Mar 31, 2018
The Directors have pleasure to present the Thirty-Sixth Annual Report and the Company''s Audited Financial Statement for the year ended 31st March, 2018.
The Company''s financial performance, for the year ended on 31st March, 2018 is summarized below:
FINANCIAL RESULTS |
(Rs. Crore) |
|
particulars |
Year ended on 31st March, 2018 |
Year ended on 31st March, 2017 |
Revenue from Operations |
3,573.86 |
4,271.45 |
Other Income |
125.80 |
136.42 |
Profit/(Loss)from the year before Finance cost, Depreciation and exceptional items |
238.94 |
389.67 |
Less : Finance Cost |
306.20 |
237.44 |
Less : Depreciation and Amortisation Expenses |
94.85 |
97.10 |
Profit / (Loss) Before Tax |
(162.11) |
55.13 |
Current Tax |
-- |
12.65 |
MAT Credit Entitlement |
-- |
(0.63) |
Deferred Tax |
(39.33) |
7.48 |
Profit / (Loss) for the year |
(122.78) |
35.63 |
Other Comprehensive Income |
(0.51) |
(0.88) |
Total Comprehensive Income for the year |
(123.29) |
34.75 |
DIVIDEND
The Company is facing liquidity crunch and also going through the process of restructuring with the lenders for the reduction of debt exposure of the Company. Hence, your Directors have not recommended dividend on equity shares of the Company for the year 2017-18.
However the dividend on the preference shares will be carried forward for payment in the next financial year.
The Board has approved and adopted the Dividend Distribution Policy and the same is available on the Company''s Website viz. www.jbfindia.com.
SHARE CAPITAL
The paid up Equity Share Capital as on 31st March, 2018 was Rs.81.87 Crore and Preference Share Capital as on 31st March, 2018 was Rs.14.91 Crore.
PERFORMANCE OF THE COMPANY
The Company''s revennue for FY 2017-18 was Rs.3,573.86 Crore as against Rs.4,271.45 Crore for the previous year, due to adverse market conditions and reduction in margins and also due to transitory adverse effect of rolling out the Goods and Service Tax (GST).
During the year, the Production of Polyster Chips came down to 413,281 MT, and Prodcution of POY & yarn was 292,823 MT.
DIRECTORS
In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Company''s Articles of Association, Mr. N. K. Shah, Director retire by rotation at the forthcoming Annual General Meeting and being eligible offer himself for reappointment.
The details of Directors resigned during the FY. 2017-18 are as follows
Sr. No. |
Name |
Resignation Date |
1 |
Mr. Prakash Mehta |
26th September, 2017 |
2 |
Mr. B R Gupta |
23rd November, 2017 |
3 |
Mr. Nikhil Srivastava |
8th December, 2017 |
4 |
Mr. V S Bapna |
8th December, 2017 |
5 |
Mrs. Veena Arya |
8th February, 2018 |
6 |
Mr. Sunil Diwakar |
9th March, 2018 |
The Company has appointed Mrs. Sangita V Chudiwala, as an Additional Independent Director on 29th November, 2017.
The Company has appointed Mr. Sharadchandra N Thakar as an Additional Independent Director on 13th April, 2018.
The Company has appointed Mr. Ravi A Dalmia as an Additional Independent Director on 4th June, 2018.
All Independent Directors have given declarations that they meet the criteria of Independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 16 (b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
BOARD EVALUATION
Pursuant to the provision of the Companies Act, 2013 and Regulation 4(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, a structured questionnaire was prepared after taking into consideration of various aspects of the Board''s functioning, composition of Board and its Committees, culture, execution and performance of specific duties, obligations and governance.
The performance evaluation of the Independent Directors was completed. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors. The Board of Directors expressed their satisfaction with the evaluation process.
BOARD COMMITTEES
As per the requirement of the Companies Act, 2013 and of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, the Board of Directors of the Company has Six Committees namely Audit Committee, Stakeholders Relationship Committee, Risk Management Committee, Nomination and Remuneration Committee, Corporate Social Responsibility Committee and Finance Committee.
The details of the constitution of the Committees and the meetings held during the financial year 2017-18 are included in the Corporate Governance Report forming part of Annual Report.
KEY MANAGERIAL PERSONNEL
Following are the Key Managerial Personnel of the Company:
Sr. No. |
Name of the Person |
Designation |
1 |
Mr. Bhagirath C. Arya |
Executive Chairman |
2 |
Mr. Rakesh Gothi |
CEO & Managing Director |
3 |
Mr. N. K. Shah |
Director - Commercial |
4 |
Mrs. Ujjwala Apte |
Company Secretary |
5 |
Mr. Ajay Kumar Agrawal Upto 23.05.2018 |
Chief Financial Officer |
Mr. Arun Shah has been appointed as Chief Financial Officer of the Company with effect from 4th June, 2018.
NUMBER OF MEETINGS OF THE BOARD & AUDIT COMMITTEE
During the year Four Board Meetings and Four Audit Committee Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013 and relevant provisions of LODR 2015 of SEBI.
SUBSIDIARIES
Company has overseas subsidiary under the name and style JBF Global Pte Ltd at Singapore, which has subsidiaries, namely JBF Petrochemicals Ltd at Mangalore, India, JBF Trade Invest Pte Ltd at Singapore, and JBF RAK LLC, at U.A.E with its own subsidiaries, JBF Bahrain S.PC at Bahrain, JBF Global Europe BVBA at Belgium and JBF America Inc, at America.
Foreign subsidiaries of the Company are considering the sale or reorganisation of the structure. Hence their financial statements are not consolidated in the financial report of the Company.
EXPLANATION/COMMENTS ON AUDIT QUALIFICATIONS
1. The company''s Business as a going concern :
The company''s business and the liability undertaken has resulted into a mismatch of cash flow. Under the circumstances, the company has requested the lenders to reschedule the repayment programme which does not involve any haircut of principal or interest. The company has projected its business with normally accepted business risk on the basis of concern and has evaluated the same by taking services of professional investment bankers. Based on the advises received, the company has forwarded an application to its lead bank for considering the debt resolution plan.
The company believes that the resolution plan submitted is in line with the guideline given by Reserve Bank of India and the practices followed by Industry and lenders under the given circumstances. The company has also undertaken to procure further equity and monetize the loan overdue nonco assets. This further fund raising is a critical part of the resolution plan submitted.
While discussion on the overall resolution plan is in progress, few lenders have, after the date of balance sheet, recalled the loans in view of the company''s inability to meet with the contractual obligations. The company has also placed its operations under monitoring as advised by the lead bank and earmark the agreed percentage for debt servicing in the interim. The lenders sending the recall notice have ignored the interim measure.
While the company is hopeful of the resolution as proposed, in the event of the lender opting for alternate recovery mechanism, the company''s operations could face long term and irreversible damages seriously impairing the going concern aspects of the enterprise.
Under the circumstances where the resolution plan is under active consideration, the accounts are prepared on the basis of going concern and assuming that the resolution plan proposed with desired modification will be implemented.
2. Receivables (Trade Receivables, ICDs and others)
The company has examined all their receivables in the form of trade debtors, loans and advances. In view of several factors including but not limited to the economic factors, the company has not been able to recover the dues as per stipulated terms and conditions. The Management has segregated the dues with respect to age, further business claims, counter claims etc. In view of age in the condemn of the total receivable, the Management has created a special cell under supervision of a Senior Executive for recovery / resolution of this amount. The management has decided to take such legal steps or compromise as may be necessary in the interest of safeguarding the assets of the company.
While the total amount involved is less than a fraction of the turn over for the period, the absolute amount involved is significant and hence a policy has been laid down in this regard
3. Payable (Claims for Discounts)
The company''s major raw-material is procured from a few identified suppliers with global bench mark. In view of the large volume that the company procures, the company is entitled to volume discounts and in some cases the quality discount. The accumulated claim which has not yet been settled has been brought under the focus of the special management cell reported herein above.
4. Subsidaries Exposure
Company has exposure in subsidiaries by way of investments, loans and other receivables aggregating to Rs. 1430.54 Crores. No exercise is undertaken to determine impairment, if any.
5. The company has proposed a resolution to enable the Board of Directors to borrow such sums as may be necessary for its business.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report on the operations of the Company, as required under SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015 is provided in a separate section and forms an integral part of this Report.
CORPORATE GOVERNANCE
As per Regulations 34 (3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, a separate section on corporate governance practices followed by the Company (including disclosures prescribed under Section II of Part II of Schedule V of the Companies Act, 2013), together with a certificate from the Company''s Auditors on compliance forms an integral part of this report.
BUSINESS RESPONSIBILITY REPORT
The Business Responsibility Report as per Regulation 34(2) of SEBI (Listing Obligations and Disclosure requirement) Regulations, 2015, is annexed as Annexure No. I and forms an integral part of the Report.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT-9, as required under Section 92 of the Companies Act, 2013, is included in this Report as Annexure No. II and forms an integral part of this Report.
CORPORATE SOCIAL RESPONSIBILITY
As a part of its initiative under the "Corporate Social Responsibility" (CSR) drive, the Company has undertaken projects in the area of rural development.
The disclosures required under section 135 of the Companies Act, 2013, read with the rule 8(1) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 are given in Annexure No. III to Directors'' Report.
DISCLOSURE UNDER RULE 5 OF THE COMPANIES (APPOINTMENT AND REMUNERATION) RULES, 2014
The information required pursuant to Section 197 read with rule 5(1) of the Companies (Appointment and Remuneration) Rules, 2014 in respect of employees of the Company and Directors is enclosed in the Annual Report.
The statement containing particulars of remuneration of employees as required under Section 197(12) of the Act, read with Rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is given in an annexure to the Annual Report. In terms of Section 136(1) of the Act, the Annual Report is being sent to the Members excluding the aforesaid annexure. However, this annexure shall be made available on the website of the Company twenty one days prior to the date of the Annual General Meeting (AGM). The information is also available for inspection by the Members at the Registered Office of the Company during business hours on all working days except Saturdays and Sundays. Any Member desirous of obtaining a copy of the said annexure may write to the Company Secretary and the same will be furnished on request.
COMPANY POLICIES:
The company has formulated various policies which are available on our website : www.jbfindia.com
Nomination and Remuneration Policy
The Company has formed Nomination and Remuneration Committee and framed the Remuneration Policy. The Committee has been given responsibility of appointment and re-appointment of Whole-time Director, Directors, Key Managerial Persons and the specified employees / executives of the Company and approving their remuneration based on their qualification experience and responsibility in the Company.
The salient features of Remuneration policy are included in Corporate Governance Report forming part of this annual report.
Risk Management Policy
As a good governance practice, the Company has constituted Risk Management Committee. The Company has a Risk Management Policy and team evaluate business risks.
The Board of Directors regularly reviews risk and threats in the business and takes suitable steps to safeguard Company''s interest.
Related Party Transactions Policy
As per statutory requirement the Company has framed related party transcation policy. As a policy all Related Party Transactions including sale and purchase entered into with Subsidiary Companies, if any, are placed before the Audit Committee and also before the Board for approval. Omnibus approval was obtained on a quarterly / annual basis for such transactions which are of repetitive nature.
There are no material related party transactions during the year under review with the Promoters, Directors or Key Managerial Personnel. The Company has also formulated policy on materiality of Related Party Transactions.
Whistle Blower Policy
A whistle blower policy in terms of the Listing Regulations includes Ethics & Compliance for senior executives of the Company. It also includes vigil mechanism. Confidential disclosures can be made by whistle blower through an e-mail, or a letter to the Committee member or to the Chairman of the Audit Committee.
The efforts is taken to accept the observations of the whistle blower and the action are taken accordingly.
Prevention of Sexual Harassment at Workplace Policy and Preservstion of Documents Policy
The company has also constituted prevention of sexual harassment at work place policy and preservation of documents policy. Separate Management Teams are appointed to review periodically at different locations of the Company. These policies are also available on website of the Company.
FOREIGN EXCHANGE EARNING AND OUTGO
Foreign exchange earning by way of export and Freight were Rs. 800.21 Crore against outgo of Rs. 253.32 Crore on import of raw materails, stores, spares & consumables and RS. 0.10 Crore of foreign exchange was invested in import of capital equipments for the growth of the company.
FIXED DEPOSITS
During the year Company has not accepted any Fixed Deposits and as such, no amount of principal or interest on account of Fixed Deposits is outstanding as on the date of Balance Sheet.
PARTICULARS OF LOAN, GAURANTEES OR INVESTMENTS BY COMPANY
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to Financial Statements (refer Note no.41)
INSURANCE
All the properties of the Company including buildings, plant and machinery and stock have been adequately insured.
DIRECTORS'' RESPONSIBILITY STATEMENT
To the best of knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statement in terms of Section 134(3) (c) of the Companies Act, 2013:
i. that in the preparation of the Annual Accounts for the year ended 31st March, 2018, the applicable Indian Accounting Standards (IND-AS) have been followed along with proper explanation relating to material departures, if any;
ii. the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018 and of the profit of the Company for the year ended on that date;
iii. that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. the annual accounts have been prepared on a going concern basis;
v. that the Directors 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
vi. that the Directors had devised proper systems were adequate and operating effectively.
COMPLIANCE WITH SECRETARIAL STANDARDS
The Board has devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems are adequate and operating effectively.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and rules made hereunder, the Company has appointed M/s. Jagdish Patel & Co., a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is included as and forms an integral part of this Report.
STATUTORY AUDIT
The Board of Directors of the Company has appointed M/s. Pathak H D & Associates, Chartered Accountants, Mumbai (Registration No. 107783W) as the Statutory Auditors of the Company for three years pursuant to Section 139 of the Companies Act, 2013.
Accordingly, the Board seeks approval of Shareholders of the company for the appointment of Statutory Auditors as mentioned in the notice of the Annual General Meeting.
COST AUDIT
The Board of Directors has approved appointment of Ms. Devashree P. Vijayakar, Cost Accountant as the Cost Auditor of the Company to conduct cost audit and give report for the year 2018-19. The notice of Annual General Meeting includes the resolution to obtain consent of the shareholders.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant and material orders passed by the Regulators/ Courts that would impact the going concern status of the Company and its future operations.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has an effective internal control and risk-mitigation system, which are assessed and strengthened with new/revised standard operating procedures. The Company''s internal control system is commensurate with its size, scale and complexities of its operations. The internal audit is entrusted to M/s. Bhuwania & Agrawal Associates. Every quarter internal audit report is placed before the Audit Committee and the Audit Committee of the Directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same.
ENVIRONMENT AND SAFETY
The Company has constituted Committee for prevention of sexual harassment at work place with a mechanism of lodging complaints. During the year under review no complaints were reported to the Board.
ACKNOWLEDGEMENT
The Board of Directors would like to express their grateful appreciation for the assistance, support and co-operation received from the Financial Institutions, Banks, Government Authorities and Shareholders during the year under review.
The employees of the Company contributed significantly in achieving the results. The Directors take this opportunity of thanking them and hope that they will maintain their commitment to excellence in the years to come.
For and on behalf of the Board of Directors
RAKESH GOTHI
Managing Director
DIN-00229302
NILESH KANTILAL SHAH
Place : Mumbai Director
Date : 20th June, 2018 (DIN 00232130)
Mar 31, 2017
DEAR SHAREHOLDERS,
The Directors have pleasure to present the Thirty-Fifth Annual Report and the Company''s Audited Financial Statement for the year ended 31st March, 2017.
As mandated by the Ministry of Corporate Affairs, the Company has adopted the IND AS for the Financial Year commencing from April 1, 2016. The Company''s financial performance, for the year ended on 31st March, 2017 is summarized below :
FINANCIAL RESULTS
(Rs, Crore)
particulars |
March 31,2017 |
March 31,2016 |
Revenue from Operations |
4,271.45 |
3,939.94 |
Other Income |
136.42 |
85.92 |
Profit for the year before Finance cost, Depreciation and exceptional items |
389.67 |
433.50 |
Less : Finance Cost |
237.44 |
237.18 |
Less : Depreciation & Amortization Expenses |
97.10 |
100.56 |
Profit Before Tax |
55.13 |
95.76 |
Current Tax |
12.65 |
29.64 |
MAT Credit Entitlement |
(0.63) |
-- |
Deferred Tax |
7.48 |
4.39 |
profit for the year |
35.63 |
61.73 |
Other Comprehensive Income |
(0.88) |
(1.19) |
Total Comprehensive Income for the year |
34.75 |
60.54 |
DIVIDEND
The Board of Directors has recommended dividend of Rs, 1 (Rupee One Only) per share (@ 10%) on equity share of Face Value of Rs, 10/- each. Dividend will be paid to eligible equity shareholders, if approved by the members at the Annual General Meeting.
As per the terms and conditions of Bank of India, dividend will be paid @ 2.5% per annum to Preference Shareholders holding 75709 Cumulative Redeemable Preference Shares of 1100 each and dividend will be paid @ 20% per annum to Preference Shareholders for 1415000 Cumulative Redeemable Preference Shares of Rs, 100 each.
The Board has approved and adopted the Dividend Distribution Policy and the same is available on the Company''s Website viz. www.jbfindia.com.
SHARE CAPITAL
The paid up Equity Share Capital as on 31st March, 2017 was Rs, 81.87 Crore and Preference Share Capital as on 31st March, 2017 was Rs, 14.91 Crore.
performance of the company
Profit before tax of the Company decreased from Rs, 95.76 Crore in 2015-16 to Rs, 55.13 Crore in 2016-17 reflecting an decrease of 42.43%.
Profit after tax of the Company decreased from X 61.73 Crore in 2015-16 to Rs, 35.63 Crore in 2016-17 reflecting an decrease of 42.28%.
The production of Polyester Chips increased from 506817 MT in 2015-16 to 543438 MT in 2016-17, production of POY & Yarn increased from 293703 MT in 2015-16 to 308676 MT in 2016-17.
directors
In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Company''s Articles of Association, Mr. Rakesh Gothi and Mrs. Veena Arya, Directors retire by rotation at the forthcoming Annual General Meeting and being eligible offer themselves for reappointment.
Mr. B. A. Prabhakar, resigned on 9th March, 2017 and Company is under process of appointing Independent Director in his place.
All Independent Directors have given declarations that they meet the criteria of Independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 16 (b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
BOARD EVALUATION
Pursuant to the provision of the Companies Act, 2013 and Regulation 4(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, a structured questionnaire was prepared after taking into consideration of various aspects of the Board''s functioning, composition of Board and its Committees, culture, execution and performance of specific duties, obligations and governance.
The performance evaluation of the Independent Directors was completed. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors. The Board of Directors expressed their satisfaction with the evaluation process.
BOARD COMMITTEES
As per the requirement of the Companies Act, 2013 and of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, the Board of Directors of the Company has 6 Committees namely Audit Committee, Stakeholders Relationship Committee, Risk Management Committee, Nomination and Remuneration Committee, Corporate Social Responsibility Committee and Finance Committee.
The details of the constitution of the Committees and the meetings held during the financial year 2016-17 are included in the Corporate Governance Report forming part of Annual Report.
NUMBER OF MEETINGS OF THE BOARD & AUDIT COMMITTEE
During the year Six Board Meetings and Six Audit Committee Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013 and relevant provisions of LODR 2015 of SEBI.
KEY Managerial PERSONNEL
Following are the Key Managerial Personnel of the Company :
Sr. No. |
Name of the person |
Designation |
1 |
Mr. Bhagirath C Arya |
Executive Chairman |
2 |
Mr. Rakesh Gothi |
CEO & Managing Director |
3 |
Mr. N. K. Shah |
Director - Commercial |
4 |
Mrs. Ujjwala Apte |
Company Secretary |
5 |
Mr. Ajay Kumar Agrawal (appointed w.e.f. 01.06.2016) |
Chief Financial Officer |
SUBSIDIARIES
Company has overseas subsidiary under the name and style JBF Global Pte Ltd at Singapore, which has subsidiaries, namely JBF Petrochemicals Ltd at Mangalore, India, JBF Trade Invest Pte Ltd at Singapore, JBF Bio Glicols Industria Quimica Ltda, at Brazil and JBF RAK LLC, at U.A.E with its own subsidiaries, JBF Bahrain S.PC at Bahrain, JBF Global Europe BVBA at Belgium and JBF America Inc, at America.
In accordance with the general circular issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Statement of Profit and Loss and other documents of the subsidiary companies are not being attached with the Balance Sheet of the Company. In accordance with the
Indian Accounting Standard (IND-AS), the audited Consolidated Financial Statements including the Financial information of the Subsidiary Companies are provided in the Annual Report.
The annual accounts of the Subsidiary Companies will be available at the Registered and Corporate Office of the Company and on the website of the company.
MANAGEMENT DISCUSSIQN AND ANALYSIS
The Management Discussion and Analysis Report on the operations of the Company, as required under SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015 is provided in a separate section and forms an integral part of this Report.
corporate governance
As per Regulations 34 (3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, a separate section on corporate governance practices followed by the Company, together with a certificate from the Company''s Auditors on compliance forms an integral part of this report.
BUSINESS RESPQNSIBILITY REPORT
The Business Responsibility Report as required by Regulation 34(2) of SEBI (Listing Obligations and Disclosure requirement) Regulations, 2015, is annexed as Annexure No.I and forms an integral part of the Report.
EXTRACT QF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT-9, as required under Section 92 of the Companies Act, 2013, is included in this Report as Annexure No.II and forms an integral part of this Report.
corporate social responsibility
As a part of its initiative under the "Corporate Social Responsibility" (CSR) drive, the Company has undertaken projects in the area of rural development.
The disclosures required under section 135 of the Companies Act, 2013, read with the rule 8(1) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 are given in Annexure No. III to Directors'' Report.
DISCLOSURE UNDER RULE 5(1) QF THE COMPANIES (APPQINTMENT AND REMUNERATION), RULES, 2014
The information required pursuant to Section 197 read with rule 5(1) of the Companies (Appointment and Remuneration) Rules, 2014 in respect of employees of the Company and Directors is enclosed in the Annual Report.
company policies :
The company has formulated various policies which are available on our website : www.jbfindia.com
Nomination and Remuneration policy
The Company has formed Nomination and Remuneration Committee and framed the Remuneration Policy. The Committee has been given responsibility of appointment and re-appointment of Whole-time Director, Directors, Key Managerial Persons and the specified employees / executives of the Company and approving their remuneration based on their qualification experience and responsibility in the Company.
The salient features of Remuneration policy are included in Corporate Governance Report forming part of this annual report.
Risk Management policy
As a good governance practice, the Company has constituted Risk Management Committee. The Company has a Risk Management Policy and team evaluate business risks.
The Board of Directors regularly reviews risk and threats in the business and takes suitable steps to safeguard Company''s interest.
Related party Transactions policy
As per statutory requirement the Company has framed related party transaction policy. As a policy all Related Party Transactions including sale and purchase entered into with Subsidiary Companies, if any, are placed before the Audit Committee and also before the Board for approval. Omnibus approval was obtained on a quarterly / annual basis for such transactions which are of repetitive nature.
There are no material related party transactions during the year under review with the Promoters, Directors or Key Managerial Personnel. The Company has also formulated policy on materiality of Related Party Transactions.
Whistle Blower policy
A whistle blower policy in terms of the Listing Regulations includes Ethics & Compliance for senior executives of the Company. It also includes vigil mechanism. Confidential disclosures can be made by whistle blower through an e-mail, or a letter to the Committee member or to the Chairman of the Audit Committee.
The efforts is taken to accept the observations of the whistle blower and the action are taken accordingly.
prevention of Sexual Harassment at Workplace policy and preservation of Documents policy
The company has also constituted prevention of sexual harassment at work place policy and preservation of documents policy. Separate Management Teams are appointed to review periodically at different locations of the Company. These policies are also available on website of the Company.
foreign exchange earning & outgo
Foreign Exchange earnings by way of exports and Freight were Rs, 1136.29 Crore against outgo of Rs, 959.93 Crore on import of raw materials, stores spares & consumables and Rs, 15.50 Crore of foreign exchange was invested in imported capital equipments for the growth of the Company.
FIXED DEPOSITS
During the year Company has not accepted any Fixed Deposits and as such, no amount of principal or interest on account of Fixed Deposits is outstanding as on the date of Balance Sheet.
particulars QF LOAN, GAURANTEES QR INVESTMENTS BY COMPANY
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to Financial Statements (Refer note no.41)
INSURANCE
All the properties of the Company including buildings, plant and machinery and stock have been adequately insured.
DIRECTORS'' RESPONSIBILITY STATEMENT
To the best of knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statement in terms of Section 134(3) (c) of the Companies Act, 2013:
i. that in the preparation of the Annual Accounts for the year ended 31st March, 2017, the applicable Indian Accounting Standards (IND-AS) have been followed along with proper explanation relating to material departures, if any;
ii. the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2017 and of the profit of the Company for the year ended on that date;
iii. that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv the annual accounts have been prepared on a going concern basis;
v. that the Directors 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
vi. that the Directors had devised proper systems were adequate and operating effectively.
consolidated financial statements
The Consolidated Financial Statements of the Company are prepared in accordance with relevant Indian Accounting Standards issued by the Institute of Chartered Accountants of India and forms an integral part of this Report.
Pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules, 2014, a statement containing salient features of the Financial Statements of Subsidiary/Associate Companies/ Joint Ventures is given in Form AOC-1 and forms an integral part this Report.
The Consolidated Financial Statements of the Company are prepared in accordance with relevant Indian Accounting Standards issued by the Institute of Chartered Accountants of India and forms a part of this Annual Report.
The Auditors of the Subsidiary Company in the Consolidated Financial Statements of that subsidiary, have reported in respect of its subsidiary, JBF RAK LLC (UAE), that:-
(i) Other Current financial assets as at 31st March, 2017 includes an amount of Rs, 642.41 Crore (Previous year Rs, 854.95 Crore) towards rebates receivable from suppliers. Management has accounted for these rebates receivable from suppliers based on management''s best estimate of the rebates amount due. They were unable to obtain sufficient evidence to ascertain the existence and recoverability of these rebates receivable from suppliers and, consequently, they were unable to determine whether any adjustments to these amounts are necessary.
(ii) Current financial assets loans as at 31 March, 2017 includes amounts due from related parties amounting to Rs, 23.71 Crore (Previous year Rs, 24.19 Crore) is long overdue and outstanding for more than four years. Although management believes that this amount will be recovered in due course, in view of the age of this balance and the absence of subsequent settlement, they believe that a full provision should be made for this balance. Had a provision been made for this balance, there would have been, the net loss attributable to Owners of the Company of X 360.57 Crore as against the reported net loss attributable to the Owners of the Company of Rs, 340.30 Crore for the year ended 31 March, 2017. Further Current financial assets loans, other equity and non-controlling interest as at 31st March, 2017 would have been Rs, 122.59 Crore, Rs, 1961.89 Crore and Rs, 167.50 Crore respectively as against reported figure of Rs, 146.30 Crore, Rs, 1982.16 Crore and Rs, 170.94 Crore respectively.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and rules made hereunder, the Company has appointed M/s. Jagdish Patel & Co., a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is included as and forms an integral part of this Report.
STATUTORY AUDIT
Pursuant to the provisions of Section 139 of the Companies Act, 2013, and rules made there under the term of office of M/s. Chaturvedi & Shah, Chartered Accountants, (Firm Registration No. 101720W) as the Statutory Auditors of the Company will conclude from the close of ensuing Annual
General Meeting of the Company.
The Board of Directors places on record its appreciation to the services rendered by M/s. Chaturvedi & Shah, Chartered Accountants, (Firm Registration No. 101720W) as the Statutory Auditors of the Company.
Subject to the approval of the Members, the Board of Directors of the Company has recommended the appointment of M/s. Pathak H D & Associates, Chartered Accountants, Mumbai (Registration No. 107783W) as the Statutory Auditors of the Company for three years in place of M/s. Chaturvedi & Shah, Chartered Accountants, pursuant to Section 139 of the Companies Act, 2013.
Accordingly, the Board seeks approval of Shareholders of the company for the appointment of Statutory Auditors as mentioned in the notice of the Annual General Meeting.
COST AUDIT
The Board of Directors has approved appointment of Ms. Devashree P. Vijayakar, Cost Accountant as the Cost Auditor of the Company to conduct cost audit and give report for the year 2017-18. The notice of Annual General Meeting includes the resolution to obtain consent of the shareholders.
SIGNIFICANT AND MATERIAL ORDERS pASSED BY THE REGULATORS QR COURTS
There are no significant and material orders passed by the Regulators/ Courts that would impact the going concern status of the Company and its future operations.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has an effective internal control and risk-mitigation system, which are assessed and strengthened with new/revised standard operating procedures. The Company''s internal control system is commensurate with its size, scale and complexities of its operations. The internal audit is entrusted to M/s. Bhuwania & Agrawal Associates. Every quarter internal audit report is placed before the Audit Committee and the Audit Committee of the Directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same.
environment and safety
The Company has constituted Committee for prevention of sexual harassment at work place with a mechanism of lodging complaints. During the year under review no complaints were reported to the Board
ACKNOWLEDGEMENT
The Board of Directors would like to express their grateful appreciation for the assistance, support and co-operation received from the Financial Institutions, Banks, Government Authorities and Shareholders during the year under review.
The employees of the Company contributed significantly in achieving the results. The Directors take this opportunity of thanking them and hope that they will maintain their commitment to excellence in the years to come.
For and on behalf of the Board of Directors
Place : Mumbai BHAGIRATH C. ARYA
Date : 30th May, 2017 Chairman
Mar 31, 2016
DEAR SHAREHOLDERS,
The Directors have pleasure to present the Thirty-Fourth Annual Report and the Company''s Audited Financial Statement for the year ended 31st March, 2016.
FINANCIAL RESULTS
The Company''s financial performance for the year ended on 31st March, 2016 is summarized below.
(Rs, Crore)
particulars |
31st March, |
31st March, |
2016 |
2015 |
|
Turnover & Other Income |
3,704.13 |
4,183.31 |
Profit before Depreciation & Tax |
202.51 |
297.30 |
Less : Depreciation |
100.56 |
96.76 |
Profit before Tax |
101.95 |
200.54 |
Less : Provision for Current Taxation |
29.64 |
43.28 |
Less : MAT Credit Entitlement |
- |
(36.97) |
Less : Provision for Deferred Tax |
6.82 |
54.79 |
Net Profit for the Year |
65.49 |
139.44 |
Less : Prior Period Adjustments |
- |
- |
Net Profit for the Year |
65.49 |
139.44 |
Profit brought forward from previous year |
494.77 |
383.80 |
Surplus available for appropriation |
560.26 |
523.24 |
Less : Transfer to General Reserve |
- |
13.75 |
Less : Transfer to Debenture Redemption Reserve |
- |
(4.52) |
Less : Short/(Excess) Provision of Dividend in |
- |
0.03 |
previous year Less : Tax on Short/( Excess) Provision of Dividend |
0.01 |
|
Less : Proposed Dividend on Preference Shares |
2.85 |
2.85 |
Less : Proposed Dividend on Equity Shares |
8.19 |
13.10 |
Less : Dividend Distribution Tax on Proposed Dividend |
2.25 |
3.25 |
Balance of Profit carried to Balance Sheet |
546.97 |
494.77 |
DIVIDEND
The Board of Directors has recommended dividend of Rs, 1/- (Rupee One Only) per share (@ 10%) on equity share of Face value of Rs,10/- each. Dividend will be paid to eligible equity shareholders, if approved by the members at the Annual General Meeting.
As per the terms and condition of Bank of India, dividend will be paid @ 2.5% per annum to Preference Shareholders holding 75709 Cumulative Redeemable Preference Shares of Rs,100 each and dividend will be paid @ 20% per annum to Preference Shareholders for 1415000 Cumulative Redeemable Preference Shares of Rs,100 each.
share capital
The paid up Equity Share Capital as on 31st March, 2016 was Rs, 81.87 crores and Preference Share Capital as on 31st March, 2016 was Rs,14.91 crores.
During the year Company had issued and allotted 16374370 Equity Shares of Rs, 10/- each to KKR Juptier Investors Pte. Ltd. at premium of Rs, 290/- per share aggregating to Rs, 300 per equity share and the said shares were listed on BSE Ltd., and National Stock Exchange of India Ltd.
PERFORMANCE OF THE COMPANY
Profit before tax of the Company decreased from Rs, 200.54 Crores in 2014-15 to Rs,101.95 Crores in 2015-16 reflecting an decrease of 49.16%.
Profit after tax of the Company decreased from Rs,139.44 Crores in 2014-15 to Rs, 65.49 Crores in 2015-16 reflecting an decrease of 53.03%.
Though the production of Polyester Chips increased from 466178 MT in 2014-15 to 506817 MT in 2015-16, production of POY & Yarn increased from 273932 MT in 2014-15 to 293703 MT in 2015-16.
directors
In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Company''s Articles of Association, Mrs. Veena Arya and Mr. N K Shah, Directors retire by rotation at the forthcoming Annual General Meeting and being eligible offer themselves for reappointment.
Mr. P N Thakore has retired from his service as a CFO w.e.f 31st December, 2015 and Mr. K V Vaidya, was appointed as CFO in his place w.e.f. 1st January, 2016.
All Independent Directors have given declarations that they meet the criteria of Independence as laid down under Section 149(6) of the Companies Act, 2013 and Clause 49 of the Listing Agreement.
Mr. Nikhil Srivastava and Mr. Vijay Bapna, were appointed as Additional Directors during the year to hold office upto the conclusion of forthcoming Annual General Meeting of the Company.
The Company has received notices from the members signifying their intention to propose Mr. Nikhil Srivastava and Mr. Vijay Bapna, as candidates for the office of the Director for which a resolutions are included in the notice of Annual General Meeting.
Mr. Nikhil Srivastava will be appointed as Nominee Director of Investors and Mr. Vijay Bapna, will appointed as Independent Director in forth coming Annual General Meeting.
KEY Managerial PERSONNEL
During the year under review, the Company has appointed following persons as Key Managerial Personnel.
Sr. No. |
Name of the Person |
Designation |
1 |
Mr. Rakesh Gothi |
CEO & Managing Director |
2 |
Mrs. Ujjwala Apte |
Company Secretary |
3 |
Mr. P. N. Thakore Upto 31.12.2015 as CFO |
Chief Financial Officer |
4 |
Mr. Kiran Vaidya w.e.f. 01.01.2016 to 31.05.2016 |
Chief Financial Officer |
Since Mr. Kiran Vaidya has submitted his resignation to Board, Mr. Ajay Agrawal will be appointed as CFO w.e.f 1st June, 2016
subsidiaries
Company has overseas subsidiary under the name and style JBF Global Pte Ltd at Singapore, which has subsidiaries, namely JBF Petrochemicals Ltd at Mangalore, India, JBF Trade Invest Pte Ltd at Singapore, JBF Bio Glicols Industria Quimica Ltda, at Brazil and JBF RAK LLC, at U.A.E with its own subsidiaries, JBF Bahrain S.PC at Bahrain, JBF Global Europe BVBA at Belgium. and JBF America Inc, at America.
In accordance with the general circular issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Statement of Profit and Loss and other documents of the subsidiary companies are not being attached with the Balance Sheet of the Company. In accordance with the Account Standard AS-21, the audited Consolidated Financial Statements including the Financial information of the Subsidiary Companies are provided in the Annual Report.
The annual accounts of the Subsidiary Companies will be available at the Registered and Corporate Office of the Company and on the website of the company.
JBF Global Europe BVBA (Belgium) and JBF Bahrain SPC (Bahrain) subsidiaries of the Company have started their production and are contributing to the Company.
PTA project of JBF Petrochemicals Ltd at Mangalore SEZ is at advanced stage of completion and the plant would be operational by end of the financial year.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT-9, as required under Section 92 of the Companies Act, 2013, is included in this Report as Annexure - A and forms an integral part of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis forms part of the Directors'' Report
corporate governance
As per Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, a separate section on corporate governance practices followed by the Company, together with a certificate from the Company''s Auditors on compliance forms an integral part of this report.
board committees
As per the requirement of the Companies Act, 2013 and of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, the Board of Directors of the Company has 8 Committees namely Audit Committee, Stakeholders Relationship Committee, Risk Management Committee, Nomination and Remuneration Committee, Corporate Social Responsibility Committee, Finance Committee and Investment Committee.
The details of the constitution of the Committees and the meetings held during the financial year 2015-16 are included in the Corporate Governance Report forming part of Annual Report.
number of meetings of the board & audit committee
During the year Six Board Meetings and Four Audit Committee Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013 and relevant provisions of SEBI (LODR) Regulations, 2015.
company policies :
The company has formulated following mentioned policies which are available on our website : www.jbfindia.com
corporate social responsibility policy
As a part of its initiative under the "Corporate Social Responsibility" (CSR) drive, the Company has undertaken projects in the area of rural development.
The disclosures required under section 135 of the Companies Act, 2013, read with the rule 8(1) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 are given in Annexure to Directors'' Report.
nomination and remuneration policy
The Company has formed Nomination and Remuneration Committee and framed the Remuneration Policy. The Committee has been given responsibility of appointment and re-appointment of Whole-time Director, Directors, Key Managerial Persons and the specified employees / executives of the Company and approving their remuneration based on their qualification experience and responsibility in the Company.
The salient features of Remuneration policy are included in Corporate Governance Report forming part of this annual report.
RISK MANAGEMENT POLICY
Pursuant to the requirement of Regulation 27(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, the Company has constituted Risk Management Committee. The Company has a Risk Management Policy and team evaluate business risks.
The Board of Directors regularly reviews risk and threats in the business and takes suitable steps to safeguard Company''s interest.
RELATED PARTY TRANSACTIONS POLICY
As requirement the Company framed related party transaction policy. As policy all Related Party Transactions including sale and purchase entered into with subsidiary Companies are placed before the Audit Committee as also before the Board for approval. Omnibus approval was obtained on a quarterly / annual basis for such transactions which are of repetitive nature.
There are no material related party transactions during the year under review with the Promoters, Directors or Key Managerial Personnel. The Company has formulated policy on materiality of Related Party Transaction which is available on website of the Company which is available on the website of the company.
whistle blower policy
A whistle blower policy in terms of the Listing Regulations includes Ethics & Compliance for senior executives of the Company. It also includes vigil mechanism. Confidentiality disclosures can be made by whistle blower through an e-mail, or a letter to the Committee member or to the Chairman of the Audit Committee.
The efforts are taken to accept the observations of the whistle blower and the action are taken accordingly.
prevention of sexual harassment at workplace policy and preservation of documents policy
The company has also constituted prevention of sexual harassment at work place policy and preservation of documents policy. Separate Management Teams are appointed to review periodically at different locations of the Company. These policies are also available on website of the Company.
board evaluation
Pursuant to the provision of the Companies Act, 2013 and Regulation 4(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, a structured questionnaire was prepared after taking into consideration of the various aspects of the Board''s functioning, composition of Board and its Committees, culture, execution and performance of specific duties, obligations and governance.
The performance evaluation of the Independent Directors was completed. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors. The Board of Directors expressed their satisfaction with the evaluation process.
foreign exchange earning & outgo
Foreign Exchange earnings by way of exports and Freight were ''1080.96 crores against outgo of Rs, 884.30 Crores on import of raw materials, stores spares & consumables and Rs, 2.86 Crores of foreign exchange was invested in imported capital equipments for the growth of the Company.
FIXED DEPOSITS
During the year Company has not accepted any Fixed Deposits and as such, no amount of principal or interest on account of Fixed Deposits is outstanding as on the date of Balance Sheet.
particulars of loans, guarantees or investments BY company
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to Financial Statements (Refer note no.31)
disclosure under rule 5(1) of the companies (appointment and remuneration), rules, 2014
The information required pursuant to Section 197 read with rule 5(1) of the Companies (Appointment and Remuneration) Rules, 2014 in respect of employees of the Company and Directors is enclosed in the Annual Report.
insurance
All the properties of the Company including buildings, plant and machinery and stock have been adequately insured.
directors'' responsibility statement
To the best of knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statement in terms of Section 134(3)(c) of the Companies Act, 2013, that in the preparation of the Annual Accounts for the year ended 31st March, 2016, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any; 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 the year ended on that date; that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; the annual accounts have been prepared on a going concern basis; that the Directors 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 that the Directors had devised proper systems were adequate and operating effectively.
statutory auditor
M/s. Chaturvedi & Shah, Chartered Accountants, (Firm Registration No. 101720W) who are Statutory Auditors of the Company hold office up to the forthcoming Annual General Meeting and are recommended for the re-appointment to audit the accounts of the Company for the financial year 2016-17. As required under the provisions of Section 139 of the Companies Act, 2013 the Company has obtained written confirmation from M/s. Chaturvedi & Shah that their appointment, if made, would be in conformity with the limits specified in the said Section and they have confirmed their independence as required under the Companies Act 2013.
cost audit
The Board of Directors has approved appointment of Ms. Devashree P. Vijayakar, Cost Accountant as the Cost Auditor of the Company to conduct cost audit and give report for the year 2016-17. The notice of Annual General Meeting includes the resolution to obtain consent of the shareholders.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and rules made there under, the Company has appointed M/s. Jagdish Patel & Co., a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is included as and forms an integral part of this Report.
MATERIAL CHANGES AND COMMITMENTS
There were no material changes and commitments affecting financial position of the Company.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE regulators or courts
There are no significant and material orders passed by the Regulators/ Courts that would impact the going concern status of the Company and its future operations.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has an effective internal control and risk-mitigation system, which are assessed and strengthened with new/revised standard operating procedures. The Company''s internal control system is commensurate with its size, scale and complexities of its operations. The internal audit is entrusted to M/s. Bhuwania & Agrawal Associates. Every quarter internal audit report is placed before the Audit Committee and the Audit Committee of the Directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same.
environment and safety
The Company has constituted Committee for prevention of sexual harassment at work place with a mechanism of lodging complaints. During the year under review no complaints were reported to the Board
acknowledgement
The Board of Directors would like to express their grateful appreciation for the assistance, support and co-operation received from the Financial Institutions, Banks, Government Authorities and Shareholders during the year under review.
The employees of the Company contributed significantly in achieving the results. The Directors take this opportunity of thanking them and hope that they will maintain their commitment to excellence in the years to come.
For and on behalf of the Board of Directors
Place : Mumbai BHAGIRATH ARYA
Date : 30th May, 2016 Chairman
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting the Thirty-Second Annual
Report together with the Audited Accounts of the Company for the
financial year ended on 31st March, 2014.
FINANCIAL RESULTS [Rs. in crores]
Particulars Year ended on Year ended
31/3/2014 on 31/3/2013
[Audited] [Audited]
Total Revenue 4,846.58 4,576.18
Profit before Depreciation, exceptional
Item & Tax 178.23 187.75
Less : Depreciation 112.22 100.66
Less : exceptional Item 36.71 -
Profit before Tax 29.30 87.09
Less : Provision for Current Taxation 7.22 19.33
Less : MAT Credit Entitlement (7.22) (19.33)
Less : Provision for Deferred Tax 14.28 35.59
Net Profit for the year 15.02 51.50
Less : Prior period Adjustments 0.03 0.02
Net Profit for the year 14.99 51.48
Profit brought forward from previous year 384.51 350.13
Surplus available for appropriations 399.50 401.61
Less : Transfer to General Reserve 1.15 5.20
Less : Transfer (from)/ to Debenture Redemption (3.17) 0.61
Reserve
Less : Short/ (excess) Provision of Dividend in (0.73) 0.17
Previous Year
Less : Short/ (excess) Provision of Dividend (0.12) 0.03
Distribution Tax
Less : Proposed Dividend on Preference Shares 2.81 2.22
Less : Proposed Dividend on Equity Shares 13.06 7.26
Less : Dividend Distribution Tax on Proposed
Dividend 2.70 1.61
Balance of Profit carried to Balance Sheet 383.80 384.51
DIVIDEND
As per the terms and conditions of Bank of India, dividend will be paid
@ 2.5% per annum to Preference Shareholders holding 1 1395709
Cumulative Redeemable Preference Shares of Rs. 100 each till 25th
March, 2014.
As per the terms and condition of Bank of India, dividend will be paid
@ 2.5% per annum to Preference Shareholders holding 75709 Cumulative
Redeemable Preference Shares of Rs.100 each from 26th March, 2014 and @
20% per annum to Preference Shareholders holding 1415000 Cumulative
Redeemable Preference Shares of Rs.100 each from 26th March, 2014.
The Board of Directors has recommended dividend of Rs. 2/- (Rupees Two
only) per share (@ 20%) on equity shares. Dividend will be paid to
eligible equity shareholders if approved by members at the Annual
General Meeting.
DIRECTORS
Mr. Baldevraj Hansraj Gupta, was appointed on 10th April, 2014, as
Additional Independent Director, to hold the office till the date of
this Annual General Meeting, will be appointed as a Independent
Director for a term of 5 years in this Annual General Meeting based on
the recommendation of shareholders in this Annual General Meeting. Mr.
Prakash Vasantlal Mehta, was appointed on 10th April, 2014, as an
Additional Non-Executive Director, to hold the office till the date of
this Annual General Meeting, will be appointed as a Independent
Director for a term of 5 years in this Annual General Meeting based on
the recommendation of shareholders in this Annual General Meeting.
Mr. Brij Mohan Bansal, was appointed on 27th May, 2014, as an
Additional Independent Director, to hold the office till the date this
Annual General Meeting, will be appointed as an Independent Director
for a term of 5 years in this Annual General Meeting based on the
recommendation of shareholders in this Annual General Meeting.
Mrs. Veena Arya, is retiring by rotation and being eligible, offer
herself for re-appointment.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis forms part of the Directors''
Report and is annexed hereto.
PERFORMANCE
Net sales of the Company increased from Rs. 4,504.09 Crores in 2012-13
to Rs. 4,784.71 Crores in 2013-14, reflecting an increase of 6.23%.
Profit before Tax of the Company decreased from Rs. 87.09 Crores in
2012-13 to Rs. 29.30 Crores in 2013-14.
Net Profit of the Company decreased from Rs. 51.48 Crores in 2012-13 to
Rs. 14.99 Crores in 2013-14.
ISSUE OF EQUITY SHARES
During the year, Compensation Committee met 5 times to consider the
exercise of options and issue of equity shares granted under Employees
Stock Option Scheme to employees and directors. During the year 191611
options were exercised by the Directors & employees and equal number of
equity shares were allotted and issued. Listing formalities were duly
completed after the allotment of these shares. Disclosure of
Particulars is annexed to this report as an "ANNEXURE B" to the
Directors Report.
BUY-BACK OF SHARES
During the year, Company has bought back Seventy Five Lacs equity
shares of Rs.10/- each at an average price of Rs. 97.64 per equity
shares through the methodology of "Open Market Purchases through Stock
Exchanges". Share capital after issue of equity shares under ESOS
Scheme and buyback of equity shares is Rs. 65,32,48,470.
ISUE OF CUMULATIVE REDEEMABLE PREFERENCE SHARES
Bank of India (BOI) had approved line of credit to fund losses incurred
by the Company on account of derivative transaction of the Company with
BOI to hedge ECB Loan.
As a part of the credit line the Company had issued 11395709 - 2.5%
Cumulative Redeemable Preference Shares (CRPS) of Rs. 100/- each, in
different tranches aggregating to Rs. 113,95,70,900, to be redeemed in
three instalments.
The Board of Directors of the Company (the "Board") had proposed the
redemption of the existing 11320000 - 2.5% CRPS in Exchange of 1415000
- 20% CRPS of Rs. 100/- each at premium of Rs. 700/- per CRPS, to be
redeemed on the same date of redemption as of old CRPS.
The Preference Shareholders approved the said proposal by passing
resolution in their meeting held on 26th March, 2014, which was also
accepted by the Equity Sharesholders in their meeting held on 26th
March, 2014, by passing the resolution to that effect.
To give effect to the resolution as mentioned above the Board of
Directors issued 1415000 - 20% Cumulative Redeemable Preference Shares
of Rs. 100/- each at premium of Rs. 700/- per (CRPS) in their meeting
held on 26th March, 2014, in favour of BOI.
As a result of the above the issued Preference Share Capital has come
down to Rs. 14,90,70,900.
SUBSIDIARIES
Company has overseas subsidiary under the name and style JBF Global Pte
Ltd at Singapore, which has subsidiaries, namely JBF Petrochemicals
Ltd., Mangalore, India, JBF Glicols Industria Quimica Ltda, at Brazil
and JBF RAK LLC, at U.A.E with its own subsidiaries, JBF Bahrain S.PC
at Bahrain and JBF Global Europe BVBA at Belgium.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Statement of
Profit and Loss and other documents of the subsidiary companies are not
being attached with the Balance Sheet of the Company. In accordance
with the Accounting Standard AS-21, the audited Consolidated Financial
Statements including the Financial Information of Subsidiary Companies
are provided in the Annual Report.
The annual accounts of the Subsidiary Companies will be kept open for
inspection at the Registered and Corporate Office of the Company and
that of the respective Subsidiary Companies.
PROGRESS OF SUBSIDIARIES
a) Bahrain plant will have 3 lines having total capacity of 90,000
Tonnes per annum. Two lines of Polyester Film project being executed
through JBF Bahrain SPC have commenced production. The third line is
likely to be commissioned by third quarter of 2014.
b) At Geel, Belgium, PET project executed through JBF Global Europe
BVBA having capacity of 390,000 Tonnes per annum is on schedule. The
plant is expected to be commissioned by mid of June 2014.
c) At Mangalore, PTA project being executed through JBF Petrochemicals
Ltd., having capacity of the 1.25 Million Tonnes per annum is
progressing satisfactorily. Construction activities have commenced.
The project is expected to be completed by mid 2015.
RISK MANAGEMENT
The Board of Directors regularly reviews risks and threats in the
business and takes suitable steps to safeguard Company''s interest.
INSURANCE
All the properties of the Company including buildings, plant and
machinery and stocks have been adequately insured.
FixED DEPOSITS
During the year Company has not accepted any Fixed Deposits and as
such, no amount of principal or interest on account of Fixed Deposits
is outstanding as on the date of Balance Sheet.
DIRECTORS'' RESPONSIBILITY STATEMENT
In compliance with Section 217(2AA) of the Companies Act, 1956, the
Directors report that:
1. In the preparation of the Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
Standard Auditing Practices.
2. Such Accounting policies have been selected and applied consistently
and judgements and estimates have been made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company for the year ended on 31st March, 2014.
3. Proper and sufficient care has been taken for the maintenance of the
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing & detecting fraud and other irregularities.
4. The annual accounts have been prepared on a Going Concern Basis.
CORPORATE GOVERNANCE
To comply with conditions of Corporate Governance, pursuant to Clause
49 of the Listing Agreements with the Stock Exchanges, a Management
Discussion and Analysis Statement, Corporate Governance Report and
Auditors'' Certificate, are included in the Annual Report.
Code of Conduct for Directors and Employees of the Company, has been
communicated to them and a copy has been pasted on the web site of
Company.
AUDITORS
M/s Chaturvedi & Shah, Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of the forthcoming Annual
General Meeting and are eligible for re-appointment.
The Company has received a certificate from the proposed Auditors to
the effect that their appointment, if made, would be in accordance with
the provision of Section 139 of the Companies Act, 2013 (Act) and also
satisfy the criteria provided in Section 141 of the Act.
COST ACCOUNTING RECORDS
The Company has maintained cost accounting records in respect of
manufacture of Polyester Chips, Partially Oriented Yarn (POY) and
Polyester Processed Yarn as required for the year ended 31st March,
2014.
COST AUDITORS
As per the Companies (Cost Audit Report) Rules, 2011 and the
notification of MCA dated 3rd June, 2011. The Cost Accounts Records
maintained by your Company for the Products - Polyester Chips,
Polyester Filament Yarn and Polyester Processed Yarn are subject to
yearly audit by qualified Cost Auditors.
Based on the Audit Committee recommendations at its meeting held on May
27, 2014, the Board has approved the appointment of Ms. Devashree P
Vijayakar, Cost Accountant as the Cost Auditor of the Company for the
financial year 2014-2015.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN Exchange
EARNING AND OUTGO
A Statement containing necessary information as required under Section
217(e) of the Companies Act, 1956, read with the Companies (Disclosure
of Particulars in the Report of the Board of Directors) Rules, 1988, is
annexed to this report as an "ANNEXURE A" to the Directors Report.
INFORMATION UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has constituted an Internal Complaint Committee under
Section 4 of the captioned Act. No complaint has been filled before the
said committee till date.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
In line with the requirements of the Companies Act, 2013, the Board on
15th May, 2014 has constituted a CSR Committee comprising Mr. Rakesh
Gothi as the Chairman and Mr. B.R.Gupta, Mr. PN.Thakore and Mr.
N.K.Shah as other members.
The said Committee has been entrusted with the responsibility of
formulating and recommending to the Board, a Corporate Social
Responsibility Policy (CSR Policy) indicating the activities to be
undertaken by the Company, monitoring the implementation of the
framework of the CSR Policy and recommending the amount to be spent on
CSR activities.
PARTICULARS OF EMPLOYEES
The information required under the provisions of Section 217(2A) of the
Companies Act, 1956, read with Companies (Particulars of Employees)
Rules, 1975, and forming part of the Report is annexed hereto as an
"ANNEXURE C" to the Directors Report.
FOREIGN EARNINGS/OUT GOINGS
Foreign Exchange earnings by way of exports and Net Gain on currency
and interest rate swap were Rs. 897.12 Crores and Rs. 6.73 Crores
respectively against outgo of Rs. 1546.09 Crores on import of raw
materials, colours chemicals & oils, stores spares & consumables and
Rs. 5.90 Crores of foreign Exchange were invested in imported capital
equipments for the growth of the Company.
APPRECIATION
The Board of Directors would like to express their grateful
appreciation for the assistance, support and co-operation received from
the Financial Institutions, Banks, Government Authorities and
Shareholders during the year under review.
The employees of the Company contributed significantly in achieving the
results. The Directors take this opportunity of thanking them and hope
that they will maintain their commitment to excellence in the years to
come.
For and on behalf of the Board of Directors
P.N. THAKORE RAKESH GOTHI
CFO & Director Finance CEO & Managing Director
Place: Mumbai
Date: 27th May, 2014.
Mar 31, 2013
The Directors have pleasure in presenting the Thirty-First Annual
Report together with the Audited Accounts of the Company for the
financial year ended on 31st March, 2013.
FINANCIAL RESULTS [Rs.in crores]
Particulars Year ended Year ended
on 31st on 31st
March, 2013 March, 2012
[Audited] [Audited]
Total Revenue 4,576.18 4512.56
Profit before Depreciation & Tax 187.75 112.26
Less : Depreciation 100.66 83.94
Profit before tax 87.09 28.32
Less : Provision for Current Taxation 19.33 5.60
Less : MAT Credit Entitlement (19.33) (5.18)
Less : Provision for Deferred Tax 35.59 (20.88)
net Profit for the year 51.50 48.78
Less : Prior period Adjustments 0.02 0.10
Profit brought forward from previous year 350.13 377.56
surplus available for appropriations 401.61 426.24
Less : Transfer to General Reserve 5.20 5.00
Less : Transfer to Debenture
Redemption Reserve 0.61 3.26
Less : Short Provision of Dividend
in Previous Year 0.17 0.04
Less : Tax paid on Short
Provision of Dividend 0.03 0.01
Less : Proposed Dividend
on Preference Shares 2.22 0.72
Less : Proposed Dividend on Equity Shares 7.26 57.62
Less : Dividend Distribution Tax on
Proposed Dividend 1.61 9.46
Balance of Profit carried to Balance sheet 384.51 350.13
diVidend
As per the terms and conditions of Bank of India, dividend will be paid
@ 2.5% per annum to Preference Shareholders on Cumulative Redeemable
Preference Shares of Rs.100 each.
The Board of Directors has reconsidered the recommendation of dividend
of Rs. 6 (Rupees Six only) per share (@ 60%) on the equity share capital
and revised it to Rs. 1 (Rupee One only) per share on the equity share
capital in their meeting held on 13th August, 2013. Dividend will be
paid to eligible equity shareholders if approved by members at the
Annual General Meeting.
diReCtoRs
Mr. Sunil Diwakar, Mr. Prakash Mehta, Mrs. Veena Arya and Mr. Krishen
Dev, are retiring by rotation and being eligible, offer themselves for
re-appointment.
MAnAGeMent disCussion And AnAlYsis
The Management Discussion and Analysis forms part of the Directors''
Report and is annexed hereto.
Performance
Net sales of the Company increased from Rs. 4,383.32 Crores in 2011-12 to
Rs. 4,504.09 Crores in 2012-13, reflecting an increase of 2.76%. Profit
before tax of the Company increased from Rs.28.32 Crores in 2011-12 to Rs.
87.09 Crores in 2012-13, reflecting an increase of 207.52%. Net profit
of the Company increased from Rs. 48.78 Crores in 2011-12 to Rs. 51.50
Crores in 2012-13, reflecting an increase of 5.58%. issue oF equitY
sHARes.
During the financial year ended 31st March, 2013, 6,14,113 equity
shares were issued to Directors & employees, who have exercised their
options under ESOS.
As a result of the above the issued equity share capital has gone up to
Rs. 72,63,32,360. issue oF CuMulAtiVe RedeeMABle PReFeRenCe sHARes
During the year ended 31st March, 2013, Company has issued 21,95,787 Â
2.5% Cumulative Redeemable Preference Shares of Rs. 100 each to Bank of
India.
Company has also issued 3,60,722 Â 2.5% Cumulative Redeemable
Preference Shares of Rs. 100 each to Bank of India on 20th August 2013.
As a result of the above the issued preference share capital has gone
up to Rs. 1,13,95,70,900.
BuY-BACK oF sHARes
Board of Directors has considered buy-back of equity shares of Rs. 10/-
of the Company from the existing equity shareholders of the Company
other than promoters and the persons who are in control of the Company
at price not exceeding Rs. 105/- (Rupee One Hundred Five Only) per equity
share and the total consideration payable for the buy-back shall not
exceed the aggregate amount of Rs. 73,50,00,000 (Rupees Seventy Three
Crores Fifty Lacs) excluding brokerage, transactional charges and
taxes, if any ("Maximum Buy-back Size") is within 10% of the total
paid-up equity share capital and free reserves of the Company as on
31st March, 2013 through the methodology of "Open Market Purchases
through Stock Exchanges".
suBsidiARies
Company has overseas subsidiary under the name and style JBF Global Pte
Ltd at Singapore, which has subsidiaries, namely JBF Glicols Industria
Quimica Ltda, at Brazil and JBF RAK LLC, at U.A.E with its step-down
subsidiaries, JBF Bahrain S.P.C at Bahrain and JBF Global Europe BVBA
at Belgium. JBF Petrochemicals Ltd earlier which was subsidiary
company of JBF Industries Ltd, has now become subsidiary company of JBF
Global Pte Ltd by virtue of issue of equity shares in favour of JBF
Global Pte Ltd by JBF Petrochemicals Ltd. In accordance with the
general circular issued by the Ministry of Corporate Affairs,
Government of India, the Balance Sheet, Statement of Profit and Loss
and other documents of the subsidiary companies are not being attached
with the Balance Sheet of the Company. In accordance with the
Accounting Standard AS-21, the audited Consolidated Financial
Statements including the Financial Information of Subsidiary Companies
are provided in the Annual Report.
The annual accounts of the Subsidiary Companies will also be kept open
for inspection at the Registered and Corporate Offices of the Company
and that of the respective Subsidiary Companies.
RisK MAnAGeMent
The Board of Directors regularly reviews risks and threats in the
business and takes suitable steps to safeguard Company''s interest.
insuRAnCe
All the properties of the Company including buildings, plant and
machinery and stocks have been adequately insured.
FiXed dePosits
During the year Company has not accepted any Fixed Deposits and as
such, no amount of principal or interest on account of Fixed Deposits
is outstanding as on the date of Balance Sheet.
diReCtoRs'' ResPonsiBilitY stAteMent
In compliance with Section 217(2AA) of the Companies Act, 1956, the
Directors report that:
1. In the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to Standard Auditing Practices.
2. Such Accounting policies have been selected and applied
consistently and judgements and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company for the year ended on 31st March, 2013.
3. Proper and sufficient care has been taken for the maintenance of
the adequate accounting records in accordance with the provisions of
the Companies Act, 1956 for safeguarding the assets of the Company and
for preventing & detecting fraud and other irregularities. 4. The
annual accounts have been prepared on a Going Concern Basis.
CoRPoRAte GoVeRnAnCe
To comply with conditions of Corporate Governance, pursuant to Clause
49 of the Listing Agreements with the Stock Exchanges, a Management
Discussion and Analysis Statement, Corporate Governance Report and
Auditors'' Certificate, are included in the Annual Report. Code of
Conduct for Directors and Employees of the Company, has been
communicated to them and a copy has been pasted on the web site of
Company.
AuditoRs
M/s Chaturvedi & Shah, Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of the forthcoming Annual
General Meeting and are eligible for re-appointment. The Company has
received a certificate from the proposed Auditors to the effect that
their appointment, if made, would be within the prescribed limits under
Section 224(1B) of the Companies Act, 1956 and also that they are not
otherwise disqualified within the meaning of the sub-section 3 of
section 226 of the Companies Act, 1956.
Cost ACCountinG ReCoRds
The Company has maintained cost accounting records in respect of
manufacture of Polyester Chips, Partially Oriented Yarn (POY) and
Polyester Processed Yarn as required for the year ended 31st March,
2013.
Cost AuditoRs
As per the Companies (Cost Audit Report) Rules, 2011 and the
notification of MCA dated 3rd June, 2011. The Cost Accounts Records
maintained by your Company for the Products - Polyester Chips,
Polyester Filament Yarn and Polyester Processed Yarn are subject to
yearly audit by qualified Cost Auditors.
Based on the Audit Committee recommendations at its meeting held on May
23, 2013, the Board has approved the appointment of Ms. Devashree P.
Vijayakar, Cost Accountant as the Cost Auditor of the Company for the
financial year 2013-2014, subject to approval of the Central
Government.
eMPloYees stoCK oPtion sCHeMe
During the year Compensation Committee met 6 times to consider the
exercise of options and issue of equity shares. During the year
6,14,113
options were exercised by the Directors & employees and equal number of
equity shares were allotted. Listing formalities were duly completed
after the allotment of these shares. Disclosure of Particulars is
annexed to this report as an "Annexure C" to the Directors Report.
ConseRVAtion oF eneRGY, teCHnoloGY ABsoRPtion
And FoReiGn eXCHAnGe eARninG And outGo
A Statement containing necessary information as required under Section
217(e) of the Companies Act, 1956, read with the Companies (Disclosure
of Particulars in the Report of the Board of Directors) Rules, 1988, is
annexed to this report as an "Annexure A" to the Directors Report.
PARtiCulARs oF eMPloYees
The information required under the provisions of Section 217(2A) of the
Companies Act, 1956, read with Companies (Particulars of Employees)
Rules, 1975, and forming part of the Report is annexed hereto as an
"Annexure B" to the Directors Report.
FoReiGn eARninGs/out GoinGs
Foreign Exchange earnings by way of exports and interest were Rs.629.34
Crores and Rs.0.92 Crores respectively against outgo of Rs.915.92 Crores on
import of raw materials, colours chemicals & oils, stores spares &
consumables and Rs.26.12 Crores of foreign exchange were invested in
imported capital equipments for the growth of the Company.
APPReCiAtion
The Board of Directors would like to express their grateful
appreciation for the assistance, support and co-operation received from
the Financial Institutions, Banks, Government Authorities and
Shareholders during the year under review.
The employees of the Company contributed significantly in achieving the
results. The Directors take this opportunity of thanking them and hope
that they will maintain their commitment to excellence in the years to
come.
For and on behalf of the Board of directors
P. n. tHAKoRe RAKesH GotHi
CFO & Director Finance CEO & Managing Director
Place: Mumbai
Date: 21st August, 2013
Mar 31, 2012
The Directors have pleasure in presenting the Thirtieth Annual Report
together with the Audited Accounts of the Company for the financial
year ended on 31st March, 2012.
FINANCIAL RESULTS [Rs. in crores]
Particulars Year ended on Year ended on
31st March, 31st March,
2012. 2011.
[Audited] [Audited]
Total Revenue 4512.56 3582.83
Profit before Depreciation & Tax 112.26 264.95
Less : Depreciation 83.94 73.37
Profit before Tax 28.32 191.58
Less : Provision for
Current Taxation 5.60 50.93
Less : MAT Credit Entitlement (5.18) --
Less : Provision for Deferred Tax (20.88) 9.31
Less : Taxes for Earlier Years -- (0.08)
Net Profit for the year 48.78 131.42
Less : Prior period Adjustments 0.10 0.11
Profit brought forward from
previous year 377.56 329.13
surplus available for
appropriations 426.24 460.44
Less : Transfer to General Reserve 5.00 13.15
Less : Transfer to Debenture
Redemption Reserve 3.26 3.25
Less : Short Provision of
Dividend in previous year 0.04 --
Less : Tax paid on short
provision of dividend 0.01 --
Less : Dividend Distribution
Tax for earlier year written back -- (0.14)
Less : Proposed Dividend on
Preference Shares 0.72 0.00
(previous year Rs. 36,457)
Less : Proposed Dividend
on Equity Shares 57.62 57.32
Less : Dividend Distribution
Tax on Proposed Dividend 9.46 9.30
Balance of Profit carried to
Balance sheet 350.13 377.56
DIVIDEND
As per the terms, dividend will be paid @ 2.5% per annum to Preference
Shareholders on Cumulative Redeemable Preference Shares of Rs. 100 each.
The Board of Directors has recommended dividend of Rs. 8 (Rupees Eight
only) per share (@ 80%) on the Equity Share Capital of the Company.
Dividend will be paid to equity shareholders if approved by members at
the Annual General Meeting.
The equity shares issued on exercise of options under ESOS before the
date of book closure will be considered for the payment of dividend.
DIRECTORS
Mr. Prakash Mehta, Mrs. Veena Arya, Mr. Krishen Dev and Mr. B R Gupta,
Directors are retiring by rotation and being eligible, offer themselves
for re-appointment.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis forms part of the Directors'
Report and is annexed hereto.
PERFORMANCE
The overall production of Polyester Chips during the year has increased
from 4,84,389 MT in 2010-11 to 5,04,332 MT in 2011-12, reflecting an
increase of 4.12%.
The overall production of POY during the year has increased from
2,11,017 MT in 2010-11 to 2,28,251 MT in 2011-12, reflecting an
increase of 8.17%.
Net revenue from Operations of the Company also increased from Rs.
3,560.46 Crores in 2010-11 to Rs. 4,383.32 Crores in 2011-12, reflecting
an increase of 23.11%.
ISSUE OF EQUITY SHARES
During the year 3,71,167 equity shares were issued to Directors &
employees, who have exercised their options under ESOS.
As the result of the above, the issued equity share capital has gone up
to Rs. 72,01,91,230.
ISSUE OF CUMULATIVE REDEEMABLE PREFERENCE SHARES
During the year ended 31st March, 2012, Company has issued 61,77,837 -
2.5% Cumulative Redeemable Preference Shares of Rs. 100 each to Bank of
India.
As a result of the above the issued preference share capital has gone
up to Rs. 88,39,20,000.
SUBSIDIARIES
Company has 100% Indian Subsidiary namely JBF Petrochemicals Limited
and also overseas subsidirary company JBF Global Pte Ltd at Singapore,
which has JBF RAK LLC, UAE, has its subsidiary.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Statement of
Profit and Loss and other documents of the subsidiary companies are not
being attached with the Balance Sheet of the Company. In accordance
with the Accounting Standard AS-21, the audited Consolidated Financial
Statements including the Financial Information of Subsidiary Companies
are provided in the Annual Report.
Annual Accounts of the subsidiary companies and the related detailed
information will be available to any member of the Company who may be
interested in obtaining the same. The annual accounts of the Subsidiary
Companies will also be kept open for inspection at the Registered and
Corporate Offices of the Company and that of the respective Subsidiary
Companies.
Company's project for setting up of 1.2 million tonne PTA Project at
SEZ at Mangalore through the wholly owned subsidiary i.e. JBF
Petrochemicals Ltd., is progressing as per schedule. Necessary
government approvals relating to environment has been obtained and
application for other approvals are under process. The Project is
expected to be commissioned by end of 2014.
RISK MANAGEMENT
The Board of Directors regularly reviews risks and threats in the
business and takes suitable steps to safeguard Company's interest.
INSURANCE
All the properties of the Company including buildings, plant and
machinery and stocks have been adequately insured.
FIXED DEPOSITS
During the year Company has not accepted any Fixed Deposits and as
such, no amount of principal or interest on account of Fixed Deposits
is outstanding as on the date of Balance Sheet.
DIRECTORS' RESPONSIBILITY STATEMENT
In compliance with Section 217(2AA) of the Companies Act, 1956, the
Directors report that:
1. In the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to Standard Auditing Practices except the provision of marked
to market loss of derivatives contracts.
2. Such Accounting policies have been selected and applied
consistently and judgements and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company for the year ended on 31st March, 2012.
3. Proper and sufficient care has been taken for the maintenance of
the adequate accounting records in accordance with the provisions of
the Companies Act, 1956, for safeguarding the assets of the Company and
for preventing & detecting fraud and other irregularities.
4. The annual accounts have been prepared on a Going Concern Basis.
CORPORATE GOVERNANCE
To comply with conditions of Corporate Governance, pursuant to Clause
49 of the Listing Agreements with the Stock Exchanges, a Management
Discussion and Analysis Statement, Corporate Governance Report and
Auditors' Certificate, are included in the Annual Report.
Code of Conduct for Directors and Employees of the Company, has been
communicated to them and a copy has been pasted on the web site of
Company.
AUDITORS
M/s Chaturvedi & Shah, Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of the forthcoming Annual
General Meeting and are eligible for re-appointment.
The Company has received a certificate from the proposed Auditors to
the effect that their appointment, if made, would be within the
prescribed limits under Section 224(1B) of the Companies Act, 1956 and
also that they are not otherwise disqualified within the meaning of the
sub-section 3 of section 226 of the Companies Act, 1956.
AUDITORS' OBSERVATIONS ON STANDALONE AND CONSOLIDATED ACCOUNTS
In order to hedge the Company's exposure to foreign exchange and
interest rate, the Company has entered into derivative contracts. All
realized derivative losses aggregating to Rs. 167.77 Crores for the year
ended 31st March, 2012 has been charged to Statement of Profit & Loss.
The mark to market losses in respect of the above derivative contracts
as on 31st March, 2012 aggregating to Rs. 47.48 Crores has not been
provided in the books of account, since the Company is of the view
that, loss may be payable only if loss conditions are triggered on
observation dates, which, is contrary to the requirements of
announcement by the Institute of Chartered Accountants of India. The
losses in respect of above derivative contracts will be accounted for
on actual settlements. Further, one of the bankers with whom,
derivative transaction is outstanding had approved a line of credit to
fund derivative losses partly as debt, convertible debt and preference
shares.
The Auditors of the Company have qualified their reports regarding the
non-provision of marked to market losses of derivative contracts
amounting to Rs. 47.48 Crores as on 31st March, 2012, with consequential
effect of Rs. 31.66 Crores on Profit after Tax.
COST ACCOUNTING RECORDS
The Company has maintained cost accounting records in respect of
manufacture of Polyester Chips, Polyester Filament Yarn and Polyester
Processed Yarn as required for the year ended 31st March, 2012.
COST AUDITORS
The Ministry of Corporate Affairs (MCA) has introduced The Companies
(Cost Audit Report) Rules, 2011 vide its notification no. GSR 430(E)
dated June 3, 2011. These rules make it mandatory for industries to
appoint a Cost Auditor within 90 days of the commencement of the
financial year. The Cost Accounts Records maintained by your Company
for the Products - Polyester Chips, Polyester Filament Yarn and
Polyester Processed Yarn are subject to yearly audit by qualified Cost
Auditors. Based on the Audit Committee recommendations at its meeting
held on May 29, 2012, the Board has approved the appointment of Ms.
Devashree P Vijayakar, Cost Accountant as the Cost Auditor of the
Company for the financial year 2012-2013, subject to approval of the
Central Government.
EMPLOYEES STOCK OPTION SCHEME
During the year under review 3,71,167 options were exercised by the
Directors & employees and equal number of equity shares were allotted.
Listing formalities were duly completed after the allotment of these
shares. Disclosure of Particulars is annexed to this report as an
"Annexure C" to the Directors Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
A Statement containing necessary information as required under Section
217(e) of the Companies Act, 1956, read with the Companies (Disclosure
of Particulars in the Report of the Board of Directors) Rules, 1988, is
annexed to this report as an "Annexure A" to the Directors Report.
PARTICULARS OF EMPLOYEES
The information required under the provisions of Section 217(2A) of the
Companies Act, 1956, read with Companies (Particulars of Employees)
Rules, 1975, and forming part of the Report is annexed hereto as an
"Annexure B" to the Directors Report.
FOREIGN EARNINGS/OUT GOINGS
Foreign Exchange earnings by way of exports and interest and
Miscellaneous Income were Rs. 549.47 Crores and Rs. 1.45 Crores
respectively against outgo of Rs. 894.16 Crores on import of raw
materials, colours chemicals & oils, stores spares & consumables and Rs.
33.29 Crores of foreign exchange were invested in imported capital
equipments for the growth of the Company.
APPRECIATION
The Board of Directors would like to express their grateful
appreciation for the assistance, support and co-operation received from
the Financial Institutions, Banks, Government Authorities and
Shareholders during the year under review.
The employees of the Company contributed significantly in achieving the
results. The Directors take this opportunity of thanking them and hope
that they will maintain their commitment to excellence in the years to
come.
For and on behalf of the Board of Directors
BHAGIRATH C ARYA
CHAIRMAN
Place: Mumbai
Date : 29th May, 2012.
Mar 31, 2011
Dear Members,
The Directors have pleasure in presenting the Twenty Ninth Annual
Report together with the Audited Accounts of the Company for the
financial year ended on 31st March, 2011.
FINANCIAL RESULTS [Rs. in crores]
Particulars Year ended Year ended
on 31st on 31st
March, 2011. March, 2010.
[Audited] [Audited]
Turnover & Other Income 3581.27 2732.92
Profit before Depreciation & Tax 264.97 245.22
Less: Depreciation 73.37 62.21
Profit before Tax 191.60 183.01
Less: Provision for Current Taxation 50.95 42.71
Less: Provision for Deferred Tax 9.31 11.27
Less: Taxes for Earlier Years (0.08) 0.03
Net Profit for the year 131.42 129.00
Less: Prior period Adjustments 0.11 0.22
Profit brought forward from previous year329.13 257.52
Surplus available for appropriations 460.44 386.30
Less: Transfer to General Reserve 13.15 12.90
Less: Transfer to Debenture Redemption
Reserve 3.25 0.57
Less: Dividend Distribution Tax For Earlier
Year Written Back (0.14) --
Less proposed Dividend on Preference Shares0.00 --
(Rs. 36457 Previous
YearRs. Nil)
Less: Proposed Dividend on Equity Shares 57.32 37.35
Less: Dividend Distribution Tax on Proposed
Dividend 9.30 6.35
Balance of Profit carried to Balance
Sheet 377.56 329.13
DIVIDEND
As per the terms, dividend will be paid to Preference Shareholder @ X
0.014 per share on 26,61,363 Cumulative Reedemable Preference Shares of
X 100 each. The Board of Directors has recommended dividend of X 8
(Rupees Eight only) per share (@ 80%) on the Equity Share Capital of
the Company. Dividend will be paid to equity shareholders if approved
by members at the Annual- General Meeting. The equity shares issued on
exercise of options under ESOS before the date of book closure will be
considered for the payment of dividend.
DIRECTORS
Mr. Krishen Dev, Mr. B R Gupta and Mr. Sunil Diwakar, are retiring by
rotation and being eligible, offer themselves for re-appointment.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis forms part of the Directors'
Report and is annexed hereto.
ACHIVEMENTS
Performance
The overall production of Polyester Chips during the year has increased
from 4,31,342
MT in 2009-10 to 4,84,389 MT in 2010-11, reflecting an increase of 12%.
The overall production of POY during the year has increased from
1,51,551 MT in 2009-10 to 2,11,017 MT in 2010-11, reflecting an
increase of 39%.
Net sale of the Company also increased from Rs. 2691.31 Crores in
2009-10 to Rs. 3557.99 Crores in 2010-11, reflecting an increase of
32%. The net profit of the
Company has increased from Rs. 129.00 Crores in 2009-10 to Rs.131.42
Crores in 2010-11.
Expansion
The Company has decided to set up a green field PTA project through JBF
Petrochemicals Limited at Manga lore, India. The Company has initiated
acquisition of land activities in SEZ at Mangalore and is finalising
technology suppliers for setting up this project and will be completed
in 3 years.
CAPITAL STRUCTURE
a. Increase in Authorised Share Capital.
During the year under review the Authorised Share Capital of the
Company has been increased from Rs. 100,00,00,000 (Rupees One Hundred
Crores Only) divided into 10,00,00,000 Equity Shares of Rs.10 each to
Rs. 225,00,00,000 (Rupees Two Hundred Twenty.Five Crores Only) divided
into 10,00,00,000 Equity Shares of Rs. 10 each and 1,25,00,000
Cumulative Redeemable Preference Shares of Rs. 100 each, by creation of
additional 1,25,00,000, Cumulative Redeemable Preference Shares of 1100
each and the Memorandum and Articles of Association have been altered
accordingly.
b. Issue of Equity Shares.
During the year the Company has converted balance 700- Foreign Currency
Convertible Bonds (FCCB), worth USD 7 million, into 35,58,333 equity
shares on 23rd August, 2010.
The Company has issued 52,90,471 equity shares @ Rs. 157.15 per share
under Qualified Institutions Placement issue on 30th September, 2010.
5,56,704 equity shares were issued to Directors & employees, who have
exercised their options under ESOS. As a result of the above'the
issued capital has gone up to Rs. 71,64,79,560.
CUMULATIVE REDEEMABLE PREFERENCE SHARES
During the year ended 31st March, 2011, Company has issued 26,61,363 -
2.5% Cumulative Redeemable Preference Shares of Rs. 100 each to Bank of
India.
SUBSIDIARY COMPANY
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Profit and
Loss Account and other documents of the subsidiary companies are not
being attached with the Balance Sheet of the Company. In accordance
with the Accounting Standard AS-21, the audited Consolidated Financial
Statements including the Financial Information of Subsidiary Companies
are provided in the Annual Report.
The Company will make available the Annual Accounts of the subsidiary
companies and the related detailed information to any member of the
Company who may be interested in obtaining the same. The annual
accounts of the Subsidiary Companies will also be kept open for
inspection at the Registered and Corporate Offices of the Company and
that of the respective Subsidiary Companies.
RISK MANAGEMENT
The Board of Directors regularly reviews risks and threats and takes
suitable steps to safeguard Company's interest.
INSURANCE
- All the properties of the Company including buildings, plant and
machinery and stocks have been adequately insured.
FIXED DEPOSITS
During the year Company has not accepted any Fixed Deposits and as
such, no amount of principal or interest on account of Fixed Deposits
is outstanding as on the date of Balance Sheet.
DIRECTORS' RESPONSIBILITY STATEMENT
in compliance with Section 217(2AA) of the Companies Act, 1956, the
Directors report that:
1. In the preparation of the Annual Accounts, the applicable
Accounting Standards . have been followed along with proper
explanation relating to Standard Auditing Practices:
2. Such Accounting policies have been selected and applied
consistently and judgements and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company for the year ended on 31st March, 2011.
3. Proper and sufficient care has been taken for the maintenance of
the adequate -accounting records in accordance with the provisions of
the Companies Act, 1956 for safeguarding the assets of the Company and
for preventing & detecting fraud and other irregularities.
4. The annual accounts have been prepared on a Going Concern Basis.
CORPORATE GOVERNANCE
To comply with conditions of Corporate Governance, pursuant to Clause
49 of the Listing Agreements with the Stock Exchanges, a Management
Discussion and Analysis Statement, Corporate Governance Report and
Auditors' Certificate, are included in the Annual Report.
Code of Conduct for Directors and Employees of. the Company, has been
communicated to them and a copy has been pasted on the web site of
Company.
EMPLOYEES STOCK OPTION SCHEME
First tranche of the options granted to employees were vested on 25th
September, 2010. During the year Compensation Committee met 6 times to
consider the exercise of option & issue of equity shares. During the
year 5,56,704 options were exercised by the Directors & employees and
equal number of equity shares were allotted. Listing formalities were
duly completed after the allotment of these shares.
AUDITORS
M/s Chaturvedi & Shah, Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of the forthcoming Annual
General Meeting and are eligible for re-appointment.
The Company has received a certificate from the proposed Auditors to
the effect that their 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 the
sub-section 3 of section 226 of the Companies Act, 1956.
AUDITORS' OBSERVATIONS ON STANDALONE AND CONSOLIDATED ACCOUNTS
In order to hedge the Company's exposure to foreign exchange and
interest rate, the Company entered into a derivative contract. The
related Currency & Interest Rate Swap losses of Rs. 84.09 Crores for
the year have been charged to Profit & Loss Account. The marked to
market loss in respect of the above derivative contract as on 31st
March, 2011 is Rs. 144.63 Crores, which has not been provided in the
books of account since the company is of the view that the loss, if any
on above derivative contract may be payable only if loss conditions are
triggered on observation dates starting from 3rd August, 2010 and
ending on 3rd July, 2013. The loss if any, will be accounted for on
actual settlements. The banker with whom, derivative transaction is
outstanding has approved a line of credit to fund derivative
losses-partly as debt, convertible debt and preference shares. The
Auditors of the Company have qualified their reports regarding the
non-provision of marked to market losses of derivative contracts
amounting to Rs. 144.63 Crores as on 31 st March 2011, with
consequential effect of Rs. 97.70 crores on Profit after Tax.
COST ACCOUNTING RECORDS
The Company has maintained cost accounting records in respect of
manufacture of Polyester Chips and Partially Oriented Yarn (POY) as
required for the year ended 31st March, 2011.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
A Statement containing necessary information as required under Section'
217(e) of the Companies Act, 1956, read with the Companies (Disclosure
of Particulars in the Report of the Board of Directors) Rules, 1988, is
annexed to this report as an "Annexure A" to the Directors Report.
PARTICULARS OF EMPLOYEES
The information required under the provisions of Section 217(2A) of the
Companies Act, 1956, read with Companies (Particulars of Employees)
Rules, 1975, and forming part of the Report is annexed hereto as an
"Annexure B" to the Directors Report.
FOREIGN EARNINGS/OUT GOINGS
Foreign Exchange earnings by way of exports and interest were Rs.
645.91 Crores and Rs. 2.86 Crores respectively against outgo of Rs.
1129.13 Crores on import of raw materials and Rs. 64.52 Crores of
foreign exchange were invested in imported capital equipments for the
growth of the Company.
APPRECIATION
The Board of Directors would like to express their appreciation for the
assistance, support and co-operation received from the Financial
Institutions, Banks, Government Authorities and Shareholders during the
year under review. The employees of the Company contributed
significantly in achieving the results. The Directors take this
opportunity of thanking them and hope that they will maintain their
commitment to excellence in the years to come.
For and on behalf of the Board of Directors
BHAGIRATH C ARYA
CHAIRMAN
Place: Mumbai
Date: 26th May, 2011.
Mar 31, 2010
The Directors have pleasure in presenting the Twenty Eighth Annual
Report together with the Audited Accounts of the Company for the
financial year ended on 31st March, 2010.
FINANCIAL RESULTS [Rs.in crores]
Particulars Year ended Year ended
on 31st on 31st
March, 2010. March, 2009.
[Audited] [Audited]
Turnovers Other Income 2728.69 2407.58
Profit before Depreciation & Tax 245.22 172.85
Less: Depreciation 62.21 52.30
Profit before Tax 183.01 120.55
Less: Provision for Current Taxation 42.71 20.56
Less : Provision for Deferred Tax 11.27 23,19
Less : Provision for Fringe Benefit Tax - 0.25
Less : Taxes for Earlier Year 0.03 0.28
Net Profit for the year 129.00 76.27
Less : Prior period Adjustments 0.22 2.77
Profit/(Loss)brought forward from previous 257.52 228.43
year
Surplus available for appropriations 386.30 301.93
Less: Transfer to General Reserve 12.90 8.00
Less : Transfer to Debenture Redemption 0.57 -
Reserve
Less : Proposed Dividend on Equity Shares 37.35 31.12
Less: Tax on Proposed Dividend 6.35 5.29
Balance of Profit / [Loss] carried to Balance 329.13 257.52
Sheet
DIVIDEND
The Board of Directors has recommended dividend of Rs. 6/- (Rupees Six
only) per share (@ 60%) on the Equity Share Capital of the Company.
Dividend will be paid to equity shareholders if approved by members at
the Annual General Meeting.
The equity shares issued on conversion of FCCB before the date of book
closure will be considered for the payment of dividend.
DIRECTORS
Mr. Sunil Diwakar, Mr Prakash Mehta, Mrs Veena Arya and Mr. Krishen
Dev, are retiring by rotation and being eligible, offers themselves for
re- appointment.
Mr. N. Balasubramanian, Non-Executive Independent Director, has
resigned from the Board on 24th June, 2009.
Mr. R R. Srinivasan, an Investor Director, representing Citigroup
Venture Capital International Growth Partnership Mauritius Ltd., has
resigned from the Board on 25th May, 2010.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis forms part of the Directors
Report and is annexed hereto.
ACHIVEMENTS
Performance
The overall production of Polyester Chips during the year has
increased from 3,99,554 MT in 2008-09 to 4,31,342 MT in 2009-10,
reflecting an increase of 7.96 %.
Net sale of the Company also increased from Rs.2394.41 Crores in
2008-09 to Rs 2691.31 Crores in 2009-10, reflecting an increase of
12.40 %.
The net profit of the Company has increased from Rs.76.27 Crores in
2008-09 to Rs. 129.00 Crores in 2009-10. As result of this the profit
after tax shows a upward from 3.19% of sales in 2008-09 to 4.79% of
sales in 2009-10.
Expansion
The expansion activities for increasing the capacity for Fully Drawn
Yarn
(FDY) and Partially Oriented Yarn (POY) by 72,000 Tons is under
completion.
This is likely to add another Rs.500 crores to the turn over and is
likely to lead to improvement on the margins. As per the current
indications, this expansion is likely to be completed by August,
2010.
At the plants the activities of debottlenecking are going on. These
activities would result in additional production of Bottle Grade
Chips.
SUBSIDIARY COMPANY
Audited Accounts of JBF Global Pte Ltd. and JBF RAK LLC and Statements
required under Section 212 of Companies Act, 1956, regarding the
subsidiary company forms of part of this Annual Report.
At JBF RAK LLC, UAE, The production of PET Chips was 362,812 Tons and
production of Film was 53,585 Tons.
Total revenue for the year was USD 500.7 million, EBTDA was USD 47.63
million and Net Profit was USD 22.13 million.
At UAE, plans are underway to increase the capacity of Polyester Film.
The Company has also signed non-binding MOU with Oman Oil Company
(part of Oman Refinery) owned by Government of Oman for setting up
a 1.2 Million (12 Lacs) Tonnes per annum Purified Terephthalic Acid-
PTA plant at Oman as a Joint Venture.
RISK MANAGEMENT
The Board of Directors regularly review risks and threats and takes
suitable steps to safeguard Companys interest.
INSURANCE
All the properties of the Company including buildings, plant and
machinery and stocks have been adequately insured.
FIXED DEPOSITS
During the year Company has not accepted any Fixed Deposits and as
such, no amount of principal or interest on account of Fixed Deposits
is outstanding as on the date of Balance Sheet.
DIRECTORS RESPONSIBILITY STATEMENT
In compliance with Section 217(2AA) of the Companies Act, 1956, the
Directors report that:
1. In the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to Standard Auditing Practices;
2. Such Accounting policies have been selected and applied
consistently and judgements and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company for the year ended on 31st March, 2010.
3. Proper and sufficient care has been taken for the maintenance of
the adequate accounting records in accordance with the provisions of
the Companies Act, 1956 for safeguarding the assets of the Company and
for preventing & detecting fraud and other irregularities.
4. The annual accounts have been prepared on a Going Concern Basis.
CORPORATE GOVERNANCE
To comply with conditions of Corporate Governance, pursuant to Clause
49 of the Listing Agreements with the Stock Exchanges, a Management
Discussion and Analysis Statement, Corporate Governance Report and
Auditors Certificate, are included in the Annual Report.
Code of Conduct for Directors and Employees of the Company, has been
communicated to them and a copy has been pasted on the web site of
Company.
EMPLOYEES STOCK OPTION SCHEME
Pursuant to resolution passed on 25th September, 2009, approving
Employees Stock Option Scheme for 21,78,486 equity shares aggregating
3.5% of the issued Equity Share Capital of the Company as on 31 st
March, 2010. During the year under review, your Company granted
21,54,000 options to 298 selected employees and Directors, under JBF
ESOS at exercise price of Rs. 60 per share as per the modified
resolution passed in the previous AGM held on 25th September 2010.
Details of the same are given in the annexure to this report.
AUDITORS
M/s Chaturvedi & Shah, Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of the forthcoming Annual
General Meeting and are eligible for re-appointment. The Company has
received a certificate from the proposed Auditors to the effect that
their 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 the sub-section 3 of
section 226 of the Companies Act, 1956.
AUDITORS OBSERVATIONS ON STANDALONE AND CONSOLIDATED ACCOUNTS
In order to hedge the Companys exposure to foreign exchange and
interest rate, the Company entered into a derivative contract. The
marked to market loss in respect of the above derivative contract as on
31st March, 2010 is Rs.63.37 crores, which has not been provided in the
books of account since the company is of the view that the above loss
is notional in nature and may be payable only if loss conditions are
triggered. The Auditors have qualified the non provision of marked to
market loss of Rs. 63.37 crores for the year ended 31st March, 2010 in
their report with the consequential effect of Rs. 41.83 crores on the
profit after tax.
COST ACCOUNTING RECORDS
The Company has maintained cost accounting records in respect of
manufacture of Polyester Chips and Partially Oriented Yarn (POY) as
required for the year ended 31st March, 2010.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNING AND OUTGO
A Statement containing necessary information as required under Section
217(e) of the Companies Act, 1956, read with the Companies (Disclosure
of Particulars in the Report of the Board of Directors) Rules, 1988, is
annexed to this report as an "Annexure A" to the Directors Report.
PARTICULARS OF EMPLOYEES
The information required under the provisions of Section 217(2A) of the
Companies Act, 1956, read with Companies (Particulars of Employees)
Rules, 1975, and forming part of the Report is annexed hereto as an
"Annexure B" to the Directors Report.
FOREIGN EARNINGS/OUT GOINGS
Foreign Exchange earnings by way of exports and interest were Rs.613.60
Crores and Rs.2.46 Crores respectively against outgo of Rs.669.32
Crores on import of raw materials and Rs.58.15 Crores of foreign
exchange were invested in imported capital equipments for the growth of
the Company.
APPRECIATION
The Board of Directors would like to express their grateful
appreciation for the assistance, support and co-operation received from
the Financial Institutions, Banks, Government Authorities and
Shareholders during the year under review.
The employees of the Company contributed significantly in achieving the
results. The Directors take this opportunity of thanking them and hope
that they will maintain their commitment to excellence in the years to
come.
For and on behalf of the Board of Directors
Place: Mumbai BHAGIRATH C ARYA
Date: 26th May, 2010. CHAIRMAN