Your Directors have the pleasure in presenting their 11th Annual Report onthe business and operations of the Company together with the Audited Statement of Accountsfor the financial year ended March 31 2016.
During the year under review performance of your Company is as under:
| || ||(Rs. In Lacs) |
|Particulars ||Year ended March 31 2016 ||Year ended March 312015 |
|Gross Sales & Other Income ||44785.80 ||47005.58 |
|Profit before Depreciation and Interest ||7079.68 ||8329.40 |
|Depreciation ||2784.75 ||2745.27 |
|Interest ||2146.90 ||1997.13 |
|Profit before Taxation ||2148.03 ||3587.00 |
|Provision for Taxation (Deferred & Current) ||224.17 ||773.43 |
|Profit after Taxation ||1923.86 ||2813.57 |
|Profit available for appropriations ||1923.86 ||2813.57 |
|Appropriations || || |
|Amount transferred to General Reserve ||300.00 ||300.00 |
|Proposed Dividend on Equity Shares ||400.00 ||450.00 |
|Tax on Dividend ||81.43 ||122.14 |
|Profit after Appropriations ||1142.43 ||1791.42 |
State of Company's Affairs and Future Outlook
During the year under review your Company has taken measures to enhance operationalefficiencies by focusing on improving yields reducing rejections and enhancing capacityutilisation.
The total sales of the Company have declined by 4.72% from Rs. 47005.58 lacs in2014-15 to Rs. 44785.80 lacs in 2015-16. Operating profit (PBDIT) of the company hasdeclined by 15% from Rs. 8329.40 lacs in 2014-15 to Rs. 7079.68 lacs in 2015-16.
The Company is at the tail-end of the major expansion of setting up two major state ofthe art manufacturing facilities. Out of these two Bengaluru plant has commencedoperations in April 2016 while Rohtak plant is expected to go on stream in the lastquarter of FY 16-17. The effect of these major capex will impact the profitability in FY16-17. However going forward these capex in new plants will widen Company's productportfolio enhance further its capability as a niche auto components producer and startcontributing substantially to the operation from FY17-18 and beyond.
The Directors are pleased to inform that the production from the Bengaluru plant hasalready started in order to meet the ever-increasing demand of the Customers and tosubstitute the import of indigenised products. The Bengaluru plant of the Company isworking towards the PM's Make in India deliberation as the production from this plant willhelp in import substitution of indigenised products. The Company is planning to make theRohtak plant operational in H2 of FY 16-17.
Hero MotoCorp Limited (HMCL) is the major customer of the Company and continues tomaintain its growth at a constant rate. Other customers of the Company like BOSCH DENSOetc. have increased their sales/business share marginally as compared to last year. Tocater to the requirements of the customers the company is utilising its availableresources to achieve a satisfactory growth rate. With the increase in growth rate ofCustomers the Company is expecting to maintain a healthy growth in its scale ofoperations and widen its geographical reach. It is also expected to add new customers.There is pressure on the EBITDA margin due to competitive pricing and increase inemployees cost.
The customer share for the year ended March 31 2016 is as follows:
Awards & Accolades
The Company is proud recipient of the following Awards in the year 2015-16 as shown inAwards & Accolades Section:
1. Award for Supplier of the year by Mando Automotive India Pvt Limited.
2. Certificate of Supplier Quality awarded for fulfilling Quality Assurance Complianceby Hyundai Motor India Limited.
3. Certificate of Appreciation for superior performance in the field of Development byMaruti Suzuki India Limited.
4. Award for Outstanding performance in Quality by Denso India Limited.
5. Certificate of Appreciation for Outstanding Performance in the category of Qualityby Denso India Limited.
6. Award for excellence in running SAP operations.
Management Discussion and Analysis report
A detailed discussion on the business performance and future outlook forms part ofManagement Discussion and Analysis Report which is separately attached as Annexure A tothis Board's Report.
Transfer to General Reserve
The Board proposes to transfer an amount of Rs.300 lacs to General Reserve. The balanceamount of Rs. 11846.25 lacs (Previous year Rs. 11703.83 lacs) will be retained assurplus in the statement of Profit and Loss Account.
Your directors are pleased to recommend a final dividend of 20% i.e. Rs. 0.40 perequity share of the face value of Rs. 2/- each for the year ended March 31 2016 which isprovided for in the accounts absorbing a sum of Rs. 4 crore if approved by the members inthe ensuing Annual
General Meeting. Dividend will be tax free in the hands of shareholders as the Companywill bear the dividend distribution tax of Rs. 81.43 lacs (Previous year Rs. 122.14 lacs).The dividend paid during the previous year was 60% (Rs. 1.20 per share).
The Register of Members and Share Transfer Books will remain closed from ThursdaySeptember 22 2016 to Thursday September 29 2016 (both days inclusive).
(a) Issue of Bonus Shares: In the Board Meeting held on May 18 2015 the Board hasrecommended Bonus Issue of Shares to the existing Equity Shares holders of the Company inthe proportion of 1(One) Equity Share for every 1 (One) Equity Share held by them whichwas approved by the shareholders in the Annual General Meeting held on September 09 2015.
(b) The paid up Equity Share Capital as on March 312016 was Rs. 20 Crore. During theyear under review the Company has not issued shares with differential voting rights norgranted stock options nor sweat equity. And also the Company has not accepted or repaidany Debentures Preference Share Capital and any Bond & Security during the financialyear and none of the Directors of the Company hold any shares or security of the Company.The Company does not have any Debentures Preferential Shares as on March 312016.
(c) Your company has not made any provisions of money for purchase of its own shares byemployees or by trustees for the benefit of employees during the year under review.
Extract of Annual Return
The extract of Annual Return in format MGT-9 for the Financial Year 2015-16 isenclosed as Annexure - C to this report.
Meeting of Board of Directors
A calendar of Meetings is prepared and circulated in advance to the Directors. Duringthe Financial Year 2015-16 6 (Six) meetings of the Board of Directors of the company wereheld on 18-May-2015 04-Aug-2015 9-Sep-2015 16-Oct- 2015 02-Nov-2015 and 12-Feb-2016.The intervening gap between the Meetings was within the period prescribed under theCompanies Act 2013 and Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015 (hereinafter referred to as "SEBI LODR2015"). For details of the meetings of the board please refer to the CorporateGovernance report which forms part of this report.
Particulars of Loan Guarantees and Investments under Section 186 of the Companies Act2013
The particulars of loans guarantees and investments have been disclosed in thefinancial statements.
Particulars of Contracts or Arrangements with Related Parties
All contracts /arrangements/transactions entered by the Company during the financialyear with the related parties were in the ordinary course of business and on arm's lengthbasis and do not attract the provisions of Section 188 of the Companies Act 2013. Duringthe year the Company had not entered into any contracts /arrangements/transactions withrelated parties which could be considered material in accordance with the policy of theCompany on materiality of related party transactions. Suitable disclosure as required bythe Accounting Standards (AS18) has been made in the notes to the Financial Statements.
M/s. S. S. Kothari Mehta & Co. Chartered Accountants existing Statutory Auditors'will retire at the conclusion of the ensuing Annual General Meeting and seek reappointmentas Statutory Auditors of the Company at the ensuing Annual General Meeting.
The Company has received letters from them to the effect that their re-appointment ifmade would be within the prescribed limits under Section 141(3)(g) of the Companies Act2013 and that they are not disqualified for re-appointment.
The Board of Directors recommends to the shareholders the re-appointment of M/s. S.S.Kothari Mehta & Co. as Statutory Auditors of the Company for the financial year2016-17.
Explanation to Auditors' Remarks
The comments on statement of accounts referred to in the report of the auditors areself explanatory.
Material Changes Affecting the Financial Position of the Company
There are no material changes and commitments affecting the financial position of thecompany which have occurred between the end of the financial year of the company to whichthe financial statements relate and on the date of this report.
Your Company was able to raise the short-term/long term funds needed for its workingcapital related requirements & term loans for new capital expenditure at reasonablerates. By efficient management of working capital the Company has been able to reducesome interest cost. The Company continues to focus on judicious management of its workingcapital. During the year under review the financial position of the Company wassatisfactory.
Significant or Material Orders passed by the Regulators
No significant or material orders were passed by the Regulators or Courts or Tribunalswhich impact the going concern status and Company's operations in future.
Changes in the Nature of Business
There is no change in the nature of the business of the Company during the FinancialYear 2015-16.
Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo
The Company continues to use the latest technologies for improving the productivity andquality of its products and components. The details of Energy Technology AbsorptionForeign Exchange Earnings and Outgo are attached as Annexure - D to this Report.
The promoters of the Company i.e. Dayanand Munjal Investments Private Limited (DMIPL)hold 74795950 equity shares of Rs. 2/- each which represents 74.80% of the paid upequity capital of the Company.
Your company continues to be a subsidiary company of DMIPL.
Subsidiary Companies Joint Ventures Or Associate Companies
The Company neither has any Subsidiaries joint ventures or associate companies nor anycompany have become or ceased to be its Subsidiaries joint ventures or associatecompanies during the year.
Details of Directors and Key Managerial Personnel
Mrs. Charu Munjal and Dr. Anil Kumar Gupta Whole Time Directors of the Company retireby rotation at the ensuing Annual General Meeting and being eligible offer themselves forre-appointment. Brief profile of the Director as required by the SEBI LODR 2015 isgiven in the Notice/Corporate Governance Report forming part of this Annual Report.
The appointment/re-appointments form part of the Notice of the Eleventh Annual GeneralMeeting and the relevant Resolutions are recommended for your approval.
Declaration by Independent Director
The Company has received necessary declaration from each Independent Director underSection 149 (7) of the Companies Act 2013 that he/she meets the criteria of Independencelaid down in Section 149(6) of Companies Act 2013 and SEBI LODR 2015.
Statement in Respect of Adequacy of Internal Financial Control with Reference to theFinancial Statements
Your company has adequate internal control for its business processes acrossdepartments to ensure efficient operations compliance with internal policies applicablelaws and regulations. The internal controls are complemented on an on-going basis by anextensive program of internal audits being implemented throughout the year. The internalcontrols are designed to ensure
that the financial and other records of the company are reliable for preparingfinancial statement and other data for maintaining the accountability of assets inconformity with established accounting principles and that the assets of the company areadequately safe-guarded against any significant misuse or loss.
The Company also has an internal audit system which is conducted by an independent firmof Chartered Accountants. A summary of Internal audit report and observations thereon arereviewed by the Audit Committee on regular basis and have been found to be adequate.
During the year the Company has not accepted any fixed deposit.
Receipt of any commission by MD/WTD from a Company
Details of commission received by Mrs. Charu Munjal Whole Time Director is as follows:
| ||(Rs. in Lacs) |
| ||Mrs. Charu Munjal Whole Time Director |
|Commission ||7.00 |
The details of Commission paid to Independent Directors forms the part of the CorporateGovernance.
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 Satyender Kumar & Associates a proprietorship firm of CompanySecretaries to undertake the Secretarial Audit of the Company. Secretarial Audit Report inprescribed format MR-3 is annexed as Annexure - E to this Board's Report.
Explanation to Secretarial Audit Report
The explanations to the observations/remarks/qualifications of the report of theSecretarial Auditor are as follows:
1. The process for Issuance of Duplicate Shares has been regularised by the Companyduring the FY 2016-17.
2. The Company was under an impression that the implementation has the meaning ofinitiation of process and not the completion.
3. The Company shall initiate the process for transfer of unclaimed shares to UnclaimedSuspense Account as per requirements of Regulation 39(4) read with Schedule VI of SEBILODR 2015 during the FY 2016-17.
4. The observation is self-explanatory.
Corporate Social Responsibility (CSR) Policy
The Corporate Social Responsibility Committee comprise of the following members:
|Mr. Bhagwan Dass Narang - ||Chairman |
|Dr. Anil Kumar Gupta - ||Member |
|Mrs. Charu Munjal - ||Member |
The details about the policy indicating the activities to be undertaken by the Companyactivities implemented by the company and the amount spent on CSR activities as per theprovisions of Companies (Corporate Social Responsibility Policy) Rules 2014 is annexedas Annexure - F to this report.
The Audit Committee comprises mainly of Independent Directors and the composition is asunder:
|Mr. Surrinder Lal Kapur - ||Chairman |
|Mr. Bhagwan Dass Narang - ||Member |
|Dr. Vinayshil Gautam - ||Member |
|Mr. Sunil Kant Munjal - ||Member |
|Dr. Anil Kumar Gupta - ||Member |
The terms of reference of the Audit Committee are wide enough to cover the mattersspecified for the Audit Committee under SEBI LODR 2015 as well as Section 177 of theCompanies Act 2013; the detailed terms of reference are as mentioned in the Annexure -B of the Board's Report. During the year the Board has accepted all recommendation ofAudit Committee and accordingly no disclosure is required to be made in respect ofnonacceptance of the recommendation of the Audit Committee by the Board.
Nomination and Remuneration Committee
Nomination and Remuneration Committee (NRC) has been constituted according to Section178(5) of the Companies Act 2013 and the composition is as under:
|Dr. Vinayshil Gautam - ||Chairman |
|Mr. Bhagwan Dass Narang - ||Member |
|Mr. Surrinder Lal Kapur - ||Member |
|Mr. Sunil Kant Munjal - ||Member |
The detailed terms of reference are as mentioned in the Annexure B of theBoard's Report.
Risk Management Policy
In order to mitigate the risks the Company has adopted the implementation of the riskmanagement policy focusing on the elements of risks which in the opinion of the Board maythreaten the existence of the company.
The Company has a risk management committee the constitution and the terms ofreference of the same are mentioned in the Annexure B of the Board's Report.
The Board of Directors has carried out an annual evaluation of its own performanceBoard's committees and individual directors pursuant to the provisions of the Act and thecorporate governance requirements as prescribed under SEBI LODR 2015.
The performance of the Board was evaluated by the Board after seeking inputs from allthe directors on the basis of the criteria such as the Board composition and structureeffectiveness of board processes information and functioning etc.
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 RemunerationCommittee ("NRC") reviewed the performance of the individual directors on thebasis of the criteria such as the contribution of the individual director to the Board andcommittee meetings like preparedness on the issues to be discussed meaningful andconstructive contribution and inputs in meetings etc. In addition the Chairman was alsoevaluated on the key aspects of his role.
Separate Meeting of Independent Directors
In terms of requirements under Schedule IV of the Companies Act 2013 and SEBI LODR2015 a separate meeting of Independent Directors was held on March 31 2016. In aseparate meeting of independent Directors performance of non-independent directorsperformance of the board as a whole and performance of the Chairman was evaluated takinginto account the views of executive directors and non-executive directors. The same wasdiscussed in the board meeting that followed the meeting of the independent Directors atwhich the performance of the Board its committees and individual directors was alsodiscussed.
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 Companies Act 2013 has been disclosed in the corporategovernance report which forms part of the Board's report.
Disclosure on Establishment of a Vigil Mechanism
The Company has adopted a policy on vigil mechanism for directors and employees toreport their genuine concerns or grievance to be the Vigilance and Ethics Officer. Thepolicy is available on the company's website www. shivamautotech.com.
The shares of your Company are listed at The National Stock Exchange of India Limitedand The BSE Limited and pursuant to the SEBI LODR 2015 the Annual Listing fees for theyear 2015-16 have been paid to them well before the due date i.e. April 30 2015. TheCompany has also paid the annual custodian fees for the year 201516 in respect of Sharesheld in dematerialized mode to National Securities Depository Limited (NSDL) & CentralDepository Services Limited (CDSL).
The Company has executed new Listing Agreement(s) with The National Stock Exchange ofIndia Limited and The BSE Limited on February 12 2016. The Company has complied with therequirements of Corporate Governance as stipulated under Clause 49 of the erstwhileListing Agreements and those specified under the SEBI LODR 2015 as applicable.
Your Company is committed to follow the highest standards and principles of CorporateGovernance with all integrity and fairness. The Company always places major thrust onmanaging its affairs with diligence transparency responsibility and accountabilitythereby upholding the important dictum that an organisation's corporate governancephilosophy is directly linked to high performance.
A certificate from M/s Satyender Kumar & Associates Company Secretaries regardingthe compliance of the conditions of Corporate Governance by the Company stipulated underSEBI LODR 2015 is also attached to this Report.
Separate detailed chapters on Corporate Governance Additional Shareholder informationand Management Discussion and Analysis are attached herewith and form part of this ReportDeclaration by CEO/CFO that the Board Members and Senior Management Personnel havecomplied with the Code of Conduct for the Financial Year 2015-16 is attached to thisreport.
The information required under Section 197 of the Companies Act 2013 read with Rule 5of Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 isattached as Annexure - G to this Report.
Disclosures under Sexual Harassment of Women at Workplace (Prevention Prohibition& Redressal) Act 2013
Your Company is committed to provide work environment that ensures every employee istreated with dignity and respect and afforded equitable treatment. The Company has adoptedthe policy for prevention of sexual harassment at workplace. An appropriate complaintmechanism in the form of "Complaints Committee" has been created in the Companyfor time-bound redressal of the complaint made by the victim.
Directors' Responsibility Statement
Pursuant to the provisions of Section 134 (5) of the Companies Act 2013 as amendedwith respect to the directors' responsibility statement it is hereby confirmed:
(i) That in preparation of accounts for the financial year ended March 312016 theapplicable accounting standards have been followed along with proper explanation relatingto the material departures;
(ii) That the directors' of the company have selected such accounting policies andapplied them consistently and made judgements and estimates that are reasonable andprudent so as to give a true and fair view of the state of affairs of the Company as atMarch 31 2016 and of the profits of the Company for the financial year ended March312016;
(iii) That the directors' of the company have taken proper and sufficient care for themaintenance of adequate accounting records in accordance with the provisions of theCompanies Act 2013 for safeguarding the assets of the Company and for preventing anddetecting fraud and other irregularities; and
(iv) That the directors' of the company have prepared the annual accounts on a goingconcern basis.
(v) That the directors in the case of a listed company had laid down internalfinancial controls to be followed by the company and that such internal financial controlsare adequate and were operating effectively.
(vi) That the directors had devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.
Environment Health & Safety
The Company is very keen on its responsibilities with respect to the clean environment.Company's Health and Safety Policy commits to provide a healthy and safe work environmentto all employees.
The Company regularly conducts counselling and safety review meetings for the employeesto appraise and educate them on the adoption of safety measures and avoidance of unsafepractices. Safe operating procedures standards and systems have been laid down at allmanufacturing locations. Prompt medical assistances is provided to its employees. TheCompany has an internal plant dispensary which operates round the clock and is managed bythe qualified doctors supported by staff who are available for addressing health issues ofemployees.
Human Resource Development
The Company continues its focus on retention through employee engagement initiativesand provides a holistic environment where employees get opportunities to realize theirpotential. The Company believes that its human capital is the most valuable asset thathelps it remain competitive. The Company's policy not only meets all applicable statutoryrequirements but also focuses on motivation learning and training of employees. Humanresources being one of the most important factors of production the Company is initiatingmeasures towards competence and overall development of people at all levels to be futureready. The Company arranges training sessions for its employees to empower and upgradethem to achieve business motives and help them build their career.
The Company encourages long-term commitment by rewarding its people for theopportunities they create through KAIZEN activities and the value generated for customersand shareholders. The Company's progressive workforce policies and benefits variousemployee engagement and welfare initiatives program have addressed stress managementpromoted work life balance and helped the Company maintain a low attrition rate. TheDirectors are pleased to record their appreciation for the services rendered by theemployees and staff at all levels.
The SEBI LODR 2015 mandated the formulation of certain policies for all listedcompanies. All our corporate governance policies are available on our websitewww.shivamautotech.com .
Following are the policies adopted by the company with their web links:
|Policy ||Web link |
|Code of Conduct ||http://www.shivamautotech.com/Uploads/ image/34imguf_SHIVAMCodeofConductforBM.pdf |
|Prohibition of Insider Trading ||http://www.shivamautotech.com/Uploads/ image/38imguf_insidertradingshivam.pdf |
|Payment to Non- Executive Directors ||http://www.shivamautotech.com/Uploads/ image/33imguf_PaymenttoNED.pdf |
|Board Diversity Policy ||http://www.shivamautotech.com/pdf/Board_Diversity_ Policy.pdf |
|Records and Archives Policy ||http://www.shivamautotech.com/pdf/records_and_ archives_policy.pdf |
|Related Party Transaction Policy ||http://www.shivamautotech.com/pdf/RPT_policy.pdf |
|Anti-Harassment Policy ||http://www.shivamautotech.com/pdf/Anti_harassment_ Policy.pdf |
|Corporate Social Responsibility Policy ||http://www.shivamautotech.com/pdf/CSR_POLICYpdf |
|Risk Management Policy ||http://www.shivamautotech.com/pdf/Risk_Management_ Policy.pdf |
|Whistle Blower Policy ||http://www.shivamautotech.com/pdf/Whistle_Blower_ Policy.pdf |
The Directors express their appreciation for the sincere co-operation and assistance ofCentral and State Government Authorities Bankers Customers Suppliers and BusinessAssociates. Your Directors also wish to place on record their deep sense of appreciationfor the committed services by your Company's employees. Your Directors acknowledge withgratitude the encouragement and support extended by our valued shareholders.
| ||For and on behalf of the Board ||For and on behalf of the Board |
| ||Sd/- ||Sd/- |
| ||Neeraj Munjal ||Dr. Anil Kumar Gupta |
| ||Managing Director ||Whole Time Director |
| ||DIN:00037792 ||DIN:02643623 |
|Place: Bengaluru || || |
|Date: August 13 2016 || || |
Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo
Information regarding Conservation of Energy Technology Absorption and ForeignExchange Earnings and Outgo Pursuant to section 134(3)(m) of the Companies Act 2013 readwith Companies (Accounts) Rules 2014 and forming part of Board's Report
A) Conservation of Energy:
The Company sets its own targets for energy conservation reviews performance and takesappropriate actions wherever required at various levels in all its areas of operations.The Company is making continuous efforts to conserve and optimise energy whereverpracticable by economising on fuel and power. Various avenues are being explored atperiodic interval and after careful analysis and planning measures are being initiated tominimize the consumption of energy by optimum utilization of energy consuming equipment.During the year under review following measures were initiated/adopted for conservationand optimum utilization of energy:
(a) Green Infrastructure
(b) Energy efficiency glazing
(c) Use of Fly Ash Brick
(d) Gravients for natural Air Circulation.
(e) High Performance VRV Air Conditioning
(f) Reduced Lighting Power Densities in Spaces
(g) Optimized Air cooling and air conditioned systems for the plant areas
(h) New plants are designed to use natural day light to reduce the electricityconsumption for illumination during the day time
(i) Water conservation measures to minimize water intake
(j) Usage of recycle waste
(k) Onsite waste water treatment and its usage.
The company is following up the concept of Green Factory Building for its BengaluruPlant. Various initiatives have been undertaken by the Company to use waste water torecycle waste of steel scrap wood scrap and others.
The measures have been taken to re-cycle water from effluent treatment plant for gardenand reduce solid waste & adopt eco-friendly waste disposal system. We are conscious ofour environmental impact across our operations and strive to reduce consumptions. Newideas are being adopted across the shop floor factory area and even in office premises toconserve and promote efficiency of operations. Energy Audit is being conducted by theCompany on various intervals.
B) Technology Absorption adaption and innovation:
The Company is involved in supporting the MAKE IN INDIA initiative of Prime Minister byindigenizing various components as an import substitute in order to fulfill the continuousdemand of the customers for price reduction. The Company continues to use the latesttechnologies for improving the productivity and quality of its services and products.Development and improvement of products has been an inbuilt and ongoing activity withinthe existing manufacturing facilities. These activities also enabled the Company to reduceprocess waste lower the energy consumption and increase productivity.
Development and improvement of products has been an inbuilt and ongoing activity withinthe existing manufacturing facilities. R&D activities of the Company helped indevelopment of novel materials & technologies resulting into enhanced product qualityand to improve process capabilities.
Research & Development were carried in product development process developmentenergy conservation environment protection cost reduction and automation. In thisprocess design and material database are continuously improved and enhanced. Apart fromprocess improvements the research and development also aims at finding equivalentsubstitutes of various inputs and materials to have cost savings without compromisingquality.
The research and development is an ongoing exercise and suitable efforts will continueto be made in future. The expenditure incurred on research development and improvement ofproducts is an indirect cost which is reflected in the financials of the company.
|c) Foreign Exchange Earnings/ Outgo: ||(Rs. In Lacs) |
|Earnings ||213.55 |
|Outgo ||4254.90 |