Mar 31, 2018
DIRECTORS'' REPORT
Dear Members,
The Directors have the pleasure in presenting this Forty Sixth Directors'' Report together with the audited Annual Accounts of the Company for the financial year ended March 31, 2018.
FINANCIAL PERFORMANCE
The highlights of the financial position for the year under review as compared to the corresponding period in the previous year are given below:
(Rs, in Lakhs)
Particulars |
Standalone |
Consolidated |
||
2017-18 |
2016-17 |
2017-18 |
2016-17 |
|
Total Income |
19,913.89 |
29,305.67 |
19,911.83 |
29,256.94 |
Total Expenses |
20,256.03 |
29,331.79 |
20,257.31 |
29,329.38 |
Profit / (Loss) before Taxation |
(342.14) |
(26.12) |
(345.48) |
(72.44) |
Exceptional Items |
(1,500.00) |
(4,196.29) |
- |
144.49 |
Tax Expense |
193.59 |
173.16 |
193.58 |
173.15 |
Profit/(Loss) from Discontinued Operations after Tax |
- |
- |
(862.64) |
(3,436.29) |
Profit / (Loss) after Taxation |
(2,035.73) |
(4,395.57) |
(1,401.70) |
(3,537.39) |
Other Comprehensive Income |
139.35 |
(1.16) |
139.73 |
(9.24) |
Total Comprehensive Income for the year, Net of Taxes |
(1,896.38) |
(4,396.73) |
(1,261.97) |
(3,546.63) |
Earnings Per Share (in Rs,) (basic & considering exceptional items) |
(6.69) |
(14.45) |
(1.77) |
(0.33) |
DIVIDEND
Your Directors are pleased to recommend Dividend at 30% (Rs, 0.60/- per Equity Share of Rs, 2/- each) on equity shares for the year ended March 31, 2018, subject to the approval of shareholders at the ensuing annual general meeting of the Company. The Dividend distribution would result in cash outflow of Rs, 220.68 Lakhs (including Dividend Distribution Tax).
OPERATIONS AND FINANCE
Your directors have analyzed Company''s operations and financials in detail in Management''s Discussion and Analysis.
PRINTING INDUSTRY
Printing industry slowed down with the global economic meltdown & inflation. Due to digital media, the paper printing industry weakened. The worldwide newspaper industry is facing year after year of shrinking advertising and circulation revenues of printed newspapers. Publishers are moving out of the traditional newsgathering role by adopting an ''online-first'' approach. This shift has caused the decline in the demand of printing machineries.
Maintaining existing customer base, servicing them with the goal of retaining their business is imperative.
COMPANY
Motivating management practices, excellent leadership, highly skilled workforce and a well focused approach has led Manugraph to achieving the goal of being the leader in the niche 4-page Newspaper Offset Printing Press market. Manugraph develops strong business partnerships with clients, providing most satisfactory after-sale services on a continuous basis.
In India, Manugraph ranks as Numero Uno in the manufacture of web offset presses. With a whopping 60% market share and quality presses ranging in speeds from 35,000 - 70,000 copies per hour, Manugraph presses are present in nearly all major publication houses.
Manugraph has significant presence in the international market too. Leading publishers from South America, Europe, Middle East, Asia & the CIS countries have all invested in Manugraph presses.
Operations for the year was affected due to strike by workmen for about 4 months which has severely impacted the financials. Your Company continues to face challenging external scenario including demand.
Your Company successfully entered into the business of CI Flexo packaging printing machine during the year. The Company foresees a very good demand of package printing machines in India.
MANAGEMENT''S DISCUSSION AND ANALYSIS
In terms of the provisions of Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred to as ''SEBI Listing Regulations''), the management''s discussion and analysis is set out in this Annual Report.
PUBLIC / FIXED DEPOSITS
Your Company has not accepted any public / fixed deposits during the year and as such no amount of interest and principal deposit was outstanding as on the balance sheet date.
SUBSIDIARIES Manugraph Americas Inc.
The Printing industry in America has been going through very challenging times over the last decade, mainly due to the spread of electronic media and green initiatives coupled with pricing disadvantages.
Under the circumstances, there has been severe strain in the operations and financials of the wholly owned subsidiary company Manugraph Americas Inc. over the years. The operations were substantially scaled down and were carried out on a cash neutral basis. Over the years, we also managed to reduce the exposure to debts significantly. However, considering that there were no new orders for presses over the past 12 months and no clear visibility of any forthcoming cases, the management decided to voluntarily wind up the operations. Accordingly, a petition under Chapter 11 was filed at the US Bankruptcy court, middle district of Pennsylvania on June 1, 2017. Presently, the proceedings are managed as a debtor in possession under the supervision of the court. As of March 2018, substantially all the movable assets have been disposed off. A realtor has been appointed for sale of the property and the same has been listed. Accounts for the year ended March 2018 has been prepared on a discontinued operations basis. Accordingly, the equity value has been fair valued and necessary provision for impairment has been made in the accounts.
Constrad Agencies (Bombay) Pvt. Ltd.
During the year, there was no major business activity in the Company. The Holding Company viz. Manugraph India Limited invested Rs, 20 Lakhs in this subsidiary company to enable the subsidiary company to meets is routine administrative expenses.
A report on the performance and financial position of each of the subsidiaries, associates and joint ventures as per the Companies Act, 2013 is provided after Consolidated Financial Statements. The policy for determining material subsidiaries as approved by the Board may be accessed on the Company''s website viz. www.manugraph.com.
In accordance with the provisions of Section 129(3) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, as amended, the Consolidated Financial Statements forms part of this Annual Report. The financial position and performance of each of the said subsidiary companies are given in the statement containing the salient features of the financial statements of the said subsidiary companies of the Company, which is annexed to this report.
In accordance with the third proviso to Section 136(1) of the Companies Act, 2013, the Annual Report of the Company, containing therein its standalone financial statements and the consolidated financial statements and all other documents required to be attached thereto has been hosted on its website www.manugraph.com. Further, in accordance with the fourth proviso to the said section, the audited annual accounts of each of the said subsidiary companies of the Company have been hosted on the Company''s website www.manugraph.com.
Any shareholder interested in obtaining a physical copy of the aforesaid financial statements may write to the Company Secretary at the Registered Office of the Company. Further, please note that the said financial statements will also be available for inspection by the Members of the Company at the Registered Office of the Company during business hours from 11.00 a.m. to 1.00 p.m. on all working days except Saturdays, Sundays, Bank Holidays and National Holidays.
BOARD OF DIRECTORS
The Board of Directors on the recommendation of the Nomination & Remuneration Company, appointed Mrs. Basheera Indorewala as an Additional Independent Director of the Company w.e.f. February 7, 2018. A brief profile of Mrs. Indorewala is provided in the notice convening the ensuing Annual General Meeting (''AGM'').
Mrs. Indorewala holds office only up to the date of the forthcoming AGM and a Notice under Section 160(1) of the Act has been received from a Member signifying its intention to propose Mrs. Indorewala''s appointment as a Director.
Necessary declaration has been received from Mrs. Basheera Indorewala that she meets the criteria of Independence prescribed under Section 149(6) of the Act and the Companies (Appointment and Qualification of Directors) Rules, 2014 and Regulation 25(8) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
Your Directors recommend the appointment of Mrs. Basheera Indorewala as an Independent Director for a period of 5 years, not liable to retire by rotation.
In accordance with the provisions of the Companies Act, 2013 and Company''s Articles of Association, Mr. Sanjay S. Shah retires by rotation and is eligible for re-appointment. The Board recommends his re-appointment. None of the independent directors are due for retirement.
Brief profile of Mr. Sanjay S. Shah proposed to be re-appointed as Director of the Company is provided in the notice convening the ensuing AGM.
Declaration of Independence
All the Independent Directors of the Company have given their respective declarations stating that they meet the criteria prescribed for independence under the applicable laws and in the opinion of the Board, all the Independent Directors of the Company meet the said criteria.
Board Evaluation
Evaluation of performance of all Directors is undertaken annually. The Company has implemented a system of evaluating performance of the Board of Directors and of its Committees and individual Directors on the basis of a structured questionnaire which comprises evaluation criteria taking into consideration various performance related aspects. The Board of Directors has expressed their satisfaction with the evaluation process. The evaluation parameters and the process have been explained in the Corporate Governance Report.
Independent Directors also reviewed the performance of non-independent Directors and the Board as a whole in line with the Company''s policy on Board Evaluation.
Appointment & Remuneration Policy
The Board of Directors had reviewed Policy for Appointment of Directors and Senior Management and Evaluation of Directors'' Performance, copy of which is placed on the website of the Company viz. www.maugraph.com.
Non Executive Directors
The Non Executive Directors (''NED'') are paid remuneration by way of Sitting Fees. During the year, the Company paid sitting fees of '' 15,000/- per meeting to the NEDs for attending meetings of the Board & Audit Committee and '' 9,000/- per meeting to the NEDs for attending Nomination & Remuneration Committee meeting.
Executive Directors
Executive Directors are paid remuneration by way of salary, perquisites, allowances and commission. Salary is paid within the range fixed by the members of the Company.
Management Staff
Remuneration of employees largely consists of basic remuneration, perquisites, allowances and performance incentives. The components of the total remuneration vary for different grades and are governed by industry patterns, qualifications and experience of the employee, responsibilities handled by him, his annual performance, etc.
DISCLOSURES
Meetings of the Board
Four Board Meetings were held during the year and the gap between any two Board Meetings was not more than one hundred and twenty days, thereby complying with applicable statutory requirements. The meetings were held on May 26, 2017, September 14, 2017, November 23, 2017, and February 7, 2018.
Board Committees
As on March 31, 2018, the Board had four committee viz. Audit Committee, Stakeholders Relationship Committee, Nomination & Remuneration Committee and Corporate Social Responsibility (CSR) Committee. A detailed note on composition, functions and roles of each of the Committees are provided separately under Corporate Governance Report of this Annual Report.
RELATED PARTY TRANSACTIONS
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 or entities which may have a potential conflict with the interest of the Company at large.
All Related Party Transactions are placed before the Audit Committee as also the Board for approval. Attention of members is drawn to the disclosure of transactions with related parties set out in Note No. 31 of Standalone Financial Statements, forming part of the Annual Report.
The policy on Related Party Transactions as approved by the Board is available on website of the Company viz.: www.manugraph. com.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Company aims to further the socio economic welfare to the lesser privileged and to those in need through its CSR activities. Your Company lays special emphasis on education and vocational training of youth including females in the local community for their economic empowerment. In order to achieve this objective your Company continues to support Industrial Training Institutes.
Apart from the above, the Company provides education and other loans to employees which enable their children for higher education.
Since the Company has not earned profits in the previous financial year, the Company is not mandatorily required to contribute towards CSR activities. The Annual Report on our CSR Activities is appended as ''Annexure A'' to this report.
EXTRACTS OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT 9 is available on the website of the Company viz. www. manugraph.com.
STATUTORY AUDITORS
The members of the Company at its Annual General Meeting held on August 27, 2014 have appointed M/s. Natvarlal Vepari & Co., Chartered Accountants, as the Statutory Auditors of the Company to hold office up to the conclusion of the fifth consecutive annual general meeting of the Company.
M/s. Natvarlal Vepari & Co. has confirmed their eligibility as Statutory Auditors. M/s. Natvarlal Vepari & Co. has also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.
The report of the auditors to the shareholders is a part of the Annual Report. The notes to the Accounts, that are a part of the financial statements, are self-explanatory and need no further clarifications or explanations.
During the year under review, neither the Statutory Auditors nor the Secretarial Auditors has reported to the Audit Committee any instances of fraud committed against the Company by its officers or employees of the Company.
SECRETARIAL AUDITOR
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the relevant provisions of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed M/s. Aashish K. Bhatt & Associates, a Company Secretary in Practice to act as Secretarial Auditor of the Company for the financial year 2017-18. The Report of the Secretarial Audit is annexed herewith as ''Annexure C''. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
COST AUDITOR
Pursuant to the provisions of Section 148 of the Companies Act, 2013 read with Notifications / Circulars issued by the Ministry of Corporate Affairs from time to time, the Board has appointed M/s. C.S. Adawadkar & Co., Cost Accountants, to conduct the audit of the cost records of the Company for the financial year 2017-18.
The Cost Audit Report is required to be filed within 180 days from the end of the financial year. The Cost Audit Report for the financial year ended March 31, 2017 was filed within the due date and for March 31, 2018 will be filed within the prescribed period.
COMPLIANCE WITH SECRETARIAL STANDARDS
The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Board Meetings and Annual General Meetings.
DIRECTORS'' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:
(i) that in the preparation of the annual financial statements for the year ended March 31, 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.
(ii) that such accounting policies have been selected and applied consistently and judgment and estimates have been made 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, 2018 and of the loss of the Company for the year ended on that date;
(iii) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(iv) that the annual financial statements have been prepared on a going concern basis;
(v) that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively; and
(vi) that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
CORPORATE GOVERNANCE
The Company believes that sound corporate governance is a key element for enhancing and retaining the trust of investors and various other stakeholders. The Company observes high standards of corporate governance in all areas of its functioning with strong emphasis on transparency, integrity and accountability. Corporate Governance is a journey for constantly improving sustainable value creation.
As required under the provisions of Regulation 34(3) read with Schedule V of the SEBI Listing Regulations, a separate report on Corporate Governance forms part of this Annual Report, together with a Certificate from the Auditors of the Company regarding compliance of conditions of Corporate Governance.
HUMAN RESOURCES
Employees are vital to the Company. Your Company considers that ''the power of knowledge engineering'' is powered by its people. To achieve its aim of attracting, retaining and developing a committed workforce, your Company sustained various growth and developments initiatives during the year. However, Long-term settlement agreement with workers has delayed because of very high demand for hike in already high wage levels. The Company is at advance stage of negotiations for settlement with the Labour Union.
Your Company is committed to provide a healthy and safe work environment free from accidents, injuries and occupational health hazards.
The Company had a total of 996 permanent employees as on March 31, 2018.
Particulars of Employees
Disclosures with respect to the remuneration of Directors and employees as required under Section 197 of the Act and Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (Rules) have been appended as Annexure B to this report. Details of employee remuneration as required under provisions of Section 197 of the Companies Act, 2013 and Rule 5(2) and 5(3) of the Rules are available at the Registered Office of the Company during working hours, 21 days before the Annual General Meeting and shall be made available to any shareholder on request. Such details are also available on your Company''s website www.manugraph.com.
The Company states that there are no employees (other than Managing Directors) employed throughout the financial year 2017-18 and drawing a salary of '' 1.02 crore per annum or more or employed for part of the year and in receipt of remuneration of Rs, 8.50 Lakhs or more per month as required under Section 197 of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The details of salary paid to Managing Directors are part of Corporate Governance Report, forming part of this Report.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
RISK MANAGEMENT
In a rapidly changing business environment, companies in printing industry face numerous risks that impact their businesses. It is therefore, imperative to identify and address these risks and at the same time leverage opportunities for achieving business objectives.
To establish and maintain a system of risk management and internal control, the Board periodically reviews the risk management system and maintenance of a risk profile (both financial and non-financial risks).
A brief report on risk evaluation and management is provided under Management''s Discussion and Analysis Report forming part of this Annual Report.
INTERNAL FINANCIAL CONTROLS
The Company has a well placed, proper and adequate IFC system which ensures that all assets are safeguarded and protected and that the transactions are authorized, recorded and reported correctly. The Company''s IFC system also comprises due compliances with Company''s policies and Standard Operating Procedures (SOPs).
The Company has appointed Internal Auditors who report to Audit Committee of the Board. The Audit Committee reviews internal audit reports periodically based annual internal audit plan.
WHISTLE BLOWER POLICY
The Company has in place a whistleblower policy, to support the Code of Business Ethics. This policy documents the Company''s commitment to maintain an open work environment in which employees, consultants and contractors are able to report instances of unethical or undesirable conduct, actual or suspected fraud or any violation of Company''s Code of Business Ethics at a significantly senior level without fear of intimidation or retaliation.
The Whistle Blower Policy has been posted on the website of the Company viz. www.manugraph.com.
DISCLOSURE IN TERMS OF THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has set up an Internal Complaints Committee for providing a redressal mechanism pertaining to sexual harassment of women employees at workplace. During the year, there were no complaints relating to sexual harassment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 is annexed as ''Annexure D''.
CAUTIONARY STATEMENT
Statements in the Directors'' Report & Management Discussion and Analysis describing the Company''s objectives, projections, estimates, expectations or predictions may be forward looking statements. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Company''s operations include cyclical demand, changes in government regulations, tax regimes, economic development and other ancillary factors.
APPRECIATIONS
Your Directors would like to thank all stakeholders, namely, customers, shareholders, dealers, suppliers, bankers, employees and all other business associates for the continuous support given by them to the Company and its Management.
For and on behalf of the Board
Place : Mumbai Sanat Shah
Date : May 24, 2018 Chairman
Mar 31, 2017
Dear Members,
The Directors have the pleasure in presenting this Forty Fifth Directorsâ Report together with the audited Annual Accounts of the Company for the financial year ended March 31, 2017.
FINANCIAL PERFORMANCE
The highlights of the financial position for the year under review as compared to the corresponding period in the previous year are given below:
(Rs.in Lakhs)
Particulars |
Standalone |
Consolidated |
||
2016-17 |
2015-16 |
2016-17 |
2015-16 |
|
Total Income |
26208.23 |
27734.97 |
33370.34 |
32155.81 |
Total Expenses |
26244.22 |
27073.17 |
33272.69 |
31272.78 |
Profit / (Loss) before Taxation |
(35.99) |
661.80 |
97.65 |
883.03 |
Exceptional Items |
(4195.88) |
(308.00) |
144.90 |
(308.00) |
Tax Expense |
172.98 |
(244.52) |
3788.97 |
(64.03) |
Profit / (Loss) after Taxation |
(4404.85) |
598.32 |
(3546.42) |
639.06 |
Earnings Per Share (in Rs.) (basic & considering exceptional items) |
(14.48) |
1.97 |
(11.66) |
2.10 |
DIVIDEND
Your Directors are pleased to recommend Dividend at 25% (Rs.0.50/- per Equity Share of Rs.2/- each) on equity shares for the year ended March 31, 2017, subject to the approval of shareholders at the ensuing annual general meeting of the Company. The Dividend distribution would result in cash outflow of Rs.183.04 Lakhs (including Dividend Distribution Tax).
OPERATIONS AND FINANCE
Your directors have analyzed Companyâs operations and financials in detail in Managementâs Discussion and Analysis.
PRINTING INDUSTRY
Globally, particularly in the western countries, the increasing use of the Internet, primarily through large engines has changed the habits of readers. Instead of perusing general interest publications, such as newspapers, readers are more likely to seek particular writers, blogs or sources of information through targeted searches, thereby reducing dependency on newspaper for gathering news.
At a time when newspapers across the globe are struggling, Indiaâs print media industry will see some steady growth. The growth driver, though, is the regional media as opposed to English language dailies. . Vernacular or local language print media will continue to grow, according to a report by India Ratings and Research, a credit ratings agency and a unit of Fitch Ratings. This growth rate will be higher than that of the English language print media, it said, without specifying exact numbers. Vernacular newspapers and magazines will overshadow the English print media, which is likely to continue facing headwinds from the growing acceptance of digital media content.
COMPANY
Manugraph owes its strong position as a supplier of choice not only for its technical competence, but also for its clear orientation towards the customer needs. Once functionality and timing are agreed upon, the client could relax, knowing well Manugraph would deliver quality presses exactly as agreed upon, right on time. Manugraph develops strong business partnerships with clients, providing most satisfactory after-sale services on a continuous basis.
The performance of the Company during the financial year 2016-17 remained subtle. Your Company continues to face challenging external scenario including demand.
MANAGEMENTâS DISCUSSION AND ANALYSIS
In terms of the provisions of Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred to as âSEBI Listing Regulationsâ), the managementâs discussion and analysis is set out in this Annual Report.
PUBLIC / FIXED DEPOSITS
Your Company has not accepted any public / fixed deposits during the year and as such no amount of interest and principal deposit was outstanding as on the balance sheet date.
SUBSIDIARIES
Manugraph Americas. Inc
The US economy in general, turned in the weakest performance as consumers sharply slowed their spending. The newspaper industry has faced dropping newsprint prices, slumping ad sales, significant loss of classified advertising and precipitous drops in circulation. In recent years, the number of newspapers slated for closure, bankruptcy or severe cutbacks has risen, where the industry has shed significant number of its journalists since 2001. Revenue has plunged while competition from Internet media has squeezed print publishers.
During the year under review, Companyâs subsidiary has performed well despite slowdown in the global economies. However, the performance has deteriorated in the second half mainly due to lack of orders. The Company is in the process of evaluating the strategy and business model in US and take necessary restructuring actions. During the year under review, the company has made a provision for impairment of investment in this subsidiary for a value of Rs.4500 lakhs, based on an independent assessment.
A report on the performance and financial position of each of the subsidiaries, associates and joint ventures as per the Companies Act, 2013 is provided after Consolidated Financial Statements. The policy for determining material subsidiaries as approved by the Board may be accessed on the Companyâs website viz. www.manugraph.com.
The Consolidated Financial Statements pursuant to Section 129(3) of the Companies Act, 2013, prepared in accordance with the Accounting Standards prescribed by the Institute of Chartered Accountants of India, forms part of this Annual Report. The Auditors report to the shareholders does not contain any qualification, observation or adverse comment.
The Annual financial statements of the subsidiaries and related detailed information will be kept at the registered office of the Company and will also be available to investors seeking information at any time.
BOARD OF DIRECTORS
In accordance with the provisions of the Companies Act, 2013 and Companyâs Articles of Association, Mr. Sanat M. Shah retires by rotation and is eligible for re-appointment. The Board recommends his re-appointment. None of the independent directors are due for retirement.
Brief profile of Mr. Sanat M. Shah proposed to be re-appointed as Director of the Company is provided in the notice convening the ensuing Annual General Meeting.
Board Evaluation
Evaluation of performance of all Directors is undertaken annually. The Company has implemented a system of evaluating performance of the Board of Directors and of its Committees and individual Directors on the basis of a structured questionnaire which comprises evaluation criteria taking into consideration various performance related aspects. The Board of Directors has expressed their satisfaction with the evaluation process.
The statement indicating the manner in which formal annual evaluation of the Directors, the Board and Board level Committees are given in detail in the report on Corporate Governance, which forms part of this Annual Report.
Independent Directors also reviewed the performance of non-independent Directors and the Board as a whole in line with the Companyâs policy on Board Evaluation.
Appointment & Remuneration Policy
The Board of Directors had reviewed Policy for Appointment of Directors and Senior Management and Evaluation of Directorsâ Performance, annexed as âAnnexure Aâ.
Non Executive Directors
The Non Executive Directors are paid remuneration by way of Sitting Fees. During the year, the Company paid sitting fees of Rs.15,000/- per meeting to the NEDs for attending meetings of the Board & Audit Committee and Rs.9,000/- per meeting to the NEDs for attending Nomination & Remuneration Committee meeting.
Executive Directors
Executive Directors are paid remuneration by way of salary, perquisites, allowances and commission. Salary is paid within the range fixed by the members of the Company.
Management Staff
Remuneration of employees largely consists of basic remuneration, perquisites, allowances and performance incentives. The components of the total remuneration vary for different grades and are governed by industry patterns, qualifications and experience of the employee, responsibilities handled by him, his annual performance, etc.
DISCLOSURES
Meetings of the Board
Four Board Meetings were held during the year and the gap between any two Board Meetings was not more than one hundred and twenty days, thereby complying with applicable statutory requirements. The meetings were held on May 26, 2016, August 4, 2016, October 26, 2016 and February 9, 2017.
Board Committees
Audit Committee Mr. Hiten C. Timbadia, Chairman
Mr. Perses M. Bilimoria
Mr. Abhay J. Mehrotra
Stakeholders Relationship Committee
Mr. Perses M. Bilimoria, Chairman
Mr. Sanjay S. Shah
Mrs. Sohni H. Daswarn
Nomination & Remuneration Committee
Mr. Hiten C. Timbadia, Chairman
Mr. Perses M. Bilimoria
Mr. Abhay J. Mehrotra
CSR Committee
Mr. Pradeep S. Shah, Chairman
Mr. Bhupal B. Nandgave
Mr. Abhay J. Mehrotra
The details of various functions / role are provided separately under Corporate Governance Report of this Annual Report.
RELATED PARTY TRANSACTIONS
All related party transactions that were entered into during the financial year were on an armâs 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 or entities which may have a potential conflict with the interest of the Company at large.
All Related Party Transactions are placed before the Audit Committee as also the Board for approval. Attention of members is drawn to the disclosure of transactions with related parties set out in Note No. 33 of Standalone Financial Statements, forming part of the Annual Report.
The policy on Related Party Transactions as approved by the Board is available on website of the Company viz.: www.manugraph. com.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Company aims to further the socio economic welfare to the lesser privileged and to those in need through its CSR activities. Your Company lays special emphasis on education and vocational training of youth including females in the local community for their economic empowerment. In order to achieve this objective your Company continues to support Industrial Training Institutes.
Apart from the above, the Company provides education and other loans to employees which enable their children for higher education.
Since the Company has not earned average net profits in the last three financial years, the Company is not mandatorily required to contribute towards CSR activities. However, the Company spent Rs.5 Lakh towards health care and rehabilitation. The Annual Report on our CSR Activities is appended as âAnnexure Bâ to this report.
EXTRACTS OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT 9 is annexed herewith as âAnnexure Câ.
AUDITORS
The members of the Company at its Annual General Meeting held on August 27, 2014 have appointed M/s. Natvarlal Vepari & Co., Chartered Accountants, as the Statutory Auditors of the Company to hold office upto the conclusion of the fifth consecutive annual general meeting of the Company.
In terms of the first proviso to Section 139 of the Companies Act, 2013 the appointment of auditors shall be placed for ratification at every Annual General Meeting.
Accordingly, the appointment of M/s. Natvarlal Vepari & Co. as statutory auditors of the Company is placed for ratification by the shareholders.
M/s. Natvarlal Vepari & Co. has confirmed their eligibility for re-appointment as Statutory Auditors. M/s. Natvarlal Vepari & Co. has also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.
The report of the auditors to the shareholders is a part of the Annual Report. The notes to the Accounts, that are a part of the financial statements, are self-explanatory and need no further clarifications or explanations.
DIRECTORSâ RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:
(i) that in the preparation of the annual financial statements for the year ended March 31, 2017, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.
(ii) that such accounting policies have been selected and applied consistently and judgment and estimates have been made 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, 2017 and of the loss of the Company for the year ended on that date;
(iii) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(iv) that the annual financial statements have been prepared on a going concern basis;
(v) that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively;
(vi) that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
CORPORATE GOVERNANCE
The Companyâs philosophy is based on the values of transparency, customer satisfaction, integrity, professionalism and accountability. The Company adheres to corporate culture of integrity and consciousness. Corporate Governance is a journey for constantly improving sustainable value creation.
As required under the provisions of Regulation 34(3) read with Schedule V of the SEBI Listing Regulations, a separate report on Corporate Governance forms part of this Annual Report, together with a Certificate from the Auditors of the Company regarding compliance of conditions of Corporate Governance.
HUMAN RESOURCES
Employees are vital to the Company. Your Company considers that âthe power of knowledge engineeringâ is powered by its people. To achieve its aim of attracting, retaining and developing a committed workforce, your Company sustained various growth and developments initiatives during the year. However, Long-term settlement agreement with workers has delayed because of very high demand for hike in already high wage levels. The Company is at advance stage of negotiations for settlement with the Labour Union.
Your Company is committed to provide a healthy and safe work environment free from accidents, injuries and occupational health hazards.
The Company had a total of 1013 permanent employees as on March 31, 2017.
Particulars of Employees
The table containing the names and other particulars of employees in accordance with the provisions of Section 197 (12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is appended as âAnnexure Dâ.
The Company states that there are no employees (other than Managing Directors) employed throughout the financial year 201617 and drawing a salary of Rs.1.02 crore per annum or more or employed for part of the year and in receipt of remuneration of Rs.8.50 Lakhs or more per month as required under Section 197 of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The details of salary paid to Managing Directors are part of Corporate Governance Report, forming part of this Report.
SECRETARIAL AUDIT
M/s. Aashish K. Bhatt & Associates, a Company Secretary in Practice was appointed to conduct the secretarial audit of the Company for the financial year 2016-17 as required under Section 204 of the Companies Act, 2013 and Rules framed thereunder. The Report of the Secretarial Audit is annexed herewith as âAnnexure Eâ. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
COMPLIANCE WITH SECRETARIAL STANDARDS
The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Board Meetings and Annual General Meetings.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
RISK MANAGEMENT
Risks are an integral part of any business and the risk profile, to a great extent, depends on the climatic conditions, economic and business conditions and the markets and customers we serve.
To establish and maintain a system of risk management and internal control, the Board periodically reviews the risk management system and maintenance of a risk profile (both financial and non-financial risks).
A brief report on risk evaluation and management is provided under Managementâs Discussion and Analysis Report forming part of this Annual Report.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate systems for internal control that are commensurate with its size and the nature of operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information complying with applicable statutes, safeguarding assets from unauthorised use or losses executing transactions with proper authorisation and ensuring compliance of corporate policies.
To have a strong monitoring system in place, the Audit Committee reviews internal control systems. The Company has also appointed an independent Internal Audit Firms. These firms of Independent Chartered Accountants conduct audits on the basis of Annual Audit Plan, as approved by the Audit Committee of the Board, covering the factories and Office of the Company. The objective of such audits is to ensure adequacy of internal control systems and processes, adherence to the Companyâs policies and guidelines and compliance with applicable statutes.
These audits also determine whether adequate controls are in place to mitigate risks. Internal Audit has a follow-up process in place to verify the implementation of recommendations made.
During the year, such controls were tested and no reportable material weakness in the design or operation was observed.
WHISTLE BLOWER POLICY / VIGIL MECHANISM
The Board has adopted a Whistle Blower Policy to maintain highest standards of professionalism, honesty, integrity, ethical behaviour and to provide a vigil mechanism for Directors/Employees to voice concern in a responsible and effective manner about all protected disclosures concerning unethical matters involving serious malpractice, abuse or wrongdoing within the organisation.
The WB Policy also provides for adequate safeguards against victimization of Director(s) / Employees who avail of the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases.
The Whistle Blower Policy has been posted on the website of the Company viz. www.manugraph.com.
DISCLOSURE IN TERMS OF THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has set up an Internal Complaints Committee for providing a redressal mechanism pertaining to sexual harassment of women employees at workplace. During the year, there were no complaints relating to sexual harassment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 is annexed as âAnnexure Fâ.
CAUTIONARY STATEMENT
Statements in the Directorsâ Report & Management Discussion and Analysis describing the Companyâs objectives, projections, estimates, expectations or predictions may be forward looking statements. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Companyâs operations include cyclical demand, changes in government regulations, tax regimes, economic development and other ancillary factors.
APPRECIATIONS
Your Directors would like to thank all stakeholders, namely, customers, shareholders, dealers, suppliers, bankers, employees and all other business associates for the continuous support given by them to the Company and its Management.
For and on behalf of the Board
Sd/-
Sanat Shah
Chairman
Place: Mumbai
Date: 26-May-2017.
Mar 31, 2016
Dear Members,
The Directors have the pleasure in presenting this Forty Fourth Directors'' Report together with the audited Annual Accounts of the Company for the financial year ended March 31, 2016.
FINANCIAL PERFORMANCE
The highlights of the financial position for the year under review as compared to the corresponding period in the previous year are given below:
(Rs.in Lakhs)
Particulars |
Standalone |
Consolidated |
||
2015-16 |
2014-15 |
2015-16 |
2014-15 |
|
Total Income |
27734.97 |
22190.82 |
32155.81 |
26565.08 |
Total Expenses |
27073.17 |
23323.66 |
31272.78 |
27519.09 |
Profit before Taxation |
661.80 |
(1132.84) |
883.03 |
(954.01) |
Exceptional Item (Compensation under Voluntary Retirement Scheme) |
308.00 |
- |
308.00 |
- |
Tax Expense |
(244.52) |
(58.79) |
(64.03) |
39.03 |
Profit after Taxation |
598.32 |
(1074.05) |
639.06 |
(993.04) |
Earnings Per Share (in Rs.) (basic & considering exceptional items) |
1.97 |
(3.53) |
2.10 |
(3.26) |
DIVIDEND
Your Directors are pleased to recommend Dividend at 50% (Rs.1.00/- per Equity Share of Rs.2/- each) on equity shares for the year ended March 31, 2016, subject to the approval of shareholders at the ensuing annual general meeting of the Company. The Dividend distribution would result in cash outflow of Rs.366.08 Lakhs (including Dividend Distribution Tax).
OPERATIONS AND FINANCE
Your directors have analyzed Company''s operations and financials in detail in Management''s Discussion and Analysis.
PRINTING INDUSTRY
India is one of the largest markets for newspapers. 17 newspapers out of the world''s top 100 newspapers (based on circulation) are published in India. However, the printing industry is highly fragmented. The newspapers and magazine publishing section has the large printers mainly apart from a few in package, label and commercial printing. There is an ample opportunity for the printing sector in India because of large English knowing young population, increase in literacy rate, increase in life span (older people read more) and increase in number of smaller households (nuclear families) have led to a revolution in the printing industry.
Printing sector has evolved from a manufacturing industry into a service industry in India. The web-offset technique has entrenched itself in the newspaper industry worldwide because of its efficiency and speed and its adaptability to the latest technology and attachments. The Indian printing and newspaper industry has been equipping print plants to meet continuous and constant demand for printed materials in the form of vernacular editions of newspapers/news magazines, textbooks, workbooks, and exercise books.
COMPANY
The Company''s ability to get engaged with its clients at an early stage of their projects/expansion, providing better services and customized programs that help clients communicate more effectively, has resulted in decent growth in the current financial year over the previous financial years. This performance is particularly commendable when viewed against the backdrop of the extremely challenging business context in which it was achieved, namely, a sluggish macro-economic environment.
Your Company continues to face challenging external scenario including demand. However, with strengthening of its research, development and technical support mechanism, the Company is striving for more growth by developing new businesses.
MANAGEMENT''S DISCUSSION AND ANALYSIS
In terms of the provisions of Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred to as ''SEBI Listing Regulations''), the management''s discussion and analysis is set out in this Annual Report.
PUBLIC / FIXED DEPOSITS
Your Company has not accepted any public / fixed deposits during the year and as such no amount of interest and principal deposit was outstanding as on the balance sheet date.
SUBSIDIARIES
During the year under review, Company''s subsidiary has performed well despite slowdown in the global economies.
Performance of the wholly owned subsidiary company Manugraph Americas Inc. has been very satisfactory during the year. The company earned positive EBIDTA and Net profit during the year as a result of a combination of revenue enhancement and cost control measures.
A report on the performance and financial position of each of the subsidiaries, associates and joint ventures as per the Companies Act, 2013 is provided after Consolidated Financial Statements. The policy for determining material subsidiaries as approved by the Board may be accessed on the Company''s website viz. www.manugraph.com.
The Consolidated Financial Statements pursuant to Section 129(3) of the Companies Act, 2013, prepared in accordance with the Accounting Standards prescribed by the Institute of Chartered Accountants of India, forms part of this Annual Report. The Auditors report to the shareholders does not contain any qualification, observation or adverse comment.
BOARD OF DIRECTORS
In accordance with the provisions of the Companies Act, 2013 and Company''s Articles of Association, Mr. Pradeep S. Shah retires by rotation and is eligible for re-appointment. The Board recommends his re-appointment.
Brief profile of Mr. Pradeep S. Shah proposed to be re-appointed as Director of the Company is provided in the notice convening the ensuing Annual General Meeting.
Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and the SEBI Listing Regulations, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration Committees.
Independent Directors also reviewed the performance of non-independent Directors and the Board as a whole in line with the Company''s policy on Board Evaluation.
Appointment & Remuneration Policy
The Board of Directors had reviewed Policy for Appointment of Directors and Senior Management and Evaluation of Directors'' Performance, annexed as ''Annexure A''
Non Executive Directors
The Non Executive Directors are paid remuneration by way of Sitting Fees. During the year, the Company paid sitting fees of Rs.15,000/- per meeting to the NEDs for attending meetings of the Board & Audit Committee and Rs.9,000/- per meeting to the NEDs for attending Nomination & Remuneration Committee meeting.
Executive Directors
Executive Directors are paid remuneration by way of salary, perquisites, allowances and commission. Salary is paid within the range fixed by the members of the Company.
Management Staff
Remuneration of employees largely consists of basic remuneration, perquisites, allowances and performance incentives. The components of the total remuneration vary for different grades and are governed by industry patterns, qualifications and experience of the employee, responsibilities handled by him, his annual performance, etc.
DISCLOSURES
Meetings of the Board
During the financial year, the Board met 5 times. The meetings were held on May 27, 2015, August 13, 2015, October 27, 2015, January 5, 2016 and February 3, 2016.
Board Committees
Audit Committee Stakeholders Relationship Committee
Mr. Hiten C. Timbadia, Chairman Mr. Perses M. Bilimoria, Chairman
Mr. Perses M. Bilimoria Mr. Sanjay S. Shah
Mr. Abhay J. Mehrotra Mrs. Sohni H. Daswarn
Nomination & Remuneration Committee CSR Committee
Mr. Hiten C. Timbadia, Chairman Mr. Pradeep S. Shah, Chairman
Mr. Perses M. Bilimoria Mr. Bhupal B. Nandgave
Mr. Abhay J. Mehrotra Mr. Abhay J. Mehrotra
The details of various functions / role are provided separately under Corporate Governance Report of this Annual Report.
RELATED PARTY TRANSACTIONS
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 or entities which may have a potential conflict with the interest of the Company at large.
All Related Party Transactions are placed before the Audit Committee as also the Board for approval. Attention of members is drawn to the disclosure of transactions with related parties set out in Note No. 33 of Standalone Financial Statements, forming part of the Annual Report.
The policy on Related Party Transactions as approved by the Board is available on website of the Company viz.: www.manugraph. com.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Company aims to further the socio economic welfare to the lesser privileged and to those in need through its CSR activities.
Your Company lays special emphasis on education and vocational training of youth including females in the local community for their economic empowerment. In order to achieve this objective your Company continues to support Industrial Training Institutes.
Apart from the above, the Company provides education and other loans to employees which enable their children for higher education.
Since the Company does not have average net profits for the last three financial years, the Company is not mandatorily required to contribute towards CSR activities. However, the Company spent Rs. 1 Lakh towards CSR by way of providing financial aid to Prime Ministers'' Relief Fund for the victims of earthquake in Nepal. The Annual Report on our CSR Activities is appended as ''Annexure B'' to this report.
EXTRACTS OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT 9 is annexed herewith as ''Annexure C''.
AUDITORS
The members of the Company at its Annual General Meeting held on August 27, 2014 have appointed M/s. Natvarlal Vepari & Co., Chartered Accountants, as the Statutory Auditors of the Company to hold office up to the conclusion of the fifth consecutive annual general meeting of the Company.
In terms of the first proviso to Section 139 of the Companies Act, 2013 the appointment of auditors shall be placed for ratification at every Annual General Meeting.
Accordingly, the appointment of M/s. Natvarlal Vepari & Co. as statutory auditors of the Company is placed for ratification by the shareholders.
M/s. Natvarlal Vepari & Co. has confirmed their eligibility for re-appointment as Statutory Auditors. M/s. Natvarlal Vepari & Co. has also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.
The report of the auditors to the shareholders is a part of the Annexure. The notes to the Accounts, that are a part of the financial statements, are self-explanatory and need no further clarifications or explanations.
DIRECTORS'' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:
(i) that in the preparation of the annual financial statements for the year ended March 31, 2016, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.
(ii) that such accounting policies have been selected and applied consistently and judgment and estimates have been made 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, 2016 and of the profit of the Company for the year ended on that date;
(iii) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(iv) that the annual financial statements have been prepared on a going concern basis;
(v) that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively;
(vi) that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
CORPORATE GOVERNANCE
The Company''s philosophy is based on the values of transparency, customer satisfaction, integrity, professionalism and accountability. The Company adheres to corporate culture of integrity and consciousness. Corporate Governance is a journey for constantly improving sustainable value creation.
As required under the provisions of Regulation 34(3) read with Schedule V of the SEBI Listing Regulations, a separate report on Corporate Governance forms part of this Annual Report, together with a Certificate from the Auditors of the Company regarding compliance of conditions of Corporate Governance.
HUMAN RESOURCES
The Human Resource Function plays a key role in the overall business strategy. The Company is committed to creating an environment of learning and development through functional and leadership training programs, promote internal talent and wellbeing of its employees.
Your Company takes immense pride in providing an equal opportunity work environment, and places great emphasis on identifying, nurturing and freeing up talent. This involves a practice of encouraging youth, urging experienced colleagues to mentor people and processes, and inculcating a can-do culture that moulds itself to evolving personal aspirations and corporate goals throughout the career of an individual. Your Company believes that qualified and experienced people are its most important assets and follows policies that aim to attract and retain the best talent with a combination of monetary and non-monetary benefits.
The Company had a total of 1032 permanent employees as on March 31, 2016.
Particulars of Employees
The table containing the names and other particulars of employees in accordance with the provisions of Section 197 (12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is appended as ''Annexure D''.
The Company states that there are no employees (other than Managing Directors) employed throughout the financial year 2015-16 and drawing a salary of Rs. 60 Lakhs per annum or more or employed for part of the year and in receipt of remuneration of Rs. 5 Lakhs or more per month as required under Section 197 of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The details of salary paid to Managing Directors are part of Corporate Governance Report, forming part of this Report.
SECRETARIAL AUDIT
M/s. Aashish K. Bhatt & Associates, a Company Secretary in Practice was appointed to conduct the secretarial audit of the Company for the financial year 2015-16 as required under Section 204 of the Companies Act, 2013 and Rules framed there under. The Report of the Secretarial Audit is annexed herewith as ''Annexure E''. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
COMPLIANCE WITH SECRETARIAL STANDARDS
The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Board Meetings and Annual General Meetings.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
RISK MANAGEMENT
To establish and maintain a system of risk management and internal control, the Company has set up a policy which includes a review of the risk management system, and maintenance of a risk profile (both financial and non-financial risks). The Board reviews the effectiveness of the risk management and internal control systems. This system is designed to:
- identify, assess, monitor and manage risks.
- inform investors of material changes to the Company''s risk profile.
A brief report on risk evaluation and management is provided under Management''s Discussion and Analysis Report forming part of this Annual Report.
INTERNAL FINANCIAL CONTROLS
An extensive system of internal controls is practiced by the Company to ensure that all its assets are safeguarded and protected against loss from unauthorized use or disposition, and that transactions are authorized, recorded, and reported correctly.
The Company has an internal control system that is geared towards achieving efficiency in operations, optimum utilization of resources, effective monitoring, and compliance with all applicable laws and regulations. An extensive programme of internal audits, reviews by management, and documented policies, guidelines and procedures, supplements the internal control systems that are designed to ensure reliability of financial and all other records to prepare financial statements and other data, and to maintain accountability of assets.
During the year, such controls were tested and no reportable material weakness in the design or operation was observed.
WHISTLE BLOWER POLICY
The Company has in place a Whistleblower Policy / Vigil Mechanism to deal with unethical behavior, victimization, fraud and other grievances or concerns, if any.
The WB Policy also provides for adequate safeguards against victimization of Director(s) / Employees who avail of the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases.
The Whistle Blower Policy has been posted on the website of the Company viz. www.manugraph.com.
DISCLOSURE IN TERMS OF THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The policy on Prevention and Redressal of Sexual Harassment is adopted by the Company and the Company had constituted Internal Complaints Committee for redressal of complaints and to prevent sexual harassment. During the year, there were no complaints relating to sexual harassment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 is annexed as ''Annexure F''.
CAUTIONARY STATEMENT
Statements in the Directors'' Report & Management Discussion and Analysis describing the Company''s objectives, projections, estimates, expectations or predictions may be forward looking statements. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Company''s operations include cyclical demand, changes in government regulations, tax regimes, economic development and other ancillary factors.
APPRECIATIONS
The Board wishes to place on record its gratitude for the assistance and co-operation received from the Banks, Government Authorities, Customers, Vendors, and all its members for the trust and confidence reposed on the Company. The Board also expresses its deep sense of appreciation to all employees of the Company for their strong work ethic, teamwork, commitment and initiative, which has led to the Company making commendable progress in today''s challenging environment.
For and on behalf of the Board
Sd/-
Sanat Shah
Chairman
Place: Mumbai
Date: 26-May-2016.
Mar 31, 2015
Dear Members,
The Directors have the pleasure in presenting this Forty Third
Directors' Report together with the audited Annual Accounts of the
Companyfor thefinancialyearended March31, 2015.
FINANCIAL PERFORMANCE
The highlights of the financial position for the year under review as
compared to the corresponding period in the previous year are given
below:
(Rs in lakhs)
Standalone
Particulars 2014-15 2013-14
Total Income 22190.82 26053.45
Total Expenses 23323.66 26254.49
Profit before Taxation (1132.84) (1280.16)
Tax Expense (58.79) (503.89)
Profit after Taxation (1074.05) (776.27)
Earnings Per Share (in Rs)
(basic&consideringexceptionalitems) (3.53) (2.55)
Consolidated
Particulars 2014-15 2013-14
Total Income 26565.08 31045.34
Total Expenses 27519.09 31146.31
Profit before Taxation (954.01) (1180.08)
Tax Expense 39.03 (376.46)
Profit after Taxation (993.04) (803.62)
Earnings Per Share (in Rs.) - -
(basic & considering exceptional items) (3.26) (2.64)
DIVIDEND
Despite the Company's decreasing sales and losses, and considering the
dividend payment track record, your Directors are pleased to recommend
Dividend at 25% (Rs. 0.50/- per Equity Share of Rs. 2/- each) on equity
shares for the year ended March 31, 2015, subject to the approval of
shareholders at the ensuing annual general meeting of the Company. The
Dividend distribution would result in cash outflow of Rs. 183.04 Lakhs
(including Dividend Distribution Tax).
OPERATIONS AND FINANCE
Your directors have analyzed Company's operations and financials in
detail in Management's Discussion and Analysis.
PRINTING INDUSTRY
The Printing Industry is divided into several sectors such as newspaper
publishing, book printing, commercial printing, package printing, etc.
The advent of electronic and digital technology have impacted the
circulation of large newspapers especially in developed continents of
the world such as America and Europe. Unfortunately very surprisingly,
these newspapers while printing over 200 pages were relying heavily on
printing advertisements. The revenues were largely generated out of
advertisements and not readership.
The severe market crash of 2007 adversely affected the American and
European newspaper industry. Besides above, the internet and television
have to some extent influenced the readership of newspaper.
It was once visualized that demand for printing books, novels and
magazines will deplete with onset of electronic publishing. However,
it has been noticed that the demand for printed books increased
substantially and also number of magazines and periodicals have grown
manifold.
Due to reduction in demand for newspaper machines of large value,
overall production reduced substantially worldwide. In developing
countries, the demand for medium size machines is showing improvement
due to decentralization ofprintingjobs.
With the general economic conditions improving in developing countries
like Africa, South East Asia including India, we expect demand of
medium size printing machines will increase in the near future.
COMPANY
Our Company manufactures machines ofvarious sizes catering to small,
medium and large customers based on its reguirements. The Company has
invested heavily both in manpower and capital.
The Company is also considering diversifying into other related areas
such as packaging either by developing In-house technology or
throughjoint ventures. Until such time, the Company's performance would
be under pressure. The Company is also making efforts to reduce cost
thereby minimizing losses and earning profits.
MANAGEMENT'S DISCUSSION AND ANALYSIS
In terms of the provisions of Clause 49 of the Listing Agreement, the
management's discussion and analysis is set out in this Annual Report.
PUBLIC / FIXED DEPOSITS
Your Company has not accepted any public / fixed deposits during the
year and as such no amount of interest and principal deposit was
outstanding as on the balance sheet date.
SUBSIDIARIES
During theyear under review, Company's subsidiary has performed well
despite slowdown in the global economies.
Performance of the wholly owned subsidiary company Manugraph Americas
Inc. has been very satisfactory during the year. We achieved a break-
through in introducing Indian manufactured presses in the North
American market during the year. The company earned positive EBIDTA and
Net profit during the year as a result of a combination of revenue
enhancement and cost control measures.
A report on the performance and financial position of each of the
subsidiaries, associates andjoint ventures as per the Companies Act,
2013 is provided after Consolidated Financial Statements. The policy
for determining material subsidiaries as approved by the Board may be
accessed on the Company's website viz. www.manugraph.com.
BOARD OF DIRECTORS
The members of the Company vide resolutions passed through Postal
Ballot (including E-Voting) appointed the existing Independent
Directors viz. Mr. Hiten C. Timbadia, Mr. Amit N. Dalal, Mr. Perses M.
Bilimoria, Mr. Abhay J. Mehrotra and Mr. Jai S. Diwanji as Independent
Directors each for a period of 5 years w.e.f. March 2,2015.
The Board of Directors on the recommendation of the Nomination &
Remuneration Company, appointed Mrs. Sohni H. Daswani asan Additional
Independent Director of the Company w.e.f. March 26, 2015.
Mrs. Sohni holds office only upto the date of the forthcoming AGM and a
Notice under Section 160(1) of the Act has been received from a Member
signifying its intention to propose Mrs. Sohni's appointment as a
Director.
Necessary declaration has been received from Mrs. Sohni H. Daswani that
she meets the criteria of Independence prescribed under Section 149(6)
of the Act and the Companies (Appointment and Qualification of
Directors) Rules, 2014 and Clause 49 of the Listing Agreement.
Your Directors recommend the appointment of Mrs. Sohni H. Daswani asan
Independent Director for a period of 5 years, not liable to retire by
rotation.
In accordance with the provisions of the Companies Act, 2013 and
Company's Articles of Association, Mr. Sanjay S. Shah retires by
rotation and is eligible for re-appointment. The Board recommends his
re-appointment.
Brief profiles of Mrs. Sohni H. Daswani and Mr. Sanjay S. Shah proposed
to be re-appointed as Directors of the Company are provided in the
notice convening the ensuing Annual General Meeting.
Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance, the directors individually as well
as the evaluation of the working of its Audit, Nomination &
Remuneration Committees.
Independent Directors also reviewed the performance of non-independent
Directors and the Board as a whole in line with the Company's policy on
Board Evaluation.
Appointment & Remuneration Policy
During the year, the Board of Directors adopted Policy for Appointment
of Directors and Senior Management and Evaluation of Directors'
Performance, annexed as 'Annexure A'
Non Executive Directors
The Non Executive Directors are paid remuneration by way of Sitting
Fees. During the year, the Company paid sitting fees of Rs. 10,000/- per
meeting to the NEDs for attending meetings of the Board & Nomination &
Remuneration Committee and Rs. 6,000/- per meeting to the NEDs for
attending Audit Committee meeting.
Executive Directors
Executive Directors are paid remuneration by way of salary,
perguisites, allowances and commission. Salary is paid within the range
fixed by the members of the Company.
Management Staff
Remuneration of employees largely consists of basic remuneration,
perguisites, allowances and performance incentives. The components of
the total remuneration vary for different grades and are governed by
industry patterns, gualifications and experience ofthe employee,
responsibilities handled by him, his annual performance etc.
DISCLOSURES:
Meetings of the Board
During the financial year, the Board met 5 times. The meetings were
held on May 27, 2014, August 11, 2014, October 31, 2014, February 2,
2015 and March 26, 2015.
Board Committees
Audit Committee Stakeholders Grievance Committee
Mr. Hiten C. Timbadia, Chairman Mr. Perses M. Bilimoria, Chairman
Mr. Perses M. Bilimoria Mr. Sanjay S. Shah
Mr. Abhay J. Mehrotra
Nomination & Remuneration Committee CSR Committee
Mr. Hiten C. Timbadia, Chairman Mr. Pradeep S. Shah, Chairman
Mr. Perses M. Bilimoria Mr. Bhupal B. Nandgave
Mr. Abhay J. Mehrotra Mr. Abhay J. Mehrotra
The details of various functions / role are provided separately under
Corporate Governance Report of this Annual Report. RELATED PARTY
TRANSACTIONS
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 or entities which may
have a potential conflict with the interest of the Company at large.
All Related Party Transactions are placed before the Audit Committee as
also the Board for approval. Attention of members is drawn
to the disclosure of transactions with related parties set out in Note
No. 35 of Standalone Financial Statements, forming part of the Annual
Report.
The policy on Related Party Transactions as approved by the Board is
available on website of the Company viz.: www.manugraph.com.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Pursuant to the provisions of Section 135 of the Companies Act, 2013
read with the Companies (Corporate Social Responsibility Policy) Rules,
2014, the Company needs to spend atleast 2% of its average net profits
of the preceding three financial years in pursuance of Corporate Social
Responsibility Policy.
The Company appreciates the endeavor of the Indian Government on
commitment towards Corporate Social Responsibility. The Company
provides education and other loans at a nominal rate to employees which
enable their children for higher education. The Annual Report on our
CSR Activities is appended as 'Annexure B' to this report.
In view of losses for the past two financial years, the Company could
not meet its entire obligation towards CSR activities. However, the
Companywould strive to pursue its CSR activities in the comingyears.
EXTRACTS OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form
MGT9is annexed herewith as 'Annexure C'.
AUDITORS
The members of the Company at its Annual General Meeting held on August
27, 2014 have appointed M/s. Natvarlal Vepari & Co., Chartered
Accountants, as the Statutory Auditors of the Company to hold office
upto the conclusion of the fifth consecutive annual general meeting
ofthe Company.
In terms ofthe first proviso to Section 139 ofthe Companies Act, 2013
the appointment ofauditors shall be placed for ratification at every
Annual General Meeting.
Accordingly, the appointment of M/s. Natvarlal Vepari & Co. as
statutory auditors of the Company is placed for ratification by the
shareholders.
M/s. Natvarlal Vepari & Co. has confirmed their eligibility for
re-appointment as StatutoryAuditors. M/s. Natvarlal Vepari & Co. has
also confirmed that they hold a valid certificate issued by the Peer
Review Board of the Institute of Chartered Accountants of India.
Your directors recommend reappointment of M/s. Natvarlal Vepari & Co.,
Chartered Accountants as Statutory Auditors of the Company for the
financial year 2015-16.A resolution to the effect is placed foryour
consideration and approval.
Members' attention is invited to the observation made by the Auditors
under 'Emphasis of Matter" appearing in the Auditors Reports.
DIRECTORS' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanations obtained by them, your Directors make the
following statements in terms ofSection 134(3)(c) ofthe CompaniesAct,
2013:
(i) that in the preparation of the annual financial statements for the
year ended March 31, 2015, the applicable accounting standards have
been followed along with proper explanation relating to material
departures, if any.
(ii) that such accounting policies have been selected and applied
consistently andjudgment and estimates have been made 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, 2015 and of the loss of the
Company for the year ended on that date;
(iii) that proper and sufficient care has been taken for the
maintenance of adeguate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(iv) that the annual financial statements have been prepared on a going
concern basis;
(v) that proper internal financial controls were in place and that the
financial controls were adeguate and were operating effectively;
(vi) that systems to ensure compliance with the provisions of all
applicable laws were in place and were adeguate and operating
effectively.
CORPORATE GOVERNANCE
The Company's philosophy is based on the values of transparency,
customer satisfaction, integrity, professionalism and accountability.
The Company adheres to corporate culture of integrity and
consciousness. Corporate Governance is ajourney for constantly
improving sustainable value creation.
As reguired under the provisions of Clause 49 of the Listing Agreement,
a separate report on Corporate Governance forms part of this Annual
Report, together with a Certificate from the Auditors of the Company
regarding compliance of conditions of Corporate Governance.
HUMAN RESOURCES
The Human Resource function of your organization is actively pursuing
the agenda of supporting the organization in its strategic objectives.
Key HR processes and practices have been strengthened and streamlined
in order to support the global scale of the organization.
Human Resource Development practices in your Company are guided by the
principles of relevance, consistency and fairness based on the premise
that what is done in the Human Resource Development is as critical as
how it is done. Taken together, these initiatives and processes are
making a positive impact on talent attraction, retention and
commitment.
The approach to progressive employee relations characterised by the
core principles of trusteeship, fairness and eguity, industrial
democracy and partnership with enlightened trade unions, has stood the
test of time in your Company. Your Company continues to set a fine
record of industrial harmony.
The Company had a total of 1089 permanent employees as on March 31,
2015.
Particulars of Employees
The table containing the names and other particulars of employees in
accordance with the provisions of Section 197 (12) of the Companies
Act, 2013 read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, is appended as
'Annexure D'.
The Company states that there are no employees (other than Managing
Directors) employed throughout the financial year 2014- 15 and drawing
a salary of Rs. 60 Lakhs per annum or more or employed for part of the
year and in receipt of remuneration of Rs. 5 Lakhs or more per month as
reguired under Section 197 of the Companies Act, 2013 read with Rule
5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014. The details of salary paid to the Managing
Directors are part ofthe Corporate Governance Report, forming part
ofthis Report.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s. Aashish K. Bhatt
& Associates, a Company Secretary in Practice to undertake the
Secretarial Audit of the Company. The Report of the Secretarial Audit
Report is annexed herewith as 'Annexure E'.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are given in the
notes to the Financial Statements.
RISK MANAGEMENT
The Company manages and monitors principal risks and uncertainties that
can impact the ability of the Company to achieve its targets /
objectives. Timely reports are placed before the board for considering
various risks involved in the Company business / operations. The Board
evaluates these reports and necessary/corrective actions are then
implemented.
A brief report on risk evaluation and management is provided under
Management's Discussion and Analysis Report forming part of this Annual
Report.
INTERNAL FINANCIAL CONTROLS
The Company has in place adeguate internal financial controls with
reference to financial statements. During the year, such controls were
tested and no reportable material weakness in the design or operation
was observed.
WHISTLE BLOWER POLICY
The Company has a Whistle Blower Policy (the "WB Policy") with a view
to provide vigil mechanism to Directors, employees and other
stakeholders to disclose instances of wrongdoing in the workplace and
report instances of unethical behavior, actual or suspected fraud or
violation of the Company's code of conduct or ethics policy. The WB
Policy also states that this mechanism should also provide for adeguate
safeguards against victimization of Director(s) / Employees who avail
of the mechanism and also provide for direct access to the Chairman of
the Audit Committee in exceptional cases The Whistle Blower Policy has
been posted on the website of the Company viz.
http://www.manugraph.com/frmFinancialReport.aspx and the details of the
same are explained in the Report on Corporate Governance forming part
of this Annual Report.
DISCLOSURE IN TERMS OF THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company takes all necessary measures to ensure a harassment-free
workplace and has instituted an Internal Complaints Committee for
redressal of complaints and to prevent sexual harassment. During the
year, there were no complaints relating to sexual harassment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo stipulated under Section 134(3)(m)
ofthe CompaniesAct, 2013 read with the Companies (Accounts) Rules, 2014
is annexed as 'Annexure F'.
APPRECIATIONS
Your Directors take this opportunity to thank the customers,
shareholders, suppliers, bankers, business partners/associates,
financial institutions and Central and State Governments for their
consistent support and encouragement to the company. The Board places
on record its appreciation for the dedication and commitment ofthe
employees at all levels, which has continued to be our major strength.
For and on behalf of the Board
Sd/-
Sanat Shah
Chairman
Place: Mumbai
Date: 27-05-2015
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting the forty-second Annual
Report and audited accounts for the year ended 31st March, 2014.
FINANCIAL HIGHLIGHTS
Particulars April to March April to March
2013-2014 2012-2013
(Rs. in Lakhs) (Rs. in Lakhs)
Profit for the year 825.28 2,947.98
Less: Depreciation 1,026.31 1,079.08
Profit/(Loss) before exceptional
item (201.03) 1,868.90
Less: Exceptional item 1,079.12 -
Profit/(Loss) before tax (1,280.15) 1,868.90
Less: Tax (503.89) 630.39
Profit/(Loss) after tax (776.26) 1,238.51
Add: Balance in profit and loss
account 11,600.96 11,021.22
10,824.70 12,259.73
Less: Appropriations
Proposed dividend 304.15 456.23
Tax on proposed dividend 49.33 77.54
Transfer to general reserve - 125.00
Closing balance 10,471.22 11,600.96
DIVIDEND
Your Directors recommend dividend of Re. 1/- per equity share of Rs.
2/- each (Previous year Rs. 1.50 per share of Rs. 2/- each) subject to
the approval of the members at the ensuing Annual General Meeting.
FIXED DEPOSITS
During the year, the Company has not accepted/renewed any deposits. The
balance in the fixed deposit account as on 31st March, 2014 was Nil.
INSURANCE
The buildings, plant and machinery, stock in trade and standing charges
have been adequately and appropriately insured.
CAPITAL EXPENDITURE
Your Company incurred Rs. 179.53 lakhs towards capital expenditure
consisting of buildings, plant and machinery and other fixed assets
during the year under review, which will continue in the current year
2014-15 to improve, enhance and modernise both the plants.
CONSOLIDATED ACCOUNTS
In accordance with the requirements of Accounting Standard AS-21,
prescribed by the Institute of Chartered Accountants of India, the
consolidated accounts of the Company and its subsidiaries are annexed
to this report.
SUBSIDIARY COMPANIES
In terms of the General Circular No. 2/2011 dated February 8, 2011 read
together with General Circular No. 3/2011 dated February 21, 2011,
issued by the Government of India - Ministry of Corporate Affairs under
Section 212(8) of the Companies Act, 1956, granting general exemption
to Companies from attaching Balance Sheets/Annual Accounts of
Subsidiary Companies subject to fulfillment of conditions stated in the
circular, copies of the Balance Sheet, Profit and Loss Account, Report
of the Board of Directors and Auditors Report of the subsidiary
Companies viz. Constrad Agencies (Bombay) Pvt. Ltd. and Manugraph
Americas Inc., for the year ended 31st March, 2014 are not attached to
the Balance Sheet of the Company as the Company has fulfilled the
following conditions:
(i) The Board of Directors of the Company has vide resolution dated
27th May, 2014 consented for not attaching the balance sheet(s) of the
concerned subsidiary Companies;
(ii) The Company has presented in its Annual Report, the consolidated
financial statements of Company and subsidiaries duly audited by its
statutory auditors;
(iii) The Consolidated financial statements have been prepared in
strict compliance with the applicable Accounting Standards and Listing
Agreement as prescribed by the Securities and Exchange Board of India;
(iv) The Company has disclosed in the Annual Report the following
information in aggregate for each subsidiary Company, (a) Capital (b)
Reserves (c) Total Assets (d) Total Liabilities (e) Details of
Investment (except in case of investment in the subsidiaries) (f)
Turnover (g) Profit before taxation (h) Provision for taxation (i)
Profit after taxation and (j) Proposed dividend;
(v) The annual accounts and other related detailed information of the
following subsidiaries shall be made available to shareholders of the
Company and subsidiary Companies seeking such information at any point
of time:
(a) Constrad Agencies (Bombay) Pvt. Ltd.,
(b) Manugraph Americas Inc,
(vi) Further, the annual accounts of the subsidiary Companies shall
also be kept for inspection by any shareholder at the Registered Office
of the Company and of the subsidiary Companies concerned and the
Company shall furnish a hard copy of the details of accounts of
subsidiaries to any shareholder on demand;
(vii) The Company as well as subsidiary Companies shall regularly file
such data with the various regulatory and Government authorities as may
be required by them;
(viii) The Company has given Indian rupee equivalent of the figures
given in foreign currency appearing in the accounts of the subsidiary
Company along with the exchange rate as on closing day of the financial
year.
CORPORATE GOVERNANCE
Your Company is fully committed to the philosophy of conducting its
business with due compliance of laws, rules and regulations. The sound
internal control and efficient management information systems, which
play a pivotal role in corporate governance, are in place in your
Company.
We are pleased to inform you that your Company has complied in all
material respects with the features of corporate governance as
specified in the Listing Agreement. A certificate of compliance from
the statutory auditors together with a report on corporate governance
forms part of this report.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and
Company''s articles of association, Mr. Hiten C. Timbadia and Mr. Jai
S. Diwanji retire by rotation and are eligible for re-appointment. The
Board recommends their re-appointment.
Brief profiles of Mr. Hiten C. Timbadia and Mr. Jai S. Diwanji proposed
to be re-appointed as Directors of the Company are given in Annexure A
to the notice convening the ensuing Annual General Meeting.
AUDITORS
Messrs Natvarlal Vepari & Co., Chartered Accountants, Mumbai, Firm
Registration No. 106971W, the auditors of the Company will retire from
the office of the auditors at the forthcoming Annual General Meeting
and being eligible offer themselves, for re-appointment. The board
recommends their re-appointment.
COST AUDITORS
Pursuant to the requirements of Ministry of Corporate Affairs (MCA),
New Delhi, the Board of Directors, has accorded its approval for the
re-appointment of Mr. Chandrashekhar Adawadkar, Cost Accountant, Pune,
having Membership No. 22758 subject to the necessary approval of MCA,
if required, for Cost Audit for the year 2014-15.
The due date for filing of the Cost Audit Reports for the financial
year 2012-13 was 26th September, 2013. The Company had filed the
Reports with the Ministry of Corporate Affairs on 26th September, 2013.
The due date for filing of the Cost Audit Report for the financial year
2013-14 is 26th September, 2014. The Company will file the Cost Audit
Report for the financial year 2013-14 with the Ministry of Corporate
Affairs on or before the said date.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 21 7(2AA) of the Companies Act, 1 956, the
directors confirm that, to the best of their knowledge and belief:
(i) in the preparation of the annual accounts, the applicable
accounting standards have been followed alongwith proper explanation
relating to material departures;
(ii) the directors have selected such accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at 31st March, 2014 and of the profit of the Company
for the year ended on that date;
(iii) the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1 956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(iv) the annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information pursuant to 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 is given as Annexure B to this report.
ACKNOWLEDGEMENTS
The Directors would like to thank the employee unions, shareholders,
customers, suppliers, bankers, financial institutions, all other
business associates and various departments of Central Government and
State Government for the continuous support given by them to the
Company and their confidence in its management.
For and on behalf of the Board
S.M. SHAH
Chairman
Mumbai
Dated 27th May, 2014
Mar 31, 2013
Dear Shareholders,
The Directors have pleasure in presenting the forty-first Annual
Report and audited accounts for the year ended 31st March, 2013.
FINANCIAL HIGHLIGHTS
Particulars April to March April to March
2012-2013 2011-2012
(Rs. In Lakhs) (Rs. in Lakhs)
Profit for the year 2,947.98 6,294.48
Less: Depreciation 1,079.08 1,107.65
Profit before exceptional item 1,868.90 5,186.83
Less: Exceptional item 6,000.00
Profit before tax 1,868.90 (813 17)
Less: Tax 630.39 1,567.11
Profit after tax 1,238.51 (2,380 28)
Add: Balance in profit
and loss account 11,021.22 4,685.23
12,259.73 2,304.95
Add: Amount transferred
from general reserve 10,000.00
12,259.73 12,304.95
Less: Appropriations
Proposed dividend 456.23 760.38
Tax on proposed dividend 77.54 123.35
Transfer to general reserve 125.00 400.00
Closing balance 11,600.96 11,021.22
DIVIDEND
Your Directors recommend dividend of Rs. 1.50 per equity share of
Rs.2/- each (Previous year Rs.2.50 per share of Rs.2/- each) subject to
the approval of the members at the ensuing Annual General Meeting.
FIXED DEPOSITS
During the year, the Company has not accepted/renewed any deposits. The
balance in the fixed deposit account as on 31 st March, 2013 was Nil.
INSURANCE
The buildings, plant and machinery, stock in trade, standing charges
and loss of profits have been adequately and appropriately insured.
CAPITAL EXPENDITURE
Your Company incurred Rs.409.32 lakhs towards capital expenditure
consisting of buildings, plant and machinery and other fixed assets
during the year under review, which will continue in the current year
2013-14 to improve, enhance and modernise both the plants.
CONSOLIDATED ACCOUNTS
fn accordance with the requirements of Accounting Standard AS-21,
prescribed by the institute of Chartered Accountants of India, the
consolidated accounts of the Company and its subsidiaries are annexed
to this report.
SUBSIDIARY COMPANIES
The name of one of the subsidiary companies had been changed from
Manugraph DGM Inc to "Manugraph Americas, Inc."
In terms of the General Circular No. 2/2011 dated February 8, 2011 read
together with General Circular No. 3/2011 dated February 21, 2011,
issued by the Government of India - Ministry of Corporate Affairs under
Section 212(8) of the Companies Act, 1956, granting general exemption
to companies from attaching Balance Sheets/Annual Accounts of
Subsidiary companies subject to fulfillment of conditions stated in the
circular, copies of the Balance Sheet, Profit and Loss Account, Report
of the Board of Directors and Auditors Report of the subsidiary
companies viz. Ccnstrad Agencies (Bombay) Pvt. Ltd. and Manugraph
Americas Inc., for the year ended 31st March, 2013 are not attached to
the Balance
Sheet of the Company as the Company has fulfilled the following
conditions:
(i) The Board of Directors of the Company has vide resolution dated
29th May, 2013 consented for not attaching the balance sheet(s) of the
concerned subsidiary companies;
(ii) The Company has presented in its Annual Report, the consolidated
financial statements of Company and subsidiaries duly audited by its
statutory auditors;
(iii) The Consolidated financial statements have been prepared in
strict compliance with the applicable Accounting Standards and Listing
Agreement as prescribed by the Securities and Exchange Board of India;
(iv) The Company has disclosed in. the Annual Report the following
information in aggregate for each subsidiary company, {a} Capital fb)
Reserves fc) Total Assets (d) Total Liabilities (e) Details of
Investment |except in case of investment in the subsidiaries) (f)
Turnover (g) Profit before taxation (h) Provision for taxation (i)
Profit after taxation and (j) Proposed dividend;
(v) The annual accounts and other related detailed information of the
following subsidiaries shall be made available to shareholders of the
Company and subsidiary companies seeking such information at any point
of time:
(a) Constrad Agencies |Bombay) Pvt. Ltd.,
(b) Manugraph Americas Inc,
(vi) Further, the annual accounts of the subsidiary companies shall
also be kept for inspection by any shareholder at the Registered Office
of the Company and of the subsidiary companies concerned and the
company shall furnish a hard copy of the details of accounts of
subsidiaries to any shareholder on demand;
(vii) The Company as well as subsidiary companies shall regularly file
such data with the various regulatory and Government authorities as may
be required by them;
(viii) The Company has given Indian rupee equivalent of the figures
given in foreign currency appearing in the accounts of the subsidiary
company along with the exchange rate as on closing day of the financial
year.
CORPORATE GOVERNANCE
Your company is fully committed to the philosophy of conducting its
business with due compliance of laws, rules and regulations. The sound
internal control and efficient management information systems, which
play a pivotal role in corporate governance, are in place in your
Company.
We are pleased to inform you that your Company has complied in all
material respects with the features of corporate governance as
specified in the Listing Agreement. A certificate of compliance from
the statutory auditors together with a report on corporate governance
forms part of this report.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and
Company''s articles of association, Mr. Sanat M. Shah and Mr. Abhay J.
Mehrotra retire by rotation and are eligible for re-appointment. The
Board recommends their re-appointment.
Mr. Bhupal B. Nandgave was appointed as an additional director w.e.f.
10th December, 2012.
On the recommendation of Remuneration Committee, the Board of
Directors, has appointed Mr. Bhupal B. Nandgave as Whole-time Director
(Works) for a period of 3 years w.e.f. 10th December, 2012 subject to
the approval of the members of the company at the ensuing Annual
General Meeting.
Similarly, on the recommendation of Remuneration Committee, the Board
of Directors, has re-appointed Mr. Sanjay S. Shah as Vice Chairman &
Managing Director for a period of 3 years w.e.f. 1st April, 2013 and
Mr. Pradeep S. Shah as Managing Director for a period cf 3 years w.e.f.
1st April, 2013 subject to the approval of the members of the company
at the ensuing Annual General Meeting and subject to approval of
Central Government.
The Company has filed a criminal and civil case against Mr. S. M.
Mordekar under provisions of various sections of Indian Penal Code,
I860 and Indian Copy Right Act, 1957 on account of his malafide conduct
and the same is pending before Kolhapur Metropolitan Magistrate Court
and Bombay High Court. As the result of this act he was required to
vacate the office of Director in terms of provisions of Section 283 of
the Companies Act, 1956 and therefore, Mr. S. M. Mordekar who was
appointed as Whole-time Director (Works) on 29th October, 2010 has
ceased to be Director and also Whole-time Director w.e.f. 9th January,
2013.
Brief profiles of Mr. Sanat M. Shah, Mr. Abhay J. Mehrotra, Mr. Bhupal
B. Nandgave, Mr. Sanjay S. Shah and Mr. Pradeep S. Shah proposed to be
re-appointed/appointed as Directors of the Company are given in
Annexure A to the notice convening the ensuing Annual General Meeting.
AUDITORS
Messrs Natvarlal Vepari & Co., Chartered Accountants, Mumbai, Firm
Registration No. 106971W, the auditors of the company will retire from
the office of the auditors at the forthcoming Annual General Meeting
and being eligible offer themselves, for re-appointment. The board
recommends their re-appointment.
COST AUDITORS
Pursuant to the requirements of Ministry of Corporate Affairs (MCA),
New Delhi, the Board of Directors, subject to the approval of MCA, has
appointed Mr. C. S. Adawadkar, Cost Accountant, Pune, for Cost Audit
for the year 2013-14.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the directors
confirm that, to the best of their knowledge and belief:
(i) in the preparation of the annual accounts, the applicable
accounting standards have been followed alongwith proper explanation
relating to material departures;
(ii) the Directors have selected such accounting policies and applied
them consistently and made judgements 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 31 st March, 2013, and of the profit of the
Company for the year ended on that date;
(iii) 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;
(iv) the annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information pursuant to 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 is given as Annexure B to this report.
ACKNOWLEDGEMENTS
The Directors would like to thank the employee unions, shareholders,
customers, suppliers, bankers, financial institutions, all other
business associates and various departments of Central Government and
State Government for the continuous support given by them to the
company and their confidence in its management.
For and on behalf of the Board
S. M. SHAH Chairman
Mumbai
Dated 29th May, 2013
Mar 31, 2012
The Directors have pleasure in presenting the fortieth Annual Report
and audited accounts for the year ended 31st March, 2012.
FINANCIAL HIGHLIGHTS
Particulars April to March April to March
2011-2012 2010-2011
(Rs. in Lakhs) (Rs. in Lakhs)
Profit for the year 6,294.48 4,272.89
Less: Depreciation 1,107.65 1.024.06
Profit before exceptional item 5,186.83 3,248.83
Less: Exceptional item 6,000.00 -
Profit before tax (813.17) 3,248.83
Less: Tax 1,567.11 1,01 1.09
Profit after tax (2,380.28) 2,237.74
Add. Balance in profit and
loss account 4,685.23 3.277 73
2,304.95 5.515.47
Add: Amount transferred from
general reserve 10,000.00 -
12,304.95 5,515.47
Less: APPROPRIATIONS
Proposed dividend 760.38 456.23
Tax on proposed dividend 123.35 74.01
Transfer to general reserve 400.00 300 00
Closing balance 11,021.22 4,685.23
DIVIDEND
Your Directors recommend dividend of Rs. 2.50 per equity share of Rs.
2/- each (Previous year Rs. 1.50 per share of Rs. 2/- eachj subject to
the approval of the members at the ensuing Annual General Meeting.
FIXED DEPOSITS
During the year, the company has not accepted / renewed any deposits.
The balance in the fixed deposit account as on 31 st March, 2012 was
Nil.
INSURANCE
The buildings, plant and machinery, stock-in-trade, standing charges
and loss of profits have been adequately and appropriately insured.
CAPITAL EXPENDITURE
Your company incurred Rs. 339.05 lakhs towards capital expenditure
consisting of buildings, plant and machinery and other fixed assets
during the year under review, which will continue in the current year
2012-13 to improve, enhance and modernise both the plants.
CONSOLIDATED ACCOUNTS
In accordance with the requirements of Accounting Standard AS - 21,
prescribed by the Institute of Chartered Accountants of India, the
consolidated accounts of the company and its subsidiaries are annexed
to this report.
SUBSIDIARY COMPANIES
The performance of the American subsidiary company - Manugraph DGM Inc.
has been satisfactory during this financial year with a healthy revenue
growth and operational profit. Investment made in this company was
tested for Impairment during the year. A detailed valuation exercise
was carried out by consultants, and based on the same, an amount of Rs.
60 crores has been provided as impairment in the accounts, to comply
with mandatory accounting standard AS-13.
During the year under review, Manugraph Kenya Limited ceased to be a
subsidiary of the company with effect from 30th March, 2012 due to sale
of shares of Manugraph Kenya Limited by the company.
In terms of the General Circular No. 2/201 1 dated February 8, 201 1
read together with General Circular No. 3/2011 dated February 21, 2011,
issued by the Government of India - Ministry of Corporate Affairs under
Section 212(8) of the Companies Act, 1956, granting general exemption
to companies from attaching Balance Sheets / Annual Accounts of
Subsidiary companies subject to fulfillment of conditions stated in the
circular, copies of the Balance Sheet, Profit and Loss Account, Report
of the Board of Directors and Auditors Report of the subsidiary
companies viz. Construed Agencies (Bombay) Pvt. Ltd. and Manugraph DGM
Inc., for the year ended 31st March, 2012 and Manugraph Kenya Ltd. upto
30th March, 2012 are not attached to the Balance Sheet of the Company
as the Company has fulfilled the following conditions:
(i) The Board of Directors of the Company has vide resolution dated
30th May, 2012 consented for not attaching the balance sheet(s) of the
concerned subsidiary companies;
(ii) The Company has presented in its Annual Report, the consolidated
financial statements of Company and subsidiaries duly audited by its
statutory auditors;
(iii) The Consolidated financial statements have been prepared in
strict compliance with the applicable Accounting Standards and Listing
Agreement as prescribed by the Securities and Exchange Board of India;
(iv) The Company has disclosed in the Annual Report the following
information in aggregate for each subsidiary company,
(a) Capital (b) Reserves (c) Total Assets (d) Total Liabilities (e)
Details of Investment (except in case of investment in the
subsidiaries) (f) Turnover (g) Profit before taxation (h) Provision for
taxation (i) Profit after taxation and (j) Proposed dividend;
(v) The annual accounts and other related detailed information of the
following subsidiaries shall be made available to shareholders of the
company and subsidiary companies seeking such information at any point
of time:
(a) Constrad Agencies (Bombay) Pvt. Ltd.,
(b) Manugraph DGM Inc.;
(c) Manugraph Kenya Ltd. (up to 30-3-2012)
(vi) Further, the annual accounts of the subsidiary companies shall
also be kept for inspection by any shareholder at the Registered Office
of the company and of the subsidiary companies concerned and the
company shall furnish a hard copy of the details of accounts of
subsidiaries to any shareholder on demand;
(vii) The company as well as subsidiary companies shall regularly file
such data to the various regulatory and Government authorities as may
be required by them;
(viii) The company has given Indian rupee equivalent of the figures
given in foreign currency appearing in the accounts of the subsidiary
company along with the exchange rate as on closing day of the financial
year;
CORPORATE GOVERNANCE
Your company is fully committed to the philosophy of conducting its
business with due compliance of laws, rules and regulations. The sound
internal control and efficient management information systems, which
play a pivotal role in corporate governance, are in place in your
company.
We are pleased to inform you that your company has complied in all
material respects with the features of corporate governance as
specified in the Listing Agreement. A certificate of compliance from
the statutory auditors together with a report on corporate governance
forms part of this report.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and
company's articles of association, Mr. Amit N. Dalai and Mr. Perses M.
Bilimoria retire by rotation and are eligible for re-appointment. The
Board recommends their re-appointment.
Mr. Harshad H. Vasa resigned as Director of the Company w.e.f. 9th
November, 2011.
The Board places on record its deep sense of appreciation for the
invaluable contribution made by Mr. Harshad H. Vasa for professional
advice and support to the Company during his tenure as Director of the
Company.
Mr. Jai Shishir Diwanji was appointed as an additional Director w.e.f.
30th May, 2012.
Brief profiles of Mr. Amit IM. Dolly, Mr. Perses M. Bilimoria and Mr.
Jai Shishir Diwanji proposed to be re-appointed / appointed as
Directors of the Company are given in Annexure A to the notice
convening the ensuing Annual General Meeting.
AUDITORS
Messrs Natvarlal Vepari & Co., Chartered Accountants, Mumbai, Firm
Registration No. 106971W, the auditors of the company will retire from
the office of the auditors at the forthcoming Annual General Meeting
and being eligible offer themselves, for re-appointment. The board
recommends their re-appointment.
COST AUDITORS
Pursuant to the requirements of Ministry of Corporate Affairs (MCA),
New Delhi, the Board of Directors, subject to the approval of MCA, has
appointed Mr. V. V. Deodhar, Cost Accountant, Mumbai, for Cost Audit
for the year 2012-13.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the directors
confirm that, to the best of their knowledge and belief;
(i) in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
(ii) 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 31 st March, 2012, and of the profit of the
company for the year ended on that date;
(iii) 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;
(iv) the annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information pursuant to section 217( l)(e) of the Companies Act, 1956,
read with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 is given as Annexure B to this report.
ACKNOWLEDGEMENTS
The directors would like to thank the employee unions, shareholders,
customers, suppliers, bankers, financial institutions, all other
business associates and various departments of Central Government and
State Government for the continuous support given by them to the
company and their confidence in its management.
For and on behalf of the Board
Mumbai S. M. SHAH
Dated 30th May, 2012 CHAIRMAN
Mar 31, 2011
Dear Shareholders,
The Directors have pleasure in presenting the thirty - ninth Annual
Report and audited accounts for the year ended 31st March, 2011.
FINANCIAL HIGHLIGHTS
Particulars April to March
2010 - 2011 April to March
2009 - 2010
(Rs. in Lakhs) (Rs. in Lakhs)
Profit for the year 4,275.09 2,725.53
Less: Depreciation 1,024.06 783.46
Profit before tax 3,251.03 1,942.07
Less: Provision for Taxation
Current tax 983.00 591.52
Deferred tax 27.74 17.62
1,010.74 609.14
Provision for wealth tax 2.20 2.66
1,012.94 611.80
Profit after tax 2,238.09 1,330.27
Less: Income-tax pertaining
to previous year 0.35 38.40
2,237.74 1,291.87
Add: Balance brought
forward from previous
year 3,277.73 3,540.52
AMOUNT AVAILABLE FOR APPROPRIATION
5,515.47 4,832.39
APPROPRIATIONS
Proposed dividend 456.23 304.15
Tax on proposed dividend 74.01 50.51
General reserve 300.00 1,200.00
Balance carried to balance sheet 4,685.23 3,277.73
5,515.47 4,832.39
DIVIDEND
Your Directors recommend dividend of Rs. 1.50 per equity share of Rs.
2/- each (Previous year Re. 1/- per share of Rs. 2/- each) subject to
the approval of the members at the ensuing Annual General Meeting.
FIXED DEPOSITS
During the year, the company has not accepted/renewed any deposits. The
balance in the fixed deposit account as on 31st March, 2011 was Nil.
INSURANCE
The buildings, plant and machinery, stock-in-trade, standing charges
and loss of profits have been adequately and appropriately insured.
CAPITAL EXPENDITURE
Your company incurred Rs. 1,045.55 lakhs towards capital expenditure
consisting of buildings, plant and machinery and other fixed assets
during the year under review, which will continue in the current year
2011-12 to improve, enhance and modernise both the plants.
CONSOLIDATED ACCOUNTS
In accordance with the requirements of Accounting Standard AS - 21,
prescribed by the Institute of Chartered Accountants of India, the
consolidated accounts of the company and its subsidiaries are annexed
to this report.
SUBSIDIARY COMPANIES
In terms of the General Circular No. 2/2011 dated February 8, 2011 read
together with General Circular No. 3/2011 dated February 21, 2011,
issued by the Government of India - Ministry of Corporate Affairs under
Section 212(8) of the Companies Act, 1956, granting general exemption
to companies from attaching Balance Sheets/Annual Accounts of
Subsidiary companies subject to fulfillment of conditions stated in the
circular, copies of the Balance Sheet, Profit and Loss Account, Report
of the Board of Directors and Auditors Report of the subsidiary
companies viz. Constrad Agencies (Bombay) Pvt. Ltd., Manugraph Kenya
Ltd., and Manugraph DGM Inc., for the year ended 31st March, 2011 are
not attached to the Balance Sheet of the Company as the Company has
fulfilled the following conditions:
(i) The Board of Directors of the Company has vide resolution dated
11th August, 2011 consented for not attaching the balance sheet(s) of
the concerned subsidiary companies;
(ii) The Company has presented in its Annual Report, the consolidated
financial statements of Company and subsidiaries duly audited by its
statutory auditors;
(iii) The Consolidated financial statements have been prepared in
strict compliance with the applicable Accounting Standards and Listing
Agreement as prescribed by the Securities and Exchange Board of India;
(iv) The Company has disclosed in the Annual Report the following
information in aggregate for each subsidiary Company, (a) Capital (b)
Reserves (c) Total Assets (d) Total Liabilities (e) Details of
Investment (except in case of investment in the subsidiaries) (f)
Turnover (g) Profit before taxation (h) Provision for taxation (i)
Profit after taxation and (j) Proposed dividend;
(v) The annual accounts and other related detailed information of the
following subsidiaries shall be made available to shareholders of the
company and subsidiary companies seeking such information at any point
of time:
(a) Constrad Agencies (Bombay) Pvt. Ltd.,
(b) Manugraph Kenya Limited and
(c) Manugraph DGM Inc.;
(vi) Further, the annual accounts of the subsidiary companies shall
also be kept for inspection by any shareholder at the Registered Office
of the company and of the subsidiary companies concerned and the
company shall furnish a hard copy of the details of accounts of
subsidiaries to any shareholder on demand;
(vii) The company as well as subsidiary companies shall regularly file
such data to the various regulatory and Government authorities as may
be required by them;
(viii) The company has given Indian rupee equivalent of the figures
given in foreign currency appearing in the accounts of the subsidiary
companies along with the exchange rate as on closing day of the
financial year.
CORPORATE GOVERNANCE
Your company is fully committed to the philosophy of conducting its
business with due compliance of laws, rules and regulations. The sound
internal control and efficient management information systems, which
play a pivotal role in corporate governance, are in place in your
company.
We are pleased to inform you that your company has complied in all
material respects with the features of corporate governance as
specified in the Listing Agreement. A certificate of compliance from
the statutory auditors together with a report on corporate governance
forms part of this report.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and
company's articles of association, Mr. Harshad H. Vasa and Mr. Hiten
C. Timbadia retire by rotation and are eligible for re-appointment. The
Board recommends their re-appointment.
Mr. Arun Kumar Puri resigned as Whole-time Director (Works) of the
Company and also from the Board of Directors of the company w.e.f. 1 st
November, 2010. Mr. Mohan R. Harshe resigned as Director (Works) of the
company and also from the Board of Directors of the company w.e.f. 15th
November, 2010.
The Board places on record its deep sense of appreciation for the
invaluable contribution made by Mr. Arun Kumar Puri and Mr. Mohan R.
Harshe for professional advice and support to the Company during their
tenure as Directors of the Company.
Mr. Abhay J. Mehrotra was appointed as an additional Director w.e.f.
29th October, 2010. Mr. Shubhendra M. Mordekar was appointed as an
additional Director w.e.f. 29th October, 2010.
On the recommendation of Remuneration Committee, the Board of
Directors, has appointed Mr. Shubhendra M. Mordekar as Whole-time
Director (Works) for a period of 3 years w.e.f. 29th October, 2010
subject to the approval of the members of the company at the ensuing
Annual General Meeting.
Brief profiles of Mr. Harshad H. Vasa, Mr. Hiten C. Timbadia, Mr. Abhay
J. Mehrotra and Mr. Shubhendra M. Mordekar proposed to be
re-appointed/appointed as Directors of the Company are given in
Annexure A to the notice convening the ensuing Annual General Meeting.
AUDITORS
Messrs Natvarlal Vepari & Co., Chartered Accountants, the auditors of
the company will retire from the office of the auditors at the
forthcoming Annual General Meeting and being eligible offer themselves,
for re-appointment. The Board recommends their re-appointment.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the directors
confirm that, to the best of their knowledge and belief:
(i) in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
(ii) the directors have selected such accounting policies and applied
them consistently and made judgements 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 31 st March, 2011, and of the profit of the
company for the year ended on that date;
(iii) 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;
(iv) the annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information pursuant to 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 is given as Annexure B to this report.
ACKNOWLEDGEMENTS
The directors would like to thank the employee unions, shareholders,
customers, suppliers, bankers, financial institutions, all other
business associates and various departments of Central Government and
State Government for the continuous support given by them to the
company and their confidence in its management.
For and on behalf of the Board
Mumbai S. M. SHAH
Dated 11 th August, 2011 CHAIRMAN
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