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Nahar Industrial Enterprises Ltd.

BSE: 519136 Sector: Industrials
NSE: NAHARINDUS ISIN Code: INE289A01011
BSE 14:10 | 27 Jan 138.75 -0.30
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OPEN 138.45
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VOLUME 1797
52-Week high 163.65
52-Week low 38.05
P/E 4.81
Mkt Cap.(Rs cr) 553
Buy Price 139.80
Buy Qty 7.00
Sell Price 140.90
Sell Qty 70.00
OPEN 138.45
CLOSE 139.05
VOLUME 1797
52-Week high 163.65
52-Week low 38.05
P/E 4.81
Mkt Cap.(Rs cr) 553
Buy Price 139.80
Buy Qty 7.00
Sell Price 140.90
Sell Qty 70.00

Nahar Industrial Enterprises Ltd. (NAHARINDUS) - Director Report

Company director report

Dear Members

Your directors have pleasure in presenting their 37 Annual Report together with theaudited financial statements for the financial year ended 31st March 2021.

1. FINANCIAL RESULTS

The Company's financial performance for the year ended 31st March 2021 is summarizedbelow

Particulars

Standalone

Consolidated

Current Year Previous Year Current Year Previous Year
Revenue from operations 141802.66 157272.70 141802.66 157272.70
Profits Before Depreciation Finance Cost and Tax 10194.04 10321.11 10194.04 10321.11
Less: Depreciation 5762.01 7097.98 5762.01 7097.98
Less: Finance Cost 5722.80 6469.41 5722.80 6469.41
Loss Before Tax (1290.77) (3246.28) (1290.77) (3246.28)
Less: CSR expenses u/s 135 of Companies Act2013 (68.14) (68.14)
Add : Share of Profit/(Loss) of equity accounted investments 51.49 1.38
Loss Before Tax (1290.77) (3314.42) (1239.28) (3313.04)
Less: Tax Expense (Including Deferred Tax) (377.53) (777.08) (361.62) (774.45)
Loss After Tax for the period (913.24) (2537.34) (877.66) (2538.59)
Other Comprehensive Income
Items that will not be reclassified to profit or loss
i) Re-measurement gains/ (losses) on defined benefit plans 141.19 363.17 141.19 363.17
Income tax effect on the same (49.33) (126.90) (49.33) (126.90)
ii) Net gain / (loss) on FVOCI equity instruments 0.94 (0.11) 0.94 (0.11)
Income tax effect on the above
Total Comprehensive Income for the period (820.44) (2301.18) (784.86) (2302.43)

2. PERFORMANCE REVIEW

The Company operates in two Business segments i.e. Textile and Sugar as per IndianAccounting Standard (AS)-108 (Operating Segment).

i) Textile: The textile division accounts for 86.12% (including inter-segment)of the total turnover of the company for the year ended 31st March 2021. The Businesswise performance of this segment is as under:

a. Yarn: The Company has produced 49643 MTs of yarn as against 51233 MTs inthe previous year.

b. Fabric: The Company has produced 474.28 lacs meters of fabrics (both grey andprocessed) as against 790.89 lacs meters in the previous year.

The total turnover of this segment (Yarns and Fabrics) has decreased to Rs. 1207.35crores as against Rs. Rs. 1379.48 crores in the previous year showing a decrease of12.48%.

ii) Sugar: The Company has produced 386980 qtl. Qtls. of sugar as against454730 Qtls. in the previous year at a Recovery rate of 10.01% (previous year 10.38%).

The total turnover of this segment has increased to Rs. 193.96 crores as against Rs.181.19 crores in the previous year showing an increase of 7.05%.

Overall Performance (Standalone/Consolidated)

We wish to inform you that during the year under review on standalone basis thecompany has achieved operational income of Rs. 1418.03 crores as against Rs. 1572.73crores showing a decrease of 9.84 % over the previous year. The company has earned Profitbefore depreciation finance cost and tax of Rs. 101.94 crores as against Rs.103.21 croresin the previous year. After providing for Depreciation of Rs. 57.62 crores (previous yearRs. 70.98 crores) finance cost of Rs. 57.23 crores (previous year Rs. 64.69 crores) andTax Expenses of Rs. (3.78) crores (previous year Rs. (7.77) crores) (inclusive of DeferredTax) the Loss for the year comes to Rs. 9.13 crores as against Loss of Rs. 25.37 crores inthe previous year.

We wish to inform you that during the year under review on consolidated basis thecompany has achieved operational income of Rs. 1418.03 crores as against Rs. 1572.73crores showing a decrease of 9.84 % over the previous year. The company has earned Profitbefore depreciation finance cost and tax of Rs. 101.94 crores as against Rs. 103.21crores in the previous year. After providing for Depreciation of Rs. 57.62 crores(previous year Rs. 70.98 crores) finance cost of Rs. 57.23 crores (previous year Rs.64.69 crores) share of profit/(Loss) of equity accounted investments of Rs. 51.49 lacsand Tax Expenses of Rs. (3.62) crores (previous year Rs. (7.74) crores) (inclusive ofDeferred Tax) the Loss for the year comes to Rs. 8.78 crores as against Loss of Rs. 25.39crores in the previous year.

During the year under review your company faced unprecedented challenges due to globaleconomic slowdown and weak demand in domestic markets. The Company couldn't remain immuneto the adverse business conditions. The Board and the Management of the company willcontinue to monitor the situation as it evolves and do its best to take all necessarymeasures in the interest of all stakeholders of the company.

3. TRANSFER TO RESERVES

Your company has transferred Rs. (8.20) lacs [previous year Rs. (23.01) lacs] from theGeneral Reserves.

4. CREDIT RATING

The Rating Committee of ICRA Limited has retained the long-term rating of [ICRA]BBB+(pronounced ICRA triple B plus) and short-term rating of [ICRA]A2 (pronounced ICRA A two).Outlook on the long-term rating is stable.

5. DIVIDEND

Due to loss suffered by the Company your directors express their inability torecommend dividend for the financial year ended on 31st March 2021.

6. INVESTOR EDUCATION AND PROTECTION FUND

Pursuant to the applicable provisions of the Companies Act 2013 and rules framed thereunder the amount of dividend remaining unpaid or unclaimed for a period of seven yearsfrom the date of transfer to the unpaid account is required to be transferred to InvestorEducation and Protection Fund (IEPF) of the Central Government. The Company has alreadytransferred the amount of unclaimed dividend for the year 2012-13 to the IEPF. Members whohave not yet en-cashed or claimed the dividends for the year 2013-14 onwards are requestedto contact the Company at the earliest.

In terms of the requirements of Section 124(6) of the Companies Act 2013 read withInvestor Education and Protection Fund (IEPF) Authority (Accounting Audit Transfer andRefund) Rules 2016 as amended ('the Rules') the Company is required to transmit theShares in respect of which the dividend has remained unpaid or unclaimed for a period ofseven consecutive years to the IEPF Account. Members are requested to take note of thesame and claim their unclaimed dividend immediately to avoid transmission of theunderlying shares to IEPF Account. The shares transmitted to the IEPF Account can beclaimed back by the concerned members from the IEPF authority after complying with theprocedure prescribed under the rules. The details of shareholders whose shares areproposed to be transferred in November 2021 to IEPF Authority is available on company'sweblink: www.owmnahar.com/nahar_ie/ transfer-of-equity-shares.phb.

7. SHARE CAPITAL

During the year 2020-21 the Company has allotted 1000000 5.5% Non-ConvertibleNon-Cumulative Redeemable Preference Shares (NCNCRPS) of Rs. 100/- each aggregating to Rs.100000000/- to Nahar Capital & Financial Services Limited the promoter groupentity. The company has utilized the amount for the purposes it was raised. As on 31stMarch 2021 the paid up Share Capital of the Company is Rs. 1560351410/- consisting ofEquity Share Capital of Rs. 398351410/- and Preference Share Capital of Rs.1162000000/-. During the year under review the Company has not granted any stockoptions or sweat equity. As on 31st March 2021 none of the Promoters / Directors of theCompany hold instruments convertible into equity shares of the Company.

8. DEPOSITS

During the year the Company has not accepted any deposit from the public. As suchthere are no outstanding deposits within the meaning of Section 73 of the Companies Act2013 read with the Companies (Acceptance of Deposits) Rules 2014.

9. PARTICULARS OF LOANS GUARANTEES OR INVESTMENT BY THE COMPANY

Details of Loans Guarantees and Investments covered under the provisions of Section186 of the Companies Act 2013 are given in the Financial Statements.

10. MATERIAL CHANGES AFFECTING FINANCIAL

POSITION OF THE COMPANY

No changes and commitments affecting the financial position of the company haveoccurred during the year under review as well as the period between the end of financialyear till the date of this report.

11. DIRECTORS

Appointment and change in of Directors

l In accordance with the provisions of Section 152 of the Companies Act 2013 and theCompany's Articles of Association Sh. Jawahar Lal Oswal (DIN: 00463866) and Sh. DineshOswal (DIN: 00607290) Directors of the Company will be retiring by rotation at theforthcoming Annual General Meeting and being eligible offer themselves for re-appointment.Accordingly the requisite resolution(s) are proposed at the ensuing Annual GeneralMeeting for approval.

l The term of Dr. Vijay Asdhir (DIN: 06671174) Independent Director comes to an endon this Annual General Meeting. He will cease to be director of the Company at theconclusion of this Annual General Meeting. The board places on record its appreciation forthe valuable contribution received from him.

l Pursuant to the provisions of Sections 149 150 152 and other applicable provisionsof the Companies Act 2013 and Companies (Appointment & Qualifications of Directors)Rules 2014 the Company is appointing Dr. Inder Mohan Chhibba (DIN: 07913491) as anIndependent Director of the Company for the term of 5 (five) consecutive years uptoconclusion of 29th September 2026.

Declaration by Independent Directors

Necessary declaration has been obtained from all Independent Directors undersub-section (6) of Section 149 of the Companies Act 2013 and Regulation 16(1)(b) of SEBI(LODR) Regulations 2015.

The Ministry of Corporate Affairs vide Notification No. G.S.R. 804(E) dated October 222019 and effective from December 01 2019 has introduced the provision relating toinclusion of names of Independent Directors in the Data Bank maintained by IndianInstitute of Corporate Affairs ('IICA'). All Independent Directors of your Company areregistered with IICA.

Number of Meetings of the Board

During the year six Board Meetings were convened and held on 14.5.2020 30.06.202014.08.2020 12.11.2020 12.02.2021 and 20.03.2021. The detail thereof is also given in theCorporate Governance Report. The intervening gap between the meetings was within theperiod prescribed under the Companies Act 2013.

Board Evaluation

Pursuant to the provisions of Companies Act 2013 and SEBI (Listing Obligations &Disclosure Requirements) Regulations 2015 the Company has devised a policy forperformance evaluation of the board its committees and all the Directors individually asper the criteria laid down by the Nomination & Remuneration Committee of the Company.The manner of evaluation is stated in the Corporate Governance Report forming an integralpart of this report.

Independent Directors Meeting

During the financial year 2020-21 the Independent Directors met on 12th December2020 inter-alia to discuss:-

(i) The performance of Non-Independent Directors and the Board as a whole;

(ii) The performance of the Chairman of the Company taking into account the views ofExecutive and Non Executive Directors and

(iii) To assess the quality quantity and timeliness of flow of information between thecompany management and the board that is necessary for the board to effectively andreasonably perform their duties.

A meeting of Independent Directors was also held on 20th March 2021 to consider theproposal and to submit report on the proposed Scheme of Arrangement for Amalgamation ofCotton County Retail Ltd. with the Company.

12. DIRECTORS RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information andexplanations obtained by them your Directors make the following statement in terms ofSection 134(3) (c) and (5) of the Companies Act 2013:-

i) that in the preparation of the Annual Accounts for the year ended on 31st March2021 the applicable accounting standards have been followed along with proper explanationrelating to material departures;

(ii) that the directors had selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the Company as at 31st March 2021and of the profit of the Company for the year ended on that date;

(iii) that 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) that annual accounts have been prepared on a going concern basis;

(v) that the Directors had laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and were operatingeffectively; and

(vi) that the Directors had devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.

13. ANNUAL RETURN

The web-link for the Annual Return placed on the Company's website ishttps://www.owmnahar.com/ nahar_ie/pdf/annual-return.pdf.

14. RELATED PARTY TRANSACTIONS

During the financial year under review all transactions entered into with Relatedparties as defined under the Companies Act 2013 and SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 were in the ordinary course of business and areat arm's length basis. The company has not entered into any contract or arrangement withRelated parties / Group companies other than in ordinary course of business. The detailsof Related Party Transactions are placed before the Audit Committee for its review andapproval on quarterly basis. These transactions were entered into as per the Company'spolicy on Related Party Transactions and are approved by the Audit Committee Board andalso by Shareholders. The company's policy on Related Party Transactions is available atthe web-link: www.owmnahar.com/nahar_ie/pdf/RPT_Policy.pdf. The details of Related Partiestransactions are given in Note No. 38 of the Notes to Financial Statements. Pursuant tothe provisions of section 134(3) Form AOC-2 is annexed herewith as Annexure-A.

15. AUDIT COMMITTEE

The Company has constituted an Audit Committee pursuant to Section 177(8) read withRule 6 of the Companies (Meetings of the Board and its Powers) Rules 2014 and SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015. During the year dueto completion of 2nd term of Dr. (Mrs) Harbhajan Kaur Bal and Dr. Amrik Singh Sohi asIndependent Director the Audit Committee was re-constituted with the induction of Dr.Manisha Gupta and Dr. Roshan Lal Behl as Members. Presently the Audit Committee consistsof Sh. Dinesh Gogna Dr. Manisha Gupta and Dr. Roshan Lal Behl as Members and Dr. VijayAsdhir is the Chairman of the Audit Committee. The detailed information regarding AuditCommittee and its terms of reference is given in Corporate Governance Report forming anintegral part of the Directors Report.

16. NOMINATION & REMUNERATION COMMITTEE

The Company has constituted a Nomination & Remuneration Committee pursuant toSection 178(1) of the Companies Act 2013 and SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015. During the year due to completion of 2nd term of Dr.(Mrs) Harbhajan Kaur Bal as an Independent Director the Nomination & RemunerationCommittee was re-constituted with the induction of Dr. Roshan Lal Behl as Member.Presently the Nomination & Remuneration Committee consists of Dr. Suresh Kumar Singlaand Dr. Roshan Lal Behl as Members and Dr. Vijay Asdhir is the Chairman of the Nomination& Remuneration Committee. The detailed information regarding Nomination &Remuneration Committee and its terms of reference is given in Corporate Governance Reportforming an integral part of the Directors Report.

17. RISK MANAGEMENT

The Company has laid down a Risk Management Policy and identified threat of such eventswhich if occurs will adversely affect the ability of the company to achieve itsobjectives. Evaluation of business risk and managing the risk has always been an ongoingprocess in your company. The Audit Committee has also been delegated the responsibilityfor assessment mitigation monitoring and review of all elements of risks which theCompany may be exposed to. The Board also reviews the risk management and minimizationprocedures.

18. VIGIL MECHANISM/ WHISTLE BLOWER POLICY

The Board adopted a Vigil Mechanism/ Whistle Blower Policy as per SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 and section 177 of theCompanies Act 2013 to report genuine concerns or grievances about unethical behavior ofemployees actual or suspected fraud or violation of the Company's Code of Conduct. TheCompany's Vigil mechanism/ Whistle Blower Policy are available at the Company's websitei.e. www.owmnahar.com.

19. INDIAN ACCOUNTING STANDARD (IND AS) AND

INTERNAL FINANCIAL CONTROL

The Indian Accounting Standard (Ind AS) became applicable on the Company w.e.f. 01stApril 2016. Accordingly the Financial Statements have been prepared in accordance withthe Companies (Indian Accounting Standard) Rules 2015 as amended by the Companies (IndianAccounting Standards) Amendment Rules 2016.

The Company is having adequate internal financial control systems and procedures whichcommensurate with the size of the Company. The Company is having Internal Audit Departmentwhich ensures optimal utilization and protection of Company's resources. The InternalAuditor monitors and evaluates the efficiency and adequacy of internal control systems inthe company its compliance with operating systems accounting procedures and also ensuresthat the internal control systems are properly followed by all concerned departments ofthe company. Significant audit observations and corrective actions thereon are presentedto the Audit Committee of the Board. The company has engaged an independent agency toaccess the adequacy of the existing internal financial controls and suggest means forfurther strengthening the same.

20. COMPLIANCE WITH SECRETARIAL STANDARDS

During the year the Company has complied with the applicable Secretarial Standards asprescribed under section 118 of the Companies Act 2013.

21. SIGNIFICANT AND MATERIAL ORDERS PASSED BY

THE REGULATORS OR COURTS

There are no significant and material orders passed by the

Regulators / Courts that would impact the going concern status of the Company and itsfuture operations.

22. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The company has constituted a Corporate Social Responsibility (CSR) Committee of theboard in accordance with section 135 of the Companies Act 2013.

The Company has adopted a CSR Policy and undertaking CSR programmes/ projects alongwith group companies under one umbrella through Oswal Foundation (OSF) which is aregistered society formed in 2006 having its charitable objects in various fields. OSF hasalready undertaking various activities as contemplated under Schedule VII of the CompaniesAct 2013. Accordingly your company has been undertaking various CSR activities throughOSF in addition to directly meeting the CSR obligations. The company is workingproactively with OSF to finalize the projects and identify the new projects for fulfillingits CSR obligations.

Pursuant to the provisions of Section 135 of the Companies Act 2013 for the financialyear 2020-21 there is nil liability on the Company for spending CSR expenses. However thecompany has incurred Rs.

1250719/- as CSR expenditure which may be set-off in succeeding financial years asper the Companies (Corporate Social Responsibility) Rules 2014 as amended from time totime.

The CSR policy of the company has been placed on the Company's website at web-linkwww.owmnahar.com/ nahar_ie/pdf/CSR_Policy_NIEL.pdf. The report on CSR activities asrequired under the Companies (Corporate Social Responsibility) Rules 2014 including briefoutline of the Company's CSR policy is annexed herewith marked as Annexure-B.

23. NOMINATION & REMUNERATION POLICY

The Board has on the recommendation of Nomination and Remuneration Committee framed apolicy for appointment and remuneration of Directors Key Managerial Personnel and SeniorManagement of the Company. The policy also lays down criteria for determiningqualifications positive attributes independence of directors and other matters providedunder section 178 of the Companies Act 2013. The Nomination and Remuneration policy ofthe company is elaborated in the Corporate Governance Report forming an integral part ofthis report.

24. AUDITORS

i) Statutory Audit & Auditor's Report

The shareholders at their 33rd Annual General Meeting (AGM) held on 26th September2017 had approved the appointment of M/s. K.R.Aggarwal & Associates CharteredAccountants (Firm Registration No. 030088N) as statutory auditors of the Company to holdoffice from the conclusion of 33rd AGM up to the conclusion of 38th AGM to be held in theyear 2022. The Auditors Report on the accounts of the Company for the financial year2020-21 is self-explanatory and requires no comments.

ii) Cost Auditor & Cost Audit Report

Pursuant to Section 148 of the Companies Act 2013 read with Companies (Cost Records& Audit) Amendment Rules 2014 the cost audit records maintained by the Company inrespect of its textiles and sugar segments are required to be audited. The Company hasmaintained accounts and cost records with respect to Textile and Sugar business asspecified by the Government under Section 148(1) of the Companies Act 2013. The costaudit report for the financial year 2019-20 was filed with the Ministry of CorporateAffairs on 29.01.2021. Your Directors had on the recommendation of the Audit Committeeappointed M/s. R.R. & Co. Cost Accountants Ludhiana to audit the cost accounts ofthe Company for the financial year 2021-22. As required under the Companies Act 2013 theremuneration payable to the cost auditor is required to be placed before the Members in ageneral meeting for their ratification. Accordingly a resolution seeking members'ratification for the remuneration payable to M/s. R.R. & Co. Cost Accountants isincluded in the Notice convening the Annual General Meeting.

iii) Secretarial Audit & Secretarial Audit Report

Pursuant to the provisions of Section 204 of the Companies Act 2013 and rules madethere under the Company had appointed M/s. P.S.Bathla & Associates a firm of CompanySecretaries in Practice (C.P. No. 2585) to undertake the Secretarial Audit of the Company.The Secretarial Audit Report is attached as Annexure-C and forms an integral partof this Report. There is no secretarial audit qualification for the year under review.

25. KEY MANAGERIAL PERSONNEL

As per the provisions of Section 203 of the Companies Act 2013 Sh. Kamal Oswal ViceChairman-cum-Managing Director Sh. Bharat Bhushan Gupta Chief Financial Officer and Sh.Mukesh Sood Company Secretary are the Key Managerial Personnel of the Company.

26. PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 read with Rule 5(1) 5(2) and 5(3) ofCompanies (Appointment & Remuneration of Managerial Personnel) Rules 2014 (as amendedup to date) in respect of employees of the Company forming part of the Directors' Reportfor the year ended 31st March 2021 is given in Annexure-D to this Report.

27. CONSERVATION OF ENERGY TECHNOLOGY

ABSORPTION FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo stipulated under Section 134(3)(m) of the Companies Act 2013 read withRule 8(3) of Companies (Accounts) Rules 2014 is annexed herewith as Annexure-E.

28. CORPORATE GOVERNANCE REPORT

Your Company continues to follow the principles of good corporate governance. Thecorporate governance report along with Auditor's certificate regarding compliance of theconditions of corporate governance as stipulated in SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 confirming compliance is annexed herewith as Annexure-Fand forms part of this Report.

29. MANAGEMENT DISCUSSION AND ANALYSIS

REPORT

Management Discussion and Analysis Report for the year under review as stipulated underthe Regulation 34(2)(e) of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 is annexed herewith as Annexure-G and forms part of this Report.

30. ASSOCIATE / CONSOLIDATED FINANCIAL

STATEMENT

As on 31st March 2021 the company had four Associate Companies i.e. Cotton CountyRetail Limited Atam Vallabh Financiers Limited Vardhman Investment Limited and J LGrowth Fund Limited the accounts of which have been consolidated in accordance with theapplicable Accounting Standards (Ind AS) and pursuant to Section 129(3) of the CompaniesAct 2013 read with Companies (Accounts) Rules 2014. The audited consolidated financialstatements are provided in the Annual Report. A statement containing salient features offinancial statements of associate companies in Form AOC-1 is annexed with the financialstatements. The financials of the associate companies is given below:-

i) Cotton County Retail Limited (CCRL)

The company holds 47.66% equity shares of CCRL. During the year the revenue fromoperations of the company was Rs. 79.87 lacs as compared to Rs. 731.92 lacs in theprevious year. The company has incurred a net loss of Rs. 155.74 lacs as against a netloss of Rs. 32.14 lacs in the previous year.

ii) Atam Vallabh Financiers Limited (AVFL)

The company holds 36.85% equity shares of AVFL. During the year the revenue fromoperations of the company was Rs. 6.66 lacs as compared to Rs. 2.77 lacs in the previousyear. The company has earned a net profit of Rs. 4.83 lacs as against a net loss of Rs.35.65 lacs in the previous year.

iii) Vardhman Investment Limited (VIL)

The company holds 47.17% equity shares of VIL. During the year the revenue fromoperations of the company was Rs. 7.96 lacs as compared to Rs. 4.46 lacs in the previousyear. The company has earned a net profit of Rs. 5.67 lacs as against a net profit of Rs.2.47 lacs in the previous year.

iv) J L Growth Fund Limited (JLGF)

The company holds 41.10% equity shares of JLGF. During the year the revenue fromoperations of the company was Rs. 211.54 lacs as compared to Rs. 59.98 lacs in theprevious year. The company has earned a net profit of Rs. 282.63 lacs as against a netprofit of Rs. 62.45 lacs in the previous year.

31. DISCLOSURE AS PER SEXUAL HARASSMENT OF

WOMEN AT WORKPLACE (PREVENTION PROHIBITION AND REDRESSAL) ACT 2013

The company is committed to create and maintain an atmosphere in which employees canwork together without any fear of exploitation. The Company has complied with theprovisions relating to the constitution of Internal Complaints Committee under the SexualHarassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013. Duringthe financial year 2020-21 the company has not received any complaint on sexual harassmentand hence no complaint remains pending as on 31st March 2021.

32. INDUSTRIAL RELATIONS

Industrial relations throughout the year continued to be very cordial and satisfactory.

33. ACKNOWLEDGEMENT

Your directors would like to express their appreciation for the assistance andco-operation received from financial institutions banks and shareholders. They also placeon record their appreciation for the co-operation of employees at all levels.

For and on behalf of the Board of Directors
Place: Ludhiana Jawahar Lal Oswal
Date : 9th August 2021 (DIN: 00463866)
Chairman

.