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National Fittings Ltd.

BSE: 531289 Sector: Engineering
NSE: N.A. ISIN Code: INE643C01015
BSE 00:00 | 20 Feb 29.00 -0.45
(-1.53%)
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29.45

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31.25

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29.00

NSE 05:30 | 01 Jan National Fittings Ltd
OPEN 29.45
PREVIOUS CLOSE 29.45
VOLUME 1541
52-Week high 137.00
52-Week low 23.10
P/E 10.86
Mkt Cap.(Rs cr) 26
Buy Price 29.00
Buy Qty 651.00
Sell Price 30.00
Sell Qty 755.00
OPEN 29.45
CLOSE 29.45
VOLUME 1541
52-Week high 137.00
52-Week low 23.10
P/E 10.86
Mkt Cap.(Rs cr) 26
Buy Price 29.00
Buy Qty 651.00
Sell Price 30.00
Sell Qty 755.00

National Fittings Ltd. (NATIONALFITTING) - Director Report

Company director report

TO THE SHAREHOLDERS

Your Directors have pleasure in presenting the Twenty Fifth Annual Report together withthe Audited Balance Sheet & Profit and Loss Account for the year ended 31.03.2018.

FINANCIAL RESULTS

The operating results for the year 2017-2018 are given below :

(Rs in Lakhs)
Profit before Interest and Depreciation and Other adjustments 1658.53
Less: Interest 168.00
Depreciation 268.54
436.54
Net Profit before Tax 1221.99
Provision for Tax :
Current Tax 380.30
Deferred Tax (income) / expenses 50.28
MAT credit utilized 16.37
446.95
Net Profit after Tax 775.04
Amount brought forward from previous year 1973.73
Amount available for appropriation 2748.77
Appropriations
Add : Transfer from Revaluation Reserve 1.30
Les : Interim and Final Dividend on Equity Shares (181.66)
Dividend Distribution Tax (36.98)
Surplus carried over to Balance Sheet 2531.43

FINANCIAL PERFORMANCE:

The Financial Statements for the year ended March 31 2018 have been prepared under IndAS (Indian Accounting Standards) for the firsttime by the Company. To ensure comparativefigures the financial statements for the year ended March 31 2017 have been restated inaccordance with Ind AS. Members aware a Scheme of amalgamation with appointed date being1st April 2017 whereby the Holding Company Interfit India Limited and 100% Wholly OwnedSubsidiary Company Merit Industries Limited were to be merged was submitted for sanctionwith the Hon'ble National Company Law Board Chennai Bench pending sanction the Companycould not circulate the audited merged accounts earlier. Now since the Scheme ofAmalgamation has been approved by the Hon'ble National Company Law Board Chennai Bench bytheir order dated 25th March 2019 with effective date being 29th March 2019 the dulyaudited merged accounts are being presented before the members for their approval. Yourdirectors confirm that the directives of Hon'ble National Company Law Tribunal ChennaiBench have complied with.

ALLOTMENT OF SHARES AND CHANGES IN CAPITAL STRUCTURE

INCREASE IN AUTHORIZED SHARE CAPITAL

The Authorised Share Capital of the Company has increased from Rs. 13.75 Crorescomprising of 8750000 equity shares of Rs. 10/- each and 500000 preference shares ofRs. 100/- each to Rs. 29.50 Crores comprising of 24500000 equity shares of Rs. 10/-each and 500000 preference shares of Rs. 100/- each by virtue of the Order on Scheme ofAmalgamation passed by Hon'ble National Company Law Tribunal Chennai Bench.

INCREASE IN PAID-UP SHARE CAPITAL

Pursuant to the Order on Scheme of Amalgamation passed by Hon'ble National Company LawTribunal Chennai Bench 3 (three) equity shares of Rs. 10/- each of the Company shallhave to be allotted for every 2 (two) equity shares of Rs. 10/- each held by theShareholders of Interfit Company - 1. Consequently the paid-up share capital of theCompany shall increase from 8320000 equity shares of Rs. 10/- each to 9083182 equityshares of Rs. 10/- each valuing Rs 90831820/-Pursuant to the Order on Scheme ofAmalgamation passed by Hon'ble National Company Law Tribunal Chennai Bench 1 (one) 9%Non-Convertible Non-Cumulative Redeemable Preference Share of Rs. 100/- each of theCompany shall have to be allotted for every 1 (one) preference share of Rs. 100/- eachheld by the Preference Shareholders of Merit Industries Limited the Transferor Company-2. Consequently the paid-up preference share capital of the Company shall increase to Rs.40000000.

The total paid up capital of the Company is Rs 130831820/-

FINANCIAL PERFORMANCE:

The Company's gross income for the financial year ended 31st March 2018 was Rs.6467.03 lacs to Rs.6960.83 lacs in the previous year. The profit before tax for theCompany is Rs. 1221.99 lacs as against Rs. 1596.03 lacs in the previous year. Thedepreciation for the year is Rs.268.54 lacs compared to Rs.104.95 lacs in the previousyear. After providing Taxation the Company's net profit stands at Rs.775.04 lacs againstRs.1014.45 lacs in the previous year.

An amount of Rs 2531.43 lacs is to be carried over to Balance Sheet after appropriationof Dividend on Equity Shares including Dividend Tax.

The Net worth of the company is at Rs.4716.06 lacs as on 31.03.2018 as againstRs.2772.61 lacs in the previous year.

DIVIDEND

The Company has not declared any interim dividend during the year under review and isnot proposing to declare any final dividend. Further the Company has not transferred anyamount to reserves during the year.

PERFORMANCE:

The Company continued to manufacture and market high quality piping products meetinginternational standards. The Sales was increased in volume term; but both sales andmargins were lowered in value term due to price reduction to with stand the Chinesecompetition and subdued exchange rate conditions. The Company hopes to improve the marginsduring the current year unless any changes In the international scenario affect theCompany results and also considering favorable exchange rates.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT TRENDS & DEVELOPMENT

Domestic market has been improving for the products manufactured by our Company. Theexport market has also showing some strength amidst the competition by China.

We hope to generate sizable volume of business this year and the new products developedand likely to be introduced during the second half of the year will also help us to havestrong domestic market revenue.

Material Developments during the year under review that occurred between end of thefinancial year and date of this report - Scheme of Amalgamation of Interfit India Limitedand Merit Industries

Limited with the Company

The Scheme of Amalgamation of Interfit India Limited and Merit Industries Limited withthe Company which was initiated in January 2018 reached the major stages duringSeptember 2018. Taking into consideration this scenario the Board decided to apply forextension of time to hold the Twenty Fifth Annual General Meeting to the Registrar ofCompanies so that the merged accounts can be presented for approval of shareholders. TheRegistrar of Companies granted an extension of three months i.e. till 31st December 2018to hold the Twenty Fifth Annual General Meeting. The meeting of shareholders of theCompany was convened on 5th December 2018 as directed by the Hon'ble National Company LawTribunal Chennai Bench for approving the scheme and the scheme was duly approved with therequisite majority. More than 90% of the value of the unsecured creditors of the Companygave their consent for the amalgamation and so the meeting of unsecured creditors of theCompany has been dispensed with.

Based on the approvals of share holders and creditors the petitions by the Companieswere filed before the Hon'ble National Company Law Tribunal Chennai on 14.01.2019. TheScheme was sanctioned by Hon'ble National Company Law Tribunal Chennai by an orderdated 25th March 2019 and came into effect on 29th March 2019.

DIRECTORS

Mr M Loganathan Director resigned from Directorship on 13.12.2017 due to hisprofessional pre-occupation. Mrs Panath Anitha Whole Time Director who retires byrotation and being eligible offered herself for reappointment.

Mr Arjunaraj Dhananjyan was appointed as an Additional and Independent Director witheffect from 13.12.2017 Mr Chenniappan Selvakumar was appointed as an Additional andIndependent Director with effect from 13.12.2017

KEY MANAGEMENT PERSONNEL

Mr. A.V. Palaniswamy Managing Director Mrs Panath Anitha Whole Time Director MrJayaram Govindarajan Whole Time Director Mr. J. Saravanan Chief Financial OfficerCompany Secretary of the Company are the Key Management Personnel as per the provisions ofthe Companies Act and rules made there under.

Mrs Panath Anitha was re-appointed as the Whole Time Director with effect from14.02.2018 Mr A V Palaniswamy was re-appointed as the Managing Director with effect from01.01.2019

SUBSIDIARIES JOINT VENTURES AND ASSOCIATE COMPANIES

The company does not have any Subsidiary Joint Venture or Associate Company.

Pursuant to the provisions of Section 129(3) of the Act a statement containing salientfeatures of the Financial Statements of your Company's Subsidiaries Associates and JointVentures in Form AOC-1 is attached to the Financial Statements of your Company as Annexure1.

Pursuant to the provisions of Section 136 of the Act the Financial Statements of yourCompany Financial Statements along with relevant documents are available on the websiteof your Company.

DIRECTORS' RESPONSIBILITY STATEMENT

Your Directors further report that

(i) in the preparation of annual accounts the applicable accounting standards have beenfollowed and there were no material departures;

(ii) the accounting policies selected have been applied consistently prudent judgmentsand estimates have been made to give a true and fair view of the state of affairs of thecompany as at 31st March 2018 and of the Profit of the company and the cash flow

(iii) they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the company and for preventing and detecting fraud and otherirregularities;

(iv) the annual accounts have been prepared 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 Internal financial control means the policies and procedures adopted by theCompany for ensuring the orderly and efficient conduct of its business including adherenceto Company's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information.

(vi) the directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

CODE OF CONDUCT

All Directors and senior management of the Company have affirmed Compliance with theCode of Conduct of National Fittings Limited for the financial Year ended 31st March 2018.

DECLARATION OF INDEPENDENT DIRECTORS

The Independent Directors have submitted their disclosures to the Board that theyfulfill all the requirements as stipulated in Section 149(6) of the Companies Act 2013 soas to qualify themselves to be appointed as Independent Directors under the provisions ofthe Companies Act 2013 and the relevant rules.

NUMBER OF BOARD MEETINGS

During the year 7 (Seven) Board Meetings were convened and held the details of whichare given in Corporate Governance Report.

POLICY ON DIRECTOR'S APPOINTMENT AND REMUNERATION INCLUDING CRITERIA FOR DETERMININGQUALIFICATIONS POSITIVE ATTRIBUTES INDEPENDENCE OF A DIRECTOR KEY MANAGEMENT PERSONNELAND OTHER EMPLOYEES

The company shall have such person on the Board who complies with the requirements ofthe Companies Act 2013. Directors/KMPs shall be persons of sound integrity and honestyapart from knowledge experience etc in the respective fields.

Composition of the Board shall be in compliance with the requirements of the CompaniesAct 2013. No person less than the age of 21 years shall be appointed as the director ofthe Board.

The Executive Directors are paid with remuneration as approved by the members but arenot paid sitting fees.

Independent directors are not entitled for ESOPs Managing Director Whole TimeDirector Company Secretary and Chief Financial Officer shall be the Key ManagementPersonnel (KMPs) of the Company.

All persons who are Directors KMPs members of Senior Management and all the employeesshall be abide by the code of conduct.

MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWNPERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS

1. Nomination and Remuneration Committee of the Board prepared and sent through itsChairman Draft feedback form for evaluation of the Board and independent directors.

2. Independent Directors at a meeting of themselves considered and evaluated theBoard's performance performance of the Chairman and other non-independent Directors.

3. The Board subsequently evaluated performance of the Board the Committees andIndependent Directors.

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIESACT 2013

Investments made by the Company under Section 186 of the Companies Act 2013 during theyear under review are given in para 2.2 of Notes forming part of the financial statements.

There were no loans guarantees made by the Company under Section 186 of the CompaniesAct 2013 during the year.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES

All the related party transactions that were entered during the financial year were inthe ordinary course of the business of the Company.

There were no materially significant entered by the Company with its promotersDirectors Key Management Personnel and other persons which may have a potentialconflictwith the interest of the Company.

All the related party transactions are placed before the Audit Committee for approval.For the business transactions with the related parties which are of repetitive nature aswell as for the normal business transactions which cannot be foreseen prior omnibusapproval from the Audit Committee are obtained and accordingly required disclosures aremade to the Committee on quarterly basis in terms of the approval of the Committee.

The Policy on materiality of related party transactions and also on dealing with therelated party transactions as approved by the Audit Committee and Board of Directors isuploaded on the Company's web-site and the link for the same ishttps://www.nationalfitting.com.

The particulars of Contracts or Arrangements with the related parties made underSection 188 of the Companies Act 2013 are furnished in Annexure 2 and are attachedto this report.

SHARES

There was no issue of fresh equity shares during the financial year. No Bonus Shareswere issued.

The Company has not issued any Sweat Equity Shares and not provided any Employee StockOption Scheme. The Company has not bought back any of its securities during the year underreview.

INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY

The Company has implemented adequate procedures and internal controls which providereasonable assurance regarding reliability of financial reporting and preparation offinancial statements.

The Company also assures that internal controls are operating effectively.

MATERIAL CHANGES AND COMMITMENTS

There were no material changes and commitments affecting the financial position of thecompany which have occurred between the end of the financial year and the date of thereport.

RISK MANAGEMENT POLICY

Potential risk for the business of the Company and steps to be adopted by the Companyto handle the risks has been reviewed regularly. Following are the few risks and themethods to be adopted by the Company to handle them.

1) Market Risk

Input costs have increased nearly 20% resulting in the total cost increase by 10-12%.Due to the increased competition from China and other companies using China as amanufacturing base has resulted in reduction of selling price nearly 20% from last yearprices. Cost increase and the reduction in selling price has eroded our marginsubstantially. Export market is becoming more and more unviable.

Company is taking effective steps to increase our domestic market share by appointingdistribution network and regional sales personnel.

2) Exchange Risk

Indian currency did not depreciate enough to offset the input cost increase and to meetthe low cost products from China in the international markets. China has depreciated theircurrency nearly 10% during the last six months.

3) Power

Company has been buying wind power for nearly 10 months of the year and has resulted inreduction of power cost in total cost of production. Grid power supply has improvedsubstantially.

4) Manpower Requirement

Company continuous to rely on expat labour from northern belt for nearly 70% of workforce due to non-availability of local labour in production areas. Cost of manpower hasnearly doubled in the last one year. Company has installed more automated machineoperations to reduce manpower.

5) Product Development

To meet the cost of production Company has taken steps to re-design the products byoptimizing the weight without scarifying performance and has resulted in input costreduction.

Company has taken steps to diversify the product base into pumps for domestic andinternational market requirements. Design will be attractive enough to get a acceptableshare of the domestic and export market. Developed models are under testing and will beinto production line during the current year. Company will provide the major componentslike casting in Iron and Stainless Steel. Machining and assembly will be done by outsidesources.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

A Board level Committee of CSR has been constituted and the Board has adopted a CSRPolicy as recommended by the Committee.

The Company completed the construction of a school building at a Government MunicipalSchool at Madhapur village at a cost of Rs 34.56 lacs.

The Annual Report on the Company's CSR activities is furnished in Annexure 3 andattached to this report

ANNUAL RETURN

The extracts of Annual Return pursuant to the provisions of Section 92 read with Rule12 of the Companies (Management and administration) Rules 2014 is furnished in Annexure4 and is attached to this Report.

LEGAL COMPLIANCE

There were no significant and material orders passed by the regulators or courts ortribunals impacting the going concern status and company's operations in future.

CORPORATE GOVERNANCE

Your Company is in compliance with the Corporate Governance guidelines as laid out inthe Securities Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015 (SEBI Listing Regulations). All the Directors and the Senior Managementpersonnel have affirmed in writing their compliance with and adherence to the Code ofConduct adopted by the Company.

The annual report of the Company contains a certificate by the Chief Executive Officerand Managing Director in terms of SEBI Listing Regulations on the compliance declarationsreceived from the Directors and the Senior Management personnel. The Statutory Auditors ofthe Company have examined the requirements of Corporate Governance with reference to SEBIListing Regulations and have certified the compliance as required under SEBI ListingRegulations. The Certificate in this regard is attached as Annexure 5 to thisReport. The Chief Executive Officer / Chief Financial Officer (CEO/CFO) certification asrequired under SEBI Listing Regulations is attached as Annexure 6 to this Report.Related Party disclosures/transactions are detailed in Note 2.29 of the Notes to thefinancial statement.

SEXUAL HARASHMENT

Company has a policy on prohibition prevention and redressal of Sexual Harassment ofwomen at work place and matters connected therewith. During the year ended 31st March2018 no complaint was received under the policy.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

The Company has unclaimed dividend amounting to Rs. 8727590/-

Pursuant to the provisions of Section 124 (5) of the Companies Act 2013 unclaimeddividend of Rs 193280/ which remained unpaid or unclaimed for a period of 7 years havebeen transferred by the Company to the Investor Education and Protection Fund for thisfinancial year..

The details of the unpaid and unclaimed dividend lying with the Company has beenuploaded on the website of Ministry of Company Affairs.

Pursuant to the provisions of Section 124 (6) of the Companies Act 2013 78780 equityshares accompanying dividend which remained unpaid or unclaimed for a period of 7 yearshave been transferred by the Company to the Investor Education and Protection Fund in thisfinancial year.

DEPOSITS

The Company has neither accepted nor renewed any deposits during the financial year.

PARTICULARS OF EMPLOYEES

The information required under Section 197 of the Act read with rule 5(1) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 are givenbelow:

(i) & (ii) The ratio of the remuneration of each Director to the median and meanremuneration of the employees of the company for the financial year and the percentageincrease in remuneration of each director Chief Financial Officer Chief ExecutiveOfficer financial year:

Name of Directors / Key Management Personnel Ratio to Median Remuneration % Increase / Decrease in Remuneration
(times)
Mr A V Palaniswamy Managing Director 12.25 -3.77
Mr Jayaram Govindarajan 6.25 160
Mr M Loganathan 0.12 0.00
Mr. Dhananjayan 0.07 100
Mr. Selvakumar 0.14 100
Mr R Alagar 1.08 25
Mrs A PanathAnitha 1.77 17.36
Mr J Saravanan (Chief Financial Officer) 3.48 12.75
Mr S Aravinthan (Company Secretary) 2.84 12.87

iii) The percentage increase in the median remuneration of employees in the financialiv) The number of permanent employees on the rolls of the Company: 111 v) Explanation onthe relationship between average increase in remuneration and company performance:

On an average employees received an increase of 19% during the financial year 2017-18.The remuneration components include a fair proportion of fixed and variable pay. Theincrease in remuneration is in line with the market. In order to ensure that remunerationreflects Company performance the performance pay is also linked to organizationperformance apart from an individual's performance. vi) Comparison of the remuneration ofthe key managerial personnel against the performance of the Company:

(In Lacs)
Aggregate remuneration of key managerial personnel (KMP) in FY 2017-18 5535100
Revenue 619462042
Remuneration of KMPs (as % of revenue) 0.89
Profit before Tax (PBT) 116205836
Remuneration of KMP (as % of PBT) 4.76

vii) Variations in the market capitalization of the Company price earnings ratio as atthe closing date of the current financial year and previous financial year:

(In Lacs)
Particulars As at 31.03.2018 As at 31.03.2017 % Increase
Closing price of share at BSE (Rs.) 201.8 240 -15.917
Market Capitalisation (Rs.) 16789.76 19968 -15.917
Price Earnings ratio 22.60 19.69 14.78
Net worth 3315.50 2772.60 19.58

viii) Average percentile increase already made in the salaries of employees other thanthe managerial personnel in the last financial year and its comparison with the percentileincrease in the managerial remuneration and justification thereof and point out if thereare any exceptional circumstances for increase in the managerial remuneration: The averageincrease in salaries of employees other than managerial personnel in 2017-18 was 15.28%.Percentage increase in the managerial remuneration for the year was 18.14% ix) Comparisonof the each remuneration of the Key Managerial Personnel against the performance of thecompany:

Mr. A V Palaniswamy Mr.Jayaram Govindarajan Mrs. A Panath Anitha Mr. J Saravanan Mr. S Aravinthan
Managing Director Whole Time Director Woman Director Chief Financial Officer Company Secretary
Remuneration in FY2017-18 2550000 1300000 368100 725000 592000
Revenue 619462042 619462042 619462042 619462042 619462042
Remuneration as % of Revenue 0.41 0.21 0.06 0.12 0.10
Profit before Tax (PBT) 116205836 116205836 116205836 116205836 116205836
Remuneration (as % of PBT) 2.19 1.12 0.32 0.62 0.51

x) The key parameters for any variable component of remuneration availed by thedirectors: There are no variable components of remuneration paid to the directors.

xi) The ratio of the remuneration of the highest paid director to that of the employeeswho are not directors but receive remuneration in excess of the highest paid directorduring the year; and Nil remuneration policy of the company.

xii) Affirmation The Company affirms that remuneration is as per the remunerationpolicy of the Company.

The information required under Section 197 of the Act read with Rule 5(2) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2015 are givenbelow:

During the period under review there was no employee drawing remuneration in excess ofthe limits prescribed under Section 197 of the Companies Act 2013 and Rule 5(2) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014.

STATUTORY AUDITORS

M/s V Krish & Associates Chartered Accountants Chennai were appointed asStatutory Auditors of the Company from the conclusion of the 24th Annual General Meetingheld on 12.08.2017 until the conclusion of 25th Annual General Meeting.

Auditors for the appointment of them as statutory The Company has received acertificate auditors and to the effect that if they are appointed it would be inaccordance with the provisions of Section 141 of the Companies Act 2013.

Their appointment and payment of remuneration are to be confirmed and approved in theensuing Annual General Meeting.

Further the report of the Statutory Auditors for financial year ended 31st March 2018is given along with the Financial Statements which is annexed to and forms part of thisreport. The said report has a matter of emphasis which does not require any explanationfrom the Directors.

The unmerged financial statements of the Company for the year ended 31st March 2018were earlier approved by the Board of Directors at its meeting held on 30th May 2018.Those unmerged financial statements have been updated by the Company so as to give effectto the scheme of amalgamation approved by the Hon'ble National Company Law TribunalChennai Benchvide its order dated 25th March 2019 filed by the Company with theRegistrar of Companies on 29th March 2019 with effect from appointed date i.e 1stApril 2017. As a result fresh audit report has been issued on the merged financialstatements.

SECRETARIAL AUDIT REPORT

Pursuant to the requirements of the Companies Act 2013 the Company has appointed Mr MR L Narasimha B.Com FCS Practicing Company Secretary (Cop No: 799) as the Secretarial

Auditor for the financial year 2017-18 whose report on 30th March 2019 is attachedseparately to this report. Annexure 7.

EXPLANATION OR COMMENTS OR QUALIFICATIONS RESERVATIONS OR ADVERSE REMARKS ORDISCLAIMERS MADE BY THE AUDITORS AND THE PRACTICING COMPANY SECRETARY IN THEIR REPORTS

There were no qualifications reservations or adverse remarks made either by theAuditors or by the Practicing Company Secretary in their respective reports.

CONSERVATION OF ENERGY

a) Company has replaced most of the less efficient machines with newer and less powerconsuming equipments in all the areas of manufacturing.

b) Long term contract has been executed with wind energy suppliers there by reducingcosts and less dependency on fossil fuel energy. Nearly 80% of the energy requirement willbe from wind energy.

c) Company is also exploring the economic viability of installing its own wind mills toreduce cost of power.

TECHNOLOGY ABSORPTION INDUSTRIAL RELATIONS

Company has taken steps to introduce newer technology machines in production andinspection areas to increase productivity and reduce rejection levels.

Computer generated models for tooling data collection and manufacturing processes havebeen introduced to improve productivity.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Foreign exchange inflow (actual) : Rs. 519752059/-

Foreign exchange used (actual) : Rs. 7186755/-

INDUSTRIAL RELATIONS

Relationship with the employees/labor was cordial during the year under review.

ACKNOWLEDGEMENT

Your Directors take this opportunity to thank M/s. Bank of India for the supportextended during the period. Your Directors also wish to thank all the suppliersemployees Government Departments/Agencies and others for their valuable contribution andassistance during the year.

FOR AND ON BEHALF OF THE BOARD

Place : Coimbatore Sd/- A.V. PALANISWAMY Sd/- JAYARAM GOVINDARAJAN
Date : 30.03.2019 DIN No. 01817391 DIN No. 02178416
Managing Director Director