Mar 31, 2023
DIRECTORSâ REPORT
To the Members,
The Directors present the 66th Annual Report of Garware Hi-Tech Films Limited (the Company or GHFL) along with the Audited Financial Statement
for the year ended March 31,2023.
1) FINANCIAL RESULTS
Particulars |
Standalone |
Consolidated |
||
Financial Year |
2022-23 |
2021-22 |
2022-23 |
2021-22 |
Operating Profit before interest & Depreciation |
242.64 |
267.81 |
269.35 |
277.49 |
Less: Finance Cost |
(15.31) |
(17.15) |
(16.99) |
(18.24) |
Depreciation |
(31.69) |
(28.07) |
(32.41) |
(28.19) |
Profit before tax |
195.64 |
222.59 |
219.95 |
231.06 |
Provision for Income Tax |
(48.04) |
(62.39) |
(53.81) |
(63.88) |
Profit After Tax |
147.60 |
160.20 |
166.14 |
167.18 |
Other Comprehensive income (Net of Tax) |
1.14 |
3.48 |
1.14 |
3.48 |
Total Comprehensive Income |
148.74 |
163.68 |
167.28 |
170.66 |
Opening balance in Retained Earnings |
702.86 |
568.50 |
724.46 |
583.12 |
Closing Balance in Retained Earnings |
826.51 |
702.86 |
866.66 |
724.46 |
2) DIVIDEND
4) COMPANYâS PERFORMANCE
Particulars |
Standalone |
Consolidated |
||||
Financial Year |
2022-23 |
2021-22 |
Change |
2022-23 |
2021-22 |
Change |
Revenue from Operation |
1,311.24 |
1,263.97 |
4% |
1,438.01 |
1,302.63 |
10% |
Earnings before interest, tax, depreciation, |
242.64 |
267.81 |
-9% |
269.35 |
277.49 |
-3% |
Profit After Tax (PAT) |
147.60 |
160.20 |
-8% |
166.14 |
167.18 |
-1% |
Total Comprehensive Income |
148.74 |
163.68 |
-9% |
167.28 |
170.66 |
-2% |
Earnings per equity shares of '' 10 each |
63.53 |
68.96 |
-8% |
71.51 |
71.96 |
-1% |
5) STATE OF COMPANYâS AFFAIRS AND BUSINESS REVIEW
The details of the Companyâs affairs, including its operations are more specifically given in the Management Discussion and Analysis Report,
which forms part of this Report.
6) SHARE CAPITAL
The paid-up Equity Share Capital as at March 31,2023 stood at '' 23.23 Crore. During the year, there was no change in the Share Capital of the
Company. The Company neither issued any shares nor has granted any Stock Options or any Sweat Equity Shares during the year.
The Directors are pleased to recommend a Dividend of '' 10 per
equity share of face value of '' 10/- each (100%) for the financial year
ended March 31,2023 on paid-up share capital of the Company.
The Dividend is subject to the approval of the Members at the 66th
Annual General Meeting. The dividend of '' 10/- per equity share of
'' 10/- each will amount to '' 23.23 crores.
In view of the changes made under the Income Tax Act, 1961,
by the Finance Act, 2020, dividends paid or distributed by the
Company shall be taxable in the hands of the shareholders. The
Company shall, accordingly, make the payment of the final dividend
after deduction of tax at source.
The dividend recommended is in accordance with the Dividend
Distribution Policy of the Company. The Dividend Distribution
Policy, in terms of Regulation 43A of the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (âListing Regulationsâ) is available on the
Companyâs website at https://www.garwarehitechfilms.com/
investors/policies-of-company/.
3) TRANSFER TO RESERVES
The Company do not propose to transfer any amount to General
Reserve.
7) MATERIAL CHANGES AND COMMITMENTS AFFECTING THE
FINANCIAL POSITION OF THE COMPANY
There has been no material change/commitment affecting the
financial position of the Company during the period from the end of
the financial year on March 31,2023 to the date of this Report. There
has been no change in the nature of business of the Company.
8) OPERATIONS
The Companyâs Standalone Profit before tax reduced by 8% on
account of pressure on selling price of commodity products due
to excess supply over demand in Domestic market. The recession
in US economy and Russia-Ukraine war also impacted capacity
utilization of laminated film.
9) FUTURE OUTLOOK
The Company successfully commenced the production of Laminated
Sun control film during FY 2022-23. This will positively impact the
Revenues and Profitability in coming years.
10) RESEARCH & DEVELOPMENT
Your Companyâs R&D Centre is accredited by the Department
of Scientific and Industrial Research, Ministry of Science and
Technology, Government of India for decades. Your Company is
an aggressive leader in development of new products and new
applications for BOPET Films and Solar Control Window Films,
Lidding Films and Paint Protective Film (PPF) for Automobile.
The Company has introduced many Coated Products, like
Antimicrobial PET film and Flame-Retardant PET film, solar back-
sheet component films, Co Extruded Products, PETG Shrink Films
for label applications with Low, Medium High Shrink film and Post¬
Consumer Recycled (PCR) shrink film. A wide range of high heat
rejection films are introduced in the International Market. Lidding
films for food grade packaging applications, Water Floatable shrink
film for easy recycling of labels from PET container recycling
eliminating possibility of label contamination to PET recycling.
The R&D team works hand-in-hand with production and marketing
team to introduce and establish new products and to ensure proper
Quality, Output, Cost and efficiency is achieved. The R&D also
focused on cost reduction measures by introducing new methods in
processes.
Functioning of R&D Centre
The R&D Centre is well equipped with qualified and experienced
Technical experts and scientists with adequate lab and measuring
equipment/s and pilot scale plant/s to develop application-oriented
processes and product developments using the available R&D
facility.
11) INFORMATION TECHNOLOGY
⢠The Company is using the latest ERP System after upgrading
its Core ERP system to SAP S4HANA and achieved desired
serversâ system performance. The company is also planning
for an upgrade of the latest SAP S4 HANA version level.
⢠The digital transformation projects like implementation of
supply chain efficiency enhancement i.e., Vendor Portal,
Safety system monitoring are in process.
⢠The company is in the process of implementation of solutions
like Production and Process Planning tool, Management
Analytics tool (SAC) and Dashboards, and Customer Portal
are under progress.
⢠The Company has implemented advanced solutions with
online meetings and video conferencing for multiple locations.
⢠The Company has implemented an online solution for accidents
reporting and Safety actions tracking within factory premises
and is effectively being used. The company also implemented
an online vehicle tracking system for tracking vehiclesâ entry in
the plant.
⢠The Company has implemented Online Warranty Management
applications PPF and Film Products for global customers
Warranty Tracking.
⢠The company has implemented an online Work permit system
for the Safety of employees while performing Maintenance
activities.
⢠The Company has completed Implementation of online
solution for Contract Labor Management.
⢠The Company has upgraded its internet connectivity services
at all locations for fast and effective communication and
upgraded its Firewall System for Cyber security.
⢠The Company has upgraded all network equipmentâs and
devices at Factory premises for internet connectivity.
⢠The Company has installed state of the art CCTV Monitoring
and controlling system with centralized monitoring and
recording of CCTV surveillance systems for all the production
facilities and premises.
⢠The Company has implemented mobile Application digital
applications for employee self-services, digital solutions for
visitorâs management
⢠The Company initiated Digitization of Security operations for
online tracking.
⢠The Company has completed of Implementation of latest ITSM
solution for IT support and system monitoring as a tool for
faster IT services and SLA Monitoring.
⢠The Company is in the process of evaluating people and
vehicle tracking systems within factory premises.
⢠The Company is in the process of preparation for
implementation of ISO 27001 along with ITIL Framework for
enhanced information security and IT service management.
⢠The Company is in the process of evaluating the Digitization of
Plotter cutting Software which is under progress.
⢠The Company is in the process of Evaluating the requirement
of IPD Warehouse Management system for FG Materials
through RFID & SAP.
⢠The Company successfully implemented the Gate Pass
system for the employee IN/OUT tracking.
⢠The Company is in the process of exploring the new Initiatives
from the business side to enhance the technology towards
Digitalization perspective.
12) AWARDS AND RECOGNITIONS
During the year, the Company won the JIPM TPM Excellence
Award - Category âAâ in recognition of our outstanding performance
and commitment to Total Productive Maintenance (TPM). As a part
of the JIPM Award, we have received a plaque and 2 ceremony
medals. JIPM TPM Excellence Award Ceremony was conducted
on 21st March 2023 at the Kyoto International Conference Center,
Japan
13) HUMAN RESOURCE DEVELOPMENT
Your Company Human resource team is well aligned with
Companyâs Vision, Mission, Strategy, Goals & Objectives and has
facilitated interventions to Build High Performance Organization
by Strengthening our Competitiveness, Capacity, Competence
& Culture. We strive to be the best in People Management &
Community Engagement Practices within the Industry.
During the year, Companyâs Human Resources Team has
proficiently worked upon various Talent Management Programs
to Acquire, Develop & Retain the Right Talent. It has enabled us
building strong chain of Leadership through Internal Succession
Planning process and by onboarding competent leaders from
similar as well as diverse domains.
Our Talent Development approach is holistic and covers Technical,
Functional, Safety, Behavioral and Leadership Development
Interventions. During the year we invested over 875 man-days
in total with more focus on Experiential Learning like On-The-
Job training, Health & Safety Mindset, Cross-Functional working
exposure. Our Learning & Development strategy aim to remain
Competitive in the context of our Products, Processes & People.
Our Culture & People Value System of âCaring, Sharing, Trust and
Respectâ was well reflected in various HR Interventions during the
year. We encouraged open dialogue & communication across all
levels of the organization and have fostered a Customer Oriented-
Performance driven work environment. We empowered our people
to apply innovation & creativity while delivering their best to the
common goal. Rewards & Recognition from the Top Management
has further enhanced the motivation & commitment level of
employees to contribute their best.
This is reflected in our Retention Rate of 97.2% with Voluntary
Attrition Rate of 2.8% during the year.
14) MANUFACTURING AND QUALITY INITIATIVES
The Company has adopted an integrated approach of Quality
Management systems comprises of TQM, TPM, Lean and six
sigma. The external professionals are also appointed to audit the
effectiveness of the systems put in place. The quality culture of your
Company ensures that the products are bench marked as best in
class by the customers.
The upgradation of plant and machinery and expansion of
Laminated film capacity helped Company to establish quality and
improved reliability.
15) SUBSIDIARY COMPANIES
The Company has two subsidiaries as on March 31,2023.
1. Garware Hi-Tech Films International Limited (Formerly known
as Garware Polyester International Limited)
2. Global Hi-Tech Films Inc (Formerly known as Global Pet Films
Inc)
Pursuant to Section 129(3) of the Companies Act, 2013
read with Rule 5 of the Companies (Accounts) Rules, 2014,
the statement containing salient features of the financial
statements of the Companyâs Subsidiaries (in Form AOC-1) is
attached to the financial statements.
16) SAFETY, HEALTH & ENVIRONMENTAL PROTECTION
Being a Responsible Corporate Citizen, your Company has regularly
undertaken various initiatives for the continual improvement in
Health, Safety and Environment (HSE) at the works and surrounding
areas.
Some of the prominent regular activities include-Safety audits of
Thermic Fluid system and Electrical System by external expertise,
HAZOP study of the process, Internal Safety survey of Plants, Field
Safety round, monthly Safety review meetings, EMS review, training
and periodical HSE inspections, schemes on the efficient usage of
energy and the conservation of natural resources, activities for the
enhancement of employee participation in HSE, emergency mock
drills and the support in emergency management operations at
public places. The safety performance is reviewed on monthly basis
by the management safety committee involving all departments and
their in charges. Various initiatives like provision of centralised fire
detection, expansion of fire water network, provision of fire sprinkler
systems, fire detection systems have been completed to deal with
any emergency inside the plant. We have purchased a state of art
fire tender for protection of our sun control division and a new fire
station is set up which is manned round the clock. The centralised
fire detection and alarm system connects all three fire stations
and hence we have improved our response time for emergencies
considerably. Various technological interventions like online incident
reporting system, online safety observations systems have been
put in place to increase visibility of safety efforts. The Company has
been free from lost time incident for more than 1300 days as of now.
The Company has developed green belt (increased from 30% to
36% of open land) also developed in-house nursery to have sapling
inhouse for new plantation.
The company has implemented extended producer responsibility
(EPR) for plastic packing as per CPCB guideline.
The Company is a recipient of various safety laurels from the
Regulatory Authorities at the National & State level (DG-FASALI)
Govt. Of India and National Safety Council- Maharashtra Chapter
as stated above during the year. Security system has been
upgraded, like awareness training, evacuation drills to meet the
new challenges. A central CCTV control room has been setup.
New fire engines added in the fleet have enhanced the existing
emergency preparedness. Our fire Engines have played a major
role in maintaining safety and fighting fires in the local vicinity where
the manufacturing plants are situated as an mutual aid agreements.
17) DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act, 2013, the Board
of Directors, to the best of their knowledge and ability confirm that:
a) In the preparation of the annual accounts for the year ended
March 31, 2023, the applicable Indian Accounting Standards
have been followed and there are no material departures from
the same.
b) Accounting policies selected 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 March 31, 2023 and of the profit of the
Company for the year ended on that date;
c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities;
d) Prepared the annual accounts on a âgoing concernâ basis;
e) Internal financial controls to be followed by the Company and
such internal financial controls are adequate and operating
effectively and
f) Devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were
adequate and operating effectively.
18) DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Appointment/Resignation/cessation of Director:
Upon the recommendation of the Nomination and
Remuneration Committee, the Board of Directors of the
Company in its meeting held on May 26, 2022 approved the
appointment of Mrs. Sarita Garware Ramsay (DIN: 00136048),
with effect from May 26, 2022 as an Additional Director and
Joint Managing Director of the Company for a period of 3
(Three) years, subject to the approval of the members of the
Company. Subsequently the members of the Company by
passing a special resolution through postal ballot approved the
appointment of Mrs. Sarita Garware Ramsay (DIN: 00136048)
as Joint Managing Director of the Company for a period of 3
(Three) years.
During the financial year, Mr. Hemant Nikam (DIN:
07517849), Whole Time Director of the Company resigned
from his directorship in the Company with effect from October
18, 2022. Mr. Nikam was the member of Stakeholders
Relationship Committee, Corporate Social Responsibility
Committee and Vigil Mechanism Committee of the Board,
consequent to his resignation he also ceased to be a member
of these Committees.
Upon the recommendation of the Nomination and Remuneration
Committee, the Board of Directors of the Company in its
meeting held on October 18, 2022 approved the appointment
of Mr. Uday V. Joshi (DIN: 09753984) with effect from October
18, 2022 as an Additional Director and Whole-Time Director
of the Company for a period of 1 (One) year, subject to the
approval of the members of the Company. Subsequently the
members of the Company by passing a special resolution
through postal ballot approved the appointment of Mr. Uday
V. Joshi (DIN: 09753984) as Whole-Time Director of the
Company for a period of 1 (One) year.
B. Retirement by Rotation:
In accordance with the provisions of Section 152 of the Act
and the Articles of Association of the Company, Ms. Sonia
Garware, Director of the Company, is liable to retire by rotation
at the ensuing Annual General Meeting and being eligible, has
offered herself for re-appointment.
Her brief profile and other details as required under the Act
and the Listing Regulations for her re-appointment as Director
is provided in the Notes to the Notice of 66th Annual General
Meeting of the Company.
C. Key Managerial Personnel:
The Company has complied with the requirements of having
Key Managerial Personnel as per the provisions of Section
203 of the Companies Act, 2013.
Dr. S. B. Garware - Chairman & Managing Director,
Ms. Monika Garware - Vice Chairperson & Jt. Managing
Director, Mrs. Sarita Garware Ramsay - Joint Managing
Director, Mr. Pradeep Mehta - Chief Financial Officer (CFO)
and Mr. Awaneesh Srivastava - Company Secretary & Vice
President (Legal), are the Key Managerial Personnel of the
Company.
D. Independent Directors declaration:
Pursuant to the provisions of Section 149 of the Act, all the
Independent Directors of the Company have submitted
a declaration that each of them meets the criteria of
independence as per provisions of the Companies Act, 2013,
rules there under, SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (Listing Regulations) and
there has been no change in the circumstances which may
affect their status as an Independent Directors during the year.
In the opinion of the Board of Directors, all the Independent
Directors fulfil the criteria of independence as provided under
the Act, rules made there under and the Listing Regulations
and that they are independent of the management.
None of the Directors of the Company are disqualified for being
appointed as Directors as specified under Section 164(2) of
the Act read with Rule 14(1) of the Companies (Appointment
and Qualification of Directors) Rules, 2014.
19) MEETINGS OF THE BOARD
Five meetings of the Board of Directors were held during the FY
2022-23 and the gap between two consecutive board meetings
was within the statutory limit. The details of the number of meetings
held and attended by each Director are provided in the Corporate
Governance Report, which forms part of this Report.
20) PERFORMANCE EVALUATION OF BOARD
Pursuant to Regulation 17 of the Listing Regulations read with
Schedule IV of the Act, a formal evaluation of Boardâs performance
and that of its Committees and individual directors had been
done. A structured questionnaire was prepared after taking into
consideration of the various aspects of the Board functioning,
composition of the Board and its Committees, culture, execution
and performance of specific duties, obligations and governance.
Said structured questionnaire performance evaluation forms were
circulated to all the Directors. Based on feedback, an evaluation
Report was prepared and forwarded to the Chairman and the
respective Director to maintain the confidentiality of the Report.
The Independent Directors at their meeting held on February 10,
2023 evaluated performance of the Chairman, non-independent
directors of the Company. The Directors expressed their satisfaction
with the evaluation process.
The Board has carried out and completed the performance
evaluation of all the Independent Directors. The performance
evaluation of the Chairman and the Non-Independent Directors
was also carried out by the Independent Directors. The Board of
Directors expressed their satisfaction with the evaluation process.
21) UNCLAIMED DIVIDEND AND SHARES
The Company is in compliance with provisions of Section 125 of
the Companies Act, 2013, along with relevant applicable rules and
circulars issued there under from time to time by the Ministry of
Corporate Affairs.
During the year the Company was not required to transfer any
amount of dividend and shares with respect to said dividend, which
have remained unpaid or unclaimed for a period of 7 (seven) years,
to IEPF Authority.
22) POLICY ON DIRECTORSâ APPOINTMENT AND REMUNERATION
AND OTHER DETAILS
The Companyâs policy on Directorsâ appointment and remuneration
and other matters provided in Section 178(3) of the Act has been
disclosed in the corporate governance report, which forms part of
the Directorsâ Report.
The said Policy of the Company, inter alia, provides that the
Nomination and Remuneration Committee shall formulate the
criteria for appointment & re-appointment of Directors on the Board
of the Company and persons holding Senior Management positions
in the Company, including their remuneration and other matters as
provided under Section 178 of the Act and Listing Regulations.
The Policy is also available on the website of the Company at
www.garwarehitechfilms.com.
23) I NTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR
ADEQUACY
The Company has an Internal Control System commensurate with
the size, scale and complexity of its operations and well documented
procedures for various processes which are periodically reviewed
for changes warranted due to business needs. The Internal Auditor
continuously monitors the efficiency of the internal controls /
compliance with the objective of providing to Audit Committee and
the Board of Directors, an independent, objective and reasonable
assurance of the adequacy and effectiveness of the organisationâs
risk management, control and governance processes. This system
of internal control facilitates effective compliance of Section 138 of
the Act and the Listing Regulations.
To maintain its objectivity and independence, the Internal Auditor
reports to the Chairman of the Audit Committee. The Internal
Auditor monitors and evaluates the efficiency and adequacy of the
internal control system with reference to the Financial Statement.
Based on the report of internal auditor, process owners undertake
corrective actions in their respective areas and thereby strengthen
the controls. Significant audit observations and corrective actions
thereon are presented to the Audit Committee. During the year
under review, no reportable material weakness in the operation was
observed. Regular audit and review processes ensure that such
systems are reinforced on an ongoing basis.
24) COMMITTEES OF THE BOARD
The Board of Directors of the Company had constituted various
Committees and approved their terms of reference / role in
compliance with the provisions of the Companies Act, 2013
and Listing Regulations viz. Audit Committee, Nomination and
Remuneration Committee, Stakeholders Relationship Committee,
Corporate Social Responsibility Committee, Vigil Mechanism
Committee and Risk Management Committee. The members of
the Audit Committee are financial literate and have experience
in financial management. The composition of the Committees as
given in the Corporate Governance Report is in accordance with
applicable provisions of the Companies Act, 2013, Rules thereunder
and Listing Regulations.
25) AUDITORS AND THEIR REPORTS
A. Statutory Auditors
The members of the Company have appointed M/s.
Manubhai & Shah LLP (FRN: 106041W/W100136), Chartered
Accountants, as the Statutory Auditors of the Company for
a period of 5 years, until the conclusion of the 67th Annual
General Meeting of the Company.
Further, the members of the Company have appointed M/s.
Kirtane & Pandit LLP (FRN: 105215W/W100057), Chartered
Accountants, as a Joint Statutory Auditors of the Company for
a period of 3 years, until the conclusion of 68th Annual General
Meeting of the Company.
The Auditorâs Report on the Standalone and Consolidated
Financial Statements of the Company for the Financial Year
2022-23 as submitted by the Statutory Auditors of the Company
did not contain any qualifications, reservation, adverse remarks
or disclaimer. The Notes on Financial Statement referred to in
the Auditorsâ Report are self-explanatory and do not call for
any further comments.
There have been no instances of fraud reported by the Auditors
under Section 143(12) of the Act and Rules framed thereunder
either to the Company or to the Central Government.
B. Internal Auditor
Pursuant to the provisions of Section 138 of the Companies
Act,2013 and on the recommendation of the Audit Committee
M/s. Deloitte Touche Tohmatsu India, LLP, Chartered
Accountants were appointed as Internal Auditors of the
Company.
C. Cost Auditor
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 out the
audit of cost records.
M/s. M. R. Pandit & Co., Cost Accountants, Aurangabad was
appointed as cost auditors to audit the cost accounts of the
Company for financial year 2022-23.
D. Secretarial Auditor
Pursuant to Section 204 of the Act read with the Companies
(Appointment and Remuneration of Managerial Personnel)
Rules, 2014, the Company has obtained the Secretarial Audit
Report for the financial year ended March 31,2023 from M/s.
Nilesh Shah & Associates, Practicing Company Secretaries,
Mumbai and it is annexed as âAnnexure IVâ to this Report.
During the financial year 2022-23 the Secretarial Auditors had
not reported any matter u/s 143(12) of the Act, therefore no
details are required to be disclosed u/s 134(3) (ca) of the Act.
The secretarial Audit Report does not contain any qualification,
reservation, adverse remark or disclaimer.
During the year 2022-23, the Company has complied with
applicable Secretarial Standards issued by the Institute of the
Company Secretaries of India.
26) RISK MANAGEMENT
The Board of Directors of the Company has formed a risk
management committee to frame, implement and monitor the risk
management plan for the Company. The committee is responsible for
reviewing the risk management plan and ensuring its effectiveness.
The Board has laid down a Risk Management Policy and has also
established a dedicated Risk Management Committee, governed
by the Board of Directors, to make persistent efforts for identifying
various types of risks, laying mitigation measures, monitoring, and
defining future action plan. The audit committee has additional
oversight in the area of financial risks and controls. Geo-political
situations like the Russia Ukraine war have further forced global
businesses to revisit their operations, delivery, supply chains and
contractual aspects. Operating in an uncertain and ever-changing
environment, our Companyâs robust enterprise risk management
framework aids in ensuring the strategic objectives are achieved.
Major risks identified by the businesses and functions are
systematically addressed through mitigating actions on a continuing
basis.
The development and implementation of risk management policy
has been covered in the management discussion and analysis,
which forms part of this report.
27) PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The particulars of loans, guarantees and investments have been
disclosed in the financial statements.
28) RELATED PARTY TRANSACTIONS (âRPTSâ)
All the transactions entered by the Company during the financial
year with related parties were in the ordinary course of business and
on an armâs length basis. The Audit Committee had given omnibus
approval for the transactions (which are repetitive in nature) and
the same were reviewed and approved by the Board. In line with
the requirements of the Act and the SEBI Listing Regulations, the
Company has formulated a Policy on Related Party Transactions.
The Policy can be accessed on the Companyâs website at https://
www.garwarehitechfilms.com/investors/policies-of-company/
There were no material significant transactions with related parties
during the financial year 2022-23 which were in conflict with the
interest of the Company. The Directors would like to draw attention
of the members to Note No.30 to the financial statement which sets
out related party disclosure.
Pursuant to the provision of Section 134(3)(h) of the Companies
Act, 2013, Form AOC-2 is not applicable to the Company.
29) CORPORATE SOCIAL RESPONSIBILITY
The expenditure on Corporate Social Responsibility (CSR) incurred
by your Company during the financial year 2022-23 was '' 330.00
Lakh (around 2 % of the average net profits of last three financial
years) on CSR activities that does not include the expenses made
on the activities carried out by the Garware Community Center and
Garware Bal Bhawan. The detailed report on the CSR activities is
annexed as âAnnexure Iâ and forms part of this Report.
The CSR initiatives of your Company were under the thrust areas of
health & hygiene, education, old age home for disabled people and
Rehabilitation of Distressed / Depressed people.
The constitution of the CSR Committee and its terms of reference are
more particularly stated in the Corporate Governance Report which
forms a part of this Report. CSR Policy of the Company is available
on the website of the Company at www.garwarehitechfilms.com
30) ANNUAL RETURN
As per provisions of Section 92 (3) and 134(3)(a) of the Act read
with Rule 12 of the Companies (Management and Administration)
Rules, 2014 as amended from time to time, the copy of the Annual
Return in the Form MGT-7 is hosted on website of your Company
at: https://www.garwarehitechfilms.com/investors/
31) PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
During the year, 2 Directors & 2 Employees were in receipt of
remuneration of '' 1.02 Crore per annum or more amounting
to '' 1391.01 Crore out of which two directors were relative(s) of
Dr. S. B. Garware Chairman & Managing Director of the Company.
During the year, the Company had 852 (Previous Year 884)
permanent employees. The information required under Section
197(12) of the Companies Act, 2013 read with Companies
(Appointment and Remuneration of Managerial Personnel) Rules,
2014 for the year ended March 31, 2023 is given in a separate
âAnnexure IIâ to this Report.
32) PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT
WORKPLACE
Pursuant to the provisions of Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013,
during the year under review, there were no cases filed and there
were NIL Complaint received. The Company has constituted the
Internal Complaint Committee under Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Company has zero tolerance towards sexual harassment at
workplace and has adopted a policy to abide by letter and spirit
requirements of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and the
Rules made thereunder. The Company has Internal Complaints
Committee (ICC) to redress the complaints of sexual harassment.
During the year, Company has not received any complaint of sexual
harassment.
Disclosures in relation to the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013:
Number of complaints filed during the financial year |
Nil |
Number of complaints disposed of during the financial year |
Nil |
Number of complaints pending as on end of the financial |
Nil |
33) CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION
AND ANALYSIS REPORTS
The Company has implemented procedures and adopted practices
in conformity with the code of Corporate Governance under SEBI
(Listing Obligations and Disclosure Requirements) Regulations,
2015 (Listing Regulations). The Company has implemented Code
of Conduct for all its Executive Directors and Senior Management
Personnel, Non-Executive Non-Independent Directors and
Independent Directors, who have affirmed compliance thereto.
The said Codes of Conduct have been posted on the website of
the Company. The Management Discussion and Analysis Report
and Corporate Governance Report, appearing elsewhere in this
Annual Report forms part of the Boardâs Report. A certificate from
the Practising Company Secretary of the Company certifying the
compliance of conditions of Corporate Governance is also annexed
hereto.
34) VIGIL MECHANISM/ WHISTLE BLOWER POLICY
The Vigil Mechanism of the Company, which also incorporates a
whistle blower policy in terms of the Listing regulations, includes
an Ethics & Compliance Task Force comprising senior executives
of the Company. Protected disclosures can be made by a whistle
blower through an e-mail, or dedicated telephone line or a letter
to the Task Force or to the Chairman of the Audit Committee. No
complaints were received under whistle blower mechanism during
the year under review.
The Policy on vigil mechanism and whistle blower policy is available
on the Companyâs website at the https://www.garwarehitechfilms.
com/investors/policies-of-company/.
35) DEPOSITS / LOANS FROM DIRECTORS
The Company has not accepted any deposits from public and as
such, no amount on account of principal or interest on deposits from
public was outstanding as on the date of the balance sheet. Further,
your Company has not accepted any deposit or any loan from the
directors during the year under review.
36) CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars relating to conservation of energy, technology
absorption, foreign exchange earnings and outgo, as required to
be disclosed under the Act, are provided in âAnnexure INâ to this
Report.
37) SIGNIFICANT AND MATERIAL ORDERS
During the year under review, no significant / material orders were
passed by the regulators or the Courts or the Tribunals impacting
the going concern status and the Companyâs operations in future.
38) BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
As per Regulation 34 of the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015, Business Responsibility and
Sustainability Report is attached and is a part of this Annual Report
as set out in âAnnexure Vâ of this report.
39) INDUSTRIAL RELATIONS
The relations between the Employees and the Management
remained cordial during the year under review. The Directors wish
to place on record their appreciation of the contribution made by the
Employees at all levels.
Harmonious Industrial Relations has always been a key strength of
our organization.
Open Communication Policy has given a voice to every single
employee to express up to the level of Top Management.
Respect to diversified categories of workforce, uniformity in welfare
interventions and one to one connect between employees with their
managers has been instrumental in providing Happy, Inclusive &
Harmonious work environment to our people.
40) NODAL OFFICER
The Company has appointed Mr. Awaneesh Srivastava,
Company Secretary as the Nodal Officer for the purpose of
verification of claims filed with the IEPF Authority in terms of
I EPF Rules and for co-ordination with the IEPF Authority. The
said details are also available on the website of the Company
www.garwarehitechfilms.com
41) THE DETAILS OF APPLICATION MADE OR ANY PROCEEDING
PENDING UNDER THE INSOLVENCY AND BANKRUPTCY
CODE, 2016 (31 OF 2016)
No application has been made under the Insolvency and Bankruptcy
Code; hence the requirement to disclose the details of application
made or any proceeding pending under the Insolvency and
Bankruptcy Code, 2016 (31 of 2016) during the year along with their
status as at the end of the financial year is not applicable.
42) 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
The requirement to disclose the details of difference between
amount of the valuation done at the time of onetime settlement and
the valuation done while taking loan from the Banks or Financial
Institutions along with the reasons thereof, is not applicable.
43) ACKNOWLEDGEMENTS
The Directors wish to place on record their appreciation for
the wholehearted co-operation received by the Company from
the various departments of the Central & State Governments,
Companyâs Bankers and Financial & Investment Institutions during
the period under review.
For and on behalf of the Board of Directors
Dr. S. B. GARWARE
Chairman & Managing Director
DIN:00943822
Place: Mumbai
Date: May 26, 2023
Mar 31, 2018
The Directors present the 61st Annual Report together with the Audited Statement of Accounts of the Company for the year ended 31st March, 2018.
1. Financial Results (Standalone Basis)
(Rs. In Crores)
2017 |
- 2018 |
2016 |
- 2017 |
|
Operating Profit before interest & Depreciation |
88.69 |
78.15 |
||
Less : Finance Cost |
24.45 |
32.55 |
||
Depreciation |
13.41 |
37.86 |
13.07 |
45.62 |
Profit before tax for the year |
50.83 |
32.53 |
||
Provision for Income Tax |
17.07 |
10.65 |
||
Profit After Tax |
33.76 |
21.88 |
||
Other Comprehensive income for the year, Net of Tax |
6.87 |
15.42 |
||
Total Comprehensive Income for the year (Net) |
40.63 |
37.30 |
||
Opening balance in Retained Earnings |
308.51 |
286.21 |
||
AMOUNT AVAILABLE FOR APPROPRIATION |
353.28 |
308.51 |
||
Dividend -Final - FY 2016-17 |
2.33 |
0.00 |
||
Tax on Dividend |
0.47 |
0.00 |
||
Closing Balance in Retained Earnings |
350.48 |
308.51 |
2. Dividend
Your Directors recommend 20% dividend (i.e. Rs. 2.00/- per equity share) for consideration at the ensuing Annual General Meeting, for the financial year ended 31st March, 2018 on 2,32,32,394 equity shares of Rs.10/- each.
The total sum of the dividend if approved, including Corporate Dividend Tax, will be payable Rs.5.59 Crores.
3. Companyâs performance On Standalone Basis:
Revenue from operations for the financial year 2017-18 was at Rs.837.09 Crores, is lower by 8.22% over the last year (Rs. 912.07 Crores in 2016-17) as post implementation of GST revenue from operations are reported net of GST from July-2017 and reduction in volume of BOPP films production which was partly offset by increased volume in Sun control and BOPET film.
The Earnings before interest, tax, depreciation and amortization (EBITDA) was Rs.88.69 Crores against EBITDA of Rs.78.15 Crores in 2016-17.
The Profit after tax (PAT) for the year was Rs.33.76 Crores against the PAT of Rs.21.88 Crores in 2016-17.
The total comprehensive income (net of taxes) for the year was Rs.40.63 Crores against Rs.37.30 Crores in 2016-17.
On Consolidated Basis:
Revenue from operations for the financial year 2017-18 was at Rs.847.20 Crores lower by 8.53% over the last year (Rs. 926.19 Crores in 2016-17) as post implementation of GST revenue from operation was reported net of GST from July-2017 and reduction in volume of BOPP films production which was partly offset by increased volume in Sun control and BOPET Plain film.
The Earnings before interest, tax, depreciation and amortization (EBITDA) was at Rs.88.50 Crores against EBITDA of Rs.80.52 Crores in 2016-17.
The Profit after tax (PAT) for the year was Rs.33.12 Crores against the PAT of Rs.22.44 Crores in 2016-17.
The total comprehensive income net of taxes for the year was Rs.39.99 Crores against Rs.37.87 Crores in 2016-17.
4. Operations
The Profit before tax was increased by 56% on account of reduction in Finance cost due to repayment of term loans and switch over to working capital term loan. The increase in EBIDTA by 13.48%,in spite of reduction in Revenue was due to change in product mix, penetration in new markets, optimization of inventory and optimization of overheads.
5. Future outlook
The BOPET film market is growing at 10% p.a. The market growth has helped to fill up idle capacities. The growth in capacity will continue considering the market growth.
The Industrial Product Division has concentrated its efforts on exports of value added specialty films considering the strength of the Organization. The PET shrink label film is well established in Indian and International market.
The Solar control film market is growing internationally due to increasing awareness of advantages of solar control films that is reduction of energy costs, carbon emission reduction, reduction of ultra-violet (UV) rays and infrared (IR) emissivity. The surge in both, automobile sales in export markets and in real estate development globally is also helping in the growth of solar control films and we see good potential for growth in this segment. The new products are introduced which will continue to be the driver for growth.
The Consumer Products division has well established Suncontrol film brands in the International Market that is âSun controlâ and âGlobalâ. The company has been catering to customers across North America, South America, Russia, Europe, China, Far East, Middle East and Africa. âGlobalâ brand received good acceptance in American Market. The market share in matured markets like USA have grown exponentially. In continuation of the efforts for Exports, the Company representatives are posted in strategic and important markets like Russia, Malaysia, and UAE to develop and grow the business. The efforts are made in the domestic market with new products under Sun control brand for building application. The Company has created strong Brand presence for Building segment window glass application films in India with dominant market share.
The Company has lowered down the BOPP operations to focus on value added Nish Products.
6. Research & Development
Your company is a leader in development of new products and new applications for BOPET films and Solar Control Window Films. Your Companyâs R&D Department is focusing on cost reduction measures by introducing methods to reduce costs.
Your Companyâs R&D Centre is accredited by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India for decades. R&D team works hand-in-hand with production and Marketing team to introduce and establish new products and to ensures proper Quality, Output, Cost and efficiency.
The Company has introduced many Coated Products, Co Extruded Products, BOPET-G Shrink Films for label applications with low, medium, and high shrink force. The wide range of Nano based heat rejection films are introduced.
7. Functioning of R & D Department
The R&D Center is well equipped with the Pilot scale plants, lab equipment/s and resources and managed by qualified and experienced people. The activities are carried out on continuous basis as an independent important activity.
In recent years, your company has developed, complete laboratory facility for testing and dispersion of Nano based coatings.
All new polymers and coatings are first produced in these plants and extensively tested in specially developed test facilities before commencing trials on the main plant. All the new product trials are taken under supervision of very senior R&D personnel and test marketing is done before producing them in bulk quantities.
Several types of weathering tests are carried out in R&D centers for the products used for outdoor applications.
8. Information Technology (IT)
The Company has upgraded its cloud based Emailing system Office365 with MDM (Mobile Device Management) solution for security for mobile email users for communication.
- The Company is in process for evaluating IOT (Internet of Things) Solution for automatic production data transfer to SAP ERP for faster and better control.
- The company is in process of evaluation and implementation of cloud for SAP ERP and SAP S4 HANA for their business operations.
- The Company has upgraded its SAP AIX operating system to a latest IBM AIX version.
- Automatic GST return filling system on GST portal is in process for use from SAP ERP.
- The company implemented automatic barcode scanning for packing and dispatch of goods to customers.
- The company has installed CCTV surveillance systems at all the production facilities and security points.
- The company is planning and moving towards digital transformation in various operational areas
9. Awards and Recognitions
During this year, your Company has been recipient of Two Safety Awards at National Level from Director General Factory Advice Service & Labour Institutes, Government of India, Ministry of Labour & Employment and One Safety Award at State Level by Maharashtra State Chapter of National Safety Council (NSC -MC).
The Company has also received the Highest Export Award for the years 2015-16 and 2016-17 from the Plastics Export Promotion Council - Plexconcil and consistently maintained the first position as highest exporter for last more than 25 years.
10. Human Resource Development.
Your Companyâs Human Resources team successfully ran its talent acquisition, retention and development agenda during the year.
Companyâs senior management team was strengthened through hiring of leaders in various domains. The Companyâs HR policies and processes are aligned to effectively drive its business and other emerging opportunities.
The focus on employee development through training modules that were created in-house continued. More than 120 training programs were conducted during the year, over 85% of them through in-house trainers and business leaders. The programs added up to over 9,264 man-hours / 1,158 man-days of training. This has been achieved by continuously investing in learning and development programs by arranging target oriented training programs, creating appropriate work environment and maintaining a structured recognition system.
HR has been working to provide an enabling working environment where innovation and performance thrive. Employees are empowered and we believe that it is, they who ultimately deliver the results.
11. Manufacturing and Quality Initiatives
The capacity of resin plant has been enhanced to take care of customer demands. With innovative approaches in manufacturing techniques and product optimization, the productivity in the manufacturing segment has improved. New equipmentâs installed for quality system improvement and measurement. The quality culture of your Company ensures that the products are benchmarked as best in class by the customers. Our quest for excellence both in Manufacturing and Quality continues as before. Your Company is regarded as best in class for Quality and Reliability.
In order to keep the plants in excellent running condition the company has upgraded the manufacturing plants with various new equipment to produce quality products.
The Company has established best manufacturing practices and implemented Organization wide LEAN methodology with the help of an expert BMGI. The Company is also implemented SIX SIGMA and QA initiatives with the help of TQMI which are showing good results and improvements. The Company is also implementing TPM with the help of CII.
The Company has also taken initiative in machines upgradation with the help of OEMS and implementing the same where ever required.
12. Consolidated Financial Statement
The Consolidated Financial Statements of the Company are prepared in accordance with relevant Indian Accounting Standards IND-AS110 issued by the Institute of Chartered Accountants of India and forms a part of this Annual Report.
13. Subsidiary companies
Garware Polyester International Limited -UK and Global Pet Films Inc.- USA, continue to be the subsidiaries of your Company.
Pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules, 2014, the statement containing salient features of the financial statements of the Companyâs Subsidiaries (in Form AOC-1) is attached to the financial statements.
14. Safety, Health & Environmental Protection
Being a Responsible Corporate Citizen, your Company has regularly undertaken various initiatives for the continual improvement in Health, Safety and Environment (HSE) at the works and surrounding areas.
Some of the prominent activities include - Safety audits of Thermic Fluid system and Electrical System by external expertise (M/s Jacobs Engineering), Internal Safety survey of Plants, Field Safety rounds after monthly Safety review meetings, EMS review, training and Field rounds, periodical HSE inspections and trainings, schemes on the efficient usage of energy and the conservation of natural resources, activities for the enhancement of employee participation in HSE, emergency mock drills and the support in emergency management operations at public places.
Your Company is a recipient of various safety laurels from the Regulatory Authorities on the State level (National Safety Council - India and Industry, Energy & Labour Dept., the Government of Maharashtra), as stated above during the year. Security system has been upgraded, like awareness training, evacuation drills to meet the new challenges.
15. Directorsâ Responsibility Statement
Pursuant to Section 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability confirm that:
a) in the preparation of the annual accounts for the year ended March 31, 2018, the applicable accounting standards have been followed and there are no material departures from the same;
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 as at March 31, 2018 and of the profit of the Company for the year ended on that date;
c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) they have prepared the annual accounts on a âgoing concernâ basis;
e) they have laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively and
f) they have advised proper systems to ensure compliance with provisions of applicable laws and that such systems were adequate and operating effectively.
16. Inter-se Transfer of Equity Shares among Promoter Share Holders:
During the year, there was Inter-se transfer among promoter shareholders. S. B. Garware Family Trust one of the promoter shareholders has Inter-se transferred 11,45,834 numbers of equity shares among other promoterâs shareholders as under:
a) 5,72,917 numbers of equity share to Monika Garware Modi Benefit Trust and
b) 5,72,917 numbers of equity share to Sarita Garware Benefit Trust.
17. Directors and key managerial personnel
I n accordance with the provisions of the Act and the Articles of Association of the Company, Mrs. Sarita Garware Ramsay and Ms. Sonia Garware Directors of the Company, retire by rotation at the ensuing Annual General Meeting and being eligible have offered themselves for re-appointment.
The Board of Directors has accepted the resignation of: (1) Mr. M. S. Adsul, Executive and Non independent Director of the Company w.e.f. 16th October, 2017 and (2) Mr. N. P. Chapalgaonkar Non-Executive and Independent Director of the Company w.e.f. 29th May, 2018.
The Board appreciated their valuable advice and guidance to the Company from time to time during the tenure of their terms of office as director of the Company.
The Board of Directors has appointed:
(1) Mr. C. J. Pathak as whole time Director of the Company w.e.f. 16th October, 2017.
(2) Mr. B. D. Doshi as a Non-Executive and Non-Independent Director of the Company w.e.f. 16th October, 2017.
(3) Mr. Vivekanand Heroor Kamath as a Non-Executive and Independent Director of the Company with effect From 08th August, 2018 and
(4) Mr. T.M. Parikh was re-appointed as Non-Executive and Independent Director of the Company for second term of five consecutive years w.e.f. 1st April, 2019 to 31st March, 2024.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed both under the Act and under the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, hereinafter referred to as âListing Regulationsâ.
Key Managerial Personnel
Shri S. B. Garware - Chairman & Managing Director, Mrs. Monika Garware Modi - Vice Chairperson & Jt. Managing Director, Mrs. Sarita Garware Ramsay - Jt. Managing Director, Ms. Sonia Garware, Mr. C. J. Pathak-Whole Time Director, Mr. Manoj Gupta- Chief Financial Officer and Mr. Nimesh S. Shah - Company Secretary, are the Key Managerial Personnel of the Company in accordance with the provisions of Sections 2(51), 203 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (including any statutory modification(s) or re-enactment(s) for the time being in force).
Mr. Sunil Dalmia - Chief Financial Officer (CFO) has resigned from the Company w.e.f. 07th September, 2017.
Mr. Manoj Gupta was appointed as Chief Financial Officer (CFO) of the Company w. e. f. 15th January, 2018.
18. Number of Meetings of the Board
Six meetings of the Board were held during the year. For details of meetings of the Board, please refer to the corporate governance report, which forms part of this report.
19. Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, a structured questionnaire was prepared after taking into consideration of the various aspects of the Board functioning, composition of the Board and its Committees, culture, execution and performance of specific duties, obligations and governance.
The Board has carried out and completed the performance evaluation of all the Independent Directors. The performance evaluation of the Chairman and the Non-Independent Directors was also carried out by the Independent Directors. The Board of Directors expressed their satisfaction with the evaluation process.
20. Policy on Directorsâ appointment and remuneration and other details
The Companyâs policy on Directorsâ appointment and remuneration and other matters provided in Section 178(3) of the Act has been disclosed in the corporate governance report, which forms part of the Directorsâ Report.
21. Internal financial control systems and their adequacy
The Company has in place well defined and adequate internal controls commensurate with the size of the Company and the same were operating effectively throughout the year.
22. Audit Committee
The details pertaining to the composition of Audit Committee are included in the Corporate Governance Report, which forms part of this report.
23. Statutory Auditors
Pursuant to the provisions of Section 139 of the Act and the rules framed thereunder, M/s. Manubhai & Shah, LLP, Chartered Accountants, were appointed as statutory auditors of the Company from the conclusion of the 57th annual general meeting (AGM) of the Company held on September 25, 2014 till the conclusion of the 62nd AgM to be held in the year 2019, subject to ratification of their appointment at ensuing AGM. Members are requested to ratify their appointment in ensuing 61st AGM. They have conveyed their eligibility to act as auditors of the Company, subject to the ratification of their appointment at the ensuing 61st Annual General Meeting.
Further, the Company has received a special notice under Section 115 of the Companyâs Act, 2013 proposing the name of M/s. Kirtane & Pandit, LLP, Chartered Accountants as Joint Auditors of the Company for next two years i.e. 2018-19 and 2019-20, subject to memberâs approval at the ensuing 61st Annual General Meeting.
They have conveyed their eligibility and willingness to act as joint auditors of the Company for two years i.e. from the conclusion of 61st Annual General Meeting till the conclusion of 63rd Annual General Meeting of the Company, if appointed at the ensuing 61st Annual General Meeting. Board recommends the appointment of Joint Auditors.
The Notes on Financial Statement referred to in the Auditorsâ Report are self-explanatory and do not call for any further comments. Auditorsâ Report does not contain any qualification, reservation, adverse remarks or disclaimer.
Internal Auditor
Pursuant to the provisions of Section 138 of the Companies Act, 2013 and the Rules framed there under, M/s. Deloitte Haskins & Sells LLP, Chartered Accountants were appointed as Internal Auditors of the Company in place of M/s. PricewaterhouseCoopers Private Limited.
Cost Auditor
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 out the audit of cost records.
The Board of Directors, on the recommendations of audit committee, has re-appointed M/s. M. R. Pandit & Co., Cost Accountants, Aurangabad as cost auditors to audit the cost accounts of the company for financial year 2018-19. As required under the Companies Act, 2013 a resolution seeking memberâs approval for ratification of remuneration payable to the Cost Auditors forms a part of the notice convening the 61stAnnual General Meeting.
Secretarial Auditor:
The secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.
Report of the secretarial auditor is given as an Annexure V which forms part of this report.
Your Company has received consent from M/s. Nilesh Shah & Associates, Company Secretaries, Mumbai to act as the auditor for conducting audit of the Secretarial records for the financial year ending 31st March, 2019.
The Board of Directors of your Company at its meeting held on 08th August, 2018 has appointed them as the Secretarial Auditor to conduct an audit of the secretarial records, for the financial year 2018-19.
24. Risk Management
The Board of Directors of the Company has formed a risk management committee to frame, implement and monitor the risk management plan for the Company. The committee is responsible for reviewing the risk management plan and ensuring its effectiveness. The audit committee has additional oversight in the area of financial risks and controls. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.
The development and implementation of risk management policy has been covered in the management discussion and analysis, which forms part of this report.
25. Particulars of Loans, Guarantees and Investments
The particulars of loans, guarantees and investments have been disclosed in the financial statements.
26. Transactions with Related Parties
All the transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an armâs length basis. The Audit Committee had given omnibus approval for the transactions (which are repetitive in nature) and the same were reviewed by the Board.
There were no material significant transactions with related parties during the financial year 2017-18 which were in conflict with the interest of the Company. The Directors would like to draw attention of the members to Note No. 30 to the financial statement which sets out related party disclosure.
Pursuant to the provision of Section 134(3)(h) of the Companies Act, 2013, Form AOC-2 is not applicable to the Company.
27. Corporate Social Responsibility
The CSR expenditure incurred by your Company during the financial year 2017-18 was Rs. 25.50 Lakhs (around 2% of the average net profits of last three financial years) on CSR activities which does not include the expenses made on the activities carried out by the Garware Community Center and Garware Bal Bhawan.
The CSR initiatives of your Company were under the thrust areas of health & hygiene, education, Old age home for disabled people and Rehabilitation of Distress/Depressed people.
Your Companyâs CSR Policy statement and annual report on the CSR activities undertaken during the financial year ended 31st March, 2018, is in accordance with Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed to this report as Annexure [I].
28. Extract of Annual Return
As provided under Section 92(3) of the Act, the extract of Annual Return of the Company is annexed herewith as Annexure [II] in the prescribed Form MGT-9, which forms part of this report.
29. Particulars of Employees and related disclosures
Two Whole-time Directors/Employee employed throughout the year were in receipt of remuneration of Rs.60.00 Lakhs per annum or more amounting to Rs.4.97 Crore were relative(s) of Shri S. B. Garware Chairman & Managing Director of the Company. During FY 2017-18 the Company had 1012 permanent employees.
The information required under Section 197(12) of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and forming part of the Directorsâ Report for the year ended March 31, 2018 is given in a separate Annexure [III] to the Report.
31. Other Laws
Pursuant to the provisions of sexual harassment of women at work place (Prevention, Prohibition and Redressal) Act, 2013, during the year under review, there were no cases filed.
32. Corporate Governance
Your Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements as set out by the SEBI Board.
Your Company has also implemented several best corporate governance practices as prevalent globally. The report on Corporate Governance as stipulated under the Listing regulations forms an integral part of this Report.
The Certificate on Corporate Governance from the Practicing Company Secretary, confirming compliance as per SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 is attached.
33. Vigil Mechanism
The Vigil Mechanism of the Company, which also incorporates a whistle blower policy in terms of the Listing regulations, includes an Ethics & Compliance Task Force comprising senior executives of the Company. Protected disclosures can be made by a whistle blower through an e-mail, or dedicated telephone line or a letter to the Task Force or to the Chairman of the Audit Committee.
The Policy on vigil mechanism and whistle blower policy is available on the Companyâs website at the www.garwarepoly.com.
34. Deposits from Public
The Company has not accepted any deposits from public and as such, no amount on account of principal or interest on deposits from public was outstanding as on the date of the balance sheet.
35. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under the Act, are provided in Annexure[IV] to this Report.
36. Details on Internal Financial Controls related to Financial Statements
Your Company has in place adequate internal financial controls and system with reference to the financial statements, some of which are outlined below.
Your Company has adopted accounting policies which are in line with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 that continue to apply under Section 133 and other applicable provisions, if any, of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and relevant provisions of the Companies Act, 1956, to the extent applicable. These are in accordance with generally accepted accounting principles in India. Changes in policies, if any, are approved by the Audit Committee in consultation with the Statutory Auditors.
The accounts of the subsidiary companies are audited and certified by their respective Statutory Auditors for consolidation.
Your Company operates in SAP, an ERP system, and has many of its accounting records stored in an electronic form and backed up periodically. The ERP system is configured to ensure that all transactions are integrated seamlessly with the underlying books of account. Your Company has automated processes to ensure accurate and timely updation of various master data in the underlying ERP system.
Your Company in preparing its financial statements makes judgments and estimates based on sound policies and uses external agencies to verify/ validate them as and when required.
37. Indian Accounting Standards (IND AS) - IFRS Converged Standards
Pursuant to the notification, issued by the ministry of Corporate Affairs dated February 16th, 2015 relating to the Companies (Indian Accounting Standard) Rules, 2015, the Company has prepared accounts complied as per "IND AS" w.e.f. 1st April, 2017 with the comparatives for the periods ending 31st March, 2017.
38. Industrial Relations
The relations between the Employees and the Management remained cordial during the year under review. Your Directors wish to place on record their appreciation of the contribution made by the Employees at all levels.
39. Acknowledgements
Your Directors wish to place on record their appreciation for the wholehearted co-operation received by the Company from the various departments of the Central & State Governments, Companyâs Bankers and Financial & Investment Institutions during the period under review.
For and on behalf of the Board of Directors
Place: Mumbai S. B. GARWARE
Date: August 08, 2018 Chairman & Managing Director
Mar 31, 2015
TO THE MEMBERS,
The Directors present the 58th Annual Report together with the Audited
Statement of Accounts of the Company for the year ended 31st March,
2015.
1. Financial Results (Rs. in Crores)
2014 - 2015
Operating Profit before Interest & Depreciation 85.23
Less : Finance Cost 43.64
Depreciation 15.08
58.72
Profit for the year before Exceptional Item 26.51
Exceptional items 0.00
Provision for Income Tax 9.17
Profit After Tax 17.34
Add : Balance brought forward from previous year 308.26
Balance available for Appropriation 325.60
Appropriation:
Transferred from Assets whose balance useful life
is Nil as per Schedule II of the Companies Act, 2013. 2.28
(Net of deferred tax of Rs.117.50 Lakhs)
Transferred to Capital Redemption Reserve on
Redemption of Preference Shares. 54.46
Dividend on Cumulative Redeemable Preference Shares (CRPS) 0.00
(*Rs. 54,460/-)
Tax on Dividend (Rs. 9,255/- on CRPS) 0.00
Balance carried to Balance Sheet 268.86
Total 325.60
1. Financial Results (Rs. in Crores)
2013 - 2014
Operating Profit before Interest & Depreciation 78.88
Less : Finance Cost 36.95
Depreciation 33.47
70.42
Profit for the year before Exceptional Item 8.46
Exceptional items 6.22
Provision for Income Tax 3.30
Profit After Tax 11.38
Add : Balance brought forward from previous year 296.88
Balance available for Appropriation 308.26
Appropriation:
Transferred from Assets whose balance useful life
is Nil as per Schedule II of the Companies Act, 2013. 0.00
(Net of deferred tax of Rs.117.50 Lakhs)
Transferred to Capital Redemption Reserve on
Redemption of Preference Shares. 0.00
Dividend on Cumulative Redeemable Preference Shares (CRPS) 0.01
(*Rs. 54,460/-)
Tax on Dividend (Rs. 9,255/- on CRPS) 0.00
Balance carried to Balance Sheet 308.25
Total 308.26
2. Dividend
Your Directors have not recommended any dividend on the equity share
capital for the year under review with a view to conserve resources and
to plough back profits to strengthen the net working capital.
3. Transfer to Reserves
The Company proposes to transfer Rs. 54.46 Crores to the Capital
Redemption Reserve out of the amount available for appropriation and an
amount of Rs. 268.85 Crores is proposed to be retained in the profit
and loss account.
4. Company's Performance
On consolidated basis, revenue from operations for the financial year
2014-15 at Rs. 923.17 Crores was higher by Rs.70.24 Crores over last
year (Rs. 852.93 Crores in 2013-14). Earnings before interest, tax,
depreciation and amortization (EBITDA) was Rs. 86.56 Crores registering
a growth of 10 % over EBITDA of Rs. 78.60 Crores in 2013-14. Profit
after tax (PAT) for the year was Rs. 17.81 Crores registering growth of
73 % over the PAT of Rs.10.29 Crores in 2013-14.
On standalone basis, revenue from operations for the financial year
2014-15 at Rs. 913.37 Crores, was higher by 8% over last year (Rs.
846.82 Crores in 2013-14). Earnings before interest, tax, depreciation
and amortisation (EBITDA) was Rs. 85.23 Crores registering a growth of
8% over the EBITDA of Rs. 78.88 Crores in 2013-14. Profit After Tax
(PAT) for the year was Rs. 17.34 Crores recording a growth of 52% over
the PAT of Rs. 11.38 Crores in 2013-14.
5. Operations
The year 2014-15 has ended with marginal improvement over the year
2013-14 with increase in sales by about 8% due to higher sales volume
of Industrial Products. The average sales realization was better due to
reduction in the raw material cost and an increase in the sale of
specialty products which has helped the Company in achieving 8% Growth
in EBITDA.
6. Future Outlook
The overcapacity situation persists in the Polyester Film manufacturing
industry in Indian market as well as in the international market, the
prices remain under pressure due to competition and oversupply
situation. The Company has shifted its focus to the specialty films and
already developed some new products for the market such as Digital
Printable Films, films for Solar PV application, films for Lidding
application, Coated Films for Label, Medium Shrink Films for Label and
films with High Infrared heat rejection for automobiles. These films
will mainly cater to the export market.
7. Research & Development
Your company is continuously in development of new products and new
applications in the fields of Polyester Film and Solar Control Window
Film. Apart from development of new products, R&D Department is also
focusing on cost reduction measures by developing cost effective
alternative raw materials and processes.
Company's R&D Centre is accredited by the Department of Scientific
and Industrial Research, Ministry of Science and
Technology, Government of India. R&D team works hand-in-hand with
production team to establish new products at the plant and to improve
the product quality and plant efficiencies.
All the manufacturing plants / pilot plants and laboratories are
upgraded with latest equipment to upgrade the product quality and to
achieve the stringent quality requirements of demanding customers.
8. Functioning of R & D Department
R&D activities are carried out as an independent activity.
In this center various pilot plants are installed for development of
Polymers, film extrusion and different types of coating.
All new polymers and coatings are first produced in these plants and
extensively tested in specially developed test facilities before
commencing trials on the main plant. All the new product trials are
taken under supervision of very senior R&D personnel and test marketing
is done before producing them in bulk quantities.
Our laboratories are equipped with state-of-the-art latest testing
equipments and many specialty test rigs are used as per the end product
applications.
9. Information Technology (IT)
- The Company has implemented CCTV security surveillance system in
production.
- The Company is in process to implement SAP HR Payroll to integrate HR
process to the existing SAP ERP system.
- The Company is in process to implement SAP BI system to facilitate
KPI driven reporting and Dashboard to management by taking advantage of
SAP ERP business database.
- The Company has upgraded its existing Windows operating system along
with hardware baseline from Windows XP to Windows 8 to mitigate
operating system vulnerability on account of Windows XP technical
support stopped by Microsoft.
10. Awards and Recognitions
During this year, your Company has been honored with ten Safety Awards
at National as well as State Levels by various Authorities, viz.
National Safety Council of India (NSCI), and Maharashtra State Chapter
of National Safety Council (NSC - MC).
Out of these ten awards, two awards were won by the Company's
employees for their contribution in State Level Safety Slogan
Competition.
11. Human Resource Development
Company's Human Resources team is running successfully its talent
acquisition, retention and development agenda during the year.
Company's senior management team was strengthened through hiring of
leaders in various domains. The Company's HR policies and processes
are aligned to effectively drive its business and other emerging
opportunities.
The focus on employee development through training modules that were
created in-house continued. More than 164 training programs were
conducted during the year, over 86% of them through in-house trainers
and business leaders. The programs added up to over 16,528 man-hours /
2,066 man-days of training. This has been achieved by continuously
investing in learning and development programs by arranging target
oriented training programs, creating appropriate work environment and
maintaining a structured recognition system.
HR has been working to provide an enabling working environment where
innovation and performance thrive. Employees are empowered and we
believe that it is people who ultimately deliver results.
12. Manufacturing and Quality Initiatives
With innovative approaches in manufacturing techniques and
product optimization, the productivity in the manufacturing segment has
significantly gone up. The quality culture of your Company ensures that
the products are benchmarked as best in class by the customers. Our
quest for excellence both in manufacturing and quality continue as
before. Your Company is regarded as best in class for quality and
reliability.
In order to keep the plants in excellent running condition the company
has upgraded the manufacturing plants with various new equipment to
produce quality products.
13. Consolidated Financial Statement
The Consolidated Financial Statements of the Company are prepared in
accordance with relevant Accounting Standards AS-21, AS-23 and AS-27
issued by the Institute of Chartered Accountants of India and forms a
part of this Annual Report.
14. Subsidiary Companies
Garware Polyester International Limited-UK and Global Pet Films
Inc.-USA, continue to be subsidiaries of the Company.
Pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5
of the Companies (Accounts) Rules, 2014, the statement containing
salient features of the financial statements of the Company's
Subsidiaries (in Form AOC-1) is attached to the financial statements.
15. Safety, Health & Environmental Protection
Being a responsible corporate citizen, your Company has continued to
sustain various initiatives for the continual improvement in Safety,
Health and Environment (SHE) at the works and surroundings.
Some of the prominent activities include - Safety audits of Thermic
Fluid System and Electrical System by external expertise (M/s Jacobs
Engineering), Internal Safety survey of plants, Field Safety rounds
after monthly safety review meetings, EMS training and field rounds,
periodical SHE inspections and trainings, schemes on the efficient
usage of energy and the conservation of natural resources, activities
for the enhancement of employee participation in SHE and the support in
emergency management operations at public places.
Your Company is a recipient of various safety laurels from the
Regulatory Authorities on the State and National level, as stated above
during the year. Safety and security system of your company has been
upgraded, your company carries out various safety awareness training
and emergency execution drills from time to time to prepare its
workforce for emergency situations.
16. Directors' Responsibility Statement
Pursuant to Section 134(5) of the Companies Act, 2013, the board of
directors, to the best of their knowledge and ability confirm that:
a) in the preparation of the annual accounts for the year ended March
31, 2015, the applicable accounting standards read with requirements
set out under Schedule III to the Act, have been followed and there are
no material departures from the same;
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 as at March 31,2015 and of the profit of the Company for
the year ended on that date;
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, 2013 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
d) the Directors have prepared the annual accounts on a 'going
concern' basis;
e) the Directors have laid down internal financial controls to be
followed by the Company and such internal financial controls are
adequate and operating effectively.
f) the Directors have advised proper systems to ensure compliance with
provisions of applicable laws and that such system were adequate and
operating effectively.
17. Directors and Key Managerial Personnel
In accordance with the provisions of the Act and the Articles of
Association of the Company, Mrs. S. S. Garware and Mr. M. S. Adsul,
Directors of the Company, retire by rotation at the ensuing Annual
General Meeting and being eligible have offered themselves for
re-appointment.
During the year under review: (a) Ms. Sonia Garware became
Non-Executive & Non-Independent Director from Executive &
Non-Independent Director. (b) The Company appointed Mr. Nilesh R. Doshi
as Independent Directors of the Company with effect from November 12,
2014 for a period of five consecutive years.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
independence as prescribed both under the Act and under Clause 49 of
the Listing Agreement entered with the Bombay Stock Exchange Ltd.
Key Managerial Personnel
The Company has appointed following persons as Key Managerial Personnel
Name of the Person Designation
1. Mr. Gokul D. Naik Chief Financial Officer
2. Mr. S. C. Nanda Company Secretary
3. Mr. Nimesh S. Shah Company Secretary
4. Mr. Sunil Kanojia Chief Executive Officer
Mr. S. C. Nanda resigned as a Company Secretary of the Company
w.e.f. 14.03.2015.
$ Mr. Nimesh S. Shah was appointed as a Company Secretary of the
Company w.e.f. 30.04.2015.
@Mr. Sunil Kanojia was appointed as CEO w.e.f. 12.05.2015 and has
ceased to be CEO w.e.f. 04.08.2015.
18. Number of meetings of the Board
Four meetings of the Board were held during the year. For details of
the meetings of the Board, please refer to the corporate governance
report, which forms part of this report.
19. Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, a structured questionnaire was prepared after
taking into consideration of the various aspects of the Board
functioning, composition of the Board and its Committees, culture,
execution and performance of specific duties, obligations and
governance.
This performance evaluation of the Independent Directors was completed.
The performance evaluation of the Chairman and the Non-Independent
Directors was carried out by the Independent Directors. The Board of
Directors expressed their satisfaction with the evaluation process.
20. Policy on Directors' Appointment and Remuneration and Other
Details
The Company's policy on directors' appointment and remuneration and
other matters provided in Section 178(3) of the Act has been disclosed
in the corporate governance report, which forms part of the
directors' report.
21. Internal Financial Control Systems and their Adequacy
The details in respect of internal financial control and their adequacy
are included in the Management Discussion & Analysis, which forms part
of this report.
22. Audit Committee
The details pertaining to composition of Audit Committee are included
in the Corporate Governance Report, which forms part of this report.
23. Statutory Auditors
Pursuant to the provisions of Section 139 of the Act and the rules
framed there under, M/s. Manubhai & Shah, Chartered Accountants, were
appointed as Statutory Auditors of the Company from the conclusion of
the 57th Annual General Meeting (AgM) held on September 25, 2014 till
the conclusion of the 62nd AGM to be held in the year 2019, subject to
ratification of their appointment at every AGM.
However, the Company has received a special notice under Section 115 of
the Company's Act, 2013 proposing the name of M/s. Kirtane & Pandit,
LLP, Chartered Accountants as Joint Auditors, subject to member's
approval at the ensuing Annual General Meeting.
The Auditors, M/s. Manubhai & Shah and M/s. Kirtane & Pandit, have
conveyed their eligibility and willingness to act as joint auditors of
the Company, if appointed at the ensuing Annual General Meeting. Board
recommends that appointment of Joint Auditors shall be commensurate
with the nature and size of operation of the Company. As required under
the provisions of Section 139 of the Companies Act, 2013, the Company
has obtained written confirmation from M/s. Manubhai & Shah and M/s.
Kirtane & Pandit that their appointment, if made, would be in
conformity with the limits specified in the said Section.
Cost Auditor
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 out the audit of cost records.
The Board of Directors, on the recommendations of Audit Committee, has
appointed M/s. M. R. Pandit & Co., Cost Accountants, Aurangabad as Cost
Auditors to audit the cost accounts of the company for financial year
2015-16. As required under Companies Act, 2013, a resolution seeking
member's approval for ratification of remuneration payable to the
Cost Auditors forms a part of the notice convening the Annual General
Meeting.
24. Auditors' Report and Secretarial Auditors' Report
The observations made in the Auditor's Report and Secretarial
Auditor's Report are self-explanatory and therefore, do not call for
any comments. The Auditors' Report and Secretarial Auditors' Report
does not contain any qualifications, reservations or adverse remarks.
Report of the Secretarial Auditor is given as an annexure which forms
part of this report.
25. Risk Management
The Board of the Company has formed a Risk Management Committee to
frame, implement and monitor the risk management plan for the Company.
The Audit Committee is responsible for reviewing the risk management
plan and ensuring its effectiveness. The Audit Committee has additional
oversight in the area of financial risks and controls. Major risks
identified by the businesses and functions are systematically addressed
through mitigating actions on a continuing basis.
The development and implementation of risk management policy has been
covered in the management discussion and analysis, which forms part of
this report.
26. Particulars of Loans, Guarantees and Investments
The particulars of loans, guarantees and investments have been
disclosed in the financial statements.
27. Transactions with Related Parties
All transactions entered by the Company during the financial year with
related parties were in the ordinary course of business and at an
arm's length pricing basis. The Audit Committee granted omnibus
approval for the transactions (which are repetitive in nature) and the
same was reviewed by the Audit Committee and the Board of Directors.
There were no materially significant transactions with related parties
during the financial year 2014-15 which were in conflict with the
interest of the Company. Your Directors draw attention of the members
to take note of Note No. 35 to the financial statement which sets out
related party disclosure.
28. Corporate Social Responsibility
The Corporate Social Responsibility Committee (CSR Committee) has
formulated and recommended to the Board, a CSR Policy indicating the
activities to be undertaken by the Company, which has been approved by
the Board. The brief outline of the Corporate Social Responsibility
(CSR) Policy of the Company and the initiatives undertaken by the
Company on CSR activities during the year are set out in Annexure I of
this report in the format prescribed in the Companies (Corporate Social
Responsibility Policy) Rules, 2014.The CSR Policy may be accessed on
the Company's website at http://www.garwarepoly.com.
The Company has established Garware Community Centre at Chikalthana,
Aurangabad in the year 1994 primarily to cater to the social needs of
workmen largely staying in the CIDCO, Aurangabad area and other members
of the society as a not-for-profit trust through which the Company
could channelize social welfare initiatives. The Society is also
registered separately under the Societies Act for carrying out social
activity at Garware Bal Bhawan primarily for the children from all
strata of the society and to give scope for the talent and to grow the
same is doing excellent job and has been recognized by the National Bal
Bhawan, New Delhi for expanding various activities.
One more Community Centre has been started in Waluj at Aurangabad in
the year 2013 considering the need of the villagers and workmen staying
in the village. Over the years, the Community Centre has initiated,
guided and conducted several programs in education by way of Study
Centre, organizing speeches from renowned guest speakers on career
guidance, etc. In addition various other activities are carried out at
the center such as sports, judo & karate, bharat natyam, yoga and
suryanamaskar, library, reading room etc. and has been successful in
bringing about a positive change in the lives of the underprivileged
sections of society.
The Company would also undertake other need based initiatives in
compliance with Schedule VII to the Act.
During the year, the Company has spent Rs. 60.00 Lakhs (around 2.43% of
the average net profits of last three financial years) on CSR
activities which does not include the expenses made on the activities
carried out by the Garware Community Center and Garware Bal Bhawan.
29. Extract of Annual Return
As provided under Section 92(3) of the Act, the extract of Annual
Return of the Company is annexed herewith as Annexure II in the
prescribed Form MGT-9, which forms part of this report.
30. Particulars of Employees and related disclosures
Three Whole-time Directors/Employees employed throughout the year were
in receipt of remuneration of Rs. 60 Lac per annum or more amounting to
Rs. 8.47 Crore and one whole-time director/ employee employed for the
part of the FY 2014-15 was in receipt of remuneration of Rs. 5 Lac per
month or more amounting to Rs. 0.83 Crore were relative(s) of Shri S.
B. Garware Chairman & Managing Director of the Company. During FY
2014-15 the Company had 1169 nos. of permanent employees.
The information required under Section 197(12) of the Companies Act,
2013 read with Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 and forming part of the Directors' Report for
the year ended March 31, 2015 is given in a separate Annexure to the
Report.
The above Annexure is not being sent along with this Report to the
Members of the Company in line with the provision of Section 136 of the
Companies Act, 2013. Members who are interested in obtaining these
particulars may write to the Company Secretary at the Registered Office
of the Company.
31. Other Laws
During the year under review, there were no cases filed pursuant to the
provisions of sexual harassment of women at work place (Prevention,
Prohibition and Redressal) Act, 2013.
32. Corporate Governance
The Company is committed to maintain the highest standards of corporate
governance and adhere to the corporate governance requirements as set
out by SEBI. The Company has also implemented several best corporate
governance practices as prevalent globally. The report on Corporate
Governance as stipulated under the Listing Agreement forms an integral
part of this Report. The requisite certificate from the Practicing
Company Secretary, confirming compliance with the conditions of
corporate governance is attached to the report on Corporate Governance.
33. Vigil Mechanism
The Vigil Mechanism of the Company, which also incorporates a whistle
blower policy in terms of the Listing Agreement, includes an Ethics &
Compliance Task Force comprising senior executives of the Company.
Protected disclosures can be made by a whistle blower through an
e-mail, or dedicated telephone line or a letter to the Task Force or to
the Chairman of the Audit Committee.
The Policy on vigil mechanism and whistle blower policy is available on
the Company's website at the www.garwarepoly.com.
34. Deposits From Public
The Company has not accepted any deposits from public and as such, no
amount on account of principal or interest on deposits from public was
outstanding as on the date of the balance sheet.
35. Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The particulars relating to conservation of energy, technology
absorption, foreign exchange earnings and outgo, as required to be
disclosed under the Act, are provided in Annexure III to this Report.
36. Industrial Relations
The relations between the Employees and the Management remained cordial
during the year under review. Your Directors wish to place on record
their appreciation of the contributions made by the employees at all
levels.
37. Acknowledgements
Your Directors take this opportunity to thank the customers, supply
chain partners, employees, Financial Institutions, Banks, Central and
State Government authorities, Regulatory authorities, Stock Exchange
and all the various stakeholders for their continued co- operation and
support to the Company.
For and on behalf of the Board of Directors
For Garware Polyester Limited
Place : Mumbai S. B. GARWARE
Date : August 06, 2015 Chairman & Managing Director
Mar 31, 2014
TO THE MEMBERS,
The Directors present the 57th Annual Report together with the Audited
Statement of Accounts of the Company for the year ended 31st March,
2014.
Financial Results (Rs. in Crores)
2013 - 2014 2012 Â 2013
Operating Profit before
Interest & Depreciation 78.88 75.05
Less : Finance Cost 36.95 29.46
Depreciation 33.47 39.32
70.42 68.78
Profit for the year before
Exceptional Item 8.46 6.27
Add : Exceptional items 6.22 5.56
Provision for Income Tax 3.30 (15.87)
Profit After Tax 11.38 27.70
Add : Balance brought forward from
previous year 296.88 269.18
Balance available for Appropriation 308.26 296.88
Appropriation:
Dividend on Cumulative Redeemable
Preference Shares (CRPS) (*Rs.
54,460/-) *0.01 *0.01
Tax on Dividend (Rs.9,255/- on CRPS) *0.00 *0.00
Balance carried to Balance Sheet 308.25 296.87
Total 308.26 296.88
Dividend
Your Directors have not recommended any dividend on the equity share
capital for the year under review with a view to conserve resources to
combat the impending liquidity crunch and to plough back profits to
strengthen the net working capital. The Company is in investment mode
and has decided to conserve cash to recycle into projects that are
underway for completion. However, dividend on 54,46,000 cumulative
redeemable preference shares of Rs. 100 each @ 0.01% amounting to Rs.
54,460 is recommended by the Board.
Operations
The year 2013-14 has ended with marginal improvement over the year
2012-13 with increase in sales by about 8% due to higher sales volume
of Industrial Products. The average sales realization was also better
compared to previous year due to better product mix. This was achieved
irrespective of increase in Raw material and interest costs for the
term loans. The Company is making efforts to divert the spare capacity
of Consumer Products Division for exports which capacity has become
spare due to the ban on use of Sun control flm on motor car windows in
Indian market on account of the order of the Hon''ble Supreme Court of
India.
Future Outlook
The overcapacity situation persists in the Polyester flm manufacturing
Industry in Indian Market as well as in International Market. The
prices remain under pressure due to competition and oversupply
situation. The Company has shifted its focus to the Specialty flms and
already developed some new products for the market such as digital
printable flms, Films for solar back sheet application and flms with
high Infrared heat rejection for Automobiles. These flms will cater to
the export market.
Research & Development
Your company is a leader in development of new products and new
applications in the felds of Polyester flm and Solar control window
flm. Apart from development of new products, R&D Department is also
focusing on cost reduction measures by developing cost effective
alternative raw materials and processes.
Company''s R&D Centre is accredited by the Department of Scientifc and
Industrial Research, Ministry of Science and Technology, Government of
India. R&D team works hand-in-hand with production team to establish
new products at the plant and to improve the product quality and plant
efficiencies.
All the manufacturing plants / pilot plants and laboratories are
upgraded with latest equipment to upgrade the product quality and
achieve the stringent quality requirements of demanding customers.
Functioning of R & D Department
R&D activities are carried out in separate R&D centers for Film and
Solar control division.
In these centers various pilot plants are installed for development of
Polymers, flm extrusion and different types of coating.
All new polymers and coatings are frst produced in these plants and
extensively tested in specially developed test facilities before
commencing trials on the main plant. All the new product trials are
taken under supervision of very senior R&D personnel and test marketing
is done before producing them in bulk quantities.
Our laboratories are equipped with state-of-the-art latest testing
equipments and many specialty test rigs are used as per the end product
applications.
Information Technology (IT) -
- Company believes that IT is a strategic tool for excellence in
customer service and sustainable business growth and with this in view,
the Company has implemented SAP for better business integration by
replacing legacy standalone systems.
- The company has setup SAP Disaster Recovery (DR) site as a
contingency plan for business continuity.
- The Company has setup Domain Server and Active Directory to implement
centralized IT security policies and access controls to all the desktop
and laptop users.
- The Company has setup completely managed CISCO network to avoid
network downtime and implement IT security policies.
- The Company has implemented Data Server virtualization to cut down
server infrastructure cost and build server redundancy.
- The Company has setup centralized internet security frewall system to
secure internet communication and mitigate internet security threats.
- The Company has developed and implemented Task Reminder System for
timely compliances of all the statutory requirements.
- The Company has implemented Bio Metric attendance system across the
offices and plants to help HR and Administration for processing of wages
and payroll and online attendance records.
- The Company is in process of implementing CCTV security surveillance
system to control and monitor manufacturing process.
- The Company has implemented centralized email system with CITRIX
virtual cluster solution for efficient working.
- The Company has implemented complete software license compliance and
adheres not to use any pirated software.
Awards and Recognitions
During this year, your Company has been honoured with eight Safety
Awards at National as well as State Levels by various Government
Authorities, viz. National Safety Council of India (NSCI), and
Maharashtra State Chapter of National Safety Council (NSC - MC). Out of
these eight awards, three awards were won by the Company''s employees
for their contribution in State Level Safety Slogan Competition.
Human Resource Development
The Company''s HR policies and processes are aligned to effectively
drive its business and other emerging opportunities. This has been
achieved by continuously investing in learning and development programs
by arranging target oriented training programs, creating appropriate
work environment and maintaining a structured recognition system. The
Company helps employees to build new skills and competencies and
promote knowledge sharing and team building. HR has been working to
provide an enabling working environment where innovation and
performance thrive. Employees are empowered and we believe that it is
people who ultimately deliver results.
Manufacturing and Quality Initiatives
With innovative approaches in manufacturing techniques and product
optimization, the productivity in the manufacturing segment has
significantly gone up. The quality culture of your Company ensures that
the products are benchmarked as best in class by the customers. Our
quest for excellence both in Manufacturing and Quality continues as
before. Your Company is regarded as best in class for Quality and
Reliability.
Corporate Social Responsibility
Corporate social responsibility in your Company is aligned with
''Garware'' tradition of creating wealth in the community with focus on
Art, Culture, Sports, health, education and safety. The Company is
running Garware Community Center having full-fedged branches at
Chikalthana and Waluj, Aurangabad and with various activities at
various locations. The
Centre is engaged in overall development of the community members of
all age group and creating hobbies among them for art, culture, sports,
education, social work, music etc. The Company has thus established a
very healthy corporate structured system, while sharing the interests
and concerns of the community at large.
Corporate Social Responsible Committee
During the year, your directors have constituted the Corporate Social
Responsibility Committee (CSR Committee) comprising Mrs. Sarita Garware
Ramsay as the Chairman and Mr. B. Moradian and Dr. M. C. Agarwal as
other members.
The said Committee has been entrusted with the responsibility of
formulating and recommending to the Board, a Corporate Social
Responsibility Policy (CSR Policy) indicating the activities to be
undertaken by the Company, monitoring the implementation of the
framework of the CSR Policy and recommending the amount to be spent on
CSR activities.
Subsidiaries Companies and their Financial Statements
Garware Polyester International Limited - UK and Global Pet Films Inc.-
USA, continue to be the subsidiaries of the Company. The Ministry of
Corporate Affairs, Government of India vide General Circular No: 2/2011
dated 8th February, 2011 has allowed general exemption to Companies
from complying with Section 212(8) of the Companies Act, 1956, provided
such companies publish audited consolidated financial statements in the
Annual report. Your Board has decided to avail the said general
exemption from applicability of provisions of Companies Act, 1956 and
accordingly, the Annual Accounts of the above Subsidiary Companies for
the financial year ended 31st March, 2014 are not being attached with
this Annual Report and the specified financial highlights of the said
Subsidiaries are disclosed in this Annual Report, as part of the
Consolidated Financial Statements. The Audited annual accounts and
related information of the subsidiaries will be made available, upon
request and also be open for inspection at the Registered office, to any
shareholder with suffcient notice and on payment of prescribed fees as
per the provisions of the law.
Safety, Health & Environmental Protection
Being a Responsible Corporate Citizen, your Company has continued to
sustain various initiatives for the continual improvement in Safety,
Health and Environment (SHE) at the works and surroundings. Some of the
prominent activities include  Internal Safety Audit of plants (as per
Indian Standard on Occupational Safety and Health Audit: IS-14489),
Safety audits Thermic Fluid system and Electrical System by external
expertise (M/s Jacobs Engineering), periodical SHE inspections and
trainings, schemes on the efficient usage of energy and the conservation
of natural resources, activities for the enhancement of employee
participation in SHE and the support in emergency management operations
at public places. Your Company is a recipient of various safety laurels
from the Regulatory Authorities on the State and National level as
stated above during the year. Security system has been upgraded, like
awareness training, evacuation drills to meet the new challenges.
Directors'' Responsibility Statement
Pursuant to Section 134(5) of the Companies Act, 2013(erstwhile Section
217(2AA) of the Companies Act, 1956) the Board of Directors of your
Company confirm:
i) that in the preparation of the annual accounts, the applicable
accounting standards have been followed;
ii) that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for that year;
iii) that the Directors have taken proper and suffcient care for the
maintenance of adequate accounting records in accordance with
the provisions of the Companies Act, 1956 safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
iv) that the Directors have prepared the annual accounts on a going
concern basis.
Directors
1. Mrs. Monika Garware Modi and Ms. Sonia Garware, retire by rotation
and being eligible, offer themselves for re-appointment.
2. The Board of Directors of your Company has:
a) re-appointed Shri S. B. Garware as Chairman & Managing Director of
the Company on revised terms, effective from 1st November,2014 for a
period of five years.
b) approved variation in the payment to remuneration payable to Mrs.
Monika Garware Modi-Vice Chairperson & Joint Managing Director, Mrs.
Sarita Garware Ramsay-Joint Managing Director w.e.f. 1st April, 2014 to
31st October, 2018 and to Ms. Sonia Garware, Joint Managing Director
w.e.f. 1st April, 2014 to 31st March, 2015.
c) appointed Mr. T. M. Parikh as an additional Director with effect
from 27th December, 2013. According to provisions of Section 260 of the
Companies Act, 1956, (corresponding to Section 161(1) of the Companies
Act, 2013) an Additional Director holds office as a Director only upto
the date of the ensuing Annual General Meeting.
As required under Section 257 of the Companies Act, 1956,
(corresponding to Section 160 of the Companies Act, 2013) notices have
been received from members signifying their intention to propose the
appointment of Mr. T. M. Parikh, as a Director. Resolution proposing
his appointment as a Director forms part of agenda of ensuing Annual
General Meeting.
3. In terms of Sections 149, 152, Schedule IV and other applicable
provisions, if any, of the Companies Act, 2013 read with Companies
(Appointment and Qualification of Directors) Rules, 2014, the
Independent Directors can hold office for a term of up to five (5)
consecutive years on the Board of Directors of your Company and are not
liable to retire by rotation. Accordingly, it is proposed to appoint
Mr. N. P. Chapalgaonkar, Mr. Ramesh Makhija, Mr. B. Moradian, Dr. M
.C. Agarwal and Mr. T. M. Parikh as Independent
Directors of your Company for 5 (five) consecutive years up to 31st
March, 2019.
Appropriate resolutions for the appointment/re-appointment of Directors
are being placed before you for your approval at the ensuing Annual
General Meeting. The brief resume of the aforesaid Directors and other
information have been detailed in the Notice. Your Directors recommend
their appointment/reappointment as Directors of your Company.
4. Mr. A. B. Bhalerao and Mr. Dilip J. Thakkar resigned as Independent
Non-Executive Directors of your Company on 31st October, 2013 and 29th
May, 2014, respectively. The Board places on record its appreciation
for their valuable contribution to your Company as Directors during
their association with your Company.
Audit Committee
Besides Mr. M. S. Adsul, the Audit Committee comprises of three
independent Directors viz. Mr. B. Moradian, Dr. M. C. Agarwal and Mr.
T. M. Parikh.
Mr. B. Moradian, who is an independent non-executive Director, acts as
chairman of Audit Committee Meetings.
Corporate Governance
A Report on Management Discussion and Analysis, Corporate Governance as
well as Auditor''s Certifcate regarding compliance of Clause 49 of the
Listing Agreement forms part of this Report.
Auditors
Subject to approval of the Members, the Board of Directors of Company
have decided to appoint M/s. Manubhai & Shah, Chartered Accountants as
Statutory Auditors of the Company from the conclusion of this Annual
General Meeting until the conclusion of the sixth Annual General
Meeting to be held after this meeting, subject to ratifcation at every
Annual General Meeting in place of M/s. Shah & Co., Chartered
Accountants, the retiring statutory auditors of the Company in
compliance with Section 140(4)(i) of the Companies Act, 2013.
Cost Auditors
The Company has appointed M/s. M. R. Pandit & Co., Cost Accountants,
Aurangabad as cost auditors for conducting the audit of cost records of
the Company for the Financial Year 2013-14.
Other Statutory Information
The information required under Section 217(2A) of the Companies Act,
1956 read with Companies (Particulars of Employees) Rules, 1975 forms
part of this report. However, as per the provisions of Section
219(1)(b) (iv) of the Companies Act, 1956, the Report and Accounts are
being sent to all the Shareholders of the Company excluding the
aforesaid information. Any Shareholder interested in obtaining such
particulars may inspect the same at the Registered office of the Company
or write to the Company Secretary at the Corporate office of the
Company. Information as per Section 217(1)(e) of the Companies Act,
1956, read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 and forming part of this Report is
annexed.
Industrial Relations
The relations between the Employees and the Management remained cordial
during the year under review. Your Directors wish to place on record
their appreciation of the contribution made by the Employees at all
levels.
Acknowledgements
Your Directors wish to place on record their appreciation of the
wholehearted co-operation received by the Company from the various
departments of the Central & State Governments, Company''s Bankers and
Financial & Investment Institutions during the period under review.
For and on behalf of the Board of Directors
Mumbai S. B. GARWARE
31st July, 2014 Chairman & Managing Director
Mar 31, 2013
TO'' THE MEMBERS
The Directors present the 56th Annual Report together with the Audited
Statement of Accounts of the Company for the year ended 31st March''
2013.
Financial Results
(Rs. in Crores)
2012 - 2013 2011 Â 2012
Operating Proft before
interest & Depreciation 75.05 103.77
Less : Finance Cost 29.46 28.33
Depreciation 39.32 41.71
68.78 70.04
Proft for the year before Exceptional Item 6.27 33.73
Exceptional items (5.56) (1.34)
Provision for Income Tax (15.87) 0.00
Proft After Tax 27.70 35.07
Add : Balance brought forward
from previous year 269.18 239.93
Balance available for Appropriation 296.88 275.00
Appropriation:
Transfer to General Reserve 0.00 1.75
Dividend on Cumulative Redeemable
Preference Shares (CRPS)(*Rs.54''460/-) *0.01 *0.01
Proposed Final Dividend on Equity Shares 0.00 3.50
Tax on Dividend (#Rs. 8''840/- on CRPS) #0.00 0.57
Balance carried to Balance Sheet 296.87 269.18
Total 296.88 275.00
Dividend
Your Directors have not recommended any dividend on the equity share
capital for the year under review with a view to conserve resources to
combat the impending liquidity crunch and to plough back profts to
strengthen the net working capital. However'' dividend on 54''46''000
cumulative redeemable preference shares of Rs. 100 each @ 0.01%
amounting to Rs. 54''460 is recommended by the Board.
Operations
Compared to the previous year which was good'' there was a decline in
the sales by 1.57% due to; (a) ban imposed by the order of Supreme
Court of India on usage of Sun Control Film in automotive applications''
(b) ban imposed on usage of polyester flm for ''GutkaÂ/ ''Pan MasalaÂ
packaging by rules made for environmental protection'' (c) uncertainty
in the advanced economies'' (d) continuing Euro debt crisis and (e)
over-all slow-down in the industry growth due to slackening of demand''
policy uncertainty and tighter monetary conditions.
Future outlook
Market conditions continue to be competitive and full of challenges''
however our emphasis is on specialty flms. We prefer to concentrate on
limited market of specialty flms and to fnd out different path. Our new
products under Sun Control brand have received wide acceptance world
over and our focus on the Chinese and Russian markets are paying rich
dividends'' however in domestic market ban on use of flms in Automotive
applications has impacted us adversely. We are trying to salvage the
situation however the same continues to be unclear. The Company has
however diverted the production into the international markets.
Research & Development
CompanyÂs R&D Center is accredited by the Department of Scientifc and
Industrial Research'' Ministry of Science and Technology'' Government of
India'' and is engaged in research on new applications as well as
development of new products'' improvement of manufacturing processes and
debottlenecking activities. Your CompanyÂs thrust on R&D activities has
paid rich dividends.
Research & Development Department is functioning over the last 25 years
in the Company.
- It plays very vital role in development of new products/process
required for future business.
- It is well equipped with various Pilot Plants and Testing facilities
required for Product Development.
- Our Research & Development Department have research scholars''
scientists'' technicians and skilled & specialized work force for
various developmental areas.
Functioning of R & D Department
- Development of various polymers and co-polymers synthesis for
extrusion / co-extrusion and coating.
- Development of various flms by extrusion and co-extrusion.
- Development of various coating chemistries for in-line and off-line
coating.
- Development of various additives and master batches for specialty
flms.
Information Technology (IT)
Company believes that IT is a strategic tool for excellence in customer
service and sustainable business growth and with this view'' the Company
has implemented SAP for better business integration by replacing legacy
standalone systems.
The Company has implemented centralized email system with cluster
solution for effcient working.
Awards and Recognitions
During this year'' your Company has been honoured with ten Safety Awards
at National as well as State Levels by various Government Authorities''
viz. Director General of Factory Advice Service & Labour Institutes
(DGFASLI'' under the Ministry of Labour & Employment'' Government of
India)'' National Safety Council of India (NSCI)'' and Maharashtra State
Chapter of National Safety Council (NSC - MC). Out of these ten awards''
one awards were won by the CompanyÂs employees for their contribution
in State Level Safety Slogan Competition.
Human Resource Development
The CompanyÂs HR policies and processes are aligned to effectively
drive its business and other emerging opportunities. This has been
achieved by continuously investing in learning and development
programs'' creating appropriate work environment and maintaining a
structured recognition system. The Company helps employees to build
new skills and competencies and promote knowledge sharing and team
building.
Manufacturing and Quality Initiatives
With innovative approaches in manufacturing techniques and product
optimization'' the productivity in the manufacturing segment has
signifcantly gone up. The quality culture of your Company ensures that
the products are benchmarked as best in class by the customers. Our
quest for excellence both in Manufacturing and Quality continues as
before. Your Company is regarded as best in class for Quality and
Reliability.
Corporate Social Responsibility
Corporate social responsibility in your Company is aligned with
''Garware tradition of creating wealth in the community with focus on
Art'' Culture'' Sports'' health'' education and safety. The Company is
running the Garware Community Center at Aurangabad with various
activities at various locations. The Center is engaged in overall
development of the community members of all age groups and creating a
hobby among them for art'' culture'' sports'' education'' social work''
music etc. The Company has increased its activities in rural areas by
way of opening a full- fedged branch at Waluj'' Aurangabad.
Subsidiaries Companies and their Financial Statements
Garware Polyester International Limited - UK and Global Pet Films Inc.-
USA'' continue to be the subsidiaries of the Company. The Ministry of
Corporate Affairs'' Government of India vide General Circular No: 2/2011
dated 8th February'' 2011 has allowed general exemption to Companies
from complying with Section 212(8) of the Companies Act'' 1956'' provided
such companies publish audited consolidated fnancial statements in the
Annual report. Your Board has decided to avail the said general
exemption from applicability of provisions of Companies Act'' 1956 and
accordingly'' the Annual Accounts of the above Subsidiary Companies for
the fnancial year ended 31st March'' 2013 are not being attached with
this Annual Report and the specifed fnancial highlights of the said
Subsidiaries are disclosed in this Annual Report'' as part of the
Consolidated Financial Statements. The Audited annual accounts and
related information of the subsidiaries will be made available'' upon
request and also be open for inspection at the Registered Offce'' to any
shareholder with suffcient notice and on payment of prescribed fees as
per the provisions of the law.
Opening of GPL Branch Offce
The Company with an intention to have smooth export operations in
Europe & other CIS Countries has opened a branch offce in London'' U.K.''
which has been fully functional from September 1st'' 2012.
Safety'' Health & Environmental Protection
Being a Responsible Corporate Citizen'' your Company has continued to
sustain various initiatives for the continual improvement in Safety''
Environment and Health (SEH) at the works and surroundings. Some of the
prominent activities include - Internal Safety Audit of plants (as per
Indian Standard on Occupational Safety and Health Audit: IS-14489)''
periodical SEH inspections and trainings'' schemes on the effcient usage
of energy and the conservation of natural resources'' activities for the
enhancement of employee participation in SEH and the support in
emergency management operations at public places. Your Company is a
recipient of various safety laurels from the Regulatory Authorities on
the State and National level as stated above during the year. Security
system has been upgraded'' like awareness training and evacuation drills
to meet the new challenges.
Directors Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act'' 1956 the Board of
Directors of your Company confrm:
i) that in the preparation of the annual accounts'' the applicable
accounting standards have been followed;
ii) that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the fnancial year and of the
proft of the Company for that year;
iii) that the Directors have taken proper and suffcient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act'' 1956 safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities; iv) that the Directors have prepared the annual
accounts on a going concern basis.
Directors
1. Mrs. S. S. Garware'' Mrs. Sarita Garware Ramsay'' Mr. B. Moradian and
Dr. M. C. Agarwal'' retire by rotation and being eligible'' offer
themselves for re-appointment.
2. The Board of Directors of your Company has:
a) re-appointed Mrs. Monika Garware Modi and Mrs. Sarita Garware Ramsay
as Joint Managing Director(s) of the Company on revised terms''
effective from 1st November'' 2013 for a period of fve years .
b) approved the revision in payment of remuneration to Ms. Sonia
Garware'' Joint Managing Director of the Company effective from 1st
September'' 2013.
c) approved the extension of service period to Mr. M. S. Adsul in order
to continue him as Director (Technical) of the Company effective from
1st June'' 2013 for a period of fve years.
Audit Committee
Besides Mr. M. S. Adsul'' the Audit Committee comprises of three
independent Directors viz. Mr. B. Moradian'' Dr. M. C. Agarwal and Mr.
A. B. Bhalerao.
Mr. B. Moradian'' who is an independent non-executive Director'' acts as
Chairman of Audit Committee Meetings.
Corporate Governance
A Report on Management Discussion and Analysis'' Corporate Governance as
well as Certifcate from the Practicing Company Secretary confrming the
Compliance of Clause 49 of the Listing Agreement form part of this
Report.
Auditors and their Report
The retiring auditors'' M/s. Shah & Co.'' Chartered Accounts
(Registration No. 109430W) of Mumbai'' being eligible for re-appointment
and have indicated their willingness to act as auditors'' if appointed.
The Company has received a letter dated August 6'' 2013 from them to the
effect that their re-appointment'' if made'' would be within the limits
prescribed under Section 224(1B) of the Companies Act'' 1956 and they
are not disqualifed for re-appointment within the meaning of Section
226 of the said Act.
M/s. Chaturvedi & Shah'' Chartered Accountants (Registration No.
101720W) of Mumbai'' one of the Joint Statutory Auditors of the Company
have tendered their resignation vide their letter dated August 2'' 2013
from offce of Statutory Auditors. The same has been accepted by the
Audit Committee and the Board of Directors in their respective meetings
held on August 9'' 2013.
The AuditorÂs Report is unqualifed. The notes to accounts referred to
in the AuditorÂs Report are self-explanatory and therefore do not call
for any further clarifcations under Section 217(3) of the Companies
Act.
Cost Compliance Certifcate
In compliance to Notifcation No. GSR 429(E) dated 03.06.2011 issued by
the Ministry of Corporate Affairs with respect to the Companies (Cost
Accounting Records) Rules'' 2011'' a Cost Compliance Certifcate for the
fnancial year 2011-12 issued by M/s. M.R. Pandit & Co. (Practicing Cost
Accountant) (Firm Registration No. 00268) has been fled with Ministry
of Corporate Affairs.
Transfer to Investor Education and Protection Fund
Pursuant to provisions of Section 205A(5) and Sec 205C of the Companies
Act'' 1956'' an unclaimed / unpaid dividend pertaining to the fnancial
year 2004-05 amounting to Rs.4''55''340/- has been transferred to the
Investor Education and Protection Fund on November 17'' 2012 vide
payment Challan No. SRN B61623716.
Other Statutory Information
The information required under Section 217(2A) of the Companies Act''
1956 read with Companies (Particulars of Employees) Rules'' 1975 forms
part of this report. However'' as per the provisions of Section
219(1)(b)(iv) of the Companies Act'' 1956'' the Report and Accounts are
being sent to all the Shareholders of the Company excluding the
aforesaid information. Any Shareholder interested in obtaining such
particulars may inspect the same at the Registered Offce of the Company
or write to the Company Secretary at the Corporate Offce of the
Company. Information as per Section 217(1)(e) of the Companies Act''
1956'' read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules'' 1988 and forming part of this Report is
annexed.
Industrial Relations
The relations between the Employees and the Management remained cordial
during the year under review. Your Directors wish to place on record
their appreciation of the contribution made by the Employees at all
levels.
Acknowledgements
Your Directors wish to place on record their appreciation of the
wholehearted co-operation received by the Company from the various
departments of the Central & State Governments'' CompanyÂs Bankers and
Financial & Investment Institutions during the period under review.
For and on behalf of the Board of Directors
Mumbai S. B. GARWARE
9th August'' 2013 Chairman & Managing Director
Mar 31, 2012
The Directors present the 55th Annual Report together with the Audited
Statement of Accounts of the Company for the year ended 31st March,
2012.
Financial Results
(Rs. in Crores)
2011-2012 2010-2011
Operating profit before
interest & Depreciation 103.77 290.94
less: Finance Cost 28.33 23.93
Depreciation 41.71 70.04 39.65 63.58
profit for the year
before Exceptional item 33.73 227.36
Exceptional items (1.34) 16.36
provision for income Tax 0.00 22.55
profit After Tax 35.07 188.45
Add : Balance brought
forward from previous year 239.93 95.83
Balance available
for Appropriation 275.00 284.28
Appropriation:
Transfer to General Reserve 1.75 18.85
Dividend on Redeemable
preference Shares
(*Rs.54,460/-) 0.01 0.00*
interim Dividend 0.00 1.89
proposed Final Dividend
on Equity Shares 3.50 19.82
Tax on Dividend 0.57 3.79
Balance carried to
Balance Sheet 269.18 239.93
Total 275.00 284.28
Dividend
Your Directors recommend for consideration at the Annual General
Meeting, declaration of dividend for the year ended 31st March, 2012 as
under:
a) On 54,46,000 0.01% Cumulative Redeemable preference Shares of Rs.
100/- each and
b) On 2,33,15,150 equity shares of Rs. 10/- each @ 15% (i.e. Rs. 1.50
per equity share).
The above will absorb Rs. 407.09 Lakhs (including Tax)
Operations
Compared to previous year which was exceptionally good, there was a
decline in the sales by 11.60% due to (a) ban imposed on usage of
polyester film for 'Gutka'/ 'pan Masala' packaging (b)Uncertainty in the
advanced economies (c) Continuing Euro debt crisis and (d) over all
slow down in the industry growth due to slackening of demand, policy
uncertainty and tighter monetary conditions.
Future outlook
Market conditions continue to be difficult however our emphasis is on
growing our export activity. We expect to maintain our edge over
competitors. Our Sun Control products have received wide acceptance
world over and our focus on the Chinese and Russian market are paying
rich dividends, however recent ban on use of films in Automotive has
impacted us adversely. We are trying to rectify the situation however
the same continues to be unclear.
Increase in Paid-up Equity Share Capital.
The Scheme of Arrangement approved by the Hon'ble High Court of Bombay
vide it's order dated 21st October, 2011 between Garware Chemicals
limited (GCL) with the Company, pursuant to which 2,54,764 equity
shares of Rs. 10/- each as fully paid up were allotted to the members
of GCL (other than the Company). Hence the paid-up equity share capital
of the Company has increased to that extent.
Research & Development
Company's R&D Center is accredited by the Department of Scientific and
industrial Research, Ministry of Science and Technology Government of
India, and is engaged in research on new applications as well as
development of new products, improvement of manufacturing processes and
debottlenecking activities. Your Company's thrust on R&D activities has
paid rich dividends.
Research & Development Department is functioning from 1988 onwards in
Garware polyester limited.
- It is approved by Department of Science and industrial Research
(DSIR), Government of India.
- It plays very vital role in development of new products/process
required for future business.
- It is well equipped with various pilot plants and Testing facilities
required for product Development.
- Our Research & Development Department have skilled and specialized
work force for various developmental areas.
Functioning of R & D Department: -
- Development of various polymers and co-polymers synthesis for
extrusion / co-extrusion and coating.
- Development of various films by extrusion and co-extrusion.
- Development of various coating chemistries for in-line and off-line
coating.
- Development of various additives and master batches for specialty
films.
Information Technology (IT)
Company believes that IT is a strategic tool for excellence in customer
service and sustainable business growth and with this view, the Company
has implemented SAP for better business integration by replacing legacy
standalone systems.
The Company has implemented centralized email system with cluster
solution for efficient working.
Awards and Recognitions
During this year, your Company has been honoured with eleven Safety
Awards at National as well as State levels by various Government
Authorities, viz. Director General of Factory Advice Service & labour
institutes (DGFASLI, under the Ministry of labour & Employment,
Government of India), National Safety Council of India (NSCI), and
Maharashtra State Chapter of National Safety Council (NSC Ã MC). Out
of these eleven awards, two awards were won by the Company's employees
for their contribution in State level Safety Slogan Competition.
Human Resource Development
The Company's HR policies and processes are aligned to effectively
drive its business and other emerging opportunities. This has been
achieved by continuously investing in learning and development
programs, creating appropriate work environment and maintaining a
structured recognition system. The Company helps employees to build new
skills and competencies and promote knowledge sharing and team
building.
Manufacturing and Quality Initiatives
With innovative approaches in manufacturing techniques and product
optimization, the productivity in the manufacturing segment has
significantly gone up. The quality culture of your Company ensures that
the products are benchmarked as best in class by the customers. Our
quest for excellence both in Manufacturing and Quality continues as
before. Your Company is regarded as best in class for Quality and
Reliability.
Corporate Social Responsibility
Corporate social responsibility in your Company is aligned with
'Garware' tradition of creating wealth in the community with focus on
Art, Culture, Sports, health, education and safety. The Company is
running the Garware Community Center at Aurangabad with various
activities at various locations. The Center is engaged in overall
development of the community members of all age group and creating the
hobby among them for art, culture, sports, education, social work,
music etc.
Subsidiaries Companies and their Financial Statements
Garware polyester international limited - UK and Global pet Films inc.-
USA, continue to be the subsidiaries of the Company. The Ministry of
Corporate Affairs, Government of India vide General Circular No: 2/2011
dated 8th February, 2011 has allowed general exemption to Companies
from complying with Section 212(8) of the Companies Act, 1956, provided
such companies publish audited consolidated financial statements in the
Annual report. Your Board has decided to avail the said general
exemption from applicability of provisions of Companies Act, 1956 and
accordingly, the Annual Accounts of the above Subsidiary Companies for
the financial year ended 31st March, 2012 are not being attached with
this Annual Report and the specified financial highlights of the said
Subsidiaries are disclosed in this Annual Report, as part of the
Consolidated Financial Statements. The Audited annual accounts and
related information of the subsidiaries will be made available, upon
request and also be open for inspection at the Registered Office, to any
shareholder with sufficient notice and on payment of prescribed fees as
per the provisions of the law.
Safety, Health & Environmental Protection
Being a Responsible Corporate Citizen, your Company has continued to
sustain various initiatives for the continual improvement in Safety,
Environment and Health (SEH) at the works and surroundings. Some of the
prominent activities include - internal Safety Audit of plants (as per
Indian Standard on Occupational Safety and Health Audit: iS-14489),
periodical SEH inspections and trainings, schemes on the efficient usage
of energy and the conservation of natural resources, activities for the
enhancement of employee participation in SEH and the support in
emergency management operations at public places. Your Company is a
recipient of various safety laurels from the Regulatory Authorities on
the State and National level as stated above during the year. Security
system has been upgraded, like awareness training, evacuation drills to
meet the new challenges.
Directors' Responsibility Statement pursuant to Section 217(2AA) of the
Companies Act, 1956 the Board of Directors of your Company confirm:
i) that in the preparation of the annual accounts, the applicable
accounting standards have been followed;
ii) that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for that year;
iii) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities;
iv) that the Directors have prepared the annual accounts on a going
concern basis.
Directors
Mrs. Monika Garware Modi, Mr. Dilip J. Thakkar, Mr. N. p.
Chapalgaonkar and Mr. Ramesh p. Makhija, retire by rotation and being
eligible, offer themselves for re-appointment.
The Board of Directors of your Company elevated Ms. Sonia Garware as
Joint Managing Director of the Company effective from 1st September,
2012.
The Board of Directors of your Company re-appointed Mr. M. S. Adsul as
Whole Time Director designated as Director Technical for further period
of five years effective from 1st August, 2012.
Audit Committee
Besides Mr. M. S. Adsul, the Audit Committee comprises of three
independent Directors viz. Mr. B. Moradian, Dr. M. C. Agarwal and Mr.
A. B. Bhalerao. Mr. B. Moradian, who is an independent non-executive
Director, acts as chairman of Audit Committee Meetings.
Corporate Governance
A Report on Management Discussion and Analysis, Corporate Governance as
well as Auditor's Certificate regarding compliance of Clause 49 of the
listing Agreement form part of this Report.
Auditors
The retiring auditors, M/s. Shah & Co., being eligible for
re-appointment and have indicated their willingness to act as auditors,
if appointed. However, the Company has received a special notice under
Section 190 of the Company's Act, 1956 proposing the name of M/s.
Chaturvedi & Shah, Chartered Accountants as Joint Auditors, subject to
member's approval at the ensuing Annual General Meeting. The retiring
Auditors, M/s. Shah & Co. and M/s. Chaturvedi & Shah have conveyed
their eligibility and willingness to act as joint auditors of the
Company, if appointed at the ensuing Annual General Meeting. Board
recommends that appointment of Joint Auditors shall be commensurate
with the nature and size of operation of the Company. Company has
received letter from them to the effect that their re-appointment, if
made, would be within the limits prescribed under Section 224(1B) of
the Companies Act, 1956 and they are not disqualified for appointment
within the meaning of Section 226 of the said Act. The observations
made in the Auditor's Report are self- explanatory and therefore, do
not call for any further comments.
Other Statutory Information
The information required under Section 217(2A) of the Companies Act,
1956 read with Companies (particulars of Employees) Rules, 1975 forms
part of this report. However, as per the provisions of Section
219(1)(b)(iv) of the Companies Act, 1956, the Report and Accounts are
being sent to all the Shareholders of the Company excluding the
aforesaid information. Any Shareholder interested in obtaining such
particulars may inspect the same at the Registered Office of the Company
or write to the Company Secretary at the Corporate Office of the
Company. information as per Section 217(1)(e) of the Companies Act,
1956, read with the Companies (Disclosure of particulars in the Report
of Board of Directors) Rules, 1988 and forming part of this Report is
annexed.
Industrial Relations
The relations between the Employees and the Management remained cordial
during the year under review. Your Directors wish to place on record
their appreciation of the contribution made by the Employees at all
levels.
Acknowledgements
Your Directors wish to place on record their appreciation of the
wholehearted co-operation received by the Company from the various
departments of the Central & State Governments, Company's Bankers and
Financial & investment institutions during the period under review.
For and on behalf of the Board of Directors
Mumbai S. B. GARWARE
29th June, 2012 Chairman & Managing Director
Mar 31, 2010
The Directors present the Fifty-Third Annual Report together with the
Audited Statement of Accounts of the Company for the year (six months
period) ended 31st March, 2010.
Financial Results (Rs. in Crores)
October 2009-
March 2010 October 2008-September 2009
(6 months) (12 months)
Operating Proft before
interest & Depreciation 57.85 108.04
Less: Interest & Financial
Charges 16.34 52.59
Depreciation 16.09 32.43 32.47 85.06
Proft for the period before
Tax 25.42 22.98
Less: Income Tax 0.00 12.30
Wealth Tax 0.05 0.05 0.05 12.35
Proft after Tax 25.37 10.63
Add: Balance brought forward
from previous year 75.79 67.87
Balance available for
Appropriation 101.16 78.50
Appropriation:
Transfer to General Reserve 1.30 0.00
Dividend on Redeemable Preference Shares
(*Rs. 27,230/-) 0.00 * 0.01
Proposed Dividend - Equity Shares 3.46 2.31
Tax on Dividend 0.58 0.39
Balance carried to Balance Sheet 95.82 75.79
101.16 78.50
Dividend
Your Directors recommend for consideration at the Annual General
Meeting, declaration of dividend for the year (six months period) ended
31st March, 2010 as under:
a) On 54,46,000 0.01% Cumulative Redeemable Preference Shares of
Rs.100/-each and
b) On 2,30,60,386 equity shares of Rs.10/- each @ 15% (i.e. Rs.1.50/-
per equity share).
The above will absorb Rs. 403.68 lakhs (including Tax).
Operations
Local sales increased by 5.43%, and exports have increased by 24.45%
(on annualized basis) due to improved demand of Plain Polyester Film in
domestic market with specifc improved demand in automobile sector and
improved global economic conditions. The Company had taken several cost
control measures to reduce operating costs, which are giving sustained
results. The Company has also reduced the fnancial cost and as a
combine results of all efforts, your Company has performed better and
the net proft has increased substantially in the current year.
Future outlook
Growth in retail sector, liberalization, growing middle class, rising
purchases of packaged foods and goods, growing demand for polyester
films in applications such as electrical cables, motor insulators,
lamination for automobiles and building glass windows is expected to
fuel growth of polyester films. In International market, it is expected
at 4-6% per annum. Local market growth is estimated at the rate of
10-14% per annum. The growth in domestic market is expected to be
higher due to boom in retail outlets. The market scenario is positive
and offers possibilities for increasing the sales in value added
products. Your Company has successfully created new markets and
additional business in specialty film in Europe, China, USA, Australia,
New- Zealand, Brazil, Mexico, Africa and Middle East. With an
aggressive marketing approach and offering of value added products the
Company could come out with excellent results.
Various new products such as Nano, Ceramic and IR films launched in the
market have revealed wide acceptance worldwide. The local market
continues to show robust growth due to car kits.
Research & Development
Companys R&D Center is accredited by the Department of Scientifc and
Industrial Research, Ministry of Science and Technology Government of
India, and is engaged in research on new applications as well as
development of new products, improvement of manufacturing processes and
debottlenecking activities. Your Companys thrust on R&D activities has
paid rich dividends.
Information Technology
Company believes that IT is a strategic tool for excellence in customer
service and sustainable business growth. With this end in view, the
Company has implemented SAP for better business integration by
replacing legacy standalone systems. To start with some of the modules
are being implemented which will be extended further in due course of
time.
The Company has implemented centralized email system with cluster
solution for effcient working.
Awards and Recognitions
During the period, your Company has been awarded highest recognition
for Top Exporter of Polyester Film for the year 2007- 08 and 2008-09 by
Plastic Export Promotion Council (Plexcouncil), sponsored by the
Ministry of Commerce and Industry, Government of India.
During the period, your Company has received the highest recognition of
National Energy Conservation award first prize from the Ministry of
Power, Government of India in appreciation of achievements in energy
conservation in Plastic sector for the year 2009.
Human Resource Development
The Companys HR policies and processes are aligned to effectively
drive its business and other emerging opportunities. This has been
achieved by continuously investing in learning and development
programs, creating appropriate work environment and maintaining a
structured recognition system. The Company helps employees to build new
skills and competencies and promote knowledge sharing and team
building.
Manufacturing and Quality Initiatives
With innovative approaches in manufacturing techniques and product
optimization, the productivity in the manufacturing segment has
signifcantly gone up. The quality culture of your Company ensures that
the products are benchmarked as best in class by the customers. Our
quest for excellence both in Manufacturing and Quality continues as
before. Your Company is regarded as best in class for quality and
reliability.
Corporate Social Responsibility
Corporate social responsibility in your Company is aligned with
ÃGarware tradition of creating wealth in the community with focus on
health, education and safety.
Subsidiaries
Pursuant to Section 212 of the Companies Act, 1956, the accounts of
Garware Polyester International Limited and Global Pet Films Inc.,
subsidiaries of the Company, are annexed.
Safety, Health & Environmental Protection
Being a Responsible Corporate Citizen, your Company has continued to
sustain various initiatives for the continual improvement in Safety,
Environment and Health (SEH) at the works and surroundings. Some of
the prominent activities include - Internal Safety Audit of plants (as
per Indian Standard on Occupational Safety and Health Audit: IS-14489),
periodical SEH inspections and trainings, schemes on the effcient usage
of energy and the conservation of natural resources, activities for the
enhancement of employee participation in SEH and the support in
emergency management operations at public places. Your Company has
brought various safety laurels from the Government authorities on the
state and national level in this period. Security system has been
upgraded, like awareness training, evacuation drills to meet the new
challenges.
Directors Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956 the Board of
Directors of your Company confrm:
i) that in the preparation of the annual accounts, the applicable
accounting standards have been followed;
ii) that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair view of
the state of affairs of the Company at the end of the financial year
and of the proft of the Company for that year;
iii) that the Directors have taken proper and suffcient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities;
iv) that the Directors have prepared the annual accounts on a going
concern basis.
Directors
Mr. Dilip Thakkar, Dr. M. C. Agarwal and Mr. M. S. Adsul, retire by
rotation and being eligible, offer themselves for re-appointment.
Audit Committee
Besides Mr. M. S. Adsul, the Audit Committee comprises of two
independent Directors viz. Mr. B. Moradian and Dr. M. C. Agarwal. Mr.
B. Moradian, who is an independent non-executive director, acts as
chairman of Audit Committee meetings.
Corporate Governance
A Report on Management Discussion and Analysis, Corporate Governance as
well as Auditors Certifcate regarding compliance of Clause 49 of the
listing agreement form part of this Report.
Change in Financial Year
Company has been following the financial year from 1st October to 30th
September. In order to be in line with accounting year under the Income
Tax Act, 1961, the Company has changed the financial year from (1st
October - 30th September) to (1st April - 31st March). Due to this
change, the reporting financial year of the Company comprises of six
months period from 1st October 2009 till 31st March 2010.
Auditors
The retiring joint auditors, M/s. Shah & Co., and M/s. Bhandari Dastur
Gupta & Associates are eligible for re-appointment and have indicated
their willingness to act as auditors, if appointed. The Company has
received letters from both the auditors to the effect that their
re-appointment, if made, would be within the prescribed limits under
Section 224(1B) of the Companies Act, 1956 and they are not disqualifed
for re-appointment within the meaning of Section 226 of the said Act.
The observations made in the Auditors Report are self-explanatory and
therefore, do not call for any further comments.
Other Statutory Information
The information required under Section 217(2A) of the Companies Act,
1956 read with Companies (Particulars of Employees) Rules, 1975 forms
part of this report. However, as per the provisions of Section
219(1)(b)(iv) of the Companies Act, 1956, the Report and Accounts are
being sent to all the Shareholders of the Company excluding the
aforesaid information. Any Shareholder interested in obtaining such
particulars may inspect the same at the Registered Offce of the Company
or write to the Company Secretary at the Corporate Offce of the
Company. Information as per Section 217(1)(e) of the Companies Act,
1956, read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 and forming part of this Report is
annexed.
Group
The names of the Promoters and entities comprising ÃGroupà as defined
under the Monopolies and Restrictive Trade Practices (ÃMRTPÃ) Act, 1969
are disclosed as under for the purpose of Regulation 3(1) (e)(i) of the
SEBI (Substantial Acquisition of Shares and Takeovers) Regulations,
1997.
Name
Shri S. B. Garware
Mrs. S. S. Garware
Mrs. Monika Garware Modi
Ms. Sarita Garware
Ms. Sonia Garware
Monika Holdings Pvt. Limited.
Sarita Garware Investments Consultants Pvt. Limited.
Soniya Holdings Pvt. Limited.
Garware Industries Limited
Garware Chemicals Limited
Shashvat Investments Consultancy & Properties Private Limited
Lucky Trading & Exports Limited
Great Design Properties Private Limited
Envision Properties Private Limited
Best Design Properties Private Limited
Via Investment Consultants Private Limited
Naigaon Chemicals Private Limited
Garware Polyester International Limited
Global Pet Films Inc. B. D. Garware Research Center Garware Charitable
Trust S. B. Garware Family Trust Sheela Garware Family Trust Monika
Garware Modi Beneft Trust Sarita Garware Beneft Trust Sonia Garware
Beneft Trust
Industrial Relations
The relations between the Employees and the Management remained cordial
during the period under review. Your Directors wish to place on record
their appreciation of the contribution made by the Employees at all
levels.
Acknowledgements
Your Directors wish to place on record their appreciation of the
wholehearted co-operation received by the Company from the various
departments of the Central & State Governments, Companys Bankers and
Financial & Investment Institutions during the period under review.
For and on behalf of the Board of Directors
S. B. GARWARE
Chairman & Managing Director
Mumbai
05th August, 2010