Mar 31, 2018
Dear Members,
The Board of Directors are pleased to present the Thirty Third Annual Report ofthe Company along with the audited financial statements for the financial year ended March 31, 2018.
1. FINANCIAL RESULTS
The Companyâs financial performance, for the year ended March 31, 2018 is summarized below:
(Rupees in lacs)
Particulars |
2017-18 |
2016-17 |
Sales & Other Income |
91152.95 |
94026.30 |
Total Expenditure |
88581.33 |
91706.92 |
Earning before Finance Cost, Depreciation & Tax |
7328.63 |
6738.54 |
Less: Finance Cost |
4095.87 |
3760.45 |
Depreciation & Amortization Expenses |
661.14 |
658.70 |
Profit before Tax and extraordinary items |
2571.62 |
2319.39 |
Exceptional & Extraordinary items |
- |
- |
Profit before Tax |
2571.62 |
2319.39 |
Current Tax |
(695.00) |
(497.75) |
Deferred Tax |
(29.29) |
18.86 |
Tax Relating to Earlier Year Tax |
- |
- |
Profit (Loss) for the Year |
1847.34 |
1840.50 |
Basic & Diluted Earnings Per Equity Shares of Face Value of Rs. 1/- each. (In Rs.) |
0.63 |
0.63 |
a. Companyâs Performance Review
The Company during the year under review has registered Total Income of Rs. 91152.95lacs as against Rs. 94026.30 lacs in the previous year. The reduction in the sales was post GST impact in the immediate succeeding one quarter. The Sale in Manufacturing Segment increased to Rs. 33067.99 Lacs during the financial year 17-18 as against Rs. 28754.19 Lacs in the previous year. However, the trading sales reduced to Rs. 57646.77 Lacs during the financial year 17-18 as against Rs. 64437.05 Lacs in the previous year. Profit before Finance Costs, Depreciation and Tax has increased during the financial year 17-18 to Rs. 7328.63 lacs as compared to Rs. 6738.54 lacs of the previous year. The Company has earned Profit Before Tax amounting to Rs. 2571.62 lacs during the year under review as against Rs. 2319.39 lacs in the previous year. Net profit after tax for the current year is Rs. 1847.34 lacs as compared to Rs. 1840.50 lacs in the previous year.
b. Dividend
The Board of Directors of the Company in its Meeting held on 23rdMay 2018 has recommended dividend @5% i.e. (Rs. 0.05/-) per Equity Share for the Financial Year 2017-18.
The above proposal is subject to the approval of Shareholders at the forthcoming Annual General Meeting (AGM) to be held on 29th September, 2018. The total amount of Dividend proposed to be distributed amounts to 1471.685 Lakhs (Including Dividend distribution Tax) .
2. STATE OF COMPANY AFFAIRS
Inspite of adverse impact of GST for the first initial quarter i.e. quarter ended September, 2017, the performance of Financial Year 2017-18 as a whole was better for the Company in terms of growth in the manufacturing sales. Efforts have been made by the Company to increase the production capacity and to improve the manufacturing sales. To achieve the objects, the Company has made arrangement for major production equipments worth Rs. 10 crores under operating lease from Tata Capital Financial Services Limited. For the balance equipments approx worth Rs. 4 Crores, the Company has arranged for the part machine loans and remaining to be arranged out of the internal accruals. With the proposed investments, the production capacity of the manufacturing facilities will be increased by about 17000 MTPA.
The Companyâs trading sales is expected to remain more or less at the existing level and the Company is not planning for any increase, rather emphasis has been made on manufacturing activities only.
During the year under review our Company has got a prestigious order of Rs. 81.25 Crore from Larsen &Tubro Limited for supply of HDPE pipe lines for installation under the AMRUT Yojana Project of Indore Nagar Nigam.The supply is to be made by December, 2018. The Company has further received order of Rs. 8.51Crores from L&T Limited for supply of HDPE pipe lines for their Seoni & Tikamgarh Projects in MP .The Company is also getting regular orders from various other EPC Contractors like Offshore Infrastructure Limited, Mahaveer Infrastructures Pvt. Ltd., Laxmi Construction, Bansal Constructions, etc. under various Government Projects. The said order will boost the manufacturing revenues.
The Company has been registered with MP Jal Nigam Board, Bhopal in which there are various projects for the Government worth over Rs. 5000 Crores to be executed for laying HDPE Pipes & PVC Pipes for drinking water supply and sewerage disposal projects in Urban and Rural areas through various EPC Contractors, thus, there is huge opportunity for us for supply of HDPE Pipes & PVC Pipes and its fittings to the EPC Contractors. Further, the Company is also eligible toparticipate in the upcoming tenders being floated by M P Jal Nigam for supply of HDPE pipes & PVC pipes for its ongoing and forthcoming projects.
a. Adoption Of Indian Accounting Standards (Ind As)
Transition from Indian GAAP to Ind AS: In February 2015, Ministry of Corporate Affairs (MCA) notified the final roadmap on Ind AS with implementation in a phased manner to be complied by the specified class of companies effective from 1st April 2016. Post above notification Ind AS has replaced existing Indian GAAP prescribed under Section 133 of The Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 according to applicability on specified entities. Accordingly, this is first year when the Companyâs financial statements for the year ended 31st March 2018 have been prepared in accordance with Ind AS and the financial statements for the year ended 31st March 2018 and opening balance sheet as at 1st April 2017 (the Companyâs date of transition) earlier reported in previous IGAAP, have been restated in accordance with Ind-AS to make them comparable.
b. Goods And Service Tax (GST) - Implementation And Impact
The year 2017-18 started with biggest ever tax reform since independence, rolled out by Government of India on 1st July 2017, i.e. implementation of Goods and Service Tax (GST), followed by changes in GST rates through various notifications in November,2017. GST implementation has introduced a single system of taxation across the nation absorbing most of the Indirect Taxes. GST is touted to simplify doing business in India, allowing supply chains to be integrated and aligned, as also providing greater transparency. However, the initial implementation phase alike all other industries remained challenging.
Though expecting this new Tax regime to be a game changer for Indian Economy, your Company has stabilized the processes adequately for compliance of law and is embracing this reform positively that unifies India into one market.
c. Management Discussion and Analysis Report
The Management Discussion and Analysis forms an integral part of this Report and gives detail of the overall industry structure, developments, performance and state of affairs of the Companyâs various businesses (Annexure I).
d. Material Changes And Commitments
There have been no material changes and commitments affecting the financial position of the Company between the end of the financial year and date of this report.
e. Change in the Nature of Business, If Any
There was no change in the nature of business ofthe Company during the Financial Year ended 31stMarch 2018.
3. GOVERNANCE AND ETHICS
a. Corporate Governance
Corporate Governance is an ethically driven business process that is committed to values aimed at enhancing an organizations brand and reputation. The Companies Act, 2013 and amended SEBI (Listing obligation and Disclosure Requirements) Regulation 2015, have strengthened the governance regime in the country. The Company is in compliance with the governance requirements provided under the new law and had proactively adopted many provisions of the new law, ahead of time. The Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements set out by SEBI. Integrity and transparency are key to our corporate governance practices to ensure that we gain and retain the trust of our stakeholders at all the times.
A separate report on Corporate Governance (Annexure II) is provided together with a Certificate from the Statutory Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated in SEBI (Listing obligation and Disclosure Requirements) Regulation 2015 (Annexure III).A Certificate of the MD and CFO of the Company, inter alia, confirming the correctness of the financial statements and cash flow statements, adequacy of the internal control measures and reporting of matters to the Audit Committee, is also annexed.(Annexure IV)
b. Directors & Key Managerial Personnel
Appointments: The Company on recommendation of Nomination and Remuneration Committee and in its Board Meeting dated 26th March, 2018, had appointed Ms. Palak Malviya (DIN: 07795827) as an Additional Director under Independent category of the Company with effect from 26th March, 2018 for a period of 5 years, not liable to retire by rotation further Mr. Mayank Shrivas (DIN : 08102022) was also appointed as an Additional Director under Independent category of the Company with effect from 23rd May, 2018 for a period of 5 years, not liable to retire by rotation.
Re-appointments : In accordance with the Articles of Association of the Company and Section 152 of The Companies Act,2013, Mr. Saurabh Sangla (DIN: 00206069), Executive Director is due to retire by rotation at the ensuing Annual General Meeting and being eligible, offer himself for re-appointment.
Cessations: During the year under review Mr. Murli Dhar Vashist has ceased to be a Director of the Company w.e.f. 14th March, 2018. and Mr. Akhilesh Gupta has ceased to be a Director of the Company w.e.f. 25th July, 2018. The Board places on record its appreciation towards valuable contribution made by Mr. Vashist and Mr. Gupta during his tenure as a Directors of the Company
c. Number of meeting of Board of Directors
The Board of Directors met five (11) times during the Financial Year under review viz. 29th May 2017, 15th June, 2017, 14th July, 2017, 9th August, 2017, 26th August, 2017, 14th September, 2017, 16th November, 2017, 14th December, 2017, 5th February, 2018, 23rd February, 2018 and26thMarch 2018. The maximum gap between any2 meetings did not exceed 120 days.
d. Independent Directors and their Meeting
Your Company has received annual declarations from all the Independent Directors of the Company confirming that they meet with the criteria of Independence provided in Section 149(6) of the Companies Act, 2013 and Regulations 16(1)(b) & 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and there has been no change in the circumstances which may affect their status as Independent Director during the year.
The Independent Directors met on 06th February, 2018 without the attendance of Non-Independent Directors and members of the Management. The Independent Directors reviewed the performance of Non-Independent Directors and the Board as a whole; the performance of the Chairman of the Company, taking into account the views of Executive Directors and Non-Executive Directors and assessed the quality, quantity and timeliness of flow of information between the Company Management and the Board that is necessary for the Board to effectively and reasonably perform their duties.
e. Secretarial Standards
The Directors state that applicable Secretarial Standards, i.e. SS-1, SS-2 and SS-3 relating to âMeetings of the Board of Directorsâ and âGeneral Meetingsâ, Dividend respectively, have been duly followed by the Company.
f. Performance Evaluation of Board, Committee and Directors
In accordance with applicable provisions of The Companies Act, 2013 and Listing Regulations, the evaluation of the Board as a whole, committees and all the Directors was conducted, as per the internally designed evaluation process approved by the Board. The evaluation process inter alia considers attendance of Directors at Board and committee meetings, acquaintance with business, communicating inter se board members, effective participation, domain knowledge, compliance with code of conduct, vision and strategy. The evaluation tested key areas of the Boardâs work including strategy, business performance, risk and governance processes. The evaluation considers the balance of skills, experience, independence and knowledge of the management and the Board, its overall diversity, and analysis of the Board and its Directorsâ functioning.
The report on performance evaluation of the Individual Directors was reviewed by the Chairman of the Board and feedback was given to Directors.
g. Audit Committee & Composition
The Audit Committee comprises Independent Directors namely Ms. Nishtha Neema (Chairman), Mr. Mukesh Sangla, Mr. Akhilesh Gupta, Ms. Palak Malviya. During the year all the recommendations made by the Audit Committee were accepted by the Board.
h. Contracts and Arrangements with Related Parties
During the financial year 2017-18, the Company has entered into transactions with related parties as defined under Section 2(76) of the Companies Act, 2013 read with Companies (Specification of Definitions Details) Rules, 2014, which were in the ordinary course of business and on armsâ length basis and in accordance with the provisions of the Companies Act, 2013, Rules issued there under Regulation 23 of SEBI (Listing obligation and Disclosure Requirements) Regulation 2015.
All Related Party Transactions, which are foreseen and repetitive in nature, are placed before the Audit Committee on a yearly basis for obtaining prior omnibus approval of the committee. The transactions entered into pursuant to the omnibus approval are placed before the Audit Committee for review and approval on quarterly basis.
During the financial year 2017-18, there were no transactions with related parties which qualify as material transactions under SEBI (Listing obligation and Disclosure Requirements) Regulation 2015 and the Companies Act.
In line with the requirements of the Companies Act, 2013 and Equity SEBI (Listing obligation and Disclosure Requirements) Regulation 2015, the Company has formulated a Policy on Related Party Transactions which is also available on Companyâs w e b s i t e a t www.groupsignet.com/investorrelations/Policies. The Policy intends to ensure that proper reporting; approval and disclosure processes are in place for all transactions between the Company and Related Parties. Therefore the Company is not required to furnish any particulars in the Form AOC-2.
i. Vigil Mechanism / Whistle Blower Policy
The Company has adopted a whistle blower policy and has established the necessary vigil mechanism for employees and Directors to report concerns about unethical behaviour. No person has been denied access to the Chairman of the Audit Committee. The said policy is uploaded on the website of the Company at http://www.groupsignet.com/investors/policies
Particulars of Employees
j. Particulars of Employees
The information required under Section 197 of the Companies Act, 2013 read with rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in separate annexure forming part of this Report, with as Annexure - V.
The statement containing particulars of employees as required under Section 197 of the Companies Act, 2013read with rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, will be provided upon request. In terms of Section 136 of the Companies Act, 2013, the Report and Accounts are being sent to the Members and others entitled thereto, excluding the information on employeesâ particulars which is available for inspection by the members at the Registered Office of the Company during business hours on working days of the Company. If any member is interested in obtaining a copy thereof, such Member may write to the Company Secretary in this regard.
4. INTERNAL FINANCIAL CONTROL
According to Section 134(5) (e) ofthe Companies Act, 2013 the term Internal Financial Control (IFC) means the policies and procedures adopted by the company 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 ofthe accounting records, and the timely preparation of reliable financial information.
The Company has adequate system of internal controls to ensure that all the assets are safeguarded and are productive. Necessary checks and controls are in place to ensure that transactions are properly verified, adequately authorized, correctly recorded and properly reported. The Internal Auditors of the Company conducts Audit of various departments to ensure that internal controls are in place
5. DIRECTORS RESPONSIBILITY STATEMENT Your Directors state that:
a) in the preparation of the annual accounts for the year ended March 31, 2018, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same;
b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2018and of the profit of the Company for the year ended on that date;
c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors had prepared the annual accounts on a âgoing concernâ 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 are operating effectively; and
f) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
6. AUDITORS & THEIR REPORT
A. Statutory Auditors:
M/s. SMAK & Co., Chartered Accountants, having ICAI Registration No. 020120C were appointed as Auditors of the Company, for a term of 5 (five) consecutive years, at the Annual General Meeting held on 26th September, 2017. They have confirmed that they are not disqualified from continuing as Auditors of the Company.
The Notes on financial statement referred to in the Auditorsâ Report are self-explanatory and do not call for any further comments. The Auditorsâ Report does not contain any qualification, reservation, adverse remark or disclaimer.
B. CostAuditors:
Pursuant to provisions of Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014, amended time to time, the Company has appointed Cost Auditor M/s A. K. Jain & Associates, for the year 2017-18on the total remuneration of Rs.50,000/- and has filed the Form CRA-2 to the Central Government. Your directors propose to approve their remuneration at the forthcoming Annual General Meeting.
C. Secretarial Auditors:
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s M. Maheshwari & Associates, Company Secretaries to undertake the Secretarial Audit of the Company. The Secretarial Auditors in their report for the year 2017-18 has confirmed the compliances of by the Company as covered in their report.
The Report of the Secretarial Audit for the year 201718 in the Form MR-3 is annexed herewith as âAnnexure VIâ. There is no qualification, reservation or adverse remark or disclaimer in Secretarial Audit Report.
d. Internal Auditors
In compliance with the provisions of Section 138of Companies Act, 2013, read with Companies (Accounts) Rules, 2014, your Company has appointed M/s STAK & Associates, Chartered Accountants as Internal Auditors for the Financial Year 2017-18.
d. Reporting of Fraud by auditors
During the year under review neither the statutory auditor nor the secretarial auditor has reported to the audit committee, under Section 143 (12) of the Companies Act, 2013, any instances of fraud committed against the Company by its officers or employees , the details of which would need to be mentioned in the Boardâs report.
7. CORPORATE SOCIAL RESPONSIBILITY
SIL has established CSR Committee as per the provision of the Companies Act, 2013. CSR Committee recommends CSR activities to be undertaken by the Company, to the Board as specified in Schedule VII of the Companies Act, 2013 ( here in after referred to as âthe Schedule VIIâ). SIL will spend, in every Financial Year, at least 2 per cent of the average net profits of the Company made during the 3 immediately preceding Financial Years, in pursuance of the Companies Act, 2013 and rules framed there under for the purposes specified in Schedule VII and also in pursuance of this CSR Policy. The details of the same are attached as Annexure VII in the report.
Related Party Transactions
In line with the requirements of the Companies Act, 2013and Listing Regulations, your Company has formulated a Policy on Related Party Transactions w h i c h i s a l s o a v a i l a b l e o n http://www.groupsignet.com/investors/policy. All Related Party Transactions are placed before the Audit Committee for review and approval of the Committee on a quarterly basis. Also the Company has obtained prior omnibus approval for Related Party Transactions occurred during the year for transactions which are of repetitive nature and / or entered in the ordinary course of business and are at armâs length.
All the related party transactions entered into during the financial year were on an armâs length basis and were in the ordinary course of business. Your Company had not entered into any transactions with related parties which could be considered material in terms of Section 188 of the Companies Act, 2013. Accordingly, the disclosure of related party transactions as required under Section134(3)(h) of the Companies Act, 2013 in Form AOC 2 is not applicable.
8. OTHER DISCLOSURES
a. Material Changes and Commitments
No other material changes and commitments affecting the Financial position of the Company have occurred between 1st April 2017 and the date on which this Report has been signed.
b. Particulars of Loans, Guarantees or Investments:
The particulars of loans, guarantees and investments as on 31st March 2018 are covered under the provisions of Section 186 of The Companies Act,2013 is given in the Notes to Financial statements of the Company.
c. Significant and Material orders passed by the Regulators or Courts or Tribunals impacting the going concern status of the Company:
There are no significant and material orders passed by the Regulators / Courts / Tribunals, which would impact the going concern status of the Company and its future operations.
d. Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo:
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts)Rules, 2014, as amended from time to time is annexed to this Report as Annexure -VIII.
e. Extract of Annual Return:
In accordance with the requirement of Section 92of The Companies Act, 2013 read with Rule 12 of The Companies (Management and Administration)Rules, 2014, the extract of the annual return in FormMGT-9 is annexed as an Annexure IX.
f. Details of Fixed Deposits
During the year under review, the Company has not accepted any Deposit under Section 73 of The Companies Act, 2013 read with the Companies(Acceptance of Deposits) Rules, 2014. It is further stated that the Company does not have any deposits which are not in compliance with the requirements of Chapter V of The Companies Act, 2013.
g. Prevention of Sexual Harassment at Workplace:
As per the requirement of the provisions of the sexual harassment of women at workplace (Prevention, Prohibition &Redressal) Act, 2013 read with rules made thereunder, your Company has constituted Internal Complaints Committee which is responsible for redressal of complaints related to sexual harassment. During the year under review, there were no complaints pertaining to sexual harassment.
Acknowledgement
We would like to thank to all our Stakeholders viz. Shareholders, Investors Bankers, customers, suppliers, Government agencies, stock exchanges and depositories, Auditors, legal advisors, consultants, business associates, service providers for their continued commitment, and invincible enthusiasm which made this year productive and pleasurable.
The Board also places on record, their deep sense of appreciation towards all its Employees at all levels for adopting the values of the Company and their hard work during the year.
By Order of Board
For Signet Industries Limited
Mukesh Sangla
Chairman and Managing Director
DIN : 00189676
Place: Indore
Date: 11th August, 2018
Mar 31, 2015
The Directors are pleased to present the Thirtieth Annual Report and
the Company's Audited Financial Statement for the financial year ended
March 31, 2015.
FINANCIAL HIGHLIGHTS
(Rs. in Lacs)
Particulars 2014-2015 2013-2014
Sales & Other Income 66319.36 62087.52
Total Expenditure 59934.87 54857.28
Earning before Finance 6384.49 7230.24
Cost, Depreciation & Tax
Less: Finance Cost 4258.73 4464.66
Depreciation & Amortization 645.05 643.70
Expenses
Profit before Tax and 1480.71 2121.88
extraordinary items
Exceptional & 92.43 -
Extraordinary items
Profit before Tax 1573.14 2121.88
Current Tax 310.87 445.00
Deferred Tax 91.21 111.87
Tax Relating to Earlier Year Tax 0.70 -
Profit (Loss) for the Year 1170.35 1565.01
Basic & Diluted Earnings Per
Equity Shares of Face Value of
Rs. 10/- each. (In Rs.) 4.01 5.26
Financial Performance
The Company continued to maintain its upward trend by registering Sales
of Rs. 65626.64 lacs as against Rs. 61246.64 lacs in the previous
year. However, Profit before Finance Costs, Depreciation, and Tax has
decreased from Rs. 7230.24 lacs to Rs. 6384.49 lacs. After providing
for finance costs and Depreciation amounting to Rs. 4258.73 lacs and
Rs. 645.05 lacs respectively and giving effect of extraordinary items
arising due to change in depreciation owing to change in useful life of
Assets amounting to Rs. 92.43 lacs, the Profit before Tax for the year
under review has amounted to Rs. 1573.14 lacs as compared to Rs 2121.88
lacs in the previous year. Net profit after tax for the year is Rs.
1170.35 lacs as compared to Rs 1565.01 lacs in the previous year.
Listing information
During the year under review the equity shares of the Company are also
listed and admitted to dealing on the National Stock Exchange of India
Limited (NSE) with effect from 13th March, 2015 along with the BSE
Limited.
Change In The Share Capital
The authorized share of the Company as on 31st March, 2015 is Rs.
50.00/- Crores. During the year under review the Company has increased
the authorized share capital from Rs. 35.00 crores( Rupees Thirty-five
Crores only) to Rs. 50.00 crores (Rupees Fifty Crores only) divided
into 3,00,00,000 (Three Crores) equity shares of Rs.10/- (Rs. Ten only)
each, 50,00,000 (Fifty Lakhs) 5% Non- Cumulative Redeemable Preference
Shares of Rs.10 (Rs. Ten only) each and 1,50,00,000 (One Crore Fifty
Lacs) 2% Non-convertible Non-Cumulative Redeemable Preference Shares of
Rs.10 (Rs. Ten only) each.
The paid up share capital of the Company is Rs. 39,58,70,000/ divided
into 2,91,87,000 Equity shares of Rs.10 each fully paid up, 50,00,000
5% Non Convertible, Non Cumulative Redeemable Preference Shares of
Rs.10 each fully paid up AND 54,00,000 2% Non Convertible, Non
Cumulative Redeemable Preference Shares of Rs.10 each fully paid up.
During the year under review the Company has issued 54,00,000 2%
Non-convertible Non-cumulative Redeemable Preference Shares of Rs. 10/-
each at the price of Rs.50 per share (including premium of Rs. 40 per
share) on private placement basis to the selected group of investors.
Your Board of directors has recommended for sub-division of Equity
Shares of Rs. 10/- each into Ten Equity Shares of Rs.1/- each which was
approved by the Shareholders through postal ballot and e-voting on 24th
July, 2015. Accordingly, the 1 (One) Equity Shares of face value of
Rs. 10/- each will be sub-divided into 10 (Ten) Equity Shares of face
value of Rs. 1/- each by way of corporate action to the shareholders
who held the shares on the Record Date dated 19th August, 2015.
Dividend
With a view of augmenting the financial resources for generating stable
growth the Board of Directors of the company has decided to carry
forward entire profit and hence they did not propose any dividend for
the financial year on equity shares.
Transfer of unclaimed dividend to investor education and protection
fund
Pursuant to the provisions of section 125 of the Companies Act, 2013,
amount lying unclaimed in the unpaid dividend accounts of the Company,
is required to be transferred to the Investor Education and Protection
Fund (IEPF) of the Central Government after such amount has remained
unclaimed or unpaid for a period of seven years from the date of
transfer to the unpaid dividend account.
During the year, the Company transferred an amount of Rs. 367,462/- to
the IEPF being the unclaimed dividend for the financial period ended
31st March, 2007.
The Company shall transfer the unpaid divided to the IEPF of the
Central Government after 7 years from the date of transfer to the
unpaid divided from the year 2007-08 and onward. The Shareholders are
requested to encase their unpaid dividend warrants or approach to the
company for renewal thereof immediately.
Subsidiaries, Joint Ventures and Associate Companies
Pursuant to the provisions of section 2(6), 2(87) the Company was not
having any subsidiary, associate or joint venture company at the
beginning ordering the financial year as well as at the end of the
financial year 2015.
Directors Responsibility Statement
Your Directors state that:
a) in the preparation of the annual accounts for the year ended March
31, 2015, the applicable accounting standards read with requirements
set out under Schedule III to the Act, have been followed and there are
no material departures from the same;
b) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at March 31, 2015 and of the profit of the Company
for the year ended on that date;
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a 'going concern'
basis;
e) the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively; and
f) the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating effectively.
Management Discussion and Analysis Report
The Management Discussion and Analysis forms an integral part of this
Report and gives detail of the overall industry structure,
developments, performance and state of affairs of the Company's various
businesses viz., the decorative business international operations,
industrial and home improvement business, internal controls and their
adequacy, risk management systems and other material developments
during the financial year (Annexure I).
Corporate Governance
Corporate Governance is an ethically driven business process that is
committed to values aimed at enhancing an organizations brand and
reputation. The Companies Act, 2013 and amended Listing Agreement have
strengthened the governance regime in the country. The Company is in
compliance with the governance requirements provided under the new law
and had proactively adopted many provisions of the new law, ahead of
time. The Company is committed to maintain the highest standards of
corporate governance and adhere to the corporate governance
requirements set out by SEBI.
A separate report on Corporate Governance (Annexure- II) is provided
together with a Certificate from the Statutory Auditors of the Company
regarding compliance of conditions of Corporate Governance as
stipulated under Clause 49 of the Equity Listing Agreement with the
Stock Exchange(s) (Annexure-III). A Certificate of the MD and CFO of
the Company in terms of sub-clause IX of Clause 49 of Equity Listing
Agreement, inter alia, confirming the correctness of the financial
statements and cash flow statements, adequacy of the internal control
measures and reporting of matters to the Audit Committee, is also
annexed. (Annexure IV)
Fixed Deposits
During the financial year 2014-15, the Company has not accepted any
deposit within the meaning of Sections 73 and 74 of the Companies Act,
2013 read together with the Companies (Acceptance of Deposits) Rules,
2014 and there is no outstanding amount of deposits as at 31st March,
2015.
Further that the Company has not accepted any deposits in contravention
of the provisions of the Companies Act, 2013.
Contracts and Arrangements with Related Parties
During the financial year 2014-15, the Company has entered into
transactions with related parties as defined under Section 2(76) of the
Companies Act, 2013 read with Companies (Specification of Definitions
Details) Rules, 2014, which were in the ordinary course of business and
on arms' length basis and in accordance with the provisions of the
Companies Act, 2013, Rules issued there under and Clause 49 of the
Listing Agreement. During the financial year 2014-15, there were no
transactions with related parties which qualify as material
transactions under the Listing Agreement and the Companies Act.
In line with the requirements of the Companies Act, 2013 and Equity
Listing Agreement, the Company has formulated a Policy on Related Party
Transactions which is also available on Company's website at
www.groupsignet.com/investorrelations/ Policies. The Policy intends to
ensure that proper reporting; approval and disclosure processes are in
place for all transactions between the Company and Related Parties.
Therefore the Company is not required to furnish any particulars in the
Form AOC-2.
Corporate Social Responsibility
As part of its initiatives under Corporate Social Responsibility (CSR)
the Company has undertaken projects which are largely in accordance
with Schedule VII of the Companies Act, 2013. The details of the same
are attached as Annexure-V in the report.
Risk Management
In line with the regulatory requirements, the Company has framed a Risk
Management Policy to identify and access the key business risk areas
and a risk mitigation process. A detailed exercise is being carried out
at regular intervals to identify, evaluate, manage and monitor all
business risks. The Board periodically reviews the risks and suggests
steps to be taken to control and mitigate the same through a properly
defined framework.
Internal Financial Control
According to Section 134(5) (e) of the Companies Act, 2013 the term
Internal Financial Control (IFC) means the policies and procedures
adopted by the company 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.
The Company has adequate system of internal controls to ensure that all
the assets are safeguarded and are productive. Necessary checks and
controls are in place to ensure that transactions are properly
verified, adequately authorized, correctly recorded and properly
reported. The Internal Auditors of the Company conducts Audit of
various departments to ensure that internal controls are in place
Directors
Appointment
During the financial year 2014-15 Mrs. Nishtha Neema and Mr. Akhilesh
Gupta were appointed as Additional director in the category of
Independent Directors of the Company at the meeting of the Board of
Directors of the Company held on 13th August, 2014 and 14th February,
2015 respectively. Subsequently Mrs. Nishtha Neema was appointed as an
Independent Director by the shareholders at the AGM held on 30th
September, 2014. Mrs. Nishitha Neema was also considered as the Women
Director as required under section 149 read with the Clause 49 of the
Listing Agreement.
The Independent directors have submitted a declaration as required
under section 149(6) confirming that they fulfill the criteria of
independence and in accordance with the opinion of the Board, all the
independent directors are eligible to hold the said position.
Resignation
Shri Ankit Bhandari and Shri Deepak Mehta, Independent Directors have
resigned from the Board w.e.f. 13th August, 2014 due to their
pre-occupations accordingly they were stepped down from the Board of
Directors of the Company w.e.f. 13th August, 2014.
The Board places on record its appreciation for their valuable
contribution during their association with the Company.
Mr. Saurabh Sangla (DIN: 00206069) will retire by rotation at ensuing
Annual General Meeting and being eligible, offer himself for
re-appoint.
Annual Evaluation of Board's performance:
In terms of the provisions of the Companies Act, 2013 read with Rules
issued there under and Clause 49 of the Listing Agreement, the Board of
directors on recommendation of the Nomination and Remuneration
Committee, have evaluated the effectiveness of the Board/ Director(s)
for the financial year 2014-15.
Key Managerial Personnel
The Key Managerial Personnel (KMP) in the Company as per Section 2(51)
and 203 of the Companies Act, 2013 are as follows:
Mr. Mukesh Sangla: Managing Director (DIN: 00189676)
Mr. Sumit Jamad: Chief Financial Officer
Mrs. Preeti Singh: Company Secretary & Compliance Officer
During the year there was no change (appointment or cessation) in the
office of any KMP.
Number of Meetings of the Board
The details of the number of Board and Audit Committee meetings of the
Company are set out in the Corporate Governance Report which forms part
of this Report.
Disclosure Relating to Remuneration of Directors, Key Managerial
Personnel And Particulars of Employees
In terms of the provisions of the Companies Act, 2013 read with Rules 5
of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, a statement showing the remuneration of Managerial
personal is set out in the 'Annexure VI' which forms part of this
report.
Disclosure under the Sexual Harassment of Women at Workplace
(Prevention, and Redressal) Act, 2013
In accordance with the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013 and rules
made there under, the Company formulated an internal policy on Sexual
Harassment at workplace (Prevention, Prohibition and Redressal) which
is also available on Company's website at
www.groupsignet.com/investorrelations/ Policies during the year under
review.
The policy aims at educating employees on conduct that constitute
sexual harassment, ways and means to prevent occurrence of any such
incident, and the mechanism for dealing with such incident, and the
mechanism for dealing with such incident in the unlikely event of its
occurrence. The Company has also constituted an Internal Committee as
required under Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and rules made there under. The
Company has zero tolerance on Sexual Harassment at workplace. During
the year under review, no complaints were received against the sexual
harassment at workplace.
Auditors & their Report
A. Statutory Auditors:
The Company's Auditors M/s Ashok Khasgiwala & Co., Chartered
Accountants (F.R.No. 000743C), who are the statutory auditors of the
Company, hold office till the conclusion of the forthcoming AGM and
being eligible have consented and offered them-selves for re-
appointment. Pursuant to the provisions of section 139 of the Companies
Act, 2013 and the Rules framed there under, it is proposed to appoint
M/s Ashok Khasgiwala & Co., Chartered Accountants (F.R.No. 000743C) as
statutory auditors of the Company from the conclusion of the
forthcoming AGM till the conclusion of the 32nd AGM to be held in the
year 2017, subject to ratification of their appointment at every AGM.
The Notes on financial Statement for the year 2014-15 referred to in
the Auditor's Report are self-explanatory and do not call for any
further comments. The Auditor's report does not contain any
qualification, reservation or adverse remark.
B. Cost Auditors:
Pursuant to provisions of section 148 of the Companies Act, 2013 read
with the Companies (Cost Records and Audit) Rules, 2014, amended time
to time, the Company has appointed Cost Auditor M/s A.KJain& Associates
for the year 2015-16 on the total remuneration of Rs.60,000/- and has
filed the Form CRA-2 to the Central Government.
Your directors proposes to approve their remuneration at the
forthcoming annual general meeting.
C. Secretarial Auditors:
Pursuant to the provisions of section 204 of the Companies Act, 2013
and the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s M. Maheshwari&
Associates Company Secretaries to undertake the Secretarial Audit of
the Company. The Secretarial Auditors in their report for the year
2014-15 has confirmed the compliances of by the Company as covered in
their report.
The Report of the Secretarial Audit for the year 2014-15 in the Form
MR-3 is annexed herewith as "Annexure VII ". There is no qualification,
reservation or adverse remark or disclaimer in Secretarial Audit Report
except the following:
1. Company has not filed Form 5 INV Pursuant to rule 3 of the Investor
Education and Protection Fund (Uploading of information regarding
unpaid and unclaimed amounts lying with companies) Rules, 2012] and not
uploaded on its own website.
2. MGT 10 under Section 93 of Companies Act, 2013 not filed during the
financial year On above stated para of Secretarial Audit Report, our
explanation or comment as follows:-
1. With regard to not filing of Form 5INV to rule 3 of the Investor
Education and Protection Fund (Uploading of information regarding
unpaid and unclaimed amounts lying with companies) Rules, 2012]the
information regarding the unpaid and unclaimed amounts has not been
received from Banks.
2. Further due to the uncertainty of calculation of 2% of the
respective promoter or top 10 shareholders we are not able to file the
Form MGT 10. The Company was in process of filing MGT 10.
D. Disclosure for frauds against the Company:
In terms of the provisions of section 134(3)(ca) of the Companies Act,
2013, there were no fraud committed against the Company by any person
under section 143(12) during the year 2014-15. Further that there were
no frauds which needs to be reported by the Auditors of the Company to
the Central Government.
Extract of Annual Return
In accordance with the provisions of Section 134 (3) (a) of the
Companies Act, 2013, the extract of Annual Return as on March 31, 2015
in the prescribed Form MGT-9, pursuant to Section 92(3) of the
Companies Act, 2013 and Rule 12(1) of the Companies (Management and
Administration) Rules, 2014 is attached herewith as 'Annexure VIII '
and forms part of this Report.
Vigil Mechanism
The Company is committed to highest standards of ethical, moral and
legal business conduct. Accordingly, the Board of Directors has
formulated a Whistle Blower Policy which is in compliance with the
provisions of Section 177(10) of the Companies Act, 2013 and Clause 49
of the Listing Agreement which is also available on Company's website
at www.groupsignet.com/investorrelations/ Policies The policy provides
for a framework and process whereby concerns can be raised by its
employees against any kind of discrimination, harassment, victimization
or any other unfair practice being adopted against them. More details
on the vigil mechanism and the Whistle Blower Policy of the Company
have been outlined in the Corporate Governance Report which forms part
of this report.
Particulars of Loans Given, Investments Made, Guarantees Given and
Securities Provided
Pursuant to Section 134(3)(g) of the Companies Act, 2013 particulars of
loans, guarantees or investments provided by the Company under Section
186 of the Act as at end of the Financial Year 2014-15 are disclosed in
the Note to the Financial Statement attached with the Board Report.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo as stipulated under Section 134 of
the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014,
is set out herewith as "Annexure IX" to this Report. Significant and
Material Orders Passed by the Regulators or Courts
There are no significant and material orders passed by the Regulators /
Courts which would impact the going concern status of the Company and
its future operations.
Acknowledgement
The Directors of the Company wish to convey their gratitude and place
on record their appreciation for all the employees at all levels for
their hard work, solidarity, cooperation and dedication during the
year. The Directors sincerely convey their appreciation to customers,
shareholders, vendors, bankers, business associates, regulatory and the
Government authorities for their continued support.
For and on behalf of the Board
Mukesh Sangla
Chairman & Managing Director
DIN : 00189676
Place: Indore
Dated: 7th August, 2015
Mar 31, 2014
The Members
The Directors have pleasure in presenting the 29th Annual Report on
the business and operations of the Company and the Audited Financial
Statement for the year ended 31st March, 2014,
FINANCIAL HIGHLIGHTS
(Rs. in Lacs)
Particulars 2013-2014 2012-2013
Sales& Other Income 61653,75 56742 53
Total Expenditure 54857.27 51279.91
Earning Before Finance Cost,
Depreciation and Tax 6796.48 5462.62
Less: Financial Costs 4030.90 3099.45
Depreciation and Amortization
Expenses 643.70 605.93
Profit Before Tax 2121.88 1757.23
Current Tax 445.00 353.00
Deferred Tax 111.87 210.74
Relating to earlier years Tax - -
Profit (Loss) for the year 1565.01 1193.49
BasicS Diluted Earning Per Equity
Share of Face Value of Rs. 10 each 5.26 4.04
DIVIDEND
During the year under review, your Board of Directors has recommend a
dividend of Rs. 1.20 per equity share (being 12%) for thefinancial year
2013-14. amounting to Rs.409.77 Lacs (inclusive of tax of Rs.59.52
Lacs).The dividend payout is subject to approval of members at the
ensuing Annual General Meeting. The dividend will be paid to members
whose names ap- pear in the Register of Members as on 23''° September,
2014; in respect of shares held in dematerialised form, it will be paid
to members whose names are furnished by National Securities Depository
Limited and Central De- pository Services (India) Limited, as
beneficial owners as on that date. BUSINESS REVIEW
Your Company continued to maintain its upward trend by registering
Sales of Rs. 61653.75 lacs as against Rs. 56742.53 lacs in the
previous year. Profit before fi- nance Costs, Depreciation, and Tax has
increased from Rs. 5462.62 lacsto Rs, 6796.48 lacs After providing for
finance costs and Depreciation amounting to Rs. 4674.60 lacs and Rs.
3705.38 lacs respectively, the Profit before Tax for the year under
review has amounted toRs. 2121.88 lacs as compared to Rs 1757.23 lacs
in the previous year. Net profit After Tax for the year has increased
to Rs. 1565.01 lacs as compared to Rs. 1193.49 lacs in the previous
year. Dl RECTORS
In accordance with Section 152 of the Companies Act, 2013 and the
Articles of Association of the Company, Shri SaurabhSanglawill retire
by rotation at the ensuing An- nual General Meeting and is eligible for
re-appointment.
Pursuant to the provisions of Section 161(1) of the Companies Act, 2013
and the Articles of Association of the Company, Mrs. NishthaNeemawas
appointed as an Additional Director designated as an Independent
Director w.e.f. ^''"August 2014 and she shall hold office up to the date
of the ensuing Annual General Meeting. The Company has received
requisite notice in writing from a member proposing Mrs. Nisht ha Neema
for appointment as an Independent Director.
Pursuant to Section 149 of the Companies Act, 2013, the Board at its
meeting held on 13thAugust 2014, recom- mended appointment of Mr.
Murlidhar Vashist, and Mrs. Nishtha Neemaas independent Directors of
the Company, not liable to retire by rotation for a period of five
years from the 29th Annual General Meeting subject to approval of the
Members of the Company,
The Company has received declarations from all the inde- pendent
Directors of the Company confirming that they meet with the criteria of
independence as prescribed both under sub sect ion (6) of Section 149
of the Act as well as under clause 49 of the Listing Agreement with the
Stock Exchanges.
Mr. Ankit Bhandari and Mr. Deepak Mehta has resigned from the
Directorship of the Cbmpany on 131" August 2014. Your Directors place
on record their deep appreciation for the guidance received from the
out-going Directors.
DEPOSITS
Your Cbmpany has not accepted any public deposits within the meaning of
the provisions of section 58 A of the com- paniesAct, 1956. INSURANOE
Trie assets of the Company are adequately insured against the loss of
fire, natural calamities and such other risk considered by management
of the Company,
AUDI TORS
M/s. Ashok Khasgiwala & Co., Chartered Accountants, I ndore Satutory
Auditors of the Company, holds office till the conclusion of the
ensuing Annual General Meeting and are eligible for re-appointment.
The Company has received letters from all of them to the effect that
their re-appointment, if made, would be within the prescribed limits
under Section 141(3)(g) of the Companies Act, 2013 and that they are
not disqualified for re-appointment.
The Audit Committee and the Board of Directors recom- mended the
re-appointment of M/s. Ashok Khasgiwala & Co., Chartered Accountants,
as the Auditors of the Company for the fiscal year ending on March 31,
2015,
AUDI TORS'' REPORT
The Board has duly reviewed the Statutory Auditors'' Re- port on the
Accounts. The observations appearing in the Auditors'' Report, does not
call for any further explana- tion/clarification by the Board of
Directors. Dl RECTORS RESPONSI Bl U TY STATEMENT
Your Directors affirm that the audited accounts containing thefinancial
statements for the Rnancial Year 2013-14 are in conformity with the
requirements of the Companies Act, 1956, They believe that the
financial statements reflect fairly the form and substance of
transactions carriGd out during thG yGar and reasonably prasent the
Company''s financial condition and results of operations. Fursuant to
Section 217(2AA) of the Companies Ad, 1956, the Directors confirm that:
a) in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
b) the accounting policies have been applied consistently and
judgmentsand estimates made are reasonable and prudent, so as to give a
true and fair view of the state of affairs of the Company as at the end
of the financial year and of the profit of the Company for that period;
c) proper and sufficient care has been taken to the best of their
knowledge and belief for the maintenance of adequate accounting records
in accordance with the provisions of the Companies Act, 1956, for
safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities;
d) the annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
Your Company has complied with the requirements of corporate governance
as per clause 49 of the Listing Agreements with the Stock Exchanges, A
detailed report on Corporate Governance is annexed to this Annual
Report. A certificate from the Statutory Auditors of the Company
regarding compliance of conditions of corporate governance has been
obtained and is enclosed with this Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A Management discussion and Analysis Report have been attached and
forms part the Directors Report.
PARTI CULARS OF EMPLOYEES
There were no employees during the current year draw- ing the
remuneration more than the limit prescribed un- der section 217(2A) of
the Companies Act, 1956 read with Gompanies(Particularsof Employees)
Rules, 1975,
PARTI CULARS OF CONSERVATI ON OF ENERGY, TECHNOLOGY & FORB GN EXCHANGE
EARNINGAND OUTGO:
Information in accordance with the provision of Section 217( 1 )(e) of
the Companies Act, 1956 read with Compa- nies (Disclosure of
particulars in the report of Board of Directors) Rules, 1988 regarding
conservation of energy, technology absorption and foreign exchange
earnings and outgo are given in annexure A forming part of this report.
ACKNOWLEDGEMENT
Your Directors acknowledge the vital role of conscientious and
hardworking employee of the Company at all level; towards over all
progress of the Company. Stockholders, Customers, Bankers have
continued to lend their valuable support to the Company Your Board
takes this opportu- nity to record their appreciation in this regard.
For & On Behalf of the Board of Directors
Place : Indore Mukesh Sangla
Date :13,th August, 2014 Chairman
Mar 31, 2013
To, The Members
The Directors have pleasure in presenting the 28th Annual Report on
the business and operations of the Company and the Audited Financial
Statement for the year ended 31st March, 2013.
FINANCIAL HIGHLIGHTS
(Rs, in Lacs)
Particulars 2012-2013 2011-2012
Sales & Other Income 56742.53 51236.08
Total Expenditure 51279.91 47940.73
Earning Before Finance Cost,
Depreciation and Tax 5462.62 3295.35
Less: Financial Costs 3099.45 2038.41
Depreciation and Amortization
Expenses 605.93 451.90
Profit Before Tax 1757.23 805.04
Current Tax 353.00 175.00
Deferred Tax 210.74 256.18
Relating to earlier years Tax (18.64)
Profit (Loss) for the year 1193.49 392.50
Basic & Diluted Earning
Per Equity Share of Face
Vlue of Rs. 10 each 4.04 1.34
DIVIDEND
During the year under review, your Board of Directors had declared an
interim dividend of Rs. 1.20 per equity share (being 12%) for the
financial year 2012-13. Hav- ing regard to the substantial interim
dividend paid, your Board do not recommend any fhal dividend for the
year. The Total amount of Dividend paid for the year ended 31sl March
2013 amount to Rs. 3,50,24,400/-.
BUSINESS REVIEW
Your Company continued to maintain its upward trend by registering
Sales of Rs. 56742.53 lacs as against Rs. 51236.08 lacs in the
previous year. Profit before Finance Costs, Depreciation, and Tax has
increased from Rs. 3,295.36 lacs to Rs. 5,462.62 lacs. After providing
for finance costs and Depreciation amounting to Rs. 3,099.45 lacs and
Rs. 2,038.41 lacs respectively, the Profit before Tax for the year
under review has amounted to Rs. 1757.23 lacs as compared to Rs 805.04
lacs h the previ- ous year. Net profit After Tax for the year has
increased to Rs. 1193.49 lacs as compared to Rs 392.50 lacs in the
previous year.
DIRECTORS
In accordance with Section 256 of the Companies Act, 1956 and the
Articles of Association of the Company, Shri Deepak Mehta will retre by
rotation at the ensuing Annual General Meeting and is eligible for re-
appointment.
Your Board had appointed Mr. Ankit Bhandari as an Addi- tional Director
during the Year. He re tires at the ensuing Annual General Meeting of
the Company in terms of Sec- tion 260 of the Companies Act, 1956 but
being eligible offers them self for re-appointment.
Mr. Dipak Kalani has resigned from the Directorship of the Company on
8h October 2012. Your Directors place on record his deep appreciation
for the guidance received from the out-going Director.
DEPOSITS
Your Company has not accepted any public deposits within the meaning of
the provisions of section 58 Aof the com- panies Act, 1956.
INSURANCE
The assets of the Company are adequately insured agahst the loss of
fire, natural calamities and such other risk con- sidered by management
of the Company.
AUDITORS
The Statutory Auditors of the Company, M/s. Ashok Khasgiwala & Co.,
Chartered Accountants, Indore , re- tres at the conclusion of the
ensuing annual general meet- ing of the Company and have confirmed
their willingness and eligibility for re-appointment and have also
confirmed that their re-appointment, if made, will be withh the limits
stipulated under Section 224(1B) of the Companies Act, 1956. The Board
recommends their re-appointment for the next term.
AUDITORS''REPORT
The Board has duly reviewed the Statutory Auditors'' Re- port on the
Accounts. The observations appearing in the Auditors'' Report, does not
call for any further explana- tion/clarification by the Board of
Directors under Section 217(3) of the Companies Act, 1956.
DIRECTORS RESPONSIBILITYSTATEMENT
Your Drectors affrm that the audited accounts containing the financial
statements for the Financial Year 2012-13 are in conformity with the
requirements of the Companies Act, 1956. They believe that the
financial statements reflect fairly the form and substance of
transactions carried out during the year and reasonably present the
Company^ financial condition and results of operations. Pursuant to
Section 217(2AA)ofthe Companies Act, 1956, the Direc- tors confirm
that:
a) h the preparation of the annual accounts, the appli- cable
accounting standards have been followed along with proper explanation
relating to material departures;
b) the accounting policies have been applied consis- tently and
judgments and estimates made are rea- sonable and prudent, so as to
give a true and fair view of the state of affairs of the Company as at
the end of the financial year and of the profit of the Company for that
period;
c) proper and sufficient care has been taken to the best of their
knowledge and belief for the maintenance of adequate accounting records
in accordance with the provisions of the Compa- nies Act, 1956, for
safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities;
d) the annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
Your Company has complied with the requirements of cor- porate
governance as per clause 49 of the Listing Agree- ments with the Stock
Exchanges. A detailed report on Corporate Governance is annexed to this
Annual Report. A certificate from the Statutory Auditors of the
Company regarding compliance of conditions of corporate gover- nance
has been obtained and is enclosed with this Report.
MANAGEMENTDECUSSION ANDANALY5IS REPORT
A Management discussion and Analysis Report have been attached and
forms part the Directors Report.
PARTICULARS OF EMPLOYEES
There were no employees during the current year draw- ing the
remuneration more than the limit prescribed under section 217(2A) of
the Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975.
PARTICULARS OF CONSERVATION OF ENERGY, TECH- NOLOGY&FOREIGN EXCHANGE
ETC.
Information in accordance with the provision of Section 217(l)(e) of
the Companies Act, 1956 read with Compa- nies (Disclosure of
particulars in the report of Board of Directors) Rules, 1988 regarding
conservation of energy, technology absorption and foreign exchange
earnings and outgo are given in annexure ''A1 forming part of this
report.
ACKNOWLEDGEMENT
Your Drectors acknowledge the vital role of conscientious and
hardworking employee of the Company at all levels towards over all
progress of the Company. Stockholders, Customers, Bankers have
continued to lend their valuable support to the Company. Your Board
takes this opportu- nity to record their appreciation in this regard.
For & On Behalf of the Board of Directors
Place :Indore Mukesh Sangla
Date : 02.09.2013 Charman cum Managing Director
Mar 31, 2012
The Directors have pleasure in presenting the 27th Annual Report on
the business and operations of the Com- pany and the Audited Financial
Statement for the year ended 31st March, 2012.
FINANCIAL HIGHLIGHTS
(Rs. in Lacs)
Particulars 2011-2012 2010-2011
Sales & Other Income 51236.08 43763.35
Total Expenditure 47940.73 41645.36
Earning Before Finance Cost,
Depreciation and Tax 3295.35 2117.99
Less: Financial Costs 2038.41 953.37
Depreciation and Amortization
Expenses 451.90 246.47
Profit Before Tax 805.04 918.15
Current Tax 175.00 182.00
Deferred Tax 256.18 153.01
Relating to earlier years Tax (18.64) -
Profit (Loss) for the year 392.50 583.13
Basic & Diluted Earning Per Equity
Share of Face Value of Rs.10 each 1.34 2.00
DIVIDEND
The Directors recommend for a dividend of Rs.0.5 per Equity Share of
Rs.10/- each (i.e. 5%) for the year ended 31st March 2012.
BUSINESS REVIEW
Your Company continued to maintain its upward trend by registering
Sales of Rs. 51,192.53 lacs as against Rs. 43,544.30 lacs in the
previous year. Profit before Finance Costs, Depreciation, and Tax has
increased froMrs. 2,117.99 lacs to Rs. 3,295.36 lacs. After providing
for finance costs and Depreciation amounting to Rs. 2,038.41 lacs and
Rs. 451.91 lacs respectively, the Profit before Tax for the year under
review has amounted to Rs. 805.03 lacs as compared to Rs 918.14 lacs
in the previ- ous year. Net profit After Tax for the year has decreased
to Rs. 392.50 lacs as compared to Rs 583.13 lacs in the previous year.
FUTURE OUTLOOK
Despite significant growth of industrial and service sector in India,
agriculture continues to be the main occupation of vast population of
our country and it significantly con- tributes to our national Gross
Domestic Product (GDP). The Central Government as well as various
State Govern- ments are giving grants to drip irrigation system so that
our farmers use the best quality products to ensure higher yield,
better quality and water conservation. Keeping in view of the vast
potentiality of micro irrigation business in India , the Company
intends to add drip irriga- tion lines, HDPE lines, PVC lines,
injection molding ma- chines and moulds as per requirements every year,
the capital cost of which shall be approximately 15 to 20 crores.
NEW INITIATIVES
1. The Company outsourced various product and acces- sories used in
micro irrigation and sprinkle irrigation systems which results in heavy
cost. In order to save cost the Board take initiatives for acquiring
additional varieties of moulds for in-house manufacture of all these
product and accessories.
2. Considering the prospective demand of drip irrigation systems in
various states and looking towards the current order position the Board
decided to set up additional drip line at existing plant at Pithampur,
Dist. Dhar, Indore (M.P.).
SIGNIFICANT DEVELOPMENTS
1. The Company has obtained allocation for supply of drip irrigation
system to irrigate 5000 hectares of land as first installment for the
year 2012-13 by Govern- ment Of Andhra Pradesh, Department Of
Horticulture, Andhra Pradesh Microirrigation Project.
2. The Company has successfully installed additional capacity for
production of 2400 M.Ts of sprinkler pipes.
DIRECTORS
In accordance with Section 256 of the Companies Act, 1956 and the
Articles of Association of the Company, Shri Murlidhar Vashist will
retire by rotation at the ensuing Annual General Meeting and is
eligible for re-appointment.
DEPOSITS
Your Company has not accepted any public deposits within the meaning of
the provisions of section 58 A of the Companies Act, 1956.
INSURANCE
The assets of the Company are adequately insured against the loss of
fire, natural calamities and such other risk considered by management
of the Company.
AUDITORS
The Statutory Auditors of the Company, M/s. Ashok Khasgiwala & Co.,
Chartered Accountants, Indore , retires at the conclusion of the
ensuing annual general meeting of the Company and have confirmed their
willingness and eligibility for re-appointment and have also confirmed
that their re-appointment, if made, will be within the limits stipu-
lated under Section 224(1B) of the Companies Act, 1956. The Board
recommends their re-appointment for the next term.
AUDITORS' REPORT
The Board has duly reviewed the Statutory Auditors' Report on the
Accounts. The observations appearing in the Auditors' Report, does not
call for any further expla- nation/clarification by the Board of
Directors under Section 217(3) of the Companies Act, 1956.
DIRECTORS RESPONSIBILITY STATEMENT
Your Directors affirm that the audited accounts containing the
financial statements for the Financial Year 2011-12 are in conformity
with the requirements of the Companies Act, 1956. They believe that the
financial statements reflect fairly the form and substance of
transactions carried out during the year and reasonably present the
Company's financial condition and results of operations. Pursuant to
Section 217(2AA) of the Companies Act, 1956, the Directors confirm
that:
a) in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
b) the accounting policies have been applied consistently and judgments
and estimates made are reasonable and prudent, so as to give a true and
fair view of the state of affairs of the Company as at the end of the
financial year and of the profit of the Company for that period;
c) proper and sufficient care has been taken to the best of their
knowledge and belief for the maintenance of adequate accounting records
in accordance with the provisions of the Companies Act, 1956, for
safeguard- ing the assets of the Company and for preventing and
detecting fraud and other irregularities;
d) the annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
Your Company has complied with the requirements of corporate governance
as per clause 49 of the Listing Agreements with the Stock Exchanges. A
detailed report on Corporate Governance is annexed to this Annual
Report. A certificate from the Statutory Auditors of the Company
regarding compliance of conditions of corporate governance has been
obtained and is enclosed with this Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A Management discussion and Analysis Report have been attached and
forms part the Directors Report.
PARTICULARS OF EMPLOYEES
There were no employees during the current year draw- ing the
remuneration more than the limit prescribed under section 217(2A) of
the Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY & FOREIGN EXCHANGE
ETC.
Information in accordance with the provision of Section 217(1)(e) of
the Companies Act, 1956 read with Compa- nies (Disclosure of
particulars in the report of Board of Directors) Rules, 1988 regarding
conservation of energy, technology absorption and foreign exchange
earnings and outgo are given in annexure `A` forming part of this
report.
ACKNOWLEDGEMENT
Your Directors acknowledge the vital role of conscientious and
hardworking employee of the Company at all levels towards over all
progress of the Company. Stockholders, Customers, Bankers have
continued to lend their valuable support to the Company. Your Board
takes this opportu- nity to record their appreciation in this regard.
For & On Behalf of the Board of Directors
Place : Indore Mukesh Sangla
Date : 30.08.2012 Chairman cum Managing Director
Mar 31, 2011
The Members
Directors are please to submit their 26th Annual Report on the business
and operations of the Company along with audited Balance Sheet & Profit
and Loss Account for the vear ended 31st March. 2011.
FINANCIAL RESULTS
Financial results of the company for the year under re- view along with
figures for previous year are as follows:
(Rs. in Lacs)
Particulars For the For the
year ended year ended
31.03.2011 31.03.2010
Gross Income 46447.94 36645.89
Profit before Interest, 2350.28 2657.66
Depreciation & Tax
Less: Interest 1185.67 1012.53
Depreciation 246.47 183.03
Profit before Tax 918.14 1462.10
Provision for Tax:
Current Tax 182.00 278.00
Deferred Tax 153.00 28.11
Net Profit After Tax 583.13 1155.98
Less: Prior Period Adjustment 0 2.05
Profit available for Appropriation 583.13 1153.92
General Reserve 100.00 0.00
Proposed Dividend 364.84 0.00
Tax on Dividend 60.59 0.00
Balance Carried to Balance Sheet 57.70 1153.92
DIVIDEND
The Board of Directors recommend for consideration of the Shareholders
at the ensuing Annual General Meeting, payment of dividend of Rs.1.25
per share (12.50 per- cent) for the year ended 31st March 2011. The
amount of dividend and the tax thereon aggregate to Rs.425.43 Lacs.
BUSINESS REVIEW
Year under review proved to be turn around for the com- pany in terms
of Sales target of the Company. The rev- enue realization was Rs.
46447.94 Lacs as compare to previous Year of Rs. 36645.89 Lacs. The
Company has earned net Profit for the year Rs. 583.13 Lacs as compare
to previous year figure of Rs. 1155.98 Lacs. Company has reported
excellent sale during the year under review and accepted new challenges
of new economic reforms and Global Markets.
ISSUE OF BONUS SHARE
Pursuant to the approval of the members of the Company in their General
Meeting held on 8th November 2010, the Company issued and allotted
2,43,22,500 Equity Shares of Rs.10/- each as fully paid up in the ratio
of five bonus shares for every one existing equity share held as on
19th November, 2010 i.e. record date fixed for the purpose.
Consequent, the paid up capital of the Company went up from Rs.486.45
Lacs to Rs.2918.70 Lacs during the year under review.
DIRECTORS
In accordance with Section 256 of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Deepak Mehta will retire
by rotation at the ensuing Annual General Meeting and is eligible for
re-appointment.
DEPOSITS
Your Company has not accepted any public deposits within the meaning of
the provisions of section 58 A of the com- panies Act, 1956.
INSURANCE
The assets of the Company are adequately insured against the loss of
fire, natural calamities and such other risk considered by management
of the Company.
AUDITOR AND THEIR REPORT
Comments of the auditors in their report for the period ended 31st
March, 2011, are self explanatory and need no comments.
M/s Ashok Khasgiwala & Co., Chartered Accountants, Indore, will retire
at the conclusion of ensuing Annual Gen- eral Meeting. The Board
proposed their re-appointment as Statutory Auditor to audit the
accounts of the Company for the year 2011-12. You are requested to
consider their re-appointment.
DECLARATION PURSUANT TO 217(2AA)
In pursuant to Provision contained in Section 217(2AA) of the Companies
act, 1956, Directors of the Company Con- firm That:
I. In the preparation of the annual accounts, applicable accounting
standards have been followed.
II. Accounting Policies selected were applied consistently.
Reasonable and Prudent judgments and estimates were made so as to give
a true and fair view of the state of affairs of the Company as at 31st
March 2011 and profit & loss account of the Company for the year ended
on that date.
III. Proper and sufficient care has been taken for the maintenance of
adequate accounting records in ac- cordance with provisions of
Companies act, 1956 for safeguarding the assets of the Company and for
pre- venting and detecting frauds of the Company and other
irregularities.
IV. Annual accounts of the Company have been prepared on Going Concern
basis.
COMPLIANCE CERTIFICATE
In accordance with the requirement of provisions of Section 383A of the
Companies, Act, 1956, a compliance Certificate from a practicing
Company Secretary for the year ended 31st March 2011 is attached
herewith.
CORPORATE GOVERNANCE
Your Company is committed to follow the guidelines of SEBI and Stock
Exchanges form time to time. Your Company implemented all of its major
stipulation as applicable to the Company. The Statutory Auditor's
certificate in accordance with clause 49 of Listing agreement and
report on Corporate Governance is annexed to and forming part of the
Directors Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A Management discussion and Analysis Report have been attached and
forms part of the Directors Report.
PARTICULARS OF EMPLOYEES
There were no employees during the current year drawing the
remuneration more than the limit prescribed under section 217(2A) of
the Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY & FOREIGN EXCHANGE
ETC.
Information in accordance with the provision of Section 217(l)(e) of
the Companies Act, 1956 read with Compa- nies (Disclosure of
particulars in the report of Board of Directors) Rules, 1988 regarding
conservation of energy, technology absorption and foreign exchange
earnings and outgo are given in annexure TV forming part of this re-
port.
ACKNOWLEDGEMENT
Your Directors acknowledge the vital role of conscientious and
hardworking employee of the Company at all levels towards over all
progress of the Company. Stockholders, Customers, Bankers have
continued to lend their valuable support to the Company. Your Board
takes this opportu- nity to record their appreciation in this regard.
For & On Behalf of the Board of Directors
Mukesh Sangla
Chairman cum Managing Director
Place : Indore
Date : 30.05.2011
Mar 31, 2010
Directors are pleased to submit their 25th Annual Report on the
business and operations of the Company along with audited Balance
Sheets & Profit and Loss Account for the year ended 31st March, 2010.
FINANCIAL RESULTS
Financial results of the company for the year under re- view along with
figures for previous year are as follows:
(Rs. in Lacs)
Particulars For the For the-year
year ended ended
31.03.2010 31.03.2009
Gross Income 36645.89 30537.98
Profit before Interest, 2657.66 1201.79
Depreciation & Tax
Less: Interest 1012.53 743.50
Depreciation 183.03 136.62
Profit before Tax 1462.10 321.67
Provision for Tax:
Current Tax 278.00 107.00
Deferred Tax 28.11 9.12
Fringe Benefit Tax 0 1.70
Net Profit After Tax 1155.98 203.85
Less: Prior Period Adjustment 2.05 -
Profit brought forward 1153.92 203.85
DIVIDEND
In order to conserve the resources of the Company and to maintain the
liquidity, the Board of Directors has decided not to declare any
dividend on Equity shares for the year ended 31st March 2010.
BUSINESS REVIEW
Year under review proved to be turn around for the com- pany in terms
of Sales target and profitability. The rev- enue realization was Rs.
36645.89 Lacs as compare to previous Year of Rs. 30537.98 Lacs. The
Company has earned net Profit for the year Rs. 1155.98 Lacs as com-
pare to previous year figure of Rs. 203.85 Lacs. Company has reported
excellent performance during the year un- der review and accepted new
challenges of new economic reforms and Global Markets. Company
abilities to neutral- ize cost increase and improve margins together
with pur- chase efficiency, controlling overheads effectively.
CHANGE OF NAME OF THE COMPANY
The Company has changed its name from Signet Overseas Limited to Signet
Industries Limited.
ISSUE OF BONUS SHARE
The Company allotted 3243000 equity shares as fully paid up bonus
shares to its Shareholders on 15th December 2009 by utilization of
surplus in Profit and Loss account pursuant to a resolution passed by
the shareholders.
DIRECTORS
In accordance with Section 256 of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Saurabh Sangla will retire
by rotation at the ensuing Annual General Meeting and is eligible for
re-appointment.
Your Board had appointed Mr. Deepak Mehta and Mr. Murli Dhar Vashist as
an Additional Director during the Year. They retire at the ensuing
Annual General Meeting of the Com- pany in terms of Section 260 of the
Companies Act, 1956 but being eligible offers them self for
re-appointment.
DEPOSITS
Your Company has not accepted any deposits from public within the
meaning of the provisions of section 58 A of the companies Act, 1956.
INSURANCE
The assets of the Company are adequately insured against the loss of
fire, natural calamities and such other risk con- sidered by management
of the Company.
AUDITOR ANDTHEIR REPORT
Comments of the auditors in their report for the period ended 31st
March, 2010, are self explanatory and need no comments.
M/s Ashok Khasgiwala & Co., Chartered Accountants, Indore, will retire
at the conclusion of ensuing Annual Gen- eral Meeting. The Board
proposed their re-appointment as Statutory Auditor to audit the
accountsof the Company for the year 2010-11. You are requested to
consider their re-appointment.
DECLARATION PURSUANTTO 217(2AA)
In pursuant to Prevision contained in Section 217(2AA) of the Companies
act, 1956, Directors of the Company Con- firm That:
I. In the preparation of the annual accounts, applicable accounting
standards have been followed.
II. Accounting Policies selected were applied consistently.
Reasonable and prudent judgments and estimates were made so as to give
a true and fair view of the state of affairs of the Company as at 31st
March 2010 and profit & loss account of the Company for the year ended
on that date.
III. Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with provisions of Companies
act, 1956 for safeguarding the assets of the Company and for preventing
and detecting frauds of the Company and other irregularities.
IV. Annual accounts of the Company have been prepared on Going Concern
basis.
COMPLIANCE CERTIFICATE
In accordance with the requirement of provisions of Sec- tion 383A of
the Companies, Act, 1956, a compliance Certificate from a practicing
Company Secretary for the year ended 31st March 2010 is attached
herewith.
CORPORATE GOVERNANCE
Your Company is committed to follow the guidelines of SEBI and Stock
Exchanges form time to time. Your Com- pany implemented all of its
major stipulation as applicable to the Company. The Statutory Auditors
certificate in accordance with clause 49 of Listing agreement and re-
port on Corporate Governance is annexed to and forming part of the
Directors Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A Management discussion and Analysis Report have been attached and
forms part the Directors Report.
PARTICULARS OF EMPLOYEES
There were no employees during the current year draw- ing the
remuneration more than the limit prescribed under section 217(2A) of
the Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY & FOREIGN EXCHANGE
ETC.
Information in accordance with the provision of Section 217(l)(e) of
the Companies Act, 1956 read with Compa- nies (Disclosure of
particulars in the report of Board of Directors) Rules, 1988 regarding
conservation of energy, technology absorption and foreign exchange
earnings and outgo are given in annexure TV forming part of this re-
port.
ACKNOWLEDGEMENT
Your Directors acknowledge the vital role of conscientious and
hardworking employee of the Company at all levels towards over all
progress of the Company. Stockholders, Customers, Bankers have
continued to lend their valuable support to the Company. Your Board
takes this opportunity to record their appreciation in this regard.
For & On Behalf of the Board of Directors
Place : Indore Mukesh Sangla
Date : 29.05.2010 Chairman cum Managing Director