Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the Thirty Third Annual
Report together with the Statement of Accounts for the year ended on
March 31,2015
FINANCIAL RESULTS:
During the year under review, net sales turnover was Rs. 5226.08 lacs
as against Rs. 4850.36 lacs during the corresponding previous year.
Weakness in the domestic market experienced during the previous
financial year continued for the first 9 months of FY 14-15. However,
the last 3 months witnessed an improvement in the domestic commercial
vehicle market, a trend that is continuing for FY 15-16 as well. Export
sales were weaker compared to the previous financial year; both in
terms of absolute volume as well as realization from exports due to
depreciation in the Euro. Export earnings were Rs. 1265.89 lacs as
against Rs. 1862.24 lacs during the corresponding previous year. Loss
after tax was Rs157.21 lacs as against Profit of Rs. 84.47 lacs for the
previous year.
2014-2015 2013-2014
(Rs. in lakhs) (Rs. in lakhs)
Sales 5226.08 4850.36
PROFIT 119.99 342.99
Less:
Depreciation 244.56 84.74
Interest 89.08 100.67
PROFIT/(LOSS) BEFORE TAX (213.66) 157.58
Less: Provision for Taxation
Current Tax - 50.00
Deferred Tax (56.45) 23.11
PROFIT/(LOSS) AFTER TAX (157.21) 84.47
Surplus brought forward from Previous Year 372.99 355.77
PROFIT/(LOSS) AVAILABLE FOR APPROPRIATION 215.78 440.23
General Reserve - 15.00
Proposed Dividend - 44.95
Tax on Proposed Dividend - 7.29
Surplus Carried Forward 215.78 372.99
TRANSFER TO GENERAL RESERVES
In view of loss during the year, there was no transfer to General
Reserve.
DIVIDEND
In view of the loss during the financial year 2014-2015, your directors
do not recommend dividend on the equity shares of the Company for the
financial year 2014-2015.
OUTLOOK
Certifications:
The Company has taken various steps to maintain/improve the quality
systems which are in place for last several years.
The Surveillance Audit for ISO/TS 16949:2002 for Quality Management
System was successfully completed during April 2015.
The Surveillance Audit for ISO 14001-2004 for Environmental Management
System was successfully completed during June 2015.
Business:
Overseas Market: Considering the inputs received from overseas
customers, the company is expecting an increase in exports of 5% and
indirect exports of 10%.
Domestic Market:
OE - Based on the inputs received from the OE customers in India, we
are expecting an increase between 10to 15% during the
FinancialYear2015-16.
Industrial and Aftermarket: We are planning growth of a 5% minimum
through development of additional Industrial customers and adding
additional parts for the Aftermarket.
MATERIAL CHANGES AND COMMITMENTS AFTER THE END OF THE FINANCIAL YEAR:
There have been no material changes and commitments, if any, affecting
the financial position of the Company, which have occurred between the
end of the financial year and the date of the report.
NUMBER OF MEETINGS OF BOARD OF DIRECTORS
4 (Four) meetings of the Board of Directors of the Company were held
during the year.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Mr. S. C. Saran, Director of the Company, retires at the ensuing Annual
General Meeting and being eligible offers himself for re-appointment.
Pursuant to the provisions of Section 149 of the Act, which came into
effect from April 1, 2014, Mr. Shiamak Marshall, Mr. Jehangir H. C.
Jehangir were appointed as Independent Directors at the Annual General
Meeting of the Company held on August 7,2014.
Mr. A. R. Rajwade was reappointed as the Managing Director of the
Company from May 17,2014 for a period of two years which was approved
by the shareholders at the Annual General Meeting held on August 7,
2014. Pursuant to the provisions of Section 203 of the Act, which came
into effect from April 1,2014, the appointments of Managing Director as
key managerial personnel of the Company was formalised.
With a view to strengthen the Board and also to meet the regulatory
requirements, Ms. Devaki Saran, & Mr. Richard Koszarek were appointed
as Additional Directors of the Company with effect from August 14, 2014
and Mr. Sharad Jain was appointed as Additional Director of the Company
with effect from November 5, 2014. The Board has also appointed Ms.
Devaki Saran as an Executive Director and Chief Financial Officer of
the Company with effect from August 14,2014 for a period of three
years.
The resolutions seeking approval of the Members for the appointment of
Ms. Devaki Saran, Mr. Richard Koszarek and Mr. Sharad Jain have been
incorporated in the notice of the forthcoming annual general meeting of
the Company along with brief details about them. The Company has
received notices under Section 160 of the Act along with the requisite
deposit proposing their appointment.
The necessary resolution for seeking approval of shareholders for the
appointment of Mr. Richard Koszarek as an Independent director with
effect from August 14,2014 has been incorporated in the notice of the
forthcoming annual general meeting of the Company.
DECLARATION FROM INDEPENDENT DIRECTORS
Mr. Shiamak Marshall, Mr. Jehangir H. C. Jehangir and Mr. Richard
Koszarek, who are independent directors, have submitted a declaration
that each of them meets the criteria of independence as provided in sub
Section (6) of Section 149 of the Act and there has been no change in
the circumstances which may affect their status as independent director
during the year. In the opinion of the Board, the independent directors
possess appropriate balance of skills, experience and knowledge, as
required.
AUDIT COMMITTEE OF BOARD OF DIRECTORS
The Audit committee of the Board of directors of the Company consists
of the following members:
1. Mr. Shiamak Marshall
2. Mr. Jehangir H.C. Jehangir
3. Mr. S. C. Saran
VIGIL MECHANISM
The Company has formulated and published a Whistle Blower Policy to
provide a mechanism ("Vigil Mechanism") for employees including
directors of the Company to report genuine concerns. The provisions of
this policy are in line with the provisions of the Section 177 (9) of
the Act.
POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND CRITERIA FOR
INDEPENDENT DIRECTORS
The Remuneration Policy for directors and-senior management and the
Criteria for selection of candidates for appointment as directors,
independent directors, senior management as adopted by the Board of
Directors are placed on the website of the Company and are annexed as
Annexure I & II to this report.
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:
(I) in the preparation of the annual accounts, the applicable
accounting standards have been followed and there are no material
departures;
(ii) they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit/loss of
the Company for that period;
(iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
(iv) they have prepared the annual accounts on a going concern basis;
(v) they have laid down internal financial controls to be followed by
the Company and such internal financial controls are adequate and
operating effectively;
(vi) they have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate
and operating effectively.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS
Based on the framework of internal financial controls and compliance
systems established and maintained by the Company, work performed by
the internal, statutory and secretarial auditors and external
consultants and the reviews performed by management and the relevant
board committees, including the audit committee, the board is of the
opinion that the Company's internal financial controls were adequate
and effective during the financial year 2014-15.
The internal auditor also regularly reviews the adequacy of internal
financial control system.
DETAILS OF SUBSIDIARIES/ JOINT VENTURES/ ASSOCIATES
The Company does not have any subsidiary/ joint ventures/ associates.
EXTRACT OF ANNUAL RETURN
As provided under sub Section (3) of Section 92 of the Act, the extract
of annual return is enclosed, which forms part of the directors' report
as Annexure III.
AUDITORS
M/s. J. L. Bhatt & Company, Chartered Accountants, the Auditors of the
company who would retire at the ensuing Annual General Meeting offer
themselves for reappointment. M/s. J. L. Bhatt & Company, Chartered
Accountants, the existing auditors have furnished a certificate,
confirming that if reappointed for the financial year 2015-2016 their
reappointment will be in accordance with Section 139 read with section
141 of the Companies Act, 2013.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 and other applicable
provisions, if any, of the Companies Act, 2013, M/s. Parikh &
Associates, Practising Company Secretaries were appointed as the
Secretarial Auditor for auditing the secretarial records of the Company
for the financial year 2014-2015.
The Secretarial Auditors' Report is annexed as Annexure IV.
AUDITORS REPORT AND SECRETARIAL AUDITORS' REPORT
The auditor's' report does not contain any qualifications, reservations
or adverse remarks.
As regards, secretarial auditors' observation, the company, is in the
process of identifying and appointing a competent and experienced
company secretary. Meanwhile, the company has engaged the professional
services of practicing company secretaries and has taken care to comply
with applicable provisions of the Companies Act, 2013.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORBTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information in accordance with Clause (m) of Sub-section (3) of Section
134 of the Act read with Companies (Accounts) Rules, 2014 is annexed to
this report as Annexure V.
PARTICULARS OF EMPLOYEES
The information required under Section 197 of the Act read with rule
5(1) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 are annexed as Annexure VI.
DEPOSITS FROM PUBLIC
The Company has not accepted any deposits from public,
SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORY/ JUDICIAL
AUTHORITY
There are no significant or material orders passed by any regulator or
court that would impact the going concern status of the Company and its
future operations.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The Company has not given any loans or guarantees or made investments
in contravention of the provisions of the Section 186 of the Companies
Act, 2013. The details of the loans and guarantees given and
investments made by the Company are provided as under
Loans: Rs. NIL
Investments: Rs. NIL
Guarantees/securities.Rs. NIL
RISK MANAGEMENT POLICY
The Board of Directors of the Company has framed a risk management
policy and 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.
RELATED PARTY TRANSACTIONS
Particulars of transactions with related parties pursuant to Section
134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts)
Rules, 2,014 are given in Form AOC-2 and the same forms part of this
report as Annexure VII.
EVALUATION OF BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS
An annual evaluation of the Board own performance, Board committees and
individual directors was carried out pursuant to the provisions of the
Act in the following manner:
Sr. Performance Performance evaluation
No. evaluation of performed by
1. Each Individual Nomination and
directors Remuneration
Committee
2. Independent Entire Board of
directors; Directors excluding
the director who is being
evaluated
3. Board, its committees All directors
and individual directors
Sr. Criteria
No.
1. Attendance, Contribution
to the Board and committee
meetings like preparedness
on the issues to be
discussed, meaningful and
constructive contribution
and guidance provided,
key performance aspects
in case of executive
directors etc.
2. Attendance, Contribution to the
Board and committee meetings
like preparedness on the issues to
be discussed, meaningful and
constructive contribution,
and guidance provided etc.
3. Board composition and structure;
effectiveness of Board processes,
information and functioning,
performance of specific duties
and obligations, timely flow
of information etc.
The assessment of committees
based on the terms of reference
of the committees
DISCLOSURE UNDER THE SEXUAL HARRASMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has in place an Anti-Sexual Harassment Policy in line with
the requirements of The Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013. All employees
(permanent, contractual, temporary, trainees) are covered under this
policy.
CORPORATE GOVERNANCE REPORT
As per SEBI circular no .CIR/CFD/POLICY CELL/7/2014 dated September 15,
2014 the revised clause 49 is not mandatory to the Company.
ACKNOWLEDGEMENT
The directors thank the Company's employees, customers, vendors,
investors and academic institutions for their continuous support.
The directors also thank the government of various countries,
government of India, the governments of various states in India and
concerned government departments/agencies for their co-operation.
The directors appreciate and value the contributions made by every
member of the Hindustan Hardy Spicer family.
For and on behalf of the Board
Date : July,20, 2015 S. C.SARAN
Place : Mumbai CHAIRMAN
Mar 31, 2014
THE MEMBERS
The Directors have pleasure in presenting the Thirty Second Annual
Report together with the Statement of Accounts for the year ended on
March 31, 2014
FINANCIAL RESULTS:
During the year under review, net sales turnover was Rs.4850.36 lacs as
against Rs. 5516.03 lacs during the corresponding previous year. The
reasons for this dip are the extremely recessionary trends in the
automobile industry experienced during the year in review. However, the
increase in exports was the bright spot in the net sales turnover.
Export earnings were Rs. 1862.24 lacs as against Rs. 1614.74 lacs
during the corresponding previous year. Profit after tax was Rs. 84.47
lacs as against Rs. 87.85 lacs for the previous year.
2013-2014 2012-2013
(Rs. in lakhs) (Rs. in lakhs)
Sales 4850.36 5516.03
PROFIT 342.99 307.95
Less: Depreciation 84.74 74.25
Interest 100.67 99.45
PROFIT BEFORE TAX 157.58 134.25
Less: Provision for Taxation
Current Tax 50.00 33.00
Deferred Tax 23.11 13.40
PROFIT AFTER TAX 84.47 87.85
Surplus brought forward from
Previous Year 355.77 340.16
PROFIT AVAILABLE FOR APPROPRIATION 440.23 428.01
General Reserve 15.00 20.00
Proposed Dividend 44.95 44.95
Tax on Proposed Dividend 7.29 7.29
Surplus Carried Forward 372.99 355.77
DIVIDEND
The Board of Directors are pleased to recommend a dividend of 30% on
14,98,450 Equity Shares of Rs. 10/- each.
OUTLOOK
Certifications :
The Company has taken various steps to maintain/improve the quality
systems which are in place for last several years.
The Surveillance Audit for ISO/TS 16949:2002 for Quality Management
System was successfully completed during April 2014.
The Surveillance Audit for ISO 14001-2004 for Environmental Management
System is scheduled in June 2014 and we are confident of its success.
Business :
Overseas Market : Considering the inputs received from overseas
customers, the company is expecting an increase in exports/indirect
exports for the Financial Year 2014-15 of 15%.
Domestic Market :
OE : Based on the inputs received from the OE customers in India, we
are expecting an increase between 5 to 10% during the Financial Year
2014-15.
Industrial and Aftermarket: We are planning growth of a 5% minimum
through development of additional Industrial customers and adding
additional parts for the Aftermarket.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
a) CONSERVATION OF ENERGY
Various measures for conservation of energy at all levels have been
taken by the Company.
b) TECHNOLOGY
Our technology had been imported from our Collaborators, Spicer
Gelenkwellenbau GmbH, Germany in 1984. Since then upgradation has
continued in consultation with various Agencies.
c) FOREIGN EXCHANGE EARNING AND OUTGO
Activities relating to exports, initiatives taken to increase exports
and development of new export markets for products and services:
Presently, the company is supplying to various CNH plants in Europe and
UK. The Company has approached the North America CNH locations and is
discussing with them regarding possible exports of similar products to
those locations which we are supplying to CNH Europe plants. The
Company is also in talks with many other prospective clients for the
development of various Propeller Shafts required by them
With the above initiatives, we are expecting growth in export by 10 to
15% during the year 2014-15.
FIXED DEPOSITS
The Company has not accepted any fixed deposits during the year.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
confirm that:
i) in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii) they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the
Company for that period;
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting of fraud and other irregularities;
iv) they have prepared the annual accounts on a going concern basis.
DIRECTORS
Mr. S. C. Saran, Director of the Company, retires at the ensuing Annual
General Meeting and being eligible offers himself for re-appointment.
As per Section 149(4) of the Companies Act, 2013 (''Act''), which came in
to effect from April 1, 2014, every listed public company is required
to have at least one-third of the total number of directors as
Independent Directors who shall hold office for a term upto five
consecutive years on the Board of a company and is not liable to retire
by rotation.
In accordance with the provisions of Section 149 of the Act, read with
Schedule IV of the Act, the appointment of Mr. Shiamak Marshall and Mr.
Jehangir H. C. Jehangir as Independent Directors of the Company is
being placed before the Members at the ensuing annual general meeting
for their approval. In the opinion of the Board, they fulfill the
conditions specified in the Act and the Rules made thereunder for
appointment as Independent directors and are independent of the
management. Members are requested to refer to the Notice of the Annual
General Meeting and the Explanatory Statement for details of the
qualifications and experience of the Directors and the period of their
appointment.
The Board commends the passing of resolutions at item nos. 6 & 7 of the
Annual General Meeting Notice.
COMPLIANCE CERTIFICATE
A Compliance Certificate from a secretary in Whole-time Practice under
section 383A of the Companies Act, 1956 in respect of the financial
year ended on March 31, 2014 is attached hereto.
LISTING
The Equity Shares of the Company are listed at the BSE Limited. The
company has paid the Annual Listing Fees to them for the year
2014-2015.
PARTICULARS OF EMPLOYEES
The Company does not have any employee whose particulars are required
to be given pursuant to the provisions of Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975.
AUDITORS
Statutory Auditors :
M/s. J. L. Bhatt & Company, Chartered Accountants, the Auditors of the
company who would retire at the ensuing Annual General Meeting offer
themselves for reappointment. M/s. J. L. Bhatt & Company, Chartered
Accountants, the existing auditors have furnished a certificate,
confirming that if reappointed for the financial year 2014-2015 their
reappointment will be in accordance with Section 139 read with section
141 of the Companies Act, 2013.
You are requested to appoint Auditors and to fix their remuneration.
Cost Auditors :
M/s. CY & Associates, Cost Accountants have been appointed to conduct
Cost Audits relating to the Cost accounting records of the Company for
the year ending 31st March 2015. Pursuant to the provisions of Section
148 of the Companeis Act, 2013 and Rules made there under, Members are
requested to consider the ratification of the remuneration payable to
M/s CY & Associates.
INDUSTRIAL RELATIONS
The overall industrial relations in the Company have been cordial. Your
Directors once again wish to place on record their appreciation for the
contribution made by the employees at all levels to the continued
growth and prosperity of the Company.
ACKNOWLEDGEMENT
Your directors wish to place on record, their appreciation for the
continued support of the Customers, Financial Institutions, Bankers and
Suppliers.
For and on behalf of the Board of Directors
Date : May 19, 2014 S. C. SARAN
Place: Mumbai CHAIRMAN
Mar 31, 2013
THE MEMBERS
The Directors have pleasure in presenting the Thirty First Annual
Report together with the Statement of Accounts for the year ended on
March 31,2013
FINANCIAL RESULTS:
During the year under review, net sales turnover was Rs.5516.03 lacs as
against Rs. 5348.97 lacs during the corresponding previous year. Export
earnings were Rs. 1614.74 lacs as against Rs. 1577.87 lacs during the
corresponding previous year. Profit after tax was Rs. 87.85 lacs as
against Rs. 147.33 lacs for the previous year.
2012-2013 2011-2012
(Rs. in lakhs) (Rs. in lakhs)
Sales 5516.03 5348.97
PROFIT 307.95 376.19
Less:
Depreciation 74.25 69.16
Interest 99.45 93.88
134.25 213.15
PROFIT BEFORE TAX 134.25 213.15
Less: Provision for Taxation
Current Tax 33.00 70.00
Deferred Tax 13.40 (4.18)
PROFIT AFTER TAX 87.85 147.33
Surplus brought forward
from Previous Year 340.16 300.19
PROFIT AVAILABLE FOR APPROPRIATION 428.01 447.52
General Reserve 20.00 20.00
Proposed Dividend 44.95 74.92
Tax on Proposed Dividend 7.29 12.44
Surplus Carried Forward 355.77 340.16
DIVIDEND
The Board of Directors are pleased to recommend a dividend of 30% on
14,98,450 Equity Shares of Rs. 10/-each.
OUTLOOK
Certifications:
The Company has taken various steps to maintain/improve the quality
systems which are in place for last several years.
Recertification Audit for ISO/TS 16949:2002 for Quality Management
System was successfully completed during April 2013.
Recertification Audit for ISO 14001-2004 for Environmental Management
System is scheduled in July 2013 and we are confident of its success.
Business:
Overseas Market : Considering inputs received from the overseas
customers, the Company is expecting an increase in export/indirect
export for the Financial Year 2013-14 by 8%.
Domestic Market:
OE : Based on inputs received from the OE customers, we are expecting
increase between 5 to 10% during the Financial Year 2013-14.
Industrial and Aftermarket: We are planning growth of 5% minimum
through development of additional Industrial customers and adding
additional parts for the Aftermarket.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
a) CONSERVATION OF ENERGY
Various measures for conservation of energy at all levels have been
taken by the Company.
b) TECHNOLOGY
Our technology had been imported from our Collaborators, Spicer
Gelenkwellenbau GmbH, Germany in 1984. Since then upgradation has
continued in consultation with various Agencies.
c) FOREIGN EXCHANGE EARNING AND OUTGO
The Foreign Exchange earnings
and outgo are as under (Rs. in lacs)
1. Foreign Exchange Earnings 1614.74
2. Foreign Exchange Outgo on account of import 16.89
3. Foreign Exchange Outgo on account of travel 15.46
Total Foreign Exchange outgo 32.35
Net Foreign Exchange earnings 1582.39
FIXED DEPOSITS
The Company has not accepted any fixed deposits during the year.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
confirm that:
i) in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii) they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the
Company for that period;
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting of fraud and other irregularities;
iv) they have prepared the annual accounts on a going concern basis.
DIRECTORS
Your directors express their profound grief on the sad demise of Mr. K.
H. Captain on January 26, 2013. Your directors place on record their
appreciation of the valuable service and guidance given by him during
the tenure of his directorship with the Company.
Mr. S. C. Saran, Director of the Company, retires at the ensuing Annual
General Meeting and being eligible offers himself for re-appointment.
COMPLIANCE CERTIFICATE
A Compliance Certificate from a secretary in Whole-time Practice under
section 383A of the Companies Act, 1956 in respect of the financial
year ended on March 31,2013 is attached hereto.
LISTING
The Equity Shares of the Company are listed at the BSE Limited. The
company has paid the Annual Listing Fees to them for the year
2013-2014.
PARTICULARS OF EMPLOYEES
The Company does not have any employee whose particulars are required
to be given pursuant to the provisions of Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975.
AUDITORS
Statutory Auditors :
M/s. J. L. Bhatt & Company, Chartered Accountants, the Auditors of the
company who would retire at the ensuing Annual General Meeting
offerthemselves for reappointment.
You are requested to appoint Auditors and to fix their remuneration.
Cost Auditors:
Pursuant to the directives of the Central Government under the
provisions of Section 233B of the Companies Act, 1956 the Board has
appointed M/s. CY & Associates, Cost Accountants as the Cost Auditors
of the Company for Audit of Cost Accounting records of the Company for
the year ended March 31,2013. They will continue to be Cost Auditors of
the Company for the financial year 2013-14
INDUSTRIAL RELATIONS
A wage agreement has been settled with the Union in October 2012 which
will be in force till 31st March 2016.
The overall industrial relations in the Company have been cordial. Your
Directors once again wish to place on record their appreciation for the
contribution made by the employees at all levels to the continued
growth and prosperity of the Company.
ACKNOWLEDGEMENT
Your directors wish to place on record, their appreciation for the
continued support of the Customers, Financial Institutions, Bankers and
Suppliers.
For and on behalf of the Board of Directors
S C SARAN
Date: May 06, 2013 CHAIRMAN
Mar 31, 2012
The Directors have pleasure in presenting the Thirtieth Annual Report
together with the Statement of Accounts for the year ended on March 31,
2012
FINANCIAL RESULTS
During the year under review, net sales turnover was Rs. 5348.97 lacs
as against Rs.4654.16 lacs during the corresponding previous year.
Export earnings were Rs.1577.87 lacs as against Rs.1223.75 lacs during
the corresponding previous year. Profit after tax was Rs. 147.33 lacs
as against Rs.54.54 lacs for the previous year.
2011-2012 2010-201
(Rs. in lakhs) (Rs. in lakhs)
SALES 5348.97 4654.16
PROFIT 3 376.19 207.25
Less:
Depreciation 69.16 68.60
Interest 93.88 63.09
213.15 75.56
PROFIT BEFORE TAX 213.15 75.56
Less: Provision for Taxation
Current Tax 70.00 24.00
Deferred Tax (4.18) (2.98)
PROFIT AFTER TAX 147.33 54.54
Surplus brought forward from
Previous Year 300.19 304.08
PROFIT AVAILABLE FOR APPROPRIATION 447.52 358.61
General Reserve 20.00 6.00
Proposed Dividend 74.92 44.95
Tax on Proposed Dividend 12.44 7.47
Surplus Carried Forward 340.16 300.19
DIVIDEND
The Board of Directors are pleased to recommend a dividend of 50% on
14,98,450 Equity Shares of Rs. 10/- each.
OUTLOOK Certifications :
The Company has taken various steps to further improve the quality
systems which are in place for the last several years.
Second Surveillance audit for ISO/TS 16949:2009 for Quality Management
System and ISO 14001- 2004 for Environmental Management System have
been completed successfully in June and July 2012 respectively.
Business :
Overseas Market : In spite of the international economic slowdown, the
Company is expecting an increase in the export for the financial year
2012-13 by 8 to 10%. This is due to the development of additional
customers from whom regular orders are expected during the second half
of the financial year 2012-13.
Domestic Market : Based on the forecast given by our existing domestic
customers, we expect a growth between 5 to 8% in the domestic market
during the year 2012-13.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
a) CONSERVATION OF ENERGY
Various measures for conservation of energy at all levels have been
taken by the Company.
b) TECHNOLOGY
Our technology had been imported from our collaborators, Spicer
Gelenkwellenbau GmbH, Germany in 1984. Since then upgradation has
continued in consultation with various Agencies.
c) FOREIGN EXCHANGE EARNING AND OUTGO
The Foreign Exchange earnings and outgo are as under (Rs. in lacs)
1. Foreign Exchange Earnings 1577.87
2. Foreign Exchange Outgo on account of import 17.31
3. Foreign Exchange Outgo on account of travel 5.08
4. Foreign Exchange Outgo on others 4.89
Total Foreign Exchange outgo 27.28
Net Foreign Exchange earnings 1550.59
FIXED DEPOSITS
The Company has not accepted any fixed deposits during the year.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
confirm that:
i) in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures;
ii) they had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the
Company for that period;
iii) they had taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting of fraud and other irregularities;
iv) they had prepared the annual accounts on a going concern basis.
DIRECTORS
Mr. Shiamak Marshall, Director of the Company, retires at the ensuing
Annual General Meeting and being eligible offers himself for
re-appointment.
Mr. A.R. Rajwade was reappointed as the Managing Director of the
Company for a further period of two years with effect from May 17,
2012. The said re-appointment is subject to the confirmation of the
members of the Company. Your directors recommend the re-appointment of
Mr. A.R. Rajwade as the Managing Director of the Company.
Information required in terms of Clause IV of Part 1 (B) of Section II
of Part II of Schedule XIII pertaining to the remuneration package,
service contract, notice period etc. has been provided in the
Explanatory Statement to the Notice convening this Annual General
Meeting.
COMPLIANCE CERTIFICATE
A Compliance Certificate from a secretary in Whole-time Practice under
section 383A of the Companies Act, 1956 in respect of the financial
year ended on March 31, 2012 is attached hereto.
LISTING
The Equity Shares of the Company are listed at the BSE Limited. The
company has paid the Annual Listing Fees to them for the year
2012-2013.
PARTICULARS OF EMPLOYEES
The Company does not have any employee whose particulars are required
to be given pursuant to the provisions of Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975.
AUDITORS
M/s. J. L. Bhatt & Company, Chartered Accountants, the Auditors of the
company who would retire at the ensuing Annual General Meeting offer
themselves for reappointment.
You are requested to appoint Auditors and to fix their remuneration.
INDUSTRIAL RELATIONS
The overall industrial relations in the Company have been cordial. Your
Directors once again wish to place on record their appreciation for the
contribution made by the employees at all levels to the continued
growth and prosperity of the Company.
ACKNOWLEDGEMENT
Your directors wish to place on record, their appreciation for the
continued support of the Customers, Financial Institutions, Bankers and
Suppliers. Your Directors also wish to record their appreciation for
the valuable contribution made by the employees at all levels.
For and on behalf of the Board of Directors
S. C. SARAN
Date : April 16, 2012 CHAIRMAN
Mar 31, 2011
The Directors have pleasure in presenting the Twenty Ninth Annual
Report together with the Statement of Accounts for the year ended on
March 31, 2011
FINANCIAL RESULTS:
During the year under review, net sales turnover was Rs.4653.25 lacs as
against Rs. 3337.82 lacs during the corresponding previous year. Export
earnings were Rs. 1223.75 lacs as against Rs. 718.25 lacs during the
corresponding previous year. Profit after tax was Rs. 54.54 lacs as
against Rs. 20.38 lacs for the previous year.
2010-11 2009-10
(Rs. in lakhs) (Rs. in lakhs)
SALES 4653.25 3337.82
PROFIT 207.25 144.45
Less:
Depreciation 68.60 73.47
Interest 63.09 52.59
75.56 18.39
Add: Prior Period Adjustment (Net) - 11.29
PROFIT BEFORE TAX 75.56 29.68
Less: Provision for Taxation
Current Tax 24.00 12.00
Deferred Tax (2.98) (2.70)
PROFIT AFTER TAX 54.54 20.38
Surplus brought forward from Previous
Year 304.08 302.25
PROFIT AVAILABLE FOR APPROPRIATION 358.61 322.63
General Reserve 6.00 1.00
Proposed Dividend 44.95 15.00
Tax on Proposed Dividend 7.47 2.55
Surplus Carried Forward 300.19 304.08
DIVIDEND
The Board of Directors are pleased to recommend a dividend of 30% on
14,98,450 Equity Shares of Rs. 10/-each.
OUTLOOK
Certifications:
The Company has taken various steps to maintain/improve the Quality
Management Systems as per ISO/TS16949:2002 and Environmental Management
Systems as per IS014001 -2004 which are in place for last several
years.
The Surveillance Audit for ISO/TS 16949:2002 has been successfully
completed on 13th May 2011.
Surveillance Audit for ISO 14001-2004 is scheduled in first week of
July 2011.
Business:
Overseas Market : Because of improvement in the international market,
we could export the goods worth Rs. 1223.75 lacs during^the financial
year 2010-11. As against 35% growth expected as reported last year, we
could achieve growth.of 70%.
Domestic Market : The domestic market was continuously growing and as
against 25% expected growth, we could achieve growth of 40%.
We are planning for 20% growth in the export as well as domestic sales
for the financial year 2011 -12. This growth is expected through
business from the new customers developed by us /underdevelopment.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
a) CONSERVATION OF ENERGY
Various measures for conservation of energy at all levels have been
taken by the Company.
Through various developments, we have been able to reduce the energy
cost from 3.5% to 3.00% of sales, in spite of increase in the energy
rates.
b) TECHNOLOGY
Our technology had been imported from our Collaborators, Spicer
Gelenkwellenbau GmbH, Germany in 1984. Since then upgradation has
continued in consultation with various Agencies. So as to improve the
technology further, we have added various machines and established a
full-fledged R&D cell.
FIXED DEPOSITS
The Company has not accepted any fixed deposits during the year.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
confirm that:
i) in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures;
ii) they had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the
Company for that period;
iii) they had taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting of fraud and other irregularities;
iv) they had prepared the annual accounts on a going concern basis
DIRECTORS
Mr. Jehangir H. C. Jehangir and Mr. K. H. Captain, Directors of the
Company, retire at the ensuing Annual General Meeting and being
eligible offers themselves for re-appointment.
During the year Mr. Eric Paul Haag resigned as director of the company
with effect from January 14, 2011. Your directors place on record its
appreciation of the valuable service and guidance given by him during
the tenure of his directorship with the Company.
COMPLIANCE CERTIFICATE
A Compliance Certificate from a secretary in Whole-time Practice under
section 383A of the Companies Act, 1956 in respect of the financial
year ended on March 31, 2011 is attached hereto.
LISTING
The Equity Shares of the Company are listed at the Bombay Stock
Exchange Limited. The company has paid the Annual Listing Fees to them
for the year 2011-2012.
PARTICULARS OF EMPLOYEES
The Company does not have any employee whose particulars are required
to be given pursuant to the provisions of Section 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975.
AUDITORS
M/s. J. L. Bhatt & Company, Chartered Accountants, the Auditors of the
company who would retire at the ensuing Annual General Meeting offer
themselves for reappointment.
You are requested to appoint Auditors and to fix their remuneration.
INDUSTRIAL RELATIONS
The overall industrial relations in the Company have been cordial. Your
Directors once again wish to place on record their appreciation for the
contribution made by the employees at all levels to the continued
growth and prosperity of the Company.
ACKNOWLEDGEMENT
Your directors wish to place on record, their appreciation for the
continued support of the Customers, Financial Institutions, Bankers and
Suppliers. Your Directors also wish to record their appreciation for
the valuable contribution made by the employees at all levels and the
unstinting support of the collaborators.
For and on behalf of the Board of Directors
S. C. SARAN
CHAIRMAN
Place Mumbai
Date : May 23, 2011
Mar 31, 2010
The Directors have pleasure in presenting the Twenty Eighth Annual
Report together with the Statement of Accounts for the year ended on
March 31,2010
FINANCIAL RESULTS:
During the year under review, net sales turnover was Rs.3337.82 lacs as
against Rs.2978.61 lacs during the corresponding previous year. Export
earnings were Rs.718.25 lacs as against Rs.1373.20 lacs during the
corresponding previous year. Profit after tax was Rs. 20.38 lacs as
against Rs. 18.40 lacs for the previous year.
2009-10 2008-09
(Rs. in lacs) (Rs. in lacs)
SALES 3337.82 2978.61
PROFIT 144.45 142.59
Less:
Depreciation 73.47 68.83
Interest 52.59 63.33
18.39 10.43
Add: Prior Period Adjustment (Net) 11.29 21.81
PROFIT BEFORE TAX 29.68 32.24
Less: Provision for Taxation
Current Tax 12.00 2.26
Fringe Benefit Tax 0.00 3.71
Deferred Tax (2.70) 7,87
PROFIT AFTER TAX 20.38 18.40
Surplus brought forward from
Previous Year 302.25 301.90
PROFIT AVAILABLE FOR APPROPRIATION 322,63 320.30
General Reserve 1,00 0.50
Proposed Dividend 15.00 15.00
Tax on Proposed Dividend 2.55 2.55
Surplus Carried Forward 304.08 302.25
DIVIDEND
The Board of Directors are pleased to recommend a dividend of 10% on
14,98,450 Equity Shares of Rs. 10/-each.
OUTLOOK
Certifications:
The Company has taken various steps to maintain/improve the quality
systems which are in place for last several years. Surveillance audit
for ISO/TS16949:2002 for Quality Management System and IS014001-2004
for Environmental Management System successfully completed in June 2009
and August 2009 respectively.
Re-certification Audit for ISO/TS 16949:2002 is due in May 2010.
Re-certification Audit for ISO 14001-2004 also is due in June 2010. We
are reasonably confident to comply with the requirements.
The Company has received Certificate of Recognition for Export House
from the Joint Director General of Foreign Trade, Government of India,
Ministry of Commerce &. Industry for a period of five years effective
from 1 st April 2009 to 31 st March 2014.
Business:
Overseas Market : Due to the international economicslow down, during
2009-10, we could export goods worth Rs. 718.25 Lacs. For the financial
year 2010-11, we are expecting a growth of about 35%. We expect to
achieve this through development of Double Cardan Shafts and new export
customers.
Domestic Market: In view of the present situation which is slightly
better as compared to the two quarters of the previous financial year,
we expect to maintain a 25% growth in the domestic market during the
year 2010-11..
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
a) CONSERVATION OF ENERGY
Various measures for conservation of energy at ail levels have been
taken by the Company.
We are studying the possibility of use of Solar/Wind energy for certain
applications, such as, Office Lighting, Street Lighting etc.
b) TECHNOLOGY
Our technology had been imported from our Collaborators, Spicer
Galenkwellenbau GmbH, Germany in 1984. Since then upgradation has
continued in
FIXED DEPOSITS
The Company has not accepted any fixed deposits during the year.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
confirm that:
i) in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii) they had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the
Company for that period;
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting of fraud and other irregularities;
iv) they had prepared the annual accounts on a going concern basis.
DIRECTORS
Mr. S. C. Saran and Mr. Shiamak Marshall, Directors of the Company,
retire at the ensuing Annual General Meeting and being eligible offers
themselves for re-appointment.
Mr. Phillip Rotman 11 resigned as director of the company with effect
from 31 st May, 2009.
Mr. Eric Paul Haag was appointed as additional director of the company
by the Board of Directors on July 30,2009. By virtue of Section 260 of
the Companies Act, 1956, he holds office upto the date of the ensuing
Annual General Meeting and is eligible for appointment.
FORFEITURE OF SHARES
During the year, the Company forfeited 1,550 Equity Shares of Rs. 10/-
each.
AUDITORS OBSERVATIONS
The observations made by auditors in the AuditorsReport are self
explanatory.
COMPLIANCE CERTIFICATE
A Compliance Certificate from a secretary in Whole-time Practice under
section 383A of the Companies Act, 1956 in respect of the financial
year ended on March 31,2010 is attached hereto.
LISTING
The Equity Shares of the Company are listed at the Bombay Stock
Exchange Limited. The company has paid the Annual Listing Fees to them
for the year 2010-2011.
PARTICULARS OF EMPLOYEES
Information as per Section 217(2A) of the Companies Act 1956 read with
Companies (Particulars of Employees) Rule, 1975 and Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules
1988, as amended from time to time and forming part of this Report is
annexed.
AUDITORS
M/s. J. L. Bhatt & Company, Chartered Accountants, the Auditors of the
company who would retire at the ensuing Annual General Meeting offer
themselves for reappointment.
You are requested to appoint Auditors and to fix their remuneration.
INDUSTRIAL RELATIONS
The overall industrial relations in the Company have been cordial. Your
Directors once again wish to place on record their appreciation for the
contribution made by the employees at all levels to the continued
growth and prosperity of the Company.
ACKNOWLEDGEMENT
Your directors wish to place on record, their appreciation for the
continued support of the Customers, Financial Institutions, Bankers and
Suppliers. Your Directors also wish to record their appreciation for
the valuable contribution made by the employees at all levels and the
unstinting support of the collaborators.
For and on behalf of the Board of Directors
Place Mumbai S.C.SARAN
Date : April 23,2010 CHAIRMAN
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