Your Companys Directors are pleased to present the Annual Report of the companyalongwith the audited Financail Statement for the year ended 31st March 2019.
1. FINANCIAL PERFORMANCE:
The summary of operating results for the year is given below:
|Particulars ||For the year ended 31st March 2019 (Rs In Lakhs) ||For the year ended 31st March 2018 (Rs In Lakhs) |
|Sales ||66527239 ||56116853 |
|Other Income ||3957680 ||2574600 |
|Total Revenue ||70484919 ||58691453 |
|Profit before tax and depreciation ||19975742 ||10359526 |
|Profit before tax ||17240401 ||6630543 |
|Tax Expense ||5145557 ||1926810 |
|Profit after tax ||12094844 ||4703733 |
|Equity share Capital ||10000000 ||5000000 |
|Book Value per share of Rs 10 each ||81.90 ||139.60 |
|Earnings per share ||12.09 ||9.40 |
Revenue from operations of your company increased by about 120% over the previous yearto Rs 704 lakhs from Rs 587 Lakh.
Profit after tax increased by 160% to Rs 121 Lakhs over the previous year at Rs 47lakhs .Your company does not have any subsidiary or associate or joint venture company.
The Board of Directors of the company recommends a dividend of Rs 2 .20 per share (22%)for the financial year ended 31st March 2019. The dividend subject to approvalof members will be paid within statutory period to those members whose names appear inthe register of members as on the date of book closure.
4. TRANSFER TO RESERVES:
No amount has been transferred to reserves during the year under review.
5. INCREASE IN SHARE CAPITAL
During the year your company increased its share capital to Rs 100 lakhs from Rs 50lakhs by capitalizing an amount of RS 50 Lakh from Reserves and Surplus.
6. MATERIAL CHANGES AND COMMITMENTS:
The Company had received the Listing approval on May 13 2019 by BSE Limited for1372000 Equity Shares allotted pursuant to Initial Public Offering.
7. CHANGE IN NATURE OF BUSINESS IF ANY
There are no changes in the nature of business of the Company during the year underconsideration.
8.INITIAL PUBLIC OFFERINGS
Your company issued 372000 shares to the public on 30th April 2019 at therate of Rs 52 per share aggregating Rs 1.94 crore and the issue was oversubscribed to theextent of 1.59 times.
With the rapid rise in economic growth and living standards more & more people areusing Generators Motor and Pump sets in Residential Commercial Industries Hospitalsetc.whic thus becomes a necessity in daily life. these devices are more needed where thereis frequent power failure & long duration load shedding with the continued usagethese devices became defective and inefficient due to wear & tear in the mechanicalparts and deteriotion in electrical insulation & Lub. oil etc.
In order to have a smooth optimum and efficient operation these devices need timelyrepair & preventivemaintenance services. Therefore units catering to Repair Serviceand maintenance of these devices have bright prospects.
Your company has a factory unit admeasuring to 30000 sq. ft. located in PalgharMaharashtra which is used for providing re-winding and repairing services as well as formanufacturing replacement components. Your company also provides on-site services forlarge Electric Motors Generators and Transformers that are too large and cannot betransported to our Factory.
Your company started our business with repairing and rewinding of low voltage AC and DCelectric motors and generators and then later in 1958 diversified into repairing andrewinding of high voltage power & distribution transformers and then in 1960 startedwith manufacturing of allied products such as commutators for DCmachines specializedcontacts for Switchgear and strip Heaters. With time capabilities grew and the company hasbeen successful in executing orders received from foreign countries such as BangladeshMalaysia & Sri Lankawhich includes contract based services.
10 .HUMAN RESOURCES
Evans is a group which grows along with its people. We provide open and friendlyculture encouraging not only growth of an individual but also that of a team whicheventually cascades into the growth of the organization.
Evan is a place where people have remained committed for long periods not only forrewards and recognition but also because they feel part of the family- a community aplace where teammates go the extra mile and work with and each other. Employees have easyaccessibility to the senior management through open door policy and are given adequateexposure to explore innovative ideas and pursue novel concepts.
Growth is performance driven and is dependent on the ability of the individual to takeinitiative and assume higher responsibilities. Demonstrating outstanding work ethics inthe course of performing daily activities contributing beyond identified team role andresponsibilities help in faster career progression. It is very important for us to ensurethat employee morale is high and they feel a sense of pride and belonging to theorganization. Human resource team plays a crucial role by motivating retaining andcharting out growth path for employees.
Building and consolidating our talent pool has always been one of the top prioritiesand we have been successful in attracting varied talent that brings sound expertise newperspectives and infectious enthusiasm. OBM has a strong presence in the market andattracts the best talent in the market. We believe that the ultimate identity and thesuccess of our organization depends largely on sourcing candidates who compliment ourculture and share our values
11. RISK MANAGEMENT:
Your company constituted a Risk Mnangement Committee mandated to review the riskmanagement plan/process of your company.The risk Management Committee identified potentialrisks and assessed their potential impact with the objective of taking timely action tomitigate the risks.
The Audit committee has also been delegated with the responsibility of monitoring andreviewing risk management assessment and minimization procedure developing implementing and monitoring the risk management plan and identifying reviewing andmitigating all elements of risks which the company may be exposed to.
The key risks identified by the company include compentition financial risk andcompliance of all applicable statues and regulations. The company has weel definedpolicies/mechanism to mitigate competition and financial risks. The company reviews thepolicies/mechanism periodically to align with the changes in market practices andregulations. Compliances risks have been mitigated through periodical monitoring andreviews of the regularoty framework to ensure complete compliances with all applicablestatues and regulations.
12. NUMBER OF MEETINGS OF THE BOARD:
During the year the Directors met at regular interval and gap between the two meetingsdoes not exceed the minimum required. The Board met seven (7) times during the financialyear on April 23 2018 May 21 2018 August 31 2018 November 05 2018 November 302018 January 24 2019 and May 14 2019.
13. ENERGY CONSERVATION TECHNOLOGY ABSORPTION:
Considering the nature of the business of your Company there are no particulars whichare required to be furnished in this report relating to conservation of energy andtechnology absorption.
14. FOREIGN EXCHANGE EARNINGS AND OUTGO:
The Foreign Exchange earnings and outgo of the Company during the year under reviewis:-
Foreign Exchange Earning: Rs.813035/-
Expenditure in Foreign Currency : Rs. 189590/-
15. INTERNAL CONTROL SYSTEMS
The Company has adequate internal control procedures commensurate with its size scaleand complexity of its operations.
The Company has clearly laid down policies guidelines and procedures that form a partof the internal control systems.
During the year such controls were tested and no reportable material weakness in theoperations was observed. The company has appropriate polices and procedures for ensuringthe orderly and efficient conduct of its business inclusing adherenc of the company'spolices safeguarding of its assets preventation and detection of frauds and errorsaccuracy and completeness of accounting records and timely preparation or reliablefinancial information. The internal auditor monitors and evaluates the efficacy andadequacy of internal control systems in the company. Based on the report of the internalauditor respective departments undertake corrective action in their respective areas andtherby strengthen the controls significant audit observations and corrective actionsthereon are presented to the Audit committee of the Board.
16. EXTRACT OF ANNUAL RETURN:
As required under Section 92 of Companies Act 2013 the detailed extract of the AnnualReturn in form MGT 9 is attached as "Annexure B" and forms part of thisreport.
17. STATUTORY AUDITORS:
There is no audit qualification or observation on the financial statements of Companyby the statutory auditors for the year under review. M/s. Anay Gogte & Co. CharteredAccountants (Firm Reg. No. 100398W) the Statutory Auditors of the Company were appointeddue to casual vacancy caused by earlier Auditor for the Financial Year 2018-19 until theconclusion of 68th Annual General Meeting of Company in terms of the provisions of Section139 of the Companies Act 2013.
Since the term of Statutory Auditors of the Company i.e. M/s. Anay Gogte & Co.Chartered Accountants (Firm Reg. No. 100398W) has expired in this AGM and pursuant torecommendation of the Board of Directors the re-appointment of M/s. Anay Gogte & Co.Chartered Accountants in its Board meeting held on July 04 2019 as per section 139 of theCompanies Act 2013.
Accordingly the resolution for re-appointment of Anay Gogte & Co. CharteredAccountants as Statutory Auditors for five years has been set forth for approval ofShareholder in Annual General Meeting.
The Company has received confirmation from Anay Gogte & Co. to the effect thatthey fulfill the eligibility criteria as prescribed under Section 139 and 141 of theCompanies Act 2013. Your Directors recommends the re-appointment as the StatutoryAuditors in the notice of ensuing 68th Annual General Meeting.
18. CAUTIONARY NOTE
The statements forming part of the Director's Report may contain certain forwardlooking remarks within the meaning of applicable securities laws and regulations. Manyfactors could cause the actual results. Performances or achievements of the company to bematerially different from any future results performances or achievements that may beexpressed or implied by such forward looking statements.