Mar 31, 2018
DIRECTORSâ REPORT
To,
The Members of Starlite Components Limited
The Directors have pleasure in presenting their Twenty-Seven Annual Report, together with the Financial Statements together with Audit Report of the Company for the year ended 31st March, 2018.
1. Financial Results -
(Amount in Rs.)
PARTICULARS |
CURRENT YEAR (2017-18) |
PREVIOUS YEAR (2016-17) |
Revenue from operations |
774,570,659.00 |
602,007,438.00 |
Other income |
4,827,980.00 |
6,964,859.00 |
Interest & finance expenses |
3,325,130.00 |
30,14,528.00 |
Depreciation |
6,302,534.00 |
53,14,383.00 |
Total Expenses |
75,46,55,822.00 |
57,05,81,998.00 |
Profit / (Loss) Before Tax |
15,115,153.00 |
30,061,388.00 |
Less : Provision for Taxation |
109,434.00 |
- |
Less: Provision for Deferred Tax Liability |
4,904,110.00 |
97,53,417.00 |
Profit / (Loss) after Tax |
10,101,609.00 |
2,03,07,971.00 |
Proposed Dividend - Equity |
- |
- |
Proposed Dividend - Preference |
- |
- |
Tax on Dividend |
- |
- |
2. Dividend:
Directors do not recommend any dividend in the current financial year.
3. Brief description of the Companyâs working during the year I State of Companyâs affair
Due to continues effort put forth by the management during the year the Company has shown remarkable growth of 28.66% in turnover however the profit of the Company is reduced to 50.26 % during the year due to increase in overall cost. Further, the Company has achieved a turnover of Rs.774,570,659/- (against Rs.602,007,438 in the previous year). These figures clearly show that the steps taken by the company have worked and are reaping results.
This result is due to some fundamentally correct strategic decision taken by the management revolving around improvement of bottom line by stopping loss making or low margin product categories & by hedging business and market risks over a larger basket of customers. While commodity prices and inflation continued to come down, the second consecutive monsoon failure and resulting drought meant a distressed rural demand scenario in several parts of the Country. Competition continued to be aggressive. In such a challenging external environment, your Company remained focused on margin improvement and cost control to perform well and deliver profitable and responsible growth. This along with the effort put in by the entire team, the Company has managed to improve its overall position. The Company is now on the right path to achieve the challenging goals that it has set for the coming years. The Company is also strongly focusing on further strengthening its presence in E-Commerce, OEM Customer base and Government projects, which are beginning to give the Company consistent revenue & a more stability to its business model.
The management also has plans of increasing the manufacturing capacity of LED products, in the coming year, to provide quality products and to cater to the strong demand of the market. Encouraged with the performance of previous year and seeing the growing potential of the LED market, the management feels even more confident & committed of achieving better top and bottom line during the next financial year.
Your Company aggressively pushed sales in the domestic market and successfully increased sales and achieved its sales revenues of Rs.774,570,659/- with a growth of 28.68% but the profit has reduced to Rs.10,101,609/- due to increase in operational cost and other undetermined overheads.
Domestic consumption remains a key growth engine for the Indian economy and with significant additions to the working age population; rising disposable incomes particularly in rural areas and the government revived spending on infrastructure and in the social sector to foster inclusive growth, will help India realize its long term development potential in a sustainable way. Your Company, with a cl ear and dedicated customer focus, is investing in its R&D capabilities, developing product lines with better profit margins and streamlining its production processes to eliminate waste from operations.
4. Changes in the share capital of the Company during the financial year
The Company has obtained the approval of shareholders of the Company under Section 42 of the Companies Act, 2013 for preferential allotment of shares to Promoters and Promoter group for cash and pursuant to conversion of loans obtained from them. In context to the above, the Company has filed an application to BSE Ltd for obtaining the In-Principle Approval for allotment of shares and the application is still pending for approval._
Thus, the Board of Directors of the Company have not allotted any shares to the Promoter & Promoter Group pursuant to the said preferential allotment
Further, the members of the Company have also passed the resolution for increase in authorized share capital of the Company from Rs.18,00,00,000/- (Rupees Eighteen Crores) divided into 1,80,00,000 Equity Shares of Rs. 10/-each to Rs.22,00,00,000/- (Rupees Twenty Two Crores) divided into 2,20,00,000 Equity Shares of Rs. 10/- each
5. Change In Nature Of Business. If Any -
No change has taken place during the year in the nature of Companyâs business.
6. Material Changes & Commitments Affecting The Financial Position Which Have Occurred Between Date Of Year End To The Date Of Report -
There have been no material changes affecting the financial position which have occurred between dates of year end to the date of Report.
7. Significant And Material Orders Passed Bv The Regulators Or Courts Or Tribunals Impacting The Going Concern Status And Companyâs Operations In Future :
During the Financial year under review, the Promoters of the Company which are also the Promoters of one Exclusively Listed Company (ELC) i.e. Comet Filaments Limited have failed to provide the Exit Offer to the shareholders of the ELC within the time line specified by the SEBI Circular No. SEBI/HO/MRD/DSA/CIR/P/2017/92 dated August 1, 2018 and accordingly, the actions specified under the said SEBI Circular were initiated against the Company. This has also impeded the process of Preferential Allotment of shares to Promoter and Promoter Group for cash and pursuant to conversion of loan obtained from them.
8. Details of Adeguacv of Internal Financial Controls With Reference To The Financial Statements -
Company has well devised Internal control systems adopted by the Management to assist in achieving management''s objective of ensuring the orderly and efficient conduct of its business, including, adherence to management policies, the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. The system of internal control is under continuing supervision by Management to determine that it is functioning as prescribed and is modified, as appropriate, for changes in conditions. Company endeavors to create the control environment with budgetary controls and an effective internal audit function.
Specific control procedures include -
- Control over movement of physical Assets, Goods & Services including Purchase and Payable, Sales and Receivables, Inventories etc.
- Control over timely Accounting, Legal compliances & Compliance of Accounting standards.
- Asset acquisitions & disposal - both tangible & intangible.
- Control over borrowings & liabilities.
- Control over expenses including employee benefits, taxes etc.
- Control over financial transactions.
- Comparing and analyzing the financial results with corresponding budgeted figures.
The controls include Preventive, Detective & Corrective controls. These controls are reviewed periodically & upgraded whenever necessary.
9. The Names Of Companies Which Have Become Or Ceased To Be Its Subsidiaries. Joint Ventures Or Associate Companies During The Year
Sr. no |
Name of Company |
CIN |
Type of association |
Date of joining/ Cessation |
------------------------------------------------Nil----------------------------------------------- |
10. Report on the Performance of the Subsidiaries. Associate Companies and Joint Venture
The Company does not have any Subsidiaries and Joint Venture Companies but Company has only one Associate Company.
11. Deposits
The Company have not accepted any Deposits during the year within the meaning of Section 73 of Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
Sr. no |
Particulars |
||
1 |
Amount accepted during the year |
Nil |
|
2 |
Amount remaining unclaimed or unpaid at the end of year |
Nil |
|
3 |
Details of default in repayment of deposit or interest thereon during the year - |
Nil |
|
No. of such cases -At the beginning of year Maximum during the year At the end of year |
Deposit |
Interest |
|
Total amount involved -At the beginning of year Maximum during the year At the end of year |
Deposit |
Interest |
12. Auditors -
A. Statutory Auditors -
At the 23rd Annual General Meeting held on 30th September, 2014, the members approved the appointment of M/s. HMA & Associates, Chartered Accountants, Mumbai (Firm Registration No. 100537W) as the Statutory Auditors of the Company to hold office from the conclusion of 23rd Annual General Meeting until conclusion of 27th Annual General Meeting (subject to ratification of appointment by members at every AGM held after 23rd AGM) on such remuneration as may be mutually agreed by the Board and the Auditor.
In accordance with the section 139 of the Companies Act, 2013, the Company is required to appoint a new Statutory Auditor in place of retiring Auditor. The Board of Directors of the Company at their meeting held on September 05, 2018 have approved the appointment of M/s. Jain Chhajed & Associates, Chartered Accountants, Nasik (Firm Registration No. 127911W) as the Statutory Auditor of the Company for a period of 5 (Five) consecutive year from the conclusion of this Annual General Meeting till the conclusion of AGM to be held in the calendar year 2023 on such remuneration as may be mutually agreed by the Board and the Auditor.
Members are requested to confirm the appointment of the Auditors from the conclusion of the 27th AGM till the conclusion of 32nd AGM.
M/s. Jain Chhajed & Associates have shown their willingness to be appointed as the Statutory Auditor of the Company and have also 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 appointment.
The specific notes forming part of accounts referred to in the Auditorsâ Report provided by the present Statutory Auditor of the Company are self-explanatory and give complete information.
B. Secretarial Auditors -
The Board has appointed Amit R. Dadheech & Associates, Practicing Company Secretaries, to conduct Secretarial Audit for the financial year 2017-18. The Secretarial Audit Report for the financial year ended 31st March, 2018 is annexed herewith as Annexure 1 to this Report.
C. Internal Auditors:
Pursuant to the provisions of Section 138 and other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, the Company has appointed to M/S. SKVM And Co., Chartered Accountants, Nasik, as internal auditors. During the year, the Company continued to implement their suggestions and recommendations to improve the control environment. Their scope of work includes review of processes for safeguarding the assets of the Company, review of operational efficiency, effectiveness of systems and processes and assessing the internal control strengths of all areas.
13. Audit Reports:
A. Statutory Auditors Report - The observations made by the Auditors of the Company in their report are self-explanatory - except for observations regarding pending litigations. The explanations of the management on the comments of the auditors with respect to the pending litigations are as follows:
- Income Tax Demand raised for AY 2004-05 for Rs. 73,71,366/-: The Company has taken appropriate steps and filed an appeal with High Court Mumbai which is under process. Further, the Honâble BIFR has given relief for demand raised for AY 2004-05 vide their order dated 10th October, 2013. On these grounds the management is positive that relief would be granted by the High Court.
- Sales Tax Demand for Rs. 9,28,13,759/-: The Company has filed an appeal with the Appellate Authority for waiver of interest and penalty charged. Further, the Honâble BIFR has given relief for demand raised by Sales Tax Department vide their order dated 10th October, 2013. On these grounds the management is positive that relief would be granted by the Appellate Authority.
B. Secretarial Audit report- The observations made by the Secretarial Auditors of the Company in their report for the year ended 31s March, 2018 are self-explanatory - except for observations regarding filing offorms,
Chief Financial Officer and whole time Company Secretary. Below are the responses of the Management on the observations made by the Secretarial Auditor:-
1. Even after several efforts, the Company could not find any candidate who will work as whole time Company Secretary, therefore the Company had appointed a Company Secretary on part time basis to look after compliances related to the Companies Act, 2013. However, efforts are being made to find
2. The actions taken against the Company is due noncompliance with the SEBI Circular SEBI/HO/MRD/DSA/CIR/P/2017/92 dated August 1, 2017 by M/s. Comet Filament Limited, a Company promoted by the same Promoters.
3. Due to actions taken against the Company in relation to non-compliance with the aforesaid SEBI Circular by one of the Group Company i.e. Comet Filament Limited, the process of issuance and allotment of shares to Promoter and Promoter Group on preferential basis for cash and pursuant to conversion of loans obtained from them is been stagnated and no In-Principal Approval is obtained from BSE Ltd for allotment of shares.
4. The Company shall take necessary step for filing the relevant forms and returns with the Registrar of Companies, Mumbai within the stipulated period of time to avoid any additional fees or penalty.
5. The Promoters and Director of the Company has taken relevant step for filing of returns and financials with Registrar of Companies, Mumbai and has removed the disqualification imposed on the Promoters / Directors by filing Form CODS and payment of Condo nation fees.
6. The Company shall take necessary step in future to comply with Regulation 23 of SEBI (Listing Obligation & Disclosure Requirement) Regulation, 2015.
14. Share capital -
During the year, the Company has not issued any shares with differential rights, or sweat equity shares.
Company has neither issued any employee stock options nor has provided money for purchase of its own shares by employees or by trustees for the benefit of employees.
However, the Company has obtained the approval of shareholders of the Company under Section 42 of the Companies Act, 2013 for preferential allotment of shares to promoters and promoter group for cash and pursuant to conversion of loan. Also, the Company has filed an application to BSE Ltd for obtaining the In Principle Approval for allotment of shares and the same is still pending for approval.
Further, the members of the Company have also passed the resolution for increase in authorized share capital of the Company from Rs.18,00,00,000/- (Rupees Eighteen Crores) divided into 1,80,00,000 Equity Shares of Rs.10/-each to Rs.22,00,00,000/- (Rupees Twenty Two Crores) divided into 2,20,00,000 Equity Shares of Rs.10/- each.
15. Extract Of Annual Return -
As required, pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014, an extract of annual return in MGT 9 forms part of this Annual Report as Annexure 2.
16. Conservation Of Energy. Research & Development. Technology Absorption. Foreign Exchange Earnings and Outgo
A. Conservation ofenergy-
The Company has always been conscious of the need for conservation of energy and energy conservation measures have been implemented at all the plants and offices of the Company. Efforts for conservation of energy in all areas are made on a continuous basis highlighting areas for the same -maximizing use of daylight, using energy efficient lamps, arresting leakages in compressed air piping and electrical systems. With further efforts towards substitution of traditional sources of energy with renewable energy, measures for efficient usage of power and investment in additional equipment for saving of electricity. The illustrative measures taken towards energy conservation at Units are: .
The steps taken or impact on conservation of energy:
- Installation of Energy Efficient LED Batten fittings for task lighting and LED High bay for General Lighting, Use of 36W x 4 T5 lamps for shop lights, Installation of LED street lights, Installation of LED low bays fittings etc.
- Installation of Variable Frequency Drives (VFD) for energy saving in Compressors.
- Use of Energy Efficient Pumps, Energy Efficient Compressed Air Nozzles.
- Every unit has set targets for paper, power and water consumption per employee which is monitored on a regular basis.
- Use of motion sensors & timers for on-off control of lighting system.
- The Air Conditioners are kept at a moderate temperature and all the electrical equipmentâs are turned off, whenever they are not required by the Office Staff.
B. Technology absorption -
There is a continuing programme to enhance its range of products & allied parts to meet the future needs of the evolving market by providing a strong proposition for its customers by providing multiple solutions for customer requirements.
The Companyâs in-house Research and Development teams during the year have continued to focus on developing products that were indigenous, intelligent and energy efficient. Continued R&D efforts of the past years put in developing Lamps and Lighting Products along with the electronics with higher efficiency & improved lumen output.
C. Foreign exchange earnings and Outgo-
Total Foreign Exchange Outgo is Rs. 105,075/- & Earning is NIL as there are no exports during the FY 2017-18
17. Directors & Key Managerial Personnel (KMP)-
a. None of the Directors of the Company are disqualified from being appointed as Directors as on the date of this Report in terms of Section 164 of the Companies Act, 2013.
b. Dr. Smt. Rochana Arvind Bharati- Director - retires by rotation at the forthcoming A.G.M. and being eligible, offers herself for re-appointment.
c. Mr. Sajid Salauddin Shaikh has been appointed as Chief Financial Officer (CFO) of the Company w.e.f. October 05, 2017.
Apart from this, there were no appointment / resignation of Directors and Key Managerial Personnel (KMP) during the period under review.
18. Declaration Given Bv Independent Directors U/S 149(6)
All independent Directors have given declarations that they meet the criteria of independence as laid down under section 149(6) of the Companies Act, 2013 and the provisions of the Listing Regulations.
19. Board Committees -
Pursuant to the requirements of the Listing Regulations, the Company has constituted Audit committee, Nomination & Remuneration Committee, Stake holdersâ relationship committee & Risk management committee. The details of the committees & its terms of reference are set out in the Corporate Governance Report forming part of the Boardâs report.
20. Formal Annual Evaluation:
Pursuant to the provisions of the Companies Act, 2013, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration and Stakeholder Relationship Committee. The policy for formal evaluation of Boardâs performance is made available on the website of the Company.
21. Meetings of Board of Directors & Audit Committee Meetings -
During the year, Six Board Meetings and Four Audit Committee Meetings were convened and held, the details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.
22. Vigil Mechanism:
Pursuant to the provisions of section 177(9) & (10) of the Companies Act, 2013, a Vigil Mechanism for directors and employees to report genuine concerns has been established. The Model Vigil Mechanism Whistleblower Policy is made available on the website of the Company.
23. Companyâs Policy Regarding Appointment. Remuneration. Independence, and Qualification etc. of Directors Where Nomination And Remuneration Committee Is Necessary -
Pursuant to the requirements of the Listing Regulations, the Company has constituted Nomination & Remuneration Committee. The details of the committee & its terms of reference & Policy are set out in the Corporate Governance Report forming part of the Boardâs report.
24. Particulars of Loans. Guarantees & Investments U/S 186 Details of Loans:
SL No |
Date of |
Detail |
Amount |
Purpose for |
Time |
Date |
Date of |
Rate |
Security |
making |
s of |
which the loan is |
period for |
of |
SR (if |
of |
|||
loan |
Borro |
to be utilized by |
which it is |
BR |
reqd) |
Inter |
|||
wer |
the recipient |
given |
est |
||||||
--------------------------------------------------Nil------------------------------------------------------- |
|||||||||
Details of Investments:-
SL No |
Date of investme nt |
Details of Investee |
Amount |
Purpose for which the proceeds from investment is proposed to be utilized by the recipient |
Date of BR |
Date of SR (if reqd) |
Expec ted rate of return |
1 |
30/06/98 |
Starlite Lighting Ltd. |
92,00,000 |
Capital for Business |
06/05/98 |
12/05/98 |
Nil |
Details of Guarantee I Security Provided:
SL |
Date of |
Details of |
Amount |
Purpose for which the |
Date of |
Date of |
Com |
No |
providing |
recipient |
security/guarantee is |
BR |
SR (if |
missi |
|
security/g |
proposed to be utilized |
any) |
on |
||||
uarantee |
by the recipient |
||||||
Nil |
25. Particulars Of Contracts & Arrangements With Related Parties U/S 188 (1)
All Related Party Transactions that were entered into during the financial year were on an armâs length basis and were in the ordinary course of business. The policy on Related Party Transactions as approved by the board is available on the Companyâs website. The details are as per Annexure 3.
26. Managerial Remuneration As Per Sec 197 (12) Information under Rule 5 of Companies (Appointment & Remuneration ofManagerial Personnel) Rules. 2014
a. Ratio of Directorsâ remuneration to median remuneration of employees -
Sr. No. |
Name of Director & KMP |
Remuneration P-a. |
Median remuneration p.a.(based on 12 months working) |
Ratio |
Remark |
1 |
Rochana Bharati |
Nil |
- |
Nil |
Nil |
2 |
Arvind Bharati - M.D. |
20,16,000 |
1,91,170 |
10.55 |
Nil |
3 |
Vijay Tiwari |
Nil |
- |
Nil |
|
4 |
Smita Patodkar -Executive Director |
12,00,000 |
1,91,170 |
6.28 |
Nil |
5 |
S. K. Menon |
Nil |
- |
Nil |
Nil |
6 |
Sajid Salauddin Shaikh |
6,88,981 |
1,91,170 |
3.60 |
Nil |
b. Percentage increase in remuneration ofeach Director & KMP -
Sr. no. |
Name |
Designation |
Remuneration 16-17 |
Remuneration 17-185 |
% increase |
1 |
Arvind Bharati |
M.D. |
20,16,000 |
20,16,000 |
NIL |
2 |
Smita Patodkar |
Executive Director |
11,50,000 |
12,00,000 |
0.03% |
3 |
Deepak Joshi |
CFO |
6,74,089 |
238,090 |
N.A |
4. |
Sajid Salauddin Shaikh |
CFO |
- |
6,88,981 |
N.A |
# Mr. Deepak Joshi resigned as CFO w.e.f. August 04, 2017
# Mr. Sajid Salauddin Shaikh has Appointed as CFO w.e.f. October 05, 2017
c. No. of permanent employees on the roll -
The Company has 87 permanent employees of which 57 were employed throughout the year & remaining was employed for the part of the year.
d. Percentage increase / decrease in the median remuneration of employees -
There has been a increase in the median remuneration of employees compared to previous year by 3.97%.
e. Explanation on the relationship between average increase in remuneration of Directors. KMP & Employees vis a vis Company performance -
Average increase in remuneration of employees & KMP is guided by factors like economic growth, inflation, mandatory increases, external competitiveness and the need for talent retention. Remuneration is predominantly fixed in nature and attributable to employeeâs skills & experience and hence a perfect correlation with company performance cannot be achieved.
f. Comparison of remuneration of the KMP against the performance of the Company -
The turnover of the Company in the FY 2016-17 was Rs. 602,007,438/- & in F.Y. 2017-18 was Rs.774,570,659/- i.e. rise of 28.66%. There has been an increase in the remuneration paid by the Company to Directors & KMP to the extent of Rs. 64,000/- per annum due to the remuneration policy adopted by the management for ensuring the growth and sustainability of the organization. Further, in comparison with the Revenue of the Company, the Remuneration of KMP also has decreased from 0.67% in 2016-17 to 0.50 % in 2017-18.
g. Variation in market capitalization, price earnings ratio as at the closing date of the FY 2017-18 and FY 2016-17 and percentage increase or decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer -
Sr. No. |
Particulars |
31st March, 2018 |
31st March, 2017 |
% Variation |
1 |
Market Capitalization (Rs. In Lacs) |
8387.55 |
8524.35 |
(1.60%) |
2 |
Price Earnings Ratio (Mkt. Price/EPS) |
83.13 |
41.89 |
41.24% |
3 |
Percentage increase/(decrease) in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer (Last public issue made in 1994 @ Rs. 10/- per share of FV Rs. 10/-) |
390.5% |
295% |
95.5% |
4 |
Market Price |
49.05 |
49.85 |
(-0.8%) |
h. Comparison of remuneration of each Director and KMP against the performance of the Companv-Turnover of the Company for F.Y. 2017-18 is Rs. 7745.706 lacs.
Sr. No |
Name |
Designation |
Remuneration |
Remuneration % |
1 |
Arvind Bharati |
M. D. |
20,16,000/- |
0.26% |
2 |
Sajid Salauddin Shaikh |
CFO |
6,88,981/- |
0.09% |
3 |
Smita Patodkar |
Executive Director |
1200,000/- |
0.15% |
i. The key parameters for any variable component of remuneration availed by the directors -No variable component is payable to Directors.
j. The ratio of remuneration of highest paid director to that of employees who are not directors but receive remuneration in excess of the highest paid director during the year -There are no such employees getting remuneration in excess of highest paid Director.
The remuneration is as per the remuneration policy of the Company.
27. Particulars Of Employees -
- Following Director-Employees hold more than 2% equity -
a. Mr. Arvind Bharati - M.D. - 9.02%
b. Dr. Smt. Rochana Bharati - Director - 3.46%
- Particulars pursuant to the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014,
None of the employees is in receipt of remuneration exceeding Rs. 60 lakhs p.a. or Rs. 5 lakh p.m. if employed for part of the year.
- Particulars of employees drawing remuneration more than the remuneration drawn by the MD.
None of the employees draw remuneration more than the remuneration drawn by the MD.
28. Development & Implementation of Risk Management Policy:
Risk management practices seek to sustain and enhance long term competitive advantage of the Company. The Board has approved and implemented Risk Management Policy with an aim to identify, evaluate, monitor and minimize risks that are identifiable. The Risk Management Policy of the Company is available on the website of the Company.
29. Corporate Governance and Certificate
Your Company is committed to the tenets of good Corporate Governance and has taken adequate steps to ensure that the requirements of Corporate Governance as laid down in the Listing Regulations are complied with. A separate report on Corporate Governance is being published as a part of the Annual Report of the Company.
The Compliance certificate from the Auditors regarding compliance of conditions of corporate governance as stipulated in the Listing Regulations is annexed with the Corporate Governance Report.
30. Directorâs Responsibility Statement:
Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors to the best of their knowledge and belief confirm that: -
I. In the preparation of the annual accounts, the applicable accounting standards have been followed;
II. Appropriate accounting policies have been selected and applied consistently, and have made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018 and of the Profit of the Company for the year ended on 31st March, 2018;
III. Proper and sufficient care has been taken for the maintenance of the adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
IV. The annual accounts have been prepared on going concern basis;
V. Internal financial controls had been laid down and that such internal financial controls are adequate and were operating effectively.
VI. Proper systems were devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
VII.
31. Sexual Harassment OfWomen At Workplace (Prevention. Prohibition And Redressal) Act. 2013 -
The Company has constituted an Internal Complaints Committee (ICC) for organizing workshops and awareness programs at regular intervals for sensitizing employees on the issues and penal implications w.r.t. workplace sexual harassment. The ICC shall be responsible for prevention and redressal of complaints, if any. The ICC ensures timely submission of reports to the Board.
32. Listing Fees-
Your Company''s shares are listed in The BSE Limited, Mumbai and the Annual Listing fees for the year under review have been paid.
33. GREEN INITIATIVE IN CORPORATE GOVERNANCE
The Ministry of Corporate Affairs (MCA) has taken a âGreen Initiative in Corporate Governanceâ by allowing service of documents by a Company to its Members through electronic mode. The move of the Ministry allows public at large to contribute to the green movement.
Keeping in view the underlying theme, the Company will continue to send various communications and documents like notice calling general meetings, audited financial statements, directors'' report, auditor''s report etc., in electronic form, to the email address provided by the members to the Depositories or to the Company.
To support this green initiative in full measure, members who have not registered their E-mail address and PAN Number so far, are requested to register their E-mail address and PAN Number, in respect of electronic holdings with the Depository through their concerned Depository Participant. Members who hold shares in physical form are requested to fill their e-mail address and PAN Number for our records in the registration form which can be downloaded from the Company''s website for sending the documents in electronic form or else send a request letter directly to the Company mentioning their E-mail address and PAN No. along with self attested copy of their PAN Card.
34. DEMATERIALIZATION OF SHARES
Shareholders are requested to convert their physical holding to demat/electronic form through any of the Depository Participants to avoid any possibility of loss, mutilation etc. of physical share certificates and also to ensure safe and speedy transaction in securities.
35. Acknowledgements:
The Directors greatly value the support and co-operation received during the year from the Company''s Bankers, Statutory Authorities and all organizations connected with its business. The Directors also take pleasure in commending the valuable contributions made by the Company''s employees at all levels during the year under review.
Place: - Nasik By order of the Board of Directors
Date: - September 05, 2018. Sd/- Sd/-
Dr. Smt. Rochana Bharati Mr. Arvind Bharati
(Chairperson) (Managing Director)
DIN-00163408 DIN-00148830
Mar 31, 2016
DIRECTORSâ REPORT
To,
The Members of
STARLITE COMPONENTS LIMITED
The Directors have pleasure in presenting their Twenty-Fifth Annual Report, together with the Financial Statements, Audited Accounts together with Audit Report of the Company for the year ended 31st March, 2016.
1. Financial Results -
(Amount in Rs.)
PARTICULARS |
CURRENT YEAR 2015-16 |
PREVIOUS YEAR 2014-15 |
Gross Income |
42,91,57,035 |
27,24,91,081 |
EBIDTA |
3,78,28,519 |
1,53,87,300 |
Interest & finance expenses |
1,48,16,874 |
1,09,51,645 |
Depreciation |
47,98,007 |
39,31,724 |
Profit / (Loss) Before Tax |
1,82,13,638 |
87,75,438 |
Less : Provision for Taxation |
- |
- |
Less: Provision for Deferred Tax Liability |
63,01,146 |
(14,47,401) |
Profit / (Loss) after Tax |
1,19,12,492 |
1,02,22,839 |
Add : Profit brought forward |
(15,05,48,206) |
(16,07,71,045) |
Proposed Dividend - Equity |
- |
- |
Proposed Dividend - Preference |
- |
- |
Tax on Dividend |
- |
- |
Profit carried forward |
(13,86,35,713) |
(15,05,48,206) |
2. Dividend:
Directors do not recommend any Equity dividend at the Annual General Meeting.
3. Amount Proposed To Be Transferred To Reserves :
The Directors do not propose any transfer to Reserves .
4. Brief description of the Companyâs working during the year / State of Companyâs affair
In line with the commitment put forth by the management in previous annual report, the Company has shown remarkable growth of 58.19% in turnover and 16.53% in profit during the year and achieved a turnover of Rs. 4,283.39 lacs (against Rs. 2,707.75 lacs in the previous year). Profit after tax has also improved to Rs.119.12 lacs during the year under consideration (previous year closed at a Profit of Rs. 102.22 lacs). These figures clearly show that the steps taken by the company have worked and are reaping results.
This result is due to some fundamentally correct strategic decision taken by the management revolving around improvement of bottom line by stopping loss making or low margin product categories & by hedging business and market risks over a larger basket of customers. While commodity prices and inflation continued to come down, the second consecutive monsoon failure and resulting drought meant a distressed rural demand scenario in several parts of the Country. Competition continued to be aggressive. In such a challenging external environment, your Company remained focused on margin improvement and cost control to perform well and deliver profitable and responsible growth. This along with the effort put in by the entire team, the Company has managed to improve its overall position. The Company is now on the right path to achieve the challenging goals that it has set for the coming 5 years. The Company is also strongly focusing on further strengthening its presence in E-Commerce, OEM Customer base and Government projects, which are begi nning to give the Company consistent revenue & a more stability to its business model.
The management also has plans of increasing the manufacturing capacity of LED products, in the coming year, to provide quality products and to cater to the strong demand of the market. Encouraged with the performance of previous year and seeing the growing potential of the LED market, the management feels even more confident & committed of achieving better top and bottom line during the next financial year.
Your Company aggressively pushed sales in the domestic market and successfully increased sales and achieved its sales revenues of Rs. 4,283.39 lacs with a growth of 58.19%, and also improved profits to Rs. 119.12 lacs.
There is still optimism that economic activity will accelerate - inflation downtrend, narrowing fiscal and current deficits, falling interest rates, GDP growth pick up to 6.5%, forex reserves improving with strong FII/FDI flows, food and fuel inflation down. Slowdown in China adds to Indiaâs comparative charm and value proposition. Domestic consumption remains a key growth engine for the Indian economy and with significant additions to the working age population, rising disposable incomes particularly in rural areas and the government revived spending on infrastructure and in the social sector to foster inclusive growth, will help India realize its long term development potential in a sustainable way.
Your Company, with a clear and dedicated customer focus, is investing in its R&D capabilities, developing product lines with better profit margins and streamlining its production processes to eliminate waste from operations.
5. Change In Nature Of Business, If Any -
No change has taken place during the year in the nature of Companyâs business.
6. Material Changes & Commitments Affecting The Financial Position Which Have Occurred Between Date Of Year End To The Date Of Report -
There have been no material changes affecting the financial position which have occurred between date of year end to the date of Report.
7. Significant And Material Orders Passed Bv The Regulators Or Courts Or Tribunals Impacting The Going Concern Status And Companyâs Operations In Future :
No such Orders were passed by Regulators, or Courts or Tribunals.
8. Details of Adequacy of Internal Financial Controls With Reference To The Financial Statements -
Company has well devised Internal control systems adopted by the Management to assist in achieving management''s objective of ensuring the orderly and efficient conduct of its business, including, adherence to management policies, the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. The system of internal control is under continuing supervision by Management to determine that it is functioning as prescribed and is modified, as appropriate, for changes in conditions. Company endeavours to create the control environment with budgetary controls and an effective internal audit function.
Specific control procedures include -
- Control over movement of physical Assets, Goods & Services including Purchase and Payable, Sales and Receivables, Inventories etc.
- Control over timely Accounting, Legal compliances & Compliance of Accounting standards.
- Asset acquisitions & disposal - both tangible & intangible.
- Control over borrowings & liabilities.
- Control over expenses including employee benefits, taxes etc.
- Control over financial transactions.
- Comparing and analyzing the financial results with corresponding budgeted figures.
The controls include Preventive, Detective & Corrective controls. These controls are reviewed periodically & upgraded whenever necessary.
9. The Names Of Companies Which Have Become Or Ceased To Be Its Subsidiaries, Joint Ventures Or Associate Companies During The Year
Sr. no |
Name of Company |
CIN |
Type association |
of |
Dt of joining / Cessation |
------Nil----------- |
10. Report on the Performance of the Subsidiaries, Associate Companies and Joint Venture
The Company does not have any Subsidiaries, Associates or Joint Ventures.
11. Deposits
The Company has not accepted any Deposits during the year within the meaning of Section 73 of Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
Sr. No . |
Particulars |
||
1 |
Amount accepted during the year |
Nil |
|
2 |
Amount remaining unclaimed or unpaid at the end of year |
Nil |
|
3 |
Details of default in repayment of deposit or interest thereon during the year - |
Nil |
|
No. of such cases -At the beginning of year Maximum during the year At the end of year |
Deposit |
Interest |
|
Total amount involved -At the beginning of year Maximum during the year At the end of year |
Deposit |
Interest |
12. Auditors -
A. Statutory Auditors -
M/s. HMA & Associates, Chartered Accountants, were appointed as Auditors of the Company at the Annual General Meeting held on 30th September 2015 for a term of five consecutive years. As per the provisions of Section 139 of Companies Act, 2013, the appointment of the Auditors is duly ratified by the Members.
B. Secretarial Auditors -
The Board has appointed Upendra C. Shukla, Practicing Company Secretaries, to conduct Secretarial Audit for the financial year 2015-16. The Secretarial Audit
Report for the financial year ended 31 March, 2016 is annexed herewith as Annexure 1 to this Report.
D. Internal Auditors:
Pursuant to the provisions of Section 138 and other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, the Company has appointed M/s. Jain Chhajed & Associates(FRN127911W), Chartered Accountants, Nasik, as internal auditors. During the year, the Company continued to implement their suggestions and recommendations to improve the control environment. Their scope of work includes review of processes for safeguarding the assets of the Company, review of operational efficiency, effectiveness of systems and processes and assessing the internal control strengths of all areas.
13. Audit Reports:
A. Statutory Auditors Report - The observations made by the Auditors of the Company in their report are self-explanatory - except for observations regarding pending litigations. The explanations of the management on the comments of the auditors with respect to the pending litigations are as follows:
- Income Tax Demand raised for AY 2004-05 for Rs. 73,71,366/- : The Company has taken appropriate steps and filed an appeal with High Court Mumbai which is under process. Further, the Honâble BIFR has given relief for demand raised for AY 2004-05 vide their order dated 10th October, 2013. On these grounds the management is positive that relief would be granted by the High Court.
- Sales Tax Demand for Rs. 6,19,18,168/-: The Company has filed an appeal with the Appellate Authority for waiver of interest and penalty charged. Further, the Honâble BIFR has given relief for demand raised by Sales Tax Department vide their order dated 10th October, 2013. On these grounds the management is positive that relief would be granted by the Appellate Authority.
B. Secretarial Audit report- The observations made by the Secretarial Auditors of the Company in their report for the year ended 31st March, 2016 are self-explanatory - except for observations regarding filing of forms, whole time Company Secretary and adequate systems & processes. Below are the responses of the Management on the observations made by the Secretarial Auditor:-
1. The Company has initiated filing of the required forms/documents;
2. Even after several efforts, the Company could not find any candidate who will work as whole time Company Secretary, therefore the Company had appointed a Company Secretary on part time basis to look after compliances related to the Companies Act. However, efforts are being made to find out a suitable candidate for the position of whole time Company Secretary.
3.The management of the Company ensures compliance of all the applicable laws. However, it is in process of strengthening the existing system to ensure due compliances.
14. Share capital -
During the year, the Company has not issued any shares with differential rights, or sweat equity shares. Company has neither issued any employee stock options nor has provided money for purchase of its own shares by employees or by trustees for the benefit of employees.
15. Extract Of Annual Return -
As required, pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014, an extract of annual return in MGT 9 forms part of this Annual Report as Annexure 2
16. Conservation Of Energy, Research & Development, Technology Absorption, Foreign Exchange Earnings and Outgo
A. Conservation of energy-
The Company has always been conscious of the need for conservation of energy and energy conservation measures have been implemented at all the plants and offices of the Company. Efforts for conservation of energy in all areas are made on a continuous basis highlighting areas for the same-maximizing use of daylight, using energy efficient lamps, arresting leakages in compressed air piping and electrical systems. With further efforts towards substitution of traditional sources of energy with renewable energy, measures for efficient usage of power and investment in additional equipment for saving of electricity. The illustrative measures taken towards energy conservation at Units are:
The steps taken or impact on conservation of energy:
- Installation of Energy Efficient LED Batten fittings for task lighting and LED High bay for General Lighting, Use of 36W x 4 T5 lamps for shop lights, Installation of LED street lights, Installation of LED low bays fittings etc.
- Installation of Variable Frequency Drives (VFD) for energy saving in Compressors.
- Use of Energy Efficient Pumps, Energy Efficient Compressed Air Nozzles.
- Every unit has set targets for paper, power and water consumption per employee which is monitored on a regular basis.
- Use of motion sensors & timers for on-off control of lighting system.
- The Air Conditioners are kept at a moderate temperature and all the electrical equipments are turned off, whenever they are not required by the Office Staff.
B. Technology absorption-
There is a continuing programme to enhance its range of products & allied parts to meet the future needs of the evolving market by providing a strong proposition for its customers by providing multiple solutions for customer requirements.
The Company''s in-house Research and Development teams during the year have continued to focus on developing products that were indigenous, intelligent and energy efficient. Continued R&D efforts of the past years put in developing Lamps and Lighting Products along with the electronics with higher efficiency & improved lumen output.
C. Foreign exchange earnings and Outgo-
Total Foreign Exchange Outgo is Rs. 533.36 Lacs & Earning is Rs. 19.37 Lacs
17. Directors & Key Managerial Personnel (KMP)-
a. None of the Directors are disqualified from being appointed as Directors as specified in terms of Section 164 of the Companies Act, 2013.
b. Mrs. Smita Deepak Patodkar- Director - retires by rotation at the forthcoming A.G.M. and being eligible, offers herself for re-appointment.
c. There have been no appointments / cessation of the Directors or KMP during the year.
18. Declaration Given By Independent Directors U/S 149(6)
All independent Directors have given declarations that they meet the criteria of independence as laid down under section 149(6) of the Companies Act, 2013 and the provisions of the Listing Regulations.
19. Board Committees -
Pursuant to the requirements of the Listing Regulations, the Company has constituted Audit committee, Nomination & Remuneration Committee, Stake holders'' relationship committee & Risk management committee. The details of the committees & its terms of reference are set out in the Corporate Governance Report forming part of the Board''s report.
20. Formal Annual Evaluation:
Pursuant to the provisions of the Companies Act, 2013, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration and Compliance Committees. The policy for formal evaluation of Board''s performance is made available on the website of the Company.
21. Meetings of Board of Directors & Audit Committee Meetings -
During the year Eight Board Meetings and Four Audit Committee Meetings were convened and held, the details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.
22. Vigil Mechanism:
Pursuant to the provisions of section 177(9) & (10) of the Companies Act, 2013, a Vigil Mechanism for directors and employees to report genuine concerns has been established.
The Model Vigil Mechanism Whistleblower Policy is made available on the website of the Company.
23. Companyâs Policy Regarding Appointment, Remuneration, Independence, and Qualification etc. of Directors Where Nomination And Remuneration Committee Is Necessary -
Pursuant to the requirements of the Listing Regulations, the Company has constituted Nomination & Remuneration Committee. The details of the committee & its terms of reference & Policy are set out in the Corporate Governance Report forming part of the Board''s report.
24. Particulars of Loans, Guarantees & Investments U/S 186
Details of Loans:
Sr. No . |
Date of making loan |
Details of Borrower |
Amount |
Purpose for which the loan is to be utilized by the recipient |
Time period for which it is given |
Date of BR |
Date of SR (if reqd) |
Rate of Interest |
Security |
---------------------------------------------------------------------Nil--------------------------------------------------------------------------------- |
|||||||||
Details of Investments:-
Sr. No. |
Date of investment |
Details of Investee |
Amount |
Purpose for which the proceeds from investment is proposed to be utilized by the recipient |
Date of BR |
Date of SR (if reqd) |
Expected rate of return |
1 |
30/06/1998 |
Starlite Lighting Ltd. |
92,00,000 |
Capital for Business |
06/05/98 |
12/05/98 |
Nil |
Sr. No. |
Date of providing security/guarantee |
Details of recipient |
Amount |
Purpose for which the security/guarantee is proposed to be utilized by the recipient |
Date of BR |
Date of SR (if any) |
Commission |
1 |
14/01/2013 |
Ashoka Buildcon Ltd. |
2,73,734 |
Performance Guarantee |
04/12/12 |
N.A |
Nil |
25. Particulars Of Contracts & Arrangements With Related Parties U/S 188 (1)
All Related Party Transactions that were entered into during the financial year were on an arm''s length basis and were in the ordinary course of business. The policy on Related Party Transactions as approved by the board is available on the Company''s website. The details are as per Annexure 3.
26. Managerial Remuneration As Per Sec 197 (12) Information under Rule 5 of Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014.
a. Ratio of Directors'' remuneration to median remuneration of employees -
Sr. No. |
Name of Director |
Remuneration pa. |
Median remuneration p.a.(based on 12 months working) |
Ratio |
Remark |
1 |
Rochana Bharati |
Nil |
â |
Nil |
Nil |
2 |
Arvind Bharati - M.D. |
20,16,000 |
1,91,382 |
10.53 times |
Nil |
3 |
Vijay Tiwari |
Nil |
â |
â |
Nil |
4 |
Smita Patodkar-Executive Director |
9,00,000 |
1,91,382 |
4.70 times |
Nil |
5 |
S. K. Menon |
Nil |
â |
â |
Nil |
b. Percentage increase in remuneration of each Director & KMP -
Sr. no. |
Name |
Designation |
Remuneration 14-15 |
Remuneration 15-16 |
% increase |
1 |
Arvind Bharati |
M.D. |
7,20,000 |
20,16,000 |
180% |
2 |
SmitaPatodkar |
Executive Director |
9,00,000 |
9,00,000 |
0% |
3 |
Deepak Joshi |
CFO |
5,74,059 |
6,58,062 |
14.63% |
c. No. of permanent employees on the roll -
Company has 90 permanent employees of which 62 were employed throughout the year & remaining were employed for the part of the year.
d. Percentage increase in the median remuneration of employees -Average Percentage increase in the median remuneration of employees compared to previous year is 3.78%.
e. Explanation on the relationship between average increase in remuneration of Directors, KMP & Employees vis a vis Company performance -
Average increase in remuneration of employees & KMP is guided by factors like economic growth, inflation, mandatory increases, external competitiveness and the need for talent retention. Remuneration is predominantly fixed in nature and attributable to employee''s skills & experience and hence a perfect correlation with company performance cannot be achieved.
f. Comparison of remuneration of the KMP against the performance of the Company -
The turnover of the Company in F.Y. 2014-15 was Rs. 2,707.75 lakhs & in F.Y. 2015-16 was Rs. 4,283.39 lakhs. i.e. rise of 58.19%. In view of the improved performance of the Company, the rise in average remuneration of the employees of 22.75% is justifiable. The Remuneration of KMP increased from 0.48% in 2014-15 to 0.62% in 2015-16.
g. Variation in market capitalisation, price earnings ratio as at the closing date of the FY 2015-16 and FY 2014-15 and percentage increase or decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer -
Sr. No. |
Particulars |
31st March, 2016 |
31st March, 2015** |
% Variation |
1 |
Market Capitalisation (Rs. In Lacs) |
6,571.53 |
4,275.90 |
53.70% |
2 |
Price Earnings Ratio (Mkt. Price/EPS) |
48.04 |
28.11 |
70.90% |
3 |
Percentage increase/(decrease) in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer (Last public issue made in 1994 @ Rs. 10/- per share of FV Rs. 10/-) |
284.30% |
375.10% |
|
4 |
Market Price |
38.43 |
47.51 |
- |
28. Development & Implementation of Risk Management Policy:
Risk management practices seek to sustain and enhance long term competitive advantage of the Company. The Board has approved and implemented Risk Management Policy with an aim to identify, evaluate, monitor and minimize risks that are identifiable. The Risk Management Policy of the Company is available on the website of the Company.
29. Corporate Governance and Certificate
Your Company is committed to the tenets of good Corporate Governance and has taken adequate steps to ensure that the requirements of Corporate Governance as laid down in the Listing Regulations are complied with. A separate report on Corporate Governance is being published as a part of the Annual Report of the Company.
The Compliance certificate from the Auditors regarding compliance of conditions of corporate governance as stipulated in the Listing Regulations is annexed with the Corporate Governance Report.
30. Directorâs Responsibility Statement:
Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors to the best of their knowledge and belief confirm that: -
I. In the preparation of the annual accounts, the applicable accounting standards have been followed;
II. Appropriate accounting policies have been selected and applied consistently, and have made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2016 and of the Profit of the Company for the year ended on 31st March, 2016;
III. Proper and sufficient care has been taken for the maintenance of the adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
IV. The annual accounts have been prepared on going concern basis;
V. Internal financial controls had been laid down and that such internal financial controls are adequate and were operating effectively.
VI. Proper systems were devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
31. Sexual Harassment Of Women At Workplace (Prevention,Prohibition And Redressal) Act, 2013 -
The Company has constituted an Internal Complaints Committee (ICC) for organizing workshops and awareness programs at regular intervals for sensitizing employees on the issues and penal implications w.r.t. workplace sexual harassment. The ICC shall be responsible for prevention and redressal of complaints, if any. The ICC ensures timely submission of reports to the Board.
32. Listing Fees-
Your Company''s shares are listed in The Bombay Stock Exchange Limited, Mumbai and the Annual Listing fees for the year under review have been paid.
33. Acknowledgements:
The Directors greatly value the support and co-operation received during the year from the Company''s Bankers, Statutory Authorities and all organizations connected with its business. The Directors also take pleasure in commending the valuable contributions made by the Company''s employees at all levels during the year under review.
Place: - Nasik
Date: - 31st August 2016. By order of the Board of Directors
sd/- sd/-
Mr. Arvind Bharati Dr. Smt. Rochana Bharati
(Managing Director) (Chairperson)
DIN - 00148830 DIN - 00163408
Mar 31, 2015
To,
The Members of
STARLITE COMPONENTS LIMITED
The Directors have pleasure in presenting their Twenty Fourth Annual
Report, together with the Financial Statements - Audited Accounts
together with Audit Report of the Company for the year ended 31st
March, 2015.
1. Financial Results -
(Amount in Rs.)
PARTICULARS CURRENT YEAR PREVIOUS YEAR
2014-15 2013-14
(9 months)
Gross Income 27,24,91,081 13,72,15,950
EBIDTA 1,53,87,300 (61,66,135)
Interest & finance expenses 1,09,51,645 23,50,640
Depreciation 39,31,724 11,60,674
Profit / (Loss) Before Tax 87,75,438 (96,77,449)
Less : Provision for Taxation
Less: Provision for Deferred Tax Liability (14,47,401) (85,39,684)
Profit / (Loss) after Tax 1,02,22,839 (11,37,765)
Add : Profit brought forward (16,07,71,045) (15,96,33,279)
Proposed Dividend - Equity - -
Proposed Dividend - Preference - -
Tax on Dividend - -
Profit carried forward (15,05,48,206) (16,07,71,045)
2. Dividend:
Directors do not recommend any Equity dividend at the Annual General
Meeting.
3. Amount Proposed To Be Transferred To Reserves :
The Directors do not propose any transfer to Reserves.
4. Brief description of the Company's working during the year / State
of Company's affair
In line with the commitment put forth by the management in previous
annual report, the Company has shown remarkable growth of 52.06% in
turnover and profit during the year and achieved a turnover of Rs.
Rs.2707.75 lacs (against Rs. 1780.77 lacs in the previous year).
Profit after tax has also improved to Rs.102.16 lacs during the year
under consideration (previous year closed at a Loss Rs. 192.41 lacs).
These figures clearly show that the steps taken by the company have
worked and are reaping results. This comparison is made with the
corresponding period of 12 months of previous year, though the previous
Balance Sheet was drawn for a period of 9 months.
This result is due to some fundamentally correct strategic decision
taken by the management revolving around improvement of bottom line by
stopping loss making or low margin product categories & by hedging
business and market risks over a larger basket of customers. This along
with the effort but in by the entire team, the Company has managed to
improve its over all position. The Company is now on the right path to
achieve the challenging goals that it has set for the coming 5 years.
The Company is also strongly focusing on further strengthening its
presence in E-Commerce, OEM Customer base and Government projects,
whichare beginning to give the Company consistent revenue & a more
stability to its businessmodel.
The management also has plans of increasing the manufacturing capacity
of LED products, in the coming year, to provide quality products and to
cater to the strong demand of the market. Encouraged with the
performance of previous year and seeing the growing potential of the
LED market, the management feels even more confident & committed of
achieving better top and bottom line during the next financial year.
During the first 6 months of the financial year, there was moderate
improvement in the country's economic climate with GDP growth improving
to 5.5%, Services sector continuing its strong growth trend,
Agriculture also contributing with reasonable development and only IIP
showing an erratic trend with a 1.5% growth. The change in Government
in May'2014 raised high expectations that a strong government not
constrained by coalition politics will usher in significant reforms
that can accelerate growth. Globally, the sharp drop in crude oil
prices helped contain inflation, the Indian Rupee, after a year of
volatility in 2013-14, stabilized against the USD and improved against
the Euro, with only the RBI continuing its conservative approach -
reducing repo rates, though not to the expected levels.
Despite the positive environment, the revival of the investment cycle
has not happened and economic growth remains subdued with industrial
production remaining lackluster. The overall volatility has had a
negative influence on consumer sentiment and demand.
Your Company aggressively pushed sales in the domestic market and
successfully increased sales and achieved its sales revenues of
Rs.2707.75 lacs with a growth of 52.06%, and also improved to Rs.102.16
lacs.
There is still optimism that the new government at the Centre will
accelerate economic activity and RBI will ease interest rates once
inflation is contained, thus favorably impacting the overall sentiment
in the manufacturing sector. Domestic consumption remains a key growth
engine for the Indian economy and with significant additions to the
working age population; rising disposable incomes particularly in rural
areas and the government revived spending on infrastructure and in the
social sector to foster inclusive growth, will help India realize its
long term development potential in a sustainable way. The Company,
with a clear and dedicated focus, is investing in and building its R&D
capabilities, developing product lines with better profit margins and
streamlining its production processes to eliminate waste from
operations.
5. Change In Nature Of Business, If Any -
No change has taken place during the year in the nature of Company's
business.
6. Material Changes & Commitments Affecting The Financial Position
Which Have Occurred Between Date Of Year End To The Date Of Report -
The authorized capital of the Company has been increased from Rs. 9
Crore to Rs. 18 Crore on 1st July 2015. Subsequently, the outstanding
share warrants amounting to Rs. 7.20 Crore were converted into Equity
shares on 6t hJuly 2015. Simultaneously, preferential allotment
amounting to Rs. 90 lakhs was done to Promoters of the Company, making
total paid up equity capital of Rs. 17.10 Crore This allotment was done
as per the BIFR sanctioned scheme of rehabilitation dated 10th October
2013.
7. Significant And Material Orders Passed By The Regulators Or Courts
Or Tribunals Impacting The Going Concern Status And Company's
Operations In Future :
No such Orders were passed by Regulators, or Courts or Tribunals.
8. Details Of Adequacy Of Internal Financial Controls With Reference
To The Financial Statements -
Company has well devised Internal control systems adopted by the
Management to assist in achieving management's objective of ensuring
the orderly and efficient conduct of its business, including, adherence
to management policies, the safeguarding of assets, the prevention and
detection of fraud and error, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial
information. The system of internal control is under continuing
supervision by Management to determine that it is functioning as
prescribed and is modified, as appropriate, for changes in conditions.
Company endeavors to create the control environment with budgetary
controls and an effective internal audit function.
Specific control procedures include -
- Control over movement of physical Assets, Goods & Services
- Control over timely Legal compliances & Compliance of Accounting
standards
- Asset acquisitions & disposal
- Control over borrowings & liabilities
- Control over financial transactions.
- Comparing and analyzing the financial results with corresponding
budgeted figures.
These controls are reviewed periodically & upgraded whenever necessary.
9. The Names Of Companies Which Have Become Or Ceased To Be Its
Subsidiaries, Joint Ventures Or Associate Companies During The Year
Sr.
no Name of Company CIN Type of Dt of joining
association Cessation
NIL
10. Report on the Performance of the Subsidiaries, Associate Companies
and Joint Venture
The Company does not have any Subsidiaries, Associates or Joint
Ventures.
11.Deposits
The Company has not accepted any Deposits during the year within the
meaning of Section 73 of Companies Act, 2013 and the Companies
(Acceptance of Deposits) Rules, 2014.
Sr.
no Particulars
1 Amount accepted during the year Nil
2 Amount remaining unclaimed or unpaid at the Nil
end of year
3 Details of default in repayme or Nil
interest theron during the year-
No. of such cases - Deposit Interest
At the beginning of year
Maximum during the year
At the end of year
Total amount involved - Deposit Interest
At the beginning of year
Maximum during the year
At the end of year
12. Auditors -
A. Statutory Auditors -
M/s. HMA & Associates, Chartered Accountants, appointed as the Auditors
of the Company, retire at the conclusion of the ensuing Annual General
Meeting, but, being eligible, offer themselves for reappointment till
the conclusion of AGM to be held for the F.Y. 2019-20. In this
connection, the Company has received the requisite certificate U/S. 139
(1) of the Companies Act, 2013.
B. Secretarial Auditors -
The Board has appointed Upendra C. Shukla, Practicing Company
Secretaries, to conduct Secretarial Audit for the financial year
2014-15. The Secretarial Audit Report for the financial year ended
March 31, 2015 is annexed herewith as Annexure 1 to this Report.
C. Internal Auditors -
Pursuant to the provisions of Section 138 and other applicable
provisions, if any, of the Companies Act, 2013 read with the Companies
(Accounts) Rules, 2014, the Company has appointed Jain Chhajed &
Associates (FRN 127911 W), Chartered Accountants, Nasik, as internal
auditors. During the year, the Company continued to implement their
suggestions and recommendations to improve the control environment.
Their scope of work includes review of processes for safeguarding the
assets of the Company, review of operational efficiency, effectiveness
of systems and processes and assessing the internal control strengths
of all areas.
The remuneration proposed to be paid to them requires ratification of
the shareholders of the Company. In view of this, your ratification for
payment of remuneration to internal auditors is being sought at the
ensuing AGM.
The steps taken or impact on conservation of energy:
- Installation of Energy Efficient LED Batten fittings for task
lighting and LED High bay for General Lighting, Use of 36W x 4 T5 lamps
for shop lights, Installation of LED street lights, Installation of LED
low bays fittings etc.
- Installation of Variable Frequency Drives (VFD) for energy saving in
Compressors.
- Use of Energy Efficient Pumps, Energy Efficient Compressed Air
Nozzles.
- Every unit has set targets for paper, power and water consumption per
employee which is monitored on a regular basis.
Use of motion sensors & timers for on-off control of lighting system.
- The Air Conditioners are kept at a moderate temperature and all the
electrical equipments are turned off, whenever they are not required by
the Office Staff.
The capital investment on energy conservation equipments:
Company has invested Rs. 15.71 Lakh for achieving these results.
B. Technology absorption-
There is a continuing programme to enhance its range of products &
allied parts to meet the future needs of the evolving market by
providing a strong proposition for its customers by providing multiple
solutions for customer requirements.
The Company's in-house Research and Development teams during the year
have continued to focus on developing products that were indigenous,
intelligent and energy efficient. Continued R&D efforts of the past
years put in developing Lamps and Lighting Products along with the
electronics with higher efficiency & improved lumen output.
C. Foreign exchange earnings and Outgo-
Total foreign exchange outgo is Rs. 12.14 Crore & earning is Nil.
17 Directors & Key Managerial Personnel (KMP)-
a. None of the Directors are disqualified from being appointed as
Directors as specified in terms of Section 164 of the Companies Act,
2013.
b. Smt. Rochana Bharati - Director - retires by rotation at the
forthcoming A.G.M. and being eligible, offers herself for
re-appointment.
c. Following are the details of appointments / cessation of the
Directors during the year -
Sr.
no Name DIN Appointment / Remarks
cessation
Date
1 Mr. Vijay Tiwari  02946693 14/02/2014 Additional Director
Independent Director Regularized on
30/09/2014.
2 Mrs.Smita Patodkar- 06850370 14/02/2014 Additional Director
Independent Director Regularized on
30/09/2014.
3 Mrs.Smita Patodkar - 06850370 13/11/2014 Resigned as
Independent Director Independent Director
4 Mrs. Smita Patodkar- 06850370 14/11/2014 Additional Director
to
Director be regularized.
5 Mr. Shreekumar
Menon - 00168680 14/11/2014 Additional Director
to
Independent Director be regularized.
13. Audit Reports :
A. Statutory Auditors Report - The observations made by the Auditors
of the Company in their report are self-explanatory - except for
observations regarding pending litigations. The explanations of the
management on the comments of the auditors with respect to the pending
litigations are as follows:
- Income Tax Demand raised for AY 2004-05 for Rs. 73,71,366/- : The
Company has taken appropriate steps and filed an appeal with High Court
Mumbai which is under process. Further, the Hon'ble BIFR has given
relief for demand raised for AY 2004-05 vide their order dated 10th
October, 2013. On these grounds the management is positive that relief
would be granted by the High Court.
- Sales Tax Demand for Rs. 6,19,18,168/-: The Company has filed an
appeal with the Appellate Authority for waiver of interest and penalty
charged. Further, the Hon'ble BIFR has given relief for demand raised
by Sales Tax Department vide their order dated 10th October, 2013. On
these grounds the management is positive that relief would be granted
by the Appellate Authority.
B. Secretarial Audit report- The observations made by the Secretarial
Auditors of the Company in their report for the year ended 31st March,
2015 are self- except for observation regarding adequate systems &
processes. The explanation of the management on the comments of the
secretarial auditors is as follows:
- The management is in the process of strengthening the existing system
and also has established the procedures to ensure proper compliances of
applicable laws, rules, regulations and guidelines.
14. Share capital -
During the year, the Company has not issued any shares with
differential rights, or sweat equity shares. Company has neither issued
any employee stock options nor has provided money for purchase of its
own shares by employees or by trustees for the benefit of employees.
15. Extract Of Annual Return -
As required, pursuant to section 92(3) of the Companies Act, 2013 and
Rule 12(1) of the Companies (Management and Administration) Rules,
2014, an extract of annual return in MGT 9 forms part of this Annual
Report as Annexure 2
16. Conservation Of Energy, Research & Development, Technology
Absorption, Foreign Exchange Earnings and Outgo
A. Conservation of energy-
The Company has always been conscious of the need for conservation of
energy and energy conservation measures have been implemented at all
the plants and offices of the Company. Efforts for conservation of
energy in all areas are made on a continuous basis highlighting areas
for the same - maximizing use of daylight, using energy efficient
lamps, arresting leakages in compressed air piping and electrical
systems. With further efforts towards substitution of traditional
sources of energy with renewable energy, measures for efficient usage
of power and investment in additional equipment for saving of
electricity. The illustrative measures taken towards energy
conservation at Units are:
Following are the details of appointments of the KMP during the year -
Sr.
no Name PAN / DIN Date of appointment
1 Mr. Deepak Joshi - CFO AGHPJ5917C 14th November 2014
18. Declaration Given By Independent Directors U/S 149(6)
A declaration by the Independent Directors that they meet the criteria
of independence as provided in sub-section (6) of Section 149 of the
Companies Act, 2013 is enclosed as Annexure 3.
19. Board Committees -
Pursuant to the requirements of Clause 49 of the Listing Agreement, the
Company has constituted Audit committee, Nomination & Remuneration
Committee, Stake holders' relationship committee & Risk management
committee. The details of the committees & its terms of reference are
set out in the Corporate Governance Report forming part of the Board's
report.
20. Formal Annual Evaluation:
Pursuant to the provisions of the Companies Act, 2013, the Board has
carried out an annual performance evaluation of its own performance,
the directors individually as well as the evaluation of the working of
its Audit, Nomination & Remuneration and Compliance Committees. The
policy for formal evaluation of Board's performance is as per Annexure
4.
21 Meetings of Board of Directors & Audit Committee Meetings -
During the year seven Board Meetings and four Audit Committee Meetings
were convened and held, the details of which are given in the Corporate
Governance Report. The intervening gap between the Meetings was within
the period prescribed under the Companies Act, 2013.
22 Vigil Mechanism :
Pursuant to the provisions of section 177(9) & (10) of the Companies
Act, 2013, a Vigil Mechanism for directors and employees to report
genuine concerns has been established.
The details of Policy are as per Annexure 5.
23. Company's Policy Regarding Appointment, Remuneration, Independence,
and Qualification etc. of Directors Where Nomination And Remuneration
Committee Is Necessary -
Pursuant to the requirements of Clause 49 of the Listing Agreement, the
Company has constituted Nomination & Remuneration Committee. The
details of the committee & its terms of reference & Policy are set out
in the Corporate Governance Report forming part of the Board's report.
24. Particulars Of Loans, Guarantees & Investments U/S 186 Details of
Loans:
SL
No Date of Details of Amount Purpose for
making Borrower which the
loan loan is to be
utilized by the
recipient
Nil
Date of
making
loan Time Date Date of Rate of Security
period of BR SR (if Interest
for reqd)
which
it is
given
Nil
Details of Investments:-
SL Date of Details of Amount Purpose for which the
No investment Investee proceeds from
investment is
proposed to be
utilized by the recipient
1 09/06/95 Paragon 5,32,350 Capital for business.
Plastics Ltd.
2 30/06/98 Starlite 92,00,000 Capital for business
Lighting Ltd.
Date of investment Date of BR Date of Expected
SR (if rate of
reqd) return
09/06/95 09/06/95 12/05/95 Nil
30/06/98 06/05/98 12/05/95 Nil
Details of Guarantee / Security Provided:
SL Date of providing Details Amount Purpose for which
No security/guarantee of the
recipient security/guarantee is
proposed to be
utilized by the
recipient
1 14/01/13 Ashoka 2,73,734 Performance
Buildcon guarantee
Ltd.
Date of providing
security/guaranteed Date Date of Commission
of BR SR (if any)
14/01/13 04/12/12 N.A Nil
25. Particulars Of Contracts & Arrangements With Related Parties U/S
188 (1) The details are as per Annexure 6.
26. Managerial Remuneration As Per Sec 197 (12)[Information under Rule
5 of Companies (Appointment & Remuneration of Managerial Personnel)
Rules, 2014.
a. Ratio of Directors' remuneration to median remuneration of
employees Â
Sr.
no Name of Director Remuneration Median Ratio Remark
p.a. remuneration
p.a.
(based on 12
months
working)
1 Rochana Bharati Nil Nil Nil
2 Arvind Bharati
- M.D. 7,20,000 1,84,417 3.90 Nil
times
3 Vijay Tiwari Nil Nil
4 Smita Patodkar- 9,00,000 1,84,417 4.88 Nil
Executive Director times
5 S. K. Menon Nil Nil
b. Percentage increase in remuneration of each Director & KMP -
Sr. Name Designation Remuneration Remuneration %
no. 13-14 14-15 increase
1 Arvind Bharati M.D. 720,000 7,20,000 0
2 Smita Executive 0 9,00,000 100%
Patodkar Director
3 Deepak Joshi CFO 0 5,74,059 100%
c. No. of permanent employees on the roll -
Company has 86 permanent employees of which 58 were employed throughout
the year & remaining were employed for the part of the year.
d. Percentage increase in the median remuneration of employees -
Average Percentage increase in the median remuneration of employees
compared to previous year is 16.12%.
e. Explanation on the relationship between average increase in
remuneration of Directors, KMP & Employees vis a vis Company
performance -
Average increase in remuneration of employees & KMP is guided by
factors like economic growth, inflation, mandatory increases, external
competitiveness and the need for talent retention. Remuneration is
predominantly fixed in nature and attributable to employee's skills &
experience and hence a perfect correlation with company performance
cannot be achieved
f Comparison of remuneration of the KMP against the performance of the
Company - The turnover of the Company in F.Y. 2013-14 was Rs. 1780.77
lakhs & in F.Y. 2014-15 was Rs. 2707.75 lakhs. i.e. rise of 52.06%. In
view of the improved performance of the Company, the rise in average
remuneration of the employees of 19.10% is justifiable. The
Remuneration of KMP increased from 0.40% in 2013-14 to 0.48 % in
2014-15.
g. Variation in market capitalisation, price earnings ratio as at the
closing date of the FY 2014-15 and FY 2013-14 and percentage increase
or decrease in the market quotations of the shares of the Company in
comparison to the rate at which the Company came out with the last
public offer -
As the Company was in the process of listing its shares with BSE, and
since the same was under process till April 2015, the shares were not
been traded. Hence, no data is available for comparison.
h. Average percentile increase already made in the salaries of
employees other than managerial personnel in the last financial year
and its comparison with the percentile increase in the managerial
remuneration and justification thereof for increase in managerial
remuneration & Exceptional circumstances for increase in the managerial
remuneration -
Average percentile increase in the remuneration of employees other than
managerial remuneration was 27.31%. As compared to this, Average
percentile increase in managerial remuneration was 54.59%. The reason
being increase in no. of managerial persons in 2014-15 as compared to
2013-14.
i. Comparison of remuneration of each KMP against the performance of
the Company-
Turnover of the Company for F.Y.2014-15 is Rs. 270775416/-
Sr.
no Name Designation Remuneration Remuneration %
1 Arvind Bharati M.D. 7,20,000 0.27%
2 Deepak Joshi CFO 5,74,059 0.21%
j. The key parameters for any variable component of remuneration
availed by the directors - No variable component is payable to
Directors.
k. The ratio of remuneration of highest paid director to that of
employees who are not directors but receive remuneration in excess of
the highest paid director during the year -
There are no such employees getting remuneration in excess of highest
paid Director. The remuneration is as per the remuneration policy of
the Company.
27 Particulars Of Employees -
- Following Director-Employees hold more than 2% equity -
a. Arvind Bharati - M.D. - 14.83%
b. Rochana Bharati - Director - 4.86%
- Particulars pursuant to the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014,
None of the employees is in receipt of remuneration exceeding Rs. 60
lakhs p.a. or Rs. 5 lakh p.m. if employed for part of the year.
- Particulars of employees drawing remuneration more than the
remuneration drawn by the MD.
- Name - Mrs. Smita Patodkar
- Designation - Executive Director
- Remuneration received - Rs. 9,00,000/-
- Nature of employment - Permanent
- Qualification - B.A.
- Experience - 8 years in Administration & legal field.
- Date of commencement of employment - 14th November 2014.
- Age - 38 years
- Last employment held before joining the Company - none.
- Percentage of equity shares held - Nil
- Relation with existing Directors - None.
28. Development & Implementation of Risk Management Policy:
A statement on Risk Management Policy is given in Corporate Governance
Report.
29. Corporate Governance and Certificate
Your Company is committed to the tenets of good Corporate Governance
and has taken adequate steps to ensure that the requirements of
Corporate Governance as laid down in Clause 49 of the Listing Agreement
are complied with. A separate report on Corporate Governance is being
published as a part of the Annual Report of the Company.
The Compliance certificate from the Auditors regarding compliance of
conditions of corporate governance as stipulated in Clause 49 of the
Listing agreement is annexed with the Corporate Governance Report.
30. Director's Responsibility Statement:
Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors
to the best of their knowledge and belief confirm that: -
I. In the preparation of the annual accounts, the applicable
accounting standards have been followed;
II. Appropriate accounting policies have been selected and applied
consistently, and have made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at 31st March, 2015 and of the Profit of the Company
for the year ended on 31st March, 2015;
III. Proper and sufficient care has been taken for the maintenance of
the adequate accounting records in accordance with the provisions of
the Companies Act, 2013 for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
IV. The annual accounts have been prepared on going concern basis;
V. Internal financial controls had been laid down and that such
internal financial controls are adequate and were operating
effectively.
VI. Proper systems were devised to ensure compliance with the
provisions of all applicable laws and that such systems were adequate
and operating effectively.
31. Sexual Harassment Of Women At Workplace (Prevention, Prohibition
And Redressal) Act, 2013 -
The Company has constituted an Internal Complaints Committee (ICC) for
organizing workshops and awareness programs at regular intervals for
sensitizing employees on the issues and penal implications w.r.t.
workplace sexual harassment. The ICC shall be responsible for
prevention and redressal of complaints, if any. The ICC ensures timely
submission of reports to the Board.
32. Listing Fees-
Your Company's shares are listed in The Bombay Stock Exchange Limited,
Mumbai and the Annual Listing fees for the year under review have been
paid.
33. Acknowledgements:
The Directors greatly value the support and co-operation received
during the year from the Company's Bankers, Statutory Authorities and
all organizations connected with its business. The Directors also take
pleasure in commending the valuable contributions made by the Company's
employees at all levels during the year under review.
Place: - Nasik
Date: - 31st August 2015. By order of the Board of Directors
sd/- sd/-
Arvind Bharati Smt. Rochana Bharati
(Managing Director) (Chairperson)
DIN- 00148830 DIN - 00163408
Mar 31, 2014
The Members,
The Directors have pleasure in presenting the Twenty-Second Annual
Report together with the audited statements of accounts for 9 months
ended 31st March 2014.
THE COMPANIES ACT 2013
The Companies Act, 2013 made effective w.e.f September 2013, have
introduced Uniform Financial Year, and all Companies are required to
follow the same. Therefore your Company has adopted Uniform Financial Year,
hence this report is prepared for the period of nine months. i.e. from
1st July, 2013 to 31st March, 2014.
Since this report pertains to financial year that commenced prior to 1
April 2014, the contents therein are governed by the relevant
provisions / schedules / rules of the Companies Act, 1956, in
compliance with General Circular No.08/2014 dated 4 April 2014 issued
by the Ministry of Corporate Affairs.
FINANCIAL RESULTS
The financial results for the 9 months ended 31st March, 2014 are
briefly stated below:
(Rs in lacs)
Particulars 2013-14 2012-13
(9 Months)
Sales and Other Income 1372.16 3778.77
Operating Profit (Before Interest,
Depreciation and Tax) (61.66) (288.57)
Less: Interest and other financial charges 23.50 202.05
Depreciation 11.61 13.89
Profit before Tax (96.77) (487.19)
Less: Provision for Tax
Provision for Deferred Tax 85.40 (24.93)
Profit after Tax/(Loss) (11.38) (512.12)
OPERATIONS
During the year, your company achieved a turnover of 1372.16 lacs
including other income, which shows decline in the turnover as compared
to the previous year, this decline is due to the decision of the
management to stop procurement of loss making products. As a result of
the same your Company has managed to improve the position of losses of
the Company. Your Company has incurred a Loss after tax of 11.38 lacs
during the year under consideration which shows substantial improvement
over the previous year. Your Company is trying to achieve encouraging
results by implementing its diversification plan into components of
Compact Fluorescent Lamps, LED products & their fixtures, which are
presently in great demand. After consolidation of the electronics
business, seeing the scope & potential, your Company has already
diversified into the manufacture & trading of LED, Halogen & Induction
Lighting Products. Encouraged with the performance, the management
feels even more confident & committed to achieve better profitability
during the current year.
DIVIDEND
The Directors do not recommend any dividend for the year under review.
DIVIDEND
The Directors do not recommend any dividend for the year under review.
FIXED DEPOSITS
The Company has not accepted any fixed deposit from the public during
the year under review.
DIRECTORS
Dr. Smt. Rochana Bharati, liable to retire by rotation in terms of
section 152(6) of Companies Act, 2013 and, being eligible, offers
herself for re- appointment.
Pursuant to Section 149(4) of the said Act, every listed company is
required to appoint at least one third of its directors as Independent
Directors. The Board already has half of its directors in the category
of Independent Directors in terms of the provisions of Clause 49 of the
Listing Agreement.
Since Mr. Kannan Ranganathan has resigned from his Directorship from
6th February, 2014, to fillup the casual vacancy caused due to his
resignation, Mr. Vijay Tiwari has been appointed as an Additional
(Independent) Director.
To fillup the casual vacancy caused due to sad demise of Mr. G. K.
Srikantan, Mrs. Smita Patodkar has been appointed as an Additional
(Independent) Director.
STATUTORY DISCLOSURES
Information as per Section 217(1) read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is given
in the annexure to this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors Responsibility Statement, it is
hereby confirmed that:
- In preparation of annual accounts, the applicable Accounting
Standards have been followed and there was no material departure from
the said standards.
- The accounting policies selected and applied are consistent and the
judgements and estimates made are reasonable and prudent so as to give
true and fair view of the state of affairs and of the loss incurred by
the Company at the end of the year.
- Adequate accounting records as per the provisions of the Companies
Act, 1956 have been maintained and proper and sufficient care has been
taken for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
- The annual accounts are prepared on Going Concern Basis
CORPORATE GOVERNANCE
Your Company is committed to achieving the standards of Corporate
Governance and continues to lay a strong emphasis on transparency,
accountability and integrity. A detailed separate report on Corporate
Governance is provided in this Annual Report together with a
certificate of Company''s Statutory Auditors regarding compliance of
conditions of Corporate Governance as stipulated under Clause 49 of the
Listing Agreement with the Stock Exchange.
SEBI vide its Circular No.CIR/CFD/POLICY CELL/2/2014 dated 17 April
2014 has notified the revised Clause 49 of the Listing Agreement to be
applicable with effect from 1st October 2014. This Report therefore
stands complied against the previous Clause 49 of the Listing
Agreement.
BIFR
Hon''ble BIFR has approved the Sanctioned Scheme for rehabilitation of
the Company vide their letter dated 10th October 2013. Following are
the salient features of the Sanctioned Scheme -
1. Operating Agency - IDBI Bank Ltd.
2. Cut off date - 30th June 2013.
3. Induction of funds in Capital of the Company -
- Strategic Investor - M/s. Solarcopyer Ltd. Rs.420.00 lakhs
- Public Investor on Preferential allotment basis - Rs.300.00 lakhs
- Promoters - Rs.652.80 lakhs
4. Capital restructuring - The paid up capital of the Company which was
Rs.843.00 lakhs has been reduced by 60%. Post reduction, the paid up
capital is Rs. 337.20 lakhs. No. of shares are reduced from 84.30 lakhs
shares of Rs. 10/- each to 33.72 lakhs shares of Rs. 10/- each.
5. According to the Sanctioned Scheme, the Company has allotted equity
shares of Rs. 163.20 lacs to its promoters/associates, in the financial
year 2013-2014.
6. According to the Sanctioned Scheme, the Company has issued 42,00,000
share warrants of Face value Rs. 10 each to the Strategic investor, and
30,00,000 share warrants of Rs. 10 each to its Public Investors;
totalling to 72,00,000 share warrants of Rs. 10 each.
7. BIFR has also asked various Government departments to consider the
reliefs demanded by the Company in the restructuring scheme.
8. The Company is in the process of implementation of Sanctioned Scheme
as per the directions of Hon''ble BIFR.
AUDITORS
M/s. HMA & Associates, Chartered Accountants, appointed as the Auditors
of the Company, retire at the conclusion of the ensuing Annual General
Meeting but are eligible for re-appointment.
Such re-appointment shall be made till the conclusion of Twenty-Eighth
Annual General Meeting to be held in the financial year 2019-20 subject
to ratification at every AGM as per the provisions of Section 139(2) of
the Companies Act 2013.
In this connection, the Company has received the requisite certificate
U/S. 224 (IB) of the Companies Act, 1956 [Corresponding to Section
139(1) of the Companies Act, 2013]
PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT OF WOMEN AT
WORKPLACE
During the year under review, pursuant to the new legislation
"Prevention, Prohibition and Redressal of Sexual Harassment of Women at
Workplace Act, 2013" introduced by the Government of India, which came
into effect from 9th December 2013, the Company has framed a Policy on
Prevention of Sexual Harassment at Workplace. There were no cases
reported during the year under review under the said Policy.
INDUSTRIAL RELATIONS
The relations with the employees of the Company have continued to
remain cordial ACKNOWLEDGEMENTS
For and on behalf of the Board of Directors.
Place: Nasik sd/-
Date: 5th September,2014 (ARVIND BHARATI)
Managing Director
Registered Office:
64-B-1, M.I.D.C. Area, Satpur,
Nashik - 422007. Maharashtra
CIN NO: L31200MH1991PLC063980
Jun 30, 2013
The Directors have pleasure in presenting the Twenty-Second Annual
Report together with the audited statements of accounts for the year
ended 30th June 2013.
FINANCIAL RESULTS
The financial results for the year ended 30th June 2013 are briefly
stated below:
Particular 2012-13 2011-12
Sales and Other Income 3778.77 3071.82
Operating Profit (Before Interest,
Depreciation and (288.57) (185.41)
Tax)
Less: Interest and other financial charges 202.05 273.63
Depreciation 13.89 11.17
Profit before Tax (487.19) (470.21)
Less: Provision for Tax (24.93) 30.54
Provision for Deferred Tax
Profit after Tax/(Loss) (512.12) (439.65)
OPERATIONS
During the year, your company achieved a turnover of Rs. 3778.77 lacs
including other income, which shows a very remarkable improvement over
the previous year. This is as anticipated by your management & as per
the hope expressed in the previous report. Your Company has incurred a
Loss after tax of Rs. 512.12 lacs during the year under consideration.
Your Company is trying to achieve encouraging results by implementing
its diversification plan into components of Compact Fluorescent Lamps,
LED products & their fixtures, which are presently in great demand.
After consolidation of the electronics business, seeing the scope &
potential, your Company has now diversified into the manufacture &
trading of LED, Halogen & Induction Lighting Products. Encouraged with
the performance, the management feels even more confident & committed
to achieve better profitability during the current year.
DIVIDEND
The Directors do not recommend any dividend for the year under review.
FIXED DEPOSITS
Your Company has not accepted any fixed deposit from the public during
the year under review.
DIRECTORS
Mr. G. K. Srikantan, Director of the Company is retiring by rotation
and, being eligible, has offered himself for reappointment. Members are
requested to appoint the Director.
None of the Directors are disqualified from being appointed as
Directors as specified in terms of Section 274(1) (g) of the Companies
Act, 1956.
STATUTORY DISCLOSURES
Information as per Section 217(1) read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is given
in the annexure to this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors Responsibility Statement, it is
hereby confirmed that:
- In preparation of annual accounts, the applicable Accounting
Standards have been followed and there was no material departure from
the said standards.
- The accounting policies selected and applied are consistent and the
judgements and estimates made are reasonable and prudent so as to give
true and fair view of the state of affairs and of the loss incurred by
the Company at the end of the year.
- Adequate accounting records as per the provisions of the Companies
Act, 1956 have been maintained and proper and sufficient care has been
taken for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
- The annual accounts are prepared on Going Concern Basis.
CORPORATE GOVERNANCE
A detailed report on Corporate Governance along with certificate of
Company''s Statutory Auditors is annexed herewith.
BIFR
Hon''ble BIFR has approved the Sanctioned Scheme for rehabilitation of
the Company vide their letter dated 10th October 2013 & received by us
on 25th November 2013. Following are the salient features of the Scheme
-
1. Operating Agency - IDBI
2. Cutoff date - 30th June 2013.
3. Induction of funds in Capital of the Company -
- Strategic Investor - M/s. Solarcopyer Ltd. Rs.420.00 lakhs
- Public Investor on Preferential allotment basis - Rs.300.00 lakhs
- Promoters - Rs.652.80 lakhs
4. Capital restructuring - Existing paid up capital of Rs.843.00 lakhs
to be reduced by 60%. Post reduction, the paid up capital will be Rs.
337.20 lakhs. No. of shares will be reduced from 84.30 lakhs shares of
Rs. 10/- each to 33.72 lakhs shares of Rs. 10/- each.
5. BIFR has also asked various Government departments to consider the
reliefs demanded by the Company in the restructuring scheme.
COMMENTS ON THE OBSERVATIONS OF THE AUDITORS
1. The Board of Directors is in process of taking the necessary steps
in order to appoint an internal auditor commensurate to the size &
business of the company.
2. The Board of Directors is taking necessary steps to maintain the
requisite cost records.
3. The company is in the process of taking the necessary steps to pay
the pending statutory dues.
AUDITORS
The Auditors of the Company, M/s. HMA & Associates, Chartered
Accountants, Pune retire at the ensuing Annual General Meeting. They
are eligible and willing for reappointment. Members are requested to
appoint the Auditors to hold office from the conclusion of this Annual
General Meeting until the conclusion of the next Annual General
Meeting.
ACKNOWLEDGEMENTS
Your Directors place on record their appreciation for the continued
support of Company''s Bankers, Financial Institution, its suppliers and
customers and all the members of staff and workers for their continued
support and cooperation at all levels.
For and on behalf of the Board of Directors.
sd/-
Place: Nasik (ARVIND BHARATI)
Date: 5th December, 2013 Managing Director
Registered Office:
64-B-1, M.I.D.C. Area, Satpur,
Nasik-422 007.
Jun 30, 2012
To, The Members,
The Directors have pleasure in presenting the Twenty-First Annual
Report together with the audited statements of accounts for the year
ended 30th June 2012.
FINANCIAL RESULTS
The financial results for the year ended 30 June 2012 are briefly
stated below:
(Rs. In lacs)
2011-12 2010-11
Sales and Other Income 3071.82 3110.19
Operating Profit (Before Interest,
Depreciation and -168.09 -188.61
Tax)
Add: Exceptional Item (Waiver of Interest) 0.00 1143.83
Less: Interest and other financial charges 273.63 134.30
Depreciation 11.17 20.67
Profit before Tax -452.89 800.25
Less: Provision for Diminution in Value of -17.32 -17.32
Investments
Provision for Impairment Loss on Assets 00.00 -146.75
Provision for Deferred Tax Asset 30.55 0.00
Profit after Tax/(Loss) -439.66 636.18
*Figures of the previous periods / year have been regrouped and
reclassified, wherever necessary to conform to the classi fication of
the cur rent period.
OPERATIONS
The year 2011-12 has been a stable year for the Company as during the
year, your Company achieved a turnover of Rs. 3071.82 lacs including
other income. Your Company incurred a loss ofRs.439.66 lacs comprising
mainly interest & financial charges, diminution in value of investment
and depreciation. FY 2012 has been a year of lower growth for the
domestic economy resulting primarily from high commodity and oil
prices. After consolidation of the electronics business, and seeing the
scope and potential, your Company had diversified into manufacture of
LED, Halogen & Induction Lighting Products with the advanced technology
and in house R&D. The management feels confident and committed to
achieve higher turnover during the current year.
DIVIDEND
The Directors do not recommend any dividend for the year under review.
CORPORATE GOVERNANCE
The Company is committed to maintain the standards of Corporate
Governance and adhere to the Corporate Governance requirements set out
by SEBI. The report on Corporate Governance and Management Discussion &
Analysis Report as stipulated under Clause 49 of the Listing Agreement
forms part of the Annual Report.
The requisite Certificate from the Auditors of the Company confirming
compliance with the conditions of Corporate Governance as stipulated
under the aforesaid Clause 49, is attached to this Report.
FIXED DEPOSITS
Your Company has not accepted any fixed deposit from the public during
the year under review.
DIRECTORS
Dr. Smt. Rochana Bharati, Director of the Company, is retiring by
rotation and, being eligible, has offered herself for reappointment.
Members are requested to appoint the Director.
Mr. Kannan Ranganathan, Director of the Company is retiring by rotation
and, being eligible, has offered himself for reappointment. Members
are requested to appoint the Director.
None of the Directors are disqualified from being appointed as
Directors as specified in terms of Section 274(1) (g) of the Companies
Act, 1956.
STATUTORY DISCLOSURES
Information as per Section 217(1) read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is given
in the annexure to this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors Responsibility Statement, it is
hereby confirmed that:
- In preparation of annual accounts, the applicable Accounting
Standards have been followed and there was no material departure from
the said standards.
- The accounting policies selected and applied are consistent and the
judgements and estimates made are reasonable and prudent so as to give
true and fair view of the state of affairs and of the profit/loss of
the Company at the end of the year.
- Adequate accounting records as per the provisions of the Companies
Act, 1956 have been maintained and proper and sufficient care has been
taken for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
- The annual accounts are prepared on Going Concern Basis.
BIFR
As per the directions of Hon''ble BIFR, your Company has prepared a
revised Draft Rehabilitation Scheme (DRS) and has submitted the same to
the IDBI Limited, the operating agency for their consideration.
COMMENTS ON THE OBSERVATIONS OF THE AUDITORS
1. The Board of Directors have taken the necessary steps and appointed
an internal auditor commensurate to the size & business of the Company.
2. The company has submitted a Draft Rehabilitation Scheme (DRS) with
the Hon''ble BIFR. Once the same is approved, the company will take the
necessary steps to pay the pending statutory dues.
AUDITORS
The Auditors of the Company, M/s. HMA 8t Associates, Chartered
Accountants, Pune retire at the ensuing Annual General Meeting. They
are eligible and willing for reappointment.
ACKNOWLEDGEMENTS
Your Directors place on record their appreciation for the continued
support of Company''s Bankers, Financial Institution, its suppliers and
customers and all the members of staff and workers for their continued
support and cooperation at all levels.
For and on behalf of the Board of Directors.
Place: Nasik. Sd/
Date: 30 August, 2012 (ARVIND BHARATI)
Managing Director
Registered Office:
64-B-l, M.I.D.C. Area, Satpur,
Nasik-422 007.
Jun 30, 2010
The Directors have pleasure in presenting the Nineteenth Annual Report
together with the audited statements of accounts for the year ended
30th June 2010.
FINANCIAL RESULTS
The financial results for the year ended 30th June 2010 are briefly
stated below:
(Rs. In lacs)
2009-10 2008-09
Sales and Other Income 1953.36 1270.90
Operating Profit {Before Interest,
Depreciation and Tax) 49.84 39.42
Less: Interest and other financial charges 183.60 106.27
Depreciation 15.95 15.70
Profit before Tax (149.71) (82.55)
Provision for Tax MAT/FBT 0.00 (0.17)
Provision for Deferred Tax Asset (Liability) 0.00 0.00
Provision for Diminution in Value of
Investments (17.32) 0.00
Profit after Tax/(Loss) (167.03) (82.72)
OPERATIONS
During the year, the company achieved a turnover of Rs. 1953.36 lacs
including other income, which shows a improvement over the previous
year. The Company turned the corner and earned an operating profit of
Rs. 49.84 lacs before interest, depreciation and tax. However, due to
heavy interest burden the Company incurred a loss of Rs. 149.71 lacs
during the year under consideration. Encouraged with the performance,
your management feels even more confident and committed to repeat the
performance and achieve still higher turnover during the current year.
The Company could achieve these encouraging results due to its
diversification plan into components of Compact Fluorescent Lamps,
which are in great demand at present.
DIVIDEND
Your Directors do not recommend any dividend for the year under review.
FIXED DEPOSITS
The Company has not accepted any fixed deposit from the public during
the year under review.
DIRECTORS
Smt. Rochana Bharati, Director of the Company is retiring by rotation
and, being eligible, has offered herself for reappointment.
Members are requested to appoint the Director.
STATUTORY DISCLOSURES
Information as per Section 217(1) read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is given
in the annexure to this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors Responsibility Statement, it is
hereby confirmed that:
- In preparation of annua! accounts, the applicable Accounting
Standards have been followed and there was no material departure from
the said standards.
- The accounting policies selected and applied are consistent and the
judgements and estimates made are reasonable and prudent so as to give
true and fair view of the state of affairs and of the profit/loss of
the Company at the end of the year.
- Adequate accounting records as per the provisions of the Companies
Act, 1956 have been maintained and proper and sufficient care has been
taken for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
- The annual accounts are prepared on Going Concern Basis.
CORPORATE GOVERNANCE
A detailed report on Corporate Governance along with certificate of
Companys Statutory Auditors is annexed herewith.
BIFR
Honble BIFR has declared the Company as sick and had appointed IDBI as
the Operating Agency. Rehabilitation Scheme was submitted earlier,
however as considerable time has been passed, the Honble BIFR asked to
submit revised Rehabilitation Scheme which is under preparation and
will be submitted within a short time.
LISTING FEES
The companys shares are listed on the Stock Exchanges at Mumbai, Pune,
Ahmedabad and Coimbatore. The Stock Exchange - Mumbai has suspended
trading in the shares of the company for failure to pay the listing
fees in time. However, now the company is taking steps to restore the
trading on the Exchange by making necessary submissions and compliances
with the terms and conditions of the Listing Agreement. Procedure for
de-listing of shares from other Stock Exchanges is also underway.
AUDITORS
The Auditors of the Company, M/s. Godse Joshi and Associates, Chartered
Accountants, Pune have merged with another firm of Chartered
Accountants during the year. Consequent to the reconstitution of the
firm, the name has changed to M/s. HMA & Associates, Chartered
Accountants. Accordingly, they have informed the company vide their
letter dt. 30th June 2010 & the Board has filled up the casual vacancy
by appointing M/s. HMA & Associates, Chartered Accountants vide Board
resolution dt. 7th July 2010. M/s. HMA & Associates have informed
their eligibility for reappointment. Members are requested to appoint
the Auditors to hold office from the conclusion of this Annual General
Meeting until the conclusion of the next Annual General Meeting.
ACKNOWLEDGEMENTS
Your Directors place on record their appreciation for the continued
support of Companys Bankers, Financial Institution, its suppliers and
customers and all the members of staff and workers for their continued
support and cooperation at all levels.
For and on behalf of the Board of Directors.
Place: Nasik.
Date: 16.11.2010 (ARVIND BHARATI)
Managing Director.
Registered Office:
64-B, M.I.D.C. Area, Satpur, Nasik-422 007.
Jun 30, 2009
The Directors have pleasure in presenting the Eighteenth Annual Report
together with the audited statements of accounts for the year ended
30th June 2009.
FINANCIAL RESULTS
The financial results for the year ended 30th June 2009 are briefly
stated below:
(Rs.In lacs)
2008-09 2007-08
Sales and Other Income 1270.90 1189.97
Operating Profit (Before Interest,
Depreciation and Tax) 39.42 27.39
Less: Interest and other financial charges 106.27 99.68
Depreciation 15.70 15.65
Profit before Tax (82.55) (87.94)
Provision for Tax MAT/FBT (0.17) (0.09)
Provision for Deferred Tax Asset (Liability) 0.00 0.00
Profit after Tax/(Loss) (82.72) (88.03)
OPERATIONS
During the year, the company achieved a turnover of Rs. 1270.90 lacs
including other income, which shows a improvement over the previous
year. The Company turned the corner and earned an operating profit of
Rs. 39.42 lacs before interest, depreciation and tax. However, due to
heavy interest burden the Company incurred a loss of Rs. 82.55 lacs
during the year under consideration. Encouraged with the performance,
your management feels even more confident and committed to repeat the
performance and achieve still higher turnover during the current year.
The Company could achieve these encouraging results due to its
diversification plan into components of Compact Fluorescent Lamps,
which are in great demand at present.
DIVIDEND
Your Directors do not recommend any dividend for the year under review.
FIXED DEPOSITS
The Company has not accepted any fixed deposit from the public during
the year under review.
DIRECTORS
Mr. G.K. Srikantan, Director of the Company is retiring by rotation
and, being eligible, has offered himself for reappointment. Members are
requested to appoint the Director.
STATUTORY DISCLOSURES
Information as per Section 217(1) read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is given
in the annexure to this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors Responsibility Statement, it is
hereby confirmed that:
- In preparation of annual accounts, the applicable Accounting
Standards have been followed and there was no material departure from
the said standards.
- The accounting policies selected and applied are consistent and the
judgements and estimates made are reasonable and prudent so as to give
true and fair view of the state of affairs and of the profit/loss of
the Company at the end of the year.
- Adequate accounting records as per the provisions of the Companies
Act, 1956 have been maintained and proper and sufficient care has been
taken for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
- The annual accounts are prepared on Going Concern Basis.
CORPORATE GOVERNANCE
A detailed report on Corporate Governance along with certificate of
Companys Statutory Auditors is annexed herewith.
BIFR
Honble BIFR has declared the Company as sick and appointed IDBI as the
Operating Agency. Rehabilitation Scheme is under preparation and will
be submitted within a short time.
LISTING FEES
The companys shares are listed on the Stock Exchanges at Mumbai, Pune,
Ahmedabad and Coimbatore. The Stock Exchange -Mumbai has suspended
trading in the shares of the company for failure to pay the listing
fees in time. However, now the company is taking steps to restore the
trading on the Exchange by making necessary submissions and compliances
with the terms and conditions of the Listing Agreement. Procedure for
de-listing of shares from other Stock Exchanges is also underway.
AUDITORS
The Auditors of the Company, M/s. Godse Joshi and Associates, Chartered
Accountants, Pune retire at the ensuing Annual General Meeting. They
are eligible for reappointment. Members are requested to appoint the
Auditors to hold office from the conclusion of this Annual General
Meeting until the conclusion of the next Annual General Meeting.
ACKNOWLEDGEMENTS
Your Directors place on record their appreciation for the continued
support of Companys Bankers, Financial Institution, its suppliers and
customers and all the members of staff and workers for their continued
support and cooperation at all levels.
For and on behalf of the Board of Directors.
Place: Nasik.
Date: 03.12.2009 (ARVIND BHARATI)
Managing Director.
Registered Office:
64-B, M.I.D.C. Area, Satpur,
Nasik-422 007.