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Lumax Automotive Systems Ltd.

BSE: 532537 Sector: Auto
NSE: LUMAXAUTO ISIN Code: INE547G01019
BSE LIVE 15:40 | 02 May Stock Is Not Traded.
NSE 14:28 | 02 May Stock Is Not Traded.
OPEN 12.00
PREVIOUS CLOSE 12.60
VOLUME 3815
52-Week high 37.95
52-Week low 12.00
P/E
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 12.00
CLOSE 12.60
VOLUME 3815
52-Week high 37.95
52-Week low 12.00
P/E
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Lumax Automotive Systems Ltd. (LUMAXAUTO) - Director Report

Company director report

LUMAX AUTOMOTIVE SYSTEMS LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT To The members of LUMAX AUTOMOTIVE SYSTEMS LIMITED Your Directors have pleasure in presenting the 12th Annual Report together with audited accounts of the Company for the year ended 31st March 2012. Financial Results: The performance of the Company for the financial year is summarized as under: Rs. in million 2011-2012 2010-2011 SALES (excluding excise duty) 1120.33 1114.57 Profit (before interest, dep., exceptional item & tax) 138.23 141.48 Exceptional item (22.26) 6.04 Interest 86.39 77.13 Depreciation 35.97 43.72 Tax provision 6.18 2.94 Profit/Loss after tax 31.95 11.65 Dividend: After considering the long-term perspective of the finance need, your Director's has decided to reinvest the profits in the Company. Hence no dividend is recommended for this financial year by the Board. Operations: Your Company's total turnover during the year under review was Rs.1120.33 million as compared to Rs. 1114.57 million during the previous year, showing a rise of Rs. 5.76 million. Directors: In accordance with the requirement of the Companies Act, 1956 and Articles of Association of the Company, Mr. Vinay Panchmiya and Mr. Prem Das Gandhi are liable to retire by rotation and being eligible offer themselves for re-appointment. Mr. Rajendra Prasad Agarwal has been appointed as an Independent Director on May 26, 2012. Notice along with the Deposit of Rs. 500/- (Rs. Five Hundred Only) as required under section 257 of the Companies Act, 1956 has been received by the Company from Mr. Rajendra Prasad Agarwal signifying his candidature for the office of the director of the Company liable to retire by rotation. Brief resume of the directors re-appointed, nature of their expertise in specific functional areas, names of companies in which they hold directorships and memberships/chairmanships of board committees, shareholding and relationships between directors inter-se, as stipulated under clause 49 of the listing agreement with the stock exchanges, are annexed elsewhere in this report. Auditors and Auditors' report: M/s R. JAIN & SANJAY ASSOCIATES, Auditors of the Company, are retiring at the conclusion of the ensuing Annual General Meeting of the Company and are eligible for reappointment and have confirmed that their reappointment if made, shall be within the limits of the section 224 (1B) of the Companies Act, 1956. The board recommends the reappointment of M/s R. JAIN & SANJAY ASSOCIATES as Auditors of the Company. The observations of the Auditors in their report are self-explanatory and do not call for any further comments from the directors. Management Discussion and Analysis Report A report on Management Discussion and Analysis as required under clause 49 of the listing agreement is annexed elsewhere. Corporate Governance: A separate section on Corporate Governance forming part of the Directors' Report and the certificate from the auditors of the Company confirming the compliance of Clause 49 of listing agreement is included in the annual report. Deposits: During the year the Company has not accepted or invited any deposit from public within the meaning of section 58A of the Companies Act, 1956 and the rules made there under. Particulars of Employees: In terms of the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended, the names and other particulars of the employees are set out in the annexure to the Director's Report. However, having regard to the provisions of section 219(1)(b) (iv) of the said Act, the Annual Report excluding the aforesaid information is being sent to all the members of the Company and others entitled thereto. Any members interested in obtaining such particulars may write to the Company Secretary at the registered office of the Company. Listing: The equity shares of the Company are listed with Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The Company has been complying with all the clauses of the listing agreement and the Company has paid the requisite listing fees to both the stock exchanges. Disclosure u/s 217(1)(e): Information as per section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosure of Particulars in the Report of Directors) Rule, 1988, details are given below: Conservation of energy: The Company has always been conscious about the need for conservation of energy. Electricity and Fuel consumption per unit of production were monitored regularly at all the manufacturing plants and corrective actions have been taken wherever needed. During the period the Company has made additions in the machinery to the extent of Rs. 3.59 Crore. Technology absorption: In filter segment, the Company has obtained technical assistance from Toyo- Roki Manufacturing Company Ltd., Japan. Foreign Exchange Earning and Outgo: This information is given in notes to accounts at point No.7 and 8. Directors' Responsibility Statement u/s 217(2AA): Pursuant to Section 217(2AA) of the Companies Act, 1956, the directors based on the representation received from the operative management, confirm that: i) In the preparation of the annual accounts, all the applicable accounting standards have been followed and there are no material departures (Subject to point no. 4 (d) of the auditors report); ii) They have, in the selection of the accounting policies, consulted the statutory auditors and have applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period; iii) They have taken proper and sufficient care, to the best of their knowledge and ability, for the maintenance of 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; and iv) They have prepared the annual accounts on a going concern basis. Industrial Relation: Your Company has taken significant steps in developing human resource and strengthening human resource systems. During the year under review, industrial relation in the Company continues to be cordial and peaceful. Acknowledgment: The board wishes to thank the Company's esteemed customers, associates, suppliers, its shareholders, investors and financial institutions for their continued support and co-operation. For & On behalf of the Board of Directors Place: New Delhi U. K. Jain Nitin Jain Date : 10/08/2012 Chairman Managing Director MANAGEMENT DISCUSSION AND ANALYSIS The Management of Lumax Automotive Systems Limited is pleased to present its analysis report covering its performance and outlook. The report contains expectations of the Company's businesses based on current environment. Many unforeseen and uncontrollable external factors could alter these expectations. Industry Overview: According to the auto industry experts, the Financial Year 2011-12 was a landmark year both in positive and negative manner. In the positive manner it registered growth in sales in various segment of the auto industry while on the other hand due to hike in the interest rates and other factors, demand of cars fell for the first time in three years last July. As experts say, with the indicators from the RBI that interest rates may come down and the overall GDP expected to be around 7.5% to 8%, the prospects of the auto industry is good for ongoing fiscal. According to society of Indian Automobile Manufacturers (SIAM), overall domestic sales grown by 12.24%, while passenger vehicles segment grew by 4.66%, Commercial vehicle segment registered a growth of 18.20% while light commercial vehicles and heavy commercial vehicles saw a growth of 27.36% & 7.94% respectively. According to the varius factors affected in 2011-12, it is expected that the growth in 2012-13 would be around 12% to 13%.The focus of the company during the year was on modernization of its units and increasing the production capacity and diversify the new customers base. Opportunities & Threats a) Opportunities: India is a hot spot for automobiles and auto-components. As the auto sector in India is set to continue its growth trajectory for next 5 years and India is an increasingly favourite destination for global majors looking at emerging market. India is looked upon an automotive hub, led by small cars & auto components domain. During the year the Industry has registered a growth in the export of 25.44% and Free Trade Agreement with various countries allowed the Indian Companies to directly export in the European Countries, ASEAN, BRIC & USA for OEMs as well as aftermarket. While on the other hand Industry has undergone numerous developments and investments recently that have substantially impacted the market dynamics and various supportive policies of the government shows the opportunities to the Indian Auto Companies to growth in their respective segments. b) Threats/Challenges: As there are some supportive policies of the government for the auto industries but the budget raised factory gate duty on cars from April 1, pushing up prices. Consistent fuel hikes, rising auto interest rates, industry's lackluster performance are the key factors which have to be faced by the company. Future Outlook: The emerging scenario in India's small car industry holds promise and excitement. But the unfavourable policies of the government in terms of hiking the excise duty on the diesel cars, rising petrol prices and the RBI decision not to cut key policy rates have disappointed the auto companies in India. Government needs to take positive policy measures to make petrol cars more attractive, viable and acceptable to the consumers, rather than penalize diesel cars through even higher taxes and making them more expensive to the point of unviability. Risk & Concerns: The Auto Policy has spelt out the direction of growth for the auto sector in India and addresses most concerns of the automobile sector, including:- * Promotion of R&D in the automotive sector to ensure continuous technology up gradation, building better designing capacities to remain competitive. * Impetus to Alternative Fuel Vehicles through appropriate long term fiscal structure to facilitate their acceptance.