TO THE MEMBERS
Your Directors have pleasure in presenting their 39th Annual Report together with theAudited Accounts of the Company for the Year ended March 31 2022.
|Particulars ||March 31 2022 ||March 31 2021 |
|Gross Sales ||177812.79 ||123245.82 |
|Less: State Excise VAT & TCS ||131966.34 ||89233.75 |
|Net Sales ||45846.45 ||34012.07 |
|Other Income ||2858.30 ||3028.92 |
|Total ||48704.75 ||37040.99 |
|Profit before depreciation Exceptional item & taxation ||12411.35 ||10553.96 |
|Less: Depreciation ||606.26 ||548.11 |
|Add: Exceptional item ||Nil ||Nil |
|Less: Provision for taxation ||2469.50 ||1996.80 |
|Profit after taxation ||9335.59 ||8009.05 |
An amount of Rs. 9335.59 Lakhs is proposed to be retained in the statement of Profit& Loss.
Gross revenues increased to Rs. 177812.79 Lacs against Rs. 123245.82 Lacs in theprevious year. Profit before depreciation exceptional item and taxation was Rs. 12411.35lacs against Rs. 10553.96 Lacs in the previous year.
After providing for depreciation and taxation of Rs. 606.26Lacs & Rs. 2469.50 Lacsrespectively the net profit of the Company for the year under review was placed atRs.9335.59 Lacs as against Rs. 8009.05lacs in the previous year.
In spite of tough and adverse market conditions on account of continuing pandemicsituation during the first quarter of the financial year abnormal rise in the prices ofraw materials and all the packing materials almost throughout the year and constraint inincreasing the sale price the company was in a position to achieve a reasonable turnoverand profits.
Your directors have pleasure in recommending for approval of the members at the AnnualGeneral Meeting a dividend of 50 % (at the rate of 40% in the previous year). The Dividendof 50 % if approved at the forth coming Annual General Meeting will result in the outflow of Rs. 913.88 lacs to the company. The dividend distribution policy is annexed tothis report as annexure A'.
The paid up equity capital as on March 31 2022 was Rs.1827.75 Lakhs during the yearunder review.
Cash and cash equivalents as at March 31 2022 was Rs.152.49 lakhs. The companycontinues to focus on judicious management of its working capital. Receivablesinventories and other working capital parameters were kept under strict check throughcontinuous monitoring.
Your Company has not accepted any deposits within the meaning of Section 73 of theCompanies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014.
PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS:
The company has not given any loans or guarantees covered under the provisions ofsection 186 of the Companies Act 2013.
The details of the investments made by company are given in the notes to the financialstatements.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an Internal Control System commensurate with the size scale andcomplexity of its operations. The scope and authority of the Internal Audit function isdefined in the Internal Audit Manual. To maintain its objectivity and independence theInternal Audit function reports to the Chairman of the Audit Committee of the Board &to the Chairman & Managing Director.
The Internal Audit Department monitors and evaluates the efficacy and adequacy ofinternal control system in the Company its compliance with operating systems accountingprocedures and policies at all locations of the Company. Based on the report of internalaudit function process owners undertake corrective action in their respective areas andthereby strengthen the controls. Significant audit observations and recommendations alongwith are presented to the Audit Committee of the Board.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
As part of its initiatives under "corporate social responsibility" (CSR) thecompany has contributed funds for the schemes of eradicating hunger and poverty promotionof education and medical aid. The contributions in this regard have been made to theregistered trust which is undertaking these schemes. The company has also undertakenschemes of distributing food to the poor directly and other activities as part of the CSRinitiative.
The Annual Report on CSR activities is annexed herewith as: Annexure B'
CONSERVATION OF ENERGY:
a) Company ensures that the manufacturing operations are conducted in the mannerwhereby optimum utilisation and maximum possible savings of energy is achieved.
b) No specific investment has been made in reduction in energy consumption.
c) As the impact of measures taken for conservation and optimum utilisation of energyare not quantitative its impact on cost cannot be stated accurately.
d) Since the Company does not fall under the list of industries which should furnishthis information in Form A annexed to the aforesaid Rules the same has not beensubmitted.
Company's products are manufactured by using in-house know how and no outsidetechnology is being used for manufacturing activities. Therefore no technology absorptionis required. The Company constantly strives for maintenance and improvement in quality ofits products and entire Research & Development activities are directed to achieve theaforesaid goal.
FOREIGN EXCHANGE EARNINGS AND OUT-GO :
During the period under review there was no foreign exchange earnings or out flow.
During the year under review your Company enjoyed cordial relationship with workersand employees at all levels.
Directors Mrs. Jyoti Jimmy Almeida & Mr. Kiran Parashare retire by rotation andbeing eligible offer themselves for re appointment. The Directors recommend Mrs. Jyotijimmy Almeida & Mr.Kiran Parashare for re-appointment.
All independent directors have given declarations that they meet the criteria ofindependence as laid down under section 149(6) of the Companies Act 2013 and underregulation 25 of the SEBI (Listing obligations and disclosure requirements) Regulations2015
Pursuant to the provisions of the Companies Act 2013 and under regulation 25 of theSEBI (Listing obligations and disclosure requirements) Regulations 2015 the Board hascarried out an evaluation of its own performance the directors individually as well asthe evaluation of the working of its Audit Nomination & Remuneration Committees. Themanner in which the evaluation has been carried out has been explained in the CorporateGovernance Report.
The Board has on the recommendation of the Nomination & Remuneration Committeeframed a policy for selection and appointment of Directors Senior Management and theirremuneration. The Remuneration Policy is stated in the Corporate Governance Report.
A calendar of Meetings is prepared and circulated in advance to the Directors.
During the year four Board Meetings and four Audit Committee Meetings were convened andheld. The details of which are given in the Corporate Governance Report. The interveninggap between the Meetings was within the period prescribed under the Companies Act 2013.
DIRECTOR'S RESPONSIBILITY STATEMENT:
In terms of Section 134 (5) of the Companies Act 2013 the directors would like tostate that:
i) In the preparation of the annual accounts the applicable accounting standards havebeen followed.
ii) The directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that were reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit or loss of the Company for the year under review.
iii) The directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities.
iv) The directors have prepared the annual account on a going concern basis.
v) The directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.
vi) The directors had devised proper system to ensure compliance with the provisions ofall applicable laws and that such system were adequate and operating effectively.
RELATED PARTY TRANSACTIONS:
All related party transactions including agreements/contracts that were entered intoduring the financial year were on arm's length basis and were in the ordinary course ofthe business. There are no materially significant related party transactions made by thecompany with Promoters Key Managerial Personnel or other designated persons which mayhave potential conflict with interest of the company at large.
The Company does not have any subsidiary.
CODE OF CONDUCT:
The Board of Directors has approved a Code of Conduct which is applicable to theMembers of the Board and all employees in the course of day to day business operations ofthe company. The Company believes in "Zero Tolerance" against briberycorruption and unethical dealings / behaviours of any form and the Board has laid down thedirectives to counter such acts. The code laid down by the Board is known as "code ofbusiness conduct" which forms an Appendix to the Code. The Code has been posted onthe Company's website www.gmbreweries.com.
The Code lays down the standard procedure of business conduct which is expected to befollowed by the Directors and the designated employees in their business dealings and inparticular on matters relating to integrity in the work place in business practices andin dealing with stakeholders. The Code gives guidance through examples on the expectedbehaviour from an employee in a given situation and the reporting structure.
All the Board Members and the Senior Management personnel have confirmed compliancewith the Code. All Management Staff were given appropriate training in this regard.
VIGIL MECHANISM / WHISTLE BLOWER POLICY:
The Company has a vigil mechanism named Fraud and Risk Management Policy to deal withinstance of fraud and mismanagement if any. In staying true to our values of StrengthPerformance and Passion and in line with our vision of being one of the most respectedcompanies in India the Company is committed to the high standards of Corporate Governanceand stakeholder responsibility.
The Company has a Fraud Risk and Management Policy to deal with instances of fraud andmismanagement if any. The FRM Policy ensures that strict confidentiality is maintainedwhilst dealing with concerns and also that no discrimination will be meted out to anyperson for a genuinely raised concern. A high level Committee has been constituted whichlooks into the complaints raised. The Committee reports to the Audit Committee and theBoard.
PREVENTION OF INSIDER TRADING:
In January 2015 SEBI notified the SEBI (Prohibition of insider trading) Regulations2015 which came into effect from May 15 2015. Pursant thereto the Company has formulatedand adopted a new Code for Prevention of Insider Trading. The Company has adopted a Codeof Conduct for Prevention of Insider Trading with a view to regulate trading in securitiesby the Directors and designated employees of the Company. The Code requires pre-clearancefor dealing in the Company's shares and prohibits the purchase or sale of Company sharesby the Directors and the designated employees while in possession of unpublished pricesensitive information in relation to the Company and during the period when the TradingWindow is closed. The Board is responsible for implementation of the Code.
All Board members and the designated employees have confirmed compliance with the Code.
AUDITOR'S REPORT/ SECRETARIAL AUDIT REPORT:
The observation made in the Auditors' Report / Secretarial auditor's report readtogether with relevant notes and clarifications thereon are self explanatory and hence donot call for any further comments under Section 134 of the Companies Act 2013.
As required under section 204 (1) of the Companies Act 2013 the Company has obtained asecretarial audit report.
The Auditors M/s. Priti V. Mehta & Company. Chartered Accountants Mumbai retireat the conclusion of the ensuing Annual General Meeting. The Board of Directors in theirmeeting held on April 12 2022 has proposed the appointment of M/s. V.P. Mehta &Company Chartered Accountants as auditors of the company for a period five years from theconclusion of this annual general meeting till the conclusion of 44th annual generalmeeting.
Pursuant to 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. Kala Agarwal a firm of company Secretaries in practice to undertake theSecretarial Audit of the Company. The Secretarial Audit report is annexed herewith as" Annexure C"
The annual return of the company has been placed on the website of the company and canbe accessed at www. gmbreweries.com
BUSINESS RISK MANAGEMENT:
Pursuant to section 134 (3) (n) of the Companies Act 2013 & under regulation 21 ofthe SEBI (Listing obligations and disclosure requirements) Regulations 2015 the companyhas constituted a business risk management committee. The details of the committee and itsterms of reference are set out in the corporate governance report forming part of theBoards report.
At present the company has not identified any element of risk which may threaten theexistence of the company.
INFORMATION PURSUANT TO SECTION 197(12) READ WITH RULE 5 OF THE COMPANIES (APPOINTMENTAND REMUNERATION OF MANAGERIAL PERSONEENL) RULES 2014
1. Ratio of remuneration of each director to the median remuneration of the employeesof the company for the year 2021-2022
|Name & Designation of the Director ||Remuneration ||Ratio to Median remuneration |
| ||(Amount Rs. in Lakhs) || |
|Mr. Jimmy Almeida- Chairman & Managing Director ||166.50 ||56.25 Times |
|Mrs. Jyoti Almeida- Executive Director ||122.10 ||37.87 Times |
|Mr. Kiran Parashare- Executive Director ||27.75 ||9.38 Times |
|Mr. Paresh Trivedi- Independent Director ||0.80 ||Not Applicable as only sitting fees is paid to him during the year |
|Mr. Dilip Diwan- Independent Director ||0.80 ||Not Applicable as only sitting fees is paid to him during the year |
|Mr. Shantilal Haria- Independent Director ||0.80 ||Not Applicable as only sitting fees is paid to him during the year |
|Mrs. Urmi Shah -Independent Director ||0.80 ||Not Applicable as only sitting fees is paid to her during the year |
|Ms. Shivani Soni -Independent Director ||0.80 ||Not Applicable as only sitting fees is paid to her during the year |
2. The percentage increase in remuneration of each Director CFO CEO CS or manager ifany in the financial year 2021-22 compared to 2020-21
|Name & Designation of the Director CFO CEO and CS ||Remuneration for the year ended 2021-22 ||Remuneration for the year ended 2020-21 ||% Change |
| ||(Rs.in Lakhs) ||(Rs.in Lakhs) || |
|Mr. Jimmy Almeida- CMD ||166.50 ||159.00 ||4.72 |
|Mrs. Jyoti Almeida- Executive Director ||122.10 ||116.60 ||4.72 |
|Mr. Kiran Parashare- Executive Director ||27.75 ||18.55 ||49.60 |
|Mr. Paresh Trivedi- Independent Director ||0.80 ||0.80 ||Nil |
|Mr. Dilip Diwan- Independent Director ||0.80 ||0.80 ||Nil |
|Mr. Shantilal Haria- Independent Director ||0.80 ||0.80 ||Nil |
|Mrs. Urmi Shah Independent Director ||0.80 ||Nil ||100.00 |
|Ms. Shivani Soni Independent Director ||0.80 ||Nil ||100.00 |
|Mr. S. Swaminathan-CFO ||22.43 ||21.42 ||4.72 |
|Mr. Sandeep Kutchhi-CS ||20.16 ||19.26 ||4.67 |
3. The median remuneration of the employees has Increased 9.79% in 2021-22 as comparedto 2020-21.
4. Number of permanent employees on the rolls of the company
|Financial Year ||Number of permanent employees on the rolls of the company |
|2021-22 ||169 |
|2020-21 ||183 |
5. Explanation on the relationship between average increase in remuneration and thecompany performance The company's overall turnover Increased by 44.27% while the Increasein the median remuneration was 9.79%.
However the company is paying fixed remuneration to the individuals based on theresponsibility and position and the company has no policy of paying incentive/ bonus basedon company's performance.
6. Ratio of the remuneration of the highest paid director to that of the employees whoare not directors but receive remuneration in excess of the highest paid director duringthe year- Not Applicable.
7. Key parameter for any variable component of remuneration availed by the director Not Applicable as no variable remuneration is paid.
8. We affirm that the remuneration paid to the Directors Key Managerial Personnel andemployees is as per the remuneration policy of the Company.
9. Market capitalization & Price Earnings ratio details are as under
|Particulars || ||As on March 31 2022 ||As on March 31 2021 |
|Price Earnings Ratio || ||13.97 ||9.51 |
|Market Capitalisation ||(Rs. In Crores) ||1304.65 ||761.63 |
|Net worth of the company ||(Rs. In Crores) ||591.04 ||504.99 |
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORTS
The Corporate Governance and Management Discussion & Analysis Report which form anintegral part of this Report are set out as separate Annexure together with theCertificate from the auditors of the Company regarding compliance with the requirements ofCorporate Governance as stipulated under various regulations of the SEBI (Listingobligations and disclosure requirements) Regulations 2015.
Your Company and its Directors wish to extend their sincerest thanks to the Members ofthe Company Bankers State Government Local Bodies Customers Suppliers ExecutivesStaff and workers at all levels for their continuous cooperation and assistance.
| ||For and on behalf of the |
| ||Board of Directors |
|Mumbai ||Jimmy Almeida |
|April 122022 ||Chairman & Managing Director |