Mar 31, 2018
To
The Members,
Simmonds Marshall Limited
The Directors have pleasure in presenting the 58th Annual Report, together with the Audited Financial Statements of the Company for the financial year ended March 31, 2018. The consolidated performance of the company and its associate has been referred to wherever required.
FINANCIAL HIGHLIGHTS: (Rs. in Lakhs except EPS)
Particulars |
Standalone |
Consolidated |
||
Year ended 31.03.2018 |
Year ended 31.03.2017 |
Year ended 31.03.2018 |
Year ended 31.03.2017 |
|
Revenue from operation (Net of tax) |
17500.76 |
14500.05 |
18764.77 |
15464.87 |
Other Income |
79.50 |
54.82 |
60.58 |
32.98 |
Total Income |
17580.26 |
14554.87 |
18825.35 |
15497.85 |
Profit before Finance Cost and Depreciation |
2165.95 |
1647.84 |
2185.08 |
1666.10 |
Less: Finance Cost |
329.26 |
285.71 |
329.26 |
285.71 |
Less: Depreciation & Amortization expenses |
395.50 |
402.07 |
403.62 |
410.28 |
Profit Before Tax |
1441.19 |
960.06 |
1452.20 |
970.11 |
Provision for -- Current Tax |
460.33 |
375.35 |
472.67 |
385.35 |
-- Deferred Tax |
(24.53) |
(48.93) |
(26.11) |
(48.88) |
(earlier year) |
- |
- |
- |
(0.23) |
Net Profit After Tax |
1005.39 |
633.64 |
1000.98 |
633.87 |
Other Comprehensive Income (Net of tax) |
39.75 |
36.56 |
39.75 |
36.56 |
Total Comprehensive Income After Tax |
965.64 |
597.08 |
961.23 |
599.06 |
Earing Per Share |
8.98 |
5.66 |
8.94 |
5.67 |
OVERVIEW OF COMPANYâS FINANCIAL PERFORMANCE:
The Company has recorded Total Revenue of Rs. 17580.26 Lakhs during the year as against Rs. 14554.87 Lakhs in the previous year. The profitability was Rs. 1005.39 Lakhs as against Rs. 633.64 Lakhs in the previous year, reflecting an increase of 58.66% as compared to previous year.
On consolidated basis, during the Financial year, the Company recorded Total Revenue of Rs. 18825.35 Lakhs as against Rs. 15497.85 Lakhs in the previous year. The Company recorded a Net Profit of Rs. 1000.98 Lakhs as against Rs. 633.64 Lakhs in the previous year, thus reflecting an increase of 57.92% in comparison to the previous year.
PERFORMANCE AND FINANCIAL POSITION OF THE ASSOCIATE:
Formex Private Limited: Formex Private Limited achieved a total turnover of Rs. 941.11 Lakhs as against Rs. 819.18 Lakhs in the previous year. The Company suffered a loss after tax of Rs. 9 Lakhs during the financial year as against profit of Rs. 3.57 Lakhs in the previous year.
DIVIDEND:
Your Directors have pleasure in recommending, for approval of the Members, at its 58th Annual General Meeting, a Dividend of Rs. 0.70/- per share i.e. @ 35% for the year ended March 31, 2018. If approved at the forthcoming Annual General Meeting, it will result in an outflow of Rs. 78.40 Lakhs to the Members of the Company, coupled with Rs. 15.96 Lakhs as Dividend Distribution Tax.
TRANSFER TO RESERVES:
During the financial year, the Company has not transferred any amount to General Reserves.
EXPORTS:
During the year under review, the Company exported goods worth F.O.B. Rs. 1780.86 Lakhs against Rs. 1381.75 Lakhs in the previous year.
RESEARCH & DEVELOPMENT:
The R&D Department of the Company has been arduously working to provide quality and value for money to the customer in keeping with market trends.
PUBLIC DEPOSITS:
Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
SHARE CAPITAL OF THE COMPANY:
The Paid up Equity Share Capital, as at March 31, 2018 was Rs. 2,24,00,000 /- divided into 1,12,00,000 Equity Shares, having face value of Rs. 2/- each fully paid up. During the year under review, the Company has not issued any shares with differential voting rights nor granted any stock neither options nor sweat equity.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The details of loans, advances and/or guarantee provided by the Company as per section 186 of the Companies Act, 2013, which are required to be disclosed in the annual accounts of the Company pursuant to Regulation 34 (3) read with Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the SEBI Listing Regulations) are provided in the standalone financial statements.
BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL: DIRECTORS: COMPOSITION:
The Board of Directors includes the Executive and Independent Directors so as to ensure proper governance and management. The Board consists of Six (6) Directors comprising of Three (3) Executive Directors and Three (3) Independent Directors including One (1) Woman Director as on March 31, 2018.
RE-APPOINTMENTS:
Based on evaluations and recommendations of Nomination and Remuneration Committee and in terms of the provisions of Sections 149, 150, 152 read with Schedule IV and any other applicable provisions of the Act and the Listing Regulations, the Board recommends re-appointment of Mr. F. K. Banatwalla and Mr. S. C. Saran as Independent Directors for another term of five consecutive years with effect from 1st April, 2019 to 31st March, 2024, for the approval of Members.
In accordance with the provisions of Section 152 (6) of the Companies Act, 2013 and the Articles of Association of the Company, Mr. S. J. Marshall, Director of the Company, retires by rotation, and being eligible, has offered himself for reappointment.
RESIGNATION:
Mr. C. B. Bambawale, resigned as Independent Director from May 25, 2017. The Board of Directors place on record their warm appreciation for the rich contribution made by Mr. C. B. Bambawale and the guidance provided by him during his tenure as Independent Director of the Company.
KEY MANAGERIAL PERSONNEL:
The Company is having the following persons as the Key Managerial Personnel.
Sr. No. |
Name of Personnel |
Designation |
1. |
Mr. S. J. Marshall |
Chairman and Whole-time Director |
2. |
Mr. N. S. Marshall |
Managing Director |
3. |
Mr. I. M. Panju |
Whole time Director |
4. |
Mr. Vikash Verma |
Chief Financial Officer |
5. |
Mr. Nirmal Gupta |
Company Secretary |
During the Financial Year under review, there was no change in the Key Managerial Personnel of the Company. DECLARATION BY INDEPENDENT DIRECTOR(S):
Pursuant to the provisions of Section 149(7) of the Companies Act, 2013, Independent Directors have submitted declaration that each of them meets the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 and there has been no change in the circumstances which may affect their status as independent director during the year.
SUBSIDIARIES & ASSOCIATE COMPANIES:
The Company has one Associate Company i.e. Formex Private Limited within the meaning of Section 2(6) of the Companies Act, 2013.
The Associate Company is carrying on the business of Manufacturing of Bolts, Nuts etc. and the Company holds 49% of the Equity Share Capital in Formex Private Limited as on March 31, 2018. There has been no material change in the nature of the business of the Associate Company.
Pursuant to provisions of Section 129(3) of the Act read with rule 5 of the Companies (Accounts) Rules, 2014, a statement containing salient features of the financial statements of the Companyâs Associate Company in Form AOC-1 is appended as Annexure âAâ and forms part of the Annual Report.
In accordance with third proviso of Section 136(1) of the Companies Act, 2013, the Audited Annual Report of the Company, containing therein its standalone and the consolidated financial statements has been placed on the website of the Company, www.simmondsmarshall.com.
The Company does not have any subsidiary or joint venture as on March 31, 2018.
EXTRACT OF ANNUAL RETURN:
The extract of the Annual Return as provided under sub-section (3) of Section 92 in the Form MGT 9 for the financial year under review is appended as Annexure âBâ and forms part of this report.
NUMBER OF MEETINGS:
a) Board of Directors
The Board of Directors met Five (5) times in the financial year. The details of the Board Meetings and the attendance of the Directors are provided in the Corporate Governance Report, which forms part of the Annual Report.
b) Audit Committee
During the year, Four (4) Audit Committee Meetings were convened and held. The details pertaining to composition of Audit Committee and the attendance of the Audit Committee members are provided in the Corporate Governance Report, which forms part of the Annual Report.
c) Nomination & Remuneration Committee
During the year, Three (3) Nomination and Remuneration Committee Meetings were convened and held. The details pertaining to composition of Nomination and Remuneration Committee and the attendance of the Nomination and Remuneration Committee members are provided in the Corporate Governance Report, which forms part of the Annual Report.
d) Stakeholders Relationship Committee
During the year, Four (4) Stakeholders Relationship Committee Meetings were convened and held. The details pertaining to composition of Stakeholders Relationship Committee and the attendance of the Stakeholders Relationship Committee members are provided in the Corporate Governance Report, which forms part of the Annual Report.
e) Corporate Social Responsibility Committee
During the year, One (1) Corporate Social Responsibility Committee Meeting was convened and held. The details pertaining to composition of Corporate Social Responsibility Committee and the attendance of the Corporate Social Responsibility Committee members are provided in the Corporate Governance Report, which forms part of the Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 134 of the Companies Act, 2013, the Directors confirm:
i. that in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;
ii. 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 and loss of the company for that period;
iii. the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities
iv. the Directors had prepared the annual accounts on a going concern basis.
v. the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively
vi. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
ANNUAL PERFORMANCE EVALUATION:
The Board of Directors carried out an annual evaluation of its own performance, committees and individual directors pursuant to the provisions of the Act and as prescribed by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The performance of the Board was evaluated after seeking inputs from all the directors on the basis of the criteria as under:
- Board composition and structure
- Effectiveness of Board processes, information and functioning
The performance of the committees was evaluated by the Board after seeking inputs from the committee members on the basis of the criteria such as:
- Composition of committees
- Effectiveness of committee meetings
- Achievements during the year based on their duties
- Reviewing the terms of reference of the committees
The Board and the Nomination and Remuneration Committee reviewed the performance of the individual directors on the basis of the criteria such as;
- Contribution of the director to the Boardâs strategic thinking
- Leadership and commitment of the director
- Participation in Board and Committee meetings
- Communication and interpersonal skills of the director
- Ethical issues and dilemmas faced by the director
- Relationship of the director with the senior management.
In addition, the Chairman was also evaluated on the key aspects of his role.
Performance evaluation of Independent directors was done by the entire Board, excluding the independent director being evaluated.
Evaluation criteria for Independent Directors
Role & Accountability |
- Understanding of nature and role of independent directorsâ position - Understanding of risks associated with the business - Application of knowledge for rendering advice to Management for resolution of business issues - Active engagement with the Management and attentiveness to progress of decisions taken |
Objectivity |
- Own recommendations given professionally without tending to majority views |
Leadership & Initiative |
- Heading Board Sub Committees - Leading the functions of the Committees based on knowledge and experience |
Personal attributes |
- Commitment to role & fiduciary responsibilities as a board member - Attendance and active participation and not done perfunctorily - Proactive and strategic thinking |
POLICY ON DIRECTORSâ APPOINTMENT, REMUNERATION AND OTHER DETAILS:
The Companyâs policy on Directorsâ appointment, remuneration and other matters provided in Section 178(3) of the Companies Act, 2013 has been disclosed in the Corporate Governance report, which forms part of the Annual Report.
RELATED PARTY TRANSACTIONS:
All related party transactions that were entered into during the financial year were on armâs length basis and were in the ordinary course of the business therefore, the disclosure of related party transactions, as required under Section 134(3)(h) of the Act, in Form AOC 2 is not applicable to your Company. Further, there are no materially significant related party transactions made by the company with Promoters, Key Managerial Personnel or other designated persons which may have potential conflict with interest of the company at large.
The Audit Committee approves all transactions with related parties by granting omnibus approval at the beginning of the year. Thereafter, all Related Party Transactions are placed on a quarterly basis before the Audit Committee and also before the Board for approval.
The Policy for determining the materiality of related party transactions and dealing with related party transactions as approved by the Board is uploaded on the Companyâs website www.simmondsmarshall.com
AUDITORS:
a) Statutory Auditor
M/s. Lodha & Co., Chartered Accountants, Mumbai, were appointed as the Statutory Auditors of the Company at the 57th Annual General Meeting (AGM) held on September 8, 2017 and will hold office until the conclusion of the 62nd AGM to be held in 2022.
The first proviso to section 139(1) of the Companies Act, 2013 has been omitted vide section 40 of the Companies (Amendment) Act, 2017 notified on 7th May, 2018. Therefore, it is not mandatory for the Company to place the matter relating to appointment of statutory auditor for ratification by members at every Annual General Meeting. Hence the Company has not included the ratification of statutory auditors in the Notice of AGM.
The Report given by M/s. Lodha & Co., Chartered Accountants, on the financial statements of the Company for the financial year 2017-2018 is a part of the Annual Report. There has been no qualification, reservation or adverse remark or disclaimer in their Report.
During the year under review, the Auditors have not reported any matter under Section 143 (12) of the Act, therefore no detail is required to be disclosed under Section 134 (3)(ca) of the Act.
b) Internal Auditor
Pursuant to the provisions of Section 138 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014, the Board on recommendation of the Audit Committee has appointed M/s. SHR & Co., as internal auditors of the Company.
c) Secretarial Auditor
Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. GMJ & Associates, Company Secretaries to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is appended as Annexure âCâ forms part of this report.
There has been no qualification, reservation or adverse remark or disclaimer in their Report. During the year under review, the Secretarial Auditors have not reported any matter under Section 143 (12) of the Act, therefore no detail is required to be disclosed under Section 134 (3) (ca) of the Act.
d) Cost Auditor
Based on the recommendations of the Audit Committee, the Board has appointed M/s. Joshi Apte & Associates, Cost Accountants (Firm Registration No. 000240), as the Cost Auditors of the Company for the year ending March 31, 2019, subject to the ratification of the remuneration payable to them by the members in the ensuing Annual General Meeting pursuant to Section 148 of the Companies Act, 2013.
The Cost Audit Report for the Financial Year 2017-2018 pursuant to the Companies (Cost Accounting Records) Rules, 2011 will be filed within the period stipulated under the Companies Act, 2013.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES:
The Company has constituted a Corporate Social Responsibility Committee in accordance with the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 (the Rules). The details required under the Companies (Corporate Social Responsibility Policy) Rules, 2014 are given in the CSR Report is appended as Annexure âDâ and forms part of this report.
CODE OF CONDUCT:
Your Company is committed to conducting its business in accordance with the applicable laws, rules and regulations and highest standards of business ethics. In recognition thereof, the Board of Directors has implemented a Code of Conduct for adherence by the Directors, Senior Management Personnel and Employees of the Company. This will help in dealing with ethical issues and also foster a culture of accountability and integrity. The Code made in accordance with the requirements of SEBI (LODR) Regulations, 2015 has been posted on the Companyâs website www.simmondsmarshall.com
All the Board Members and Senior Management Personnel have confirmed compliance with the Code.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined by the Audit Committee. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board and to the Managing Director.
The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies of the Company.
Based on the report of internal audit function, the Company undertakes corrective action in their respective areas and thereby strengthens the controls. Significant audit observations and recommendations along with corrective actions thereon are presented to the Audit Committee of the Board.
RISK MANAGEMENT POLICY:
Company has a Risk Management Policy with the Objective to formalize the process of Identification of Potential risk and adopt appropriate risk mitigation measures through a risk management structure. The Policy is a step by the Company towards strengthening the existing internal controls and updating the same as may be required from time to time.
VIGIL MECHANISM / WHISTLE BLOWER POLICY:
The Company has adopted a Whistle Blower Policy to provide a formal mechanism to the Directors and Employees to report their concerns about unethical behaviour, actual or suspected fraud or violation of the Companyâs Code of Conduct or Ethics Policy. The policy provides for adequate safeguards against victimization of employees who avail of the mechanism and also provides for direct access to the Chairman of the Audit Committee. It is affirmed that no personnel of the Company has been denied access to the Audit Committee. The Whistle Blower Policy has been posted on the website of the Company www.simmondsmarshall.com
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORK PLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. The Company affirms that during the year under review, no complaints were received by the Committee for redressal.
INVESTOR EDUCATION & PROTECTION FUND (IEPF)
Pursuant to the applicable provisions of the Companies Act, 2013, read with the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (âthe Rulesâ), all unpaid or unclaimed dividends are required to the transferred by the Company to the IEPF established by the Government of India, after the completion of seven years. Further, according to the Rules, the shares on which dividend has not been paid or claimed by the shareholders for seven consecutive years or more shall also be transferred to the Demat account of IEPF Authority. Accordingly, the Company has transferred the unclaimed and unpaid dividends of Rs. 3,42,470/- in respect of financial year 2009-10. Further, 134000 Equity shares were transferred as per the requirements of IEPF rules. The details are available on our website www.simmondsmarshall.com
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORTS:
The Company adheres to the requirements set out by the Securities and Exchange Board of Indiaâs Corporate Governance practices and have implemented all the stipulations prescribed. The Company has implemented several best corporate governance practices.
The Corporate Governance and Management Discussion & Analysis Report, which form an integral part of this Report, are set out as separate Annexures, together with the Certificate from the Auditors of the Company regarding compliance with the requirements of Corporate Governance as stipulated in SEBI (LODR) Regulation, 2015.
HEALTH, SAFETY AND ENVIRONMENT:
The Company is aware of the importance of environmentally clean and safe operations. The Companyâs policy requires conduct of operations in such a manner, so as to ensure safety of all concerned, compliances, environmental regulations and preservation of natural resources at the Plant.
MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT:
No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which this financial statement relate and on the date of this report.
THE DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYâS OPERATIONS IN FUTURE:
There are no significant or material orders which were passed by the Regulators or Courts or Tribunals which impact the going concern status and the Companyâs operations in future.
DEPOSITORY SERVICES:
The Companyâs Equity Shares have been admitted to the depository mechanism of the National Securities Depository Limited (NSDL) and also the Central Depository Services (India) Limited (CDSL). As a result the investors have an option to hold the shares of the Company in a dematerialized form in either of the two Depositories. The Company has been allotted ISIN No. NE657D01021.
Shareholders therefore are requested to take full benefit of the same and lodge their holdings with Depository Participants [DPs] with whom they have their Demat Accounts for getting their holdings in electronic form.
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO:
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo pursuant to Section 134(3)(m) of the Companies Act, 2013, read with the Rule 8(3) of the Companies (Accounts) Rules, 2014 is appended as Annexure âEâ and forms part of this report.
PARTICULARS OF EMPLOYEES:
The information required pursuant to Section 197 read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 appended as Annexure âF and Gâ and forms part of this report.
INDIAN ACCOUNTING STANDARDS:
Pursuant to the notification, issued by The Ministry of Corporate Affairs dated February 16, 2015 relating to the Companies (Indian Accounting Standard) Rules, 2015, the Company has adopted âIND ASâ with effect from April 01, 2017, with the comparatives for the periods ended March 31, 2017.
GOODS AND SERVICE TAX (GST):
During the Financial Year, the Company has migrated to GST and has accelerated economic growth in the long run by simplifying the tax structure, enhancing tax compliances and facilitating the ease of doing business in a unified common market.
AFFIRMATION ON COMPLIANCE OF SECRETARIAL STANDARDS:
The Board of Directors of the Company has affirmed with the compliances of Secretarial Standards issued by Institute of Company Secretaries of India
APPRECIATION:
Your Directors would like to express their sincere appreciation to the Companyâs Shareholders, Vendors and Stakeholders including Banks, Government authorities, other business associates, who have extended their valuable sustained support and encouragement during the year under review. Your Directors also wish to place on record their appreciation for impressive growth achieved through the competence, hard work, solidarity, cooperation and support of employees at all levels.
For and on behalf of the Board of Directors
SIMMONDS MARSHALL LIMITED
Registered Office:
Mumbai-Pune Road, S. J. MARSHALL
Kasarwadi, (DIN: 00085682)
Pune -411 034. CHAIRMAN
May 30, 2018.
Mar 31, 2016
The Directors have great pleasure in presenting their 56th Annual Report together with the Audited Financial Statements, for the year ended March 31, 2016.
FINANCIAL HIGHLIGHTS:
(Rs. in lacs)
Particulars |
Year ended 31.03.2016 |
Year ended 31.03.2015 |
Total Income(net) |
13670.88 |
13552.99 |
Profit before interest, depreciation and tax |
1588.11 |
1880.59 |
Finance Cost |
382.52 |
396.94 |
Depreciation & Amortization expenses |
437.92 |
374.84 |
Profit Before Tax |
767.67 |
1108.81 |
Provision for Current Tax |
293.00 |
400.44 |
Deferred Tax (earlier year) |
(19.09) |
(0.83) |
Tax adjustments of earlier year |
0 |
(3.44) |
Profit After Tax |
493.76 |
712.64 |
Add: Surplus of Previous year |
3406.26 |
2831.53 |
Net Profit available for Appropriation |
3900.02 |
3544.17 |
Appropriation: |
|
|
Interim Dividend |
56.00 |
0 |
Proposed (final) Dividend |
0 |
56.00 |
Tax on Dividend |
11.40 |
11.40 |
Transferred to General Reserve |
0 |
50.00 |
Depreciation written off |
0 |
20.51 |
Surplus carried to Balance Sheet |
3832.62 |
3406.26 |
OPERATIONAL REVIEW:
The total revenue during the year increased marginally to Rs. 13670.88 lacs as against Rs. 13552.99 lacs in the previous year. The profitability on the other hand is Rs.767.67 lacs as against Rs.1108.81 lacs in the previous year.
During the year, the weakness of rupee against USD continued to put inflationary pressures. Further in view of poor market condition the financial performance of the Company for the year under review was affected.
DIVIDEND:
The Board, at its Meeting held on March 16, 2016, declared and paid an Interim Dividend of R0.50 per share i.e.25% for the year ended March 31, 2016. The total dividend appropriation (excluding dividend tax) resulted in an outflow of Rs.56.00 Lacs to the Members of the Company, coupled with Rs.11.40 Lacs as dividend distribution tax.
SHARE CAPITAL OF THE COMPANY:
The Paid up Equity Share Capital, as at March 31, 2016 was Rs. 2,24,00,000/- divided into 1,12,00,000 Equity Shares, having face value of Rs.2/- each fully paid up. During the year under review, the Company has not issued any shares with differential voting rights nor granted any stock options nor sweat equity.
SUBSIDIARIES & ASSOCIATE COMPANIES:
The Company does not have any subsidiary but has an Associate Company, Formex Private Limited. Further, a statement containing the salient features of the Financial Statement of Associate Company in the prescribed format AOC-1 is appended as Annexure ''A''.
RESEARCH & DEVELOPMENT:
The R&D Department of the Company has been arduously working to provide quality and value for money to the customer in keeping with market trends.
EXPORTS:
During the year under review, the Company exported goods worth F.O.B. Rs. 1651.64 lacs against Rs. 1930.20 lacs in the previous year. The Company hopes to do better on this front in the future.
BOARD OF DIRECTORS:
In accordance with the provisions of Section 152 of the Companies Act 2013 and the Articles of Association of the Company, Mr. S. J. Marshall, Director of the Company, retires by rotation at the forthcoming Annual General Meeting and being eligible offers himself for re-appointment. Mrs. A. V. Chowdhary is appointed as an Independent Director for one term of 5 year with effect from April 1, 2016.
All Independent Directors have given declarations that they meet criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Clause 49 of the Listing Agreement.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 134 of the Companies Act, 2013, the Directors confirm :
i. that in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;
ii. 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 and loss of the company for that period;.
iii. the Directors had taken proper and sufficient care for the maintenance of adequate a accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities
iv. the Directors had prepared the annual accounts on a going concern basis.
v. the Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively
vi. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
KEY MANAGERIAL PERSONNEL:
The Company is having the following persons as the Key Managerial Personnel.
Sr. No. |
Name of the Person |
Designation |
1. |
Mr. S. J. Marshall |
Chairman |
2. |
Mr. N. S. Marshall |
Managing Director |
3. |
Mr. I. M. Panju |
Whole time Director |
4. |
Mr. N. D. Bharucha |
Chief Financial Officer |
5. |
*Ms. Nidhi Darak |
Company Secretary |
6. |
** Ms. Priya Shetty |
Company Secretary |
* Ms. Nidhi Darak was appointed on November 02, 2015 ** Ms. Priya Shetty resigned on August 13, 2015
ANNUAL PERFORMANCE EVALUATION:
Pursuant to the provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015, the company has implemented a system of evaluating performance of the Board of Directors and of its Committees and individual directors on the basis of evaluation criteria suggested by the Nomination and Remuneration Committee. Accordingly, the Board has carried out an evaluation of its performance after taking into consideration various performance related aspects of the Board''s functioning, composition of the Board and its Committees, culture, execution and performance of specific duties, remuneration, obligations and governance. The performance evaluation of the Board as a whole and Chairman and the Non-Independent Directors was also carried out by the Independent Directors in their meeting held on February 05, 2016.
Similarly the performance of various committees, individual independent and Non independent Directors was evaluated by the entire Board of Directors (excluding the Director being evaluated) on various parameters like engagement, analysis, decision making, communication and interest of stakeholders.
The Board of Directors expressed its satisfaction with the performance of the Board, its committees and individual directors.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS:
The details of the number of meetings of the Board held during the Financial Year 2015-16 forms a part of the Corporate Governance Report.
AUDIT COMMITTEE:
In accordance with the provisions of the Regulation 18 of SEBI (LODR) Regulations, 2015 and Companies Act, 2013, the Company is having an Audit Committee comprising of Independent Directors. The Audit Committee acts in accordance with the terms of reference specified from time to time by the Board. The details of the terms of Audit Committee and other details are explained in the Corporate Governance Report.
REMUNERATION & NOMINATION POLICY:
The Board of Directors has framed a policy which lays down a framework in relation to remuneration of Directors, Key Managerial Personnel and Senior Management of the Company. The policy lays down the criteria for selection and appointment of Board Members. The details of the policy are explained in the Corporate Governance Report.
VIGIL MECHANISM / WHISTLE BLOWER POLICY:
The Company has a Vigil Mechanism / Whistle Blower policy to report genuine concerns, grievances, frauds and mismanagements, if any. The Vigil Mechanism / Whistle Blower policy has been posted on the website of the Company (www.simmondsmarshall.com )
RELATED PARTY TRANSACTIONS:
All related party transactions that were entered into during the financial year were on arm''s length basis and were in the ordinary course of the business and that the provisions of Section 188 of the Companies Act, 2013 are not attracted. Further, there are no materially significant related party transactions made by the company with Promoters, Key Managerial Personnel or other designated persons which may have potential conflict with interest of the company at large.
All related party transactions are placed before the Audit Committee and also before the Board for their approval in accordance with the Policy on Related Party Transactions formulated by the Board of Directors of the Company and has been posted on the website of the Company (www.simmondsmarshall.com). Omnibus approval was obtained from the Audit Committee for transactions which were of repetitive nature with monitoring and review on quarterly basis.
DEPOSITS:
Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
There is no loan given, guarantee given or security provided but by the Company to any entity covered under Section 186 of Companies Act, 2013. However, the Company has made investment in entity covered under Section 186 of Companies Act, 2013.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES:
The Company has in place a "Corporate Social Responsibility" (CSR) Committee. As part of its initiatives under CSR, the company has contributed funds for the schemes of eradicating hunger and poverty, promotion of education and medical aid.
The Annual Report on CSR activities is annexed herewith as: Annexure ''B.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant and material orders passed by the Regulators or Courts that would impact the going status of the Company and its future operations.
EXTRACT OF ANNUAL RETURN:
The details forming part of the extract of the Annual Return in Form MGT-9, as required under Section 92 of the Companies Act, 2013, is included in this Report as Annexure ''C'' and forms an integral part of this Report.
DEPOSITORY SERVICES:
The Company''s Equity Shares have been admitted to the depository mechanism of the National Securities Depository Limited (NSDL) and also the Central Depository Services (India) Limited (CDSL). As a result the investors have an option to hold the shares of the Company in a dematerialized form in either of the two Depositories. The Company has been allotted ISIN No. NE657D01021.
Shareholders therefore are requested to take full benefit of the same and lodge their holdings with Depository Participants [DPs] with whom they have their Demat Accounts for getting their holdings in electronic form.
CODE OF CONDUCT:
Your Company is committed to conducting its business in accordance with the applicable laws, rules and regulations and highest standards of business ethics. In recognition thereof, the Board of Directors has implemented a Code of Conduct for adherence by the Directors, Senior Management Personnel and Employees of the Company. This will help in dealing with ethical issues and also foster a culture of accountability and integrity. The Code made in accordance with the requirements of SEBI (LODR) Regulations, 2015 has been posted on the Company''s website www.simmondsmarshall.com.
All the Board Members and Senior Management Personnel have confirmed compliance with the Code.
STATUTORY AUDITORS:
M/s. SHR & Co., Chartered Accountants, (Firm Registration No. 120491W) were appointed as the Statutory Auditors of the Company at the 54th AGM held on September 23, 2014 to hold office until the conclusion of the 57th AGM, are recommended for ratification of appointment for the Financial Year 2016-17. As required under the provisions of Section 139 of the Companies Act, 2013, the Company has obtained written confirmation from M/s. SHR & Co. that their appointment, if made, would be in conformity with the limits specified in the said Section.
COST AUDIT:
As per the requirement of the Central Government and pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, your company has been carrying out audit of the cost records of the Company every year.
The Board of Directors, on the recommendation of the Audit Committee, have appointed M/s. Joshi Apte & Associates, Cost Accountants as the Cost Auditors to audit the accounts of the Company for the Financial Year 2016-17 at a remuneration of R1,80,000/- plus service tax as applicable and reimbursement of out of pocket expenses. As required under the Companies Act, 2013, a resolution seeking member''s approval for remuneration payable to the Cost Auditor forms part of the Notice convening the Annual General Meeting.
SECRETARIAL AUDIT:
Pursuant to provisions of Section 204 of the Companies Act, 2013 and the Rules made thereunder, the Company has appointed M/s. GMJ & Associates, a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as Annexure ''D'' and forms an integral part to this Report.
AUDITOR''S / SECRETARIAL AUDITOR''S OBSERVATIONS:
The observations of the Auditors contained in their Report have been adequately dealt with in the Notes to the Accounts which are self-explanatory and, therefore, do not call for any further comments.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined by the Audit Committee. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board and to the Managing Director.
The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies of the Company.
Based on the report of internal audit function, the Company undertakes corrective action in their respective areas and thereby strengthens the controls. Significant audit observations and recommendations along with corrective actions thereon are presented to the Audit Committee of the Board.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORTS:
The Company adheres to the requirements set out by the Securities and Exchange Board of India''s Corporate Governance practices and have implemented all the stipulations prescribed. The Company has implemented several best corporate governance practices.
The Corporate Governance and Management Discussion & Analysis Report, which form an integral part of this Report, are set out as separate Annexures, together with the Certificate from the Auditors of the Company regarding compliance with the requirements of Corporate Governance as stipulated in SEBI (LODR) Regulation, 2015.
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO:
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo pursuant to Section 134(3)(m) of the Companies Act, 2013, read with the Rule 8(3) of the Companies (Accounts) Rules, 2014 is given in Annexure ''E'' to this Report.
SEXUAL HARASSMENT:
The Company has constituted an Internal Complaint Committee as required under Section 4 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made there under. During the year under review, no complaints were reported.
ENVIRONMENT AND SAFETY:
The Company is aware of the importance of environmentally clean and safe operations. The Company''s policy requires conduct of operations in such a manner, so as to ensure safety of all concerned, compliances, environmental regulations and preservation of natural resources at the Plant.
RISK MANAGEMENT POLICY:
The Company is having a Risk Management Committee which has been entrusted with the responsibility to assist the Board (a) to ensure that all the current and future material risk exposures of the Company are identified, assessed, quantified, appropriately mitigated, minimized and managed i.e. to ensure adequate systems for risk management (b) to establish a framework for the company''s risk management process and to ensure its implementation (c) to enable compliance with appropriate regulations, wherever applicable, through the adoption of best practices (d) to assure business growth with financial stability.
PARTICULARS OF EMPLOYEES:
The information required pursuant to Section 197 read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure F & G to this Report.
LISTING:
The Company''s Shares are listed on BSE Limited, Mumbai.
APPRECIATION:
Your Directors would like to express their sincere appreciation to the Company''s Shareholders, Vendors and Stakeholders including Banks, Government authorities, other business associates, who have extended their valuable sustained support and encouragement during the year under review. Your Directors also wish to place on record their appreciation for impressive growth achieved through the competence, hard work, solidarity, cooperation and support of employees at all levels.
By order of the Board of Directors
For Simmonds Marshall Limited
Registered Office: S. J. MARSHALL
Mumbai - Pune Road, (DIN: 00085682)
Kasarwadi, Pune - 411 034 CHAIRMAN
May 23, 2016
Mar 31, 2015
Dear Members,
The Directors have great pleasure in presenting their 55th Annual
Report together with the Audited Accounts for the year ended March
31,2015.
(Rs. in lacs)
Particulars Year ended Year ended
31.03.2015 31.03.2014
Turnover 13359.93 10314.10
Profit for the year 1108.81 694.93
Less: Provisions for Tax:
Current Tax 400.44 217.00
Deferred Tax (0.83) 39.31
Previous Years Tax Adjustment (3.44) -
Add: Profit brought forward from 2831.53 2514.37
the Previous year
Less: Provision for Tax on Dividend 11.40 9.52
Less: Transfer to Special Reserve 50.00 56.00
Less: Depreciation written off 20.51 -
Less: Transfer to Reserves & Surplus 3406.26 2831.47
Leaving a balance of 56.00 56.00
OPERATIONAL REVIEW:
The turnover during the year increased to Rs.13359.93 lacs against Rs.
10314.10 lacs in the previous year; registering an impressive increase
of 29.53% and the profitability has risen from Rs.694.93 lacs to
Rs.1108.81 lacs registering an impressive increase of 59.55%.
During the year, the weakness of rupee against USD continued to put
inflationary pressures. In spite of this, your Company has been able to
improve its performance.
DIVIDEND:
Your Directors recommend payment of Dividend of 25% on Equity Shares.
SHARE CAPITAL OF THE COMPANY:
The Paid up Equity share Capital, as at 31st March, 2015 was Rs.
2,24,00,000 /- divided into 1,12,00,000 Equity shares, having face
value of Rs. 2/- each fully paid up. During the year under review, the
Company has not issued any shares with differential voting rights nor
granted any stock neither options nor sweat equity.
SUBSIDIARIES & ASSOCIATE COMPANIES:
The Company does not have any subsidiary but has an Associate Company.
RESEARCH & DEVELOPMENT:
The R&D department of the Company has been arduously working to provide
quality and value for money to the customer in keeping with market
trends.
EXPORTS:
During the year under review, the Company exported goods worth F.O.B.
Rs. 1930.20 lacs against Rs. 739.27 lacs in the previous year
registering an impressive increase of 161.09%. This is mainly due to
the effort put in by the Company to improve their performance on export
front. The Company hopes to do even better on this front in the future.
BOARD OF DIRECTORS:
In accordance with the provisions of Section 152 of the Companies Act
2013 and the Articles of Association of the Company, Mr. Imran M.
Panju, Director of the Company, retires by rotation at the forthcoming
Annual General Meeting and being eligible offers himself for
re-appointment.
Mrs. Amrita Chowdhury was appointed as an additional Director at the
Board Meeting held on 30.03.2015. Necessary resolution is placed for
her regular appointment at the forthcoming Annual General Meeting.
All Independent Directors have given declarations that they meet
criteria of independence as laid down under Section 149(6) of the
Companies Act, 2013 and Clause 49 of the Listing Agreement.
DIRECTORS RESPONSIBILITY STATEMENT:
As required under the provisions of Section 134 of the Companies Act,
2013, your Director's report that:
i. In the preparation of the Annual Accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departure, if any.
ii. 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 and
loss of the company for that period.
iii. The Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities.
iv. The Directors had prepared the annual accounts on a going concern
basis.
v. The Directors, had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
vi. The Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
KEY MANAGERIAL PERSONNEL:
During the year under review, the Company has appointed the following
persons as the Key Managerial Personnel.
Sr. No. Name of the Person Designation
1. Mr. Navroze Shiamak Marshall Managing Director
2. Mr. Noshir Darabshaw Bharucha Chief Financial Officer
3. Ms. Priya Shetty Company Secretary
BOARD EVALUATION:
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an evaluation after
taking into consideration various aspects of the Board's functioning,
composition of the Board and its Committees, culture, execution and
performance of specific duties, remuneration, obligations and
governance.
The performance evaluation of the Independent Directors was completed.
The performance evaluation of the Chairman and the Non-Independent
Directors was carried out by the Independent Directors in their meeting
held on 30th March, 2015. The Board of Directors expressed their
satisfaction with the evaluation process.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS:
The details of the number of meetings of the Board held during the
Financial Year 2014-15 forms a part of the Corporate Governance Report.
AUDIT COMMITTEE:
In accordance with the provisions of the Listing Agreement and
Corporate Governance, the Company has constituted an Audit Committee
comprising of Independent Directors. The Audit Committee acts in
accordance with the terms of reference specified from time to time by
the Board. The details of the terms of audit committee and other
details are explained in the Corporate Governance Report.
REMUNERATION & NOMINATION POLICY:
The Board of Directors has framed a policy which lays down a framework
in relation to remuneration of Directors, Key Managerial Personnel and
Senior Management of the Company. The policy lays down the criteria for
selection and appointment of Board Members. The details of the policy
are explained in the Corporate Governance Report.
VIGIL MECHANISM/WHISTLE BLOWER POLICY:
The Company has a Vigil Mechanism / Whistle Blower policy to report
genuine concerns, grievances, frauds and mismanagements, if any. The
Vigil Mechanism /Whistle Blower policy has been posted on the website
of the Company (www.simmondsmarshall.com)
RELATED PARTY TRANSACTIONS:
All related party transactions that were entered into during the
financial year were on arm's length basis and were in the ordinary
course of the business and that the provisions of Section 188 of the
Companies Act, 2013 are not attracted.
The disclosure in Form AOC-2 is given as per Annexure'A'. Further,
there are no materially significant related party transactions made by
the company with Promoters, Key Managerial Personnel or other
designated persons which may have potential conflict with interest of
the company at large.
All related party transactions are placed before the Audit Committee
and also before the Board for their approval in accordance with the
Policy on Related Party Transactions formulated by the Board of
Directors of the Company and has been posted on the website of the
Company (www.simmondsmarshall.com). Omnibus approval was obtained on
quarterly basis for transactions which are of repetitive nature.
FIXED DEPOSITS:
Your Company has not accepted any deposits within the meaning of
Section 73 of the Companies Act, 2013 and the Companies (Acceptance of
Deposits) Rules, 2014.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
There is no loan given, investment made, guarantee given or security
provided by the Company to any entity covered under Section 186 of
Companies Act, 2013.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES:
During the year the Company has constituted a "Corporate Social
Responsibility" (CSR) Committee. As part of its initiatives under CSR,
the company has contributed funds for the schemes of eradicating hunger
and poverty, promotion of education and medical aid. The contributions
in this regard have been made to the registered trust which is
undertaking these schemes. The company has also undertaken schemes of
distributing food to the poor directly as part of the CSR initiative.
The Annual Report on CSR activities is annexed herewith as Annexure'B'.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant and material orders passed by the Regulators
or Courts that would impact the going status of the Company and its
future operations.
EXTRACT OF ANNUAL RETURN:
The details forming part of the extract of the Annual Return in form
MGT-9, as required under Section 92 of the Companies Act, 2013, is
included in this Report as Annexure 'C'and forms an integral part of
this Report.
DEPOSITORY SERVICES:
The Company's Equity Shares have been admitted to the depository
mechanism of the National Securities Depository Limited (NSDL) and also
the Central Depository Services (India) Limited (CDSL). As a result the
investors have an option to hold the shares of the Company in a
dematerialized form in either of the two Depositories. The Company has
been allotted ISIN No. INE657D01021.
Shareholders therefore are requested to take full benefit of the same
and lodge their holdings with Depository Participants [DPs] with whom
they have their Demat Accounts for getting their holdings in electronic
form.
CODE OF CONDUCT:
Your Company is committed to conducting its business in accordance with
the applicable laws, rules and regulations and highest standards of
business ethics. In recognition thereof, the Board of Directors has
implemented a Code of Conduct for adherence by the Directors, Senior
Management Personnel and Employees of the Company. This will help in
dealing with ethical issues and also foster a culture of accountability
and integrity. The Code has been posted on the Company's website
(www.simmondsmarshall.com).
All the Board Members and Senior Management Personnel have confirmed
compliance with the Code.
STATUTORY AUDITORS:
M/s. SHR & Co., Chartered Accountants, (Firm Registration No. 120491W)
were appointed as the Statutory Auditors of the Company at the AGM held
on 23rd September, 2014 to hold office until the conclusion of the
third consecutive AGM, are recommended for ratification of appointment
for the Financial Year 2015-16. As required under the provisions of
Section 139 of the Companies Act, 2013, the Company has obtained
written confirmation from M/s. SHR & Co. that their appointment, if
made, would be in conformity with the limits specified in the said
Section.
COST AUDIT:
As per the requirement of the Central Government and pursuant to
Section 148 of the Companies Act, 2013 read with the Companies (Cost
Records and Audit) Rules, 2014 as amended from time to time, your
company has been carrying out audit of the cost records of the Company
every year.
The Board of Directors, on the recommendation of the Audit Committee,
has appointed M/s. Joshi Apte & Associates, Cost Accountants as the
Cost Auditors to audit the accounts of the Company for the Financial
Year 2015-16 at a remuneration of Rs. 1,80,000 /- plus service tax as
applicable and reimbursement of out of pocket expenses. As required
under the Companies Act, 2013, a resolution seeking member's approval
for remuneration payable to the Cost Auditor forms part of the Notice
convening the Annual General Meeting.
SECRETARIAL AUDIT:
Pursuant to provisions of Section 204 of the Companies Act, 2013 and
the Rules made thereunder, the company has appointed M/s. GMJ &
Associates, a firm of Company Secretaries in Practice to undertake the
Secretarial Audit of the Company. The Secretarial Audit Report is
annexed herewith as Annexure'D'and forms an integral part to this
Report.
AUDITOR'S / SECRETARIAL AUDITOR'S OBSERVATIONS:
The observations of the auditors contained in their Report have been
adequately dealt with in the Notes to the Accounts which are
self-explanatory and, therefore, do not call for any further comments
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. The scope and authority of the
Internal Audit function is defined by the Audit Committee. To maintain
its objectivity and independence, the Internal Audit function reports
to the Chairman of the Audit Committee of the Board /and to the
Chairman & Managing Director.
The Internal Audit Department monitors and evaluates the efficacy and
adequacy of internal control system in the Company, its compliance with
operating systems, accounting procedures and policies of the Company.
Based on the report of internal audit function, the Company undertakes
corrective action in their respective areas and thereby strengthens the
controls. Significant audit observations and recommendations along with
corrective actions thereon are presented to the Audit Committee of the
Board.
ENVIRONMENT & ENERGY CONSERVATION:
Efforts for control of Environment and Conservation of energy are an
on-going process in your Company. As required by the Company's
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 relevant data pertaining to conservation of energy, technology,
absorption and Foreign Exchange Earnings and Outgo are given in the
prescribed format as per Annexure to this Report.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORTS:
The Company adheres to the requirements set out by the Securities and
Exchange Board of India's Corporate Governance practices and have
implemented all the stipulations prescribed. The Company has
implemented several best corporate governance practices.
The Corporate Governance and Management Discussion & Analysis Report,
which form an integral part of this Report, are set out as separate
Annexures, together with the Certificate from the Auditors of the
Company regarding compliance with the requirements of Corporate
Governance as stipulated in Clause 49 of the Listing Agreement.
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNING AND OUTGO:
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo pursuant to Section 134(3)(m) of
the Companies Act, 2013, read with the Rule 8(3) of the Companies
(Accounts) Rules, 2014 is given in Annexure 'E' to this Report.
SEXUAL HARASSMENT:
The Company has constituted an Internal Complaint Committee as required
under Section 4 of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and the Rules made
thereunder. During the year under review, no complaints were reported.
ENVIRONMENT AND SAFETY:
The Company is aware of the importance of environmentally clean and
safe operations. The Company's policy requires conduct of operations in
such a manner, so as to ensure safety of all concerned, compliances,
environmental regulations and preservation of natural resources at the
Plant.
RISK MANAGEMENT POLICY:
During the year, your Directors have constituted a Risk Management
Committee which has been entrusted with the responsibility to assist
the Board (a) to ensure that all the current and future material risk
exposures of the Company are identified, assessed, quantified,
appropriately mitigated, minimized and managed i.e. to ensure adequate
systems for risk management (b) to establish a framework for the
company's risk management process and to ensure its implementation (c)
to enable compliance with appropriate regulations, wherever applicable,
through the adoption of best practices and (d) to assure business
growth with financial stability.
A Risk Management Policy was reviewed and approved by the Committee.
PARTICULARS OF EMPLOYEES:
The information required pursuant to Section 197 read with rule 5 of
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 are not applicable to the company as the company has no
employee drawing salary as per the limits laid down in the section.
LISTING:
The Company's Shares are listed on BSE Limited, Mumbai.
APPRECIATION:
Your Directors would like to express their sincere appreciation to the
company's Shareholders, Vendors and Stakeholders including Banks,
Government authorities, other business associates, who have extended
their valuable sustained support and encouragement during the year
under review. Your Directors also wish to place on record their
appreciation for impressive growth achieved through the competence,
hard work, solidarity, cooperation and support of employees at all
levels.
By order of the Board of Directors
For Simmonds Marshall Limited
Registered Office: S. J. MARSHALL
Mumbai - Pune Road, (DIN: 00085682)
Kasarwadi, Pune 411 034 CHAIRMAN
May 29,2015
Mar 31, 2014
Dear Members,
The Directors have great pleasure in presenting their 54th Annual
Report together with the Audited accounts for the year ended March 31,
2014.
( in lacs)
Particulars Year ended Year ended 31.03.2014 31.03.2013
Turnover 10314.10 9034.36
Profit for the year 694.93 517.89
Less: Provisions for Tax :
Current Tax 217.00 116.50
Deferred Tax 39.31 46.68
Previous Years Tax Adjustment -- 9.13
Add: Profit brought forward from the
Previous year 2514.37 2289.26
Less: Provision for Tax on Dividend 9.52 9.52
Less: Transfer to Special Reserve 56.00 55.00
Less: Transfer to Reserves & Surplus 2831.47 2514.32
Leaving a balance of 56.00 56.00
Your Directors recommend payment of Dividend of 25% on Equity Shares.
OPERATIONS:
The turnover during the year increased to 10314.10 lacs against 9034.36
lacs in the previous year; registering an increase of 14.16% and the
profitability has risen from 517.89 lacs to 694.93 lacs registering an
increase of 34.18%.
During the year, the cost of input continued to increase and the
weakness of rupee against USD continued to put inflationary pressures.
Inspite of this, your Company has been able to improve its performance.
RESEARCH & DEVELOPMENT:
The R&D department of the Company has been arduously working to provide
quality and value for money to the customer in keeping with market
trends.
EXPORTS:
The Company is continuing its efforts to improve its export
performance.
During the year under review, the Company exported goods worth F.O.B.
739.27 lacs against 568.73 lacs in the previous year registering an
impressive increase of 30%. The Company hopes to do even better on this
front in the future.
ENVIRONMENT & ENERGY CONSERVATION:
Efforts for control of Environment and Conservation of energy are an
on-going process in your Company. As required by the Company''s
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 relevant data pertaining to conservation of energy, technology,
absorption and Foreign Exchange Earnings and Outgo are given in the
prescribed format as per Annexure to this Report.
FIXED DEPOSITS:
Your Company has not accepted any deposit within the meaning of section
58A of the Companies Act, 1956 from the public and the rules made there
under.
BOARD OF DIRECTORS:
As per the provisions of the Companies Act, 1956 and in terms of the
Articles of Association of the Company, Mr. F. K. Banatwalla retires by
rotation and being eligible offers himself for reappointment.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
An analysis of the Company''s performance is discussed in the Management
Discussion and Analysis Report which forms part of this Directors
Report.
CORPORATE GOVERNANCE:
Your Company fully subscribes to the standards set out by the
Securities And Exchange Board of India''s Corporate Governance practices
and has ensured compliance of the conditions of Corporate Governance
stipulated in Clause 49 of the Listing Agreement with the Stock
Exchange. A separate report on Corporate Governance together with
Auditors'' Certificate on its compliance is included in this Annual
Report.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors
confirm that:
i. In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departure.
ii. Appropriate policies have been selected and applied consistently
and judgments and estimates wherever made are reasonable and prudent so
as to give a true and fair view of the state of affairs of the Company
as at March 31, 2014 and of the profit of the Company for that year.
iii. Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
iv. The annual accounts have been prepared on a going concern basis.
CODE OF CONDUCT:
The Company is committed to conduct its business in accordance with the
applicable laws, rules and regulations and highest standards of
business ethics. In recognition thereof, the Board of directors has
implemented a Code of Conduct for adherence by the Directors and Senior
Management Personnel of the Company. This will help in dealing with
ethical issues and also foster a culture of accountability and
integrity.
SECRETARIAL COMPLIANCE CERTIFICATE:
A certificate from the Practicing Company Secretary confirming the
Secretarial Compliance is annexed hereto.
AUDITORS:
M/s. SHR & Co., Chartered Accountants, auditors of the Company are
retiring at the ensuing Annual General Meeting. They are eligible for
re-appointment and have expressed their willingness to act as auditors,
if re-appointed. The Company has received a certificate from them that
they are qualified under section 224 (1) of the Companies Act, 1956,
for appointment as Auditors of the Company. Members are requested to
consider their appointment at a remuneration to be decided by the Board
of Directors for the financial year ending March 31, 2015 as set out in
the Notice convening the Meeting.
AUDIT COMMITTEE:
In accordance with the provisions of the Companies Act, 1956 and
Listing Agreement the Company has constituted an Audit Committee. The
Audit Committee acts in accordance with the terms of reference
specified from time to time by the Board.
DEPOSITORY SERVICES:
The Company''s Equity Shares have been admitted to the depository
mechanism of the National Securities Depository Limited (NSDL) and also
the Central Depository Services Limited (CDSL). As a result the
investors have an option to hold the shares of the Company in a
dematerialised form in either of the two Depositories. The Company has
been allotted ISIN No. INE657D01021 Shareholders'' therefore are
requested to take full benefit of the same and lodge their holdings
with Depository Participants [DPs] with whom they have their Demat
Accounts for getting their holdings in electronic form.
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNING AND OUTGO:
The information pursuant to section 217 (I) (e) of the Companies Act,
1956 read with the Companies (Disclosure of particulars in the Report
of Board of Directors) Rules 1988 are given as under.
Efficient use of energy in all form has been a consistent corporate
trust in the Company. Better maintenance of equipments, improved
operating practice and installation of most modern machinery has
resulted in lot of saving in energy cost and consumption of raw
materials.
A. CONSERVATION OF ENERGY:
The Company is consistently doing research in the field of saving
energy by implementing new cost-effective ideas. Form for disclosure of
particulars with respect of Consumption of Energy is enclosed herewith.
b. Consumption per unit of 680.42 691.85 production Electricity (KWH)/
Tonne
B. TECHNOLOGY ABSORPTION:
a) Research & Development
The Research & Development department of the Company has been arduously
working to provide quality and value for money to the customer in
keeping with market trends. Research and Development is being carried
out in the following areas.
- Making design modifications in the products so as to simplify the
manufacturing process and enhance productivity.
- Improvements to tool design.
- Up gradation of machines.
- Design and development of special machines required for increasing
capacity.
- Development of equipment required for testing product reliability at
various stages.
b) Technology absorption, adaptation and innovation.
Innovation and adaption of number of processes for manufacture of nuts
is done to suit Original Equipment Manufacturer''s requirements in the
Automobile sector. Methods of manufacture and productivity improvement
are an on-going process.
C. FOREIGN EXCHANGE EARNED AND USED:
The particulars regarding foreign exchange earnings and expenditure
appear at note nos. 39 and 40 to the accounts.
PARTICULARS OF EMPLOYEES:
None of the employees of the Company came within the purview of the
information required u/s. 217 (2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975 as amended.
LISTING:
Shares of the Company are listed at the Mumbai Stock Exchange.
SAFETY, ENVIRONMENTAL CONTROL AND PROTECTION:
The Company has taken all the necessary steps for safety and
environmental control and protection at the plant.
ACKNOWLEDGMENT:
The Directors wish to convey their appreciation to the Company''s
shareholders, customers, suppliers, bankers and distributors for the
support they have given to the Company and the confidence, which they
have reposed in its management and the employees for the commitment and
dedication shown by them.
By order of the Board
Simmonds Marshall Limited
S. J. MARSHALL
CHAIRMAN
Registered Office:
Mumbai - Pune Road
Kasarwadi, Pune 411 034
Dated: May 30, 2014
Place: Mumbai
Mar 31, 2013
To, THE SHAREHOLDERS
The Directors have great pleasure in presenting their 53rd Annual
Report together with the Audited accounts for the year ended March
31,2013.
(Rs.in lacs)
Particulars Year ended Year ended
31.03.2013 31.03.2013
Turnover 9034.36 9109.29
Profit for the year 517.89 1193.12
Less: Provisions for Tax:
Current Tax 116.50 350.00
Deferred Tax 46.68 46.81
Previous Years Tax Adjustment 9.13 13.33
Add: Profit brought forward
from the Previous year 2289.26 1701.34
Less: Provision for Tax on Dividend 9.52 9.08
Less: Transfer to Special Reserve 55.00 130.00
Less: Transfer to Reserves & Surplus 2514.32 2289.24
Leaving a balance of 56.00 56.00
Your Directors recommend payment of Dividend of 25% on Equity Shares.
OPERATIONS:
The turnover during the year marginally reduced to Rs.9034.36 lacs
against Rs.9109.29 lacs in the previous year; however the profit reduced
due to pressure on margins from Rs. 1193.12 lacs to Rs.517.89 lacs.
During the year, there has been a dramatic change in the economic
environment and the costs of input went up considerably. The weakening
of rupee against the USD continued to put inflationary pressures on the
economy. Inflation also remained at a fairly high level during the
year. The compound effect resulted in pressure on margins.
The Company is continuing its efforts to improve on its performance.
RESEARCH & DEVELOPMENT:
The R&D department of the Company has been arduously working to provide
quality and value for money to the customer in keeping with market
trends.
ENVIRONMENT & ENERGY CONSERVATION:
Efforts for control of Environment and Conservation of energy are an
on-going process in your Company. As required by the Company''s
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 relevant data pertaining to conservation of energy, technology,
absorption and Foreign Exchange Earnings and Outgo are given in the
prescribed format as per Annexure to this Report.
FIXED DEPOSITS:
Your Company has not accepted any deposit within the meaning of section
58A of the Companies Act, 1956 from the public and the rules made there
under.
BOARD OF DIRECTORS:
As per the provisions of the Companies Act, 1956 and in terms of the
Articles of Association of the Company, Mr. C. B. Bambawale retires by
rotation and being eligible offers himself for reappointment.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
An analysis of the Company''s performance is discussed in the Management
Discussion and Analysis Report which forms part of this Directors
Report.
CORPORATE GOVERNANCE:
Your Company fully subscribes to the standards set out by the
Securities And Exchange Board of India''s Corporate Governance practices
and has ensured compliance of the conditions of Corporate Governance
stipulated in Clause 49 of the Listing Agreement with the Stock
Exchange. A separate report on Corporate Governance together with
Auditors''Certificate on its compliance is included in this Annual
Report.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors
confirm that:
i. In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departure.
ii. Appropriate policies have been selected and applied consistently
and judgments and estimates wherever made are reasonable and prudent so
as to give a true and fair view of the state of affairs of the Company
as at March 31, 2013 and of the profit of the Company for that year.
iii. Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
iv. The annual accounts have been prepared on a going concern basis.
CODE OF CONDUCT:
The Company is committed to conduct its business in accordance with the
applicable laws, rules and regulations and highest standards of
business ethics. In recognition thereof, the Board of Directors has
implemented a Code of Conduct for adherence by the Directors and Senior
Management Personnel of the Company. This will help in dealing with
ethical issues and also foster a culture of accountability and
integrity.
SECRETARIAL COMPLIANCE CERTIFICATE:
A certificate from the Practicing Company Secretary confirming the
Secretarial Compliance is annexed hereto.
AUDITORS:
M/s. SHR & Co., Chartered Accountants, auditors of the Company are
retiring at the ensuing Annual General Meeting. They are eligible for
re-appointment and have expressed their willingness to act as auditors,
if re- appointed. The Company has received a certificate from them that
they are qualified under section 224 (1) of the Companies Act, 1956,
for appointment as Auditors of the Company. Members are requested to
consider their appointment at a remuneration to be decided by the Board
of Directors for the financial year ending March 31,2014 as set out in
the Notice convening the Meeting.
AUDIT COMMITTEE:
In accordance with the provisions of the Companies Act, 1956 and
Listing Agreement the Company has constituted an Audit Committee.The
Audit Committee acts in accordance with the terms of reference
specified from time to time by the Board.
DEPOSITORY SERVICES:
The Company''s Equity Shares have been admitted to the depository
mechanism of the National Securities Depository Limited (NSDL) and also
the Central Depository Services Limited (CDSL). As a result the
investors have an option to hold the shares of the Company in a
dematerialised form in either of the two Depositories. The Company has
been allotted ISIN No. INE657D01021
Shareholders''therefore are requested to take full benefit of the same
and lodge their holdings with Depository Participants [DPs] with whom
they have their Demat Accounts for getting their holdings in electronic
form.
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNING AND OUTGO:
The information pursuant to section 217 (I) (e) of the Companies Act,
1956 read with the Companies (Disclosure of particulars in the Report
of Board of Directors) Rules, 1988 are given as under.
Efficient use of energy in all form has been a consistent corporate
trust in the Company. Better maintenance of equipments, improved
operating practice and installation of most modern machinery has
resulted in lot of saving in energy cost and consumption of raw
materials.
A. CONSERVATION OF ENERGY:
The Company is consistently doing research in the field of saving
energy by implementing new cost-effective ideas. Form for disclosure of
particulars with respect of Consumption of Energy is enclosed herewith.
B. TECHNOLOGY ABSORPTION:
a) Research & Development
The Research & Development department of the Company has been arduously
working to provide qualityand valueformoneyto the customerin keeping
with markettrends.Researchand Development is being carried out in the
following areas.
Making design modifications in the products so as to simplify the
manufacturing process and enhance productivity.
Improvements to tool design.
Up gradation of machines.
Design and development of special machines required for increasing
capacity.
Development of equipment required for testing product reliability at
various stages.
b) Technology absorption, adaptation and innovation.
Innovation and adaption of number of processes for manufacture of nuts
is done to suit Original Equipment Manufacturer''s requirements in the
Automobile sector. Methods of manufacture and productivity improvement
are an on-going process.
C. FOREIGN EXCHANGE EARNED AND USED:
The particulars regarding foreign exchange earning and expenditure
appear at note nos. 35 and 36 to the accounts.
PARTICULARS OF EMPLOYEES:
None of the employees of the Company came within the purview of the
information required u/s. 217 (2A) of the Companies Act, 1956 read with
the Companies (particulars of Employees) Rules, 1975 as amended.
LISTING:
Shares of the Company are listed at the Mumbai Stock Exchange.
SAFETY, ENVIRONMENTAL CONTROL AND PROTECTION:
The Company has taken all the necessary steps for safety and
environmental control and protection at the plant.
ACKNOWLEDGMENT:
The Directors wish to convey their appreciation to the Company''s
shareholders, customers, suppliers, bankers and distributors for the
support they have given to the Company and the confidence, which they
have reposed in its management and the employees for the commitment and
dedication shown by them.
By order of the Board
Simmonds Marshall Limited
N. S. MARSHALL
MANAGING DIRECTOR
Registered Office:
Mumbai - Pune Road
Kasarwadi, Pune 411 034
Dated: May 30,2013
Place: Mumbai
Mar 31, 2011
TO THE MEMBERS OF SIMMONDS MARSHALL LIMITED.
The Directors have pleasure in presenting their FIFTY FIRST Report
together with the Audited Accounts of the Company for the year ended
31st March, 2011.
FINANCIAL RESULTS
2009-10
Rupees Rupees
Profit for the year 12,75,48,217 6,97,49,457
Less: Provisions for Tax
Current Tax 4,23,00,000 2,35,00,000
Deferred Tax (6,144) 34,57,617
Add: Profit brought forward 10,53,03,775 7,15,50,214
from the Previous year
Less: Expenses relating to prior years 8,78,378 9,74,916
Less: Provision for Tax on Dividend 9,46,540 7,61,600
Less: Transfer to Special Reserve 1,30,00,000 53,00,000
Less: Transfer to Reserves & Surplus 17,01,33,218 10,53,03,775
Leaving a balance of 56,00,000 44,80,000
Your Directors recommend payment of Dividend of 25% on Equity Shares.
OPERATION:
The Indian Automotive Industry recorded highest ever sales in 2010-11
with all segments i.e. passenger cars, commercial vehicles and
2-wheelers showing strong growth. The Automotive Sector grew by 27%
over the previous year.
This has made India the second fastest growing market after China. The
commercial vehicle segment grew by a robust 33% this year and the 2
wheeler segment grew by 27% over last year. The Industry is expected to
consolidate and grow overall by 15% in 2011-2012 and beyond. Your
Company's growth and performance are inextricably linked with this
segment of Industry and it is hoped that the situation will improve
further and your Company will achieve still better results.
The turnover during the year showed a marked improvement and was Rs.
71,16,41,553/- against Rs. 48,11,41,028/- in the previous year,
registering an increase of 47.90% and the profitability has risen from
Rs.6,97,49,457/-to Rs.12,75,48,2171- registering an impressive increase
of 82.86%.
EXPORTS:
The Company is continuing its efforts to improve its export
performance.
During the year under review, the Company exported goods worth F.O.B.
Rs. 6,45,28,112/-against Rs.2,59,22,452/ -in the previous year
registering an impressive increase of 148.92%. The Company hopes to do
even better on this front in the future.
ENVIRONMENT & ENERGY CONSERVATION:
Efforts for control of Environment and Conservation of energy is an
on-going process in your Company. As required by the Company's
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 relevant data pertaining to conservation of energy, technology,
absorption and Foreign Exchange Earnings and Outgo are given in the
prescribed format as per Annexure to this Report.
PARTICULARS OF EMPLOYEES:
Information pursuant to Section 217(2A) of the Companies Act, 1956 as
amended by the Companies (Amendment) Act, 1988 read with the Companies
(Particulars of Employees) Rules, 1975 form part of this Report.
However, as per the provisions of section 219(1 )(b)(iv) of the
Companies Act, 1956, the Report and Accounts are being sent to the
Shareholders of the Company, excluding the aforesa'id information. Any
Shareholder of the Company interested in obtaining a copy of the said
statement may write to the Secretary & Chief Accountant, Apeejay
Chambers, 5 Wallace Street, Fort, Mumbai400 001.
DIRECTORS:
Mr. Farokh K. Banatwalla retires by rotation at the forthcoming Annual
General Meeting and being eligible offers himself for re-appointment.
Mr. C. B. Bambawale retires by rotation at the forthcoming Annual
General Meeting and being eligible offers himself for re- appointment.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors'
confirm that:
- in the preparation of the annual accounts, the applicable accounting
standards have been followed;
- appropriate accounting policies have been selected and applied
consistently and judgements and estimates made 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 ended 31st March, 2011 and
the profit and loss account for the year ended 31st March, 2011;
- proper and sufficient care has been taken for 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;
- the annual accounts have been prepared on a going concern basis.
SECRETARIAL COMPLIANCE CERTIFICATE:
A certificate from the Practising Company Secretary confirming the
Secretarial Compliance is annexed hereto.
AUDITORS:
M/s. SHR & Co., Chartered Accountants retire at the forthcoming Annual
General Meeting and being eligible offer themselves for re-appointment
as Auditors of the Company.
GREEN INITIATIVE:
Your Directors like to draw your attention to the recent Circular
No.17/2011 dated 21.04.2011 and Circular No.18/2011 dated 29.04.2011
issued by the Ministry of Corporate Affairs allowing paperless
compliances and also service of notice/ documents (including annual
report) through electronic mode to its members. To support this green
initiative of the Central Government in full measure, we hereby appeal
and request to all those members who have not registered their e- mail
addresses so far, to register their e- mail address in respect of
electronic holdings with their concerned depository participants and /
or with the Company.
ACKNOWLEDGEMENT:
The Directors wish to place on record the support received from its
employees, banks, financial institutions, shareholders, customers and
suppliers.
By the Order of the Board
N. S. MARSHALL
Managing Director
Dated: July 30, 2011
Mar 31, 2010
The Directors have pleasure in presenting their FIFTIETH Report
together with the Audited Accounts of the Company for the year ended 31
st March, 2010.
FINANCIAL RESULTS
Rupees Rupees
Profit for the year 6,97,49,457 2,60,20,287
Less: Provisions for Tax
Current Tax 2,35,00,000 55,00,000
Fringe Benefit Tax - 4,00,000
Deferred Tax (Net) 9,79,381 34,57,617
Add: Profit brought forward 7,15,50,215 5,88,36,019
from the Previous year
Less: Expenses relating to prior years 9,74,916 -
Less: Provision for Tax on Dividend 7,61,600 4,28,274
Less: Transfer to Special Reserve 53,00,000 10,00,000
Less: Transfer to Reserves & Surplus 10,53,03,775 7,15,50,215
Leaving a balance of 44,80,000 25,20,000
Your Directors recommend payment of Dividend of 20% on Equity Shares.
OPERATION:
The Indian Automotive Industry recorded highest ever sales in 2009-1 0
with each segment i.e. passenger cars, commercial vehicles and
2-wheelers showing strong growth. The Automotive Sector grew by 25%
over the previous year.
India is emerging as a small car hub in the Asia-Pacific region with
most of the major global players setting up their manufacturing base in
this country. The existing automobile manufacturers are also expanding
their capacity. This development positively impacted OE Sales of the
Company. Your Companys growth and performance are inextricably linked
with this segment of Industry and it is hoped that the situation will
improve further and your Company will achieve still better results.
The turnover during the year showed a marked improvement and was Rs.
48,11,41,028/-againstRs.32,68,37,935/- in the previous year,
registering an increase of 47.21% and the profitability has risen from
Rs.2,60,20,087/- to Rs.6,97,49,457/- registering an impressive increase
of 1 68.06%.
EXPORTS:
The Company is continuing its efforts to improve its export
performance.
During the year under review, the Company exported goods worth F.O.B.
Rs. 2,59,22,452/-. The Company hopes to do much better on this front in
the future.
ENVIRONMENT & ENERGY CONSERVATION:
Efforts for control of Environment and Conservation of energy is an
on-going process in your Company. As required by the Companys
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 relevant data pertaining to conservation of energy, technology,
absorption and Foreign Exchange Earnings and Outgo are given in the
prescribed format as per Annexure to this Report.
PARTICULARS OF EMPLOYEES:
Information pursuantto Section 21 7(2A) of the Companies Act, 1 956 as
amended by the Companies (Amendment) Act, 1988 read with the Companies
(Particulars of Employees) Rules, 1 975 form part of this Report.
However, as per the provisions of section 21 9(1)(b)(iv) of the
Companies Act, 1956, the Report and Accounts are being sent to the
Shareholders of the Company, excluding the aforesaid information. Any
Shareholder of the Company interested in obtaining a copy of the said
statement may write to the Secretary & Chief Accountant, Apeejay
Chambers, 5 Wallace Street, Fort, Mumbai 400 001.
DIRECTORS:
Mr. S. C. Saran retires by rotation at the forthcoming Annual General
Meeting and being eligible offers himself for re- appointment.
Mr. C. B. Bambawale retires by rotation at the forthcoming Annual
General Meeting and being eligible offers himself for re-appointment.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors
confirm that:
- In the preparation of the annual accounts, the applicable accounting
standards have been followed;
- Appropriate accounting policies have been selected and applied
consistently and judgements and estimates made 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 ended 31s March, 2010 and
the profit and loss account for the year ended 31stMarch, 2010;
- proper and sufficient care has been taken for maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1 956 for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities;
- the annual accounts have been prepared on a going concern basis.
SECRETARIAL COMPLIANCE CERTIFICATE:
A certificate from the Practising Company Secretary confirming the
Secretarial Compliance is annexed hereto.
AUDITORS:
M/s. SHR & Co., Chartered Accountants retire at the forthcoming Annual
General Meeting and being eligible offer themselves for re-appointment
as Auditors of the Company.
ACKNOWLEDGEMENT:
The Directors wish to place on record the support received from its
employees, banks, financial institutions, shareholders, customers and
suppliers.
By the Order of the Board
N.S. MARSHALL
Managing Director
Dated: July 30, 2010