Mar 31, 2023
The Directors present the 37th (Thirty Seventh) Annual Report of the Company together with the Audited Financial Statements for the Financial Year ended March 31,2023.
The financial performance of the Company is as follows:
(Rs. in Lakhs) |
||
Particulars |
Financial Year |
|
2022-23 |
2021-22 |
|
Revenue from Operations |
82,566.40 |
56,945.80 |
Other Income |
1,015.83 |
1,224.67 |
Total Revenue |
83,582.21 |
58,170.47 |
Profit before Depreciation and Amortisation expense, Finance Costs and Tax expense |
8,565.29 |
5,961.60 |
Less: Depreciation and Amortisation expense |
926.12 |
922.57 |
EBIT |
7,639.18 |
5,039.07 |
Less: Finance Costs |
2,782.28 |
2,003.53 |
Profit before Tax |
4,856.90 |
3,035.54 |
Less: Tax expense |
1,232.90 |
758.38 |
Profit after Tax |
3,624.00 |
2,277.16 |
Other Comprehensive Income |
(2.68) |
(82.44) |
Total Comprehensive Income |
3,621.32 |
2,194.72 |
Earnings Per Equity Share of Face Value of '' 2/- each |
||
Basic and Diluted (in '') |
6.97 |
4.38 |
Review of Financial Performance
The total revenue from operations for Financial Year 2022-23 was '' 83,582.21 Lakhs as compared to '' 58,170.47 Lakhs in previous Financial Year. During the Financial Year the Company earned a profit of '' 4,856.90 Lakhs as against Profit of '' 3,035.54 Lakhs in the Previous Year.
The Net Profit for the Financial Year was '' 3,624.00 Lakhs as against Loss of '' 2,277.16 Lakhs reported in the Previous Year.
The segment revenue from operations for Financial Year 2022-23 (a) Textile: '' 81,843.88 Lakhs (Previous Year: '' 56,272.28 Lakhs), (b) Rental Business '' 722.52 Lakhs (Previous Year: '' 673.52 Lakhs). The segment Profit before Tax for Financial Year 2022-23 (a) Textile: '' 9,255.64 Lakhs (Previous Year: '' 5,616.11 Lakhs), (b) Rental Business '' 574.79 Lakhs (Previous Year: '' 532.05 Lakhs).
There have been no material changes and commitments affecting the financial position of the Company which have occurred between end of the financial year and the date of this report. There has been no change in the nature of business of the Company.
Management Discussion and Analysis1. Economic Overview:
World Economy: Global economic activity is experiencing a broad based and sharper-than-expected slowdown, with inflation higher than seen in several decades. The cost-of-living crisis, tightening financial conditions in most regions, Russiaâs invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook. In addition, base effects from the rise in energy prices following the invasion are now coming off, putting further downward pressure on inflation for the rest of this year. Prices of other commodities as well as global food prices have also eased. However, domestic inflationary pressures remain relatively elevated in a number of economies, in particular those with tighter labour markets, although even there inflation probably already passed its peak around the second half of last year with headline inflation expected to continue falling this year, and potentially reaching central banksâ targets by 2024.
Indian Economy: The Indian Economy continues to show resilience amid Global Uncertainties. Despite significant challenges in the global environment, India was one of the fastest growing economies in the world. The Indian economy is expected to grow at a healthy pace in the coming year, supported by a number of factors like supply-side reforms and regulatory simplification, which will make it easier for businesses to operate and invest. Government initiatives, including the PM Gati Shakti - National Master Plan, the National Monetisation Plan (NMP) and the Production-Linked Incentive (PLI), are expected to foster economic growth, going forward.
Strong domestic demand, rising employment indicators, reducing inflationary pressures, and a high corporate sector debt profile augur well for the domestic economyâs growth in the years ahead. Overall, the outlook for the Indian economy is positive. The governmentâs reforms and initiatives are expected to boost economic growth and create jobs. Inflation is expected to fall, and the GST collection is expected to remain strong.
2. Indian Textile Market Overview & Development:
The textile sector is one of the largest employers in the nation, employing an estimated 45 million people directly, including a significant percentage of women and rural residents. The value chain of the textile industry is complex and extends from fibre through ready-to-wear clothing. With a sizeable raw material base and manufacturing strength across its value chain, it is also one of the largest in the world. Looking at the potential of the industry, the Indian government has launched various programmes to support domestic textile producers. Under the broad objectives of several government policy programmes, including âSkill Indiaâ and âMake in Indiaâ, the government is encouraging investment in this area, which will generate more employment, enterprises, and chances for skill development.
The Ministry of Textiles has set an even more ambitious target of $100 billion in exports over the next five years. India must address cost disadvantages, negotiate free trade agreements, and invest in critical areas to achieve these goals. Nearly 70% of the industryâs output is based on cotton, as opposed to the global average, where goods made of man-made fibers have a more significant share. Due to the technical textilesâ low cost, long lifespan, and versatility, India is another important market for the sectorâs growth. The healthcare and infrastructure sectors primarily drive the technical textile business.
3. Opportunities, Risk & Concern:
Textile manufacturing in India has been steadily recovering amid the pandemic. The government has announced various schemes to boost the economy and help small-scale businesses grow. The government has allowed 100% FDI by automatic route in the textile sector and it is supposed to attract USD 140 billion foreign investments in coming years. Government is encouraging to setup SITP (Scheme for Integrated Textile Parks) and TUFS (Technology Upgradation Fund Scheme). The textile industry is prepared for the new normal. As a citizen of India, we should contribute in money circulation and help the textile market rise. The textile industry should also be prepared for any such situation which can arise in the future. India is blessed with a hardworking and exceptional workforce and soon the Textile Industry will be witnessing its golden days.
Moreover, 100% Foreign Direct Investment is allowed in the textile sector under the automatic route which can also support to take the measures for increasing production, spending in cost effective technologies, etc.
Though India has the best textile industry, it also face numerous challenges like changing tax structure at the state and central government levels making garments expensive, rising interest rates and labour wages and workersâ salaries.
The Indian textile industry has its own limitations such as access to the latest technology and failures to meet global standards in the highly competitive export market. There is fierce competition from countries in the low-price garment market. In the global market tariff and non-tariff barriers coupled with the quota are posing a major challenge to the Indian textile Industry. The environmental and social issues like child labour and personal safety norms are also some of the challenges for the textile industry in India.
4. Future Outlook of Textile Industry:
Strong domestic demand, rising employment indicators, reducing inflationary pressures, and a high corporate sector debt profile augur well for the domestic economyâs growth in the years ahead. As the current account deficit is expected to decrease from the beginning of the year, it would provide a larger safety buffer for capital expenditures, the macroeconomic stability is predicted to further improve in FY23 providing the government more flexibility in managing unforeseen risks and more financial resources to cover unforeseen costs. The trends suggest that Indiaâs economy is on an upward trajectory, and the country is well-positioned to continue its growth despite global turbulence.
For the textiles and apparel sector, the Budget proposes allocation of '' 900 crore for Amended Technology Upgradation Fund Scheme (ATUFS) for Financial Year 2023-2024 as against '' 650 crore for Financial Year 2022-2023.
5. Human Resources / Industrial Relations front:
The Companyâs HR showed a strategic and coherent approach in managing the talent and put an endeavor in employing people and developing their capacities, utilizing and maintaining their services. Our Company continuously carries out the necessary improvements to attract and retain the best talent which results in low attrition rates.
The Companyâs policy of providing on the job training has been instrumental in developing a good work force for the Company. Moreover, the Company has an induction process wherein employees are made familiar with the organization structure, their reporting authority, various units/ plants location, major achievements and other related facts in order to make them congenial while working in the Company.
6. Risk Management and Internal control systems:
The Company has in place a Risk Management framework through its Policy, the main objective of which is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving the risks which are material in nature and are associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk Management, in order to guide decisions on material risk related issues. The policy is available on the website of the Company at www.donear.com/investor.
Further, the Companyâs activities are expose to credit risk, liquidity risk, market risk, price risk and Interest Rate Risk. The sources of such risk and how Company manages such risk and the impact thereof are provided in the relevant note forming part of the Financial Statements, which forms part of this Annual Report.
Internal Audit plays a key role in providing an assurance to the Board of Directors with respect to the Company having adequate Internal Financial Control Systems. The Internal Financial Control systems provide, among other things, reasonable assurance of recording the transactions of its operations in all material respects and of providing protection against significant misuse or loss of Companyâs assets. The Company has adequate internal control system which commensurate with its size, scale and complexities of its operations.
As per provisions of SEBI Listing Regulations, 2015, changes in financial ratios in the Financial Year 2022-23, as compared to the immediately previous Financial Year along with detailed explanation thereof are provided in Note 45 to Standalone Financial Statements and the same forms part of the Annual Report.
Statements in the Management Discussion & Analysis report describing the Companyâs objectives, estimates or projections may be forward looking statements within the meaning of applicable securities law and regulations. Actual results may materially differ from those expressed or implied. Important factors that can make a difference to the Companyâs operations include change in the main clientâs purchase procedures, changes in Government regulations, tax regimes, economic outlook and other incidental factors.
The Board at its meeting held on May 20, 2023, has recommended a dividend of '' 0.20 (10%) per Equity Share of '' 2.00 each for the Financial Year ended March 31,2023, subject to the approval of the Members of the Company at the ensuing Annual General Meeting (AGM).
The Dividend, if approved by the Members would entail a gross outflow of '' 104 Lakhs for the Financial Year 2022-23 and it will be taxable in the hands of shareholders.
The provisions under Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âListing Regulationsâ) regarding formulating Dividend Distribution Policy are not applicable to the Company. Hence, the Company declares the dividend by maintaining a balance between profit retention and a fair, sustainable and consistent distribution of profits among its Members.
The Board has decided not to transfer any amount to the General Reserve for the year under review.
Subsidiary / Associate / Joint Venture Companies
The Company does not have any Subsidiary, Associate or Joint Venture. Accordingly, the provisions relating to consolidation of financials does not apply on the Company.
During the year under review, the Company has not issued any equity shares and there is no change in issued and paid-up capital of the Company. The Company has also not issued any shares with differential voting rights.
The Company has obtained ratings from India Ratings and Research Private Limited. During the year under review, India Ratings and Research Private Limited has revised the Outlook on Donear Industries Limited to Positive from Negative while affirming the Long-Term Issuer Rating at âIND BBB-â.
For more details, please refer the Corporate Governance Report, which forms part of this Annual Report.
Directorsâ Responsibility Statement
Pursuant to Section 134(5) of the Companies Act, 2013 (âthe Actâ), your Directors, confirm that:
a) in the preparation of the annual accounts for the Financial Year ended March 31,2023, the applicable accounting standards have been followed;
b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the profit of the Company for that period;
c) they have taken proper and sufficient care towards the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and irregularities;
d) the annual accounts are prepared on a going concern basis;
e) they have laid down Internal Financial Controls, which are adequate and are operating effectively;
f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.
Directors and Key Managerial Personnel Retirement by rotation and subsequent re-appointment
In accordance with the provisions of Section 152 of the Act, Mr. Ajay Agarwal, retires by rotation at the ensuing AGM and being eligible, offers himself for re-appointment. A resolution seeking Membersâ approval for his re-appointment forms part of the Notice. This re-appointment as a Director shall not constitute a break in his appointment as a Whole Time Director of the Company.
Additional information on re-appointment of directors as required under Regulation 36 of the Listing Regulations and Secretarial Standard on General Meetings (âSS-2â) is given in the Notice convening the forthcoming AGM.
During the year under review, the Board, based on the recommendation of the Nomination and Remuneration Committee, has appointed Mr. Kishorsinh Parmar (DIN: 09692520) as an Additional - Executive Professional Director of the Company for a term of 3 (Three) consecutive years commencing from August 10, 2022 to August 9, 2025. Accordingly, Members of the Company at Thirty Sixth Annual General Meeting dated September 21,2022 of the Company has appointed him as an Executive Professional Director upto August 9, 2025.
During the year, Mr. Anupkumar Singh (DIN;07343361), has tendered his resignation as an Executive Director of the Company due to his personal reason and the same has been accepted and noted by the Board of Directors of the Company with effect from the close of business hours of July 11, 2022. Mr. Anupkumar Singh has also confirmed that there are no material reasons for his resignation other than personal reasons.
After the Financial Year 2022-23, Mr. Deepak Bhageria (DIN; 00540430), has tendered his resignation as Non-Executive Independent Director of the Company due to his pre-occupations and other personal commitments and the same has been accepted and noted by the Board of Directors of the Company with effect from the close of business hours of August 14, 2023.
Pursuant to the provisions of Sections 2(51) and 203 of the Act read with The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the following are the Key Managerial Personnel of the Company:
⢠Mr. Rajendra Agarwal, Managing Director;
⢠Mr. Ajay Agarwal, Whole-Time Director;
⢠Mr. Ashok Agarwal, CFO; and
⢠Mr. Sachin Gupta, Company Secretary & Compliance Officer (with effect from April 20, 2022)
Mrs. Medha Pattanayak, Mr. Govind Shrikhande and Mr. Deepak Bhageria*, Independent Directors, hold office for their respective term. They are not liable to retire by rotation in terms of Section 149(13) of the Act.
The Company has received declarations from all the Independent Directors of the Company confirming that each of them meet the criteria of independence as provided in Section 149(6) of the Act along with Rules framed thereunder and Regulation 16(1)(b) of the Listing Regulations. In opinion of the Board, they fulfill the conditions of independence as specified in the Act and the Rules made thereunder and are independent of the management and also possess the requisite integrity, experience, expertise, proficiency and qualifications. There has been no change in the circumstances affecting their status as Independent Directors of the Company.
The Independent Directors of the Company have undertaken requisite steps towards the renewal of their names in the data bank of Independent Directors maintained with the Indian Institute of Corporate Affairs in terms of Section 150 of the Act read with Rule 6 of the Companies (Appointment & Qualifications of Directors) Rules, 2014.
During the year under review, the Board has also identified the list of core skills, expertise and competencies of the Board of Directors as are required in the context of the business and sector applicable to the Company and mapped with each of the Directors on the Board. The same is disclosed in the Report of Corporate Governance forming part of the Annual Report.
*Mr. Deepak Bhageria, Independent Director resigned from the Company with effect from August 14, 2023.
Annual Evaluation of Board Performance and Performance of its Committees and of Directors:
Pursuant to the provisions of the Act and Listing Regulations, the Board has carried out an annual evaluation of performance of its own, the Committees thereof and the Directors.
The Nomination and Remuneration Committee, in order to facilitate the performance evaluation process, laid down the evaluation criteria for the performance of Executive / Non-Executive / Independent Directors, Chairman of the Board, Committees and the Board as a whole and approved specific evaluation forms.
These forms were circulated to each of the Director, as applicable, and Directors were requested to provide their valuable feedbacks and suggestions on the overall functioning of the Board and its Committees. Accordingly, Directors submitted their feedbacks on various parameters such as composition, manner of circulating agenda for meetings, participations, frequency of meetings, timeliness and accuracy of information, infrastructure for effective deliberations, flow of information between Board and Management, contribution towards corporate performance, internal control, management information system, etc.
The performance of individual directors was evaluated on the basis of parameters such as engagement, leadership, analysis, knowledge and skills, quality of decision making, interactions, ethics and integrity, willingness to devote time and efforts, corporate governance, relationships with stakeholders, relationships with Management, contribution, attendance, independent judgment, etc.
The Independent Directors at their separate meeting held on February 7, 2023, reviewed the performance evaluation of Non-Independent Directors, the Board as a whole, the Chairperson of the Board after taking into account the views of Executive Directors and Non-Executive Directors of the Company and also assessed the quality, quantity and timelines of flow of information between the Company Management and the Board.
Policy on Directorsâ Remuneration
The Companyâs remuneration policy for Directors, Key Managerial Personnel, Senior Management Personnel and other employees as recommended by the Nomination and Remuneration Committee and approved by Board from time to time has been disclosed in the Corporate Governance Report, which forms part of this Annual Report and also available at the Companyâs website at www.donear.com/investor.
Number of Meetings of the Board
During the year under review, 5 (Five) meetings of the Board of Directors of the Company were held. The details of such Board meetings and attendance of Directors therein, are given in the Corporate Governance Report, which forms part of this Annual Report.
The Board of Directors has constituted following Committees, viz:.
1. Audit Committee
2. Nomination and Remuneration Committee
3. Stakeholdersâ Relationship Committee
4. Corporate Social Responsibility Committee
5. Risk Management Committee
The details of such Committees including their composition, number of meetings held and attended and terms of reference as required under provisions of the Act and Listing Regulations are disclosed in the Corporate Governance Report, which forms part of this Annual Report.
There were no instances where the Board had not accepted any of the recommendations of the Audit Committee.
Auditors and Auditorsâ ReportStatutory Auditors
The Members of the Company on Thirty Fourth Annual General Meeting of the Company held on September 25, 2020, approved the re-appointment of M/s. Kanu Doshi Associates LLP, Chartered Accountants (Firm Registration No. 104746W/W100096), as Statutory Auditors of the Company for the second term to hold office from the conclusion of the Thirty Fourth Annual General Meeting till the conclusion of Thirty Ninth AGM to be held in the year 2025.
The Audit Report on the Financial Statements of the Company for Financial Year ended March 31, 2023 is made part of this Annual Report. The Report does not contain any qualification, reservation, adverse remark or disclaimer.
A total fee of '' 7.41 Lakhs for statutory audit (including out of pocket expenses) and '' 0.60 Lakh for other services was paid to M/s. Kanu Doshi Associates LLP, Statutory Auditor of the Company.
M/s. Yogesh Sharma & Co., Practicing Company Secretaries (Membership No. F11305 / Certificate of Practice No. 12366) were appointed as Secretarial Auditor to conduct the secretarial audit of the Company, as required under Section 204 of Act, Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of Listing Regulations.
The Secretarial Audit Report for the Financial Year 2022-23 is given as Annexure A, which forms part of this Report. Their Audit Report confirms that the Company has complied with applicable provisions of the Act and the Rules made thereunder, Listing Regulations, other SEBI Regulations and laws applicable to the Company.
As per the requirements of the Section 148 of the Act read with the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, your Company is required to maintain cost records and accordingly, such accounts are prepared and records have been maintained relating to Textile Division every year.
The Board of Directors, on the recommendation of the Audit Committee has re-appointed M/s. Y. R. Doshi & Co., (Firm Registration No. 000003), Cost Accountants, Mumbai, as Cost Auditors for undertaking Cost Audit for the Financial Year ending March 31, 2023. The Company has received their written consent and confirmation that the appointment will be in accordance with the applicable provisions of the Act and rules framed thereunder.
The remuneration payable to Cost Auditors has been approved by the Board of Directors on the recommendation of the Audit Committee and in terms of the Act and Rules therein. A resolution seeking memberâs approval for ratification of remuneration payable to Cost Auditor forms part of the Notice convening Annual General Meeting.
Reporting of Frauds by Auditors
During the year under review, the Statutory Auditors, Cost Auditors and Secretarial Auditors have not reported any instances of frauds committed in the Company by its Officers or Employees, to the Audit Committee under Section 143(12) of the Act.
Significant and Material Orders
There were no significant and material orders passed by any regulators or courts or tribunals impacting the going concern status of the Company and its operations in future.
Corporate Social Responsibility (CSR)
The composition and terms of reference of the Corporate Social Responsibility (âCSRâ) Committee is provided in the Corporate Governance Report, which forms part of this Annual Report.
The brief outline of the CSR policy of the Company and the initiatives undertaken by the Company on CSR activities during the year under review are set out in Annexure B of this Report in the format prescribed in Companies (Corporate Social Responsibility Policy) Rules, 2014.
The Company has not accepted any deposits from the public and as such, no amount on account of principal or interest on deposits from public was outstanding as on March 31, 2023.
As per Regulation 34(3) read with Schedule V of the Listing Regulations, the Companyâs Corporate Governance Report for the year under review, forms part of this Annual Report.
A certificate from the Statutory Auditors of the Company regarding the compliance with the conditions of Corporate Governance as stipulated in regulations 17 to 27 and other applicable provisions of Listing Regulations, is annexed to Corporate Governance Report and forms part of this Report.
The information pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given in Annexure C, which forms part of this Report.
During the year under review, the Company has complied with the requirements of applicable Secretarial Standards issued by the Institute of Company Secretaries of India (âICSIâ) in terms of Section 118(10) of the Act.
Details of familiarization programs for Independent Directors are available on the website of the Company at www.donear.com/investor.
Policy for determining Materiality of Events of the Company is available on the website of the Company at www.donear.com/investor.
Policy for archival of documents of the Company is available on the website of the Company at www.donear.com/investor.
The code of conduct for Directors and senior management of the Company is available on the website of the Company at www.donear.com/investor. There has been no change in the nature of business of the Company.
Vigil Mechanism / Whistle Blower Policy
The essence of Companyâs philosophy is based on fairness, transparency, accountability and responsibility aligned with best management practices and ethical values.
Accordingly, Company has put in place Vigil Mechanism / Whistle Blower Policy for its Stakeholders to report genuine concerns that could have serious impact on the operations and performance of business of the Company.
This Policy also aims to provide adequate safeguards against victimization of directors, employees and other stakeholders who use this policy / mechanism and contains the provision of direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases.
This policy is available on the website of the Company at www.donear.com/investor.
Disclosure under the Sexual Harassment of Women at workplace (prevention, prohibition and redressal) Act, 2013
I n compliance with Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 (âPOSH Actâ), the Company has constituted Sexual Harassment Internal Complaints Committee, chaired by Head of Human Resource Department who introduced such Committee to female staff and imparted awareness on sexual harassment of women at workplace.
All Women employees whether contractual, permanent or temporary, were made aware of appropriate ways and methods of approaching and responding to sexual harassment concerns and incidents. Further, they were made aware of the present law protecting them against any sexual abuse and motivated them to share anything which they see absurd in relation to their safety.
During the year under review, there were no cases were reported to the Board under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Disclosure on One Time Settlement
During the year under review, the Company has not made any one-time settlement for loans taken from the Banks or Financial Institutions, and hence the details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof is not applicable.
Particulars of Loans, Guarantees and Investments
During the year under review, the Company has made some investment. Further, the Company has not given any loans or corporate guarantee or provided any security during the year.
The details of loans, guarantees, investments and security, as required under the provisions of Section 186 of the Companies Act, 2013 are provided in the relevant note forming part of the Financial Statements, which forms part of this Annual Report.
Particulars of Contracts or Arrangements with Related Parties
I n accordance with Section 134(3)(h) of the Act, and Rule 8(2) of the Companies (Accounts) Rules, 2014, the particulars of the contracts or arrangements with related parties referred to in Section 188(1) of the Act, in Form AOC-2, is attached as Annexure D to this Boardâs Report. All contracts and arrangements with related parties were at armâs length and in the ordinary course of business of the Company.
The contracts/ arrangements /transactions with the related parties are necessary in the ordinary course and have a significant role in the Companyâs operations.
Moreover, the Company has formulated a Policy on Related Party Transactions and also amended during the year to keep it in line with the Act and Listing Regulations and is available on the website of the Company at www.donear.com/investor.
Disclosure of transactions with related parties as required under Listing Regulations and the applicable Accounting Standards is given in the relevant note forming part of the Financial Statements.
Particulars Regarding Conservation of Energy, Technology absorption and Foreign Exchange Earnings and outgo
The particulars as required under Section 134(3)(m) of the Act read with Rule 8 of Companies (Accounts) Rules, 2014, relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, are given in Annexure E, which forms part of this Report.
Investors Education and Protection Fund (âIEPFâ)
The disclosure regarding amount of unclaimed/unpaid dividend and corresponding shares transferred to the IEPF and other related details are disclosed in the Corporate Governance Report, which forms part of this Annual Report.
Pursuant to the provisions of Section 134(3)(a) and Section 92(3) of the Act read with Rule 12 of the Companies (Management and Administration) Rules, 2014, a copy of the Annual Return of the Company for the Financial Year ended March 31,2023 is uploaded on the website of the Company and can be accessed at www.donear.com/investor.
The Board of Directors place on record sincere gratitude and appreciation for all the employees of the Company. Our consistent growth was made possible by their hard work, solidarity, cooperation, and dedication during the year.
The Board conveys its appreciation for its customers, shareholders, suppliers as well as vendors, bankers, business associates, regulatory and government authorities for their continued support.
Mar 31, 2018
Dear Members,
The Directors are pleased to present the 32nd Annual Report and the Audited Accounts for the Financial Year ended 3151 March, 2018.
Financial Highlights
The table given below gives the financial highlights of the Company on standalone basis for the year ended 31st March, 2018 as compared to the previous financial year.
Financial Results |
2017-18 (Rupees) |
2016-17 (Rupees) |
Gross Revenue |
5,16,89,39,844 |
5,06,83,22,873 |
Profit for the Year |
13,20,50,999 |
9,08,24,573 |
Add: Balance Brought Forward |
76,27,90,721 |
68,37,93,831 |
Less: Proposed Final Dividend |
1,04,00,000 |
1,04,00,000 |
Less: Dividend Distribution Tax |
21,17,202 |
21,17,191 |
Add: Remeaurements of Defined Benefit Plan |
3,25,741 |
6,89,508 |
Balance Carried forward |
88,26,50,259 |
76,27,90,721 |
Dividend:
The Directors have recommended a dividend @ Rs. 0.20 Paise per equity share of Rs. 2/- each for the approval of Shareholders at the ensuing Annual General Meeting.
Corporate Governance Report:
As per Regulation 34(3) read with Schedule V of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, a separate section on Corporate Governance practice followed by the Company, together with a certificate from the Companyâs Auditors confirming compliance forms an integral part of this Report.
Directorsâ Responsibility Statement:
In terms of section 134 (3) (c) of the Companies Act, 2013, Directors state that:
1. In preparation of annual accounts for the year ended 31st March, 2018, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any;
2. The directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018 and profit for the year ended on that date;
3. The directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
4. The directors have prepared the annual accounts on a going concern basis;
5. The directors have laid down proper internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively and
6. The directors have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.
Extract of Annual Return:
Extract of Annual return in form MGT-9 as required under section 92 of the Companies Act 2013 is annexed as Annexure -A of this report Deposits:
During the financial year under report the Company has not accepted deposits within the meaning of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.
Particulars of Loans, Guarantees and Investments:
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
Directors:
Mr. Ajay V. Agarwal retires by rotation at the ensuing Annual General Meeting in terms of Section 152 of the Companies Act, 2013 and eligible for reappointment.
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 Regulation 16(b) of the SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015.
Key Managerial Personnel:
The following are the Key Managerial Personnel of the Company:
1. Mr. Ashok Agarwal : Chief Financial Officer
2. Mr. Shreedhar H.: Company Secretary
Number of Meetings of the Board:
The Board of Directors has the following committees:
1. Audit Committee
2. Nomination and Remuneration Committee
3. Stakeholders Relationship Committee
4. Corporate Social Responsibility Committee
5. Risk Management Committee
The details of the Committees along with their compositions, number of meetings held and attendance at the meetings are provided in the Corporate Governance Report.
Board Evaluation:
Pursuant to the provisions of the Act and the Listing Regulations, performance evaluation of the Board, its committees, the Chairman & Managing Director and the Independent Directors were carried out. The manner in which the evaluation is carried out has been explained in the Corporate Governance Report.
Risk Management:
The Company has adopted a Risk Management Policy for the Company including identification therein the elements of risk, if any, which in the opinion of the Board may threaten the existence of the Company. After identifying the risk and assessing the level of impact, controls are put in place to mitigate the risk by the concerned executives who are responsible to control the exposure of the risk and balance the impact of risk on a continuous basis.
Independent Directors Meeting:
During the year under review a meeting of Independent Directors was held on 6th March, 2018.
Related Party Transactions:
The Audit Committee has given prior approval for all Related Party Transactions. The Policy on Related Party Transactions as approved by the Board is uploaded on Companyâs Website. The Board of Directors of the Company has approved the criteria for omnibus approval of Related Party Transactions by the Audit Committee within the overall framework of the policy.
The particulars of contracts or arrangements with Related Parties referred to in Section 188(1) of the Act provided, in the prescribed Form AOC-2 annexed as Annexure B to this Report.
Auditors:
M/s. Kanu Doshi Associates LLP is appointed as Statutory Auditors to hold office from the conclusion of 31st Annual General Meeting to the conclusion of 34th Annual General Meeting (Subject to ratification of the appointment by the members at every Annual General Meeting). The Auditors have given their eligibility certificate in terms of Section 139 of the Companies Act, 2013.
Whistle Blower Policy:
Company has a Whistle Blower Policy to report genuine concerns or grievances. The same is explained in the Corporate Governance Report and No person has been denied access to Audit Committee.
Corporate Social Responsibility:
As a part of its initiative under the âCorporate Social Responsibilityâ (CSR) drive, the Company has undertaken project in the area of rural development, Promoting health care, education etc. These projects are in accordance with Schedule VII of the Companies Act, 2013 and the Companyâs CSR Policy. The report on CSR activities as required under Companies (Corporate Social Responsibility Policy) Rules, 2014 is set out as Annexure C-forming part of this report.
Cost Auditors:
As per the requirement of Central Government and pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, your Company has been carrying audit of cost records relating to Textile Divisions every year. The Board of Directors, on the recommendation of the Audit Committee has appointed Y. R. Doshi & Co., (Firm Registration No. 000003) Cost Accountants, Mumbai, as Cost Auditors for undertaking Cost Audit of the Cost Records maintained by the Company for the Financial Year 2018-2019. As required under the Companies Act, 2013, a resolution seeking members approval for the remuneration payable to Cost Auditor forms part of the Notice convening Annual General Meeting for their ratification.
Secretarial Audit:
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Rules made there under the Company has appointed Mr. Yogesh Sharma, a Company Secretary in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed as Annexure - D of this Report.
Particulars of Employees and related disclosure:
There are no employees drawing a monthly or yearly remuneration in excess of the limits specified by the Companies Act 2013. The Disclosure Required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure - E and forms an integral part of this Report.
Energy, Technology Absorption and Foreign Exchange:
Information required under Section 134(3)(m) of the Act read with Rule 8(3) of the Companies (Accounts) Rules, 2014, with respect to conservation of energy, technology absorption and foreign exchange earnings/outgo is included in Annexure F
Acknowledgement:
Your Directors acknowledge the support and counsel extended by the bankers, government agencies, shareholders, investors, employees and others associated with the Company. The Directors look forward the same in future also.
For and on behalf of Board of Directors
Mumbai Mr. Vishwanath L. Agarwal
30th May, 2018 Chairman
Mar 31, 2016
Dear Members,
The Directors have pleasure in presenting the 30thAnnual Report on the business and operations of the Company for the Financial Year ended 31st March, 2016.
Financial Highlights
The table given below gives the financial highlights of the Company for the year ended 31st March, 2016 as compared to the previous financial year.
Financial Results |
2015-16 (Rupees) |
2014-15 (Rupees) |
Gross Revenue |
5,21,11,34,761 |
5,21,03,84,278 |
Net Profit for the Year |
5,62,99,836 |
7,73,48,503 |
Add: Balance Brought Forward |
26,59,59,190 |
20,11,27,878 |
Less: Proposed Final Dividend |
1,04,00,000 |
1,04,00,000 |
Less: Dividend Distribution Tax |
21,17,191 |
21,17,191 |
Amount Transferred to General Reserve |
Nil |
Nil |
Balance Carried forward |
30,97,41,836 |
26,59,59,190 |
Dividend:
The Directors have recommended a dividend @ Rs. 0.20 per equity share of Rs.2/- each for the approval of Shareholders at the ensuing Annual General Meeting.
Management Discussion and Analysis:
(a) Industrial Structure and developments:
The Indian Economy is on a steady growth trajectory. If some estimates are to be believed, the Indian Economy is said to be at a much sweeter spot when compared to the rest of the world. In the IMF Estimates of GDP growth among big economies all over the world, India, for the first time ever, tops the chart. And the road ahead looks good for India as an emerging Economy.
According to the UNIDO''s (United Nations Industrial Development Organization) industrial statistics 2016, India has climbed up three positions to become the sixth largest industrial country in the world during 2015, up from ninth position in the previous year.
Riding on strong macroeconomic fundamentals, favourable business sentiments and downward trend in interest rates, the Confederation of Indian Industry (CII) expects the Indian economy to grow at around 8% in 2016-17. Even the Reserve Bank of India has forecast a GDP growth of 7.6% for 2016-17.
The CSO data has also projected a growth of 7.6% for 2015-16, (Chart 2) despite growth deceleration to 7.3% in the quarter ended December 2015.
The textile industry plays a vital role through its contribution to industry output and employment generation and the export earnings of the country. Globally, India is the 2nd largest producer of textiles and garments with the leading position occupied by China. It is likely to overtake China in terms of size by 2022-23. Unlike China, India has a predominantly cotton based textile industry.
The government under the dynamic leadership of the Honâble Prime Minister of India, has endeavoured to make the textile sector more vibrant through several initiatives. The central focus of these initiatives has been on increasing textile manufacturing by building the best in class manufacturing, infrastructure, up gradation of technology, fostering innovation and enhancing skill in the textile sector.
(b) Opportunities and Threats:
The future for the Indian textile industry looks promising buoyed by strong domestic consumption. The Government has introduced the Amended Technology Upgradation Fund Scheme (ATUFS) to give a further boost for technology investment in the textile industry. The ATUFS targets employment generation exports conversion of existing looms to better-quality technology looms and improved quality of processing industry. The ATUFS is expected to act as a catalyst to the Governmentâs âMake in Indiaâ campaign for the textile sector. Approval has also been given for 24 new textile parks which will further create employment opportunities and investments. The long awaited National Textile policy to be announced shortly will further accelerate growth in this sector.
However there are several challenges ahead for the Textile industry for enhancing its competitive strength and global positioning in terms of inflexible labour laws poor infrastructure competition from low cost neighbouring countries which will have to be addressed to sustain the growth momentum of the industry.
(c) Segment wise or Product wise performance:
The Company has two reportable primary business segment viz., Manufacturing and Dealing in Textiles and Rental Property. The same has been reported in the notes to the accounts.
(d) Discussion on Financial performance with respect to operational performance:
The company reported a turnover of Rs.51,728.76 Lacs during the year 2015-16 against a turnover of Rs.51,633.07 Lacs in the previous year. There was a growth of 0.19% in the revenues of the Company as compared to previous year. The Company clocked in a PBT of Rs.935.08 Lacs during the year 2015-16 resulting in a growth of 73.42% as compared to previous year.
(e) Human Resource Management:
The Company has employee friendly HR policies and attracts the best talent in the Industry. The attrition rates are quite low. The Company''s policy of providing on the job training has been instrumental in developing a good work force for the Company.
Corporate Governance Report:
A detailed report on Corporate Governance Report forms part of this Report. Auditors Certificate on compliance with Corporate Governance requirements by the Company is attached also forms part of this report.
Directorsâ Responsibility Statement:
In terms of section 134 (3) (c) of the Companies Act, 2013 your Directors state that:
1. In preparation of annual accounts for the year ended 31st March, 2016, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any;
2. They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2016 and profit for the year ended on that date;
3. They have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
4. They have prepared the annual accounts ongoing concern basis;
5. They have laid down proper internal financial controls to be followed by the Company and they were adequate and operating effectively and
6. They have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.
Extract of Annual Return :
Extract of the Annual Return in Form No. MGT-9 as required under section 92 of the Companies Act, 2013 is annexed herewith as Annexure - A to this Report.
Deposits:
During the financial year under report the Company has not accepted deposits within the meaning of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.
Particulars of Loans, Guarantees and Investments:
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
Directors:
Mr. Rajendra Agarwal retires by rotation at the ensuing Annual General Meeting in terms of Section 152 of the Companies Act, 2013. The Act provided that Independent Directors are not subject to retirement by rotation.
During the year under report, Mrs. Neena Agarwal resigned as Director of the Company w.e.f. 14th November, 2015 on personal grounds.
The Board of Directors has appointed Mr. Anup Kumar Singh (DIN 07343361) as Director on 19th November, 2015.
Familiarization Programme for Directors:
At the time of appointment a Director, a formal letter of appointment is given to him/her. The Director is also explained in detail the role, function, duties and responsibilities expected from him/her and also compliance required from him/her under the Companies Act, 2013, Listing Agreement with stock exchanges. Further the Chairman and Managing Director also will have one to one discussion with the newly appointed Director to familiarize with the Company''s operation.
Performance of Board Evaluation:
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Board has carried out annual performance evaluation of its mown performance, the Directors individually, as well as the evaluation of the working of its committees. A structured questionnaire is prepared after taking into consideration inputs received from the directors covering various aspects of the Board''s functioning.
The evaluation was done on various parameters like vision and strategy, Board participation disclosure of interest, review of risk management policies, leadership skills, good governance, marketing and corporate communications etc.
Risk Management:
The Company has adopted a Risk Management Policy for the Company including identification therein the elements of risk, if any, which in the opinion of the Board may threaten the existence of the Company. After identifying the risk and assessing the level of impact, controls are put in place to mitigate the risk by the concerned executives who are responsible to control the exposure of the risk and balance the impact of risk on a continuous basis.
Independent Directors Meeting:
During the year under review a meeting of Independent Directors was held on 4th March, 2016.
Related Party Transactions:
All related party transactions that were entered into during the financial year were in the Ordinary course of business and were on an armâs length basis. There are no material significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other related parties which may have potential conflict with the interest of the Company at large.
All related party transactions for the year are placed before the Audit Committee as well as before the Board for approval. The transactions entered into with related parties are reviewed on a quarterly basis by the Audit Committee.
The Policy on Related Party Transactions as approved by the Audit Committee and Board is uploaded on the Company''s website at the link http:// www.donear.com/donear2006/downloads/RelatedPartyTransactionsPolicy.pdf
The details of the transactions with Related Parties to be provided in Form AOC-2 are annexed herewith as Annexure B.
Members can refer Note No. 30 to the financial statements which set out related party disclosures.
Auditors:
M/s. M.L.Bhuwania& Co. are appointed as Statutory Auditors to hold office from the conclusion of 28th Annual General Meeting to the conclusion of 31st Annual General Meeting (Subject to ratification of the appointment by the members at every Annual General Meeting). A proposal for ratification of the appointment of Statutory Auditors for the financial year 2016-17 is placed before the members at the ensuing Annual General Meeting. The Auditors have given their eligibility certificate in terms of Section 139 of the Companies Act, 2013.
Whistle Blower Policy:
Company has a Whistle Blower Policy to report genuine concerns or grievances. The same is explained in the Corporate Governance Report No person has been denied access to Audit Committee.
Corporate Social Responsibility:
As a part of its initiative under the ''Corporate Social Responsibility'' (CSR) drive, the Company has undertaken project in the area of rural development, Promoting health care, education etc.. These projects are in accordance with Schedule VII of the Companies Act, 2013 and the Company''s CSR Policy. The report on CSR activities as required under Companies (Corporate Social Responsibility Policy) Rules, 2014 is set out as Annexure - C forming part of this report.
Secretarial Audit:
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Rules made there under the Company has appointed Mr. Yogesh Sharma, a Company Secretary in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as Annexure D.
Energy Conservation, Technology Absorption:
Particulars of Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgoings.
A. Conservation of Energy:
(a) |
Energy conservation measures taken |
Regular monitoring of consumption, optimization of production facility, proper maintenance of machines |
(b) |
Additional investments and proposals if any, being implemented for reduction of consumption of energy |
Nil |
(c) |
Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods. |
Improvement in quality and efficiency in production. |
(d) |
Total energy consumption in units |
Total Energy Consumption of 29,248,282 Units. |
(e) |
Consumption per unit of production as per Form A of the Annexure in respect of industries specified in the Schedule thereto. |
0.62 per unit of Fabric Production 1.25 per unit of Yarn Dyeing Production 0.18 per unit of Fabric Processing |
B. Technology absorption:
(a) Efforts made in technology absorption as per Form B of the Annexure At present not required.
C. Foreign exchange earnings and outgoing:
(a) |
Activities relating to exports, initiatives taken to increase exports, development of new export markets for production and services and export plans. |
The Company is regularly developing new designer suiting and shirting fabrics as per latest trends in markets to export all over the world especially to the new markets. The Company has also taken initiative in exporting cotton fabrics. |
|
(b) |
Total foreign exchange used and earned |
Used : |
|
C.I.F. value of imports |
Rs. 4,55,46,872 |
||
Expenses in foreign currency |
Rs.3,14,17,001 |
||
Earned : |
|||
FOB |
Rs.53,00,94,463 |
FORM - A
Form for Disclosure of Particulars with respect to Conservation of Energy
A) Power and fuel consumption
Particulars |
Current Year |
Previous Year |
1. Electricity |
||
a) Purchased Units |
27,945,429 |
28,455,496 |
Total amount |
209,694,784 |
198,975,525 |
Rate/Unit (Rs.) |
7.50 |
6.99 |
b) Own generation |
||
i) Through diesel generator |
||
Unit |
71,192 |
60,736 |
Units per Liters of diesel oil |
3.12 |
3.08 |
Cost/Unit (Rs.) |
15.97 |
19.02 |
ii) Through steam turbine/generator |
||
Unit |
Nil |
Nil |
Units per Ltr. of diesel oil/gas |
Nil |
Nil |
Cost/Unit (Rs.) |
Nil |
Nil |
iii) Through Gas Generator : |
||
Units |
489,500 |
732,050 |
Units per CM3 of Gas |
2.34 |
3.50 |
Cost/Unit (Rs.) |
14.59 |
11.69 |
2. Coal (specify quality and where used) |
||
Quantity (Tones) |
19,301.06 |
23,938.07 |
Total Cost (Rs.) |
81,245,861 |
93,592,530 |
Average Rate per Ton (Rs.) |
4209 |
3,910 |
(Imported and Lignite used in Boiler for Steam Generation) |
||
3. Furnace Oil |
||
Quantity (Tones) |
Nil |
Nil |
Total Cost (Rs.) |
Nil |
Nil |
Average Rate per Ton (Rs.) |
Nil |
Nil |
4. Others/internal generation (please give details) |
||
Quantity (Tones) |
Nil |
Nil |
Total Cost (Rs.) |
Nil |
Nil |
Average Rate per Ton (Rs.) |
Nil |
Nil |
B) Consumption per Unit of Production:
Sr No |
Products |
Unit |
Standard (If Any) |
Current Year |
Previous Year |
1 |
Fabrics Produced |
Metre |
---- |
28,511,066 |
27,632,331 |
Electricity consumed for Fabrics |
Units |
---- |
17,301,014 |
18,444,085 |
|
Electricity Consumed for Fabrics |
Unit/Mtr |
---- |
0.61 |
0.67 |
|
2 |
Yarn Dyeing Production |
Kgs |
---- |
3,473,456 |
3,252,900 |
Electricity consumed for yarn dyeing |
Units |
---- |
4,336,518 |
4,286,594 |
|
Electricity consumed for yarn dyeing |
Unit/Kg |
---- |
1.25 |
1.32 |
|
3 |
Fabric Processing Production |
Metre |
---- |
38,146,625 |
42,241,527 |
Electricity consumed for Fabric processing |
Units |
---- |
6,868,588 |
6,517,603 |
|
Electricity consumed for Fabric processing |
Unit/Mtr |
---- |
0.18 |
0.15 |
|
4 |
Furnace Oil |
---- |
Nil |
Nil |
|
5 |
Coal |
---- |
Nil |
Nil |
|
6 |
Others |
---- |
Nil |
Nil |
FORM - B
Form for disclosure of particulars with respect to absorption
A) Research and Development (R & D)
1. |
Specific areas in which R & D carried out by the Company |
None |
2. |
Benefits derived as a result of the above R & D |
Not Applicable |
3. |
Future plan of action |
To install additional capacity at surat plant. |
4. |
Expenditure on R & D a. Capital b. Recurring c. Total d. Total R & D expenditure as a percentage of total turnovers. |
Not Applicable |
B) Technology absorption, adaptation and innovation
1. |
Efforts, in brief made towards technology absorption, adaptation and innovation |
None |
2. |
Benefits derived as a result of the above efforts, e.g., product improvement, cost reduction, product development, import substitution, etc., |
Not Applicable |
3. |
In case of imported technology (imported during the last five years reckoned from the beginning of the financial year), |
Not Applicable |
a) Technology imported |
||
b) Year of import |
||
c) Has technology been fully absorbed ? |
||
d) If not fully absorbed, areas where this has not taken place, reasons therefore and future plans of action. |
Particulars of Employees and related disclosure:
There are no employees drawing a monthly or yearly remuneration in excess of the limits specified by the Companies Act 2013 and Rules 5(2)and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The details annexed herewith as Annexure E.
Acknowledgement:
Your Directors acknowledge the support and counsel extended by the bankers, government agencies, shareholders, investors, employees and others associated with the Company. The Directors look forward the same in future also.
For and on behalf of Board of Directors
Mr. Vishwanath L. Agarwal
Chairman
Mumbai 30th May, 2016
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the 29thAnnual Report on the
business and operations of the Company for the Financial Year ended
31st March, 2015.
Financial Highlights
The table given below gives the financial highlights of the Company for
the year ended 31st March, 2015 as compared to the previous financial
year.
Financial Results 2014-15 2013-14
(Rupees) (Rupees)
Gross Revenue 5,210,648,854 4,780,502,610
Net Profit for the Year 77,348,503 37,260,190
Add: Balance Brought Forward 201,127,878 176,035,169
Less: Proposed Final Dividend 10,400,000 10,400,000
Less: Dividend Distribution Tax 2,117,191 1,767,480
Amount Transferred to General Reserve Nil Nil
Balance Carried forward 265,959,190 201,127,878
Dividend:
The Directors have recommended a dividend @ Rs. 0.20 per equity share
of Rs. 2/- each for the approval of Shareholders at the ensuing Annual
General Meeting.
Corporate Governance Report:
A detailed report on Corporate Governance Report forms part of this
Report. Auditors Certificate on compliance with Corporate Governance
requirements by the Company is attached also forms part of this report.
Directors' Responsibility Statement:
In terms of section 134 (3) (c) of the Companies Act, 2013 your
Directors state that:
1. In preparation of annual accounts for the year ended 31st March,
2015, the applicable accounting standards have been followed along with
proper explanations relating to material departures, if any;
2. They have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company as at 31st March, 2015 and profit for the year ended on that
date;
3. They have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
4. They have prepared the annual accounts ongoing concern basis;
5. They have laid down proper internal financial controls to be
followed by the Company and they were adequate and operating
effectively and
6. They have devised proper systems to ensure compliance with the
provisions of all applicable laws and such systems were adequate and
operating effectively.
Deposits:
During the financial year under report the Company has not accepted
deposits within the meaning of Section 73 of the Companies Act, 2013
read with the Companies (Acceptance of Deposits) Rules, 2014.
Particulars of Loans, Guarantees and Investments:
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are given in the
notes to the Financial Statements.
Directors:
Mr. Ajay Agarwal retires by rotation at the ensuing Annual General
Meeting in terms of Section 152 of the Companies Act, 2013. The Act
provided that Independent Directors are not subject to retirement by
rotation.
The Board of Directors have appointed Mrs. Neena Agarwal (DIN 00454717)
as Director on 30th March, 2015 and Mrs. Medha Pattanayak (DIN
07157952) as an Independent Director on 5th May, 2015.
Familiarization Programme for Directors:
At the time of appointment a Director, a formal letter of appointment
is given to him/her. The Director is also explained in detail the role,
function, duties and responsibilities expected from him/her and also
compliance required from him/her under the Companies Act, 2013 and
Listing Agreement with stock exchanges. Further the Chairman or
Managing Director also will have one to one discussion with the newly
appointed Director to familiarize with the Company's operation.
Performance of Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out annual performance
evaluation of its own performance, the Directors individually, as well
as the evaluation of the working of its committees. A structured
questionnaire is prepared after taking into consideration inputs
received from the directors covering various aspects of the Board's
functioning.
The evaluation was done on various parameters like vision and strategy,
Board participation disclosure of interest, review of risk management
policies, leadership skills, good governance, marketing and corporate
communications etc.
Risk Management:
The Company has adopted a Risk Management Policy for the Company
including identification therein the elements of risk, if any, which in
the opinion of the Board may threaten the existence of the Company.
After identifying the risk and assessing the level of impact, controls
are put in place to mitigate the risk by the concerned executives who
are responsible to control the exposure of the risk and balance the
impact of risk on a continuous basis.
Independent Directors Meeting:
During the year under review a meeting of Independent Directors was
held on 6th March, 2015.
Related Party Transactions:
All related party transactions that were entered into during the year
under review were on arm's length basis and in the ordinary course
business. The Audit Committee has approved the related party
transactions and subsequently the same were approved by the Board of
directors'
Auditors:
M/s. M.L.Bhuwania & Co. are appointed as Statutory Auditors to hold
office from the conclusion of 28th Annual General Meeting to the
conclusion of 31st Annual General Meeting (Subject to ratification of
the appointment by the members at every Annual General Meeting). A
proposal for ratification of the appointment of Statutory Auditors for
the financial year 2015-16 is placed before the members at the ensuing
Annual General Meeting. The Auditors have given their eligibility
certificate in terms of Section 139 of the Companies Act, 2013.
Whistle Blower Policy:
Company has a Whistle Blower Policy to report genuine concerns or
grievances. The same is explained in the Corporate Governance Report.
No person has been denied access to Audit Committee.
Corporate Social Responsibility:
As a part of its initiative under the 'Corporate Social Responsibility'
(CSR) drive, the Company has undertaken project in the area of rural
development, Promoting health care, education etc.. These projects are
in accordance with Schedule VII of the Companies Act, 2013 and the
Company's CSR Policy. The report on CSR activities as required under
Companies (Corporate Social Responsibility Policy) Rules, 2014 is set
out as Annexure A- forming part of this report.
Cost Auditors:
The Board of Directors at its meeting held on 30th May, 2015, on the
recommendation of the Audit Committee, appointed Y. R. Doshi & Co.,
(Firm Registration No. 000003) Cost Accountants, Mumbai, as Cost
Auditors for undertaking Cost Audit of the Cost Records maintained by
the Company for the Financial Year 2015-2016 at a remuneration of Rs. 1
lacs (Rupees One Lacs Only) plus service tax as may be applicable and
out of pocket expenses at actual. The said Auditors have given their
eligibility certificate for appointment as Cost Auditors. The
remuneration payable to the said Cost Auditors needs to be ratified by
the Shareholders at the ensuing Annual General Meeting.
Secretarial Audit:
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and the Rules made there under the Company has appointed Mr. Yogesh
Sharma, a Company Secretary in Practice to undertake the Secretarial
Audit of the Company. The Secretarial Audit Report is annexed as part
of this Report.
A. Conservation of Energy:
(a) Energy conservation measures taken Regular monitoring of
consumption, optimization
of production facility,
proper maintenance of
machines
(b) Additional investments and proposals Nil
if any, being implemented for
reduction of consumption of energy
(c) Impact of the measures at (a) and (b) Improvement in quality and
above for reduction of energy efficiency in production.
consumption and consequent impact
on the cost of production of
goods.
(d) Total energy consumption in units Total Energy Consumption of
29,248,282 Units.
(e) Consumption per unit of production 0.67 per unit of Fabric
as per Form A of the Annexure Production
in respect of industries specified 1.32 per unit of Yarn Dyeing
in the Schedule thereto. Production
0.15 per unit of Fabric
Processing
B. Technology absorption:
(a) Efforts made in technology absorption as per Form B of the Annexure
At present not required.
C. Foreign exchange earnings and outgoing:
(a) Activities relating to exports, The Company is regularly
initiatives taken to increaseexports, developing new designer
development of new export markets for suiting and shirting fabrics
production and services and export plans. as per latest trends in
initiative in exporting cotton fabrics markets to export all over
the world especially to the
new markets. The Company
has also taken
(b) Total foreign exchange used and earned Used :
C.I.F. value of Rs. 18,423,179
imports
Expenses in
foreign currency Rs. 25,590,971
Earned :
FOB Rs. 504,367,841
FORM - B
A) Research and Development (R & D)
1. Specific areas in which R & D carried None
out by the Company
2. Benefits derived as a result of the Not Applicable
above R & D
3. Future plan of action To install additional
capacity at surat plant.
4. Expenditure on R & D Not Applicable
a. Capital
b. Recurring
c. Total
d. Total R & D expenditure as a percentage
of total turnovers.
B) Technology absorption, adaptation and innovation
1. Efforts, in brief made towards technology absorption, adaptation
and innovation
None
2. Benefits derived as a result of the above efforts, e.g., product
improvement, cost reduction, product development, import
substitution, etc.,
Not Applicable
3. In case of imported technology (imported during the last five years
reckoned from the beginning of the financial year),
Not Applicable
a) Technology imported
b) Year of import
c) Has technology been fully absorbed ?
d) If not fully absorbed, areas where this has not taken place, reasons
therefore and future plans of action.
Particulars of Employees and related disclosure: Particulars of
Employees and related disclosure:
There are no employees drawing a monthly or yearly remuneration in
excess of the limits specified by the Companies Act 2013 and Rules 5(2)
and 5(3) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014.
Acknowledgement:
Your Directors acknowledge the support and counsel extended by the
bankers, government agencies, shareholders, investors, employees and
others associated with the Company. The Directors look forward the same
in future also.
For and on behalf of Board of Directors
Mr. Vishwanath L. Agarwal
Chairman
Mumbai
30th May, 2015
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting their TWENTY EIGHTH ANNUAL
REPORT together with the Audited Statement of Accounts for the year
ended on 31st March, 2014.
1. FINANCIAL RESULTS:
The salient features of the Company''s Financial Results for the year
under review are as follows:
Particulars Year 2013-14 Year 2012-13
(Rupees) (Rupees)
Gross Revenue 4,78,05,02,610 4,08,94,62,989
Net Profit for the Year 3,72,60,190 60,34,976
Add: Balance Brought Forward 17,60,35,169 18,21,67,673
Less: Proposed Final Dividend 1,04,00,000 1,04,00,000
Less : Dividend Distribution Tax 17,67,480 17,67,480
Amount Transferred to General Reserve Nil Nil
Balance Carried forward 20,11,27,878 17,60,35,169
2. DIVIDEND :
The Directors have pleasure in recommending dividend @ Re 0.20 per
share for the Financial Year 2013-2014. The dividend will absorb Rs.
1,21,67,480/- ( including corporate tax on dividend amounting to
Rs.17,67,480/-).
3. MANAGEMENT DISCUSSION AND ANALYSIS :
4. DIRECTORS:
Mr. Durgaprasad Agarwal retires by rotation, and, being eligible,
offers himself for reappointment. Details of Directors seeking
reappointment is provided in the Notice convening the Annual General
Meeting pursuant to clause 49 of the Listing Agreement with Stock
Exchange.
Dr. Ramesh D. Tainwala has resigned with effect from 11.12.2013 as a
Director of the Company.
Mr. Rajagopal Sivaraj has been appointed as Additional, Independent &
Non executive Director in place of Dr. Ramesh D. Tainwala of the
Company w.e.f. 30.04.2014.
5. AUDITORS:
The statutory auditors of the Company M/s. M..L..Bhuwania & Co., retire
at the conclusion of the ensuing Annual General Meeting. The retiring
auditors have furnished a certificate that the re-appointment, if made,
would be within the prescribed limit specified under Sec. 224(1B) of
the Companies Act, 1956.
6. COST AUDITORS:
The Company has re-appointed Mr. Y. R. Doshi, Cost Accountant, as Cost
Auditor of the Company relating to financial year 2013-14 as required
by the Central Government under Section 233B of the Companies Act,
1956.
7. DIRECTORS'' RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217 (2AA) of the Companies
Act, 1956, your Directors state that with respect to Directors
Responsibility Statement,
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures; if any;
(b) The directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of profit or loss
of the Company for that year;
(c) The directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(d) The directors have prepared annual accounts on a going concern
basis.
8. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGOINGS :
Information as per Section 217 (1)(e) read with Companies (Disclosure
of Particulars in the Report of Board of Directors) Rules, 1988 are
given in Annexure 1 of this report.
9. PARTICULARS OF EMPLOYEES :
None of the employees of the Company was in receipt of salary exceeding
the amount prescribed under Section 217(2A) of the Companies Act, 1956.
10.CAUTIONARY STATEMENT :
Statement in the Management Discussion and Analysis describing the
Company''s objectives, projections, estimates, expectations or
predictions may be "forward-looking statements" within the meaning
applicable securities laws and regulation. Actual results could differ
materially from those express or implied. Important factors that could
make a difference to the Company''s operations include raw material
availability and prices, cyclical demand and pricing in the Company''s
principal markets, changes in Government regulations, tax regimes,
economic developments within India and the countries in which the
Company conducts business and other incidental factors.
11.CORPORATE GOVERNANCE :
Your Company has complied with all the mandatory requirements of
corporate governance pursuant to clause 49 of the listing agreement. A
report on Corporate Governance and Auditor''s Certificate concerning
compliance is also attached to the report.
12.ACKNOWLEDGMENT :
The Directors acknowledge the valuable support & co-operation received
by the Company from the Bankers, Shareholders and Employees of the
Company.
For and on behalf of the Board
DONEAR INDUSTRIES LIMITED
(VISHWANATH L. AGARWAL)
Chairman
Place: Mumbai
Date : 30th May, 2014
Mar 31, 2013
To, The Members of DONEAR INDUSTRIES LIMITED
The Directors have pleasure in presenting their TWENTY SEVENTH ANNUAL
REPORT together with the Audited Statement of Accounts for the year
ended on 31st March, 2013.
I.FINANCIAL RESULTS:
The salient features of the Company''s Financial Results for the year
under review are as follows:
Particulars Year 2012-13 Year 2011-12
Gross Revenue 4,08,94,62,989 3,83,40,45,116
Net Profit for the Year 60,34,975 5,05,419
Add: Balance Brought Forward 18,21,67,673 17,56,18,685
Less: Proposed Final Dividen 1,04,00,000 1,04,00,000
Less : Dividend Distribution Tax 17,67,480 16,87,140
Amount Transferred to General
Reserve Nil Nil
Balance Carried forward 17,60,35,168 18,21,67,673
2. DIVIDEND
The Directors have pleasure in recommending dividend @ Re 0.20 per
share for the Financial Year 2012-2013. The dividend will absorb Rs.
1,21,67,480/- including corporate tax on dividend amounting to Rs.
17,67,480/-.
3. MANAGEMENT DISCUSSION AND ANALYSIS :
(a) Industrial Structure and developments :
The textile industry is the largest industry of modern India. It
accounts for over 20 percent of industrial production and is closely
linked with the agricultural and rural economy. It is the single
largest employer in the industrial sector employing about 38 million
people. The net foreign exchange earnings in this sector are one of the
highest and account for about 25 percent of India''s total forex
earnings.
The structure of the textile industry is extremely complex with the
modern, sophisticated and highly mechanised mill sector on the one hand
and the handspinning and handweaving (handloom) sector on the other.
Between the two falls the small-scale powerloom sector. The latter two
are together known as the decentralised sector. Over the years, the
government has granted a whole range of concessions to the non- mill
sector as a result of which the share of the decentralised sector has
increased considerably in the total production.
In the current economic Scenario, the overall performance of the
Company was in tandem as per the performance of the overall textile
industry.
(b) Opportunities and Threats
The Textile industry poses advantages of low-cost skilled labour,
availability of raw materials, high operational efficiencies with great
designing and product development capabilities.
The increased disposable income of the people on the domestic front has
widened the markets for textile industry. This coupled with the
emerging mall culture and retail expansion has proved to be a great
opportunity for the Industry.
There is a propensity towards sourcing from low-cost countries in the
neighbourhood as also a growth of offshore processing by manufacturers
in developed countries. Regional integration reinforces this.
Further exporters in India fear that cheap imports could lead to
dumping of low-cost fabrics from China and other Southeast Asian
countries. Thus, the industry needs restructuring on all fronts.
(c) Segment wise or Product wise performance
The Company has one reportable segment i.e. Textiles (Manufacture of
Man made Fabrics).
(d) Outlook
Expectations are high, prospects are bright, but capitalising on the
new emerging opportunities will be a challenge for Textile companies.
Some prerequisites to be included in the globally competing textile
industry are:
- Imbibing global best practices
- Adopting rapidly changing technologies and efficient processes
- Innovation
- Networking and better supply chain management
- Ability to link up to global value chains.
The Indian textiles industry has established its supremacy in cotton
based products, especially in the readymade garments and home
furnishings segment. These two segments will be the key drivers of
growth for Indian textiles. The readymade garment segment will be the
principal driver of growth even in the domestic industry. The changing
preferences of Indian consumers- from buying cloth to readymade
garments - have prompted several companies to move up the value chain
into the Garments segment.
(e) Risks and Concern
The Company has to be competitive and innovative in designing and
product development to maintain it''s position in the Industry.
(f) Internal Control System and its adequacy.
The company has adequate internal control systems to run its operations
efficiently and to safeguard its assets. There are proper controls in
place to prevent any misuse or fraud.
(g) Discussion on Financial performance with respect to operational
performance.
The company reported a turnover of Rs.40085.77 Lacs during the year
2012-13 against a turnover of Rs. 37713.26 Lacs in the previous year.
The operations at Surat facility has stabilised and the cotton fabrics
business has done well in the year 2012-13.
(h) Modernisations Capital Expansion Projects:
The Company is planning to do expansion in the weaving and processing
facilities. The Company is also planning to enhance the weaving
capacity.
(i) Human Resource Management
Currently, the company has one of the best team of professionals in the
industry. The company believe in recruiting the best available talent
in the industry and maintain high standards of motivation to have a
very low employee turnover ratio.
The company''s policy of recruiting people from the institutes directly
and providing them training at work has proved beneficial for the
company.
4. DIRECTORS:
Mr. Vishwanath L Agarwal and Dr. Ramesh D Tainwala retire by rotation,
and, being eligible, offer themselves for reappointment. Details of
Directors seeking reappointment is provided in the Notice convening the
Annual General Meeting pursuant to clause 49 of the Listing Agreement
with Stock Exchange.
5. RE-APPOINTMENT OF MANAGING DIRECTOR AND WHOLE TIME DIRECTOR:
The term of office of Mr. Rajendra V Agarwal and Mr. Ajay V Agarwal
expired as Managing Director and Wholetime Director on 31.3.2013 and
30.06.2013 respectively. The board has reappointed Mr. Rajendra V
Agarwal and Mr. Ajay V Agarwal as Managing Director and Wholetime
Director respectively subject to the approval of the members at the
ensuing Annual General Meeting.
6. AUDITORS:
The statutory auditors of the Company M/s. M.L.Bhuwania& Co., retire at
the conclusion of the ensuing Annual General Meeting. The retiring
auditors have furnished a certificate that the re-appointment, if made,
would be within the prescribed limit specified under Sec. 224(1 B) of
the Companies Act, 1956.
7. COST AUDITORS:
The Company has reappointed Mr. Y. R. Doshi, Cost Accountant, as Cost
Auditor of the Company relating to financial year 2013-14 as required
by the Central Government under Section 233B of the Companies Act,
1956.
8. DIRECTORS'' RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217 (2AA) of the Companies
Act, 1956, your Directors state that with respect to Directors
Responsibility Statement,
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures; if any;
(b) The directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of profit or loss
of the Company for that year;
(c) The directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(d) The directors have prepared annual accounts on a going concern
basis.
9. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGOINGS :
Information as per Section 217 (1)(e) read with Companies (Disclosure
of Particulars in the Report of Board of Directors) Rules, 1988 are
given in Annexure 1 of this report.
10. PARTICULARS OF EMPLOYEES :
None of the employees of the Company was in receipt of salary exceeding
the amount prescribed under Section 217(2A) of the Companies Act, 1956.
11. CAUTIONARY STATEMENT :
Statement in the Management Discussion and Analysis describing the
Company''s objectives, projections, estimates, expectations or
predictions may be "forward-looking statements" within the meaning
applicable securities laws and regulation. Actual results could differ
materially from those express or implied. Important factors that could
make a difference to the Company''s operations include raw material
availability and prices, cyclical demand and pricing in the Company''s
principal markets, changes in Government regulations, tax regimes,
economic developments within India and the countries in which the
Company conducts business and other incidental factors.
12. CORPORATE GOVERNANCE :
Your Company has complied with all the mandatory requirements of
corporate governance pursuant to clause 49 of the listing agreement. A
report on Corporate Governance and Auditor''s Certificate concerning
compliance is also attached to the report.
13. ACKNOWLEDGMENT:
The Directors acknowledge the valuable support & co-operation received
by the Company from the Bankers, Shareholders and Employees of the
Company.
For and on behalf of the Board
Donear Industries Limited
(VISHWANATH L. AGARWAL)
CHAIRMAN
Place : Mumbai
Date : 30th May, 2013
Mar 31, 2012
To, The Members of DONEAR INDUSTRIES LIMITED
The Directors have pleasure in presenting their TWENTY SIXTH ANNUAL
REPORT together with the Audited Statement of Accounts for the year
ended on 31st March, 2012.
1. FINANCIAL RESULTS :
The salient features of the Company's Financial Results for the year
under review are as follows:
(Amount in Rs)
Particulars Year ended
31.03.2012 Year ended
31.03.2011
Gross Revenue 3,771,326,507 3,112,841,795
Net Profit for the Year 505,419 35,496,249
Add: Balance Brought Forward 175,618,685 173,890,286
Add: Earlier Year Excess
Proposed Dividend and 18,130,710 Nil
Dividend Distribution Tax
Less: Proposed Final Dividend 10,400,000 26,000,000
Less: Dividend Distribution Tax 1,687,140 4,217,850
Amount Transferred to General Reserve Nil 3,550,000
Balance Carried forward 182,167,674 175,618,685
During the financial year under
review the Gross Revenue from
operations of the company
is higher by
21.15% as compared to the
previous year.
2. DIVIDEND :
The Directors have pleasure in recommending dividend @ Re 0.20 per
share for the Financial Year 2011 2012.
The dividend will absorb Rs 12,087,140/- including corporate tax on
dividend amounting to Rs 1,687,140/-.
4. DIRECTORS:
Mr. Santkumar B. Agarwal & Mr. Rajendra V. Agarwal retire by rotation,
and, being eligible, offer themselves for reappointment. Details of
Directors seeking reappointment is provided in the Notice convening the
Annual General Meeting pursuant to clause 49 of the Listing Agreement
with Stock Exchange.
5. AUDITORS:
The statutory auditors of the company M/s. M.L.Bhuwania & Co., retire
at the conclusion of the ensuing Annual General Meeting. The retiring
auditors have furnished a certificate that the re-appointment, if made,
would be within the prescribed limit specified under Sec. 224 (1B) of
the Companies Act, 1956.
6. COST AUDITORS:
The Company has reappointed M/s Y. R. Doshi, Cost Accountant, as Cost
Auditor of the Company relating to financial year 2012-13 as required
by the Central Government under Section 233B of the Companies Act,
1956.
7. DIRECTORS' RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217 (2AA) of the Companies
Act, 1956, your Directors state that with respect to Directors
Responsibility Statement,
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures; if any;
(b)The directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of profit or loss
of the Company for that year;
(c) The directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(d)The directors have prepared annual accounts on a going concern
basis.
8. PARTICULARS OF CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION.
FOREIGN EXCHANGE EARNINGS AND OUTGOINGS :
Information as per Section 217(1) (e) read with Companies (Disclosure
of Particulars in the Report of Board of Directors) Rules, 1988 are
given in Annexure 1 of this report.
9- PARTICULARS OF EMPLOYEES :
None of the employees of the Company was in receipt of salary exceeding
the amount prescribed under Section 217 (2A) of the Companies Act,
1956.
10. CAUTIONARY STATEMENT :
Statement in the Management Discussion and Analysis describing the
Company's objectives, projections, estimates, expectations or
predictions may be Ãforward-looking statementsÃ
within the meaning
applicable securities laws and regulation. Actual results could differ
materially from those expressed or implied. Important factors that
could make a difference to the Company's operations include raw
material availability and prices, cyclical demand and pricing in the
Company's principal markets, changes in Governmen regulations, tax
regimes, economic developments within India and the countries in which
the Company conducts business and other incidental factors.
11. CORPORATE GOVERNANCE :
Your Company has complied with all the mandatory requirements of
corporate governance pursuant to clause 49 of the listing agreement. A
report on Corporate Governance and Auditor's Certificate concerning
compliance is also attached to the report.
12. ACKNOWLEDGMENT:
The Directors acknowledge the valuable support & co-operation received
by the Company from the Bankers, Shareholders and Employees of the
Company.
For and on behalf of the Board
of Donear Industries Limited
(VISHWANATH L. AGARWAL)
CHAIRMAN
Place : Mumbai
Date : 30th May, 2012
Mar 31, 2011
The Members
DONEAR INDUSTRIES LIMITED
The Directors have pleasure in presenting their TWENTY FIFTH ANNUAL
REPORT together with the Audited Statement of Accounts for the year
ended on 31st March, 2011.
1. FINANCIAL RESULTS :
The salient features of the Company's Financial Results for the year
under review are as follows:
Particulars Year 2010-11 Year 2009-10
(Rupees) (Rupees)
Profit before taxation &
extraordinary items 1,106,654 (238,887,344)
Less: Provision for Taxation 34,389,595 56,934,659
Net Profit for the year 35,496,249 (181,952,685)
Less/ (Add) : Income tax earlier year - (11014)
Add : Balance brought forward 173,890,286 386,150,231
Less: Proposed Final Dividend 26,000,000 26,000,000
Tax on proposed Dividend 4,217,850 4,318,275
Amount transferred to General
Reserve 3,550,000 -
Balance Carried forward 175,618,685 173,890,285
During the financial year under review the Gross Sales of the company
was Rs. 31,028.82 Lacs as against Rs. 24,283.67 lacs in the previous
year which is higher by 27.78% as compared to the previous year.
2. DIVIDEND :
The Directors have pleasure in recommending dividend @ Rs 0.50 ps per
share for the financial year 2010-2011. The dividend will absorb Rs.
30,217,850 including corporate tax on dividend amounting to
Rs.4,217,850.
4. DIRECTORS :
Mr. Durgaprasad C. Agarwal & Mr. Ajay V. Agarwal retire by rotation,
and, being eligible, offer themselves for reappointment. Brief resume
of the Directors being reappointed is provided in the Notice convening
the Annual General Meeting pursuant to clause 49 of the Listing
Agreement with Stock Exchange.
5. AUDITORS :
The statutory auditors of the company M/s. M.L.Bhuwania & Co., retire
at the conclusion of the ensuing Annual General Meeting. The retiring
auditors have furnished a certificate that the re-appointment, if made,
would be within the prescribed limit specified under Sec. 224(1 B) of
the Companies Act, 1956.
6. COST AUDITORS :
The Company has reappointed M/s Y. R. Doshi, Cost Accountant, as Cost
Auditor of the Company relating to financial year 2011-12 as required
by the Central Government under Section 233B of the Companies Act,
1956.
7. DIRECTORS' RESPONSIBILITY STATEMENT :
In accordance with the provisions of Section 217 (2AA) of the Companies
Act, 1956, your Directors state that with respect to Directors
Responsibility Statement,
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures; if any;
(b) The directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of profit or loss
of the Company for that year;
(c) The directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(d) The directors have prepared annual accounts on a going concern
basis.
8. PARTICULARS OF CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION.
FOREIGN EXCHANGE EARNINGS AND OUTGOINGS :
Information as per Section 217 (1)(e) read with Companies (Disclosure
of Particulars in the Report of Board of Directors) Rules, 1988 are
given in Annexure 1 of this report.
9. PARTICULARS OF EMPLOYEES :
None of the employees of the Company was in receipt of salary exceeding
the amount prescribed under Section 217(2A) of the Companies Act, 1956.
10. CAUTIONARY STATEMENT :
Statement in the Management Discussion and Analysis describing the
Company's objectives, projections, estimates, expectations or
predictions may be "forward-looking statements" within the meaning
applicable securities laws and regulation. Actual results could differ
materially from those express or implied. Important factors that could
make a difference to the Company's operations include raw material
availability and prices, cyclical demand and pricing in the Company's
principal markets, changes in Government regulations, tax regimes,
economic developments within India and the countries in which the
Company conducts business and other incidental factors.
11. CORPORATE GOVERNANCE :
Your Company has complied with all the mandatory requirements of
corporate governance pursuant to clause 49 of the listing agreement. A
report on Corporate Governance and Auditor's Certificate concerning
compliance is also attached to the report.
12. ACKNOWLEDGMENT :
The Directors acknowledge the valuable support & co-operation received
by the Company from the Bankers, Shareholders and employees of the
Company.
For and on behalf of the Board
(RAJENDRA V. AGARWAL)
MANAGING DIRECTOR
Place : Mumbai
Date : 28th May, 2011
Mar 31, 2010
The Directors have pleasure in presenting their TWENTY FOURTH ANNUAL
REPORT together with the Audited Statement of Accounts for the year
ended on 31st March, 2010.
1. FINANCIAL RESULTS :
The salient features of the Companys Financial Results for the year
under review are as follows:
Particulars Year 2009-2010 Year 2008-2009
(Rupees) (Rupees)
Profit before taxation &
extraordinary items (238,887,344) (197,623,962)
Less: Provision for Taxation (56,934,659) 27,693,330
Less/ (Add): Income tax earlier year (11014) (311,600)
Net Profit for the year (181,941,671) (225,005,692)
Add: Balance brought forward 386,150,231 64,157,422
Less: Proposed Final Dividend 26,000,000 26,000,000
Tax on proposed Dividend 4,318,275 4,418,700
Amount transferred to General
Reserve Nil Nil
Balance Carried forward 173,890,285 386,150,230
During the financial year under review the Gross Sales of the company
was Rs. 24,283.67 Lacs as against Rs.18,630.43 Lacs in the previous
year which is higher by 30.34% as compared to the previous year.
2. DIVIDEND :
The Directors have pleasure in recommending dividend at Rs 0.50 per
share for the financial year 2009-2010. The dividend will absorb
Rs.30,318,275 including corporate tax on dividend amounting to
Rs.4,318,275.
4. DIRECTORS :
Mr. Vishwanath L. Agarwal & Dr. Ramesh D. Tainwala retire by rotation,
and, being eligible, offer themselves for reappointment. Brief resume
of the Directors being reappointed is provided in the Notice convening
the Annual General Meeting pursuant to clause 49 of the Listing
Agreement with Stock Exchange.
5. AUDITORS :
The statutory auditors of the company M/s. M.L.Bhuwania & Co., retire
at the conclusion of the ensuing Annual General Meeting. The retiring
auditors have furnished a certificate that the re-appointment, if made,
would be within the prescribed limit specified under Sec. 224(1B) of
the Companies Act,1956.
6. COST AUDITORS :
The Company has reappointed M/s Y. R. Doshi, Cost Accountant, as Cost
Auditor of the Company relating to financial year 2009-10 as required
by the Central Government under Section 233B of the Companies Act,
1956.
7. DIRECTORS RESPONSIBILITY STATEMENT :
In accordance with the provisions of Section 217 (2AA) of the Companies
Act, 1956, your Directors state that with respect to Directors
Responsibility Statement,
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures if any;
(b) The directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of profit or loss
of the Company for that year;
(c) The directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(d) The directors have prepared annual accounts on a going concern
basis.
8. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGOINGS :
Information as per Section 217 (1)(e) read with Companies (Disclosure
of Particulars in the Report of Board of Directors) Rules, 1988 are
given in Annexure 1 of this report.
9. PARTICULARS OF EMPLOYEES :
None of the employees of the Company was in receipt of salary exceeding
the amount prescribed under Section 217(2A) of the Companies Act, 1956.
11. CORPORATE GOVERNANCE :
Your Company has complied with all the mandatory requirements of
corporate governance pursuant to clause 49 of the listing agreement. A
report on Corporate Governance and Auditors Certificate concerning
compliance is also attached to the report.
12. ACKNOWLEDGMENT :
The Directors acknowledge the valuable support & co-operation received
by the Company from the Bankers, Shareholders and employees of the
Company.
For and on behalf of the Board
(VISHWANATH L. AGARWAL)
CHAIRMAN
Place : Mumbai
Date : 29th May, 2010.