Mar 31, 2018
The Directors of your Company are pleased to present the 30th Annual Report and Audited Statement of Accounts for the financial year ended 31st March, 2018.
FINANCIAL RESULTS
(Rs. In Lac)
Year ended 31st March, 2018 |
Year ended 31st March, 2017 |
|
Total Revenue |
13,142 |
15,711 |
Total Expenses (excluding finance cost & depreciation) |
10,503 |
12,729 |
Earnings Before Finance Costs & Depreciation (EBIDTA) |
2,639 |
2,982 |
Finance Costs |
1,722 |
1,196 |
Depreciation & Amortization Expenses |
433 |
435 |
Profit Before Tax |
484 |
1,351 |
Tax Expenses |
149 |
418 |
Profit for the Year |
335 |
933 |
DIVIDEND
Despite the depressed results; the Board of Directors have recommended a dividend of '' 10% i.e. Rs.1/- per Equity Shares of Rs.10 each.
REVIEW OF RESULTS - 2017-18
Detailed overview of the company''s operations during the year under review and a discussion on the future outlook has been covered in the "Management discussion and analysis" attached as Annexure - I to this report.
FUTURE OUTLOOK
Your company is primarily engaged in Designing, Manufacturing, & Commissioning Customized / Critical Equipments/Systems for critical equipments across a wide range of various industries.
A. Process Equipments (PE) : The Company started with an opening order book of Rs.69 Cr. The Company''s order booking is mainly dependent on replacement, demand and capacity increase plans of user industries. Since the product caters to diverse industrial sectors, the demand is never consistent over the years. During the second half year, most of the user industries deferred their CAPEX Plans resulting in a delay in receipt of orders from customers both domestic and international.
PE Developments till 31.03.2018: The Company Received Rs.34 Cr. orders during the 2nd half year out of which Rs.19 Cr. were received in February / March 2018. The delayed receipt of orders left no scope for achieving significant progress in execution of the order under Percentage Completion Method of Accounting. This resulted in a substantial drop in the top line in the 3rd & 4th quarter and the unexecuted orders at the end of the year.
B. i) Food Processing Equipments: Your Company which operates mainly in Tea industry started with an order book of Rs.4 Cr. as at 01.04.2017. The progress of orders was slow due to draught and stagnation in the tea industry but resurgence of the domestic tea industry from second quarter of financial the year resulted in making up the order book. As on 31.03.2018 the unexecuted orders in hand was Rs.18 Cr.
ii) Continuous Withering System (CWS) :
As you are aware your Company developed and commissioned a Continuous Withering System (CWS) in one of the group companies last year. During the year under review the Company received an order for CWS from an overseas group company. The order received during 2016-17 was successfully commissioned during the year under review. The projects involve redesign of certain key equipments in our existing system (due to difference in the quality of the Tea caused by climatic conditions abroad). Your Company successfully completed supply / erection and commissioning of this system during 2017-18.
Successful working of our CWS in the African region will give definite marketing advantage to your Company. Further orders for our dryers along with CWS are expected during the year from Africa. It is to be stated that your Company has been able to give better quality and cost effective solution for withering and drying of Tea in the African market.
Your Company is also taking necessary steps to re-establish itself in Coconut Dryer Segment both in India and abroad. The results are encouraging.
AUDITORS
a) Statutory Auditors : At the AGM on 25.09.2017, M/s. S R B C & CO LLP, Chartered Accountants (Firm''s Registration no. : 324982E / E300003 ) were appointed as Statutory Auditors as per the provisions of Section 139(2) of the Companies Act, 2013 and the rules framed thereunder, upto the conclusion of Annual General Meeting to be held in 2022.
b) Internal Auditors : M/s. SPAN & Associates, Chartered Accountants were appointed as internal auditors by the Board of directors for 2017 -18 and they have conducted internal audits periodically and submitted their reports to the Audit Committee. Their reports have been reviewed by the Statutory Auditors and the Audit Committee. Their reappointment is for year 2018-19 has been proposed.
c) Cost Auditors : Your Company appointed M/s. D. Sabyasachi& Co. ( FRN : 00369 ) Cost Accountants as Cost Auditors of the Company for the Financial Year 2017-18 and their appointment is proposed for 2018 - 19 at the remuneration set out in the notice of AGM and explanatory statement thereto.
d) Secretarial Auditors : M/s. Dhrumil M. Shah, Mumbai were appointed as secretarial auditor of the Company for the Financial Year 2017-18, as required under section 204 of The Companies Act, 2013 read with the applicable rules. The Secretarial Audit Report for 2017 - 18 forms part of the Annual Report as Annexure - VII.
DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to the provision of Section 134 (5) of the Companies Act, 2013, the Board of Directors of your Company hereby confirms :
1) that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departure;
2) 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 the end of the financial year and of the Profit and Loss of the Company for the period;
3) 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, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
4) that the Directors have prepared the annual accounts on a going concern basis.
5) 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.
6) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
CORPORATE GOVERNANCE
Report on Corporate Governance has been attached herewith as Annexure - II pursuant to the provisions of Regulation 34(3) and 53(f) read with schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Management discussion and Analysis report which outlines the salient points in the company''s performance human resources and other salient points is attached as Annexure - I.
EMPLOYEE RELATIONS
Employees'' relations were cordial throughout the year (there was some unrest in the second half). Several HR, IR initiatives including several training programs to improve employee relations and commitments have been initiated during the year and have been well accepted.
The tripartite long term agreement with the bargainable employees of your Company has expired during the year. Keeping in mind the long-term vision of the Company and its sustainability, the management has worked out a strategy of maximum outreach to all the employees by regular communication of the business plans and delivery requirements. Along with this, a well thought fall back plan has been put in place to maintain continuity at cost.
Both these together has ensured that relations remained cordial throughout the year and the strategy of the Company has been well accepted.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo as required to be disclosed pursuant to Section 134 (3) (m) of the Companies Act, 2013 read with The Companies (Accounts) Rules, 2014, as amended, is appended to this Annual Report as Annexure "VIII" and forms part of this Directors'' Report.
ADEQUACY OF INTERNAL CONTROL SYSTEM WITH RESPECT TO THE FINANCIAL STATEMENTS
The Company has a comprehensive system of internal control which is being strengthened. The internal control system is also subject to review by auditors.
The Company has appointed a firm of auditors for conducting internal audit on a half yearly basis and the report is considered by the Audit Committee of the Board headed by a Non-executive Independent Director.
DIRECTORS
Mr.Supriya Mukherjee continued as Managing Director of the Company during the year, as per terms of appointment approved by members. Board of directors had reappointed Mr. Mukherjee as Managing Director for a tenure of one year since 01.04.2017 at the same terms of remuneration, which was approved by members of the Company at AGM on 25th September, 2017.
Mr.SubirChaki was appointed as an additional director by the Board in their meeting held on 13th November, 2017. In view of the rich experience of Mr.SubirChaki, he was designated as Whole Time Director (Operations) w.e.f. 13th November, 2017. In their meeting held on 14th February, 2018, Board resolved to appoint Mr.SubirChaki as Managing Director w.e.f 01-04-2018 consequent to the retirement of Mr.Supriya Mukherjee on 31-03-2018 on completion of his tenure, subject to the approval of the members.
Mr.AmritanshuKhaitan, director retires by rotation pursuant to Section 152 of The Companies Act, 2013 at the ensuing Annual General Meeting of the Company and being eligible, offers himself for re-appointment.
DECLARATIONS BY INDEPENDENT DIRECTORS
Necessary declarations from all the Independent Directors of the Company, confirming that they meet the criteria of independence as prescribed, have been received.
KEY MANAGERIAL PERSONNEL
During the year 2017 - 18, following officials continued as Key Managerial Personnel, pursuant to section 203 of The Companies Act, 2013 :
i. Mr.Supriya Mukherjee, Managing Director
ii. Mr.SubirChaki , Whole Time Director
iii. Mr. Suresh Shenoi (A. Suresh), Chief Financial Officer
iv. Mr.ArvindBajoria, Company Secretary
BOARD EVALUATION
Securities Exchange Board of India (SEBI) vide its circular no. SEBI /HO /CFD /CMD /CIR /P /2017/004 dated 5th January, 2017 had issued a guidance note on Board Evaluation which inter alia contains indicative criterion for evaluation of the Board of Directors, its Committees and the individual members of the Board.
Pursuant to the new Evaluation Framework adopted by the Board, the Board evaluated the performance of the Board, its Committees and the Individual Directors for the financial year 2017 - 18. After the evaluation process was complete, the Board was of the view that the performance of the Board as a whole was adequate and fulfilled the parameters stipulated in the evaluation framework. The Board also ensured that the Committees functioned adequately and independently in terms of the requirements of the Companies Act, 2013 and the Listing Regulations and at the same time supported as well as coordinated with the Board to help in its decision making. The individual Directors'' performance was also evaluated and the Board was of the view that the Directors fulfilled their applicable responsibilities and duties as laid down by the Listing Regulations and the Companies Act, 2013 and at the same time contributed with their valuable knowledge, experience and expertise to grab the opportunity and counter the adverse challenges faced by the Company during the year.
HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Your Company has no holding or subsidiary company. Williamson Magor& Company Limited is holding 4319043 equity shares constituting 32.58% of total shareholding of the Company, so it is an associate company within the meaning of section 2 (6) of The Companies Act, 2013.
RELATED PARTY TRANSACTIONS
Your Board has developed and approved a Related Party Transactions Policy for purposes of identification and monitoring of related party transactions and the same has been displayed on the Company''s website at http:// www.kilburnengg.com/company-policy-main.
The Statement in Form AOC -2 containing the details of the Related Party Transactions pertaining to contracts with Related Parties forms a part of this Report as Annexure - IX.
MANAGERIAL REMUNERATION
Details of the ratio of the remuneration of each director to the median employee''s remuneration and other details as required pursuant to Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are as per annexure - X.
Mr.Supriya Mukherjee, Managing Director and Mr.SubirChaki Whole Time Director were two Executive Directors in receipt of remuneration, and remuneration details are available in the corporate governance details attached to this directors'' report.
VIGIL MECHANISM
The Company has formulated a vigil mechanism for Directors and employees of the Company to report concerns about unethical behaviour, actual or suspected fraud or violation of the company''s code of conduct or ethics policy. The VIGIL MECHANISM is available on the website of Company and can be accessed at http://www. kilburnengg.com/company-policy-main.
REMUNERATION POLICY
The Company has formulated a Remuneration Policy for Directors, Key Managerial Personnel and employees of the Company to ensure that adequate remuneration paid to attract, retain and motivate the senior management employees to run the company successfully. The Policy is available on the website of the Company at http:// www.kilburnengg.com/company-policy-main/ and also annexed herewith as Annexure - V.
RISK MANAGEMENT
Directors have adopted risk management policy to identify the risks involved in all activities of the Company. The main objective of this policy is to ensure sustainable business growth and to promote a pro-active approach in identifying, reporting, evaluating and mitigating risks associated with the business. The policy guides the board in identification of various business risks and to take appropriate steps to mitigate the same.
The Company has constituted Corporate Social Responsibility (CSR) Committee in 2016-17 in compliance with provisions of Section 135 of the Companies Act 2013 and SEBI Listing Regulations, with Mr.Manmohan Singh (Chairman), Mr.GobindSaraf (Member) and Mr.Supriya Mukherjee (Member). The CSR Committee laid down the CSR policy of the Company which can be accessed at http://www.kilburnengg.com/ company-policy-main/. The Company made a total CSR expenditure amounting to Rs.18.60 Lac (through various implementing agencies) during the FY : 2017-18. The details of said expenditure are given in Annual Report on CSR Activities, attached herewith as Annexure - IV in the form prescribed under the Companies ( Corporate Social Responsibility Policy ) Rules, 2014.
EXTRACT OF THE ANNUAL RETURN
The extract of the annual return in Form No. MGT - 9, as per annexure - VI forms part of the Board''s report.
OTHER DISCLOSURES
During the year under review:
a. There were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
b. Your Company has not accepted any deposit from the public falling within the ambit of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
c. There were no significant or material orders passed by the Regulators or Courts or Tribunals which impact the going concern status and Company''s operations in future.
COLLABORATORS
The Directors place on record its sincere appreciation to all its Collaborators for extending their valuable support and co-operation.
ACKNOWLEDGEMENT
The Directors wish to convey their appreciation to their Customers, Bankers, Dealers, Suppliers, Stock Exchanges, Government and all other Stakeholders for the excellent assistance and cooperation. The Directors'' also thank all the employees of the Company for their valuable service and support during the year.
For and on behalf of the Board
Place : Kolkata AdityaKhaitan
Date : 13th August, 2018 Chairman
Mar 31, 2016
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2016
The Directors of your Company are pleased to present the 28th Annual Report and Audited Statement of Accounts for the financial year ended 31st March, 2016.
FINANCIAL RESULTS
(Rs. In Lac)
Year ended 31st March, 2016 |
Year ended 31st March, 2015 |
|
Revenue from Operations |
13,508 |
12,069 |
Profit before tax |
930 |
582 |
Tax Expenses |
137 |
168 |
Profit after tax |
793 |
414 |
Balance brought forward from previous year |
5,807 |
5,405 |
Amount available for appropriation |
6,600 |
5,807 |
Less: Appropriations |
319 |
- |
Balance carried forward to Balance Sheet |
6,281 |
5,807 |
DIVIDEND
In view of the improved performance of the Company the Board of Directors recommend a Dividend of 20% i.e. Rs. 2.00 per equity share of Face Value of Rs. 10/- for the Financial Year 2015-16. The dividend pay-out amounts to Rs. 319 Lac including dividend distribution tax.
REVIEW OF OPERATIONS - 2015-16
As you are aware your Company is primarily engaged in designing, manufacturing and commissioning customized equipment/ systems for diverse applications. The Company''s sales registered growth by over 12% during the year. Profit Before Tax (PBT) increased to 7% against 5 % on revenue during the previous year. This was mainly due to the Company''s executing orders of value added products.
ORDER BOOK (Process Equipment)
Your Company has succeeded in securing good quality, value added / technology based orders for its specialized/ customized equipment / systems. Additional investment towards Capex in certain industrial sectors including Oil & Gas is expected to help the Company to book substantially higher level of orders for its products during the current year.
Some of the orders which have been received and are being executed during the year under review are :
-Rotary Calciner for Soda Ash Industries including 800 Tons capacity.
-IUG Systems for offshore platforms.
-Fluidised Bed Dryer cum Cooler
-Rotary Dryers, Coolers, Granulators and Lump Crushers from a reputed Fertilizer Company
-Conveyor Dryers & Rotary Oven for food industries.
Total unexecuted orders as on 31st March 2016 stood at Rs. 94 Cr. (Previous Year Rs. 71 Cr.)
FUTURE OUTLOOK
Your company operates primarily in two divisions viz. Process Equipment and Tea Drying Equipment. Future outlook for process equipments based on orders under execution and expected orders under negotiation is encouraging. The tea drying sector has been subdued during the year but is expected to improve. We expect to maintain the trend of overall improved performance in the current and following year particularly in view of projected order inflow for value added products both from the domestic and export market.
A detailed review of the operations is incorporated in the Management Discussion and Analysis Report in Annexure A which forms part of this Report.
MATERIAL CHANGES & COMMITMENTS DURING THE YEAR
The Directors at their meeting on 31st March 2016 have decided to amalgamate engineering Companies viz. McNally Bharat Engineering Company Ltd. and EMC Limited along with their subsidiaries with your Company.
Based on report of a committee of officials from all amalgamating Companies a scheme for amalgamation was formulated and approved by the Board of Directors of respective Companies. Further, based on a valuation report made by an independent Chartered Accountant and fairness report given by an independent merchant banker, Share exchange ratio was finalized which will be implemented after obtaining necessary approvals.
The core objective of the merged entity will be to emerge as a total engineering solution provider with comprehensive manufacturing, Construction and Resource Management capability, which will not only improve its marketability but will also lead to multiple opportunity creation. Each constituent of the merged entity will bring into the common pool their list of unique clientele. Thus the common pool will be able to compile a combined list of niche customers who can now be approached with huge expanse of service range.
The scheme will facilitate debt consolidation which will improve the debt servicing abilities through improved cash flows. Superior asset backing coupled with healthier liquidity will lead to improved gearing which will be encouraging for banks and institutions.
The draft scheme of amalgamation has received approval from the Competition Commission of India and is currently awaiting approvals from other regulatory bodies. The merger will be effective from the date of high court approval.
AUDITORS
a) Statutory Auditors : M/s Deloitte Haskins & Sells (Firm''s Registration No. : 117364W), Statutory Auditors of the Company hold the appointment for a term of three years upto 2017 and their appointment is subject to ratification by members at the ensuing Annual General Meeting. They have confirmed their eligibility to the effect that their re-appointment, if made, would be within the prescribed limits under the Act and that they are not disqualified for continuation as Statutory Auditors.
b) Internal Auditors : M/s. SPAN & Associates, Chartered Accountants were appointed as internal auditors by the Board of directors for 2015 - 16 and they have conducted internal audits periodically and submitted their reports to the Audit Committee. Their reports have been reviewed by the Statutory Auditors and the Audit Committee.
c) Cost Auditors : Your Company appointed M/s. D. Sabyasachi & Co. (FRN : 00369) Cost Accountants as Cost Auditors of the Company for the Financial Year 2015-16 and their appointment is proposed for 2016 - 17 at the remuneration set out in the notice of AGM and explanatory statement thereto.
d) Secretarial Auditors : M/s. Dhrumil M. Shah, Mumbai were appointed as secretarial auditor of the Company for the Financial Year 2015 - 16, as required under section 204 of The Companies Act, 2013 read with the applicable rules. The Secretarial Audit Report for 2015 - 16 forms part of the Annual Report as Annexure VI.
AUDIT REPORT
In respect of the qualification in the Auditors'' Report regarding partial provision for diminution in the value of investment in equity shares of McNally Bharat Engineering Company Limited, the Company is of the opinion that the diminution in market value of these shares is temporary and is a result of general slowdown in the economy.
The Directors of your Company have on a conservative basis made a partial provision during the year under review to cover the diminution in the value of the investments.
The Company has also filed Form B with the stock exchanges as required by the regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to the provision of Section 134 (5) of the Companies Act, 2013, the Board of Directors of your Company hereby confirms :
1) that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departure;
2) 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 the end of the financial year and of the Profit and Loss of the Company for the period;
3) 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, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
4) that the Directors have prepared the annual accounts on a going concern basis.
5) 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.
6) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
CORPORATE GOVERNANCE
Pursuant to the provisions of Regulation 34(3) and 53(f) read with schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Management Discussion & Analysis Report (Annexure - I), Report on Corporate Governance and Compliance Certificate on Corporate Governance (Annexure VIII) are annexed to this Report.
EMPLOYEE RELATIONS
Employees'' relations were cordial throughout the year. Several HR, IR initiatives to improve employee relations have been initiated during the year and have been well accepted.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo as required to be disclosed pursuant to Section 134 (3) (m) of the Companies Act, 2013 read with The Companies (Accounts) Rules, 2014, as amended, is appended to this Annual Report as Annexure "II" and forms part of this Directors'' Report.
ADEQUACY OF INTERNAL CONTROL SYSTEM WITH RESPECT TO THE FINANCIAL STATEMENTS
The Company has a comprehensive system of internal control which is being strengthened. The internal control system is also subject to review by auditors.
The Company has appointed a firm of auditors for conducting internal audit on a half yearly basis and the report is considered by the Audit Committee of the Board headed by a Non-executive Independent Director.
DIRECTORS
Mr. Supriya Mukherjee continued as Managing Director of the Company during the year, as per terms of appointment approved by members. Company also received approval of the Central Government pursuant to provisions of Section 197 of The Companies Act, 2013 for waiver of recovery of excess remuneration paid to the Managing Director during 2015 - 16 and for payment of remuneration payable to the Managing Director for his 2 years tenure of 2015 - 16 & 2016 -17; as per terms of remuneration approved by the members, with some reduction. It may be noted the same level of remuneration that Mr. Mukherjee had been paid since 01.04.2010 has been maintained while seeking approval of the Central Government as aforesaid.
Members appointed Mr. Aditya Khaitan and Mrs. Priya Saran Chaudhri as directors of the company at previous AGM of the Company held on 28th September, 2015.
Mrs. Priya Saran Chaudhri, director retires by rotation pursuant to Section 152 of The Companies Act, 2013 and Article 86 of Articles of Association of the Company at the ensuing Annual General Meeting of the Company and being eligible, offers herself for re-appointment.
DECLARATIONS BY INDEPENDENT DIRECTORS
Necessary declarations from all the Independent Directors of the Company, confirming that they meet the criteria of independence as prescribed, have been received.
KEY MANAGERIAL PERSONNEL
During the year 2015 - 16, following officials continued as Key Managerial Personnel, pursuant to Section 203 of The Companies Act, 2013 :
i. Mr. Supriya Mukherjee, Managing Director
ii. Mr. A. Suresh, Chief Financial Officer
iii. Mr. Arvind Bajoria, Company Secretary
HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Your Company has no holding or subsidiary company. Williamson Magor & Company Limited is holding 4319043 equity shares constituting 32.58% of total shareholding of the Company, so it is an associate company within the meaning of Section 2 (6) of The Companies Act, 2013.
RELATED PARTY TRANSACTIONS
Your Board has developed and approved a Related Party Transactions Policy for purposes of identification and monitoring of related party transactions and the same is uploaded on the Company''s website.
Your Company has not entered into any contracts/arrangements with related parties as required under Section 188(1) of the Companies Act, 2013, during the year under review. However there are contracts/arrangements with related parties as defined by the said Act, executed prior to April 1, 2014 and the Statement in Form AOC -2 containing the details of the Related Party Transactions pertaining to such ongoing contracts forms a part of this Report as Annexure III .
MANAGERIAL REMUNERATION
Details of the ratio of the remuneration of each director to the median employee''s remuneration and other details as required pursuant to Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are as per annexure V.
Mr. Supriya Mukherjee, Managing Director is the only executive director in receipt of remuneration, the details of which are available in the corporate governance report attached to the directors'' report.
VIGIL MECHANISM
The Company has formulated a Whistle Blower Policy to establish a vigil mechanism for Directors and employees of the Company to report concerns about unethical behaviour, actual or suspected fraud or violation of the company''s code of conduct or ethics policy. The VIGIL MECHANISM is available on the website of Company.
REMUNERATION POLICY
The Company has formulated a Remuneration Policy for Directors, Key Managerial Personnel and employees of the Company to ensure that adequate remuneration paid to attract, retain and motivate the senior management employees to run the company successfully. The Policy is available on the website of the Company and also annexed herewith.
RISK MANAGEMENT
Directors have adopted risk management policy to identify the risks involved in all activities of the Company. The main objective of this policy is to ensure sustainable business growth and to promote a pro-active approach in identifying, reporting, evaluating and mitigating risks associated with the business. The policy guides the board in identification of various business risks and to take appropriate steps to mitigate the same.
CORPORATE SOCIAL RESPONSIBILITY
The Company will constitute Corporate Social Responsibility (CSR) Committee in 2016-17 in compliance of provisions of Section 135 of the Companies Act 2013 and SEBI Listing Regulations.
EXTRACT OF THE ANNUAL RETURN
The extract of the annual return in Form No. MGT - 9, as per annexure VII forms part of the Board''s report.
OTHER DISCLOSURES
During the year under review:
a. There were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
b. Your Company has not accepted any deposit from the public falling within the ambit of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
c. There were no significant or material orders passed by the Regulators or Courts or Tribunals which impact the going concern status and Company''s operations in future.
COLLABORATORS
The Directors place on record their sincere appreciation to all its Collaborators for extending their valuable support and co-operation.
ACKNOWLEDGEMENT
The Directors wish to convey their appreciation to their Customers, Bankers, Dealers, Suppliers, Stock Exchanges, Government and all other Stakeholders for the excellent assistance and cooperation. The Directors also thank all the employees of the Company for their valuable service and support during the year.
For and on behalf of the Board
Place : Kolkata Aditya Khaitan
Date : Aug 9, 2016 Chairman
Mar 31, 2015
Dear Members,
The Directors of your Company are pleased to present the 27th Annual
Report and Audited Statement of Accounts for the financial year ended
31st March, 2015.
FINANCIAL RESULTS (Rs. In Lacs)
Year ended Year ended
31st March, 31st March,
2015 2014
Revenue from Operations 12,069 11,651
Profit before tax 582 326
Tax Expenses 168 87
Profit after tax 414 239
Balance brought forward from 5,405 5,166
previous year
Amount available for appropriation 5,807 5,405
(After adjustment of depreciation of
Rs. 10.87 lacs on tangible fixed
assets with Nil residual life)
Less: Appropriations - -
Balance carried forward to Balance Sheet 5,807 5,405
DIVIDEND
Board of Directors did not recommend dividend for the current year, due
to inadequate profits.
REVIEW OF OPERATIONS 2014-15
As you are aware your Company is primarily engaged in designing,
manufacturing and commissioning customized equipment/ systems for
diverse applications. The company registered marginal growth in revenue
by 3% during the year under review, due to difficult economic
environment.
ORDER BOOK
An improved macro economic environment led to better inflow of Process
Equipment related customized orders which normally involve 8 to 18
months execution period. During 2014-15, following good critically
customized equipments orders have been executed and/ or currently under
execution.
Export Orders
* For Paddle Dryers and Coolers from a reputed overseas manufacturer of
lime and dolime Domestic Orders
* For Rotary Calciner having 480 TPD capacity for Reputed Soda Ash
manufacturer.
* For Nuclear Reactor's Ventilation project from a reputed
infrastructure Company.
* For Rotary Dryers, Coolers, Granulators and Lump Crushers from a
reputed fertilizer company FUTURE OUTLOOK
Your company operates primarily in two divisions viz. Process Equipment
and Food Processing Equipment. The future outlook based on the expected
order inflow appears to be encouraging. A detailed review of the
operations of each division is incorporated in the Management
Discussion and Analysis Report in Annexure A which forms part of this
Report.
AUDIT REPORT
In respect of the qualification in the Auditors' Report regarding
partial provision for diminution in the value of investment in equity
shares of Mcnally Bharat Engineering Company Limited, the Company is of
the opinion that the diminution in market value of these shares is
temporary and is a result of general slowdown in the economy.
The Directors of your Company have on a conservative basis made a
provision during the year under review to cover the diminution in the
value of the investments.
The Company is also filing Form B with the stock exchanges as required
by the SEBI Circular No. CIR. CFD/ DIL/7/2012 Dated August 13, 2012.
Pursuant to the provision of Section 134 (5) of the Companies Act,
2013, the Board of Directors of your Company hereby confirms :
1) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure;
2) 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 the end of the financial year and of
the Profit and Loss of the Company for the period;
3) 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, 2013 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
4) that the Directors have prepared the annual accounts on a going
concern basis.
5) 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.
6) the directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
MANAGEMENT DISCUSSION & ANALYSIS
A separate report on Management Discussion & Analysis is appended to
this Annual Report as Annexure "I" and forms part of this Director's
Report;
MATERIAL CHANGES & COMMITMENTS
There are no material changes and commitments, affecting the financial
position of the Company, between the end of the financial year of the
Company i.e. March 31, 2015 and the date of this Report.
EMPLOYEE RELATIONS
Your Company believes employees are its key strengths. Your Board would
like to place on record its appreciation of employees for their
contribution to the business.
During 2014 - 15, Saravali factory witnessed labour unrest in the
second half as workmen raised some demands outside the purview of
settlement in October 2013 entered into between workmen and your
Company for four years period upto October 2017. In May 2015,
settlement of the issues of workmen has been made and industrial
relations continue to be cordial and amicable.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo as required to be
disclosed pursuant to Section 134 (3) (m) of the Companies Act, 2013
read with The Companies (Accounts) Rules, 2014, as amended, is appended
to this Annual Report as Annexure "II" and forms part of this
Directors' Report.
ADEQUACY OF INTERNAL CONTROL SYSTEM WITH RESPECT TO THE FINANCIAL
STATEMENTS
The Company has a comprehensive system of internal control to safeguard
the Company's assets against any loss from unauthorized use and ensure
proper authorization of financial transactions.
The Company has internal control systems commensurate with the size and
nature of the business and has experienced personnel positioned
adequately in the organization to ensure internal control processes and
compliances. The Company takes abundant care in designing, reviewing
and monitoring regularly the working of inter control systems and their
compliances for all important financial internal control processes. The
Audit findings are reported on quarterly basis to the Audit Committee
of the Board headed by a Non-executive Independent Director.
The Company has been further strengthening the internal control system
by implementation robust ERP systems based on FACT platform. This
ensures high degree of systems based checks and controls.
CORPORATE GOVERNANCE
In compliance with revised Clause 49 of the Listing Agreement, a
detailed Report on Corporate Governance is enclosed as a part of this
Annual Report. The report has details of formal evaluation by the Board
of its own performance, its committees and individual directors. A
certificate from a Practicing Company Secretary regarding compliance of
the condition of Corporate Governance as stipulated under Clause 49 of
the Listing Agreement, is appended as Annexure - III and forms part of
this Directors' Report.
Mr. Supriya Mukherjee has been appointed as Managing Director for a
period of three years effective April 1, 2014 at the 26th Annual
General Meeting of the Company.
Mr. S. R. Dasgupta, Mr. Padam Kumar Khaitan, Mr. Manmohan Singh and Mr.
Gobind Saraf, who have been Directors of the Company and also been
Independent Directors of the Company pursuant to Clause 49 of the
Listing Agreement with the Stock Exchanges, were appointed as
Independent Directors for a period of five consecutive years at the
26th Annual General Meeting of the Company, held on September 30, 2014
in terms of Section 149 and other applicable provisions of the
Companies Act, 2013.
With profound grief, we inform the sad demise of our beloved chairman,
Mr. Deepak Khaitan, Chairman on 9th March, 2015 after prolonged
illness. The Board places on record its profound sorrow on the loss of
Mr. Deepak Khaitan and also its deep appreciation of the valuable
contributions made by him during his long association with the Company.
Board of directors appointed Mrs. Priya Saran Chaudhri as additional
director effective 14th November, 2014 and Mr. Aditya Khaitan as
additional director (Chairman of the Board) effective 31st March, 2015.
Both the directors hold office upto the ensuing Annual General Meeting
and their appointment is proposed as regular director of the company.
Mr. Amritanshu Khaitan, director retires by rotation pursuant to
Section 152 of The Companies Act, 2013 and Article 86 of Articles of
Association of the Company at the ensuing Annual General Meeting of the
Company and being eligible, offer himself for re-appointment.
DECLARATIONS BY INDEPENDENT DIRECTORS
Necessary declarations from all the Independent Directors of the
Company, confirming that they meet the criteria of independence as
prescribed, have been received.
KEY MANAGERIAL PERSONNEL
During the year 2014 - 15, following officials continued as Key
Managerial Personnel, pursuant to section 203 of The Companies Act,
2013 :
i. Mr. Supriya Mukherjee, Managing Director
ii. Mr. Anjaneyan Suresh, Chief Financial Officer
iii. Mr. Arvind Bajoria, Company Secretary
HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Your Company has no holding or subsidiary company. Williamson Magor &
Company Limited is holding 4319043 equity shares constituting 32.58% of
total shareholding of the Company, so it is an associate company within
the meaning of section 2 (6) of The Companies Act, 2013.
RELATED PARTY TRANSACTIONS
Your Board has developed and approved a Related Party Transactions
Policy for purposes of identification and monitoring of related party
transactions and the same is uploaded on the Company's website.
Your Company has not entered into any contracts/arrangements with
related parties as required under Section 188(1) of the Companies Act,
2013, during the year under review. However there are
contracts/arrangements with related parties as defined by the said Act,
executed prior to April 1, 2014 and the Statement in Form AOC -2
containing the details of the Related Party Transactions pertaining to
such ongoing contracts forms a part of this Report as Annexure .
MANAGERIAL REMUNERATION
Details of the ratio of the remuneration of each director to the median
employee's remuneration and other details as required pursuant to Rule
5(1) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 are as per annexure V.
Mr. Supriya Mukherjee, Managing Director is the only executive director
in receipt of remuneration, and its details are in the corporate
governance report and annexure VII attached to this directors' report.
STATUTORY AUDITORS
M/s Deloitte Haskins & Sells (Firm's Registration No. : 117364W ),
Statutory Auditors of the Company hold the appointment for a term of
three years upto 2017 and their appointment is subject to ratification
by members at the ensuing Annual General Meeting. They have confirmed
their eligibility to the effect that their re-appointment, if made,
would be within the prescribed limits under the Act and that they are
not disqualified for continuation as Stautory Auditors.
VIGIL MECHANISM
The Company has formulated a Whistle Blower Policy to establish a vigil
mechanism for Directors and employees of the Company to report concerns
about unethical behaviour, actual or suspected fraud or violation of
the company's code of conduct or ethics policy. The VIGIL MECHANISM is
available on the website of Company.
REMUNERATION POLICY
The Company has formulated a Remuneration Policy for Directors, Key
Managerial Personnel and employees of the Company to ensure that
adequate remuneration paid to attract, retain and motivate the senior
management employees to run the company successfully. The Policy is
available on the website of the Company and also annexed herewith
(Annexure IV).
RISK MANAGEMENT
Directors have adopted risk management policy to identify the risks
involved in all activities of the Company, set up adequate controls to
timely mitigate the risks.
SOCIAL CONTRIBUTION
The Company continues to support social causes and has, like in the
previous years, made contributions for underprivileged people. The
Company will continue to support social projects that are consistent
with the policy.
COST AUDITOR
Pursuant to section 148 of The Companies Act, 2013, Board of Directors
in their meeting held on 28th May, 2015 reappointed M/s. Sabyasachi &
Co., Cost Accountants as Cost Auditor for conducting the audit of the
cost accounting records of the company for the financial year 2015-16.
The remuneration payable to the Cost Auditors for the said year is
being placed for ratification by the Members at the forthcoming Annual
General Meeting.
SECRETARIAL AUDIT REPORT
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, Secretarial Audit Report by M/s. Dhrumil M.
Shah & Co., Practicing Company Secretaries is annexed to the report.
EXTRACT OF THE ANNUAL RETURN
The extract of the annual return in Form No. MGT - 9, as per annexure -
forms part of the Board's report.
OTHER DISCLOSURES During the year under review:
a. There were no cases filed pursuant to the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
b. Your Company has not accepted any deposit from the public falling
within the ambit of Section 73 of the Companies Act, 2013 and the
Companies (Acceptance of Deposits) Rules, 2014.
c. There were no significant or material orders passed by the
Regulators or Courts or Tribunals which impact the going concern status
and Company's operations in future.
COLLABORATORS
The Directors place on record its sincere appreciation to all its
Collaborators for extending their valuable support and co-operation.
ACKNOWLEDGEMENT
The Directors wish to convey their appreciation to their Customers,
Bankers, Dealers, Suppliers, Stock Exchanges, Government and all other
Stakeholders for the excellent assistance and cooperation. The
Directors' also thank all the employees of the Company for their
valuable service and support during the year.
For and on behalf of the Board
Kolkata Aditya Khaitan
Date: May 28, 2015 Chairman
Mar 31, 2014
Dear Members,
The Directors of your Company are pleased to present the 26th Annual
Report and Audited Statement of Accounts for the financial year ended
31st March, 2014.
FINANCIAL RESULTS (Rs In Lacs)
Year ended Year ended
31st March 31st March,
2014 2013
Revenue from Operations 12,172 7,916
Profit/(Loss) before tax 326 (1,681)
Tax Expenses (MAT) 87 -
Profit/(Loss) after tax 239 (1,681)
Balance brought forward from previous year 5,166 6,847
Amount available for appropriation 5,405 5,166
Less: Appropriations - -
Balance carried forward to Balance Sheet 5,405 5,166
DIVIDEND
In the absence of adequate profits for Financial Year 2013-14, Board of
Directors considers it prudent not to recommend dividend for the
current year.
REVIEW OF OPERATIONS 2013 - 2014
As you are aware your Company is primarily engaged in designing,
manufacturing and commissioning customized equipment/ systems for
diverse applications. The company registered growth in revenue from
operations by 54% during the year under review. The Company''s exports
doubled from '' 23 Crore to '' 46 Crore. The increase in top line helped
generate positive bottom line in 2013-14.
ORDER BOOK
The macro economic challenges considerably restricted in 2012-13 inflow
of Process Equipment related customized orders which normally involve 8
to 18 months execution period. During 2013-14 the company secured the
following good quality critically customized orders which have been
executed and/ or currently under execution.
Export Orders
- For Carbon Black Pelletizing & Drying Plant with Flue Gas DeNox
System.
- For Rotary Dryer for calcination of activated carbon.
- For Fluid Bed Dryer for Petrochemical Plant for PVC.
- From a global leader in Lime & Dolomite for Paddle Dryers and
Paddle Coolers for fine Coal.
- For Rotary Dryers for Carbon Black/ Phosphate
Domestic Orders
- For Conveyor Dryers & Rotary Oven for a reputed MNC for application
in Food Processing (Breakfast Cereal).
- From a Fertilizer Company for supply of Rotary Drums and Fans for a
new DAP/ NPK Fertilizer Project
- For Coolers for Nuclear Reactor building cooling systems
- For Fluid Bed and other Dryers for Salt, ABS and Fertilizer, etc.
- For Rotary Drum Steam Tube type Calciner Package for Soda Ash
application.
FUTURE OUTLOOK
Your company operates primarily in two divisions viz. Process Equipment
and Food Processing Equipment. The future outlook based on the expected
order inflow appears to be encouraging. A detailed review of the
operations of each division is incorporated in the Management
Discussion and Analysis Report in Annexure A which forms part of this
Report.
AUDIT REPORT
In respect of the qualification in the Auditors'' Report regarding
partial provision for diminution in the value of investment in equity
shares, the Company is of the opinion that the diminution in market
value of these shares is temporary and is a result of general slowdown
in the economy.
The Directors of your Company have on a conservative basis made a
provision during the year under review to cover the diminution in the
value of the investments.
The Company is also filing Form B with the stock exchanges as required
by the SEBI Circular No. CIR. CFD/ DIL/7/2012 Dated August 13, 2012.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the provision of Section 217 (2AA) of the Companies Act,
1956, the Board of Directors of your Company hereby confirms :
1) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure;
2) 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 the end of the financial year and of
the Profit and Loss of the Company for the period;
3) 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;
4) that the Directors have prepared the annual accounts on a going
concern basis.
MANAGEMENT DISCUSSION & ANALYSIS
A separate report on Management Discussion & Analysis is appended to
this Annual Report as Annexure "A" and forms part of this Director''s
Report;
HUMAN RESOURCE DEVELOPMENT
Your Company believes employees are its key strengths. Relations with
employees remained cordial and satisfactory during the year. Your Board
would like to place on record its appreciation of employees for their
contribution to the business.
During October 2013 your Company entered into settlement with the
Maharashtra Navnirman Kamgar Sena representing workmen at the Saravali
factory in presence of Commissioner of Labour, Thane. The settlement
covers monetary and other terms of employment of the workmen for four
years period upto October 2017.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo as required to be
disclosed pursuant to Section 217(1)(e) of the Companies Act, 1956 read
with The Companies (Disclosure of particulars in the report of Board of
Directors) Rules, 1988, as amended, is appended to this Annual Report
as Annexure "B" and forms part of this Directors'' Report.
PERSONNEL
The requirement of the provisions of Section 217(2A) of the Companies
Act, 1956, read with The Companies (Particulars of Employees) Rules,
1975, as amended, is not applicable to the Company.
CORPORATE GOVERNANCE
In compliance with Clause 49 of the Listing Agreement, a detailed
Report on Corporate Governance is enclosed as a part of this Annual
Report. A certificate from a Practicing Company Secretary regarding
compliance of the condition of Corporate Governance as stipulated under
Clause 49 of the Listing Agreement, is appended to this Annual Report
and forms part of this Directors'' Report.
DIRECTORS
Pursuant to Article 87 of Articles of Association of the Company, Mr.
Deepak Khaitan and Mr. Amritanshu Khaitan retire at the ensuing Annual
General Meeting of the Company and being eligible, offer themselves for
re-appointment.
Pursuant to Sections 149, 150 and 152 of the new Companies Act in force
from April 2014 Independent Directors, Mr. Subir Ranjan Dasgupta, Mr.
Padam Kumar Khaitan, Mr. Manmohan Singh and Mr. Gobind Saraf are being
reappointed for a period of 5 years. They have confirmed that they meet
the criteria to be independent Directors in the Company.
Mr. S. Mukherjee''s earlier term of appointment ended on 31st March,
2014. At the Board Meeting on 14th February, 2014, the Board of
Directors approved extension of Mr. Mukherjee''s services for a further
period of 3 years. Shareholders approval for the appointment of Mr.
Mukherjee as Managing Director is being sought in terms of Section 196,
197 and 203 of the Companies Act, 2013 at the ensuing AGM.
AUDITORS
M/s. Deloitte Haskins & Sells, Statutory Auditors of the Company retire
at the conclusion of the ensuing Annual General Meeting of the Company.
The Company has obtained a certificate from them stating that their
appointment, if considered and approved, will be within the limits of
Section 224(1B) of the Companies Act, 1956. The Company has also
obtained a certificate from them stating that they have subjected
themselves to the Peer Review Process of Institute of Chartered
Accountants of India (ICAI). Being eligible, they offer themselves for
re-appointment as Statutory Auditors for three Financial Years as per
the provisions of the Companies Act, 2013.
COST AUDITOR
The Ministry of Corporate Affairs (MCA) had introduced The Companies
(Cost Audit Report) Rules, 2011 vide which it has been mandatory for
industries to appoint a Cost Auditor within 90 days of the commencement
of the financial year.
Board of Directors in their meeting held on 29th May, 2014 approved the
appointment of M/s. Sabyasachi & Co., Cost Accountants as Cost Auditor
for conducting the audit of the cost accounting records for the Product
Engineering Machinery or for any other products mandated by the Central
Government for the financial year 2014-15 subject to the approval of
the Central Government.
COLLABORATORS
The Directors place on record its sincere appreciation to all its
Collaborators for extending their valuable support and co-operation.
ACKNOWLEDGEMENT
The Directors wish to convey their appreciation to their Customers,
Bankers, Dealers, Suppliers, Stock Exchanges, Government and all other
Stakeholders for the excellent assistance and cooperation. The
Directors'' also thank all the employees of the Company for their
valuable service and support during the year.
For and on behalf of the Board
Kolkata Amritanshu Khaitan Supriya Mukherjee
Date: 13th August,2014 Director Managing Director
Mar 31, 2013
The Directors submit the 25th Annual Report together with the Audited
Accounts for the year ended 31st March, 2013.
FINANCIAL RESULTS (Rs. In Lacs)
Year ended Year ended
31st March, 31st March,
2013 2012
Gross Sales 7,916 10,088
(Loss)/Proft before tax (1,681) 183
Tax Expenses - 120
(Loss)/ Proft after tax (1,681) 63
Balance brought forward from
previous year 6,847 6,784
Amount available for appropriation 5,166 6,847
Less : Appropriation - -
Balance carried forward to Balance
Sheet 5,166 6,847
DIVIDEND
Due to losses your Directors are unable to recommend any dividend for
the year ended 31st March, 2013.
REVIEW OF OPERATIONS 2012 - 2013
Your Company is primarily engaged in designing, manufacturing and
commissioning customized equipment/ systems for diverse applications.
The macroeconomic challenges adversely impacted capital goods sector
and as a result considerably restricted the order infow of your Company
both from the domestic and export markets. A number of reputed
customers either deferred or cancelled their CAPEX programme during the
year under review. As a result, Sales of your Company plummeted to
Rs. 79 crores during the year under review as against RS. 100 crores in
the preceding fnancial year. The decline in sales coupled with higher
input/ interest costs and depreciation charges severely affected the
Company''s bottom line.
FUTURE OUTLOOK
- Process Equipment
With the likely upturn of global/ Indian economy, your Company is
expected to improve its order book both from the export and domestic
markets, for its diverse range of customized Process Equipment. The
Company''s proven track record of supplying various customized
equipment/ systems both offshore and onshore and its renewed efforts to
explore export markets are expected to result in much higher sales from
the current year and onwards.
The Company started receiving last six months value added orders for
its Process Equipment from Domestic and Export Markets namely USA, UAE,
Netherlands, Egypt, Africa, South Korea and Spain. Considering these
Process Equipment related orders and steady sales growth of Tea Dryers,
the Company is hopeful of achieving substantially higher sales in
2013-14. Barring unforeseen circumstances, the Company expects positive
operating results in 2013-14. In view of the product quality and other
competitive advantages that your Company enjoys, we expect sustainable
sales growth in the years ahead.
- Food Processing Equipment
Your Company is a Market Leader in Tea Dryers. The improved Phase VI
Dryer launched during 2011-12 has been very well accepted by the market
both domestic and export. During 2012-13 the Company posted substantial
growth in sales of tea dryers both in domestic and export markets as
compared to 2011-12. The Company expects to maintain the improved trend
of sales growth in this segment.
Your Company has supplied Paddy Drying Systems to some rice millers in
India and based on the results achieved, your Company has redesigned a
new cost effective drying system for various categories of millers.
AUDIT REPORT
In respect of the qualifcation in the Auditors'' Report regarding
partial provision for diminution in the value of investment in equity
shares, the Company is of the opinion that the diminution in market
value of these shares is temporary and is a result of general slowdown
in the economy. Notwithstanding that the investment is of a long term
nature and in our view the value of the said investment is poised for
appreciation in the foreseeable future, the Company has considered it
appropriate to make a provision ofRs. 200 Lacs during the year under
review. Further provision if considered necessary, will be made
progressively based on the performance of this strategic investment and
future market value of shares.
The Company is also fling Form B with the stock exchanges as required
by the SEBI Circular No. CIR.CFD/DIL/7/2012 dated August 13, 2012.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the provision of Section 217 (2AA) of the Companies Act,
1956, the Board of Directors of your Company hereby confrms:
1) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure;
2) 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 the end of the fnancial year and of the
Proft and Loss of the Company for the period;
3) that the Directors have 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;
4) that the Directors have prepared the annual accounts on a going
concern basis.
MANAGEMENT DISCUSSION & ANALYSIS
A separate report on Management Discussion & Analysis is appended to
this Annual Report as Annexure "A" and forms part of this Directors''
Report.
HUMAN RESOURCE DEVELOPMENT
The Company considers human resources as its most critical asset and
has put in place various practices to ensure healthy and smooth work
environment. Industrial relations continued to be cordial and
harmonious throughout the year.
CONSERVATION OF ENERGY, TECHNICAL ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to Conservation of energy, Technical
Absorption and Foreign Exchange Earnings and Outgo as required to be
disclosed pursuant to Section 217(1) (e) of the Companies Act, 1956
read with The Companies (Disclosure of particulars in the report of
Board of Directors) Rules, 1988, as amended, is appended to this Annual
Report as Annexure "B" and forms part of this Directors'' Report.
PERSONNEL
The requirement of the provision of Section 217 (2A) of the Companies
Act. 1956, read with The Companies (Particulars of Employees) Rules,
1975, as amended, is not applicable to the Company.
CORPORATE GOVERNANCE
In compliance with Clause 49 of the Listing Agreement, a detailed
Report on Corporate Governance is enclosed as a part of this Annual
Report. Certifcate from Practicing Company Secretaries regarding
compliance of the condition of Corporate Governance as stipulated under
Clause 49 of the Listing Agreement, is appended to the Annual Report
and forms part of this Directors'' Report.
DIRECTORS
Pursuant to Article 87 of Articles of Association of the Company, Mr.
Subir Ranjan Dasgupta and Mr. Padam Kumar Khaitan retire at the ensuing
Annual General Meeting of the Company and being eligible, offer
themselves for re- appointment.
AUDITORS
M/s. Deloitte Haskins & Sells, Statutory Auditors of the Company retire
at the conclusion of the ensuing Annual General Meeting of the Company.
The Company has obtained a certifcate from them stating that their
appointment, if considered and approved, will be within the limits of
Section 224(1B) of the Companies Act, 1956. The Company has also
obtained a certifcate from them stating that they have subjected
themselves to the Peer Review Process of Institute of Chartered
Accountants of India (ICAI). Being eligible, they offer themselves for
re-appointment as Statutory Auditors for the Financial Year 2013-2014.
COST AUDITOR
The Ministry of Corporate Affairs (MCA) has introduced The Companies
(Cost Audit Report) Rules, 2011 vide which it has been mandatory for
industries to appoint a Cost Auditor within 90 days of the commencement
of the fnancial year.
The Board of Directors has approved the appointment of M/s. Sabyasachi
& Co., Cost Accountants as Cost Auditor for conducting the audit of the
cost accounting records for the product Engineering Machinery or for
any other products mandated by the Central Government for the Financial
year 2013-14 subject to the approval of the Central Government.
COLLABORATORS
The Directors place on record its sincere appreciation to all its
collaborators for extending their valuable support and co-operation.
ACKNOWLEDGEMENT
The Directors wish to convey their appreciation to their customers,
bankers, dealers, suppliers, Stock Exchanges, Government and all other
Stakeholders for the excellent assistance and cooperation. The
Directors also thank all the employees of the Company for their
valuable service and support during the year.
For and on behalf of the Board
Kolkata Amritanshu Khaitan Supriya Mukherjee
Date: 13th August, 2013 Director Managing Director
Mar 31, 2012
The Directors of your Company are pleased to present the 24th Annual
Report and Audited Statement of Accounts for the financial year ended
31st March, 2012.
FINANCIAL RESULTS ( Rs. In Lac)
Year ended Year ended
31st March, 31st March,
2012 2011
Gross Sales 10,088 13,346
Gross Profit before interest, finance
charges and depreciation 1,028 1,709
Interest & Finance charges 632 279
Depreciation 213 96
Profit before tax 183 1,334
Tax Expenses 120 422
Profit/(Loss) after tax 63 912
Balance brought forward from previous
year 6,784 6,350
Amount available for appropriation 6,847 7,262
Less: Appropriations
Proposed Dividend - 332
Tax on Dividend - 55
Transfer to General Reserve - 91
Balance carried forward to
Balance Sheet 6,847 6,784
DIVIDEND
Considering inadequacy of profits for the financial year 2011-2012, the
Board of Directors are unable to recommend dividend for the year.
OPERATIONAL HIGHLIGHTS
During the financial year 2011-12, the macroeconomic challenges
impacted adversely the operations of your Company. The gross turnover
of the Company decreased to Rs. 100 crore during the year under review
as against Rs. 133 crore in the preceding financial year. Export
turnover also decreased to Rs. 27 crore from Rs. 42 crore in the
previous year. The lower turnover and higher input/interest costs and
depreciation charges have adversely affected the Company's bottom line.
Your Company is primarily engaged in designing, manufacturing and
commissioning customized equipment/systems and in several cases the
customers, both domestic and overseas, either deferred or cancelled
their capex programme.
FUTURE OUTLOOK
- Process Equipment
During the current year the sluggishness in order inflow of Process
Equipment is continuing with an adverse bearing on the current year's
operations.
With the likely upturn of global/Indian economy expected from 2013
leading to reversal of Industrial slowdown both in export and domestic
market, your Company is expected to improve its order book for its
diverse range of customized Process Equipment.
During last one year, the new state-of-the-art manufacturing facility
has been approved by a number of large companies both domestic and
overseas. Your Company expects regular business from these sources.
The Company's ongoing efforts to strengthen its position as a reliable
provider of drying solutions for several Industrial Sectors are
expected to yield results in future. The Company's proven track record
of supplying various customized equipment/system both offshore and
onshore coupled with renewed efforts to explore additional business in
the oil and gas sector are likely to result in sales growth. The
Company is also expecting growth in the business of fabrication of
exotic input materials including titanium, hastalloy, nickel, duplex,
etc.
During the current year, for the first time in the country, the Company
has installed a Coke Drying System for a leading steel company. The
Company expects to extend the application of the Coke/Coal Drying
System in collaboration with its overseas technology provider in areas
like power plants, mine sites etc. This system is expected to be quite
beneficial in Indian Market which is dependent on high moisture coal
for power generation.
The Company has recently entered into an understanding for receiving
technology from Nova-Synergy Industrial Solutions SL, Spain for
exploring business opportunities in respect of Waste Heat Recovery
Systems, Fired Heaters, Process Skids, Reformers, etc. The Company has
also entered into a technical collaboration arrangement with Technicas
Reunidas, Spain for securing business in the area of Fuel Gas
Conditioning Systems for Power Plants.
During the current year the order inflow continues to remain bearish.
However, based on what has been stated above, the Company expects to
improve its performance in the next fiscal, i.e. 2013-14 as compared to
the current year.
- Food Processing Equipment
Your company has supplied Paddy Drying systems to some rice millers in
India and based on the results achieved, your Company has redesigned a
new cost effective drying system for various categories of millers.
Post successful launching of the redesigned system, the Company expects
to penetrate the large Paddy Market.
During the year your Company, a market leader in Tea Dryers, has
launched an improved Phase VI model tea dryer. Your Company expects
good order inflow for Phase VI model Tea Dryer both from domestic and
export market in the current year.
- E.P.C.
In view of your Company having vast experience in design, engineering,
procurement, installation and commissioning of critically customized
Process Equipment/Systems for diverse industries like Chemical,
Petrochemical, Fertilizers, Oil & Gas, Foundry, Coal, Food & allied
industries, the Company has embarked on EPC related activities
involving its core segment of business i.e. customized Process
Equipment. During the year the Company is executing an EPC order for
Rotary Tray Dryer & Calciner received from Heavy Water Board. The
Company has recently received an order from a fertilizer Company for
the supply of Granulator and related site activities.
RELOCATION TO NEW FACTORY
During the year your Company has shifted its entire operations from the
erstwhile locations of Taloja and Mulund, Mumbai to its new
state-of-the-art manufacturing complex at Saravali near Thane,
Maharashtra, India. Commercial production at the new factory commenced
during the year under review. With the revival of Capital Goods Sector,
the new manufacturing complex with much higher capacity is expected to
contribute to the growth in sales and profitability of the Company in
the years ahead.
DIRECTORS
Pursuant to Article 87 of Articles of Association of the Company, Mr.
Amritanshu Khaitan and Mr. Gobind Saraf retire at the ensuing Annual
General Meeting of the Company and being eligible, offer themselves for
re- appointment.
AUDITORS
M/s Deloitte Haskins & Sells, Statutory Auditors of the Company retire
at the conclusion of the ensuing Annual General Meeting of the Company.
The Company has obtained a certificate from them stating that their
appointment, if considered and approved, will be within the limits of
Section 224(1B) of the Companies Act, 1956. The Company has also
obtained a certificate from them stating that they have subjected
themselves to the Peer Review Process of Institute of Chartered
Accountants of India (ICAI). Being eligible, they offer themselves for
re-appointment as Statutory Auditors for the Financial Year 2012-2013.
AUDIT REPORT
In respect of the qualification in the Audit Report regarding
non-provision for diminution in investments, your Directors are of the
view that Note 26.4 of Notes forming Part of the Financial Statements
has appropriately dealt with the qualification.
AUDIT COMMITTEE
Your Directors have, in compliance with the provisions of Section 292A
of the Companies Act, 1956 and Clause 49 of the Listing Agreement,
constituted the Audit Committee of the Board. As on date, the members
of the Audit Committee are Mr. S. R. Dasgupta (Chairman), Mr. Manmohan
Singh, Mr. Supriya Mukherjee and Mr. Gobind Saraf.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, the Board of Directors of your Company hereby confirms:
1) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure;
2) 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 the end of the financial year and of
the Profit and Loss of the Company for the period;
3) 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;
4) that the Directors have prepared the annual accounts on a going
concern basis.
MANAGEMENT DISCUSSION & ANALYSIS
A separate report on Management Discussion & Analysis is appended to
this Annual Report as Annexure "A"and forms part of this Directors'
Report;
HUMAN RESOURCE DEVELOPMENT
The Company considers human resources as its most critical asset and
has put in place various practices to ensure healthy and smooth work
environment. Industrial relations continued to be cordial and
harmonious throughout the year.
CONSERVATION OF ENERGY, TECHNICAL ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to Conservation of Energy, Technical
Absorption and Foreign Exchange Earnings and Outgo as required to be
disclosed pursuant to Section 217(1)(e) of the Companies Act, 1956 read
with The Companies (Disclosure of particulars in the report of Board of
Directors) Rules, 1988, as amended, is appended to this Annual Report
as Annexure "B"and forms part of this Directors' Report.
PERSONNEL
The requirement of the provisions of Section 217(2A) of the Companies
Act, 1956, read with The Companies (Particulars of Employees) Rules,
1975, as amended, is not applicable to the Company.
CORPORATE GOVERNANCE
In compliance with Clause 49 of the Listing Agreement, a detailed
Report on Corporate Governance is enclosed as a part of this Annual
Report. Certificate from Practicing Company Secretaries regarding
compliance of the conditions of Corporate Governance as stipulated
under Clause 49 of the Listing Agreement, is appended to this Annual
Report and forms part of this Directors' Report.
COLLABORATORS
The Board places on record its sincere appreciation to its
collaborators Nara Machinery Co. Ltd., Japan and Carrier Vibrating
Equipment Inc, of USA for extending their valuable support and
co-operation.
ACKNOWLEDGEMENT
The Directors wish to convey their appreciation to their bankers,
customers, dealers, suppliers, Stock Exchanges, Government and
stakeholders for the excellent assistance and cooperation. The
Directors also thank all the employees of the Company for their
valuable service and support during the year.
For and on behalf of the Board
Deepak Khaitan
Chairman
Kolkata
11th August, 2012
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