Mar 31, 2015
The Directors have pleasure in presenting their 30th Annual Report on
the business and operations of your Company along with Audited
Financial Statements Annual Accounts for the Financial year ended 31st
March, 2015.
1. FINANCIAL RESULTS
The financial performance of the Company for the year ended on 31st
March, 2015 is as follows:
Particulars 31.03.2015 31.03.2014
Turnover (FOB) 2,80,801,668.00 2,31,021,672.64
Other Income 10,859,279.60 10,612,583.16
Less: Total Expenditure 273547783.55 2,16,818,221.89
Profit before interest,
depreciation 18113164.05 24,816,033.91
and tax
Interest 5,247,576.55 3,522,816.18
Depreciation 6012565.72 3,771,248.00
Profit before Exceptional
& extra - 6853021.78 17,521,969.73
ordinary items & Tax
Less: Exceptional Item 10,660.00 1,732,759.85
Add/Less: Extra Ordinary Items
Profit before Tax 6842361.78 15,789,209.88
Less: Deferred tax (8,88,085.00) (1,019,729.00)
Less: Income tax 2,822,063.00 6,271,373.00
Net Profit/ (Loss) after
Tax for the 4908383.78 10,537,565.88
year
Profit/ (Loss) brought forward 78970942.80 74308524.92
Fixed Assets Carrying Amount Revert 1559622.25
Profit available for appropriation 85438948.83 84846090.80
Appropriations:
Interim Dividend on Equity
Shares for the year 2417400.00 2417400.00
Proposed dividend on equity shares 2417400.00 2417400.00
Tax on proposed dividend 966676.00 840348.00
Transfer to general reserve 2,00,000.00 2,00,000.00
Fixed Assets Written Off 587406.94 0.00
Deferred Tax Liability adjusted due to 300848.00 0.00
Schedule II Effect
Balance carried forward 78549217.89 78970942.80
Previous year figures have been re-grouped and rearranged wherever
considered necessary.
No material changes and commitments have occurred after the close of
the year till the date of this Report, which affect the financial
position of the Company.
2. OPERATIONS
Currently in India, the national economy and marketplace is undergoing
rapid changes and transformation. The volatility in the macroeconomic
environment during the FY 2014-15 continued to ] cast its shadow and
most of the markets where Mayur Leather operates, were impacted. Today
the companies are operating in such a marketplace where the survival of
the fittest is the law. Even in this environment, the Company recorded
an exemplary financial performance. The major contributing factors for
such all-round performance across all the geographies and industry
verticals was the Company's customer-centric approach and its ability
to innovate customer specific products, focus on pricing, disciplined
execution of complex projects and the rigor in following strong
internal processes. This coupled with favorable foreign exchange rate
provided better profit margin.
Changing economic scenario and business conditions, evolving consumer
preferences, rapid technological innovations and adoption and
globalization are driving Mayur Leather to transform the manner in
which they operate.
Major challenge is high inflation rate in India and shortage of
Leather. This is posing a big problem as the acceptability selling
price does not increase in the same ratio as compare to increase in
cost of Raw Material. Especially Leather which has been increasing 15%
to 25% per annum along with shortage of availability is a huge
challenge. Your Company is now focused on its core business objective
i.e. growth, profitability and asset efficiency.
During the year 2013- 14, revenue from operation increased by 6.21% as
compared to year 2012- 2013 and in current year we have achieved 21.55%
increment as compared to previous year.
The table below shows the comparative growth in revenue of the Company
since last three years:
Financial
year Revenue from Other income Total revenue
operations
2012-13 Rs. 2175.13 Lacs Rs. 65.49 Lacs Rs.2240.62 Lacs
2013-14 Rs. 2310.22 Lacs Rs. 106.13 Lacs Rs.2416.35 Lacs
2014-15 Rs. 2808.02 Lacs Rs. 108.60 Lacs Rs. 2916.62 Lacs
In order to increase our market share to offset the decline in export,
the Company has taken various steps, major of them are follows:
a. In collaboration with M/s UVEX our German buyers:
European union is under recession. We are trying to stabilize our
turnover and increase our customer base and product profile
b. We undertook project implementation to start Vulka Shoe production
for the Company Heckel Securite, France.
This has helped to nullify the reduction in exports to Europe over the
last few years.
c. Development is on for new customers in Oman and Qatar to nullify
reduction due to recession in middle east. We are also making efforts
to develop addition customers in the middle east to support these
efforts.
d. We are undertaking various activities to develop local Indian
market:
Our presence in the local market was negligible in the year 2006 -07.
We have started activities during the year 2007-08 & by 2008-09 our
local market was approx. 29429 Pairs valued at approx.Rs. 1.49 Crores.
In the year 2010-11 our local turnover was increased approx. 64%
incomparison with the year 2009-10.During the year 2011-12 & 2012-13
due to recession effect on local market our local turnover was stable
in both the years, it was around 1.50 Crore in each year.
During the FY. 2013-14 we achieved a target sale of 63860 Pairs in
domestic Market valued at Rs 3.78 Crore Approx. which is a tremendous
increment in domestic sales almost 152 % as compared to Previous Year.
In Current Year the scale has got higher by sale of 92191 Pairs
inDomestic Market valued at 6.72 Crore Approx. Efforts are on to
increase local market hence tosupplement decrease in export
market.However the thrust is to enter the Indian market in a bigway as
even in India people are moving towards safety consciousness and demand
is slowlyincreasing for quality safety footwear even though price
expectation is a challenge. We expect to supplement the decrease in
demand in Europe due to recession with increase in domestic supplies.
e. Company working very hard to enter into Domestic Institutional
Sales to Government Paramilitary and Police Departments.
With reference to the above steps taken by the Company, the Company is
confident of recovering the lost ground due to the recession in Europe.
However, there is one uncertainty in export business and that is the
status of EURO. At the moment, it is very volatile and has decreased as
compared with US Dollar from 1.33 to 1.11. Exchange rate is difficult
to predict, but it is a global phenomenon and both the exporters and
the importers in Europe will have to find a solution to it. The rate of
US dollar is in favors of export market it has been increased from
59.95 to 61.50 as compared to previous year.
We have also gone in for diversification. The idea is to expand
business areas in same line of business and for the purpose of the same
the Company intends to enter into business of Sandals/sleepers also.
The Company acknowledges the importance of the plant and employees as
the base behind the success of the Company. Your Company believes that
it's the teamwork of the employees which enables Company to reach the
new heights. The Company is committed to work together keeping in full
trust on each other and strive to keep itself in the high growth
trajectory to achieve newer heights.
3. RESERVES
For the period under review the Board proposes to transfer Rs 2.00 Lacs
to General Reserve Account of the Company.
4. DIVIDEND
Your Company has always strived to maintain a balance by providing an
appropriate return to the shareholders while simultaneously retaining a
reasonable portion of the profit to maintain healthy financial leverage
with a view to support and sustain the future growth. Company has a
concerted dividend policy which ensures the availability of sufficient
distributable income to its members. Your Company has paid 1 (One)
interim dividend of Rs.0.50 per equity share of Rs 10/- each (i.e.5%)
during the financial year ended on 31st March 2015. Board of Directors
is pleased to recommend final dividend of Rs. 0.50 per equity share of
Rs. 10/- each (i.e. 5%), for the year 2014-15 subject to approval of
Shareholders in the Annual General Meeting.
The total outgo on account of dividend payment, including dividend tax,
is Rs.58.01 Lacs.
5. EXTRACT OF ANNUAL RETURN
Relevant extract of Annual Return as on the Financial Year ended on
March 31st, 2015 is given in ANNEXURE II to this Report.
6. MEETINGS OF THE BOARD
Eleven (11) meetings of the Board of Directors were held during the
year. The intervening gap between the Meetings was within the period
prescribed under the Companies Act, 2013 and the Listing Agreement. For
further details, please refer report on Corporate Governance of this
Annual Report.
7. DEPOSITS
In the beginning of the Financial Year 2014-15, there were no deposits
lying with the Company and further it is clarified that no money have
been received which fall under the category of deposits during the
Financial Year 2014-15.
8. CAPITAL STRUCTURE
During FY 14-15, there is no change in the capital structure of
Company. The Authorised Share Capital of Company is Rs. 5.80 Crores and
Paid up share Capital of Company is Rs. 4.83 Crores.
9. DIRECTORS AND KEY MANAGERIAL PERSONNEL
Mr. Rajendra Kumar Poddar (DIN: 00143571), Director of the Company
whose period of office is liable to retire by rotation pursuant to
provisions of Company Act, 2013 and Article 39 of the Articles of
Association of the Company retires by rotation at the ensuing AGM and
being eligible offers himself for reappointment.
During the year under review, Board of Directors has confirmed the
appointment of Mr. Nitesh Kumar Kumawat, DGM Corporate of the company
as Chief Financial Officer in the category of key managerial personnel
[KMP] of the Company with effect from May 30, 2014 and further with
effect from same date re-designated Mr. Rajendra Kumar Poddar, CEO of
the company in the category of key managerial personnel [KMP] of the
Company. Moreover the Board has confirmed the redesignation of Ms.
Amita Poddar as a Chairman of the Company w.e.f 31.07.2014.
Further, During the year under review, pursuant to the provision of
Section 203 read with Sections 2(19) & 2(51) of Companies Act, 2013 and
Rule 8 of Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 and other applicable provisions ( including any
modification or re- enactment thereof ), if any, of the Companies Act,
2013 and clause 47(c) of Listing agreement holding the prescribed
qualification under Section 2(24) of the Companies Act, 2013, Board of
Directors appointed Ms. Swati Dubey as a Whole time Secretary of the
Company in the category of key managerial personnel [KMP] of the
Company with effect from August 09, 2014.
10. APPOINTMENT OF INDEPENDENT DIRECTOR
As per the provisions of the Companies Act, 2013, Independent Directors
are required to be appointed for a term of five consecutive years, but
shall be eligible for reappointment on passing of a special resolution
by the Company and shall not be liable to retire by rotation. The
Independent Directors i.e., Mr. Madhusudan Prasad Kejriwal & Mr.
Madhukar Chaturvedi have affirmed that they continue to meet all the
requirements specified under sub-section (6) of Section 149 of the
Companies Act, 2013 in respect of their position as an "Independent
Director" of Mayur Leather Products Limited.
DECLARATION OF INDEPENDENCE BY INDEPENDENT DIRECTORS
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet with the criteria of
independence as prescribed under sub-section (6) of Section 149 of the
Companies Act, 2013.
11. FORMAL ANNUAL EVALUATION
The Company has devised a Policy for performance evaluation of
Independent Directors, Board, Committees and other individual Directors
which includes criteria for performance evaluation of the non-executive
directors and executive directors.
The Company have also engaged the professionals for looking at the best
practices prevalent in the industry and advising with respect to
evaluation of board members. On the basis of recommendations of the
professionals and the policy for performance evaluation of Independent
Directors, Board, Committees and other individual directors, a process
of evaluation was followed by the board for its on performance and that
of its committees and individual directors. The details of programmes
for familiarization of independent directors with the Company, their
roles, rights, responsibilities in the company, nature of the industry
in which the company operates, business model of the Company and
related matters have been elaborately devised by the top management and
efforts are being made to create the awareness about the same and the
same has been posted as Company's website www.mayurgroups.net.
12. COMMITTEES OF THE BOARD
AUDIT COMMITTEE
The Company has constituted the Audit Committee in line with the
provision section 177 (1)of the Companies Act, 2013 and the listing
agreement entered by the Company with the stock exchanges. The Audit
Committee comprises Independent Directors namely Shri Madhukar
Chaturvedi (Chairman) and Shri Madhusudan Prasad Kejriwal and Mrs.
Amita Poddar as other members. All the recommendations made by the
Audit Committee were accepted by the Board. For further details kindly
refer Report on Corporate Governance annexed with the Annual Report.
NOMINATION AND REMUNERATION COMMITTEE
The Company has constituted the Nomination and Remuneration Committee
in line with the provision of the Companies Act, 2013 and the listing
agreement entered by the Company with the stock exchanges. The
Nomination and Remuneration Committee comprises Independent Directors
namely Shri Madhusudan Prasad Kejriwal (Chairman) and Madhukar
Chaturvedi and Shri Rajesh Virendra Gupta as other members. For further
details kindly refer Report on Corporate Governance annexed with the
Annual Report.
The policy formulated by Nomination and Remuneration Committee on
director's appointment and remuneration including criteria for
determining qualifications, positive attributes, independence of a
director and other matters as specified under section 178(3) of the
Companies Act, 2013 and same was approved by the Board of Directors of
the Company.
STAKEHOLDER'S RELATIONSHIP COMMITTEE
The Company has constituted the Stakeholder's Relationship Committee in
line with the provision of the Companies Act, 2013 and the listing
agreement entered by the Company with the stock exchanges. The
Stakeholder's Relationship Committee comprises Independent Directors
namely Shri Madhusudan Prasad Kejriwal (Chairman) and Madhukar
Chaturvedi and Shri Rajendra Kumar Poddar and Mrs. Amita Poddar as
other members. For further details kindly refer Report on Corporate
Governance annexed with the Annual Report. Ms. Swati Dubey acts as a
Compliance Officer for this Committee.
13. AUDITOR'S OF THE COMPANY:
STATUTORY AUDITOR
M/s. Madhukar Garg & Co., Chartered Accountants, Jaipur having FRN
000866C were appointed as Statutory Auditors of your Company at the
last Annual General Meeting held on 08th September, 2014 for a term of
three consecutive years. As per the provisions of Section 139 of the
Companies Act, 2013, the appointment of Auditors is required to be
ratified by Members at every Annual General Meeting.
As required under the provisions of Section 139 of the Companies Act,
2013, the Company has obtained a written certificate from the above
mentioned Auditors to the effect that they conform with the limits
specified in the said Section and that they are not disqualified for
appointment within the meaning of Section 141 of the said Act.
As required under clause 41 of Listing Agreement, the Auditors have
also confirmed that they hold a valid certificate issued by the peer
review Board of ICAI.
STATUTORY AUDITOR'S REPORT
The qualification/observation of the Auditor's given in the Auditor's
Report are self-explanatory and have been explained/ clarified,
wherever necessary, in the notes to the Financial Statements.
Further Company failed to comply with provisions of Sec. 123 sub clause
(4) of companies Act 2013 with regard to deposit of interim dividend in
schedule bank in a separate account within five days from the date of
declaration of dividend due to addition in the bank paper formalities
for opening of bank account and henceforth delay occurred on the event
of liasoning with the Bank regarding the same and resultantly getting
the documents signed by Authorized Signatory of the Company. Though
there was delay in deposit of interim dividend in schedule bank in a
separate account but the company dispatched all the dividend warrants
within thirty days of declaration of dividend so that no inconvenience
will be caused to our shareholder.
SECRETARIAL AUDITOR
The Board has appointed M/s Jaks & Associates, Practicing Company
Secretaries to conduct Secretarial Audit for the financial year
2014-15. The Secretarial Audit Report for the financial year ended
March 31, 2015 is annexed herewith marked as ANNEXURE I to this Report.
The Company is pleased to inform M/s V. M. Associates, Company
Secretaries in practice, Jaipur as Secretarial Auditor of the Company
to carry out Secretarial Audit of the Company for the financial year
2015-16.
SECRETARIAL AUDITOR'S REPORT
The Secretarial Audit Report for the financial year ended 31st March,
2015 is self-explanatory and have been explained/clarified, wherever
necessary.
Further with reference to the lack of independent director in the
composition of the Board as per Listing Agreement, Company is sincerely
in process to appoint an Independent Director. There is no malafide
intention of the company behind the delay in the appointment of an
Independent Director.
COST AUDITOR
The requirement of Cost Audit in your industry has been
excluded/removed in The Companies (Cost Records and Audit) Rules, 2014,
issued by the Ministry of Corporate Affairs vide its notification dated
30th June, 2014. Therefore, no appointment was made of the Cost Auditor
to carry out the Cost Audit for the financial year ended 31st March,
2015.
14. HUMAN RESOURCE DEVELOPMENT
The Company recognizes that its employees are its principal assets and
that it's continued growth is dependent upon the ability to attract and
retain quality people. The Company also recognizes the importance of
providing training and development opportunities to its people to
enhance their skills and experiences, which in turn enables the company
to achieve its business objectives. The morale of employees continued
to remain high during the year contributing positively to the progress
of the Company. However aspirations of employees in India remain to be
high. This is a challenge as only growth can fulfill these aspirations
and in today's market scenarios one has to perform extraordinarily to
achieve growth.
The Company has always provided a congenial atmosphere for work to all
sections of the society. Your Company is committed to respect universal
human rights. To that end, the Company practices and seeks to work with
business associates who believe and promote these standards. The
Company is committed to provide equal opportunities at all levels, safe
and healthy workplaces and protecting human health and environment. The
Company provides opportunities to all its employees to improve their
skills and capabilities. The Company's commitment extends to its
neighboring communities to improve their educational, cultural,
economic and social well-being. Your Company is an equal opportunity
employer and does not discriminate on the grounds of race, religion,
nationality, ethnic origin, color, gender, age, citizenship, sexual
orientation, marital status or any disability not affecting the
functional requirements of the position held.
15. CORPORE SOCIAL RESPONSIBLITY
Our key Strategy for Corporate Social Responsibility is to mobilize
core competencies and resources of business, public organizations and
Government InstitutionsÂ
...to facilitate their working in partnership
on projects that benefit communities. We also feel strongly about
giving back to our community. We believe everybody deserves to be
treated with dignity and respect, regardless of their personal
circumstances, and offered the skills, knowledge and assistance they
need to help themselves lead healthy and productive lives. Though the
Company doesn't fall under the ambit of Section 135 of Companies Act,
2013, but still Company has implemented following activities to fulfill
corporate social responsibility in the financial year 2014-15:
-eradicating extreme hunger and poverty;
-promotion of Education;
-promoting gender equality and empowering women;
-reducing child mortality and improving maternal health;
-combating human immunodeficiency virus, acquired, immune deficiency
syndrome, malaria and other diseases;
-ensuring environmental sustainability;
-employment enhancing vocational skills;
-contribution to the Prime Minister's National Relief Fund or any other
fund set up by the Central Government or the State Governments for
socio-economic development and relief and funds for the welfare of the
Scheduled Castes, the Scheduled Tribes, other backward classes,
minorities and women.
16. DELISTING OF EQUITY SHARES
The members have passed a special resolution in the Annual General
Meeting of Company held on 10th July, 2004 permitting the Company to
delist its shares from the regional stock exchanges of Delhi,
Kolkata,Jaipur and Ahmedabad. As on date, out of the above-stated four
stock exchanges, the equity shares of the Company have been delisted
from the Delhi, Ahmedabad and Jaipur Stock Exchanges. Delisting
application of the Company is still pending with the Calcutta Stock
Exchange Association Ltd., Kolkata since December 2004. Inspite of
several reminders, the Company did not get any response from the
exchange in the matter of the delisting status.
17. DISCLOSURE OF SUBSIDIARY AND ASSOCIATE COMPANY
However, the Company exercises significant influence (32.26%) over its
Associate Company i.e. "Mayur Global Private Limited". Mayur Global
Private Limited is a Footwear Manufacturing company established to
fulfill the export demand of leather Footwear.
18. RISK MANAGEMENT POLICY
Your Company has an elaborate Risk Management procedure, which is based
on three pillars: Business Risk Assessment, Operational Controls
Assessment and Policy Compliance processes. Major risks identified by
the businesses and functions are systematically addressed through
mitigating actions on a continuing basis. Some of the identified risks
relate to competitive intensity and cost volatility.
To sustain and grow in global market one must be ready for some level
of uncertainty. Greater the uncertainty, higher the risk. The risk
management function is integral to the Company and its objectives
include ensuring that critical risks are identified, continuously
monitored and managed effectively in order to protect the Company's
business. The Company operates in an environment which is affected by
various factors some of which are controllable while some are outside
the control of the company. The Company proactively takes reasonable
steps to identify and monitor the risk and makes efforts to mitigate
significant risks that may affect it. Some of the risks that are
potentially significant in nature and need careful monitoring are
listed here under:
- Macroeconomic Factors
- Political Factors
- Product portfolio
- Competition from product launches
- Talent acquisition & retention
- Continuance and growth of channel partners
- High dependence on suppliers
- Geographic concentration
- Changes in government policy and legislation
- Chinese Competition
- Raw Material Price Increase
- Foreign Exchange Fluctuation
19. INTERNAL FINANCIAL CONTROLS
The Company has in place adequate 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
were observed.
20. MANAGEMENT DICUSSION AND ANALYSIS REPORT
A detailed discussion on the industrial structure, development,
opportunities, threats, review of operational performance and risks, as
required under the Listing Agreements with stock exchanges, forms part
of this report and is annexed herewith.
21. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 and Section 134(5) of the Companies Act, 2013, with respect
to Directors' Responsibility Statement, your Directors confirm that:
a) in the preparation of the annual accounts for the year ended March
31, 2015, the applicable accounting standards read with requirements
set out under Schedule III to the Act, have been followed and there are
no material departures from the same;
b) 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 March 31, 2015 and of the profit of the Company
for the year ended on that date;
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a 'going concern'
basis;
e) the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively; and
f) the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating effectively.
22. PARTICULARS OF EMPLOYEES
There are no employees in the Company whose particulars are required to
be disclosed in terms of the provisions of Section 197(12) of the Act
read with Rules 5(2) and 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.
Disclosures pertaining to remuneration and other details as required
under Section 197 (12) of the Act read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is
given in ANNEXURE III to this Report .
23. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN AND
SECURITIES PROVIDED
Particulars of loans given, investments made, guarantees given and
securities provided along with the purpose for which the loan or
guarantee or security is proposed to be utilized by the recipient are
provided in the standalone financial statement. (Please refer to Note
13 and 17 to the standalone financial statement).
24. CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
In line with the requirements of the Companies Act, 2013 and Equity
Listing Agreement, your Company has formulated a Policy on Related
Party Transactions which is also available on Company's website at
www.mayurgroups.net. The Policy intends to ensure that proper
reporting, approval and disclosure processes are in place for all
transactions between the Company and Related Parties.
This Policy specifically deals with the review and approval of Material
Related Party Transactions keeping in mind the potential or actual
conflicts of interest that may arise because of entering into these
transactions. All Related Party Transactions are placed before the
Audit Committee for review and approval. Prior omnibus approval is
obtained for Related Party Transactions on a quarterly basis for
transactions which are of repetitive nature and / or entered in the
Ordinary Course of Business and are at Arm's Length. All Related Party
Transactions are subjected to independent review by a reputed
accounting firm to establish compliance with the requirements of
Related Party Transactions under the Companies Act, 2013 and Equity
Listing Agreement.
All Related Party Transactions entered during the year were in Ordinary
Course of the Business and on Arm's Length basis. No Material Related
Party Transactions, i.e. transactions exceeding ten percent of the
annual consolidated turnover as per the last audited financial
statements, were entered during the year by your Company. Accordingly,
the disclosure of Related Party Transactions as required under Section
134(3) (h) of the Companies Act, 2013 is disclosed in Form AOC 2
ANNEXURE IV is is annexed to this report.
Your Directors draw attention of the members to Note 35 to the
financial statement which sets out related party disclosures.
25. VIGIL MECHANISM
The Vigil Mechanism of the Company, which also incorporates a whistle
blower policy in terms of the Listing Agreement, includes an Ethics &
Compliance Task Force comprising senior executives of the Company.
Protected disclosures can be made by a whistle blower through an
e-mail, or dedicated telephone line or a letter to the Task Force or to
the Chairman of the Audit Committee.
26. CORPORATE GOVERNANCE REPORT
The Company is committed to maintain the highest standards of Corporate
Governance and adhere to the Corporate Governance requirements set out
by SEBI.
The Report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of the Annual Report along with the
requisite Certificate from Company Secretaries in Practice, as
stipulated, is annexed to this Report.
27. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information required to be disclosed pursuant to Section 134(3)(m)
of the companies act, 2013 read with Rule 8 of companies (Accounts)
Rules,2014, the particulars of technology absorption and foreign
exchange earnings and outgo is provided as under.
RESEARCH & DEVELOPMENT / TECHNOLOGY ABSORPTION
Company continued to give utmost importance to the R&D activities. The
Company has its own in- house well-developed Research and Development
division. The objective of the Company through continuous Research and
Development activities is the introduction of cost effective,
state-of-art- products with enhanced life and to increase the
production capacity. The Company's Laboratory and R&D division is
continuously working towards new developments and keeps pace with the
latest developments in high tech areas. During the year company has
spend Rs.9,51,597.00 (previous year Rs. 4,75,485.00) on R & D
expenditure, which is debited in financial books.
FOREIGN EXCHANGE EARNING AND OUTGO
Activities relating to exports; initiatives taken to increase exports,
development of new export markets for product and services; and export
plans:
The Company is engaged in the manufacture and export of leather safety
shoes and shoe uppers. The majority sale is through exports. Due to the
economic slowdown, the export market of the regular products has been
badly affected. This is being countered by two activities: -
- Re-align fresh business from existing customers with new products.
- Develop an Indian Market Network.
28. INTERNAL AUDITOR
As per Section 138 of Companies Act 2013, every Listed Company is
required to appoint an Internal Auditor or a firm of Internal Auditors.
The directors are pleased to confirm the appointment of M/s. Varma
Prashant & Associates, as Internal Auditors of the company.
29. GENERAL
Your Directors state that no disclosure or reporting is required in
respect of the following items as there were no transactions on these
items during the year under review:
1. Issue of equity shares with differential rights as to dividend,
voting or otherwise.
2. Issue of shares (including sweat equity shares) to employees of the
Company under any scheme.
3. No significant or material orders were passed by the Regulators or
Courts or Tribunals which impact the going concern status and Company's
operations in future.
4. There was no fraud which has been reported to the Audit Committee /
Board but not to CG during the year under review.
Your Directors further state that during the year under review, there
were no cases filed pursuant to the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013.
30. ACKNOWLEDGEMENT
Your Directors would like to express their appreciation for assistance
and co-operation received from the Bankers, Central & State Government,
Local Authorities, Clients, Vendors, Advisors, Consultants and
Associates at all levels for their continued guidance and support. Your
Directors also wish to place on record their deep sense of appreciation
for their commitment, dedication and hard work put in by every member
of the Company.
To them goes the credit for the Company's achievement and to you, our
shareholders we are deeply grateful for the confidence and the faith
that you have always reposed in us.
For and on behalf of the Board of Directors
PLACE : JAIPUR Sd/- Sd/-
DATE : 14.08.2015 R.K. Poddar Amita Poddar
Director Director
DIN:00143571 DIN:00143486
Mar 31, 2014
Dear Members,
Mayur Leather Products Ltd.
The Directors have pleasure in presenting the Twenty Ninth Annual
Report of your Company along with Audited Annual Accounts for the year
ended 31st March, 2014.
FINANCIAL RESULTS
The financial performance of the Company for the year ended on 31st
March, 2014 is as follows:
Particulars 31.03.2014 31.03.2013
Turnover (FOB) 2,31,021,672.64 2,17,512,777.00
Other Income 10,612,583.16 6,548,945.71
Less: Total Expenditure 2,16,818,221.89 2,03,157,287.93
Profit before interest,
depreciation and tax 24,816,033.91 20,904,434.78
Interest 3,522,816.18 4,258,498.61
Depreciation 3,771,248.00 3,686,426.00
Profit before Exceptional &
extra-ordinary 17,521,969.73 12,959,510.17
items & Tax
Less: Exceptional Item 1,732,759.85 1,116,605.00
Add/Less: Extra Ordinary Items - -
Profit before Tax 15,789,209.88 11,842,905.17
Less: Deferred tax (1,019,729.00) 2,356,110.00
Less: Income tax 6,271,373.00 2,732,532.58
Net Profit/ (Loss)
after Tax for the year 10,537,565.88 6,754,262.59
Profit/ (Loss) brought forward 74308524.92 7,33,73,388.33
Profit available for appropriation 84846090.80 80127650.92
Appropriations: _ _
Interim Dividend on Equity Shares
for the year 2417400.00 24,17,400.00
Proposed dividend on equity
shares 2417400.00 24,17,400.00
Tax on proposed dividend 840348.00 7,84,326.00
Transfer to general reserve 2,00,000.00 2,00,000.00
Balance carried forward 78970942.80 74308524.92
Previous year figures have been re-grouped and rearranged wherever
considered necessary.
OPERATIONS
Currently in India, the national economy and marketplace is undergoing
rapid changes and transformation. The volatility in the macroeconomic
environment during the FY 2013-14 continued to cast its shadow and most
of the markets where Mayur Leather operates, were impacted.Today the
companies are operating in such a marketplace where the survival of the
fittest is the law. Even in this environment, the Company recorded an
exemplary financial performance. The major contributing factors for
such all-round performance across all the geographies and industry
verticals was the Company''s customer-centric approach and its ability
to innovate customer specific products, focus on pricing, disciplined
execution of
omple x projects and the rigor in following strong internal processes.
This coupled with favorable foreign exchange rate provided better
profit margin.
Changing economic scenario and business conditions, evolving consumer
preferences, rapid technological innovations and adoption and
globalization are driving Mayur Leather to transform the manner in
which they operate.
Major challenge is high inflation rate in India and shortage of
Leather. This is posing a big problem as the acceptability selling
price does not increase in the same ratio as compare to increase in
cost of Raw Material.Especially Leather which has been increasing 15%
to 25% per annum along with shortage of availability is a huge
challenge.Your Company is now focused o n its core business objective
i.e. growth, profitability and asset efficiency.
During the year 2012 - 13, revenue from operation increased by 3.29% as
compared to year 2011-2012 and in current year we have achieved 6.21%
increment as compared to previous year.
The table below shows the comparative growth in revenue of the Company
since last three years:
Financial year Revenue from operations Otherincome Total revenue
- Rs. 2105.80 Lacs Rs. 60.72 Lacs Rs. 2166.52 Lacs
2012 - 13 Rs. 2175.13 Lacs Rs. 65.49 Lacs Rs.2240.62Lacs
2013 - 14 Rs. 2310.22 Lacs Rs. 106.13 Lacs Rs.2416.35Lacs
In order to increase our market share to offset the decline in export,
the Company has taken various steps, major of them are follows:
a. In collaboration with M/s UVEX our German buyers:
European union is under recession. We are trying to stabilize out
turnover and increase our customer base and product profile
b. We undertook project implementation to start Vulka Shoe production
for the Company Heckel Securite, France.
This has helped to nullify the reduction in exports to Europe over the
last few years._
c. Development is on for new customers in Oman and Qatar to nullify
reduction due to recession in middle east.We are also making efforts to
develop addition customers in the middle east to support these efforts.
d. We are undertaking various activities to develop local Indian
market:
Our presence in the local market was negligible in the year 2006 - 07.
We have started activities during the year 2007-08 & by 2008-09 our
local market was approx. 29429 Pairs valued at approx. Rs. 1.49
Crores. In the year 2010-11 our local turnover was increased approx.
64% in comparison with the year 2009-10.
During the year 2011-12 & 2012-13 due to recession effect on local
market our local turnover was stable in both the years, it was around
1.50 crore in each year. But during the current year we achieved a
target sale of 63860 Prs in domestic Market valued at Rs 3.78 Crore
Approx. which is a tremendous increment in domestic sales almost 152 %
as compared to Pr evious Year. Efforts are on to increase local market
hence to supplement decrease in export market.
However the thrust is to enter the Indian market in a big way as even
in India people are moving towards safety consciousness and demand is
slowly increasin g for quality safety footwear even though price
expectation is a challenge.
We expect to supplement the decrease in demand in Europe due to
recession with increase in domestic supplies.
With reference to the above steps taken by the Company, the Company is
confident of recovering the lost ground due to the recession in Europe.
However, there is one uncertainty in export business and that is the
status of EURO. At the moment, it is very volatile and has decreased as
compared with US Dollar from 1.45 to 1.33. Exchange rate is difficult
to predict, but it is a global phenomenon and both the exporters and
the importers in Europe will have to find a solution to it. The rate of
US dollar is in favors of export market it has been increased from
54.32 to 59.95 as compared to previous year.
We have also gone in for diversification. The idea is to expand
business areas in same line of business and for the purpose of the same
the Company intends to enter into business of Sandals/sleepers also.
RESERVES
For the period under review the Board proposes to transfer Rs 2.00 Lacs
to General Reserve Account of the Company.
DIVIDEND
Your Company has always strived to maintain a balance by providing an
appropriate return to the shareholders while simultaneously retaining a
reasonable portion of the profit to maintain healthy financial leverage
with a view to support and sustain the future growth. Company has a
concerted dividend policy which ensures the availability of sufficient
distributable income to its members. Your Company has paid 1 (One)
interim dividend ofRs.0.50 per equity share of Rs 10/- each (i.e.5%)
during the financial year ended on 31st March 2014. Board of Directors
is pleased to recommend final dividend ofRs. 0.50 per equity share of
Rs. 10/- each (i.e. 5%), for the year 2013-14 subject to approval of
Shareholders in the Annual General Meeting.
The total outgo on account of dividend payment, including dividend tax,
is Rs.56.75 Lacs.
FIXED DEPOSITS
The Company has not accepted or renewed any fixed deposits from public
during the year under review.
CAPITAL STRUCTURE
During FY 13-14, there is no change in the capital structure of
Company. The Authorised Share Capital of Company is Rs. 5.80 Crores and
Paid up share Capital of Company isRs. 4.83Crores.
DIRECTORS
During the year under review, Mr. Keshav Deo Agarwal (DIN:00172149) has
resigned from the directorship of the Company and ceased to be a
Director of Company w.e.f. 16.07.2013. The board of directors wishes to
place on record their sincere appreciation for contribution made by
him, during his tenure as a Director of the Company.
Ms. Amita Poddar (DIN: 00143486), Director of the Company whose period
of office is liable to retire by rotation pursuant to provisions of
Company Act, 2013 and Article 39 of the Articles of Association of the
Company retires by rotation at the ensuing AGM and being eligible
offers herself for reappointment.
Further, Mr. Madhusudan Prasad Kejriwal(DIN: 06547411) and Mr. Madhukar
Chaturvedi (DIN: 06547404) who were appointed as a Director liable to
retire by rotation and whose term expires at this Annual General
Meeting seek your support in confirming their appointment as
Independent Directors of the Company not liable to retire by rotation
and to hold office for a term up to 31st March, 2019.
A brief resume and other information required under clause 49 of the
listing agreement is included in the Annual Report / Notice of Annual
General Meeting. The Board recommends their re-appointment.
AUDITORS
M/s. Madhukar Garg & Co., Chartered Accountants, Jaipur having FRN
000866C, the Statutory Auditors of the Companyretire at the conclusion
of the ensuing Annual General Meeting and being eligible offer
themselves for re-appointment. It is proposed to re-appoint them tohold
office from the conclusion of this AGM until the conclusion of the
third consecutive AGM.
The company has received letter from them to the effect that their
re-appointment, if made, would be within the prescribed limits under
Section 139 of the Companies Act, 2013 and that they are not
disqualified for re-appointment within the meaning of Section 141 of
the said Act.
The auditors have stated that the company has transacted with the
parties covered u/s 301. The directors hereby express that the
transaction entered into were basically current account transactions in
nature. The rate of interest and other terms & conditions are not
prejudicial to the interest of company.
The delay in payment of statutory dues with Income Tax Department, as
stated in Auditor''s Report, is not serious in nature and was deposited
with the concerned authority with interest, as applicable. Other than
this, the Notes on Financial Statements referred to in the Auditors''
Report are self- explanatory and do not call for any further comments.
COMPLIANCE CERTIFICATE
As per the requirements of Section 383A of the Companies Act, 1956 and
Companies (Compliance Certificate) Rules, 2001, the Company has
obtained a Compliance Certificate for the Financial Year 13-14 from M/s
V. M. & Associates, Company Secretaries, Jaipur, confirming that the
Company has complied with the provisions of the Companies Act, 1956 and
a copy of the Compliance Certificate is annexed to this report.
HUMAN RESOURCE DEVELOPMENT
The Company recognizes that its employees are its principal assets and
that it''s continued growth is dependent upon the ability to attract and
retain quality people. The Company also recognizes the importance of
providing training and development opportunities to its people to
enhance their skills and experiences, which in turn enables the company
to achieve its business objectives. The morale of employees continued
to remain high during the year contributing positively to the progress
of the Company. However aspirations of employees in India remain to be
high. This is a challenge as only growth can fulfill these aspirations
and in today''s market scenarios one has to perform extraordinarily to
achieve growth.
The Company has always provided a congenial atmosphere for work to all
sections of the society. Your Company is committed to respect universal
human rights. To that end, the Company practices and seeks to work with
business associates who believe and promote these standards. The
Company is committed to provide equal opportunities at all levels, safe
and healthy workplaces and protecting human health and environment. The
Company provides opportunities to all its employees to improve their
skills and capabilities. The Company''s commitment extends to its
neighbouring communities to improve their educational, cultural,
economic and social well-being. Your Company is an equal opportunity
employer and does not discriminate on the grounds of race, religion,
nationality, ethnic origin, colour, gender, age, citizenship, sexual
orientation, marital status or any disability not affecting the
functional requirements of the position held.
DELISTING OF EQUITY SHARES
The members have passed a special resolution in the Annual General
Meeting of Company held on 10th July, 2004 permitting the Company to
delist its shares from the regional stock exchanges of Delhi, Kolkata,
and Ahmedabad. As on date, out of the above-stated four stock
exchanges, the equity shares of the Company have been delisted from the
Delhi, Ahmedabad and Jaipur Stock Exchanges. Delisting application of
the Company is still pending with the Calcutta Stock Exchange
Association Ltd., Kolkata since December 2004. Inspite of several
reminders, the Company did not get any response from the exchange in
the matter of the delisting status.
DISCLOSURE OF SUBSIDIARY AND ASSOCIATE COMPANY
The shares of "Mayur Abodes Limited"which became the subsidiaryof your
Company "Mayur Leather Products Limited" on1st October, 2010, have been
sold through a share sell agreement dated 10th April, 2013. Therefore,
as on date "Mayur Leather Products Limited" does not have any
Subsidiary Company.
However,the Company exercises significant influence (32.26%) over its
Associate Company i.e. "Mayur Global Private Limited".Mayur Global
PrivateLimitedis a Footwear Manufacturing company established to
fulfill the export demand of leather Footwear.
MANAGEMENT DICUSSION AND ANALYSIS REPORT
A detailed discussion on the industrial structure, development,
opportunities, threats, review of operational performance and risks, as
required under the Listing Agreements with stock exchanges, forms part
of this report and is annexed herewith.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 and Section 134(5) of the Companies Act, 2013, with respect
to Directors'' Responsibility Statement, your Directors confirm that:
1. that in the preparation of the Annual Accounts for the Financial
year 2013-2014, the applicable Accounting Standards have been followed
and there are no material departures;
2. that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give true and fair view of the State of
Affairs of the Company for the financial year and of the statement of
profit and loss of the Company for that period.;
3. that the directors have taken proper and sufficient care to the best
of their knowledge and ability for the maintenance of adequate
Accounting records in accordance with the provisions of this Act, for
safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities;
4. that the Annual Accounts are prepared on a ''going concern'' basis.
PARTICULARS OF EMPLOYEES
There are no employees in the Company whose particulars are required to
be disclosed under the provisions of section 217(2A) of the Companies
Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as
amended, from time to time.
CORPORATE GOVERNANCE REPORT
The Company is committed to maintain the highest standards of Corporate
Governance and adhere to the Corporate Governance requirements set out
by SEBI.
The Report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of the Annual Report along with the
requisite Certificate from Company Secretaries in Practice, as
stipulated, is annexed to this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information in accordance with the provisions of section 217 (1) (e) of
the Companies Act, 1956, and rules made therein, the particulars of
technology absorption and foreign exchange earnings and outgo is
provided as under.
(A) CONSERVATION OF ENERGY
The Company has taken various steps to reduce consumption of power,
fuel, oil and other energy resources. The Company regularly takes
advice from experts on energy conservation measures to be adopted.
Regular studies are undertaken for assessing the possibilities of use
of various methods by which the Company optimizes the use of energy
without effecting the productivity, quality etc. Training programs are
conducted to increase awareness on energy saving. As already mentioned,
the efforts of the Company have already started showing results as the
power, fuel and water expenses have been reduced for the year under
review. This reduction has been achieved despite of escalating power
and fuel prices.
(B) RESEARCH & DEVELOPMENT / TECHNOLOGY ABSORPTION
Company continued to give utmost importance to the R&D activities. The
Company has its own in-house well-developed Research and Development
division. The objective of the Company through continuous Research and
Development activities is the introduction of cost effective,
state-of-art-products with enhanced life and to increase the production
capacity. The Company''s Laboratory and R&D division is continuously
working towards new developments and keeps pace with the latest
developments in high tech areas.
(C) FOREIGN EXCHANGE EARNING AND OUTGO
Activities relating to exports; initiatives taken to increase exports,
development of new export markets for product and services; and export
plans:
The Company is engaged in the manufacture and export of leather safety
shoes and shoe uppers. The majority sale is through exports. Due to the
economic slowdown, the export market of the regular products has been
badly affected. This is being countered by two activities: -
A. Re-align fresh business from existing customers with new products.
B. Develop an Indian Market Network.
Hopefully the results should start showing within the next six months.
It is our endeavor to fight the worldwide recession.
INTERNALAUDITOR
As per Section 138 of Companies Act 2013, every Listed Company is
required to appoint an Internal Auditor or a firm of Internal Auditors.
The directors are pleased to confirm the appointment ofM/s. Verma
Prashant & Associates, as Internal Auditors of the company.
SECRETARIAL AUDITOR
As per section 204 of Companies Act 2013, every listed company is
required to annex with its Boards report, a Secretarial Audit Report
which shall be issued from the financial year 2014-15 onwards which is
to be given by a Company Secretary in practice.
The directors are pleased to confirm the appointment of M/s Jaks &
Associates, Company Secretaries, Jaipur as Secretarial Auditor of the
company.
ACKNOWLEDGEMENT
Your Directors would like to express their appreciation for assistance
and co-operation received from the Bankers, Central & State Government,
Local Authorities, Clients, Vendors, Advisors, Consultants and
Associates at all levels for their continued guidance and support. Your
Directors also wish to place on record their deep sense of appreciation
for their commitment, dedication and hard work put in by every member
of the Company.
To them goes the credit for the Company''s achievement and to you, our
shareholders we are deeply grateful for the confidence and the faith
that you have always reposed in us.
For and on behalf of the Board of Directors
PLACE : JAIPUR Sd/- Sd/-
DATE : 30.05.2014 R.K. Poddar Amita Poddar
Director Director
DIN:00143571 DIN:00143486
Mar 31, 2013
The directors have great pleasure in presenting the annual report
together with audited statement of accounts for the year ended
September 30, 2013.
(consolidated)
financial highlights 2012-13 2011-12
in '' in ''
net revenue from operations 658,53,48,871 452,05,81,457
less expenditure 510,97,28,244 351,72,78,952
operating profit (pbidt) 147,56,20,628 100,33,02,505
interest 28,54,39,350 20,51,99,592
profit before
depreciation & tax (pbt) 119,01,81,278 79,81,02,913
depreciation 50,34,74,226 42,34,87,038
profit before tax 68,67,07,052 37,46,15,875
provision for taxation 15,89,29,966 6,74,85,866
profit after tax 52,77,77,086 30,71,30,009
provision for deferred tax 2,09,84,814 1,30,14,433
profit after deferred tax 50,67,92,272 29,41,15,576
balance brought forward 61,07,67,157 51,66,76,293
profit available
for appropriation 111,75,59,429 81,07,91,869
appropriation
dividend paid 1,22,90,705
proposed dividend 13,20,61,645 4,30,42,192
dividend distribution tax 2,14,23,700 69,82,520
general reserve 15,00,00,000 15,00,00,000
balance carried forward in p&l a/c 80,17,83,378 61,07,67,157
(standalone)
financial highlights 2012-13 2011-12
in '' in ''
net revenue from operations 448,95,05,679 308,39,19,980
less expenditurev 331,32,81,507 232,52,57,512
operating profit (pbidtb 117,62,24,172 75,86,62,468
interest 27,14,32,642 18,38,28,194
profit before
depreciation & tax (pbt) 90,47,91,530 57,48,34,274
depreciation 34,95,87,981 29,79,43,411
profit before tax 55,52,03,549 27,68,90,863
provision for taxation 13,98,74,629 5,53,15,987
profit after tax 141,53,28,920 22,15,74,876
provision for deferred 1,84,69,264 1,12,54,813
profit after deferred tax 39,68,59,656 21,03,20,063
balance brought forward 23,17,06,088 22,14,10,737
profit available
for appropriation 62,85,65,744 43,17,30,800
dividend paid 13,20,61,645 4,30,42,192
proposed dividend 2,14,23,700 69,82,520
general reserve 15,00,00,000 15,00,00,000
balance carried forward in p&l a/c 32,50,80,399 23,17,06,088
Results of operation : consolidated
income for the year ended september 30 2013 was ''. 658.53 crore as
compared to ''. 452.06 crore for the previous year. net profit after tax
was ''. 50.68 crore vis-a-vis ''. 29.41crore for fy 2011-12. earnings per
share was ''. 19.19 compared to ''. 12.30 for the previous year.
standalone
income for the year ended september 30 2013 was ''. 448.95 crore as
compared to ''. 308.39 crore for the previous year. net profit after tax
was ''. 39.68 crore vis-a-vis ''. 21.03 crore for fy 2011-12. earnings
per share was ''. 15.03 compared to ''. 8.80 for the previous year.
share capital
the paid up share capital of the company as on september 30 2013 stood
at ''. 26.41 cr and the reserves and surplus ''. 235 cr (206.18 cr in the
previous year) and on consolidated level reserves and surplus ''. 312.00
cr as against ''. 268.29 cr in the previous year. the company''s shares
are listed on the national stock exchange (nse), bombay stock exchange
(bse), and madras stock exchange (mse). the company has paid the annual
listing fees to all the stock exchanges and there are no arrears.
allotment of equity shares against exercise of option on convertible
warrants in terms of the approval given by the shareholders of the
company at the annual general meeting held on 29.03.2012, and upon
receipt of requisite statutory approvals, the board of directors of the
company allotted a total of 25 lakh fully paid up equity shares of ''.10
each in 2 equal instalments on 15.02.2013 and 07.06.2013, to g
muralikrishna and v ramachandran, two of the promoters of the company,
on preferential basis. the company does not have any convertible
warrant outstanding as on date.
dividend
your directors are pleased to recommend an increased dividend of ''.
5.00 per share on an enhanced paid up capital of ''. 26,41,23,290. total
dividend pay-out including dividend distribution tax is ''. 15.35 cr.
business and prospects
while the business focus continues to be on banking and financial
services and insurance, healthcare and technology verticals, the
company has taken the initiative to launch services in new horizontals
such as big data and analytics, cloud services and mobile technology
solutions.
according to IDC these new generation offerings are estimated to drive
90% of the growth in the IT space between 2013 and 2020. it is expected
to have a potential to generate revenues in excess of a trillion
dollars during this decade.
our company has set up a center of excellence for rolling out solutions
on the mobile platform. we have launched our ''predictive analytics
practice'' in May this year when the company had the privilege of
ringing the nasdaq closing bell commemorating 15 years of listing of
our US subsidiary on the nasdaq.
these bold initiatives not only present a humungous opportunity but
also establish your company in the forefront of cutting edge
technologies.
the company has long-standing relationships with large multinational
corporations. focus on a few large clients has helped the company to
strengthen the relationship and gain increased traction from existing
clients.
the company works with eight of the top 20 global banks in the bfsi
space. these clients include universal banks, investment banks, capital
market institutions, insurance companies etc.
in the healthcare vertical the company caters to healthcare providers,
healthcare payers and life sciences companies.
all these client organizations offer huge potential for the new age
service offerings launched by the company.
knowledge services is yet another business segment that is non linear.
the company made significant progress offering technology training to
various corporates in India and overseas. social sector has been added
to the basket this year. the company is associated with nasscom as an
accredited training partner for skill development in the IT and ITES
sectors. this initiative is an integral part of a national mission for
up-gradation of skills. the national mission has an objective to cover
500 million persons under this program by 2022.
subsidiary companies and consolidated financial statements with the
gradual easing of the global slowdown and with the US economy looking
up, all the subsidiaries have performed satisfactorily during the year.
as per section 212 of the companies act 1956, the company is required
to attach directors report, balance sheet and profit and loss account
of the subsidiaries. the ministry of corporate affairs, government of
India, vide its general circular no: 2/2011 dated 08.02.2011, has
provided exemption to companies from complying with section 212,
provided the board approves the proposal and such companies publish the
audited consolidated financial statements in the annual report.
accordingly, the annual report for 2012-13 does not contain the
financial statements of the subsidiaries. the audited annual accounts
and related information of the subsidiaries, where applicable, will be
made available upon request. these documents will also be available for
inspection during business hours at the registered office of the
company at chennai.
particulars of employees as required by the provisions of section 217
(2a) of the companies act, 1956, read with companies (particulars of
employees) rules, 1975, as amended, the names and other particulars of
the employees are set out in annexure to the directors'' report.
however, as per the provisions of the section 219(1) (b) (iv) of the
companies act, 1956, the report of the directors is being sent to all
the shareholders of the company excluding the aforesaid information.
any shareholder of the company interested in obtaining such information
may write to the secretary at the corporate office of the company.
vmoksha - arbitration status
as reported already, your company signed a definitive share purchase
agreement (spa) to acquire 100% equity in three vmoksha entities based
at bangalore, singapore and USA in the month of may 2005. however, the
sellers tried to renege the spa and hence your company initiated
arbitration proceedings.
arbitration proceedings were presided by hon''ble justice
mr.k.venkataswami, judge, supreme court (retd) as the sole arbitrator.
arbitration proceedings were conducted over a period of two years
spread over 34 sittings. the first sitting
was held on 28.10.2006 and thirty fourth sitting was held on 28.06.2008
and 5 volumes of 1370 pages of documents were submitted before the
arbitrator. the hon''ble arbitrator posted the matter for pronouncement
of award on 20.09.2008. at the request of the advocates of the
respondents the award date was rescheduled to 29.09.2008.
unfortunately, hon''ble justice mr.k.venkataswami passed away on
26.09.2008 just 3 days before the revised pronouncement date.
as the company wanted to settle the issue in a legally valid manner,
the company decided to continue the arbitration proceedings. hence, the
company has filed a petition before the hon''ble high court of madras
seeking its directions for appointment of a new arbitrator for speedy
disposal of the arbitration proceedings [ref o.p.no.336 of 2009]. the
petition is pending before the honble high court for disposal.
based on its present knowledge of facts and as per legal opinion
obtained, the current legal proceedings, in the opinion of your
management, will not have a material adverse effect on the results /
operations of helios and matheson.
directors'' responsibility statement
pursuant to the requirement under section 217 (2aa) of the companies
act, 1956, with respect to directors responsibility statement, it is
hereby confirmed that:
in the preparation of the annual accounts for the financial year ended
september 30 2013 the applicable accounting standards have been
followed along with proper explanation relating to material departures.
the directors have selected such accounting policies and applied them
consistently and made judgments and estimates that were reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company at the end of the financial year and of the profit of the
company for the year under review.
the directors have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with provisions of the
companies act, 1956, for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities.
the directors have prepared the accounts for the financial year ended
september 30 2013 on a "going concern" basis.
directors
s.k patil retires by rotation at this annual general meeting and is
eligible for election. suresh kumar r was appointed as additional
director of the company at the board meeting held on 29.10.2013 and
holds office upto the date of the ensuing annual general meeting.
notice has been received from a
member of the company proposing the candidature of suresh kumar r as a
director of the company at the ensuing annual general meeting.
necessary resolutions for approval of shareholders are proposed in the
notice of the ensuing annual general meeting for the reappointment of
s.k patil and appointment of suresh kumar r as directors of the
company.
conservation of energy, research & development, technology absorption,
foreign exchange earnings and outgo
the provisions of subsection (1) (e) of section 217 of the companies
act, 1956, read with companies (disclosure of particulars in the report
of board of directors) rules, 1988, are set out in the annexure to this
report.
auditors
m/s.venkatesh & co., chartered accountants, chennai, retire at the
ensuing annual general meeting and are eligible for reappointment. a
certificate under section 224 (1-b) of the companies act, 1956, has
been received from them.
acknowledgement
your directors thank the clients, vendors, investors, financial
institutions and bankers for their continued support for the company''s
growth. your directors place on record their appreciation of the
contribution made by the employees at all levels, who, through their
competence, hard work, solidarity, cooperation and support, have
enabled the company to achieve rapid growth.
your directors thank the government of India, particularly the
department of electronics, software technology parks- chennai and
bangalore, department of commerce (mepz special economic zone) chennai,
ministry of information technology, ministry of commerce, the reserve
bank of india, the department of telecommunications, the state
governments, and other government agencies for their support during the
year and look forward to their continued support in the future.
for and on behalf of the board
place: chennai muralikrishna g.
date : 29.11.2013 chairman & managing director
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