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JMT Auto Ltd.

BSE: 513691 Sector: Auto
NSE: JMTAUTOLTD ISIN Code: INE988E01036
BSE 15:40 | 19 Feb 4.98 0.05
(1.01%)
OPEN

5.00

HIGH

5.08

LOW

4.76

NSE 15:26 | 19 Feb 4.95 0.10
(2.06%)
OPEN

4.85

HIGH

5.05

LOW

4.80

OPEN 5.00
PREVIOUS CLOSE 4.93
VOLUME 187656
52-Week high 17.75
52-Week low 3.45
P/E 124.50
Mkt Cap.(Rs cr) 251
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.00
CLOSE 4.93
VOLUME 187656
52-Week high 17.75
52-Week low 3.45
P/E 124.50
Mkt Cap.(Rs cr) 251
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

JMT Auto Ltd. (JMTAUTOLTD) - Director Report

Company director report

Dear Shareholders

Your Directors have immense pleasure in presenting their 30th Annual Report along withthe Audited Results of the Company for the year ended 31st March 2017.

OPERATING AND FINANCIAL REVIEW

(Rs. in Lakhs)
PARTICULARS Standalone Consolidated
Year ended 31.03.2017 Year ended 31.03.2016 Year ended 31.03.2017 Year ended 31.03.2016
Gross Turnover* 34612.59 37191.47 34612.59 36926.43
Earnings before Interest
Tax & Depreciation and
Amortization (EBITDA) 5648.53 5423.89 5657.16 5498.44
Finance Cost 2139.25 1922.89 2139.25 1953.84
Depreciation 2932.86 2758.23 2932.86 2761.55
Tax Expenses 155.72 257.12 155.72 273.60
Net Profit After Tax 420.69 485.65 429.32 509.45

*Note: Gross Turnover for the year ended 31.03.2017 includes excise duty amountingto INR 3196.25 Lakhs. Gross Turnover for the year ended 31.03.2016 includes excise dutyamounting to INR 3597.16 Lakhs.

DIVIDEND

The Board has not recommended any dividend for the year ended 31st March 2017.

COMPANY'S PERFORMANCE

Revenue from operations for the nancial year 2016-17 at Rs. 34612.59 Lakhs was lowerby 6.93% over last year (Rs. 37191.47 lakhs in 2015-16). Profit before tax (PBT) for theyear is Rs. 576.41 Lakhs from Rs. 742.77 lakhs in 2015-16. Prot after tax (PAT) for theyear is Rs.420.69 Lakhs recording a decline of 13.38% over the PAT of Rs. 485.65 lakhs in2015-16.

Reserves and surplus of the Company has increased from Rs.11537.97 Lakhs in 2015-16 toRs. 11923.67 Lakhs in the financial year 2016-17. The Company has a Net worth of Rs.16961.99 Lakhs as on 31st March 2017 in comparison to Rs. 16576.29 Lakhs as on 31stMarch 2016.

CHANGES IN SHARE CAPITAL

During the Financial Year 2016-17 there has been sub-division of shares in the ratio2:1 whereby the face value of the shares has become Re 1/- and the number of EquityShares comprising the share capital of the Company has increased from 2519 Lakhs to 5038Lakhs the value remaining the same.

DISCLOSURE REGARDING ISSUE OF EQUITY SHARES WITH DIFFERENTIAL RIGHTS

The Company has not issued any Equity Shares with Differential Rights.

DISCLOSURE REGARDING ISSUE OF SWEAT EQUITY SHARES

The Company has not issued any Sweat Equity Shares.

STOCK EXCHANGE REQUIREMENTS

The Equity shares of the Company are being traded at Bombay Stock ExchangePhiroze Jeejebhoy Towers Dalal Street Mumbai and at National Stock Exchange of IndiaLimited Exchange Plaza Bandra Kurla Complex Bandra (E) Mumbai.

CREDIT RATING

In order to comply with BASEL – II Guidelines your Company has got the rating doneby M/s ICRA LIMITED.

CREDIT RATING AGENCY LONG TERM/ MEDIUM TERM BANK FACILITIES SHORT TERM BANK FACILITIES
ICRA [ICRA] BB– [ICRA]A4

DEPOSITS

As in the previous year your Company has not accepted any Deposits within the meaningof Section 73 of the Companies Act 2013 from the Shareholders/Public during the yearunder review.

ENVIRONMENT PROTECTION AND POLLUTION CONTROL

Company is compliant with all the rules and regulations of the Jharkhand StatePollution Control Board and regularly monitors and keeps the effluents emissions andwaste disposals from the works well within the stipulated parameters as per theEnvironment Conservation & Pollution Control Laws.

The Company is of ISO 14001/2004 and OHSAS 18001/2007 certified and maintains itscommitment towards according priority to Environment Occupational Health and Safety aspart of its work culture.

DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

Mr. Gautam Malhotra retires by rotation and being eligible offers himself forre-appointment at the ensuing annual general meeting.

Mr. John Ernest Flintham also retires by rotation and being eligible offers himself forre-appointment at the ensuing annual general meeting.

Pursuant to the provisions of Section 149 of the Act which came into effect from April1 2014 Mr. Sanjay Chhabra was appointed as independent director for five years at the27th AGM of the Company held on September 27 2014 and Ms. Ankita Wadhawan was appointedas independent director for five years at the 29th AGM of the Company held on September29 2016. The terms and conditions of appointment of the independent directors are as perSchedule IV of the Act. They have submitted a declaration that each of them meets thecriteria of independence as provided in Section 149(6) of the Act and there has been nochange in the circumstances which may affect their status as independent director duringthe year.

During the year the non-executive directors of the Company had no pecuniaryrelationship or transactions with the Company.

Mr. Ashok Mittal was appointed as Non-Executive Independent Director at the 27th AGM ofthe Company held on September 27 2014 for a term of five years. He resigned from thedirectorship of the Company on April 17 2017.

NUMBER OF BOARD MEETINGS

Five meetings of the board were held during the year 2016-17. For details of themeetings of the board please refer to the corporate governance report which forms partof this report.

PERFORMANCE EVALUATION OF BOARD

The board of directors has carried out an annual evaluation of its own performanceBoard committees and individual directors pursuant to the provisions of the Act and thecorporate governance requirements as prescribed by SEBI Listing Regulations.

The performance of the Independent Directors was evaluated by the Board after seekinginputs from all the directors on the effectiveness and contribution of the IndependentDirectors.

The performance of the committees was evaluated by the board after seeking inputs fromthe committee members on the basis of the criteria such as the composition of committeeseffectiveness of committee meetings etc.

The Board and the Nomination and Remuneration Committee ("NRC") reviewed theperformance of the individual directors on the basis of the criteria such as thecontribution of the individual director to the Board and committee meetings likepreparedness on the issues to be discussed meaningful and constructive contribution andinputs in meetings etc. In addition the Chairman was also evaluated on the key aspectsof his role.

In a separate meeting of independent Directors performance of non-independentdirectors performance of the board as a whole and performance of the Chairman wasevaluated taking into account the views of executive directors and non-executivedirectors. The same was discussed in the board meeting that followed the meeting of theindependent Directors at which the performance of the Board its committees andindividual directors was also discussed.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 134(5) of the Companies Act 2003 the Directorshereby confirm:

1. That in the preparation of Annual Accounts the applicable Accounting Standards havebeen followed and there has been no material departure.

2. That the selected accounting policies were applied consistently and the directorsmade judgments and estimates that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company as at 31st March 2017 and of the profits forthe year ended on that date.

3. That proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2003 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities.

4. That the annual accounts have been prepared on a going concern basis.

5. That internal nancial controls have been laid down to be followed by the Companyand such internal nancial controls are adequate and operating effectively.

6. That proper systems have been devised to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

Based on the framework of internal nancial controls and compliance systemsestablished and maintained by the Company work performed by the internal statutory andsecretarial auditors and external consultants and the reviews performed by management andthe relevant board committees including the audit committee the board is of the opinionthat the Company's internal nancial controls were adequate and effective during thenancial year 2016-17.

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND OTHER DETAILS

The Company's policy on directors' appointment and remuneration and other mattersprovided in Section 178(3) of the Act has been disclosed in the Corporate GovernanceReport which forms part of the Boards' Report.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The details in respect of internal nancial control and their adequacy are included inthe Management Discussion & Analysis Report which forms part of this report.

AUDITORS

Pursuant to the provisions of Section 139 of the Act and the rules framed thereunderM/s. A C Gupta & Associates Chartered Accountants were appointed as statutoryauditors of the Company from the conclusion of the twenty-seventh annual general meeting(AGM) of the Company held on September 27 2014 till the conclusion of the thirty-firstAGM to be held in the year 2018 subject to ratication of their appointment at everyAGM.

MATERIAL CHANGES & COMMITMENTS

Except as disclosed elsewhere in the Report there have been no material changes andcommitments which can affect the financial position of the Company between the end of thefinancial year and the date of report.

As required under Section 134(3) of the Companies Act 2013 the Board of Directorsinforms the shareholders that during the period under review no changes have occurred inthe nature of the Company's business or in the nature of the business carried on by themand generally in the classes of business in which the Company has an interest.

RISK MANAGEMENT

The Board of the Company has formed a risk management committee to frame implement andmonitor the risk management plan for the Company. The committee is responsible forreviewing the risk management plan and ensuring its effectiveness. The audit committee hasadditional oversight in the area of nancial risks and controls. Major risks identiedby the businesses and functions are systematically addressed through mitigating actions ona continuing basis.

The development and implementation of risk management policy has been covered in themanagement discussion and analysis which forms part of this report.

PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS

The particulars of loans guarantees and investments have been disclosed in thefinancial statements.

ENVIRONMENT HEALTH AND SAFETY

Company has made significant contribution towards conservation of energy. Innovationand technological up gradation of processes and methods have made significant impact inthe overall consumption of natural resources energy fuel etc.

Company's management is consistently involved in promoting eco-friendly measures likeplanting of trees in and around the Work units creating new gardens Rain WaterHarvesting usage of transparent sheets for natural sunlight inside the plant use ofturbo ventilators for ventilation purpose and for minimizing the carbon footprints use ofpropane gas in the heat treatment plants for reducing the carbon emissions minimizingeffluents through better monitoring and corrective measures reduction of quantum of inputmaterial whether it is steel or usage of inert gases for welding through ValueAnalysis/Value Engineering activities.

All Statutory safety norms are diligently followed by the Company. Safety is accordedprime importance in the organization. Each Plant has Safety Committee to oversee thesafety of the workforce through ensuring safe working conditions and well informed andduly trained workers. Safety audits and evacuation drills are conducted regularly and allstaff members are encouraged to take part in the same and training for the awareness ofthe employees are conducted at regular intervals.

Company has a personal Accident Insurance Policy (group) for ensuring welfare andsecurity to the employees and their families.

CORPORATE GOVERNANCE

The Company is committed to maintain high standards of Corporate Governance and adhereto the Corporate Governance requirements set out by SEBI. The Report on CorporateGovernance as stipulated under SEBI Listing Regulations is attached to this Report.

ANNUAL RETURN EXTRACT

As provided under Section 92(3) of the Act the extract of annual return is given as Annexure-Iin the prescribed Form MGT-9 which forms part of this report.

CORPORATE SOCIAL RESPONSIBILITY

The brief outline of the Corporate Social Responsibility (CSR) Policy of the Companyand the initiatives undertaken by the Company on CSR activities during the year are setout in Annexure-II of this report in the format prescribed in the Companies(Corporate Social Responsibility Policy) Rules 2014. The policy is available on thewebsite of the Company.

EMPLOYEE STOCK OPTIONS

Pursuant to the provisions of the Securities and Exchange Board of India (EmployeesStock Option Scheme and Employees Stock Purchase Scheme) Guidelines 1999 as amended fromtime to time the details of stock options as on March 31 2017 under the "JMT ESOPPlan- 2012" are set out as Annexure-III to this Directors' Report.

SUBSIDIARY AND ASSOCIATES

During the year the Board of Directors (‘the Board') reviewed the affairs of thesubsidiary company. In accordance with Section 129(3) of the Companies Act 2013 we haveprepared consolidated financial statements of the Company which forms part of this AnnualReport. Further a statement containing the salient features of the financial statement ofthe subsidiary and joint venture company in the prescribed Form AOC-1 is annexedherewith as Annexure-IV and forms part of the Annual Report which covers thefinancial position of subsidiary and associate company and hence not repeated here for thesake of brevity.

In accordance with Section 136 of the Companies Act 2013 the audited financialstatements including the consolidated financial statements and related information of theCompany and audited accounts of each of its subsidiaries are available on our websitewww.jmtauto.com. These documents will also be available for inspection during businesshours at our registered office in New Delhi.

RELATED PARTY TRANSACTIONS

None of the transactions with related parties falls under the scope of section 188(1)of the Act. All RPTs entered during the financial year by the Company are in ordinarycourse of business and on an arms' length basis. No material RPTs were entered during thefinancial year. Accordingly the disclosure required u/s 134(3)(h) of the Act in FormAOC-2 is not applicable to your Company.

PARTICULARS OF EMPLOYEES AND REMUNERATION

(a) The ratio of remuneration of each director to the median of employees' remunerationas per Section 197(12) of the Companies Act 2013 read with Rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 forms part of theBoard's report as Annexure - V.

(b) The statement containing particulars of employees as required under section 197(12)of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 is not applicable as there are no employees falling inthe category.

SECRETARIAL AUDIT REPORT

The auditors' report and secretarial auditors' report does not contain anyqualications reservations or adverse remarks. Report of the secretarial auditor isgiven as Annexure-VI which forms part of this report.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS & OUTGO

The relevant data regarding the above is given in the Annexure-VII hereto andforms part of this report.

MANAGEMENT DISCUSSION & ANALYSIS

A detailed review of operations performance and future outlook of the Company is givenseparately under the head "Management Discussion and Analysis Report" and formsa part of the Annual Report.

DISCLOSURE REQUIREMENTS

As per SEBI (LODR) Regulations 2015 Corporate Governance report with Auditors'certicate thereon and management discussion and analysis and business responsibilityreport are attached which form part of this report.

Details of the Familiarization Programme of the independent directors are available onthe website of the Company (URL: www.jmtauto.com/investors).

Policy on dealing with related party transactions is available on the website of theCompany (URL: www.jmtauto.com/investors).

The Company has formulated and published a Whistle Blower Policy to provide VigilMechanism for employees including directors of the Company to report genuine concerns. Theprovisions of this policy are in line with the provisions of the Section 177(9) of the Actand SEBI (LODR) Regulations 2015 (URL: www.jmtauto.com/investors).

ACKNOWLEDGEMENTS

The Board of Directors place on record their gratitude for the co-operation patronageand support received from Financial Institutions Bankers Government Bodies and employeesat all levels.

Your directors also wish to acknowledge the contribution made by the employees at alllevels and above all the trust and confidence reposed by the shareholders.

For and on behalf of the Board of Directors

Sd/-
Sanjay Tiku
CEO & Whole Time Director
DIN – 00300566

 

Place New Delhi
Date 18.08.2017