Mar 31, 2018
Dear Shareholders
The Directors have pleasure in presenting the 31st Annual Report together with the Audited Accounts for the year ended 31st March, 2018
FINANCIAL RESULTS Rupees in lakhs
PARTICULARS |
2017-2018 |
2016-2017 |
REVENUE FROM OPERATIONS |
1,00,137.75 |
94777.38 |
OTHER INCOME |
120.90 |
148.21 |
PROFIT BEFORE FINANCIAL CHARGES & DEPRECIATION |
6581.48 |
3839.45 |
LESS: FINANCE COSTS |
320.38 |
447.12 |
PROFIT BEFORE DEPRECIATION & TAXATION |
6261.10 |
3392.33 |
LESS: |
||
A) DEPRECIATION |
1911.08 |
1710.34 |
B) PROVISION FOR TAXATION |
||
- CURRENT TAX(NET OF MAT CREDIT ENTITLEMENT) |
1542.02 |
425.20 |
- DEFERRED TAX |
(61.34) |
112.53 |
- ADJUSTMENT OF TAX RELATING TO EARLIER YEARS |
47.83 |
(73.05) |
NET PROFIT AFTER TAX |
2821.51 |
1217.31 |
ADD: OTHER COMPREHENSIVE INCOME, NET OF TAXES |
(19.21) |
(7.59) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2802.30 |
1,209.72 |
TRANSFER TO GENERAL RESERVE |
- |
- |
BALANCE CARRIED FORWARD TO BALANCE SHEET |
2802.30 |
1209.72 |
FINANCIAL HIGHLIGHTS AND OPERATIONS
The revenue from operations and other income for the financial year under review was Rs. 100,258.65 lakhs as against Rs 94,925.59 lakhs for the previous financial year, i.e. an increase by 5.62%.The profit before finance costs, depreciation and taxation is Rs.6581.48 lakhs for the financial year under review as against Rs 3839.45 lakhs for the previous financial year, i.e. increase by 71.42%. The profit after tax increased to Rs. 2821.51 lakhs, as compared to Rs. 1217.31 lakhs for the previous financial year, i.e. increase by 131.78%. Total comprehensive income for the year increased to Rs. 2802.30 lakhs as compared to Rs. 1209.72 lakhs for the previous financial year, i.e. increase by 131.65%. This is mainly due to increase in volumes and other cost saving measures taken by the Company.
TPM ACTIVITY
To achieve vision, mission and business objectives, we are practicing TPM which is a proven world class practice and we had experienced the benefits of the same methodology.
We have started TPM activity first time in year 1999 at Gurugram Plant under the able guidance of Yamaguchi san and mentoring of our Chairman and Managing Director, Mr. Rohit Relan and learnt numerous new tools and techniques and achieved positive results and BSL Gurugram plant was awarded with Excellence Award in 2006 by JIPM (Japan Institute of Plant Maintenance).
Now Bharat Seats Limited (BSL) at Group Level has started TPM activity under the able guidance of Kuramitsu san(TPM Consultant from JMAC, Japan) and mentoring of our CMD, Mr. Rohit Relan. We launched the same in July 2017 with total Management commitment. Now Gurugram Plant has started activity for Second Level Award which is Consistence in Excellence and Manesar, Bhorakalan and TRIM plants are going for Excellence Award in 2020.
To achieve the said objective and award, all manufacturing locations of BSL have started working for model machine (one each in each plant) achieved significant improvements and results in terms of PQCDSME (Productivity, Quality, Cost, Delivery, Safety, Morale and Environment).
TPM kick-off happened in February 2018 in the presence of esteemed guest from our valuable customer (MSIL), our Key Suppliers, Mr. Rohit Relan CMD and BSL Team and Pillars. Now we are in the expansion phase to implement TPM Activity at all manufacturing locations with emphasis on Kaizen, Autonomous Maintenance, Focused Improvements and other Improvement project, activities and actions initiated as per the guidelines of Kuramitsu san.
TRANSFER TO GENERAL RESERVE
During the F.Y 2017-18, the Company has not transferred any amount to General Reserve.
DIVIDEND
Your Directors are pleased to recommend for the approval of the shareholders at the 31st Annual General Meeting, a dividend of 50% (Re 1/- per equity share) for the financial year ended 31.03.2018 . The dividend shall be subject to tax on dividend to be paid by the Company.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND
a. The members of the Company are informed that the dividends that remain unpaid / unclaimed for a period of 7 (seven) years from the date of transfer to the Unpaid / Unclaimed dividend account are required to be transferred to the Investor Education & Protection Fund (IEPF) Authority established by the Central Government.
Accordingly, during the financial year under review, the Company has transferred Unpaid/ Unclaimed dividend amounting to Rs.1,65,740 lying with the Company for a period of seven years pertaining to the financial year ended on March 31st, 2010.
b. The members of the Company are also informed that as per the new provisions introduced in the year 2016, underlying equity shares on which dividend remain Unpaid/Unclaimed for a period of 7 (seven) consecutive years are required to be transferred to the Investor Education & Protection Fund (IEPF) Authority established by the Central Government.
Accordingly, during the financial year under review, the Company has transferred the following shares to IEPF Authority:
(i) 40,827 equity shares in respect of which dividend have not been claimed by the members for seven consecutive years pertaining to the financial year ended on Marh 31, 2010, upto financial year 2016.
SHARE CAPITAL
There is no change in the capital structure of the Company.
CHANGE IN THE NATURE OF BUSINESS
There was no change in the nature of business during the financial year 2017-2018 under review.
AWARDS AND RECOGNITION
During the year, your Company has been awarded:
1. Certificate for Yield Improvement
2. Shield for Overall Performance at Vendor Conference of Maruti Suzuki India Limited, held in Singapore.
Your Company has been awarded:
- a certificate for Fire Safety at Vendor Conference of Maruti Suzuki India Limited held in May, 2018; and
- a shield for cost reduction from Suzuki Motor Cycle India Private Limited.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion And Analysis as stipulated under Regulation 34 of the SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015 is presented in a separate section, forming part of the Annual Report.
CREDIT RATING
ICRA has assigned its Short Term credit rating of A2 and Long term Credit rating of A-, indicating the outlook on the long term rating as âStableâ.
RELATED PARTY TRANSACTIONS
All contracts/ transactions entered into by the Company during the financial year with related parties were in the ordinary course of business and on armâs length basis.
The Related Party Transactions Policy as approved by the Board is uploaded on the Companyâs website at the web link: http://www.bharatseats.com/investors/ Policy on Related Party Transactions.
The information relating to particulars of contracts or arrangements with related parties referred to in sub section (1) of section 188 of the Companies Act, 2013 in Form AOC-2 is annexed as Annexure I, forming part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to conservation of energy, technology absorption, foreign exchange earnings and outgo pursuant to Section 134(3)( m) of the Companies Act, 2013 read with Rule 8(3) of Companies(Accounts) Rules, 2014 is annexed hereto as Annexure II, forming part of this Report.
BOARD ANNUAL EVALUATION
In compliance with the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and guidance note dt. 5th January, 2017, performance evaluation was carried out of the Board, its Committees and individual Directors, including the Chairman of the Board.
Nomination & Remuneration Committee reviewed the evaluation criteria for the Board, its Committees, Executive and non-executive Directors and Chairman of the Company, considering qualification, expertise, attributes and various parameters based on which evaluation of the Board has to be carried out by the Company.
A separate meeting of the independent directors was convened which reviewed the performance of the Board (as a whole), Committees of the Board, the nonindependent directors and the Chairman.
The evaluation of Independent Directors was carried out by the Board.
This exercise was carried out through structured evaluation process covering various aspects of the Board such as composition of the Board/ Committees, experience, competencies, performance of specific duties etc. Separate exercise was carried out to evaluate the performance of individual directors, including Board Chairman who were evaluated on the parameters such as attendance, contribution at the meeting, independent judgment etc. and was found to be satisfactory.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
DIRECTORS:
During the year under review, Mr. T.J. Chacko, Director (Operations) ceased to be Director of the company due to expiry of his tenure as Whole time Director w.e.f. 30.11.2017.
In accordance with the Articles of Association of the Company and relevant provisions of the Companies Act, 2013, Mr. Toshiya Miki (DIN: 07505339) retire by rotation at the ensuing Annual General Meeting.
The Board recommends his re-appointment.
The Company has received declaration from all the Independent Directors confirming that they meet the criteria of Independence as prescribed under Section 149(6) of the Companies Act, 2013 read with the schedules and rules made there under as well as SEBI(Listing Obligations And Disclosure Requirements) Regulations, 2015.
KEY MANAGERIAL PERSONNEL (KMP)
Mr. Rohit Relan, Chairman and Managing Director, Mr. Sanjeev Kumar, CFO and Ms. Ritu Bakshi, Company Secretary continue to be the KMPs of the Company in terms of Section 203 of the Companies Act, 2013 read with the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.
CORPORATE GOVERNANCE
The Company is committed to maintain the highest standards of Corporate Governance and adhere to the Corporate Governance requirements as set out by the Regulators/ applicable laws.
The report on Corporate Governance as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 been included in this Annual Report as a separate section, along with the Auditorsâ Certificate.
DETAILS OF DEPOSIT AS PROVIDED UNDER CHAPTER V OF THE COMPANIES ACT, 2013
Your Company has not accepted any deposits under Chapter V of the Companies Act, 2013.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGISTRARS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYâS OPERATION IN FUTURE
None
DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS
The Directors had laid down internal financial controls to be followed by the Company and such policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to 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 information. The Audit Committee evaluates the internal financial control system periodically.
LISTING
The Equity shares of the Company are listed at Bombay Stock Exchange. The Company has paid listing fees due to the Stock Exchange.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The CSR Policy, recommended by the Audit Committee and approved by the Board is uploaded on the Companyâs website at the web link: http://www.bharatseats.com/investors/Corporate Social responsibility Policy
The Corporate Social Responsibility Report as provided in Companies (Corporate Social Responsibility Policy) Rules, 2014 and there was no unspent amount during the financial year. The detail is annexed hereto as Annexure III.
EXTRACT OF ANNUAL RETURN
Pursuant to sub section (3) of Section 92 and Sub section (3)(a) of Section 134 of the Companies Act, 2013 read with Rule 12 of Companies (Management And Administration) Rules, 2014, the extract of Annual return as on 31st March, 2018 is annexed hereto as Annexure IV.
MEETINGS OF THE BOARD
Four meetings of the Board of Directors were held during the financial year. For further details, please refer the Report on Corporate Governance to this Annual Report.
AUDIT COMMITTEE
The Audit Committee comprises of Independent Nonexecutive Directors, namely Mr. G.N. Mehra, Chairman, Mr. P.K. Lahiri and Mr. Ravindra Gupta.
Powers and Role of the Audit Committee are included in the Corporate Governance Report. All the recommendations made by the Audit Committee were accepted by the Board.
DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors confirm that :
(a) In the preparation of the annual accounts, the applicable accounting standards have been followed and no material departures have been made from the same.
(b) Appropriate accounting policies have been selected and applied consistently and judgments and estimates made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at 31st March, 2018 and of the Profit or Loss of the Company for the year ending 31st March, 2018;
(c) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) The annual accounts have been prepared on a going concern basis.
(e) Internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively.
(f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
PARTICULARS OF EMPLOYEES
Disclosure as required under Sub Rule 2 of Rule 5 of Companies (Appointment And Remuneration of Managerial Personnel) Rules, 2014 is annexed hereto as Annexure V.
The ratio of the remuneration of each Director to the median employeesâ remuneration and others detail in terms of Sub Section 12 of Section 197 of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as part of the report to Annexure VI.
COMPANYâS POLICY ON DIRECTORSâ APPOINTMENT AND REMUNERATION INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR AND OTHER MATTERS AS PROVIDED UNDER SUB SECTION(3) OF SECTION OF THE COMPANIES ACT, 2013
The Company has formulated a Nomination and Remuneration Policy which annexed as part of the report as Annexure VII. Other details are provided in Corporate Governance Report.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
There was no transaction falling under the provision of Section 186 during the financial year under review.
RISK MANAGEMENT
The Company has in place the Risk Management Policy to identify and assess the key risk areas and monitor the same.
The Board periodically reviews the risks and suggests steps to be taken to control the risks.
VIGIL MECHANISM
The Company has in place an established Whistle Blower Policy. The Audit Committee and the Board periodically reviews the policy and its implementation. The purpose of this policy is to provide a framework to promote responsible whistle blowing by employees.
The Whistle Blower Policy may be accessed at the Companyâs website at web link: http://www. bharatseats. com/investors/policies/Whistle Blower Policy.pdf
HUMAN RESOURCES
Our relations with the employees are very cordial. Your Directors would like to place on record their appreciation of the commitment and efficient services rendered by all employees of the Company, without whose wholehearted efforts, the overall satisfactory performance of the Company would not have been possible
AUDITORS AND AUDITORSâ REPORT
(a) Statutory Auditors
The shareholders of the Company at last AGM held on September 21, 2017 appointed M/s S.R. Batliboi & Co. LLP Chartered Accountants, LLP, (ICAI Firm Registration No. 301003E/E300005, as the Statutory Auditors of the Company for an initial term of 5 years, subject to ratification by members at every Annual General Meeting, if required under the provisions of the Companies Act, 2013. However, the Companies Amendment Act, 2013 has deleted the condition of ratification of statutory auditors and accordingly they hold their office till the conclusion of Annual General Meeting to be held in 2022.
The Auditorsâ Report given by M/s S.R. Batliboi & Co. LLP, Statutory Auditors on the financial statements of the Company for the year ended March 31, 2018 is part of the Annual Report. The Auditorsâ Report does not contain any qualification, reservation or adverse remark. During the year under review, the Auditors had not reported any matter under Section 143 (12) of the Act, therefore no detail is required to be disclosed under Section 134 (3)(ca) of the Act.
(b) Secretarial Auditors
In accordance with the provisions of the Section 204 read with the Companies (Appointment And Remuneration of Managerial personnel) Rules, 2014, the Secretarial Audit was carried out by Mr. R S Bhatia, Practising Company Secretary for the Financial year: 2017-18. The report of Secretarial Auditor for the financial year 2017-18 is annexed herewith marked as Annexure VIII to this Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
SAFETY
SAFETY FIRST is what the Company preaches and practise. It is an oath. With the regular guidance from safety team of MSIL, today Bharat Seats Limited (BSL) is among the top companies which has made safe work practices its culture.
Installation of Aerosol Fire Detection and Suppression System at all manufacturing locations for special Hazard Fire Protection is in itself a unique approach pioneered and installed by BSL.
Besides this the environmentally friendly practices, fire extinguishers of MAP 90%, thermography test, adherence to NBC 2016, NOC from fire office and regular third party inspections speaks of the commitment.
The review mechanism, monitoring and mock drills happen periodically and is carried out none other than by the CMD, Mr. Rohit Relan. SHE (Safety, Health and Environment) training is imparted to all employees at all levels.
EFFECIVE MANAGEMENT SYSTEMS
The Company is system certified for IATF (International Automotive Task Force) 16949 for quality, ISO 14001 for Environment and OHSAS for Occupational Health and Safety.
OHSAS is internationally recognized model for occupational Health and Safety Assessment series for Management Systems. The Company focuses to control all the risks involved in all the functions across the company even before they could happen.
Our Chairman and Managing Director, Mr. Rohit Relan focus on effective mitigation of all the likely risks involved, has led to all employees feeling a safe and healthy working environment thus resulting them in performing at their optimum level of competence.
ENVIRONMENT
The Company is committed to the protection of environment and is not involved in any type of activity hazardous to environment. It strictly adheres to the provisions of environmental laws. There is no trade effluent generated by the Company which may cause pollution. Our Company is an ISO14001 certified company.
DISCLOSURE AS REQUIRED UNDER SECTION 22 OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has in place an Anti Sexual Harassment Policy in line with the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The following is the summary of the complaints received and disposed off during the financial year: 2017-18:
a) No. of complaints received: NIL
b) No. of Complaints disposed off: NIL SHARES
a. Buy Back Of Securities
The Company has not bought back any of its securities during the year under review.
b. Sweat Equity
The Company has not issued any Sweat Equity Shares during the year under review.
c. Bonus Shares
No Bonus Shares were issued during the year under review.
d. Issue of Shares with Differential Rights
The Company has not issued any Shares with differential rights during the year under review.
e. Issue of Shares under Employee Stock Option Scheme
No such issue of shares under employee stock option scheme was made.
f. Issue of Shares through Private Placement- Nil
g. Issue of Equity Shares without Differential Voting Rights- Nil
ACKNOWLEDGEMENTS
The Directors place on record their deep appreciation of the valuable assistance and co-operation extended to the Company by Suzuki Motor Corporation, Japan, Maruti Suzuki India Ltd., Suzuki Motorcycle India Private Limited, Toyo Seat Co. Ltd., Japan, Houwa Kogyo Co Ltd., Japan, Inoac Corporation, Japan, State Bank of India, Bank of Tokyo- Mitsubishi UFJ Ltd., Yes Bank Ltd., HDFC Bank Ltd., IDBI Bank Ltd., various departments of Central Government and Haryana State Government. The directors convey their deep appreciation to each and every employee for her/ his efficient service, commitment and collective team work.
Your support as shareholders is greatly valued.
Your Directors thank you and look forward to the future with confidence.
For and on behalf of the Board
Bharat Seats Limited
Place : Gurugram (Rohit Relan)
Dated : 10.8.2018 Chairman and Managing Director
Mar 31, 2016
Dear Shareholders
The Directors have pleasure in presenting the 29th Annual Report together with the Audited Accounts for the year ended 31st March, 2016
FINANCIAL RESULTS Rupees in lakhs
PARTICULARS |
2015-2016 |
2014-2015 |
NET REVENUE FROM OPERATIONS |
69983.59 |
69342.32 |
OTHER INCOME |
219.88 |
166.23 |
PROFIT BEFORE FINANCIAL CHARGES & DEPRECIATION |
3166.40 |
3401.21 |
LESS: FINANCE COSTS |
537.97 |
620.92 |
PROFIT BEFORE DEPRECIATION & TAXATION |
2628.43 |
2780.29 |
LESS: |
||
A) DEPRECIATION |
1670.22 |
1642.25 |
B) PROVISION FOR TAXATION |
||
- CURRENT TAX(NET OF MAT CREDIT ENTITLEMENT) |
231.29 |
234.95 |
- DEFERRED TAX |
22.60 |
91.10 |
NET PROFIT AFTER TAX |
704.32 |
811.99 |
ADD: BROUGHT FORWARD FROM PREVIOUS YEAR |
50.00 |
50.00 |
PROFIT AVAILABLE FOR APPROPRIATION |
754.32 |
861.99 |
APPROPRIATIONS: |
||
PROPOSED DIVIDEND |
282.60 |
282.60 |
CORPORATE DIVIDEND TAX |
57.53 |
57.53 |
TRANSFER TO GENERAL RESERVE |
- |
471.86 |
BALANCE CARRIED FORWARD TO BALANCE SHEET |
414.19 |
50.00 |
FINANCIAL HIGHLIGHTS AND OPERATIONS
The gross revenue from operations and other income for the financial year under review was Rs. 79533.57.lacs as against Rs 78371.57 lacs for the previous financial year. The profit before finance costs, depreciation and taxation is Rs. 3166.40 lacs for the financial year under review as against Rs 3401.21 lacs for the previous financial year, i.e. decrease by 6.90%. The profit after tax decreased to Rs.704.32 lacs, as compared to Rs. 811.99 lacs for the previous financial year, i.e. decrease by 13.26%. This is mainly due to on account of expenses incurred on strengthening of R&D Department and Business Development.
DIVIDEND
Your Directors are pleased to recommend for the approval of the shareholders, a dividend of 45% (Re 0.90/- per equity share) for the financial year ended 31.03.2016.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion And Analysis as stipulated under Regulation 34 of the SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015 is presented in a separate section, forming part of the Annual Report.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN SUB SECTION (1) OF SECTION 188 OF THE COMPANIES ACT, 2013
All contracts/ transactions 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. The Related Party Transactions Policy as approved by the Board is uploaded on the Company''s website at the weblink: http://www.bharatseats.com/investors/ Policy on Related Party Transactions.
The information relating to particulars of contracts or arrangements with related parties referred to in sub section (1) of section 188 of the Companies Act, 2013 in Form AOC-2 is annexed as Annexure I, forming part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to conservation of energy, technology absorption, foreign exchange earnings and outgo pursuant to Section 134(3)( m) of the Companies Act, 2013 read with Rule 8(3) of Companies(Accounts) Rules, 2014 is annexed hereto as Annexure II, forming part of this Report.
BOARD ANNUAL EVALUATION
In compliance with the Companies Act, 2013 and SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015, performance evaluation was carried out of the Board, its Committees and individual Directors, including the Chairman of the Board.
Nomination & Remuneration Committee reviewed the evaluation criteria for the Board, its Committees, Executive and non-executive Directors and Chairman of the Company, considering qualification, expertise, attributes and various parameters based on which evaluation of the Board has to be carried out by the Company.
A separate meeting of the independent directors was convened which reviewed the performance of the Board(as a whole), Committees of the Board, the no independent directors and the Chairman.
The evaluation of Independent Directors was carried out by the entire Board.
This exercise was carried out through structured evaluation process covering various aspects of the Board such as composition of the Board/ Committees, experience, competencies, performance of specific duties etc. Separate exercise was carried out to evaluate the performance of individual directors, including Board Chairman who were evaluated on the parameters such as attendance, contribution at the meeting, independent judgment etc. and was found to be satisfactory.
DIRECTORS AND KEY MANAGERIAL PERSONNEL DIRECTORS:
In accordance with the Articles of Association of the Company and relevant provisions of the Companies Act, 2013, Mr. Narinder Dev Relan(DIN: 00240280) and Mr. Ajay Relan (DIN:00257584) are liable to retire by rotation at the ensuing Annual General Meeting and being eligible, have offered themselves for reappointment.
The Board recommends their re-appointment.
Mr. Venkat Raman Challa , Nominee Director - Maruti Suzuki India Limited, was appointed as an Additional Director w.e.f.18th July, 2015, who shall hold office up to the date of the ensuing Annual general meeting. The Company has received requisite notice in writing from the member proposing the candidature of Mr. Challa for the office of Director. The Board recommend the appointment of Mr. Challa.
During the year, Mr. I.V. Rao, Director resigned w.e.f. close of business hours on 17th July, 2015. The Board placed on record its appreciation for the valuable services rendered by Mr. I.V.Rao during his association with your Company.
The Company has received declaration from all the Independent Directors confirming that they meet the criteria of Independence as prescribed under Section 149(6) of the Companies Act, 2013 read with the schedules and rules made there under as well as SEBI(Listing Obligations And Disclosure Requirements) Regulations, 2015.
KEY MANAGERIAL PERSONNEL(KMP):
Mr. Rohit Relan, Managing Director, Mr. TJ.Chacko, Director (Operations), Mr. Sanjeev Kumar, CFO and Ms. Ritu Bakshi , Company Secretary continue to be the KMPs of the Company in terms of Section 203 of the Companies Act, 2013 read with the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.
CORPORATE GOVERNANCE
The Company is committed to maintain the highest standards of Corporate Governance and adhere to the Corporate Governance requirements as set out by the Regulators/ applicable laws.
The report on Corporate Governance as stipulated under SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015 been included in this Annual Report as separate section, along with the Auditors'' Certificate. The composition of Audit Committee with other details also form part of Corporate Governance Report.
DETAILS OF DEPOSIT AS PROVIDED UNDER CHAPTER V OF THE COMPANIES ACT, 2013
During the year, your Company has not accepted any deposits within the meaning of section 73 of the Companies Act, 2013 read with Companies(Acceptance of Deposit)Rules, 2014and as such, no amount of principal or interest was outstanding as on the date of the Balance Sheet.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGISTRARS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S OPERATION IN FUTURE
None
DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS
A strong internal control culture is prevalent in the Company. The Internal Auditor monitors the compliance with the objective of providing to the Audit Committee and the Board of Directors an independent and reasonable assurance on the adequacy and effectiveness of the organizationâs governance processes.
LISTING
The Equity shares of the Company are listed at Bombay Stock Exchange. The Company has paid listing fees due to the Stock Exchange.
CORPORATE SOCIAL RESPONSIBILITY (CSR )
The CSR Policy, recommended by the Audit Committee and approved by the Board is uploaded on the Company''s website at the weblink:
http://www.bharatseats.com/investors/Corporate Social Responsibility Policy
The Corporate Social Responsibility Report as provided in Companies(Corporate Social Responsibility Policy) Rules, 2014 is annexed hereto as Annexure III.
EXTRACT OF ANNUAL RETURN
Pursuant to sub section (3) of Section 92 and Sub section (3)(a) of Section 134 of the Companies Act, 2013 read with Rue 12 of Companies(Management And Administration)Rules, 2014, the extract of Annual return as on 31st March, 2016 is annexed hereto as Annexure IV.
NUMBER OF MEETINGS OF THE BOARD
Four meetings of the Board of Directors were held during the financial year. For further details, please refer the Report on Corporate Governance to this Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) ( c) of the Companies Act, 2013, the Directors confirm that :
(a) In the preparation of the annual accounts, the applicable accounting standards have been followed and no material departures have been made from the same.
(b) Appropriate accounting policies have been selected and applied consistently and judgments and estimates made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at 31st March, 2016 and of the Profit or Loss of the Company for the year ending 31st March, 2016;
(c) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 , for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) The annual accounts have been prepared on a going concern basis.
(e) Internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively.
(f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
PARTICULARS OF EMPLOYEES
Disclosure as required under Sub Rule 2 of Rule 5 of Companies (Appointment And Remuneration of Managerial Personnel) Rules, 2014 is annexed hereto as Annexure V.
The ratio of the remuneration of each Director to the median employees'' remuneration and others detail in terms of Sub Section 12 of Section 197 of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as part of the report to Annexure V.
COMPANY''S POLICY ON DIRECTORS'' APPOINTMENT AND REMUNERATION INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR AND OTHER MATTERS AS PROVIDED UNDER SUB SECTION(3) OF SECTION 178 OF THE COMPANIES ACT, 2013
The Company has formulated a Nomination And Remuneration Policy. Details are provided in Corporate Governance Report.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186.
None
STATEMENT INDICATING DEVELOPMENT AND IMPLEMENTATION OF A RISK MANAGEMENT POLICY FOR THE COMPANY INCLUDING IDENTIFICATION THEREIN OF ELEMENTS OF RISK, IF ANY, WHICH IN THE OPINION OF THE BOARD MAY THREATEN THE EXISTENCE OF THE COMPANY
1. The Company has in place the Risk Management Policy to identify and assess the key risk areas and monitor the same.
The Board periodically reviews the risks and suggests steps to be taken to control the risks.
2. WHISTLE BLOWER POLICY
The Company has implemented Whistle Blower Policy. The Audit Committee and the Board periodically reviews the policy and its implementation.
The Whistle Blower Policy may be accessed at the Company''s website at weblink:http://www. bharatseats.com/investors/policies/Whistle Blower Policy.pdf
HUMAN RESOURCES
Our relations with the employees are very cordial. Your Directors would like to place on record their appreciation of the commitment and efficient services rendered by all employees of the Company, without whose wholehearted efforts, the overall satisfactory performance of the Company would not have been possible.
AUDITORS AND AUDITORSâ REPORT
(a) Statutory Auditors
M/s S.S.Kothari Mehta & Co., Chartered Accountants hold office till the conclusion of the ensuing Annual General Meeting and being eligible offer themselves for reappointment. They have confirmed that their re-appointment, if made, would be within the prescribed limits under the Act and that they are not disqualified for re-appointment.
The notes on financial statement referred to in the Auditors'' Report are self explanatory and do not call for any further comments. The Auditors'' Report does not contain any qualification, reservation or adverse remark.
(b) Secretarial Auditor
Pursuant to the provisions of Section 204 of the Companies Act, 2013, the Company had appointed Ms.Nidhi Chawla, Practicing Company Secretary, to conduct Secretarial Audit for the financial year: 2015-16. The Company provided all assistance and facilities to the Secretarial Auditor for conducting their audit. The report of Secretarial Auditor for the financial year 2015-16 is annexed herewith marked as Annexure VII to this Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
ENVIRONMENT
The Company is committed to the protection of environment and is not involved in any type of activity hazardous to environment. It strictly adheres to the provisions of environmental laws. There is no trade effluent generated by the Company, which may cause pollution. Our Company is an ISO14001 certified company.
DISCLOSURE AS REQUIRED UNDER SECTION 22 OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE(PREVENTION, PROHIBITION AND REDRESSAL)ACT, 2013
The Company has in place an Anti Sexual Harassment Policy in line with the requirement of the Sexual Harassment of Women at Workplace(Prevention, Prohibition and Redressal) Act, 2013.
The following is the summary of the complaints received and disposed off during the financial year: 2015-16:
a) No. of complaints received : NIL
b) No. of Complaints disposed off: NIL
ACKNOWLEDGEMENTS
The Directors place on record their deep appreciation of the valuable assistance and co-operation extended to the Company by Suzuki Motor Corporation, Japan, Maruti Suzuki India Ltd., Suzuki Motorcycle India Pvt. Limited, Toyo Seat Co. Ltd., Japan, Houwa Kogyo Co Ltd , Japan, Inoac Corporation, Japan, State Bank of Travancore, Bank of Tokyo- Mitsubishi UFJ Ltd., Yes Bank Ltd., IDBI Bank Ltd., various departments of Central Government and Haryana State Government. The directors convey their deep appreciation to employees at all levels for their commitment and collective team work.
Your support as shareholders is greatly valued .
Your Directors thank you and look forward to the future with confidence.
For and on behalf of the Board
BHARAT SEATS LIMITED
Place : New Delhi (N. D. RELAN)
Dated : 15th April, 2016 CHAIRMAN
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the 28th Annual Report
together with the Audited Accounts for the year ended 31st March, 2015
FINANCIAL RESULTS Rupees in lakhs
PARTICULARS 2014-2015 2013-2014
NET REVENUE FROM OPERATIONS 69394.36 56003.83
OTHER INCOME 114.19 24.05
PROFIT BEFORE FINANCIAL 3401.21 2878.36
CHARGES & DEPRECIATION
LESS: FINANCE COSTS 620.92 625.84
PROFIT BEFORE DEPRECIATION 2780.29 2252.52
& TAXATION
LESS:
A) DEPRECIATION 1642.25 1352.14
B) PROVISION FOR TAXATION
CURRENT TAX(NET OF MAT 234.95 37.05
CREDIT ENTITLEMENT)
TAXES PAID FOR EARLIER YEARS - 1.85
DEFERRED TAX 91.10 190.72
NET PROFIT AFTER TAX 811.99 670.76
ADD: BROUGHT FORWARD FROM PREVIOUS 50.00 50.00
YEAR
PROFIT AVAILABLE FOR APPROPRIATION 861.99 720.76
APPROPRIATIONS:
PROPOSED DIVIDEND 282.60 251.20
CORPORATE DIVIDEND TAX 57.53 42.69
TRANSFER TO GENERAL RESERVE 471.86 376.87
BALANCE CARRIED FORWARD TO BALANCE 50.00 50.00
SHEET
PERFORMANCE REVIEW
The gross revenue from operations and other income for the financial
year under review was Rs. 78371.57 lacs as against Rs. 63,199.95 lacs
for the previous financial year. The profit before finance costs,
depreciation and taxation is Rs. 3401.21 lacs for the financial year
under review as against Rs. 2878.36 lacs for the previous financial
year, i.e. an increase by 18%. The profit after tax increased to Rs.
811.99 lacs, as compared to Rs. 670.76 lacs for the previous financial
year, i.e. an increase by 21%. This is mainly due to increase in
volumes and other cost saving measures by the Company.
OPERATIONS
Your Company is well on the way to further growth. Your Company has
already been awarded business of seat sets for the next models of
Maruti Suzuki India Limited (MSIL), the production of which starts in
April, 2015 and January, 2016.
During the year under review, your Company has manufactured and
supplied extruded components for the prestigious top selling models of
MSIL. Your Company has localized the raw materials used in the
manufacture of extruded components. This has resulted in lower
inventories, reduced dependence on imports and control on foreign
currency fluctuations.
As regards the two wheeler business, your Company supplied Two wheeler
seats and Sheet Metal fabricated parts for new models of Scooters and
motorcycles to Suzuki Motorcycle India Private Limited.
Your Company also received further orders for their forthcoming models.
DIVIDEND
Your Directors are pleased to recommend for the approval of the
shareholders, a dividend of 45% (Re 0.90/- per share) for the financial
year ended 31.03.2015.
AWARDS AND RECOGNITION
Your company has received Recognition Award for Superior Performance in
the field of Design and Development for the year 2014-15 at Annual
Vendor Conference of MSIL.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
REFERRED TO IN SUB SECTION (1) OF SECTION 188 OF THE COMPANIES ACT,
2013
All the related party transactions are repetitive in nature and are
entered on arm''s length basis and are in compliance with the applicable
provisions of the Act and the Listing Agreement.
All Related party transactions are presented to the Audit Committee and
the Board, on a quarterly basis. Omnibus approval is obtained for all
the related party transactions.
The Related Party Transactions Policy as approved by the Board is
uploaded on the Company''s website at the web link:
http://www.bharatseats.com/investors / Policy on Related Party
Transactions
The information relating to particulars of contracts or arrangements
with related parties referred to in sub section (1) of section 188 of
the Companies Act, 2013 in Form AOC-2 is annexed as Annexure I, forming
part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to conservation of energy, technology
absorption, foreign exchange earnings and outgo pursuant to Section
134(3) (m) of the Companies Act, 2013 read with Rule 8(3) of Companies
(Accounts) Rules, 2014 is annexed hereto as Annexure II, forming part
of this Report.
STATEMENT OF FORMAL ANNUAL EVALUATION BY THE BOARD OF ITS OWN
PERFORMANCE AND OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS
In compliance with the Companies Act, 2013 and Clause 49 of the Listing
Agreement, during the year, the Nomination and Remuneration Committee
laid down the evaluation criteria for performance evaluation of all the
directors.
The evaluation of Independent Directors was carried out by the entire
Board and that of the Chairman and non- independent Directors, by the
independent Directors. This exercise was carried out through
structured evaluation process covering various aspects of the Board
such as composition of the Board/ Committees, experience, competencies,
performance of specific duties etc. Separate exercise was carried out
to evaluate the performance of individual directors, including Board
Chairman who were evaluated on the parameters such as attendance,
contribution at the meeting, independent judgment etc. and was found to
be satisfactory.
DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL WHO WERE APPOINTED OR
HAVE RESIGNED DURING THE YEAR
I. RETIREMENT BY ROTATION
In accordance with the Articles of Association of the Company and
relevant provisions of the Companies Act, 2013, Mr. Yoichi Kojima (DIN:
02973263) and Mr. I.V Rao (DIN:00329370) are liable to retire by
rotation at the ensuing Annual General Meeting and being eligible,
offer themselves for reappointment. The Board recommends their
re-appointment.
II. APPOINTMENT
The following Directors were appointed during the year:
* Mrs. Shyamla Khera (DIN: 06929439), was appointed as an Independent
Director w.e.f. 21.07.2014, for a period of five years.
* Mr. Arvind Varma (DIN: 02225281) was appointed as an Independent
Director w.e.f. 21.10.2014 for a period of five years.
* Mr. T. J. Chacko (DIN: 07005026) was appointed as Director
(Operations) w.e.f. 01.12.2014 for a period of three years.
III. CESSATION
During the year, Mr. Gautam Khaitan, Director resigned w.e.f.
20.05.2014. The Board placed on record its appreciation for the
valuable services rendered by Mr. Gautam Khaitan.
IV. KEY MANAGERIAL PERSONNEL (KMP)
During the year, Mr. Rohit Relan, Managing Director, and Mr. T. J.
Chacko, appointed as Director (Operations) were designated as KMP
In addition to above, Mr. Sanjeev Kumar, CFO and Ms. Ritu Bakshi,
Company Secretary were designated as KMP
COMPANIES WHICH BECAME OR CEASED TO TO BE ITS SUBSIDIARIES, JOINT
VENTURES OR ASSOCIATE COMPANIES
Toyo Sharda India Pvt. Ltd. is a newly incorporated Associate Company.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the listing agreement with the Stock Exchange,
the report on Corporate Governance and Management Discussion and
Analysis Report have been included in this Annual Report as separate
section, along with the Auditors'' Certificate.
DETAILS OF DEPOSIT AS PROVIDED UNDER CHAPTER V OF THE COMPANIES ACT,
2013
(a) Accepted during the year
Your Company has not accepted any deposits within the meaning of
Section 2(31), read with section 73 of the Companies Act, 2013 and as
such, no amount of principal or interest was outstanding as on the date
of the Balance Sheet.
(b) Remaining unpaid or unclaimed as at the end of the year : None
(c) Whether there has been any default in repayment of deposits or
payment of interest thereon during the year : None
(d) Details of deposit which are not in compliance with the requirement
of Chapter V of the Act : None
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGISTRARS OR
COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S
OPERATION IN FUTURE
None
DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO
THE FINANCIAL STATEMENTS
A strong internal control culture is prevalent in the Company. A
formalised system of internal controls facilitates effective compliance
with Clause 49 of the Listing Agreement. The Internal Auditor monitors
the compliance with the objective of providing to the Audit Committee
and the Board of Directors an independent and reasonable assurance on
the adequacy and effectiveness of the organisation''s governance
processes.
LISTING
The Equity shares of the Company are listed at Bombay Stock Exchange.
The Company has paid listing fees to the Stock Exchange for the year:
2014-2015.
CSR REPORT
The Corporate Social Responsibility Report as provided in Companies
(Corporate Social Responsibility Policy) Rules, 2014 is as per Annexure
III attached.
EXTRACT OF ANNUAL RETURN
Extract of Annual return as provided under sub section (3) of Section
92 of the Companies Act, 2013 is as per Annexure IV attached.
NUMBER OF MEETINGS OF THE BOARD
Forms part of Corporate Governance Report
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Companies Act, 2013, the
Directors confirm that :
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed and no material departures have
been made from the same.
(b) Appropriate accounting policies have been selected and applied
consistently and judgments and estimates made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at 31st March, 2015 and of the Profit or Loss of the
Company for the year ending 31st March, 2015;
(c) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013 , for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
(d) The annual accounts have been prepared on a going concern basis.
(e) Internal financial controls to be followed by the Company have been
laid down and that such internal financial controls are adequate and
were operating effectively.
(f) Proper systems have been devised to ensure compliance with the
provisions of all applicable laws and that such systems are adequate
and operating effectively.
DISCLOSURE AS REQUIRED UNDER SUB RULE 2 OF RULE 5 OF
COMPANIES(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES,
2014
As per Annexure V
DISCLOSURE IN BOARD''S REPORT
Having regard to the provisions of the first proviso to section 136(1)
of the Act, the annual report, excluding the information as required
under section 197(12) of the Act read with Rule 5(1) of the Company
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, is
being to the sent to the members of the Company. The said information
is available at the website of the Company and is available for
inspection at the registered office of the company during working hours
and any member interested in obtaining such information may write to be
Company Secretary and the same will be furnished on request.
STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SUB
SECTION 6 OF SECTION 149
Received from all Independent Directors.
COMPANY''S POLICY ON DIRECTORS'' APPOINTMENT AND REMUNERATION INCLUDING
CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES,
INDEPENDENCE OF A DIRECTOR AND OTHER MATTERS AS PROVIDED UNDER SUB
SECTION(3) OF SECTION 178 OF THE COMPANIES ACT, 2013
The Company has formulated a Nomination And Remuneration Policy as per
Annexure VI. Details are provided in Corporate governance Report.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186.
None
STATEMENT INDICATING DEVELOPMENT AND IMPLEMENTATION OF A RISK
MANAGEMENT POLICY FOR THE COMPANY INCLUDING IDENTIFICATION THEREIN OF
ELEMENTS OF RISK, IF ANY, WHICH IN THE OPINION OF THE BOARD MAY
THREATEN THE EXISTENCE OF THE COMPANY
1. In line with the new regulatory requirements, the Company has
formally framed a Risk Management Policy to identify and assess the key
risk areas and monitor the same.
The Board periodically reviews the risks and suggests steps to be taken
to control the risks.
2. WHISTLE BLOWER POLICY
A fair and Transparent work culture has been core to the Company. To
meet this objective, the Company had laid down the Whistle Blower
Policy. The Board Approved the Whistle Blower Policy on 21st July,
2014.
HUMAN RESOURCES
Our relations with the employees are very cordial. Your Directors would
like to place on record their appreciation of the commitment and
efficient services rendered by all employees of the Company, without
whose wholehearted efforts, the overall satisfactory performance of the
Company would not have been possible.
AUDITORS AND AUDITORS'' REPORT Statutory Auditors
M/s S.S. Kothari Mehta & Co., Chartered Accountants, Statutory Auditors
of the Company, hold office till the conclusion of the ensuing Annual
General Meeting and are eligible for re-appointment, if made, would be
within the prescribed limits under the Act and that they are not
disqualified for re-appointment.
The Notes on financial statement referred to in the Auditors'' Report
are self-explanatory and do not call for any further comments. The
Auditors'' Report does not contain any qualification, reservation or
adverse remark.
Secretarial Auditor
The Board had appointed Ms. Nidhi Chawla, Practising Company Secretary,
to conduct Secretarial Audit for the financial year 2014-15. The
Secretarial Audit Report for the financial year ended March 31, 2015 is
annexed herewith marked as Annexure VII to this Report. The
Secretarial Audit Report does not contain any qualification,
reservation or adverse remark.
ENVIRONMENT
The Company is committed to the protection of environment and is not
involved in any type of activity hazardous to environment. It strictly
adheres to the provisions of environmental laws. There is no trade
effluent generated by the Company, which may cause pollution. Our
Company is an ISO14001 certified company.
DISCLOSURE AS REQUIRED UNDER SECTION 22 OF SEXUAL HARASSMENT OF WOMEN
AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has in place an Anti Sexual Harassment Policy in line with
the requirement of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013.
The following is the summary of the complaints received and disposed
off during the financial year: 2014-2015:
a) No. of complaints received: NIL
b) No. of complaints disposed off: NIL
ACKNOWLEDGEMENTS
The Directors place on record their deep appreciation of the valuable
assistance and co-operation extended to the Company by Suzuki Motor
Corporation, Japan, Maruti Suzuki India Ltd., Suzuki Motorcycle India
Private Limited, Toyo Seat Co. Ltd., Japan, Houwa Kogyo Co Ltd, Japan,
Inoac Corporation, Japan, State Bank of Travancore, Bank of
Tokyo-Mitsubishi UFJ Ltd., Yes Bank Ltd., IDBI Bank Ltd., various
departments of Central Government and Haryana State Government. The
directors convey their deep appreciation to employees at all levels for
their commitment and collective team work.
Your support as shareholders is greatly valued .
Your Directors thank you and look forward to the future with
confidence.
For and on behalf of the Board
BHARAT SEATS LIMITED
PLACE : New Delhi (N. D. RELAN)
DATED : 15th April, 2015 CHAIRMAN
Mar 31, 2014
Dear Shareholders
The Directors have pleasure in presenting the 27th Annual Report
together with the Audited Accounts for the year ended 31st March, 2014
FINANCIAL RESULTS Rupees in lakhs
PARTICULARS 2013-2014 2012-2013
NET REVENUE FROM OPERATIONS 56003.83 60216.44
OTHER INCOME 24.05 127.86
PROFIT BEFORE FINANCIAL CHARGES & DEPRECIATION 2878.36 2482.48
LESS: FINANCE COSTS 625.84 647.18
PROFIT BEFORE DEPRECIATION & TAXATION 2252.52 1835.30
LESS:
A) DEPRECIATION 1352.14 1133.39
B) PROVISION FOR TAXATION
- CURRENT TAX(NET OF MAT CREDIT ENTITLEMENT) 37.05 -
- TAXES PAID FOR EARLIER YEARS 1.85 -
- DEFERRED TAX 190.72 166.89
NET PROFIT AFTER TAX 670.76 535.02
ADD: BROUGHT FORWARD FROM PREVIOUS YEAR 50.00 50.00
PROFIT AVAILABLE FOR APPROPRIATION 720.76 585.02
APPROPRIATIONS:
PROPOSED DIVIDEND 251.20 251.20
CORPORATE DIVIDEND TAX 42.69 42.69
TRANSFER TO GENERAL RESERVE 376.87 241.13
BALANCE CARRIED FORWARD TO BALANCE SHEET 50.00 50.00
PERFORMANCE REVIEW
The gross revenue from operations and other income for the fnancial
year under review was Rs. 63,199.95 lacs as against Rs 68,294.40 lacs
for the previous fnancial year. The proft before fnance costs,
depreciation and taxation is Rs. 2878.36 lacs for the fnancial year
under review as against Rs 2482.48 lacs for the previous fnancial year,
i.e. an increase by 16%. The proft after tax increased to Rs. 670.76
lacs, as compared to Rs.535.02 lacs for the previous fnancial year,
i.e. an increase by 25%. This is mainly due to better utilization of
capital expenditure and other cost saving measures taken by the
Company.
OPERATIONS
Your Company is well on the way to growth. Your Company has already
been awarded business of seat sets for the next domestic as well as
export model of Maruti Suzuki India Limited (MSIL), the production of
which will start in 2014 and 2015 at the Company''s new plant at Manesar
and Gurgaon.
Your Company is presently manufacturing and supplying extruded
components for the prestigious top selling models of MSIL. It has
received further orders for extruded components of MSIL''s new models,
the production of which shall start in 2015-2016 at the Borakalan
Plant.
As regards the two wheeler business, your Company has been awarded the
order from Suzuki Motorcycle India Ltd. for the Seats and frames of the
new model of Motorcycle, the production of which will commence in 2014
at its Gurgaon and Bhorakalan plant respectively.
EXPANSION AND FUTURE PROSPECTS
You would be happy to know that your Company has been awarded the
business for manufacture of Recliner for ''Ertiga'' model and ''Lifter''
for various models, from MSIL. For this purpose, your company is
entering into a Joint venture with Toyo Seat Co. Ltd., Japan.
DIVIDEND
Your Directors are pleased to recommend for the approval of the
shareholders, a dividend of 40% (Re. 0.80/- per share) for the fnancial
year ended 31.03.2014.
CONSERVATION OF ENERGY, RESEARCH & DEVELOPMENT, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to conservation of energy, research &
development, technology absorption, foreign exchange earnings and outgo
pursuant to Section 217(1)(e) of the Companies Act, 1956 read with
Companies(Disclosure of particulars in the report of Board of
Directors)Rules, 1988 is annexed hereto as Annexure I, forming part of
this Report.
DIRECTORS
In accordance with the Articles of Association of the Company and
relevant provisions of the Companies Act, 2013, Mr. N. D. Relan and Mr.
Ajay Relan are liable to retire by rotation at the ensuing Annual
General Meeting and being eligible, offer themselves for reappointment.
Pursuant to Section 149 and other applicable provisions of the
Companies Act, 2013, your Directors are seeking appointment of Mr.
Girish Narain Mehra, Mr. Prateep Kumar Lahiri, Mr. Ravindra Gupta and
Mr. Kishan Nagin Parikh as Independent Directors for a term upto 31st
March, 2019. Details of the proposal for appointment of abovesaid
directors are mentioned in the Explanatory Statement under Section 102
of the Companies Act, 2013 of the Notice of the Twenty Seventh Annual
General Meeting
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the listing agreement with the Stock Exchange,
the report on Corporate Governance and Management Discussion and
Analysis Report have been included in this Annual Report as separate
section, alongwith the Auditors'' Certifcate.
FIXED DEPOSITS
Your Company has not accepted any deposits within the meaning of
Section 58A of the Companies Act, 1956, or Section 2(31), read with
section 73 of the Companies Act, 2013 and as such, no amount of
principal or interest was outstanding as on the date of the Balance
Sheet.
LISTING
The Equity shares of the Company are listed at Bombay Stock Exchange.
The Company has paid listing fees to the Stock Exchange for the year:
2014-15.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
confrm that :
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed and no material departures have
been made from the same.
(b) Appropriate accounting policies have been selected and applied
consistently and judgments and estimates made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at 31st March, 2014 and of the proft or loss of the Company
for the year ending 31st March, 2014;
(c) Proper and suffcient care has been taken 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;
(d) The annual accounts have been prepared on a going concern basis.
HUMAN RESOURCES
Our relations with the employees are very cordial. Your Directors would
like to place on record their appreciation of the effcient and loyal
services rendered by all employees of the Company, without whose
wholehearted efforts, the overall satisfactory performance of the
Company would not have been possible.
PARTICULARS OF EMPLOYEES
As required under the provisions of Section 217(2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees)Rules,
1975, the particulars of employees are set out in Annexure II.
AUDITORS
M/s S.S.Kothari Mehta & Co., Chartered Accountants retire at the Annual
General Meeting and being eligible offer themselves for reappointment,
which if made, will be in conformity with the provisions of Section 139
of the Companies Act, 2013.
COST AUDITORS
As per Section 233B of the Companies Act, 1956 and the MCA General
Circular dt. 11th April 2011, (as amended vide General Circular
No.36/2012 dated 6th Nov., 2012), subject to the approval of Central
Government, the Board approved the appointment of Mr. S.N.
Balasubramanian, Cost Accountant, New Delhi (Regn. no.102023) being
eligible and having sought re-appointment as Cost Auditor under Section
148 of the Companies Act 2013 , to carry out the Cost Audit of the
products manufactured by the Company for the year ending 31st March,
2015.
ENVIRONMENT
The Company is committed to the protection of environment and is not
involved in any type of activity hazardous to environment. The Company
strictly adheres to the provisions of environmental laws. There is no
trade effuent generated by the Company, which may cause pollution. Our
Company is an ISO14001 certifed company.
The ISO14001 Certifcation was renewed during the year.
ACKNOWLEDGEMENTS
The Directors place on record their deep appreciation of the valuable
assistance and co-operation extended to the Company by Suzuki Motor
Corporation, Japan, Maruti Suzuki India Ltd., Suzuki Motorcycle India
Limited, Toyo Seat Co.Ltd., Japan, Houwa Kogyo Co Ltd , Japan, Inoac
Corporation, Japan, State Bank of Travancore, Bank of Tokyo- Mitsubishi
UFJ Ltd., Yes Bank Ltd., IDBI Bank Ltd., various departments of Central
Government and Haryana State Government. The directors convey their
deep appreciation to employees at all levels for their commitment and
collective team work.
Your support as shareholders is greatly valued .
Your Directors thank you and look forward to the future with confdence.
For and on behalf of the Board
BHARAT SEATS LIMITED
PLACE : New Delhi (N. D. RELAN)
DATED : 16th April, 2014 CHAIRMAN
Mar 31, 2013
Dear Shareholders
The Directors have pleasure in presenting the 26th Annual Report
together with the Audited Accounts for the year ended 31st March, 2013
FINANCIAL RESULTS
Rupees in lakhs
PARTICULARS 2012-2013 2011-2012
NET REVENUE FROM OPERATIONS 60216.44 43205.01
OTHER INCOME 127.86 56.12
PROFIT BEFORE FINANCIAL
CHARGES & DEPRECIATION 2482.48 1730.18
LESS: FINANCE COSTS 647.18 334.84
PROFIT BEFORE DEPRECIATION
& TAXATION 1835.30 1395.34
LESS:
A) DEPRECIATION 1133.39 671.19
B) PROVISION FOR TAXATION
- CURRENT TAX(NET OF MAT
CREDIT ENTITLEMENT) 32.77
- DEFERRED TAX 166.89 122.93
NET PROFIT AFTER TAX 535.02 568.45
ADD: BROUGHT FORWARD FROM
PREVIOUS YEAR 50.00 50.00
PROFIT AVAILABLE FOR
APPROPRIATION 585.02 618.45
APPROPRIATIONS:
PROPOSED DIVIDEND 251.20 251.20
CORPORATE DIVIDEND TAX 42.69 40.75
TRANSFER TO GENERAL RESERVE 241.13 276.50
BALANCE CARRIED FORWARD
TO BALANCE SHEET 50.00 50.00
PERFORMANCE REVIEW
During the year under review, the sales volume of 4 wheeler seat sets
increased to 492384 seat sets, as compared to 466887 seat sets in the
year ended 31st March, 2012, i.e. an increase by 5%.
The gross revenue from operations and other income for the fi nancial
year under review was Rs. 68,294.40 lacs as against Rs 47,982.63 lacs
for the previous fi nancial year, i.e. an increase by 42.33%. The profi
t before fi nance costs, depreciation and taxation is Rs. 2482.48 lacs
for the fi nancial year under review as against Rs. 1730.18 lacs for
the previous fi nancial year, i.e. an increase by 43.48%. The profi t
after tax squeezed by 5.88%, to Rs. 535.02 lacs as compared to Rs.
568.45 lacs, last year. This decline is mainly due to heavy investment
for capacity expansion at BSL''s plant at Gurgaon and set up of new
plants at Borakalan and Manesar, which has led to increase in bank
borrowings and consequently, increase in interest cost and
depreciation.
OPERATIONS
Your Company is well on the way to future growth. With the
establishment of the new seat plant at Manesar in the Maruti Suzuki
Vendor park, we have already been awarded business for the top selling
model of Maruti Suzuki India Ltd. (MSIL) Â ''Swift'', the production of
which will start this year.
You would be happy to know that at Manesar, we have been awarded the
business of seat sets for next model of MSIL, the production of which
will start in 2014.
Your Company has always been very quality conscious. To further upgrade
the quality norms, your Company has set up a robotic welding facility
for the seat frames, thereby ensuring the highest safety standards in
the Car Seat.
Your Company has started manufacture and supply of extruded components
for the prestigious top selling models of MSIL. Your Company has also
been awarded the Roof Moulding for the various top selling models of
MSIL, the production of which will commence during 2013-2014.
As regards the two wheeler business, your Company has been awarded the
order from Suzuki Motor Cycle India Pvt. Ltd. for the Seating system
for the new model of Scooter, the production of which will commence in
2014.
EXPANSION AND FUTURE PROSPECTS
Your company has completed the building construction work at the newly
acquired Land in the Vendor Park of Maruti Suzuki India Ltd, Manesar to
house complete seat manufacturing plant. The production in this plant
for seats sets of ''Swift'' model shall commence in 2013.
DIVIDEND
Your Directors are pleased to recommend for the approval of the
shareholders, a dividend of 40% (Re. 0.80/- per share) for the fi
nancial year ended 31st March, 2013.
CONSERVATION OF ENERGY, RESEARCH & DEVELOPMENT, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to conservation of energy, research &
development, technology absorption, foreign exchange earnings and outgo
pursuant to Section 217(1)(e) of the Companies Act, 1956 read with
Companies(Disclosure of particulars in the report of Board of
Directors)Rules, 1988 is annexed hereto as Annexure I, forming part of
this Report.
DIRECTORS
In accordance with the Articles of Association of the Company and
relevant provisions of the Companies Act, 1956, Mr. G. N. Mehra, Mr. P.
K. Lahiri and Mr. Gautam Khaitan are liable to retire by rotation at
the ensuing Annual General Meeting and being eligible, offer themselves
for reappointment.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the listing agreement with the Stock Exchange,
the report on Corporate Governance and Management Discussion and
Analysis Report have been included in this Annual Report as separate
section, alongwith the Auditors'' Certifi cate.
FIXED DEPOSITS
Your Company has not accepted any deposits within the meaning of
Section 58A of the Companies Act, 1956 and as such, no amount of
principal or interest was outstanding as on the date of the Balance
Sheet.
LISTING
The Equity shares of the Company are listed at Bombay Stock Exchange.
The Company has paid listing fees to the Stock Exchange for the year:
2013-14.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
confi rm that :
(I) In the preparation of the annual accounts, the applicable
accounting standards have been followed and no material departures have
been made from the same.
II) Appropriate accounting policies have been selected and applied
consistently and judgments and estimates made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at 31st March, 2013 and of the profi t or loss of the
Company for the year ending 31st March, 2013;
(III) Proper and suffi cient care has been taken 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;
(IV) The annual accounts have been prepared on a going concern basis.
HUMAN RESOURCES
Our relations with the employees are very cordial. Your Directors would
like to place on record their appreciation of the effi cient and loyal
services rendered by all employees of the Company, without whose
wholehearted efforts, the overall satisfactory performance of the
Company would not have been possible.
PARTICULARS OF EMPLOYEES
As required under the provisions of Section 217(2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees)Rules,
1975, the particulars of employees are set out in Annexure II.
AUDITORS
M/s S.S. Kothari Mehta & Co., Chartered Accountants retire at the
Annual General Meeting and being eligible offer themselves for
reappointment, which if made, will be in conformity with the provisions
of Section 224(1B) of the Companies Act, 1956.
ENVIRONMENT
The Company is not involved in any type of activity hazardous to
environment. The Company strictly adheres to the provisions of
environmental laws. There is no trade effl uent generated by the
Company, which may cause pollution. Our Company is an ISO14001 certifi
ed company.
The ISO14001 Certifi cation was renewed during the year.
ACKNOWLEDGEMENTS
The Directors place on record their deep appreciation of the valuable
assistance and co-operation extended to the Company by Suzuki Motor
Corporation, Japan, Maruti Suzuki India Ltd., Suzuki Motor Cycle India
Private Limited, Toyo Seats, Japan, Houwa Kogyo Co Ltd , Nagoya, Japan,
, Inoac Corporation, Japan, Esaki Seisakusyo, Japan, State Bank of
Travancore, Bank of Tokyo- Mitsubishi UFJ Ltd., Yes Bank, IDBI Bank
Ltd., various departments of Central Government and Haryana State
Government. The directors convey their deep appreciation to employees
at all levels for their commitment and collective team work.
Your support as shareholders is greatly valued.
Your Directors thank you and look forward to the future with confi
dence.
For and on behalf of the Board
BHARAT SEATS LIMITED
PLACE : New Delhi (N. D. RELAN)
DATED : 25th April, 2013 CHAIRMAN
Mar 31, 2012
The Directors have pleasure in presenting the 25th Annual Report
together with the Audited Accounts for the year ended 31st March, 2012
FINANCIAL RESULTS Rupees in lakhs
PARTICULARS 2011-20121 2010-20l1
NET REVENUE FROM OPERATIONS 43205.01 44158.58
OTHER INCOME 56.12 85.21
PROFIT BEFORE F NANCIAL CHARGES
& DEPRECIATION 1730.18 1851.79
LESS: FINANCE COSTS 334.84 227.05
PROFIT BEFORE DEPRECIATION &
TAXATION 1395.34 1624.74
LESS:
A) DEPRECIATION 671.19 480.98
B) PROVISION FOR TAXATION
- CURRENT TAX(NET OF MAT
CREDIT ENTITLEMENT) 32.77 171.27
- DEFERRED TAX 122.93 149.08
NET PROFIT AFTER TAX 568.45 823.41
ADD:BROUGHT FORWARD FROM
PREVIOUS YEAR 50.00 50.00
PROFIT AVAILABLE FOR
APPROPRIATION 618.45 873.41
APPROPRIATIONS:
PROPOSED DIVIDEND 251.20 251.20
CORPORATE DIVIDEND TAX 40.75 40.75
TRANSFER TO GENERAL RESERVE 276.50 531.46
BALANCE CARRIED FORWARD TO
BALANCE SHEET 50.00 50.00
PERFORMANCE REVIEW
During the year under review, the sale of 4 wheeler seat sets declined
to 466887 seat sets, as compared to 524068 seat sets in the year ended
31st March, 2011, i.e. a decline by 11%.
The gross revenue from operations and other income for the financial
year under review was Rs. 47,982.63 lacs as against Rs. 49,037.58 lacs
for the previous financial year, i.e. a decline by 2.15%. The profit
before finance costs, depreciation and taxation is Rs.1395.34 lacs for
the financial year under review as against Rs. 1624.74 lacs for the
previous financial year, showing decline by 14%. The profit after tax
squeezed by 31%, to Rs. 568.45 lacs as compared to Rs. 823.41 lacs,
last year. Besides decline in production, this decrease is due to heavy
investment for capacity expansion at BSL's plant at Gurgaon and set up
of new plants at Bhorakalan and Manesar, which has led to increase in
bank borrowings and consequently, increase in interest cost and
depreciation.
OPERATIONS
Your Company has been awarded business of Seat sets for first 3 row
seat LUV(Life Utility Vehicle) Ertiga, launched by Maruti Suzuki India
Ltd. (MSIL). For this purpose, a new Assembly line, based on Japanese
model, was indigenously designed by your Company.
Your company was all so awarded business of Moulded Carpet for new model
of 'Swift Dozier' launched by MSIL during the year.
Your company was awarded the business for manufacture of complete
frames of the new model of two Wheeler for Suzuki Motorcycle India Pvt.
Ltd. (SMIPL). The Robotic technology used in welding lines has resulted
in very high accuracy and good efficiency in the manufacturing of these
frames.
Your company's production of Scooter seats, the highest selling model
of SMIPL, has almost doubled in the current fiscal, resulting in
overall increase in sales turnover.
EXPANSION AND FUTURE PROSPECTS
Your Company, considering the growth in the Automobile Sector, has
planned its capacity expansion, to cater to the increased demand.
Your company has acquired Land in the Vendor Park of Maruti Suzuki
India Ltd, Manesar and has started construction of the building to
house a complete Seat manufacturing plant.
Your Company has entered into another area of manufacture of Extruded
components for automobiles, the commercial production of which shall
commence shortly at Company's plant at Bhorakalan.
To meet the complete requirement of SMIPL, a new site at Bhorakalan is
constructed for manufacture of two wheeler frames assembly.
DIVIDEND
Your Directors are pleased to recommend for the approval of the
shareholders, a dividend of 40% (Re. 0.80/- per share) for the
financial year ended 31.03.2012,
CONSERVATION OF ENERGY, RESEARCH & DEVELOPMENT, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to conservation of energy, research &
development, technology absorption, foreign exchange earnings and outgo
pursuant to Section 217(1)(e) of the Companies Act, 1956 read with
Companies (Disclosure of particulars in the report of Board of
Directors)Rules, 1988 is annexed hereto as Annexure I, forming part of
this Report.
DIRECTORS
In accordance with the Articles of Association of the Company and
relevant provisions of the Companies Act, 1956, Mr. Ajay Relan, Mr.
I.V. Rao and Mr. Yoichi Kojima are liable to retire by rotation at the
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the listing agreement with the Stock Exchange,
the report on Corporate Governance and Management Discussion and
Analysis Report have been included in this Annual Report as separate
section, along with the Auditors' Certificate.
FIXED DEPOSITS
Your Company has not accepted any deposits within the meaning of
Section 58Aof the Companies Act, 1956 and as such, no amount of
principal or interest was outstanding as on the date of the Balance
Sheet.
LISTING
The Equity shares of the Company are listed at Bombay Stock Exchange.
The Company has paid listing fees to the Stock Exchange for the year:
2012-13.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
confirm that:
(I) In the preparation of the annual accounts, the applicable
accounting standards have been followed and no material departures have
been made from the same.
(II) Appropriate accounting policies have been selected and applied
consistently and judgments and estimates made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at 31st March, 2012 and of the profit or loss of the
Company for the year ending 31st March, 2012;
(III) Proper and sufficient care has been taken 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;
(IV) The annual accounts have been prepared on a going concern basis.
HUMAN RESOURCES
Our relations with the employees are very cordial. Your Directors would
like to place on record their appreciation of the efficient and loyal
services rendered by all employees of the Company, without whose
wholehearted efforts, the overall satisfactory performance of the
Company would not have been possible.
PARTICULARS OF EMPLOYEES
As required under the provisions of Section 217(2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees)Rules,
1975, the particulars of employees are set out in Annexure II.
AUDITORS
M/s S.S. Kothari Mohta & Co., Chartered Accountants retire at the
Annual General Meeting and being eligible offer themselves (tor
reappointment, which if made, will be in conformity with the provisions
of Section 224(1 B) of the Companies Act, 1956.
ENVIRONMENT
The Company is not involved in any type of activity hazardous to
environment. The Company strictly adheres to the provisions of
environmental laws. There is no trade effluent generated by the
Company, which may cause pollution. Our Company is an IS014001
certified company.
The IS014001 Certification was renewed during the year.
ACKNOWLEDGEMENTS
The Directors place on record their deep appreciation of the valuable
assistance and co-operation extended to the Company by Suzuki Motor
Corporation, Japan, Maruti Suzuki India Ltd., Toyo Seats, Japan, Houwa
Kogyo Co Ltd, Nagoya, Japan, Inoac Corporation, Japan, Esaki
Seisakusyo, Japan, State Bank of Travancore, Bank of Tokyo- Mitsubishi
UFJ Ltd., Yes Bank, IDBI Bank Ltd., various departments of Central
Government and Haryana State Government. The directors convey their
deep appreciation to employees at all levels for their commitment and
col active team work.
Your support as shareholders is greatly valued.
Your Directors thank you and look forward to the future with
confidence.
For and on behalf of the Board
BHARAT SEATS LIMITED
PLACE : NEW DELHI (N.D.RELAN)
DATED : 30th APRIL 2012 CHAIRMAN
Mar 31, 2011
FINANCIAL RESULTS Rupees in lakhs
PARTICULARS 2010-11 2009-10
SALES 48,903.39 36,763.72
OTHER INCOME 134.19 123.92
PROFIT BEFORE FINANCIAL CHARGES &
DEPRECIATION 1,848.62 900.69
LESS: FINANCIAL CHARGES 223.89 112.73
PROFIT BEFORE DEPRECIATION & TAXATION 1,624.73 787.96
LESS:
A) DEPRECIATION 480.98 268.03
B) PROVISION FOR TAXATION
à CURRENT TAX(LESS: MAT CREDIT ENTITLEMENT) 171.26 11.62
à DEFERRED TAX 149.08 148.97
à TAX FOR EARLIER YEARS WRITTEN
OFF/(WRITTEN BACK) Ã (24.63)
NET PROFIT AFTER TAX 823.41 383.97
ADD: BROUGHT FORWARD FROM PREVIOUS YEAR 50.00 50.00
PROFIT AVAILABLE FOR APPROPRIATION 873.41 433.97
APPROPRIATIONS:
PROPOSED DIVIDEND 251.20 188.40
CORPORATE DIVIDEND TAX 40.75 31.29
TRANSFER TO GENERAL RESERVE 531.46 164.28
BALANCE CARRIED FORWARD TO BALANCE SHEET 50.00 50.00
PERFORMANCE REVIEW
The gross sales and other income for the financial year under review
was Rs. 49,037.58 lacs as against Rs 36,887.64 lacs, registering an
increase of 32.93%.The profit before tax (after interest and
depreciation charges) of Rs.1,143.75 lacs and profit after tax of Rs.
823.41 lacs for the financial year under review as against Rs 519.93
lacs and Rs 383.97 lacs respectively for the previous financial year
registering an increase of 120% and 114.45 % respectively.
OPERATIONS
During the year under review, the sale of seat sets surged on robust
demand. Additional PU Line for making Head Rest Pads was established
during the year, which helped the Company in meeting additional demand.
An additional assembly line for making car seats was laid for supplying
modified Wagon-R model of Maruti Suzuki India Limited.
Your company started manufacturing Polyurethane Pads with its newly
developed technology called "Dual Hardness". This is to bring in more
comfort in the seating system.
Due to the flexible production systems, Your company could accommodate
the changes in the product mix required by the customers. Your company
has developed and started manufacturing of the seating system for the
new model of car for Maruti Suzuki India Ltd.
An additional assembly system for Two wheeler seats was installed
during the year under review to cater to increased demand. Your company
started a new product range involving technology of swaging and boring
for the frames used in two wheeler manufacturing. These are from high
accuracy machines to cater to the increased quality demand of the
customer. This should cater to the demand of various frames for Suzuki
Motorcycle India Pvt. Ltd.
EXPANSION AND FUTURE PROSPECTS
Your Company, considering the growth in the Automobile sector, has
planned its capacity expansion, to cater to the increased demand.
Your Company is entering into another area of manufacture of extruded
components for Maruti range of vehicles. For this purpose, your
Company has entered into an Agreement with INOAC of Japan and has
started setting up the facility at its plant at Bohrakalan. The
production will commence in the ensuing financial year.
DIVIDEND
Your Directors are pleased to recommend for the approval of the
shareholders, a dividend of 40% (Re.0.80/- per share) for the financial
year ended 31.03.2011.
CONSERVATION OF ENERGY, RESEARCH & DEVELOPMENT, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to conservation of energy, research &
development, technology absorption, foreign exchange earnings and outgo
pursuant to Section 217(1)(e) of the Companies Act, 1956 read with
Companies(Disclosure of particulars in the report of Board of
Directors)Rules, 1988 is annexed hereto as Annexure I, forming part of
this Report.
DIRECTORS
In accordance with the Articles of Association of the Company and
relevant provisions of the Companies Act, 1956, Mr. N.D.Relan,
Mr.Ravindra Gupta and Mr. Kishan N.Parikh are liable to retire by
rotation at the ensuing Annual General Meeting and are eligible for
reappointment.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the listing agreement with the Stock Exchange,
the report on Corporate Governance and Management Discussion and
Analysis Report have been included in this Annual Report as separate
section, alongwith the Auditors Certificate.
FIXED DEPOSITS
Your Company has not accepted any deposits within the meaning of
Section 58A of the Companies Act, 1956 and as such, no amount of
principal or interest was outstanding as on the date of the Balance
Sheet.
LISTING
The Equity shares of the Company are listed at Bombay Stock Exchange.
The Company has paid listing fees to the Stock Exchange for the year:
2011-12.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
confirm that :
(I) In the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
(II) Appropriate accounting policies have been selected and applied
consistently and judgments and estimates made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at 31st March, 2011 and of the profit or loss of the
Company for the year ending 31st March, 2011;
(III) Proper and sufficient care has been taken 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;
(IV) The annual accounts have been prepared on a going concern basis.
HUMAN RESOURCES
Our relations with the employees are very cordial. Your Directors would
like to place on record their appreciation of the efficient and loyal
services rendered by all employees of the Company, without whose
wholehearted efforts, the overall satisfactory performance of the
Company would not have been possible.
PARTICULARS OF EMPLOYEES
As required under the provisions of Section 217(2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees)Rules,
1975, the particulars of employees are set out in Annexure II.
AUDITORS
M/s S.S.Kothari Mehta & Co., Chartered Accountants retire at the Annual
General Meeting and being eligible offer themselves for reappointment,
which if made, will be in conformity with the provisions of Section
224(1B) of the Companies Act, 1956.
ENVIRONMENT
The Company is not involved in any type of activity hazardous to
environment. The Company strictly adheres to the provisions of
environmental laws. There is no trade effluent generated by the
Company, which may cause pollution. Our Company is an ISO14001
certified company.
The ISO14001 Certification was renewed during the year.
ACKNOWLEDGEMENTS
The Directors place on record their deep appreciation of the valuable
assistance and co-operation extended to the Company by Suzuki Motor
Corporation, Japan, Maruti Suzuki India Ltd., Houwa Kogyo Co Ltd ,
Nagoya, Japan, State Bank of Travancore, Bank of Tokyo- Mitsubishi UFJ
Ltd., Yes Bank, IDBI Bank Ltd., various departments of Central
Government and Haryana State Government. The directors convey their
deep appreciation to employees at all levels for their commitment and
collective team work.
Your support as shareholders is greatly valued .
Your Directors thank you and look forward to the future with
confidence.
For and on behalf of the Board
BHARAT SEATS LIMITED
(N.D.RELAN)
CHAIRMAN
PLACE : NEW DELHI
DATED : 13TH APRIL, 2011
Mar 31, 2010
FINANCIAL RESULTS Rupees in lakhs
PARTICULARS 2009-2010 2008-09
SALES 36,763.72 24,940.73
OTHER INCOME 123.92 69.09
PROFIT BEFORE FINANCIAL CHARGES & DEPRECIATION 900.12 727.90
LESS: FINANCIAL CHARGES 112.73 91.37
PROFIT BEFORE DEPRECIATION & TAXATION 787.39 636.53
LESS:
A. DEPRECIATION 268.03 213.32
B. PROVISION FOR TAXATION
- CURRENT TAX (LESS : MAT CREDIT ENTITLEMENT) 11.05 47.02
- FRINGE BENEFIT TAX - 15.86
- DEFERRED TAX 148.97 77.51
- TAX FOR EARLIER YEARS WRITTEN
OFF/(WRITTEN BACK) (24.63) 6.87
NET PROFIT AFTER TAX 383.97 275.95
ADD: BROUGHT FORWARD FROM PREVIOUS YEAR 50.00 15.00
PROFIT AVAILABLE FOR APPROPRIATION 433.97 290.95
APPROPRIATIONS:
DIVIDEND PROPOSED 188.40 157.00
TAX ON DIVIDEND 31.29 26.68
TRANSFER TO GENERAL RESERVE 164.28 57.27
BALANCE CARRIED FORWARD TO BALANCE SHEET 50.00 50.00
PERFORMANCE REVIEW
The gross sales and other income for the financial year under review
was Rs. 36,887.64 lacs as against Rs. 25,009.82 lacs, registering an
increase of 47.50%.The profit before tax (after interest and
depreciation charges) of Rs. 519.36 lacs and profit after tax of Rs.
383.97 lacs for the financial year under review as against Rs. 423.20
lacs and Rs. 275.95 lacs respectively for the previous financial year
registering an increase of 22.72% and 39.14% respectively.
OPERATIONS
During the year under review, the sale of seat sets and carpets surged
on robust demand. The New PU Line, with additional capacity and faster
output established during the year helped the Company in meeting the
additional demand. Due to flexible production systems, the Company
could accommodate the changes in product mix required by the customers.
The company has developed seating systems and moulded carpets for a new
model of car launched by Maruti Suzuki India Limited and have started
its supply during financial year 2009-10. The Company has also started
production of Seats of a new model of car to be launched by Maruti
Suzuki India Limited during 2010-11.
The Company supply seats and complete frames of the new model of
Motorcycle launched by Suzuki Motorcycle India Pvt. Ltd. Your Company
has also added one more product in its two-wheeler frame product range,
the production of which shall commence in the next financial year.
The Company executed Development Order for Executive Chair Car of
Shatabdi Train for the Indian Railways.
DIVIDEND
Your Directors are pleased to recommend for the approval of the
shareholders, a dividend of 30% (Re. 0.60/- per share) for the
financial year ended 31.03.2010.
CONSERVATION OF ENERGY, RESEARCH & DEVELOPMENT, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to conservation of energy, research &
development, technology absorption, foreign exchange earnings and outgo
pursuant to Section 217(1)(e) of the Companies Act, 1956 read with
Companies (Disclosure of particulars in the report of Board of
Directors)Rules, 1988 is annexed hereto as Annexure I, forming part of
this Report.
DIRECTORS
In accordance with the Articles of Association of the Company and
relevant provisions of the Companies Act, 1956, Mr.G.N.Mehra,
Mr.P.K.Lahiri and Mr.Gautam Khaitan are liable to retire by rotation at
the ensuing Annual General Meeting and are eligible for reappointment.
During the year, Mr. Yoichi Kojima was appointed as an Additional
Director as nominee of Suzuki Motor Corporation in place of Mr.Toshiaki
Tashiro w.e.f. 15.03.2010.
The Company expresses its appreciation for the valuable services
rendered by Mr. Toshiaki Tashiro during his tenure as Director of
Bharat Seats Limited.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the listing agreement with the Stock Exchange,
the report on Corporate Governance and Management Discussion and
Analysis Report have been included in this Annual Report as separate
section, alongwith the Auditors Certificate.
LISTING
The Equity shares of the Company are listed at Bombay Stock Exchange.
The Company has paid listing fees to the Stock Exchange for the year:
2009-10.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
confirm that :
(I) In the preparation of the annual accounts, the applicable
accounting standards have been followed alongwith proper explanation
relating to material departures;
(II) Appropriate accounting policies have been selected and applied
consistently and judgments and estimates made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at 31st March, 2010 and of the profit or loss of the
Company for the year ending 31st March, 2010;
(III) Proper and sufficient care has been taken 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;
(IV) The annual accounts have been prepared on a going concern basis.
HUMAN RESOURCES
Our relations with the employees are very cordial. Your Directors would
like to place on record their appreciation of the efficient and loyal
services rendered by all employees of the Company, without whose
wholehearted efforts, the overall satisfactory performance of the
Company would not have been possible.
PARTICULARS OF EMPLOYEES
As required under the provisions of Section 217(2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees)Rules,
1975, the particulars of employees are set out in Annexure II.
AUDITORS
M/s S.S.Kothari Mehta & Co., Chartered Accountants retire at the Annual
General Meeting and being eligible offer themselves for reappointment,
which if made, will be in conformity with the provisions of Section
224(1 B) of the Companies Act, 1956.
ENVIRONMENT
The Company is not involved in any type of activity hazardous to
environment. The Company strictly adheres to the provisions of
environmental laws. There is no trade effluent generated by the
Company, which may cause pollution. Our Company is an ISO14001
certified company.
The ISO14001 Certification was renewed during the year.
ACKNOWLEDGEMENTS
The Directors place on record their deep appreciation of the valuable
assistance and co-operation extended to the Company by Suzuki Motor
Corporation, Japan, Maruti Suzuki India Ltd., Houwa Kogyo Co Ltd ,
Nagoya, Japan, State Bank of Travancore, Bank of Tokyo - Mitsubishi UFJ
Ltd., Yes Bank Ltd., IDBI Bank Ltd., various departments of Central
Government and Haryana State Government. The directors convey their
deep appreciation to employees at all levels for their commitment and
collective team work.
Your support as shareholders is greatly valued .
Your Directors thank you and look forward to the future with
confidence.
For and on behalf of the Board
BHARAT SEATS LIMITED
PLACE : NEW DELHI (N.D.RELAN)
DATED : 13TH APRIL, 2010 CHAIRMAN