Mar 31, 2018
The Board of Directors are pleased to present the Twelfth Annual Report together with the Audited Standalone and Consolidated Financial Statements for the financial year (FY) ended March 31, 2018
1. FINANCIAL RESULTS
(Rs. in million)
Consolidated |
Standalone |
|||
Particulars |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
Total Revenue from Operations |
4870.52 |
5504.76 |
217.08 |
278.60 |
Total Expenses |
4924.28 |
5531.25 |
237.85 |
306.76 |
Operating Profit/(Loss) |
(53.76) |
(26.49) |
(20.77) |
(28.16) |
Other Income |
7.81 |
25.72 |
6.21 |
409.25 |
Profit/(Loss) before Tax |
(45.95) |
(0.77) |
(14.56) |
381.09 |
Tax Expenses |
1.42 |
17.06 |
- |
- |
Reported Net Profit/(Loss) for the year |
(47.37) |
(17.83) |
(14.56) |
381.09 |
Other Comprehensive Income |
1.15 |
(3.86) |
(0.11) |
(0.01) |
Total Comprehensive Income for the year |
(46.22) |
(21.69) |
(14.67) |
381.08 |
Retained Earnings brought forward from previous year |
(758.1 1) |
(740.28) |
1413.19 |
1032.10 |
Retained Earnings to be carried forward |
(805.48) |
(758.1 1) |
1398.63 |
1413.19 |
Note : The consolidated revenue from operations (net of Excise Duty) during the FY 2017-18 stands at Rs. 4741 million against Rs. 5085 million in FY 2016-17
2. STATE OF COMPANYâS AFFAIRS & OPERATIONS
Jubilant Industries Limited (the Company) is a diversified Company engaged in manufacturing of Indian Made Foreign Liquor (IMFL), Agri Products and Performance Polymers. The Company manufactures IMFL at its manufacturing facility located at Nira in Maharashtra with a bottling capacity of 1,00,000 cases/month. The Companyâs wholly owned subsidiary, Jubilant Agri and Consumer Products Limited (JACPL) manufactures Agri Products comprising of Single Super Phosphate (SSP) and Performance Polymers at its manufacturing facilities situated at Gajraula & Sahibabad in Uttar Pradesh, Kapasan in Rajasthan and Savli in Gujarat. JACPL is the sole manufacturer of food grade Polyvinyl Acetate (PVAc) in India having state of the art manufacturing facility situated at Gajraula in Uttar Pradesh and also the dominant player in manufacturing of VP Latex having state of the art manufacturing facility situated at Savli in Gujarat.
The Companyâs brand âRambanâ in Agri Products and âJivanjorâ & âVamicolâ in Wood Adhesive are well known brands in their segments.
Financial Year 2017-18 has also experienced a major tax reform in India, Goods and Services Tax (âGSTâ) that had impacted domestic business of your Company. GST, being a major tax reform is expected to positively impact the economy in the long run while short-term disruptions were in line with the expectation.
Consolidated Financials
In FY 2017-18, the consolidated revenue from operations was Rs. 4870.52 million. EBITDA for the year stood at Rs. 304.34 million. Net loss after tax was Rs. 47.37 million and EPS on consolidated basis stood at Rs. (3.97).
Standalone Financials
In FY 2017-18, total revenue from operations was Rs. 21708 million. EBITDA for the year stood at Rs. (13.52) million, Net loss was Rs. 14.56 million and EPS on standalone basis stood at Rs. (1.22).
The Consolidated Financial Statements, prepared in accordance with the provisions of the Companies Act, 2013 (hereinafter referred as the Actâ), Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as the âSEBI Listing Regulations, 2015â) and Ind-AS 110 âConsolidated Financial Statementsâ prescribed under Section 133 of the Act, form part of the Annual Report.
3. DIVIDEND AND TRANSFER TO RESERVES
Keeping in view the losses, the Board of Directors has not recommended any dividend for the financial year 2017-18. Accordingly, there has been no transfer to general reserves.
4. CAPITAL STRUCTURE / STOCK OPTION Authorised Share Capital
The authorized share capital of the Company as at March 31, 2018 was Rs. 150 million.
Paid-up Share Capital
During the FY 2017-18, 16,031 equity shares were allotted to eligible employees pursuant to exercise of Stock Options. As at March 31, 2018 the paid-up share capital stands at Rs. 119.31million comprising of 1,19,31,101 equity shares of Rs. 10/- each fully paid up.
Employee Stock Options Scheme
At present, the Company has one Employee Stock Option (ESOP) Scheme, namely JIL Employees Stock Option Scheme 2013.
During FY 2017-18, there were no change in the Companyâs ESOP Scheme and the same is in Compliance with Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (the âSEBI SBEB Regulations, 2014). During the year, 16031 options were exercised by the option holders. The details pursuant to the SEBI SBEB Regulations, 2014, has been placed on the website of the Company and weblink of the same i s http://jubilantindustries.com/pdfs/disclosure-pursuant-provisions-sebi-2014-fy-2017-2018.pdf.
The Company has received a certificate from the Statutory Auditors of the Company certifying that the ESOP Scheme has been implemented in accordance with the SEBI SBEB Regulations, 2014. The certificate would be placed at the Annual General Meeting for inspection by members. A copy of the same will also be available for inspection at the Companyâs registered office.
5. SUBSIDIARIES
The Company has two wholly owned subsidiary companies, Jubilant Agri and Consumer Products Limited (JACPL) and Jubilant Industries Inc., USA.
- Jubilant Agri and Consumer Products Limited
JACPL has been engaged in the business of Agri Products comprising of wide range of Crop Nutrition, Crop Growth and Crop Protection products, Performance Polymers comprising of Wood Adhesives, Wood Finishes, Food Polymers and VP Latex.
During FY 2017-18, JACPL revenue from operations was Rs. 4555.72 million. EBITDA for the year stood at Rs. 308.14 million. The net loss after tax for the FY 2017-18 was Rs. 72.08 million.
In terms of Regulation 16 of the SEBI Listing Regulations 2015, JACPL is a material nonlisted wholly owned indian subsidiary of the Company.
- Jubilant Industries Inc. USA
Jubilant Industries Inc. USA is a wholly owned subsidiary of the Company. It has been engaged in overseas trading of Solid Poly Vinyl Acetate and VP Latex. During the FY 2017-18, revenue from operations was Rs. 251.65 million. EBITDA for the year stood at Rs. 5.03 million. The net profit after tax for the FY 2017-18 was Rs. 1.69 million.
A statement containing salient features of the financial statement of Companyâs subsidiaries is given in Form AOC-1 attached to the financial statements.
6. DIRECTORS AND KEY MANAGERIAL PERSONNEL Appointment, Re-appointment and Resignations
Mr. Priyavrat Bhartia will retire at the ensuing Annual General Meeting (AGM) and being eligible, has offered himself for re-appointment. The Board recommends his re-appointment. Brief resume of Mr. Priyavrat Bhartia with other details as stipulated in Regulation 36(3) of the SEBI Listing Regulations, 2015, are provided in the Notice convening the 12th AGM.
During the FY 2017-18, Mr. Sandeep Kumar Shaw, Chief Financial Officer, has resigned effective from April 28, 2017. In order to fill the vacancy caused due to the resignation of Mr. Shaw, the Board in its meeting held on May 24, 2017 has appointed Mr. Umesh Sharma as the Chief Financial Officer of the Company and also designated him as Key Managerial Personnel of the Company. The Board of directors has also appointed Mr. Umesh Sharma, Chief Financial Officer of the Company, as Wholetime Director effective from March 16, 2018.
Mr. Videh Kumar Jaipuriar has resigned from the directorship effective from December 11, 2017 due to his personal reasons and the same has been accepted by the Company. The Board places on record its deep sense of gratitude and appreciation for the leadership and direction provided by Mr. Jaipuriar during his tenure of more than 5 years as Managing Director.
Mr. Dinesh Kumar Gupta, Company Secretary, has resigned effective from December 18, 2017. In order to fill the vacancy caused due to the resignation of Mr. Gupta, the Board in its meeting held on March 16, 2018 has appointed Mr. Abhishek Mishra as the Company Secretary cum Compliance Officer and also designated him as Key Managerial Personnel of the Company.
Mr. Ghanshyam Dass has resigned from the directorship effective from February 26, 2018 due to his health issues. The Board places on record its deep appreciation for the insightful perspective and suggestions provided by him as non-executive independent director during his tenure on the Board of the Company.
Post FY 2017-18, Mr. Manu Ahuja has been appointed as CEO and Managing Director of the Company for the period of three years effective from May 10, 2018,
subject to the approval of the members in the ensuing AGM and also designated him as Key Managerial Personnel of the Company. Mr. Umesh Sharma, Chief Financial Officer and Whole-time Director, has resigned from the directorship of the Company effective from May 10, 2018 due to personal reasons. Mr. Sharma will continue to act as Chief Financial Officer of the Company. The Board places on record its sincere gratitude and appreciation to Mr. Sharma for the services rendered by him as Whole-time Director during his tenure on the Board of the Company.
Declaration by Independent Directors
All Independent Directors have given declaration that they meet the criteria of independence as provided under Section 149 of the Act and Regulation 16 of the SEBI Listing Regulations, 2015.
Meetings of the Board
During the FY 2017-18, five meetings of Board of Directors were held. The details of Board/Committee Meetings and the attendance of Directors are provided in the Corporate Governance Report, attached to this Report.
Appointment and Remuneration Policy
The Company has implemented an Appointment and Remuneration Policy pursuant to the provisions of Section 178 of the Act and Regulation 19 read with schedule II, Part D of the SEBI Listing Regulations, 2015. The policy has been disclosed in Corporate Governance Report attached to this Report.
Annual Performance Evaluation of the Board
A statement on annual evaluation by the Board of its performance and performance of its Committees as well as Individual Directors forms part of the Corporate Governance Report attached to this report.
7. DISCLOSURE ON AUDIT COMMITTEE
During the FY 2017-18, the Audit Committee was re-constituted. As on date, the Audit Committee comprises of Mr. R. Bupathy, Chairman, Mr. S. K. Roongta, Ms. Shivpriya Nanda and Mr. Manu Ahuja.
All the recommendations made by Audit Committee were accepted by the Board of Directors.
8. AUDITORS & AUDIT REPORTS Statutory Auditors
In terms of the provisions of Section 139 of the Act, M/s. K. N. Gutgutia & Co., Chartered Accountants, were appointed as the Companyâs Statutory Auditors by the shareholders at their 8th AGM held on September 02, 2014, for a period of five years i.e. till the conclusion of 13th AGM. The appointment of Auditors is required to be ratified by Members at every Annual General Meeting.
In accordance with the Companies (Amendment) Act, 2017, enforced on May 7, 2018 by the Ministry of Corporate Affairs, the appointment of Statutory Auditors is not required to be ratified at every AGM.
Hence, the appointment of M/s. K. N. Gutgutia & Co., Chartered Accountants has not been placed for ratification as Statutory Auditors before the members at ensuing AGM.
The reports of Statutory Auditors on Standalone and Consolidated Financial Statements forms part of the Annual Report. There are no qualifications, reservations, adverse remarks, disclaimer or emphasis of matter in the Auditorsâ Reports.
Secretarial Auditor
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed M/s. Sanjay Grover & Associates, Company Secretaries, to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is attached as Annexure 1 to this report and does not contain any qualification, reservation or adverse remark or disclaimer.
The Board has re-appointed M/s. Sanjay Grover & Associates, Company Secretaries, as Secretarial Auditors of the Company for FY 2018-19.
9. RISK MANAGEMENT
Todayâs business environment remains challenging for the Corporate World and risk management retains its high position on every organizationâs agenda. The Company has several risk factors which could potentially impact its business objectives, if not perceived and mitigated in a timely manner. With an effective risk management framework in place, the Company looks at these risks as challenges and opportunities to create value for its stakeholders. With its established processes and guidelines in place, combined with a strong oversight and monitoring system at the Board and senior management levels, the Company has a robust risk management strategy in place.
The senior management team sets the overall tone and risk culture of the organization through defined and communicated corporate values, clearly assigned risk responsibilities, appropriately delegated authority, and a set of processes and guidelines which are presented to the Board especially with respect to risk assessment and risk minimization procedures. As an organization, it promotes strong ethical values and high levels of integrity in all its activities, which in itself is a significant risk mitigator.
With the growth strategy in place, risk management holds the key to the success of our journey of continued competitive sustainability in attaining desired business objectives.
A detailed note on Risk Management is given as part of âManagement Discussion & Analysisâ.
10. HUMAN RESOURCES
The Company recognizes that its people are the eminent source of competitiveness and therefore itâs been our constant endeavor to support and build people capabilities by creating sustainable & pragmatic people plans.
With a strong aspiration to be amongst the most admired companies to work for, we encourage leadership, develop our people to be creative, empower them to take decisions & commitment through various measures and also maintain management quality, improved employee productivity, employee satisfaction, vibrant and diverse culture of performance.
The focus continues towards having a differentiated approach for attracting the right talent, engaging & retaining the talent thus acquired and also to nurture and invest in talent, crucial to maintain desired operational standards. Additional focus is maintained to develop a succession plan for critical positions, to address the inevitable impact on the business objectives in case of talent drain and making sure that business runs smoothly by identifying, developing and aligning our high-potential resources with the our future leadership needs.
The Company continues to invest in various talent engagement & development programs for its employees in an integrated approach.
The framework to identify & differentiate âHigh Performance High Potentialâ employees has been created based on âAction-Learningâ projects. Mentoring and developing existing talent and building a strong Employer branding would further help in attracting & retaining the best available talent in the Industry. We essentially exposure our employees to participate in cross functional teams and are structurally involved in strategy and operational discussion to build up the holistic knowledge of the business.
The Campus connect program is placed to infuse fresh and quality talent at the entry levels with an assured fast track career path. The search partner engagement enables a refined & effective connect with the candidates from the first connect & reinforces our employer branding for lateral hiring at key positions.
The Company continues to hire new & specialized talent for scientific and technical roles which is further cemented the engagement through the various reward and recognition programs that have been institutionalized. Focused capability building through need based training programs are provided to identified employees at all levels.
As an organization we are committed to zero tolerance against Sexual Harassment at workplace and the company has adopted a Policy on Prevention of Sexual Harassment at workplace under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the FY 2017-18, no case was reported under the policy.
11. AWARDS AND ACCOLADES
During the year, one of the units of JACPL received following awards and accolades:
- Grow Care India Environment Gold Award in Chemical Sector for outstanding achievement in environment management;
- 16th Annual Greentech Safety Gold Award in Chemical Sector for outstanding achievement in safety management.
12. SUSTAINABILITY REPORT
The Company firmly believes in inclusive growth of its business with the Environmental enrichment and Social development based on the triple bottom line concept of Sustainable Development.
The Company published its Corporate Sustainability Report for FY 2017-18 conforming to Global Reporting Initiative GRI STANDARDS fulfilling the âIn Accordanceâ-Comprehensive reporting criteria. As a green initiative, this report is available on the website of the Company (www.jubilantindustries. com) at âInvestorsâ section and GRI database. As an extension of the green initiative to minimise the impact on environment, the Annual Report is emailed to shareholders whose email id is registered with the Company/Depositories to reduce use of paper.
Sustainability initiatives have been undertaken for reduction of emission parameters, energy consumption and greenhouse gas emission. Energy Conservation drive have been carried out to strengthen the awareness and participation of employees in reducing avoidable Energy losses. Waste water generated in fertilizer plant is completely recycled and reused. In other plants it is treated and disposed as per Consent conditions. Natural Resource conservation measures have been strengthen through reuse of hazardous wastes i.e. silica sludge, sulphur sludge and fly-ash in the fertilizer plant. Further Renewable fuel (Rice Husk) have been successfully used, completely eliminating use of coal in hot air generators of the Company in the reporting year. Suppliers assessment process has been strengthened through checklist based review on relevant sustainability aspects and indicators.
13. CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility is an essential part of Jubilantâs framework for sustainable development. The companyâs approach towards sustainable development focuses on the triple bottom line of Economic, Environmental and Social performance. The CSR activities at Jubilant are in line with the provisions of Section 135 read with Schedule VII of Companies Act, 2013, the detailed CSR policy has been uploaded on the website www.jubilantindustries.com. The Company implement its CSR activities through âJubilant Bhartia Foundation (JBF)â which is a Section 25 Company (Section 8 as per new Act) in line of the provision of the Act.
CSR initiatives thrust on creating value in the lives of the communities around the area of operations of the Company, which is an important stakeholder. The Sustainable Development Goals (SDGs), otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. Jubilant as a responsible corporate works in the line of these SDGs with a strong focus on social performance indicated in the CSR projects of the organization.
Corporate Social Responsibility (CSR) is deeply imbibed in the Companyâs approach towards sustainable development. Jubilant considers âcommunity as one of its apex stakeholders and believes in inclusive growth. While there was no prescribed limit for CSR expenditure but Jubilant Bhartia Foundation continued its activities surrounding Companyâs manufacturing locations. During the FY 2017-18, Jubilant continued its CSR initiatives in the realm of Education, Health, Livelihood and Social Entrepreneurship.
A summary of the activities of JBF is provided on its website www.jubilantbhartiafoundation.com.
Annual Report on CSR activities of the Company for the financial year 2017-18 has been attached as Annexure 2 and forms part of this Report.
14. INVESTOR SERVICES
In its endeavour to improve investor services, your Company has taken the following initiatives:
- An Investor Section on the website of the Company (www.jubilantindustries.com) has been created.
- There is a dedicated e-mail id investorsjil@ jubl.com for sending communications to the Company Secretary.
Members may lodge their requests, complaints and suggestions on this e-mail as well.
15. GREEN INITIATIVES
Your Company, being committed to policy of sustainable development, has taken several green initiatives which include:
- Conducting Paperless Board/Committee Meetings;
- Uploading the Corporate Sustainability Report on the website of the Company (instead of circulating in paper or CD form) and providing its weblink to the shareholders alongwith the Annual Report; and
- Emailing Annual Reports and other documents to shareholders who have opted for the electronic version.
16. OTHER STATUTORY DISCLOSURES
i. Extract of Annual Return: Pursuant to provisions of Section 92 of the Act read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the extract of the Annual Return in Form No. MGT - 9 is attached as Annexure 3 to this Report.
ii. Deposits: The Company did not invite/accept any deposits covered under Chapter V of the Act. Accordingly no disclosure or reporting is required in respect of details relating to deposits covered under this Chapter.
iii. Loans, Guarantees and Investments: Details of loans, guarantees/ securities and investments along with the purpose for which the loan, guarantee or security is proposed to be utilised by the recipient have been disclosed in Note nos.5, 6, and 36 to the Standalone Financial Statements.
iv. Particulars of Contracts or Arrangements with the Related Parties: The Company had formulated a policy on Related Party Transactions (âRPTsâ), dealing with the review and approval of RPTs. Prior omnibus approval is obtained for RPTs which are of repetitive nature. All RPTs are placed before the Audit Committee for review and approval.
All RPTs entered into during FY 2017-18 were in the ordinary course of business and on armâs length basis. No material RPTs were entered into during FY 2017-18 by the Company as defined in the Policy on RPTs. Accordingly, the disclosure of RPTs as required under Section 134(3)(h) of the Act in Form AOC 2 is not applicable. Your Directors draw attention of the members to Note no. 35 to the Standalone Financial Statements which sets out the Related Party disclosures.
v. Material Changes in Financial Position: No material change or commitment has occurred after the close of the Financial Year 2017-18 till the date of this Report, which affects the financial position of the Company.
vi. Significant or Material orders: There is no significant or material orders passed by the Regulators or Courts or Tribunal impacting the going concern status of the Company and its future operations.
vii. Vigil Mechanism/Whistle Blower Policy: The details of Vigil Mechanism (Whistle Blower Policy) adopted by the Company have been disclosed in the Corporate Governance Report and form an integral part of this report.
viii. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo: The Company being engaged in the business of manufacturing of IMFL, most of the information as required under Section 134 the Act, read with Rule 8 Companies (Accounts) Rules, 2014 as amended is not applicable. However, the information as applicable has been given in Annexure 4 and forms part of this Report.
ix. Particular of Employees: Particulars as required under Section 197(12) of the Act read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are given in Annexure 5 and forms part of this Report.
ix. Secretarial Standards of ICSI: Pursuant to the approval given on April 10, 2015 by Central Government to the Secretarial Standards specified by the Institute of Company Secretaries of India, the Secretarial Standard on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2) came into effect from July 1, 2015. The Secretarial Standards were then revised and made effective from October 1, 2017. The Company is in compliance with the same.
17. DIRECTORSâ RESPONSIBILITY STATEMENT
Your Directors, based on the representation received from the management, confirm that:
- in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
- 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 as on March 31, 2018 and of the profit and loss of the company for the year ended March 31, 2018;
- the directors had 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;
- the directors had prepared the annual accounts on a going concern basis;
- the directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively;
Based on the framework of internal financial controls including the Control Manager for financial reporting and compliance systems established and maintained by the Company, work performed by the internal, statutory and secretarial auditors and the reviews performed by the management and the relevant Board committees, including the Audit Committee, the Board is of the opinion that the Companyâs internal financial controls were adequate and effective during the Financial Year 2017-18; and
- the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
18. CORPORATE GOVERNANCE
As a responsible corporate citizen, the Company is committed to maintain the highest standards of Corporate Governance and believes in adhering to the best corporate practices prevalent globally.
A detailed Report on Corporate Governance pursuant to the requirements of Regulation 34 read with Schedule V of the SEBI Listing Regulations, 2015, is attached as Annexure 6 forms part of this Report. A certificate from the Statutory Auditors confirming compliance with the conditions of Corporate Governance, as stipulated in Clause E of Schedule V to the SEBI Listing Regulations, 2015 is attached to the Corporate Governance Report.
The Board Members and Senior Management Personnel have affirmed compliance with the Code of Conduct for Directors and Senior Management for the year ended March 31, 2018. A certificate from the Chief Executive Officer & Managing Director confirming the same is attached to the Corporate Governance Report.
A certificate from the CEO and CFO confirming correctness of the financial statements, adequacy of internal control measures, etc. is also attached to the Corporate Governance Report.
19. MANAGEMENT DISCUSSION & ANALYSIS
Management Discussion and Analysis Report, as stipulated under the SEBI Listing Regulations, 2015 is presented in a separate Section forming part of this Annual Report.
20. ACKNOWLEDGMENTS
Your Directors acknowledge with gratitude the cooperation and assistance received from the Central and State Government Authorities. Your Directors thank the Shareholders, Financial institutions, Banks/ other Lenders, Customers, Vendors and other business associates for the confidence reposed in the Company and its management and look forward to their continued support. The Board places on record its appreciation for the dedication and commitment of the employees at all levels, which has continued to be our major strength. We look forward to their continued support in the future.
For and on behalf of the Board
Place: NOIDA Priyavrat Bhartia
Date: May 10, 2018 Chairman
(DIN: 00020603)
Mar 31, 2015
The Directors have pleasure in presenting the ninth Annual Report
together with audited financial statements & accounts for the financial
year ended March 31, 2015.
1. FINANCIAL RESULTS
(in Million)
Consolidated Standalone
Year ended Year ended Year ended Year ended
Particulars
March 31, March 31, March 31, March 31,
2015 2014 2015 2014
Total Revenue from
Operations 8582.01 9300.341 293.59 274.04
Total Expenses 8860.77 9323.671 304.42 280.54
Operating Profit/(Loss) (278.76) (23.33) (10.83) (6.50)
Other Income 22.41 2.94 0.17 0.11
Profit/(Loss) before
Exceptional Items &
Tax (945.87) (642.37) (13.32) (7.94)
Exceptional Items 233.49 (850.90) - -
Tax Expenses (1.57) (40.56) (1.57) 1.48
Net Profit/(Loss) (1177.79) 249.09 (11.75) (9.42)
Balance brought forward 544.73 295.64 1,456.35 1465.77
Adjustment on account of
Depreciation 9.59 - 0.11 -
Balance to be carried
forward (642.65) 544.73 1,444.49 1,456.35
2. STATE OF COMPANY'S AFFAIR & OPERATIONS
The Company is engaged in manufacturing of Indian Made Foreign Liquor
(IMFL) products for the various established brands in India, engaged in
liquor business.
With a capacity of 100,000 cases/month and configuration of 5
automatic/semi-automatic lines, it can handle all sizes of the bottles.
All lines are well equipped with required vats for storage of ENA,
Blending and equipped automatic machines rinsing, filling, sealing &
liabelling which provides flexibility for bottling various sizes of IMFL.
We have fully equipped state of art laboratory, chilling unit for the
scotch blending and well established Water treatment plant with RO
facility to support our bottling plant.
Consolidated Financials
In FY2015 the consolidated revenue from operations was Rs. 8582.10
million. EBITDA for the year stood at Rs. (256.35) million. Net loss was Rs.
1177.79 million and EPS on consolidated basis stood at Rs. (99.40).
Standalone Financials
In FY2015 total revenue from operations was Rs. 293.59 million. EBITDA
for the year stood at Rs. (10.66 million), Net loss wasRs. 11.75 million.
The Consolidated Financial Statement, in accordance with the Companies
Act, 2013 ("the Act"), Clause 32 of the Listing Agreement with the
Stock Exchanges ("the Listing Agreement") and Accounting Standard - 21
on Consolidated Financial Statement form part of this Report.
3. DIVIDEND AND TRANSFER TO RESERVES
Keeping in view the losses for the year under review, the Board of
Directors has not recommended any dividend for the financial year
2014-15. Accordingly, there has been no transfer to general reserves.
4. CAPITAL STRUCTURE / STOCK OPTION
Authorised Share Capital
The authorized share capital of the Company as at March 31, 2015 was Rs.
150 million.
Paid-up Share Capital
The paid-up share capital as at March 31, 2015 stands at Rs. 118.49
million comprising of 11,849,404 equity shares of Rs. 10/- each fully
paid up.
Employee Stock Options Scheme
At present, the Company has one Employee Stock Option (ESOP) Scheme,
namely JIL Employees Stock Option Scheme 2013. The Nomination,
Remuneration and Compensation Committee administers and monitors the
Company's ESOP Scheme.
During the year under review, no options were granted under the ESOP
Scheme. A disclosure with respect to ESOP Scheme of the Company as on
March 31, 2015 is annexed as Annexure 1 to this report.
The Company has received a Certificate from the Statutory Auditors of
the Company certifying that the ESOP Scheme has been implemented in
accordance with the SEBI Guidelines/ Regulations. The Certificate would
be placed at the Annual General Meeting for inspection by members. A
copy of the same will also be available for inspection at the Company's
registered office.
5. SUBSIDIARIES
The Company has two wholly owned subsidiary companies, Jubilant Agri
and Consumer Products Limited (JACPL) and Jubilant Industries Inc.,
USA.
- Jubilant Agri and Consumer Products Limited
During the year under review, JACPL was engaged in the business of Agri
Products comprising of wide range of crop nutrition, crop growth and
crop protection, Performance Polymers comprising of consumer products,
Food Polymers, VP Latex and Retail comprising of hypermarket stores.
During FY 2015, JACPL has revenue from operations Rs. 8348.42 million.
The net loss after tax for the year 2015 is Rs. 1121.41 million.
In terms of Clause 49 of the listing agreement, JACPL is a material
non-listed wholly owned indian subsidiary of the Company.
- Jubilant Industries Inc. USA
Jubilant Industries Inc. USA was incorporated as wholly owned
subsidiary, on April 24, 2014. During FY 2015, it was engaged in
overseas trading of Solid Poly Vinyl Acetate. It had revenue from
operations Rs. 419.02 million. Net loss for the year 2015 was Rs. 2.07
million.
The statement containing the salient features of Company's subsidiaries
under Section 129 of the Act, is attached to the financial statement.
6. MATERIAL CHANGES AND COMMITMENTS, AFFECTING THE FINANCIAL POSITION
OF THE COMPANY
Divestment of Retail Hypermarket Business
Post FY 2015, in May 2015, to focus on its core businesses of
manufacturing chemicals and fertilizers, JACPL has decided to exit its
retail hypermarket business chain 'Total'.
The transfer of the retail hypermarket business was completed with
effect from opening of business hours on August 12, 2015 on a going
concern basis, by means of a slump sale.
Reduction of Capital
To rationalize the balance sheet and to depict the true and fair
position of its assets and liabilities, the Board of Directors of JACPL
has approved the setting off of accumulated losses amounting to Rs. 20411
millions incurred by the JACPL till March 31, 2015 against the amount
standing in its Securities Premium Account as on that date. There is
no impact on the financial results of the Company.
The Hon'ble Allahabad High Court has Confirmed the petition for
reduction in the Securities Premium Account vide its order dated
October 01, 2015. Accordingly, Financial Statements have been re-drawn
after giving effect to the said reduction as on March 31, 2015. These
Financial Statements are placed before member for their adoption.
7. DIRECTORS AND KEY MANAGERIAL PERSONNEL
Appointment, Re-appointment and Resignations
Dr. Ashok Misra had resigned, due to personal reasons, from the
Company's Board w.e.f. September 17, 2014. The Directors place on
record their deep appreciation for the valuable contributions made by
Dr. Ashok Misra during his tenure on the Board.
Mr. Priyavrat Bhartia will retire at the ensuing Annual General Meeting
(AGM) and being eligible, has offered himself for re-appointment. The
Board recommends his re-appointment.
Brief resume of Mr. Priyavrat Bhartia with other details as stipulated
under Secretarial Standard - 2 and Clause 49 of the Listing Agreement,
are provided in the Notice for convening the AGM.
Key Managerial Personnel
During the year under review, Mr. Videh Kumar Jaipuriar, Managing
Director, Mr. Sandeep Kumar Shaw, Chief Financial Officer and Mr. Deepak
Gupta, Company Secretary were designated as Key Managerial Personnel
w.e.f. April 01, 2014 of the Company pursuant to Section 203 of the
Act.
Further, Mr. Deepak Gupta, Company Secretary, has resigned w.e.f. June
04, 2015. The Board in its meeting held on July 09, 2015 has appointed
Mr. Dinesh Kumar Gupta as the Company Secretary and Compliance Officer
of the Company.
Declaration by Independent Directors
All Independent Directors have given declaration that they meet the
criteria of independence as provided under Section 149 of the Act and
Clause 49 of the Listing Agreement. The Independent Directors have also
Confirmed that they have complied with the Company's code of conduct.
Meetings of the Board
A tentative calendar of Meeting is prepared and circulated in advance
to the Directors. The intervening gap between the meetings was within
the period prescribed under the Act, Secretarial Standard - 1 and
Listing Agreement.
During the year ended March 31, 2015, the Board met 4 times. The
details of Board/ Committee meetings and the attendance of Directors
are provided in the Corporate Governance Report, attached to this
Report.
Appointment and Remuneration Policy
The Company has framed an Appointment and Remuneration Policy pursuant
to the provisions of Section 178 of the Act and Clause 49 of Listing
Agreement. The Policy has been disclosed in the Corporate Governance
Report attached to this Report.
Board Evaluation
A statement on annual evaluation by the Board of its performance and
performance of its Committees as well as Individual Directors forms
part of the Corporate Governance Report.
8. DISCLOSURE ON AUDIT COMMITTEE
The Audit Committee as on March 31, 2015 comprises of Mr. R. Bupathy as
Chairman, Mr. S. K. Roongta and Mr. Ghanshyam Dass as members.
Further, all the recommendations of Audit Committee were accepted by
the Board of Directors.
9. AUDITORS & AUDIT REPORTS
Statutory Auditors
In terms of the provisions of Section 139 of the Act, M/s. K. N.
Gutgutia & Co., Chartered Accountants, were appointed as the Company's
Statutory Auditors by the shareholders at their 8th AGM held on
September 02, 2014, for a period of five years i.e. till the conclusion
of 13th AGM.
The said appointment is subject to ratification by the members at every
AGM. Accordingly, the appointment of M/s. K. N. Gutgutia & Co.,
Chartered Accountants, as the Company's Statutory Auditors, from the
conclusion of 9th AGM till the conclusion of 10th AGM, is placed for
ratification by the members. The Company has received certificate from
the Auditors to the effect that ratification of their appointment, if
made, shall be in accordance with the provisions of Section 141 of the
Act.
The reports of Statutory Auditors on Standalone and Consolidated
Financial Statements forms part of the Annual Report. There are no
qualifications, reservations, adverse remarks, disclaimer or emphasis
of matter in the Auditors' Reports.
Secretarial Auditor
Pursuant to the provisions of Section 204 of the Act and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
Company had appointed M/s Sanjay Grover & Associates, Company
Secretaries, to undertake the Secretarial Audit of the Company. The
Secretarial Auditors have submitted their report, confirming compliance
by the Company of all the provisions of applicable corporate laws.
The Report does not contain any qualification, reservation or adverse
remark or disclaimer. The Secretarial Audit Report is annexed herewith
as Annexure 2 to this report.
The Board has reappointed M/s Sanjay Grover & Associates, Company
Secretaries, as Secretarial Auditors of the Company for FY 2015-16.
10. RISK MANAGEMENT
Today's business environment remains challenging for the Corporate
World and risk management retains its high position on every
organization's agenda. The Company has several risk factors which could
potentially impact its business objectives, if not perceived and
mitigated in a timely manner. With an effective risk management
framework in place, the Company looks at these risks as challenges and
opportunities to create value for its stakeholders. With its
established processes and guidelines in place, combined with a strong
oversight and monitoring system at the Board and senior management
levels, the Company has a robust risk management strategy in place.
The senior management team sets the overall tone and risk culture of
the organization through defined and communicated corporate values,
clearly assigned risk responsibilities, appropriately delegated
authority, and a set of processes and guidelines which are presented to
the Board especially with respect to risk assessment and risk
minimization procedures. As an organization, it promotes strong
ethical values and high levels of integrity in all its activities,
which in itself is a significant risk mitigator.
With the growth strategy in place, risk management holds the key to the
success of our journey of continued competitive sustainability in
attaining desired business objectives.
A detailed note on Risk Management is given as part of "Management
Discussion & Analysis".
11. HUMAN RESOURCES
Human resource at Jubilant Industries Limited has the right composition
for being able to create the most favourable environment for not just
having a spike in performance, but to have consistent delivery. The
motto of HR strategy is to Attract, Retain, Develop and Nurture talent
by innovating people & business solutions to tailor the perfect ft
every time. We take pride at being appropriately prepared for its
employees to locate, identify and then engage them in the right
positions at the right time. The Company has a team of about 2000
magnificent staff distributed across its corporate Office in Noida,
hypermarkets in Bangalore, manufacturing units and sales and
distribution Offices / stores, across India.
As a vibrant Company Jubilant Industries Limited ensures strategic HR
and management development that is oriented not just by the business
targets but with social and economic changes at macro level. We have
integrated our HR practices to remain flexible and in tune with the
business to maintain the success of all of our people. Our Leadership
is the best in the industry and to keep it flourishing in the same
fashion we have periodic interventions viz. different programs &
developmental tools. At the same time, programs like Young Leaders
Acceleration Programs (YLEAP) are some such initiatives that are aimed
at infusing qualitative talent and recognizing fast trackers in
business environment.
The Company believes that our people are our biggest assets and hence
we invest in productive training programs for them. We ensure that our
people across the Company experience in- depth trainings in a wide
range of commercial, technical and business roles. Our effective HR
training and development programs have a focus especially on developing
skills and competencies. Jubilant Industries Limited offers its
nationwide employees a comprehensive range of behavioural and
functional training interventions like:
- Orbit Shift
- Breakthrough Workshops
- Talent & Succession Planning
- Cross Functional Teams
The Company hires on basis competencies that we see in an aspirant and
also assess their potential to drive the business tomorrow. We bind our
performers to us as they are presented with challenging, diverse career
opportunities within the Company. For the Company as a whole, we ensure
flexible, sustainable HR and succession planning with an increasingly
business orientation. The maxim of our values - "Inspiring, Nurturing,
Growing and Excelling", brings together all its employees and other
stakeholders to the range of Human Resource interface to the internal
and the external world.
The Company has adopted a Policy on Prevention of Sexual Harassment at
workplace and the Company has not received any complaint during the
year under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
12. AWARDS AND ACCOLADES
During the year 2014-15, one of the units of Jubilant Agri and Consumer
Products Limited, a wholly owned subsidiary of the Company, won the
prestigious "15th Annual Greentech Environment Gold Award" in Chemical
Sector for outstanding achievement in Environment Management. The unit
also won the "4th Annual Greentech CSR Silver Award in Consumer
Products Sector for outstanding achievement in CSR Initiatives and
"Asia Pacific HRM Congress Award 2014" for best Corporate Social
Responsibility Practices. The unit was also awarded with the "Silver
Award" in Chemical Sector for outstanding achievement in Safety
Management for the 3rd Consecutive year by Greentech foundation.
13. SUSTAINABILITY REPORT
The Company firmly believes in integrating its business with the social
fabric of the society that it operates in and is a firm supporter of the
triple bottom line concept.
The Company published its Corporate Sustainability Report 2014-15
conforming to Global Reporting Initiative (GRI) G3.1 reporting
guidelines fulfilling 'A' level of reporting. As a green initiative,
this report is published on CD to conserve paper and is sent to all the
shareholders along with the Annual Report of the Company. This report
shall also be available on the website of the Company at
www.jubilantindustries.com and GRI database. As an extension of the
green initiative to minimise the impact on environment, the Annual
Report is emailed to shareholders whose email id is registered with the
Company/Depositories to reduce use of paper.
Sustainability initiatives have been undertaken for reduction of
Environmental parameters, energy consumption and greenhouse gas
emission. Waste water generated in fertilizer plants is completely
recycled and reused. In other plants it is treated and disposed as per
Consent conditions. Rain water harvesting system implemented at plants
have been effectively recharging the groundwater aquifers. Reuse of
hazardous wastes i.e. silica sludge and sulphur sludge and use of
renewable fuel i.e. rice husk instead of coal, have reduced consumption
of natural resources. Significant reduction in Air Emission (SO2) with
increased acid yield has been achieved through process improvement in
Sulphuric Acid Plant.
14. CORPORATE SOCIAL RESPONSIBILITY
The Company through its CSR Wings of Jubilant Bhartia Foundation (JBF)
has been working with various stakeholders to bring about progressive
social change by knowledge generation & sharing, experiential learning
and entrepreneurial ecosystem. The Company has identified four core
focus areas towards community development and runs various activities
under these:
- Universalize elementary education through Muskaan,
- Improving health indices through innovative services of
Swasthya Prahari,
- Improving Employability of Local Youths through Vocational Training
Programmes such as Project Samriddhi.
- Building Farming capability and Cattle care through
'Krishi Paathshala.
CII Jubilant Bhartia Food and Agriculture Centre of Excellence (FACE)
has provided Food Safety capacity building and training services to
3000 members and has outreached to 5000 farmers, creating better
linkages with the private sector, introducing new technologies and
enabling access to markets.
A summary of the activities of JBF is provided on its website
www.jubilantbhartiafoundation.com
Annual Report on CSR activities of the Company for the financial year
2014-15 has been attached as Annexure 3 and forms part of this report.
As per the provisions of the Act, the amount for CSR activities for the
financial year 2014-15 was Rs. 1.99 million. Accordingly, Rs. 2.00 million
was budgeted for spending on CSR activities. During the year, the
Company through Jubilant Bhartia Foundation, a social wing of Jubilant
Bhartia Group had spent Rs. 1.00 million on various CSR activities. Work
on projects in 41 schools is in completion stage for which Rs. 1.00
million has been provisioned in the books of accounts that will be
spent during FY 2015-16.
15. INVESTOR SERVICES
In its endeavour to improve investor services, your Company has taken
the following initiatives:
- An Investor Section on the website of the Company
www.jubilantindustries.com has been created.
- There is a dedicated e-mail id investorsjil@ jubl.com for sending
communications to the Company Secretary.
Members may lodge their requests, complaints and suggestions on this
e-mail as well.
16. GREEN INITIATIVES
Your Company, being committed to policy of sustainable development, has
taken several green initiatives which include:
- Conducting Paperless Board/Committee Meetings;
- Publishing and circulating Corporate Sustainability Report in CD;
- Emailing Annual Reports and other documents to shareholders who have
opted for the same on email.
17. CORPORATE GOVERNANCE
A detailed report on Corporate Governance, pursuant to the requirements
of Clause 49 of the Listing Agreement, forms part of this Report.
A Certificate from the Statuory Auditors of the Company Confirming
compliance of conditions of Corporate Governance as stipulated in
clause 49 of the Listing Agreement is annexed to the Corporate
Governance Report.
18. MANAGEMENT DISCUSSION & ANALYSIS
Management Discussion and Analysis Report, as stipulated under the
Listing Agreement is presented in a separate Section forming part of
this Annual Report.
19. OTHER STATUTORY DISCLOSURES
i. Extract of Annual Return: Pursuant to provisions of Section 92 of
the Act and Rule
12 of the Companies (Management and Administration) Rules, 2014, the
extract of the Annual Return in Form No. MGT Â 9 is attached as
Annexure 4 to this report.
ii. Deposits: The Company did not invite/accept any deposits covered
under Chapter V of the Act. Accordingly no disclosure or reporting is
required in respect of details relating to deposits covered under this
Chapter.
iii. Loans, Guarantees and Investments: The details of Loans,
Guarantees and Investments covered under Section 186 of the Act form
part of the notes to the financial statements.
iv. Particulars of Contracts or Arrangements with the Related Parties:
All related party transactions that were entered into during the
financial year were on an arm's length basis and were in the ordinary
course of business. There are no materially significant related party
transactions made by the Company with Promoters, Directors, Key
Managerial Personnel or other designated persons which may have a
potential conflict with the interest of the Company at large. All
Related Party Transactions are placed before the Audit Committee and
the Board for approval. Prior omnibus approval of the Audit Committee
is obtained on annual basis for the transactions which are of a
foreseen and repetitive nature. The transactions entered into pursuant
to the omnibus approval so granted are placed before the Audit
Committee for its review on a quarterly basis. The Company has
formulated a policy for transacting with Related Parties, which is
uploaded on the website of the Company
(http://www.jubilantindustries.com/pdfs/
policy-for-related-party-transactions.pdf). Transactions with the
related parties are disclosed in Note to the financial statements in the
Annual Report.
v. Significant or Material orders: There is no significant or material
orders passed by the Regulators or Courts or tribunal impacting the
going concern status of the Company and its future operations.
vi. Vigil Mechanism/Whistle Blower Policy: The Company has a vigil
mechanism pursuant to which a Whistle Blower Policy is in place. The
Policy ensures that strict confidentiality is maintained whilst dealing
with concerns and also that no discrimination will be meted out to any
person for a genuinely raised concern. This Policy covering all
employees, Directors and other persons having association with the
Company is hosted on the Company''s website (http://
www.jubilantindustries.com/pdfs/whistle- blower-policy.pdf). The
details of Vigil Mechanism (Whistle Blower Policy) adopted by the
Company have been disclosed in the Corporate Governance Report attached
to this report and form an integral part of this report.
vii. Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo: The Company being engaged in the business of
contract manufacturing of Indian made Foreign Liquor (IMFL), most of
the information as required under Section 134 the Act, read with Rule 8
Companies (Accounts) Rules, 2014 as amended is not applicable. However,
the information as applicable has been given in Annexure 5 and forms
part of this Report.
viii. Particular of Employees: Particulars as required under Section
197(12) of the Act read with Rule 5(1) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, are given in
Annexure 6 and forms part of this Report. During the year, there were
no employees whose particulars are required to be reported under
Section 197 of the Act read with Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014.
20. DIRECTORS' RESPONSIBILITY STATEMENT
In compliance of Section 134(5) of the Act, your Directors, based on
the representation received from the management, Confirm that:
- in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures;
- 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 as on March 31, 2015 and of the profits of the company for
the year ended March 31, 2015;
- the directors had 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;
- the directors had prepared the annual accounts on a going concern
basis;
- the directors had laid down internal financial controls to be followed by
the company and that such internal financial controls are adequate and
were operating effectively.
Based on the framework of internal financial controls including the
Control Manager for financial reporting and compliance systems
established and maintained by the Company, work performed by the
internal, statutory and secretarial auditors and the reviews performed
by the management and the relevant Board committees, including the
Audit Committee, the Board is of the opinion that the Company's
internal financial controls are adequate and effective during the
Financial Year 2014-15; and
- the directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
21. ACKNOWLEDGMENTS
Your Directors acknowledge with gratitude the co-operation and
assistance received from the Central and State Government Authorities.
Your Directors thank the Shareholders, Banks, Customers, Vendors and
other business associates for the confidence reposed in the Company and
its management and look forward to their continued support. The Board
places on record its appreciation for the dedication and commitment of
the employees at all levels, which has continued to be our major
strength.
For and on behalf of the Board
Place : Noida Hari S. Bhartia
Date : October 28, 2015 Chairman
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting the Eighth Annual Report and
Audited Accounts for the year ended March 31, 2014.
Financial Results
(Rs. in Million)
Consolidated Standalone
Year Year Year Year
ended ended ended ended
March March March March
31, 2014 31, 2013 31, 2014 31, 2013
Particulars
Revenue from 9195.18 10016.30 272.40 227.64
Operations
Other Operating 105.16 91.66 1.64 1.11
Income
Total Revenue from 9300.34 10107.96 274.04 228.75
Operations
Total Expenses 9323.73 9870.74 280.60 233.98
Operating Profit/(Loss) (23.39) 237.22 (6.56) (5.23)
Other Income 3.00 3.86 0.17 0.35
EBITDA (including Other
Income) (20.39) 241.08 (6.39) (4.88)
Depreciation
&Amortisation 316.40 314.54 1.48 1.25
Expenses
Interest (Finance Cost) 305.58 276.52 0.07 -
Profit/(Loss) before
Exceptional Items & (642.37) (349.98) (7.94) (6.13)
Tax
Exceptional Items (850.90) - - (1.74)
Tax Expenses (40.56) 0.29 1.48 0.29
Reported Net Profit/ 249.09 (350.27) (9.42) (4.68)
(Loss) for the year
Balance brought
forward from previous 295.64 645.91 1465.77 1,470.45
year
Amount available
for Appropriation
which the Directors 544.73 295.64 1456.35 1465.77
have appropriated as
follows:
* Proposed Dividend
on Equity shares - - - -
* Tax on Distributed
Profits on Equity - - - -
Shares
* Transfer to General
Reserve - - - -
Balance to be carried 544.73 295.64 1456.35 1465.77
forward
Standalone Financials
In FY2014 total revenue from operations was Rs. 274.04 million. EBITDA
for the year stood at (Rs. 6.39 million), Net loss was Rs. 9.42
million.
Consolidated Financials
In FY2014 the consolidated revenue from operations was Rs. 9300.34
million. EBITDA for the year stood at (Rs. 20.39) million.
Reported net profit for the year was Rs. 249.09 million after adjusting
net income from exceptional items of Rs. 850.90 million on account of
reversal of lease rent equalisation reserve of Rs. 1291.50 million
consequent to entering of new lease agreements for hypermarkets and
writing-off of associated leasehold improvements and other fixed assets
amounting to Rs. 440.60 million pertaining to surrendered spaces of
hypermarkets. Basic EPS stood at Rs. 21.02.
Dividend
In view of the losses, your Directors do not recommend any dividend for
the year ended March 31, 2014.
Operations
The Company is engaged in manufacturing of Indian Made Foreign Liquor
(IMFL) products for the various established brands in India, engaged in
liquor business. The capacity is 100,000 cases/month for IMFL. With a
configuration of 5 automatic/semi-automatic lines, it can handle all
sizes of the bottles.
All lines are well equipped with required vats for storage of ENA,
Blending and equipped automatic machines rinsing, filling, sealing &
labeling which provides flexibility for bottling various sizes of IMFL.
We have fully equipped state of art laboratory, chilling unit for the
scotch blending and well established Water treatment plant with RO
facility to support our bottling plant.
Capital Structure
Authorised Share Capital
The authorized share capital of the Company as at March 31, 2014was Rs.
150 million.
Paid-Up Share Capital
The paid-up share capital as at March 31, 2014 stands at Rs. 118.49
million comprising of 11,849,404 equity shares of Rs. 10/- each fully
paid up.
Employees Stock Option Scheme (ESOPs)
During the current financial year 2013-14, 1,41,712 stock options were
granted to the eligible employees of the Company and the subsidiary.
Assuming exercise of these options, equivalent number of equity shares
will be allotted to the eligible employees.
The disclosures required under regulation 12 of the SEBI Guidelines are
given in Annexure A and form part of this report.
Fixed Deposits
Your Company did not invite/accept any Fixed Deposit from the public
during the year under review.
Subsidiary
In terms of Clause 49 of the listing agreement, Jubilant Agri and
Consumer Products Limited (JACPL) is a material non- listed Indian
Subsidiary of the Company as at the end of previous year.
JACPL is a wholly owned subsidiary of the Company, engaged in the
business of Agri Products comprising of wide range of crop nutrition,
crop growth and crop protection, Performance polymers comprising of
consumer products, Food polymers, VP Latex and Retail comprising of
hypermarket stores.
Consolidated Financial Statements
The Consolidated Financial Statements, in terms of Clause 32 of the
Listing Agreement are prepared in accordance with AS-21 as specified in
Companies (Accounting Standards) Rules, 2006 form part of the Annual
Report.
Particulars required as per Section 212 of the Companies Act, 1956 In
terms of the general exemption granted by the Government of India vide
its general circular no. 2/2011 dated February 08, 2011, from attaching
the Directors'' Report, Balance Sheet, Statement of Profit & Loss and
other particulars of the subsidiaries, the Board of Directors in its
meeting held on May 28, 2014 decided not to attach Directors'' Report,
Balance Sheet, Statement of Profit & Loss and other particulars of
JACPL, the wholly owned Subsidiary Company with the Annual Report of
the Company this year.
The Company will make available the Annual Accounts of the subsidiary
company and other related information upon request by any member of the
Company or its subsidiary company. The Annual Accounts of the
subsidiary company will also be kept open for inspection at the
registered office of the Company and the subsidiary company during
business hours.
Auditors
In terms of the provisions of the Companies Act, 2013, M/s. K. N.
Gutgutia & Co., Chartered Accountants, [ICAI Registration Number -
304153E] Statutory Auditors of the Company, will complete their first
term of 5 (Five) consecutive years at the conclusion of the ensuing
Annual General Meeting. They can be further appointed as statutory
auditors for another term of 5 (Five) consecutive years i.e, till the
conclusion of Annual General Meeting to be held in the year 2019. The
Company has obtained necessary certificate under section 141 of the
Companies Act, 2013 from the auditor conveying their eligibility for
the above appointment. The Audit Committee and the Board reviewed their
eligibility criteria, as laid down under section 141 of the Companies
Act, 2013 and recommended their appointment as auditors for the above
said period.
Directors
Presently, in conformity with clause 49 of the Listing Agreement, the
Company has the following directors as non- executive Independent
Directors, namely Mr. R Bupathy, Mr. Ghanshyam Dass, Mr S. K. Roongta,
Dr. Ashok Misra and Ms. Shivpriya Nanda.
During the year, Ms. Shivpriya Nanda was appointed as an additional
director of the Company who shall hold office upto the date of ensuing
Annual General Meeting of the Company.
As per the provisions of the Companies Act, 2013, Independent Directors
are eligible to hold office for a term upto five consecutive years and
are eligible for re-appointment for the second term on passing special
resolutions by the Company. During their tenure, they will not be
liable to retire by rotation.
The Company has received from all the Independent Directors consents
for their appointment and declarations confirming that they meet the
criteria of independence as envisaged under the Companies Act, 2013and
Listing Agreement.
Notices under Section 160 of the Companies Act, 2013 have been received
from members proposing their candidature alongwith requisite deposits.
Accordingly, in terms of Section 149(10) read with Schedule IV of the
Companies Act, 2013, the Board recommends the appointment of the above
directors as Independent Directors who shall hold office upto March 31,
2019 and shall not be liable to retire by rotation during their tenure.
In accordance with the provisions of the Companies Act, 2013
and the Articles of Association of the Company, Mr Shamit Bhartia
retires by rotation at the forthcoming Annual General Meeting and being
eligible, offers himself for re-appointment.
Brief resumes of these directors proposed to be appointed/ re-appointed
and other relevant information have been furnished in the Notice
convening the Annual General Meeting. Appropriate resolutions for their
appointment / re- appointment are being placed for approval of the
members at the Annual General Meeting.
Directors'' Responsibility Statement
In compliance of Section 217(2AA) of the Companies Act, 1956, the
Directors of your Company, based on the representation received from
the management, confirm:
* that in the preparation of annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures.
* 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 as at March 31, 2014 and of profit or loss of the
Company for the year ended March 31, 2014.
* that the Directors had 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.
* that the Directors had prepared the annual accounts on a going
concern basis.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The Company being engaged in the business of contract manufacturing of
Indian made Foreign Liquor (IMFL), most of the information as required
under section 217(1)(e) of the Companies Act, 1956, read with the
Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988, as amended is not applicable. However, the
information as applicable has been given in Annexure B and forms part
of this Report.
Employees
During the year there were no employees whose particulars are required
to be reported under section 217 (2A) of the Companies Act, 1956.
Corporate Governance
A detailed report on Corporate Governance is attached to this Report as
Annexure C. A certificate from the Auditors of the Company confirming
compliance of conditions of Corporate Governance as stipulated in
clause 49 of the Listing Agreement with Stock Exchanges is enclosed as
Annexure D. A certificate from the Managing Director that all Board
members and senior management personnel have affirmed compliance with
the Code of Conduct for the year ended March 31, 2014 is attached as
Annexure E.
A Certificate from CEO/CFO confirming the correctness of the financial
statements, adequacy of the internal control measures etc. is also
enclosed as Annexure F.
Management Discussion & Analysis
Notes on Management Discussion & Analysis of the financial and business
performance of the Company have been given separately and form part of
this Report.
Corporate Sustainability Report
Your Company is committed to addressing Environment, Health and Safety
(EHS) issues and to discharging its Corporate Social Responsibility.
The Company undertook Sustainability initiatives through Energy
Conservation and Climate Change Mitigation, Reduction of Environmental
Footprints in Water consumption, Waste Water Treatment, Recycle and
Reuse and Hazardous Waste Reuse and Recycle. Supplier Audits were
carried out covering review for their EHS and no Child Labour
employment thereby strengthening Green Supply Chain Management of the
Company.
Sustainability initiatives of the Company are published in the
Corporate Sustainability Report 2013-14 and it is duly audited by Ernst
& Young LLP, and conforms to Global Reporting Initiative (GRI) G3.1
Reporting Guidelines fulfilling A level of reporting. This report is
published on CD to conserve paper. The Report in CD is being sent to
all the shareholders along with the Annual Report of the Company. The
same shall also be available on the website of the Company at
www.jubilantindustries.com.
Inclusive Growth has always been a part of Corporate Social
Responsibility of the Company. Corporate Social Initiatives are
conceptualised and implemented through Jubilant Bhartia Foundation
(JBF), the social wing of Jubilant Bhartia Group established in 2007,
as a not for profit organisation. JBF works on 4P model
(Public-Private-People-Partnership) for empowering communities and
believes that for sustainable social intervention, people themselves
would have to be the drivers on these projects.
Based on the 4P approach, following major areas have been selected for
Social Initiatives by Jubilant:
* Supporting Government Rural Primary Education System through Project
Muskaan in 100 schools;
* Strengthening Basic Healthcare Facilities in local community; and
* Improving Employability of Local Youths through Vocational Training
Programmes such as Project Samriddhi.
* Building Farming capability and Cattle care through ''Krishi
Paathshala''.
CII Jubilant Bhartia Food and Agriculture Centre of Excellence (FACE)
has provided Food Safety capacity building and training services to
3000 members and has outreached to 5000 farmers, creating better
linkages with the private sector, introducing new technologies and
enabling access to markets.
A summary of the activities of JBF is provided on its website at
www.jubilantbhartiafoundation.com
Risk Management
Today''s business environment remains challenging for the Corporate
World and risk management retains its high position on every
organization''s agenda. The Company has several risk factors which could
potentially impact its business objectives, if not perceived and
mitigated in a timely manner. With an effective risk management
framework in place, the Company looks at these risks as challenges and
opportunities to create value for its stakeholders. With its
established processes and guidelines in place, combined with a strong
oversight and monitoring system at the Board and senior management
levels, the Company has a robust risk management strategy in place.
The senior management team sets the overall tone and risk culture of
the organization through defined and communicated corporate values,
clearly assigned risk responsibilities, appropriately delegated
authority, and a set of processes and guidelines which are presented to
the Board especially with respect to risk assessment and risk
minimization procedures.
As an organization, it promotes strong ethical values and high levels
of integrity in all its activities, which in itself is a significant
risk mitigator.
With the growth strategy in place, risk management holds the key to the
success of our journey of continued competitive sustainability in
attaining desired business objectives.
A detailed note on Risk Management is given as part of "Management
Discussion & Analysis".
Human Resources
The Company recognizes that its people are the primary source of
competitiveness and therefore strives to support and build people
capabilities to make them achieve better results. As a result and in
view of the current megatrend of globalizing and internationalizing
business processes, our HR systems are integrated to develop a
continuously learning organization in order to create a win-win
situation for both the employees and the organization. By focussing on
the most innovative HR practices, the Company continues to function
with the aim of attracting, developing and retaining the best talent
available. The Company and its wholly owned subsidiary has a total
workforce of around 2500 resourceful employees spread across its
corporate office in Noida, manufacturing units and sales and
distribution offices / stores across India that witness their
development aligned to the growth of the organization.
With an aim to be the employer of choice, Jubilant Industries
encourages leadership and commitment through various measures to
maintain management quality, improve employee productivity and employee
satisfaction through a neutral and congenial organization culture.
As a modern company, Jubilant Industries ensures strategic HR and
management development that is oriented by the business targets as well
as social and economic changes. Our effective HR practices remain
flexible, close to the market and mobile to maintain the success of all
of its employees in developing their skills - using an integrative
approach. Competencies such as performance, results orientation,
assertiveness, leadership, reliability, communication and creativity
form the basis of these. Building upon these competencies, performance
management, talent management, training and development, retention
management and culture management are the mainstays of HR and
management development within our company. All these aspects work
together, are interlinked and thereby contribute to the overall Company
strategy. We have continued to preserve pleasant employer - employee
relationship and there have been no instances of major strikes,
lockouts or any other disruptive labour disputes. We continue to
provide better range of benefits to our employees and their dependents,
addressing their social security needs.
We ensure that people across the company experience in-depth trainings
in a wide range of commercial, technical and business role. Our
effective HR training and development programs focus especially on
developing skill and competency. Employees and managers receive help in
recognizing, enhancing and applying their individual strengths for the
benefit of the organization. We believe that each individual success
contributes to the sustained success of the entire Jubilant Bhartia
Group.
We ensure flexible, sustainable HR and succession planning with an
increasingly business orientation. The maxim of our values - "Caring,
Sharing and Growing", brings together all its employees and other
stakeholders to the range of Human Resource interface to the internal
and the external world.
The Company has a policy for Prevention of Sexual harassment which
applies to all employees, associated vendors, Contract Labour and
consultants / retainers of the Company at all its establishments. It
ensures prevention and deterrence towards commission of acts of sexual
harassment and communicates procedures for their resolution, settlement
or prosecution.
In terms of Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013, the Company has not received any
complaint during the calender year 2013.
Awards and Accolades
During the year 2013-14, one of the units of Jubilant Agri and Consumer
Products Limited, a wholly owned subsidiary of the Company, won the
prestigious "Silver Award" in Chemical Sector for outstanding
achievement in Environment Management at the 14th Annual Greentech
Environment Awards. This unit was also awarded with the "Silver Award"
in Chemical Sector for outstanding achievement in Safety Management at
the 12th Annual Greentech Safety Awards.
Investor Services
In its endeavour to improve investor services, your Company has taken
the following initiatives:
* An Investor Section on the website of the Company
www.jubilantindustries.com has been created.
* There is a dedicated e-mail id investorsjil@jubl. com for sending
communications to the Company Secretary. Members may lodge their
requests, complaints and suggestions on this e-mail as well.
Green Initiatives
Your Company, being committed to policy of sustainable development, has
taken several green initiatives which include:
* Conducting Paperless Board/Committee Meetings;
* Publishing and circulating Corporate Sustainability Report in CD;
* Emailing Annual Reports and other documents to shareholders who have
opted for the same on email.
Acknowledgments
Your Directors acknowledge with gratitude the co- operation and
assistance received from the Central and State Government Authorities.
Your Directors thank the Shareholders, Banks, Customers, Vendors and
other business associates for the confidence reposed in the Company and
its management and look forward to their continued support. The Board
places on record its appreciation for the dedication and commitment of
the employees at all levels, which has continued to be our major
strength.
For and on behalf of the Board
Place : Noida Hari S. Bhartia
Date : May 28, 2014 Chairman
Mar 31, 2013
The Directors have pleasure in presenting the Seventh Annual Report
and Audited Accounts for the year ended March 31, 2013.
Financial Results
(Rs. in million)
Consolidated Standalone
Year Year Year Year
Particulars ended ended ended ended
March 31, March 31, March 31, March 31,
2013 2012 2013 2012
Revenue from 9976.12 10215.51 227.64 2426.44
Operations
Other Operating Income 15.11 10.751 1.11 4.29
Total Revenue from 9991.23 10226.26 228.75 2430.73
Operations
Total Expenses 9830.52 10108.60 233.94 2097.34
Operating Profit/(Loss) 160.71 117.66 (5.19) 333.39
Other Income 80.37 75.331 0.31 16.75
EBITDA (including 241.08 192.99 (4.88) 350.14
Other Income)
Depreciation & 314.54 293.10 1.25 28.40
Amortisation Expenses
Interest (Finance Cost) 276.52 247.42 4.04
Profit/(Loss) before (349.98) (347.53) (6.13) 317.70
Exceptional Items & Tax
Exceptional Items 157.04 (1.74) 11.06
Tax Expenses 0.29 62.43 0.29 49.13
Reported Net Profit/ (350.27) (567.00) (4.68) 257.51
(Loss) for the year
Balance brought
forward from previous 645.91 1212.91 1,470.45 1,212.94
year
AMOUNT AVAILABLE 295.64 645.91 1465.77 1,470.45
FOR APPROPRIATION
Which the Directors
have appropriated as
follows:
- Proposed Dividend
on Equity shares
- Tax on Distributed
Profits on Equity
Shares Transfer
to General Reserve
Balance to be carried 95.64 645.91 1465.77 1,470.45
forward
Transfer of Business Undertaking through Business Transfer Agreement
During the year under review, your Board of Directors approved the
slump sale of the Business undertaking engaged in the manufacture and
sale of Solid Poly Vinyl Acetate (Solid PVA) and Vinyl Pyridine Latex
(VP Latex) business of the Company by way of slump sale to Jubilant
Agri and Consumer Products Limited (JACPL), wholly owned subsidiary
w.e.f. April 1, 2012 along with all the assets and liabilities
including employees, contracts, licenses, permits, consents and
approvals relating to business undertaking on a going concern basis,
with effect from April 1, 2012, by means of a Âslump sale'' (as defned
in section 2(42C)
of the Income Tax Act, 1961) for a lump sum consideration of Rs.
974,800,000/-. The sale of Business undertaking was approved by
shareholders by passing of Special resolution on March 1, 2013 by way
of Postal Ballot voting.
Standalone Financials
In FY2013 total revenue from operations was Rs. 228.75 million. EBITDA
for the year stood at (Rs. 4.88 million), Net loss was Rs. 4.68 million and
EPS at (Rs. 0.39).
Consolidated Financials
In FY2013 the consolidated revenue from operations was Rs. 9991.23
million. EBITDA for the year stood at Rs. 241.08 million. Net loss was Rs.
350.27 million and EPS on consolidated basis stood at (Rs. 29.56).
Dividend
In view of the losses, your Directors do not recommend any dividend for
the year ended March 31, 2013.
Operations
The fnancial results for the year ended March 31, 2013 have been
prepared after giving effect to the slump sale of the Business
Undertaking and in accordance with revised Schedule VI to the Companies
Act, 1956. Accordingly, the fgures of the previous year ended March 31,
2012, wherever necessary, have also been regrouped/reclassifed.
Therefore, they are strictly not comparable with the fgures of year
under review.
Capital Structure
Authorised Share Capital
The authorized share capital of the Company as at March 31, 2013 was Rs.
150 million.
Paid-Up Share Capital
The paid-up share capital as at March 31, 2013 stands at Rs. 118.49
million comprising of 11,849,404 equity shares of Rs. 10/- each fully
paid up at the end of previous year.
Employees Stock Option Scheme (ESOPs)
During the year, your Company instituted JIL Employees Stock Option
Scheme 2013 (the Scheme), in terms of approval of shareholders of the
Company accorded by way of Postal Ballot on March 1, 2013 and in
accordance with SEBI(Employee Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999 (SEBI Guidelines). Under the scheme,
maximum 590,000 Stock Options in aggregate can be granted by the
Company and exercised by the Grantees. Each Option entitles the holder
to acquire one equity share of Rs. 10/- at the exercise price fxed at the
time of grant being market price as per the SEBI Guidelines. During the
fnancial year 2012-13, no Stock Options were granted.
During the current fnancial year 2013-14, 126,279 stock options were
granted to the eligible employees of the Company and the subsidiary.
Assuming exercise of these options, equivalent number of equity shares
will be allotted to the eligible employees.
The disclosures required under regulation 12 of the SEBI Guidelines are
given in Annexure A and form part of this report.
Fixed Deposits
Your Company did not invite/accept any Fixed Deposit from the public
during the year under review.
Subsidiary
In terms of Clause 49 of the listing agreement, Jubilant Agri and
Consumer Products Limited (JACPL) is a material non-listed Indian
Subsidiary of the Company as at the end of previous year.
JACPL is a wholly owned subsidiary of the Company, engaged in the
business of Agri Products comprising of wide range of crop nutrition,
crop growth and crop protection, Performance polymers comprising of
consumer products, Food polymers, VP Latex and Retail comprising of
hypermarket stores.
In terms of the transfer of business undertaking as described in the
preceding paragraph, JACPL allotted 974,800 10% Non- Cumulative
Redeemable Preference Shares of Rs. 10/- each at premium of Rs. 990/- per
share to the Company towards discharge of lump sum consideration of Rs.
974,800,000/-.
Consolidated Financial Statements
The Consolidated Financial Statements, in terms of Clause 32 of the
Listing Agreement and prepared in accordance with AS- 21 as specifed in
Companies (Accounting Standards) Rules, 2006 form part of the Annual
Report.
Particulars required as per Section 212 of the Companies Act, 1956
In terms of the general exemption granted by the Government of India
vide its general circular no. 2/2011 dated February 08, 2011, from
attaching the Directors'' Report, Balance Sheet, Statement of Proft &
Loss and other particulars of the subsidiaries, the Board of Directors
in its meeting held on May 8, 2013 decided not to attach Directors''
Report, Balance Sheet, Statement of Proft & Loss and other particulars
of JACPL, the wholly owned Subsidiary Company with the Annual Report of
the Company this year.
The Company will make available the Annual Accounts of the subsidiary
company and other related information upon request by any member of the
Company or its subsidiary company. The Annual Accounts of the
subsidiary company will also be kept open for inspection at the
registered offce of the Company and the subsidiary company during
business hours.
Auditors
M/s. K. N. Gutgutia & Co., Chartered Accountants, [ICAI Registration
Number - 304153E] Statutory Auditors of the Company, retire at the
ensuing Annual General Meeting and offer themselves for re-appointment.
They have confrmed that their re-appointment, if made, shall be within
the limits laid down in Section 224(1B) of the Companies Act, 1956.
Cost Auditors
Subsequent to transfer of business undertaking engaged in the
manufacture and sale of Solid PVA and VP Latex to
JACPL, these products which were subject to Cost Audit in the Company
will now be subject to Cost Audit in JACPL from the fnancial year
2012-13 and onwards.
The relevant cost audit reports for the fnancial year 2011-12 for Tyres
and Tubes was fled on February 22, 2013, against the due date of
February 28, 2013.
Directors
Mr. Videh Kumar Jaipuriar ceased to be the Whole-time Director of the
Company w.e.f. March 1, 2013.
He was appointed as Managing Director of the Company without any
remuneration for a period of three years w.e.f. March 1, 2013 subject
to necessary approvals.
In accordance with the provisions of the Act and the Articles of
Association of the Company, Mr. Ramanathan Bupathy, Mr. Ghanshyam Dass
and Mr. S. K. Roongta retire by rotation at the forthcoming Annual
General Meeting and being eligible, offer themselves for
re-appointment.
Directors'' Responsibility Statement
In compliance of Section 217(2AA) of the Companies Act, 1956, the
Directors of your Company, based on the representation received from
the management, confrm:
- that in the preparation of annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures.
- 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 as at March 31, 2013 and of proft or loss of the Company
for the year ended March 31, 2013.
- that the Directors had taken proper and suffcient 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.
- that the Directors had prepared the annual accounts on a going
concern basis.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The Company being engaged in the business of contract manufacturing of
Indian made Foreign Liquor (IMFL), most of the information as required
under section 217(1)(e) of the Companies Act, 1956, read with the
Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988, as amended is not applicable. However, the
information as applicable has been given in Annexure B and forms part
of this Report.
Employees
The particulars of employees, as required under section 217(2A) of the
Companies Act 1956, read with the Companies (Particulars of Employees)
Rules, 1975, are given in Annexure C and forms part of this Report.
Corporate Governance
A detailed report on Corporate Governance is attached to this Report as
Annexure D. A certifcate from the Auditors of the Company confrming
compliance of conditions of Corporate Governance as stipulated in
clause 49 of the Listing Agreement with Stock Exchanges is enclosed as
Annexure E. A certifcate from Chairman that all Board members and
senior management personnel have affrmed compliance with the Code of
Conduct for the year ended March 31, 2013 is attached as Annexure F.
A Certifcate from CEO/CFO confrming the correctness of the fnancial
statements, adequacy of the internal control measures etc. is also
enclosed as Annexure G.
Management Discussion & Analysis
Notes on Management Discussion & Analysis of the fnancial and business
performance of the Company have been given separately and form part of
this Report.
Corporate Sustainability Report
Your Company, being committed to address environmental issues and to
discharge its corporate social responsibility, is publishing its
Corporate Sustainability Report, duly audited by Ernst & Young, and
conforming to Global Reporting Initiative (GRI) G3.1 Reporting
Guidelines. The Report is being sent in CD to all the shareholders
alongwith the Annual Report of the Company. The same shall also be
available on the website of the Company www.jubilantindustries.com.
Risk Management
Today''s business environment remains challenging for the Corporate
World and risk management retains its high position on every
organization''s agenda. The Company has several risk factors which could
potentially impact its business objectives, if not perceived and
mitigated in a timely manner. With an effective risk management
framework in place, the Company looks at these risks as challenges and
opportunities to create value for its stakeholders. With its
established processes and guidelines in place, combined with a strong
oversight and monitoring system at the Board and senior management
levels, the Company has a robust risk management strategy in place.
The senior management team sets the overall tone and risk culture of
the organization through defned and communicated corporate values,
clearly assigned risk responsibilities, appropriately delegated
authority, and a set of processes and guidelines which are presented to
the Board especially with respect to risk assessment and risk
minimization procedures. As an organization, it promotes strong
ethical values and high levels of integrity in all its activities,
which in itself is a signifcant risk mitigator.
With the growth strategy in place, risk management holds the key to the
success of our journey of continued competitive sustainability in
attaining desired business objectives.
A detailed note on Risk Management is given as part of "Management
Discussion & Analysis".
Human Resources
Jubilant Industries Limited  that''s all of us!
It''s our strategy to use integrated HR instruments throughout the
corporation to fnd, bind and support our employees in the right
positions at the right time. As a result  and in view of the current
megatrend of globalizing and internationalizing business processes Â
Our HR systems are integrated into strategy development and operative
processes as change agents and business partners for employees that are
critical for success, contributing to the growth strategy, supporting
employer - employee relationships and using innovative HR instruments
to Attract, Retain, Develop and Excite JLITE. The Company and its
wholly owned subsidiary has a total workforce of around 2500
resourceful employees spread across its corporate offce in Noida,
manufacturing units and sales and distribution offces / stores across
India that witness their development aligned to the growth of the
organization.
Jubilant Industries encourages leadership and commitment through
measures to maintain management quality, employee productivity, and
employee satisfaction within a neutral and congenial organization
culture.
As a modern company, Jubilant Industries ensures strategic HR and
management development that is oriented by the business targets as well
as social and economic changes. Our effective HR practices remain
fexible, close to the market and mobile to maintain the success of all
of its employees in developing their skills  using an integrative
approach. Competencis such as performance, result orientation,
assertiveness, leadership, reliability, communication and creativity
form the basis of these. Building upon these competencies, performance
management, talent management, training and development, retention
management and culture management are the mainstays of HR and
management development within our Company. All these aspects work
together, are interlinked and thereby contribute to the overall Company
strategy. We have continued to preserve pleasant employer  employee
relationship and there have been no instances of major strikes,
lockouts or any other disruptive labour disputes. We continue to
provide better range of benefts to our employees and their dependents,
addressing their social security needs.
Jubilant Industries invests in excellent training programs for its
employees. We ensure that people across the company experience in-depth
trainings in a wide range of commercial, technical and business role.
Our effective HR training and development programs focus especially on
developing skill and competency. Jubilant Industries offers its nation-
wide employees a comprehensive range of different training
interventions like Young Leaders Acceleration Program, Orbit Shift,
Breakthrough Workshops, Talent & Succession Planning etc focusing on
the transfer of specifc know how and advancing each of the
participants. The aim is to sustainably support talent. Employees and
managers receive help in recognizing, enhancing and applying their
individual strengths for the beneft of the organization. We believe
that each individual success contributes to the sustained success of
the entire Jubilant Bhartia Group.
With intensive collaboration, Human Resources at Jubilant Industries
bind performers as they are constantly presented with challenging,
diverse career opportunities within the Company. For the Company as a
whole, we ensure fexible, sustainable HR and succession planning with
an increasingly business orientation. The maxim of our values -
"Caring, Sharing and Growing", brings together all its employees and
other stakeholders to the range of Human Resource interface to the
internal and the external world.
The conviction of Human Resource to thrive with the prosperity of the
Organization will defnitely comprehend with more rigors in meeting and
beating all business challenges. This is how we are determined to set
up the win-win situation across all businesses and functions at
Jubilant Industries Limited.
Awards and Accolades
During the Year 2012-13, the Company''s Gajraula Unit won the
prestigious "Quality Excellence Award" at the Asia Pacifc Quality
summit held in Mumbai for best in class manufacturing. The Company
received the Honorable "Shriram Award" for the third time in a row by
the Fertilizer Association of India (FAI) in Annual Seminar held in
Agra. The Company won the "Silver Award" in Chemical sector for
outstanding achievement in safety management at the 11th Annual
Greentech Fire, Safety & Security 2012 Conference. The Company''s
Kapasan unit received appreciation from the District Collectorate offce
at Chittaurgarh for extending community services and environment
protection initiatives of Jubilant Industries Limited for the third
consecutive year.
Investor Services
In its endeavour to improve investor services, your Company has taken
the following initiatives:
- An Investor Section on the website of the Company
www.jubilantindustries.com has been created.
- There is a dedicated e-mail id [email protected] for sending
communications to the Company Secretary. Members may lodge their
requests, complaints and suggestions on this e-mail as well.
Green Initiatives
Your Company, being committed to policy of sustainable development, has
taken several green initiatives which include:
- Conducting Paperless Board/Committee Meetings;
- Publishing and circulating Corporate Sustainability Report in CD;
- Emailing Annual Reports and other documents to shareholders who have
opted for the same on email.
Acknowledgments
Your Directors acknowledge with gratitude the co-operation and
assistance received from the Central and State Government Authorities.
Your Directors thank the Shareholders, Banks, Customers, Vendors and
other business associates for the confdence reposed in the Company and
its management and look forward to their continued support. The Board
places on record its appreciation for the dedication and commitment of
the employees at all levels, which has continued to be our major
strength.
For and on behalf of the Board
Place : Noida Hari S. Bhartia
Date : May 8, 2013 Chairman
Mar 31, 2012
The Directors have pleasure in presenting the Sixth Annual Report and
Audited Accounts for the year ended March 31, 2012.
Financial Results
(Rs.in million)
Particulars Year ended Year ended
March 31, March 31,
2012 20111
Revenue from Operations 2,159.85 5,370.61
Other Operating Income 2.71 8.10
Total Revenue from Operations 2,162.56 5,378.71
Total Expenses 1,829.17 4,933.23
Operating Profit 333.39 445.48
Other Income 16.75 18.39
EBITDA (including Other Income) 350.14 463.87
Depreciation & Amortisation 28.40 57.53
Expenses
Interest (Finance Cost) 4.04 2.24
Profit before Exceptional Items 317.70 404.10
& Tax
Exceptional Items 11.06 -
Tax Expenses 49.13 118.02
Reported Net Profit for the year 257.51 286.08
Balance brought forward from 1,212.94 984.80
previous year
AMOUNT AVAILABLE FOR 1,470.45 1,270.88
APPROPRIATION
Which the Directors have
appropriated as follows:
- Proposed Dividend on Equity - 24.04
Shares
- Tax on Distributed Profits on - 3.90
Equity Shares
- Transfer to General Reserve - 30.00
Balance to be carried forward 1,470.45 1,212.94
Operations
The financial results for the year ended March 31, 2012 have been
prepared after giving effect to the Scheme of Arrangement from the
appointed date viz. April 1, 2011 and in accordance with revised
Schedule VI to the Companies Act, 1956. Accordingly, the figures of the
previous year ended March 31, 2011, wherever necessary, have also been
regrouped/reclassified. Therefore, they are strictly not comparable
with the figures of year under review.
Standalone Financials
In FY2012 total revenue from operations was Rs.2162.56 million. EBITDA
for the year stood at Rs.350.14 million, PAT at Rs.257.51 million and EPS
at Rs.21.73.
Consolidated Financials
In FY2012 the consolidated revenue from operations was Rs.9958.09
million. EBITDA for the year stood at Rs.192.99 million. Loss after taxes
amounted to Rs.567.00 million and EPS on consolidated basis stood at
(Rs.47.85).
Dividend
In view of the losses on a consolidated basis and in order to conserve
resources for future business activities, your Directors do not
recommend any dividend for the year ended March 31, 2012.
Scheme of Arrangement
During the year under review, your Board of Directors approved a Scheme
of Arrangement (the Scheme) amongst Enpro Oil Private Limited (EOPL),
Jubilant Industries Limited (the Company) and Jubilant Agri and
Consumer Products Limited (JACPL) which was subsequently approved by
shareholders and creditors. The Scheme was also sanctioned by the
Hon'ble High Court of Judicature at Allahabad vide its order dated
January 16, 2012. The Scheme became effective on February 1, 2012.
Pursuant to the Scheme, the Agri and Consumer Products Business (ACP
Undertaking) of the Company has been transferred to JACPL, by way of
slump sale, for a lump sum consideration discharged by JACPL by issue
of redeemable preference shares to the Company and the business of sale
of consumer products (including in a Mall or Hyper-market format),
wholesale cash and carry trade and leasing (Demerged Undertaking) of
EOPL has been demerged and vested with JACPL in consideration of
allotment of equity shares by the Company to the shareholders of EOPL
with effect from the appointed April 1, 2011.
Capital Structure
Authorised Share Capital
During the year the authorised share capital of the Company was
increased from Rs.100 million to Rs.150 million.
Paid-Up Share Capital
In accordance with the Scheme of Arrangement referred to in preceeding
paragraph, 38,35,348 equity shares of Rs.10 each fully paid up were
issued and allotted to the shareholders of EOPL on March 9, 2012, as
per the entitlement ratio of 10:22, i.e. for every 22 (Twenty Two)
equity shares of face value Rs.10 each held in EOPL, as on the Demerger
Record Date (February 27, 2012), the equity shareholders of EOPL were
alloted 10 (Ten) equity shares of face value of Rs.10 each in the
Company.
The new equity shares of the Company were listed on Bombay Stock
Exchange Limited (BSE) and National Stock Exchange of India Limited
(NSE) and were admitted for trading on Bombay Stock Exchange Limited
(BSE) and National Stock Exchange of India Limited (NSE) w.e.f. April
3, 2012.
The paid-up capital as at March 31, 2012 stands at Rs.118.49 million
comprising of 118,49,404 equity shares of Rs.10 each fully paid up as
compared to Rs.80.14 million comprising of 80,14,056 equity shares of Rs.10
each fully paid up as at the end of the previous year.
Fixed Deposits
Your Company did not invite/accept any Fixed Deposit from the public
during the year under review.
Subsidiary
During the year under review, the name of Jubilant Agri and Retail
Private Limited, wholly owned subsidiary of the Company, was changed to
Jubilant Agri and Consumer Products Private Limited w.e.f. May 6, 2011.
It was converted into a public limited Company w.e.f. May 10, 2011.
In terms of the scheme referred to in the preceeding paragraph, JACPL
allotted 16,48,817 10% Optionally Convertible Non- Cumulative
Redeemable Preference Shares of Rs.10/- each at premium of Rs.990/- per
share to the Company towards discharge of lump sum consideration of
Rs.164,88,17,559 for slump sale of ACP undertaking by the Company to
JACPL.
Further, in terms of Clause 49 of the listing agreement, JACPL has
become a material non-listed Indian Subsidiary Company as at March 31,
2012.
Consolidated Financial Statements
The Consolidated Financial Statements, in terms of Clause 32 of the
Listing Agreement and prepared in accordance with AS-21 as specified in
Companies (Accounting Standards) Rules, 2006 forms part of the Annual
Report.
Particulars required as per Section 212 of the Companies Act, 1956
In terms of the general exemption granted by the Government of India
vide its general circular no. 2/2011 dated February 08, 2011, from
attaching the Directors' Report, Balance Sheet, Profit & Loss Account
and other particulars of the subsidiaries, the Board of Directors in
its meeting held on January 14, 2012 decided not to attach Directors'
Report, Balance Sheet, Profit & Loss Account and other particulars of
JACPL, the Subsidiary Company with the Annual Report of the Company
this year.
The Company will make available the Annual Accounts of the subsidiary
company and other related information upon request by any member of the
Company or its subsidiary company. The Annual Accounts of the
subsidiary company will also be kept open for inspection at the
registered office of the Company and the subsidiary company during
business hours.
Auditors
M/s.K. N. Gutgutia & Co., Chartered Accountants, [ICAI Registration
Number - 304153E] Auditors of the Company retire at the ensuing Annual
General Meeting and offer themselves for re-appointment. They have
confirmed that their re-appointment, if made, shall be within the
limits laid down in Section 224 (1B) of the Companies Act, 1956.
Cost Auditors
Pursuant to Section 233B of the Companies Act, 1956, the Central
Government has prescribed audit of cost records for certain products.
Based on the recommendations of the Audit Committee, and subject to the
approval of the Central Government, the Board of Directors had
appointed M/s. J. K. Kabra & Co., Cost Accountants, [Firm Registration
Number - 9] as Cost Auditors of the Company, for the financial year
2011-12.
The relevant cost audit reports for the financial year 2010-11 for
Chemicals and Fertilizers were filed on September 23, 2011, against the
due date of September 27, 2011.
Directors
During the year, Mr. Shamit Bhartia, Mr. Videh Kumar Jaipuriar and Dr.
Ashok Misra were appointed as Additional Directors of the Company who
shall hold the office upto the date of ensuing Annual General Meeting
of the Company.
Mr. Ananda Mukherjee resigned from the office of CEO & Whole Time
Director of the Company w.e.f. January 31, 2012.
The Board places on record its deep sense of appreciation for the
valuable contribution made by him towards the growth of the Company
during his tenure.
Mr. Videh Kumar Jaipuriar was appointed as CEO & Whole Time Director of
the Company w.e.f. February 1, 2012, subject to necessary approvals.
Notices under Section 257 of the Companies Act, 1956 have been received
from the members proposing the candidature of Mr. Shamit Bhartia, Mr.
Videh Kumar Jaipuriar and Dr. Ashok Misra as Directors.
In accordance with the provisions of the Act and the Articles of
Association of the Company, Mr. Hari S. Bhartia and Mr. Priyavrat
Bhartia retire by rotation at the forthcoming Annual General Meeting
and being eligible, offer themselves for re- appointment.
Directors' Responsibility Statement
In compliance of Section 217 (2AA) of the Companies Act, 1956, the
Directors of your Company, based on the representation received from
the management, confirm:
- that in the preparation of annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures.
- that 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 March 31, 2012 and of the profit of the Company
for the year ended March 31, 2012.
- that 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.
- that the Directors have prepared the annual accounts on a going
concern basis.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
Information relating to Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo, as required 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, is
given in Annexure A and forms part of this Report.
Employees
The particulars of employees, as required under section 217(2A) of the
Companies Act 1956, read with the Companies (Particulars of Employees)
Rules, 1975, are given in Annexure B and forms part of this Report.
Corporate Governance
A detailed report on Corporate Governance is attached to this Report as
Annexure C. A certificate from the Auditors of the Company confirming
compliance of conditions of Corporate Governance as stipulated in
clause 49 of the Listing Agreement with Stock Exchanges is enclosed as
Annexure D. A certificate from Chairman that all Board members and
senior management personnel have affirmed compliance with the Code of
Conduct for the year ended March 31, 2012 is attached as Annexure E.
A Certificate from CEO/CFO confirming the correctness of the financial
statements, adequacy of the internal control measures and reporting of
the matters to the Statutory Auditors and Audit Committee is also
enclosed as Annexure F
Management Discussion & Analysis
Notes on Management Discussion & Analysis of the financial and business
performance of the Company have been given separately and forms part of
this Report.
Corporate Sustainability Report
Your Company, being committed to address environmental issues and to
discharge its corporate social responsibility, is publishing its
Corporate Sustainability Report, duly audited by Ernst & Young, and
conforming to Global Reporting Initiative (GRI) G3.1 Reporting
Guidelines. Like last year, this year too, the Report is being sent in
CD to all the shareholders alongwith the Annual Report of the Company.
The same shall also be available on the website of the Company www.
jubilantindustries.com.
Risk Management
Today's business environment, remains challenging for the Corporate
World and risk management retains its high position on every
organization's agenda. The Company has several risk factors which could
potentially impact its business objectives, if not perceived and
mitigated in a timely manner. With an effective risk management
framework in place, the Company looks at these risks as challenges and
opportunities to create value for its stakeholders. With its
established processes and guidelines in place, combined with a strong
oversight and monitoring system at the Board and senior management
levels, the Company has a robust risk management strategy in place.
The senior management team sets the overall tone and risk culture of
the organization through defined and communicated corporate values,
clearly assigned risk responsibilities, appropriately delegated
authority, and a set of processes and guidelines which are presented to
the Board especially with respect to risk assessment and risk
minimization procedures. As an organization, it promotes strong
ethical values and high levels of integrity in all its activities,
which in itself is a significant risk mitigator.
With the growth strategy in place, risk management holds the key to the
success of our journey of continued competitive sustainability in
attaining desired business objectives.
A detailed note on Risk Management is given as part of "Management
Discussion & Analysis".
Human Resource Management
The Company believes in an open, fair and transparent culture and
stands by its promise of Caring, Sharing, Growing and making efforts to
make it one of the best places to work with.
The skill and adeptness with which the Leadership team led your Company
was duly acknowledged through "Amity's HR Excellence" award for
leadership builders - 2011 during the 8th Annual Global HR Summit held
at Amity University Campus, Noida.
The Company keeps its promise alive in the hearts of everyone in this
organization, through a range of Human Resources interface to the
internal and the external world - Commitment to community programs
through Jubilant Bhartia Foundation, participation in local employment
exchange job-fair, tying up with leading hospitals for employee
wellness, health and spiritual talk by experts etc.
The Company enjoys cordial relations with employees and there have been
no instances of strikes, lockouts or any other disruptive labour
disputes. The wages and benefits of the unionized employees are
generally established by collective bargaining agreements.
A detailed note on HR Management is given as part of "Management
Discussion & Analysis".
Awards and Accolades
During the Year 2011-12, your Company won the prestigious "Corporate
Leadership Award" at the 4th Agricultural leadership summit for
consistent business performance and contribution to Agricultural
sector. The Company's Gajraula Unit received the Economic Times-Frost
and Sullivan India Manufacturing Gold Award in appreciation of the
journey in building a globally competitive and lean world class
organization. The Kapasan unit was adjudged runners up in the
environment protection in the SSP plant category at Fertilizer
Association of India (FAI) Golden Jubilee Award. This is recognition
for the environment protection Initiatives of Jubilant Industries
Limited for the second consecutive year. The Company also won the
"Amity HR Excellence "award for leadership builders conferred by Amity
University during the 8th Annual Global HR Summit.
Investor Services
In its endeavour to improve investor services, your Company has taken
the following initiatives:
- An Investor Section on the website of the Company
www.jubilantindustries.com has been created.
- A dedicated e-mail id [email protected] for sending
communications to the Company Secretary has been made effective.
Members may lodge their requests, complaints and suggestions on this
e-mail as well.
Green Initiatives
Your Company, being committed to policy of sustainable development, has
taken several green initiatives which includes :
- Conducting Paperless Board Meetings;
- Publishing and circulating Corporate Sustainability Report in CD;
- Emailing Annual Reports to shareholders who have opted for the same
on email.
Acknowledgments
Your Directors acknowledge with gratitude the co-operation and
assistance received from the Central and State Government Authorities.
Your Directors thank the Shareholders, Banks, Customers, Vendors and
other business associates for the confidence reposed in the Company and
its management and look forward to their continued support. The Board
places on record its appreciation for the dedication and commitment of
the employees at all levels, which has continued to be our major
strength.
For and on behalf of the Board
Place : Noida Hari S. Bhartia
Date : May 9, 2012 Chairman
Mar 31, 2011
Dear Members,
The Directors have pleasure in presenting the Fifth Annual Report and
Audited Accounts for the year ended March 31, 2011.
Financial Results
(Rs.in million)
Year ended Year ended
March 31, March 31,
2011 2010
sales and other income 5816.21 0.1
Net sales 5539.90 -
EBITDA 468.27 (0.1)
Interest 6.64 -
PBDT 461.63 (0.1)
Depreciaton 57.53 -
PBT 404.10 (0.1)
Provision for Taxaton 118.02 -
PAT 286.08 (0.1)
Proft brought forward from 984.80 -
previous year
PROFIT AVAILABLE FOR 1270.88 (0.1)
APPROPRIATION
Which the Directors
have appropriated as follows:
- proposed Dividend on equity 24.04 -
shares
- tax on Dividend on equity shares 3.90 -
- transfer to General Reserve 30.00 -
Balance to be carried forward 1212.94 (0.1)
Operations
Jubilant Industries Limited is a part of the Jubilant Bharta Group and
is engaged in the business of Agri and Performance Polymers.
The Hon'ble High Court of Allahabad, vide its orders dated October 28,
2010 and November 8, 2010 sanctioned a Scheme of Amalgamation & Demerger
("the Scheme") amongst Jubilant Life Sciences Limited ("JLL"), Jubilant
Industries Limited ("the Company") and others, pursuant to which the
Agri Products Division, Performance Polymer Division and IMFL Division
of JLL were demerged and transferred to the Company with efect from
commencement of business on April 1, 2010 i.e. the Appointed Date under
the scheme.
The Scheme became effective from November 15, 2010.
The Company's diversified portolio includes broad range of technology
based products and solutons to customers both nationally as well as
globally. The Company is India's global supplier of Solid PVA (SPVA) &
Vinyl Pyridine Latex (VP Latex) and currently holds number 1 positon in
India and ranks amongst top 3, globally. The Company's "Ramban" is
also one of the top brands in the country producing Single Super
Phosphate (SSP) besides other agri- products.
The Company has world-scale capacites for SSP, VP Latex & SPVA and
enjoy global leadership rankings in each of the categories. The
consumer brand "Jivanjor" is the 2nd largest brand in India in consumer
adhesives and a signifcant player in the Indian wood fnishes market.
The Company operates from 5 locations across India and has dedicated
R&D centres.
The above financial results for the year ended March 31, 2011 are afer
giving the effect of the above said scheme of Amalgamation & Demerger
and accordingly are not strictly comparable with the figures of previous
year.
During the year ended March 31, 2011, the revenues closed at Rs.5539.90
million. The Agri Products business contributed Rs.2613.31 million and
the Performance Polymers business contributed Rs.2570.33 million majorly
to the total revenues. the company has a distribution network all over
the country.
the EBITDA for the year stood at Rs.468.27 million. Even though the input
cost has increased, the Company is well placed to protect its margins
and have been able to pass on the increases to the customers. the pAt
stood at Rs.286.08 million after depreciation charge of Rs.57.53 million on
a gross asset base of Rs.1601.58 million, with minimal interest cost of
Rs.6.64 million on a debt of Rs.42.33 million and taxes of Rs.118.02 million,
depicting a tax rate of 29.21 % for the year.
The Board of Directors in its meeting held on April 29, 2011 have
consttuted a Committee of Directors to explore opportunities for
potental restructuring of Company's Agri and Performance Polymers
businesses with the objective of creating business focus and also to
evaluate various new business opportunities to expand and grow the
Company so as to enhance shareholder value.
Dividend
Your Directors recommend a dividend of 30% i.e. Rs.3 per fully paid up
equity share of Rs.10 each for the year ended March 31, 2011. This will
absorb Rs.27.94 million (inclusive of tax) based on existing capital.
Appropriatons
it is proposed to transfer Rs.30.00 million to General Reserve and retain
the balance in Profit and Loss Account.
Capital Structure
Authorised capital
During the year the authorised share capital of the Company was
increased from Rs.1.0 million to Rs.100 million.
paid-Up capital
In accordance with the Scheme 79,64,056 equity shares of Rs.10 each
fully paid up were issued and allotted to the shareholders of JLL on
November 27, 2010, as per the entitlement ratio of 1:20, i.e. for every
20 (twenty) equity shares of face value Rs.1 each held in JLL, as on
the Demerger Record Date (November 26, 2010), the equity shareholders
of JLL were issued 1 (one) equity share of face value of Rs. 10 each in
the company.
The paid-up capital as at March 31, 2011 stands at Rs. 80.14 million
comprising of 80,14,056 equity shares of Rs. 10 each fully paid up.
Listing of Equity Shares
The equity shares of the Company were listed and admitted for trading
on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of
India Limited (NSE) w.e.f. February 14, 2011.
Fixed Deposits
Your Company did not accept Fixed Deposits from the public during the
year.
Name Change
During the year under review, the name of the Company was changed from
'Hitech Shiksha Limited' to 'Jubilant Industries Limited' w.e.f. June
8th 2010.
Subsidiary
During the year under review, Canonical Infotech Solutions Private
Limited became the subsidiary of the Company. The Company holds 100% of
the equity share capital of the subsidiary as on March 31, 2011. The
name of Canonical Infotech Solutions Private Limited was changed to
Jubilant Agri and Retail Private Limited w.e.f March 7, 2011.
Particulars required as per Section 212 of the Companies Act, 1956
In terms of the general exemption granted by the Government of India
vide its general circular no. 2/2011 dated February 8, 2011, from
attaching the Directors' Report, Balance Sheet, Profit & Loss Account
and other particulars of the subsidiary, the same have not been
attached to this Report.
Auditors
K. N. Gutgutia & Co., Chartered Accountants, [ICAI Registration Number
- 304153E] Auditors of the Company, retire at the ensuing Annual
General Meeting and offer themselves for re-appointment. They have
confirmed that their re-appointment, if made, shall be within the
limits laid down in Section 224 (1B) of the Companies Act, 1956.
Cost Auditors
J.K. Kabra & Co., Cost Accountants, [Firm Registration Number - 9] Cost
Auditors of the Company, have confirmed that their re- appointment, if
made, shall be within the limits laid down in Section 224(1B) of the
Companies Act, 1956.
Directors
During the year, Mr. Hari S. Bhartia, Mr. Priyavrat Bhartia, Mr. Ananda
Mukherjee, Mr. R. Bupathy, Mr. Ghanshyam Dass and Mr. S.K. Roongta,
were appointed as Additional Directors of the Company and hold office
upto the ensuing Annual General Meeting.
Mr. Ananda Mukherjee was later on appointed as CEO & Whole-time
Director of the Company w.e.f. November 15, 2010.
Notice under Section 257 of the Companies Act, 1956 has been received
from a member, proposing the candidature of Mr. Hari S. Bhartia, Mr.
Priyavrat Bhartia, Mr. Ananda Mukherjee, Mr. R. Bupathy, Mr. Ghanshyam
Dass and Mr. S.K. Roongta as Directors.
Mr. R. Sankaraiah, Mr. Prakash C. Bisht and Mr. Lalit Jain resigned as
Directors during the year.
Directors' Responsibility Statement
In compliance of Section 217 (2AA) of the Companies Act, 1956, the
Directors of your Company, based on the representation received from
management, confirm:
- that in the preparation of annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures.
- that 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 March 31, 2011 and of the profit of the Company
for the year ended March 31, 2011.
- that 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.
- that the Directors have prepared the annual accounts on a going
concern basis.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
Information relating to Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo, as required 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, is
given in Annexure A and forms part of this Report.
Employees
The particulars of employees, as required under section 217(2A) of the
Companies Act 1956, read with the Companies (Particulars of Employees)
Rules, 1975, are given in Annexure B and forms part of this Report.
Corporate Governance
A separate section on Corporate Governance is attached to this Report
as Annexure C. A certificate from the auditors of the Company regarding
compliance of conditions of Corporate Governance as stipulated under
clause 49 of the Listing Agreement with Stock Exchanges is enclosed as
Annexure D. A certificate from Chairman that all Board members and
senior management personnel have affirmed compliance with the Code of
Conduct for the year ended March 31, 2011 is attached as Annexure E.
CEO/CFO certificate is enclosed as Annexure F.
Management Discussion & Analysis
Notes on Management Discussion & Analysis of the financial position of
the Company have been given separately and forms part of this Report.
Discontinuing Business
The Board of Directors in its meeting held on February 14, 2011 decided
to close the Application Polymer Business due to unviable operations.
Corporate Sustainability Report
Your Company, being commited to address environmental issues and
discharge its corporate social responsibility, is publishing for the
first time its Corporate Sustainability Report, duly audited by Ernst &
Young, and conforming to Global Reporting Initative (GRI) Guidelines.
The Report is being sent to all our shareholders.
Risk Management
Today's business environment, remains challenging for the Corporate
World and risk management retains its high position on every
organizaton's agenda. The Company has several risk factors which could
potentially impact its business objectives, if not perceived and mitigated
in a timely manner. With an effective risk management framework in place,
the Company looks at these risks as challenges and opportunites to
create value for its stakeholders. With its established processes and
guidelines in place, combined with a strong oversight and monitoring
system at the Board and senior management levels, the Company has a
robust risk management strategy in place.
The senior management team sets the overall tone and risk culture of
the organization through defined and communicated corporate values,
clearly assigned risk responsibilites, appropriately delegated
authority, and a set of processes and guidelines. The Company has laid
down procedures to inform Board members about the risk assessment and
risk minimizaton procedures. As an organizaton, it promotes strong
ethical values and high levels of integrity in all its actvites, which
in itself is a significant risk mitigator.
With the growth strategy in place, risk management holds a key to the
success of its journey of continued competitive sustainability in
attaining its desired business objectives.
A detailed note on Risk Management is given as part of "Management
Discussion & Analysis".
Human Resource Management
As of March 31, 2011, the company had over 640 employees spread across
the country in manufacturing plants, branches and corporate functions.
The relations are cordial with employees at all levels and there have
been no instances of major strikes,lockouts or any other disruptive
labour actvities. The Company provides various benefits to the
employees, addressing their social and security needs such as personal
Accident insurance, Group Term Insurance and healthcare coverage for
the employees and their dependants. The Company also offers subsidised
interest payment on housing loans, housing facilites for certain
employees at Gajraula and Nira plants, funding for schools for the
employee's children. The wages and benefits of the unionised employees
are generally established by collectve bargaining agreement. The
Company strongly believes in the philosophy of training and developing
people through various initiatives, adopting a range of tools and
methodologies. These initiatives are primarily aimed at skills and
capabilities development. It periodically measures Employee Engagement
Index and institutionalise programs related to Reward and Recognition,
Fun-at-work events and Retention of Talent through Career Planning and
Growth opportunities within the organisaton. The promise of "Caring,
Sharing, Growing" is also refected through the Employee Wellness
program under which the Company has health related talks by experts,
free consultation camps and te-ups with leading hospitals and
laboratories which ofer discounted rates to the employees and their
families.
Awards and Accolades
During the year 2010-2011, your Company won Frost & Sullivan Award for
Competitive Strategy Leadership for the year 2010, Greentech Safety Gold
Award 2011 in Chemical Sector for outstanding safety management and was
Joint Runner Up for Environment Protection for SSP Plants for the year
2009-10.
Investor Services
in its endeavour to improve investor services, your company has taken
the following initiatives:
- An Investor Section on the website of the Company www.
jubilantndustries.com has been created.
- A dedicated e-mail id viz. [email protected] for sending
communications to the Company Secretary has been made effective.
Members may lodge their complaints or suggestions on this e-mail as
well.
Acknowledgments
Your Directors acknowledge with gratitude the co-operation and
assistance received from the central and state Government Authorites.
Your Directors thank the Shareholders, Banks, Customers, Vendors and
other business associates for their confidence in the Company and its
management and look forward to their continued support. The Board wishes
to place on record its appreciaton for the dedication and commitment of
the employees at all levels, which has continued to be our major
strength.
For and on behalf of the Board
Hari S. Bhartia
Chairman
Place : Noida
Date : April 29, 2011
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