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EL Forge Ltd.

BSE: 531144 Sector: Engineering
NSE: ELFORGE ISIN Code: INE158F01017
BSE 00:00 | 04 Mar EL Forge Ltd
NSE 05:30 | 01 Jan EL Forge Ltd
OPEN 5.58
PREVIOUS CLOSE 5.58
VOLUME 4209
52-Week high 5.58
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 11
Buy Price 5.58
Buy Qty 36.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.58
CLOSE 5.58
VOLUME 4209
52-Week high 5.58
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 11
Buy Price 5.58
Buy Qty 36.00
Sell Price 0.00
Sell Qty 0.00

EL Forge Ltd. (ELFORGE) - Director Report

Company director report

The Directors present the 85th Annual Report along with the Audited FinancialStatements of the Company for the year ended 31st March 2021.

1. Summarised Financial Results are given below

Particulars For the Year Ended 31st March2021 For theYear Ended 31st March 2020

(Rs. in Lakhs)

Revenue from Operation Forgings 2729.66 3280.33
Land Income 1115.80 0.00
Other Income 18.47 5.37
Profit/(Loss) before Depreciation 17.66 (229.83)
Profit/(Loss) after Depreciation (593.84) (888.33)
Exceptional Income / Loss (-) 365.50 949.37
Net Profit/(Loss) after tax (228.33) 61.04

2. Company Performance

The performance for the year has declined due to the outbreak of COVID-19 pandemic. Thecompany followed the guidelines issued by the Government and adopted the norms . At theworkplace necessary precautions for all employees were taken. The first few months of theyear overall business slumped due to mandatory lockdowns which pulled down the productionand sales. When the lockdown was lifted the company continued its operations and focussedon delivery and cost optimisation to maintain the overall health of the company. Theturnover of forgings has fallen from Rs.3280 lakhs to Rs.2730 lakhs during the year underreport. The company sold vacant land and that is shown separately. All bank orInstitutional borrowings have been settled . The company has taken all measures to carryout the operations most effectively and handle the challenges posed by the pandemicsituation.

3. Dividend

The Directors have not recommended any dividend for the year under report due to lossincurred.

4. Borrowings

There are no borrowings from banks or financial institutions.

5. CORPORATE MATTERS

5.01 Human Resources

El Forge has always been a people driven Company and its employees remain its mostvaluable asset. Our employees have always extended full cooperation and support duringgood as well as difficult times and have unstintingly put their best effects to deliveron all our commitments.

The Human Resources practices at your Company empowers the employees through greaterknowledge opportunity responsibility accountability and reward. Emphasis is laid onidentifying & nurturing talent. Continuous improvement techniques are followed forbetterment of the skills in the organisation by implementing TQM & other trainingprograms and there exists an excellent system of assessment of the employees based on thesound HR practices. During the year under review there were 165 employees on the rolls ofthe company.

5.02 Key Managerial Personnel

Mr.K.V.Ramachandran Vice Chairman & Managing Director Mrs.R.Sowmithri ED(Finance) & Secretary and Mr.V.Srinivasan who was appointed the CFO of the Companywithin the meaning of Section 2(18) of the Companies Act 2013 hold the office of KeyMan-agerial Personnel. There were no resignations in Key Management Personnel during theyear.

6. Corporate Governance

With reference to Corporate Governance the Company has complied with all possiblerequirements of the guidelines as laid out in Clause 49 of the Listing Agreement. AnnexureA contains report on corporate governance enclosed herewith. At present the Company hassix directors of which two are Executive Directors and four are non executive.

7. Internal Control System and their adequacy

The Company has adequate system of internal control with reference to the financial aswell as non-financial operations. All the transactions are properly authorised recordedand reported by the Management. The Company is following all the applicable AccountingStandards for properly maintaining the books of accounts and reporting financialstatements. The Company ensures proper and adequate systems and procedures commensuratewith its size and nature of its business even though there is no internal auditor duringthe year under report.

8. Conservation of Energy Technology Absorption and Foreign Exchange Earnings andOutgo Information as per Section 134(3)(m) of the CompaniesAct 2013 read with theCompanies (Accounts) Rules 2014 relating to Conservation of Energy technology absorptionand foreign exchange earnings and outgo for the financial year 2020-21 are annexed asAnnexure B which forms part of this Report.

9. Management Discussion and Analysis

Management Discussion and Analysis report for the year under report as stipulated underClause 49 of the Listing Agreement in respect of the Stock Exchanges in India is enclosedherewith (please refer Annexure C).

10. Research & Development

R&D in El Forge is a continuous process. All efforts in product design and processdevelopment are directed at Customer's satisfaction competitiveness quality andresponsiveness. This includes focus on material wastage reduction by improvement intechnology and equipment with major emphasis at the Tool Room for value engineered diedesign and manufacture. Simultaneous efforts are made at the shop floor to improvemanufacturing efficiency to sustain the development efforts. Annexure B to this reportcontains the details thereof.

11. Industrial Relations

Employees at all levels have contributed to the performance of the Company. Yourdirectors place on record the co-operation of employees received during the year underreport. The Directors also place on record the unstinted cooperation extended by the staffmembers during the period under review.

12. Fixed Deposits

The Company has not accepted (or renewed) any fixed deposits during the year underreport. Majority of the deposit holders have been repaid during the year. As on 31stMarch 2021 the outstanding deposits amount to Rs.3.81 lakhs.

13. Applicability of Section 197(12) of Companies Act 2013 read with Rule 5 of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014

None of the employees come within the purview of Section 197(12) of the Companies Act2013 read with Rule 5 of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014. Accordingly no disclosure has been made in the above regard.

14. Directors Responsibility Statement

Pursuant to Section 134 (5) of the Companies Act 2013 the Board of Directors of theCompany hereby states and confirms that a) In the preparation of Annual Accounts theapplicable accounting standards had been followed. b) The Directors have selected suchaccounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs ofthe Company as at 31st March2021 and of the Profit or Loss of the Company for that year.c) The Directors had taken proper and sufficient care 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. d) The Directors had prepared the Annual accounts on a going concern basise) That proper internal financial controls were followed by the Company and that suchinternal financial controls was adequate and were operating effectively. f) That propersystems to ensure compliance with the provisions of all applicable laws were in place andthat such systems were adequate and operating effectively.

15. Remuneration Policy of the Company

The remuneration policy of the Company comprising the appointment and remuneration ofthe Directors Key Managerial Personnel and Senior Executives of the Company includingcriteria of determining qualifications positive attributes independence of a directorand other related matters have been provided in the Corporate Governance report which isattached herewith. 16. Extract of the Annual Return: Extract of the Annual Returnin the present form is enclosed herewith in Annexure F.

17. Secretarial Audit

Pursuant to provisions of Section 204 of the Companies Act 2013 read with Rule 9 ofthe Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 theCompany engaged the Services of Mrs.B.Venkatalakshmi Company Secretary in Practice toconduct the Secre-tarial Audit of the Company for the financial year ended 31st March2021. The Secretarial Audit report (in Form MR-3) is attached as Annexure to this Report.Please refer An-nexure G in this report.

18. Related Party Transactions

All transaction entered by the Company with Related Parties were in the ordinary courseof business and at Arm's Length pricing basis. The Audit Committee granted omnibusapproval for the transaction (which are repetitive in nature) and the same was reviewed bythe Audit Committee and the Board of Directors. There were no materially significanttransactions with Related Parties during the financial year 2020-21 which were in conflictwith the interest of the Company Suitable disclosures as required under AS 18 have beenmade in Item No.16 of Note No.3.02 of financial statements. Accordingly there are notransactions that are required to be reported in Form AOC-2 and accordingly AOC-2 has notbeen attached.

19. Corporate Social Responsibility

Our company does not fall under the criteria laid for Corporate Social Responsibilityunder section 135 of the Companies Act2013 and hence the section is not applicable to theCompany for the year under report.

20. Particulars of Loans Guarantees or Investments

Your Company has not made any loan or given any Guarantees or made any investmentduring the year under Section 186 of the Companies Act 2013

21. Vigil Mechanism / Whistle Blower Policy

Pursuant to Section 177(9) of the Companies Act 2013 read with Rule 7 of the Companies(Meetings of Board and its powers) Rule 2014 and Clause 49 of the Listing Agreement theBoard of Directors had approved the policy on Vigil Mechanism/Whistle Blower and the sameis hosted on the Website of the Company. The policy inter-alia provides a direct access tothe Chairman of the Audit Committee.

Your Company hereby affirms that no Director/employee has been denied access to theChairman of the Audit Committee and that no complaints were received during the year.

22. Director

During the year the independent Director Mr.Aaron Raakeesh has resigned with effectfrom 11/02/2021. The board records its thanks to him for the contribution made during histenure. In the board meeting on 30th July2021 the company appointed Mrs.ShubhaGanesh as a director. Resolution for her appointment by the shareholders forms part of theagenda of the notice of the 85th AGM.

23. Statutory Auditors

The Statutory Auditors M/s L.Mukundan & Associates Chartered Accountants (FirmRegistration No.010283S) have been appointed last year to continue for a term of threeyears from the conclusion of this AGM. Their appointment resolution forms part of theagenda of the notice of the 85th AGM.

24 .Explanation to Auditor's remark

The Directors have responded to the qualifications of the Statutory Auditors in theaddendum to the Directors Report.. The Statutory Auditors have drawn attention to somepoints under " Emphasis of Matters " which are dealt with in the notes onaccounts.

25. Material changes

There has been no material changes affecting the financial position of the companybetween 31st March2020 till the date of the report.

26.Prohibition and redressal of sexual harrasment of women at work place

Pursuant to the new legislation " Prevention Prohibition of and Redressal ofSexual harassment of Women at Work place Act2013" the company has framed a policy onprevention of sexual harassment at work place. There were no cases reported during theyear under review under the policy.

27.The Annual Report for 2020-21 has been posted in the website of the company it canbe accessed by clicking the following link.

https://www.elforge.com/docs/Annual%20reports%202020-21.pdf

27.Acknowledgements

The Company places on record the co-operation of Bankers Bank of Baroda Indus IndBank We also thank all our Customers Suppliers Employees and others connected with thebusiness for their cooperation. We sincerely thank the shareholders for their support.

For and on behalf of the Board of Directors
Place : Chennai V.SRIKANTH
Date: 30/07/2021 CHAIRMAN
(DIN 00076856)

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