
Governance Section of this Annual Report.
AUDITORS
M/s Manoj Mohan & Associates, Chartered Accountants, the Auditors of
your Company, hold office up to the conclusion of the forthcoming
Annual General Meeting of the Company and have given their consent for
re-appointment.
The company has received letter from M/s Manoj Mohan & Associates,
Chartered Accountants, to the effect that their appointment, if made,
would be within the prescribed limits under section 224 (1B) of the
Companies Act,1956 and that they are not disqualified from such
appointment in terms of Section 226 of the Companies Act,1956.
AUDITORS'' REPORT
Notes forming part of Annual Accounts, which are specifically referred
to by the Statutory Auditors in their report, are self explanatory and
therefore, do not call for any further comments.
COST AUDITORS
Mr. Yash Pal Sardana (Membership No. 17996), Practicing Cost Accountant
was appointed as Cost Auditors of the Company.
RECONCILIATION OF SHARE CAPITAL AUDIT
As per the directive of the Securities & Exchange Board of India
("SEBI"), M/s Iqneet Kaur & Company, Company Secretaries, New Delhi,
undertakes the Share Capital Audit on a quarterly basis. The purpose of
the audit is to reconcile the total number of shares held in CDSL, NSDL
and in physical form with the admitted, issued and paid up capital of
the Company.
The Share Capital Audit Reports as submitted by M/s Iqneet Kaur &
Company, Company Secretaries, New Delhi, on a quarterly basis were
forwarded to the Bombay Stock Exchange Limited and National Stock
Exchange of India Limited where the equity shares of the Company are
listed.
CASH FLOW STATEMENT
As required by Clause-32 of the Listing Agreement a Cash Flow Statement
is annexed and forms part of this Annual Report.
CONSOLIDATED FINANCIAL STATEMENT
Consolidated Financial Statements in accordance with Accounting
Standard-21 issued by The Institute of Chartered Accountants of India
have been provided in the Annual Report. These Consolidated Financial
Statements provide financial information about your Company and its
subsidiaries as a single economic entity.
PUBLIC DEPOSITS
The Company has not accepted any public deposits during FY 2012-13.
STATUTORY INFORMATION
- In terms of the provisions of Section 217 (2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees) Rules,
1975, the details of employees - As per Annexure I to this report.
- The particulars relating to conservation of energy, technology
absorption, foreign exchange earnings and outgo, as required to be
disclosed under Section 217(1)(e) of the Companies Act, 1956 read with
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 are provided as Annexure - I to this report.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forming part of the
Director''s Report and the certificate from the Company''s Statutory
Auditors confirming compliance of Corporate Governance norms as
stipulated in clause 49 VII of the Listing Agreement with the Indian
Stock Exchanges is included in the Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis of the Company''s financial
condition including the results of operations of the Company for the
period under review, as required under clause 49 of the Listing
Agreement with stock exchange, is presented in a separate section
forming part of the Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, as amended by the Companies (Amendment) Act, 2000 with
respect to Directors'' Responsibility Statement, it is hereby confirmed
:-
- That in the preparation of the annual accounts for the period of 15
months ended 30th September 2013, the applicable accounting standards
have been followed;
- That the Directors had 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
profit of the Company for the period under review;
- That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities; and
- That the annual accounts have been prepared on a going concern
basis.
INDUSTRIAL RELATIONS
During the period under review, the relations between the Management
and the workmen were highly cordial. Industrial relations generally
remained cordial and satisfactory.
Human resources initiatives such as skill level up gradation, training,
appropriate reward & recognition systems and productivity improvement
are the key focus areas for development of the employees of the
Company.
INVESTOR RELATIONS
Your Company always endeavors to keep the time of response to
shareholders'' requests / grievances at the minimum. Priority is
accorded to address all the issues raised by the shareholders and
provide them a satisfactory reply at the earliest possible time. The
Shareholders'' and Investors'' Grievances Committee of the Board meets
periodically and reviews the status of the redressal of investors''
grievances. The shares of the Company continue to be traded in
Electronic Form and the De-materialization arrangement exists with both
the depositories, viz, National Securities Depository Limited and
Central Depository Services (India) Limited.
EMPLOYEE WELFARE
Your Company demonstrated that it is a caring organization by
continuing to devise and implement several welfare measures for the
employees and their families. Employee welfare programmes and schemes
were implemented with utmost zeal and they were constantly reviewed and
improvements were made wherever necessary at the earliest.
ACKNOWLEDGEMENT
Your Directors gratefully acknowledge the contributions made by
employees towards the success of your Company. Your Directors are also
thankful for the co-operation and assistance received from its
customers, vendors, bankers, regulatory and Governmental authorities in
India and abroad and its shareholders.
By Order of the Board
For AMTEK AUTO LIMITED
Sd/-
Place : New Delhi (Arvind Dham)
Date : 13-02-2014 Chairman
Jun 30, 2010
The Directors have great pleasure in presenting the 24th Annual Report
on the performance of your Company together with the Audited Statements
of Accounts for the financial year ended 30th June 2010.
FINANCIAL RESULTS (Rs. in Lacs)
PARTICULARS Year ended Year ended
30th June 2010 30th June 2009
Sales and Other Income 142,434.39 119,527.83
Expenditures 105,704.45 86,489.73
Gross Profit Before Depreciation 36,729.94 33,038.10
Depreciation 16,659.43 12,260.35
Profit Before Tax 20,070.51 20,777.75
Provisions for Taxation 5,764.49 5,555.08
Profit after Tax 14,306.02 15,222.67
Add. Accumulated Profit 136.91 14.90
Balance available for appropriation 14,442.93 15,237.57
APPROPRIATIONS:
Transfer to General Reserve 1,500.00 11,800.88
Transfer to Debenture redemption
Reserve 1,400.00
Transfer to Foreign Currency
Convertible Bond Reserve 8,818.00 2,475.00
Proposed Dividend on Equity Shares 2,017.00 704.97
Equity Dividend & Tax for previous
year (not appropriated in previous
year) 89.38 0.00
Corporate Dividend Tax 335.00 119.81
Surplus carried to Balance Sheet 283.55 136.91
BUSINESS SNAPSHOT
Amtek Auto is one of the largest integrated component manufacturers in
India with a strong global presence. The Company has world class
manufacturing facilities located in India, Europe and North America.
Amtek Auto has significant expertise in the auto components space with
proven capabilities in forging, gravity and high-pressure aluminium die
casting and machining and sub-assembly. It has an extensive product
portfolio with a range of highly engineered components. The Company is
a preferred original equipment manufacturer supplier for passenger
cars, light and heavy commercial vehicles, two wheeler and three
wheeler diesel engines. The Company also manufactures components for
non-auto sectors such as the railways, specialty vehicles and
aerospace.
Your Company is well positioned in the Indian auto component market and
is the largest casting and machining and the second largest Forging
Company in India. The Company has generated average EBITDA margins of
21% over the last 5 years. Currently, the Company has a conservative
leverage profile, with significant financial flexibility available for
organic or inorganic expansion.
Amtek Autos strategy is to continue to strengthen its presence in the
automotive market by focusing on the Indian domestic market, leveraging
its international manufacturing base and expanding the joint ventures.
The Companys Non-Auto strategy is to capture growth in railway sector,
specialty vehicles and aerospace. In the railway sector, Amtek Auto
plans to target opportunities within India, South East Asia and the
Middle East. An existing joint venture with American Railcar Industries
will provide Amtek Auto with technical expertise in the area.
BUSINESS PERFORMANCE
During the year under review, the revenue of the Company was Rs.
142,434.39 lacs as against the previous year revenue of Rs.119,527.83
lacs. The Profit after Tax for the year stands at Rs. 14306.02 lacs as
against the corresponding year figure of Rs.15222.67 Lacs. The Company
has strong reserve position of Rs. 360446.72 lacs.
DIVIDEND
The Board of Directors are pleased to recommend a Dividend of Rs.
1.00/- Per equity share of Rs.2/- each for the financial year 2009-10
for your approval. The Proposed dividend, if approved, at the ensuing
Annual General Meeting, would result in appropriation of Rs. 2352.00
lacs (including Corporate Dividend Tax of Rs.335.00 Lacs) out of the
profits. The Company has made transfer of Rs.1500.00 Lacs to the
General Reserve. The total appropriation of dividend of Rs.2352.00 Lacs
gives 16.44 % pay out on net profit of the Company.
The Register of members and share transfer books shall remain closed
from 28th December 2010 to 31st December 2010 (both days inclusive),
for the purpose of Annual General Meeting and payment of Dividend.
ACQUISITION OF MAJORITY STAKE IN AMTEK INDIA LIMITED.
During the period under review, the Company has entered into a Share
Purchase Agreement with the existing promoters of Amtek India Limited
on 28th May, 2010 to acquire an aggregate of 50720710 (Five Crores
Seven Lacs Twenty Thousand Seven Hundered and Ten only) fully paid up
equity shares of face value of Rs.2/-each representing 36.66% of the
total paid up equity share capital of Amtek India Limited.
Out of above, AAL has acquired 33110710 fully Paid up Equity shares at
a average price of Rs.64.83/- of Amtek India Limited constituting
23.93% of the Paid up Equity capital of AIL through a block deal on the
Bombay Stock Exchange Limited.
Pursuant to signing of SPA, the Company has given an Open Offer to the
shareholders of Amtek India Limited to acquire up to 27677565 equity
shares of Rs. 2/-each representing in aggregate 20% of the fully paid
up equity capital and resultant voting rights of said Company at a
price of Rs. 70.40/- (Rupees Seventy and paisa forty only) per fully
paid equity share, payable in cash, pursuance to Regulations 11(1) and
other applicable provisions of SEBI (Substantial Acquisition of Shares
and Takeovers) Regulations, 1997.
ISSUE OF FCCB
During the period under review, the Company has issued 33,000 5.625%
Foreign Currency Convertible Bonds of US$ 5,000 each aggregating to US$
165 millions convertible into equity shares of the Company at the
option of the investors at price Rs. 148.40 per share. These FCCBs are
listed on Singapore Stock Exchange.
ISSUE OF WARRANTS
Subsequent to the year under review, the Company issued and allotted
2,40,00,000 warrants entitling the warrant holder(s) to apply for
equivalent number of fully paid up equity shares of Rs.2/- per share at
a premium of Rs.178/- per share of the Company aggregating to Rs. 432
crores to the promoter group companies by way of Preferential Allotment
in accordance with Chapter VII of SEBI (Issue of Capital & Disclosure
Requirements) Regulations 2009.
SHARE CAPITAL
During the period under review, the Company has allotted 1,50,00,000
equity shares upon conversion of warrants into equivalent number of
equity shares of Rs. 21- each at a premium of Rs. 131/- per share
aggregating to Rs. 199.50 Crores to the promoters by way of
Preferential Allotment.
The Company has also allotted 52,054 equity shares of Rs. 2/- per share
at a premium of Rs. 207.83/- per share upon conversion of FCCBs of US
$ 0.25 million out of FCCBs of US$ 150 million and 1310081 equity
shares of Rs. 21- per share at a premium of Rs. 456.64/- per share upon
conversion of FCCBs of US$ 13.4 million out of FCCBs of US$250
million.
In addition to the above, the Company has also issued and allotted
51,818,467 equity shares of Rs. 21- per share at a premium of Rs.
146.40/- per share upon conversion of FCCBs of US$ 158.13 million out
of FCCBs of US$ 165 million.
ISSUE OF NON CONVERTIBLE DEBENTURES
Subsequent to the year under review, the Company has also issued 10.25%
Unsecured, Redeemable, Non-convertible Debentures (NCDs) aggregating to
Rs.800 Crores on private placement basis to Banks & Financial
Institutions. The NCDs are redeemable by way of Bullet Payment at the
end of 5 years from the date of allotment viz., 20th September, 2010.
The NCDs are listed on the Bombay Stock Exchange Limited.
CREDIT RATING
The Credit Analysis & Research Ltd. (CARE) has assigned a CARE AA (CARE
Double A ) rating to the NCD issue of the Company for Rs. 800 Crores.
The instruments carrying AA rating are considered to offer high safety
for timely servicing of debt obligation. Such instruments carry very
low credit risk.
EXPANSION
During the year under review, the Company has expanded its capacity of
manufacturing of machined auto components from 305 lacs unit p.a. to
330 lacs unit pa. and forgings capacity from 135000 tpa to 165000 tpa.
SUBSIDIARY COMPANIES
As of 30th June 2010, Your Company has following subsidiaries:-
- Smith Jones Inc., USA
- Amtek Investments U.K. Limited (UK)
- Amtek Deutschland GmBh, Germany
- Amtek Investments U.S. 1 Inc.U.S.A
- Ahmednagar Forgings Limited, Pune
- Amtek Ring Gears Limited (formerly Benda Amtek Limited)
- Amtek Crankshafts India Limited (formerly Amtek Siccardi India
Limited)
- Amtek Transportation Systems Limited
- Alliance Hydro Power Limited.
A Statement in respect of the above said subsidiaries pursuant to
Section 212 of the Companies Act, 1956 is enclosed herewith as
required.
The Company has received exemption from the Central Government under
Section 212 (8) of the Companies Act, 1956, from the attachment of
copies of the Balance Sheet, Profit and Loss Account and other
documents of subsidiaries for the year ended 30th June, 2010. The
annual reports and accounts of the subsidiaries will be made available
upon request by any member of the Company interested in obtaining the
same. However, pursuant to Accounting Standard AS-21, Consolidated
Financial Statements presented by the Company include Annual Financial
Results of its subsidiaries.
DIRECTORS
In accordance with Section 256 of Companies Act, 1956 and the Article
of Association of the Company Mr B.Lugani & Mr. Sanjay Chhabra retire
at the ensuing Annual General Meeting and being eligible offer
themselves for re-appointment.
Brief resume of Mr. B. Lugani & Mr. Sanjay Chhabra containing nature of
their expertise in specific functional areas and names of companies in
which they hold directorships and memberships/chairmanships of Board
Committees, as stipulated under clause 49 of the Listing Agreements
with the Stock Exchanges in India, is provided in notice forming part
of the Annual Report.
AUDITORS
The Statutory Auditors of the Company M/s Manoj Mohan & Associates,
Chartered Accountants, who hold office until the conclusion of the
ensuing Annual General Meeting are willing to be reappointed as the
Statutory Auditor. A Certificate from Auditors have been received to
the effect that their appointment, if made, would be within the limit
prescribed under Section 2240B) of the Companies Act, 1956.
AUDITORS REPORT
Notes forming part of accounts, which are specifically referred to by
the auditors in their report, are self explanatory and therefore, do
not call for any further comments.
SHARE CAPITAL AUDIT
As per the directive of the Securities and Exchange Board of India
(SEBI) M/s Iqneet Kaur & Co., Company Secretaries, New Delhi,
undertakes Share Capital Audit on quarterly basis. The purpose of audit
is reconciliation of total shares held in CDSL, NSDL and physical form
with the admitted, issued and listed capital of the Company.
The Share Capital Audit Reports as submitted by the Auditor on
quarterly basis were duly forwarded to the Bombay Stock Exchange
Limited and National Stock Exchange of India Limited where the equity
shares of the Company are listed.
CONSOLIDATED FINANCIAL STATEMENT
The Audited Consolidated Financial Statement based on the Financial
Statements received from subsidiary companies as approved by their
respective Board of Directors, have been prepared as per the
requirements of the Listing Agreement and Accounting Standards 21 and
23 issued by The Institute of Chartered Accountants of India and show
the financial resources, assets, liabilities, income, profits and other
details of the Company, its associates Companies and its subsidiaries
after eliminating minority interest as single entry.
FIXED DEPOSITS
During the year under review, the Company has not accepted any public
deposits under Section 58A & 58AA of the Companies Act, 1956.
DE-MATERIALISATION OF SHARES
The Companys equity shares are available for dematerialization on both
the depositories viz., NSDL & CDSL. Shareholders may be aware that
SEBI has made trading in your Companys shares mandatory, in
dematerialized form. As on 30th June 2010, 20,05,17,596 equity shares
representing 99.41% of your Companys Equity Shares capital have been
de- materialised.
LISTING AT STOCK EXCHANGES
The Equity Shares of the Company are listed on Bombay Stock Exchange
Limited and The National Stock Exchange of India Limited. The Company
has paid annual listing fee to the Stock Exchanges for the year 2010 -
2011.
The Debentures of the Company are listed on Bombay Stock Exchange
Limited.
The Global Depository Receipts (GDRs) of the Company are listed at
London Stock Exchange and Foreign Currency Convertible Bonds (FCCBs)
are listed at Singapore Stock Exchange.
STATUTORY INFORMATION
- Particulars of Employees under section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 are
given in the Annexure and form part of this Report.
- Statutory details of Energy Conservation and Technology Absorption
R&D activities and Foreign Exchange Earnings and Outgo, as required
under Section 217(1) (e) of the Companies Act, 1956 and rules
prescribed there under i.e. the Companies (Disclosure of Particulars in
Report of Board of Directors) Rules, 1988 are given in the Annexure and
form part of this Report.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forming part of the
Directors Report and a certificate from the Companys auditors
confirming compliance of Corporate Governance norms as stipulated in
clause 49 VII of the Listing Agreement with the Indian Stock Exchanges
is included in the Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis of financial condition including the
results of operations of the Company for the year under review as
required under clause 49 of the Listing Agreement with stock exchange
is presented in separate section forming part of the Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 21712AA) of the Companies
Act, 1956, as amended by the Companies (Amendment) Act, 2000 with
respect to Directors Responsibility Statement, it is hereby confirmed
:-
- That in the preparation of the annual accounts for the year ended
30th June 2010, the applicable accounting standards have been followed;
- That the Directors had 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 profit or
loss of the Company for the year under review;
- That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities; and
- That the Directors had prepared the annual accounts on a going
concern basis.
INDUSTRIAL RELATIONS
During the year under review, the relations between the Management and
the workmen were highly cordial.
INVESTOR RELATIONS
Your Company always endeavors to keep the time of response to
shareholders requests / grievances at the minimum. Priority is
accorded to address all the issues raised by the shareholders and
provide them a satisfactory reply at the earliest possible time. The
shareholders and investors Grievances Committee of the Board meets
periodically and reviews the status of the redresses of investors
grievances.
ACKNOWLEDGEMENT
Your Directors would like to convey their appreciation for all the
co-operation and assistance received from the Government, Financial
Institutions, Bankers and Stakeholders of the Company. Your Directors
also appreciate and value the contribution made by employees in meeting
all the targets. We look forward to receiving the continued patronage
of our business partners to become a better and strong Company.
By order of the Board
For AMTEK AUTO LIMITED
Sd/-
Date : 24th November, 2010 (ARVIND DHAM)
Place : New Delhi Chairman
Jun 30, 2009
The Directors take pleasure in presenting the 23rd Annual Report and
the Audited Accounts of the Company for the financial year ended 30th
June 2009.
FINANCIAL RESULTS
(Rs. in Lacs)
PARTICULARS Year ended Year ended
30th June 2009 30th June 2008
Sales and Other Income 119527.83 142465.26
Expenditures 86489.73 97814.50
Gross Profit Before Deprecation 33038.10 44650.76
Deprecation 12260.35 9457.09
Profit Before Tax 20777.75 35193.67
Provisions for Taxation 5555.08 9068.61
Profit after Tax 15222.67 26125.06
Add. Accumulated Profit 14.90 12508.76
Balance available for appropriation 15237.57 38633.82
APPROPRIATIONS:
Transfer to General Reserve 11800.88 3000.00
Transfer to Foreign Currency Convertible
Bond Reserve 2475.00 34700.00
Proposed Dividend on Equity Shares 704.97 704.97
Equity Dividend & Tax for previous
year (not appropriated in previous year) 0.00 94.14
Provision for tax & CESS on dividend 119.81 119.81
Surplus carried to Balance Sheet 136.91 14.90
PPERFORMANCE
During the year under review, the turnover of the Company was Rs.
119527.83 lacs as against the previous year turnover of Rs.142465.26
lacs. The Profit after Tax of the Company for the year stands at Rs.
15222.67 lacs as against the previous year figure of Rs. 26125.06 lacs.
The Company has strong reserve position of Rs. 251462.34 lacs.
DIVIDEND
The Board of Directors are pleased to recommend a Dividend @ 25% for
the financial year 2009-10 i.e. Rs. 0.50/- Per equity share of Rs.2/-
each for your approval. The Proposed dividend if approved at the
ensuing Annual General Meeting would result in appropriation of Rs.
824.78 lacs (including Corporate Dividend Tax of Rs. 119.81 Lacs) out
of the profits. The Company has made transfer of Rs.11800.88 Lacs to
the General Reserve. The total appropriation of dividend of Rs.824.78
Lacs gives 5.42 % pay out on net profit of the Company.
The Register of members and share transfer books shall remain closed
from 28th December 2009 to 31st December 2009 (both days inclusive),
for the purpose of Annual General Meeting and payment of Dividend.
JOINT VENTURE AGREEMENTS
Joint Venture Agreement with Sumitomo Metal Industries
During the year under review, the Company signed a strategically
important JV agreement with the leading Japanese Steel Manufacturer,
Sumitomo Metal Industries Limited, based in Tokyo, Japan for Production
and sale of forged crankshafts for automotive applications in India. In
this Joint Venture, Amteks stake is 50% and the rest 50% is shared by
Sumitomo Metals (40%) and Sumitomo Corporation (10%). Sumitomo
Corporation is the global partner of crankshaft business of Sumitomo
Metals.
Sumitomo Metal is a leading manufacture of steel and various steel
products, including sheets, plates, tubes, bars, shapes and automotive
and machinery parts. This Joint Venture provides to Sumitomo Metals
entry into the high growth crankshaft market of India. This is based on
Sumitomo Metals Corporate Strategy to Ãadd strength to strong areas.Ã
With this entry to India, Sumitomo Metals will have a global Ãtetra
polarà production system (Japan, U.S., China, and India)
This Joint Venture is in line with Amteks strategy of augmenting its
product portfolio. This also makes Amtek a full serviced supplier of
crankshafts for automotive applications as Amtek has already created a
market leader position for itself in the field of fully machined
crankshafts.
This Joint Venture with Sumitomo Metals is another milestone for the
Amtek Group and step forward in direction of consolidating its customer
and product portfolio as well as attaining world class technological
edge in automotive manufacturing.
ISSUE OF FCCB
Pursuant to the approval of shareholders of the Company at the Extra
Ordinary General Meeting of the Company held on July 17, 2009, the
Committee of Directors issued and allotted Foreign Currency Convertible
Bonds aggregating to US$ 165 million, convertible into Equity Shares of
the Company at the option of the bondholders. These FCCBs are listed on
Singapore Stock Exchange.
ISSUE OF WARRANTS
Subsequent to the year under review, the Company issued and allotted
1,50,00,000 warrants entitling the warrant holder(s) to apply for
equivalent number of fully paid up equity shares of Rs.2/- per share at
a premium of Rs.131/- per share of the Company aggregating to Rs.
199.50 crores to the promoter group companies by way of preferential
allotment.
SHARE CAPITAL
Out of the above warrants, the Company has allotted 76,00,000 equity
shares upon conversion of warrants into equivalent number of equity
shares of Rs. 2/- at a premium of Rs. 131/- aggregating to Rs. 101.08
Crores to the promoter group companies by way of Preferential
Allotment.
In addition to the above, the Company has also issued and allotted
76,79,536 equity shares of Rs. 2/- per share at a premium of Rs.
146.4/- per share upon conversion of FCCBs of US$ 23.435 million out
of FCCBs of US$ 165 million.
ISSUE OF NON CONVERTIBLE DEBENTURES
Subsequent to the year under review, the Company issued 10% Secured
Redeemable Non-convertible Debentures (NCDs) aggregating to Rs.200
Crores on private placement basis to Life Insurance Corporation of
India. The NCDs are redeemable in five equal annual installments
commencing from the end of 6th year from the date of allotment. The
NCDs are listing on the Bombay Stock Exchange Limited.
CREDIT RATING
The Credit Analysis & research Ltd. (CARE) has assigned a CARE AA (CARE
Double A) rating to the NCD issue of the Company for Rs. 200 Crore. The
instruments carrying AA rating are considered to offer high safety for
timely servicing of debt obligation. Such instruments carry very low
credit risk.
EXPANSION
During the year under review, the Company has expanded its capacity of
manufacturing of machined auto components from 300 lacs unit p.a. to
305 lacs unit p.a. and aluminum casting capacity from 20000 tpa to
30000 tpa.
SUBSIDIARY COMPANIES
As of 30th June 2009, Your Company has following subsidiaries:-
- Smith Jones Inc., USA
- Amtek Investments U.K. Limited (UK)
- Amtek Deutschland GmBh, Germany and
- Amtek Investments U.S. 1 Inc.U.S.A.
- Ahmednagar Forgings Limited
- Amtek Ring Gears Limited (formerly Benda Amtek Limited)
- Amtek Crank Shaft India Limited (formerly Amtek Siccardi India
Limited)
- Amtek Transportation Systems Limited
A Statement in respect of the said subsidiaries pursuant to Section 212
of the Companies Act, 1956 is enclosed herewith as required.
The Company has received an exemption from the Central Government under
section 212 (8) of the Companies Act, 1956, from the attachment of
copies of the Balance Sheet, Profit and Loss Account and other
documents of subsidiaries for the year ended 30th June, 2009. The
annual report and accounts of the subsidiaries will be made available
upon request by any member of the Company interested in obtaining the
same. However, pursuant to Accounting Standard AS-21, Consolidated
Financial Statements presented by the Company include Financial Results
of its subsidiaries.
DIRECTORS
Mr Rajeev Thakur, retire at the ensuing Annual General Meeting and
being eligible offers himself for re-appointment.
Brief resume of Mr. Rajeev Thakur containing nature of his expertise in
specific functional areas and names of companies in which he holds
directorships and memberships/chairmanships of Board Committees, as
stipulated under clause 49 of the Listing Agreements with the Stock
Exchanges in India, is provided in notice forming part of the Annual
Report.
AUDITORS
The Auditors of the Company M/s Manoj Mohan & Associates, Chartered
Accountants, hold office until the conclusion of the ensuing Annual
General Meeting and are recommended for reappointment. Certificate from
Auditors have been received to the effect that their appointment, if
made, would be within the limit prescribed under Section 224(1B) of the
Companies Act, 1956.
Notes forming part of accounts, which are specifically referred to by
the auditors in their report, are self explanatory and therefore, do
not call for any further comments.
CONSOLIDATED FINANCIAL STATEMENT
The Audited Consolidated Financial Statement based on the Financial
Statement received from subsidiary companies as approved by their
respective Board of Directors, have been prepared as per the
requirements of the Listing Agreement and Accounting Standards and
Guidelines issued by The Institute of Chartered Accountants of India.
FIXED DEPOSITS
During the year under review, the Company has not accepted public
deposits under section 58 - A of the Companies Act, 1956.
DE-MATERIALISATION OF SHARES
The Companys equity shares are available for de - materialization on
both the depositories viz., NSDL & CDSL. Shareholders may be aware
that SEBI has made trading in your companys shares mandatory, in de -
materialized form. As on 30th June 2009, 14,03,63,749 equity shares
representing 99.55% of your Companys Equity Share Capital have been
de-materialised.
LISTING AT STOCK EXCHNAGE
The Equity Shares of Company are listed on Bombay Stock Exchange
Limited and The National Stock Exchange of India Limited. The Company
has paid annual listing fee to the Stock Exchanges for the year 2009 -
2010.
The Secured Redeemable Non Convertible Debentures of the Company are
listed on Bombay Stock Exchange Limited.
The Global Depository Receipts (GDRs) of the Company are listed at
London Stock Exchange and Foreign Currency Convertible Bonds (FCCBs)
are listed at Singapore Stock Exchange.
STATUTORY INFORMATION
- Particular of Employees under section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 -
Details are given in the Annexure and form part of this Report.
- Statutory details of Energy Conservation and Technology Absorption, R
& D activities and Foreign Exchange Earning and Outgo, as required
under Section 217(1) (e) of the Companies Act, 1956 and rules
prescribed there under i.e. the Companies (Disclosure of Particulars in
Report of Board of Directors) Rules, 1988 are given in the Annexure and
form part of this Report.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forming part of the
Directors Report and the certificate from the Companys auditors
confirming compliance of Corporate Governance norms as stipulated in
clause 49 VI of the Listing Agreement with the Indian Stock Exchanges
is included in the Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis of financial condition including the
results of operations of the Company for the year under review as
required under clause 49 of the Listing Agreement with Stock Exchange
is presented in separate section forming part of the Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, as amended by the Companies (Amendment) Act, 2000 with
respect to Directors Responsibility Statement, it is hereby confirmed
:-
- That in the preparation of the annual accounts for the year ended
30th June 2009, the applicable accounting standards have been followed;
- That the Directors had 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 profit or
loss of the Company for the year under review;
- That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities; and
- That the Directors had prepared the annual accounts on a going
concern basis.
INDUSTRIAL RELATIONS
During the year under review, the relations between the Management and
the workmen were highly cordial.
ACKNOWLEDGEMENT
Your Directors would like to convey their appreciation for all the
co-operation and assistance received from the Government, Financial
Institutions, Bankers and Stakeholders of the Company. Your Directors
also express their appreciation of the dedication of employees in
meeting all targets. We look forward to receiving the continued
patronage of our business partners to become a better and strong
Company.
By order of the Board
For AMTEK AUTO LIMITED
Sd/-
Date 02.12.2009 (ARVIND DHAM)
Place : New Delhi Chairman
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