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Permanent Magnets Ltd.

BSE: 504132 Sector: Engineering
NSE: PERMAGNET ISIN Code: INE418E01018
BSE 00:00 | 12 Aug 354.50 0.65
(0.18%)
OPEN

355.00

HIGH

359.00

LOW

350.00

NSE 05:30 | 01 Jan Permanent Magnets Ltd
OPEN 355.00
PREVIOUS CLOSE 353.85
VOLUME 5718
52-Week high 480.00
52-Week low 260.00
P/E 16.50
Mkt Cap.(Rs cr) 305
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 355.00
CLOSE 353.85
VOLUME 5718
52-Week high 480.00
52-Week low 260.00
P/E 16.50
Mkt Cap.(Rs cr) 305
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Permanent Magnets Ltd. (PERMAGNET) - Director Report

Company director report

To

The Members

PERMANENT MAGNETS LIMITED

Your Directors are pleased to present the 60th Annual Report on theoperational and business performance of the Company together with the Audited FinancialStatements for the Financial Year ended March 31 2021.

FINANCIAL HIGHLIGHTS:

(Rs. In Lakhs)

Particulars 31/03/2021 31/03/2020
Sales 11667.93 10656.05
Other Income 88.58 270.24
Total Income 11756.51 10926.29
PBIDT & Extra Ordinary Items 2613.48 2325.05
Interest 102.10 132.88
Depreciation 329.29 298.71
Profit before Extra Ordinary Items & tax 2182.09 1893.46
Extra Ordinary Items - -
Profit before Tax 2182.09 1893.46
Current Tax 561.06 484.79
Deferred Tax (6.46) (23.81)
Short /Excess provision of earlier years 13.69 0.52
Profit/(Loss) for the year 1613.79 1431.97
Other Comprehensive Income 1.59 (3.51)
Total Comprehensive Income for the period (Comprising Profit (Loss) and Other Comprehensive Income for the period) 1615.38 1428.46

1. COMPANY'S PERFORMANCE:

Your Company's total revenue during the year under review was Rs. 11756.51 Lakhs ascompared to Rs. 10926.29 Lakhs in the previous year. The Profit before Tax for the year2020-21 was Rs. 2182.09 Lakhs as against Rs. 1893.46 Lakhs in the previous year. Profitafter Tax in 2020-21 stood at Rs. 1615.38 Lakhs as against Rs. 1428.46 Lakhs in theprevious year.

2. COVID-19 IMPACT :

The outbreak of the deadly COVID-19 virus and the ensuing lockdown imposed across thecountry affected business operations. The Company had resumed operations since last weekof April 2020 / first week of May 2020 in compliance with the guidelines issued byrespective authorities and is continuing to take adequate precautions for safety and wellbeing of its employees. COVID-19 is an unprecedented challenge. The lockdown gave Indiatime to make a concerted effort to flatten the outbreak curve.

India is currently experiencing a massive second wave of Covid-19 infections. Howeverwe expect no major changes in the economic activity as the nation is preparing to face thePandemic with vaccines and preparedness.

3. DIVIDEND :

Your Directors have recommended a final dividend of Re. 1/- (Rupee One) per share forfinancial year 2020-21 (viz 10%) on its paid up equity Share capital as may prevail onthe record date fixed for the purpose of dividend eligibility of the members subject toapproval of members in the ensuing Annual General Meeting of the Company..

4. CHANGE IN THE NATURE OF THE BUSINESS:

There were no changes in the nature of business during the year under review asprescribed in Rule 8 of the Companies (Accounts) Rules 2014.

5. TRANSFER TO RESERVE:

The Company has not transferred any amount to reserves in the current financial year.

6. DEPOSITS:

The company has not accepted any deposits from the public during the year pursuant tothe provisions of section 73 of the Companies Act 2013 and the Companies (Acceptance ofDeposits) Rules 2014 or under Chapter V of the Companies Act 2013 (the Act).

7. LISTING:

The shares of the Company are listed on "BSE Limited" at Mumbai. The Companyhas paid the applicable listing fees to the Stock Exchange till date.

8. DIRECTORS AND KEY MANAGERIAL PERSONNEL:

Pursuant to the provisions of Section 152(6) of the Act Shri. Mukul Taparia (DIN:00318434) retires by rotation at the ensuing Annual General Meeting and being eligiblehas offered himself for re-appointment. The Board recommends his reappointment.

Brief Profile of Shri. Mukul Taparia is provided for reference of the shareholders isas under.

Shri. Mukul Taparia has done his Bachelors in Computer Science Diploma in BusinessEngineering and joined the Company as an Non-executive Director in August 2014. He isholding 971872 shares of the Company.

None of the Directors Key Managerial Personnel and their relatives except Shri. MukulTaparia Shri. Sharad Taparia Managing Director and Smt. Sunaina Taparia Director of theCompany are interested in the said resolution.

In terms of Section 203 of the Act the following are the Key Managerial Personnel ofthe Company:

- Shri. Sharad Taparia Managing Director

- Shri. Sukhmal Jain CFO & Senior Vice President - Finance

- Smt. Rachana Rane Company Secretary

All the Independent Directors of the Company have given their declarations to theCompany under Section 149(7) of the Act that they meet the criteria of independence asprovided under Section 149(6) of the Act and Regulation 16(1)(b) of Securities andExchange Board of India (Listing Obligations and Disclosure Requirements) Regulations2015 ('the Listing Regulations'). In the opinion of the Board they fulfill the conditionsof independence as specified in the Act and the Listing Regulations and are independent ofthe management.

9. DIRECTORS RESPONSIBILITY STATEMENT:

Accordingly pursuant to Section 134(3)(c) and 134(5) of the Act the Board ofDirectors to the best of their knowledge and ability confirm :

a) that in the preparation of the annual financial statements for the year ended March31 2021 the applicable accounting standards have been followed along with properexplanation relating to material departures if any;

b) that such accounting policies as mentioned in Notes to the Financial Statements havebeen selected and applied consistently and judgments and estimates have been made that arereasonable and prudent so as to give a true and fair view of the state of affairs of theCompany as at March 31 2021 and of the profit of the Company for the year ended on thatdate;

c) that proper and sufficient care has been taken 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;

d) that the annual financial statements have been prepared on a going concern basis;

e) that proper internal financial controls were in place and that the financialcontrols were adequate and were operating effectively.

f) that systems to ensure compliance with the provisions of all applicable laws were inplace and were adequate and operating effectively.

10. CORPORATE GOVERNANCE:

Your Company is in compliance with all applicable provisions of Corporate Governance asstipulated under Chapter IV of the Listing Regulations. A detailed report on CorporateGovernance as required under the Listing Regulations is provided in a separate section andforms part of the Annual Report. Certificate from the Practicing Company Secretaryregarding compliance with the conditions stipulated in the Listing Regulations forms partof the Corporate Governance Report.

11. SUBSIDIARIES JOINT VENTURES AND ASSOCIATE COMPANIES:

Since the Company has no subsidiaries Joint Ventures or associate companies provisionsof section 129(3) of the Companies Act 2013 is not applicable. As the Company does nothave any subsidiaries associates or joint venture companies as per the Companies Act2013 no report on the performance of such Companies is provided.

12. AUDITORS:

STATUTORY AUDITORS

In terms of provisions of the Companies Act 2013 at the 56th AnnualGeneral Meeting (which was held on September 28 2017) of the Company Ramanand &Associates Chartered Accountants (Firm Registration No. 117776W) was appointed asstatutory auditors of the Company to hold the office from the conclusion of the 56thannual general meeting till the conclusion of 61st annual general meeting to beheld in the year 2022. They have confirmed that they are not disqualified from continuingas auditors of the company. The observations made in the Auditors Report areself-explanatory.

SECRETARIAL AUDITOR

Pursuant to the provisions of Section 204 of the Act and the rules made there underthe Company had appointed M/s. Arun Dash & Associates a firm of Company Secretariesto undertake the Secretarial Audit of the Company for the year ended March 31 2021. TheSecretarial Audit Report issued in this regard is annexed as "AnnexureA".The observations made in the Secretarial Audit Report are self-explanatory.

INTERNAL AUDITORS

M/S. G S Nayak & Co. Chartered Accountants performs the duties of internalauditors of the company and their report is reviewed by the audit committee from time totime.

13. EXPLANATION ON AUDITOR'S COMMENT:

The Board have to state as under with reference to the Auditor's certain remarks ascontained in the annexure to the Auditor's Report:

a) With reference to para VII (b) of the Annexure to the Auditor's Report the TDS i.eRs. 4.25 lakhs pertaining to late filing fees & interest which are as per Traces siteof Income Tax (TDS) and With reference to para VII(c) the matter is being looked into andshall soon be appropriately dealt with.

b) With reference to para VIII of the Annexure to the Auditor's Report the CentralExcise Loan interest has remained unpaid as the matter is pending for the cause ofimplementing agency claiming compound interest on an interest free excise loan under ascheme of incentives. Matter with relevant agencies and Government of India is being takenup and will be sorted out in due course of time. No material liability is expected in thisregard.

14. MANAGEMENT DISCUSSION AND ANALYSIS:

The Management Discussion and Analysis are annexed and forms an integral part of thisreport.

15. PARTICULARS OF EMPLOYEES:

There are no employees covered by provision contained in Rule 5(2) and Rule 5(3) ofCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 as amended.

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 given in "AnnexureB" which is part of this report.

16. SIGNIFICANT AND MATERIAL ORDER PASSED BY THE REGULATORS OR COURTS:

Honorable Bombay High Court has given interim stay order against the winding up orderpassed (against the Company) dated 15/04/2015. This was a lawsuit filed by M/s. Savino DelBene Freight Forwarders (India) Private Limited. Company has deposited Rs. 1905179/-including interest as per direction of Honourable Bombay High Court. The Appeal shall beadded to the appropriate board for hearing. But the same is not yet listed on the Board ofHigh Court.

17. RELATED PARTY TRANSACTIONS:

All Related Party Transactions that were entered during the financial year under reviewwere on an arm's length basis and in the ordinary course of business and is in compliancewith the applicable provisions of the Act and the Listing Regulations.

During the year the Company had not entered into any contract/arrangement/transactionwith related parties which could be considered material. Members may refer to Note 8 ofNotes to Account of the standalone financial statement which sets out related partydisclosures.

The information on transactions with related parties pursuant to Section 134(3)(h) ofthe Act read with Rule 8(2) of the Companies(Accounts) Rules 2014 are given in "AnnexureC" in Form AOC-2 which is part of this report.

18. CORPORATE SOCIAL RESPONSIBILITY:

Your Board further undertakes to spend the amount towards various identified CSRactivities either directly or through the trust as per the CSR policy of the Company. CSRpolicy of the Company may be accessed on the Company's website at the link:www.pmlindia.com. The details of CSR activities in terms of the requirements of Companies(Corporate Social Responsibility Policy) Rules 2014 is annexed as "AnnexureD" which forms part of this Report.

19. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:

In accordance with the provisions of the Act and listing regulations Vigil Mechanismfor directors and employees to report genuine concerns has been established. The VigilMechanism Policy has been uploaded on the website of the Company under investors tab atwww.pmlindia.com.

20. CONSERVATION OF ENERGY TECHNOLOGY DEVELOPMENT AND ABSORPTION:

The Conservation of Energy R & D activity in the Company is mainly carried out bythe key line manufacturing and technical personnel in alliance with the key technicalsales personnel and outsourced consultants. "Annexure E" attached heretoprovides the information required to be disclosed on the efforts made on Conservation ofEnergy Technology Development and Absorption as per Section 134(3)(m) of the CompaniesAct 2013 read with Rule 8 of the Companies (Accounts) Rules 2014.

21. FOREIGN EXCHANGE EARNING AND OUTGO:

Please refer to paragraph No. 14 of Notes to accounts for the foreign exchange outgoand earnings of the Company which is required to be disclosed under Section 134(3)(m) ofthe Companies Act 2013 read with Rule 8 of the Companies (Accounts) Rules 2014.

22. PARTICULARS OF LOANS GIVEN GUARANTEES AND INVESTMENTS MADE GUARANTEES GIVEN ANDSECURITIES PROVIDED:

During the year under review your Company did not give any loans or guaranteesprovide any security or make any investments as covered under Section 186 of the CompaniesAct 2013.

23. BOARD AND COMMITTEE MEETINGS:

The details of the composition of the Board and its Committees and the number ofmeetings held and attendance of Directors at such meetings are provided in the CorporateGovernance Report which forms part of the Annual Report.

24. ANTI SEXUAL HARASSMENT POLICY:

The Company has zero tolerance for sexual harassment at workplace and has adopted aPolicy on Prevention Prohibition and Redressal of Sexual Harassment at workplace in linewith the provisions of the Sexual Harassment of Women at Workplace (PreventionProhibition and Redressal) Act 2013 and the rules made there under.

25. EXTRACT OF ANNUAL RETURN:

Pursuant to Section 92(3) of the Act and Rule 12(1) of the Companies (Management andAdministration) Rules 2014 the extract of the Annual Return in the prescribed form i.e.Form MGT-9 is annexed herewith as "Annexure F" which forms part of thisReport.

26. ADEQUACY OF INTERNAL FINANCIAL CONTROLS:

Company has in place adequate internal financial control system commensurate with itssize scale and the nature of business which ensures that transactions are recordedauthorised and reported correctly apart from safeguarding its assets against significantmisuse or loss. Company also has adequate internal financial controls with reference tofinancial statements. The Company's internal auditors carry out regular checks on theadequacy of the internal financial controls.

The Internal Audit Reports are submitted periodically to the Audit Committee. The AuditCommittee reviews these reports with the executive management and requisite correctiveactions are taken by the process owners in their respective areas and thereby strengthenthe controls.

27. SHARE CAPITAL:

The Paid-up Capital of the Company is Rs. 85984530/- and Authorised Capital of theCompany is Rs. 160000000/-.

28. PERFORMANCE EVALUATION :

Your Company believes that it is the collective effectiveness of the Board that impactsthe Company's performance and thus the primary evaluation platform is that of collectiveperformance of the Board. The parameters for evaluation of Board performance as laidunder evaluation criteria adopted by the Company have been derived from the Board's corerole of trusteeship to protect and enhance shareholder value as well as fulfilexpectations of other stakeholders through strategic supervision of the Company.

The said criteria also contemplate evaluation of Directors based on their performanceas directors apart from their specific role as independent nonexecutive and executivedirectors as mentioned below:

a. Every director will be evaluated on discharging their duties and responsibilities asenshrined under various statutes and regulatory facet participation in discussions anddeliberations in achieving an optimum balance between the interest of company's businessand its stakeholders.

b. Executive Directors will also be evaluated based on targets/criteria given toExecutive Directors by the Board from time to time in addition to their terms ofappointment.

c. Independent Directors will also be evaluated on discharging their obligations inconnection with their independence criteria as well as adherence with the requirements ofprofessional conduct roles functions and duties specifically applicable to IndependentDirectors as contained in Schedule IV to the Companies Act 2013.

The Board of Directors of your Company has made annual evaluation of its performanceand directors for the financial year 2020- 21 based on aforesaid criteria.

29. APPRECIATION:

Your Directors would like to express their sincere appreciation for the assistance andco-operation received from the financial institutions banks government authoritiescustomers vendors and members during the year under review. Your Directors also wish toplace on record their deep sense of appreciation for the committed services by theCompany's executives staff and workers.

FOR AND ON BEHALF OF THE BOARD

Place: Thane
Date: May 28 2021
Corporate Office: Plot No. B-3 MIDC Industrial Area Sd/- Sd/-
Village Mira Mira Road - 401104 Sharad Taparia Mukul Taparia
Dist. Thane. Managing Director Director

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