Mar 31, 2018
Dear Shareholders,
The Board of Directors has pleasure in presenting the 35th Annual Report on the business and operations of the Company, together with the Audited Financial Statements for the financial year ended 31st March, 2018.
FINANCIAL SUMMARY
The summary of the financial performance of the company for the financial year ended 31stMarch, 2018 as compared to the previous year is as below:
Amounts in Rs. Lakh
Particulars |
2017-18* |
2016-17* |
Revenue from operations and other income |
122,003.00 |
118,696.64 |
Profit before Tax |
57.06 |
(378.99) |
Total tax expenses |
(708.73) |
(160.05) |
Profit (Loss) for the period |
765.79 |
(218.94) |
Other Comprehensive income |
200.46 |
(22.81) |
Total Comprehensive income |
966.46 |
(241.75) |
Earnings per Share (EPS) |
3.58 |
(1.02) |
*Figures are as per IND-AS accounting.
CARRY TO RESERVE
No amount is proposed to be transferred to the General Reserve of the Company for the financial year 2017-18.
RECOMMENDATION OF DIVIDEND
Your Directors do not recommend any dividend for the financial year 2017-18.
MATERIAL CHANGES AND COMMITMENTS IF ANY, AFFECTING FINANCIAL POSITION
For last few years, the Company is going through a tough times. The demand from two wheeler manufacturers has not been doing well. Coupled with some IR issues and increasing fixed costs, the Board, in its meeting held on 21st March, 2018 had decided to close its Manesar Plant. Considering healthy demand from other customers, these events may not affect the overall financial position of the Company significantly. In opinion of the Board, there have been no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year to which the financial statements relate and the date of this Report.
CHANGE IN THE NATURE OF BUSINESS
During the year under review, there has been no change in the nature of business of the Company. The main business activity of the Company primarily continues to be manufacturing and supply of sheet metal components. The Company is continuously exploring the possibility of venturing into new business areas to minimize its business risks. Indian Railways has been one of the main growth drivers in recent times so it was proposed to venture into new products in this area.
STATE OF THE COMPANYâS AFFAIRS, OPERATIONS AND FUTURE PROSPECTS
During the financial year 2017-18, the total revenue of the Company was Rs. 1220.03 Crores as compared to total revenue of Rs. 1186.96 Crores (as per IND-AS) during the previous financial year, thus resulting a marginal growth over previous year. Profit before tax for the year under review was Rs. 0.57 Crore as against loss of Rs. 3.79 Crore (as per IND-AS), in the previous financial year.
Financial year 2017-18 was a challenging year for the Company. The demand from 2W manufacturers was not upto the expectation. Increasing fixed costs impacted the business of the Company adversely. However, during the year under review, demand from commercial vehicle manufacturers and Indian Railways witnessed a very good growth and poised to grow further in coming years.
Due to cost rationalization, the Company has taken many consolidation activities in the recent past. The management has also realigned its focus in new areas. As stated earlier, demand from 2W manufacturers was subdued. The management is working on to increase its customer base & product portfolio for Indian Railways, passenger car manufacturers and CV manufacturers. Recently, the Board has, in principle, approved capacity expansion for Indian Railways.
For further details, Shareholders may refer to Management Discussion and Analysis and Corporate Governance Report that forms part of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
In terms of Regulation 34(2)(e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Schedule V thereto, Management Discussion and Analysis Report has been appended separately, which forms part of this Report and the Annual Report.
CORPORATE GOVERNANCE
Corporate Governance is the application of best Management Practices, Compliance of Laws in true letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders i.e. shareholders, management, employees, customers, vendors, regulators and the community at large. Your Company places prime importance on reliable financial information, integrity, transparency, empowerment and compliance with the law, in letter and spirit.
The regulators have also emphasised on the requirement of good corporate governance practices in corporate management. Your Company also takes proactive approach and revisits its governance practices from time to time so as to meet business and regulatory requirements.
Compliance of Corporate Governance provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the year 2017-18 has been provided in the Corporate Governance Report, which is attached hereto, and forms part of, this Report. The Auditorâs certificate on compliance with corporate governance norms is also attached thereto.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
The Board of Directors of the Company has optimum combination of executive and non-executive directors including independent directors and woman directors in compliance with the provisions of the Companies Act, 2013 (âthe Actâ) and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In terms of the Section 203 of the Act, the Company has designated the Key Managerial Personnel. During the year under review, there were no changes in the composition of Directors of the Company.
In terms of the provisions of the Act and Article of Association of the Company, Mr. Tavinder Singh (DIN: 01175243), retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment.
The present term of appointment of Mrs. Sakshi Kaura as the Joint Managing Director of the Company is valid up to 31st May, 2018. The Board has, subject to the approval of the Members in the forthcoming AGM, approved the re-appointment of Mrs. Sakshi Kaura as Joint Managing Director for another period three years effective from 1st June, 2018.
The present term of appointment of Mr. Tavinder Singh as the Whole-Time Director of the Company is valid up to 28th October, 2018. The Board has, subject to the approval of the Members in the forthcoming AGM, approved the re-appointment of Mr. Tavinder Singh as the Whole-Time Director for another period of three years, with effect from 29th October, 2018.
The Board in its meeting held on 19th July, 2018 appointed Mr. Devashish Mehta as an Additional Director of the Company with immediate effect. Further, the Board appointed Mr. Devashish Mehta, as Joint Managing Director of the Company also with immediate effect, subject to shareholders approval. At the ensuing 35th AGM of the Company, it is proposed to appoint Mr. Devashish Mehta as Joint Managing Director of the Company.
APPOINTMENT/RE-APPOINTMENT OF INDEPENDENT DIRECTOR
The Board in its meeting held on 19th July, 2018, has appointed Mr. Bharat Kaushal as an additional director of the Company in the category of Independent Director with immediate effect. Further, appointment of Mr. Bharat Kaushal as an Independent Director of the Company is subject to approval of the shareholders in the ensuing Annual General Meeting.
Mrs. Novel Singhal Lavasa (DIN: 07071993) was appointed as an Independent Director on the Board of the Company by the members at their 33rd Annual General Meeting, held on 12th September, 2016, for a term of three years w.e.f. 29th October, 2015. Accordingly, her office as Independent Director of the Company is expiring on 28th October, 2018.
In terms of the provisions of Section 149 (10) of the Companies Act, 2013, read with Schedule IV thereto, an Independent director can be re-appointed for another term by passing of a special resolution by the Company.
Accordingly, subject to the approval of the members, the Board of Directors of the Company, at its meeting held on 19th July, 2018, have recommended the re-appointment of Mrs. Novel Singhal Lavasa as Independent Directors of the Company, for a further term of five years, to the members in ensuing Annual General Meeting.
MEETINGS OF THE BOARD
During the year under review, 7 (seven) meetings of the Board were held respectively on 18th April, 2017, 19th April, 2017, 17th August, 2017, 8th September, 2017, 8th December, 2017, 20th January, 2018 and 21st March, 2018. For other details of Board Meetings and committee meetings, members may refer to the Corporate Governance Report attached separately to this report.
COMPOSITION AND RECOMMENDATION OF AUDIT COMMITTEE
During the year under review, there was no change in the composition of the Audit Committee of the Board. Currently, the Audit Committee is composed of four directors as follows:
1. Dr. Ramesh Chand Vaish, Independent Director (Chairman);
2. Dr. T. N. Kapoor, Independent Director (Vice-Chairman and Member);
3. Mr. Jatender Kumar Mehta, Chairman cum Managing Director (Member); and
4. Mrs. Novel S Lavasa, Independent Director (Member)
There has been no instance wherein the Board had not accepted any recommendation of the Audit Committee.
DIRECTORSâ RESPONSIBILITY STATEMENT
In terms of Section 134(3)(c) read with Section 134(5), the directors state thatâ
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) 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 at the end of the financial year and of the profit and loss of the company for that period;
(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern basis;
(e) 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
(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS
All independent directors have given declarations to the effect that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013.
POLICY ON DIRECTORSâ APPOINTMENT AND REMUNERATION
In terms of Section 178(3) of the Companies Act, 2013, upon recommendation of the Nomination and Remuneration Committee, the Board has adopted the Nomination and Remuneration Policy of the Company. Directorsâ appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other prescribed matters, are governed by such policy. In terms of Section 178(4) of the Act, such policy is disclosed on website of the Company at the below link: -http://www.omaxauto.com/other-reports.aspx?mpgid=42 &pgidtrail=81
ANNUAL EVALUATION OF PERFORMANCE OF THE BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS
The evaluation of performance of the Board, its Committees and individual directors for the financial year 2017-18 was carried out in accordance with the policy for evaluation of the performance of the Board of Directors of the Company. The evaluation forms and criteria for evaluation of Board of Directors, Managing Director / Executive Directors, NonExecutive Independent Directors, Board Committees and Chairman of the Company, were circulated to all the directors for their feedback/ ratings. The forms were submitted back to the Company by the directors with their feedback/ ratings. On the basis of their feedback/ratings, the Board evaluated the performance of Board of Directors, Managing Director / Executive Director, Non-Executive Independent Director, Board Committees and the Chairperson of the Company. The Board was satisfied with the evaluation results.
VIGIL MECHANISM
The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations. The Company has established a vigil mechanism and has adopted the âVigil Mechanism/Whistle Blower Policyâ. As per the policy objective, the Company encourages its employees who have concerns about suspected misconduct, to come forward and express these concerns without fear of punishment or unfair treatment. A vigil mechanism provides a channel to the employees and directors to report to the management concerns about unethical behaviour, actual or suspected fraud or violation of the Codes of conduct or policy. The mechanism provides for adequate safeguards against victimization of employees and directors to avail the mechanism and also provide for direct access to the Managing Director/Chairman of the Audit Committee in exceptional cases. Such policy is available on the website of the Company i.e. www.omaxauto.com.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
As a good corporate citizen, the Company understands the significance of inclusive growth and wellbeing of all stakeholders, including the society at large. Your Company has been taking initiatives under Corporate Social Responsibility (CSR) for society at large, well before it has been prescribed under Companies Act, 2013. The Company has a well-defined Policy on CSR as per the requirement of Section 135 of the Companies Act, 2013 which covers the activities as prescribed under Schedule VII of the Companies Act, 2013.
During the year under review, your Company has carried out activities primarily related to promoting/providing education to the poor and underprivileged children.
The details about the policy developed and implemented by the Company on Corporate Social Responsibility initiatives taken during the year, the reasons for the unspent amount on CSR and Composition of CSR Committee, as required under clause (o) of sub-section (3) of the Section 134 of the Companies Act, 2013 are provided in the CSR Annual Report in terms of Rule 8 of the Companies (Corporate Social responsibility) Rules, 2014, which is attached as Annexure-1 and forms part of this report.
CSR Liability for the FY 2017-18 was Rs. 17.32 Lacs. Out of the budgeted amount of Rs. 33.00 Lacs (out of cumulative funds available) for approved projects, an amount of Rs. 26.88 Lacs was spent during the year. Some projects could not been completed by March, 2018 and continued in the following year. The remaining expenditure will be incurred in the following year. However, the Company is committed to spend the unspent amount of CSR expenditure, including of the previous years, aggregating Rs. 22.18 Lacs as calculated below.
Amounts in Rs. Lacs
SI. No. |
Particulars |
2017-18 |
2016-17 |
2015-16 |
2014-15 |
Total |
1. |
CSR Liability (2% of Net Profit) |
17.32 |
12.42 |
18.11 |
51.11 |
98.95 |
2. |
Amount Spent (Upto 2017-18) |
45.32 |
6.30 |
0.00 |
25.16 |
76.77 |
3. |
Amount outstanding as Unspent at 31.03.2018 |
22.18 |
The detailed report on initiatives taken during 2017-18 can be accessed at the website of the company at www. omaxauto.com.
DEVELOPMENT AND IMPLEMENTATION OF A RISK MANAGEMENT POLICY
The Board of Directors of the Company has adopted a policy as the Risk Management Policy of the Company with main objective of to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business. The functions of the Risk Management Committee includes preparation of company-wide framework for risk management, fixing roles and responsibilities, communicating the risk management objective, allocating resources, drawing action plan, determining criteria for defining major and minor risks, deciding strategies for escalated major risk areas, updating company-wide Risk register and preparing MIS report for review of Audit Committee.
The implementation and monitoring of this policy is currently assigned to the Audit Committee of the Board. Though the Board is striving to identify various elements of risk, however, in the opinion of the Board, there has been no element of risk which may threaten the existence of the Company.
STATUTORY AUDITOR
M/s. BGJC & Associates LLP, Chartered Accountants (Firm Registration No. 003304N), were appointed as Statutory Auditor of the Company at the 34th AGM till the conclusion of 39th AGM.
M/s. BGJC & Associates LLP have confirmed their eligibility and qualification required under Section 139, 141 and other applicable provisions of the Companies Act, 2013 and rules issued thereunder (including any statutory modification(s) or re-enactment(s) thereof for the time being in force).
SECRETARIAL AUDITOR
In terms of Section 204 of the Companies Act, 2013 read with the rules made thereunder, and upon the recommendation of the Audit Committee, the Board of Directors has appointed M/s. Chandrasekaran Associates, Company Secretaries as the Secretarial Auditors of the Company to conduct Secretarial Audit for the financial year ending 31st March, 2019.
INTERNAL AUDITORS
In terms of Section 138 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014, the Board of Directors, on recommendation of the Audit Committee, has re-appointed M/s. HM & Associates, Chartered Accountants, M/s. Singhi Chugh & Kumar, Chartered Accountants and M/s. N. Kochhar & Co., Chartered Accountants as Internal Auditors of the Company for the financial year 2018-19.
COST AUDITORS
The Board of Directors of the Company, on the recommendations made by the Audit Committee, has appointed M/s. JSN & Co., Cost Accountants (Firm Registration No. 000455) as the Cost Auditor of the Company to conduct the audit of the cost records for the financial year 2018-19. The remuneration proposed to be paid to the Cost Auditor, subject to ratification by the shareholders of the Company at the ensuing 35th AGM, would not exceed Rs. 1.2 Lakhs excluding taxes and out of pocket expenses, if any.
The Company has received consent from M/s. JSN & Co., Cost Accountants, to act as the Cost Auditor for conducting audit of the cost records for the financial year 2018-19 along with a certificate confirming their independence and armâs length relationship.
AUDITORSâ REPORT
M/s. BGJC & Associates LLP, Chartered Accountants (Firm Registration No. 00304N), Statutory Auditors of the Company have submitted their reports on the financial statements of the Company for the financial year ended 31st March, 2018. There has been no observation or comment of the auditors on financial transactions or matters which has any adverse effect on the functioning of the company; further, there is also no qualification, reservation or adverse remarks in the Auditorsâ Reports on the financial statement of the Company for the financial year ended 31st March, 2018 except that there was one instance of delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund (IEPF) by the Company. In this regard it is clarified that due to last minute request received from one of the shareholders claiming his unpaid dividend amount, the relevant Bank took time to issue the Demand Draft in favour of the shareholders. Further, until the Demand Draft was encashed, the bank could not make the cheque for the final amount, in favour of IEPF. After the Demand Draft was encashed by the shareholder, the Bank issued the cheque and the amount was duly transferred to the IEPFâs account. The delay was unintentional and to protect the interest of the shareholder. However, the management would take steps to avoid such recurrence in future.
There has been no fraud reported by the Statutory Auditors under Section 143(12) of the Companies Act, 2013 for the financial year 2017-18.
In terms of Section 204(1) of the Act, a Secretarial Audit Report, given by M/s. Chandrasekaran Associates, the Secretarial Auditor of the Company, in prescribed form has been annexed as Annexure-2 hereto and forms part of this Report. Further, there has been no qualification, reservation or adverse remarks or disclaimer or qualification made by the Secretarial Auditors in their report for the financial year ended 31st March, 2018 except that there was one instance of delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund (IEPF) by the Company. Necessary explanation has been made in this regard in above paragraphs.
M/s. JSN & Co., Cost Accountants (Firm Registration No. 000455), Cost Auditors of the Company have submitted their reports on the cost records of the Company for the financial year ended 31st March, 2018. There has been no qualification, reservation or adverse remarks in the Auditorsâ Reports on the cost records of the Company for the financial year ended 31st March, 2018.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
The Company does not have any subsidiary company or joint venture or associate company. There was no company which had become or ceased to be the subsidiary, joint venture or associate company of the Company during the year under review.
DEPOSITS
During the year under review, the Company had not invited or accepted any deposits from public under Chapter V of the Companies Act, 2013 and the Rules made thereunder.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/COURTS/TRIBUNALS
There has been no significant and material order passed by any regulator, courts or tribunals impacting the going concern status and operations of the Company in future.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS
For the purposes of effective internal financial control, the Company has adopted various policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. For further discussion on adequacy of internal financial controls, please refer the discussion in Management Discussion and Analysis that forms part of this Report.
LOANS, GUARANTEES AND INVESTMENT
During the financial year under review, the Company has not given any loan or guarantee or made any investment in terms of Section 186 of the Companies Act, 2013.
RELATED PARTY TRANSACTIONS
During the year under review, there was no new transaction with related parties falling under the purview of Section 188 of the Act. All the transactions with the related parties were in ordinary course of business and on armâs length basis, hence, were out of the purview of Section 188 of the Act. All transactions with related parties were duly reviewed by the Audit Committee of the Board. In terms of Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Para A of Schedule V thereto, the Related Party disclosures have been provided separately, which form part of the Annual Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE OUTGO
In terms of Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules, 2014, a statement containing details of conservation of energy, technology absorption, foreign exchange earnings and outgo, in the manner as prescribed under the Companies (Accounts) Rules, 2014, is given in Annexure- 3 hereto and forms part of this Report.
DISCLOSURE OF PRESCRIBED DETAILS OF DIRECTORSâ REMUNERATION VIS-A-VIS EMPLOYEES REMUNERATION
In terms of Section 197(12) of the Act read with Rule 5(1), 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (including any statutory modification and amendments thereto), the ratio of the remuneration of each director to the median employeeâs remuneration and such other details as are required under such rules are attached separately as Annexure - 4, which forms part of this report.
EXTRACT OF ANNUAL RETURN
In accordance with Section 134(3)(a) of the Companies Act, 2013, an extract of the Annual Return in the prescribed format [MGT-9] is appended as Annexure-5, to the Boardâs Report.
CASES FILED UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Directors further state that during the year under review, there was no complaint filed/received pursuant to the Sexual Harassment of Women at Workplace [Prevention, Prohibition and Redressal] Act, 2013.
SUSPENSION OF SECURITIES OF THE COMPANY
The securities of the Company has not been suspended from trading in any of the stock exchanges during the period under review.
ENVIRONMENT HEALTH AND SAFETY (EHS)
Your Company is committed for adhering to best Environmental, Safety & Health Practices during its manufacturing processes. It targets to achieve 100% Environmental Legal compliances with 100% customerâs satisfaction along with continuous trainings and awareness programs on different Environmental Burning Issues from time to time. In order to ensure effective implementation of OMAXâs EHS Policy, the same is systematically communicated across all the levels and the employees are trained from time to time to not only build commitment at their levels but also encourage them to be effective promoters of this philosophy and take EHS as one of their key roles in day to day functioning. Environment, Health and Safety programs in the organization is the prime focus of top management to make safe and healthy work environment. The EHS programs protect the environment, conserve the natural resources, provide safe and healthy conditions for work, and comply with applicable laws and regulations.
The Company is committed for adopting Zero Incident free work environment by following continuous workplace and classrooms trainings, work permit systems, third party safety audits and stringent safety standards in the workplace. Safety and health compliances, start from our gates and occupy the topmost position in the yearly goals of the Company.
The Company targets to maintain minimum Zero Severity Rate and Frequency Rate to achieve Zero injury. All safety compliances being monitored via In-house and third party monthly safety audits to know least non-conformance to ensure our 100% safety compliances for our employees, associates and machinery to improve productivity. A dedicated EHS team is available in each unit under guidance of corporate EHS on day-to-day basis.
All EHS activities are monitored by monthly EHS MIS review mechanism with allocation of sufficient resources under separate cost centre for better accountability. The Company is also dedicated to save our precious natural resources with conservation of water by recycling our effluent after treatment by installing Reverse Osmosis Plants. For continuous monitoring and to operate our all ETPs at highest efficiency, we have established dedicated ETP Labs at all major locations with dedicated ETP Chemists to achieve and fulfil our commitment towards Zero Liquid Discharge. The Companyâs strength is Employee engagement and under this, celebrations of Environment and Safety Day, Fire & Mock Drills, EHS awareness training programs covering all employees and associates under scheduled classroom and floor level training are conducted. EHS Legal Compliance training programs are organized for all senior and middle management for better understanding throughout the year to create more vibrant environment amongst the employees so that each & every employee takes the responsibilities & guides others about non polluted environment. The Company also ensures 100% disposal of all generated Hazardous wastes as per Pollution Control guidelines. The Company has also started disposal of E-waste to authorized re-cyclers.
WEBLINKTO IMPORTANT DOCUMENTS/INFORMATION:
The Company has hosted certain policies/documents/information, including inter alia, Policy for determining âMaterial Subsidiariesâ Policy on dealing with Related Party Transactions, Familiarization programmes for Independent Directors etc. as per the requirement of law or otherwise.
Following link could be used for accessing such polices/ documents/information: http://www.omaxauto.com/other-reports.aspx?mpgid=42&pgidtrail=81
COMPLIANCE OF SECRETARIAL STANDARDS ISSUED BY ICSI
During the financial year 2017-18, the Directors have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards and that such systems are adequate and operating effectively.
ACKNOWLEDGEMENT / APPRECIATION
The Directors wish to convey their appreciation to business associates for their support and contribution during the year. The Directors would also like to thank the employees, shareholders, customers, suppliers, alliance partners, bankers and government agencies for the continued support given by them to the Company and their confidence reposed in the management. We look forward for your continued support in the future.
For Omax Autos Limited
Jatender Kumar Mehta
Place: Gurugram (Chairman Cum Managing Director)
Date: 19th July, 2018 DIN: 00028207
Mar 31, 2015
Dear Shareholders,
The Directors have pleasure in presenting the 32nd Annual Report on
the business and operations of the Company, together with the Audited
Annual Accounts for the financial year ended March 31, 2015.
FINANCIAL SUMMARY:
The summary of the financial performance of the company for the
financial year ended March 31, 2015 as compared to the previous year is
as below:
Amount in Rs. Lac
Particulars 2014-15 2013-14
Net Sales and other income . 101,073.43 98,499.82
PBIDT 5,113.64 5,005.66
Less: Interest 2,024.12 2,409.35
PBDT 3,089.51 2,596.30
Less: Depreciation and
Amortization 3,082.77 3,206.87
Profit before Tax and
Exceptional Income 6.74 (610.57)
Add: Exceptional Income 766.05 -
Profit before Tax 772.79 (610.57)
Less: Tax Expenses (73.61) (200.61)
Net Profit/Loss after Tax 846.39 (409.89)
Prior Period Income/
expenses( )/(-) - (216)
Amount available for
appropriation 826.35 (626.40)
Surplus/Deficit carried to
Balance Sheet 826.35 (626.40)
Earnings per Share (EPS) 3.86 (2.93)
CARRY TO RESERVE
Your Board of directors does not propose any amount to be carried to
any reserve.
RECOMMENDATION OF DIVIDEND
Your management has decided to redeploy the profit generated during the
year into the business of the Company. Hence, your Board of Directors
does not recommend any dividend for the financial year 2014-15.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING FINANCIAL POSITION
In opinion of the Board, there has been no material changes and
commitments affecting the financial position of the Company which have
occurred between the end of the financial year to which the financial
statements relate and the date of this Report.
CHANGE IN THE NATURE OF BUSINESS
There has been no change in the nature of business of the Company
during the year under review. The main business activity of the Company
continues to be manufacturing and supply of automotive components and
parts. The Company has some revenue generated from its wind power
project. However, contribution to total turnover of such revenue is
very insignificant. Notwithstanding the aforementioned, the Company is
continuously exploring the possibility of venturing into new business
areas to minimise its business risks. At opportune time, the Company
may diversify into new business areas.
STATE OF THE COMPANY'S AFFAIRS, OPERATIONS AND FUTURE PROSPECTS OF THE
COMPANY
During the year under review, the company did reasonably well as
compared to the previous year. The Total Turnover/ Sales and Other
Income of the Company were Rs. 1011 Crores as against Rs. 985 Crores for
the previous financial year. The Company recorded a net profit of Rs.
8.26 Crores as against a net loss of Rs. 6.26 Crores during the previous
financial year. The EPS thus has been recorded at 3.86 as compared to
(2.93) for the previous financial year.
For further detail refer to Management Discussion & Analysis and
Corporate Governance Report that forms part of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
In terms of Clause 49 of the Listing Agreement with the stock
exchanges, Management Discussion and Analysis Report has been provided
separately,which forms part of this Report and the Annual Report.
CORPORATE GOVERNANCE
Accountability, fairness and transparency are the cornerstones of good
Corporate Governance practices. These are the building blocks of an
organization. Your Company believes and practices the same philosophy.
Corporate governance is all about effective management of relationship
among all the stakeholders i.e. shareholders, management, employees,
customers, vendors, regulators and the community at large. Your company
places prime importance on reliable financial information, integrity,
transparency, empowerment and compliance with the law in letter and
spirit.
Recently, the regulators have also emphasised on the requirement of
good corporate governance practices in corporate management. Your
company also takes proactive approach and revisits its governance and
practices from time to time so as to meet business and regulatory
requirements.
Compliance with Clause 49 of the Listing Agreement for the year 2014-15
has been given in the Corporate Governance Report, which is attached
to, and forms part of, this Report. The Auditor's certificate on
compliance with corporate governance norms is also attached thereto.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
The Board of Directors of the company has an optimum combination of
executive and non-executive directors and also has independent
directors and woman director in compliance with the legal requirement.
Further, in terms of Section 203 of the Companies Act, 2013, the
Company has also appointed Key Managerial Personnel in compliance with
the said section.
During the year under review, Mr. Jatender Kumar Mehta, Managing
Director; Mr. Ravinder Mehta, Managing Director; Mrs. Sakshi Kaura,
Whole-time Director (now re-designated as Managing Director); Mr.
Jagdish Chandra Jhuraney, Whole-time Director (now resigned); Mr.
Pushpendra Kumar Bansal, Chief Financial Officer and Mr. Sanjeev Kumar,
Company Secretary (now resigned) were designated as the Key Managerial
Personnel of the Company. Mr. Sanjeev Kumar, has resigned from his
office w.e.f. 25th August, 2014. The Board has appointed Mr. Sanjeeb
Kumar Subudhi as the Company Secretary and the Compliance Officer of
the Company w.e.f. 10th September, 2014 who is also a Key Managerial
Personnel. Mr. Ramesh Bahadur Singh, appointed as Whole-time Director
of the company w.e.f. 23rd January, 2015.
The shareholders of the Company have confirmed the appointment of Mr.
Suresh Chand Mathur, Dr. Ramesh Chandra Vaish, Dr. Triloki Nath Kapoor
and Dr. Lalit Bhasin as independent directors by the Board. Further,
the Board has also appointed Mr. Deep Kapuria as an additional director
in the category of Independent Director into the Board, in its meeting
held on 10th November, 2014.
Mr. Salil Bhandari, director and Mr. Jagdish Chandra Jhuraney,
Whole-time Director of the Company have resigned from their respective
offices, with effect from 5th August, 2014 and 31st December, 2014
respectively.
After the end of financial year under review, Dr. Lalit Bhasin,
Independent Director; Mr. Suresh Chand Mathur, Chairman and Independent
Director; Mr. Atul Raheja, Director, Mr. Ramesh Bahadur Singh,
Whole-time Director and Mr. Verinder Kumar Chhabra, non-executive
director have resigned from their respective offices w.e.f. 20th March,
2015, 22nd May, 2015, 5th June, 2015, 16th July, 2015 and 25th July,
2015 respectively.
Further, appointment of Mr. Deep Kapuria as independent director is
subject to the approval of the shareholders in general meeting.
Mr. Deep Kapuria, being additional director, shall hold its office till
the date of ensuing Annual General Meeting. Mr. Kapuria has intended
to be appointed as regular director of the company and the company has
recieved a notice in writing under his hands signifying Mr. Kapuria's
candidature as a director and complied with other requirements of
Section 160 of the Act read with the Companies (Appointment and
Qualification of Directors) Rules, 2014. Your Board recommends
regularization of Mr. Kapuria's appointment at the ensuing Annual
General Meeting.
MEETINGS OF THE BOARD
During the year under review, 4 (four) meetings of the Board were held
on 23rd May, 2014, 24th July, 2014, 10th November, 2014 and 23rd
January, 2015 respectively. For other details of Board Meetings and
committee meetings, please refer to the Corporate Governance Report
attached separately to this report.
COMPOSITION AND RECOMMENDATION OF AUDIT COMMITTEE
The Audit Committee of the Board was reconstituted during the year
under review on 23rd January, 2015. Currently, the Audit Committee is
composed of three directors as follows:
1. Dr. Ramesh Chand Vaish, Independent Director;
2. Dr. Triloki Nath Kapoor, Independent Director; and
3. Mr. Jatender Kumar Mehta, Executive Director
For other details and changes in composition of the Audit Committee
made during the financial year, please refer to the Corporate
Governance Report attached separately to this report. There has been no
instance wherein the Board had not accepted any recommendation of the
Audit Committee.
DIRECTORS' RESPONSIBILITY STATEMENT
In terms of Section 134(3)(c) read with Section 134(5), the directors
state thatÂ
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(b) 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 at the end of the financial year and of the profit and
loss of the company for that period;
(c) the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern
basis;
(e) 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.
(f) the directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS
All independent directors have given declarations to the effect 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.
POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
In terms of Section 178(3) of the Companies Act, 2013, upon
recommendation of the Nomination and Remuneration Committee, the Board
has adopted the Nomination and Remuneration Policy of the Company.
Directors' appointment and remuneration including criteria for
determining qualifications, positive attributes, independence of a
director and other prescribed matters, are governed by such policy. As
per terms of Section 178(4) of the Act, such policy is attached hereto
as Annexure - 1 which forms part of this report.
EVALUATION OF PERFORMANCE OF THE BOARD, ITS COMMITTEES AND INDIVIDUAL
DIRECTORS
The Board is in the process of making the formal annual evaluation of
its own performance and that of its committees and individual
directors. The Company has convened two separate meetings of
Independent Directors wherein the independent directors have already
initiated the evaluation of directors. As recently there have been some
frequent changes in directorship in the Board, the evaluation process
has been delayed a bit. However, the Board is working on the same and
it would be completed as soon as possible. As a good corporate
governance practice, the Company isalso taking professional advice
developing a Policy on formal Board Evaluation. Once adopted by the
Board upon recommendation of the Nomination and Remuneration Committee,
the Committee shall regulate and implement such policy.
VIGIL MECHANISM
The Company is committed to adhere to the highest standards of ethical,
moral and legal conduct of business operations. The Company in its
Board Meeting held on 23rd May, 2014, has established a vigil mechanism
and has adopted the "Vigil Mechanism/Whistle Blower Policy" of the
Company. As per the policy objective, the Company encourages its
employees who have concerns about suspected misconduct, to come forward
and express these concerns without fear of punishment or unfair
treatment. A vigil mechanism provides a channel to the employees and
Directors to report to the management concerns about unethical
behaviour, actual or suspected fraud or violation of the Codes of
conduct or policy. The mechanism provides for adequate safeguards
against victimization of employees and Directors to avail of the
mechanism and also provide for direct access to the Managing
Director/Chairman of the Audit Committee in exceptional cases. Such
policy is made available on the website of the Company.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
Pursuant to Section 135 of the Companies Act, 2013, the Board of
directors of the Company, in its meeting held on 23rd May, 2014, has
constituted the Corporate Social Responsibility (CSR) Committee of the
Board.
Pursuant to Section 134(3)(o) and Section 135(2) of the Companies Act,
2013, read with Rule 9 of the Companies (Accounts) Rules, 2014 and Rule
9 of the Companies (Corporate Social Responsibility Policy) Rules, 2014
the details about the policy developed and implemented by the company
on corporate social responsibility initiatives taken during the year,
has been provided separately as Annexure - 2, which forms part of this
Report.
During the year under review, the Company has not spent the two percent
of the average net profit of the last three financial years as mandated
under the CSR Rule. As this was the first year of implementation of the
CSR policy and there was apprehension in the mind of the management
regarding coverage of any activity as CSR activity, in line/ compliance
with the CSR policy of the Company and Schedule VII of the Act,
adequate number of projects/programs could not been undertaken by the
Company during the year. However, as the regulator has clarified many
things in this regard recently and the Company is also seeking
professional help in this regard, the Company is in a better position
now to implement its CSR policy effectively. The unspent amount for
financial year 2014-15 would be carried forward to next year for
spending on CSR activities.
DEVELOPMENT AND IMPLEMENTATION OF A RISK MANAGEMENT POLICY
The Board of Directors in its meeting held on 10th November, 2014 has
adopted a policy as the Risk Management Policy of the Company with main
objective of to ensure sustainable business growth with stability and
to promote a pro-active approach in reporting, evaluating and resolving
risks associated with the business. The implementation and monitoring
of this policy is currently assigned to the Audit Committee of the
Board. Though the Board is striving to identify various elements of
risk, however, in the opinion of the Board, there has been no element
of risk which may threaten the existence of the Company.
AUDITORS
M/s. A. Kumar Gupta & Co., Chartered Accountants was appointed as the
Statutory Auditors of the Company at the last Annual General Meeting
held on 24thSeptember, 2014. The Auditors shall hold office till the
conclusion of the ensuing Annual General Meeting of the Company. M/s.
A. Kumar Gupta & Co., has also given a Certificate under section 139 &
141 of the Companies Act, 2013, confirming their eligibility and
willingness to accept the office of the Statutory Auditors, if
re-appointed. The Board of Directors of your Company, recommend their
re-appointment for your approval as Statutory Auditors to hold office
from conclusion of the ensuing Annual General Meeting till the
conclusion of the next Annual General Meeting of the Company and to fix
their remuneration.
The Company had appointed M/s. Chandrasekaran Associates, Company
Secretaries, as the Secretarial Auditors to conduct Secretarial Audit
for the financial year ended 31st March, 2015 in terms of Section
204(1) of the Companies Act, 2013.
The Company had appointed M/s. Ravi Sahni & Co. as the Cost Auditor of
the Company to conduct audit of the cost records of the Company for the
financial year ended 31st March, 2015. The Cost Auditor has submitted
their report to the Board and shall submit the same to the Central
Government.
AUDITORS' REPORT
The Statutory Auditors of the Company has submitted their reports on
the consolidated and standalone financial statement of the Company for
the financial year ended 31st March, 2015 which are self-explanatory
and needed no further comments. There has been no observation or
comment of the auditors on financial transactions or matters which has
any adverse effect on the functioning of the company; further, there is
also no qualification, reservation or adverse remarks or disclaimer in
the Auditors' Reports on the consolidated and standalone financial
statement of the Company for the financial year ended 31st March, 2015.
In terms of Section 204(1) of the Act, a secretarial audit report,
given by the Secretarial Auditor in prescribed form has been annexed
hereto and forms part of this Report. Further, there has been no
qualification, reservation or adverse remarks or disclaimer made by the
Secretarial Auditors in their report for the financial year ended 31st
March, 2015.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
The Company has one subsidiary company in the name of "GMAX Auto
Limited" having its main business activities of manufacturng auto parts
and tools, dies, jigs fixtures etc. There was no company which had
become or ceased to be the subsidiary, joint venture or associate
company of the Company during the year. Apart from one subsidiary, the
Company does not have any associate company or joint venture company
within the meaning of Section 2(6) of the Companies Act, 2013.
Report on the performance and financial position of the subsidiary:
The subsidiary company, GMAX Auto Limited has Revenue from operations &
Other Income for the financial year 2014- 15 at Rs. 9114.20 Lac, which is
higher by 878.22% over previous year (Rs. 931.71 Lac in 2013-14).
Earnings before interest, tax, depreciation and amortization (EBITDA)
at Rs. 593.47 Lac, is higher by 267.97% over previous year (Rs. 161.28 Lac
in 2013-14). Net Loss for the financial year 2014-15 at Rs. (793.30 Lac),
has increased considerably by 134.14% as comparison to previous year
i.e. Rs. (338.82 Lac). The subsidiary has incurred the loss primarily
due to interest on long term borrowings for capital expenditure and
depreciation. Being new manufacturing facility, capacity utilization is
relatively low and the subsidiary expects to increase the capacity
utilization in coming years and profitability will also improve.
As per Section 129(3) of the Companies Act, 2013 read with the
Companies (Accounts) Rules, 2014 and Clause 32 and other provisions of
the Listing Agreement, entered into with the Stock Exchanges, a
consolidated financial statement of the Company and its subsidiary has
been prepared and attached to the standalone financial statement of the
Company. The consolidated financial statement has been prepared in
accordance with the relevant accounting standards.
A separate statement containing the salient features of the financial
statement of the subsidiary, for the Financial Year 2014-15, in Form
AOC-1, has been attached along with the financial statement of the
Company. A copy of separate audited financial statement in respect of
the subsidiary shall be providedupon request by a shareholder.
FIXED DEPOSITS
The Company has not invited or accepted fixed deposits from public
during the year under review, under Chapter V of the Companies Act,
2013 and the Rules made thereunder.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/ COURTS/
TRIBUNALS
There has been no significant and material order passed by any
regulator, courts or tribunals impacting the going concern status and
operations of the Company in future.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS
For the purposes of effective internal financial control the Company
has adopted various policies and procedures for ensuring the orderly
and efficient conduct of its business, including adherence to company's
policies, the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the accounting
records and the timely preparation of reliable financial information.
For further discussion on adequacy of internal financial controls,
please refer the discussion in Management Discussion & Analysis that
forms part of this Report.
LOANS, GUARANTEES AND INVESTMENT
During the financial year under review, the Company has not given any
loan or guarantee or made any investment in terms of Section 186 of the
Companies Act, 2013.
RELATED PARTY TRANSACTIONS
During the year under review, there was no new transaction with related
parties falling under the purview of Section 188 of the Act. All the
transactions with the related parties were in ordinary course of
business and on arm's length basis, hence, were out of the purview of
Section 188 of the Act. All transactions with related parties were duly
reviewed by the Audit Committee of the Board.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE OUTGO
In terms of Section 134(3)(m) of the Companies Act, 2013 read with Rule
8 of Companies (Accounts) Rules, 2014, a statement containing details
of conservation of energy, technology absorption, foreign exchange
earnings and outgo, in the manner as prescribed under the Companies
(Accounts) Rules, 2014, is given in Annexure - 3 hereto and forms part
of this Report.
DISCLOSURE OF PRESCRIBED DETAILS OF DIRECTORS' REMUNERATION VIS-A-VIS
EMPLOYEES REMUNERATION
In terms of Section 197(12) of the Act read with Rule 5(1) 5(2) and
5(3) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the ratio of the remuneration of each director
to the median employee's remuneration and such other details as are
required under such rules are attached separately as Annexure - 4,
which forms part of this report.
EXTRACT OF THE ANNUAL RETURN
In terms of Section 92(3) read with Section 134(3)(a) of the Companies
Act, 2013, the extract of the annual return in form MGT-9 is annexed
herewith as Annexure - 5.
ENVIRONMENT HEALTH AND SAFETY (EHS)
Your Company is committed for adhering best Environmental, Safety &
Health Practices during its manufacturing processes. It targets to
achieve 100% Environmental Legal Compliances with 100% customer's
satisfaction along with continuous trainings and awareness programs on
different Environmental Burning Issues from time to time.
Environment, Health and Safety programs in the organization is the
prime focus of top management to make safe and healthy work
environment. The EHS programs protect the environment, conserve the
natural resources, provide safe and healthy conditions for work, and
comply with applicable laws and regulations.
All the units of the Company are ISO 14000 and OHSAS 18000 certified
and adhere to EMS & Occupational Management Systems. It shows the
company's strong commitment towards EHS philosophy, management and
practices. In order to ensure effective implementation of OMAX's EHS
Policy, the same is systematically communicated across all the levels
and the employees are trained in this from time to time to not only
build commitment at their levels but also encourage them to be
effective promoters of this philosophy and take EHS as one of their key
roles in day to day functioning.
The Company is committed for adopting Zero Incident free work
environment by following continuous workplace and classrooms trainings,
work permit systems, third party safety audits and stringent safety
standards in the workplace. Safety and health compliances, start from
our gates and occupy the topmost position in the yearly goals of the
Company. On the same lines, the Company has taken the following steps
in the previous year to show our commitment towards EHS compliances.
The Company targets to maintain minimum Zero Severity Rate and
Frequency Rate to achieve Zero injury. All safety compliances being
monitored via In-house and third party monthly safety audits to know
least non-conformance to ensure our 100% safety compliances for our
employees, associates and machinery to improve productivity. A
dedicated EHS team is available in each unit under guidance of
corporate EHS on day-to-day basis.
All EHS activities are monitored by Monthly EHS MIS review mechanism
with allocation of sufficient resources under separate Cost centre for
better accountability.
The Company is also dedicated to save our precious natural resources
with conservation of water by recycling our effluent after treatment by
installing Reverse Osmosis Plants. For continuous monitoring and to
operate our all ETP's at highest efficiency we have established
dedicated ETP Lab's at all major locations with dedicated ETP Chemist
to achieve and fulfil our commitment towards Zero Liquid Discharge.
The Company also ensure 100% disposal of all generated Hazardous wastes
as per Pollution Control guidelines. The Company has also started
disposal of E-waste to authorized re-cyclers too.
The Company's strength is Employee engagement and under this,
celebrations of Environment and Safety Day, Fire & Mock Drills, EHS
awareness training programs covering all employees and associates under
scheduled classroom and floor level training are conducted. EHS Legal
Compliance's training programs are organized for all senior and middle
management for better understanding throughout the year to create more
vibration amongst the employers so that each every employer took the
responsibilities & guide the others about non polluted environment in
the world place as well as in the society.
WEBLINK TO IMPORTANT DOCUMENTS/INFORMATION:
The Company has hosted certain policies/documents/ information,
including inter alia, Policy for determining 'material' subsidiaries,
Policy on dealing with Related Party Transactions,
familiarisationprogrammes for Independent Directors etc. as per the
requirement of law or otherwise. Following link could be used for
accessing such policies/ documents/information.
http://www.omaxauto.com/other-reports.aspx?mpgid = 42&pgidtrail=81
ACKNOWLEDGEMENT / APPRECIATION
Your Directors place on record their gratitude to the Central
Government, State Governments and Company's Bankers for their
assistance, co-operation and encouragement extended to the Company.
Your Directors also thank and sincerely appreciate the Business
Associates and Employees at all levels for their unstinting efforts in
ensuring an excellent all around operational performance. Last but not
the least the directors would also like to thank valuable shareholders
and other stakeholders for their support and contribution. We look
forward for your continued support in the future.
For Omax Autos Ltd.
Jatender Kumar Mehta Sakshi Kaura
(Managing Director) (Joint Managing
(DIN:00028207) Director (DIN:
02094522)
Place : Gurgaon
Date :25th July, 2015
Mar 31, 2014
Dear Shareholders,
The Directors have pleasure in presenting the 31st Annual Report on
the business and operations of the Company, together with the Audited
Annual Accounts for the financial year ended March 31, 2014.
FINANCIAL RESULTS:
The summary of the financial performance of the company for the
financial year ended March 31, 2014 as compared to the previous year is
as below:
Rs. in Lac
Current Year Previous Year
Particulars 2013-14 2012-13
Net Sales and other
income 98500 110685
PBIDT 5006 7945
Less: Interest 2409 2635
PBDT 2596 5310
Less: Depreciation and
Amortization 3207 3106
Profit/(Loss) before Tax
and Exceptional Income (611) 2204
Add: Exceptional Income - -
Profit/(Loss) before Tax (611) 2204
Less: Provision for Tax
(Including Deferred Tax) (201) 744
Net Profit/(Loss) after Tax (410) 1460
Prior Period Income( )/ (216) 91
expenses(-)
Amount available for
appropriation (626) 1551
Appropriations:
Proposed dividend on
equity shares - 214
Dividend Distribution Tax - 35
Transferred to General
Reserve - 225
Surplus/Deficit carried to
Balance Sheet (626) 1077
DIVIDEND
In view of the loss incurred by the Company, your Board of Directors
does not recommend any dividend for the financial year 2013-14.
OPERATIONS AND FUTURE PROSPECTS OF THE COMPANY
Financial Year (FY) 2013-14 was a challenging year for the Company. The
Indian auto and auto component industry is currently facing its most
formidable challenge that of slowing demand and that too across the
board. Overall Indian Automobile Industry has shown marginal growth in
FY 2013-14 compare to last FY 2012-13.
During the year under review, the Total Turnover/Sales and Other Income
of the Company was Rs. 98,500 Lac as against Rs. 1,10,685 Lac during the
previous financial year. The Company recorded a net loss of Rs. 410 Lac
against a net Profit of Rs. 1460 Lac during the previous financial year.
The EPS thus has been recorded at (2.93).
For further detail kindly refer to Management Discussion & Analysis and
Corporate Governance Report that forms part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE OUTGO
A statement giving details of conservation of energy, technology
absorption, foreign exchange earnings and outgo, in accordance with
Section 217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988, is given in "Annexure I" hereto and forms part of this report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
In terms of Clause 49 of the listing agreement with the stock
exchanges, Management Discussion and Analysis Report are provided
separately in this Annual Report and form part of this Report.
CORPORATE GOVERNANCE
Your Company believes that the great organizations are built on the
foundation of good governance practices. Corporate governance is all
about effective management of relationship among constituents of the
system, i.e. shareholders, management, employees, customers, vendors,
regulators and the community at large. Your Company strongly believes
that this relationship can be built & strengthened through corporate
fairness, transparency and accountability. Your company places prime
importance on reliable financial information, integrity, transparency,
empowerment and compliance with the law in letter and spirit. Strong
governance practices at OMAX have earned for its recognition and have
strengthened its bond of trust not only with the stakeholders but with
the society at large.
Your company also takes proactive approach and revisits its governance
and practices from time to time so as to meet business and regulatory
needs. Compliance with Clause 49 of the Listing Agreement for the year
2013-14 has been given in the Corporate Governance Report, which is
attached and forms part of this report. The Auditor''s certificate on
compliance with corporate governance norms is also attached thereto.
BOARD OF DIRECTORS
Majority of the Board of your company is constituted of independent
directors represented by eminent personality with diversified
professional experience. The Board handles the responsibilities such as
policy formation, performance review & analysis and control. Further,
they have delegated various powers to the Committees of Directors and
senior executives of the Company. The Board reviews delegated powers at
periodic intervals.
The Company has, pursuant to the provisions of Clause 49 of the Listing
Agreements entered into with Stock Exchanges, appointed Mr. Suresh
Mathur, Dr. Ramesh Chandra Vaish, Dr. Triloki Nath Kapoor and Dr. Lalit
Bhasin as Independent Directors of the Company. The Company has
received declarations from the said Independent Directors of the
Company confirming that they meet the criteria of independence as
prescribed both under sub-section (6) of Section 149 of the Companies
Act, 2013 and under the said Clause 49. In accordance with the
provisions of 2013, these Directors are being appointed as Independent
Directors to hold office as per their tenure of appointment mentioned
in the Notice of the forthcoming AGM of the Company. In accordance with
section 152 of the Companies Act, 2013 and Articles of Association of
the company Mr. Verinder Kumar Chhabra, Mrs. Sakshi Kaura Directors of
the Company shall retire by rotation at the ensuing Annual General
Meeting and all being eligible have offered themselves for
re-appointment at the ensuing Annual General Meeting. The Board
recommends their reappointment for your approval.
SUBSIDIARY COMPANY
The Company has formed a Subsidiary Company in the name of "GMAX Auto
Limited" with the main object of manufacture auto parts and tool room
for manufacturing tools dies, jigs fixtures etc. A new manufacturing
plant is being set up in Bawal (Haryana).
As required under the Listing Agreements entered into with the Stock
Exchanges, a consolidated financial statement of the Company and its
subsidiary is attached. The consolidated financial statements have been
prepared in accordance with the relevant accounting standards as
prescribed under Section 211(3C) of the Companies Act, 1956.
These financial statements disclose the assets, liabilities, income,
expenses and other details of the Company and its subsidiary.
Pursuant to the provision of Section 212(8) of the Act, the Ministry of
Corporate Affairs vide its circular dated February 8, 2011 has granted
general exemption from attaching the balance sheet, statement of profit
and loss and other documents of the subsidiary companies with the
balance sheet of the Company. A statement containing brief financial
details of the Company''s subsidiary for the financial year ended March
31, 2014 is included in the Annual Report. The Annual Accounts of the
subsidiary and the related detailed information will be made available
to any member of the Company/its subsidiary seeking such information at
any point of time and are available for inspection by any member of the
Company/its subsidiary at the registered office of the Company. The
annual accounts of the said subsidiary will also be available for
inspection, as above, at the head offices/registered office of the
subsidiary company. The Company shall furnish a copy of the details of
annual accounts of subsidiary to any member on demand.
DIRECTORS'' RESPONSIBILITY STATEMENT
A Directors'' Responsibility Statement setting out the requirement
pursuant to the provisions of section 217(2AA) of the Companies Act,
1956 is annexed as "Annexure-II" hereto and forms a part of this
report.
AUDITOR AND AUDITORS'' REPORT
M/s. A. Kumar Gupta & Co., Chartered Accountants was appointed as the
Statutory Auditors of the Company at the last Annual General Meeting
held on 7th September, 2013. They shall hold office till the
conclusion of the ensuing Annual General Meeting of the Company. M/s A.
Kumar Gupta & Co., have also given a Certificate under section 139,141
of the Companies Act, 2013, confirming their eligibility and
willingness to accept the office of the Statutory Auditors, if
re-appointed. The Board of Directors of your Company, recommend their
re-appointment for your approval as statutory auditors to hold office
from conclusion of the ensuing Annual General Meeting till the
conclusion of the next Annual General Meeting of the Company and to fix
their remuneration.
The Statutory Auditors of the company submitted their report on the
accounts of the Company for the financial year ended 31st March, 2014
which was self-explanatory and needed no comments. There is no
qualification or adverse remarks in the Auditors'' Report on the Annual
Accounts of the Company for the year ended 31st March, 2014.
SECRETARIAL AUDIT
As a measure of good corporate practice, the Company has appointed M/s.
Chandrasekaran Associates, Company Secretaries, Secretarial Auditors to
conduct Secretarial Audit for the year ended 31st March, 2014 and the
same is attached with this Annual Report. The Report is in confirmation
of compliance of all applicable provisions of the Companies Act, 1956,
Listing Agreement and applicable Rules and Regulation under SEBI.
FIXED DEPOSITS
The Company has not invited or accepted fixed deposits from public
during the year under review, within the meaning of Section 58A of the
Companies Act, 1956 and the Rules made there under.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975 as
amended, the name and other particulars of the employees are set out in
the annexure to the Directors'' Report. Having regard to the provisions
of Section 219(1)(b)(iv) of the said Act, the Annual Report excluding
the aforesaid information is being sent to all the members of the
Company and others entitled thereto. Any member interested in obtaining
such particulars may write to the Company Secretary at the Registered/
Corporate office of the Company.
QUALITY CERTIFICATIONS
The best product & service quality and customer satisfaction are an
integral part of your company''s vision. Company''s all round
improvements and achievements in various areas are recognized from time
to time by its customers and industrial associations. The units of the
company are ISO 9001 and ISO/TS-16949/2002 certified for quality and
shows the company''s commitment towards quality management.
ENVIRONMENT HEALTH AND SAFETY (EHS)
As the Omax Group strives to reach greater heights it also focuses
continuously on improvements in the areas of EHS across the
organization.
Environment, Health and Safety is a key factor and one of the prime
drivers of the Company''s vision. At Omax group, excellence is not only
confined to high quality products and services but also the safety and
health of its employees. It believes that safe, healthy, reliable,
efficient and environmentally sound operations make good business
sense.
The units of the company are ISO 14000 and OHSAS 18000 certified and
adhere to EMS & Occupational Management Systems. It shows the company''s
strong commitment towards EHS philosophy, management and practices. In
order to ensure effective implementation of OMAX''s EHS Policy, the same
is systematically communicated across the levels and the employees are
trained in this from time to time to not only build commitment at their
levels but also encourage them to be effective promoters of this
philosophy and take EHS as one of their key roles in day to day
functioning.
Omax is committed for adopting Zero Incident free work environment by
following continuous workplace and classrooms trainings, work permit
systems, third party safety audits and stringent safety standards in
the workplace. Safety and health compliances start from our gates and
occupy the topmost position in our yearly goals. On the same lines, we
have taken the following steps in the previous year to show our
commitment towards EHS compliances.
Omax is maintaining 100% EHS legal compliances as directed by Factory
Act, PCB, CPCB, MoEF or any other Govt. Agency. A dedicated EHS team
is available in each unit under guidance corporate EHS on day-to-day
basis.
All EHS activities are monitored by Monthly EHS MIS review mechanism
with allocation of sufficient resources under separate Cost centre for
better accountability.
Omax target is to maintain minimum Zero Severity Rate and Frequency
Rate to achieve Zero injury. All safety compliances being monitored via
In-house and third party monthly safety audits to know least
non-conformance to ensure our 100% safety compliances for our
employees, associates and machinery to improve productivity.
We are dedicated to save our precious natural resources with
conservation of water by recycling our effluent after treatment by
installing Reverse Osmosis Plants. For continuous monitoring and to
operate our all ETP''s at highest efficiency we have established
dedicated ETP Lab''s at all major locations with dedicated ETP Chemist
to achieve and fulfill our commitment towards Zero Liquid Discharge.
We also ensure 100% disposal of all generated Hazardous wastes as per
Pollution Control guidelines. This year onwards we have started
disposal of E-waste to authorized re-cyclers too.
Omax''s strength is Employee engagement and under this we do
celebrations of Environment and Safety Day, Fire & Mock Drills, EHS
awareness training programs covering all employees and associates under
scheduled classroom and floor level training. EHS Legal Compliance''s
training programs are organised for all senior and middle management
for better understanding throughout the year.
ACKNOWLEDGEMENT / APPRECIATION
Your Directors place on record their gratitude to the Central
Government, State Governments and Company''s Bankers for their
assistance, co-operation and encouragement extended to the Company.
Your Directors also thank and sincerely appreciate the Business
Associates and Employees at all levels for their unstinting efforts in
ensuring an excellent all around operational performance. Last but not
the least the directors would also like to thank valuable shareholders
and other stakeholders for their support and contribution.
We look forward for your continued support in the future.
For and on behalf of the Board of Directors
Omax Autos Ltd.
Place :Gurgaon Suresh Chand Mathur
Date :24th July, 2014 (Chairman)
DIN 00075227
Mar 31, 2013
Dear Shareholders,
The Directors have pleasure in presenting the 30th Annual Report on
the business and operations of the Company, together with the Audited
Annual Accounts for the financial year ended March 31, 2013.
FINANCIAL RESULTS:
The summary of the financial performance of the company for the
financial year ended March 31, 2013 as compared to the previous year is
as below:
Rs. in Lac
Current Year Previous Year
Particulars 2012-13 2011-12
Net Sales and other income 110685 129775
PBIDT 7945 9813
Less: Interest 2635 3153
PBDT 5310 6661
Less: Depreciation and Amortization 3106 2968
Profit before Tax and Exceptional Income 2204 3692
Add: Exceptional Income - 728
Profit before Tax 2204 4420
Less: Provision for Tax
(Including Deferred Tax) 744 1602
Net Profit after Tax (PAT) 1460 2818
Prior period adjustment 91 (5)
Amount available for appropriation 1551 2813
Appropriations:
Proposed dividend on equity shares 214 428
Dividend Distribution Tax 35 69
Transferred to General
Reserve 225 450
Surplus carried to balance sheet 1077 1865
DIVIDEND
In view of the performance for the year under review, the Board is
pleased to recommend a dividend of Rs. 1.00 per equity share i.e. 10% on
face value of Rs. 10/- each, for the year ended 31st March 2013. The
total cash outgo for this purpose would be Rs. 249 Lac (previous year Rs.
497 Lac), which includes Tax on Dividend amounting to Rs. 35 Lac
(Previous year Rs. 69 Lac).
OPERATIONS AND FUTURE PROSPECTS OF THE COMPANY
Financial Year (FY) 2012-13 was a challenging year for the Company. The
global economy, barely a year after recession, witnessed lower economic
growth, resulting primarily from the Euro Zone debt crisis and high Oil
prices, which were fuelled by uncertainties of supply. The Indian auto
and auto component industry is currently facing its most formidable
challenge that of slowing demand and that too across the board. Overall
Indian Automobile Industry has shown marginal growth in FY 2012-13
compare to last FY 2011-12.
The Net sales and other Income of the Company for the year under review
has decressed to Rs. 110685 Lac as compared to Rs. 129775 Lac in the
previous financial year, negative growth of 14.71% on an annualized
basis. The Profit before interest, depreciation and tax (PBIDT) of the
Company decreased to Rs. 7945 Lac during the year under review as
compared to Rs. 9813 Lac in the previous financial decrease of 19.03% on
an annualized basis. During the year under review, Profit before tax
and exceptional income decreased to Rs. 2204 Lac from Rs. 3692 Lac in the
previous financial year a decrease of 40.30% on an annualized basis.
Net profit after tax (PAT) during the year under review decreased to Rs.
1460 Lac as compared to Rs. 2818 Lac during the previous financial year a
decrease of 48.18% on an annualized basis.
For further detail kindly refer to Management Discussion & Analysis and
Corporate Governance Report that forms part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE OUTGO
A statement giving details of conservation of energy, technology
absorption, foreign exchange earnings and outgo, in accordance with
Section 217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988, is given in "Annexure I" hereto and forms part of this report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
In terms of Clause 49 of the listing agreement with the stock
exchanges, Management Discussion and Analysis Report are provided
separately in this Annual Report and form part of this Report.
CORPORATE GOVERNANCE
Your Company believes that the great organizations are built on the
foundation of good governance practices. Corporate governance is all
about effective management of relationship among constituents of the
system, i.e. shareholders, management, employees, customers, vendors,
regulators and the community at large. Your Company strongly believes
that this relationship can be built & strengthened through corporate
fairness, transparency and accountability. Your company places prime
importance on reliable financial information, integrity, transparency,
empowerment and compliance with the law in letter and spirit. Strong
governance practices at OMAX has earned for its recognition and has
strengthened its bond of trust not only with the stakeholders but with
the society at large.
Your company also takes proactive approach and revisits its governance
and practices from time to time so as to meet business and regulatory
needs. Compliance with Clause 49 of the Listing Agreement for the year
2012-13 has been given in the Corporate Governance Report, which is
attached and forms part of this report. The Auditor''s certificate on
compliance with corporate governance norms is also attached thereto.
BOARD OF DIRECTORS
Majority of the Board of your company is constituted of independent
directors represented by eminent personality with diversified
professional experience. The Board handles the responsibilities such as
policy formation, performance review & analysis and control. Further,
they have delegated various powers to the Committees of Directors and
senior executives of the Company. The Board reviews delegated powers at
periodic intervals.
In accordance with section 255 and 256 of the Companies Act, 1956 and
Articles of Association of the company Mr. Suresh Chand Mathur, Dr.
Lalit Bhasin and Mr. Atul Raheja, Directors of the Company shall retire
by rotation at the ensuing Annual General Meeting. All being eligible
have offered themselves for re-appointment at the ensuing Annual
General Meeting. The Board recommends their reappointment for your
approval.
In accordance with the stipulation under Clause 49 of the Listing
Agreement, brief resume of Mr. Suresh Chand Mathur, Dr. Lalit Bhasin
and Mr. Atul Raheja together with the nature of their expertise in
specific areas and names of the Companies in which they hold office of
a Director and/or the Chairman/Membership of Committees of the Board,
is given in the Notice of the Annual General Meeting.
SUBSIDIARY COMPANY
The Company has formed a Subsidiary Company in the name of "GMAX Auto
Limited" with the main object of manufacture auto parts and tool room
for manufacturing tools dies, jigs fixtures etc. A new manufacturing
plant is being set up in Bawal (Haryana).
As required under the Listing Agreements entered into with the Stock
Exchanges, a consolidated financial statement of the Company and its
subsidiary is attached. The consolidated financial statements have been
prepared in accordance with the relevant accounting standards as
prescribed under Section 211(3C) of the Act.
These financial statements disclose the assets, liabilities, income,
expenses and other details of the Company and its subsidiary.
Pursuant to the provision of Section 212(8) of the Act, the Ministry of
Corporate Affairs vide its circular dated February 8, 2011 has granted
general exemption from attaching the balance sheet, statement of profit
and loss and other documents of the subsidiary companies with the
balance sheet of the Company. A statement containing brief financial
details of the Company''s subsidiary for the financial year ended March
31, 2013 is included in the Annual Report. The Annual Accounts of the
subsidiary and the related detailed information will be made available
to any member of the Company/its subsidiary seeking such information at
any point of time and are available for inspection by any member of the
Company/its subsidiary at the registered office of the Company. The
annual accounts of the said subsidiary will also be available for
inspection, as above, at the head offices/registered office of the
subsidiary company. The Company shall furnish a copy of the details of
annual accounts of subsidiary to any member on demand.
DIRECTORS'' RESPONSIBILITY STATEMENT
A Directors'' responsibility statement setting out the requirement
pursuant to the provisions of section 217(2AA) of the Companies Act,
1956 is annexed as "Annexure-II" hereto and forms a part of this
report.
AUDITOR AND AUDITORS'' REPORT
M/s. A. Kumar Gupta & Co., Chartered Accountants were appointed as the
Statutory Auditors of the Company at the last Annual General Meeting
held on 8th September, 2012. They shall hold office till the
conclusion of the ensuing Annual General Meeting of the Company. M/s A.
Kumar Gupta & Co., have also given a Certificate under section 224(1B)
of the Companies Act, 1956, confirming their eligibility and
willingness to accept the office of the Statutory auditors, if
re-appointed. The Board of Directors of your Company, recommend their
re-appointment for your approval as statutory auditors to hold office
from conclusion of the ensuing Annual General Meeting till the
conclusion of the next Annual General Meeting of the Company and to fix
their remuneration.
The Statutory auditors of the company submitted their report on the
accounts of the Company for the financial year ended 31st March, 2013
which was self-explanatory and needed no comments. There is no
qualification or adverse remarks in the Auditors'' Report on the Annual
Accounts of the Company for the year ended 31st March, 2013.
SECRETARIAL AUDIT:
As a measure of good corporate practice, the Company has appointed M/s.
Chandrasekaran Associates, Company Secretaries, Secretarial Auditors to
conduct Secretarial Audit for the year ended 31st March 2013 and the
same is attached with this Annual Report. The Report is in confirmation
of compliance of all applicable provisions of the Companies Act, 1956,
Listing Agreement and applicable Rules and Regulation under SEBI.
FIXED DEPOSITS:
The Company has not invited or accepted fixed deposits from public
during the year under review, within the meaning of Section 58A of the
Companies Act, 1956 and the Rules made there under.
PARTICULARS OF EMPLOYEES:
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975 as
amended, the name and other particulars of the employees are set out in
the annexure to the Directors'' Report. Having regard to the provisions
of Section 219(1)(b)(iv) of the said Act, the Annual Report excluding
the aforesaid information is being sent to all the members of the
Company and others entitled thereto. Any member interested in obtaining
such particulars may write to the Company Secretary at the Registered/
Corporate office of the Company.
QUALITY CERTIFICATIONS
The best product & service quality and customer satisfaction are an
integral part of your company''s vision. Company''s all round
improvements and achievements in various areas are recognized from time
to time by its customers and industrial associations. The units of the
company are ISO 9001 and ISO/TS-16949/2002 certified for quality and
shows the company''s commitment towards quality management.
ENVIRONMENT HEALTH AND SAFETY (EHS)
As the Omax Group strives to reach greater heights, the Company is
focusing on continual improvement in the areas of health, safety and
environment across the group.
Health and safety is a key performance indicator and one of the prime
drivers of the Company''s corporate vision. At Omax group, excellence is
not only confined to high quality products and services but also the
safety and health of its employees as safe, healthy, reliable,
efficient and environmentally sound operations make good business
sense.
We are committed to fostering an accident-free ambience by following
stringent safety standards in the workplace. Safety and health
responsibilities occupy the first and foremost position in our list of
priorities. The company strives to improve workplace safety by
arranging for training and development programs to keep employees
abreast with the latest in the process technology. We have a policy of
promoting safe and healthy attitudes at work, thereby effectively
reducing the number of accidents, injuries and illnesses. Omax group
is committed to ensure zero harm to its employees, contractors and the
communities in which it operates. This is integral to the Company''s
business process and is laid down in the Company''s health and safety
policies, standards and working procedures. Omax group is committed to
protect the environment. On the same lines, we have taken the following
steps in the previous year to show our commitment towards EHS:
- We have strengthened our EHS teams by bringing in more expertise. The
Audit scores have seen a 15-20% improvement overall.
- 100 kWp Roof Top Solar Photo Voltaic Systems at Automax Binola was
commissioned in March 2013. Additional 900 kWp rooftop solar plant is
in process across other units also. This will lead to about 5-7% of
total energy consumption of the group coming from Solar.
- The total clean energy capacity (i.e. 300 kWp Rooftop Solar and 2.5
MW Wind power project) has led to GHG reduction of approximately 4400
tons of CO2e per annum.
- We follow environment friendly processes and adhere to global safety
norms. The company adopts new processes and technologies continuously
in an attempt to minimize pollution and waste.
- We believe in using natural resources responsibly and disposing
by-products safely. In this regard, resource saving kaizen projects
have been implemented at various units.
ACKNOWLEDGEMENT / APPRECIATION
Your Directors place on record their gratitude to the Central
Government, State Governments and Company''s Bankers for their
assistance, co-operation and encouragement extended to the Company.
Your Directors also thank and sincerely appreciate the Business
Associates and Employees at all levels for their unstinting efforts in
ensuring an excellent all around operational performance. Last but not
the least the directors would also like to thank valuable shareholders
and other stakeholders for their support and contribution.
We look forward for your continued support in the future.
For and on behalf of the Board of Directors
Omax Autos Ltd.
Place : Gurgaon Suresh Chand Mathur
Date :28th May, 2013 (Chairman)
Mar 31, 2012
The Directors have pleasure in presenting the 29th Annual Report on
the business and operations of the Company, together with the Audited
Accounts for the financial year ended March 31, 2012.
FINANCIAL RESULTS:
The summary of the financial performance of the company for the
financial year ended March 31, 2012 as compared to the previous year is
as below:
Current Year Previous Year
Particulars 2011-12 2010-11
Net Sales and other 1,29,775.22 1,17,221.75
income
PBIDT 9,813.45 8,943.19
Less: Interest 3,152.90 3,405.41
PBDT 6,660.55 5,537.78
Less: Depreciation and 2,968.16 2,916.50
Amortization
Profit before Tax and 3,692.39 2,621.28
Exceptional Income
Add: Exceptional Income 728.00 531.68
Profit before Tax 4,420.39 3,152.96
Less: Provision for Tax 1,602.49 1,010.02
(Including Deferred Tax)
Net Profit after Tax (PAT) 2,817.90 2,142.94
Prior period Income /(-) (5.38) (14.03)
Amount available for 2,812.52 2,128.91
appropriation
Appropriations:
Proposed dividend on 427.76 427.76
equity shares
Dividend Distribution Tax 69.39 71.05
Transferred to General 450.00 200.00
Reserve
Surplus carried to 1,865.35 1,430.10
balance sheet
DIVIDEND
In view of the performance for the year under review, the Board is
pleased to recommend a dividend of Rs. 2.00 per equity share i.e. 20% on
face value of Rs. 10/- each, for the year ended 31st March 2012. The
total cash outgo for this purpose would be Rs. 497.15 Lac (previous year
Rs. 498.81 Lac), which includes Tax on Dividend amounting to Rs. 69.39 Lac
(Previous year Rs. 71.05 Lac).
OPERATIONS AND FUTURE PROSPECTS OF THE COMPANY
Financial Year (FY) 2011-12 was a challenging year for the Company. The
global economy, barely a year after recession, witnessed lower economic
growth, resulting primarily from the Euro Zone debt crisis and high oil
prices, which were fuelled by uncertainties of supply. However, despite
the challenges, your Company has been able to remain strong and
performed well during the year under review.
The Net sales and other Income of the Company for the year under review
has increased to Rs. 129775.22 Lac as compared to Rs. 117221.75 Lac in the
previous financial year, registering a whopping growth of 10.71% on an
annualized basis. The Profit before interest, depreciation and tax
(PBIDT) of the Company increased to Rs. 9813.45 Lac during the year under
review as compared to Rs. 8943.19 Lac in the previous financial year
registering an increase of 9.73% on an annualized basis. During the
year under review, Profit before tax and exceptional income increased
to Rs. 3692.39 Lac from Rs. 2621.28 Lac in the previous financial year
registering an increase of 40.86% on an annualized basis. Net profit
after tax (PAT) during the year under review increased to Rs. 2817.90 Lac
as compared to Rs. 2142.94 Lac during the previous financial year
registering an increase of 31.50% on an annualized basis.
For further detail Kindly refer to Management Discussion & Analysis and
Corporate Governance Report that forms part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE OUTGO.
A statement giving details of conservation of energy, technology
absorption, foreign exchange earnings and outgo, in accordance with
Section 217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988, is given in "Annexure I" hereto and forms part of this report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
In terms of clause 49 of listing agreement with the stock exchanges,
Management Discussion and Analysis Report are provided separately in
this Annual Report and forms part of this Report.
CORPORATE GOVERNANCE
Your Company believes that the great organizations are built on the
foundation of good governance practices. Corporate governance is all
about effective management of relationship among constituents of the
system, i.e. shareholders, management, employees, customers, vendors,
regulators and the community at large. Your Company strongly believes
that this relationship can be built & strengthened through corporate
fairness, transparency and accountability. Your company places prime
importance on reliable financial information, integrity, transparency,
empowerment and compliance with the law in letter and spirit. Strong
governance practices at OMAX has earned for it recognition and has
strengthened its bond of trust not only with the stakeholders but with
the society at large.
Your company also takes proactive approach and revisits its governance
and practices from time to time so as to meet business and regulatory
need. Compliance with Clause 49 of the Listing Agreement for the year
2011-12 has been given in the corporate governance report, which is
attached and forms part of this report. The Auditor's certificate on
compliance with corporate governance norms is also attached thereto.
BOARD OF DIRECTORS
Majority of the Board of your company is constituted of independent
directors represented by eminent persons with diversified professional
experience. The Board handles the responsibilities such as policy
formation, performance review & analysis and control. Further, they
have delegated various powers to the Committees of Directors and senior
executives of the Company. The Board reviews delegated powers at
periodic intervals.
In accordance with section 255 and 256 of the Companies Act, 1956 and
Articles of Association of the company Dr. Triloki Nath Kapoor, Dr.
Ramesh Chandra Vaish and Mr. Verinder Kumar Chhabra, Directors of the
Company shall retire by rotation at the ensuing Annual General Meeting.
All being eligible have offered themselves for re- appointment at the
ensuing Annual General Meeting. The Board recommends their
reappointment for your approval.
In accordance with the stipulation under Clause 49 of the Listing
Agreement, brief resume of Dr. Triloki Nath Kapoor, Dr. Ramesh Chandra
Vaish and Mr. Verinder Kumar Chhabra together with the nature of their
expertise in specific areas and names of the Companies in which they
hold office of a Director and/or the Chairman/Membership of Committees
of the Board, is given in the Notice of the Annual General Meeting.
SUBSIDIARY COMPANY
The Company has formed a Subsidiary Company in the name of "GMAX Auto
Limited" with the main object of manufacture of auto parts and tool
room for manufacturing tools dies, jigs fixtures etc. on 20th day of
October, 2011. The Certificate of the Commencement of the Business has
also been obtained from the Registrar of Companies dated 3rd day of
November 2011. A new manufacturing plant is being set up in Bawal
(Haryana).
As required under the Listing Agreements entered into with the Stock
Exchanges, a consolidated financial statements
of the Company and its subsidiary is attached. The consolidated
financial statements have been prepared in accordance with the relevant
accounting standards as prescribed under Section 211(3C) of the Act.
These financial statements disclose the assets, liabilities, income,
expenses and other details of the Company, its subsidiary.
Pursuant to the provision of Section 212(8) of the Act, the Ministry of
Corporate Affairs vide its circular dated February 8, 2011 has granted
general exemption from attaching the balance sheet, statement of profit
and loss and other documents of the subsidiary companies with the
balance sheet of the Company. A statement containing brief financial
details of the Company's subsidiary for the financial year ended March
31, 2012 is included in the Annual Report. The Annual Accounts of the
subsidiary and the related detailed information will be made available
to any member of the Company/its subsidiary seeking such information at
any point of time and are available for inspection by any member of the
Company/its subsidiary at the registered office of the Company. The
annual accounts of the said subsidiary will also be available for
inspection, as above, at the head offices/registered office of the
subsidiary company. The Company shall furnish a copy of the details of
annual accounts of subsidiary to any member on demand.
DIRECTORS RESPONSIBILITY STATEMENT
A Directors' responsibility statement setting out the requirement
pursuant to the provisions of section 217(2AA) of the Companies Act,
1956 is annexed as "Annexure-II" hereto and forms a part of this
report.
AUDITORS AND AUDITORS' REPORT
M/s. A. Kumar Gupta & Co., Chartered Accountants were appointed as the
Statutory Auditors of the Company at the last Annual General Meeting
held on 30th September, 2011. They shall hold office till the
conclusion of the ensuing Annual General Meeting of the Company. M/s A.
Kumar Gupta
& Co., have also given a Certificate under section 224(1B) of the
Companies Act, 1956, confirming their eligibility and willingness to
accept the office of the Statutory auditors, if re-appointed. The Board
of Directors of your Company, recommend their re-appointment for your
approval as statutory auditors to hold office from conclusion of the
ensuing Annual General Meeting till the conclusion of the next Annual
General Meeting of the Company and to fix their remuneration.
The Statutory auditors of the company submitted their report on the
accounts of the Company for the financial year ended 31st March, 2012
which was self-explanatory and needed no comments. There is no
qualification or adverse remarks in the Auditors' Report on the Annual
Accounts of the Company for the year ended 31.03.2012.
SECRETARIAL AUDIT
As a measure of good corporate practice, the Company has appointed M/s.
Chandrasekaran Associates, Company Secretaries, Secretarial Auditors to
conduct Secretarial Audit for the year ended 31st March, 2012 and the
report received from them is attached with this Annual Report. The
Report is in confirmation of compliance of all applicable provisions of
the Companies Act, 1956, Listing Agreement and applicable Rules and
Regulation under SEBI.
FIXED DEPOSITS
The Company has not invited or accepted fixed deposits from public
during the year under review, within the meaning of Section 58A of the
Companies Act, 1956 and the Rules made there under.
PARTICULARS OF EMPLOYEES
The details pursuant to Section 217(2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules, 1975 are set
out in the Annexure-III, which forms part of this Report.
QUALITY CERTIFICATIONS
The best product & service quality and customer satisfaction are an
integral part of your company's vision. Company's all round
improvements and achievements in various areas are recognized from time
to time by its customers and industrial associations. The units of the
company are ISO 9001 and ISO/TS-16949/2002 certified for quality and
shows the company's commitment towards quality management.
ENVIRONMENT, HEALTH AND SAFETY (EHS)
As the Omax Group strives to reach greater heights, the Company is
focusing on continual improvement in the areas of health, safety and
environment across the group.
Health and safety is a key performance indicator and one of the prime
drivers of the Company's corporate vision. At Omax group, excellence is
not only confined to high quality products and services but also the
safety and health of its employees as safe, healthy, reliable,
efficient and environmentally sound operations make good business
sense.
We are committed to fostering an accident-free ambience by following
stringent safety standards in the workplace. Safety and health
responsibilities occupy the first and foremost position in our list of
priorities. The company strives to improve workplace safety by
arranging for training and development programmes to keep employees
abreast with the latest in the process technology. We have a policy of
promoting safe and healthy attitudes at work, thereby effectively
reducing the number of accidents, injuries and illnesses. Omax group is
committed to ensure zero harm to its employees, contractors and the
communities in which it operates. This is integral to the Company's
business process and is laid down in the Company's health and safety
policies, standards and working procedures. Omax group is committed to
protect the environment. On the same lines, we have implemented a Roof
Top Solar Photo Voltaic Systems at our two major plants. We follow
environment friendly processes and adhere to global safety norms. The
company adopts new processes and technologies continuously in an
attempt to minimize pollution and waste. We believe in using natural
resources responsibly and disposing by-products safely.
To show our commitment towards clean energy generation, a 2.5 MW Wind
Power Project (2 x 1.25 MW) was commissioned successfully in the month
of March 2012 at Jaisalmer, Rajasthan.
Annexure II to the Directors' Report
Directors' responsibility Statement pursuant to the provisions of
section 217(2AA) of the Companies Act, 1956 and forming part of the
Directors' Report for the year ended March 31, 2012;
The statement of the Directors' responsibility on the annual accounts
of the Company for the financial year ended March 31, 2012 is provided
below:
1) That in the preparation of the annual accounts for the financial
year ended 31st March 2012 the applicable Accounting Standards have
been followed along with proper explanation relating to material
departures;
2) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for the year under the review;
3) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities;
4) That the Directors have prepared the accounts for the financial year
ended 31st March 2012 on a 'going concern' basis.
ACKNOWLEDGEMENT / APPRECIATION
Your Directors place on record their gratitude to the Central
Government, State Governments and Company's Bankers for their
assistance, co-operation and encouragement extended to the Company.
Your Directors also thank and sincerely appreciate the Business
Associates and Employees at all levels for their unstinting efforts in
ensuring an excellent all around operational performance. Last but not
the least the directors would also like to thank valuable shareholders
and other stakeholders for their support and contribution.
We look forward for your continued support in the future.
For and on behalf of the Board of Directors
Omax Autos Ltd.
Place : New Delhi Suresh Mathur
Date : 28th July 2012 (Chairman)
Mar 31, 2010
The Directors take immense pleasure in presenting the TWENTY SEVENTH
ANNUAL REPORT together with Audited Statement of Accounts for the year
ended 31st March, 2010.
FINANCIAL RESULTS
The summary of the financial performance of the company for the
financial year ended March 31, 2010 as compared to the previous year is
as below:
Rs. in Crores
Particulars Current Year Previous Year
2009-10 2008-09
Net Sales and other income 875.58 834.35
PBIDT 77.89 79.91
Less: Interest 32.32 42.39
PBDT 45.57 37.52
Less: Depreciation 29.20 28.50
Profit before Exceptional
Income 16.37 9.02
Add: Exceptional Income 4.07 -
Profit Before Tax 20.44 9.02
Less: Provision for tax 6.13 3.60
Net Profit After Tax (PAT) 14.31 5.42
Prior period Income + / (-) (0.10) 1.35
Amount available for
appropriation 14.21 6.77
Appropriations:
Proposed dividend on
equity shares 3.21 2.14
Dividend Distribution Tax 0.54 0.36
Transferred to General Reserve 4.00 4.00
Surplus carried to balance sheet 6.46 0.27
DIVIDEND
In view of the improved performance for the year under review, the
Board is pleased to recommend a dividend of Rs. 1.50 per equity share
i.e. 15% on face value of Rs. 10/- each, for the year ended 31st March
2010. The total cash outgo for this purpose would be Rs. 3.75 Crores
(previous year Rs. 2.50 Crores), which includes Ta x on Dividend
amounting to Rs. 0.54 Crore (Previous year Rs 0.36 Crore).
OPERATIONS AND FUTURE PROSPECTS OF THE COMPANY
The Net sales and other Income of the Company for the year under review
has increased to Rs. 875.58 Cr. as compared to Rs. 834.35 Cr. in the
previous financial year. This increase is
due to overall growth in domestic market and management initiative of
diversification of companys business.
Despite the fact that total outstanding loans have increased, interest
cost has reduced by Rs. 10.07 Cr. from Rs.42.39 Cr to Rs.32.32 Cr. This
was primarily on account of reduction in interest rates and the
Companys continuous efforts to minimize its overall working capital
costs and optimal fund utilization.
The profit before exceptional income in the year under review is Rs.
16.37 Cr. in comparison to Rs. 9.02 Cr. recorded last year primarily
driven by reduced interest costs. The Net Profit After Tax for the year
2009-10 has increased to Rs. 14.31 Cr. as compared to Rs. 5.42 Cr. in
corresponding year, which includes an exceptional income of 4.07 Cr.
from sale of land.
However, for the next financial year, management is very confident that
your company will touch the INR 10 Billion mark, by achieving a
turnover of Rs. 1000 Crores. This is possible due to forecasted boom in
auto sector, full scale commercial production at Lucknow plant and
diversification decision for getting into Home Furnishing and Railways.
Further, we expect reduction in power cost due to successful
installation of 100 kWp rooftop solar plants as well as Gas based Power
Generators at Dharuhera & Manesar unit respectively. All these factors
in turn will lead to improvement of the profitability of your company.
Two Wheelers
During the year 2009-10, this sector registered a growth of 25% from
84.41 Lacs vehicles to 105.11 Lacs vehicles. The companys major
customer M/s. Hero Honda Motors Limited was the front runner in terms
of sale in two wheeler segment.
For Omax Autos, this segment contributed net sales of Rs. 658.18
Crores during the year. Your Company is confident that the two wheeler
segment, led by Hero Honda Motors will continue to witness growth in
volumes and being a major supplier, your Company would be able to
participate in this growth.
Commercial Vehicles
In Auto Sector, Commercial vehicle segment recorded a growth of 35%
during 2009-10 i.e. from 4.27 Lacs to 5.76 Lacs vehicles. Medium &
heavy commercial segment faced 40% downturn during 2008-09 but has now
started to grow again with robust economy, industry and infrastructure
growth.
During the year under review, the Companys Lucknow Plant had started
its commercial production in September 2009. The Plant has been set up
with an initial investment of Rs. 42 Crores and is engaged in the
manufacture of chassis for Light & Heavy Commercial Vehicles for Tata
Motors Limited.
The net sales under this segment was Rs. 8.26 Crores during the year
2009-10. Your Directors expect the commercial vehicle
market to grow further at a good pace. Omax is making continuous
efforts to establish contacts with other commercial vehicle
manufacturers for new business and expanding the product portfolio.
With first full year operations, your company is expected to post a
decent growth in this segment during 2010-11.
PASSENGER CAR SEGEMENT
During the year 2009-10, the passenger vehicle segement registered a
growth of 25.6% reporting domestic sales of 1949776 vehicles as
compared to 1552703 vehicles in the previous year.
The Net Sales of Your Company in this segment during the year under
review was Rs. 81.57 Crores through its "Automax" plant at Binola.
Automax is market leader in piston rod manufacturing, and secured
orders to organically grow with International Tractors Limited (ITL)
and New Holland Tractors. It is also in advanced stage of discussion
for business from Earthmoving equipment manufacturers.
Bangalore plant is performing well with the growth of business with TVS
Motors Limited. The Unit is in the process of securing new orders from
existing customers and is also trying to expand its product line and
customer base with active discussion with OEMs including earthmoving
equipment manufacturers.
Diversification
Your Company has made efforts towards diversifying the product
portfolio and exploring the opportunity in various fields including the
Home Furnishing and Railways. The strategy is to utilize the existing
infrastructure and resources, thereby increasing the overall
efficiencies of the plants. Nevertheless, wherever required, new
equipments are also being added to complement the existing set up and
to meet the enhanced requirements of its prestigious customers.
(A) Home Furnishing Business: Your Company had started the production
in Home Furnishing segment with Business from IKEA in the year
2008-2009, and this business has continued to grow for Omax. The Home
Furnishing business of the company is divided into two parts viz.
Stainless Steel Business and Carbon Steel Business.
Presently the Stainless Steel and Carbon Steel made Home Furnishing
Products are being manufactured at plants located at Bawal and
Dharuhera.
In this segment, total Sales of your company grew by Rs. 45.72 Crores
from Rs. 24.42 Crores in 2008 -2009 to 70.14 Crores in 2009-2010.
In the year 2010-2011 this business is expected to grow with the launch
of another new product "Stainless Steel Cookware" in high end range, to
benefit from the existing opportunity in this business segment.
(B) Railway Business: Your Company has set up a new plant at Gurgaon
for manufacture and supply of components for Railways and has commenced
supplies to Indian Railways on tender basis.
Your Company is making serious inroad into both these segments. This
would increase the product profile of the Company and also spread the
business risk. Each of these lines is expected to further create
opportunities in the near future. The Company has the necessary
resources to exploit these avenues.
Conservation of Energy, Technology Absorption, Foreign Exchange Outgo
A statement giving details of conservation of energy, technology
absorption, foreign exchange earnings and outgo, in accordance with
Section 217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988, is given in "Annexure I" hereto and forms part of this report.
Management Discussion and Analysis Report
In terms of clause 49 of listing agreement with the stock exchanges,
Management Discussion and Analysis Report forms annexure to this report
elsewhere.
Corporate Governance
Your Company believes that the great organizations are built on the
foundation of good governance practices. Corporate governance is all
about effective management of relationship among constituents of the
system, i.e. shareholders, management, employees, customers, vendors,
regulatory and the community at large. Your Company strongly believes
that this relationship can be built & strengthened through corporate
fairness, transparency and accountability. Your company places prime
importance on reliable financial information, integrity, transparency,
empowerment and compliance with the law in letter and spirit. Your
company also takes proactive approach and revisits its governance and
practices from time to time so as to meet business and regulatory need.
Compliance with Clause 49 of the Listing Agreement for the year 2009-10
has been given in the corporate governance report, which is attached
and forms part of this report. The Auditors certificate on compliance
with corporate governance norms is also attached thereto.
Board of Directors
Majority of the Board of your company is constituted of independent
directors represented by eminent persons with diversified professional
experience. The Board handles the responsibilities such as policy
formation, performance review and analysis and controls. Further they
have delegated various powers to the Committees of Directors and senior
company
executives. The Board reviews delegated powers at periodic intervals.
In accordance with section 255 and 256 of the Companies Act, 1956 and
Articles of Association of the company, Mr. Suresh Mathur, Mr. Lalit
Bhasin and Mr. V. K. Chhabra, Directors of the Company shall retire by
rotation at the ensuing Annual General Meeting. All being eligible have
offered themselves for re-appointment at the ensuing Annual General
Meeting. The Board recommends their reappointment for your approval.
The tenure of both the Managing Directors namely Mr. Jatender Kumar
Mehta and Mr. Ravinder Mehta shall come to an end on 31.12.2010. As per
the recommendation of the Remuneration Committee, the Board of
Directors in their meeting held on 13th August 2010 has re-appointed
Mr. Jatender Kumar Mehta and Mr. Ravinder Mehta as Managing Director
of the company for a further period of 5 years w.e.f. 1st January 2011
at remuneration subject to the approval of the shareholders. As
appointment of Managing Director requires the approval of shareholders
in general meeting, the Board recommends the resolutions for your
approval.
As Mr. Ravinder Mehta, Managing Director turns out to be 70 in the year
2011, the Board recommends to pass Special Resolution for the
re-appointment of Mr. Ravinder Mehta as per the requirement of Schedule
XIII- Part-I of the Companies Act, 1956.
In accordance with the stipulation under Clause 49 of the Listing
Agreement, brief resume of Mr. Suresh Mathur, Mr. Lalit Bhasin and Mr.
V. K. Chhabra together with the nature of their expertise in specific
areas and names of the Companies in which they hold office of a
Director and/or the Chairman/Membership of Committees of the Board, is
given in the Notice of the Annual General Meeting.
Subsidiary Company
The Company has formed a Subsidiary Company namely "Omax Engineering
Services Limited" to provide Services in the field of Solar Energy,
Gas, training in the field of engineering etc. on 15.07.2010. The
Company has not yet obtained its Commencement of Business Certificate.
The business is yet to be started.
Directors Responsibility Statement
A Directors responsibility statement setting out the requirement
pursuant to the provisions of section 217(2AA) of the Companies Act,
1956 is annexed as "Annexure-II" hereto and forms a part of this
report.
Auditors and Auditors Report
M/s. A. Kumar Gupta & Co., Chartered Accountants were appointed as the
Statutory Auditors of the Company at the last Annual General Meeting
held on 30th September, 2009.
They shall hold office till the conclusion of the ensuing Annual
General Meeting of the Company. M/s A. Kumar Gupta & Co., have also
given a Certificate under section 224(1B) of the Companies Act, 1956,
confirming their eligibility and willingness to accept the office of
the Statutory auditors, if re-appointed. The Board of Directors of
your Company, recommend their re- appointment for your approval as
statutory auditors to hold office from conclusion of the ensuing Annual
General Meeting till the conclusion of the next Annual General Meeting
of the Company and to fix their remuneration.
The Statutory auditors of the company submitted their report on the
accounts of the Company for the accounting year ended 31st March, 2010
which was self-explanatory and needed no comments. There is no
qualification or adverse remarks in the Auditors Report for the year
ended 31.03.2010.
Secretarial Audit
The Company has appointed M/s. Chandrasekaran Associates, Secretarial
Auditors to obtain Secretarial Compliance Report for the year ended
31.03.2010 and the same is attached with this Annual Report. The Report
is in confirmation of compliance of all applicable provisions of the
Companies Act, 1956, Listing Agreement and applicable Rules and
Regulation under SEBI
Fixed Deposits
The Company has not invited or accepted fixed deposits from public
during the year under review, within the meaning of Section 58A of the
Companies Act, 1956 and the Rules made there under.
Particulars of Employees
The details pursuant to Section 217(2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules, 1975 are set
out in the "Annexure-III", which forms part of this Report.
Quality Certifications
The best product & service quality and customer satisfaction are an
integral part of your companys vision. Companys all round
improvements and achievements in various areas are recognized from time
to time by its customers and industrial associations. All plants except
Lucknow and Bawal plant are ISO/TS-16949, ISO- 14001, ISO-18001
certified for quality and shows the companys commitment towards
quality management.
Health, Safety and Environment
The Company considers health, safety and environment protection as a
fundamental management responsibility. The Companys continuous efforts
are directed to prevent accidents and have continual improvement in
safety and Environment performance.
All the units of the Company have duly appointed Health, Safety and
Environment (HSE) Committees comprising officers at senior levels along
with executives to take care of the health, safety and environment
matters.
The Company undertook various initiatives such as conducting Training
Programmes on Safety and Environment, Mock Emergency Evacuation Drill
at certain units and works of the Company, besides upgrading the
effluent treatment plants installed at various works to meet the latest
standards of environmental regulations. Company has also initiated a
ÃSave Tree Campaignà which resulted in total saving of 320 fully
grownup trees by paper recycling of 12,650 kgs.
The Company is conducting Energy Audit, Safety Audit & Health Audit on
regular basis. The Company is also arranging welfare programs for its
employees like sports activities, giving awards or incentives on Shop
Floor level, etc.
The Company holds the ISO: 14001 certification for its environmental
management system and OHSAS 18001 certification for Occupational
Hazards and Safety Systems.
Acknowledgement / Appreciation
Your Directors place on record their gratitude to the Central
Government, State Governments and Companys Bankers for their
assistance, co-operation and encouragement extended to the Company.
Your Directors also thank and sincerely appreciate the Business
Associates and Employees at all levels for their unstinting efforts in
ensuring an excellent all around operational performance. Last but not
the least the directors would also like to thank valuable shareholders
and other stakeholders for their support and contribution.
We look forward for your continued support in the future.
For and on behalf of the Board of Directors
Omax Autos Ltd.
Place: New Delhi Suresh Mathur
Date: 13.08.2010 Chairman