Your Directors have immense pleasure in presenting their 32nd Annual Report along withthe Audited Results of the Company for the year ended 31st March 2019.
OPERATING AND FINANCIAL REVIEW
|PARTICULARS || |
| ||Year ended 31.03.2019 ||Year ended 31.03.2018 ||Year ended 31.03.2019 ||Year ended 31.03.2018 |
|Gross Turnover* ||44357.21 ||41651.21 ||57759.21 ||41651.21 |
|Earnings before Interest Tax & Depreciation and Amortization (EBITDA) ||4105.19 ||4931.77 ||4893.88 ||4931.77 |
|Finance Cost ||1628.13 ||1900.77 ||2900.56 ||1900.77 |
|Depreciation ||2586.86 ||2858.19 ||3860.31 ||2858.19 |
|Tax Expenses ||137.41 ||93.51 ||(116.22) ||93.51 |
|Net Profit After Tax ||(247.20) ||79.31 ||(1750.77) ||79.31 |
*Note: Gross Turnover for the year ended 31.03.2019 includes GST amounting to र8352.11 lacs.
Gross Turnover for the year ended 31.03.2018 includes excise duty & GST amountingto Rs 707.47 lacs & Rs 6219.72 lacs respectively.
The Board has not recommended any dividend for the year ended 31st March 2019.
COMPANY'S PERFORMANCE - STANDALONE
Revenue from operations for the financial year 2018-19 at र 44357.21 lacs hasincreased by 6.50% over last year (र 41651.21 lacs in 2017-18). Loss after tax (LAT)for the year is र 247.20 lacs recording further decline as compared to the PAT of र79.31 lacs in 2017-18.
Reserves and surplus of the Company has decreased from र 12003.35 lacs in thefinancial year 2017-18 to र 11692.69 lacs in 2018-19. The Company has a Net worth ofRs. 16731.01 lacs as on 31st March 2019 in comparison to र17041.67 lacs ason 31st March 2018.
CHANGES IN SHARE CAPITAL
During the Financial Year 2018-19 there has been no change in the share capital.
DISCLOSURE REGARDING ISSUE OF EQUITY SHARES WITH DIFFERENTIAL RIGHTS The Company hasnot issued any Equity Shares with Differential Rights.
DISCLOSURE REGARDING ISSUE OF SWEAT EQUITY SHARES The Company has not issued any SweatEquity Shares.
STOCK EXCHANGE REQUIREMENTS
The Equity shares of the Company are being traded at Bombay Stock Exchange PhirozeJeejebhoy Towers Dalal Street Mumbai and at National Stock Exchange of India LimitedExchange Plaza Bandra Kurla Complex Bandra (E) Mumbai.
In order to comply with BASEL - II Guidelines your Company has got the rating done byM/s ICRA LIMITED.
|CREDIT RATING ||LONG TERM/ MEDIUM ||SHORT TERM BANK |
|AGENCY ||TERM BANK FACILITIES ||FACILITIES |
|ICRA ||[ICRA] D ||[ICRA] D |
As in the previous year your Company has not accepted any Deposits from theShareholders/Public during the year under review within the meaning of Section 73 of theCompanies Act 2013 and any amendments thereon.
ENVIRONMENT PROTECTION AND POLLUTION CONTROL
Company is compliant with all the rules and regulations of the Jharkhand StatePollution Control Board and regularly monitors and keeps the effluents emissions andwaste disposals from the works well within the stipulated parameters as per theEnvironment Conservation & Pollution Control Laws.
The Company is of ISO 14001/2015 OHSAS 18001/2007 and ISO 45001/2018 certified andmaintains its commitment towards according priority to Environment Occupational Healthand Safety as part of its work culture.
DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
Mr. Gautam Malhotra retires by rotation and being eligible offers himself forre-appointment at the ensuing annual general meeting.
Mr. John E Fintham also retires by rotation and being eligible offers himself forre-appointment at the ensuing annual general meeting.
Pursuant to the provisions of Section 149 of the Act which came into effect from April12014 Mr. Sanjay Chhabra was appointed as independent director for five years at the27th AGM of the Company held on September 27 2014 and Ms. Anuradha Kapur wasappointed as independent director for five years at the 30th AGM of theCompany held on September 28 2017. The terms and conditions of appointment of theindependent directors are as per Schedule IV of the Act. They have submitted a declarationthat each of them meets the criteria of independence as provided in Section 149(6) of theAct and there has been no change in the circumstances which may affect their status asindependent director during the year.
During the year the non-executive directors of the Company had no pecuniaryrelationship or transactions with the Company.
NUMBER OF BOARD MEETINGS
Four meetings of the board were held during the year 2018-19. For details of themeetings of the board please refer to the corporate governance report which forms partof this report.
PERFORMANCE EVALUATION OF BOARD
The board of directors has carried out an annual evaluation of its own performanceBoard committees and individual directors pursuant to the provisions of the Act and thecorporate governance requirements as prescribed by SEBI Listing Regulations.
The performance of the Independent Directors was evaluated by the Board after seekinginputs from all the directors on the effectiveness and contribution of the IndependentDirectors.
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 Remuneration Committee ("NRC") reviewed theperformance of the individual directors on the basis of the criteria such as thecontribution of the individual director to the Board and committee meetings likepreparedness on the issues to be discussed meaningful and constructive contribution andinputs in meetings etc. In addition the Chairman was also evaluated on the key aspectsof his role.
In a separate meeting of independent Directors performance of non-independentdirectors performance of the board as a whole and performance of the Chairman wasevaluated taking into account the views of executive directors and nonexecutivedirectors. The same was discussed in the board meeting that followed the meeting of theindependent Directors at which the performance of the Board its committees andindividual directors was also discussed.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 134(5) of the Companies Act 2003 the Directorshereby confirm:
1. That in the preparation ofAnnual Accounts the applicable Accounting Standards havebeen followed and there has been no material departure.
2. That the selected accounting policies were applied consistently and the directorsmade judgments and estimates that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company as at 31st March 2019 and of the profits forthe year ended on that date.
3. That proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2003 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities.
4. That the annual accounts have been prepared on a going concern basis.
5. That internal financial controls have been laid down to be followed by the Companyand such internal financialcontrols are adequate and operating effectively.
6. That proper systems have been devised to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.
Based on the framework of internal financial controls and compliance systemsestablished and maintained by the Company work performed by the internal statutory andsecretarial auditors and external consultants and the reviews performed by management andthe relevant board committees including the audit committee the board is of the opinionthat the Company's internal financial controls were adequate and effective during thefinancial year 2018-19.
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 Act and any amendments thereon has been disclosed in theCorporate Governance Report which forms part of the Boards' Report.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The details in respect of internal financial control and their adequacy are included inthe Management Discussion & Analysis Report which forms part of this report.
Pursuant to the provisions of Section 139 of the Act and the rules framed thereunderM/s. Raj Gupta & Company Chartered Accountants were appointed as statutory auditorsof the Company from the conclusion of the 30th Annual General Meeting (AGM) ofthe Company held on September 28 2017 till the conclusion of the 35th AGM tobe held in the year 2022 subject to ratification of their appointment at every AGM.However with the amendment of the Companies Act provisions related to ratification theratification of the appointment at every AGM is not required.
MATERIAL CHANGES & COMMITMENTS
Except as disclosed elsewhere in the Report there have been no material changes andcommitments which can affect the financial position of the Company between the end of thefinancial year and the date of report.
As required under Section 134(3) of the Companies Act 2013 the Board of Directorsinforms the shareholders that during the period under review no changes have occurred inthe nature of the Company's business or in the nature of the business carried on by themand generally in the classes of business in which the Company has an interest.
The Board of the Company has formed a risk management committee to frame implement andmonitor the risk management plan for the Company. The committee is responsible forreviewing the risk management plan and ensuring its effectiveness. The audit committee hasadditional oversight in the area of financial risks and controls. Major risks identifiedby the businesses and functions are systematically addressed through mitigating actions ona continuing basis.
The development and implementation of risk management policy has been covered in themanagement discussion and analysis which forms part of this report.
PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS
The particulars of loans guarantees and investments have been disclosed in thefinancial statements. ENVIRONMENT HEALTH AND SAFETY
Company has made significant contribution towards conservation of energy. Innovationand technological up gradation of processes and methods have made significant impact inthe overall consumption of natural resources energy fuel etc.
Company's management is consistently involved in promoting eco-friendly measures likeplanting of trees in and around the Work units creating new gardens Rain WaterHarvesting usage of transparent sheets for natural sunlight inside the plant use ofturbo ventilators for ventilation purpose and for minimizing the carbon footprints use ofpropane gas in the heat treatment plants for reducing the carbon emissions minimizingeffluents through better monitoring and corrective measures reduction of quantum of inputmaterial whether it is steel or usage of inert gases for welding through ValueAnalysis/Value Engineering activities.
All Statutory safety norms are diligently followed by the Company. Safety is accordedprime importance in the organization. Each Plant has Safety Committee to oversee thesafety of the workforce through ensuring safe working conditions and well informed andduly trained workers. Safety audits and evacuation drills are conducted regularly and allstaff members are encouraged to take part in the same and training for the awareness ofthe employees are conducted at regular intervals.
Company has a personal Accident Insurance Policy (group) for ensuring welfare andsecurity to the employees and their families.
The Company is committed to maintain high standards of Corporate Governance and adhereto the Corporate Governance requirements set out by SEBI. The Report on CorporateGovernance as stipulated under SEBI Listing Regulations is attached to this Report.
ANNUAL RETURN EXTRACT
As provided under Section 92(3) of the Act the extract of annual return is given asAnnexure-I in the prescribed Form MGT-9 which forms part of this report.
CORPORATE SOCIAL RESPONSIBILITY
The brief outline of the Corporate Social Responsibility (CSR) Policy of the Companyand the initiatives undertaken by the Company on CSR activities during the year are setout in Annexure-II of this report in the format prescribed in the Companies (CorporateSocial Responsibility Policy) Rules 2014. The policy is available on the website of theCompany.
SUBSIDIARY AND ASSOCIATES
During the year the Board of Directors (the Board') reviewed the affairs of thesubsidiary company. In accordance with Section 129(3) of the Companies Act 2013 we haveprepared consolidated financial statements of the Company which forms part of this AnnualReport. Further a statement containing the salient features of the financial statement ofthe subsidiary and joint venture company in the prescribed Form AOC-1 is annexed herewithas Annexure-III and forms part of the Annual Report which covers the financial position ofsubsidiary and associate company and hence not repeated here for the sake of brevity.
In accordance with Section 136 of the Companies Act 2013 the audited financialstatements including the consolidated financial statements and related information of theCompany and audited accounts of each of its subsidiaries are available on our website www.jmtauto.com . These documents will also be availablefor inspection during business hours at our registered office in New Delhi.
RELATED PARTY TRANSACTIONS
None of the transactions with related parties falls under the scope of section 188(1)of the Act. All RPTs entered during the financial year by the Company are in ordinarycourse of business and on an arms' length basis. No material RPTs were entered during thefinancial year. Accordingly the disclosure required u/s 134(3)(h) of the Act in FormAOC-2 is not applicable to your Company.
PARTICULARS OF EMPLOYEES AND REMUNERATION
(a) The ratio of remuneration of each director to the median of employees' remunerationas per Section 197(12) of the Companies Act 2013 read with Rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 forms part of theBoard's report as Annexure - IV.
(b) The statement containing particulars of employees as required under section 197(12)of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 is not applicable as there are no employees falling inthe category.
SECRETARIAL AUDIT REPORT
The auditors' report and secretarial auditors' report does not contain anyqualifications reservations or adverse remarks. Report of the secretarial auditor isgiven as Annexure-V which forms part of this report.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS & OUTGO
The relevant data regarding the above is given in the Annexure-VI hereto and forms partof this report. MANAGEMENT DISCUSSION & ANALYSIS
A detailed review of operations performance and future outlook of the Company is givenseparately under the head "Management Discussion and Analysis Report" and formsa part of the Annual Report.
As per SEBI (LODR) Regulations 2015 Corporate Governance report with Auditors'certificate thereon and management discussion and analysis and business responsibilityreport are attached which form part of this report.
Details of the Familiarization Programme of the independent directors are available onthe website of the Company (URL: www.imtauto.com/investors).
Policy on dealing with related party transactions is available on the website of theCompany (URL: www.jmtauto.com/ investors).
The Company has formulated and published a Whistle Blower Policy to provide VigilMechanism for employees including directors of the Company to report genuine concerns. Theprovisions of this policy are in line with the provisions of the Section 177(9) of the Actand SEBI (LODR) Regulations 2015 (URL: www.jmtauto.com/investors).
The Board of Directors place on record their gratitude for the co-operation patronageand support received from Financial Institutions Bankers Government Bodies and employeesat all levels.
Your directors also wish to acknowledge the contribution made by the employees at alllevels and above all the trust and confidence reposed by the shareholders.
| ||By order of the Board of Directors |
| ||Sd/- |
|Place : New Delhi ||Sanjay Tiku |
|Date : 14.08.2019 ||CEO & Whole Time Directo |
| ||DIN - 00300566 |