Mar 31, 2018
The Directors take pleasure in presenting the 35th Annual Report together with the Audited financial statements of the Company for the financial year ended 31st March, 2018.
FINANCIAL highlights:
(Rs. in Lakhs)
Particulars |
2017-18 |
2016-17 |
Sales and Other Income |
14011 |
12432 |
Operational Expenses |
12145 |
10929 |
Depreciation |
496 |
400 |
Financial Charges |
571 |
515 |
Profit before Tax |
864 |
649 |
Provision for Taxes/ Def.Tax Liab/ including earlier years |
77 |
135 |
Net Profit |
722 |
453 |
Reserves from last year |
3752 |
3299 |
Reserves brought forward to Balance Sheet |
4474 |
3752 |
TRANSFER TO RESERVES
An amount of Rs. 722 lakhs has been transferred to General Reserve for the Financial Year ended 31st March 2018.
DIVIDEND
Operations of the company are growing fast and the company is in expansion mode. Considering the fund requirements for our future plans for up-gradation of plant & machinery / technology up-gradation, the Board of Directors considered it appropriate not to declare any dividend for the current year.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed analysis of the Company''s operations in terms of performance in markets, business outlook, Opportunities and Threats, risks and concerns forms part of the Management Discussion and Analysis is incorporated in a separate section of this report.
DIRECTORSâ RESPONSIBILITY STATEMENT
In compliance with section 134(5) of the Companies Act, 2013, the Directors of your Company confirm:
- that the applicable Accounting Standards (i.e. Indian Accounting Standards) have been followed in the preparation of annual accounts and the corresponding figures for the previous years have been regrouped/ rearranged accordingly and that there are no material departures;
- that such accounting policies have been selected and applied consistently and the judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at 31st March, 2018 and of the profit of your Company for the year ended on that date;
- 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 your Company and for preventing and detecting fraud and other irregularities;
- that the annual accounts have been prepared on a going concern basis;
- that the internal financial controls to be followed by the Company have been laid down and such
internal financial controls are adequate and were operating effectively; and
- that proper systems to ensure compliance with the provisions of all applicable laws have been devised and such systems were adequate and operating effectively.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provisions of the Companies Act, 2013, Mrs. Narinder Paul Kaur, Non- Executive Non-Independent Director (DIN: 02435942), of the Company retires by rotation at the ensuing Annual General Meeting (AGM) and being eligible, offers herself for reappointment. The brief resume and other details as required under Securities & Exchange of Board of India (Listing Obligations and Disclosure Requirements), Regulations 2015 and Secretarial Standards issued by The Institute of Company Secretaries of India (ICSI) are provided in the Notice of 35th Annual General Meeting of the Company. The Board recommends that Mrs. Narinder Paul Kaur, Non- Executive Non-Independent Director (DIN: 02435942), may be re-appointed at the ensuing AGM.
Necessary resolutions in respect of re-appointment of Mrs. Narinder Paul Kaur, Non- Executive Non-Independent Director (DIN: 02435942), have been included in the notice convening the ensuing annual general meeting. Your directors commend his re-appointment.
During the year under review, Mr. Madan Lal (DIN: 00272672), ceased to be a Non-Executive Independent Director of the company w.e.f. 28th September, 2017, as his term of appointment has been completed.
During the year under review, Mr. Shashank Ramesh Anikhindi (DIN 07787889) has been appointed as an additional director of the Company in Independent category with effect from 27th May, 2017 and appointed (regularized) as Independent Directors on the Board of the Company in the Annual General Meeting held on 28th September, 2017 to hold office for a for a term of 3 (Three) consecutive years with effect from 29th September, 2017 up to 28th September, 2020.
During the year under review, following directors of the company has been reappointed on the Board in the Annual General Meeting held on 28th September, 2017:
- Mr. Raj Kumar Kapoor (DIN: 00110338), as an Independent Director of the Company for a second term of 3 (Three) consecutive years with effect from 29th September, 2017 up to 28th September, 2020,
- Mr. Rakesh Kapoor (DIN: 00015358), as an Independent Director of the Company for a second term of 4 (four) consecutive years with effect from 29th September, 2017 up to 28th September, 2021, and
- Mr. Anil Sharma (DIN: 00157911), as an Independent Director of the Company for a second term of 2 (Two) consecutive years with effect from 29th September, 2017 up to 28th September, 2019.
- Mr. Gursharan Singh (DIN: 00057602), as Chairman & Managing Director of the company for a period of 5 years w.e.f. 23rd August 2017 up to 22nd August, 2022.
- Mr. Dev Raj Arya (DIN: 00057582), as Whole time Director & Chief Financial Officer of the company for a period of 2 years w.e.f. 22nd October, 2017 up to 21st October, 2019.
Declaration by Independent Directors
All the Independent Directors of your Company have made declaration to the Company that they meet all the criteria of independence laid down under section 149(6) of Companies Act, 2013 and regulation 16(1)(b) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Relationship between Directors Interse
Except Mr. Gursharan Singh, Chairman & Managing Director and Mrs. Narinder Paul Kaur, Non-executive Director, none of the Directors of the company is related to the other Director or to any other employee of the Company.
Familarisation Programme for Independent Directors
Your Company has adopted âFamilarisation Programmes for Independent Directors'' to familiarise them with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company, etc. Your Company aims to provide its Independent Directors, insight into the Company enabling them to contribute effectively.
The details of familiarisation programmes may be accessed under the Corporate Governance section of the website http://raclgeartech.com/pdfs/Familiarisation_Programme_for_Independent_Directors_8march2018.pdf
During the year under review, Independent Directors were apprised on an ongoing basis in the various Board/ Committee meetings on macro-economic environment, information on business performance, operations, financial parameters, working capital management, fund flows, update on statutory compliances for Board members, etc. Apart from this, 2 (two) familiarization programs were conducted in the financial year 201718, which were attended by all the Independent Directors. Total number of hours spent by each Independent Director in these programs were 4 (four) hours.
DISCLOSURES
ADOPTION OF INDIAN ACCOUNTING STANDARDS (âIND ASâ)
The Company has adopted Indian Accounting Standards (âInd ASâ) and accordingly these financial statements have been prepared in accordance with the same as required under section 133 of the Companies Act, 2013 read with rules made there under. The date of transition to Ind AS is 01st April, 2016. These financial statements for the year ended 31st March, 2018 are the Company''s first Ind AS financial statements. The impact of transition has been accounted for in the financial statement of the company and the comparative period figures have been reinstated accordingly.
COMMITTEES OF BOARD
Pursuant to requirement under Companies Act, 2013 and Securities & Exchange of Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors has constituted various Committees of Board such as Audit Committee, Stakeholders Relationship Committee, Nomination & Remuneration Committee, Corporate Social Responsibility Committee and Financial Affairs Committee. The details of composition of these Committees are as follows:
Audit Committee
The previous Audit Committee of the company comprises of Mr. Raj Kumar Kapoor, Independent Director as the Chairman and Mr. Anil Sharma, Independent Director and Mr. Rakesh Kapoor, Independent Director as members.
During the year under review Audit committee was reconstituted and as on date it comprises of Mr. Rakesh Kapoor, Independent Director as the Chairman and Mr. Anil Sharma, Independent Director and Mr. Shashank Ramesh Anikhindi, Independent Director as members. Details in respect of the Audit Committee are provided in Corporate Governance Report, forming part of the Directors'' Report. During the year, there was no recommendation of the Audit Committee which was not accepted by the Board of Directors of the company.
Stakeholder Relationship Committee
The previous Stakeholder Relationship Committee of the company comprises of Mr. Madan Lal, Independent Director as the Chairman and Mr. Gursharan Singh, Chairman & Managing Director and Mr. Dev Raj Arya, Director & CFO as members.
During the year under review Stakeholder Relationship Committee was reconstituted and as on date it comprises of Mr. Rakesh Kapoor, Independent Director as the Chairman and Mr. Gursharan Singh, Chairman & Managing Director and Mr. Dev Raj Arya, Director & CFO as members. Details in respect of the Stakeholder Relationship Committee are provided in Corporate Governance Report, forming part of the Directors'' Report.
Nomination and Remuneration Committee
The previous Nomination and Remuneration Committee of the company comprises of Mr. Rakesh Kapoor, Independent Director as the Chairman and Mr. Anil Sharma, Independent Director, Mr. Madan Lal, Independent Director and Mr. Gursharan Singh, Chairman & Managing Director as other members.
During the year under review Nomination and Remuneration Committee was reconstituted and as on date it comprises of Mr. Rakesh Kapoor, Independent Director as the Chairman and Mr. Anil Sharma, Independent Director, Mr. Shashank Ramesh Anikhindi, Independent Director and Mr. Gursharan Singh, Chairman & Managing Director as other members. Details in respect of the Nomination and Remuneration Committee are provided in Corporate Governance Report, forming part of the Directors'' Report.
Corporate Social Committee
The previous Corporate Social Responsibility Committee of the company comprises of Mr. Anil Sharma, Independent Director as the Chairman and Mrs. Narinder Paul Kaur, Non-executive Non-Independent Director and Mr. Dev Raj Arya, Whole - time Director & CFO as other members.
During the year under review Corporate Social Responsibility Committee was reconstituted and as on date it comprises of Mr. Raj Kumar Kapoor, Independent Director as the Chairman and Mrs. Narinder Paul Kaur, Nonexecutive Director and Mr. Dev Raj Arya, Whole - time Director & CFO as other members. Details in respect of the Corporate Social Committee are provided in Corporate Governance Report, forming part of the Directorsâ Report.
Financial Affairs Committee
The previous Financial Affairs Committee of the company comprises of Mr. Raj Kumar Kapoor, Independent Director as the Chairman and Mr. Gursharan Singh, Chairman & Managing Director and Mr. Dev Raj Arya, Director & CFO as members.
During the year under review Financial Affairs Committee was reconstituted and as on date it comprises of Mr. Rakesh Kapoor, Independent Director as the Chairman and Mr. Gursharan Singh, Chairman & Managing Director and Mr. Dev Raj Arya, Director & CFO as members. Details in respect of the Financial Affairs Committee are provided in Corporate Governance Report, forming part of the Directors'' Report.
Number of Meetings of the Board
During the year under review, 5 (five) meetings of the Board of Directors were held, details of which are provided in Corporate Governance Report, forming part of the Directors'' Report.
Particulars of Loans, Guarantees or Investments
There is no investment made by the company and it has not provided any loan under section 186 of the Companies Act, 2013.
During the year under review, company has given guarantee/securities under section 186 or other applicable provisions of the Companies Act, 2013, of following amounts for the suppliers of the company to TATA Capital Financial Services Limited and these suppliers are associated with the company for last so many years and they have undertaken to establish additional Job working facility fully dedicated to RACL Geartech Limited:
- For Global Engineering Works Limited for an amount of Rs. 114,00,000/- (Rupees One Crore Fourteen Lakhs).
- For Hariom Engineering Private Limited for an amount of Rs. 29,00,000/- (Rupees Twenty Nine Lakhs).
- Diamento Precision Parts Private Limited for an amount of Rs. 40,00,000/- (Rupees Forty Seven Lakhs).
PERFORMANCE EVALUATION OF BOARD, COMMITTEES AND DIRECTORS
Pursuant to the provisions of the Companies Act, 2013 and regulation 17 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of the Independent Directors and various committee of directors on parameters such as skills, knowledge, participation in meetings and contribution in field of Management / Finance / Operation / Strategy etc.
Independent Directors in terms of Companies Act, 2013 and regulation 25 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, carried out performance evaluation of non-independent directors, Chairman of the Board and Board as a whole with respect to skills, knowledge, participation in meetings and Strong outlook towards compliance with Regulations / financial reporting standards etc.
Pursuant to the provisions of the Companies Act, 2013, the nomination and remuneration committee has carried out the performance evaluation of every Director''s (including Executive Directors, Non-Executive Directors and Independent Directors etc.) on parameters such as skills, knowledge, participation in meetings and contribution in field of Management / Finance / Operation / Strategy etc.
The Board of Directors expressed their satisfaction with the evaluation process.
Whistle Blower Policy/ Vigil Mechanism
An âAlert Procedureâ has already been functioning to ensure the establishment of vigil mechanism, to provide an avenue to all stakeholders (including employees and directors) to report concerns about unethical behaviour, actual or suspected fraud or violation of the RACL''s Code of Conduct for Directors and Senior Management Personnel. The said policy is also posted on the website of the Company, which may be accessed at the web-link http://raclgeartech.com/pdfs/Vigil_Mechanism_Whistle_Blower_Policy_july2016.pdf
NOMINATION AND REMUNERATION POLICY
In terms of the section 178 of the Companies Act, 2013 and Part D of Schedule II of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 your Company has a Nomination and Remuneration Policy. The aforesaid policy of the Company on director''s appointment and remuneration including criteria for determining qualifications, positive attributes, independence of directors and other matters is annexed as âAnnexure - Aâ. The salient points of said policy is stated in the Corporate Governance report forming part of the Directors'' Report.
Particulars of Employees and Related Disclosures
Details as required under section 197(12) of the Companies Act, 2013, read with Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2016 is annexed as âAnnexure - Bâ.
A statement showing the names of employees drawing remuneration in excess of the limits as set out in section 197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of Companies (Appointment and Qualifications of Directors) Rules, 2014 and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2016 is annexed as âAnnexure - Câ.
Extract of Annual Return
The extract of the Annual Return is detailed in form MGT.9, annexed as âAnnexure - Dâ.
Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo
The particulars, as prescribed under sub-section 3(m) of section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 are provided in âAnnexure - Eâ, which forms part of this report.
CORPORATE SOCIAL RESPONSIBILITY POLICY
The Board of Directors of your company has laid down and implemented a Policy on Corporate Social Responsibility, which may be accessed on the Company''s website at the link http://raclgeartech.com/pdfs/ Corporate_Social_Responsibility_Policy_july2016.pdf
As required under the Companies (Corporate Social Responsibility Policy) Rules, 2014 or other applicable provisions of the Companies Act, 2013, details of CSR Committee and initiatives/activities taken by the company during the year are provided in the Annual Report on CSR as annexed âAnnexure - Fâ, and forms integral part of this Report.
AUDITORS AND AUDITORSâ REPORT
Statutory Auditors
At the 34th Annual General Meeting of the Company held on 28th September, 2017, pursuant to the provisions of the Companies Act, 2013 and rules made there under, Gianender & Associates, Chartered Accountants [Firm Registration No. 004661N] was appointed as Statutory Auditors of the Company, to hold office for a period of 3 years, from the conclusion of this 34th Annual General Meeting (AGM) until the conclusion of the 37th AGM to be held in the year 2020, subject to ratification of their appointment by the members of the company at every AGM, at such remuneration and out of pocket expenses, as may be decided by the Board of Directors of the Company.
The Statutory Auditors'' Report of Gianender & Associates, Chartered Accountants on the Financial Statements of the company for the Financial Year 2017-18 is a part of the Annual Report. The Report does not contain any qualification, reservation, adverse remark or disclaimer. The Notes on financial statement referred to in the Auditors'' Report are self-explanatory and do not call for any further comments.
Secretarial Auditors
As per section 204 and other applicable provisions of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company appointed K. K. Malhotra & Company, Company Secretaries, as Secretarial Auditor of the Company for the financial year 2017-18.
The Secretarial Audit Report for the financial year 2017-18 is annexed as âAnnexure - Gâ and the Report does not contain any qualification, reservation, adverse remark or disclaimer.
INTERNAL AUDITOR
Pursuant to provisions of Section 138 of the Companies Act, 2013, the Board of Directors of your company appointed Protiviti India Member Private Limited [CIN: U93000HR2009PTC057389] as Internal Auditors of the Company, for a period of 2 (Two) financial years i.e. 2017-18 & 2018-19.
The Internal Auditors of the company provided their reports to the Audit Committee and Board of Directors on quarterly basis.
Cost Auditors
Pursuant to Companies (Cost Records and Audit) Amendment Rules, 2014 notified by the Ministry of Corporate Affairs (MCA) on 31st December, 2014, the Company was not mandatorily required to get its Cost Records for the financial year 2017 - 18 audited in terms of provisions of Section 148 of the Companies Act, 2013 and maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, was also not required to be maintained by the Company.
RELATED PARTY TRANSACTIONS
In terms of Regulation 23 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Board of Directors of your Company has approved Related Party Transactions Policy on dealing with Related Party Transactions. The policy may be accessed at the web-link http://raclgeartech.com/pdfs/Related_Party_Transaction_Policy_july2016.pdf
All related party transactions as per the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 during the financial year were on arm''s length basis and were in the ordinary course of business. During the year, there were no material related party transactions made by the Company which could be considered material in accordance with Related Party Transactions Policy of the Company.
Suitable disclosures as required by the accounting standards has been made in the notes to accounts of Financial Statements for financial year 2017-18. Particulars of contracts or arrangements with related party referred to in section 188 or other applicable provisions of the Companies Act, 2013 is annexed as âAnnexure - Hâ.
RISK MANAGEMENT
The Board of Directors of your Company has laid down a Risk Management Policy for the Company, which provides a risk and controls matrix with identification of risks inherent to the business, corporate governance, functions and sources of these risks, their possible consequences and control measures to help manage them. Every unit and function is required to deploy the control measures and ensure timely reporting.
In the opinion of the Board, none of the mentioned risks threaten the existence of the Company.
INTERNAL FINANCIAL CONTROL
The Board of Directors of your Company is satisfied with the Internal Financial Control process w.r.t. financial statement or others. Internal control environment of the Company is reliable with well documented framework to mitigate risks. A detailed analysis is provided in the Management Discussion and Analysis Report.
CORPORATE GOVERNANCE
The Company is committed to maintain and adhere to the highest standards of Corporate Governance practices.
Pursuant to regulation 34 read with Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Reports on Management Discussion and Analysis and on Corporate Governance have been included elsewhere in this Report as separate sections. A certificate from Mr. K. K. Malhotra, Practicing Company Secretary (Proprietor, K. K. Malhotra & Company, Company Secretaries), regarding compliance of conditions of Corporate Governance as stipulated in regulation 34 read with Schedule V or other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 has also been included in the Annual Report.
ENVIRONMENT, HEALTH AND SAFETY
The absolute respect of Environment, Health and Safety (EHS) is on the top priority of RACL Geartech Limited.
RACL Geartech Limited gives importance to safety, health and well-being of its employees and all the people working for the Company. Your Company is working hard to reduce the number of accidents to Zero. The Company encourages and ensures not only its employees but also its subcontractors working on Company''s plants as well as its customers for complying with occupational health and safety measures.
PERSONNEL
Personnel relations with all employees remained cordial and harmonious throughout the year. Your Directors wish to place on record their sincere appreciations for the continued, sincere and devoted services rendered by all the employees of the Company.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
Except as disclosed elsewhere in the Annual Report, there have been no material changes and commitments, which can affect the financial position of the Company between the end of financial year i.e. 31st March, 2018 and the date of this report.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has in place an anti-sexual harassment policy (i.e. Prevention of Sexual Harassment at Workplace) and Internal Complaints Committee (ICC)/ Internal Committee in line with the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Internal Complaints Committee (ICC)/ Internal Committee has been set up to redress complaints received regarding sexual harassment. All employees (Permanent, contractual, temporary and trainees) are covered under the aforesaid policy. The company has not received any complaint about sexual harassment during the year 2017-18.
GENERAL
During the year under review your Directors state that the disclosure or reporting is required in respect of the following items:
1. Company has not accepted any deposits during the year covered under Chapter V of the Companies Act, 2013.
2. There is no change in the nature of business of the Company.
3. Company has not issue equity shares with differential rights as to dividend, voting or otherwise.
4. Company has not issue of shares (including sweat equity shares, ESOS etc.) to employees of the Company or to others under any scheme.
5. Company has no subsidiaries, joint ventures or associate companies which have become or ceased during the year.
6. No significant or material orders were passed by the Regulators or Courts or Tribunals or others which impact the going concern status and Company''s operations in future.
7. During the financial year, company has borrowed an additional unsecured loan of Rs. 1 crore from its director i.e. from Mr. Gursharan Singh, Chairman & Managing Director of the Company as an exempted deposits and the aggregated amount borrowed by the company from its directors as on 31.03.2018 is Rs. 1.50 crore, i.e. Rs. 1.42 crore from Mr. Gursharan Singh, Chairman & Managing Director and Rs. 8 lakhs from Mrs. Narinder Paul Kaur, Non-executive Non-independent director of the company.
8. Unclaimed Shares: As on 31st March, 2018, the Company does not have any unclaimed shares.
9. The annual listing fee for the year under review has been paid to stock exchange i.e. BSE Limited, Mumbai, where your company''s shares are listed. The Financial Results of the company can be accessed at the company''s website http://raclgeartech.com/financials.html
10. During the year there was no fraud in the company which was reportable to the Central Government and there was no fraud reported by the Auditors to the company under sub-section (12) of section 143 or other applicable provisions of the Companies Act, 2013.
ACKNOWLEDGEMENT
Your Directors would like to express their sincere appreciation for the assistance and co-operation received from the banks, Government authorities, customers, vendors and members during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed services by the Company''s executives, staff and workers.
For and on behalf of the Board
For RACL Geartech Limited
Sd/-
Place: Noida Gursharan Singh
Date: 11th August, 2018 Chairman and Managing Director
DIN:00057602
Regd. Office: 15th Floor, Eros Corporate Tower,
Nehru Place, New Delhi-110019, INDIA
Ph.: 91-11-66155129
e-Mail - [email protected]
Mar 31, 2016
TO
THE MEMBERS,
The Directors take pleasure in presenting the 33rd Annual Report together with the Audited financial statements of the Company for the financial year ended March 31, 2016.
NEW NAME
With an emphasis on change, the company decided to rebrand its identity from Raunaq Automotive Components Limited to RACL Greatech Limited. The new name is contemporary & aligning perfectly to our core business area.
FINANCIAL RESULTS
(Rs. in Lacs)
Particulars |
2015-16 |
2014-15 |
Sales and Other Income |
12581 |
11547 |
Operational Expenses |
10294 |
9947 |
Depreciation |
396 |
427 |
Financial Charges |
556 |
675 |
Gross Profit/(Loss) |
569 |
498 |
Provision for Taxes/ Def. Tax Liab/ including earlier years |
199 |
139 |
Net Profit |
370 |
359 |
Profit b/f from last year (Reserves) |
1784 |
1434 |
Profit carried to Balance Sheet |
2154 |
1784 |
DIVIDEND
The company is on the path of growth and considering the fund requirements for our future plans for up-gradation of plant & machinery and technology up-gradation, the Board of Directors considered it appropriate not to declare any dividend for the current year.
TRANSFER TO RESERVES
An amount of Rs. 350 lakhs has been transferred to General Reserve for the Financial Year ended March 31, 2016.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed analysis of the Company''s operations in terms of performance in markets, business outlook, opportunities and threats, risks and concerns forms part of the Management Discussion and Analysis is incorporated in a separate section of this report.
DIRECTORS'' RESPONSIBILITY STATEMENT
In compliance with section 134 of the Companies Act, 2013, the Directors of your Company confirm:
- that the applicable Accounting Standards have been followed in the preparation of annual accounts and that there are no material departures;
- that such accounting policies have been selected and applied consistently and the judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at March 31, 2016 and of the profit of your Company for the year ended on that date;
- 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 your Company and for preventing and detecting fraud and other irregularities;
- that the annual accounts have been prepared on a going concern basis;
- that the internal financial controls to be followed by the Company have been laid down and such internal financial controls are adequate and were operating effectively; and
- that proper systems to ensure compliance with the provisions of all applicable laws have been devised and such systems were adequate and operating effectively.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provisions of the Companies Act, 2013, Mrs. Narinder Paul Kaur, Non-executive Director (DIN 02435942), of the Company retires by rotation at the ensuing Annual General Meeting and being eligible, offers herself for reappointment. The brief resume and other details as required under Securities & Exchange of Board of India (Listing Obligations and Disclosure Requirements), Regulations 2015 are provided in the Notice (including Annexure to Notice) of 33rd Annual General Meeting of the Company. The Board recommends that Mrs. Narinder Paul Kaur may be re-appointed at the ensuing AGM.
During the year under review, Mr. Devender Singh, Nominee Director (PICUP) (DIN 00115257) has retired from the services of PICUP w.e.f. December 31, 2015 and accordingly he ceased to be a director of the company (i.e. RACL Geartech Limited) w.e.f. December 31, 2015. Further, pursuant to the provisions of Section 167(1) (b) of the Companies Act, 2013, Mr. Ashok Misra Nominee Director (PICUP) (DIN No. 05236190), has vacated his office of Director w.e.f. 31.03.2015.
Necessary resolutions for the re-appointment of Mrs. Narender Paul Kaur, Non-Executive Director of the Company have been included in the notice convening the ensuing annual general meeting. Your directors commend her re-appointment.
Declaration by Independent Directors
All the Independent Directors of your Company have made declaration to the Company that they meet all the criteria of independence laid down under section 149(6) of Companies Act, 2013 and regulation 16(1)(b) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Relationship between Directors Inter-se
Except Mr. Gursharan Singh, Chairman & Managing Director and Mrs. Narinder Paul Kaur, Non-executive Director (Wife of Mr. Gursharan Singh), none of the Directors of the company is related to the other Director of the Company.
Familiarization Programme for Independent Directors
Your Company has adopted a ''Familiarization Programme for Independent Directors'' to familiarise them with the Company, their roles, rights, responsibilities in the company, nature of the industry in which the Company operates, business model of the Company, etc. Your company aims to provide its independent directors, insight into the Company enabling them to contribute effectively.
The details of familiarization programmes may be accessed under the Corporate Governance section of the website http://raclgeartech.com/pdfs/Familiarisation Programme for Independent Directors. Pdf During the year under review, Independent Directors were apprised on an ongoing basis in the various Board/Committee meetings on macro-economic environment, information on business performance, operations, financial parameters, working capital management, fund flows, update on statutory compliances for Board members, etc. Apart from this, two familiarization programs were conducted in the financial year 2015-16, which were attended by all the Independent Directors. Total number of hours spent by each Independent Director in these programs was four hours.
NOMINATION AND REMUNERATION POLICY
In terms of the section 178 of the Companies Act, 2013 and Part D of Schedule II of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has a Nomination and Remuneration Policy. The aforesaid policy of the Company on director''s appointment and remuneration including criteria for determining qualifications, positive attributes, independence of directors and other matters is annexed as âAnnexure - Aâ.
PERFORMANCE EVALUATION OF BOARD, COMMITTEES AND DIRECTORS
Pursuant to the provisions of the Companies Act, 2013 and Regulation 17 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of the Independent Directors and various committees of directors on parameters such as skills, knowledge, participation in meetings and contribution in field of Management / Finance / Operation / Strategy etc.
Independent Directors in terms of Companies Act, 2013 and Regulation 25 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, carried out performance evaluation of non-independent directors, Chairman of the Board and Board as a whole with respect to skills, knowledge, participation in meetings and Strong outlook towards compliance with Regulations / financial reporting standards etc.
Pursuant to the provisions of the Companies Act, 2013, the nomination and remuneration committee has carried out the performance evaluation of every Director''s (including Executive Directors, Non-Executive Directors and Independent Directors etc.) on parameters such as skills, knowledge, participation in meetings and contribution in field of Management / Finance / Operation / Strategy etc.
The Directors expressed their satisfaction with the evaluation process.
DISCLOSURES Audit Committee
The audit committee of your Company comprises of Mr. Raj Kumar Kapoor as the Chairman and Mr. Anil Sharma and Mr. Rakesh Kapoor as members. Details in respect of the audit committee is provided in Corporate Governance Report forming part of the Directors'' Report.
Whistle Blower Policy/ Vigil Mechanism
Your Company has formulated an âAlert Procedureâ to ensure the establishment of vigil mechanism, to provide an avenue to all stakeholders (including employees and directors) to report concerns about unethical behaviour, actual or suspected fraud or violation of the RACL''s Code of Conduct for Directors and Senior Management Personnel. The said policy is also posted on the website of the Company, which may be accessed at the web-link http://raclgeartech.com/pdfs/Vigil Mechanism Whistle Blower Policy july2016.pdf
Number of Meetings of the Board
During the year under review, 4 (four) meetings of the Board of Directors were held, details of which are provided in Corporate Governance Report forming part of the Directors'' Report.
Particulars of Loans, Guarantees or Investments
There is no investment made by the company and has not provided any loan, guarantee or securities under section 186 of the Companies Act, 2013.
Particulars of Employees and Related Disclosures
Details as required under section 197(12) read with Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2016 is annexed as âAnnexure - Bâ.
A statement showing the names of employees as per section 197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2016 is annexed as âAnnexure- Câ.
Extract of Annual Return
The extract of the Annual Return is detailed in Form MGT.9, annexed as âAnnexure - Dâ.
Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo
The particulars, as prescribed under sub-section 3(m) of section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 are provided in âAnnexure - Eâ, which forms part of this report.
CORPORATE SOCIAL RESPONSIBILITY
In accordance with the requirements of Section 135 of Companies Act, 2013, Your Directors have constituted the Corporate Social Responsibility Committee (CSR Committee) at its meeting held on February 11, 2016, comprising of Mr. Anil Sharma as the Chairman and Mrs. Narinder Paul Kaur and Mr. Dev Raj Arya as other members.
The said Committee recommends to the Board, the CSR projects/activities to be undertaken by the Company, monitors the implementation of the CSR Policy and reports to the Board of Directors. On recommendation of CSR committee, the Board of Directors of your Company approved Corporate Social Responsibility Policy which may be accessed at the following web-link:
http://raclgeartech.com/pdfs/Corporate Social Responsibility Policy july2016.pdf
Annual report on CSR activities as required under the Companies (Corporate Social Responsibility Policy) Rules, 2014 has been appended as âAnnexure - Fâ, and forms integral part of this Report.
AUDITORS AND AUDITORS'' REPORT Statutory Auditors
M/s. A. Sachdev & Co., Chartered Accountants, were appointed as statutory Auditors at 31st Annual General Meeting to hold office till the conclusion of 34th AGM subject to ratification of the appointment by the members at every AGM. In terms of Section 139 of the Companies Act, 2013, appointment of M/s. A. Sachdev & Co. as Auditors of the Company is recommended for ratification at ensuing Annual General Meeting.
The Notes on financial statement referred to in the Auditors'' Report are self-explanatory and do not call for any further comments. The Auditors'' Report does not contain any qualification, reservation or adverse remark.
Secretarial Auditors
As per section 204 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company appointed M/s. K. K. Malhotra & Co., Company Secretaries, as Secretarial Auditor of the Company for the financial year ended March 31, 2016.
The Secretarial Audit Report for the financial year ended March 31, 2016 is annexed as âAnnexure - Gâ. The Auditors'' Report does not contain any qualification, reservation or adverse remark.
Cost Auditors
Pursuant to Companies (Cost Records and Audit) Amendment Rules, 2014 notified by the Ministry of Corporate Affairs (MCA) on December 31, 2014, the Company shall not be mandatorily required to get its Cost Records for the financial year 2015-16 audited in terms of provisions of Section 148 of the Companies Act, 2013.
RELATED PARTY TRANSACTIONS
In terms of Regulation 23 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Board of Directors of your Company has approved Related Party Transactions Policy on dealing with Related Party Transactions. The policy may be accessed at the web-link http://raclgeartech.com/pdfs/Related Party Transaction Policy july2016.pdf
All related party transactions during the financial year were on arm''s length basis and were in the ordinary course of business. During the year, there were no material related party transactions made by the Company which could be considered material in accordance with Related Party Transactions Policy of the Company.
RISK MANAGEMENT
The Board of Directors of your Company has laid down a Risk Management Policy for the Company, which provides a risk and controls matrix with identification of risks inherent to the business, corporate governance, functions and sources of these risks, their possible consequences and control measures to help manage them. Every unit and function is required to deploy the control measures and ensure timely reporting.
In the opinion of the Board, none of the above mentioned risks threaten the existence of the Company.
INTERNAL FINANCIAL CONTROL
The Board of Directors of your Company is satisfied with the Internal Financial Control process. Internal control environment of the Company is reliable with well documented framework to mitigate risks. A detailed analysis is provided in the Management Discussion and Analysis Report.
CORPORATE GOVERNANCE
The Company is committed to maintain and adhere to the highest standards of Corporate Governance practices.
Pursuant to regulation 34 read with Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Reports on Management Discussion and Analysis and on Corporate Governance have been included elsewhere in this Report as separate sections. A certificate from M/s. A. Sachdev & Co., Chartered Accountants, regarding compliance of conditions of Corporate Governance as stipulated in regulation 34 read with Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 has also been included in the Annual Report.
ENVIRONMENT, HEALTH AND SAFETY
For your Company, the absolute respect of Environment, Health and Safety (EHS) is a priority.
RACL Geartech Limited gives importance to safety, health and well-being of its employees and all the people working for the Company. Your Company is working hard to reduce the number of accidents to Zero. The Company encourages and ensures not only its employees but also its subcontractors working on Company''s plants as well as its customers for complying with occupational health and safety measures.
PERSONNEL
Personnel relations with all employees remained cordial and harmonious throughout the year. Your Directors wish to place on record their sincere appreciations for the continued, sincere and devoted services rendered by all the employees of the Company.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
Except as disclosed elsewhere in the Annual Report, there have been no material changes and commitments, which can affect the financial position of the Company between the end of financial year i.e. March 31, 2016 and the date of this report.
Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
The Company has in place an anti-sexual harassment policy (i.e. Prevention of Sexual Harassment at Workplace) in line with the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Compliance Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (Permanent, contractual, temporary and trainees) are covered under this policy. The company has not received any compliant about sexual harassment during the year 2015-16.
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. Details relating to deposits covered under Chapter V of the Act.
2. There is no change in the nature of business of the Company.
3. Issue of equity shares with differential rights as to dividend, voting or otherwise.
4. Issue of shares (including sweat equity shares) to employees of the Company under any scheme.
5. Company has no subsidiaries, joint ventures or associate companies which have become or ceased during the year.
6. 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.
7. The annual listing fee for the year under review has been paid to BSE Limited, Mumbai, where your company''s shares are listed. The Financial Results of the company can be accessed at the company''s website http://raclgeartech.com/financials.html
ACKNOWLEDGEMENT
Your Directors would like to express their sincere appreciation for the assistance and co-operation received from the banks, Government authorities, customers, vendors and members during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed services by the Company''s executives, staff and workers.
For and on behalf of the Board
For RACL Geartech Limited
(Formerly Raunaq Automotive Components Limited)
Sd/-
Place: Noida Gursharan Singh
Date: August 6, 2016 Chairman and Managing Director
Regd. Office: 15th Floor, Chiranjiv Tower, 43,
Nehru Place, New Delhi-110019, INDIA
Ph. : 91-11-26418622, Fax : 91-11-26448962
Email : [email protected]
Mar 31, 2015
TO
THE MEMBERS,
The Directors take pleasure in presenting the 32nd Annual Report
together with the Audited financial statements of the Company for the
financial year ended March 31, 2015.
FINANCIAL RESULTS: (Rs.in Lacs)
Particular 2014-15 2013-14
Sales and Other Income 11558 11164
Operational Expenses 9958 9793
Depreciation 427 386
Financial Charges 675 645
Gross Profit/(Loss) 498 340
Provision for Taxes/ Def.Tax Liab 139 152
Net Profit 359 187
Profit b/f from last year (Reserves) 1434 1247
Profit carried to Balance Sheet 1784 1434
DIVIDEND
Considering the fund requirements for our future plans for up-gradation
of plant & machinery / technology up- gradation, the Board of Directors
considered it appropriate not to declare any dividend for the current
year.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed analysis of the Company's operations in terms of performance
in markets, business outlook, Opportunities and Threats, Risks and
Concerns forms part of the Management Discussion and Analysis, a
separate section of this report.
DIRECTORS' RESPONSIBILITY STATEMENT
In compliance with section 134(5) of the Companies Act, 2013, the
Directors of your Company confirm:
- that the applicable Accounting Standards have been followed in the
preparation of annual accounts and that there are no material
departures;
- that such accounting policies have been selected and applied
consistently and the judgments and estimates made are reasonable and
prudent so as to give a true and fair view of the state of affairs of
your Company as at March 31, 2015 and of the profit of your Company for
the year ended on that date;
- 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 your Company and
for preventing and detecting fraud and other irregularities;
- that the annual accounts have been prepared on a going concern basis;
- that the internal financial controls to be followed by the Company
have been laid down and such internal financial controls are adequate
and were operating effectively; and
- that proper systems to ensure compliance with the provisions of all
applicable laws have been devised and such systems were adequate and
operating effectively.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In terms of the provisions of Section 149 of the Companies Act, 2013
and Clause 49 of the Listing Agreement, a company shall have at least
one Woman Director on the Board of the company. During the year under
review, The Board of Directors of your Company at their meeting held on
January 31, 2015 co-opted Mrs. Narinder Paul Kaur as an Additional
Director (Non-Executive Director/Woman Director) liable to retire by
rotation.
In terms of section 152 of the Companies Act, 2013, Mr. Dev Raj Arya,
Director of the Company retires by rotation at the ensuing Annual
General Meeting. The Board recommends that Mr. Dev Raj Arya may be
re-appointed at the ensuing AGM.
In terms of provisions of Section 203 of the Companies Act, 2013 and
Clause 49 of the Listing Agreement with the Stock Exchange, the Board
of Directors of the Company has designated following Directors/
Officials of the Company as Key Managerial Personnel (KMP) of the
Company at its meeting held on July 31, 2014:
1. Mr. Gursharan Singh, Chairman & Managing Director
2. Mr. Dev Raj Arya, Whole Time Director & CFO
3. Ms. Kamna Tiwari, Company Secretary
Ms. Kamna Tiwari, Company Secretary, Key Managerial Personnel (KMP) of
the Company resigned on January 6, 2015 and the Board of Directors of
the Company appointed and designated Mr. Hitesh Kumar, Company
Secretary as Key Managerial Personnel (KMP) of the company at its
meeting held on January 31, 2015.
Necessary resolutions for the appointment/re-appointment etc. of the
aforesaid directors have been included in the notice convening the
ensuing annual general meeting. Your directors commend their
appointment/re- appointment.
Declaration by Independent Directors
All the Independent Directors of your Company have made declaration to
the Company that they meet all the criteria of independence laid down
under section 149(6) of Companies Act, 2013 and clause 49 of Listing
Agreement with the Stock Exchanges.
Familarisation Programme for Independent Directors
Your Company has adopted a 'Familarisation Programme for Independent
Directors' to familiarise them with the Company, their roles, rights,
responsibilities in the Company, nature of the industry in which the
Company operates, business model of the Company, etc. Your Company aims
to provide its Independent Directors, insight into the Company enabling
them to contribute effectively.
The details of familiarisation programme is disclosed on the Company's
website and may be accessed at the web link
http://www.raunaqauto.com/pdfs/Familiarisation-Programme-for-
Independent-Directors
NOMINATION AND REMUNERATION POLICY
The Board of Directors of your Company in terms of the Section 178 of
the Companies Act, 2013 and clause 49 of the Listing Agreement with
Stock Exchange. has on recommendation of Nomination and Remuneration
Committee, approved a Nomination and Remuneration Policy. The aforesaid
policy of the Company on Director's/ KMP appointment and remuneration
including criteria for determining qualifications, positive attributes,
independence of directors and other matters is annexed as "Annexure A".
The salient points of said policy is stated in the Corporate Governance
report forming part of the Directors' Report.
PERFORMANCE EVALUATION OF BOARD, COMMITTEES AND DIRECTORS
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out the annual performance
evaluation of the Directors individually including Independent
Directors, Board as a whole and of its various committees, on
parameters such as participation in meetings, skills, knowledge,
contribution towards corporate governance practices etc.
Independent Directors in terms of Companies Act, 2013, and clause 49 of
Listing Agreement, carried out performance evaluation of
non-independent directors, Chairman of the Board, Board as a whole and
flow of information between the company management and the Board with
respect to knowledge to perform the role, participation in meetings &
performance of duties etc.
The Directors expressed their satisfaction with the evaluation process.
DISCLOSURES
Audit Committee
The audit committee of your Company comprises of Mr. Raj Kumar Kapoor
as the Chairman and Mr. Devender Singh and Mr. Anil Sharma as members.
Details in respect of the audit committee is provided in Corporate
Governance Report forming part of the Directors' Report.
Whistle Blower Policy/ Vigil Mechanism
Your Company has formulated an "Alert Procedure" to ensure the
establishment of vigil mechanism, to provide an avenue to all
stakeholders (including employees and directors) to report concerns
about unethical behaviour, actual or suspected fraud or violation of
the Raunaq's Code of Conduct for Directors and Senior Management
Personnel. The said policy is also posted on the website of the
Company, which may be accessed at the web-link
http://www.raunaqauto.com/pdfs/VIGIL_MECHANISM_WHISTLE_BLOWER_POLICY
Number of Meetings of the Board
During the year under review, four (4) meetings of the Board of
Directors were held, details of which are provided in Corporate
Governance Report forming part of the Directors' Report.
Particulars of Loans, Guarantees or Investments
There is no investment made by the company and has not provided any
loan, guarantee or securities under section 186 of the Companies Act,
2013.
Particulars of Employees and Related Disclosures
Details as required under section 197(12) read with Rule 5(1) of
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 is annexed as "Annexure B".
A statement showing the names of employees drawing remuneration in
excess of the limits as set out in section 197(12) of the Companies
Act, 2013 read with Rule 5(2) and 5(3) of Companies (Appointment and
Qualifications of Directors) Rules, 2014 is annexed as "Annexure C".
Extract of Annual Return
The extract of the Annual Return is detailed in form MGT.9, annexed as
"Annexure D".
Conservation of Energy, Technology Absorption, Foreign Exchange
Earnings and Outgo
The particulars, as prescribed under sub-section 3(m) of section 134 of
the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014
are provided in "Annexure E", which forms part of this report.
AUDITORS AND AUDITORS' REPORT
Statutory Auditors
M/s. A. Sachdev & Co., Chartered Accountants, were appointed as
statutory Auditors at previous Annual General Meeting to hold office
till the conclusion of 34th AGM subject to ratification of the
appointment by the members at every AGM. In terms of Section 139 of the
Companies Act, 2013, appointment of M/s. A. Sachdev & Co. as Auditors
of the Company is recommended for ratification at ensuing Annual
General Meeting.
The Notes on financial statement referred to in the Auditors' Report
are self-explanatory and do not call for any further comments. The
Auditors' Report does not contain any qualification, reservation or
adverse remark.
Secretarial Auditors
As per section 204 of the Companies Act, 2013 read with Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014,
your Company appointed M/s. K. K. Malhotra & Co., Company Secretaries,
as Secretarial Auditor of the Company for the financial year ended
March 31, 2015. The Secretarial Audit Report for the financial year
ended March 31, 2015 is annexed as "Annexure F".
Cost Auditors
Pursuant to Companies (Cost Records and Audit) Amendment Rules, 2014
notified by the Ministry of Corporate Affairs (MCA) on 31 December,
2014, the Company shall not be mandatorily required to get its Cost
Records for the financial year 2014-15 audited in terms of provisions
of Section 148 of the Companies Act, 2013 as the Industry under which
the Company falls has been Exempted from the Cost Audit by MCA vide
Companies (Cost Records and Audit) Amendment Rules, 2014.
RELATED PARTY TRANSACTIONS
In terms clause 49 of the Listing Agreement, Board of Directors of your
Company has approved Related Party Transactions Policy on dealing with
Related Party Transactions. The policy may be accessed at the weblink
http://www.raunaqauto.com/pdfs/Related-Party-Transaction_Policy.
All related party transactions during the financial year were on arm's
length basis and were in the ordinary course of business. During the
year, there were no material related party transactions made by the
Company which could be considered material in accordance with Related
Party Transactions Policy of the Company.
RISK MANAGEMENT
The Board of Directors of your Company has laid down a Risk Management
Policy for the Company, which provides a risk and controls matrix with
identification of risks inherent to the business, corporate governance,
functions; and sources of these risks; their possible consequences; and
control measures to help manage them. Every unit and function is
required to deploy the control measures and ensure timely reporting.
INTERNAL FINANCIAL CONTROL
The Board of Directors of your Company is satisfied with the Internal
FinancialControl process. Internal control environment of the Company
is reliable with well documented framework to mitigate risks. A
detailed analysis is provided in the Management Discussion and Analysis
Report.
CORPORATE GOVERNANCE
The Company is committed to maintain and adhere to the highest
standards of Corporate Governance practices.
Pursuant to clause 49 of the Listing Agreement with Stock Exchange,
Reports on Management Discussion and Analysis and on Corporate
Governance have been included elsewhere in this Report as separate
sections. A certificate from M/s. A. Sachdev & Co., Chartered
Accountants regarding compliance of conditions of corporate governance
as stipulated in clause 49 of the Listing Agreement has also been
included in the Annual Report.
ENVIRONMENT, HEALTH AND SAFETY
For your Company, the absolute respect of Environment, Health and
Safety (EHS) is a priority.
Raunaq Automotive Components Limited gives importance to safety, health
and well-being of its employees and all the people working for the
Company. Your Company is working hard to reduce the number of accidents
to Zero. The Company encourages and ensures not only its employees but
also its subcontractors working on Company's plants as well as its
customers for complying with occupational health and safety measures.
DISCLOSURES UNDER SECTION 134 OF THE COMPANIES ACT, 2013
Except as disclosed elsewhere in the Annual Report, there have been no
material changes and commitments, which can affect the financial
position of the Company between the end of financial year and the date
of this report.
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. Details relating to deposits covered under Chapter V of the Act.
2. Issue of equity shares with differential rights as to dividend,
voting or otherwise.
3. Issue of shares (including sweat equity shares) to employees of the
Company under any scheme.
4. 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.
5. The annual listing fee for the year under review has been paid to
BSE Limited, Mumbai, where your company's shares are listed. The
Financial Results of the company can be accessed at the company's
website http://www.raunaqauto.com/financials.html.
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.
ACKNOWLEDGEMENT
Your Directors express their sincere appreciation for the assistance
and co-operation received from the financial institutions, banks,
Government authorities, customers, vendors and members during the year
under review. Your Directors also wish to place on record their deep
sense of appreciation for the committed services by the Company's
executives, staff and workers.
For and on behalf of the Board
for RAUNAQ AUTOMOTIVE COMPONENTS LIMITED
Sd/-
Place: New Delhi Gursharan Singh
Date : August 6,2015 Chairman and Managing Director
Regd Office : 15TH Floor, Chiranjiv Tower- 43,
Nehru Place, New Delhi-110019
Ph. : 91 11 26418622, Fax : 91 11 26448962
Email - [email protected]
Mar 31, 2013
TO THE MEMBERS,
The Directors present 30th Annual Report and Audited Statement of
Accounts of your Company for the Financial year ended 31st March, 2013.
FINANCIAL RESULTS :
(Rs.in Lacs)
Particulars 2012-2013 2011-2012
Sales and Other Income 10529 10897
Operational Expenses 9356 9700
Depreciation 332 305
Financial Charges 595 486
Gross Profit/(Loss) 246 406
Provision for Taxes/ Def.Tax
Liab/ including earlier years (88) (134)
Net Profit 158 272
Profit b/f from last year 1089 817
Profit carried to Balance Sheet 12471 1089
MANAGEMENT DISCUSSION AND ANALYSIS
a) The Global Economy 2012-13
Throughout the world all developed economies are showing sign of
stagnation or decline except select Asian countries, notably China &
India, which were growing over 7% in past 2 vnars However ongoing debt
crisis in Europe, fluctuating crude oil prices, heavy fluctuations in
inter currency exchange rates & political situation in some European
countries is putting severe inflationary pressure on economies
throughoutthe world. Although, it is creating additional trade
opportunities for developing economies to tap new avenues in the
developed countries by providing low cost products and services.
The global recession provided a food for thought to Indian economy to
find ways & means for, not only, its survival but consistent growth.
The Govt, policies in financial sector proved to the world at large
that Indian systems / sectors are one of the best systems that did not
yield to the very strong pressure of economic recession as it had
shaken the majoi economic powers of the globe.
Indian automotive industry duly backed by robust domestic demand, was
growing consistently in the past few years. An emerging middle class
sector which got boost from I.T, B.P.O and Banking sectors had been
creating a huge demand potential for 2 wheelers & small and mid sized
Cars. Similarly growth in agricultural sector duly backed by Government
support is considerably boosting the rural economy, which created
increased business opportunities for 3 wheelers, light passenger and
cargo vehicles. All these factors provided enough stimulus to transport
sector, resulting in boosting the sales for medium and heavy commercial
vehicles.
However, rise in interest costs, ever increasing fuel costs and heavy
inflation witnessed in past one year is creating road blocks for
maintaining the consistent growth trends in automotive sector. All
these factors are putting the demand squeeze of automobiles, due to
which automotive components sector is also under tremendous pressure of
low profitability due to decline in demand as well as tremendous cost
pressures, since OEMs are having stiff competition between themselves
due to which they have put a squeeze on the profit margins of component
suppliers. However, component industry has huge demand potential from
overseas export customers, as India is still considered a low cost
source with acceptable level of quality and price economy. On top of it
current decline in INR is attracting overseas buyers to enhance their
sourcing activities from Indian component manufacturers which shall
create new business opportunities.
b) Opportunities and threats
An Opportunity for Indian Economy
All over the World, Automobiles Giants have been looking towards India
as their destination for procurement of their domestic as well as
export requirements since Indian components manufacturers could provide
them sufficient confidence to achieve the desired quality norms for
products at competitive rates, mainly becauseof their strong
Engineering skills & low cost of production as compared to their
counter parts in other parts of the Globe.
However, it is felt that Indian economy is still struggling against
some basic inf rastructural facilities and other problems such as
Good Highways/Ports
Availability of Regular & Cheaper electricity.
Low Cost Raw Material
Simple taxation structure
Latest Technology & RD facilities
Erratic fluctuation in fuels prices / Exchange rate
High inflation rate i
Though, Indian economy has started loosing steam but it has the
potential of curbing such temporary downfall in demand and can move
faster in every sector, provided Government addresses above areas with
a pro-active approach and puts the best policies and requisite funds
for speedy development of most essential infrastructure.
Besides above, the Industrial sector itself has to gear up fully to tap
the huge opportunity made available by such recession with a particular
thrust in the following areas:
Continual improvement in Product quality & environment Management
systems.Technology up gradation.Exploring new business avenues in
domestic & as well as export market.
Focus on skill development at all levels. Adherence to principles of
corporate Governance at international levels.
Threats
Though, the Indian economy enjoys several advantages of being one of
the biggest market for vehicle users and has the distinction of being
one of the largest automotive components manufacturers in the world
still it faces the following threats
- Continued volatility of Raw material prices
- Free Trade/W.T.O.
- Foreign Currency fluctuations
Increased competition from China, Taiwan & other Asian countries
c) Risks & Concerns
Risks
The growth of Automotive Component Industry is entirely dependent upon
the performance of Automotive Sector/infrastructure development. -
Though, the global recession has adversely affected the export market
and recovery may be slower than expected but the efforts made by the
company during the last 2 years have yielded good results and the
company has bagged prestigious and high valued orders from abroad from
some of the world renowned OEM. However, the volatility in the market
may further deteriorate the sustainability of business in the long run.
Concerns
The major impediments in the overall growth of the Industry are:
- Inadequacy of good quality of infrastructure specially Highways,
Ports, Airports
Lack of Good Quality & continued availability of power at cheaper rates
- Volatility in prices and availability of basic raw material
- Multiple taxation system and other complicated administrative
procedures
- Inability to pass on increasing cost to customers
d) Internal Control Systems and their adequacy
The Company has adequate internal control systems, which ensure proper
recording of transactions of its operations and also protection against
misuse or loss of the company''s assets. Internal audit of the company
is carried out at periodic intervals by an independent firm of
Chartered Accountants, to ensure that the company''s internal control
system is adequately complied with and adhered to.
e) Cautionary Note
Certain statements in the management discussion and analysis section
may be forward looking and are stated as required by applicable Laws &
Regulations. Many other factors may affect the actual results, which
would be different from what the Directors envisage in terms of the
future performance and outlook.
PERFORMANCE OF THE COMPANY
In the Financial Year 2012-2013, the company achieved an Income of
Rs.10529 Lacs as compared to Rs, 10897 Lacs in 2011-12 thus leading to
fall ot 3 %. The company achieved an operating profit of Rs.246 Lacs
(PBT) as compared to Rs.406 Lacs (PBT) last year. The company has made
a provision of Rs.88 lacs on account of Income Tax''/ Deferred Tax
Liabilities.
The company has MAT credit of Rs. 160 Lacs which shall be utilized/
adjusted for payment of Income Tax in future. Company has a Reserve &
Surplus of Rs.2474.69 lacs as compared to Rs. 1214.68 Lacs last year.
In the export front the demand from our existing Customers has
increased significantly and the company is fully geared up to meet the
additional demand of our Export Customers.
During the year under review, the company had been successful in
capturing the business from some of the world renowned automotive
manufacturers and its further impact shall be visible in the
performance of the current year.
During the Financial Year under review, the profit margins of the
company have been adversely bit due to seve. nflationary pressure.
However, a part of the same has been passed over to customers.
EXPORTS
The company has successfully broadened the export horizons during the
year under review. Many prestigious MNCs have been included in our list
of customers. The company is not only catering to their existing
demand, but has also geared itself for their global requirement. In
2012-13, the company has improved its export sales significantly. It
has been exporting goods to every part of globe, may be it is Asian
countries, European Countries or USA. Our exports are very well
accepted and are being appreciated for their good quality and
competitive price.
During the year under review, the company achieved an export turnover
of Rs.2946 Lacs as against Rs. 1893 Lacs in 2011-12. Thus, achieving a
growth of 55%. The Company has already tapped prestigious business from
most reputed global brands. Our export customers are fully satisfied
with the quality, timely delivery & cost competitiveness. In the
current year we have targeted an overall export sales of Rs.4800 lacs.
FUTURE OUTLOOK
A YEAR OF DIVERSIFIED GROWTH
A) THRUST ON BEST CORPORATE HUMAN RESOURCES PRACTICES
Company has taken sufficient steps to impart practical training to its
work force at all levels. A separate cell in HR function has already
been created for imparting such training in the plant itself. In order
to encourage the senior staff, they are being deputed to attend
Conferences, Seminars, In-house Workshops and are even being sent to
overseas countries to upgrade their skills to global levels, so that
they are satisfied & bring in knowledge & skills to RACL for mutual
benefits.
B) INFRASTRUCTURAL & TECHNOLOGY UP GRADATION:
The company is consistently making investment in bringing in State of
the Art Technology in the field of Gear Honing, Gear Cutting, Heat
Treatment & Gear Finishing processes. A consistent thrust on technology
up-gradation is being maintained to ensure technology level in line
with global customers demand.
C) TAPPING NEW BUSINESS
The company has been exploring various avenues for development of new
customers in Domestic and Export market by participating in Exhibition
/ National Auto Expo show / states sellers/buyers meets and
other programmes organized by ACMA or other related agencies. With our
new installed technology, We have already bagged orders from world
class OEMs for sports Motor Cycle segment.
During the previous years RACL has explored business opportunities with
various new customers. Some of these are at various stages of
development. Commercial production has started for many new products &
we are hopeful that commercial production for additional parts shall be
commencing in the current year.
Considering the existing business scenario the company has started
exploring business opportunities with some new OEMs & we are hopeful
that slow down witnessed (if any) by the existing customers shall be
compensated by such new customers.
D) SETTING OF A SMALL FORGING UNIT
The company has installed a small forging unit (A Backward integration
Initiation) for captive consumption. Though it faced certain startup
problems but it is successfully operating & commercial production of a
few components have started in-house, which ensures not only
uninterrupted supply of Raw Material but ensures cost savings also. The
company expects to achieve the maximum capacity utilization shortly
with a significant cost saving in Raw material consumption.
E) IMPROVEMENT IN QUALITY SYSTEM & MANAGERIAL SYSTEMS
a) The vigorous efforts put i n by management have yielded good results
in lean manufacturing programme and it has benefited the company in a
big way.
b) The Company contemplates to implement SPC & SQC techniques to be
implemented in all critical process.
c) As planned last year, RACL has started supplier development
programme under project name as "UDAAN" for which an external faculty
has been organized. The entire programme is co- ordinated by quality
and purchasing team to ensure 100% defect free supplies from Job work
suppliers at right time. Initially 8 suppliers have been included in
this programme. It is targeted that programme shall bring RACL
suppliers in line with global requirements of RACL customers.
F) NEW INITIATIVES FOR COST REDUCTIONS
During the year under review, the company hired the professional
services for improving the profitability and cost reduction by way of
practical training on Theory of constraints. The training imparted to
the Sr. Executives of the company has brought a sea-change in the
performance of the Sr. Managerial Team, which has been also percolated
to the lower streams. We hope the result of this activity shall be
visible in the Current Year.
MANUFACTURING EXCELLENCE & DEMING PRIZE JOURNEY
The new Plant & Machinery installed during the last 2 years have made a
remarkable change in the quality of goods produced, which can match any
international levels quality at local prices. The improved quality
system with stringent Quality audit norms shall prove to be a milestone
assisting us to achieve our goal of winning the Deming Prize in the
near future.
DIVIDEND
Considering the fund requirements for our future plans for up-gradation
of machinery / technology up-gradation, the Board of Directors
considered it appropriate not to declare any dividend for the current
year.
FIXED DEPOSITS
The Company has not accepted any fixed deposits from the public during
the financial year ending 31st March, 2013.
LISTING FEES
The annual listing fee for the year under review has been paid to
Bombay Stock Exchange Ltd., Mumbai, where your company''s shares are
listed.
The Financial Results of the company can be accessed at the company''s
website http://www.raunaqauto.com
CORPORATE GOVERNANCE
As required under Clause 49 of the Listing Agreement with the Stock
Exchange, a Report on Corporate Governance is provided elsewhere in
this Annual Report along with the Auditor''s Certificate on the
compliance thereof.
DIRECTORS
In accordance with the provisions of The Companies Act, 1956 and
Memorandum and Article of Association of the company Mr.D.R. Arya,
Director of the company retires by rotation and being eligible offers
themselves for reappointment.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956 with respect
to Directors'' Responsibility statement it is hereby confirmed
i) that in the preparation of the Annual Accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
ii) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the company for that period;
iii) that the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
iv) That the directors have prepared the annual accounts on a going
concern basis.
DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS
The Company believes that employees are its real strength and their
contribution remains main force towards its growth and development.
During the year under review, the relationship between the Workers &
Management has been very cordial. The Management has been taking
effective steps to raise the morale of work force by introduction of
Kaizen Scheme, Incentives for Production, Best worker & most
disciplined employees. The company has introduced direct interaction of
workforce with the very senior management on frequent intervals which
has further boosted morale of the workers.
The Board of Directors recognize and place on record the concerted
efforts made by the Company''s Executives, Officers, Staff and Workers
at all levels.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to conservation of energy, technology
absorption, foreign exchange earnings and outgo as required under
Section 217(1) (e) of the Companies Act, 1956 read with the Companies
(Disclosure of particulars in the report of Board of Directors) Rules,
1988 is enclosed at Annexure "A" and forms part of this report.
AUDITORS AND AUDIT REPORT
The Company has obtained the requisite certificate from M/s.A.Sachdev &
Co., U/s 224(1 B) of the Companies Act, 1956 according their consent to
act as Statutory Auditors of the Company if appointed as per provisions
contained under Companies Act, 1956. The Director''s reply to Auditors
Report is stated elsewhere in the report. (Please see notes to
accounts)
M/s .A .Sachdev & Co., Chartered Accountants, New Delhi Auditors of the
company retire at the forthcoming Annual General Meeting and being
eligible offer themselves for reappointment.
AUDITORS'' CERTIFICATE
The Auditors have certified the Company''s compliance of the
requirements of Corporate Governance in terms of Clause 49 of the
Listing Agreement and the same is annexed to the Report on Corporate
Governance.
COST AUDIT
The appintment of M/s Jaspreet Singh & Co. as Cost Auditors for
Auditing the Cost Accounting Records of the Company for the year ended
31st March, 2013 has been dully approved by the Central Government.
RECONCILIATION OF SHARE CAPITAL AUDIT
As per the directives of the Securities and Exchange Board of India
(SEBI), M/s.K.K.Malhotra & Company, Company Secretaries, New Delhi,
undertakes a
Reconciliation of Share Capital Audit on quarterly basis. The audit is
aimed at reconciliation of total shares held in CDSL, NSDL and in
physical form with the admitted, issued and listed capital of the
company.
The Reconciliation of Share Capital Audit Reports as furnished by the
Auditor on quarterly basis was forwarded to the Bombay Stock Exchange,
where the original shares of the Company are listed.
ACKNOWLEDGEMENTS
Your Directors wish to place their appreciation of the continued
support, assistance and co-operation extended to the Company by the
Company''s Bankers, The Pradeshiya Industrial & Investment Corporation
of U.P. Ltd (PICUP), the State and Central Government and other
Government Agencies.
Your Directors also wish to place on record their appreciation of the
confidence reposed by its valued Customers, Suppliers and Esteemed
Shareholders, without whose continuing support the achievements of the
company would not have been possible.
For and on behalf of Board
for RAUNAQ AUTOMOTIVE COMPONENTS LIMITED
Place: New Delhi (GURSHARAN SINGH)
Date: 29th July, 2013 Chairman and Managing Director
Mar 31, 2012
The Directors present 29th Annual Report and Audited Statement of
Accounts of your Company for the Financial year ended 31st March, 2012.
FINANCIAL RESULTS : (Rs.in Lacs)
Particulars 2011-2012 2010-2011
Sales and Other Income 10897 9125
Operational Expenses 9700 8104
Depreciation 305 283
Financial Charges 486 344
Gross Profit/(Loss) 406 394
Provision for Taxes/ Def.Tax
Liab/including earlier years -134 -134
Net Profit 272 260
Profit b/f from last year 817 558
Profit carried to Balance Sheet 1089 817
PERFORMANCE OF THE COMPANY
In the Financial Year 2011 -2012, the company achieved an Income of
Rs.10897 Lacs as compared to Rs.9125 Lacs in 2010-11 thus achieving a
growth of 19%. The company achieved an operating profit of Rs.406 Lacs
(PBT) as compared to Rs.394 Lacs (PBT) thus registering a marginal
growth of 3% as compared to last year. The company has made a provision
of Rs. 134 lacs on account of Income Tax / Deferred Tax Liabilities.
The company has MAT credit of Rs. 137 Lacs which shall be utilized/
adjusted for payment of Income Tax in future. Company has a Reserve &
Surplus of Rs. 1214.68 lacs as compared to Rs.880 Lacs last year.
The demand from our existing Customers has increased significantly and
the company is fully geared up to meet the additional demand of OEM and
Export Customers.
During the year under review, the company had been successful in
capturing the business from some of the world renowned automotive
manufacturers and its further impact shall be visible in the
performance of the current year.
During the Financial Year under review, the profit margins of the
company have been adversely bit due to severe inflationary pressure.
However, a part of the same has been passed over to customers.
EXPORTS
The company has successfully broadened the export horizons during the
year under review. Many prestigious MNCs have been included in our list
of customers. The company is not only catering to their existing
demand, but has also geared itself for their global requirement. In
2011 - 12, the company has improved its export sales significantly. It
has been exporting goods to every part of globe, may be it is Asian
countries, European Countries or USA. Our exports are very well
accepted and are being appreciated for their good quality and
competitive price.
During the year under review, the company achieved an export turnover
of Rs. 1893 Lacs as against Rs. 1327 Lacs in 2010-11. Thus, achieving a
growth of 43%. The Company has already tapped prestigious business from
most reputed global -brands. Our export customers are fully satisfied
with the quality, timely delivery & cost competitiveness. In the
current year we have targeted an overall export sales of Rs.3000 lacs.
FUTURE OUTLOOK
A YEAR OF DIVERSIFIED GROWTH
A) THRUST ON BEST CORPORATE HUMAN RESOURCES PRACTICES
Company has taken sufficient steps to impart practical training to its
work force at all levels. A separate cell in Personal department has
already been created for imparting such training in the plant itself.
In order to encourage the senior staff, they are being deputed to
attend Conferences, Seminars, Workshops at home and are even being sent
to abroad to upgrade their skills to global levels, so that they are
satisfied & bring in technology & skills to RACL for mutual benefits.
B) INFRASTRUCTURAL & TECHNOLOGY UP GRADATION:
The company is consistently making investment in bringing in State of
the Art Technology in the field of Gear Cutting, Heat Treatment & Gear
Finishing processes. A consistent thrust on technology up- gradation is
being maintained to ensure technology level in line with global
customers demand.
C) TAPPING NEW BUSINESS
The company has been exploring various avenues for development of new
customers in Domestic and Export market by participating in Exhibition
/ National Auto Expo show / states sellers/buyers meets and other
programmes organized by ACMA or other related agencies. With our new
installed technology, now we have already bagged orders from world
class OEMs for sports Motor Cycle segment.
During the previous years RACL has explored business opportunities with
various new customers. Some of these are at various stages of
development and for some of the customers commercial production has
started & we are hopeful that for some of the customers commencing
commercial production in the current year itself.
Considering the existing business scenario the company has started
exploring business opportunities with some new OEMs & we are hopeful
that slow down witnessed (if any) by the existing customers shall be
compensated by such new customers.
D) SETTING OF A SMALL FORGING UNIT (TO REDUCE RAW MATERIAL COST):
The company is already facing pressures on timely availability of
forgings at competitive rates, the company has planned to install a
small forging unit at the existing location. The project has already
been tied up financially with Ratnakar Bank. The building is under
construction and the requisite plant & machineries have already been
ordered & under the process of procurement & we hope that it shall
start commercial production for captive consumption in the current year
itself.
E) IMPROVEMENT IN QUALITY SYSTEM & MANAGERIAL SYSTEMS
a) The vigorous efforts put in by management of yielded good results in
lean manufactory programme and it has benefited the company in a big
way.
b) The Company contemplates to implement SPO & SQC techniques to be
implemented in all critical process.
c) Certificate of ISO 18001 & OHSAS Standards has already been
obtained.
d) As planned last year, RACL has started supplier development
programme under project name as "UDAAN" for which an external faculty
has been organized. The entire programme is co- ordinated by quality
and purchasing team to ensure 100% defect free supplies from Job work
suppliers at right time. Initially 8 suppliers have been included in
this programme. It is targeted that programme shall bring RACL
suppliers in line with global requirements of RACL customers.
F) NEW INITIATIVES FOR COST REDUCTIONS
During the year under review, the company hired the professional
services for improving the profitability and cost reduction by way of
practical training on Theory of constraints. The training imparted to
the Sr. Executives of the company has brought a sea-change in the
performance of the Sr. Managerial Tearn, which has been also percolated
to the lower streams. We hope the result of this training shall be
visible in the Current Year.
MANUFACTURING EXCELLENCE & DEMING PRIZE JOURNEY
The new Plant & Machinery installed during the last 2 years have made a
remarkable change in the quality of goods produced, which can match any
international levels quality at local prices. The improved quality
system with stringent Quality audit norms shall prove to be a milestone
assisting us to achieve our goal of winning the Deming Prize in the
near future.
DIVIDEND
Considering the fund requirements for our future plans for up-gradation
of machinery / technology up-gradation, the Board of Directors
considered it appropriate not to declare any dividend for the current
year.
FIXED DEPOSITS
The Company has not accepted any fixed deposits from the public during
the financial year ending 31st March, 2012.
LISTING FEES
The annual listing fee for the year under review has been paid to
Bombay Stock Exchange Ltd., Mumbai, where your company's shares are
listed.
The Financial Results of the company can be accessed at "the
company's website http://www.raunaqauto.com
CORPORATE GOVERNANCE
As required under Clause 49 of the Listing Agreement with the Stock
Exchang a Report on Corporate Governance is provided elsewhere in this
Annual Report along with the Auditor's Certificate on the compliance
thereof.
DIRECTORS
During the year under review, PICUP has nominated Mr.Devender Singh and
Mr.Ashok Mishra as Directors.
In accordance with the provisions of The Companies Act, 1956 and
Memorandum and Article of Association of the company Mr.Anil Sharma,
Director of the company retires by rotation and being eligible offers
themselves for reappointment.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956 with respect
to Directors' Responsibility statement it is hereby confirmed
i) that in the preparation of the Annual Accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
ii) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the company for that period;
iii) that the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud, and other irregularities;
iv) that the directors have prepared the annual accounts on a going
concern basis.
DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS
The Company believes that employees are its real strength and their
contribution remains main force towards its growth and development.
During the year under review, the relationship between the Workers &
Management have been very co-ordial. The Management has been taking
effective steps to raise the morale of workforce by introduction of
Kaizen Scheme, Incentives for Production, Best worker & Most
disciplined employees. The company has introduced direct interaction of
workforce with the very senior management on frequent intervals which
has further boosted morale of the workers.
The Board of Directors recognize and place on record the concerted
efforts made by the Company's Executives, Officers, Staff and Workers
at all levels.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to conservation of energy, technology
absorption, foreign exchange earnings and outgo as required under
Section 217(1) (e) of the Companies Act, 1956 read with the Companies
(Disclosure of particulars in the report of Board of Directors) Rules,
1988 is enclosed at Annexure "A" and forms part of this report.
AUDITORS AND AUDIT REPORT
The Company has obtained the requisite certificate from M/s. A.Sachdev
& Co., U/s 224( 1B) of the Companies Act, 1956 according their consent
to act as Statutory Auditors of the Company if appointed as per
provisions contained under Companies Act, 1956. The Director's reply to
Auditors Report is stated elsewhere in the report, (please see notes to
accounts)
M/s .A .Sachdev & Co., Chartered Accountants, New Delhi Auditors of the
company retire at the forthcoming Annual General Meeting and being
eligible offer themselves for reappointment.
AUDITORS' CERTIFICATE
The Auditors have certified the Company's compliance of the
requirements of Corporate Governance in terms of Clause 49 of the
Listing Agreement and the same is annexed to the Report on Corporate
Governance.
SECRETARIAL AUDIT
As per the directives of the Securities and Exchange Board of India
(SEBI), M/s.K.K.Malhotra & Company,-Company Secretaries, New Delhi,
undertakes Secretarial Audit on quarterly basis. The audit is aimed at
reconciliation of total shares held in CDSL, NSDL and in physical form
with the admitted, issued and listed capital of the company.
The Secretarial Audit Reports as furnished by the Secretarial Auditors
were forwarded on quarterly basis to the Stock Exchange.
ACKNOWLEDGEMENTS
Your Directors wish to place their appreciation of the continued
support, assistance and co-operation extended to the Company by the
Company's Bankers, The Pradeshiya Industrial & Investment Corporation
of U.P. Ltd (PICUP), the State and Central Government and other
Government Agencies.
Your Directors also wish to place on record their appreciation of the
confidence reposed by its valued Customers, Suppliers and Esteemed
Shareholders, without whose continuing support the achievements of the
company would not have been possible.
For and on behalf of Board
for RAUNAQ AUTOMOTIVE COMPONENTS LIMITED
Sd/-
Place: New Delhi (GURSHARAN SINGH)
Date: 30th July, 2012 Chairman and Managing
Director
Mar 31, 2010
The Directors present 27th Annual Report and Audited Statement of
Accounts of your Company for the Financial year ended 31st March, 2010.
FINANCIAL RESULTS :
(Rs.in Lacs
Particuars 2009-2010 12008-2009
Sales and Other Income 7017 6558
Operational Expenses 6189 5924
Depreciation 267 184
Financial Charges 241 202
Gross Profit 320 248
Provision for Taxes/ Def.Tax
Liab/ including earlier years 71 40
Net Profit 249 208
Profit b/f from last year 309 101
Profit carried to Balance Sheet 558 309
MANAGEMENT DISCUSSION AND ANALYSIS
a) Industrial Scenario 2009-10
The impact of global economic slow down continued in current year also,
however, at the fag end of year, it witnessed some economic recovery,
which has given some relief to the world economy, but whether it will
continue for a long, is a matter of time. The extent of recovery had
been different depending upon various economic factors. The pressure of
economic recession is still being felt in some parts of the globe &
recently some European countries have been under the economic threat.
In order to bring these economics out of the recession the respective
Govt./Financial institutions are providing financial bailout package
but the said bailout package seems to be insufficient for sustainable
recovery process. It is expected that by the close of 2010-11, the
world economy may start recovering.
Though, Indian economy could not isolate itself totally from the global
recession, but due to its own inherent strength & skills, it came to
overcome the same, at a much faster pace as compared to world economy.
Indian Automotive Industry, having a huge demand potential for
automobiles, including automotive component manufacturing has regained
its lost strengths and started performing as it was originally
performing. Indian Industry learnt good lessons from this recession &
it found its strength by resorting to its principles of global quality
at low cost & timely delivery.
b) Opportunities and threats
Opportunities
The world wide recession proved blessings in disguise for Indian
Industries. The hopes of economists turned into realities as most of
the American/European Automobiles Giants have been looking towards
India as their destination for procurement of their domestic as well as
export requirements since only Indian component manufacturers could
provide them the desired quality products, at most competitive rates
because of their strong foundation of Engineering skills & low cost of
production as compared to their counter parts in other parts of the
Globe.
However, it is felt that Indian economy lacks certain basic
infrastructural facilities due to which the economic growth is not
moving at desired level. Indian economy shall be able to move even
faster, provided the Government looks into these infrastructural areas
with a pro-active approach and puts the requisite funds for a speedy
development of most essential areas.
Besides, the Industrial sector itself has to gear up fully to tap the
huge opportunity made available by such recession with a particular
thrust in the following areas:
1. Improvement in quality system & environment Management system.
2. Technology upgradation.
3. Exploring new business avenues in domestic as well as export
market.
4. Generating more skilled manpower.
5. Adoption of principles of corporate Governance at international
levels.
Threats
1. Continued volatility of Raw material prices
2. Free Trade/W.T.O.
3. Foreign Currency fluctuations
4. Increased competition from China, Taiwan & other Asian countries
c) Risks & Concerns
Risks
The growth of Automotive Component Industry is entirely dependent upon
the performance of Automotive Sector/infrastructure development. The
global recession has adversely affected the export market and recovery
may be slower than expected. The volatility in the market may further
deteriorate the sustainability of business viability.
Concerns
There are several major concerns which have not been looked into for
the last so many years and these are major impediments in the overall
growth of the company, such as
1. Poor infrastructure of highways, Ports
2. Good Quality & continued availability of electricity at cheaper
rates
3. Volatility in prices and availability of basic raw material
4. Multiple taxation system and other complicated administrative
procedure
5. Ability to pass an increasing cost to customers
d) Internal Control Systems and their adequacy
The Company has adequate internal control systems, which ensure proper
recording of transactions of its operations and also protection against
misuse or loss ofthe companys assets. Intemalauditofthecompany is
carried out at periodic intervals by an independent firm of Chartered
Accountants, to ensure that the companys internal control system are
adequately complied with and adhered to.
During the year under review, ERP System has improved the overall
efficiency of the company at every level. The Biometric system
installed by the company has significantly improved the working of HRD
Deptt. The Company is in the process of broadening & implementing the
scope & coverage of other areas of ERP functioning such as
manufacturing / PPC / machine loading / capacity utilization which will
help the company to improve its efficiency at all levels of operation.
e) Cautionary Note
Certain statements in the management discussion and analysis section
may be forward looking and are stated as required by applicable Laws &
Regulations. Many otherfactors may affect the actual results, which
would be different from what the Directors envisage in terms of the
future performance and outlook.
f) Performance of the company
The Company could not isolate itself from the effect of world
recession, however, efforts put up by the management in the previous
years came to our rescue. Had it not been so the results for the
Financial Year under review would have been different. The company
could not achieve the budgeted targets but it could record a growth of
11 % in turnover with a significant improvements in profits.
In the Financial Year 2009-10, the company achieved an Income of
Rs.7017 Lacs as compared to Rs.6558 lacs in 2008-09 thus achieving a
growth of 11%. The company could achieve an operating profits of Rs.320
Lacs (PBT) as compared to Rs.248 Lacs (PBT) thus registering a growth
of 30% as compared to last year. The company has made a provision of
Rs.71 Lacs on account of Income Tax / Deferred Tax Liabilities.
The company has a MAT credit of Rs.48 Lacs which shall be utilized /
adjusted for payment of Income Tax in future. Company has a surplus of
Rs.558 Lacs in Profit & Loss Account.
During the year under review, the company had been successful in
capturing the business from some of the world reknowned MNC and, its
impact shall be visible in the performance of the current year.
The Company is developing more & more new components for many other OEM
manufacture as per their specifications and requirement and we are
quite confident that in the times to come we shall be able to cater the
demands of our New Customers.
The demand from our existing Customers has increased significantly and
the company is fully geared up to meet the additional demand of OEM and
Export Customers.
During the Financial Year under review, the company through its cost
reduction schemes & various other VA/VE methods made a significant
improvement in profits as compared to sales.
After completion of two years journey of Cluster IV of ACT (ACMA Centre
of Technology) the company has taken up the sustainence programme to
further improve the performance of the company and we are hopeful that
it will assist us in achieving better productivity, quality goods at
competitive price thus enhancing the overall profitability of the
company.
EXPORTS
The company has been successful in its efforts to broaden the export
horizons during the year under review. Many prestigious MNC has been
included in our list of customers. The company is not only catering to
their existing demand, but has also geared itself for their global
requirement. In 2009-10, the company has improved its export sales
significantly. It has been exporting goods to every part of globe, may
be it is Asian countries, European Countries or USA. Our export are
very well accepted and are being appreciated for their good quality and
competitive price.
During the year under review, the company achieved an export turnover
of Rs.1117 Lacs as against Rs.755 Lacs in 2008-09. Thus, achieving a
growth of 48 %. Our export customers are fully satisfied with the
quality, timely delivery & cost competitiveness. In the current year we
have targeted an overall export sales of Rs. 1500 lacs.
FUTURE OUTLOOK
Indian Economy is still on the recovery path and RACL has been no
exception. Although, the company made a modest recovery / growth to the
extent of 11 % in sales
. but the profitability and the achievement in export front
has given a boost to the company. During the year under review, the
company has successfully commissioned world class technology and
production facilities.
It has constructed a new Technology Block & has installed latest
machines which shall be further supplemented by the similar type of
facilities and with these facilities, we shall be considered one of the
leading Gear Manufacturer in the Northern Region.
During Financial Year 2010-11, the company proposes to install/upgrade
its technological capabilities / infrastructure facilities by way of
putting up additional facilities of æ
a) Gear Hobbing
b) Internal broaching
c) CNC Internal & Cylindrical Grinding with inprocess gauging system
The company has developed a very good product quality & has emerged as
one of the quality producer of gears not only in India but its products
are purchased by world reknowned MNC all over the globe. The tough
competition faced by the company in the previous years has showed the
path of organic growth and we look forward for a bright future as
outlook is positive and the company has an excellent order book
position for the coming years.
DIVIDEND
Although, the company has accumulated profits of Rs.558 lacs but
considering the existing fund requirements for our future plans for
upgradation of machinery / technology upgradation, the Board of
Directors considered it appropriate not to declare any dividend for the
current year.
FORFEITURE OF WARRANT APPLICATION MONEY
During the Financial Year 2008-09, the company allotted 19 lacs
convertible warrants of Rs.10/- each at a premium of Rs.9/- per warrant
aggregating Rs.361 lacs. The company received application money of
Rs.38 lacs on such 19 lacs warrants @ Rs.2/- per warrant (including a
premium of Re.1/- per warrant) The warrant holders did not pay the
allotment money on such warrants which was due on 31.3.2010. Due to non
payment of such allotment money, the Board of Directors at their
meeting held on 19th April, 2010 forfeited, the said amount of Rs.38
lacs on such convertible warrants.
FIXED DEPOSITS
The Company has not accepted any fixed deposits from the public during
the financial year ending 31st March, 2010.
LISTING FEES
The Financial Results of the company can be accessed at the companys
website www.raunaqauto.com.
The annual listing fee for the year under review has been paid to
Bombay Stock Exchange Ltd., Mumbai, where your companys shares are
listed.
CORPORATE GOVERNANCE
As required under Clause 49 of the Listing Agreement with the Stock
Exchange, a Report on Corporate Governance is provided elsewhere in
this Annual Report along with the Auditors Certificate on the
compliance thereof.
DIRECTORS
During the year under review, PICUP has nominated Mr.V.K.Seth in place
of Mr.Devender Singh as its Nominee Director. The Board of Directors
place on record the appreciation for the guidance & services rendered
by Mr.Devender Singh during his tenure as Director.
In accordance with the provisions of The Companies Act, 1956 and
Memorandum and Articles of Association of the company Mr.D.R.Arya,
Director of the company retire by rotation and being eligible offer
himself for reappointment.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956 with respect
to Directors Responsibility statement it is hereby confirmed:
i) that in the preparation of the Annual Accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
ii) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the company for that period;
iii) that the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
iv) that the directors have prepared the annual accounts on a going
concern basis.
DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS
The Company believes that employees are its real strength and their
contribution remains main force towards its growth and development.
During the year under review, the relationship between the Workers &
Management have been very co-ordial. The Management has been taking
effective steps to raise the morale of work force by introduction of
Kaizen Scheme, incentives for Production, Best worker & Most
disciplined employees. The company has introduced direct interaction of
workforce with the very senior management on frequent intervals which
has further boosted morale of the workers.
The Board of Directors recognize and place on record the concerted
efforts made by the Companys Executives, Officers, Staff and Workers
at all levels.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to conservation of energy, technology
absorption, foreign exchange earnings and outgo as required under
Section 217(1) (e) of the Companies Act, 1956 read with the Companies
(Disclosure of particulars in the report of Board of Directors) Rules,
1988 is enclosed at Annexure "A" and forms part of this report.
AUDITORS AND AUDIT REPORT
The Company has obtained the requisite certificate from M/s.A.Sachdev &
Co., U/s 224(1 B) of the Companies Act, 1956 according their consent to
act as Statutory Auditors of the Company if appointed as per provisions
contained under Companies Act, 1956. The Directors reply to Auditors
Report is stated elsewhere in the report. (please see notes to
accounts)
M/s .A .Sachdev & Co., Chartered Accountants, New Delhi Auditors of the
company retire at the forthcoming Annual General Meeting and being
eligible offer themselves for reappointment.
AUDITORS CERTIFICATE
The Auditors have certified the Companys compliance of the
requirements of Corporate Governance in terms of Clause 49 of the
Listing Agreement and the same is annexed to the Report on Corporate
Governance.
SECRETARIAL AUDIT
As per the directives of the Securities and Exchange Board of India
(SEBI), M/s.K.K.Malhotra & Company, Company Secretaries, New Delhi,
undertakes Secretarial Audit on quarterly basis. The audit is aimed at
reconciliation of total shares held in CDSL, NSDL and in physical form
with the admitted, issued and listed capital of the company.
The Secretarial Audit Reports as furnished by the Secretarial Auditors
were forwarded on quarterly basis to the Stock Exchange.
ACKNOWLEDGEMENTS
Your Directors wish to place their appreciation of the continued
support, assistance and co-operation extended to the Company by the
Companys Bankers, The Pradeshiya Industrial & Investment Corporation
of U.P. Ltd (PICUP), the State and Central Government and other
Government Agencies.
Your Directors also wish to place on record their appreciation of the
confidence reposed by its valued Customers, Suppliers and Esteemed
Shareholders, without whose continuing support the achievements of the
comrjanv would not have been possible.
For and on behalf of Board
for RAUNAQ AUTOMOTIVE COMPONENTS LIMITED
Place: New Delhi Sd/-
(GURSHARAN SINGH)
Date: 30th July, 2010 Chairman and Managing
Director