You are here » Home » Companies » Company Overview » Balaji Amines Ltd

Balaji Amines Ltd.

BSE: 530999 Sector: Industrials
NSE: BALAMINES ISIN Code: INE050E01027
BSE LIVE 15:40 | 02 Dec 303.25 -4.95
(-1.61%)
OPEN

305.55

HIGH

307.50

LOW

297.95

NSE LIVE 15:30 | 02 Dec 301.25 -8.50
(-2.74%)
OPEN

310.00

HIGH

310.85

LOW

298.00

OPEN 305.55
PREVIOUS CLOSE 308.20
VOLUME 3382
52-Week high 380.00
52-Week low 115.00
P/E 11.77
Mkt Cap.(Rs cr) 982.53
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 305.55
CLOSE 308.20
VOLUME 3382
52-Week high 380.00
52-Week low 115.00
P/E 11.77
Mkt Cap.(Rs cr) 982.53
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Balaji Amines Ltd. (BALAMINES) - Director Report

Company director report

Dear Shareholders

Your Directors have immense pleasure in presenting the Twenty Eighth Annual Report ofthe company with Audited Financial Statements for the year ended 31stMarch2016

FINANCIAL RESULTS

The performance for the current year in comparison to the previous year are as under:

(Rs. in Lacs)

Sr.No. PARTICULARS CURRENT YEAR (2015-16) PREVIOUS YEAR (2014-15)
1. Total Income 63716.75 60825.01
2. Expenditure 50603.10 50250.32
3. Profit before interest depreciation and tax 13113.65 10574.69
4. Depreciation 1789.72 1859.02
5. Interest and Finance Charges 2008.49 3141.60
6. Profit before tax 9315.44 5574.07
7. Provision for taxes (including DTL) 3188.38 1938.25
8. Profit after tax 6127.06 3635.82
9. Dividend for the year (including corporate dividend tax) 779.96 466.55
10. Reserves(Excluding Revaluation reserves) 28521.23 23124.54
11. EPS (Rs) on face value of Rs. 2/- each share 18.91 11.22
12. Book value (Rs.) on face value of Rs. 2/- each share 88.03 73.37

OPERATING RESULTS AND BUSINESS

Your company has achieved a Net turnover of Rs. 634.92 Crores during the financialyear2015-16.The Profit After Tax for the year stood at Rs. 61.27 Crores as againstprevious year Profit After Tax of Rs. 36.35 Crores registering an increase of 68.55 %.

During the year most of the commodity prices have fallen globally due to low demandfor oil and gas and excess supply position. Inspite of this your company could postOutstanding performance despite the slow down in major markets.

EXPORTS

The Exports of the company have grown marginally in volume with an accompanyingincrease in product mix. The REACH certification and certificate of suitability hasimproved our positioning with International Customers. The Company's products are wellestablished in the Global Market.

DIVIDEND

Your Directors have pleasure in declaring dividends to shareholders and are pleased torecommend for approval of the members a dividend of Rs. 2/- per share (100% on paid upvalue of Rs. 2/- per share). The total cash outflow on account of dividends payableincluding dividend distribution tax payable is Rs. 779.96 lacs.

SUBSIDIARIES

The company is having a wholly owned subsidiary Bhagyanagar Chemicals Limited andsubstantially owned subsidiary Balaji Greentech Products Limited.

Wherein the undertaking of Bhagyanagar Chemicals Limited is limited to only a longterm lease to its 100% holding company Balaji Amines Limited who is carrying outmanufacturing activity therein. As such the company Bhagyanagar Chemicals Limited does nothave any transactions except of lease rentals. Responsibility of safe keeping of theassets of the company vests with the holding company Balaji Amines Limited.

Balaji Greentech Products Limited (BGPL) is into manufacturing of energy efficientlamps and components. The company manufactures supplies a comprehensive range of CompactFluorescent Lamps (CFL).

The Statement containing the salient features of the subsidiaries as per sub -sections(3) of section 129 of the Companies Act 2013 in Form AOC -1 is herewith annexed asAnnexure-I to this report.

TRANSFER TO RESERVES

The Company proposes to transfer Rs. 615.26 lacs to the General Reserve out of theamount available for appropriations and an amount of Rs. 4731.84 lacs is proposed to beretained in the statement of Profit and Loss.

RESEARCH & DEVELOPMENT

Continuous R8iD initiatives have yielded excellent results during the year withimproved efficiencies of raw materials utilities and utilization of resources. Yourcompany has become one of the leaders in Speciality Chemicals in the InternationalSpeciality Chemical arena and plans to be on the top years to come in India.

Your Company has been carrying out continuous Research and Development activities inthe following areas:

• Several improvements in Polyvinyl Pyrrolidone plant have been initiated andresulting in lower consumption coefficients as well as research on addition of new streamof k-values being explored for which R&D Pilot plant is successful.

• Identification of new products and development of latest process technologiesare continuously worked on.

• Continuous improvement of processes and fine tuning of process parameters tooptimize utilization of energy utilities and raw materials consumption and alternateroutes are being looked at.

• Backward and forward integration of products to improve value chain and betterutilization of all the resources.

• Adoption of advanced technology in recovering waste water has resulted inminimizing the impact on environment and concentration of core principle of Reduce Reuseand Recycle of all the resources.

EXPANSION / DIVERSIFICATION

The following R&D demonstration projects were undertaken during the year 2015-16:

1. Acetonitrile

2. PVPK-90

3. Crospovidone * The results of these projects will be yielding fruits in the years tocome.

CONSOLIDATED FINANCIAL STATEMENTS

In pursuance to the general Circular 08/2014 No. 1/19/2013-CL-V of Ministry ofCorporate Affairs Dated 04.04.2014 for Applicability with regard to relevant financialyear the company have complied with provisions rules and regulations under the companiesAct 1956.

In pursuance to the Sub Section (3) of Section 129 of the Companies Act 2013 companyis required to prepare consolidated financial statements for the financial year ended 31stMarch 2016

The Consolidated Financial Statement of your company with that of its wholly ownedsubsidiary Bhagyanagar Chemicals Limited and substantial holding Company Balaji GreentechProducts Limited is provided in the Annual Report.

The annual accounts of the Subsidiary Companies and the related detailed informationshall be made available to members seeking such information at any point of time. Theannual accounts of the Bhagyanagar Chemicals Limited and Balaji Greentech Products Limitedshall also be kept for inspection by any of the members at the registered office of thecompany.

The Statement containing the salient features of the subsidiaries as per sub -sections(3) of section 129 of the Companies Act 2013 in Form AOC -1 is herewith annexed asAnnexure-I to this report.

STATUTORY AUDITORS

M/s V. Sridhar & Co Chartered Accountants (ICAI Firm Registration No.006206S)Flyderabad were appointed as the statutory auditors of the Company for the Financial year2015-16 at the Annual General Meeting (AGM) of the Company held on 23rdSeptember 2015 and hold office until the conclusion of the ensuing Annual General Meeting.

M/s. V. Sridhar & Co Chartered Accountants have been the Auditors of the Companysince FY1996-97 and have completed a term of 19 years. As per the provisions of Section139 of the Act no listed company can appoint or re-appoint an audit firm as at i auditorfor more than two terms of five consecutive years. Section 139 of the Act also provided aperiod of three years from the date of commencement of the Act to comply with thisrequirement. In view of the above M/s. V. Sridhar & Co Chartered Accountants beingeligible for re-appointment and based on the recommendation of the Audit Committee theBoard of Directors has at its meeting held on May 21st 2016 proposed theappointment of M/s. V. Sridhar & Co Chartered Accountants as the statutory auditorsof the Company to hold office from the conclusion of this 28hAnnual GeneralMeeting (AGM) till the conclusion of next Annual General Meeting of the Company i.e. 29thAnnualGeneral Meeting to be held in the year 2017.

The company has received letter from the Auditors under Section 139(1) of the CompaniesAct 2013 and the Rules framed there under furnished a certificate of their eligibilityand consent for re-appointment to that effect that their appointment if made would bewithin the prescribed limits under provisions of sections specified under the Act andthat they are not disqualified for such re appointment within the meaning of the sectionof the said Act.

INTERNAL AUDITORS

The Board of Directors based on the recommendation of the Audit Committee havere-appointed M/s. Aherkar & Co. Chartered Accountants Solapur as the InternalAuditors of your Company. The Internal Auditors are submitting their reports on monthlybasis.

COST AUDITOR

In accordance with Section 148(3) and other applicable provisions if any of theCompanies Act 2013 and The Companies (Audit and Auditors) Rules 2014 the AuditCommittee has recommended and the Board of Directors had appointed Mr. N. V. S. KapardhiPracticing Cost Accountants Hyderabad being eligible and having sought re-appointmentas Cost Auditors of the Company to carry out the cost audit of the products manufacturedby the Company during the financial year 201617 on a remuneration of Rs. 60000/- (RupeesSixty Thousand only). The remuneration payable to the cost auditor is required to beplaced before the Members in a general meeting for their approval. Accordingly aresolution seeking Members' approval for the remuneration payable to Mr. N. V. S.Kapardhi Cost Accountants is included at Item No.5 of the Notice convening the AnnualGeneral Meeting.

SECRETARIAL AUDIT

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 hasappointed M/s. P. S. Rao & Associates a firm of Company Secretaries in Practice toundertake the Secretarial Audit of the Company. The Secretariat Audit Report is annexedherewith as "Annexure III" to this report.

Explanations to the Observations of Secretarial Auditors:

In respect of its plant at Tamalwadi (Unit 1) and Chincholi (Unit 3) consent letterissued Maharashtra Pollution Control Board expired on 28.02.2016. The Company has madeapplication for renewal of the consent and the same is awaited.

In respect of its plant at IDA Bollarum (Unit 2) the consent and authorization orderissued by the Andhra Pradesh Pollution Control Board expired on 31.12.2013. The Companyhas made application for renewal of the same and is awaiting the renewal.

The reasons and the reply for the observations made by the Secretarial Auditors is selfexplanatory

DIRECTORS

In terms of Article 134 of the Articles of Association of the company Mr. G. HemanthReddy Director retires by rotation and being eligible offers himself for reappointmentat the ensuing Annual General Meeting.

His profile and the experience in specific functional areas and other directorshipsheld by him as stipulated in Regulations of the Securities and Exchange Board Of India(Listing Obligations And Disclosure Requirements) Regulations 2015 is provided in theAdditional Information Section forming part of Notice and Corporate Governance Reportforming part of the Annual Report.

The said resolution forms part of the notice of the Annual General Meeting

Every Independent Director at the first meeting of the Board in which he participatesas a Director and thereafter at the first meeting of the Board in every financial yeargives a declaration that he meets the criteria of independence as provided under theCompanies Act 2013 and the company has taken note of the same.

None of the directors is disqualified as on 31st March 2016 from beingappointed as director in terms of sections 164(2) of the Act.

A brief Profile of the Directors of the Company is annexed herewith as 'Annexure IV' tothis report.

DETAILS OF DIRECTORS OR KEY MANAGERIAL PERSONNEL WHO WERE APPOINTED OR HAVE RESIGNEDDURING THE YEAR:

During the year there was no changes in the composition of Board of Directors none ofthe directors have resigned during the year.

NUMBER OF MEETINGS OF THE BOARD DURING THE YEAR:

The Full Board of Directors of the Company met 4 (four times) and there was l(one)independent Directors meeting held during the year.

PARTICULARS OF LOANS GUARANTEES OR1NVESTMENTS

Details of Loans Guarantees and Investments covered under the provisions of Section186 of the Companies Act 2013 are given in the notes to the Financial Statements.

FIXED DEPOSITS

Your Company has not accepted any fixed deposits and as such no principal or interestwas outstanding as on the date of the Balance sheet.

CHANGE IN NATURE OF BUSINESS:

There is no change in the nature of business during the year

MATERIAL CHANGES AND COMMITMENTS:

There are no material changes and commitments affecting the financial position of thecompany occurred between the end of the financial year of the company to which thefinancial statements relate and the date of the report

DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THEFINANCIAL STATEMENTS.

The Company has in place proper and adequate internal control systems commensurate withthe nature of its business and size and complexity of its operations. Internal controlsystems comprising of policies and procedures designed to ensure reliability of financialreporting timely feedback on achievement of operational and strategic goals compliancewith policies procedure applicable laws and regulations and that all assets andresources are acquired are used economically.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134 (5) of the Companies Act 2013 your Directors confirm that tothe best of their knowledge and belief and according to the information and explanationobtained by them

i. In the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures;

ii. Such accounting policies as mentioned in the notes to the financial statements havebeen selected and applied consistently and judgments and estimates that are reasonable andprudent made so as to give a true and fair view of the state of affairs of the Company atthe end of the financial year 2015-16 and of the statement of profit or loss of theCompany for that period;

iii. Proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

iv. The annual accounts for the year 2015-16 have been prepared on a going concernbasis.

v. That the proper internal financial controls were in place and that the financialcontrols were adequate and were operating effectively.

vi. That systems to ensure compliance with the provisions of all applicable laws werein place and were adequate and effectively mentioned under various heads of thedepartments which are in then reporting to the Whole Time Director.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

The Company has a Whistle Blower Policy framed to deal with instances of fraud andmismanagement if any. The details of the Policy are explained in the Corporate GovernanceReport and also posted on the website of the Company and the web site is http://www.balajiamines.com.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All related party transactions that were entered into during the financial year were onan arm's length basis and were in the ordinary course of business. There are no materiallysignificant related party transactions made by the Company with Promoters Directors KeyManagerial Personnel or other designated persons which may have a potential conflict withthe interest of the Company at large.

The Policy on Related Party Transactions as approved by the Board is uploaded on thewebsite of the Company.

The particulars of contracts or arrangements with related parties referred to insub-section (1) of Section 188 of the Companies Act 2013 in Form AOC-2 is herewithannexed as 'Annexure-V' to this report.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT 9 is annexedherewith as "Annexure VI" to this report.

MANAGEMENT DISCUSSION & ANALYSIS .

Pursuant to the provisions of Regulation 34(2) (e) of the of the Securities AndExchange Board Of India (Listing Obligations And Disclosure Requirements) Regulations2015 a report on Management Discussion & Analysis forms part of the Annual Report andis herewith annexed as 'Annexure VII' to this report.

PARTICULARS OF EMPLOYEES

None of the employees fall under the purview of the provisions provided under theSection 197 read with Rule 5 of The Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 whose details are required to be disclosed.

A statement pursuant to the Section 197 read with Rule 5 of The Companies (Appointmentand Remuneration of Managerial Personnel) Rules 2014 is herewith annexed as 'AnnexureVIII' to this report.

CORPORATE GOVERNANCE

The Company has been making every endeavor to bring more transparency in the conduct ofits business. As per the requirements of the Listing Agreement with the Stock Exchanges acompliance report on Corporate Governance for the year 2015-16 and a Certificate from theAuditors of the Company are furnished which form part of this Annual Report.

HUMAN RESOURCES

Your Company considers its Human Resource as the key to achieve its objectives. Keepingthis in view your Company takes all the care to attract train and retain well qualifiedand deserving employees. The employees are sufficiently empowered and enabled to work inan environment that inspires them to achieve higher levels of performance. The unflinchingcommitment of the employees is the driving force behind fulfilling the Company's vision.Your Company appreciates the contribution of its dedicated employees.

ENERGY CONSERVATION TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo stipulated under Section 134(3)(m) of the Companies Act 2013 read withRule 8 of The Companies (Accounts) Rules 2014 is annexed herewith as"Annexure-IX" to this report.

CORPORATE SOCIAL RESPONSIBILITY

During the year under review according to the provisions of Section 135 of CompaniesAct 2013 Corporate Social Responsibility activities are to be taken up by the Company.And as required by the provisions the company has constituted a Corporate SocialResponsibility committee and also have adopted a Corporate Social Responsibility Policy.

A detailed annual report on Corporate Social Responsibility activities under taken bythe company during the year is attached as Annexure II.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant material orders passed by the Regulators / Courts which wouldimpact the going concern status of the Company and its future operations.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITIONAND REDRESSAL) ACT 2013:

"The Company has in place an Anti Sexual Harassment Policy in line with therequirements of The Sexual Harassment of Women at the Workplace (Prevention Prohibition& Redressal) Act 2013. Internal Complaints Committee (ICC) has been set up to redresscomplaints received regarding sexual harassment. All employees (permanent contractualtemporary trainees) are covered underthis policy.

The following is a summary of sexual harassment complaints received and disposed offduring each Calendar year:

• No. of complaints received : Nil

• No. of complaints disposed off :Nil

ACKNOWLEDGMENTS

Your Directors take this opportunity to express their sincere appreciation to theshareholders customers bankers suppliers and other business associates for theexcellent support and co-operation extended by them.

Your Directors gratefully acknowledge the ongoing co-operation and support provided bythe Central and State Governments Stock Exchanges SEBI Banks Customers and suppliers.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Place: Secunderabad A. PRATHAP REDDY
Date :21st May 2016. CHAIRMAN & MANAGING DIRECTOR

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard