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India Motor Parts & Accessories Ltd.

BSE: 590065 Sector: Auto
NSE: IMPAL ISIN Code: INE547E01014
BSE 00:00 | 08 Dec 771.15 -8.00
(-1.03%)
OPEN

770.05

HIGH

779.80

LOW

763.10

NSE 00:00 | 08 Dec 771.05 1.70
(0.22%)
OPEN

765.10

HIGH

784.00

LOW

764.65

OPEN 770.05
PREVIOUS CLOSE 779.15
VOLUME 2199
52-Week high 919.05
52-Week low 523.20
P/E 16.46
Mkt Cap.(Rs cr) 962
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 770.05
CLOSE 779.15
VOLUME 2199
52-Week high 919.05
52-Week low 523.20
P/E 16.46
Mkt Cap.(Rs cr) 962
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

India Motor Parts & Accessories Ltd. (IMPAL) - Director Report

Company director report

Your Directors are pleased to present the 67th Annual Report together withAudited Accounts for the year ended 31st March 2021. The summarized financial results ofthe Company are presented hereunder:

FINANCIAL HIGHLIGHTS: STANDALONE

(Rs in Crores)
Particulars 31.03.2021 31.03.2020
Profit before tax 65.49 60.02
Less: Provision for taxation (including deferred tax) 15.21 11.12
Profit after Tax 50.28 48.90
Add : Balance in P&L Account brought forward from previous year 43.13 46.49
Profit available for appropriation 93.41 95.39
Appropriations
Transfer to General Reserve 30.00 19.16
Dividend paid - 27.46
Dividend Tax paid - 5.64
Surplus Balance in Profit & Loss Account 63.41 43.13

Management Discussion and Analysis Report

Your Company's good performance in Financial Year 2020-21 resulted in a Profit afterTax of Rs 50.28 crores. This higher profit was on account of increased operating profits.

The onset of Covid - 19 in Q1 of last year resulted in a drastic drop in sales in thefirst quarter. As the virus spread to all parts of the country operations were affectedand sales levels dropped by more than 50% compared to the year before. While the lockdownmeasures brought into control the spread of the virus it also disrupted the movement ofvehicles and people. This affected our business.

However after July 2020 relaxation of restrictions allowed businesses to come back.In Q3 and Q4 of last year pent up demand generated higher sales in spare parts. Due tothe earlier disruption to the components industry dealers' stocks were low and thishelped us catch up with the previous year's sales.

We had concentrated on cost control in the year under review without affecting ouremployees pay. Most of our employees above 45 years of age have been vaccinated and weplan to vaccinate employees below 45 years in the next two-three months.

Coming back to the market outlook for the year 2021-22 the farm sector has been doingwell given the higher production and higher support prices. Pent up demand for passengercars may lead to higher sales from July onwards when we expect restrictions on movementof vehicles to be relaxed. This should revive the spare parts market in Q3 and Q4.

Hopefully the measures put in by the Government on vaccination and other measureswhich if people follow strictly could help us avoid a third wave. however our sales inthe current year exceeding last year's appears unlikely.

During the year under review and in the coming year the company will be makingstrategic investments in some companies from whom the Company sources important lines ofspare parts.

Subsidiary:

The functioning of our subsidiary CAPL Motor Parts Private Ltd located in Ahmedabad wasalso affected by COVID-19. The Company recorded a turnover of Rs 13.79 Crores during theyear under review as against Rs 14.82 Crores achieved during the year ended 31st March2020. The accounts of CAPL has been consolidated in the preparation of our consolidatedfinancial statements.

Dividend:

The Board has recommended a Dividend of Rs 10/- Per share (100%) on the paid up capitalof Rs 12.48 crores for the year 2020-21 which shall be paid subject to approval of theshareholders at the ensuing Annual General Meeting.

Internal Control Systems

The Company has an established and adequate Internal Control System covering all areasof operations commensurate with the size of the business. The Internal Audit Departmentmonitors and evaluates the efficacy and adequacy of the internal control systems of theCompany. Senior Management and Audit Committee regularly review the internal auditfindings as well as the effectiveness of the internal control measures.

IT systems

The application software and database are hosted on a "cloud" environmentwith sufficient firewalls thereby ensuring 100% availability of data access from remotelocations with sufficient safeguards built- in. This has helped and is helping the Companyto carry out its regular business without interruption even during the lockdown phasesduring COVID -19. The MIS reports are also available instantly to the Functional Heads forreview.

Consolidated Financial Statements

In accordance with the provisions of the Companies Act 2013 the Consolidated FinancialStatements drawn up in accordance with the applicable Accounting Standards form part ofthe Annual Report.

A statement containing the salient features of the financial statement of theSubsidiaries and Associate Companies in Form AOC - 1 is provided in Annexure "A"forming part of this report.

The financial statements of the subsidiary M/s CAPL Motor Parts Private Limited isalso hosted in our website - www.impal.net

Board & Audit Committee

The details regarding number of Board meetings held during the financial year andcomposition of Audit Committee are furnished in Corporate Governance Report.

Directors

Sri Srivats ram was co-opted as additional Director with effect from 08th March 2021and holds office upto the date of the ensuing annual General meeting. The Company has alsoreceived due notice from a member proposing his appointment as Director of the Company.

Sri ananth ramanujam retires by rotation at the ensuing annual General meeting andbeing eligible offers himself for re-appointment.

Ah Directors and Senior management Personnel have affirmed compliance with the Code ofConduct approved and adopted by the Board of Directors.

The Company has received necessary declaration from each Independent Director of theCompany under Section 149 (7) of the Companies act 2013 that the Independent Directors ofthe Company meet the criteria of the Independence laid down in Section 149 (6) of theCompanies act 2013.

Annual Board Evaluation

The Board has made a formal evaluation of its own performance and that of itscommittees and individual directors as required under Section 134(3) (p) of the Companiesact 2013. Separate meeting of Independent Directors were held during the year in whichthe Independent Directors evaluated the performance of the non-Independent Directors theBoard as a whole and the Chairman. The criteria for evaluation and the remuneration policyof the Company is attached vide annexure "B" & "C".

Related Party Transactions

Ah related Party Transactions that were entered into during the financial year were inthe ordinary course of business and at arm's length. The material related Partytransaction entered during the year in terms of regulation 23 of SEBI (Listing Obligations& Disclosure requirements) regulations 2015 was approved by the shareholders inmarch 2016 for entering into such transactions on a year on year basis.

Since the transaction was in the ordinary course of business and at arm's lengthhence disclosure in form AOC-2 is not required.

There are no materially significant related party transactions made by the Company withPromoters Directors Key managerial Personnel or other designated persons which may havea potential conflict with the interest of the Company at large.

The policy on related Party Transactions as approved by the Board is uploaded on theCompany's Website.www.impal.net/investor.htm.

Corporate Social Responsibility

As part of its initiatives under Corporate Social Responsibility (CSR) the Company hascontributed to various Projects in the areas of Health Education and Livelihood. Theconstitution of the CSR Committee and the report as required under the Companies act2013 is attached vide annexure "D".

Business Responsibility Report

Business responsibility report is attached vide annexure "E".

Disclosure under the Sexual Harassment of Women at workplace (Prevention Prohibitionand Redressal) Act 2013.

The Company has set up an Internal Complaints Committee (ICC) to redress complaints. Nocomplaints were received during the year 2020-21.

Secretarial Audit

The report of the Secretarial auditor is attached vide annexure "F".

Comments on Auditors' report

There are no qualifications reservations or adverse remarks or disclaimers made by theStatutory auditors and the Secretarial auditor in their reports respectively.

Extract of Annual Return

an extract of the annual return in Form MGT-9 is posted on the website of the Companyat www.impal. net/investor.htm.

Particulars of Employees

There is no employee particulars of whom are to be furnished under Section 197 readwith rule 5 (2):

(i) & (ii) The ratio of average remuneration of Non-Whole Time Directors with thatof the median remuneration of the employees for the financial year is 0.30 times and thatof the Executive Director (inclusive of commission) is 45 times and managing Director(inclusive of Commission) is 91 times.

(iii) The number of permanent employees on the rolls of the Company as on 31st march2021 is 783.

(iv) Percentage increase in median remuneration of staff for the financial year - 5.93% for staff and 4.19% for Key managerial Personnel.

(v) The Company affirms that remuneration is as per the existing remuneration policy.

Statutory Statements

There are no material changes and commitments affecting the financial position of theCompany between the end of the financial year of the Company and the date of the report.

There are no significant material orders passed by the Regulators / Courts whichimpacts the going concern status of the Company and its future operations.

Your Company has no activity relating to conservation of energy or technologyabsorption. The Company did not have any foreign exchange earnings or outgo.

your Company has not accepted any public deposits during the year 2020-21.

The Company has not given any loans or guarantees.

The details of the investments made by the Company are given in the notes to thefinancial statements. Directors' responsibility statement

As required under Section 134(5) of the Companies Act 2013 your Directors state that:

i) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;

ii) the Directors have selected such accounting policies and applied them consistentlyand made judgements and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company as at the end of the financial year ended31st March 2021 and the profit of the Company for that year;

iii) the Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies act 2013for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities;

iv) the Directors have prepared the annual accounts on a going concern basis and;

v) the Directors have laid down adequate internal financial controls to be followed bythe Company and that such internal financial controls are adequate and were operatingeffectively;

vi) the Directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and such systems are adequate and are operating effectively.

Corporate Governance

a detailed report on Corporate Governance together with a certificate from theStatutory auditors in compliance with regulation 34 (3) read with schedule V of SEBI(Listing obligation and Disclosure requirements) regulations 2015 is attached formingpart of this report.

Acknowledgement

Your Directors thank all its suppliers and dealers for their continued support andco-operation during the year under review. They also wish to thank the bankers for theirsupport and assistance.

The 12-month ending March 31st 2021 has been a challenging period due to CoVID-19. TheBoard wishes to place on record their appreciation for the additional efforts andcommitment displayed by all the Staff and Executives of the Company.

on behalf of the Board of Directors
Chennai S Ram
18th June 2021 Chairman

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