Mar 31, 2023
Your Directors are pleased to present the 43rd (Forty Third) Director''s Report on the business and operations of the Company together with the Audited Financial Statements for the financial year ended as on 31st March 2023.
1. STATE OF AFFAIRS OF THE COMPANY:
a) |
FINANCIAL RESULTS: |
(? in Lakh) |
|||
Particulars |
Standalone |
Consolidated |
|||
2022-23 |
2021-22 |
2022-23 |
2021-22 |
||
Revenue from operations |
1,21,062.49 |
70,493.13 |
1,21,198.25 |
70,517.28 |
|
Other income |
1,104.46 |
839.24 |
945.80 |
798.43 |
|
Total income |
1,22,166.95 |
71,332.37 |
1,22,144.05 |
71,315.71 |
|
Expenses |
1,06,448.57 |
67,427.37 |
1,05,639.52 |
67,476.40 |
|
Profit / (Loss) before exceptional items and tax |
15,718.38 |
3,905.00 |
16,504.53 |
3,839.31 |
|
Exceptional items |
- |
(928.02) |
- |
(928.02) |
|
Profit / (Loss) before tax |
15,718.38 |
2,976.98 |
16,504.53 |
2,911.29 |
|
Tax expense |
3,824.19 |
676.46 |
3,995.54 |
674.53 |
|
Profit / (Loss) after tax |
11,894.19 |
2,300.52 |
12,508.99 |
2,236.76 |
|
Other comprehensive income |
(29.23) |
(47.37) |
(28.65) |
(47.37) |
|
Total comprehensive income for the period |
11,864.96 |
2,253.15 |
12,480.34 |
2,189.39 |
b) PERFORMANCE REVIEW:
Standalone:
The total income of the Company for the financial year 2022-23 stood at ? 1,22,166.95 Lakh as against last years'' ? 71,332.37 Lakh. Profit before tax for the year was at ? 15,718.38 Lakh as against last year''s ? 2,976.98 Lakh. The total comprehensive income was ? 11,864.96 Lakh as against ? 2,253.15 Lakh of the previous year.
As on 31st March 2023, the Reserves and Surplus of the Company were at ? 41,488.99 Lakh.
Consolidated:
The total income of the Company for the financial year 2022-23 stood at ? 1,22,144.05 Lakh as against last years'' ? 71,315.71 Lakh. Profit before tax for the year was at ? 16,504.53 Lakh as against last years'' ? 2,911.29 Lakh. The total comprehensive income was ?12,480.34 Lakh as against ? 2,189.39 Lakh of the previous year.
Highlights on the performance of wholly owned subsidiaries and their contribution to the overall performance of the Company:
a) Safari Lifestyles Limited:
The total income of the Safari Lifestyles Limited for the financial year 2022-23 stood at ? 227.71 Lakh as against last year''s ? 95.21 Lakh. Profit before tax was at ? 6.94 Lakh as against last year''s Loss of ? (30.23) Lakh. The total comprehensive income was ? 9.16 Lakh as against ? (34.28) Lakh of the previous year.
b) Safari Manufacturing Limited:
The total income of the Safari Manufacturing Limited for the financial year 2022-23 stood at ? 11,663.62 Lakh as against last year''s ? 1.20 Lakh. Profit before tax was at ? 929.67 Lakh as against last year''s Loss of ? (48.59) Lakh. The total comprehensive income was ? 751.88 Lakh as against ? (45.90) Lakh of the previous year.
The Board of Directors are pleased to recommend for your consideration a final dividend of ? 2/- per equity share of ? 2/- each i.e. 100% on the paid up value for the financial year 2022-23. (in previous year, the Company declared and paid dividend of ? 0.80 per equity share of ? 2/- each i.e. 40% on the paid up value ).
During the year under review, the Board of Director''s in its Meeting held on 8th February 2023, declared and paid interim dividend at the rate of ? 1.50 (75%) per equity share of ? 2/- each to those Members whose names appear on the Register of Members of the Company on the record date i.e. 17th February 2023.
It is not proposed to transfer any amount to reserves out of the profits earned during FY 2022-23.
During the year under review, the Company''s paid-up share capital increased from ? 4,47,79,000/- (Rupees Four Crore Forty Seven Lakh Seventy Nine Thousand Only) to ? 4,74,22,580/- (Rupees Four Crore Seventy Four Lakh Twenty Two Thousand Five Hundred and Eighty Only) on account of conversion of 13,15,790 Compulsorily Convertible Debentures to 13,15,790 Equity Shares and issuance of 6,000 Equity Shares through ESOP Allotments.
Reclassification of Authorised Share Capital:
The Board of Directors in their meeting held on 16th May 2023 approved re-classification of Authorised Share Capital of the Company subject to approval of the Members of the Company. The Unclassified Share Capital component of the Authorised Share Capital is sought to be reclassified as Equity Share Capital i.e. ? 10,00,00,000 (Rupees Ten Crore only) divided into 5,00,00,000 (Five Crore) equity shares of : 2/- (Rupees Two only) each.
Equity shares with differential rights:
The Company has not issued any equity shares with differential rights and hence, no information as per provisions of Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.
Sweat equity shares:
The Company has not issued any sweat equity shares during the year under review and hence, no information as per provisions of Rule 8(13) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.
5. TRANSFER TO INVESTORSâ EDUCATION AND PROTECTION FUND:
In accordance with the applicable provisions of Section 124 and 125 of the Companies Act, 2013 (the Act) and Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 and amendments thereof, the relevant dividend amounts which remain unpaid and unclaimed for a period of seven years have been transferred to the Investor Education and Protection Fund from time to time. Further, Equity Shares in respect of which dividend has not been encashed by the Members during the last seven years, from the date of transfer to the unpaid dividend account of the Company, has been transferred to the designated Suspense Account as prescribed by the IEPF Authority from time to time.
Details of the unpaid and unclaimed dividend amount lying with the Company as on 31st March 2023 have been uploaded on the Company''s website at https://safaribags.com/pages/investor-relations#unclaimed unpaid dividends.
6. DIRECTORS:a) RETIREMENT BY ROTATION:
In accordance with the provisions of Section 152 of the Act and the Company''s Articles of Association, Mr. Piyush Goenka, Director (DIN: 02117859) of the Company is liable to retire by rotation at the ensuing AGM and being eligible, has offered himself for re-appointment. Mr. Piyush Goenka has provided his consent for re-appointment.
The aforesaid re-appointment with a brief profile and other related information of Mr. Piyush Goenka forms part of the Notice convening the ensuing AGM.
Dr. Shailesh Mehta, Non-Executive and Independent Director of the Company was re-appointed on 28th July 2019 for a period of 3 years. He ceased to be the director of the Company since his tenure as Non-Executive and Independent Director expired on 27th July 2022 and pursuant to Section 149 of the Act, he was not eligible for re-appointment. The Board placed on record it''s appreciation for the valuable contribution made by him.
During the year under review, pursuant to Section 134(3)(d) of the Act, declarations were received from all the Independent Directors confirming they fulfil the criteria of independence specified under Section 149(6) of the Act and Regulation 16(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Terms and conditions of appointment of Independent Directors are placed on the website of the Company at https://files.safaribags.com/pub/media/Appointment Letter/Safari-Industries-India-Ltd-Appointment-lettter-for-Independent-Directors.pdf.
In accordance with the provisions of Section 203 of the Act, the following are the Key Managerial Personnel of the Company:
Sr. No. |
Name |
Designation |
1. |
Mr. Sudhir Jatia |
Managing Director |
2. |
Mr. Vineet Poddar |
Chief Financial Officer |
3. |
Mr. Rameez Shaikh |
Company Secretary |
d) NOMINATION AND REMUNERATION POLICY:
The Company has adopted a Nomination and Remuneration Policy on criteria for determining Directors'' appointment and remuneration including qualifications, positive attributes, independence of a director and other matters provided under Section 178 (3) of the Act. The remuneration paid to the Directors is as per the terms laid out in the Nomination and Remuneration Policy of the Company.
The said Policy lays down the guidelines to be followed in relation to:
A. Appointment of the directors and key managerial personnel of the Company;
B. Fixation of the remuneration of the directors, key managerial personnel and other employees of the Company; and
C. Evaluation of performance of directors, key managerial personnel and other employees of the Company. The objective of this Policy is to inter-alia:
A. Attract, recruit and retain good and exceptional talent;
B. List down the criteria for determining the qualifications, positive attributes and independence of the directors of the Company;
C. Ensure that the remuneration of the directors, key managerial personnel and other employees is performance driven, motivates them, recognises their merits and achievements and promotes excellence in their performance;
D. Motivate such personnel to align their individual interests with the interests of the Company and further the interests of its stakeholders;
E. Ensure a transparent nomination process for directors with the diversity of thought, experience, knowledge, perspective and gender in the Board; and
F. Fulfill the Company''s objectives and goals, including in relation to good corporate governance, transparency and sustained long-term value creation for its stakeholders.
The Nomination and Remuneration Policy of the Company can be viewed on website of the Company at https://files.safaribags.com/pub/media/Polices/Nomination and Remuneration Policy.pdf.
e) MANNER OF FORMAL EVALUATION OF BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS:
During the year under review, performance evaluation of the Board as a whole, its Committees and Individual Directors have been carried out as per the provisions of the Act. All Independent Directors of the Company at their meeting held on 8th February 2023 have evaluated the performance of the Board as a whole, Committees of Board, the Chairman of the Company and the Non-Independent Directors as per the criteria adopted by the Nomination, Remuneration and Compensation Committee and the Board.
The performance evaluation of the Board was based on various parameters such as qualification of Board Members, their diversity of experience and background, whether the Members of the Board met all applicable independence requirements, sufficient number of Board meetings and Committee meetings etc. The performance of the individual Directors was evaluated on parameters such as qualifications, experience, independence, participation in Board Meetings and Committee Meetings, etc.
The evaluation of the Independent Directors was carried out by the entire Board excluding the Independent Director being evaluated.
The Directors were satisfied with the evaluation results, which reflected the overall engagement of the Board and its Committees with the Company.
f) NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS DURING THE YEAR:
During the year under review, the Board of Directors have held four (4) Board Meetings. The details of the Board Meetings and the attendance of the Directors are provided in the Corporate Governance Report which is annexed as Annexure A.
g) COMPOSITION OF AUDIT COMMITTEE:
The Audit Committee of the Board of Directors of the Company comprises of the following members as on 31st March 2023:
Sr. No. |
Name of Member |
Position |
Category |
1. |
Mr. Dalip Sehgal |
Chairman |
Non-Executive Independent |
2. |
Mrs. Vijaya Sampath |
Member |
Non-Executive Independent |
3. |
Mr. Gaurav Sharma |
Member |
Non-Executive Non-Independent |
4 |
Mr. Punkajj Lath |
Member |
Non-Executive Independent |
Recommendations of the Audit Committee not accepted by the Board of Directors of the Company, along with the reasons thereof: None
7. CORPORATE GOVERNANCE REPORT:
As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Corporate Governance Report together with a Certificate from M/s. Ninad Awachat & Associates, Practicing Company Secretaries confirming compliance thereto is enclosed with the Corporate Governance Report as Annexure A.
In compliance with the requirements of Regulation 17 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, a certificate from the Managing Director and Chief Financial Officer of the Company was placed before the Board. The same is enclosed as a part of the Corporate Governance Report.
All the Board Members and Senior Management Personnel of the Company had affirmed compliance with the Code of Conduct for Board and Senior Management Personnel. A declaration to this effect duly signed by the Managing Director is enclosed as a part of the Corporate Governance Report.
The information pursuant to Section 197(12) of the Act and Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed to this Report as Annexure B.
The statement containing particulars of remuneration of employees as required under Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are given in Annexure C of this Report.
In terms of Section 136(1) of the Act, the Annual Report is being sent to the Members excluding the aforesaid Annexure C. This Annexure will be available on the website of the Company 21 days prior to the date of the AGM. The information is also available for inspection by the Members at the Registered Office of the Company between 11:00 am (IST) to 1:00 pm (IST) on all working days except Saturdays, Sundays and Public Holidays up to the date of the AGM. Any Member desirous of obtaining a copy of the said Annexure may write to the Company Secretary at the Registered Office Address and/ or send an E-mail at [email protected].
9. SAFARI EMPLOYEE STOCK OPTION SCHEME 2016:
Presently, the Company has Employee Stock Option (ESOP) Scheme namely Safari Employee Stock Option Scheme 2016 ("the ESOP Scheme") which helps the Company to retain and attract the right talent. The Nomination, Remuneration and Compensation Committee monitors the Company''s ESOP scheme.
There are no changes in the ESOP Scheme and the ESOP Scheme is in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
The disclosures required under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 are available on the website of the Company at https: / / www.safaribags.com/investors-relations/annual-reports/
10. SAFARI EMPLOYEES STOCK APPRECIATION RIGHTS SCHEME 2022:
The Company has Safari Employees Stock Appreciation Rights Scheme, 2022 (''ESAR'' / ''the ESAR Scheme'') with an objective of rewarding the employees for association, dedication and contribution to the goals of the Company. The Company intends to use this ESAR Scheme to attract and retain key talents working with the Company by way of rewarding their performance and motivate them to contribute to the overall corporate growth and profitability. The ESAR Scheme covers eligible employees of the Company and its wholly owned subsidiaries.
During the year under review, there were no changes in the ESAR Scheme and the ESAR Scheme is in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Based on the approval of the Nomination, Remuneration and Compensation Committee and Board of Directors and subject to the approval of the Members, it is proposed to vary ESAR Scheme by increasing maximum number of equity shares that may be issued towards exercise of Employee Stock Appreciation Rights (''ESARs'') under the ESAR Scheme from 1,11,947 (One Lakh Eleven Thousand Nine Hundred Forty Seven) having face value of ? 2/- each to 3,00,000 (Three Lakh) having face value of ? 2/- each.
The disclosures required under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 are available on the website of the Company at https: / / www.safaribags.com/investors-relations/ annual-reports/
11. DIRECTORSâ RESPONSIBILITY STATEMENT PURSUANT TO SECTION 134 OF THE ACT:
The Directors hereby confirm:
a) that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
b) that they 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 of the Company for that period;
c) that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) that they have prepared the annual accounts on a going concern basis;
e) that they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
f) that they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
M/s. Walker Chandiok & Co LLP were appointed as Statutory Auditors of the Company for the period of five years commencing from the conclusion of 42nd AGM of the Company till the conclusion of 47th AGM of the Company.
The Auditor''s Report for the year under review does not contain any qualification, reservation or adverse remark.
Based on the recommendation of the Audit Committee of the Company, the Board of Directors of the Company has appointed M/s. Moore Singhi Advisors LLP as the Internal Auditors of the Company.
In accordance with the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. Ninad Awachat & Associates, Practicing Company Secretaries (Membership No. 26995 & CP No. 9668) to conduct Secretarial Audit for the financial year 2022-23.
The Report of the Secretarial Auditor is annexed hereto as Annexure D. The said Report contains no qualification, reservation or adverse remark except delay in re-constitution of Nomination, Remuneration and Compensation Committee as prescribed Regulation 19(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the quarter ended 31st March 2022, which was complied w.e.f. 1st March 2022.
The Accounting Treatment is in line with the applicable Indian Accounting Standards (IND-AS) recommended by the Institute of Chartered Accountants of India and prescribed by the Central Government, as may be amended from time to time.
As on the financial year ended 31st March, 2023, the Company has following 2 (two) wholly owned subsidiaries:
a) Safari Lifestyles Limited; and
b) Safari Manufacturing Limited.
Further, during the year under review, no companies have become/ ceased to be joint venture or associate companies of the Company.
During the year under review, Safari Manufacturing Limited, the wholly owned subsidiary of the Company has successfully commenced its commercial production/ manufacturing of luggage on 17th June 2022 at its newly set up factory situated at Halol, Gujarat.
The Consolidated Financial Statements of the Company include the financial statements of the aforesaid wholly owned subsidiaries of the Company for the financial year 2022-23. The Financial Statements of wholly owned subsidiaries are also placed on the website of the Company. Any Member desirous of obtaining a copy of the said Financial Statements may send an e-mail to the Company Secretary at [email protected] for the same.
The Report on the performance and financial position of wholly owned subsidiaries in Form AOC-1 pursuant to first proviso to Sub-section (3) of Section 129 of the Act and Rule 5 of Companies (Accounts) Rules, 2014 is annexed to this Report as Annexure E.
17. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:
The Board of Directors has adopted a Policy on Internal Financial Controls to ensure orderly and efficient conduct of the business of the Company including the Company''s policies. The said Policy is adequate and is operating effectively.
The Company has adopted the Risk Management Policy, the brief of the same is disclosed in the Corporate Governance Report annexed as Annexure A to this report.
19. PARTICULARS OF CONTRACTS WITH RELATED PARTIES:
All the related party transactions entered by the Company during the year under review were in the ordinary course of business, on arm''s length basis and in accordance with the provisions of the Act read with the Rules issued thereunder and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. There were no material related party transactions entered during the year under review.
Accordingly, no transactions are being reported in Form AOC-2 in terms of Section 134 of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014.
20. VIGIL MECHANISM /WHISTLE BLOWERS POLICY:
The Company believes in conducting its affairs in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity and ethical behaviour. In order to achieve the same, the Company has formulated a Whistle Blowers Policy to provide a secure environment and to encourage all employees, Directors, Members, customers, vendors and/ or third party intermediaries of the Company to report unethical, unlawful or improper practices, acts or activities in the Company and to prohibit managerial personnel from taking any adverse action against those employees/ persons who report such practices in good faith.
The Policy has been uploaded on the website of the Company at https: / / files.safaribags.com/pub/media/Polices/ Whistle Blowers Policy.pdf
21. PARTICULARS OF LOAN, GUARANTEE AND INVESTMENTS UNDER SECTION 186 OF THE ACT:
Details of loans, guarantees and investments covered under Section 186 of the Act forms part of the notes to the Standalone Financial Statements.
The Annual Return for financial year 2022-23 has been uploaded on the website of the Company at https:/ / safaribags.com/pages/investor-relations#annual returns
23. COMPLIANCE WITH SECRETARIAL STANDARDS:
The Directors state that applicable Secretarial Standards, i.e. SS-1 and SS-2 relating to ''Meetings of the Board of Directors'' and ''General Meetings'' respectively have been duly followed by the Company.
24. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO:
Details on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo, etc. are annexed as Annexure F to this Report.
25. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management Discussion and Analysis Report for the year under review, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed as Annexure G to this Report.
26. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES:
The Company has adopted a CSR Policy in accordance with the provisions of Section 135 of the Act read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. The same is available on the website of the Company at https://files.safaribags.com/pub/media/CSR/Policy on corporate social responsibily.pdf
The composition of the CSR Committee is disclosed in the Corporate Governance Report which is annexed as Annexure A to this report. The report on CSR activities undertaken by the Company for the year under review is annexed to this Report as Annexure H.
27. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT:
Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Business Responsibility and Sustainability Report for the year under review is annexed as Annexure I to this Report.
28. INFORMATION UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
The information required as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 is provided in the Corporate Governance Report which is annexed as Annexure A to this Report.
The Policy for Prevention of Sexual Harassment of Women at Workplace has been uploaded on the website of the Company at https://files.safaribags.com/pub/media/Polices/Policy for Prevention- of sexual harassment.pdf
29. DIVIDEND DISTRIBUTION POLICY:
In compliance with Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Dividend Distribution Policy formulated by the Company is available on the website of the Company at https://files.safaribags.com/pub/media/Polices/Dividend Distribution Policy.pdf
Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions/ events during the year under review:
a) Details relating to deposits covered under Chapter V of the Act.
b) Change in nature of Company''s business.
c) Details of significant and material orders passed by Regulators or Courts or Tribunals impacting the going concern status and the Company''s operations in future.
d) Material changes and commitments, affecting the financial position of the Company which have occurred between the end of the financial year and the date of Report.
e) No material fraud has been reported by the Auditors to the Audit Committee of the Board.
f) Maintenance of cost records as specified by the Central Government under Sub-section (1) of Section 148 of the Act is not applicable to the Company.
g) No application was made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016.
Your Directors wish to place on record their appreciation for the dedicated services of the employees of your Company at all levels. Further, the Directors would also like to express their gratitude for the continued support of all the stakeholders and last but not the least our valued Members, for all their support and trust reposed in the Company.
ON BEHALF OF THE BOARD OF DIRECTORS For SAFARI INDUSTRIES (INDIA) LIMITEDSUDHIR JATIA
Place: Mumbai Chairman & Managing Director
Date: 16th May 2023 DIN:00031969
Mar 31, 2022
Your Directors are pleased to present the 42nd(Forty Second) Directors'' Report on the business and operations of the Company together with the Audited Financial Statements for the financial year ended as on 31st March 2022.
1. STATE OF AFFAIRS OF THE COMPANY: a) FINANCIAL RESULTS: ('' in Lakh) |
|||||
Particulars |
Standalone |
Consolidated |
|||
2021-22 |
2020-21 |
2021-22 |
2020-21 |
||
Revenue from operations Other income |
70,544.09 839.24 |
32,797.55 332.57 |
70,568.24 798.43 |
32,797.55 333.29 |
|
Total income Expenses |
71.383.33 67.478.33 |
33,130.12 36,011.47 |
71,366.67 67,527.36 |
33,130.84 36,014.54 |
|
Profit / (Loss) before exceptional items and tax Exceptional items |
3,905.00 (928.02) |
(2,881.35) |
3,839.31 (928.02) |
(2,883.70) |
|
Profit / (Loss) before tax Tax expense |
2,976.98 676.46 |
(2,881.35) (795.74) |
2,911.29 674.53 |
(2,883.70) (794.01) |
|
Profit / (Loss) after tax Other comprehensive income |
2,300.52 (47.37) |
(2,085.61) (116.23) |
2,236.76 (47.37) |
(2,089.69) (116.23) |
|
Total comprehensive income for the period |
2,253.15 |
(2,201.84) |
2,189.39 |
(2,205.92) |
Standalone:
The total income of the Company for the financial year 2021-22 stood at '' 71,383.33 Lakh as against last years'' '' 33,130.12 Lakh. Profit before tax for the year was at '' 2,976.98 Lakh as against last year''s Loss before tax of '' 2,881.35 Lakh. The total comprehensive income was '' 2,253.15 Lakh as against '' (2,201.84) Lakh of the previous year.
As on 31st March 2022, the Reserves and Surplus of the Company were at '' 29,660.05 Lakh.
Consolidated:
The total income of the Company for the financial year 2021-22 stood at '' 71,366.67 Lakh as against last year''s '' 33,130.84 Lakh. Profit before tax for the year was at '' 2,911.29 Lakh as against last years'' Loss before tax of '' 2,883.70 Lakh. The total comprehensive income was '' 2,189.39 Lakh as against '' (2,205.92) Lakh of the previous year.
Highlights on the performance of wholly owned subsidiaries and their contribution to the overall performance of the Company:
a) Safari Lifestyles Limited:
The total income of the Safari Lifestyles Limited for the financial year 2021-22 stood at '' 95.21 Lakh as against last year''s '' 0.72 Lakh. Loss before tax was at '' 15.91 Lakh as against last year''s Loss of '' 2.36 Lakh. The total comprehensive income was ''(16.67) Lakh as against ''(4.08) Lakh of the previous year.
b) Safari Manufacturing Limited:
During the year under review, Safari Manufacturing Limited, wholly owned subsidiary of the Company was incorporated on 9th November 2021. The total income of the Safari Manufacturing Limited for the financial year 2021-22 stood at '' 1.20 Lakh. Loss before tax was at '' 48.59 Lakh. The total comprehensive income was '' (45.90) Lakh.
Safari Manufacturing Limited was incorporated as wholly owned subsidiary company of the Company during the year under review and hence comparable figures of previous year are not available.
During the year under review, Safari Industries (India) Limited entered a Memorandum of Understanding ("MOU") with Lear Automotive (India) Private Limited for purchasing a land with constructed property along with the buildings and utilities present on site situated at Mouje: Halol, Taluka Halol, District Panchmahal, Gujarat ("said propertyâ) for a total consideration of '' 22.51 Crore (Rupees Twenty-Two Crores and Fifty One Lakh Only) including all taxes if any.
In this connection, Safari Manufacturing Limited was incorporated with the same main object as that of the Company and in continuation to the aforesaid MOU, Safari Manufacturing Limited executed Sale-Purchase Agreement and Deed of Conveyance with Lear Automotive (India) Private Limited for the purpose of purchasing the said property. The said property is proposed to be used for setting up Luggage manufacturing unit of Safari Manufacturing Limited.
The Board of Directors are pleased to recommend for your consideration a dividend of '' 0.80 per equity share of '' 2/ -each i.e. 40% on the paid up value. (in previous year, no dividend was recommended and paid) for the financial year 2021-22.
The total payout, if the dividend is approved by the Members at the Meeting will be '' 179.15 Lakh.
It is not proposed to transfer any amount to reserves out of the profits earned during FY 2021-22.
During the year under review, the Company''s paid-up share capital increased from '' 4,47,73,000/- (Rupees Four Crore Forty Seven Lakh Seventy Three Thousand Only) to '' 4,47,79,000/ - (Rupees Four Crore Forty Seven Lakh Seventy Nine Thousand Only) due to issuance of Equity Shares through ESOP Allotments.
Equity shares with differential rights:
The Company has not issued any equity shares with differential rights and hence no information as per provisions of Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.
Sweat equity shares:
The Company has not issued any sweat equity shares during the year under review and hence no information as per provisions of Rule 8(13) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.
5. TRANSFER TO INVESTORSâ EDUCATION AND PROTECTION FUND:
In accordance with the applicable provisions of Section 124 and 125 of the Companies Act, 2013 (the Act) and Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 and amendments thereof, the relevant dividend amounts which remain unpaid and unclaimed for a period of seven years have been transferred to the Investor Education and Protection Fund from time to time. Further, Equity Shares in respect of which dividend has not been encashed by the Members during the last seven years, from the date of transfer to the unpaid dividend account of the Company, has been transferred to the designated Suspense Account as prescribed by the IEPF Authority from time to time.
Details of the unpaid and unclaimed dividend amount lying with the Company as on 31st March 2022 have been uploaded on the Company''s website (https: / / safaribags.com / page / investor-relations / unclaimed-unpaid-dividends)
6. DIRECTORS:a) RETIREMENT BY ROTATION:
In accordance with the provisions of Section 152 of the Act and the Company''s Articles of Association, Mr. Sumeet Nagar, Director (DIN: 02099103) of the Company is liable to retire by rotation at the ensuing AGM and being eligible, has offered himself for re-appointment.
The aforesaid re-appointment with a brief profile and other related information of Mr. Sumeet Nagar forms part of the Notice convening the ensuing AGM.
Dr. Shailesh Mehta, Non-Executive and Independent Director of the Company was re-appointed on 28th July 2019 for a period of 3 years. He shall cease to be a director of the Company since his tenure as NonExecutive and Independent Director expires on 27th July 2022 and pursuant to Section 149 of the Act, he will not be eligible for re-appointment.The Board wishes to place on record it''s appreciation for the valuable contribution made by him.
During the year under review, pursuant to Section 134(3)(d) of the Act, declarations were received from all the Independent Directors confirming they fulfil the criteria of independence specified under Section 149(6) of the Act and Regulation 16(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Terms and conditions of appointment of Independent Directors are placed on the website of the Company at https:// www.safaribags.com/ page/ investor-relations/terms-of-appointment-of-independent-director
In accordance with the provisions of Section 203 of the Act, the following are the Key Managerial Personnel of the Company:
Sr. No. |
Name |
Designation |
1. |
Mr. Sudhir Jatia |
Managing Director |
2. |
Mr. Vineet Poddar |
Chief Financial Officer |
3. |
Mr. Rameez Shaikh |
Company Secretary |
d) NOMINATION AND REMUNERATION POLICY:
The Company has adopted a Nomination and Remuneration Policy on criteria for determining Directors''
appointment and remuneration including qualifications, positive attributes, independence of a director
and other matters provided under Section 178 (3) of the Act. The remuneration paid to the Directors is as
per the terms laid out in the Nomination and Remuneration Policy of the Company.
The said Policy lays down the guidelines to be followed in relation to:
A. Appointment of the directors and key managerial personnel of the Company;
B. Fixation of the remuneration of the directors, key managerial personnel and other employees of the Company; and
C. Evaluation of performance of directors, key managerial personnel and other employees of the Company.
The objective of this Policy is to inter-alia:
A. Attract, recruit and retain good and exceptional talent;
B. List down the criteria for determining the qualifications, positive attributes and independence of the directors of the Company;
C. Ensure that the remuneration of the directors, key managerial personnel and other employees is performance driven, motivates them, recognises their merits and achievements and promotes excellence in their performance;
D. Motivate such personnel to align their individual interests with the interests of the Company and further the interests of its stakeholders;
E. Ensure a transparent nomination process for directors with the diversity of thought, experience, knowledge, perspective and gender in the Board; and
F. Fulfill the Company''s objectives and goals, including in relation to good corporate governance, transparency and sustained long-term value creation for its stakeholders.
The Nomination and Remuneration Policy of the Company can be viewed on website of the Company at https://www.safaribags.com/ page/investor-relations/policies
e) MANNER OF FORMAL EVALUATION OF BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS:
During the year under review, performance evaluation of the Board as a whole, its Committees and Individual Directors have been carried out as per the provisions of the Act. All Independent Directors of the Company at their meeting held on 8th February 2022 have evaluated the performance of the Board as a whole, Committees of Board, the Chairman of the Company and the Non-Independent Directors as per the criteria adopted by the Nomination, Remuneration and Compensation Committee and the Board.
The performance evaluation of the Board was based on various parameters such as qualification of Board Members, their diversity of experience and background, whether the Members of the Board met all applicable independence requirements, sufficient number of Board meetings and Committee meetings etc. The performance of the individual Directors was evaluated on parameters such as qualifications, experience, independence, participation in Board Meetings and Committee Meetings, etc.
The evaluation of the Independent Directors was carried out by the entire Board excluding the Independent Director being evaluated.
The Directors were satisfied with the evaluation results, which reflected the overall engagement of the Board and its Committees with the Company.
f) NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS DURING THE YEAR:
During the year under review, the Board of Directors have held four (4) Board Meetings. The details of the Board Meetings and the attendance of the Directors are provided in the Corporate Governance Report which is annexed as Annexure A.
g) COMPOSITION OF AUDIT COMMITTEE:
The Audit Committee of the Board of Directors of the Company comprises of the following members as on 31st March 2022:
Sr. No. |
Name of Member |
Position |
Category |
1 |
Dr. Shailesh Mehta |
Chairman |
Non-Executive Independent |
2 |
Mr. Punkajj Lath |
Member |
Non-Executive Independent |
3 |
Mr. Dalip Sehgal |
Member |
Non-Executive Independent |
4 |
Mr. Gaurav Sharma |
Member |
Non-Executive Non-Independent |
Recommendations of the Audit Committee not accepted by the Board of Directors of the Company, along with the reasons thereof: None
7. CORPORATE GOVERNANCE REPORT:
As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Corporate Governance Report together with a Certificate from M/s. Ninad Awachat & Associates, Practicing Company Secretaries confirming compliance thereto is enclosed with the Corporate Governance Report as Annexure A.
In compliance with the requirements of Regulation 17 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, a certificate from the Managing Director and Chief Financial Officer of the Company was placed before the Board. The same is enclosed as a part of the Corporate Governance Report.
All the Board Members and Senior Management Personnel of the Company had affirmed compliance with the Code of Conduct for Board and Senior Management Personnel. A declaration to this effect duly signed by the Managing Director is enclosed as a part of the Corporate Governance Report.
The information pursuant to Section 197(12) of the Act and Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as Annexure B and forms part of this Report.
The statement containing particulars of remuneration of employees as required under Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are given in Annexure C of this Report.
In terms of Section 136(1) of the Act, the Annual Report is being sent to the Members excluding the aforesaid Annexure C. This Annexure will be available on the website of the Company 21 days prior to the date of the AGM. The information is also available for inspection by the Members at the Registered Office of the Company during business hours on all working days except Saturdays, Sundays and Public Holidays up to the date of the AGM. Any Member desirous of obtaining a copy of the said Annexure may write to the Company Secretary at the Registered Office Address and/or send an E-mail at [email protected].
9. SAFARI EMPLOYEE STOCK OPTION SCHEME 2016:
Presently, the Company has Employee Stock Option (ESOP) Scheme namely Safari Employee Stock Option Scheme 2016 ("the ESOP Schemeâ) which helps the Company to retain and attract the right talent. The Nomination, Remuneration and Compensation Committee monitors the Company''s ESOP scheme.
There are no changes in the ESOP Scheme and the ESOP Scheme is in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
The disclosures required under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 are available on the website of the Company at https://www.safaribags.com/page/investor-relations/annual-reports
10. SAFARI EMPLOYEES STOCK APPRECIATION RIGHTS SCHEME 2022:
During the year under review, the Board of Directors in their meeting held on 8th February 2022 and Members of the Company vide Postal Ballot, results of which were declared on 15th March 2022, approved implementation of Safari Employees Stock Appreciation Rights Scheme, 2022 (''ESAR''/''the ESAR Scheme'') with an objective of rewarding the employees for association, dedication and contribution to the goals of the Company. The Company intends to use this ESAR Scheme to attract and retain key talents working with the Company by way of rewarding their performance and to motivate them to contribute to the overall corporate growth and profitability. The ESAR Scheme covers eligible employees of the Company and its wholly owned subsidiaries.
The ESAR Scheme is in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
11. DIRECTORSâ RESPONSIBILITY STATEMENT PURSUANT TO SECTION 134 OF THE ACT:
The Directors hereby confirm:
a) that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.
b) that they 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 of the Company for that period.
c) that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
d) that they have prepared the annual accounts on a going concern basis.
e) that they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively.
f) that they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
M/s. Lodha & Co., Chartered Accountants (Firm Registration No. 301051E), Statutory Auditors of the Company will be completing their tenure of 5 (five) years as the Statutory Auditors at the ensuing AGM of the Company.
The Board of Directors places on record its appreciation to the services rendered by M/s. Lodha & Co., Chartered Accountants as the Statutory Auditors of the Company.
The Board of Directors of the Company on the recommendation of the Audit Committee recommends the appointment of M/s. Walker Chandiok & Co LLP (Firm Registration No. 001076N/N500013) as the Statutory Auditors of the Company for a term of five (5) years from the conclusion of the ensuing 42ndAGM of the Company till the conclusion of 47th AGM.
M/s. Walker Chandiok & Co LLP have confirmed their eligibility to the effect that their appointment, if made, would be within the prescribed limits under the Act and that they are not disqualified for appointment as Statutory Auditors of the Company.
The Auditor''s Report for the year under review does not contain any qualification, reservation or adverse remark.
Based on the recommendation of the Audit Committee of the Company, the Board of Directors of the Company had appointed M/s. Moore Singhi Advisors LLP as the Internal Auditors of the Company.
In accordance with the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed M/s. Ninad Awachat & Associates, Practicing Company Secretaries (Membership No. 26995 & CP No. 9668) to conduct Secretarial Audit for the financial year 2021-22.
The Report of the Secretarial Auditor is annexed hereto as Annexure D. The said Report does not contain any qualification, reservation or adverse remark.
The Accounting Treatment is in line with the applicable Indian Accounting Standards (IND-AS) recommended by the Institute of Chartered Accountants of India and prescribed by the Central Government, as may be amended from time to time.
As on the financial year ended 31st March, 2022, the Company has following 2 (two) wholly owned subsidiaries:
a) Safari Lifestyles Limited; and
b) Safari Manufacturing Limited.
During the year under review, Safari Manufacturing Limited was incorporated on 9th November 2021 as wholly owned subsidiary of the Company.
Further, during the year under review, no companies have become / ceased to be joint venture or associate companies of the Company.
The Consolidated Financial Statements of the Company include the financial statements of the aforesaid wholly owned subsidiaries of the Company for the financial year 2021-22. The Financial Statements of wholly owned subsidiaries are also placed on the website of the Company. Any Member desirous of obtaining a copy of the said Financial Statements may send an e-mail to the Company Secretary at [email protected] for the same.
The Report on the performance and financial position of wholly owned subsidiaries in Form AOC-1 pursuant to first proviso to Sub-section (3) of Section 129 of the Act and Rule 5 of Companies (Accounts) Rules, 2014 is annexed to this Report as Annexure E.
17. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:
The Board of Directors has adopted a Policy on Internal Financial Controls to ensure orderly and efficient conduct of the business of the Company including the Company''s policies. The said Policy is adequate and is operating effectively.
The Company has adopted Risk Management Policy, the brief of the same is disclosed in the Corporate Governance Report annexed as Annexure A to this report.
19. PARTICULARS OF CONTRACTS WITH RELATED PARTIES:
All the related party transactions entered by the Company during the year under review were in the ordinary course of business, on arm''s length basis and in accordance with the provisions of the Act read with the Rules issued thereunder and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. There were no material related party transactions entered during the year under review.
Accordingly, no transactions are being reported in Form AOC-2 in terms of Section 134 of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014.
20. VIGIL MECHANISM /WHISTLE BLOWERS POLICY:
The Company believes in conducting its affairs in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity and ethical behaviour. In order to achieve the same, the Company has formulated a Whistle Blowers Policy to provide a secure environment and to encourage all employees, Directors, Members, customers, vendors and/ or third party intermediaries of the Company to report unethical, unlawful or improper practices, acts or activities in the Company and to prohibit managerial personnel from taking any adverse action against those employees/persons who report such practices in good faith.
The Policy has been uploaded on the website of the Company at https://www.safaribags.com/ page/investor-relations/policies
21. PARTICULARS OF LOAN, GUARANTEE AND INVESTMENTS UNDER SECTION 186 OF THE ACT:
Details of loans, guarantees and investments made are given in Notes to the Standalone Financial Statements.
The Annual Return for financial year 2021-22 has been uploaded on the website of the Company at https:// www.safaribags.com/ page/ investor-relations/annual-return
23. COMPLIANCE WITH SECRETARIAL STANDARDS:
The Directors state that applicable Secretarial Standards, i.e. SS-1 and SS-2 relating to ''Meetings of the Board of Directors'' and ''General Meetings'' respectively have been duly followed by the Company.
24. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO:
Details on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo, etc. are given in the Annexure F to this Report.
25. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management Discussion and Analysis Report for the year under review, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed as Annexure G to this Report.
26. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES:
The Company has adopted a CSR Policy in accordance with the provisions of Section 135 of the Act read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. The same is available on the website of the Company at https://www.safaribags.com/ page/investor-relations/corporate-social-responsibility
The composition of the CSR Committee is disclosed in the Corporate Governance Report which is annexed as Annexure A to this report. The report on CSR activities undertaken by the Company for the year under review is annexed to this Report as Annexure H.
27. BUSINESS RESPONSIBILITY REPORT:
Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Business Responsibility Report for the year under review is annexed as Annexure I to this Report.
28. INFORMATION UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
The information required as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 is provided in the Corporate Governance Report which is annexed as Annexure A to this Report.
The Policy for Prevention of Sexual Harassment of Women at Workplace has been uploaded on the website of the Company at https://safaribags.com/page/investor-relations/policies
29. DIVIDEND DISTRIBUTION POLICY:
In compliance with Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Dividend Distribution Policy formulated by the Company is available on the website of the Company at https:// safaribags.com/page/investor-relations/policies
Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions/ events during the year under review:
a) Details relating to deposits covered under Chapter V of the Act.
b) Change in nature of Company''s business.
c) Details of significant and material orders passed by Regulators or Courts or Tribunals impacting the going concern status and the Company''s operations in future.
d) Material changes and commitments, affecting the financial position of the Company which have occurred between the end of the financial year and the date of Report.
e) No material fraud has been reported by the Auditors to the Audit Committee of the Board.
f) Maintenance of cost records as specified by the Central Government under Sub-section (1) of Section 148 of the Act is not applicable to the Company.
g) No application was made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016.
Your Directors wish to place on record their appreciation for the dedicated services of the employees of your Company at all levels. Further, the Directors would also like to express their gratitude for the continued support of all the stakeholders and last but not the least our valued Members, for all their support and trust reposed in the Company.
ON BEHALF OF THE BOARD OF DIRECTORS For SAFARI INDUSTRIES (INDIA) LIMITEDSUDHIR JATIA
Place: Mumbai Chairman & Managing Director
Date: 13th May 2022 DIN:00031969
Mar 31, 2018
DIRECTORS'' REPORT
To
The Members,
The Directors are pleased to present the Thirty Eighth Annual Report on the business and operations of the Company together with the Audited Financial Statements for the financial year ended as on 31st March 2018.
1. STATE OF AFFAIRS OF THE COMPANY:
a) FINANCIAL RESULTS: (Rs, in Lakh)
Particulars |
Standalone |
Consolidated |
|||
2017-18 |
2016-17 |
2017-18 |
2016-17 |
||
Revenue from operations |
41,808.54 |
35,116.81 |
42,022.25 |
35,242.32 |
|
Other income |
154.79 |
109.53 |
154.88 |
109.53 |
|
Total revenue |
41,963.33 |
35,226.34 |
42,177.13 |
35,351.85 |
|
Expenses |
38,628.41 |
33,607.09 |
38,794.80 |
33,707.94 |
|
Profit before exceptional items and taxation |
3,334.92 |
1,619.25 |
3,382.33 |
1,643.91 |
|
Exceptional items |
- |
89.06 |
- |
89.06 |
|
Profit before tax |
3,334.92 |
1,530.19 |
3,382.33 |
1,554.85 |
|
Tax expenses |
1,213.97 |
524.00 |
1,228.51 |
536.45 |
|
Profit after tax |
2,120.95 |
1,006.19 |
2,153.82 |
1,018.40 |
|
Other comprehensive income |
(29.59) |
(45.05) |
(29.59) |
(45.05) |
|
Total comprehensive income for the period |
2,091.36 |
961.14 |
2,124.23 |
973.35 |
The above is an extract from the financial statements prepared in accordance with the Indian Accounting Standards as notified under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015.
b) PERFORMANCE REVIEW: Standalone:
The total revenue of the Company for the financial year 2017-18 stood at Rs, 41,963.33 Lakh as against last year''s Rs, 35,226.34 Lakh, a growth of 19.12%. Profit before tax were at Rs, 3,334.92 Lakh as against last year''s Rs, 1,530.19 Lakh, a growth of 117.94%. The total comprehensive income was Rs, 2,091.36 Lakh as against Rs, 961.14 Lakh of the previous year.
As on 31st March 2018, the Reserves and Surplus of the Company were at Rs, 16,800.34 Lakh.
Consolidated:
In accordance with the Companies Act, 2013, the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as per Accounting Standard (AS) - 21, "Consolidated Financial Statements" issued by the Institute of Chartered Accountants of India, the Audited Consolidated Financial Statements together with the Auditor''s Report is annexed herewith.
The total revenue of the Company for the financial year 2017-18 stood at Rs, 42,177.13 Lakh as against last year''s Rs, 35,351.85 Lakh, a growth of 19.31 %. Profit before tax were at Rs, 3,382.33 Lakh as against last year''s Rs, 1,554.85 Lakh, a growth of 117.53%. The total comprehensive income was Rs, 2,124.23 Lakh as against Rs, 973.35 Lakh of the previous year.
Highlights on the performance of Safari Lifestyles Ltd & its contribution to the overall performance of the Company:
The total revenue of the Safari Lifestyles Ltd for the financial year 2017-18 stood at Rs, 1,081.59 Lakh as against last year''s Rs, 1,364.40 Lakh. Profit before tax were at Rs, 51.42 Lakh as against last year''s '' 40.16 Lakh. The total comprehensive income was '' 36.88 Lakh as against '' 27.71 Lakh of the previous year.
A detailed analysis on the operations of the Company during the year under report and outlook for the current year is included in the Management Discussion and Analysis Report, forming part of this Annual Report.
2. DIVIDEND:
The Board of Directors are pleased to recommend for your consideration a dividend of Rs, 0.50 per equity share of Rs, 2/- each (previous year Rs, 2/- per equity share of Rs, 10/- each) for the financial year 2017-18.
The total pay-out, if the dividend is approved by the Members at the Meeting will be Rs, 134.38 Lakh, including dividend distribution tax of Rs, 22.91 Lakh.
3. TRANSFER TO RESERVES:
It is not proposed to transfer any amount to reserves out of the profits earned during FY 2017-18.
4. SHARE CAPITAL:
During the year under review, the Company has issued 12,50,000 equity of Rs, 2/- each to Malabar India Fund Limited and 2,50,000 equity shares of Rs, 2/- each to Malabar Value Fund by way of preferential issue. Accordingly, the paid up Equity Share Capital as on March 31, 2018 stood at Rs, 4,45,00,000.
5. TRANSFER TO INVESTORSâ EDUCATION AND PROTECTION FUND:
In accordance to the applicable provisions of Section 124 and 125 of the Companies Act, 2013 and Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 and amendments hereof, the relevant dividend amounts which remain unpaid and unclaimed for a period of seven years have been transferred to the Investor Education and Protection Fund. Further shares in respect of which dividend has not been encashed by the Members during the last seven years, from the date of transfer to the unpaid dividend account of the Company, has been transferred to the designated Suspense Account as prescribed by the IEPF Authority during the year.
All unclaimed and unpaid dividend amount relating to the financial year 2010-11 will be transferred to the Investor Education and Protection Fund by 4th October 2018. Members are requested to encash their dividend immediately before it is transferred to the IEPF.
Details of the unpaid and unclaimed dividend amount lying with the Company as on 30th August 2017 have been uploaded on the Company''s website (www.safari.in) and also on the website of the Ministry of Corporate Affairs.
6. DIRECTORS:
a) RETIREMENT BY ROTATION:
In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Company''s Articles of Association Mr. Piyush Goenka, Director (holding DIN:02117859) Non-Executive, Non Independent Director of the Company is liable to retire by rotation at the ensuing Annual General Meeting and being eligible, has offered himself for re-appointment.
The aforesaid re-appointment with a brief profile and other related information of Mr. Piyush Goenka forms part of the Notice convening the ensuing Annual General Meeting and the Directors recommend the same for your approval.
b) INDEPENDENT DIRECTORS:
During the year under review, declarations were received from all Independent Directors of the Company confirming that they fulfil the "criteria of independence" specified in Section 149 (6) of the Companies Act, 2013 and under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Terms and conditions of appointment of Independent Directors are placed on the website of the Company at http: / / www.safari.in/ corporate/ investors-relations/ to avoid
c) KEY MANAGERIAL PERSONNEL:
In accordance with the provisions of Section 203 of the Companies Act, 2013 the following are the Key Managerial Personnel of the Company
Sr no. Name Designation
1. Mr. Sudhir Jatia Chairman and Managing Director
2. Mr. Vineet Poddar Chief Financial Officer
3. Ms. Jigna Parikh (upto 9th February 2018) Company Secretary
4. Mr. Rameez Shaikh (from 10th February 2018) Company Secretary
d) NOMINATION AND REMUNERATION POLICY:
The Company has adopted a Policy on Directors'' appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under Section 178 (3) of the Companies Act, 2013. The remuneration paid to the Directors is as per the terms laid out in the Nomination and Remuneration policy of the Company.
The policy is available on the website of the Company at https://www.safari.in/corporate/investors-relations/policies
e) MANNER OF FORMAL EVALUATION OF BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS:
During the year under review, performance evaluation of the Board as a whole and that of its Committees and Individual Directors have been carried out as per the provisions of the Companies Act, 2013. All Independent Directors of the Company at their meeting held on 9th February 2018 have evaluated the performance of the Board as a whole, Committees of Board, the Chairman of the Company and the Non Independent Directors as per the criteria adopted by the Board.
The performance evaluation of the Board was based on various parameters such as qualification of Board Members, their diversity of experience and background, whether the Members of the Board met all applicable independence requirements, sufficient number of Board meetings and Committee meetings etc. The performance of the individual Directors was evaluated on parameters such as qualifications, experience, independence, participation in Board Meetings and Committee Meetings, etc.
The evaluation of the Independent Directors was carried out by the entire Board excluding the Independent Director being evaluated.
The Directors were satisfied with the evaluation results, which reflected the overall engagement of the Board and its Committees with the Company.
f) NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS DURING THE YEAR:
During the year under review, the Board of Directors have held five (5) Board meetings. The details of the Board meetings and the attendance of the Directors are provided in the Corporate Governance Report which is annexed as Annexure A.
g) COMPOSITION OF AUDIT COMMITTEE:
The Audit Committee of the Board of Directors of the Company comprises of the following members:
Sr no. Name of Member Category
1 Dr. Shailesh Mehta - Chairman Independent
2 Mr. Punkajj Lath Independent
3 Mr. Dalip Sehgal Independent
4 Mr. Piyush Goenka Non-Executive Non-Independent Recommendations of the Audit Committee not accepted by the Board of Directors of the Company, along with the reasons thereof : None
7. CORPORATE GOVERNANCE REPORT:
As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Corporate Governance Report together with a Certificate from M/s. Ninad Awachat & Associates, Practicing Company Secretaries confirming compliance thereto is enclosed with the Corporate Governance Report which is annexed as Annexure A.
In compliance with the requirements of Regulation 17 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, a certificate from the Managing Director and Chief Financial Officer of the Company was placed before the Board. The same is enclosed as a part of the Corporate Governance Report.
All the Board Members and Senior Management Personnel of the Company had affirmed compliance with the Code of Conduct for Board and Senior Management Personnel. A declaration to this effect duly signed by the Managing Director is enclosed as a part of the Corporate Governance Report.
8. PARTICULARS OF EMPLOYEES:
The information pursuant to Section 197 of the Companies Act, 2013 and Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as Annexure B and forms part of this Report.
The statement containing particulars of remuneration of employees as required under Rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are given in Annexure C of this Report.
In terms of Section 136 (1) of the Act, the Annual Report is being sent to the Members excluding the aforesaid Annexure C. This Annexure shall be made available on the website of the Company 21 days prior to the date of the Annual General Meeting (''AGM''). The information is also available for inspection by the Members at the Registered Office of the Company during business hours on all working days except Saturdays, Sundays and Public Holidays up to the date of the AGM. Any Member desirous of obtaining a copy of the said Annexure may write to the Company Secretary at the Registered Office Address.
9. SAFARI EMPLOYEE STOCK OPTION SCHEME 2016:
Presently, the Company has Employee Stock Option (ESOP) Scheme namely Safari Employee Stock Option Scheme 2016 ("the Scheme") which helps the Company to retain and attract the right talent. The Nomination, Remuneration and Compensation Committee monitors the Company''s ESOP scheme.
There are no changes in the Scheme and the Scheme is in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2014.
The disclosures required under the SEBI (Share Based Employee Benefits) Regulations, 2014 are available on the website of the Company at https://www.safari.in/corporate/investors-relations/policies
10. DIRECTORSâ RESPONSIBILITY STATEMENT PURSUANT TO SECTION 134 OF THE COMPANIES ACT, 2013:
The Directors hereby confirm:
a) that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.
b) that they 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 of the Company for that period.
c) that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
d) that they have prepared the annual accounts on a going concern basis.
e) that they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively.
f) that they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
11. AUDITORS:
At the 37th Annual General Meeting held on 30th August 2017, M/s. Lodha & Co., Chartered Accountants (Firm Registration No. 301051E) were appointed as Statutory Auditors of the Company to hold office for a term of 5 years commencing from the conclusion of 37th Annual General Meeting till the conclusion of 42nd Annual General Meeting, subject to ratification of appointment by the Members of the Company in each Annual General Meeting.
The Companies (Amendment) Act, 2017 published in the Gazzette of India on 3rd January 2018, amended few sections of the Companies Act, 2013 including omission of first proviso to Section 139 (1) of the Companies Act, 2013, which provided ratification of appointment of the Statutory Auditors by the members at every AGM. The amendment to said Section is effective from 7th May 2018.
In view of the above, the Board of Directors of the Company have proposed partitial modification in the previous resolution of the members passed at 37th AGM of the Company on appointment of Statutory Auditors and recommended to continue appointment of M/s. Lodha & Co., Chartered Accountants (Firm Registration No. 301051E) as Statutory Auditors of the Company for the period of 5 years commencing from the conclusion of 37th AGM till the conclusion of 42nd AGM of the Company without seeking any further ratification of their appointment from members at this AGM and ensuing AGMs till the tenure of the Statutory Auditors.
The Auditor''s Report does not contain any qualification, reservation or adverse remark.
12. INTERNAL AUDITORS:
Based on the recommendation of the Audit Committee of the Company, the Board of Directors of the Company had appointed M/s. Ernst & Young LLP as the Internal Auditors of the Company.
13. SECRETARIAL AUDIT REPORT:
In accordance to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed M/ s. Ninad Awachat & Associates, Practicing Company Secretaries (Membership No. 26995 & CP No. 9668) to conduct Secretarial Audit for the financial year 2017-18.
The Report of the Secretarial Auditor is annexed hereto as Annexure D. The said Report does not contain any qualification, reservation or adverse remark.
14. SUBSIDIARIES:
The consolidated financial statements of the Company include the financial statements of Safari Lifestyles Ltd, the wholly owned subsidiary of the Company for the financial year 2017-18. The Financial Statements of Safari Lifestyles Limited are also placed on the website of the Company. Any Member desirous of obtaining a copy of the said Financial Statements may write to the Company Secretary of the Company at its Registered Office.
The Report on the performance and financial position of Safari Lifestyles Ltd in Form AOC-1 pursuant to first proviso to sub-section (3) of Section 129 of the Companies Act, 2013 and Rule 5 of Companies (Accounts) Rules, 2014 is annexed to this Report as Annexure E.
The Company has approved a policy for determining material subsidiaries and the same is uploaded on the Company''s website at https://www.safari.in/corporate/investors-relations/policies
15. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:
The Board of Directors has adopted a policy on Internal Financial Controls to ensure orderly and efficient conduct of the business of the Company including the Company''s policies. The said Policy is adequate and is operating effectively.
16. RISK MANAGEMENT POLICY:
The Company is committed to high standards of business conduct and good risk management to:
- Protect the Company''s assets
- Achieve sustainable business growth
- Avoid major surprises relating to overall control environment
- Safeguard shareholder investment
- Ensure compliance with applicable legal and regulatory requirements.
The Board has adopted a policy on risk management to mitigate inherent risks and help accomplish the growth plans of the Company. Accordingly, various potential risks relevant to the Company has been identified by the Audit Committee. The Board reviews the same periodically and suggests measures to mitigate and control these risks.
17. LISTING OF SHARES:
The equity shares of the Company are listed on BSE Ltd.
The Company has paid necessary listing fees to BSE Ltd as prescribed under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for FY 2018-19.
18. PARTICULARS OF CONTRACTS WITH RELATED PARTIES:
All the related party transactions entered by the Company during the year under review were in the ordinary course of business, on arm''s length basis and in accordance with the provisions of the Companies Act, 2013 read with the Rules issued thereunder and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. There are no material related party transactions during the year under review.
Accordingly, no transactions are being reported in Form AOC-2 in terms of Section 134 of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014.
The Company has formulated a Policy on Related Party Transactions which is available on the website of the Company at https://www.safari.in/ corporate/investors-relations/policies
The details of the transactions with Related Parties as per Indian Accounting Standard 24 are set out in Notes to the Standalone Financial Statements.
19. VIGIL MECHANISM-WHISTLE BLOWERS POLICY:
The Company believes in conducting its affairs in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity and ethical behaviour. In order to achieve the same, the Company has formulated a Whistle Blowers Policy to provide a secure environment and to encourage all employees and Directors of the Company, Members, customers, vendors and/or third party intermediaries to report unethical, unlawful or improper practices, acts or activities in the Company and to prohibit managerial personnel from taking any adverse action against those employees who report such practices in good faith.
The Policy has been uploaded on the website of the Company at http: / / www.safari.in/ corporate / investors-relations / policies
20. PARTICULARS OF LOAN, GUARANTEE & INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT 2013:
During the year under review, the Company has not given any loans or guarantees. Details of investments made are given in Notes to the Standalone Financial Statement.
21. EXTRACT OF ANNUAL RETURN:
An extract of the Annual Return as on 31st March 2018 in terms of Section 92(3) of the Companies Act, 2013 read with rule 12(1) of the Companies (Management and Administration) Rules, 2014 is annexed herewith as Annexure F.
22. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
Details on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo are given in the Annexure G hereto and forms part of this Report.
23. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management Discussion and Analysis Report for the year under review, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed as Annexure H forming part of this Annual Report.
24. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES:
The Company has adopted a CSR Policy in accordance with the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. The same is available on the website of the Company at http:// www.safari.in/corporate/investors-relations/policies.
The composition of the CSR Committee is disclosed in the Corporate Governance Report which forms part of the Annual Report. The report on CSR activities undertaken by the Company for the year under review is annexed to this Report at Annexure I.
25. INDUSTRIAL RELATIONS:
Industrial relations remained cordial throughout the year under review.
26. INFORMATION UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
The Company has in place a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at the Workplace in line with the requirements of the Sexual Harassment of W omen at W orkplace (Prevention, Prohibition and Redressal) Act, 2013. The Company has formed a Committee to redress complaints received regarding sexual harassment. During the year under review, no such complaints have been filed with the Committee.
27. GENERAL:
Yours Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions/ events during the year under review:
a) Details relating to deposits covered under Chapter V of the Companies Act 2013.
b) Change in nature of Company''s business.
c) Details of significant and material orders passed by Regulators or Courts or Tribunals impacting the going concern status and the Company''s operations in future.
d) Material changes and commitments, affecting the financial position of the Company which have occurred between the end of the financial year & the date of Report.
e) No material fraud has been reported by the Auditors to the Audit Committee of the Board.
28. ACKNOWLEDGEMENT:
Your Directors wish to place on record their appreciation for the dedicated services of the employees of your Company at all levels. Further, the Directors would also like to express their gratitude for the continued support of all the stakeholders and last, but not the least our valued Members, for all their support and trust reposed in the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
For SAFARI INDUSTRIES (INDIA) LIMITED
SUDHIR JATIA
Place: Mumbai Chairman & Managing Director
Date: 21st May 2018 DIN:00031969
Mar 31, 2017
To
The Members,
The Directors are pleased to present the Thirty Seventh Annual Report on the business and operations of the Company together with the Audited Statement of Accounts for the financial year ended as on 31st March 2017
1. STATE OF AFFAIRS OF THE COMPANY:
a) FINANCIAL RESULTS: (Rs, in Lacs)
Standalone |
Consolidated |
|||
2016-17 |
2015-16 |
2016-17 |
2015-16 |
|
Total revenue |
35,633.70 |
27,764.86 |
35,983.60 |
27,890.98 |
Profit before Interest, Depreciation, Tax, Exceptional items/Extra Ordinary Items and Exchange Loss |
2,380.48 |
2,053.71 |
2,408.75 |
2,049.49 |
Exchange Loss |
4.26 |
179.65 |
4.26 |
179.65 |
Interest |
307.44 |
261.91 |
307.44 |
261.91 |
Depreciation |
509.76 |
406.50 |
513.36 |
407.19 |
Profit before Exceptional Items/Extra Ordinary Items and Tax |
1,559.02 |
1,205.65 |
1,583.69 |
1,200.74 |
Less: Exceptional Items/Extra Ordinary Items |
89.06 |
(5.57) |
89.06 |
(5.57) |
Profit from ordinary activities before tax |
1,469.96 |
1,200.08 |
1,494.63 |
1,195.17 |
Tax expenses Current Tax Deferred tax |
(500.00) 1.74 |
(355.00) (65.01) |
(513.25) 2.54 |
(355.28) (64.94) |
Profit after Tax |
971.70 |
780.07 |
983.92 |
774.95 |
Profit brought forward from previous year |
1,297.98 |
577.85 |
1291.98 |
576.97 |
Profit available for appropriation |
2,269.68 |
1,357.92 |
2,275.90 |
1,351.92 |
Appropriations: Transfer to General Reserve |
||||
Proposed Dividend Tax on proposed dividend |
(83.00) (16.90) |
(49.80) (10.14) |
(83.00) (16.90) |
(49.80) (10.14) |
Balance carried to Balance sheet |
2,169.78 |
1,297.98 |
2,176.00 |
1,291.98 |
b) PERFORMANCE REVIEW:
Standalone:
The total revenue of the Company for the financial year 2016-17 stood at Rs, 35,633.70 lacs as against last year''s Rs, 27,764.86 lacs, a growth of 28.34%. Profit before interest, depreciation, tax, exceptional items and exchange loss was at Rs, 2,380.48 lacs as against last year''s Rs, 2,053.71 lacs, a growth of 15.91%. The Profit before tax and exceptional items was Rs, 1,559.02 lacs as against Rs, 1,205.65 lacs of the previous year. The Net Profit for the year stood at Rs, 971.70 lacs as against Rs, 780.07 lacs of the previous year.
Consolidated:
In accordance with the Companies Act, 2013, the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as per Accounting Standard (AS) - 21, "Consolidated Financial Statements" issued by the Institute of Chartered Accountants of India, the Audited Consolidated Financial Statements together with the Auditor''s Report is annexed herewith.
The consolidated revenue stood at Rs, 35,983.60 lacs as against last year''s Rs, 27,890.98 lacs and the consolidated net profit stood at Rs, 983.92 lacs as against last year''s Rs, 774.95 lacs.
As on 31st March 2017, the Reserves and Surplus of the Company were at Rs, 9,575.81 lacs.
Highlights on the performance of Safari Lifestyles Ltd & its contribution to the overall performance of the Company:
The total revenue of Safari Lifestyles Ltd for the financial year 2016-17 stood at Rs, 1364.40 lacs as against last year''s Rs, 428.48 lacs a growth of 318.43%. Profit before interest, depreciation and tax was at Rs, 43.79 lacs, as against last year''s Rs, 2.23 lacs, a growth of 1963.68%. The Net Profit after tax for the year stood at Rs, 27.72 lacs as against Rs, 1.30 lacs of the previous year which constitutes a 12.82% of the overall consolidated performance of the Company.
A detailed analysis on the operations of the Company during the year under report and outlook for the current year is included in the Management Discussion and Analysis Report, forming part of this Annual Report.
2. DIVIDEND:
The Board of Directors are pleased to recommend for your consideration a dividend of Rs, 2/- per equity share of Rs, 10/- each (previous year Rs, 1.20/- per equity share of Rs, 10/- each ) for the financial year 2016-17.
The total payout, if the dividend is approved by the Members at the Meeting will be Rs, 99.9 lacs, including dividend distribution tax of Rs, 16.90 lacs.
3. TRANSFER TO INVESTORSâ EDUCATION AND PROTECTION FUND:
In accordance to the applicable provisions of Section 205A and 205C of the Companies Act, 1956, Section 124 and 125 of the Companies Act, 2013 and Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 and amendments hereof, the relevant dividend amounts which remain unpaid and unclaimed for a period of seven years have been transferred to the Investor Education and Protection Fund.
All unclaimed and unpaid dividend amount relating to the financial year 2009-10 will be transferred to the Investor Education and Protection Fund by 30th September 2017. Members are requested to encash their dividend immediately before it is transferred to the IEPF.
Details of the unpaid and unclaimed dividend amount lying with the Company as on 12th August 2016 have been uploaded on the Company''s website (www.safari.in) and also on the website of the Ministry of Corporate Affairs.
It is also brought to the attention of the Members that as per the provisions of the Section 124 of the Companies Act, 2013 and Investor Education & Protection Fund Authority (Accounting, Audit, Transfer & Refund) Rules, 2016, shares in respect of which dividend has not been encashed by the Members during the last seven years, from the date of transfer to the unpaid dividend account of the Company, are required to be transferred to the designated Suspense Account as prescribed by the IEPF Authority. Hence the Members are requested to encash their dividend immediately to avoid transfer of their shares to the IEPF suspense account.
4. DIRECTORS:
a) APPOINTMENTS:
During the year under review, on the recommendation of the Nomination, Remuneration and Compensation Committee, the Board of Directors of the Company had appointed Mr. Piyush Goenka (holding DIN: 02117859) as an Additional Director, Non-Executive Non-Independent Director of the Company wef 7th February 2017 to hold the office till the ensuing Annual General Meeting.
The Company has received a Notice in writing from a Member proposing the candidature of Mr. Piyush Goenka for the office of a Director along with the requisite deposit.
A brief profile and other related information of Mr. Piyush Goenka has been given in the Notice convening the ensuing Annual General Meeting & the relevant resolution is recommended for the approval of the Members.
b) RESIGNATION:
During the year under review, Mr. Hetal Gandhi (holding DIN 00106895), Non-Executive, Non Independent Director of the Company resigned from the Board wef 3rd March 2017.
The Board places on record its appreciation for the valuable services rendered by Mr. Gandhi during his tenure.
c) RETIREMENT BY ROTATION:
In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Company''s Articles of Association, Mr. Anujj Patodia, Director (holding DIN:00026458) Non-Executive, Non Independent Director of the Company is liable to retire by rotation at the ensuing Annual General Meeting and being eligible, has offered himself for re-appointment.
The aforesaid re-appointment with a brief profile and other related information of Mr. Anujj Patodia forms part of the Notice convening the ensuing Annual General Meeting and the Directors recommend the same for your approval.
d) INDEPENDENT DIRECTORS:
During the year under review, declarations were received from all Independent Directors of the Company confirming that they fulfill the "criteria of independence" specified in Section 149 (6) of the Companies Act, 2013 and under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Terms and conditions of appointment of Independent Directors are placed on the website of the Company at http://www.safari.in/corporate/investors-relations/toaoid
e) KEY MANAGERIAL PERSONNEL:
In accordance with the provisions of Section 203 of the Companies Act, 2013, Mr. Sudhir Jatia - Chairman and Managing Director, Mr. Vineet Poddar - Chief Financial Officer and Ms. Jigna Parikh - Company Secretary are the Key Managerial Personnel of the Company.
f) NOMINATION AND REMUNERATION POLICY:
The Company has adopted a Policy on Directors'' appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under Section 178 (3) of the Companies Act, 2013. The remuneration paid to the Directors is as per the terms laid out in the Nomination and Remuneration policy of the Company.
The policy is stated in the Corporate Governance Report of the Company which is annexed hereto as Annexure A.
g) MANNER OF FORMAL EVALUATION OF BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS:
During the year under review, performance evaluation of the Board as a whole and that of its Committees and Individual Directors have been carried out as per the provisions of the Companies Act, 2013.
All Independent Directors of the Company at their meeting held on 7th February 2017 have evaluated the performance of the Board as a whole, Committees of Board, the Chairman of the Company and the Non Independent Directors as per the criteria adopted by the Board.
The performance evaluation of the Board was based on various parameters such as qualified Board Members, their diversity of experience and background, whether the Members of the Board met all applicable independence requirements, sufficient number of Board meetings and Committee meetings etc. The performance of the individual Directors was evaluated on parameters such as qualifications, experience, independence, participation in Board Meetings and Committee Meetings, etc.
The evaluation of the Independent Directors was carried out by the entire Board excluding the Independent Director being evaluated.
The Directors were satisfied with the evaluation results, which reflected the overall engagement of the Board and its Committees with the Company.
h) NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS DURING THE YEAR:
During the year under review, the Board of Directors has held four (4) Board meetings. The details of the Board meetings and the attendance of the Directors are provided in the Corporate Governance Report which is annexed as Annexure A.
5. COMPOSITION OF AUDIT COMMITTEE:
The Audit Committee of the Board of Directors of the Company comprises of the following members:
Sr no. |
Name of Member |
Category |
1 |
Dr. Shailesh Mehta - Chairman |
Independent |
2 |
Mr. Punkajj Lath |
Independent |
3 |
Mr. Dalip Sehgal |
Independent |
4 |
Mr. Piyush Goenka (wef 7th February 2017) |
Non-Executive Non-Independent |
5 |
Mr. Hetal Gandhi (upto 3rd March 2017) |
Non-Executive Non-Independent |
Recommendations of the Audit Committee not accepted by the Board of Directors of the Company, along with the reasons there for: None
6. CORPORATE GOVERNANCE REPORT:
As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Corporate Governance Report together with a Certificate from M/s. Ninad Awachat & Associates, Practicing Company Secretaries confirming compliance thereto is enclosed with the Corporate Governance Report which is annexed as Annexure A.
In compliance with the requirements of Regulation 17 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, a certificate from the Managing Director and Chief Financial Officer of the Company was placed before the Board. The same is enclosed as a part of the Corporate Governance Report.
All the Board Members and Senior Management Personnel of the Company had affirmed compliance with the Code of Conduct for Board and Senior Management Personnel. A declaration to this effect duly signed by the Managing Director is enclosed as a part of the Corporate Governance Report.
7. PARTICULARS OF EMPLOYEES:
The information pursuant to Section 197 of the Companies Act, 2013 and Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as Annexure B and forms part of this Report.
The statement containing particulars of remuneration of employees as required under Rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are given in Annexure C of this Report.
In terms of Section 136 (1) of the Act, the Annual Report is being sent to the Members excluding the aforesaid Annexure C. This Annexure shall be made available on the website of the Company 21 days prior to the date of the Annual General Meeting (''AGM''). The information is also available for inspection by the Members at the Registered Office of the Company during business hours on all working days except Saturdays and Sundays up to the date of the AGM. Any Member desirous of obtaining a copy of the said Annexure may write to the Company Secretary at the Registered Office Address.
8. SAFARI EMPLOYEE STOCK OPTION SCHEME 2016:
The Members of the Company at its AGM held on 12th August 2016 have approved the Safari Employee Stock Option Scheme 2016 ("the Scheme") for grant of 41,500 Employee Stock Options (''the Options'') to the eligible employees of the Company and its subsidiary/ies.
There are no changes in the Scheme and the Scheme is in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2014.
Details of the options granted under the Scheme and disclosures required under the SEBI (Share Based Employee Benefits) Regulations, 2014 is available on the website of the Company at http://www.safari.in/corporate/investors-relations.
9. DIRECTORSâ RESPONSIBILITY STATEMENT PURSUANT TO SECTION 134 OF THE COMPANIES ACT, 2013:
The Directors hereby confirm:
a) that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.
b) that they 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 of the Company for that period.
c) that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
d) that they have prepared the annual accounts on a going concern basis.
e) that they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively.
f) that they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
10. AUDITORS:
M/s. Bansi S. Mehta & Co., Chartered Accountants, Mumbai (Firm Registration No.100991W), the Statutory Auditors of the Company will be completing their tenure as the Statutory Auditors at the ensuing Annual General Meeting of the Company and will not be eligible for re-appointment in terms of Section 139 of the Companies Act, 2013.
The Board of Directors places on record its appreciation to the services rendered by M/s. Bansi S. Mehta & Co., Chartered Accountants as the Statutory Auditors of the Company.
The Board of the Directors of the Company on the recommendation of the Audit Committee recommends the appointment of M/s. Lodha & Co., Chartered Accountants (Firm Registration No.301051E) as the Statutory Auditors of the Company for a term of five (5) years from the conclusion of the ensuing 37 th AGM of the Company till the conclusion of 42th AGM, subject to annual ratification of their appointment by the Members of the Company.
M/s. Lodha & Co., Chartered Accountants have confirmed their eligibility to the effect that their appointment, if made, would be within the prescribed limits under the Companies Act, 2013 and that they are not disqualified for appointment.
The Auditor''s Report for the year under review does not contain any qualification, reservation or adverse remark.
11. INTERNAL AUDITORS:
Based on the recommendation of the Audit Committee of the Company, the Board of Directors of the Company has appointed M/s. Ernst & Young LLP as the Internal Auditors of the Company.
12. SECRETARIAL AUDIT REPORT:
In accordance to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed M/s. Ninad Awachat & Associates, Practicing Company Secretaries (Membership No. 26995 & CP No. 9668) to conduct Secretarial Audit for the financial year 2016-17. The Report of the Secretarial Auditor is annexed hereto as Annexure D. The said Report does not contain any qualification, reservation or adverse remark.
13. SUBSIDIARIES:
The consolidated financial statements of the Company include the financial statements of Safari Lifestyles Ltd, the wholly owned subsidiary of the Company for the financial year 2016-17. The Financial Statements of Safari Lifestyles Limited are also placed on the website of the Company. Any Member desirous of obtaining a copy of the said Financial Statements may write to the Company Secretary of the Company at its Registered Office Address.
The Report on the performance and financial position of Safari Lifestyles Ltd in Form AOC-1 pursuant to first proviso to sub-section (3) of Section 129 of the Companies Act, 2013 and Rule 5 of Companies (Accounts) Rules, 2014 is annexed to this Report at Annexure E.
The Company has approved a policy for determining material subsidiaries and the same is uploaded on the Company''s website at http://www.safari.in/corporate/investors-relations/policies
14. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:
The Board of Directors has adopted a policy on Internal Financial Controls to ensure orderly and efficient conduct of the business of the Company including the Company''s policies. The said Policy is adequate and is operating effectively.
15. RISK MANAGEMENT POLICY:
The Company is committed to high standards of business conduct and good risk management to:
> Protect the Company''s assets
> Achieve sustainable business growth
> Avoid major surprises relating to overall control environment
> Safeguard shareholder investment
> Ensure compliance with applicable legal and regulatory requirements.
The Board has adopted a policy on risk management to mitigate inherent risks and help accomplish the growth plans of the Company. Accordingly, various potential risks relevant to the Company has been identified by the Audit Committee. The Board reviews the same periodically and suggests measures to mitigate and control these risks.
16. LISTING OF SHARES:
The equity shares of the Company are listed on BSE Ltd.
The Company has paid necessary listing fees to BSE Ltd as prescribed under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for FY 2017-18.
17. PARTICULARS OF CONTRACTS WITH RELATED PARTIES:
All the related party transactions entered by the Company during the year under review were in the ordinary course of business, on arm''s length basis and in accordance with the provisions of the Companies Act, 2013 read with the Rules issued thereunder and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. There are no material related party transactions during the year under review.
Accordingly, no transactions are being reported in Form AOC-2 in terms of Section 134 of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014.
The Company has formulated a Policy on Related Party Transactions which is available on the website of the Company at http://www.safari.in/corporate/investors-relations/policies
The details of the transactions with Related Parties as per Accounting Standard 18 are set out in Note no. 33 to the Standalone Financial Statements.
18. VIGIL MECHANISM-WHISTLE BLOWERâS POLICY:
The Company believes in conducting its affairs in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity and ethical behavior. In order to achieve the same, the Company has formulated a Whistle Blowers'' Policy to provide a secure environment and to encourage all employees and Directors of the Company, Members, customers, vendors and/or third party intermediaries to report unethical, unlawful or improper practices, acts or activities in the Company and to prohibit managerial personnel from taking any adverse action against those employees who report such practices in good faith.
The Policy has been uploaded on the website of the Company at http://www.safari.in/corporate/investors-relations/policies
19. PARTICULARS OF LOAN, GUARANTEE & INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT 2013:
During the year under review, the Company has not given any loans or guarantees. Details of investments made are given in Note no. 11 of the Standalone Financial Statement.
20. EXTRACT OF ANNUAL RETURN:
An extract of the Annual Return as on 31st March 2017 in terms of Section 92(3) of the Companies Act, 2013 read with rule 12(1) of the Companies (Management and Administration) Rules, 2014 is annexed herewith as Annexure F.
20. CONSERVATION OF ENERGY, ETC.:
Details on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo, etc. are given in the Annexure G hereto and forms part of this Report.
21. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management Discussion and Analysis Report for the year under review, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed as Annexure H forming part of this Annual Report.
22. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES:
The Company has adopted a CSR Policy in accordance with the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. The same is available on the website of the Company at http://www.safari.in/corporate/investors-relations/policies The composition of the CSR Committee is disclosed in the Corporate Governance Report which forms part of the Annual Report. The report on CSR activities undertaken by the Company for the year under review is annexed to this Report at Annexure I.
24. INDUSTRIAL RELATIONS:
Industrial relations remained cordial throughout the year under review.
25. INFORMATION UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
The Company has in place a Policy on Prevention, Prohibition and Redressal of sexual harassment at the workplace in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Company has formed a Committee to redress complaints received regarding sexual harassment.
During the year under review, no such complaints have been filed with the Committee.
26. GENERAL:
Yours Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions/events during the year under review:
a) Details relating to deposits covered under Chapter V of the Companies Act 2013
b) Change in nature of Companyâs business
c) Details of significant and material orders passed by Regulators or Courts or Tribunals impacting the going concern status and the Company''s operations in future.
d) Material changes and commitments, affecting the financial position of the Company which have occurred between the end of the Financial Year & the date of Report.
e) No material fraud has been reported by the Auditors to the Audit Committee of the Board.
31. ACKNOWLEDGEMENT:
Your Directors wish to place on record their sincere thanks to all the employees of the Company for their continuing commitment and dedication.
Further, the Directors would also like to express their gratitude for the continued support of all the stakeholders such as banks, financial institutions, various State and Central Government authorities, customers, vendors and last but not the least our valued Members, for all their support and trust reposed in the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
For SAFARI INDUSTRIES (INDIA) LIMITED
SUDHIR JATIA
Place: Mumbai Chairman & Managing Director
Date: 23rd May, 2017 DIN: 00031969
Mar 31, 2015
Dear Members,
The Directors are pleased to present the Thirty Fifth Annual Report on
the business and operations of the Company together with the Audited
Statement of Accounts for the financial year ended as on 31st March,
2015.
1. STATE OF AFFAIRS OF THE COMPANY:
a) FINANCIAL RESULTS:
Standalone
2014-15 2013-14
Rs. in Lacs Rs. in Lacs
Total revenue 21,694.02 16,705.23
Profit before Interest,
Depreciation, Tax,
exceptional items and 1,309.06 1,123.19
exchange loss
Exchange Loss 52.12 375.97
Interest 290.91 537.71
Depreciation 289.06 127.85
Profit/ (Loss) before 676.97 81.66
Exceptional Items and Tax
Less: Exceptional Items Expense 95.90 27.70
Profit / (Loss) from ordinary 581.07 53.96
activities before tax
Tax expenses
Current Tax
Deferred tax 35.96 (42.36)
Profit/(Loss) after Tax 427.03 11.60
Profit brought forward from 398.78 387.18
previous year
Profit available for 825.81 398.78
appropriation
Appropriations:
Transfer to General Reserve 200.00 Nil
Proposed Dividend 39.85 Nil
Tax on proposed dividend 8.11 Nil
Balance carried to Balance sheet 577.84 398.78
b) PERFORMANCE REVIEW
Standalone:
The total revenue of the Company for the financial year 2014-15 stood
at Rs. 21,694.02 lacs as against last year's Rs. 16,705.23 lacs. Profit
before interest, depreciation, tax, exceptional items and exchange loss
was at Rs. 1,309.06 lacs as against last year's Rs. 1,123.19 lacs. The
Profit before tax and exceptional items was Rs. 676.97 lacs as against
Rs. 81.66 lacs of the previous year. The Net Profit for the year stood
at Rs. 427.03 lacs as against Rs. 11.60 lacs of the previous year.
Consolidated:
The wholly owned subsidiary of the Company, Safari Lifestyles Ltd., was
incorporated on 30th October 2014 and is yet to commence its
operations. In accordance with the Companies Act, 2013 and as
Accounting Standard (AS) - 21, 'Consolidated Financial Statements'
issued by the Institute of Chartered Accountants of India, the Audited
Consoli- dated Financial Statements together with Auditors' Report is
annexed herewith. The consolidated revenue for the period ended, 31 st
March 2015, stood at Rs. 21,694.02 lacs and the consolidated net profit
stood at Rs. 426.15 lacs.
c) OUTLOOK FOR THE CURRENT YEAR:
Rise in the personal disposable income, growth of travelling
expenditure of the households, rising urbanization has fueled market
growth of luggage in India. There is a growing acceptance of luggage
bags as a lifestyle product by the customers and which is why the
Company is working towards providing better looking quality products at
affordable prices to its customers. The Company has introduced an
exciting new range of Polycarbonate luggage, popularly known as PC/Hard
Zippered Case. PC luggage is light weight & durable. The material
provides exciting opportunities to integrate fashion cues in the
product. The Company has also launched new product categories such as
Laptop Bags, Backpacks, etc., that are doing very well in the market,
especially in CSD & Hypermarket channels. The Company has improved its
presence in Hypermarkets by increasing the count of point of sales in
larger retail chains like Big Bazaar, D' Mart, Reliance Retail, Bharati
Walmart, Aditya Birla Retail, Vishal, TESCO etc. Company has also begun
its ecommerce play with listing & selling the products in marketplace
websites such as amazon.in, snapdeal.com, myntra.com, jabong.com &
flipkart.com
The Company has opened almost 50 exclusive retail stores that will
continue to improve the retail footprint of its own Safari branded
exclusive stores in the coming years, too.
Considering the above, the outlook for the current year looks bright,
except for unfavourable impact, on account of rupee depreciation or
other unforeseen circumstances, if any.
2. DIVIDEND
The Board of Directors is pleased to recommend for your approval, a
dividend of Rs. 1/- per equity share of Rs. 10/- each for the financial
year 2014-15. The total payout, if the dividend is approved by the
Members at the Meeting, will be Rs. 47.96 lacs, including a dividend
distribution tax of Rs. 8.1 1 lacs.
3. TRANSFER TO RESERVES:
It is proposed to transfer a sum of Rs. 200 lacs to the General
Reserves of the Company.
4. FIXED DEPOSITS:
During the year under review, the Company has not accepted any fixed
deposits under the provisions of the Companies Act, 2013 read with
rules made thereunder and as such no amount on account of principal or
interest on deposits was outstanding as on the date of the Balance
Sheet.
The Company has repaid all fixed deposits which were accepted prior to
the commencement of the Companies Act, 2013. There has not been any
default in payment of interest or repayment of the fixed deposits.
Details in terms of Rule 8 of the Companies (Accounts) Rules, 2014:
a) Deposits accepted during the year : Nil
b) Remained unpaid or unclaimed as at the end of the year: Nil
c) Whether there has been any default in repayment of deposits or
payment of interest thereon during the year and if so, number of such
cases and the total amount involved:
i. At the beginning of the year : Nil
ii. Maximum during the year : Nil
iii. At the end of the year : Nil
d) Details of deposits which are not in compliance with the
requirements of Chapter V of the Companies Act 2013: Nil
5. TRANSFER TO INVESTORS' EDUCATION AND PROTECTION FUND:
In accordance to the provisions of Section 205A and 205 C of the
Companies Act, 1956, the relevant amounts which have remained unpaid
and unclaimed for a period of seven years have been transferred to the
Investor Education and Protection Fund.
Details of the unpaid and unclaimed dividend amount lying with the
Company as on 28th July 2014 have been uploaded on the Company's
website (www.safari.in) and also on the website of the Ministry of
Corporate Affairs.
6. ISSUE OF FURTHER CAPITAL:
During the year under review, the Company has raised a sum of Rs. 49.80
crores through issue of 8,30,000 equity shares of Rs. 10/- each at a
premium of Rs. 590/- per share, on preferential basis to Tano India Pvt
Equity Fund II.
The Company has also issued 3,30,000 convertible share warrants to Mr.
Sudhir Jatia, the Promoter of the Company. Each share warrant is
convertible into one equity share of Rs. 10/- each at a premium of Rs.
590/- per share. As on 31st March 2015, out of the above share
warrants, 1,65,000 share warrants have been converted into fully paid
equity shares.
With the infusion of funds, your Company is financially strengthened to
seize future emerging business opportunities.
7. OVERSEAS REPRESENTATIVE OFFICE:
During the year under review, the Company has opened an overseas
representative office in Shanghai, China which will bring in cost
benefits and improved quality in respect of procurement of products
from China.
8. DIRECTORS:
a) APPOINTMENTS:
In terms of the provisions of the Companies Act 2013, and on
recommendation of Nomination and Remuneration Committee, it is proposed
to appoint Mr. Hetal Gandhi, Additional Director (holding DIN:
00106895) of the Company, as a Non-Executive, Non-Independent Director
of the Company, subject to retirement by rotation and Mrs. Vijaya
Sampath, Additional Director (DIN: 0064 1110) of the Company, as an
Independent Director for a term of 5 years wef 5th August 2015.
A brief profile of Mr. Hetal Gandhi and Mrs. Vijaya Sampath have been
given in the Notice convening the Annual General Meeting
b) RETIREMENT BY ROTATION:
In accordance with the provisions of Section 152 of the Companies Act,
2013 and the Company's Articles of Association, Mr. Anujj Patodia,
Director of the Company, retires by rotation at the ensuing Annual
General Meeting and being eligible, offers himself for reappointment.
The aforesaid reappointment forms part of the Notice of the Thirty
Fifth Annual General Meeting and the Directors recommend the same for
your approval.
c) INDEPENDENT DIRECTORS:
The Company has received declaration from all the Independent Directors
of the Company confirming that they fulfill the criteria of
independence specified in Section 149(6) of the Companies Act, 2013 and
under Clause 49 of the Listing Agreement.
Terms and conditions of appointment of Independent Directors are placed
on the website of the company.
d) REMUNERATION POLICY:
The Company has adopted a Policy on Nomination and Remuneration for
Directors, Key Managerial Personnels and Other Employees. The said
policy includes criteria for determining qualifications, positive
attributes, independence of a director and other matters provided under
Section 178 (3) of the Companies Act 2013.
The said Policy is annexed herewith as Annexure A. The remuneration
paid to the Directors is as per the terms laid out in the Nomination
and Remuneration policy of the Company.
e) MANNER OF FORMAL ANNUAL EVALUATION BY THE BOARD OF ITS OWN
PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS:
In compliance with the Companies Act 2013, the performance evaluation
of the Board and that of its Committees and Individual Directors have
been carried out during the year under review.
The performance evaluation of the Board, Committees, the Chairman and
the non-independent directors was carried out as per the criteria
adopted by the Board. The performance evaluation was based on various
parameters such as fitness of the Directors, their commitment towards
fulfilling their obligations as a Director, the qualitative aspects in
the functioning of the Board and Committees, interpersonal skills and
such other criteria. The evaluation of the Independent Directors was
carried out by the entire Board excluding the Independent Director
being evaluated.
The Directors were satisfied with the evaluation results, which
reflected the overall engagement of the Board and its Committees with
the Company.
f) NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS DURING THE YEAR:
During the year under review, the Board of Directors has held six (6)
Board meetings. The gap between two Board Meetings was within the
period prescribed by the Companies Act 2013.
9. COMPOSITION OF AUDIT COMMITTEE:
The Audit Committee of the Board of Directors of the Company comprises
of the following members:
Sr no. Name of Director Category
1 Dr. Shailesh Mehta- Independent
Chairman
2 Mr. Punkajj Lath Independent
3 Mr. Hetal Gandhi Non-Executive Non-Independent
Recommendations of the Audit Committee not accepted by the Board of
Directors of the company, along with the reasons therefor: Nil
10. KEY MANAGERIAL PERSONNEL:
In accordance to the provisions of Section 203 of the Companies Act,
2013, Mr. Sudhir Jatia, Chairman and Managing Director, Mr. Virendra
Gandhi, Chief Financial Officer and Ms. Jigna Parikh, Company Secretary
of the Company, were designated as the Key Managerial Persons of the
Company.
11. PARTICULARS OF EMPLOYEES:
Information pursuant to Section 197 of the Companies Act, 2013 and Rule
5(1) & (2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 are annexed herewith as Annexure B and form part
of this Report.
12. DIRECTORS' RESPONSIBILITY STATEMENT PURSUANT TO SECTION 134 OF THE
COMPANIES ACT, 2013:
The Directors hereby confirm:
a) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures.
b) 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.
c) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act 2013 for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.
d) that the Directors have prepared the annual accounts on a going
concern basis.
e) that the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively.
f) that the Directors have devised proper systems to ensure compliance
with the provisions of all applicable laws and that such systems were
adequate and operating effectively.
13. AUDITORS:
M/s. Bansi S. Mehta & Co., Chartered Accountants, Mumbai, (Firm
Registration no. 10099 1W) the Statutory Auditors of the Company hold
office till the conclusion of ensuing the Annual General Meeting. They
have confirmed their eligibility to the effect that their
re-appointment, if made, would be within the prescribed limits under
the Act and that they are not disqualified for re-appointment.
The Directors recommend their reappointment by the Members at the
forthcoming Annual General Meeting.
The notes referred to in the Auditor's Report are self-explanatory and
do not call for further explanations. The Auditor's Report does not
contain any qualification, reservation or adverse remark.
14. SECRETARIAL AUDIT REPORT FROM M/S. NINAD AWACHAT & ASSOCIATES, THE
SECRETARIAL AUDI- TOR OF THE COMPANY:
In accordance to the provisions of Section 204 of the Companies Act,
2013 and the Companies (Appointment and Remu- neration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s. Ninad Awachat &
Associates, Practicing Company Secretaries (Membership No. 26995 & C P
No. 9668) to conduct Secretarial Audit for the financial year 2014-15.
The Report of the Secretarial Auditor is annexed hereto as Annexure C.
The said Report does not contain any qualification, reservation or
adverse remark.
15. SUBSIDIARIES:
a) During the year under review, the Company has formed a wholly owned
subsidiary of the Company namely Safari Lifestyles Limited.
b) The Report on the performance and financial position of the
aforesaid subsidiary in Form AOC-1 pursuant to first proviso to
sub-section (3) of Section 129 of the Companies Act, 20 13 and Rule 5
of Companies (Accounts) Rules, 2014 is attached as Annexure D to this
Report.
c) During the year under review, the Company did not have any associate
companies or joint ventures.
16. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR
COURTS OR TRIBU- NALS IMPACTING THE GOING CONCERN STATUS AND THE
COMPANY'S OPERATIONS IN FUTURE:
During the year under review, there have not been any significant and
material orders passed by the Regulators/Courts/ Tribunals which will
impact the going concern status and operations of the Company in
future.
17. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH
REFERENCE TO THE FINANCIAL STATEMENTS:
The Board of Directors has formulated a policy on Internal Financial
Control to ensure orderly and efficient conduct of the business of the
Company including the Company's policies. The said Policy is adequate
and is operating effectively.
18. RISK MANAGEMENT POLICY:
The Board has adopted a Policy on Risk Management to mitigate inherent
risks and help accomplish the growth plans of the Company. The Risk
Management Policy incorporates a systematic application of policies,
procedures and checks to identify potential risks and lessen their
impact on Company. The Board reviews the same periodically and suggests
measures to mitigate and control risks.
19. CHANGE IN NATURE OF BUSINESS, IF ANY:
During the year under review, there has not been any change in the
nature of the business of the Company.
20. MATERIAL CHANGES AND COMMITMENTS, AFFECTING THE FINANCIAL POSITION
OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL
YEAR & THE DATE OF REPORT: There have not been any material
changes/commitments affecting the financial position of the Company
from the end of the financial year till the date of this Report.
21. LISTING OF SHARES:
The equity shares of the Company are listed on the BSE Ltd, situated at
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001.
The Company has paid the necessary listing fees to the BSE Ltd as
prescribed under the Listing Agreement.
22. PARTICULARS OF CONTRACTS OR ARRANGMENTS WITH RELATED PARTIES:
During the year under review, all contracts/arrangements with related
parties referred to in Section 188(1) of the Companies Act, 2013 were
in the ordinary course of business and on an arm's length basis.
Details of the same are given in Form AOC-2 as annexed herewith as
Annexure E.
23. VIGIL MECHANISM-WHISTLE BLOWER'S POLICY:
The Board has formulated a Whistle Blower's Policy to provide a secure
environment in the Company and to encourage all employees and Directors
of the Company to report unethical, unlawful or improper practices,
acts or activities in the Company and to prohibit managerial personnel
from taking any adverse action against those employees who report such
practices in good faith. The Policy is also uploaded on the Company's
website.
24. PARTICULARS OF LOAN, GUARANTEE & INVESTMENTS UNDER SECTION 186 OF
THE COMPANIES ACT 2013:
During the year under review, the Company has not given any loan or
guarantee. The Company has invested in the Company's wholly owned
subsidiary, Safari Lifestyles Ltd. and in mutual funds. The said
investments are within the limits specified under section 186 of the
Companies Act 2013. More details of the same are provided in the notes
to the Standalone Financial Statements (Note no. 12 and 14 of the
Standalone Financial Statements)
25. DISCLOSURE OF LOANS /ADVANCES AND INVESTMENTS IN ITS OWN SHARES BY
THE LISTED COMPANIES, THEIR SUBSIDIARIES, ASSOCIATES ETC.
During the year under review, neither the Company nor its subsidiary,
Safari Lifestyles Ltd, has given any loans or advances for investment
in its own shares.
26. EXTRACT OF ANNUAL RETURN:
An extract of the Annual Return in terms of Section 92(3), 134(3)(a) of
the Companies Act, 2013 read with rule 12(1) of the Companies
(Management and Administration) Rules, 2014 is annexed herewith as
Annexure F.
27. CONSERVATION OF ENERGY, ETC.:
Details on Conservation of Energy, Technology Absorption and Foreign
Exchange Earnings and Outgo, etc. are given in the Annexure G hereto.
28. INFORMATION UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
In compliance with the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013, your
Company has formed a Committee to look into such cases as and when they
arise. During the year under review, no cases were filed with the
Committee.
29. ACKNOWLEDGEMENT:
Your Directors wish to place on record their sincere thanks to all the
employees of the Company for their continuing commitment and
dedication. Further, the Directors would also like to express their
gratitude for the continued support of all the stakeholders such as
banks, financial institutions, various State and Central Government
authorities, customers, vendors and last but not the least our valued
shareholders, for all their support and trust reposed in the Company.
Regd. Office: ON BEHALF OF THE BOARD OF DIRECTORS
403 A wing, The Qube, For SAFARI INDUSTRIES (INDIA)
CTS no. 1498, A/2, MV Road, LIMITED
Behind Taj Flight Kitchen,
Marol, Andheri (E), SUDHIR JATIA
Mumbai-400059. Chairman & Managing Director
Phone: 91 -22-4038 1888,
Fax: 91 -22-4038 1850
CIN: L25200MH1980PLC022812,
Website: www.safari.in
Date: 15th May, 2015
Mar 31, 2014
The Members,
The Directors are pleased to present the Thirty Fourth Annual Report
on the business and operations of the Company together with the Audited
Statement of Accounts for the year ended as on 31st March, 2014.
1. FINANCIAL RESULTS
2013-14 2012-13
Rs. in Lacs Rs. in Lacs
Total Revenue 16705.23 9411.91
Profit before Interest,
Depreciation, Tax , exceptional
items and exchange loss 1086.01 479.00
Exchange Loss 375.97 55.55
Interest 500.53 305.72
Depreciation 127.85 43.23
Profit before Tax 81.66 74.50
and Exceptional Items
Less:Exceptional Items 27.70 188.72
Profit / (Loss) from ordinary
activities before tax 53.96 (114.22)
Tax Expenses:
Current Tax Nil Nil
Deferred Tax (42.36) 51.96
Profit/(Loss) after Tax 11.60 (62.26)
Profit brought forward
from previous year 387.17 449.43
Profit available 398.78 387.17
for appropriation
Appropriations:
Transfer to General Reserve Nil Nil
Proposed Dividend Nil Nil
Tax on Proposed Dividend Nil Nil
Balance Carried to B/Sheet 398.78 387.17
2. PERFORMANCE REVIEW
Total Revenue of the Company for the financial year 2013-14 stood at
Rs.16705.23 lakhs as against last year''s Rs. 9411.91 lakhs. Profit before
exchange loss is at Rs. 1086.01 lakhs as against Rs. 479.00 lakhs for the
previous year. The Profit before extraordinary and exceptional items
was Rs. 81.66 lakhs as against Rs. 74.50 lakhs of the previous year. The
Net Profit for the year stood at Rs. 11.60 lakhs as against the net loss
of Rs. 62.26 lakhs of last year.
3. DIVIDEND
In view of marginal profit for the current year and in order to
conserve reserves for the future growth of the Company, the Board of
Directors do not recommend any dividend on the equity shares of the
Company for the year ended 31st March 2014.
4. OUTLOOK FOR THE CURRENT YEAR
The demand for luggage has grown significantly with the con- sumer
trend shifting towards new and trendy designed products. The focus of
the Company has always been on fulfilling the needs of the customers
and hence keeping in mind the aforesaid trend, the Company is
constantly working towards offering better prod- ucts and value for
money to its customers
As planned, the Company has successfully launched the poly carbonate
luggage range in the month of March, 2014. Poly Carbonate Plastic
luggage is the new trend in the luggage industry and is increasingly
gaining popularity. The Company also introduced new product lines such
as laptop bags, back packs, etc. which are fast selling items. The
Company is doing well in hyper markets through its tie ups with chains
such as D''mart, Reliance Retail, Big Bazaar, Bharti Walmart, Aditya
Birla Retail, etc.
Further it is also exploring various new channels for marketing its
products.
The Company has also opened almost 50 exclusive retail stores and plans
to add further in the years to come.
In view of the above, the outlook for the current year looks quite
positive, excepting unfavourable impact on account of depreciation of
rupee, if any or other unforeseen circumstances.
5. FIXED DEPOSITS
During the year under review, with effect from April 2013, the Company
has stopped inviting fresh Fixed Deposits.
Fixed deposits outstanding from the shareholders and public as on 31st
March 2014, aggregated to Rs. 59.55 lakhs.
As of 31st March 2014, all claimed deposits have been paid. Also, there
is no default in payment of interest and repayment of matured deposits.
In accordance to the provisions of Section 73 of the Companies Act,
2013, the Company will repay the outstanding fixed deposits which were
accepted before the commencement of the Companies Act, 2013 within one
year from its commencement i.e. by 31st March 2015 or the due date of
the fixed deposits, whichever is earlier.
6. DIRECTORS
In terms of the provisions of the Companies Act 2013, it is proposed to
appoint Dr. Shailesh Mehta and Mr. Punkajj Lath, Directors of the
Company and Mr. Dalip Sehgal, Addi- tional Director of the Company, as
Independent Directors for a term of 5 years w.e.f. 28th July 2014.
Further it is proposed to appoint Mr. Anujj Patodia, Director of the
Company, as a Non-executive, Non-independent Director of the Company,
subject to retirement by rotation. The Directors recommend the
aforesaid appointments at the ensuing Annual General Meeting.
During the year under review, Mr. Amul Mehta had tendered his
resignation from the Directorship of the Company on account of his
health issues.
The Board places on record their appreciation for the valuable service
rendered by Mr. Amul Mehta during his tenure as Director of the
Company.
7. DIRECTORS'' RESPONSIBILITY STATEMENT PUR- SUANT TO SECTION 217(2AA)
OF THE COMPANIES ACT, 1956
The Directors hereby confirm :
a) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures.
b) that the Directors have selected such accounting policies and
applied them consistently and made judgments and esti- mates 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.
c) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act 1956 for safe guard-
ing the assets of the Company and for preventing and detecting fraud
and other irregularities.
d) the Directors have prepared the annual accounts on a going concern
basis.
8. COST AUDIT
The Board has appointed M/s. Y.R. Doshi & Co., Cost Ac- countants for
conducting the audit of the cost records of the Company for the
financial year 2013-14.
9. AUDITORS
M/s. Bansi S. Mehta & Co., Chartered Accountants, Mumbai, (Regn no.
100991W) the Statutory Auditors of the Company retire at the ensuing
Annual General Meeting. They have submitted a certificate in accordance
with the applicable provisions of the Companies Act 2013, confirming
their eligibility and willingness for re-appointment.
The Directors recommend their reappointment by the Mem- bers at the
forthcoming Annual General Meeting.
10. COMMENT ON AUDITORS'' REMARKS
Note No. 2 to 40 of the Accounts referred to in the Auditors'' Report
are self-explanatory and do not call for further explana- tions and may
be treated as adequate compliance of Section 217 (3) of the Companies
Act, 1956.
11. PARTICULARS OF EMPLOYEES
During the year under review, there was no employee covered under the
provisions of Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975.
12. LISTING OF SHARES
The equity shares of the Company are listed on the Bombay Stock
Exchange, situated at Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai
400 001.
The Company has paid necessary listing fees to the Bombay Stock
Exchange as prescribed as per listing agreement.
13. CONSERVATION OF ENERGY, ETC.
As required by the Companies (Disclosure of Particulars in the Report
of the Board of Directors) Rules, 1988, the re-
port on Conservation of Energy, Technology Absorption and Foreign
Exchange Earnings and Outgo, etc. is given in the annexure forming part
of this Report.
14. INFORMATION UNDER THE SEXUAL HARASS- MENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013: In compliance with
the provisions of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013, your Company has
formed a Committee to look into such cases as and when they arise.
During the period under review, no cases were filed with the Committee.
15. ACKNOWLEDGEMENT
Your Directors wish to place on record their sincere thanks to all the
employees of the Company for their continuing commitment and
dedication. Further, the Directors would also like to express their
gratitude for the continued support of all the stakeholders such as
banks, financial institutions, various State and Central Government
authorities, customers, vendors and last but not the least our valued
shareholders, for all their support and trust reposed in the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
Place: Mumbai SUDHIR JATIA
Date : 10th May, 2014 Chairman &Managing Director
Mar 31, 2013
To The Members,
The Directors are pleased to present the Thirty Third Annual Report on
the business and operations of the Company together with the Audited
Statement of Accounts for the year ended as on 31st March, 2013.
1. FINANCIAL RESULTS
2012-13 2011-12
Rs. in Lacs Rs. in Lacs
Revenue from Operations
& Other Income 9,411.91 6,205.71
Gross Profit 423.45 257.62
Interest 305.72 283.09
Depreciation 43.23 40.02
Profit/ (Loss) before Tax 74.50 (65.49)
and Exceptional Items
Less:Exceptional Items
Expense/ (Income) 188.72 Nil
Profit / (Loss) from ordinary (114.22) (65.49)
activities before tax
Tax Expenses:
Current Tax Nil Nil
Deferred Tax 51.96 (5.41)
Profit/(Loss) after Tax (62.26) (70.90)
Profit brought forward
from previous year 449.43 520.33
Profit available 387.17 449.43
for appropriation
Appropriations:
Transfer to General Reserve Nil Nil
Proposed Dividend Nil Nil
Tax on Proposed Dividend Nil Nil
Balance Carried to B/Sheet 387.17 449.43
2. PERFORMANCE REVIEW
The Revenue from Operations and Other Income of the Company for the
financial year 2012-13 stood at Rs. 9412 lacs as against last year''s Rs.
6206 lacs. The Profit before exceptional items was Rs. 74 lacs as against
a loss of Rs. 65 lacs of the previous year. The Net loss for the year
stood at Rs. 62 lacs as against the net loss of Rs. 71 lacs of the previous
year.
3. DIVIDEND
In view of the losses for the year and also in order to conserve
reserves for the future growth of the Company, the Board of Directors
do not recommend any dividend on the equity shares of the Company for
the year ended 31st March 2013.
4. OUTLOOK FOR THE CURRENT YEAR
In recent times the demand for luggage has grown significantly with the
consumer trend shifting towards new and trendy designed products. The
focus of the Company has always been on fulfilling the needs of the
customers and hence keeping in mind the aforesaid trend, the Company is
constantly working towards offering better products and value for money
to its customers.
The Company is currently in the process of setting up a Poly Carbonate
Plastic luggage project at its factory at Halol, Gujarat, which will
facilitate manufacturing of Poly Carbonate Plastic luggage. Poly
Carbonate Plastic luggage is the new trend in the luggage industry and
is increasingly gaining popularity. Going forward, the Company also
proposes to focus on introducing new product lines such as laptop bags,
back packs, etc. which are fast selling items. The Company is also
exploring various new channels of marketing and retail and has tied up
with renowned hypermarket chains such as D''mart, Reliance Retail, Big
Bazaar, Bharti Walmart, etc.
In view of the above, the outlook for the current year looks quite
positive, excepting unfavourable impact, if any, on account of
depreciation of rupee or other unforeseen circumstances.
5. FIXED DEPOSITS
During the year under review, the Company has invited fresh Fixed
Deposits from its shareholders and general public. Fixed deposits
accepted from the shareholders and public and outstanding as on 31st
March 2013, aggregated to Rs. 366.05 Lacs.
As of 31st March 2013, all claimed deposits have been paid. Also, there
is no default in payment of interest and repayment of matured deposits.
Unclaimed deposits as on 31st March 2013 were Rs. 2,00,000/-which have
since date been paid.
6. TRANSFER TO INVESTORS'' EDUCATION AND PROTECTION FUND
In accordance to the provisions of Section 205 C of the Companies Act,
1956, the Company has transferred the unclaimed dividend relating to
the financial year 2004-05 to the Investor Education and Protection
Fund.
7. DIRECTORS
In terms of the provisions of the Companies Act 1956 and the Articles
of Association of the Company, Shri. Shailesh Mehta and Shri. Punkajj
Lath retire by rotation at the ensuing Annual General Meeting and are
eligible for reappointment.
8. DIRECTORS'' RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217(2AA) OF
THE COMPANIES ACT, 1956
The Directors hereby confirm :
a) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures.
b) 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.
c) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.
d) that the Directors have prepared the annual accounts on Âa going
concern'' basis.
9. COST AUDIT
In accordance with the Cost Audit Branch Order dated 6th November 2012
read with Section 233B of the Companies Act, 1956 and the Companies
(Cost Accounting Records) Rules, 2011, the Company is required to get
its cost accounting records audited by a cost auditor in respect of
financial year commencing on or after 1st January 2013. The Company
will accordingly comply with the same. The compliance certificate of
the Cost Auditors in respect of Cost Accounting records for the year
ended as on 31st March 2013 will be submitted to the Central Government
in due course.
10. AUDITORS
M/s. Bansi S. Mehta & Co., Chartered Accountants, Mumbai, the Statutory
Auditors of the Company retire at the ensuing Annual General Meeting.
They have submitted a certificate in accordance with Section 224(1)(b)
of the Companies Act, 1956, confirming their eligibility and
willingness for re-appointment. The Directors recommend their
reappointment by the Members at the forthcoming Annual General Meeting.
11. COMMENT ON AUDITORS'' REMARKS
Note No. 24 to 38 of the Accounts referred to in the Auditors'' Report
are self-explanatory and do not call for further explanations and may
be treated as adequate compliance of Section 217 (3) of the Companies
Act, 1956.
12. PARTICULARS OF EMPLOYEES
During the year under review, there was no employee covered under the
provisions of Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975.
13. LISTING OF SHARES
The equity shares of the Company are listed on the Bombay Stock
Exchange, situated at Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai
400 001.
The Company has paid necessary listing fees to the Bombay Stock
Exchange as prescribed as per listing agreement.
14. CONSERVATION OF ENERGY, ETC.
As required by the Companies (Disclosure of Particulars in the Report
of the Board of Directors) Rules, 1988, the report on Conservation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo,
etc. is given in the annexure forming part of this Report.
15. ACKNOWLEDGEMENT
Your Directors wish to place on record their sincere thanks to all the
employees of the Company for their continuing commitment and
dedication. Further, the Directors would also like to express their
gratitude for the continued support of all the stakeholders such as
banks, financial institutions, various State and Central Government
authorities, customers, vendors and last but not the least our valued
shareholders, for all their support and trust reposed in the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
SUDHIR JATIA
Managing Director
ANUJJ PATODIA Director
Place: Mumbai Dated : 13th May, 2013
Mar 31, 2012
The Directors present the 32nd Annual Report together with Audited
Statement of Accounts of the company for the year ended 31st March,
2012.
1. FINANCIAL RESULTS
YEAR ENDED YEAR ENDED
31.03.2012 31.03.2011
RS. LACS RS. LACS
Sales, Income from
Operations & Other Income 6205.71 6711.10
Gross profit 257.62 671.38
Interest 283.09 250.97
Depreciation 40.02 36.16
Profit/(Loss) before Tax (65.49) 384.25
Less:Tax provisions
Current Tax - (109.91)
Deferred tax (5.41) (5.82)
Taxes of earlier years - (3.90)
Profit/(Loss) after Tax (70.90) 264.62
Profit brought forward
from previous year 520.34 369.05
Profit available 449.44 633.67
for appropriation
APPROPRIATIONS:
Transfer to General Reserve - 26.46
Proposed Dividend - 74.75
Tax on Proposed Dividend - 12.13
Balance Carried to B/Sheet 449.44 520.33
2. DIVIDEND :
In view of losses for the year your directors do not recommend any
dividend for the year under review.
3. PERFORMANCE
Sales and other income decreased by 7.52% from Rs. 6711.10 lakhs of
the previous year to Rs.6205.71 lakhs. The drop in sales is mainly on
account of 30% de growth in sales of Hard Luggage due to falling demand.
However, the encouraging part is that the Company has reported a growth
of more than 40% in soft luggage sales over previous year.
The company made a gross profit of Rs 257.62 lacs as against Rs.671.38
lacs in the previous year and incurred a net loss of Rs. 70.90 lacs for
the current year as against profit of Rs.264.62 lacs in the previous
year. The loss for the year is mainly on account of exchange loss of
Rs. 130.87 lacs and significant increase in raw material cost due to
rising commodity prices. As on 31st March, 2012, the Re- serves and
Surplus of your Company are at Rs.985.04 lacs.
4. OUTLOOK FOR THE CURRENT YEAR
The outlook is positive as demand for Travel Goods remains strong.
However, margins are likely to be under pressure due to steep
depreciation of the Rupee. Barring unforeseen circumstances, the
Company hopes to achieve improvement in Sales and Profitability as
there is an increasing demand for soft luggage and your company is well
equipped to grab huge potential in this area by maximizing its share of
this growth.
5. FIXED DEPOSITS
Fixed Deposits from public and shareholders as on 31st March 2012,
aggregated to Rs. 189.90 lakhs. The Company has paid interest on all
fixed deposits due and claimed.
6. DIRECTORS
Pursuant to execution of share purchase agreement and completion of
open offer made as per SAST, 2011 Mr. Sudhir M. Jatia (Promoter) and
Mrs. Neeti S. Jatia (PAC) have directly and indirectly acquired, on
18th April, 2012, 22,95,933 equity shares of the company, aggregating
to 76.79% of the paid up capital of the Company.
Shri Niraj Goyal, Shri Mulchand K. Sheth, Shri Yugesh S. Mehta and Dr.
Jagdish N. Sheth have resigned due to their pre-occupation.
Your Directors place on record their appreciation of valuable services
rendered and guidance given by them during their tenure as Directors of
the Company.
Mr. Sudhir Jatia, Mr. Anujj Patodia and Mr. Punkajj Lath were appointed
as Additional Directors.
Mr. Amul S. Mehta relinquished his position as Managing Director and
Mr. Sudhir Jatia has been appointed as Managing Director of the
Company.
7. AUDITORS
M/s. Bansi S. Mehta & Co., Chartered Accountants, Mumbai, Auditors of
the Company, hold office until the conclusion of the ensuing Annual
General Meeting. The Company has received certificate from Auditors to
the effect that their reappointment, if made, would be within the
prescribed limit under Section 224 (IB) of the Companies Act, 1956.
8. COMMENT ON AUDITORS' REMARKS
Note Nos. 24 to 39 on the accounts and referred to in the Auditors'
Report are self-explanatory and do not call for further explanations
and may be treated as adequate compliance of Section 217 (3) of the
Companies Act, 1956.
9. SECRETARIAL COMPLIANCE CERTIFICATE
Secretarial Compliance Certificate pursuant to Section 383A of the
Companies Act, 1956, is attached herewith.
10. COST RECORDS
The Company is in the process of maintaining the cost records
prescribed under Section 209 (1) (d) of the Companies Act, 1956 read
with Notification dated 3rd June, 2011 issued by Ministry of Corporate
Affairs pre- scribing The Companies (Cost Accounting Records) Rules,
2011. Accordingly, the company will comply with the provisions of the
said section and notification as applicable to it.
11. ACKNOWLEDGEMENT
Your Directors would like to thank its customers for their confidence
in company's products and services, employees for their dedication
and teamwork, Company's bankers for their co-operation and for the
trust reposed by them in the Company.
12.DIRECTORS' RESPONSIBILITY STATEMENT PURSU- ANT TO SECTION 217(2AA)
OF THE COMPANIES ACT, 1956
The Directors hereby confirm :
a) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures.
b) 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.
c) that the directors have taken proper and sufficient care fertile
maintenance of adequate accounting records in accordance with the
provisions of this Act for safe guarding the assets of the company
and for preventing and detecting fraud and other irregularities.
d) that the directors have prepared the annual accounts on 'a going
concern' basis.
13. LISTING OF SHARES
The Equity shares of the Company are listed on the Bombay Stock
Exchange, situated at Phiroze Jeejeebhoy Towers, Dalai Street, Mumbai
400 001.
The Company has paid necessary listing fees to The Bombay Stock
Exchange as prescribed as per listing agreement.
14. CONSERVATION OF ENERGY, ETC.
As required by the Companies (Disclosure of Particulars in the Report
of the Board of Directors) Rules, 1988, the Re- port on Conservation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo,
etc. is given in the annexure forming part of this Report.
ON BEHALF OF THE BOARD OF DIRECTORS
Mumbai A. S. MEHTA
Dated : 29th May, 2012 Chairman
Mar 31, 2011
The Directors present the 31st Annual Report together with Audited
Statement of Accounts of the company for the year ended 31st March,
2011.
1. FINANCIAL RESULTS
YEAR ENDED YEAR ENDED
31.03.2011 31.03.2010
RUPEES RUPEES
Gross Operating Profit 4,27,99,896 4,00,31,379
Less: Depreciation 36,15,831 42,93,618
Less VRS Expenses of
the Current Year 7,59,208 51,97,292
Operating Profit
for the year 3,84,24,857 3,05,40,469
Less Deferred Revenue Expenditure
of earlier years w/off à 59,84,865
Profit Before Tax 3,84,24,857 2,45,55,604
Provision for Taxation:
Current Tax 1,09,90,829 81,80,467
Deferred Tax 5,81,527 (24,98,342)
Taxes of earlier years 3,90,084 4,29,647
Profit after Taxes 2,64,62,417 1,93,03,126
Profit brought forward
from previous year 3,69,05,146 2,65,28,634
Profit available for
Appropriation 6,33,67,563 4,58,31,760
APPROPRIATIONS:
Transfer to General Reserve 26,46,242 19,30,313
Proposed Dividend 74,75,000 59,80,000
Tax on Proposed Dividend 12,12,819 10,16,301
Balance Carried to B/Sheet 5,20,33,502 3,69,05,146
Total 6,33,67,563 4,58,31,760
2 DIVIDEND
Directors recommend a dividend of Rs.2.50 per share of Rs.10/-each for
the year ended 31.03.2011, subject to approval of the share holders at
the forth coming Annual General Meeting.
3. PERFORMANCE
Sales and other income increased by robust 17.68% from Rs.6619.11 lakhs
to Rs.7789.07 lakhs in the previous year. The Company has reported an
increase in sales in both Moulded and Soft Luggage. The net profit is
Rs.264.62 lakhs after providing depreciation of Rs.36.16 lakhs and
provi- sions of tax including deferred tax liability of Rs.119.63
lakhs. There has been substantial improvement in the profitabil- ity
during the year under review, despite significant increase in raw
material cost in the last six months due to rising commodity prices.
4. OUTLOOK FOR THE CURRENT YEAR
The Outlook is positive as demand for travel goods remains robust. The
Company hopes to achieve im- provement in Production, Sales and
Profitability in the current year, barring unforeseen circumstances.
5. FIXED DEPOSITS
Fixed Deposits from public and shareholders as on 31st March 2011,
aggregated to Rs.230.72 lakhs. The Company has paid interest on all
fixed deposits due and claimed.
6. DIRECTORS
In accordance of provisions of the Companies Act, 1956, and Articles of
Association of the Company, Shri Mulchand K. Sehth and Shri Niraj
Goyal, Directors of the Company, retire by rotation at the ensuring
Annual General Meeting, but being eligible, offer themselves for
reappointment.
7. AUDITORS
M/s. Bansi S. Mehta & Co., Chartered Accountants, Mumbai, Auditors of
the Company hold office until the conclusion of the ensuing Annual
General Meeting. The Company has received certificate from Auditors to
the effect that their reappointment, if made, would be within the
prescribed limit under Section 224 (1B) of the Com- panies Act, 1956.
8. COMMENT ON AUDITORS REMARKS
Notes contained in Schedule No. 13 of the Accounts and referred to in
the Auditors Report are self explanatory and do not call for further
explanations and may be treated as adequate compliance of Section 217
(3) of the Companies Act, 1956.
9. SECRETARIAL COMPLIANCE CERTIFICATE
Secretarial Compliance Certificate pursuant to Section 383A of the
Companies Act, 1956, is attached herewith.
10. ACKNOWLEDGEMENT
Your Directors would like to thank the customers for their con- fidence
in companys products and services, employees for their dedication and
teamwork, Companys bankers for their co-operation and the trust
reposed by them in the Company.
11. DIRECTORS RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217(2AA) OF
THE COMPANIES ACT, 1956
The Directors hereby confirm :
a) that in the preparation of the annual accounts, the ap- plicable
accounting standards has been followed along with proper explanation
relating to material departures.
b) that the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year and of the profit or
loss of the company for that period.
c) that the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safe guard- ing the assets of the company
and for preventing and detecting fraud and other irregularities.
d) that the directors had prepared the annual accounts on a going
concern basis.
12. LISTING OF SHARES
The Equity shares of the Company are listed on the Bombay Stock
Exchange,situated at Phiroze Jeejeebhoy Towers, Dalai Street, Mumbai
400 001.
The Company has paid necessary listing fees to the said The Bombay
Stock Exchange as prescribed as per listing agreement.
13. CONSERVATION OF ENERGY, ETC.
As required by the Companies (Disclosure of Particulars in the Report
of the Board of Directors) Rules, 1988, the Re- port on Conservation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo,
etc. Is given in the annexure forming part of this Report.
BY ORDER OF THE BOARD OF DIRECTORS
A. S. MEHTA
Chairman
Mumbai
Dated : 30th May, 2011
Mar 31, 2010
The Directors present the 30th Annual Report together with Audited
Statement of Accounts of the company for the year ended 31st March,
2010.
1. FINANCIAL RESULTS
YEAR ENDED YEAR ENDED
31.03.2010 31.03.2009
RUPEES RUPEES
Gross Operating Profit 4,00,31,379 1,02,45,134
Less: Depreciation 42,93,618 62,39,704
Less VRS Expenses of
the Current Year 51,97,292 11,66,333
Operating Profit
for the year 3,05,40,469 28,39,097
Less Deferred Revenue
Expenditure
of earlier years w/off 59,84,865 14,03,292
Profit Before Tax 2,45,55,604 14,35,805
Provision for Taxation:
Current Tax 81,80,467 19,13,182
Fringe Benefit Tax -- 5,79,090
Deferred Tax (24,98,342) (12,90,085)
Taxes of earlier years 4,29,647 (97,315)
Profit after Taxes 1,93,03,126 1,36,303
Profit brought forward
from previous year 2,65,28,634 2,63,92,331
Profit available for
Appropriation 4,58,31,760 2,65,28,634
APPROPRIATIONS:
Transfer to General Reserve 19,30,313 --
Proposed Dividend 59,80,000 --
Tax on Proposed Dividend 10,16,301 --
Balance Carried to B/Sheet
3,69,05,146 2,65,28,634
Total 4,58,31,760 2,65,28,634
2. DIVIDEND
Directors recommend a dividend of Rs.2/- per share of Rs.l0/-each for
the year ended 31.03.2010,subject to approval of the share holders at
the forth coming Annual General Meeting.
3. PERFORMANCE
Net Sales and other income has increased from Rs. 61.06 crores to Rs.
62.01 crores. Improvement in profitability in Moulded Luggage is mainly
on account of lower raw mate- rial cost, interest and staff cost and in
Soft Luggage has been mainly due to better sourcing and rupee
appreciation.
The net profit is Rs. 193.03 lakhs after providing deprecia- tion of
Rs.42.93 lakhs and provisions of tax including de- ferred tax liability
of Rs.52.52 lakhs and deferred revenue expenditure of Rs.59.84 lakhs.
4. OUTLOOK FORTHE CURRENT YEAR
The Outlook is positive as demand for travel goods remains robust. The
Company hopes to achieve improvement in Production, Sales and
Profitability in the current year, barring unforeseen circumstances.
5. FIXED DEPOSITS
Fixed Deposits from public and shareholders as on 31st March 2010,
aggregated to Rs.280.80 lakhs. The Company has paid interest on all
fixed deposits due and claimed.
6. DIRECTORS
In accordance of provisions of the Companies Act, 1956, and Articles of
Association of the Company, Shri Jagdish N Sheth and Shri Shailesh J
Mehta, Directors of the Company, retire by rotation at the ensuring
Annual Gen- eral Meeting, but being eligible, offer themselves for
reappointment.
7. AUDITORS
M/s. Bansi S. Mehta & Co., Chartered Accountants, Mumbai, Auditors of
the Company hold office until the conclusion of the ensuing Annual
General Meeting The Company has received certificate from Auditors to
the effect that their reappointment, if made, would be within the
prescribed limit under Section 224 (IB) of the Com- panies Act, 1956.
8. COMMENT ON AUDITORS REMARKS
Notes contained in Schedule No. 12 of the Accounts and referred to in
the Auditors^eport are self explanatory and do not call for further
explanations and may be treated as adequate compliance of Section 217
(3) of the Companies Act, 1956.
9. SECRETARIAL COMPLIANCE CERTIFICATE
Secretarial Compliance Certificate pursuant to Section 383A of the
Companies Act, 1956, is attached herewith.
10. ACKNOWLEDGEMENT
Your Directors would like to thank the customers for their con- fidence
in companys products and services, employees for their dedication and
teamwork and Companys bankers for their co-operation and the trust
reposed by them in the Company.
11.DIRECTORS RESPONSIBILITY STATEMENT PURSU- ANTTO SECTION 217(2AA)
OFTHE COMPANIES ACT, 1956
The Directors hereby confirm :
a) that in the preparation of the annual accounts, the ap- plicable
accounting standards has been followed along with proper explanation
relating to material departures.
b) that the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year and of the profit or
loss of the company for that period.
c) that the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safe guard- ing the assets of the company
and for preventing and detecting fraud and other irregularities.
d) that the directors had prepared the annual accounts on a going
concern basis.
12.STATEMENTS U/S217(2A)OF THE COMPANIES ACT,1956.
Information as per Section 217(2A) of the Companies Act, 1956 (the
Act) read with the Companies (Particulars of Employees) Rules, 1975
forms part of this Report for the financial year ended 31.03.2010.
Employed throughout the year :-
Name Mr. Amul S Mehta
Remuneration Received Rs. 33,48,000/-
Nature of Employment Contractual
Other Terms & Conditions As per service rule of the Co.
Designation/ Chairman &
Nature of Duties Managing Director
Qualification & Experience B.Sc. (Tech) - 35 Years
Date of Commencement 01.05.2008
of Employment
Age (Years) 57 Years
Last Employment held -
NOTES:
1.Gross Remuneration includes Salary, Allowances, Provi- dent Fund and
Superannuation scheme with LIC and value of perquisites.
2.The appointment is contractual and terminable by notice on either
side.
3.Mr. Y.S. Mehta, Director of the Company is a relative of
Mr.A.S.Mehta.
13. LISTING OF SHARES
The Equity shares of the Company are listed on the Bombay Stock
Exchange situated at Phiroze Jeejeebhoy Towers, Dalai Street, Mumbai
400 001. The Company has paid necessary listing fees to the said The
Bombay Stock Exchange as prescribed as per listing
agreement.
13. CONSERVATION OF ENERGY, ETC.
As required by the Companies (Disclosure of Particulars in the Report
of the Board of Directors) Rules, 1988, the Re- port on Conservation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo,
etc. is given in the annexure forming part of this Report.
ON BEHALF OFTHE BOARD OF DIRECTORS
MUMBAI A. S. MEHTA
DATED : 15th May, 2010. Chairman