Mar 31, 2018
Dear Shareholders,
The Directors have great pleasure in presenting the 60th Annual Report together with the Audited Annual Accounts of the Company for the financial year ending 31st March 2018.
FINANCIAL RESULTS
The performance of the Company for the financial year ended 31st March, 2018 is summarized below:
(Rupees in Lacs)
2017-2018 |
2016-2017 |
|
Profit before Interest, Depreciation, & Tax |
3321.60 |
2725.51 |
Less: |
||
Financial Costs |
972.95 |
896.47 |
Depreciation and Amortization expense |
793.08 |
796.32 |
Provision for Tax |
603.48 |
323.78 |
Deferred Tax |
(12.10) |
6.00 |
Profit for the year |
964.19 |
702.94 |
Other Comprehensive Income (Net of tax) |
28.86 |
9.56 |
Total Comprehensive Income for the year |
993.05 |
712.50 |
NATURE OF BUSINESS
Hindustan Tin Works Ltd. is one of the leading manufacturer and exporter of high performance cans, printed sheets, and related components to consumer marketing companies in India and abroad. It is one of the leading and established Company in Metal Packaging Industry.
We are keenly conscious of the emerging opportunities in the can-manufacturing sector in India as well as abroad. During the year under review, there was no change in nature of the business of the Company.
DIVIDEND
Your Directors are pleased to recommend a dividend @ Rs. 1.00 per Equity Share (10%) on the paid up capital of the Company for the year 2017-18, which if approved at the forthcoming AGM, will be paid to all those Equity Shareholders whose names appear (i) As Beneficial Owners as at the end of the business hours on 20th September, 2018 as per the list to be furnished by the depository in respect of the shares held in electronic form and, (ii) As member in the Register of Members of the Company after giving effect to all valid shares transfers in physical form lodged with the Company on or before 20th September, 2018.
TRANSFER TO RESERVES
It is not proposed to transfer any amount to reserves out of the profits earned during financial year 2017-18.
OPERATIONS
Your Company could achieve revenue from operations (net of excise duty) of Rs.31452.15 lakhs as against the previous year''s revenue from operations (net of excise duty) of Rs. 26735.39 lakhs i.e. Increase of Rs. 4716.76 lakhs (17.64%). The export sale of the Company has been increased from Rs. 5297.81 lakhs in previous year to Rs. 7380.97 lakhs in current year i.e. Increase of Rs. 2083.16 lakhs (39.32%).
Your Company has achieved total comprehensive income of Rs. 993.05 lakhs as against the previous year of Rs. 712.50 lakhs i.e. Increase of Rs. 280.55 lakhs (39.38 %).
DIRECTORS
In terms of the provisions of Section 152 of the Companies Act, 2013 and Articles of Association of the Company Mr. Ashok Kumar Bhatia retires at the ensuing Annual General Meeting and being eligible, has offered himself for re-appointment.
The Board of Directors of the Company has a healthy blend of executive and non executive Directors which ensures the desired level of independence in functioning and decision making.
All the non executive Directors are eminent professional and bring in wealth of expertise and experience for directing the management of the Company.
INDEPENDENT DIRECTORS
All the Independent Directors hold office for a fixed term of five years and are not liable to retire by rotation. Their term will expire on 31st March, 2019 and they already provided their consent for re-appointment for the next term of five years.
In accordance with Section 149(7) of the Companies Act, 2013, each Independent Director has given a written declaration to the Company that he/she meets the criteria of Independence as mentioned under Section 149(6) of the Companies Act, 2013 and SEBI Regulations.
Mr. B.L. Khurana, Independent Director/ Non Executive Director of the Company, has resigned from the Board with effect from 26th May, 2018.
Mr. M.K. Zutshi, Independent/ Non- Executive Director of the Company has been appointed as Member of the Audit Committee and also as Chairman of the Nomination and Remuneration Committee of the Company with effect from 30th May, 2018 in place of Mr. B.L. Khurana.
Mr. Ramesh Kumar Jain, Independent/ Non- Executive Director of the Company has been appointed as Chairman of the Stakeholders'' Relationship Committee and Corporate Social Responsibility Committee of the Company with effect from 30th May, 2018 in place of Mr. B.L. Khurana.
Key Managerial Personnel
The following persons have been designated as Key Managerial Personnel (KMP) of the Company pursuant to Section 2(51) and Section 203 of the Act, read with the Rules framed there under.
1. Mr. Vijay Kumar Bhatia, Chairman
2. Mr. Sanjay Bhatia, Managing Director
3. Mr. Ashok Kumar Bhatia, Whole-Time Director
4. Mr. PP Singh, Whole-Time Director
5. Mr. Rajat Pathak, Company Secretary
6. Mr. M.K. Mittal, Chief Financial Officer
None of the Key Managerial Personnel have resigned during the year under review.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134 (3) (c) of the Companies Act, 2013 with respect to directors'' responsibility statement, it is hereby confirmed that: -
(a) In the preparation of the Annual Accounts, the applicable accounting standards have been followed alongwith proper explanation relating to material departures, if any.
(b) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018 and of the profit of the Company for that period.
(c) We had 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) We had prepared the Annual Accounts on a going concern basis.
(e) We had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively. and
(f) We had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A report in the form of Management Discussion and Analysis as per Part B of Schedule V of Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations, 2015), as a part of this report is annexed hereto as Annexure - I.
RISK MANAGEMENT
The Company has in place a Risk Management Policy which was reviewed by the Audit Committee and approved by the Board of Directors of the Company. The Policy provides for a robust risk management framework to identify and assess risks such as operational, strategic, financial, security, property, regulatory, reputational and other risks and put in place an adequate risk management infrastructure capable of addressing these risks. The Audit Committee of the Company also evaluates Internal financial controls and risk management systems.
LOANS AND INVESTMENTS BY THE COMPANY
Details of loans and investments, if any, made by the Company are given in notes to the financial statements.
DEPOSITS
During the year under review, the company has not accepted any deposit under Section 76 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014.
CORPORATE GOVERNANCE
A report on Corporate Governance, along with a certificate from the Statutory Auditors of the Company detailing the compliance of Corporate Governance norms as enumerated in Part C of Schedule V of Regulation 34(3) of Listing Regulations, 2015 with the Stock Exchanges, is annexed as Annexure - II.
CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGERIAL PERSONNEL
The Company has laid down a code of conduct for the Board Members and Senior Managerial Personnel of the Company. All Board Members and Senior Managerial Personnel have affirmed compliance with the Code of Conduct for the year 2017-2018. A declaration signed by Mr. Sanjay Bhatia, Managing Director, as to the compliance of the Code of Conduct by the Board Members and Senior Managerial personnel has been placed before the Board at its meeting held on 14 August, 2018, is enclosed as Annexure-III.
VIGIL MECHANISM
The Company has in place a whistle blower policy, to support the Code of Business Ethics. This policy documents the Company''s commitment to maintain an open work environment in which employees, consultants and contractors are able to report instances of unethical or undesirable conduct, actual or suspected fraud or any violation of Company''s Code of Business Ethics at a significantly senior level without any fear of rejection. Individuals can raise their concerns by an e-mail, or telephone or direct interaction or by a letter to the Chairman of the Audit Committee of the Company. The Policy on vigil mechanism and whistler blower policy may be accessed on the Company''s website at the link: http://hindustantin.biz/Uploads/Invester/165Invr_new-1.pdf and it duly forms a part of corporate governance.
DISCLOSURES
The CEO and Chief Financial Officer (CFO) have furnished to the Board in its meeting held on 30th May, 2018 a certificate with regard to the financial statements and other matters of the Company as on 31st March 2018 as required under Part B of Schedule II of Regulation 17 (8) of Listing Regulations, 2015.
No material penalty or stricture was imposed on the Company by any statutory authority for non-compliance on matter related to capital markets, during the last three years.
The Company is complying with all the mandatory requirements of the Listing Regulations of Stock Exchanges on ''Corporate Governance''.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant and material orders passed by the Regulators/or Courts which would impact the going concern status of the Company and its future operations.
AUDITORS
Messrs Mukesh Raj & Co, Chartered Accountants, (Firm Registration No. 016693N), were appointed as Statutory Auditors of the Company at the 59th Annual General Meeting held on 27th September, 2017, for a period of five consecutive years from the conclusion of the 59th Annual General Meeting until the conclusion of the 64th Annual General Meeting, subject to ratification by Members of the Company at every Annual General Meeting to be held thereafter. However, in terms of the notified amended provisions of the Act regarding ratification of appointment of Statutory Auditors, your Company has placed an ordinary business item No. 4 in the Notice of the 60th Annual General Meeting for their ratification by the Members until the conclusion of the 64th Annual General Meeting without requiring yearly ratification thereof.
The Audit report for the Financial Year 2017-18 does not contain any qualification, reservation or adverse remarks.
COST AUDITORS
The Company has appointed Messrs K.S. Bhatnagar & Associates, Cost Accountants for conducting cost audit of the Company for the financial year ending 31st March, 2019. For the financial year 2016-17, the Cost Auditor has duly filed the Cost Audit Report as per details below:-
Financial year Due date of filing Date of filing
2016-17 24.10.2017 05.10.2017
SECRETARIAL AUDITOR
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Messrs Gupta Vinod & Company, Practicing Company Secretaries, as secretarial auditor of the Company for the financial year ended March 31, 2018, to conduct the Secretarial Audit of the Company and their report is annexed herewith as Annexure - IV and this report does not contain any qualification, reservation or adverse remark.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Board of Directors on recommendation of the CSR Committee already formulated the CSR policy of the Company. The CSR activities of the Company are implemented in accordance with the core values viz. protecting stakeholder interests, grow in a socially and environmentally responsible way and striving towards inclusive development. The Company has implemented various CSR projects in the areas like Promotion of education & skill development, Healthcare, Rural Development, Drinking Water Project and Clean Environment, etc. These are in accordance with Schedule VII of the Companies Act, 2013.
Details of CSR expenditure is forming part of annual report and annexed as Annexure - V
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Your company believes in formulating adequate and effective internal control system and implementing the same to ensure that assets and interests of the Company are safeguarded and reliability of accounting data and accuracy are ensured with proper checks and balances. The internal control system is improved continuously to meet the changes in business conditions and statutory and accounting requirements as required from time to time.
The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control system and suggests improvements for strengthening them. The Company has a robust Management information system which is an integral part of the control mechanism.
The Audit Committee of Board of Directors, Statutory Auditors and the Business Heads are periodically appraised of the internal audit findings and corrective actions taken.
CREDIT RATING
In the previous year 2017-18 Company had obtained credit rating from ICRA, which was "A-" for long term and "A2 " for short term. The credit rating for 2018-19 is under review.
The rating derives strength from the Company''s significant presence in India''s Can Manufacturing sector, technologically advanced operations, proven management capability.
REMUNERATION
Disclosure pursuant to Section 197(12) of Companies Act, 2013 and Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided below:
(i) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the year 2017-18:
Directors |
Nature of Directorship |
Ratio |
|
Mr. Vijay Kumar Bhatia |
Whole Time Director |
17.1 |
1 |
Mr. Sanjay Bhatia |
Managing Director |
147.2 |
1 |
Mr. Ashok Kumar Bhatia |
Whole Time Director |
24.8: |
1 |
Mr. Ramesh Kumar Jain |
Non-executive Independent Director |
0.5 |
1 |
Mr. Bihari Lal Khurana |
Non-executive Independent Director |
0.7 |
1 |
Mr. M. K. Zutshi |
Non-executive Independent Director |
0.3: |
1 |
Mr. Nand Prakash Sahni |
Non-executive Independent Director |
0.5: |
1 |
Mrs. Aarti Sawhney |
Non-executive Independent Director |
0.4: |
1 |
Mr. Prit Pal Singh |
Whole Time Director |
7.5: |
1 |
*computed based on annualized remuneration.
(ii) the percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary in the financial year:
The annual increase in the salary of Managing Director, Whole Time Director, Company Secretary and CFO is as below:
Name |
Designation |
Annual Increase |
Percentage |
Mr. Sanjay Bhatia |
Managing Director |
From Rs. 94,09,170/-to Rs. 2,39,61,169/- |
154.66 % |
Mr. Vijay Kumar Bhatia |
Whole Time Director |
Rs. 27,82,080/No increase |
0 % |
Mr. Ashok Kumar Bhatia |
Whole Time Director |
From Rs. 37,63,200/-to Rs. 40,29,742/- |
7.1 % |
Mr. PP Singh |
Whole Time Director |
From Rs. 12,27,984/-to Rs. 12,27,984/- |
0 % |
Mr. Rajat Pathak |
VP (Finance) & Company Secretary |
From Rs. 23,67,954/-to Rs. 23,67,980/- |
0 % |
Mr. M. K. Mittal |
CFO |
From Rs. 15,67,539/-to Rs. 15,75,008/- |
0.5 % |
(iii) the percentage increase in the median remuneration of employees in the financial year: 9.17 %
(iv) the number of permanent employees on the rolls of Company: 449 (Four hundred and Forty Nine), as on 31 March, 2018.
(v) average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:
The average increase in the remuneration* of employees was 1.24% other than the managerial personnel in the last financial year whereas the average increase in the remuneration of managerial personnel was 84.5% thus there was not any exceptional circumstances for increase in the managerial remuneration.
*It does not include incentive bonus, leave encashment, gratuity & payments to LIC of India.
(vi) Affirmation that the remuneration is as per the Remuneration Policy of the Company:
The remuneration is as per the Remuneration Policy of the Company.
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND
Adhering to the provisions of Companies Act, 2013, relevant amounts which remained unpaid or unclaimed for periods of 7 years have been transferred by the Company, from time to time on or before due date to the Investor Education and Protection Fund.
Pursuant to the provisions of Section 124(6) of the Companies Act, 2013 read with IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 which came into force from September 7, 2016 (including any amendment thereto or reenactment thereof for the time being in force), all equity shares in respect of which dividend has not been paid or claimed by the Member(s) for seven consecutive years or more are required to be transferred to the IEPF Authority, a Fund constituted by the Government of India under Section 125 of the Companies Act, 2013. The Company has communicated individually to the concerned Members to claim their unpaid / unclaimed dividend amount(s) and that failure to claim the same would lead to their equity shares being transferred to the IEPF Authority without any further notice. In accordance with the aforesaid IEPF Rules, during the Financial Year 2017-18 and till date, the Company has transferred shares pertaining to dividends which remained unpaid and unclaimed, being declared for the years 2008-09 (Final) and 2009-10 (Interim and Final), to the IEPF Authority.
The unclaimed dividends and corresponding shares including all benefits accruing on such shares, if any, once transferred to the IEPF Authority can only be claimed back from the IEPF Authority, for which details are available at www.iepf.gov.in.
The details of Members whose dividends have remained unclaimed / unpaid for seven consecutive years have been placed on the website of the Company. Members are requested to refer to the "Investor" section on the website of the Company at http://hindustantin.biz/Uploads/image/47imguf_Details_of_Members.pdf
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMAN AT WORKPLACE (PREVENTION AND REDRESSAL) ACT, 2013
The Company has been employing women employees in various cadres within its premises. The Company has in place a policy against Sexual Harassment in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. There was no complaint received from any employee during the financial year 2017-18 and hence no complaint is outstanding as on 31st March, 2018.
PERSONNEL
Particulars of employees as required under the provisions of Rule 5(2) & (3) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014, is given in Annexure - VI.
PARTICULARS IN RESPECT OF CONSERVATION OF ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE EARNINGS AND OUTGO.
The information in accordance with the provisions of Clause (m) of Sub-Section (3) of Section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 are forming part of the Directors'' Report for the year ended 31st March, 2018 is given in Annexure - VII.
RELATED PARTY TRANSACTIONS
All related party transactions entered into by the Company during the year were on an arm''s length basis and were in the ordinary course of business. There are no materially significant Related Party Transactions made by the Company with promoters, directors, key managerial personnel or other designated persons which may have potential conflict with the interest of the Company at large.
All related party transactions that were entered into during the financial year were on an arm''s length basis. Details of such transactions are given in the Annexure - VIII to this report.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith in Annexure -IX.
BADDI LAND
The District Collector, Solan issued a Show Cause Notice to the Company under Section 118 of the H.P Tenancy and Land Reforms Act. It was alleged that the Company has violated the terms and conditions of the Section 118 of the H.P Tenancy and Land Reforms Act. The Collector held that the Company has violated the provisions of Section 118 of the H.P Tenancy and Land Reforms Act, therefore, ordered the vestment of the property in favour of the State of H.P Being aggrieved, the Company has filed the appeal with Divisional Commissioner, Shimla and next date of hearing is in August, 2018 for final arguments.
ACKNOWLEDGEMENT
The Board wishes to place on record with deep sense of satisfaction, their appreciation for the high degree of professionalism, commitment and dedication displayed by employees at all levels and the guidance, cooperation and assistance extended to the Company by its Bankers, Shareholders, Customers and Suppliers.
For & on behalf of the Board
Place : New Delhi (SANJAY BHATIA)
Date : 14th August, 2018 Chairman
Mar 31, 2016
DIRECTORS'' REPORT
Dear Shareholders,
The Directors have great pleasure in presenting the 58th Annual Report together with the Audited Annual Accounts of the Company for the financial year ending 31st March 2016.
FINANCIAL RESULTS
The performance of the Company for the financial year ended 31st March, 2016 is summarized below:
|
(Rupees inLacs) 2015-2016 |
2014-2015 |
Profit before Interest, Depreciation, & Tax |
3619.85 |
3093.60 |
Less: |
|
|
Financial Costs |
948.26 |
1044.76 |
Depreciation and Amortization expense |
785.56 |
728.60 |
Provision for Tax (including Wealth Tax) |
427.50 |
452.20 |
Deferred Tax |
56.27 |
12.05 |
Profit after Tax |
1402.26 |
855.99 |
Add: Balance brought forward |
6037.24 |
5406.42 |
Balance available for appropriation |
7439.50 |
6262.41 |
Less: Appropriations: |
|
|
Dividend (Incl. Div. Tax) |
125.17 |
125.17 |
Transfer to General Reserve |
100.00 |
100.00 |
Balance carried forward |
7214.33 |
6037.24 |
DIVIDEND
Your Directors are pleased to recommend a dividend @ Rs. 1.00 per Equity Share (10%) on the paid up capital of the Company for the year 2015-16, which if approved at the forthcoming AGM, will be paid to all those Equity Shareholders whose names appear (i) As Beneficial Owners as at the end of the business hours on 20th September, 2016 as per the list to be furnished by the depository in respect of the shares held in electronic form and, (ii) As member in the Register of Members of the Company after giving effect to all valid shares transfers in physical form lodged with the Company on or before 20th September, 2016. Your Directors also proposed to carry Rs. 1 crores to its General Reserve.
OPERATIONS
Your Company could achieve turnover of Rs.29795.00 lacs as against the previous year''s turnover of Rs. 31768.08 lacs i.e. a Decrease of Rs. 1973.08 lacs (6.21%). The Company has been successful in increasing its export sales from Rs. 6809.62 lacs in previous year to Rs. 7273.93 lacs in current year i.e. an increase of Rs. 464.31 lacs (6.82%).
Your Company has achieved PAT of Rs. 1402.26 lacs as against the previous year of Rs. 855.99 lacs i.e. an increase of Rs. 546.27 lacs (63.82%)
The Company has earned Rs. 9.17 Crores as Profit on Sale of JV Shares/ SBI Bonds/PNB shares during the Financial Year 2015-16 & shown the same as "Exceptional items- Profit from sale of shares" in Profit& Loss a/c.
DIRECTORS
In terms of the provisions of Section 152 of the Companies Act, 2013 and Articles of Association of the Company Mr. Sanjay Bhatia retires at the ensuing Annual General Meeting and being eligible, has offered himself for re-appointment.
The Board of Directors of the Company has a healthy blend of executive and non executive Directors which ensures the desired level of independence in functioning and decision making.
All the non executive Directors are eminent professional and bring in wealth of expertise and experience for directing the management of the Company.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134 (3) (c) of the Companies Act, 2013 with respect to directors'' responsibility statement, it is hereby confirmed that: -
(a) In the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.
(b) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2016 and of the profit of the Company for that period.
(c) We had 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) We had prepared the Annual Accounts on a going concern basis: and
(e) We had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.
(f) We had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A report in the form of Management Discussion and Analysis as per Part B of Schedule V of Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations, 2015), as a part of this report is annexed hereto as Annexure - I.
RISK MANAGEMENT
The Company has in place a Risk Management Policy which was reviewed by the Audit Committee and approved by the Board of Directors of the Company in its meeting held on 30th May, 2016. The Policy provides for a robust risk management framework to identify and assess risks such as operational, strategic, financial, security, property, regulatory, reputational and other risks and put in place an adequate risk management infrastructure capable of addressing these risks.
LOANS AND INVESTMENTS BY THE COMPANY
Details of loans and investments, if any, made by the Company are given in notes to the financial statements.
DEPOSITS
During the year under review, the company has not accepted any deposit under Section 76 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014.
CORPORATE GOVERNANCE
A report on Corporate Governance, along with a certificate from the Statutory Auditors of the Company detailing the compliance of Corporate Governance norms as enumerated in Part C of Schedule V of Regulation 34(3) of Listing Regulations, 2015 with the Stock Exchanges, is annexed as Annexure - II.
CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGERIAL PERSONNEL
The Company has laid down a code of conduct for the Board Members and Senior Managerial Personnel of the Company. All Board Members and Senior Managerial Personnel have affirmed compliance with the Code of Conduct for the year 2015-2016. A declaration signed by Mr. Sanjay Bhatia, Managing Director, as to the compliance of the Code of Conduct by the Board Members and Senior Managerial personnel has been placed before the Board at its meeting held on 11th August, 2016, is enclosed as Annexure-III.
VIGIL MECHANISM
The Company has in place a whistle blower policy, to support the Code of Business Ethics. This policy documents the Company''s commitment to maintain an open work environment in which employees, consultants and contractors are able to report instances of unethical or undesirable conduct, actual or suspected fraud or any violation of Company''s Code of Business Ethics at a significantly senior level without any fear of rejection. Individuals can raise their concerns by an e-mail, or telephone or direct interaction or by a letter to the Chairman of the Audit Committee of the Company. The Policy on vigil mechanism and whistler blower policy may be accessed on the Company''s website at the link: http://www.hindustantin.biz/ vigil-mechanism.html and it duly forms a part of corporate governance.
DISCLOSURES
The CEO and Chief Financial Officer (CFO) have furnished to the Board in its meeting held on 30th May, 2016 a certificate with regard to the financial statements and other matters of the Company as on 31st March 2016 as required under Part B of Schedule II of Regulation 17 (8) of Listing Regulations, 2015.
No material penalty or stricture was imposed on the Company by any statutory authority for non-compliance on matter related to capital markets, during the last three years.
The Company is complying with all the mandatory requirements of the Listing Regulations of Stock Exchanges on ''Corporate Governance''.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant and material orders passed by the Regulators/or Courts which would impact the going concern status of the Company and its future operations.
AUDITORS
M/s M. L. Puri & Co., Chartered Accountants, Statutory Auditors of the Company, hold office until the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment. The Company has received intimation to the effect that their re-appointment, if made would be within the prescribed limits under Section 141(3) (g) of the Companies Act, 2013 and also that they are not otherwise disqualified within the meaning of Section 139 & 141 of the Companies Act, 2013, for such appointment.
COST AUDITORS
The Company has appointed M/s K.S. Bhatnagar & Associates, Cost Accountants for conducting cost audit of the Company for the financial year ending 31st March, 2017. For the financial year 2014-15, the Cost Auditor has duly filed the Cost Audit Report as per details below:-
Financial year |
Due date of filing |
Date of filing |
2014-15 |
29.09.2015 |
28.09.2015 |
SECRETARIAL AUDITOR
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s Gupta Vinod & Company, Practicing Company Secretaries, as secretarial auditor of the Company for the financial year ended March 31, 2016, to conduct the Secretarial Audit of the Company and their report is annexed herewith as Annexure - IV and this report does not contain any qualification, reservation or adverse remark.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
During the year under review, the Board of Directors on recommendation of the CSR Committee formulated the CSR policy of the Company. The CSR activities of the Company are implemented in accordance with the core values viz. protecting stakeholder interests, grow in a socially and environmentally responsible way and striving towards inclusive development.
The Company has identified some important areas of engagement which are as under:
- Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water;
- Promoting education, including special education and employment enhancing vocation skills especially among children women, elderly, and the differently abled and livelihood enhancement projects;
- Promoting gender equality, empowering women, setting up homes and hostels for women and orphans, setting up old age homes, day care centre and such other facilities for senior citizen and measures for reducing inequalities faced by socially and economically backward groups;
- Ensuring environment sustainability, ecological balance, protection of flora and fauna, animal, welfare, agro forestry, conservation of natural resources and maintain quality of soil, air and water;
- Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts;
- Measures for the benefits of armed forces veterans, war widows and their dependents;
- Training to promote rural sports, nationally recognized sports, Paralympics sport and Olympic sports;
- Contribution to the Prime Minister''s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Casts, the Scheduled Tribes, other backward classes, minorities and women;
- Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
- Rural development projects.
Details of CSR policy forming part of annual report is annexed as Annexure - V
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Your company believes in formulating adequate and effective internal control system and implementing the same to ensure that assets and interests of the Company are safeguarded and reliability of accounting data and accuracy are ensured with proper checks and balances. The internal control system is improved continuously to meet the changes in business conditions and statutory and accounting requirements as required from time to time.
The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control system and suggests improvements for strengthening them. The Company has a robust Management information system which is an integral part of the control mechanism.
The Audit Committee of Board of Directors, Statutory Auditors and the Business Heads are periodically apprised of the internal audit findings and corrective actions taken.
CREDIT RATING
The Company has recently obtained credit rating from ICRA, which is "A-" for long term and "A2 " for short term (revised).
The rating derives strength from the Company''s significant presence in India''s Can Manufacturing sector, technologically advanced operations, proven management capability.
REMUNERATION
Disclosure pursuant to Section 197(12) of Companies Act, 2013 and Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided below:
(i) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the year 2015-16:
Directors |
Nature of Directorship |
Ratio |
Mr. Vijay Kumar Bhatia |
Whole Time Director |
19.4:1 |
Mr. Sanjay Bhatia |
Managing Director |
45.6;1 |
Mr. Ashok Kumar Bhatia |
Whole Time Director |
22.6:1 |
Mr. Ramesh Kumar Jain |
Non-executive Independent Director |
0.6:1 |
Mr. Bihari Lal Khurana |
Non-executive Independent Director |
0.7:1 |
Mr. M. K. Zutshi |
Non-executive Independent Director |
0.4:1 |
Mr. Nand Prakash Sahni |
Non-executive Independent Director |
0.6:1 |
Mrs. Aarti Sawhney |
Non-executive Independent Director |
0.4:1 |
Mr. Prit Pal Singh |
Whole Time Director |
8.0:1 |
*computed based on annualized remuneration.
(ii) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary in the financial year:
The annual increase in the salary of Managing Director, Whole Time Director, Company Secretary and CFO is as below:
Name |
Designation |
Annual Increase |
Percentage |
Mr. Sanjay Bhatia |
Managing Director |
From Rs.59,19,600/-to Rs. 65,46,726/- |
10.6 % |
Mr. Vijay Kumar Bhatia |
Whole Time Director |
From Rs.27,57,240/-to Rs 27,82,080/- |
0.9 % |
Mr. Ashok Kumar Bhatia |
Whole Time Director |
From Rs.19,91,340/-to Rs. 32,42,080/- |
62.8 % |
Mr. PP Singh |
Whole Time Director |
From Rs. 10,68,000/- |
|
|
to Rs. 11,54,400/- |
8.1 % |
|
Mr. Rajat Pathak |
VP (Finance) & |
From Rs. 20,38,800/- |
|
|
Company Secretary |
to Rs. 22,00,080/- |
7.9% |
Mr. M. K. Mittal |
AVP (Accounts) & CFO |
From Rs. 13,28,040/to Rs. 14,43,240/- |
8.7% |
(iii) The percentage increase in the median remuneration of employees in the financial year: 10.70%
(iv) The number of permanent employees on the rolls of Company: 445 (Four hundred and Forty Five), as on 31 March, 2016.
(v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:
It does not include incentive bonus, leave encashment, gratuity, ex gratia being onetime payment/ based on net profit/production performance/payments to LIC of India.
(vi) Affirmation that the remuneration is as per the Remuneration Policy of the Company:
The remuneration is as per the Remuneration Policy of the Company.
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND
Adhering to the provisions of Companies Act, 2013, relevant amounts which remained unpaid or unclaimed for periods of 7 years have been transferred by the Company, from time to time on or before due date to the Investor Education and Protection Fund.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMAN AT WORKPLACE (PREVENTION AND REDRESSAL) ACT, 2013
The Company has been employing women employees in various cadres within its premises. The Company has in place a policy against Sexual Harassment in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. There was no
The average increase in the remuneration1 of employees was 10.88% other than the managerial personnel in the last financial year whereas the average increase in the remuneration of managerial personnel was 26.86% thus there was not any exceptional circumstances for increase in the managerial remuneration.
PERSONNEL
Particulars of employees as required under the provisions of Rule 5(2) & (3) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014, is not provided as there are no employees covered under it.
PARTICULARS IN RESPECT OF CONSERVATION OF ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE EARNINGS AND OUTGO.
The information in accordance with the provisions of Clause (m) of Sub-Section (3) of Section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 are forming part of the Directors'' Report for the year ended 31st March, 2016 is given in Annexure - VI.
RELATED PARTY TRANSACTIONS
All related party transactions entered into by the Company during the year were on an arm''s length basis and were in the ordinary course of business. There are no materially significant Related Party Transactions made by the Company with promoters, directors, key managerial personnel or other designated persons which may have potential conflict with the interest of the Company at large .
All related party transactions that were entered into during the financial year were on an arm''s length basis. Details of such transactions are given in the Annexure - VII to this report.
Further the following related persons were resigned during the financial year 2015-16.
S.No. |
Name |
Designation |
Related to |
1. 2. |
Mr. Atit Bhatia Mr. Gaurav Bhatia |
Sr. Vice President (w.e.f 31.07.2015) Sr. Vice President (w.e.f 1.10.2015) |
Son of Mr. Sanjay Bhatia, Managing Director Son of Mr. Vijay Kumar Bhatia, Whole-time Director |
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith in Annexure -VIII.
BADDI LAND
The District Collector, Solan issued a Show Cause Notice to the Company under Section 118 of the H.P Tenancy and Land Reforms Act. It was alleged that the Company has violated the terms and conditions of the Section 118 of the H.P Tenancy and Land Reforms Act. The Collector held that the Company has violated the provisions of Section 118 of the H. P Tenancy and Land Reforms Act, therefore, ordered the vestment of the property in favour of the State of H.P Being aggrieved, the Company has filed the appeal with Divisional Commissioner, Shimla and date of hearing is waiting
ACKNOWLEDGEMENT
The Board wishes to place on record with deep sense of satisfaction, their appreciation for the high degree of professionalism, commitment and dedication displayed by employees at all levels and the guidance, cooperation and assistance extended to the Company by its Bankers, Shareholders, Customers and Suppliers.
For & on behalf of Board
Place : New Delhi (SANJAY BHATIA)
Date : 11th August, 2016 Chairman
Mar 31, 2015
Dear Shareholders,
The Directors have great pleasure in presenting the 57th Annual Report
together with the Audited Annual Accounts of the Company for the
financial year ending 31st March 2015.
FINANCIAL RESULTS
The performance of the Company for the financial year ended 31st March,
2015 is summarized below:
(Rupees in Lacs)
2014-2015 2013-2014
Profit before Interest, Depreciation, & Tax 3093.60 2852.60
Less:
Financial Charges 1044.76 1033.66
Depreciation 728.60 470.99
Provision for Tax (including Wealth Tax) 452.20 398.92
Deferred Tax 12.05 108.18
Profit after Tax 855.99 840.85
Add: Balance brought forward 5406.42 4762.90
Balance available for appropriation 6262.41 5603.75
Less: Appropriations:
Dividend (Incl. Div. Tax) 125.17 97.33
Transfer to General Reserve 100.00 100.00
Balance carried forward 6037.24 5406.42
DIVIDEND
Your Directors are pleased to recommend a dividend @ Rs. 1.00 per
Equity Share (10%) on the paid up capital of the Company for the year
2014-15, which if approved at the forthcoming AGM, will be paid to all
those Equity Shareholders whose names appear (i) As Beneficial Owners
as at the end of the business hours on 10th September, 2015 as per the
list to be furnished by the depository in respect of the shares held in
electronic form and, (ii) As member in the Register of Members of the
Company after giving effect to all valid shares transfers in physical
form lodged with the Company on or before 10th September, 2015. Your
Directors also proposed to carry Rs. 1 crores to its General Reserve.
OPERATIONS
Your Company could achieve turnover of Rs.31955.32 lacs as against the
previous year''s turnover of Rs. 31362.85 lacs i.e. an Increase of
592.47 lacs (1.89%). The Company has been successful in increasing its
export sales from Rs. 6907.73 lacs in previous year to Rs. 6996.85 lacs
in current year i.e. an increase of Rs. 89.12 lacs (1.29%).
Your Company has achieved PAT of Rs. 855.99lacs as against the previous
year of Rs. 840.85 lacs i.e. an increase of Rs. 15.14 lacs (1.80%)
JOINT VENTURE
A joint venture agreement was entered into on August 1, 2006 with Rexam
Beverage Can (India Holdings) Limited, U.K. a Rexam PLC, UK Group
Company. The JV is established to manufacture, distribute and market
two piece cans under the terms of which the Company and Rexam invested
49% (Forty Nine percent) and 51% (Fifty One percent) in the share
capital of the Joint Venture Company, respectively.
This Joint Venture Agreement was subsequently amended by the Company,
Rexam and the Joint Venture Company from time to time.
Pursuant to the provisions of the Joint Venture Agreement (as amended
by the Addenda from time to time), the Company was holding 32,85,250
(Thirty Two Lakhs Eighty Five Thousand and Two Hundred and Fifty)
equity shares in the Joint Venture Company ("Sale Shares") constituting
0.61% of the total issued and paid up equity share capital of the Joint
Venture Company.
As authorised by the Board at its meeting held on 5th Nov 2014, the
Company had negotiation with Rexam HTW Beverage Can (India) Private
Limited and sold the investment of 32,85,250 equity shares of Rs. 10
each of the JV to other partner M/s Rexam Beverage Can (India Holdings)
Limited at USD 2 million on 17th April 2015. Consequently Mr. Sanjay
Bhatia and Mr. Vijay Kumar Bhatia also resigned from the Board of JVC
on 1 7th April 2015. However Management Services Agreement will
continue till 30.06.2015 and Trade Mark License Agreement will continue
till 31.03.2016.
DIRECTORS
In terms of the provisions of Section 152 of the Companies Act, 2013
and Articles of Association of the Company Mr. Vijay Kumar Bhatia
retires at the ensuing Annual General Meeting and being eligible, has
offered himself for re-appointment.
The Board of Directors of the Company has a healthy blend of executive
and non executive Directors which ensures the desired level of
independence in functioning and decision making.
All the non executive Directors are eminent professional and bring in
wealth of expertise and experience for directing the management of the
Company.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134 (3) (c) of the Companies
Act, 2013 with respect to directors'' responsibility statement, it is
hereby confirmed that: -
(a) In the preparation of the Annual Accounts, the applicable
accounting standards have been followed alongwith proper explanation
relating to material departures, if any.
(b) The Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at 31st March, 2015 and of the profit of the Company
for that period.
(c) We had 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) We had prepared the Annual Accounts on a going concern basis: and
(e) We had laid down internal financial controls to be followed by the
Company and that such internal financial controls are adequate and were
operating effectively.
(f) We had devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate
and operating effectively.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A report in the form of Management Discussion and Analysis pursuant to
Clause 49 of the Listing Agreement, as a part of this report is annexed
hereto as Annexure - I.
LOANS AND INVESTMENTS BY THE COMPANY
Details of loans and investments made by the Company are given in notes
to the financial statements.
DEPOSITS
During the year under review, the company has not accepted any deposit
under Section 76 of the Companies act, 2013 read with Companies
(Acceptance of Deposits) Rules, 2014.
CORPORATE GOVERNANCE
A report on Corporate Governance, along with a certificate from the
Statutory Auditors of the Company detailing the compliance of Corporate
Governance norms as enumerated in clause 49 of the listing agreements
with the Stock Exchanges, is annexed as Annexure - II.
CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGERIAL PERSONNEL
The Company has laid down a code of conduct for the Board Members and
Senior Managerial Personnel of the Company. All Board Members and
Senior Managerial Personnel have affirmed compliance with the Code of
Conduct for the year 2014-2015. A declaration by Mr. Sanjay Bhatia,
Managing Director, as to the compliance of the Code of Conduct by the
Board Members and Senior Managerial personnel has been placed before
the Board at its meeting held on 31st July, 2015, is enclosed as
Annexure-III.
VIGIL MECHANISM
The Company has in place a whistle blower policy, to support the Code
of Business Ethics. This policy documents the Company''s commitment to
maintain an open work environment in which employees, consultants and
contractors are able to report instances of unethical or undesirable
conduct, actual or suspected fraud or any violation of Company''s Code
of Business Ethics at a significantly senior level without any fear of
rejection. Individuals can raise their concerns by an e-mail, or
telephone or direct interaction or a letter to the Chairman of the
Audit Committee of the Company. The Policy on vigil mechanism and
whistler blower policy may be accessed on the Company''s website at the
link: http://www.hindustantin.biz/vigil-mechanism.html and it duly
forms a part of corporate governance.
DISCLOSURES
The CEO and Chief Financial Officer (CFO) have furnished to the Board
in its meeting held on 31st July, 2015 a certificate with regard to the
financial statements and other matters of the Company as on 31 st March
2015 as required under clause 49 of the listing agreement.
No material penalty or stricture was imposed on the Company by any
statutory authority for non-compliance on matter related to capital
markets, during the last three years.
The Company is complying with all the mandatory requirements of the
Listing agreement of Stock Exchanges on ''Corporate Governance''.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant and material orders passed by the
Regulators/or Courts which would impact the going concern status of the
Company and its future operations.
AUDITORS
M/s M. L. Puri & Co., Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of the forthcoming Annual
General Meeting and being eligible offer themselves for re-appointment.
The Company has received intimation to the effect that their
re-appointment, if made would be within the prescribed limits under
Section 141(3) (g) of the Companies Act, 2013 and also that they are
not otherwise disqualified within the meaning of Section 139 & 141 of
the Companies Act, 2013, for such appointment.
COST AUDITORS
The Company has appointed M/s K.S. Bhatnagar & Associates, Cost
Accountants for conducting cost audit of the Company for the financial
year ending 31st March, 2016. For the financial year 2013-14, the Cost
Auditor has duly filed the Cost Audit Report as per details below:-
Financial year Due date of filing Date of filing
2013-14 27.09.2014 24.09.2014
SECRETARIAL AUDITOR
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s Gupta Vinod &
Company, Practicing Company Secretaries, as secretarial auditor of the
Company for the financial year ended March 31,2015, to conduct the
Secretarial Audit of the Company and their report is annexed herewith
as Annexure - IV and this report does not contain any qualification,
reservation or adverse remark.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
During the year under review, the Board of Directors on recommendation
of the CSR Committee formulated the CSR policy of the Company. The CSR
activities of the Company are implemented in accordance with the core
values viz. protecting stakeholder interests, grow in a socially and
environmentally responsible way and striving towards inclusive
development.
The Company has identified some important areas of engagement which are
as under:
- Eradicating hunger, poverty and malnutrition, promoting preventive
health care and sanitation and making available safe drinking water;
- Promoting education, including special education and employment
enhancing vocation skills especially among children women, elderly, and
the differently abled and livelihood enhancement projects;
- Promoting gender equality, empowering women, setting up homes and
hostels for women and orphans, setting up old age homes, day care
centre and such other facilities for senior citizen and measures for
reducing inequalities faced by socially and economically backward
groups;
- Ensuring environment sustainability, ecological balance, protection
of flora and fauna, animal, welfare, agro forestry, conversation of
natural resources and maintain quality of soil, air and water;
- Protection of national heritage, art and culture including
restoration of buildings and sites of historical importance and works
of art; setting up public libraries; promotion and development of
traditional arts and handicrafts;
- Measures for the benefits of armed forces veterans, war widows and
their dependents;
- Training to promote rural sports, nationally recognized sports,
Paralympics sport and Olympic sports;
- Contribution to the Prime Minister''s National Relief Fund or any
other fund set up by the Central Government for socio-economic
development and relief and welfare of the Scheduled Casts, the
Scheduled Tribes, other backward classes, minorities and women;
- Contributions or funds provided to technology incubators located
within academic institutions which are approved by the Central
Government;
- Rural development projects."
Details of CSR policy forming part of annual report is annexed as
Annexure - V INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Your company believes in formulating adequate and effective internal
control system and implementing the same to ensure that assets and
interests of the Company are safeguarded and reliability of accounting
data and accuracy are ensured with proper checks and balances. The
internal control system is improved continuously to meet the changes in
business conditions and statutory and accounting requirements as
required from time to time.
The Audit Committee of the Board of Directors actively reviews the
adequacy and effectiveness of internal control system and suggests
improvements for strengthening them. The Company has a robust
Management information system which is an integral part of the control
mechanism.
The Audit Committee of Board of Directors, Statutory Auditors and the
Business Heads are periodically apprised of the internal audit findings
and corrective actions taken.
CREDIT RATING
The Company has recently obtained credit rating from ICRA.
ICRA has reaffirmed its credit rating of the Company as "A-" for long
term and "A1" for short term.
The rating derives strength from the Company''s significant presence in
India''s Can Manufacturing sector, technologically advanced operations,
proven management capability.
REMUNERATION
Disclosure pursuant to Section 197(12) of Companies Act, 2013 and Rule
5 of Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 is provided below:
(i) The ratio of the remuneration of each Director to the median
remuneration of the employees of the Company for the year 2014-15:
Directors Nature of Directorship Ratio
Mr. Vijay Kumar Bhatia Whole Time Director 17.7:1
Mr. Sanjay Bhatia Managing Director 38.1:1
Mr. Ashok Kumar Bhatia Whole Time Director 12.8:1
Mr. Ramesh Kumar Jain Non-executive Independent
Director 0.4:1
Mr. Bihari Lal Khurana Non-executive Independent
Director 0.4:1
Mr. M. K. Zutshi Non-executive Independent
Director 0.2:1
Mr. Nanad Prakash Sahni Non-executive Independent
Director 0.4:1
Mrs. Aarti Sawhney Non-executive Independent
Director 0.3:1
Mr. Prit Pal Singh Whole Time Director 6.9:1
*computed based on annualized remuneration.
(ii) the percentage increase in remuneration of each Director, Chief
Financial Officer, Chief Executive Officer, Company Secretary in the
financial year:
The remuneration of non-executive Directors by way of sitting fee for
attending Board meetings was increased by 50% viz. Rs. 10,000 per
meeting to Rs. 15,000 per meeting and for Audit Committee sitting fee
was increased by 67% viz Rs. 3000 per meeting to Rs. 5000 per meeting
w.e.f 11th February, 2015. The annual increase in the salary of
Managing Director, Whole Time Director, Company Secretary and CFO is as
below:
Name Designation Annual Increase Percentage
Mr. Sanjay Bhatia Managing Director From Rs.53,28,000/-
to Rs. 59,19,600/- 11.1 %
Mr. Vijay Kumar Whole Time Director From Rs.24,19,200/-
Bhatia to Rs 27,57,240/- 14.0 %
Mr. Ashok Kumar Whole Time Director From Rs.17,47,200/-
Bhatia to Rs. 19,91,340/- 14.0 %
Mr. PP Singh Whole Time Director From Rs. 10,18,200/-
to Rs. 10,68,000/- 4.9 %
Mr. Rajat Pathak VP (Finance) & From Rs. 17,94,600/-
Company Secretary to Rs. 20,38,800/- 13.6%
Mr. M. K. Mittal AVP (Accounts) & CFO From Rs. 13,06,164/-
to Rs. 14,40,000/- 10.2%
(iii) the percentage increase in the median remuneration of employees
in the financial year: 8.8 %
(iv) the number of permanent employees on the rolls of Company: 446
(Four hundred and Forty Six), as on 31 March, 2015.
(v) the explanation on the relationship between average increase in
remuneration and Company performance:
The average increase in remuneration of the employees was 13.3%. The
average increase in remuneration is closely linked to and driven by
achievement of annual corporate goals and overall business, financial
and operational performance of the Company.
(vi) comparison of the remuneration of the key managerial personnel
against the performance of the Company:
The increment in the financial year 2014-15 was based on the
performance in the financial year 2013-14 vis-a-vis financial year
2012-13.
Despite an inflationary environment and increasingly fierce
competition, extremely challenging domestic business environment,
political turmoil and unrest in Middle east and Eurozone sovereign debt
crisis, the Company delivers and achieves turnover of Rs. 31362.85 lacs
in the financial year 2013-14 as against the turnover of Rs. 27281.73
lacs in the financial year 2012-13 i.e. an increase of Rs. 4081.12 lacs
(14.96%). The Export Sales has also been increased from Rs. 4860.42
lacs to Rs. 6907.73 lacs i.e. an increase of Rs. 2047.31 lacs
(42.12%).
The Company has been successful in increasing its PAT from Rs. 734.89
lacs in the financial year 2012- 13 to Rs. 840.85 lacs in in the
financial year 2013-14 i.e. an increase of Rs. 105.96 lacs (14.42 %).
(vii) variations in the market capitalization of the Company, price
earnings ratio as at the closing date of the current financial year and
previous financial year and percentage increase over decrease in the
market quotations of the shares of the Company in comparison to the
rate at which the Company came out with the last public offer and
Preferential Allotment :
The Company had allotted equity shares under its IPO in May, 1995 at a
price of Rs. 40/- per equity share including Premium of Rs. 30/- per
share, the Company had further made Preferential Allotment and issue of
Zero Coupon Convertible Warrants in August 2005 at the price of Rs.
44/- per equity share including Premium of Rs. 34/- per share (Zero
Coupon Convertible Warrants were converted to equity shares in Feb 2007
i.e. after 18 Month). The market quotations/price of the shares of the
Company as at 31 March, 2015 on BSE compared to the IPO price increased
by 57.63% and compared to Preferential Allotment and Zero Coupon
Convertible Warrants increased by 43.30%.
Particulars As at 31st As at 31st Variation (%)
March 2015 March, 2014
Closing Share Price on BSE (INR) 63.05 33.30 89.34
Market Capitalisation (INR crore) 65.57* 34.63* 89.34
P/E Ratio 7.66 4.12 85.92
*Total number of shares as on 31 March, 2015 and 31 March, 2014 are
10399683.
(viii) average percentile increase already made in the salaries of
employees other than the managerial personnel in the last financial
year and its comparison with the percentile increase in the managerial
remuneration and justification thereof and point out if there are any
exceptional circumstances for increase in the managerial remuneration:
The average increase in the remuneration* of employees was 13.6% other
than the managerial personnel in the last financial year whereas the
average increase in the remuneration of managerial personnel was 11.8%
thus there was not any exceptional circumstances for increase in the
managerial remuneration.
*It does not include incentive bonus, leave encashment, gratuity, ex
gratia being onetime payment/ based on net profit/production
proformance/payments to LIC of India.
(ix) comparison of the each remuneration of the Key Managerial
Personnel against the performance of the Company:
The increase in the remuneration of Mr. Sanjay Bhatia, Managing
Director, Mr. Vijay Kumar Bhatia and Mr. Ashok Kumar Bhatia, and Mr. PP
Singh, Whole-Time Director is 11.1%, 14.0%, 14.0%, 4.9% respectively.
The increase in remuneration of Mr. Rajat Pathak, VP (Finance) &
Company Secretary and Mr. M.K. Mittal, AVP (Accounts) & CFO is 13.6%
and 10.2 % respectively.
The comparison of the remuneration against the performance of the
Company is detailed in clause (vi) above.
(x) the key parameters for any variable component of remuneration
availed by the directors:
Only commission payable to Managing Director is a variable component of
remuneration availed by him which is linked as a percentage of net
profit of the Company.
(xi) the ratio of the remuneration of the highest paid Director to that
of the employees who are not Directors but receive remuneration in
excess of the highest paid Director during the year: Not applicable.
(xii) Affirmation that the remuneration is as per the Remuneration
Policy of the Company:
The remuneration is as per the Remuneration Policy of the Company.
PERSONNEL
Particulars of employees as required under the provisions of Rule 5(2)
& (3) of the Companies (Appointment & Remuneration of Managerial
Personnel) Rules, 2014, is not provided as there are no employees
covered under it.
PARTICULARS IN RESPECT OF CONSERVATION OF ENERGY, TECHNOLOGY AND
FOREIGN EXCHANGE EARNINGS AND OUTGO.
The information in accordance with the provisions of Clause (m) of
Sub-Section (3) of Section 134 of the Companies Act, 2013 read with the
Companies (Accounts) Rules, 2014 are forming part of the Directors''
Report for the year ended 31st March, 2015 is given in Annexure - VI.
RELATED PARTY TRANSACTIONS
All related party transactions entered into by the Company during the
year were on an arm''s length basis and were in the ordinary course of
business. There are no materially significant Related Party
Transactions made by the Company with promoters, directors, key
managerial personnel or other designated persons which may have
potential conflict with the interest of the Company at large .
All related party transactions that were entered into during the
financial year were on an arm''s length basis. Details of such
transactions are given in the Annexure - VII to this report.
Further the following related persons were appointed during the
financial year 2014-15 to the period from 01.04.2015 to 31.03.2020.
S.No. Name Designation Related to
1. Mr. Gaurav Bhatia Sr. Vice President Son of Mr. Vijay Kumar Bhatia
Whole-time Director
2. Mr. Paras Bhatia Sr. Vice President Son of Mr. Ashok Kumar Bhatia
Whole-time Director
3. Mr. Saket Bhatia Sr. Vice President Son of Mr. Sanjay Bhatia,
Managing Director
4. Mr. Atit Bhatia Sr. Vice President Son of Mr. Sanjay Bhatia,
till 31.07.2015 Managing Director
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form
MGT-9 is annexed herewith in Annexure -VIII.
ACKNOWLEDGEMENT
The Board wishes to place on record with deep sense of satisfaction,
their appreciation for the high degree of professionalism, commitment
and dedication displayed by employees at all levels and the guidance,
co- operation and assistance extended to the Company by its Bankers,
Shareholders, Customers and Suppliers.
For & on behalf of Board
Place : New Delhi (SANJAY BHATIA)
Date : 31st July, 2015 Chairman
Mar 31, 2014
Dear Members,
The Directors have great pleasure in presenting the 56th Annual Report
together with the Audited Annual Accounts of the Company for the
financial year ending 31st March 2014.
FINANCIAL RESULTS
The performance of the Company for the financial year ended 31st March,
2014 is summarized below:
(Rupees in Lacs)
2013-2014 2012-2013
Profit before Interest, Depreciation, & Tax 2852.60 2527.21
Less:
Financial Charges 1033.66 1004.85
Depreciation 470.99 419.33
Provision for Tax (including Wealth Tax) 398.92 310.59
Deferred Tax 108.18 57.55
Profit after Tax 840.85 734.89
Add: Balance brought forward 4762.90 4163.84
Balance available for appropriation 5603.75 4898.73
Less: Appropriations:
Dividend (Incl. Div. Tax) 97.34 60.83
Transfer to General Reserve 100.00 75.00
Balance carried forward 5406.41 4762.90
DIVIDEND
Your Directors are pleased to recommend a dividend @ Rs. 0.80 per
Equity Share (8%) on the paid up capital of the Company for the year
2013-14, which if approved at the forthcoming AGM, will be paid to all
those Equity Shareholders whose names appear (i) As Beneficial Owners
as at the end of the business hours on 18th September, 2014 as per the
list to be furnished by the depository in respect of the shares held in
electronic form and, (ii) As member in the Register of Members of the
Company after giving effect to all valid shares transfers in physical
form lodged with the Company on or before 18th September, 2014.
OPERATIONS
Your Company could achieve turnover of Rs. 31362.85 lacs as against the
previous year''s turnover of Rs. 27281.73 lacs i.e. an increase of
4081.12 lacs (14.96%). The Company has been successful in increasing
its export sales from Rs. 4860.42 lacs in previous year to Rs. 6907.73
lacs in current year i.e. an increase of Rs. 2047.31 lacs (42.12%).
Your Company has achieved PAT of Rs. 840.85 lacs as against the
previous year of Rs. 734.89 lacs i.e. an increase of Rs. 105.96 lacs
(14.42%)
JOINT VENTURE
As you are aware of that your Company entered into a joint venture
Agreement (JV) on 01st August, 2006 with Rexam Beverage Can (India
Holdings) Limited, U.K. a Rexam PLC, UK Group Company, the world leader
in two piece Beverage Cans. The JV, under the name and style of Rexam
HTW Beverage Can (India) Limited, is first of its kind in India and it
would benefit from the synergies of the JV Partners especially the
technical and global best practices brought in by Rexam and the
established capabilities of Hindustan Tin Works Limited in the domestic
market. The JV is established to manufacture, distribute and market two
piece cans and this would provide a strategic advantage to the JV and
its Partners. The JV Company has received very good response from the
market.
The JV Company had funded the installation of the aluminum line and
25cl slim size conversion through raising debt via the ECB route and
that the capital structure of the company became too reliant on debt
financing. To revise the capital structure of the Company the JV
partners decided to induct equity of Rs. 3,218,680,000 (Rupees three
hundred twenty one crores eighty six lakhs eighty thousand only)
against conversion of ECB and fresh allotment of equity shares. For
maintaining same level of 2.09 %, your Company will have to contribute
a huge investment. In view of the Company''s fund position and its own
growth plans, it is decided by the management not to invest any
additional funds in JVC at this stage and thus Rexam (JV Partner) will
contribute the whole amount due to which your Company''s share is
reduced to 0.77 % from existing 2.09%. However your Company has a claw
back right to go back to 15% by 31st March, 2015.
DIRECTORS
In terms of the provisions of Section 152 of the Companies Act, 2013
and Articles of Association of the Company Mr. Ashok Kumar Bhatia
retires at the ensuing Annual General Meeting and being eligible, has
offered himself for re-appointment. Mr. N.P. Sahni, Mr. B. L. Khurana,
Mr. Ramesh Kumar Jain, Mr. M.K. Zutshi and Mrs. Aarti Sawhney were
appointed/re-appointed as Independent Directors of the Company. Mr.
Sanjay Bhatia, Managing Director, Mr. Vijay Kumar Bhatia, Mr. Ashok
Kumar Bhatia and Mr. PP Singh, Whole time Directors of the Company were
re-appointed.
Mr. Deepak Pahwa, Director resigned w.e.f. 29th March, 2014 and Mrs.
Aarti Sawhney was appointed as Director w.e.f. 28th May, 2014.
A brief resume of Directors, nature of their expertise in specific
functional areas and other Company names in which they hold
Directorship, Membership/Chairmanship of Board Committees, and
Shareholding in the Company are provided in this Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956 with respect to directors'' responsibility statement, it is
hereby confirmed that: -
(a) In the preparation of Annual Accounts, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures, if any.
(b) We 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 financial year 2013-2014 and of the profit of
the Company for that period.
(c) We 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 any possible fraud and other irregularities.
(d) We have prepared accounts on going concern basis.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A report in the form of Management Discussion and Analysis pursuant to
Clause 49 of the Listing Agreement, as a part of this report is annexed
hereto as Annexure - I.
FIXED DEPOSITS
During the year under review, the company has not accepted any deposit
under Section 58A of the Companies Act, 1956 read with Companies
(Acceptance of Deposits) Rules, 1975 and under other applicable
provisions of Section 58A of the Companies Act, 1956 read with
Companies (Acceptance of Deposits) Rules, 1975.
CORPORATE GOVERNANCE
A report on Corporate Governance, along with a certificate from the
Statutory Auditors of the Company detailing the compliance of Corporate
Governance norms as enumerated in clause 49 of the listing agreements
with the Stock Exchanges, is annexed as Annexure - II.
CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGERIAL PERSONNEL
The Company has laid down a code of conduct for the Board Members and
Senior Managerial Personnel of the Company. All Board Members and
Senior Managerial Personnel have affirmed compliance with the Code of
Conduct for the year 2013-2014. A declaration by Mr. Sanjay Bhatia,
Managing Director, as to the compliance of the Code of Conduct by the
Board Members and Senior Managerial personnel has been placed before
the Board at its meeting held on 12th August, 2014, is enclosed as
Annexure-III.
DISCLOSURES
The CEO and Chief Financial Officer (CFO) have furnished to the board
in its meeting held on 12th August, 2014, a certificate with regard to
the financial statements and other matters of the Company as on 31st
March 2014 as required under clause 49 of the listing agreement.
No material penalty or stricture was imposed on the Company by any
statutory authority for non-compliance on matter related to capital
markets, during the last three years.
The Company is complying with all the mandatory requirements of the
Listing agreement of Stock Exchanges on ''Corporate Governance''.
AUDITORS
M/s M. L. Puri & Co., Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of the forthcoming Annual
General Meeting and being eligible offer themselves for re-appointment.
The Company has received intimation to the effect that their
re-appointment, if made would be within the prescribed limits under
Section 141(3) (g) of the Companies Act, 2013 and also that they are
not otherwise disqualified within the meaning of Section 139 & 141 of
the Companies Act, 2013, for such appointment.
COST AUDITORS
The Company has appointed M/s K.S. Bhatnagar & Associates, Cost
Accountants for conducting cost audit of the Company for the financial
year ending 31st March, 2015. For the financial year 2012-13, the Cost
Auditor has duly filed the Cost Audit Report as per details below:-
Financial year Due date of filing Date of filing
2012-13 27.09.2013 24.09.2013
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Your company believes in formulating adequate and effective internal
control system and implementing the same to ensure that assets and
interests of the Company are safeguarded and reliability of accounting
data and accuracy are ensured with proper checks and balances. The
internal control system is improved continuously to meet the changes in
business conditions and statutory and accounting requirements as
required from time to time.
The Audit Committee of the Board of Directors actively reviews the
adequacy and effectiveness of internal control system and suggests
improvements for strengthening them. The Company has a robust
Management information system which is an integral part of the control
mechanism.
The Audit Committee of Board of Directors, Statutory Auditors and the
Business Heads are periodically apprised of the internal audit findings
and corrective actions taken.
PERSONNEL
Particulars of employees as required under Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particular of Employees)
Rules, 1975 as amended, is not provided as there are no employees
covered under it.
PARTICULARS IN RESPECT OF CONSERVATION OF ENERGY, TECHNOLOGY AND
FOREIGN EXCHANGE EARNINGS AND OUTGO.
The information in accordance with the provisions of Clause (e) of
Sub-Section (1)of Section 217of the Companies Act, 1956 read with the
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 and forming part of the Directors'' Report for
the year ended 31st March, 2014 is given in Annexure - IV.
ACKNOWLEDGEMENT
The Board wishes to place on record with deep sense of satisfaction,
their appreciation for the high degree of professionalism, commitment
and dedication displayed by employees at all levels and the guidance,
co- operation and assistance extended to the Company by its Bankers,
Shareholders, Customers and Suppliers.
For & on behalf of Board
Place : New Delhi (SANJAY BHATIA)
Date : 12th August, 2014 Chairman
Mar 31, 2012
The Directors have great pleasure in presenting the 54th Annual Report
together with the Audited Annual Accounts of the Company for the
financial year ending 31st March 2012
FINANCIAL RESULTS
The performance of the company for the financial year ended 31st March,
2012 is summarized below:
(Rupees in Lacs)
2011-2012 2010-2011
Profit before Interest, Depreciation, & Tax 2183.05 3044.24
Less : Financial Charges 914.15 914.22
Depreciation 433.61 415.73
Provision for Tax (including Wealth Tax) 235.07 522.80
Deferred Tax 31.02 63.67
Profit after Tax 569.20 1127.82
Add: Balance brought forward 3739.25 2891.21
Balance available for appropriation 4308.45 4019.03
Less : Appropriations:
Dividend (Incl. Div. Tax) 84.61 169.78
Transfer to General Reserve 60.00 110.00
Balance carried forward 4163.84 3739.25
DIVIDEND
Your Directors are pleased to recommend a dividend @ Rs.0.70 per Equity
Share (7%) on the paid up capital of the Company for the year 2011-12,
which if approved at the forthcoming AGM, will be paid to all those
Equity Shareholders whose names appear (i) As Beneficial Owners as at
the end of the business hours on 21st September, 2012 as per the list
to be furnished by the depository in respect of the shares held in
electronic form and, (ii) As member in the Register of Members of the
Company after giving effect to all valid shares transfers in physical
form lodged with the Company on or before 21st September, 2012.
OPERATIONS
Your Company could achieve turnover of Rs. 24664.41 lacs as against the
previous year's turnover of Rs. 29478.43 lacs due to political turmoil
and unrest in Middle East, grappling of Eurozone with its debts crisis
and extremely challenging domestic business environment.
Due to high inflation, higher cost of production including high rate of
interest, personnel & other costs, volatility in commodity prices,
rupee depreciation and lower turnover during the year, your Company's
PAT is reduced from Rs. 1127.82 lacs to Rs. 569.20 Lacs.
TRADE MARK AND DESIGN
During the year, your Company was granted Trade Mark registration of
symbol and word "CANVIRONMENT" under Trade Marks Act, 1999, by the
Trade Marks Registry, Delhi. Your Company was also granted Design
registration of "SHAPED CAN" under the Design Act, 2000, by the
Controller General of Patents, Designs and Trade Marks, Kolkata.
Your Company was also granted Design registration of "CAN OVERCAP WITH
DIMPLES" under the Design Act, 2000, by the Controlled General of
Patents, Designs and Trade Marks, Kolkata in June, 2012.
JOINT VENTURE
As you are aware of that your Company entered into a joint venture
Agreement (JV) on 01st August, 2006 with Rexam Beverage Can (India
Holdings) Limited, U.K. a Rexam PLC, UK Group Company, the world leader
in two piece Beverage Cans. The JV, under the name and style of Rexam
HTW Beverage Can (India) Limited, is first of its kind in India and it
would benefit from the synergies of the JV Partners especially the
technical and global best practices brought in by Rexam and the
established capabilities of Hindustan Tin Works Limited in the domestic
market. The JV is established to manufacture, distribute and market two
piece cans and this would provide a strategic advantage to the JV and
its Partners. The JV Company has received very good response from the
market.
As informed to you last year, the JV Partners decided to build a new
high speed aluminum beverage can manufacturing line with capacity of
850 million cans p.a. and involving capital outlay of approx. Rs. 200
crores at its current site in Taloja which is in progress and the
commercial production is expected to be commenced by end of August
2012.
DIRECTORS
In terms of the provisions of Section 255 & 256 of the Companies Act,
1956 and Articles of Association of the Company. Mr. B. L. Khurana and
Mr. M. K. Zutshi retire at the ensuing Annual General Meeting and being
eligible, have offered themselves for re-appointment.
Mr. Manoj Jain, Whole Time Director, had resigned from the Board w.e.f.
12th August, 2011 and at his place Mr. P P Singh was appointed as a
Whole Time Director of the Company by the Board in its meeting held on
12th August, 2011.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956 with respect to directors' responsibility statement, it is
hereby confirmed that: -
(a) In the preparation of Annual Accounts, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures, if any.
(b) We 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 financial year 2011-2012 and of the profit of
the company for that period.
(c) We 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 any possible fraud and other irregularities.
(d) We have prepared accounts on going concern basis.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A report in the form of Management Discussion and Analysis pursuant to
Clause 49 of the Listing Agreement, as a part of this report is annexed
hereto as Annexure - I.
FIXED DEPOSITS
During the year under review, the company has not accepted any deposit
under Section 58A of the Companies Act, 1956 read with Companies
(Acceptance of Deposits) Rules, 1975.
CORPORATE GOVERNANCE
A report on Corporate Governance, along with a certificate from the
Statutory Auditors of the Company detailing the compliance of Corporate
Governance norms as enumerated in clause 49 of the listing agreements
with the Stock Exchanges, is annexed as Annexure - II.
CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGERIAL PERSONNEL
The Company has laid down a code of conduct for the Board Members and
Senior Managerial Personnel of the Company. All Board Members and
Senior Managerial Personnel have affirmed compliance with the Code of
Conduct for the year 2011-2012. A declaration by Mr. Sanjay Bhatia,
Managing Director, as to the compliance of the Code of Conduct by the
Board Members and Senior Managerial personnel has been placed before
the Board at its meeting held on 09th August, 2012, is enclosed as
Annexure-III.
DISCLOSURES
The CEO and Chief Financial Officer (CFO) have furnished to the board
in its meeting held on 09th August, 2012, a certificate with regard to
the financial statements and other matters of the Company as on 31st
March 2012 as required under clause 49 of the listing agreement.
No material penalty or stricture was imposed on the Company by any
statutory authority for non-compliance on matter related to capital
markets, during the last three years.
The Company is complying with all the mandatory requirements of the
Listing agreement of Stock Exchanges on 'Corporate Governance'.
AUDITORS
M/s M. L. Puri & Co., Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of the forthcoming Annual
General Meeting and being eligible offer themselves for re-appointment.
The Company has received intimation to the effect that their
re-appointment, if made would be within the prescribed limits under
Section 224 (1-B) of the Companies Act, 1956 and also that they are not
otherwise disqualified within the meaning of Sub-Section (3) of Section
226 of the Companies Act, 1956, for such appointment.
COST AUDITORS
The notification no. 52/26/CAB-2010 dtd. 30th June 2011, issued by the
Ministry of Corporate Affairs made the audit of cost accounts
compulsory relating to steel under chapter 72 and 73 of the Central
Excise Tariff Act, 1985 in respect of each of its financial year
commencing on or after 1st April 2011. Thus as per the above stated
requirement of Central Government and pursuant to section 233B of the
Companies Act, 1956, your company has appointed M/s K.S Bhatnagar &
Associates, Cost Accountants as Cost Auditors to audit the cost
accounts of the Company for the financial year 2011-12 and 2012-13.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Your company believes in formulating adequate and effective internal
control system and implementing the same to ensure that assets and
interests of the Company are safeguarded and reliability of accounting
data and accuracy are ensured with proper checks and balances. The
internal control system is improved continuously to meet the changes in
business conditions and statutory and accounting requirements as
required from time to time.
The Audit Committee of the Board of Directors actively reviews the
adequacy and effectiveness of internal control system and suggests
improvements for strengthening them. The Company has a robust
Management information system which is an integral part of the control
mechanism.
The Audit Committee of Board of Directors, Statutory Auditors and the
Business Heads are periodically apprised of the internal audit findings
and corrective actions taken.
PERSONNEL
Particulars of employees as required under Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particular of Employees)
Rules, 1975 as amended, is not provided as there are no employees
covered under it.
PARTICULARS IN RESPECT OF CONSERVATION OF ENERGY, TECHNOLOGY AND
FOREIGN EXCHANGE EARNINGS AND OUTGO.
The information in accordance with the provisions of Clause (e) of
Sub-Section (1) of Section 217 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 the Directors' Report for
the year ended 31st March, 2012 is given in Annexure - IV.
ACKNOWLEDGEMENT
The Board wishes to place on record with deep sense of satisfaction,
their appreciation for the high degree of professionalism, commitment
and dedication displayed by employees at all levels and the guidance,
co- operation and assistance extended to the Company by its Bankers,
Shareholders, Customers and Suppliers.
For & on behalf of Board
Place : New Delhi (VIJAY KUMAR BHATIA)
Date : 09th August, 2012 Chairman
Mar 31, 2011
Dear Shareholders,
The Directors have great pleasure in presenting the 53rd Annual Report
together with the Audited Annual Accounts of the Company for the
financial year ending 31st March 2011.
FINANCIAL RESULTS
The performance of the company for the financial year ended 31st March,
2011 is summarized below:
(Rupees in Lacs)
2010-2011 2009-2010
Profit before Interest,
Depreciation, & Tax 3044.24 2945.40
Less: Financial Charges 914.22 800.35
Depreciation 415.73 372.29
Provision for Tax (including Wealth Tax) 522.80 515.55
Deferred Tax 63.67 111.46
Profit after Tax 1127.82 1145.75
Add: Balance brought forward 2891.21 2090.87
Balance available for appropriation 4019.03 3236.62
Less: Appropriations :
Dividend (Incl. Div. Tax) 169.78 230.41
Transfer to General Reserve 110.00 115.00
Balance carried forward 3739.25 2891.21
DIVIDEND
Your Directors are pleased to recommend a dividend @ Rs. 1.40 per
Equity Share ( 14 %) on the paid up capital of the Company for the year
2010-11, which if approved at the forthcoming AGM, will be paid to all
those Equity Shareholders whose names appear (i) As Beneficial Owners
as at the end of the business hours on 16th September, 2011 as per the
list to be furnished by the depository in respect of the shares held in
electronic form and, (ii) As member in the Register of Members of the
Company after giving effect to all valid shares transfers in physical
form lodged with the Company on or before 16th September, 2011.
OPERATIONS
Your Company has achieved a turnover of Rs. 29478.43 lacs as against
the previous year's turnover of Rs. 28485.84 lacs i.e. an increase of
Rs. 992.59 lacs. The Company has been successful in increasing its
export sales from Rs. 4436.79 lacs in previous year to Rs. 5930.75 lacs
in current year i.e. an increase of Rs.1493.96 lacs.
JOINT VENTURE
As you are aware of that your Company entered into a joint venture
Agreement (JV) on 01st August, 2006 with Rexam Beverage Can (India
Holdings) Limited, U.K. a Rexam PLC, UK Group Company, the world leader
in two piece Beverage Cans and also entered into other allied
agreements. The JV, under the name and style of Rexam HTW Beverage Can
(India) Limited, is first of its kind in India and it would benefit
from the synergies of the JV Partners especially the technical and
global best practices brought in by Rexam and the established
capabilities of Hindustan Tin Works Limited in the domestic market. The
JV is established to manufacture, distribute and market two piece cans
and this would provide a strategic advantage to the JV and its
Partners. The JV Company has received very good response from the
market.
The JV Partners decide to build a new high speed beverage can
manufacturing line at its current site in Taloja. In order to meet the
financial requirements of the JV, it is proposed to induct equity of
Rs. 135 crores. For maintaining same level of 15%, your Company will
have to contribute a huge investment. In view of the Company's fund
position and its own growth plans, it is decided by the management not
to invest any additional funds in JVC at this stage and thus Rexam (JV
partner) will contribute the whole amount due to which your Company's
share will be reduced to 2.09% from existing 15%. However your Company
has a claw back right to go back to existing position by 31st March,
2015.
DIRECTORS
In terms of the provisions of Section 255 & 256 of the Companies Act,
1956 and Articles of Association of the Company. Mr. N. P. Sahni and
Mr. Deepak Pahwa retire at the ensuing Annual General Meeting and being
eligible, have offered themselves for re-appointment.
Mr. Manoj Jain, Whole Time Director, had resigned from the Board w.e.f.
12th August, 2011 and at his place Mr. P. P. Singh was appointed as a
Whole Time Director of the Company by the Board in its meeting held on
12th August, 2011.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956 with respect to directors' responsibility statement, it is
hereby confirmed that: -
(a) In the preparation of Annual Accounts, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures, if any.
(b) We 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 financial year 2010-2011 and of the profit of
the company for that period.
(c) We 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 any possible fraud and other irregularities.
(d) We have prepared accounts on going concern basis.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A report in the form of Management Discussion and Analysis pursuant to
Clause 49 of the Listing Agreement, as a part of this report is annexed
hereto as Annexure - I.
FIXED DEPOSITS
During the year under review, the company has not accepted any deposit
under Section 58A of the Companies Act, 1956 read with Companies
(Acceptance of Deposits) Rules, 1975.
CORPORATE GOVERNANCE
A report on Corporate Governance, along with a certificate from the
Statutory Auditors of the Company detailing the compliance of Corporate
Governance norms as enumerated in clause 49 of the listing agreements
with the Stock Exchanges, is annexed as Annexure - II.
CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGERIAL PERSONNEL
The Company has laid down a code of conduct for the Board Members and
Senior Managerial Personnel of the Company. All Board Members and
Senior Managerial Personnel have affirmed compliance with the Code of
Conduct for the year 2010-2011. A declaration by Mr. Sanjay Bhatia,
Managing Director, as to the compliance of the Code of Conduct by the
Board Members and Senior Managerial personnel has been placed before
the Board at its meeting held on 12th August, 2011, is enclosed as
Annexure-III.
DISCLOSURES
The CEO and Chief Financial Officer (CFO) have furnished to the board
in its meeting held on 12th August, 2011, a certificate with regard to
the financial statements and other matters of the Company as on 31st
March 2011 as required under clause 49 of the listing agreement.
No material penalty or stricture was imposed on the Company by any
statutory authority for non-compliance on matter related to capital
markets, during the last three years.
The Company is complying with all the mandatory requirements of the
Listing agreement of Stock Exchanges on 'Corporate Governance'.
AUDITORS
M/s M. L. Puri & Co., Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of the forthcoming Annual
General Meeting and being eligible offer themselves for re-appointment.
The Company has received intimation to the effect that their
re-appointment, if made would be within the prescribed limits under
Section 224 (1-B) of the Companies Act, 1956 and also that they are not
otherwise disqualified within the meaning of Sub-Section (3) of Section
226 of the Companies Act, 1956, for such appointment.
PERSONNEL
Particulars of employees as required under Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particular of Employees)
Rules, 1975 as amended, is not provided as there are no employees
covered under it.
PARTICULARS IN RESPECT OF CONSERVATION OF ENERGY, TECHNOLOGY AND
FOREIGN EXCHANGE EARNINGS AND OUTGO.
The information in accordance with the provisions of Clause (e) of
Sub-Section (1) of Section 217 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 the Directors' Report for
the year ended 31st March, 2011 is given in Annexure - IV.
ACKNOWLEDGEMENT
The Board wishes to place on record with deep sense of satisfaction,
their appreciation for the high degree of professionalism, commitment
and dedication displayed by employees at all levels and the guidance,
co- operation and assistance extended to the Company by its Bankers,
Shareholders, Customers and Suppliers.
For & on behalf of Board
Place : New Delhi (VIJAY KUMAR BHATIA)
Date : 12th August, 2011 Chairman
Mar 31, 2010
The Directors have great pleasure in presenting the 52nd Annual Report
together with the Audited Annual Accounts of the Company for the
financial year ending 31 st March 2010.
FINANCIAL RESULTS
The performance of the company for the financial year ended 31 st
March, 2010 is summarized below:
(Rupees in Lacs)
2009-2010 2008-2009
Profit before Interest, Depreciation,
& Tax 2945.40 2385.42
Less: Financial Charges 800.35 989.04
Depreciation 372.29 289.92
Provision for Tax (including FBT and
Wealth Tax) 515.55 419.65
Deferred Tax 111.46 18.30
Profit after Tax 1145.75 668.51
Add: Balance brought forward 2090.87 1689.20
Balance available for appropriation 3236.62 2357.71
Less: Appropriations:
Dividend (Incl. Div. Tax) 230.41 206.84
Transfer to General Reserve 115.00 60.00
Balance carried forward 2891.21 2090.87
DIVIDEND
The Board has already declared an interim dividend @ Rs. 1.00, per
Equity Share (10%) in the Board Meeting held on 27th May, 2010 for the
financial Year 2009-10. Your Directors are pleased to recommend a
further dividend @ Rs. 0.90 per Equity Share (9%) on the paid up
capital of the Company for the year 2009-10, the final dividend,
together with the Interim Dividend, will make the total dividend of Rs.
1.90 per Equity Share (19 %) in respect of the financial year 2009-10.
If approved at the forthcoming AGM, the amount of further dividend will
be paid to all those Equity Shareholders whose names appear (i) As
Beneficial Owners as at the end of the business hours on 20th
September, 2010 as per the list to be furnished by the depository in
respect of the shares held in electronic from and, (ii) As member in
the Register of Members of the Company after giving effect to all valid
shares transfers in physical form lodged with the Company on or before
20th September, 2010.
OPERATIONS
Your Company has achieved a turnover of Rs. 28485.84 lacs as against
the previous years turnover of Rs. 24434.16 lacs i.e. an increase of
Rs. 4051.68 lacs. The Company has been successful in increasing its
export sales from Rs. 3682.68 lacs in previous year to Rs. 4436.79 lacs
in current year i.e. an increase of Rs. 754.11 lacs.
JOINT VENTURE
As you are aware of that your Company entered into a joint venture
Agreement (JV) on 01 st August, 2006 with Rexam Beverage Can (India
Holdings) Limited, U.K. a Rexam PLC, UK Group Company, the world leader
in two piece Beverage Cans and also entered into other allied
agreements. The JV, under the name and style of Rexam HTW Beverage Can
(India) Limited, is first of its kind in India and it would benefit
from the synergies of the JV Partners especially the technical and
global best practices brought in by Rexam and the established
capabilities of Hindustan Tin Works Limited in the domestic market. The
JV is established to manufacture,
distribute and market two piece cans and this would provide a strategic
advantage to the JV and its Partners. The JV Company has received very
good response from the market. The JV Company is under the process of
updating its capacity to over 400 million cans per annum which is
expected to be completed by next year.
In order to meet the financial requirements of the JV, it was proposed
to induct equity of around Rs. 75 crores. For maintaining same level
of 49%, your Company had to contribute a huge investment. In view of
the Companys fund position and its own growth plans, it was decided by
the management not to invest any additional funds in JVC at this stage
and thus Rexam (JV partner) had contributed the whole amount due to
which your Companys share was reduced to 15%.
DIRECTORS
In terms of the provisions of Section 255 & 256 of the Companies Act,
1956 and Articles of Association of the Company. Mr. Ramesh Kumar Jain
and Mr. M. K. Zutshi retire at the ensuing Annual General Meeting and
being eligible, have offered themselves for re-appointment.
Mr. Sudhir Sachdeva had resigned from the Board w.e.f. 30th July, 2009
and at his place Mr. Deepak Pahwa was appointed as an additional
Director by the Board in its meeting held on 30th July, 2009. His
appointment was affirmed by the shareholders in the Annual General
Meeting of the Company held on 25th September, 2009.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 21 7 (2AA) of the Companies
Act, 1956 with respect to directors responsibility statement, it is
hereby confirmed that: -
(a) In the preparation of Annual Accounts, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures, if any.
(b) We 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 financial year 2009-2010 and of the profit of
the company for that period.
(c) We 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 any possible fraud and other irregularities.
(d) We have prepared accounts on going concern basis.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A report in the form of Management Discussion and Analysis pursuant to
Clause 49 of the Listing Agreement, as a part of this report is annexed
hereto as Annexure -1.
FIXED DEPOSITS
During the year under review, the company has not accepted any deposit
under Section 58A of the Companies Act, 1956 read with Companies
(Acceptance of Deposits) Rules, 1975.
CORPORATE GOVERNANCE
A report on Corporate Governance, along with a certificate from the
Statutory Auditors of the Company detailing the compliance of Corporate
Governance norms as enumerated in clause 49 of the listing agreements
with the Stock Exchanges, is annexed as Annexure - II.
CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGERIAL PERSONNEL
The Company has laid down a code of conduct for the Board Members and
Senior Managerial Personnel of the Company. All Board Members and
Senior Managerial Personnel have affirmed compliance with the Code of
Conduct for the year 2009-2010. A declaration by Mr. Sanjay Bhatia,
Managing Director, as to the compliance of the Code of Conduct by the
Board Members and Senior Managerial personnel has been placed before
the Board at its meeting held on 4th August, 2010, is enclosed as
Annexure-lll.
DISCLOSURES
The CEO and Chief Financial Officer (CFO) have furnished to the board
in its meeting held on 4th August, 2010, a certificate with regard to
the financial statements and other matters of the Company as on 31 st
March 2010 as required under clause 49 of the listing agreement.
No penalty or stricture was imposed on the Company by any statutory
authority for non-compliance on matter related to capital markets,
during the last three years.
The Company is complying with all the mandatory requirements of the
Listing agreement of Stock Exchanges on Corporate Governance.
AUDITORS
M/s.M. L. Puri & Co., Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of the forthcoming Annual
General Meeting and being eligible offer themselves for re-appointment.
The Company has received intimation to the effect that their
re-appointment, if made would be within the prescribed limits under
Section 224 (1 -B) of the Companies Act, 1956 and also that they are
not otherwise disqualified within the meaning of Sub-Section (3) of
Section 226 of the Companies Act, 1956, for such appointment.
PERSONNEL
Particulars of employees as required under Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particular of Employees)
Rules, 1975 as amended, are set out below.
Employee. Title/ Qualification Age Experience Joining Grdss Previous
Name Designation (Years) Date Remuneration
Employment
Rs.
and
Designation
Sanjay
Bhatia Managing B Com (Hons) 58 33 7th Aug
1992 36,
76,800/-
Since
1st
Oct, 1977
Director and LL.B as MD as CEO of
Hindustan
Tin Works
Limited
PARTICULARS IN RESPECT OF CONSERVATION OF ENERGY, TECHNOLOGY AND
FOREIGN EXCHANGE EARNINGS AND OUTGO.
The information in accordance with the provisions of Clause (e) of
Sub-Section (1) of Section 217 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 the Directors Report for
the year ended 31 st March, 2010 is given in Annexure - IV.
ACKNOWLEDGEMENT
The Board wishes to place on record with deep sense of satisfaction,
their appreciation for the high degree of professionalism, commitment
and dedication displayed by employees at all levels and the guidance,
co- operation and assistance extended to the Company by its Bankers,
Shareholders, Customers and Suppliers.
For & on behalf of Board
Place : New Delhi (SANJAY BHATIA)
Date : 4th August, 2010 Chairman & Managing Dire