Mar 31, 2022
Your Directors have pleasure in presenting this 28th (Twenty Eighth) Directors'' Report along with the Audited Financial Statements for the Financial Year ended 31st March, 2022.
1. Highlights of Financial Performance:
Your Company''s financial performance during the Financial Year 2021-22 as compared to that of the previous Financial Year 2020-21 is summarized below:
in Lakh) |
||||
Standalone |
Consolidated |
|||
2021-22 |
2020-21 |
2021-22 |
2020-21 |
|
Revenue from Operations |
67,656.61 |
55,487.21 |
67,656.61 |
55,487.21 |
Other Income |
1,046.34 |
767.05 |
1,046.78 |
792.11 |
Total Income |
68,702.95 |
56,254.26 |
68,703.39 |
56,279.32 |
Total Expenses |
56,598.87 |
47,387.09 |
56,590.81 |
47,372.23 |
Profit /(Loss) Before Tax |
12,104.08 |
8,867.17 |
12,112.58 |
8,907.09 |
Less: Current Tax |
2,861.27 |
2,324.43 |
2,863.40 |
2,326.47 |
Less: Deferred Tax |
261.01 |
(61.24) |
260.92 |
(60.99) |
Less: Adjustment for Tax of previous years |
- |
134.73 |
- |
134.73 |
Profit/(Loss) After Tax |
8,981.80 |
6,469.25 |
8,988.26 |
6,506.88 |
Other Comprehensive Income (Net of Tax) |
(0.54) |
(17.62) |
(0.72) |
(18.40) |
Total Comprehensive Income |
8,981.26 |
6,451.63 |
8,987.54 |
6,488.48 |
Total Comprehensive Income attributable to: |
||||
- Owners of Astec LifeSciences Limited |
8,981.26 |
6,451.63 |
8,985.14 |
6,486.49 |
- Non-controlling interests |
N.A. |
N.A. |
2.40 |
1.99 |
(N.A.: Not Applicable) |
2. Review of Operations/ State of Affairs of the Company and its Subsidiaries:
Review of Operations/ State of Affairs of the Company:
Your Company manufactures agrochemical active ingredients (technical), bulk and formulations, intermediate products and sells its products in India as well as exports them to approximately 25 (Twenty Five) countries.
During the Financial Year 2021-22, your Company registered its best performance till date, as Total Income and Profit After Tax (PAT) grew by 22.1% and 38.1%, year-on-year, respectively. Consolidated Total Income reached ^ 68,703.39 Lakh during the Financial Year 2021-22 as against ^ 56,279.32 lakh during the Financial Year 2020-21 and Profit After Tax (PAT) increased to ^ 8,988.26 Lakh during the Financial Year 2021-22 as against 3; 6,506.88 Lakh during the Financial Year 2020-21. Geographically, exports were the main driver
growing by 44.4% year-on-year while in terms of segment, growth was led by enterprise sales. The proportion of exports increased to 58% of the total income from 49% in the previous year. Domestic sale was 42% of the total income and grew by 0.5% year-on-year.
Strong top line performance was accompanied by robust improvement in margin profile as well. Your Company achieved Gross margin of 42.8% during the Financial Year 2021-22 as compared to 38.4% during the Financial Year 2020-21. The margin expansion was driven by higher realisations, favourable product mix and benefits from investment in backward integration. The Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) margin expanded to 24.3% during the Financial Year 2021-22 from 21.5% during the previous Financial Year 2020-21. The improvement in EBITDA margin was partly constrained by increased higher fixed overheads on account of commissioning of herbicide plant. As a result, your Company''s return on net worth
improved by 206 bps to 25.5% in the Financial Year 2021-22 from 23.4% in the Financial Year 2020-21.
During the year, your Company also commissioned its new herbicide plant and completed first batch of CMO product successfully. Your Company also continues to stay on track to launch the state-of-the-art Research and Development (R&D) facility by December 2022. During the Financial Year 2021-22, your Company commercialized two new CMO products and a new production process for an enterprise product.
During the Financial Year 2022-23, your Company plans to continue focusing on onboarding new relationships for contract manufacturing business and to diversify into other chemistries. Investment in R&D centre will significantly increase the research capabilities and will support the growth aspirations in the medium to long-term.
There has been no change in the nature of business of your Company during the Financial Year 2021-22.
Your Company had the following 2 (Two) subsidiaries throughout the Financial Year (F.Y.) 2021-22:
Behram Chemicals Private Limited, a subsidiary of your Company, has given its Plot at Mahad (Maharashtra) to your Company on Leave and License basis.
During the Financial Year ended 31st March, 2022, Behram Chemicals Private Limited reported Profit Before Tax of T 9.21 Lakh, as compared to Profit Before Tax of ^ 8.91 Lakh during the previous Financial Year 2020-21.
Comercializadora Agricola Agroastrachem Cia Ltda is a foreign subsidiary company, having its Registered Office in Bogota, Colombia and is
engaged in the business of obtaining product registrations in conformity with local laws of the said country. This company is yet to start any major commercial activity.
For the year ended 31st March, 2022, Comercializadora Agricola Agroastrachem Cia Ltda reported Profit/(Loss) Before Tax of T NIL, as compared to Profit/(Loss) Before Tax of ^ (0.10) Lakh reported during the previous year ended 31st March, 2021.
Your Board has recommended a Final Dividend of 15% (Fifteen per cent) on the Equity Share Capital of your Company, i.e., ^ 1.50 (Rupee One and Paise Fifty Only) per Equity Share of Face Value of ^10/-(Rupees Ten Only) each for the Financial Year ended 31st March, 2022, subject to approval of the Shareholders at the ensuing 28th (Twenty Eighth) Annual General Meeting of the Company.
The Dividend, if declared, will be paid to the Shareholders whose names appear in the Register of Members of the Company as on Wednesday, 20th July, 2022 and in respect of shares held in dematerialized form, it will be paid to Shareholders whose names are furnished by National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), as the beneficial owners as on that date.
The Shareholders of your Company are requested to note that the Income Tax Act, 1961, as amended by the Finance Act, 2020, mandates that dividends paid or distributed by a Company after 1st April, 2020 shall be taxable in the hands of the Shareholders. The Company shall, therefore, be required to deduct Tax at Source (TDS) at the time of making payment of the Final Dividend. In order to enable your Company to determine and deduct the appropriate TDS as applicable, the Shareholders are requested to read the instructions given in the Notes to the Notice convening the 28th (Twenty Eighth) Annual General Meeting of the Company, forming a part of this Annual Report.
The Dividend payout for the Financial Year 2021-22 is in accordance with the Company''s Dividend Distribution Policy.
In terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Dividend Distribution Policy of the Company is made available on the website of the Company and is available on the web link http://www.astecls.com/codes-and-policies.asi3x.
Your Board does not propose to transfer any amount to reserves during the Financial Year 2021-22.
As required to be reported pursuant to the provisions of Section 186 and Section 134(3)(g) of the Companies Act, 2013, the particulars of loans, guarantees and investments by your Company under the aforesaid provisions during the Financial Year 2021-22, have been provided in the Notes to the Financial Statement.
Your Company continues to manage its treasury operations efficiently and has been able to borrow funds for its operations at competitive rates.
As on 31st March, 2022, ICRA Limited has assigned Credit Ratings in respect of R 57,400 Lakh of Line of Credit (LOC) and R 30,000 Lakh of Commercial Paper Programme availed by the Company, as under:
a) Long-term rating at "[ICRA] AA-"
(pronounced "ICRA double A minus")
b) Short-term rating at "[ICRA] A1 "
(pronounced "ICRA A one plus")
c) Commercial Paper Programme at "[ICRA] A1 " (pronounced "ICRA A one plus")
In accordance with the Credit Rating assigned to the Commercial Paper Programme of your Company as above, the Board of Directors has granted its approval for borrowing by way of issuance of Commercial Papers upto an aggregate limit of R 30,000 Lakh.
With the COVID-19 pandemic situation improving, your Company has deployed technology solutions to enable and support hybrid work environment for employees. It has formulated Cybersecurity Implementation roadmap to improve your Company''s cyber security maturity. Your Company has also implemented solutions like Data Leakage Prevention, Endpoint Detection and Response (EDR), Zero Trust based network protection solution. Digital transformation initiatives are underway which include deployment of web-based and mobile applications to bring in operational efficiency and be a future ready resilient organization. Your Company is also working on Cloud adoption to strengthen infrastructure availability and provide better manageability, thereby ensuring business continuity. Your Company has also started pilot on use of latest technologies like Artificial Intelligence and Machine Learning (AI/ML) and Predictive analytics.
The Authorized Equity Share Capital of the Company as on 31st March, 2022 stood at R 25,00,00,000/- (Rupees Twenty Five Crore Only), comprising of 2,50,00,000 (Two Crore Fifty Lakh) Equity Shares of Face Value of ^10/- (Rupees Ten Only) each.
The Issued, Subscribed and Paid-up Equity Share Capital as on 31st March, 2022 was R 19,59,75,550/- (Rupees Nineteen Crore Fifty Nine Lakh Seventy Five Thousand Five Hundred Fifty Only) comprising of 1,95,97,555 (One Crore Ninety Five Lakh Ninety Seven Thousand Five Hundred Fifty Five) Equity Shares of Face Value of ^10/-(Rupees Ten Only) each.
During the Financial Year 2021-22, the Company has:
(a) Allotted 2,500 (Two Thousand Five Hundred) Equity Shares of Face Value of R 10/- (Rupees Ten Only) each, ranking pari passu with the existing Equity Shares, at an exercise price of R 34/- (Rupees Thirty Four Only) each under the Employees Stock Option Plan, 2012 ("ESOP
2012") pursuant to exercise of Options by the employees of the Company under ESOP 2012;
(b) Allotted 7,500 (Seven Thousand Five Hundred) Equity Shares of Face Value of ^ 10/- (Rupees Ten Only) each, ranking pari passu with the existing Equity Shares, at an exercise price of ^ 387.35 (Rupees Three Hundred Eighty Seven and Paise Thirty Five Only) each under the Employees Stock Option Scheme, 2015 ("ESOS 2015"), pursuant to exercise of Options by the employees of the Company under ESOS 2015.
Further, during the Financial Year under review, the Nomination and Remuneration Committee of the Board of Directors of the Company has granted 3,316 (Three Thousand Three Hundred Sixteen) Options convertible into 3,316 (Three Thousand Three Hundred Sixteen) Equity Shares at an Exercise Price of ^ 10/- (Rupees Ten Only) under the amended ESOP 2012 (amendment approved vide Shareholders'' Special Resolution passed on 26th September, 2021, by way of Postal Ballot, the results of which were declared on 27th September, 2021).
The Management Discussion and Analysis Report for the Financial Year 2021-22, as stipulated under Regulation 34(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms a part of the Annual Report.
Godrej Agrovet Limited, a listed company (listed on BSE Limited and National Stock Exchange of India Limited), is, inter alia, engaged in the business of manufacture and marketing of Animal Feeds, Agricultural Inputs and Oil Palm and continues to be the Holding Company of your Company. The shareholding of Godrej Agrovet Limited in your Company as on 31st March, 2022 was 63.29% [i.e., 1,24,04,016 (One Crore Twenty Four Lakh Four Thousand Sixteen) Equity Shares of Face Value of 3; 10/- (Rupees Ten Only) each] of the Paid-up Equity Share Capital of the Company.
Godrej Agrovet Limited, in turn, is a subsidiary of Godrej Industries Limited, a listed company (listed on BSE Limited and National Stock Exchange of India Limited). Godrej Industries Limited, thus, continues to be the Ultimate Holding Company of your Company.
Your Company had the following 2 (Two) Subsidiary Companies throughout the Financial Year 2021-22:
(a) Behram Chemicals Private Limited, Maharashtra, India (in which your Company holds 65.63% of the paid-up Equity Share Capital); and
(b) Comercializadora Agricola Agroastrachem Cia Ltda, Bogota, Columbia (in which your Company holds 100% of the paid-up Equity Share Capital).
A report on the financial position and performance of each of the Subsidiary Companies in Form AOC-1 for the Financial Year 2021-22 forms a part of the Directors'' Report and is annexed herewith as ''Annexure A''.
Your Company did not have any Joint Venture / Associate companies during the Financial Year 2021-22.
The Consolidated Financial Statements of your Company are prepared in accordance with the relevant Indian Accounting Standards (Ind AS), i.e., Ind AS 110 issued by the Institute of Chartered Accountants of India (ICAI) and form part of this Annual Report. Accordingly, the Annual Report of your Company does not contain the Financial Statements of its 2 (Two) Subsidiary Companies, viz., Behram Chemicals Private Limited and Comercializadora Agricola Agroastrachem Cia Ltda (Bogota, Columbia).
The Annual Financial Statements and related information of your Company''s Subsidiaries will be made available upon request. Also, in accordance
with Section 136 of the Companies Act, 2013, the Audited Financial Statements, including Consolidated Financial Statements and related information of your Company and Financial Statements of each of the Subsidiaries, are hosted on the Company''s website, viz., www.astecls.com and can be accessed through the web link http://www.astecls.com/financial-updates.aspx. These documents will also be available for inspection during all days except Saturdays, Sundays and Public Holidays between 10.00 a.m. (1ST) to 4.00 p.m. (1ST) at the Company''s Registered Office in Mumbai, Maharashtra, subject to lock-down or other restrictions as may be imposed by the Government(s) and/or local authority(ies) from time to time. If any Shareholder is interested in inspecting and obtaining a copy thereof, such Shareholder may write an e-mail to agm.astec(5)godreiastec.com.
At the previous 27th (Twenty Seventh) Annual General Meeting ("AGM") of your Company held on 28th July, 2021, the Shareholders have granted approval for appointment of Mr. Nandkumar Dhekne and Ms. Anjali Gupte as "Non-Executive, Independent Directors" of your Company for a term of 5 (Five) years w.e.f. 18th December, 2020 upto 17th December, 2025. Further, Mr. B. S. Yadav, Non-Executive and Non-Independent Director, who was liable retire by rotation, was re-appointed by the Shareholders at the said AGM.
Upon recommendation of the Nomination and Remuneration Committee and as approved by the Board of Directors, at their respective Meetings held on 28th July, 2021, Mr. Anurag Roy [Director Identification Number (DIN: 07444595)] has been appointed as the "Chief Executive Officer and Whole-Time Director", on the Board of Directors of the Company for a term of 3 (Three) years, w.e.f. 28th July, 2021 upto 27th July, 2024, subject to approval of the Shareholders The approval of the Shareholders was duly obtained vide Special Resolution passed on 26th September, 2021, by way of Postal Ballot, the results of which were declared on 27th September, 2021.
Further, Mr. Arijit Mukherjee resigned as the "Whole Time Director" w.e.f. 28th July, 2021, while
continuing to be the "Chief Operating Officer" of your Company.
Consequent to cessation of the term of Mr. Ashok Fliremath as the "Managing Director" of your Company on close of business hours on 31st March, 2022, he continues on the Board as a "Non-Executive, Non-Independent Director", liable to retire by rotation, with effect from 1st April, 2022. The Board would like place to record sincere appreciation and gratitude for efficient and matured guidance and support provided by Mr. Ashok Fliremath during his long tenure as the "Managing Director" of your Company.
Subsequent to the closure of the Financial Year 2021-22, Mr. Rakesh Dogra has resigned as a "Non-Executive, Non-Independent Director" w.e.f. 2nd May, 2022. The Board would like to place on record, sincere appreciation and gratitude for his contribution whilst holding the directorship of your Company.
In accordance with the provisions of Section 152(6) of the Companies Act, 2013 read with the Articles of Association of the Company, Mr. Nadir B. Godrej [Director Identification Number (DIN: 00066195)], Chairman and Non-Executive, Non-Independent Director of the Company is liable to retire by rotation at the forthcoming 28th (Twenty Eighth) AGM, and being eligible, has offered himself for reappointment. Appropriate resolution for reappointment of Mr. Nadir B. Godrej is being moved at the ensuing 28th (Twenty Eighth) AGM, which the Board of Directors recommends for your approval.
Pursuant to the provisions of Regulation 34(3) read with Schedule V to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has obtained a Certificate from Mr. Vikas Chomal, a Company Secretary in Practice certifying that none of the Directors of the Company has been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India (SEBI) or by the Ministry of Corporate Affairs (MCA) or by any such statutory authority. The said Certificate is annexed to the Corporate Governance Report of the Company for the Financial Year 2021-22.
The Meetings of the Board of Directors are prescheduled and intimated to all the Directors in advance, in order to help them to plan their schedule. However, in case of special and urgent business needs, approval is taken either by convening Meetings at a shorter notice with consent of all the Directors or by passing a Resolution through Circulation.
The Board of Directors of your Company met 4 (Four) times during the Financial Year 2021-22 (on 30th April, 2021, 28th July, 2021, 27th October, 2021 and 25th January, 2022). The details of Board Meetings and the attendance of the Directors thereat are provided in the Corporate Governance Report. The intervening time gap between two consecutive Meetings of the Board was within the limit prescribed under the Companies Act, 2013,
i.e., the same was not exceeding 120 (One Hundred and Twenty) days.
The Board of Directors has carried out an Annual Performance Evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Committees. A structured questionnaire was prepared after taking into consideration various aspects of the Board''s functioning, composition of the Board and its Committees, culture, execution and performance of specific duties, obligations and governance. The performance evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors. The confidential online questionnaire was responded to by all the Directors and vital feedback was received from them on how the Board currently operates and how it might improve its effectiveness.
The process of annual evaluation of Directors'' performance and the feedback received therefrom has been discussed and noted at the Meetings of the Independent Directors, the Nomination and Remuneration Committee and the Board of Directors.
The Directors have expressed their overall satisfaction with the evaluation process.
All the Independent Directors of your Company, viz., Mr. Vijay Kashinath Khot, Dr. Brahma Nand Vyas, Mr. R. R. Govindan, Mr. Nandkumar Vasant Dhekne and Ms. Anjali Rajesh Gupte have registered themselves with the databank maintained by the Indian Institute of Corporate Affairs ("MCA"), in terms of the provisions of Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2019 and the Companies (Creation and Maintenance of Databank of Independent Directors) Rules, 2019.
In terms of the provisions of the Companies (Appointment and Qualification of Directors) Rules, 2014 dealing with the requirement for Independent Directors to pass Proficiency Test conducted by MCA:
⢠Mr. Vijay Kashinath Khot, Dr. Brahma Nand Vyas and Mr. Nandkumar Vasant Dhekne are exempt from appearing for the Proficiency T est;
⢠Mr. R. R. Govindan has successfully cleared / completed the Proficiency Test during the Financial Year 2021-22;
⢠Ms. Anjali Gupte will appear for the Proficiency Test during the Financial Year 2022-23, within the mandatory timelines applicable to her.
Your Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 and Regulation 16(l)(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the same have been taken on record by the Board after undertaking due assessment of the veracity of the same.
The criteria for determining qualifications, positive attributes and independence of Directors is provided in the Nomination and Remuneration Policy of the Company which is available on the website, viz., www.astecls.com at the web link http://www.astecls.com/codes-and-policies.aspx.
All the Independent Directors of the Company have duly complied with the Code for Independent
Directors as prescribed in Schedule IV to the Companies Act, 2013. The details of familiarization programmes attended by the Independent Directors during the Financial Year 2021-22 are available on the website of the Company, www.astecls.com at the web link http://www.astecls.com/listing-compliance.asi3x.
The Independent Directors met once during the Financial Year 2021-22, i.e., on 30th April, 2021, pursuant to the provisions of Regulation 25 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Schedule IV to the Companies Act, 2013. The Meeting of the Independent Directors was conducted without the presence of the Chairman, Managing Director, Whole Time Director and Non-Executive Directors and the members of your Company''s Management.
Pursuant to Section 134 of the Companies Act, 2013 ("the Act"), your Directors, to the best of their knowledge and ability, confirm as under:
a) that in the preparation of the Annual Accounts for the Financial Year ended 31st March, 2022, the applicable Accounting Standards have been followed along with proper explanation relating to material departures, if any;
b) that such accounting policies have been selected and applied consistently, and such judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2022 and the profit of the Company for the Financial Year ended as at that date;
c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company, for preventing and detecting fraud and other irregularities;
d) that the Annual Accounts for the Financial Year ended 31st March, 2022 have been prepared on a going concern basis;
e) the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively;
f) that proper systems are in place to ensure compliance of all laws applicable to the Company and that such systems are adequate and operating effectively.
The following were the Key Managerial Personnel (KMP) of your Company pursuant to the provisions of Section 203 of the Companies Act, 2013, during the Financial Year 2021-22:
1. Mr. Ashok V. Hiremath, Managing Director
(*)
2. Mr. Arijit Mukherjee, Whole - Time Director
3. Mr. Anurag Roy, Whole Time Director and Chief Executive Officer ($)
4. Mr. Saurav Bhala, Chief Financial Officer
5. Ms. Tejashree Pradhan, Company Secretary and Compliance Officer
(*) Mr. Ashok Hiremath has ceased to be the "Managing Director" w.e.f. 1st April, 2022 and continues to be a "Non-Executive, Non-Independent Director" as on the date of this Report.
($) Mr. Arijit Mukherjee resigned as the "Whole Time Director" w.e.f. 28th July, 2021, while continuing to be the "Chief Operating Officer". Mr. Anurag Roy has been appointed as the "Whole Time Director & Chief Executive Officer" w.e.f. 28th July, 2021.
B S R and Co. LLP, Chartered Accountants, Mumbai (Firm Registration Number: 101248W/W-100022), were appointed as the "Statutory Auditors" of your Company by the Shareholders at the 23rd (Twenty Third) Annual General Meeting held on 28th July, 2017, for a term of 5 (Five) consecutive years, i.e., to hold office upto the ensuing 28th (Twenty Eighth) Annual General Meeting of the Company, at such
remuneration as may mutually be agreed upon between them and the Company.
B S R and Co. LLP is eligible for re-appointment for a second term of 5 (Five) years and have provided a written confirmation that they are willing and eligiblefor re-appointment and are not disqualified to be re-appointed in terms of the applicable provisions of the Companies Act, 2013 and the Rules framed thereunder.
Based on the recommendation made by the Audit Committee and the Board of Directors at their respective Meetings held on 2nd May, 2022, the reappointment of B S R and Co. LLP as the "Statutory Auditors" of the Company for a second term of 5 (Five) years, to hold office from the conclusion of the 28th (Twenty Eighth) Annual General Meeting till the conclusion of the 33rd (Thirty Third) Annual General Meeting (i.e., from the Financial Year 2022-23 upto the Financial Year 2026-27) is placed for approval of the Shareholders at the ensuing 28th (Twenty-Eighth) Annual General Meeting of the Company.
Pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 and the Companies (Cost Records and Audit) Rules, 2014, the cost records are required to be maintained by your Company and the same are required to be audited. Your Company, accordingly, maintains the required cost accounts and records.
Your Board of Directors had, upon recommendation of the Audit Committee, at its Meeting held on 30th April, 2021, re-appointed M/s. NNT and Co., Cost Accountants, Mumbai (Firm Registration Number: 100911) as the "Cost Auditors" of the Company for the Financial Year 2021-22 and their remuneration was duly ratified by the Shareholders at the 27th (Twenty Seventh) Annual General Meeting held on 28th July, 2021.
Further, your Board of Directors has, upon recommendation of the Audit Committee, at its Meeting held on 2nd May, 2022, re-appointed M/s. NNT and Co., Cost Accountants, Mumbai as the "Cost Auditors" of your Company for the Financial
Year 2022-23, subject to ratification of their remuneration at the ensuing 28th (Twenty Eighth) Annual General Meeting.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Board of Directors had, upon recommendation of the Audit Committee, at its Meeting held on 30th April, 2021, appointed M/s. BNP and Associates, Company Secretaries (Firm Registration Number: P2014MH037400), Mumbai to undertake the Secretarial Audit of your Company for the Financial Year 2021-22.
The Secretarial Audit Report issued by M/s. BNP and Associates, Secretarial Auditors for the Financial Year ended 31st March, 2022, which is an unqualified report, is annexed herewith as ''Annexure B''.
Your Board of Directors has, upon recommendation of the Audit Committee, at its Meeting held on 2nd May, 2022, re-appointed M/s. BNP and Associates, who have provided their consent and confirmed their eligibility, as the "Secretarial Auditors" of your Company for the Financial Year 2022-23.
Your Company is in compliance with the Secretarial Standards on Meetings of the Board of Directors (SS-1) and Secretarial Standards on General Meetings (SS-2), as issued by the Institute of Company Secretaries of India (ICSI).
Pursuant to the provisions of Section 177 of the Companies Act, 2013, Rule 6 of the Companies (Meetings of Board and Its Powers) Rules, 2014 and Regulation 18 read with Part C of Schedule II to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has constituted
Audit Committee of the Board of Directors comprising of the following Members:
Sr. No. |
Name of the Member |
Category |
1 |
Mr. R. R. Govindan |
Chairman (Independent Director) |
2 |
Mr. Ashok V. Hiremath |
Member (Managing Director) (*) |
3 |
Mr. Vijay Kashinath Khot |
Member (Independent Director) |
4 |
Dr. Brahma Nand Vyas |
Member (Independent Director) |
{ ) Mr. AsnoK Hirematn nas ceased to oe me ivianaging Director w.e.f. 1st April, 2022 and continues to be a "Non-Executive, Non-Independent Director" as on the date of this Report.
During the Financial Year 2021-22, there was no change in the composition of the Audit Committee.
Audit Committee Meetings were held 4 (Four) times during the Financial Year 2021-22 (on 30th April, 2021, 28th July, 2021, 27th October, 2021 and 25th January, 2022). The Statutory Auditors, Internal Auditors and Chief Financial Officer attend the Audit Committee Meetings as invitees. The Statutory Auditors and the Internal Auditors, inter alia, present their observations on adequacy of internal financial controls and the steps required to bridge gaps, if any. Accordingly, the Audit Committee makes observations and recommendations to the Board of Directors of your Company. The Board has accepted all the recommendations of the Audit Committee during the Financial Year 2021-22.
The Company Secretary and Compliance Officer acts as Secretary to the Audit Committee.
Pursuant to the provisions of Section 178 of the Companies Act, 2013, Rule 6 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 19 read with Part D of Schedule II to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has constituted Nomination and Remuneration Committee of the Board of Directors comprising of the following Members:
Sr. No. |
Name of the Member |
Category |
1 |
Mr. R. R. Govindan |
Chairman (Independent Director) |
Mr. Vijay Kashinath |
Member (Independent |
|
Khot |
Director) |
|
Mr. Balram Singh |
Member (Non-Executive, |
|
3 |
Yadav |
Non-Independent Director) |
During the Financial Year 2021-22, there was no change in the composition of the Nomination and Remuneration Committee.
Nomination and Remuneration Committee Meetings were held 2 (Two) times during the Financial Year 2021-22 (on 30th April, 2021 and 28th July, 2021).
Pursuant to the provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, your Company has constituted CSR Committee of the Board of Directors comprising of the following Members: -
Sr. No. |
Name of the Member |
Category |
Mr. Ashok V. |
Chairman (Managing |
|
Hiremath |
Director) (*) |
|
Mr. Balram Singh |
Member (Non-Executive, |
|
Yadav |
Non-Independent Director) |
|
3 |
Mr. R. R. Govindan |
Member (Independent Director) |
4 |
Dr. Brahma Nand |
Member (Independent |
(*) Mr. Ashok Hiremath has ceased to be the "Managing Director" w.e.f. 1st April, 2022 and continues to be a "Non-Executive, Non-Independent Director" as on the date of this Report.
During the Financial Year 2021-22, there was no change in the composition of the CSR Committee.
CSR Committee Meetings were held 2 (Two) times during the Financial Year 2021-22 (on 30th April, 2021 and 27th October, 2021).
Your Company recognises CSR as integral to the way it does its business and strives to engage, connect and uplift the community in and around the areas in which your Company operates. The CSR Policy of your Company aligns itself with the
Godrej Group''s ''Good and Green'' vision of creating a more inclusive and greener India. Each of your Company''s CSR projects are aligned with the ''Good and Green'' goals of the Godrej Group and correspond to different items listed in Schedule VII to the Companies Act, 2013.
Your Company aspires and consistently moves in the direction to become a sustainable company through leadership commitment, multiple stakeholder engagements and disciplined value chain mechanisms. Your Company''s holistic approach towards sustainability not only manages its externalities but also provides tangible solutions for the benefit and upliftment of the communities around its manufacturing sites.
Your Company amended its CSR Policy, at the respective Meetings of the CSR Committee and the Board of Directors held on 30th April, 2021, in accordance with the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 dated 22nd January, 2021, notified by the Ministry of Corporate Affairs (MCA). The CSR Policy of your Company (as amended) is uploaded on the website, viz., www.astecls.com and can be accessed through the web link http://www.astecls.com/codes-and-policies.aspx.
Your Company was required to spend T 137.69 Lakh towards CSR Activities in terms of the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, during the Financial Year 2021-22. Your Company has spent ^ 99.40 Lakh towards CSR Activities. Your Company took up different projects pertaining to COVID relief, raising livelihoods of farmers and self-help groups, digital platform in schools, etc. The shortfall of ^ 38.29 Lakh in the amount of CSR spending is attributable to ongoing projects which will be completed by the Company in due course and the same has been duly transferred to Unspent CSR Account as on date.
The Annual Report on CSR Activities for the Financial Year 2021-22 is annexed herewith as ''Annexure C''.
Pursuant to the provisions of Regulation 21 read with Part D of Schedule II to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has constituted a Risk Management Committee of the Board of Directors comprising of the following Members: -
Sr. |
Name of the |
Category |
No. |
Member |
|
Mr. Ashok V. |
Chairman (Managing Director) |
|
Hiremath |
(*) |
|
Mr. Balram Singh |
Member (Non-Executive, Non- |
|
Yadav |
Independent Director) |
|
Mr. R. R. |
Member (Independent |
|
3 |
Govindan |
Director) |
Mr. Saurav Bhala |
Member (Chief Financial |
|
Officer) |
||
(*) Mr. Ashok Hiremath has ceased to be the "Managing Director" |
||
w.e.f. |
1st April, 2022 and continues to be a "Non-Executive, Non- |
|
Independent Director" as on the date of this Report. |
During the Financial Year 2021-22, there was no change in the composition of the Risk Management Committee.
The Meeting of the Risk Management Committee was held 2 (Two) times during the Financial Year 2021-22 (on 27th October, 2021 and 25th January, 2022).
The details of the Risk Management Committee and its terms of reference are set out in the Corporate Governance Report forming a part of the Annual Report.
Your Company has developed and implemented a Risk Management Policy and continuously monitors business and operational risks. All key functions and divisions are independently responsible to monitor risks associated within their respective areas of operations such as production, insurance, legal and other issues like health, safety and environment and cyber risks. At present, there are no identified elements of risks in the opinion of the Board, which may threaten the existence of the Company.
Pursuant to the provisions of Section 178 of the Companies Act, 2013 and Regulation 20 read with Part D of Schedule II to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has constituted a Stakeholders'' Relationship Committee of the Board of Directors, comprising of the following Members:
Sr. No. |
Name of the Member |
Category |
Mr. Balram |
Chairman (Non-Executive, Non- |
|
Singh Yadav |
Independent Director) |
|
2 |
Mr. R. R. Govindan |
Member (Independent Director) |
3 |
Mr. Vijay Kashinath Khot |
Member (Independent Director) |
During the Financial Year 2021-22, there was no change in the composition of the Stakeholders'' Relationship Committee.
Meeting of the Stakeholders'' Relationship Committee was held once during the Financial Year 2021-22 (viz., on 25th January, 2022).
Ms. Tejashree Pradhan, Company Secretary and Compliance Officer is the Secretary to Stakeholders'' Relationship Committee. She has attended the Meeting of the Stakeholders'' Relationship Committee held during the Financial Year 2021-22.
The details of Investor Complaints during the Financial Year 2021-22 are as follows:
Complaints outstanding as on 1st April, 2021 |
0 |
( ) Complaints received during the Financial Year ended 31st March, 2022 |
1 |
(-) Complaints resolved during the Financial Year ended 31st March, 2022 |
1 |
Complaints outstanding as on 31st March, 2022 |
0 |
There are no pending share transfers as on 31st March, 2022.
Your Company had constituted a Compensation Committee of the Board of Directors, comprising of the following Members as on 1st April, 2021:
Sr. No. |
Name of the Member |
Category |
1 |
Mr. R. R. Govindan |
Chairman (Independent Director) |
Mr. Balram |
Member (Non-Executive, Non- |
|
Singh Yadav |
Independent Director) |
|
3 |
Mr. Vijay Kashinath Khot |
Member (Independent Director) |
The Compensation Committee was dissolved on 28th July, 2021.
There were no Compensation Committee Meetings held duringthe Financial Year 2021-22 till the date of its dissolution.
Your Company has constituted a Managing Committee of the Board of Directors, which comprised of the following Members as on 31st March, 2022:
Sr. No. |
Name of the Member |
Category |
Mr. Balram Singh |
Chairman (Non-Executive, Non- |
|
Yadav |
Independent Director) |
|
Mr. Ashok V. |
Member (Managing Director) |
|
Fliremath |
(*) |
|
Mr. Rakesh |
Member (Non-Executive, Non- |
|
3 |
Dogra |
Independent Director) (#) |
(*) Mr. Ashok Hiremath has ceased to be the "Managing Director" w.e.f. 1st April, 2022 and continues to be a "Non-Executive, Non-Independent Director" as on the date of this Report.
(#) Mr. Rakesh Dogra has resigned as a "Non-Executive, Non-Independent Director" w.e.f. 2nd May, 2022 and consequently, he ceases to be a Member of the Managing Committee w.e.f. 2nd May, 2022.
During the Financial Year 2021-22, there was no change in the composition of the Managing Committee. The terms of reference of the Managing Committee include handling of various administrative and other matters of the Company, which have been delegated to the Managing Committee by the Board of Directors from time to time.
The values of mutual trust and respect are considered by your Company as fundamental to its existence. Your Company is committed to creating and maintaining an atmosphere in which employees can work together without fear of sexual harassment, exploitation or intimidation and there is zero tolerance towards any such unwarranted instances.
The Board of Directors of your Company has constituted Internal Complaints Committee (ICC) pursuant to the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules framed thereunder, comprising of the following Members as on 31st March, 2022:
1. Ms. Neeyati Shah, Presiding Officer
2. Mr. Arijit Mukherjee, Member
3. Mr. Saurav Bhala, Member
4. Mr. Ritesh Bhardwaj, Member
5. Ms. Tejashree Pradhan, Member
6. Ms. Sharmila Kher, External Member
The Company has formulated and circulated to all the employees, a Policy on Prevention of Sexual Harassment at Workplace, which provides for a proper mechanism for redressal of complaints of sexual harassment.
The details of complaints with the ICC during the Financial Year 2021-22 are as follows:
Complaints outstanding as on 1st April, 2021 |
0 |
( ) Complaints received during the Financial Year ended 31st March, 2022 |
0 |
(-) Complaints resolved during the Financial Year ended 31st March, 2022 |
0 |
Complaints outstanding as on 31st March, 2022 |
0 |
The Company has complied with the applicable provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules framed thereunder.
All Related Party Transactions entered into by your Company during the Financial Year 2021-22 were on arm''s length basis and in the ordinary course of business. There were no material significant Related Party Transactions entered into by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company. Prior approval of the Audit Committee of the Board of Directors was obtained for all the Related Party Transactions.
Accordingly, as per provisions of Section 134(3)(h) and Section 188 of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014, disclosure of Related Party Transactions in Form AOC-2 is not applicable. Attention of the Shareholders is also drawn to the disclosure of transactions with Related Parties as set out in Note No. 51 of the Standalone Financial Statements, forming part of the Annual Report. None of the Directors have any pecuniary relationships or transactions vis-a-vis the Company during the Financial Year 2021-22.
During the Financial Year 2021-22, the Company has entered into Related Party Transactions with Godrej Agrovet Limited, its Promoter and Holding Company, based on considerations of various business exigencies, such as synergy in operations and the same are in line with the Company''s longterm strategy. Further, the Company has paid managerial remuneration to Mr. Ashok V. Hiremath, Promoter of the Company, who was the "Managing Director" till 31st March, 2022 (and continues to be a "Non-Executive, Non-Independent Director" as on the date of this Report).
All such Related Party Transactions during the Financial Year under review are in the ordinary course of business, on arm''s length basis and are intended to further the Company''s interests. The same have been disclosed in the Financial Statement.
In accordance with Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (''Listing Regulations''), a detailed report on Corporate Governance is included in the Annual Report. M/s. BNP and Associates, Company Secretaries, who are also the "Secretarial Auditors" of your Company, have certified that your Company is in compliance with the requirements of Corporate Governance in terms of Regulation 34 of the Listing Regulations and their Compliance Certificate is annexed to the Report on Corporate Governance.
The Companies Act, 2013, the Rules framed thereunder and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") have mandated the formulation of certain policies for all listed companies and/or
unlisted companies. All our Policies are available on the Company''s website, www.astecls.com and can be accessed through the web link http://www.astecls.com/codes-and-policies.aspx. The Policies are reviewed periodically by the Board and its Committees and are updated based on the need and new compliance requirements.
The remuneration paid to Directors, Key Managerial Personnel and other employees of the Company during the Financial Year 2021-22 was in conformity with the Nomination and Remuneration Policy of the Company.
(i) Percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the Financial Year 2021-22 and the Ratio of the Remuneration of each Director to the Median remuneration of the employees of the Company for the Financial Year 2021-22:
The disclosure as per Section 197(12) of the Companies Act, 2013 read with Rule 5 (2) and Rule 5 (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, in respect of employees of your Company, is available for inspection by the Shareholders at the Registered Office of the Company, during business hours, i.e., between 10.00 a.m. (1ST) to 5.00 p.m. (1ST), on all working days (i.e., excluding Saturdays, Sundays and Public Holidays), upto the date of the ensuing 28th (Twenty Eighth) Annual General Meeting, subject to such COVID-19 restrictions (if any) as may be imposed by the Government(s) and/or local authority(ies) from time to time. If any
Shareholder is interested in inspecting and obtaining a copy thereof, such Shareholder may write an e-mail to [email protected].
Your Company has not accepted any deposits covered under Chapter V of the Companies Act, 2013, [(i.e., deposits within the meaning of Rule 2(l)(c) of the Companies (Acceptance of Deposits) Rules, 2014)], during the Financial Year 2021-22. Thus, the details of deposits required as per the provisions of the Companies (Accounts) Rules, 2013 are as follows:
39. Adequacy of Internal Financial Controls with reference to the Financial Statement:
In the opinion of the Board of Directors of your Company, adequate internal financial controls are available, operative and adequate, with reference to the preparation and finalization of the Financial Statement for the Financial Year 2021-22.
40. Annual Return:
Pursuant to Section 92(3) of the Companies Act, 2013 read with the Companies (Management and Administration) Amendment Rules, 2021, Annual Return in Form MGT-7 will be hosted on the website of the Company, viz., www.astecls.com at the web link http://www.astecls.com/other-updates.aspx.
41. Investor Education and Protection Fund (IEPF):
Compulsory Transfer of Equity Shares to Investor Education and Protection Fund (IEPF) Account:
In accordance with the applicable provisions of the Companies Act, 2013, read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 ("IEPF Rules"), all the Unpaid or Unclaimed Dividends are required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government, upon completion of 7 (Seven) years The Company is in compliance with the aforesaid provisions and the IEPF Rules.
Unclaimed / Unpaid Dividend:
The dividend amount for the Financial Year 2014-15 remaining unclaimed shall become due for transfer to the Investor Education and Protection Fund ("IEPF") established by the Central Government in terms of Section 124 of the Companies Act, 2013, on 22nd October, 2022, upon expiry of 7 (Seven) years from the date of its declaration. The Company is in the process of sending reminders to all such Shareholders at their registered addresses for claiming the unpaid / unclaimed dividend, which will be transferred to IEPF in the due course.
The detailed dividend history, due dates for transfer to IEPF, and the details of unclaimed amounts lying with the Company in respect of dividends declared since the Financial Year 2009-10 are available on website of the Company, www.astecls.com at the web link http://www.astecls.com/unclaimed-dividend.aspx. Also, pursuant to Section 124(2) of the Companies Act, 2013, your Company has uploaded the details of unpaid and unclaimed amounts lying with the Company in respect of dividends declared for the Financial Year 2020-21, on the website of the Company.
42. Explanation or Comments by the Board on every Qualification, Reservation or Adverse Remark or Disclaimer made by the Statutory Auditors, Secretarial Auditors and Cost Auditors:
There are no qualifications, reservations, adverse remarks and disclaimers of the Statutory Auditors in their Auditors'' Reports (Standalone and Consolidated) on the Financial Statements for the Financial Year 2021-22.
There are no qualifications, reservations, adverse remarks and disclaimers of the Secretarial Auditors in their Secretarial Audit Report for the Financial Year 2021-22.
There are no qualifications, reservations, adverse remarks and disclaimers of the Cost Auditors in their report on the Cost Records for the Financial Year 2020-21 (noted during the Financial Year 2021-22). The Cost Audit Report for the Financial Year 2021-22 will be received in due course.
43. Significant Regulatory or Court Orders:
During the Financial Year 2021-22 and thereafter till the date of this Report, there have been no significant and material orders passed by the regulators or Courts or Tribunals which can adversely impact the going concern status of your Company and its operations in future.
44. Material Changes and Commitments, if any, Affecting the Financial Position of the Company which have occurred between the end of the Financial Year 2021-22 to which the Financial Statements relate and the date of the Directors'' Report (i.e., from 1st April, 2022 upto 2nd May, 2022), if any:
There are no material changes and commitments affecting the financial position of your Company which have occurred between the end of the Financial Year 2021-22 to which the Financial Statements relate and the date of the Directors'' Report (i.e., from 1st April, 2022 upto 2nd May, 2022). The global outbreak of COVID-19 health pandemic has significantly impacted the economy. The Management of your Company has considered internal and certain external sources of information and has used the principles of prudence in applying judgments, estimates and assumptions regarding the probable impact of the pandemic. The eventual outcome or impact of the pandemic may be different from those estimated as on the date of approval of these Financial Statements.
The Nomination and Remuneration Committee of the Board of Directors administers and monitors the ESOP 2012 and ESOS 2015.
Your Company has received a certificate from BNP and Associates, Company Secretaries and the Secretarial Auditors of the Company that ESOP 2012 and ESOS 2015 have been implemented in accordance with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and the resolutions passed by the
Shareholders. Any request for inspection of the said certificate may please be sent to agm.astec (Sigodreiastec.com. The disclosures as per Regulation 14 of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 have been put on the website of Company, viz., www.astecls.com at the web link http://www.astecls.com/listing-compliance.aspx.
There was no amendment in ESOS 2015 during the Financial Year 2021-22 and the same is in
compliance with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
During the Financial Year 2021-22, there was an amendment made in ESOP 2012, which was
approved by the Shareholders by passing a Special Resolution on 26th September, 2021, through Postal Ballot (the results of which were declared on 27th September, 2021). The salient features of the said amendment were as follows:
There have been no instances of frauds reported by the Statutory Auditors under Section 143(12) of the Companies Act, 2013 and the Rules framed thereunder, either to the Company or to the Central Government, during the Financial Year 2021-22.
The additional information required to be given under the Companies Act, 2013 and the Rules made thereunder, has been laid out in the Notes attached to and forming part of the Financial Statements. The Notes to the Accounts referred to the Auditors'' Report are self-explanatory and therefore, do not call for any further explanation.
48. Listing Fees:
Your Company has paid requisite annual listingfees to BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE), the Stock Exchanges where its securities are listed.
49. Depository System:
Your Company''s Equity Shares are available for dematerialization through National Securities Depository Limited ("NSDL'''') and Central
Depository Services (India) Limited ("CDSL"). The ISIN Number of your Company for both NSDL and CDSL is INE563J01010.
50. Research and Development:
Your Company continues to focus on Research and Development ("R & D") and strongly believes that productive R & D is a key ingredient for success. During the Financial Year under review, your Company continued to develop new products at a healthy pace. A state-of-the-art R & D centre is in progress and is expected to be completed by December 2022, which will further augment your Company''s R & D capabilities.
51. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo:
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo as stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as ''Annexure D''.
52. Business Responsibility Report:
The Company has prepared its Business Responsibility Report for the Financial Year 2021-22, in accordance with Regulation 34 (2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Circular No. CIR/CFD/CMD/10/2015 dated November 4, 2015 issued by the Securities and Exchange Board of India (SEBI), to describe the initiatives taken by the
Company from an environmental, social and governance perspective. The said Report is prepared in accordance with the ''National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business'' (NVGs) notified by the Ministry of Corporate Affairs (MCA), Government of India, in July 2011 and forms part of this Annual Report.
53. Scheme of Amalgamation / Arrangement:
During the Financial Year 2021-22, your Company has not proposed or considered or approved any Scheme of Merger / Amalgamation / Takeover / De-merger / Arrangement with its Members and/or Creditors.
54. Details of Application made or any Proceeding pending under the Insolvency and Bankruptcy Code, 2016, during the Financial Year along with their status as at the end of the Financial Year:
During the Financial Year 2021-22, there was no application made and proceeding initiated / pending by any Financial and/or Operational Creditors against your Company under the Insolvency and Bankruptcy Code, 2016.
As on the date of this Report, there is no application or proceeding pending against your Company under the Insolvency and Bankruptcy Code, 2016.
55. Details of Difference between the Amount of Valuation at the time of One-time Settlement and the Valuation done at the time of taking a Loan from the Banks or Financial Institutions along with the Reasons thereof:
During the Financial Year 2021-22, the Company has not made any settlement with its bankers for any loan/facility availed or/and still in existence.
56. Human Resources:
Your Company continues to have amicable employee relations at all locations and would like to place on record its sincere appreciation for the unstinted support it continues to receive from all its employees. Your Company drives interventions
to enhance the workforce productivity in the business and also makes concrete efforts to improve the employee engagement and connect. Your Company is committed to building and maintaining a safe and healthy workplace. There are several policies formulated for the benefit of employees, which promote gender diversity, equal opportunity, prevention of sexual harassment, safety and health of employees. Your Company constantly makes concerted efforts towards creating learning and development opportunities on a non-discriminatory basis, that continually enhance the employee value in line with the organizational objectives. The total number of permanent employees on the rolls of your Company as on 31st March, 2022 was 506.
Your Board wishes to place on record their sincere appreciation and gratitude for the continued support and co-operation received from the various Central and State Government Departments, organizations and agencies. The Directors also gratefully acknowledge all stakeholders of the Company, viz., Shareholders, customers, dealers, vendors, banks and other business partners for the excellent support received from them during the Financial Year under review. Your Directors also express their warm appreciation to all the employees of the Company for their unstinted commitment and continued contribution to performance and success of the Company, even in the challenging times of COVID-19 pandemic outbreak.
The statements in the Board''s Report describing the Company''s objectives, expectations or forecasts may be forward-looking within the meaning of applicable Securities laws and regulations. Actual results may differ materially from those expressed herein. Important factors that could influence the Company''s operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigations and industrial relations.
Mar 31, 2019
The Directors have pleasure in presenting this 25th (Twenty Fifth) Directorsâ Report along with the Audited Financial Statements for the Financial Year ended 31st March, 2019.
1. HIGHLIGHTS OF FINANCIAL PERFORMANCE:
Your Companyâs financial performance during the Financial Year 2018-19 as compared to that of the previous Financial Year 2017-18 is summarized below:-
(Rs. in Lakh)
Particulars |
Standalone |
Consolidated |
||
2018-19 |
2017-18 |
2018-19 |
2017-18 |
|
Revenue from Operations |
43,090.12 |
37,084.52 |
43,090.12 |
37,084.52 |
Other Income |
1,110.07 |
810.62 |
1,115.66 |
810.62 |
Total Income |
44,200.19 |
37,895.14 |
44,205.78 |
37,895.14 |
Total Expenses |
38,620.86 |
32,742.57 |
38,615.37 |
32,739.19 |
Profit /(Loss) Before Exceptional Items and Tax |
5,579.33 |
5,152.57 |
5,590.41 |
5,155.95 |
Less: Exceptional Gain/(Loss) |
- |
415.21 |
- |
415.21 |
Profit /(Loss) Before Tax |
5,579.33 |
5,567.78 |
5,590.41 |
5,571.16 |
Less: Current Tax |
1,528.88 |
1,737.13 |
1,530.88 |
1,738.51 |
Less: Deferred Tax |
442.22 |
206.99 |
442.94 |
207.77 |
Less: Adjustment for Tax of previous years (Net) |
39.63 |
126.58 |
40.05 |
121.14 |
Profit/(Loss) After Tax |
3,568.60 |
3,497.08 |
3,576.54 |
3,503.74 |
Other Comprehensive Income (Net of Tax) |
18.69 |
(28.30) |
19.45 |
(28.89) |
Total Comprehensive Income |
3,587.29 |
3,468.78 |
3,595.99 |
3,474.85 |
Total Comprehensive Income attributable to: |
||||
- Owners of Astec LifeSciences Limited |
N.A. |
N.A. |
3,593.13 |
3,461.51 |
- Non-controlling interests |
N.A. |
N.A. |
2.86 |
13.34 |
(N.A.: Not Applicable)
2. REVIEW OF OPERATIONS / STATE OF AFFAIRS OF THE COMPANY AND ITS SUBSIDIARIES: REVIEW OF OPERATIONS / STATE OF AFFAIRS OF THE COMPANY:
Your Company manufactures agrochemical active ingredients (technical), bulk and formulations, intermediate products and sells its products in India as well as exports them to approximately 24 countries.
Your Company continues to maintain strong performance for the Financial Year 2018-19, with Revenue from Operations of the business growing by 16.2% and Profit Before Tax (PBT) excluding Exceptional Items increasing to Rs. 5,590.41 Lakh from Rs. 5,155.95 Lakh for the previous Financial Year 2017-18.
During the Financial Year 2018-19, revenue growth was supported both by the export business and the domestic business. Going forward, your Company will continue to focus on both the markets and develop manufacturing capabilities which should cater to the key changes emerging in agrochemical industry. Your Company will keep on working towards adding new multinational customers for ensuring sustained business growth.
There has been no change in the nature of business of your Company during the Financial Year 2018-19.
REVIEW OF OPERATIONS / STATE OF AFFAIRS OF THE SUBSIDIARIES OF THE COMPANY:
Your Company had the following 3 (three) subsidiaries during the Financial Year (F.Y.) 2018-19:-
(i) Behram Chemicals Private Limited:
During the Financial Year ended 31st March, 2019, Behram Chemicals Private Limited reported Profit Before Tax of Rs. 10.36 Lakh, as compared to Profit Before Tax of Rs. 6.53 Lakh during the previous Financial Year 2017-18.
(ii) Comercializadora Agricola Agroastrachem Cia Ltda (Bogota, Columbia):
For the year ended 31st March, 2019, Comercializadora Agricola Agroastrachem Cia Ltda reported Loss Before Tax of (Rs. 0.05) Lakh, as compared to Loss Before Tax of (Rs. 1.42) Lakh reported during the previous year.
(iii) Astec Europe Sprl (Belgium, Europe):
During the year ended 31st March, 2019, Astec Europe Sprl reported Profit Before Tax of Rs. 0.75 Lakh, as compared to Loss Before Tax of (Rs. 1.75) Lakh reported during the previous year.
3. DIVIDEND:
Your Directors have recommended a Final Dividend of 15% (Fifteen per cent) on the Equity Share Capital of your Company, i.e., Rs. 1.50 (Rupee One and Paise Fifty Only) per Equity Share of Face Value of Rs. 10/- (Rupees Ten Only) each for the Financial Year ended 31st March, 2019, subject to approval of the Shareholders at the ensuing 25th (Twenty Fifth) Annual General Meeting of the Company.
The Dividend will be paid to the Shareholders whose names appear in the Register of Members of the Company as on Friday, 19th July, 2019 and in respect of shares held in dematerialized form, it will be paid to Shareholders whose names are furnished by National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), as the beneficial owners as on that date.
The Dividend payout for the Financial Year under review is in accordance with the Companyâs Dividend Distribution Policy.
4. TRANSFER TO RESERVES:
Your Directors do not propose to transfer any amount to any reserve during the Financial Year ended 31st March, 2019.
5. PARTICULARS OF LOANS, INVESTMENTS AND GUARANTEES:
The details of Loans, Investments and Guarantees covered under Section 186 of the Companies Act, 2013 form a part of the Notes to the Financial Statements provided in this Annual Report.
6. FINANCE:
Your Company continues to manage its treasury operations efficiently and has been able to borrow funds for its operations at competitive rates.
During the Financial Year 2018-19, ICRA Limited have assigned the Credit Ratings for Rs. 45,500 Lakh Line of Credit (LOC) and Rs. 10,000 Lakh Commercial Paper programme availed by the Company, as under:-
1. Long-term rating from â[ICRA]Aâ (pronounced âICRA Aâ) to â[ICRA]A â (pronounced âICRA A plusâ), which was further upgraded to â[ICRA]AA-â (pronounced âICRA double A minusâ);
2. Short-term rating from â[ICRA]A1â (pronounced âICRA A oneâ) to â[ICRA]A1 â (pronounced âICRA A one plusâ); and
3. Commercial Paper programme at â[ICRA]A1 â (pronounced âICRA A one plusâ).
7. SHARE CAPITAL:
The Authorized Equity Share Capital of the Company as on 31st March, 2019 was Rs. 25,00,00,000/-(Rupees Twenty Five Crore Only), comprising of 2,50,00,000 (Two Crore Fifty Lakh) Equity Shares of Face Value of Rs. 10/- (Rupees Ten Only) each. The Paid-up Equity Share Capital as on 31st March, 2019 was Rs. 19,55,26,550/- (Rupees Nineteen Crore Fifty Five Lakh Twenty Six Thousand Five Hundred and Fifty Only) comprising of 1,95,52,655 (One Crore Ninety Five Lakh Fifty Two Thousand Six Hundred Fifty Five Only) Equity Shares of Face Value of Rs. 10/- (Rupees Ten Only) each.
During the Financial Year under review, the Company has allotted 25,000 (Twenty Five Thousand) Equity Shares of Face Value of Rs. 10/- (Rupees Ten Only) each pursuant to exercise of Options by the employees of the Company under Employees Stock Option Plan, 2012 (ESOP 2012) and Employees Stock Option Scheme, 2015 (ESOS 2015).
8. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
The Management Discussion and Analysis Report for the year under review, as stipulated under Regulation 34(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms part of the Annual Report.
9. HOLDING COMPANY:
Godrej Agrovet Limited, a listed company (listed on BSE Limited and National Stock Exchange of India Limited), is, inter-alia, engaged in the business of manufacture and marketing of animal feeds, agricultural inputs and oil palm and is the Holding Company of your Company. The shareholding of Godrej Agrovet Limited in the Company as on 31st March, 2019 was 57.67% [i.e. 1,12,75,466 (One Crore Twelve Lakh Seventy Five Thousand Four Hundred Sixty Six) Equity Shares of Face Value of Rs. 10/- (Rupees Ten Only) each] of the Paid-up Equity Share Capital of the Company.
Godrej Agrovet Limited, in turn, is a subsidiary of Godrej Industries Limited, a listed company (listed on BSE Limited and National Stock Exchange of India Limited). Godrej Industries Limited was a subsidiary of Vora Soaps Limited upto 23rd December, 2018, which has now merged with Godrej Industries Limited.
During the Financial Year 2018-19, the Company has filed an application with the Honâble National Company Law Tribunal, Mumbai Bench for merger / amalgamation of the Company with Godrej Agrovet Limited (Holding Company) and the same is under process.
10. SUBSIDIARY COMPANIES:
Your Company had the following Subsidiary Companies during the Financial Year 2018-19:
Sr. No. |
Name of the Subsidiary Company |
Shareholding in % |
Nature of Activity |
Review of Operations and Financial Performance of Subsidiary Companies |
1 |
Behram Chemicals Private Limited |
65.63% |
This company has given its Plot at Mahad (Maharashtra) to Astec LifeSciences Limited on Leave and License basis. |
For the Financial Year ended 31st March, 2019, Operating Profit, i.e., EBITDA is Rs. 11.24 Lakh, against Operating Profit of Rs. 7.44 Lakh reported for the Financial Year ended 31st March, 2018. Profit After Tax is Rs. 7.22 Lakh for the Financial Year ended 31st March, 2019, as compared to the Profit After Tax of Rs. 9.80 Lakh reported for the Financial Year ended 31st March, 2018. |
2 |
Astec Europe Sprl |
50.10% |
This foreign subsidiary company, having its Registered Office in Belgium, Europe, is engaged in the business of distribution of Agrochemicals. |
For the year ended 31st March, 2019, Operating Profit, i.e., EBITDA is Rs. 0.75 Lakh, against Operating Loss of (Rs. 1.65) Lakh reported for the year ended 31st March, 2018. Profit After Tax is Rs. 0.75 Lakh for the year ended 31st March, 2019, as compared to the Loss After Tax of (Rs. 1.75) Lakh reported for the year ended 31st March, 2018. |
3 |
Comercializadora Agricola Agroastrachem Cia Ltda |
100% |
This foreign subsidiary company, having its Registered Office in Bogota, Colombia, is engaged in the business of obtaining product registrations in conformity with local laws of the country. This company is yet to start any major commercial activity. |
For the year ended 31st March, 2019, Operating Loss, i.e., EBITDA is (Rs. 0.05) Lakh, against Operating Loss of (Rs. 1.42) Lakh reported for the year ended 31st March, 2018. Loss After Tax is (Rs. 0.05) Lakh for the year ended 31st March, 2019, as compared to the Loss After Tax of (Rs. 1.42) Lakh reported for the year ended 31st March, 2018. |
REPORT ON PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARY COMPANIES:
Report on Performance and Financial Position of each of the Subsidiary Companies included in Consolidated Financial Statement forms a part of the Directorsâ Report and is annexed herewith in Form AOC-1 as âAnnexure Aâ.
11. CONSOLIDATED FINANCIAL STATEMENTS:
The Consolidated Financial Statements of your Company are prepared in accordance with the relevant Indian Accounting Standards (Ind AS), i.e., Ind AS 110 issued by the Institute of Chartered Accountants of India (ICAI) and form a part of this Annual Report. Accordingly, the Annual Report of your Company does not contain the Financial Statements of its subsidiary companies. The Annual Accounts and related information of the Companyâs subsidiaries will be made available upon request. In accordance with Section 136 of the Companies Act, 2013, the Audited Financial Statements, including Consolidated Financial Statements and related information of the Company and Audited Accounts of each of the subsidiaries, are available on the Companyâs website, www.astecls.com at the weblink http://www.astecls.com/financial-updates.aspx. These documents will also be available for inspection during all days except Saturdays, Sundays and Public Holidays between 10.00 a.m. (IST) to 4.00 p.m. (IST) at the Companyâs Registered Office in Mumbai, Maharashtra.
The Company did not have any Joint Venture / Associate during the Financial Year under review. The Company has 3 (three) Subsidiaries, viz.: (1) Behram Chemicals Private Limited, (2) Astec Europe Sprl (Belgium, Europe), and (3) Comercializadora Agricola Agroastrachem Cia Ltda (Bogota, Columbia).
12. DIRECTORS:
In accordance with the provisions of Section 152(6) of the Companies Act, 2013 read with and the Companyâs Articles of Association, Mr. Rakesh Dogra, Non-Executive, Non-Independent Director of the Company is liable to retire by rotation at the forthcoming 25th (Twenty Fifth) Annual General Meeting (AGM), and being eligible, has offered himself for re-appointment.
Upon recommendation of the Nomination and Remuneration Committee and as approved by the Board of Directors at their respective Meetings held on 29th March, 2019, Mr. Ashok V. Hiremath has been re-appointed as the âManaging Directorâ of the Company for a period of 1 (one) year with effect from 1st April, 2019 upto 31st March, 2020, subject to approval of Shareholders at the ensuing AGM, on the terms and conditions as may be approved by the Shareholders.
Upon recommendation of the Nomination and Remuneration Committee and as approved by the Board of Directors at their respective Meetings held on 30th April, 2019, Mr. Arijit Mukherjee has been re-appointed as the âWhole-Time Directorâ of the Company for a period of 3 (three) years with effect from 4th May, 2019 upto 3rd May, 2022, subject to approval of Shareholders at the ensuing AGM, on the terms and conditions as may be approved by the Shareholders.
Appropriate resolutions for re-appointment of Mr. Rakesh Dogra as the âNon-Executive, NonIndependent Directorâ, Mr. Ashok V. Hiremath as the âManaging Directorâ and Mr. Arijit Mukherjee as the âWhole-Time Directorâ, are being moved at the ensuing 25th (Twenty Fifth) AGM, which the Board of Directors recommends for your approval.
Pursuant to the provisions of Regulation 34(3) read with Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has obtained a Certificate from a Company Secretary in Practice certifying that none of the Directors of the Company have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India (SEBI) or by the Ministry of Corporate Affairs (MCA) or by any such statutory authority.
13. MEETINGS OF THE BOARD OF DIRECTORS:
The Board of Directors of your Company met 6 (six) times during the Financial Year ended 31st March, 2019 (on 2nd May, 2018, 1st August, 2018, 14th September, 2018, 26th October, 2018, 25th January, 2019 and 29th March, 2019). The details of Board Meetings and the attendance of the Directors thereat are provided in the Corporate Governance Report. The intervening time gap between two consecutive Meetings was within the period prescribed under the Companies Act, 2013.
14. BOARD EVALUATION:
The Board has carried out an Annual Performance Evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Committees. A structured questionnaire was prepared after taking into consideration various aspects of the Boardâs functioning, composition of the Board and its Committees, culture, execution and performance of specific duties, obligations and governance. The performance evaluation of the Chairman and Non - Independent Directors was carried out by the Independent Directors. The confidential online questionnaire was responded to by all the Directors and vital feedback was received from them on how the Board currently operates and how it might improve its effectiveness. The Board of Directors has expressed its satisfaction with the evaluation process.
15. INDEPENDENT DIRECTORS:
Your Company has received declarations from all the Independent Directors of the Company, confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 and Regulation 16(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the same have been taken on record by the Board after undertaking due assessment of the veracity of the same.
The criteria for determining qualification, positive attributes and independence of Directors is provided in the Nomination and Remuneration Policy of the Company is available on the website, viz., www.astecls.com at the weblink http://www.astecls.com/codes-and-policies.aspx
All the Independent Directors of the Company have complied with the Code for Independent Directors prescribed in Schedule IV to the Companies Act, 2013. The details of familiarization programmes attended by the Independent Directors during the Financial Year 2018-19 are available on the website of the Company, www.astecls.com at the weblink http://www.astecls.com/listing-compliance.aspx.
The Independent Directors met once during the Financial Year 2018-19, i.e., on 2nd May, 2018. The Meeting of the Independent Directors was conducted without the presence of the Chairman, Managing Director, Whole-Time Director and Non-Executive Directors.
16. DIRECTORSâ RESPONSIBILITY STATEMENT:
Pursuant to Section 134 of the Companies Act, 2013 (âthe Actâ), your Directors, to the best of their knowledge and ability, confirm as under:
a) that in the preparation of the Annual Accounts for the Financial Year ended 31st March, 2019, the applicable Accounting Standards have been followed along with proper explanation relating to material departures, if any;
b) that such accounting policies have been selected and applied consistently, and such judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2019 and the profit of the Company for the Financial Year ended as at that date;
c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company, for preventing and detecting fraud and other irregularities;
d) that the Annual Accounts for the Financial Year ended 31st March, 2019 have been prepared on a going concern basis;
e) the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively;
f) that proper systems are in place to ensure compliance of all laws applicable to the Company and that such systems are adequate and operating effectively.
17. KEY MANAGERIAL PERSONNEL:
The following are the Key Managerial Personnel (KMP) of the Company pursuant to the provisions of Section 203 of the Companies Act, 2013, during the Financial Year 2018-19:-
- Mr. Ashok V. Hiremath, Managing Director
- Mr. Arijit Mukherjee, Whole - Time Director
- Mr. Saurav Bhala, Chief Financial Officer
- Ms. Tejal Jariwala, Company Secretary & Compliance Officer (upto 31st October, 2018)
- Ms. Tejashree Pradhan, Company Secretary & Compliance Officer (w.e.f. 1st November, 2018)
18. STATUTORY AUDITORS:
M/s. B S R & Co. LLP, Chartered Accountants, Mumbai (Firm Registration Number: 101248W/W-100022) were appointed as the âStatutory Auditorsâ of your Company by the Shareholders at the 23rd (Twenty Third) Annual General Meeting held on 28th July, 2017 for a term of 5 (five) consecutive years, which was subject to ratification by the Members at every Annual General Meeting.
The Shareholders of the Company, at their 24th (Twenty Fourth) Annual General Meeting held on 1st August, 2018, have ratified the appointment of Statutory Auditors to hold office from the conclusion of the 24th (Twenty Fourth) Annual General Meeting till the conclusion of the 28th (Twenty Eighth) Annual General Meeting, i.e., for the Financial Years from 2018-19 to 2021-22, at such remuneration as may be mutually agreed upon between them and the Company.
19. COST RECORDS AND COST AUDITORS:
Pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 and the Companies (Cost Records and Audit) Rules, 2014, cost records are required to be maintained by your Company and the same are required to be audited. The Company accordingly maintains the required cost accounts and records.
Your Board of Directors had, on recommendation of the Audit Committee, at its Meeting held on 2nd May, 2018, re-appointed M/s. NNT & Co., Cost Accountants, Mumbai (Firm Registration Number: 28904) as the âCost Auditorsâ of the Company for the Financial Year 2018-19.
Further, your Board of Directors have, on recommendation of the Audit Committee, at its Meeting held on 30th April, 2019, re-appointed M/s. NNT & Co. as the âCost Auditorsâ for the Financial Year 2019-20 and their remuneration for the said Financial Year is being placed before the Shareholders for their ratification at the ensuing 25th (Twenty Fifth) Annual General Meeting of the Company.
20. SECRETARIAL AUDITORS:
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Board of Directors had, on recommendation of the Audit Committee, at its Meeting held on 2nd May, 2018, appointed M/s. BNP & Associates, a firm of Company Secretaries in Practice (Firm Registration Number: P2014MH037400), Mumbai to undertake the Secretarial Audit of the Company for the Financial Year 2018-19.
The Secretarial Audit Report issued by M/s. BNP & Associates, Secretarial Auditors for the Financial Year ended 31st March, 2019, which is an unqualified report, is annexed herewith as âAnnexure Bâ.
Your Board of Directors have, on recommendation of the Audit Committee, at its Meeting held on 30th April, 2019, re-appointed M/s. BNP & Associates as the âSecretarial Auditorsâ for the Financial Year 2019-20.
21. COMPLIANCE WITH THE SECRETARIAL STANDARDS:
The Company is in compliance with the Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI), as applicable.
22. AUDIT COMMITTEE:
Pursuant to the provisions of Section 177 of the Companies Act, 2013 and Regulation 18 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee of the Board of Directors comprises of the following Members:-
Name of the Director |
Category |
Mr. Sitendu Sharma |
Chairman (Independent Director) |
Mr. Vinod Malshe |
Member (Independent Director) |
Dr. Leena Raje |
Member (Independent Director) |
Mr. Vijay Kashinath Khot |
Member (Independent Director) |
Dr. Brahma Nand Vyas |
Member (Independent Director) |
Mr. Ashok V. Hiremath |
Member (Managing Director) |
Mr. Balram Singh Yadav |
Member (Non-Executive, Non-Independent Director) |
During the Financial Year 2018-19, the Audit Committee was re-constituted by the Board of Directors with effect from 1st August, 2018, by inducting Dr. Brahma Nand Vyas, Independent Director of the Company as a Member of the Committee.
Audit Committee Meetings were held 5 (five) times during the Financial Year 2018-19 (on 2nd May, 2018, 1st August, 2018, 14th September, 2018, 26th October, 2018 and 25th January, 2019). The Statutory Auditors, Internal Auditors and Chief Financial Officer attend the Audit Committee Meetings as invitees. The Company Secretary and Compliance Officer acts as Secretary to the Audit Committee. The Board has accepted all the recommendations of the Audit Committee.
23. NOMINATION AND REMUNERATION COMMITTEE:
Pursuant to the provisions of Section 178 of the Companies Act, 2013 and Regulation 19 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has constituted its Nomination and Remuneration Committee comprising of the following Members:-
Name of the Director |
Category |
Mr. Vinod Malshe |
Chairman (Independent Director) |
Dr. Leena Raje |
Member (Independent Director) |
Mr. Balram Singh Yadav |
Member (Non-Executive, Non-Independent Director) |
During the Financial Year 2018-19, there was no change in the composition of the Nomination and Remuneration Committee.
Nomination and Remuneration Committee Meetings were held 4 (four) times during the Financial Year 2018-19 (on 2nd May, 2018, 26th October, 2018, 25th January, 2019 and 29th March, 2019).
24. CORPORATE SOCIAL RESPONSIBILITY (âCSRâ): COMPOSITION OF CSR COMMITTEE OF THE BOARD OF DIRECTORS:
Pursuant to the provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, the CSR Committee of the Board of Directors comprises of the following Members:-
Name of the Director |
Category |
Mr. Vinod Malshe |
Chairman (Independent Director) |
Dr. Leena Raje |
Member (Independent Director) |
Mr. Balram Singh Yadav |
Member (Non-Executive, Non-Independent Director) |
Mr. Ashok V. Hiremath |
Member (Managing Director) |
During the Financial Year 2018-19, there was no change in the composition of the CSR Committee. CSR Committee Meeting was held once during the Financial Year 2018-19 (on 2nd May, 2018).
CSR POLICY AND AREAS OF CSR EXPENDITURE:
A brief outline of the Companyâs CSR Policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR Policy is as under:
The CSR Policy of your Company aligns itself with the Godrej Groupâs (Group) âGood & Greenâ vision of creating a more inclusive and greener India. Each of your Companyâs CSR projects are aligned with the Good & Green goals of the Group and correspond to different items listed in Schedule VII to the Companies Act, 2013.
Your Company aspires to become a sustainable Company through leadership commitment, multiple stakeholder engagements and disciplined value chain mechanisms. Your Companyâs holistic approach towards sustainability not only manages its externalities but also integrates the prevalent social and environmental issues into business strategies to provide tangible solutions which benefit the communities around its manufacturing sites brings upliftment for holistic development of the communities.
The CSR Policy of your Company is uploaded on the website, viz., www.astecls.com at the weblink http://www.astecls.com/codes-and-policies.aspx.
AMOUNT OF CSR SPENDING:
Your Company was required to spend Rs. 57.46 Lakh towards CSR Activities in terms of provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, during the Financial Year 2018-19. Your Company has spent Rs. 57.53 Lakh towards CSR Activities. Your Company is in process of taking up different projects for the improvement of sanitation, agriculture and livelihoods as well as education and skilling, for the communities in the areas where it operates.
ANNUAL REPORT ON CSR ACTIVITIES:
The Annual Report on CSR Activities for the Financial Year 2018-19 is annexed herewith as âAnnexure Câ.
25. RISK MANAGEMENT & RISK MANAGEMENT COMMITTEE:
Pursuant to the requirement of Regulation 21 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has constituted a Risk Management Committee of the Board of Directors comprising of the following Members:-
Name of the Member |
Category |
Mr. Ashok V. Hiremath |
Chairman (Managing Director) |
Mr. Balram Singh Yadav |
Member (Non-Executive, Non-Independent Director) |
Mr. Sitendu Sharma |
Member (Independent Director) |
Mr. Saurav Bhala |
Member (Chief Financial Officer) |
During the Financial Year 2018-19, there was no change in the composition of the Risk Management Committee.
Meeting of the Risk Management Committee was held once during the Financial Year 2018-19 (on 25th January, 2019).
The details of the Risk Management Committee and its terms of reference are set out in the Corporate Governance Report forming a part of the Annual Report.
Your Company continuously monitors business and operational risks. All key functions and divisions are independently responsible to monitor risks associated within their respective areas of operations such as production, insurance, legal and other issues like health, safety and environment and cyber risks. At present, there are no identified elements of risks which may threaten the existence of the Company.
26. STAKEHOLDERSâ RELATIONSHIP COMMITTEE:
Pursuant to the provisions of Section 178 of the Companies Act, 2013 and Regulation 20 read with Part D of Schedule II of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has constituted a Stakeholdersâ Relationship Committee of the Board of Directors, comprising of the following Members:-
Name of the Member |
Category |
Mr. Balram Singh Yadav |
Chairman (Non-Executive, Non-Independent Director) |
Mr. Sitendu Sharma |
Member (Independent Director) |
Mr. Vinod Malshe |
Member (Independent Director) |
During the Financial Year 2018-19, there was no change in the composition of the Stakeholdersâ Relationship Committee.
Meeting of the Stakeholdersâ Relationship Committee held once during the Financial Year 2018-19 (on 25th January, 2019).
Ms. Tejal Jariwala, Company Secretary & Compliance Officer (upto 31st October, 2018) and thereafter Ms. Tejashree Pradhan (w.e.f. 1st November, 2018) was the Secretary to Stakeholdersâ Relationship Committee. The Company Secretary and Compliance Officer attends all the Meetings of the Stakeholdersâ Relationship Committee.
The details of Investor Complaints during the Financial Year 2018-19 are as follows:
Complaints outstanding as on 1st April, 2018 |
0 |
( ) Complaints received during the Financial Year ended 31st March, 2019 |
1 |
(-) Complaints resolved during the Financial Year ended 31st March, 2019 |
1 |
Complaints outstanding as on 31st March, 2019 |
0 |
There are no pending share transfers as on 31st March, 2019.
27. COMPENSATION COMMITTEE:
Your Company has constituted a Compensation Committee of the Board of Directors, comprising of the following Members:-
Name of the Member |
Category |
Mr. Sitendu Sharma |
Chairman (Independent Director) |
Mr. Vinod Malshe |
Member (Independent Director) |
Mr. Balram Singh Yadav |
Member (Non-Executive, Non-Independent Director) |
During the Financial Year 2018-19, there was no change in the composition of the Compensation Committee.
Compensation Committee Meetings were held 4 (four) times during the Financial Year 2018-19 (on 2nd May, 2018, 1st August, 2018, 26th October, 2018 and 25th January, 2019).
28. MANAGING COMMITTEE:
Your Company has constituted a Managing Committee of the Board of Directors, comprising of the following Members:
Name of the Member |
Category |
Mr. Balram Singh Yadav |
Chairman (Non-Executive, Non-Independent Director) |
Mr. Ashok V. Hiremath |
Member (Managing Director) |
Mr. Rakesh Dogra |
Member (Non-Executive, Non-Independent Director) |
During the Financial Year 2018-19, there was no change in the composition of the Managing Committee.
The terms of reference of the Managing Committee include handling of various administrative and other matters of the Company, which have been delegated to the Managing Committee by the Board of Directors from time to time.
29. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE & INTERNAL COMPLAINTS COMMITTEE:
Your Company is committed to creating and maintaining an atmosphere in which employees can work together without fear of sexual harassment, exploitation or intimidation.
The Board of Directors of your Company has constituted Internal Complaints Committee (ICC) pursuant to the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition And Redressal) Act, 2013 and the Rules framed thereunder, comprising of the following Members:
1) Ms. Tejal Jariwala, Presiding Officer (upto 31st October, 2018)
Ms. Tejashree Pradhan, Presiding Officer (w.e.f. 1st November, 2018);
2) Dr. Leena Raje, Member;
3) Mr. Saurav Bhala, Member;
4) Mr. Ritesh Bhardwaj, Member;
5) Ms. Sanjivani Sadani, Member;
6) Ms. Sharmila Kher, Member.
The Company has formulated and circulated to all the employees, a Policy on Prevention of Sexual Harassment at Workplace, which provides for a proper mechanism for redressal of complaints of sexual harassment.
The details of complaints with the ICC during the Financial Year 2018-19 are as follows:
Complaints outstanding as on 1st April, 2018 |
Nil |
( ) Complaints filed during the Financial Year ended 31st March, 2019 |
Nil |
(-) Complaints disposed off during the Financial Year ended 31st March, 2019 |
Nil |
Complaints outstanding as on 31st March, 2019 |
Nil |
The Company has complied with the applicable provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition And Redressal) Act, 2013 and the Rules framed thereunder.
30. RELATED PARTY TRANSACTIONS:
All Related Party Transactions entered into by your Company during the Financial Year 2018-19 were on armâs length basis and in the ordinary course of business. There were no material significant Related Party Transactions entered into by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company. Prior approval of the Audit Committee of the Board of Directors was obtained for all the Related Party Transactions. Accordingly, as per provisions of Sections 134(3)(h) and 188 of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014, disclosure of Related Party Transactions in Form AOC-2 is not applicable. Attention of the Shareholders is also drawn to the disclosure of transactions with Related Parties as set out in Note No. 49 of the Standalone Financial Statements, forming part of the Annual Report. None of the Directors have any pecuniary relationships or transactions vis-a-vis the Company.
The Company has entered into Related Party Transactions with Godrej Agrovet Limited, its Promoter, based on considerations of various business exigencies, such as synergy in operations, sectoral specialisation and the Companyâs long term strategy. All Related Party transactions are on armâs length basis and are intended to further the Companyâs interests.
31. DISCLOSURES OF TRANSACTIONS OF THE COMPANY WITH ANY PERSON OR ENTITY BELONGING TO THE PROMOTER/PROMOTER GROUP:
The transactions with person(s) or entity(ies) belonging to the Promoter/ Promoter Group which hold(s) 10% (ten per cent) or more shareholding in the Company have been disclosed in the accompanying Financial Statements.
32. CORPORATE GOVERNANCE:
As required by the existing Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âListing Regulationsâ), a detailed report on Corporate Governance is included in the Annual Report.
BNP & Associates, Company Secretaries have certified the Companyâs compliance of the requirements of Corporate Governance in terms of Regulation 34 of the Listing Regulations and their Compliance Certificate is annexed to the Report on Corporate Governance.
33. POLICIES OF THE COMPANY:
The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âListing Regulationsâ) mandated the formulation of certain policies for all listed companies. All our Corporate Governance Policies are available on the Companyâs website, www.astecls.comat the weblink http://www.astecls.com/codes-and-policies.aspx. The Policies are reviewed periodically by the Board and its Committees and are updated based on the need and new compliance requirement.
The key Policies that have been adopted by the Company are as follows: |
|
Risk Management Policy |
The Company has in place, a Risk Management Policy which was framed by the Board of Directors of the Company. This Policy deals with identifying and assessing risks such as operational, strategic, financial, security, cyber security, property, regulatory, reputational and other risks and the Company has in place an adequate Risk Management infrastructure capable of addressing these risks. The Board of Directors of your Company is of the opinion that, at present, there are no elements of risks which may threaten the existence of the Company. |
Corporate Social Responsibility Policy |
The Corporate Social Responsibility Committee has formulated and recommended to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, which has been approved by the Board. This Policy outlines the Companyâs strategy to bring about a positive impact on society through activities and programmes relating to education, sanitation, environment, etc. |
Policy for Determining Material Subsidiaries |
This Policy is used to determine the material subsidiaries and material non-listed Indian subsidiaries of the Company in order to comply with the requirements of Regulation 16(1)(c), Regulation 24 and Regulation 24A of the Listing Regulations. At present, your Company does not have any material subsidiary. |
Nomination and Remuneration Policy |
This Policy formulates the criteria for determining qualifications, competencies, positive attributes and independence of a Director and also the criteria for determining the remuneration of the Directors, Key Managerial Personnel and other Senior Management Employees. |
Whistle Blower Policy / Vigil Mechanism |
Your Company has a Vigil Mechanism / Whistle Blower Policy. The purpose of the Policy is to enable employees to raise concerns regarding unacceptable improper practices and/ or any unethical practices in the organization without the knowledge of the Management. The Policy provides adequate safeguards against victimization of persons who use such mechanism and makes provision for direct access to Mr. Sitendu Sharma, Chairman of the Audit Committee, in appropriate or exceptional cases. |
Policy on Prevention of Sexual Harassment at Workplace |
This Policy provides for a proper mechanism for redressal of complaints of sexual harassment. |
Policy on Materiality of Related Party Transactions and dealing with Related Party Transactions |
This Policy regulates all transactions between the Company and its Related Parties. |
Code of Conduct for Insider Trading |
This Policy sets up an appropriate mechanism to curb Insider Trading. |
Policy on Criteria for determining Materiality of Events |
This Policy applies to disclosures of material events affecting the Company. This Policy warrants disclosure to investors and has been framed in compliance with the requirements of the Listing Regulations. |
Policy for Maintenance and Preservation of Documents |
The purpose of this Policy is to specify the type of document(s) and time period for preservation thereof based on the classification mentioned under Regulation 9 of the Listing Regulations. This Policy covers all business records of the Company, including written, printed and recorded matter and electronic forms of records. |
Archival Policy |
This Policy is framed pursuant to the provisions of the Listing Regulations. As per this Policy, all such events or information which have been disclosed to the Stock Exchanges are required to be hosted on the website of the Company for a minimum period of 5 (five) years and thereafter in terms of the Policy. |
Dividend Distribution Policy |
This Policy is framed by the Board of Directors in terms of the Listing Regulations. The focus of the Company is to have a Policy on distribution of dividend so that the investor may know as to when and how much dividend they may expect. |
Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI) |
The Code intends to formulate a stated framework and policy for fair disclosure of events and occurrences that could impact price discovery in the market for the Companyâs securities and to maintain the uniformity, transparency and fairness in dealings with all stakeholders and ensure adherence to applicable laws and regulations. |
Policy for Procedure for Inquiry in case of Leak of Unpublished Price Sensitive Information (UPSI) |
This Policy lays down a procedure for inquiry to be followed in case of leak of Unpublished Price Sensitive Information (UPSI). |
Code of Conduct for the Board of Directors and Senior Management Personnel |
Your Company has in place, a Code of Conduct for the Board of Directors and Senior Management Personnel which reflects the legal and ethical values to which your Company is strongly committed. The Directors and Senior Management Personnel of your Company have complied with the Code during the Financial Year 2018-19. |
Policy to promote Board Diversity |
This Policy endeavours to promote diversity at Board level, with a view to enhance its effectiveness. |
Policy on Familiarization Programmes for Independent Directors |
Your Company has a Policy on Familiarization Programmes for Independent Directors, which lays down the practices followed by the Company in this regard, on a continuous basis. |
Human Rights Policy |
Your Company has in place, a Human Rights Policy which demonstrates the Companyâs commitment to respect human rights and treat people with dignity and respect in the course of conduct of its business. |
34. MANAGERIAL REMUNERATION:
It is hereby confirmed that the remuneration paid to Directors, Key Managerial Personnel and other Employees of the Company during the Financial Year 2018-19 was as per the Nomination and Remuneration Policy of the Company.
Disclosure as per the provisions of Section 197 of the Companies Act, 2013 and Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:
(i) The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the Financial Year 2018-19 and the ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the Financial Year 2018-19 is as under: |
||||
Sr. No. |
Name of Director/KMP and Designation |
Remuneration of Director / KMP for the Financial Year 2018-19 (Rs. in Lakh) |
% increase in Remuneration in the Financial Year 2018-19 |
Ratio of Remuneration of each Director to Median Remuneration of Employees |
1. |
Mr. Nadir B. Godrej, Chairman, Non-Executive Non- Independent Director |
Nil |
Nil |
|
2. |
Mr. Ashok V. Hiremath, Managing Director |
160.81 |
23.82% |
56.30 : 1 |
3. |
Mr. Arijit Mukherjee, Whole Time Director |
64.11 |
31.72% |
23.87 : 1 |
4. |
Mr. Balram Singh Yadav, Non-Executive Non- Independent Director |
Nil |
Nil |
|
5. |
Mr. Rakesh Dogra, Non-Executive Non-Independent Director |
Nil |
- |
Nil |
6. |
Mr. Brahma Nand Vyas, Non-Executive Independent Director |
Nil |
- |
Nil |
7. |
Mr. Vijay Kashinath Khot, Non-Executive Independent Director |
Nil |
- |
Nil |
8. |
Mr. Sitendu Sharma, Non- Executive Independent Director |
Nil |
- |
Nil |
9. |
Mr. Vinod Malshe, Non-Executive Independent Director |
Nil |
- |
Nil |
10. |
Dr. Leena Raje, Non-Executive Independent Director |
Nil |
- |
Nil |
11. |
Mr. Saurav Bhala, Chief Financial Officer |
41.64 |
17.07% |
Not Applicable |
12. |
Ms. Tejal Jariwala *, Company Secretary & Compliance Officer |
7.87 |
33.31% |
|
13. |
Ms. Tejashree Pradhan **, Company Secretary & Compliance Officer |
Nil |
Not Applicable |
|
*Resigned with effect from close of business hours on 31st October, 2018 **Appointed with effect from 1st November, 2018 |
||||
(ii) The percentage increase in the median remuneration of employees in the Financial Year |
9.15% |
|||
(iii) The number of permanent employees on the rolls of Company |
312 as on 31st March, 2019 |
(iv) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last Financial Year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration |
Average percentage increase in Remuneration of Employees during the Financial Year 2018-19 was 7.77% as compared to Average percentage increase in remuneration of Managerial Personnel which was 51.12%. |
35. PARTICULARS OF EMPLOYEES:
The disclosure as per Section 197(12) of the Companies Act, 2013 read with Rule 5 (2) and Rule 5 (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, forms part of this Report. However, as per the provisions of Section 136 of the Companies Act, 2013, the Report and Financial Statements are being sent to the Shareholders, excluding the disclosure on particulars of employees. This is available for inspection by the Shareholders at the Registered Office of your Company during business hours (i.e., from 10.00 a.m. to 5.30 p.m.) on working days of the Company upto the date of the ensuing 25th (Twenty Fifth) Annual General Meeting. If any Shareholder is interested in obtaining a copy thereof, such Shareholder may write an e-mail to astecinvestors@ godrejastec.com.
36. DISCLOSURES AS PER THE COMPANIES (ACCOUNTS) RULES, 2014:
1 |
Change in Nature of Business, if any None |
|||
2 |
Details of Directors / Key Managerial Personnel (KMP) who were appointed or have resigned during the Financial Year 2018-19 |
|||
Sr. |
Name of Director / KMP |
Date of Appointment / Re-appointment / Resignation |
||
(i) |
Ms. Tejal Jariwala |
Resigned as the âCompany Secretary & Compliance Officerâ with effect from close of business hours on 31st October, 2018 |
||
(ii) |
Ms. Tejashree Pradhan |
Appointed as the âCompany Secretary & Compliance Officerâ with effect from 1st November, 2018 |
||
3 |
Names of Companies which have become or have ceased to be its Subsidiaries, Joint Ventures or Associate Companies during the Financial Year 2018-19 |
None |
||
4 |
Details of Deposits covered under Chapter V of the Companies Act, 2013 |
(i) Accepted during the year: Nil (ii) Remained unpaid or unclaimed during the year: Nil (iii) Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and total amount involved: a. At the beginning of the year : Nil b. Maximum during the year : Nil c. At the end of the year : Nil (iv)Details of Deposits which are not in compliance with the requirements of Chapter V of the Companies Act, 2013: None |
||
5 |
Details of Significant and Material Orders passed by the Regulators or Courts or Tribunals, impacting the going concern status and the Companyâs operations in future |
No significant and material orders have been passed by the regulators or Courts or Tribunals which impact the going concern status and the Companyâs operations in future. |
6 |
Details in respect of Adequacy of Internal Financial Controls with reference to the Financial Statement |
Adequate internal control checks are available in the opinion of the Board of Directors. |
37. EXTRACT OF ANNUAL RETURN:
The Extract of Annual Return as provided under sub-section (3) of Section 92 of the Companies Act, 2013 and the Companies (Management and Administration) Rules, 2014, is given in Form MGT-9 and is annexed herewith as âAnnexure Dâ, which forms a part of this Directorsâ Report. The Extract of Annual Return in Form MGT-9 and the Annual Return in Form MGT-7 are being hosted on the website of the Company www.astecls.com at the weblink http://www.astecls.com/other-updates.aspx.
38. INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
COMPULSORY TRANSFER OF EQUITY SHARES TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF) SUSPENSE ACCOUNT:
Pursuant to the applicable provisions of the Companies Act, 2013, read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (âIEPF Rulesâ), all the Unpaid or Unclaimed Dividends are required to be transferred to the IEPF established by the Central Government, upon completion of 7 (seven) years. The Company in compliance with the aforesaid provisions and the IEPF Rules.
UNCLAIMED/UNPAID DIVIDEND:
The dividend amount for the Financial Year 2011-12 remaining unclaimed shall become due for transfer on 25th October, 2019 to the Investor Education and Protection Fund established by the Central Government in terms of Section 124 of the Companies Act, 2013 on expiry of 7 (seven) years from the date of its declaration. The Company is in the process of sending reminders to all such Shareholders at their registered addresses for claiming the unpaid/unclaimed dividend, which will be transferred to IEPF in the due course.
The detailed dividend history, due dates for transfer to IEPF, and the details of unclaimed amounts lying with the Company in respect of dividends declared since 2010 are available on website of the Company, www.astecls.com at the weblink http://www.astecls.com/unclaimed-dividend.aspx. Also, pursuant to Section 124(2) of the Companies Act, 2013, the Company has uploaded details of unpaid and unclaimed amounts lying with the Company in respect of dividends declared in Financial Year 2017-18, on the website of the Company.
39. EXPLANATION OR COMMENTS BY THE BOARD ON EVERY QUALIFICATION, RESERVATION OR ADVERSE REMARK OR DISCLAIMER MADE BY THE STATUTORY AUDITORS AND THE SECRETARIAL AUDITORS:
There are no adverse remarks or qualifications, reservations, remarks or disclaimers made by the Statutory Auditors and Secretarial Auditors in their respective Reports for the Financial Year 2018-19.
40. MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR 2018-19 TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE DIRECTORSâ REPORT (I.E., FROM 1st APRIL, 2019 UPTO 30th APRIL, 2019), IF ANY:
There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the Financial Year 2018-19 to which the Financial Statements relate and the date of the Directorsâ Report (i.e., from 1st April, 2019 upto 30th April, 2019).
41. EMPLOYEE STOCK OPTIONS PLAN, 2012 AND EMPLOYEE STOCK OPTIONS SCHEME, 2015:
Your Company has introduced the following Employee Stock Options Plan and Scheme:
Sr. No. |
Name of the Plan / Scheme |
Date of Shareholdersâ Approval |
Exercise Price of Option |
1) |
Employee Stock Options Plan, 2012 (âESOP 2012â) |
Special Resolution passed at the Extra-ordinary General Meeting held on 27th March, 2012 |
Rs. 34/- (Rupees Thirty Four Only) per Option |
2) |
Employee Stock Options Scheme, 2015 (âESOS 2015â) |
Special Resolution passed at the 21st (Twenty First) Annual General Meeting held on 22nd September, 2015 |
The Company shall use Fair Value Method to value its Options. The Exercise Price for the Options will be the Closing Market Price of the Equity Shares of the Company listed on the recognized Stock Exchange as on the date immediately prior to the relevant date of the grant of the Options to the Eligible Employees and Eligible Directors. |
The Compensation Committee of the Board of Directors administers and monitors the ESOP 2012 and ESOS 2015. Your Company has received a certificate from the Statutory Auditors of the Company that the ESOP 2012 and ESOS 2015 have been implemented in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the resolutions passed by the Shareholders. The Certificate would be kept open for inspection by the Shareholders at the ensuing 25th (Twenty Fifth) Annual General Meeting.
The Disclosures as per Regulation 14 of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 have been put on the website of the Company, viz., www. astecls.com at the weblink http://www.astecls.com/listing-compliance.aspx.
42. FRAUD REPORTING:
There have been no instances of frauds reported by the Auditors under Section 143(12) of the Companies Act, 2013 and the Rules framed thereunder, either to the Company or to the Central Government.
43. ADDITIONAL INFORMATION:
The additional information required to be given under the Companies Act, 2013 and the Rules made thereunder, has been laid out in the Notes attached to and forming part of the Financial Statements. The Notes to the Accounts referred to the Auditorsâ Report are self-explanatory and therefore do not call for any further explanation.
44. LISTING FEES:
Your Company has paid requisite annual listing fees to BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE) where its securities are listed.
45. DEPOSITORY SYSTEM:
Your Companyâs Equity Shares are available for dematerialization through National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
46. RESEARCH AND DEVELOPMENT (R&D):
Your Company continues to focus on R&D and strongly believes that productive R&D is a key ingredient for success. During the Financial Year under review, your Company continued to develop new products at a healthy pace.
47. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as âAnnexure Eâ.
48. HUMAN RESOURCES:
The Company has amicable employee relations at all locations and would like to place on record its sincere appreciation for the unstinted support it continues to receive from all its employees. The Company drives interventions to enhance the workforce productivity in the business and also makes concrete efforts to improve the employee engagement and connect. The Company is committed to building and maintaining a safe and healthy workplace. There are several policies formulated for the benefit of employees, which promote gender diversity, equal opportunity, prevention of sexual harassment, safety and health of employees. The Company constantly makes concerted efforts towards creating learning and development opportunities on a non-discriminatory basis, that continually enhance the employee value in line with the organizational objectives.
49. APPRECIATION:
Your Directors wish to place on record their sincere appreciation for the support and co-operation received from the various Central and State Government Departments, organizations and agencies for their continued support and co-operation. The Directors also gratefully acknowledge all stakeholders of the Company, viz., customers, members, dealers, vendors, banks and other business partners for excellent support received from them during the Financial Year under review. Your Directors also express their warm appreciation to all the employees of the Company for their unstinted commitment and continued contribution to the Company.
50. CAUTIONARY STATEMENT:
Statements in the Boardâs Report and the Management Discussion and Analysis Report describing the Companyâs objectives, expectations or forecasts may be forward-looking within the meaning of applicable Securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companyâs operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigations and industrial relations.
For and on behalf of the Board of Directors of
Astec LifeSciences Limited
Ashok V. Hiremath Arijit Mukherjee
Managing Director Whole Time Director
DIN: 00349345 DIN: 07334111
Place: Mumbai
Date: 30th April, 2019
Mar 31, 2018
To the Shareholders,
The Companyâs Directors are pleased to present the 24th (Twenty Fourth) Annual Report alongwith the Audited Financial Statements for the Financial Year ended 31st March, 2018.
1. Highlights of Performance
Your Companyâs financial performance during the Financial Year 2017-18 as compared to that of the previous Financial Year 2016-17 is summarized below:-
(Rs. in Lakh)
Particulars |
Standalone |
Consolidated |
||
2017-18 |
2016-17 |
2017-18 |
2016-17 |
|
Revenue from Operations |
37,084.52 |
31,275.74 |
37,084.52 |
31,340.35 |
Other Income |
810.62 |
284.54 |
810.62 |
286.23 |
Total Income |
37,895.14 |
31,560.28 |
37,895.14 |
31,626.58 |
Profit before Interest, Depreciation & Tax |
7,685.74 |
6,513.22 |
7,690.13 |
6,526.23 |
Less: Finance Charges |
1,065.90 |
1,222.98 |
1,066.03 |
1,223.53 |
Less: Depreciation |
1,467.27 |
1,367.31 |
1,468.15 |
1,368.19 |
Profit /(Loss) before Exceptional Items and Tax |
5,152.57 |
3,922.93 |
5,155.95 |
3,934.51 |
Less: Exceptional Profit /(Loss) |
415.21 |
(1,060.21) |
415.21 |
(1,060.21) |
Profit /(Loss) before Tax |
5,567.78 |
2,862.72 |
5,571.16 |
2,874.30 |
Less: Provision for Current Tax |
1,737.13 |
609.27 |
1,738.51 |
612.41 |
Less: Provision for Deferred Tax |
206.99 |
344.03 |
207.77 |
344.03 |
Less: Adjustment for tax of previous years |
126.58 |
- |
121.14 |
- |
Profit/(Loss) After Tax |
3,497.08 |
1,909.42 |
3,503.74 |
1,917.86 |
Other Comprehensive Income (Net of tax) |
(28.30) |
(10.64) |
(28.89) |
(4.97) |
Total Comprehensive Income |
3,468.78 |
1,898.78 |
3,474.85 |
1,912.90 |
Total Comprehensive Income attributable to: |
||||
- Owners of Astec LifeSciences Limited |
N.A. |
N.A. |
3,461.51 |
1,906.81 |
- Non-controlling interests |
N.A. |
N.A. |
13.34 |
6.09 |
(N.A.: Not Applicable)
2. Review of Operations / State of Affairs Standalone:
For the Financial Year ended 31st March, 2018, Operating Profit, i.e., Earnings Before Interest, Tax, Depreciation and Amortization (âEBITDAâ) is Rs.7,685.74 Lakh, against Operating Profit of Rs.6,513.22 Lakh reported for the Financial Year ended 31st March, 2017. Profit after Tax is Rs.3,497.08 Lakh for the Financial Year ended 31st March, 2018, as compared to the Profit after Tax of Rs.1,909.42 Lakh reported for the Financial Year ended 31st March, 2017.
Consolidated:
For the Financial Year ended 31st March, 2018, Operating Profit, i.e., EBITDA is Rs.7,690.13 Lakh, against Operating Profit of Rs.6,526.23 Lakh reported for the Financial Year ended 31st March, 2017, Profit after Tax is Rs.3,503.74 Lakh for the Financial Year ended 31st March, 2018, as compared to the Profit after Tax of Rs.1,917.86 Lakh reported for the Financial Year ended 31st March, 2017.
3. Dividend
Your Directors have recommended a Final Dividend for the Financial Year 2017-18 at the rate of 15% (Fifteen per cent), i.e., Rs.1.50 (Rupee One and Paise Fifty Only) per Equity Share of Face Value of Rs.10/- (Rupees Ten Only) each, subject to approval of the Shareholders at the ensuing 24th (Twenty Fourth) Annual General Meeting.
The Dividend will be paid to the Registered Shareholders whose names appear in the Register of Members of the Company as on Saturday, 21st July, 2018 and in respect of shares held in dematerialised form, it will be paid to Registered Shareholders whose names are furnished by National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), as the beneficial owners as on that date.
The Dividend payout for the Financial Year under review is in accordance with the Companyâs Dividend Distribution Policy.
4. Particulars of Loans, Guarantees and Investments
The details of Loans, Guarantees and Investments covered under Section 186 of the Companies Act, 2013 forms a part of the Notes to the Financial Statements provided in the Annual Report for the Financial Year 2017-18.
5. Change in Registered Office
During the year under review, the Board of Directors considered and approved the shifting of the Registered Office of the Company from 7th Floor, Elite Square, 274 Perin Nariman Street, Fort, Mumbai - 400 001, Maharashtra to âGodrej Oneâ, 3rd Floor, Pirojshanagar, Eastern Express Highway, Vikhroli (East), Mumbai - 400 079, Maharashtra with effect from 1st June, 2017. The shifting of the Registered Office as aforesaid was in the best interests of the Company, its Employees and Stakeholders.
6. Share Capital
The Paid-up Equity Share Capital as on 31st March, 2018 was Rs.19,52,76,550/- (Rupees Nineteen Crore Fifty Two Lakh Seventy Six Thousand Five Hundred and Fifty Only). During the Financial Year under review, the Company has allotted 10,800 (Ten Thousand Eight Hundred) Equity Shares of Face Value of Rs.10/- (Rupees Ten Only) each pursuant to exercise of Options by the employees of the Company under Employee Stock Options Plan, 2012 (ESOP 2012) and 4,000 (Four Thousand) Equity Shares of Face Value of Rs.10/- (Rupees Ten Only) each pursuant to exercise of Options by the employees of the Company under Employee Stock Options Scheme, 2015 (ESOS 2015).
7. Management Discussion and Analysis Report
There is a separate section on Management Discussion and Analysis Report forming a part of the Annual Report of the Company, which includes the following:
- Industry Structure and Developments;
- Discussion on Financial Performance with respect to Operational Performance;
- Segment - wise or Product - wise Performance;
- Material Developments in Human Resources / Industrial Relations front and Number of people employed;
- Opportunities and Threats;
- Internal Control Systems and their Adequacy;
- Risk and Concerns;
- Outlook.
8. Godrej Agrovet Limited (Holding Company)
Godrej Agrovet Limited is, inter-alia, engaged in the business of manufacture and marketing of Animal Feeds, Agricultural Inputs and Oil Palm. The shareholding of Godrej Agrovet Limited in the Company as on 31st March, 2018 was 57.44% [i.e. 1,12,17,885 (One Crore Twelve Lakh Seventeen Thousand Eight Hundred Eighty Five) Equity Shares of Face Value of Rs.10/- (Rupees Ten Only) each] of the Paid-up Equity Share Capital of the Company. Godrej Agrovet Limited got listed on the Stock Exchanges, viz., BSE Limited and National Stock Exchange of India Limited on 16th October, 2017.
9. Subsidiary Companies
Your Company had following Subsidiary Companies during the Financial Year 2017-18:
Sr. No. |
Name of the Subsidiary Company |
Shareholding in % |
Nature of Activity |
Review of Operations and Financial Performance of Subsidiary Companies |
1 |
Behram Chemicals Private Limited |
65.63% |
This company has given its Plot at Mahad (Maharashtra) to Astec LifeSciences Limited on Leave and License basis. |
For the Financial Year ended 31st March, 2018, Operating Profit, i.e., EBITDA is Rs.7.44 Lakh, against Operating Profit of Rs.10.22 Lakh reported for the Financial Year ended 31st March, 2017, Profit After Tax is Rs.9.80 Lakh for the Financial Year ended 31st March, 2018, as compared to the Profit After Tax of Rs.6.45 Lakh reported for the Financial Year ended 31st March, 2017. |
2 |
Astec Europe Sprl |
50.10% |
This foreign subsidiary company, having its Registered Office in Belgium, Europe, is engaged in the business of distribution of Agrochemicals. |
For the Financial Year 31st March, 2018, Operating Profit / (Loss), i.e., EBITDA was Rs. (1.65) Lakh, against Operating Profit of Rs.8.55 Lakh reported for the Financial Year ended 31st March, 2017, Profit/ (Loss) After Tax was Rs. (1.75) Lakh for the Financial Year 31st March, 2018, as compared to Profit After Tax of Rs.7.77 Lakh reported for the Financial Year ended 31st March, 2017. |
3 |
Comercializadora Agricola Agroastrachem Cia Ltda |
100% |
This foreign subsidiary company, having its Registered Office in Bogota, Colombia, is engaged in the business of obtaining product registrations in conformity with local laws of the country. This company is yet to start any major commercial activity. |
For the Financial Year 31st March, 2018, Operating Profit / (Loss), i.e., EBIDTA of Rs. (1.42) Lakh against Operating Profit / (Loss) of (5.72) Lakh reported for the Financial Year ended 31st March, 2017, Profit / (Loss) after Tax was Rs. (1.42) Lakh for the Financial Year 31st March, 2018, as compared to Profit/ (Loss) after Tax of Rs. (5.75) Lakh reported for the Financial Year ended 31st March, 2017. |
Report on Performance and Financial Position of Subsidiary Companies:
Report on Performance and Financial Position of each of the Subsidiary Companies included in Consolidated Financial Statement forms a part of the Directorâs Report and is annexed herewith in Form AOC-1 as âAnnexure Aâ.
10. Consolidated Financial Statements
The Consolidated Financial Statements of your Company are prepared in accordance with the relevant Indian Accounting Standards (Ind AS), i.e., Ind AS 110 issued by the Institute of Chartered Accountants of India (ICAI) and form a part of this Annual Report. Accordingly, the Annual Report of your Company does not contain the Financial Statements of its subsidiary companies. The Annual Accounts and related information of the Companyâs subsidiaries will be made available upon request.
In accordance with Section 136 of the Companies Act, 2013, the Audited Financial Statements, including Consolidated Financial Statements and related information of the Company and Audited Accounts of each of the subsidiaries, are available on the Companyâs website, www.astecls.com. These documents will also be available for inspection during all days except Saturdays, Sundays and Public Holidays between 10.00 a.m. (IST) to 4.00 p.m. (IST) at the Companyâs Registered Office in Mumbai, Maharashtra.
The Company did not have any Joint Venture / Associate during the Financial Year under review. The Company has 3 (three) subsidiaries, viz.: (1) Behram Chemicals Private Limited, (2) Astec Europe Sprl, and (3) Comercializadora Agricola Agroastrachem Cia Ltda.
1 1 . Directors
In accordance with the provisions of Section 152(6) of the Companies Act, 2013 and the Companyâs Articles of Association, Mr. Balram Singh Yadav, Non-Executive Non-Independent Director of the Company is liable to retire by rotation at the forthcoming 24th (Twenty Fourth) Annual General Meeting (AGM), and being eligible, has offered himeself for re-appointment.
Upon recommendation of the Nomination and Remuneration Committee of the Board of Directors and as approved by the Board of Directors at their Meetings held on 17th January, 2018, Mr. Ashok V. Hiremath is re-appointed as the âManaging Directorâ of the Company for a period starting from 20th January, 2018 upto 31st March, 2019, subject to approval of Shareholders at the ensuing AGM on the terms and condition as may be approved by the Shareholders.
Appropriate resolutions for re-appointment of Mr. Balram Singh Yadav as the âNon-Executive NonIndependent Directorâ and Mr. Ashok V. Hiremath as the âManaging Directorâ, are being moved at the ensuing 24th (Twenty Fourth) AGM, which the Board recommends for your approval.
Your Company has received declarations from Mr. Sitendu Sharma, Mr. Vinod Malshe, Dr. Leena Raje, Mr. Vijay Kashinath Khot and Dr. Brahma Nand Vyas, Independent Directors of the Company, confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 and Regulation 16(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Meetings:
The Board of Directors of your Company met 5 (Five) times during the Financial Year ended 31st March, 2018. The details of Board Meetings and the attendance of the Directors thereat are provided in the Corporate Governance Report. The intervening time gap between two consecutive Meetings was within the period prescribed under the Companies Act, 2013.
Board Evaluation:
The Board has carried out an Annual Performance Evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Committees. A structured questionnaire was prepared after taking into consideration various aspects of the Boardâs functioning, composition of the Board and its Committees, culture, execution and performance of specific duties, obligations and governance. The performance evaluation of the Chairman and Non - Independent Directors was carried out by the Independent Directors. The confidential online questionnaire was responded to by all the Directors and vital feedback was received from them on how the Board currently operates and how it might improve its effectiveness. The Board of Directors has expressed its satisfaction with the evaluation process.
Directorsâ Responsibility Statement:
Pursuant to Section 134 of the Companies Act, 2013 (âthe Actâ), your Directors, to the best of their knowledge and ability, confirm as under:
a) that in the preparation of the Annual Accounts for the Financial Year ended 31st March, 2018, the applicable Accounting Standards have been followed along with proper explanation relating to material departures, if any;
b) that such accounting policies have been selected and applied consistently, and such judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018 and the profit of the Company for the Financial Year ended as at that date;
c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company, for preventing and detecting fraud and other irregularities;
d) that the Annual Accounts for the Financial Year ended 31st March, 2018 have been prepared on a going concern basis;
e) that proper Internal Financial Controls were in place and that the Financial Controls were adequate and were operating effectively;
f) that proper systems are in place to ensure compliance of all laws applicable to the Company and that such systems are adequate and operating effectively.
12. Auditors
Statutory Auditors:
M/s. B S R & Co. LLP, Chartered Accountants were appointed as Statutory Auditors of the Company by the Shareholders at the 23rd (Twenty Third) Annual General Meeting held on 28th July, 2017 for a term of 5 (five) consecutive years subject to ratification by the Members at every Annual General Meeting. In this regard, M/s. B S R & Co., LLP, Chartered Accountants have submitted their written consent that they are eligible and qualified to be re-appointed as Statutory Auditors of the Company in terms of Section 139 of the Companies Act, 2013 and also satisfy the criteria provided in Section 141 of the Companies Act, 2013. Accordingly, the Board recommends ratification of the appointment of M/s. B S R & Co. LLP, Chartered Accountants as the Statutory Auditors of the Company at the ensuing Annual General Meeting.
Cost Auditors:
Pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 and the Companies (Cost Records and Audit) Rules, 2014, the cost records maintained by your Company are required to be audited. Your Directors had, on recommendation of the Audit Committee, at its Meeting held on 4th May, 2017 re-appointed M/s. NNT & Co., Cost Accountants, Mumbai (Firm Registration Number: 28904) as the Cost Auditors of the Company for the Financial Year 2017-18.
Secretarial Auditors:
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Directors had, on recommendation of the Audit Committee, at its Meeting held on 4th May, 2017 appointed M/s. BNP & Associates, a firm of Company Secretaries in Practice (Certificate of Practice Number: 2311), Mumbai to undertake the Secretarial Audit of the Company for the Financial Year 2017-18.
The Secretarial Audit Report issued by M/s. BNP & Associates, Secretarial Auditors for the Financial Year ended 31st March, 2018 is annexed herewith as âAnnexure Bâ.
13. Composition of Audit Committee of the Board of Directors
Pursuant to the provisions of Section 177 of the Companies Act, 2013 and Regulation 18 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee of the Board of Directors comprises of the following Members:-
Name of the Member |
Designation |
Mr. Sitendu Sharma |
Chairman (Independent Director) |
Mr. Vinod Malshe |
Member (Independent Director) |
Dr. Leena Raje |
Member (Independent Director) |
Mr. Vijay Kashinath Khot |
Member (Independent Director) |
Mr. Ashok V. Hiremath |
Member (Managing Director) |
Mr. Balram Singh Yadav |
Member (Non-Executive, Non-Independent Director) |
Audit Committee Meetings were held 4 (four) times during the Financial Year 2017-18 (on 4th May, 2017, 28th July, 2017, 25th October, 2017 and 31st January, 2018). The Board has accepted all the recommendations of the Audit Committee.
14. Composition of Nomination and Remuneration Committee of the Board of Directors
Pursuant to the provisions of Section 178 of the Companies Act, 2013 and Regulation 19 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has constituted its Nomination and Remuneration Committee of the Board of Directors comprising of the following Members:-
Name of the Member |
Designation |
Mr. Vinod Malshe |
Chairman (Independent Director) |
Dr. Leena Raje |
Member (Independent Director) |
Mr. Balram Singh Yadav |
Member (Non-Executive, Non-Independent Director) |
Nomination and Remuneration Committee Meetings were held 4 (Four) times during the Financial Year 2017-18 (on 4th May, 2017, 28th July, 2017, 25th October,2017 and 17th January, 2018).
15. Corporate Social Responsibility (âCSRâ)
Composition of CSR Committee of the Board of Directors:
Pursuant to the provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, the CSR Committee of the Board of Directors comprises of the following Members:-
Name of the Member |
Designation |
Mr. Vinod Malshe |
Chairman (Independent Director) |
Dr. Leena Raje |
Member (Independent Director) |
Mr. Balram Singh Yadav |
Member (Non-Executive, Non-Independent Director) |
Mr. Ashok V. Hiremath |
Member (Managing Director) |
CSR Committee Meetings were held 2 (two) times during the Financial Year 2017-18 (on 4th May, 2017 and 28th July, 2017).
Areas of CSR Expenditure:
A brief outline of the Companyâs CSR Policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR Policy is as under:
The CSR Policy of your Company aligns itself with the Godrej Groupâs âGood & Greenâ vision of creating a more inclusive and greener India. Each of your Companyâs CSR projects are aligned with the Good & Green goals of the Group and correspond to different items listed in Schedule VII to the Companies Act, 2013.
Your Company aspires to become a sustainable Company through leadership commitment, multiple stakeholder engagements and disciplined value chain mechanisms. Your Companyâs holistic approach towards sustainability not only manages its externalities but also integrates the prevalent social and environmental issues into business strategies to provide tangible solutions which benefit the communities around its manufacturing sites brings upliftment for holistic development of the communities.
The CSR Policy of your Company is uploaded on the website, viz., www.astecls.com.
Amount of CSR spending:
Your Company was required to spend Rs.34,01,324/- (Rupees Thirty Four Lakh One Thousand Three Hundred Twenty Four Only) towards CSR Activities in terms of provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, during the Financial Year 2017-18. Your Company has spent Rs.34,44,457/- (Rupees Thirty Four Lakh Forty Four Thousand Four Hundred Fifty Seven Only) towards CSR Activities. Your Company is in process of taking up different projects for the improvement of sanitation, health and education for the people in the areas where it operates.
Annual Report on CSR Activities:
The Annual Report on CSR Activities for the Financial Year 2017-18 is annexed herewith as âAnnexure Câ.
16. Risk Management
Pursuant to the requirement of Regulation 21 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has constituted a Risk Management Committee of the Board of Directors comprising of the following Members:-
Name of the Member |
Designation |
Mr. Ashok V. Hiremath |
Chairman (Managing Director) |
Mr. Balram Singh Yadav |
Member (Non-Executive, Non-Independent Director) |
Mr. Sitendu Sharma |
Member (Independent Director) |
Mr. P. P. Manoj |
Member (Chief Financial Officer)- upto 17th October, 2017 |
Mr. Saurav Bhala |
Member (Chief Financial Officer)- w.e.f. 25th October, 2017 |
Risk Management Committee Meeting was held once during the Financial Year 2017-18 (on 4th May, 2017).
The details of the Risk Management Committee and its terms of reference are set out in the Corporate Governance Report forming a part of the Annual Report.
Your Company continuously monitors business and operational risks. All key functions and divisions are independently responsible to monitor risks associated within their respective areas of operations such as production, insurance, legal and other issues like health, safety and environment.
17. Related Party Transactions
All Related Party Transactions entered into by your Company during the Financial Year 2017-18 were on armâs length basis and in the ordinary course of business. There were no material significant Related Party Transactions entered into by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company. Prior approval of the Audit Committee of the Board of Directors was obtained for all the Related Party Transactions. Accordingly, as per provisions of Sections 134(3)(h) and 188 of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014 regarding disclosure of Related Party Transactions in Form AOC-2 is not applicable. Attention of Shareholders is also drawn to the disclosure of transactions with related parties as set out in Note No. 44 of Standalone Financial Statements, forming part of the Annual Report. None of the Directors have any pecuniary relationships or transactions vis-a-vis the Company.
The Company has entered into Related Party Transactions with Godrej Agrovet Limited, its Promoter, based on considerations of various business exigencies, such as synergy in operations, sectoral specialisation and the Companyâs long term strategy for sectoral investments, profitability, liquidity and capital resources. All Related Party Transactions are on armsâ length basis and are intended to further the Companyâs interests.
18. Policies of the Company
The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âListing Regulationsâ) mandated the formulation of certain policies for all listed companies. All our Corporate Governance Policies are available on the Companyâs website, www.astecls.com. The Policies are reviewed periodically by the Board and its Committees and are updated based on the need and new compliance requirement.
The key policies that have been adopted by the Company are as follows:
19. Managerial Remuneration
It is hereby confirmed that the remuneration paid to Directors, Key Managerial Personnel and other Employees during the Financial Year 2017-18 was as per the Nomination and Remuneration Policy of the Company.
Disclosure as per provisions of Section 197 of the Companies Act, 2013 and Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
20. Particulars of employees
The disclosure as per Section 197(12) of the Companies Act, 2013 read with Rule 5 (2) and Rule 5 (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, forms part of this Report. However, as per the provisions of Section 136 of the Companies Act, 2013, the Report and Financial Statements are being sent to the Shareholders, excluding the disclosure on particulars of employees. This is available for inspection by the Shareholders at the Registered Office of your Company during business hours on working days of the Company up to the date of the ensuing 24th (Twenty Fourth) Annual General Meeting. If any Shareholder is interested in obtaining a copy thereof, such Shareholder may write an email to [email protected].
21. Disclosures as per the Companies (Accounts) Rules, 2014
22. Extract of Annual Return
The Extract of Annual Return as provided under sub-section (3) of Section 92 of the Companies Act, 2013 and the Companies (Management and Administration) Rules, 2014, is given in Form MGT-9 and is annexed herewith as âAnnexure Dâ, which forms a part of this Directorsâ Report.
23. Investor Education and Protection Fund (IEPF)
Compulsory transfer of Equity Shares to Investor Education and Protection Fund (IEPF) Account:
Pursuant to the applicable provisions of the Companies Act, 2013, read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (âIEPF Rulesâ), all the Unpaid or Unclaimed Dividends are required to be transferred to the IEPF established by the Central Government, upon completion of 7 (seven) years. The Company in compliance with the aforesaid provisions and the IEPF Rules has transferred 2,724 (Two Thousand Seven Hundred Twenty Four) Equity Shares of the Face Value of Rs.10/- each belonging to 41 (Forty One) Shareholders underlying the unclaimed dividends for the Financial Year 2009-10 as the base. The market value of the Equity Shares transferred is ~ Rs.15.81 Lakh considering the Share Price as on 31st March, 2018.
Unclaimed/Unpaid Dividend:
The dividend amount for the Financial Year 2010-11 remaining unclaimed shall become due for transfer on 23rd October, 2018 to the Investor Education and Protection Fund established by the Central Government in terms of Section 124 of the Companies Act, 2013 on expiry of 7 (Seven) years from the date of itâs declaration. Your Company is in the process of sending reminders to all such Shareholders at their registered addresses for claiming the unpaid / unclaimed dividend, which will be transferred to IEPF in the due course.
The detailed dividend history, due dates for transfer to IEPF, and the details of unclaimed amounts lying with the Company in respect of dividends declared since 2010 are available on website of the Company, www.astecls.com. Also, pursuant to Section 124(2) of the Companies Act, 2013, the Company has uploaded details of unpaid and unclaimed amounts lying with the Company in respect of dividends declared upto Financial Year 2016-17, on the website of the Company.
24. Explanation or Comments by the Board on every Qualification, Reservation or Adverse Remark or Disclaimer made by the Statutory Auditors and the Secretarial Auditors
There are no adverse remarks or qualifications, reservations, remarks or disclaimers made by the Statutory Auditors and Secretarial Auditors in their Report for the Financial Year 2017-18.
25. Material Changes and Commitments, if any, affecting the Financial Position of the Company which have occurred between the end of the Financial Year 2017-18 to which the Financial Statements relate and the date of the Directorsâ Report (i.e., from 1st April, 2018 upto 2nd May, 2018), if any
There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the Financial Year 2017-18 to which the Financial Statements relate and the date of the Directorsâ Report (i.e., from 1st April, 2018 upto 2nd May, 2018).
26. Employee Stock Options Plan, 2012 and Employee Stock Options Scheme, 2015
Your Company has introduced the following Employee Stock Options Plan and Scheme:
Sr. No. |
Name of the Plan / Scheme |
Date of Shareholdersâ Approval |
Exercise Price of Option |
1) |
Employee Stock Options Plan, 2012 (âESOP 2012â) |
Special Resolution passed at the Extraordinary General Meeting held on 27th March, 2012 |
Rs.34/- (Rupees Thirty Four Only) per Option |
2) |
Employee Stock Options Scheme, 2015 (âESOS 2015â) |
Special Resolution passed at the 21st (Twenty First) Annual General Meeting held on 22nd September, 2015 |
The Company shall use Fair Value Method to value its Options. The Exercise Price for the Options will be the Closing Market Price of the Equity Shares of the Company listed on the recognized Stock Exchange as on the date immediately prior to the relevant date of the grant of the Options to the Eligible Employees and Eligible Directors. |
The Compensation Committee of the Board of Directors administers and monitors the ESOP 2012 and ESOS 2015. Your Company has received a certificate from the Statutory Auditors of the Company that the ESOP 2012 and ESOS 2015 have been implemented in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the resolution passed by the Shareholders. The Certificate would be kept open for inspection by the Shareholders at the ensuing 24th (Twenty Fourth) Annual General Meeting.
The Disclosures as per Regulation 14 of the Securities and Exchange Board of India (Share Based Employee Benefit) Regulation, 2014 have been put on the website of the Company, viz., www.astecls.com.
27. Listing Fees
Your Company has paid requisite Annual Listing Fees to BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) where its securities are listed.
28. Research and Development (R&D)
Your Company continues to focus on R&D and strongly believes that productive R&D is a key ingredient for success. During the Financial Year under review, a number of new products were developed and many cost reduction schemes were initiated.
29. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as âAnnexure Eâ.
30. Depository System
Your Companyâs Equity Shares are available for dematerialisation through National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
Appreciation
Your Directors wish to place on record their sincere appreciation for the support and co-operation received from the various Central and State Government Departments, organizations and agencies for their continued support and co-operation. The Directors also gratefully acknowledge all stakeholders of the Company, viz., Customers, Shareholders, Dealers, Vendors, Banks and other Business Partners for excellent support received from them during the Financial Year under review. Your Directors also express their warm appreciation to all the employees of the Company for their unstinted commitment and continued contribution to the Company.
For and on behalf of the Board of Directors of
Astec LifeSciences Limited
Ashok V. Hiremath Arijit Mukherjee
Managing Director Whole Time Director
(DIN: 00349345) (DIN: 07334111)
Place: Mumbai
Date: 2nd May, 2018
Mar 31, 2017
DIRECTORS'' REPORT FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2017
To the Shareholders,
The Company''s Directors are pleased to present the 23rd (Twenty Third) Annual Report along with the Audited Financial Statements for the Financial Year ended 31st March, 2017.
1. Highlights of Financial Performance
Your Company''s financial performance during the Financial Year 2016-17 as compared to that of the previous Financial Year 2015-16 is summarized below:-
(Rs, in Lakh)
Particulars |
Stanc |
alone |
Conso |
idated |
2016-17 |
2015-16 |
2016-17 |
2015-16 |
|
Revenue from Operations (Gross) |
31,275.74 |
23,518.55 |
31,340.35 |
24,699.24 |
Other Income |
237.42 |
285.16 |
237.42 |
721.50 |
Total Income |
31,513.16 |
23,803.71 |
31,577.77 |
25,420.74 |
Profit before Interest, Depreciation & Tax |
6,513.22 |
3,359.80 |
6,526.23 |
3,877.65 |
Less: Finance Charges |
1,222.98 |
1,249.46 |
1,223.53 |
1,280.62 |
Less: Depreciation |
1,367.31 |
1,036.16 |
1,368.19 |
1,039.84 |
Profit /(Loss) before Exceptional Items and Tax |
3,922.93 |
1,074.18 |
3,934.51 |
1,557.19 |
Less: Exceptional Items |
1,060.21 |
314.76 |
1,060.21 |
314.76 |
Profit /(Loss) before Tax |
2,862.72 |
759.42 |
2,874.30 |
1,242.43 |
Less: Provision for Current Tax |
609.27 |
- |
612.41 |
2.64 |
Less: Provision for Deferred Tax |
344.03 |
724.04 |
344.03 |
733.15 |
Profit/(Loss) After Tax |
1,909.42 |
35.38 |
1,917.86 |
506.63 |
Other Comprehensive Income (Net of tax) |
(10.64) |
(6.37) |
(4.97) |
(21.92) |
Total Comprehensive Income |
1,898.78 |
29.01 |
1,912.90 |
484.71 |
Total Comprehensive Income attributable to: |
||||
- Owners of Astec LifeSciences Limited |
N.A |
N.A |
1,906.81 |
480.85 |
- Non-controlling interests |
N.A |
N.A |
6.09 |
3.86 |
(N.A: Not Applicable)
The Company has adopted Indian Accounting Standards (Ind AS) with effect from 1st April, 2016, pursuant to the notification of Companies (Indian Accounting Standard) Rules, 2015 issued by the Ministry of Corporate Affairs. Previous years'' figures have been restated and audited by our Statutory Auditor M/s. Shah & Kathariya, Chartered Accountants (Firm Registration No. 115171W).
2. Review of Operations / State of Affairs Standalone:
For the Financial Year ended 31st March, 2017, Operating Profit, i.e., Earnings Before Interest, Tax, Depreciation and Amortization ("EBITDA") is Rs,6,513.22 Lakh, against Operating Profit of Rs, 3,359.80 Lakh reported for the Financial Year ended 31st March, 2016. Profit After Tax is Rs,1,909.42 Lakh for the Financial Year ended 31st March, 2017, as compared to the Profit After Tax of Rs,35.38 Lakh reported for the Financial Year ended 31st March, 2016.
Consolidated:
For the Financial Year ended 31st March, 2017, Operating Profit, i.e., EBITDA is Rs,6,526.23 Lakh, against Operating Profit of Rs,3,877.64 Lakh reported for the Financial Year ended 31st March, 2016, Profit After Tax is Rs,1,917.86 Lakh for the Financial Year ended 31st March, 2017, as compared to the Profit After Tax of Rs,506.63 Lakh reported for the Financial Year ended 31st March, 2016.
3. Dividend
Your Directors have recommended a Final Dividend for the Financial Year 2016-17 at the rate of 15% (fifteen per cent), i.e., Rs,1.50/- (Rupee One and Paise Fifty Only) per Equity Share of Face Value of Rs,10/- (Rupees Ten Only) each, subject to approval of the Shareholders at the ensuing 23rd (Twenty Third) Annual General Meeting.
The Dividend will be paid to the Shareholders whose names appear in the Register of Members of the Company as on Tuesday, 18th July, 2017 and in respect of shares held in dematerialised form, it will be paid to Shareholders whose names are furnished by National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), as the beneficial owners as on that date.
The Dividend payout for the Financial Year under review is in accordance with the Company''s Dividend Distribution Policy.
4. Particulars of Loans, Guarantees and Investments
The details of Loans, Guarantees and Investments covered under Section 186 of the Companies Act, 2013 form a part of the Notes to the Financial Statements provided in this Annual Report.
5. Share Capital
The Paid-up Equity Share Capital as on 31st March, 2017 was Rs,19,51,28,550/- (Rupees Nineteen Crore Fifty One Lakh Twenty Eight Thousand Five Hundred and Fifty Only). During the Financial Year under review, the Company has allotted 57,800 (Fifty Seven Thousand Eight Hundred) Equity Shares of Face Value of Rs,10/- (Rupees Ten Only) each pursuant to exercise of Options by the employees of the Company under Employee Stock Options Plan, 2012 (ESOP 2012).
6. Management Discussion and Analysis Report
There is a separate section on Management Discussion and Analysis Report forming a part of the Annual Report of the Company, which includes the following:
- Industry Structure and Developments;
- Discussion on Financial Performance with respect to Operational Performance;
- Segment - wise or Product - wise Performance;
- Material Developments in Human Resources / Industrial Relations front and Number of people employed;
- Opportunities and Threats;
- Internal Control Systems and their Adequacy;
- Risk and Concerns;
- Outlook.
7. Godrej Agrovet Limited (Holding Company)
Godrej Agrovet Limited is, inter-alia, engaged in the business of manufacture and marketing of Animal Feeds, Agricultural Inputs and Oil Palm. The shareholding of Godrej Agrovet Limited in the Company as on 31st March, 2017 was 55.54% [i.e. 1,08,37,139 (One Crore Eight Lakh Thirty Seven Thousand One Hundred Thirty Nine) Equity Shares of Face Value of Rs,10/- (Rupees Ten Only) each] of the Paid-up Equity Share Capital of the Company.
8. Subsidiary Companies
Your Company had following Subsidiary Companies during the Financial Year 2016-17:
Sr. No. |
Name of the Subsidiary Company |
Shareholding in % |
Nature of Activity |
Review of Operations and Financial Performance of Subsidiary Companies |
1 |
Behram Chemicals Private Limited |
65.63% |
This company has given its Plot at Mahad (Maharashtra) to Astec LifeSciences Limited on Leave and License basis. |
For the Financial Year ended 31st March, 2017, Operating Profit, i.e., EBITDA is Rs,10.22 Lakh, against Operating Profit of Rs,9.44 Lakh reported for the Financial Year ended 31st March, 2016, Profit After Tax is Rs,6.45 Lakh for the Financial Year ended 31st March, 201 7, as compared to the Profit After Tax of Rs,5.90 Lakh reported for the Financial Year ended 31st March, 2016. |
2 |
Astec Europe Sprl |
50.10% |
This foreign subsidiary company, having its Registered Office in Belgium, Europe, is engaged in the business of distribution of Agrochemicals. |
For the period ended 31st March, 2017, Operating Profit, i.e., EBITDA was Rs,8.55 Lakh, against Operating Profit of Rs,16.28 Lakh reported for the period ended 31st December, 2015, Profit After Tax was Rs,7.77 Lakh for the period ended 31st March, 2017, as compared to Profit After Tax of Rs,15.90 Lakh reported for the period ended 31st December, 2015. |
3 |
Comercializadora Agricola Agroastrachem Cia Ltda |
100% |
This foreign subsidiary company, having its Registered Office in Bogota, Colombia, is engaged in the business of obtaining product registrations in conformity with local laws of the country. This company is yet to start any major commercial activity. |
For the period ended 31st March, 2017, Operating Profit, i.e., EBIDTA was Profit/ (Loss) of Rs, (5.72) Lakh against Operating Profit/ (Loss) of Rs,(3.65) Lakh reported for the period ended 30th September, 2015, Profit/ (Loss) after Tax was Rs,(5.75) Lakh for the period ended 31st March, 2017, as compared to Profit/ (Loss) after Tax of Rs,(3.65) Lakh reported for the period ended 30th September, 2015. |
Report on Performance and Financial Position of Subsidiary Companies:
Report on Performance and Financial Position of each of the Subsidiary Companies included in Consolidated Financial Statement forms a part of the Directors'' Report and is annexed herewith in Form AOC-1 as ''Annexure A''.
9. Consolidated Financial Statements
The Consolidated Financial Statements of your Company are prepared in accordance with the relevant Indian Accounting Standards (Ind AS), i.e., Ind AS 110 issued by the Institute of Chartered
Accountants of India (ICAI) and form a part of this Annual Report. Accordingly, the Annual Report of your Company does not contain the Financial Statements of its subsidiary companies. The Annual Accounts and related information of the Company''s subsidiaries will be made available upon request. In accordance with Section 136 of the Companies Act, 2013, the Audited Financial Statements, including Consolidated Financial Statements and related information of the Company and Audited Accounts of each of the Subsidiaries, are available on the Company''s website, viz., www.astecls.com. These documents will also be available for inspection during all days except Saturdays, Sundays and Public Holidays between 10.00 a.m. (IST) to 4.00 p.m. (IST) at the Company''s Registered Office in Mumbai, Maharashtra (*).
The Company did not have any Joint Venture / Associate during the Financial Year under review. The Company has 3 (three) Subsidiaries, viz.: (1) Behram Chemicals Private Limited, (2) Astec Europe Sprl, and (3) Comercializadora Agricola Agroastrachem Cia Ltda.
10. Directors
I n accordance with the provisions of Section 152(6) of the Companies Act, 2013 read with the Company''s Articles of Association, Mr. Nadir B. Godrej, Chairman and Non-Executive Non Independent Director of the Company is liable to retire by rotation at the forthcoming Annual General Meeting (AGM), and being eligible, has offered himself for re-appointment. Appropriate resolution for re-appointment of Mr. Nadir B. Godrej as the "Chairman and Director" is being moved at the ensuing 23rd (Twenty Third) AGM, which the Board recommends for your approval.
Mr. Arijit Mukherjee, Director of the Company was appointed as the "Whole Time Director" of the Company for a period of 3 (three) years with effect from 4th May, 2016 upto 3rd May, 2019 on the terms and conditions as approved by the Shareholders of the Company by way of passing of Special Resolution at the 22nd (Twenty Second) AGM of the Company held on 26th July, 2016.
Mr. Nadir B. Godrej, Mr. Balram Singh Yadav and Mr. Rakesh Dogra, Directors of the Company were appointed as "Additional Directors" of the Company upto the conclusion of the 22nd (Twenty Second) AGM. They were appointed as "Directors" of the Company as approved by the Shareholders of the Company by way of passing of Ordinary Resolutions at the 22nd (Twenty Second) AGM held on 26th July, 2016.
Mr. Vijay Kashinath Khot and Dr. Brahma Nand Vyas, Directors of the Company were appointed as "Independent Directors" of the Company for a term of 5 (five) years with effect from 29th January, 2016 upto 28th January, 2021 as approved by the Shareholders of the Company by way of passing of Ordinary Resolutions at the 22nd (Twenty Second) AGM of the Company held on 26th July, 2016.
Your Company has received declarations from Mr. Sitendu Sharma, Mr. Vinod Malshe, Dr. Leena Raje, Mr. Vijay Kashinath Khot and Dr. Brahma Nand Vyas, Independent Directors of the Company, confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 and Regulation 16(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Meetings:
The Board of Directors of your Company met 4 (four) times during the Financial Year ended 31st March, 2017. The details of Board Meetings and the attendance of the Directors thereat are provided in the Corporate Governance Report. The intervening time gap between two consecutive Meetings was within the period prescribed under the Companies Act, 2013.
a:
Board Evaluation:
The Board has carried out an Annual Performance Evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Committees. A structured questionnaire was prepared after taking into consideration various aspects of the Board''s functioning, composition of the Board and its Committees, culture, execution and performance of specific duties, obligations and governance. The performance evaluation of the Chairman and Non - Independent Directors was carried out by the Independent Directors. The confidential online questionnaire was responded to by all the Directors and vital feedback was received from them on how the Board currently operates and how it might improve its effectiveness. The Board of Directors has expressed its satisfaction with the evaluation process.
Directors'' Responsibility Statement:
Pursuant to Section 134 of the Companies Act, 2013 ("the Act"), your Directors, to the best of their knowledge and ability, confirm as under:
a) that in the preparation of the Annual Accounts for the Financial Year ended 31st March, 2017, the applicable Accounting Standards have been followed along with proper explanation relating to material departures, if any;
b) that such accounting policies have been selected and applied consistently, and such judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2017 and the profit of the Company for the Financial Year ended as at that date;
c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company, for preventing and detecting fraud and other irregularities;
d) that the Annual Accounts for the Financial Year ended 31st March, 2017 have been prepared on a going concern basis;
e) that proper Internal Financial Controls were in place and that the Financial Controls were adequate and were operating effectively;
f) that proper systems are in place to ensure compliance of all laws applicable to the Company and that such systems are adequate and operating effectively.
11. Auditors
Statutory Auditors:
I n terms of the provisions of Section 139(2) of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 pertaining to mandatory rotation of Statutory Auditors, your Company is required to appoint new Statutory Auditors in place of M/s. Shah & Kathariya, Chartered Accountants, Mumbai (Firm Registration Number: 115171W), the existing Statutory Auditors, at the ensuing 23rd (Twenty Third) AGM of the Company.
Keeping in view the requirements set out in the Companies Act, 2013 and Rules framed there under and based on the recommendation of the Audit Committee, the Board of Directors have recommended the appointment of M/s. B S R & Co. LLP, Chartered Accountants (Firm Registration Number: 101248W/W-100022) as the new Statutory Auditors for a term of 5 (five) years, to hold office from the conclusion of the 23rd (Twenty Third) AGM till the conclusion of 28th (Twenty Eighth) AGM, subject to approval of the Shareholders at the ensuing 23rd (Twenty Third) AGM.
Your Company has obtained written confirmation from M/s. B S R & Co. LLP, Chartered Accountants that they are eligible for appointment in terms of the said provisions of the Companies Act, 2013 and Rules framed there under and that they are not disqualified for appointment. The Auditors have
also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India (ICAI).
Cost Auditors:
Pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 and the Companies (Cost Records and Audit) Rules, 2014, the cost records maintained by your Company are required to be audited. Your Directors had, on recommendation of the Audit Committee, appointed M/s. NNT & Co., Cost Accountants, Mumbai (Firm Registration Number: 28904) as the Cost Auditors of the Company for the Financial Year 2016-17.
Secretarial Auditors:
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company had appointed M/s. P. K. Pandya & Co., a firm of Company Secretaries in Practice (Certificate of Practice Number: 2311), Mumbai to undertake the Secretarial Audit of the Company for the Financial Year 2016-17.
The Secretarial Audit Report issued by M/s. P. K. Pandya & Co., Secretarial Auditors for the Financial Year ended 31st March, 2017 is annexed herewith as ''Annexure B''.
12. Composition of Audit Committee of the Board of Directors
Pursuant to the provisions of Section 177 of the Companies Act, 2013 and Regulation 18 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee of the Board of Directors comprises of the following Members:-
Name of the Director Category
Mr. Sitendu Sharma Chairman (Independent Director)
Mr. Vinod Malshe Member (Independent Director)
Dr. Leena Raje Member (Independent Director)
Mr. Vijay Kashinath Khot Member (Independent Director)
Mr. Ashok V. Hiremath Member (Managing Director)
Mr. Balram Singh Yadav Member (Non-Executive, Non-Independent Director)
Audit Committee Meetings were held 4 (four) times during the Financial Year 2016-17 (on 4th May, 2016, 26th July, 2016, 27th October, 2016 and 25th January, 2017). The Board has accepted all the recommendations of the Audit Committee.
13. Composition of Nomination and Remuneration Committee of the Board of Directors
Pursuant to the provisions of Section 178 of the Companies Act, 2013 and Regulation 19 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, your Company has constituted its Nomination and Remuneration Committee comprising of the following Members:-
Name of the Director Category
Mr. Vinod Malshe Chairman (Independent Director)
Dr. Leena Raje Member (Independent Director)
Mr. Balram Singh Yadav Member (Non-Executive, Non-Independent Director)
Nomination and Remuneration Committee Meetings were held 3 (three) times during the Financial Year 2016-17 (on 4th May, 2016, 26th July, 2016 and 25th January, 2017).
14. Corporate Social Responsibility ("CSR")
Composition of CSR Committee of the Board of Directors:
Pursuant to the provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, the CSR Committee of the Board of Directors comprises of the following Members:-
Name of the Director Category
Mr. Vinod Malshe Chairman (Independent Director)
Dr. Leena Raje Member (Independent Director)
Mr. Balram Singh Yadav Member (Non-Executive, Non-Independent Director)
Mr. Ashok V. Hiremath Member (Managing Director)
CSR Committee Meetings were held 2 (two) times during the Financial Year 2016-17 (on 4th May, 2016 and 25th January, 2017).
Areas of CSR Expenditure:
A brief outline of the Company''s CSR Policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR Policy is as under:
The CSR Policy of your Company aligns itself with the Godrej Group''s (Group) ''Good & Green'' vision of creating a more inclusive and greener India. Each of your Company''s CSR projects are aligned with the Good & Green goals of the Group and correspond to different items listed in Schedule VII of the Companies Act 2013.
Your Company aspires to become a sustainable Company through leadership commitment, multiple stakeholder engagements and disciplined value chain mechanisms. Your Company''s holistic approach towards sustainability not only manages its externalities but also integrates the prevalent social and environmental issues into business strategies to provide tangible solutions which benefit the communities around its manufacturing sites brings upliftment for holistic development of the communities.
The CSR Policy of your Company is uploaded on the website, viz., www.astecls.com.
Amount of CSR spending:
Your Company was required to spend '' 16.49 Lakh towards CSR Activities in terms of provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, during the Financial Year 2016-17. Your Company has spent ''17.85 Lakh towards CSR Activities. Your Company is in process of taking up different projects for the improvement of sanitation, health and education for the people in the areas where it operates.
Annual Report on CSR Activities:
The Annual Report on CSR Activities for the Financial Year 2016-17 is annexed herewith as ''Annexure C''.
15. Risk Management
Pursuant to the requirement of Regulation 21 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has constituted a Risk Management Committee of the Board of Directors comprising of the following Members:-Name of the Member Category
Mr. Ashok V. Hiremath Chairman (Managing Director)
Mr. Balram Singh Yadav Member (Non-Executive, Non-Independent Director)
Mr. Sitendu Sharma Member (Independent Director)
Mr. P. P. Manoj Member (Chief Financial Officer)
The details of the Risk Management Committee and its terms of reference are set out in the Corporate Governance Report forming part of the Annual Report.
Your Company continuously monitors business and operational risks. All key functions and divisions are independently responsible to monitor risks associated with in their respective areas of operations such as production, insurance, legal and other issues like health, safety and environment.
16. Related Party Transactions
All Related Party Transactions entered into by your Company during the Financial Year 2016-17 were on arm''s length basis and in the ordinary course of business. There are no material significant Related Party Transactions entered into by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company. Prior approval of the Audit Committee of the Board of Directors was obtained for all the Related Party Transactions. Accordingly, as per provisions of Sections 134(3)(h) and 188 of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014 regarding disclosure of Related Party Transactions in Form AOC-2 is not applicable. Attention of Shareholders is also drawn to the disclosure of transactions with related parties set out in Note No. 38 of Standalone Financial Statement, forming part of the Annual Report. None of the Directors have any pecuniary relationships or transactions vis-a-vis the Company.
The Company has entered into Related Party Transactions with Godrej Agrovet Limited, its Promoter, based on considerations of various business exigencies, such as synergy in operations, sect oral specialization and the Company''s long term strategy for sectoral investments, profitability, legal requirements, liquidity and capital resources. All related party transactions are on arms'' length basis and are intended to further the Company''s interests.
17. Policies of the Company
The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") mandated the formulation of certain policies for all listed companies. All our Corporate Governance Policies are available on the Company''s website, viz., www.astecls.com. The Policies are reviewed periodically by the Board and its Committees and are updated based on the need and new compliance requirement.
The key policies that have been adopted by the Company are as follows: |
|
Risk Management Policy |
The Company has in place, a Risk Management Policy which was framed by the Board of Directors of the Company. This Policy deals with identifying and assessing risks such as operational, strategic, financial, security, property, regulatory, reputational and other risks and the Company has in place an adequate Risk Management infrastructure capable of addressing these risks. The Board of Directors of your Company is of the opinion that, at present, there are no elements of risks which may threaten the existence of the Company. |
Corporate Social Responsibility Policy |
The Corporate Social Responsibility Committee has formulated and recommended to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, which has been approved by the Board. This Policy outlines the Company''s strategy to bring about a positive impact on society through activities and programmes relating to healthcare, education, sanitation, environment, etc. |
The key policies that have been adopted by the Company are as follows: |
|
Policy for determining Material Subsidiaries |
This Policy is used to determine the material subsidiaries and material non-listed Indian Subsidiaries of the Company and to provide the governance framework for them. At present, your Company does not have any material subsidiary whose net worth exceeds 20% (twenty per cent) of the consolidated net worth of the holding company in the immediately preceding accounting year or has generated 20% (twenty per cent) of the consolidated income of the Company. |
Nomination and Remuneration Policy |
This Policy formulates the criteria for determining qualifications, competencies, positive attributes and independence of a Director (Executive / Non-Executive) and also the criteria for determining the remuneration of the Directors, Key Managerial Personnel and other Senior Management Employees. |
Whistle Blower Policy / Vigil Mechanism |
Your Company has a Vigil Mechanism / Whistle Blower Policy which provides adequate safeguards against victimization of persons who use such mechanism and make provision for direct access to Mr. Sitendu Sharma, Chairman of the Audit Committee, in appropriate or exceptional cases. |
Policy on Prevention of Sexual Harassment at Workplace |
Your Company is committed to creating and maintaining an atmosphere in which employees can work together without fear of sexual harassment, exploitation or intimidation. As required under the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, your Company has constituted an Internal Complaints Committee (ICC) comprising of the following Members: 1) Ms. Tejal Jariwala, Presiding Officer; 2) Dr. Leena Raje, Member; 3) Mr. Ritesh Bhardwaj, Member; 4) Ms. Sanjeevani Sadani, Member; 5) Ms. Neera Nundy, Member. No complaints of sexual harassment were received during the Financial Year 2016-17. |
Policy on Materiality of Related Party Transaction and dealing with Related Party Transaction |
This Policy regulates all transactions between the Company and its Related Parties. |
Code of Conduct for Insider Trading |
This Policy sets up an appropriate mechanism to curb Insider Trading. |
Policy on Criteria for determining Materiality of Events |
This Policy applies to disclosures of material events affecting the Company. This Policy warrants disclosure to investors and has been framed in compliance with the requirements of the Listing Regulations. |
Policy for Maintenance and Preservation of Documents |
The purpose of this Policy is to specify the type of document(s) and time period for preservation thereof based on the classification mentioned under Regulation 9 of the Listing Regulations. This Policy covers all business records of the Company, including written, printed and recorded matter and electronic forms of records. |
The key policies that have been adopted by the Company are as follows: |
|
Archival Policy |
This Policy was framed pursuant to the Regulation 30 of the Listing Regulations. As per this Policy, your Company is required to disclose on its website, all such events or information which have been disclosed to the Stock Exchanges where the securities of the Company are listed under Regulation 30 of Listing Regulations. Further, such disclosures shall be hosted on the website of the Company for a minimum period of 5 (five) years and thereafter as per this Policy of the Company. |
Dividend Distribution Policy |
This Policy is framed by the Board of Directors in terms of the Listing Regulations. The focus of the Company is to have a Policy on distribution of Dividend so that the investor may know as to when and how much Dividend they may expect. |
18. Managerial Remuneration
It is hereby confirmed that the remuneration paid to Directors, Key Managerial Personnel and other Employees during the Financial Year 2016-17 was as per the Nomination and Remuneration Policy of the Company.
Disclosure as per provisions of Section 197 of the Companies Act, 2013 and Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
(i) The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the Financial Year 2016-17 and the ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the Financial Year 2016-17 is as under:
Sr. No. |
Name of Director/KMP and Designation |
Remuneration of Director / KMP for the Financial year 2016-17 ('' in Lakh) |
% increase in Remuneration in the Financial year 2016-17 |
Ratio of Remuneration of each Director to Median Remuneration of Employees |
1 |
Mr. Nadir B. Godrej, Chairman, Non-Executive Non- Independent Director |
Nil |
Not Applicable |
Nil |
2 |
Mr. Ashok V. Hiremath, Managing Director |
95.75 |
(0.022%) |
1.29:1 |
3 |
Mr. Arijit Mukherjee, Whole Time Director* |
35.60 |
Not Applicable |
0.48:1 |
4 |
Mr. Balram Singh Yadav, Non-Executive Non- Independent Director |
Nil |
Not Applicable |
Nil |
5 |
Mr. Rakesh Dogra, Non-Executive Non-Independent Director |
Nil |
Not Applicable |
Nil |
6 |
Mr. Brahma Nand Vyas, Non-Executive Independent Director |
Nil |
Not Applicable |
Nil |
7 |
Mr. Vijay Kashinath Khot, Non-Executive Independent Director |
Nil |
Not Applicable |
Nil |
Sr. No. |
Name of Director/KMP and Designation |
Remuneration of Director / KMP for the Financial year 2016-17 (Rs, in Lakh) |
% increase in Remuneration in the Financial year 2016-17 |
Ratio of Remuneration of each Director to Median Remuneration of Employees |
8 |
Mr. Sitendu Sharma, Non- Executive Independent Director |
Nil |
Not Applicable |
Nil |
9 |
Mr. Vinod Malshe, Non-Executive Independent Director |
Nil |
Not Applicable |
Nil |
10 |
Dr. Leena Raje, Non-Executive Independent Director |
Nil |
Not Applicable |
Nil |
11 |
Mr. Ravindra Inani, Chief Financial Officer** |
36.43 |
(10.60%) |
|
12 |
Mr. P. P. Manoj, Chief Financial Officer*** |
13.14 |
Not Applicable |
Not Applicable |
13 |
Ms. Tejal Jariwala, Company Secretary & Compliance Officer |
8.78 |
21.95% |
* Appointed as Whole Time Director with effect from 3rd May, 2017 **Resigned with effect from 31st May, 2016
***Appointed with effect from 26th July, 2016_
(ii) The percentage increase in the median 50.10% remuneration of employees in the
Financial Year
(iii) The number of permanent employees 247 as on 31st March, 2017
on the rolls of Company__
(iv) Average percentile increase already Average percentile decrease in Remuneration of made in the salaries of employees other Employees during the Financial Year 2016-17 was than the managerial personnel in the last 0.08% as compared to Average percentile decrease Financial Year and its comparison with in remuneration of Managerial Personnel which was the percentile increase in the managerial 0.11%.
remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration.
19. Particulars of Employees
Statement of Employees as per Rules 2 and 3 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 for the Financial Year 2016-17:-
There were no employees except Mr. Ashok V. Hiremath, Managing Director of the Company, drawing remuneration more than as provided under Rule 5, sub-rule (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 during the Financial Year 2016-17.
The statement showing details of Mr. Ashok V. Hiremath, Managing Director, as required under Rule
5, sub-rule (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 is as follows:-
Sr. No. |
Particulars |
Information |
(i) |
Name of the Employee |
Mr. Ashok V. Hiremath |
(ii) |
Designation of the Employee |
Managing Director |
(iii) |
Remuneration received |
Rs,95.75/- Lakh |
(iv) |
Nature of Employment, whether contractual or otherwise |
Contractual |
(v) |
Qualifications and Experience of the Employee |
M.A. Engineering (OXON), D.C.E. (London) 38 years of experience in agrochemical industry |
(vi) |
Date of Commencement of Employment |
25th January, 1994 |
(vii) |
Age of the Employee |
61 Years |
(viii) |
Last employment held by the Employee before joining the Company |
Not Applicable |
(ix) |
Percentage of Equity Shares held by the Employee in the Company |
9.97% of the Paid-up Equity Share Capital |
(x) |
Whether any such Employee is a Relative of any Director or Manager of the Company and if so, name of such Director or Manager |
No |
20. Disclosures as per the Companies (Accounts) Rules, 2014
1 |
Change in Nature of Business, if any 1 |
slone |
||
2 |
Details of Directors / Key Managerial Personnel (KMP) who were appointed or have resigned during the Financial Year 2016-17 |
|||
Sr. No. |
Name of Director / KMP |
Date of Appointment / Re-appointment / Resignation |
||
(i) |
Mr. Nadir B. Godrej |
Change in designation from "Additional Director" to "Director" with effect from 26th July, 2016. |
||
(ii) |
Mr. Balram Singh Yadav |
Change in designation from "Additional Director" to "Director" with effect from 26th July, 2016. |
||
(iii) |
Mr. Rakesh Dogra |
Change in designation from "Additional Director" to "Director" with effect from 26th July, 2016. |
||
(iv) |
Mr. Arijit Mukherjee |
Change in designation from "Additional Director" to "Director" and appointment as "Whole Time Director" with effect from 4th May, 2016 for a term upto 3rd May, 2019. |
||
(v) |
Mr. Vijay Kashinath Khot |
Change in designation from "Additional Director" to "Director" with effect from 26th July, 2016. |
||
(vi) |
Dr. Brahma Nand Vyas |
Change in designation from "Additional Director" to "Director" with effect from 26th July, 2016. |
||
(vii) |
Mr. Ravindra Inani |
Resignation from post of "Chief Financial Officer" with effect from 31st May, 2016. |
||
(viii) |
Mr. P. P. Manoj |
Appointed as the "Chief Financial Officer" with effect from 26th July, 2016. |
||
3 |
Names of Companies which have become or have ceased to be its Subsidiaries, Joint Ventures or Associate Companies during the Financial Year 2016-17 |
None |
||
4 |
Details of Deposits covered under Chapter V of the Companies Act, 2013 |
(i) Accepted during the year: Nil (ii) Remained unpaid or unclaimed during the year: Nil (iii) Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and total amount involved: a. At the beginning of the year : Nil b. Maximum during the year : Nil c. At the end of the year : Nil (iv) Details of Deposits which are not in compliance with the requirements of Chapter V of the Companies Act, 2013: None |
5 |
Details of Significant and Material Orders passed by the Regulators or Courts or Tribunals, impacting the going concern status and the Company''s operations in future |
No significant and material orders have been passed by the regulators or Courts or Tribunals which impact the going concern status and Company''s operations in future. |
6 |
Details in respect of Adequacy of Internal Financial Controls with reference to the Financial Statement |
Adequate internal control checks are available in the opinion of the Board of Directors. |
21. Extract of Annual Return
The Extract of Annual Return as provided under sub-section (3) of Section 92 of the Companies Act, 2013 and the Companies (Management and Administration) Rules, 2014, is given in Form MGT-9 and is annexed herewith as ''Annexure D'', which forms a part of this Directors'' Report.
22. Investor Education and Protection Fund (IEPF)
Pursuant to the applicable provisions of the Companies Act, 2013, read with the Investors Education Provident Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 ("IEPF Rules"), all the Unpaid or Unclaimed Dividends are required to be transferred to the IEPF established by the Central Government, upon completion of 7 (seven) years. Further, according to the IEPF Rules, the shares in respect of which Dividend has not been paid or claimed by the Shareholders for 7 (seven) consecutive years or more shall also be transferred to the demat account created by the IEPF Authority. Accordingly, the Company shall transfer the Unclaimed and Unpaid Dividend. Further, the corresponding shares will be transferred as per IEPF Rules, details of which are provided on our website, viz., www.astecls.com.
23. Explanation or Comments by the Board on every Qualification, Reservation or Adverse Remark or Disclaimer made by the Statutory Auditors and the Secretarial Auditors
There are no adverse remarks or qualifications, reservations, remarks or disclaimers made by the Statutory Auditors in their Report for the Financial Year 2016-17.
The Secretarial Auditors in their Report for the Financial Year 2016-17, have given the following remark:-
"As regards compliance with Regulation 30 of the Listing Regulations in respect of the Board Meeting held on 26th July, 2016, although the Company had duly communicated the outcome of the said Meeting to the Stock Exchanges within the prescribed time limit, there was an inadvertent delay in intimating the time of commencement and conclusion of the Meeting."
Your Company had duly communicated the outcome of the Board Meeting held on 26th July, 2016 to the Stock Exchanges within the prescribed time limit and the delay in intimating the time of commencement and conclusion of the Meeting was inadvertent.
24. Material Changes and Commitments, if any, affecting the Financial Position of the Company which have occurred between the end of the Financial Year 2016-17 to which the Financial Statements relate and the date of the Directors'' Report (i.e., from 1st April, 2017 up to 4th May, 2017), if any
There are no material changes and commitments affecting the financial position of your Company which have occurred between the end of the Financial Year 2016-17 to which the Financial Statements relate and the date of the Directors'' Report (i.e., from 1st April, 2017 up to 4th May, 2017).
25. Employee Stock Options Plan, 2012 and Employee Stock Options Scheme, 2015
Your Company has introduced the following Employee Stock Options Plan and Scheme:
Sr. No. |
Name of the Plan / Scheme |
Date of Shareholders'' Approval |
Exercise Price of Option |
1) |
Employee Stock Options Plan, 2012 ("ESOP 2012") |
Special Resolution passed at the Extra-ordinary General Meeting held on 27th March, 2012 |
''34/- (Rupees Thirty Four Only) per Option |
2) |
Employee Stock Options Scheme, 2015 ("ESOS 2015") |
Special Resolution passed at the 21st (Twenty First) Annual General Meeting held on 22nd September, 2015 |
The Company shall use Fair Value Method to value its Options. The Exercise Price for the Options will be the Closing Market Price of the Equity Shares of the Company listed on the recognized Stock Exchange as on the date immediately prior to the relevant date of the grant of the Options to the Eligible Employees and Eligible Directors. Date of grant: 26th July, 2016 - At '' 387.35/- per Option |
The Compensation Committee of the Board of Directors administers and monitors the ESOP 2012 and ESOS 2015. Your Company has received a certificate from the Statutory Auditors of the Company that the ESOP 2012 and ESOS 2015 have been implemented in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the resolutions passed by the Shareholders. The Certificate would be kept open for inspection by the Shareholders at the ensuing 23rd (Twenty Third) Annual General Meeting.
The Disclosures as per Regulation 14 of the Securities and Exchange Board of India (Share Based Employee Benefit) Regulation, 2014 have been put up the website of the Company, viz., www.astecls.com.
26. Listing Fees
Your Company has paid requisite annual listing fees to BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) where its securities are listed.
27. Research and Development (R&D)
Your Company continues to focus on R&D and strongly believes that productive R&D is a key ingredient for success. During the Financial Year under review, a number of new products were developed and many cost reduction schemes were initiated.
28. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as ''Annexure E''.
29. Depository System
Your Company''s Equity Shares are available for dematerialization through National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
Appreciation
Your Directors wish to place on record their sincere appreciation for the support and co-operation received from the various Central and State Government Departments, organizations and agencies for their continued support and co-operation. The Directors also gratefully acknowledge all stakeholders of the Company, viz., customers, members, dealers, vendors, banks and other business partners for excellent support received from them during the Financial Year under review. Your Directors also express their warm appreciation to all the employees of the Company for their unstinted commitment and continued contribution to the Company.
Cautionary Statement
Statements in the Directors'' Report and the Management Discussion and Analysis Report describing the Company''s objectives, expectations or forecasts may be forward-looking within the meaning of applicable Securities laws and regulations. Actual results may differ materially from those expressed in the Report. Important factors that could influence the Company''s operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigations and industrial relations.
For and on behalf of the Board of Directors of Astec LifeSciences Limited
Ashok V. Hiremath Arijit Mukherjee
Managing Director Whole Time Director
DIN: 00349345 DIN: 07334111
Place: Mumbai
Date: 4th May, 2017
Mar 31, 2015
To,
The Members,
The Directors' have pleasure in presenting the 21 st Annual Report
together with the Audited Financial statements for the year ended 31st
March, 2015. The Corporate Governance Report and Management Discussion
and Analysis form an integral part of this report.
1. Highlights of Performance (Rs. In lacs)
Standalone Consolidated
Particulars 2014-15 2013-14 2014-15 2013-14
Turnover (Gross) 26,750.22 20,253.91 28,281.64 22,004.42
Less: Excise Duty 1,629.53 1307.36 1,629.53 1307.37
Turnover (Net) 25,120.68 18,946.54 26,652.11 20,697.06
Other income 225.13 100.46 129.47 36.69
Total Revenue 25,345.82 19,047.00 26,781.58 20,733.75
Profit before
Interest &
Depreciation 5,352.52 3,496.34 5,504.55 3,574.00
Less: Finance
Charges 1,210.09 880.83 1,284.00 924.84
Less: Depreciation 1,199.81 1,449.80 1,268.73 1,476.72
Profit before
exceptional and
extraordinary
items and tax 2,942.62 1,165.70 2,951.82 1,172.43
Less: Exceptional
items 1,693.83 - 1,693.83 -
Less: Extraordinary
Items/ Prior
Period Items (639.62) 57.46 (639.62) 57.46
Profit before tax 1,888.41 1,108.25 1,897.61 1,114.97
Less: Provision for
Tax 261.75 221.65 263.73 225.26
Less: Provision for
Deferred Tax 149.23 24.55 155.62 24.55
Profit after Tax 1,477.43 862.05 1,478.26 865.16
Amount available
for Appropriation 1,477.43 862.05 1,477.54 867.57
Appropriation
Proposed Dividend 243.19 185.29 243.19 185.29
Tax on proposed
Dividend 49.79 31.49 49.79 31.49
Transfer to
General Reserve 50.00 50.00 50.00 50.00
Balance of Profit
Carried Forward 1,134.45 595.27 1,134.56 600.79
2. Operations
Standalone:
For the year ending 31st March, 2015, Operating profit i.e. EBITDA is
Rs.5,352.52 lakhs, against Operating Profit of Rs.3,496.34 lakhs in
preceding year 2013-14. Profit after Tax is Rs.1,477.43 lakhs for the
year 2014-15, compared to Profit after Tax of Rs.862.05 lakhs reported
for 2013-14.
Consolidated
For the year ending 31st March, 2015, Operating profit i.e. EBITDA is
Rs.5,504.55 lakhs, against Operating Profit of Rs.3,574 lakhs in
preceding year 2013-14. Profit after Tax is Rs.1,478.26 lakhs for the
year 2014-15, compared to Profit after Tax of Rs.865.16 lakhs reported
for 2013-14.
3. Dividend:
The Directors recommend the dividend of 12.5% on Equity Shares (Rs.
1.25/- per share of Rs. 10/- each) for the year ended on 31 st March,
2015. The dividend tax on the proposed dividend is Rs.49.79 lakhs
making total outgo of Rs.292.98 lakhs. The payment of dividend will be
paid subject to the approval of the shareholders at the ensuing Annual
General Meeting. Company was not required to transfer any amount to
Investor Education and Protection Fund as there is no amount lying
Unpaid/Unclaimed in the Unpaid Dividend Account for more than 7years.
4. Finance
Cash and Bank balances as at 31 st March, 2015 was Rs.1,121.61 Lakhs.
The Company continues to focus on judicious management of its working
capital. Receivables, inventories and other working capital parameters
were kept under strict check through continuous monitoring.
5. Particulars of loans, guarantees or investments
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are given in the
notes to the Financial Statements.
6. Share Capital
The paid up Equity Share Capital as on 31st March, 2015 was Rs.
19,45,50,550/-. During the year under review, the Company has issued
9,25,925 Equity Shares on Preferential Basis to the persons belonging
to Non-Promoter Group.
7. Management Discussion and analysis and Corporate Governance Report
As per clause 49 of the Listing Agreement with Stock Exchanges, a
separate section on Management Discussion & Analysis and Corporate
Governance Report, together with a certificate from the Practicing
Company Secretary confirming compliance forms an integral part of this
Report.
8. Public Deposits:
The company has not accepted any deposits and as such there are no
overdue deposits outstanding as on31stMarch,2015.
9. Subsidiary Companies:
Your Company has following Subsidiary Companies:
a) Astec Crop Care Private Limited (a 100% subsidiary company) with the
main object to start the business of trading in Agrochemicals
formulation to sell in local as well as in export market with its own
brand name. For the year ending 31 st March, 2015, Operating Profit ie.
EBIDTA is of the order of Rs.243.27 lakhs, as against Operating Profit
of Rs149.65 lakhs in the preceding year 2013-14. Profit before Tax is
Rs.7.11 lakhs for the year 2014-15, compared to Profit of Rs.17.58
lakhs reported for 2013-14.
b) Behram Chemicals Private Limited, is a 65.63% subsidiary of
AstecLifeSciences Limited and has a manufacturing facility at Mahad.
This facility is given to AstecLifeSciences Limited, on lease.
The Company also has foreign subsidiary companies primarily to pursue
grant of Licenses and product registrations in conformity with the
local laws of respective countries/regions.
c) Astec Europe Sprl is 50.10% subsidiary of our Company which is
engaged in product registration activities. The Company is yet to start
any major commercial activity.
d) Comercializadora Agricola Agroastrachem Cia Ltda in Bogota, Columbia
is 100% subsidiary of our Company with a main object of product
registration activities. The company is yet to start any commercial
activity.
Report on the performance and financial position of each of the
subsidiary companies included in consolidated financial statement forms
a part of the Directors Report and is annexed herewith in Form AOC-1
as "AnnexureA".
10. Consolidated financial statements
The Consolidated Financial Statements of the Company prepared in
accordance with relevant Accounting Standards (AS) viz. AS 21, AS 23
and AS 27 issued by the Institute of Chartered Accountants of India
form part of this Annual Report.
11. Material Subsidiary Policy
The Company does not have any material subsidiary whose net worth
exceeds 20% of the consolidated net worth of the holding company in the
immediately preceding accounting year or has generated 20% of the
consolidated income of the Company during the previous financial year.
The Board has formulated a policy on material subsidiaries as required
by the Companies Act, 2013 and in compliance with Listing Agreement
which is made available on the website of the Company
(www.astecls.com).
The Audited Annual Financial Statements of Subsidiary Companies are
tabled at the Audit Committee and Board Meetings. Copies of the Minutes
of the Board Meetings of Subsidiary Companies are individually given to
all the Directors and are tabled at the subsequent Board Meetings.
12. Directors:
The Company had pursuant to the provision of Clause 49 of the Listing
Agreements entered into with Stock Exchanges, appointed Mr. Sitendu
Sharma, Mr. Mohammed Zakir, Mr. Vlnod Malshe and Mr. Mandar Patil and
Dr. Leena Rajeas Independent Directors of the Company for the period of
one year at the last Annual General Meeting. On recommendation of the
Nomination & Remuneration Committee and in accordance with the
provisions of section 149 of the Act, these directors need to be
re-appointed as Independent directors to hold office for a term of
5years at the forthcoming Annual General Meeting (AGM) of the Company.
All Independent Directors have given declarations that they meet the
criteria of independence as laid down under Section 149(6) of the
Companies Act, 2013 and Clause 49 of the Listing Agreement.
The Board of Directors had on the recommendation of the Nomination &
Remuneration Committee appointed Mr. Ashok V. Hiremath as Chairman &
Managing Director and Mr. Janak Rawal as Whole Time Director with
effect from 20th January, 2015 upto 19th January, 2018 subject to the
approval of Shareholders at the General Meeting. In accordance with the
provisions of the Companies Act, 2013 and in terms of Memorandum and
Articles of Association of the Company, Mr. Ashok V. Hiremath and Mr.
Janak Rawal will not be liable to retire by rotation and are eligible
for re-appointment.
In accordance with the provisions of Section 152 of the Companies Act,
2013 and the Company's Articles of Association, Mr. Laxmikant Kabra,
Non-Executive Non-independent Director retires by rotation at the
forthcoming Annual General Meeting and, being eligible, offers himself
for reappointment.
Appropriate resolutions for appointment/reappointment of the aforesaid
Directors are being moved at the ensuing Annual General Meeting, which
the Board recommends for your approval.
Meetings:
During the year Nine Board Meetings were convened and held. The details
of which are given in the Corporate Governance Report. The intervening
gap between the Meetings was within the period prescribed under the
Companies Act, 2013.
Board Evaluation:
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance, the directors individually as well
as the evaluation of the working of its Committees. A structured
questionnaire was prepared after taking into consideration various
aspects of the Board's functioning, composition of the Board and its
committees, culture, execution and performance of specific duties,
obligations and governance. The performance evaluation of the Chairman
& Non-independent Directors was carried out by the Independent
Directors. The Board of Directors expressed their satisfaction with
the evaluation process.
Remuneration Policy:
The Board has, on the recommendation of the Nomination & Remuneration
Committee framed a policy for selection and appointment of Directors,
Senior Management and their remuneration. The Remuneration Policy is
stated in the Corporate Governance Report.
13. Director's Responsibility Statement:
To the best of their knowledge and belief and according to the
information and explanations obtained by them, your Directors make the
following statements in terms of Section 134(3)(c) and 134(5) of the
Companies Act, 2013:
a. that in the preparation of the annual financial statements for the
year ended 31 st March, 2015, the applicable accounting standards have
been followed along with proper explanation relating to material
departures, if any;
b. that they have, in selection of the accounting policies, consulted
the Statutory Auditors and have applied them consistently and made
judgements and estimated that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the Company at the end
of the financial year and of the profit of the Company for that period;
c. that proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
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
financial controls were adequate and were operating effectively.
f. that systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively.
14. Auditors Statutory Auditors:
The Company's Auditors, M/s. Shah & Kathariya, Chartered Accountants,
Mumbai, who retire at the ensuing Annual General Meeting of the Company
are eligible for reappointment. As required under the provisions of
Section 139 & 141 of the Companies Act, 2013 and the Rules framed
thereunder, the Company has obtained written confirmation from M/s Shah
& Kathariya, Chartered Accountants that their appointment, if made
would be in conformity with the limits specified in the said section.
As required under Clause 49 of the Listing Agreement, the auditors have
also confirmed that they hold a valid certificate issued by the Peer
Review Board of the Institute of Chartered Accountants of India. The
Board recommends the re-appointment of M/s Shah & Kathariya as the
Statutory Auditors of the Company for the financial year 2015-2016. In
this connection, the attention of the members is invited to Item No. 5
of the Notice of AGM.
Cost Auditors
Pursuant to Section 148 of the Companies Act, 2013 read with The
Companies (Cost Records and Audit) Amendment Rules, 2014, the cost
audit records maintained by the Company is required to be audited. Your
Directors have, on the recommendation of the Audit Committee, appointed
M/s NNT & Co., Cost Accountants of the Company for the financial year
2015-2016 on a remuneration of Rs.40,000/- (Rupees Forty Thousand Only)
plus service tax, as applicable. As required under the Companies Act,
2013, the remuneration payable to the cost auditor is required to be
placed before the Members in a general meeting for their ratification.
Accordingly, a Resolution seeking Member's ratification for the
remuneration payable to Cost Auditors is included at Item No.11 of the
Notice convening the Annual General Meeting. The Cost Audit Report
would be filed with the Central Government within 180 days of the
closure of financial year.
Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s Vikas R. Chomal &
Associates, a firm of Company Secretaries in Practice (C.P. No.12133)
to undertake the Secretarial Audit of the Company. The Report of the
Secretarial Audit Report is annexed herewith as "Annexure B". There is
no audit qualification for the year under review.
15. Composition of Audit Committee
Audit Committee comprises of Mr. Sitendu Sharma, Chairman of the
Committee, Mr. Laxmikant Kabra, Mr. Mohammed Zakir and Mr. Mandar
Patil. Audit Committee Meetings were held 4 times during the year
2014-15 on 30th May, 2014, 9th August, 2014, 18th October, 2014 and on
31st January, 2015. Board has accepted all the recommendations of the
Audit Committee.
16. Corporate Social Responsibility
CSR Committee & Policy:
Corporate Social Responsibility Committee of the Company comprises of
three directors Mr. Vinod Malshe, Non-Executive Independent Director,
Mr. Laxmikant Kabra Non-Executive Non-independent Director, Mr. Sitendu
Sharma, Non-Executive Independent Director. Corporate Social
Responsibility Policy as approved by the Board is uploaded on the
website of the Company (www.astecls.com).
CSR Initiatives:
As a part of its initiatives under "Corporate Social Responsibility
(CSR)", the Company has undertaken project(s) in the areas of
Education, Environment, Health, Water and Sanitation and other Social
Economic activities. Astec has volunteered its resources to the extent
that it can reasonably afford, attain & improve health, environment,
social initiatives and education, which will help improve the quality
of life, of the people around the areas in which it operates. These
projects are in accordance with Schedule VII of the Companies Act,
2013. One of the projects for betterment of health and sanitation
facilities in AsanpoiZP School at Mahad includes the following:
- Construction of new toilets (SANITATION)
Construction of new toilets and urinals in the school along with a
septic tank and soak pit
- Providing clean and hygienic drinking water (HEALTH)
Astec will provide water cooler with purification system. This will
help in improving the intake of clean & hygienic water.
- Providing support for further education to deserving students
(EDUCATION)
Deserving students will be supported financially for further studies by
the Company. This will be judged based on the performance in aptitude
tests of the students and also his/her family income.
- Providing overhead projector system along with Desktop.
Company has transferred Rs.11,32,200/- to a separate bank account
specifically designated for CSR activities.
Annual Report on CSR Activities:
The Annual Report on CSR activities is annexed herewith as "Annexure
C".
17. Risk Management:
Pursuant to the requirement of Clause 49 of the Listing Agreement, the
Company has constituted a Risk Management Committee. The details of
Committee and its terms of reference are set out in the Corporate
Governance Report forming part of the Board's Report. Our Company
continuously monitors business and operational risk. All key functions
and divisions are independently responsible to monitor risk associated
within their respective areas of operations such as production,
insurance, legal and other issues like health safety and environment.
Company has formulated Risk Management Policy for identification of
risks and has formed a Risk Management Committee in order to ensure
implementation of the policy and review is done every quarter. Risk
Management Policy is also made available on the website of the Company
(www.astecls.com).
18. Related Party Transaction:
All related party transactions that were entered into during the
financial year were on an arm's length basis and were in the ordinary
course of business. There are no materially significant related party
transactions made by the Company with Promoters, Directors, Key
Managerial Personnel or other designated persons which may have a
potential conflict with the interest of the Company at large.
All Related Party Transactions are placed before the Audit Committee as
also the Board for approval. Prior omnibus approval of the Audit
Committee is obtained annually for the transactions which are of a
foreseen and repetitive nature. The Company has developed a Related
Party Transactions Policy for purpose of identification and monitoring
of such transactions.
The policy on Related Party Transactions as approved by the Board is
uploaded on the Company's website. None of the Directors have any
pecuniary relationships or transactions vis-a-vis the Company.
The Company does not have contracts or arrangements with its related
parties under Section 188(1) of the Companies Act, 2013, which are not
on arms' length basis. Hence the details of such contracts or
arrangements with its related parties are not disclosed in Form AOC-2
as prescribed under the Companies Act, 2013 and the rules framed
thereunder. Directors draw attention of the shareholders to Note No.31
of the financial statement which sets out related party disclosures.
19. Nomination and Remuneration Committee
Company has constituted its Nomination and Remuneration Committee
comprising of Mr. Mohammed Zakir, Chairman, Mr. Vinod Malshe & Mr.
Laxmikant Kabra, all Non-Executive Directors in compliance with
provisions of Companies act, 2013 and the Committee has formulated the
Nomination and Remuneration policy on director's appointment and
remuneration including determining qualifications, positive attributes
and independence of directors, and of key managerial personnel and
other Senior employees of the Company. Nomination and Remuneration
Policy as approved by the Board is made available on the website of the
Company (www.astecls.com).
20. Whistle Blower Policy/Vigil Mechanism
The Company has a vigil mechanism named Whistle Blower Policy which
provides adequate safeguards against victimisation of persons who use
such mechanism and make provision for direct access to Mr. Sitendu
Sharma, Chairman of the Audit Committee, in appropriate or exceptional
cases. The details of the Whistle Blower Policy is explained in the
Corporate Governance Report and also posted on the website of the
Company (www.astecls.com).
21. Disclosure under the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013.
The Company has in place an Anti Sexual Harassment Policy in line with
the requirements of The Sexual Harassment of Women at the Workplace
(Prevention, Prohibition &Redressal) Act, 2013. Internal Complaints
Committee (ICC) has been set up to redress complaints received
regarding sexual harassment. All employees (permanent, contractual,
temporary, trainees) are covered under this policy. There were no
sexual harassment complaints received during the year 2014-15.
22. Managerial Remuneration
It is hereby confirmed that the remuneration paid is as per the
Nomination and Remuneration policy for Directors, Key Managerial
Personnel and other Employees.
Disclosure as per provisions of Section 197 of Companies Act, 2013 and
Rule 5 of Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014
(i) The percentage increase in remuneration of each Director, Chief
Financial Officer and Company Secretary during the financial year
2014-15, ratio of the remuneration of each Director to the median
remuneration of the employees of the Company for the financial year
2014-15 and comparison of remuneration of each Key Managerial Personnel
(KMP) against the performance of the Company are as under:
Sr. Name of Remuneration of % increase in
No. Director/KMP and Director/KMP for Remuneration
Designation the financial year in the
2014-15 Financial year
2014-15
1 Ashok V. Hiremath 48lakhs p.a. upto 75% increase
Chairman & Managing 19.01.2015 subject to the
Director 84lacs p.a. with effect approval of
from 20.01.2015 members at the
subject to approval of AGM
Members at the AGM
2 Janak Rawal 16.10 lakhs p.a. 15% increase
Whole Time Director
3 Laxmikant Kabra Nil Nil
Non-Executive Non-
Independent Director
4 Dr. P.L Tiwari Nil Nil
Non-Executive Non-
Independent Director
5 Sitendu Sharma Nil Nil
Non-Executive
Independent Director
6 Mandar Patil Nil Nil
Non-Executive
Independent Director
7 Vinod Malshe Nil Nil
Non-Executive
Independent Director
8 Mohammed Zakir Nil Nil
Non-Executive
Independent Director
9 Leena Raje Nil Nil
Non-Executive
Independent Director
10 Ravindra Inani 33.96 lakhs p.a. 20% increase
Chief Financial
Officer
11 Tejal Jariwala 6lakhs p.a. 51% increase
Company Secretary &
Compliance Officer
Name of Director/KMP and
Designation Ratio of Comparison of
remuneration the
of each Remuneration
Director/ to of KMP against
median the
remuneration performance
of employees of the Company
Ashok V Hiremath 24.42 Profit before Tax
increased by 70.40% and
Profit After Tax
increased by 71.39% in
Janak Rawal 8.29 Financial Year 2014-15
Laxmikant Kabra Nil
Dr P L Tiwari Nil
Sitendu Sharma Nil
Mandar Patil Nil
Vinod Malshe Nil
Mohammed Zakir Nil
Leena Raje Nil
Ravindra Inani Not Applicable
Tejal Jariwala Not Applicable Profit before Tax
increased by
70.40% and Profit
After Tax increased by
71.39% in
Financial Year 2014-15
(ii) The percentage increase in the median remuneration of employees in
the financial year 11.58%
(iii) The number of permanent employees on the rolls of company 187
(iv) Relationship between average increase in remuneration and company
performance
The Profit before Tax for the Financial year ended 31.03.2015 increased
by 70.40% whereas the average increase in the remuneration was 14.16%.
(v) Variations in the market capitalization of the Company The market
capitalization as on 31st March, 2015 was Rs.286.18Crores
(Rs.68.09Crores as on 31st March, 2014)
(vi)Variations in the Price Earnings ratio of the Company Price Earning
ratio as on 31st March, 2015 was 17.78 (7.64 as on 31st March, 2014)
(vii) Percentage increase over/decrease in the market quotations of the
shares of the Company as compared to the rate at which the Company came
out with the last public offer
The Company had come out with the initial public offer (IPO) in 2009.
An amount of Rs. 1,000/- invested in the said IPO is worth
Rs.1,793.90/- as on 31st March, 2015 indicating an increase of 79.39%.
This is excluding the dividend accrued thereon.
(viii) Average percentile increase already made in the salaries of
employees other than the managerial personnel in the last financial
year and its comparison with the percentile increase in the managerial
remuneration and justification thereof and point out if there are any
exceptional circumstances for increase in the managerial remuneration
Average percentile increase in Managerial Remuneration of Employees
during the year was 15.46% as compared to Average percentile increase
in remuneration of Managerial Personnel which was 21.63%.
(ix) The key parameters for any variable component of remuneration
availed by the directors
None of directors have availed of any variable component of
remuneration during the year.
(x) The ratio of the remuneration of the highest paid director to that
of the employees who are not directors but receive remuneration in
excess of the highest paid director during the year
Not Applicable
23. Particulars of Employees:
There were no employees drawing remuneration more than it is provided
under Rule 5 sub rule (2) of Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 during the year ended31stMarch,2015.
24. Disclosure of Following as per Companies (Accounts) Rules, 2014
1 Change in nature of
business, if any None
2 Details of directors/KMP
who were Name of the Person Designation
appointed or have resigned
during the (i) Mr. Ashok V.
Hiremath Chairman &
Managing
year Director
(ii) Mr. Janak Rawal Whole Time
Director
(iii) Mr. Ravindra
Inani Chief
Financial
Officer
(iv) Mrs. Leena Raje Non-Executive
Independent
Director
3 Names of companies which
have Not Applicable
become ceased to be its
subsidiaries,
joint ventures or
associate companies
during the year
4 Details of Deposits,
covered under (i) Accepted during the year: Nil
Chapter V of Companies
Act, 2013 (ii) Remained unpaid or unclaimed
during the year: Nil
(iii) Whether there has been any
default in repayment of deposits or
payment of interest thereon during
the year and if so, number of such
cases and total amount involved:
a. At the beginning of the year: Nil
b. Maximum during the year: Nil
c. At the end of the year: Nil
(iv)Details of Deposits which are not
in compliance with the requirements of
Chapter V of the Act: None
(v) Details of significant and material
orders passed by the regulators or
courts or tribunals impacting the going
concern status and company's operations
in future: None
(vi) Details in respect of adequacy of
internal financial controls with
reference to the financial statement:
Adequate internal control checks are
available
25. Extract Of Annual Return
Pursuant to Section 92 of Companies Act, 2013 and Rule 12 of the
Companies (Management and Administration) Rules, 2014, the extract of
the Annual Return in form MGT 9 is annexed herewith as "Annexure D".
26. Explanations or comments by the Board on every qualification,
reservation or adverse remark or disclaimer made
There are no adverse remarks or qualifications, reservations, remarks
or disclaimer made by either Statutory Auditors or Secretarial Auditors
in their reports and therefore no explanations are required to be given
by the Board of Directors
27. Material changes and commitments, if any, affecting the financial
position of the Company which have occurred between the end of the
financial year of the company to which the financial statements relate
and date of report (form 1st April 2015 to the date of signing of
report)- if any
There are no material changes and commitments other than the
information already published in public domain. Company has given
necessary intimations and information to Stock Exchanges from time to
time.
28. Employee Stock Options Plans
The Company has introduced ESOP Scheme called Astec Employees Stock
Option Plan 2012 with the approval of shareholders in the extra
ordinary general meeting held on 27th March, 2012 at a price of Rs.34/-
per option. The Employees Stock Options Committee of the Board
administers and monitors the Employees Stock Option Scheme, 2012. The
Company has received a certificate from the Auditors of the Company
that the Scheme has been implemented in accordance with the SEBI
Guidelines and the resolution passed by the shareholders. The
Certificate would be placed at the Annual General Meeting for
inspection by members.
The Company is planning to implement Employee Stock Option Scheme 2015
(ESOS 2015). Necessary Resolutions for the Approval of the Scheme are
being moved at the ensuing Annual General Meeting, which the Board
recommends for your approval.
Disclosure as per Rule 12(9) Chapter IV Companies (Share Capital and
Debenture) Rules, 2014 and as per SEBI Regulations
A Options granted 86,000
B Options vested Nil
C Options exercised Nil
D The total number of shares arising as a result
of exercise of option Not Applicable
E Options lapsed Nil
F The exercise price Rs.34/-
G Variation of terms of options None
H Money realized by exercise of options Not Applicable
I Total number of options in force 86,000
J Employee wise details of options granted to
(i) Key Managerial Personnel
Mr. Janak Rawal, Whole Time Director 10,000
Mr. Ravindra Inani, Chief Financial Officer 10,000
(ii) Any other employee who receives a grant of
options in any one year of option amounting to
five percent or more of options granted during
that year
Mr. Vivek Thorat, General Manager (Operations) 10,000
Mr. Valmik Dhakane, Deputy General Manager 10,000
Mr. Ramesh Pingale, AGM (Regulatory Affairs 10,000
Mr. C. Kirubasekaran, Vice President Marketing 10,000
(iii) Identified employees who were granted
option, during any one year, equal to or
exceeding one percent of the issued capital
(excluding outstanding warrants and conversions)
of the company at the time of grant Not Applicable
K Pricing Formula Fair Value Method
L Diluted Earnings Per Share(EPS) pursuant to
issue of shares on exercise of option calculated
in accordance with Accounting Standard
(AS) 20 'Earnings Per Share' Not Applicable
M Where the company has calculated the employee
compensation cost using the intrinsic value of
the stock options, the difference between the
employee compensation cost so computed and the
employee compensation cost that shall have been
recognized if it had used the fair value of the
options, shall be disclosed. The impact of this
difference on profits and on EPS of the company
shall also be disclosed Not Applicable
N Weighted-average exercise prices and weighted-
average fair values of options shall be disclosed
separately for options whose exercise price
either equals or exceeds or is less than the
market price of the stock. Not Applicable
O A description of the method and significant
assumptions used during the year to estimate
the fair values of options, including the
following weighted-average information:
(i) risk-free interest rate,
(ii) expected life,
(iii) expected volatility,
(iv) expected dividends, and
(v) the price of the underlying share in market
at the time of option grant. Not Applicable
29. Listing Fees:
The Company has paid requisite annual listing fees to BSE Limited and
National Stock Exchange where its securities are listed.
30. Research and Development:
Your Company continues to focus on R&D. We believe that a productive R
& D is a key ingredient for success. During the year a number of new
products were developed and many cost reduction schemes were initiated.
31. Significant and material orders passed by the regulators or courts
There are no significant material orders passed by the Regulators /
Courts which would impact the going concern status of the Company and
its future operations.
32. Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo stipulated under Section 134(3)(m)
of the Companies Act, 2013 read with Rule, 8 of The Companies
(Accounts) Rules, 2014, is annexed herewith as "AnnexureE".
a) Conservation of Energy, etc: Steps have been taken to reduce the
power consumption of agitators and pumps. Efficiency improvements were
effected in our boilers and condensate recovery systems were installed.
b) Technology Absorption: A majority of the technologies utilized by
your Company are developed by in-house R&D department. Some processes
have been provided by potential customers and those have been suitably
absorbed.
c) Foreign Exchange Earnings and outgo:
1. Activities relating to Export, initiatives to increase exports,
Development of new export markets for products and services and Export
promotion plans:
The company is constantly trying to increase its exports; Strategic
alliances are made with various parties to increase exports. The
company is obtaining registration in various parts of the world. During
the year, the company had exports (FOB value) of Rs11,272 lakhs.
2. Total Foreign Exchange earned and used:
1) Earnings/Inflow 2014-15 2013-14
i. Export at FOB 11,272.00 7,152.00
2) Expenditure/Outflow
i. Travelling 64.51 23.69
ii. Commission 3.20 5.26
iii. Professional Fees & Technical Services 27.00 6.60
iv. Subscription/Prod. Reg, fees 70.02 53.17
v. CIF Value of Import 8,530.94 8,263.13
33. Appreciation:
Your Directors wish to record their appreciation for the support and
co-operation received from the various Central and State Government
Departments, Organizations and Agencies for the continued help and
co-operation extended by them. The Directors also gratefully
acknowledge all stakeholders of the Company viz. customers, members,
dealers, vendors, banks and other business partners for excellent
support received from them during the year. Your Directors express
their warm appreciation to all the Employees of the Company for their
unstinted commitment and continued contribution to the Company.
34. Cautionary statement
Statements in the Board's Report and the Management Discussion &
Analysis describing the Company's objectives, expectations or forecasts
may be forward-looking within the meaning of applicable securities laws
and regulations. Actual results may differ materially from those
expressed in the statement. Important factors that could influence the
Company's operations include global and domestic demand and supply
conditions affecting selling prices of finished goods, input
availability and prices, changes in government regulations, tax laws,
economic developments within the country and other factors such as
litigation and industrial relations.
Place: Mumbai For and on behalf of the Board of Directors
Date: 16th May, 2015 Sd/-
Ashok V. Hiremath
Chairman & Managing Director
(DIN:00349345)
Mar 31, 2014
Dear members,
The Directors'' have pleasure in presenting the 20th Annual Report and
the audited accounts for the year ended March 31, 2014.
1. Financial Highlights
Particulars Rs. In Lacs
2013-14 2012-13
Turnover (Gross) 22,004.42 19,431.08
Less: Excise Duty 1,307.36 1,953.63
Turnover (Net) 20,697.06 17,477.46
Other income 36.69 105.71
Total Revenue 20,733.75 17,583.18
Profit before Interest & Depreciation 3,516.54 2,806.60
Less: Finance Charges 924.84 748.49
Less: Depreciation 1,461.34 1,187.41
Profit before Tax 1,114.97 870.69
Less: Provision for Tax 225.26 170.65
Less: Provision for Deferred Tax 24.54 109.87
Profit after Tax 865.16 590.17
Amount available for Appropriation 865.16 590.17
Appropriation
Proposed Dividend 185.29 135.33
Tax on proposed Dividend 31.49 21.96
Transfer to General Reserve 50.00 50.00
Balance of Profit Carried Forward 598.38 382.88
2. Operations
For the year ending 31st March, 2014, Operating profit ie. EBITDA is of
the order of Rs.3,438.88 lacs, as against Operating Profit of
Rs.2,750.99 lacs in preceding year 2012-13. Profit after Tax is
Rs.862.04 lacs for the year 2013-14, compared to Profit after Tax of
Rs.594.45lacs reported for 2012-13.
3. Management Discussion and analysis and Corporate Governance Report
The current year''s operations are covered in the Management Discussion
Analysis Report. This Management Discussion and Analysis Report, as
stipulated under Clause-49 of the Listing Agreement with the Stock
Exchanges, are presented in a separate section forming part of this
annual report.
Pursuant to Clause 49 of the Listing Agreement, a report on Corporate
Governance along with the certificate from auditors, regarding
compliance of the requirements of Corporate Governance is annexed here
to.
4. Dividend:
The Directors recommend the dividend of 10% on Equity Shares (Rs.
1.00/- per share of Rs.10/- each) for the year ended on 31st March,
2014. The dividend tax on the proposed dividend is Rs. 31.49 lacs
making total outgo of Rs. 216.78 lacs. The payment of dividend will be
paid subject to the approval of the shareholders at the ensuing Annual
General Meeting.
5. Subsidiary Companies:
Your Company has following Subsidiary Companies:
a) Astec Crop Care Private Limited (a 100% subsidiary company) with the
main object to start the business of trading in Agrochemicals &
Pesticides formulation to sell in local as well as in export market
with its own brand name. For the year ending 31st March, 2014,
Operating Profit ie. EBIDTA is of the order of Rs. 149.65 lakhs, as
against Operating Profit of Rs.88.02 lakhs in the preceding year
2012-13. Profit after Tax is Rs. 13.98 lakhs for the year 2013-14,
compared to Profit of Rs.3.68 lakhs reported for 2012-13.
b) Behram Chemicals Pvt. Ltd. is a 65.63% subsidiary of Astec
LifeSciences Limited and has a manufacturing facility at Mahad. This
facility is given to Astec LifeSciences Ltd. on lease.
c) Astec Eurpoe Sprl is 50.10% subsidiary of our Company which is
engaged in product registration activities. The Company is yet to start
any major commercial activity.
The Company also has foreign subsidiary companies primarily to pursue
grant of licenses and product registrations in conformity with the
local laws of respective countries/regions.
d) Comercializadora Agricola Agroastrachem Cia Ltda in Bagota, Columbia
is 100% subsidiary of our Company with a main object of product
registration activities. The company is yet to start any major
commercial activity.
6. Research and Development:
Your Company continues to focus on R&D. We believe that a productive R
& D is a key ingredient for success. During the year a number of new
products were developed and many cost reduction schemes were initiated.
7. Risk Management:
Our Company continuously monitors business and operational risk. All
key functions and divisions are independently responsible to monitor
risk associated within their respective areas of operations such as
production, insurance, legal and other issues like health safety and
environment.
8. Listing Fees:
The Company has paid requisite annual listing fees to BSE Limited and
National Stock Exchange where its securities are listed.
9. Public Deposits:
The company has not accepted any deposits and as such there are no
overdue deposits outstanding as on 31st March, 2014.
10. Particulars of Employees:
There were no employees drawing remuneration more than it is provided
under Rule 5 sub rule (2) of Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 read with the Companies (Particulars
of Employees) Rules 1975 during the year ended 31st March, 2014.
11. Employee Stock Options Plan, 2012
The Company has introduced ESOP Scheme called Astec Employees Stock
Option Plan 2012 with the approval of shareholders in the extra
ordinary general meeting held on 27th March, 2012 at a price of Rs.
34/- per option.
The Employees Stock Options Committee of the Board administers and
monitors the Employees Stock Option Scheme, 2012.
The Company has received a certificate from the Auditors of the Company
that the Scheme has been implemented in accordance with the SEBI
Guidelines and the resolution passed by the shareholders. The
Certificate would be placed at the Annual General Meeting for
inspection by members.
12. Directors:
The Company had pursuant to the provision of Clause 49 of the Listing
Agreements entered into with Stock Exchanges, appointed Mr. Sitendu
Sharma, Mr. Mohammed Zakir, Mr. Vinod Malshe and Mr. Mandar Patil as
Independent Directors of the Company.
As per section 149(4) of the Companies Act, 2013, which came into
effect from 1st April, 2014 every listed company is required to have at
least one-third of the total number of directors as Independent
Directors. In accordance with the provisions of section 149 of the Act,
these directors are being appointed as Independent directors to hold
office as per their tenure of appointment mentioned in the Notice of
the forthcoming Annual General Meeting (AGM) of the Company.
Mr. P. L. Tiwari retires by rotation and, being eligible, offers
himself for reappointment.
As per the provision of section 149, our company is required to have a
woman director on the Board of the Company. To comply with this
provision and also as per requirement of listing agreement, Company
hereby proposes the appointment of Dr. Leena Raje as the independent
director of the Company upto the next Annual General Meeting with shall
be held in the year 2015.
Appropriate resolutions for appointment/reappointment of the aforesaid
Directors are being moved at the ensuing Annual General Meeting, which
the Board recommends for your approval.
13. Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo:
In accordance with the requirements of Section 217(1)(e) of Companies
Act, 1956 read with the Companies Disclosure of Particulars in the
Report of Board of Directors) Rules 1988, the following information is
provided:
a) Conservation of Energy, etc: Steps have been taken to reduce the
power consumption of agitators and pumps. Effciency improvements were
effected in our boilers and condensate recovery systems were installed.
b) Technology Absorption: A majority of the technologies utilized by
your Company are developed by in-house R & D department. Some processes
have been provided by potential customers and those have been suitably
absorbed.
c) Foreign Exchange Earnings and outgo:
1. Activities relating to Export, initiatives to increase exports,
Development of new export markets for products and services and Export
promotion plans:
The company is constantly trying to increase its exports; Strategic
alliances are made with various parties to increase exports. The
company is obtaining registration in various parts of the world. During
the year, the company had exports (FOB value) of Rs. 7,152 Lacs.
2. Total Foreign Exchange earned and used: Rs. in Lacs
1) Earnings/Inflow 2013-14 2012-13
i. Export at FOB 7,152.00 7,701.00
2) Expenditure/Outflow
i. Traveling 23.69 22.80
ii. Commission 5.26 35.41
iii. Professional Fees & Technical Services 6.60 9.60
iv. Subscription/Prod. Reg. fees 53.17 13.20
14. Director''s Responsibility Statement:
Pursuant to the requirement u/s 217(2AA) of the companies Act, 1956
with respect to Director''s responsibility statement, it is hereby
confirmed:
i) That in the preparation of the accounts for the financial year ended
31st March, 2014 the applicable accounting standards have been followed
along with explanations relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them entirely and made judgments and estimates that were
reasonable and prudent so as to give true and fair view of the state of
affairs of the company at the end of the financial year.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the companies Act, 1956 for safeguarding the assets of
the company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the annual accounts for the
financial year ended 31st March, 2014 on going concern basis.
15. Auditors:
M/S. Shah & Kathariya, Chartered Accountants, Mumbai retire as the
Auditors of the Company at the ensuring Annual General Meeting, being
eligible for re-appointment they have offered themselves for
re-appointment. The Board recommends the appointment of M/s Shah &
Kathariya as the Statutory Auditors of the Company for the financial
year 2014-2015. Members are requested to appoint M/s. Shah & Kathariya
as Statutory Auditors to hold office from the conclusion of this Annual
General Meeting till the conclusion of next Annual General Meeting and
to fix their remuneration.
16. Corporate Governance:
A report on the corporate governance code along with a certificate from
the auditors of the company regarding the compliance of the code of
corporate governance as stipulated under clause 49 of the listing
agreement forms part to this report.
17. Preferential Warrants Convertible into Equity Shares
The Company has also allotted 1,600,000 Preferential Warrants
Convertible into Equity Shares of Rs. 34/- per warrant, approved by the
shareholder in the extra ordinary general meeting held on 27th March,
2012. Out of 1,600,000 warrants 11,15,000 warrants were converted into
equity shares in the year 2012-13 and balance 485,000 warrants have
been converted into Equity Shares vide a resolution passed in the Board
meeting held on 19th September, 2013. These shares are trading on BSE
Limited and National Stock Exchange of India Limited.
18. Cost Audit
The Central Government vide order dated 24th January, 2012 has
prescribed cost audit for pesticides industries. Accordingly, the Board
has appointed Nikita N. Talati & Company, Cost Auditors for the
financial year 2014-15 to conduct cost audit for our Company.
The Cost Audit Report would be filed with the Central Government within
180 days of the closure of financial year.
19. Appreciation:
Your Directors wish to record their appreciation for the support and
co-operation received from the customers, suppliers and the banks.
Your Directors express their warm appreciation to all the Employees of
the Company for their diligence and contributions.
For and on behalf of the Board of Directors
Sd/-
Place: Mumbai Ashok V. Hiremath
Date: 30th May, 2014 Chairman & Managing Director
Mar 31, 2013
To The Members of Astec LifeSciences Ltd.
The Directors take pleasure in presenting the 19th Annual Report of
the Company together with the Audited Financial Statements along with
the Report of the Auditors for the financial year ended 31st March,
2013.
1. Summary of Financial Results:
(Rs. in lakhs)
2012-13 2011-12
Turnover (Gross) 18519.37 11736.82
Less: Excise Duty 1953.63 652.76
Turnover (Net) 16565.74 11084.06
Other Income 143.76 101.89
Total Revenue 16709.50 11185.95
Profit before Interest & Depreciation 2750.99 1726.15
Less: Finance Charges 703.22 534.28
Less: Depreciation 1173.20 847.55
Profit before Tax 874.57 344.32
Less: Provision for Tax 170.25 68.00
Less: Provision for Deferred Tax 109.87 34.52
Profit after Tax 594.45 241.81
Amount available for Appropriation 594.45 241.81
Appropriation
Proposed Dividend 135.33 84.65
Tax on proposed Dividend 21.96 13.73
Transfer to General Reserve 50.00 50.00
Balance of Profit Carried Forward 387.16 93.42
The year 2012-13 has been one of turnaround for the Company, against
the backdrop of prior period legacy challenges. During the year under
review, the Company focused on its key markets for driving its business
growth; the Company improved its product mix and capitalized on product
level opportunities opening up on regulatory approvals coming about; at
the same time, the Company continued to pursue product registrations
for enhanced market growth. Your company has identified contract
manufacturing as a platform for future growth. For the year ending
31st March, 2013, Operating Profit i.e. EBITDA is of the order of Rs.
2750.99 lakhs, as against Operating Profit of Rs.1726.15 lakhs in the
preceding year 2011-12. Profit after Tax is Rs. 594.45 lakhs for the
year 2012-13, compared to Profit after Tax of Rs. 241.81 lakhs reported
for 2011-12.
2. Operations and Management Discussion analysis:
The current year''s operations are covered in the Management Discussion
Analysis Report. This Management Discussion and Analysis Report, as
stipulated under Clause-49 of the Listing Agreement with the Stock
Exchanges, are presented in a separate section forming part of this
annual report.
3. Dividend:
The Directors recommend the dividend of at 7.5% on Equity Shares
(Rs.0.75/- per share of Rs.10/- each) for the year ended on 31st March,
2013. The dividend tax on the proposed dividend is Rs.21.96 lakhs
making total outgo of Rs.157.30 lakhs. The payment of dividend will be
paid subject to the approval of the shareholders at the ensuing Annual
General Meeting.
4. Subsidiary Companies:
Your Company has following Subsidiary Companies:
a) Astec Crop Care Pvt. Ltd. (a 100% subsidiary company) with the main
object to start the business of trading in Agrochemicals & Pesticides
formulation to sell in local as well as in export market with its own
brand name. For the year ending 31st March, 2013, Operating Profit i.e.
EBITDA is of the order of Rs. 88.02 lakhs, as against Operating
Profit/(Loss) of Rs.(72.87) lakhs in the preceding year 2011-12.
Profit after Tax is Rs. 3.68 lakhs for the year 2012-13, compared to
Loss of Rs. 96.36 lakhs reported for 2011-12.
b) Behram Chemicals Pvt. Ltd. is a 65.63% subsidiary of
AstecLifeSciences Ltd. and has manufacturing facility at Mahad. This
facility is given to Astec LifeSciences Ltd., on lease.
The Company has also foreign Subsidiary Companies primarily to pursue
grant of licenses and product registrations in conformity with the
local laws of the respective countries/regions.
c) Astec Eurpoe Sprl is 50.10 % subsidiary of our Company which is
engaged in product registration activities. This company is yet to
start any major commercial activity.
d) During the year, the Company has set-up a new subsidiary namely,
Comercializadora Agricola Agroastrachem Cia Ltda in Bagota, Columbia
with a main object of product registration activities. This company is
yet to start any major commercial activity.
5. Research and Development:
Your Company continues to focus on R&D. We believe that a productive R
& D is a key ingredient for success. During the year a number of new
products were developed and many cost reduction schemes were initiated.
6. Risk Management:
Our Company continuously monitors business and operational risk. All
key functions and divisions are independently responsible to monitor
risk associated within their respective areas of operations such as
production, insurance, legal and other issues like health safety and
environment.
7. Listing Fees:
The Company has paid requisite annual listing fees to BSE Limited and
National Stock Exchange of India Limited where its securities are
listed.
8. Public Deposits:
The company has not accepted any deposits and as such there are no
overdue deposits outstanding as on 31st March, 2013.
9. Particulars of Employees:
There were no employees drawing remuneration more than it is provided
under Section 217 (2A) of the Companies Act 1956 read with the
Companies (Particulars of Employees) Rules 1975 during the year ended
31st March, 2013.
10. Directors:
The Board of Directors is duly constituted as stipulated under Clause
49 of the Listing Agreement. The Chairman of the Board of Directors is
an Executive Director. The composition of Board of Directors is
consisted of total Eight Directors of which one is Chairman & Managing
Director, One Whole Time Director and Six Non-Executive Directors. The
details of Composition of Board and other details relating to
directorship is presented under Report on Corporate Governance in this
Annual Report.
Mr. Laxmikant Kabra retires by rotation and, being eligible, offers
himself for reappointment.
Mr. Mandar Patil retires by rotation and, being eligible, offers
himself for reappointment.
Appropriate resolutions for the reappointment of the aforesaid Director
are being moved at the ensuing Annual General Meeting, which the Board
recommends for your approval.
None of the board members are interested in the resolution except Mr.
Laxmikant Kabra & Mr. Mandar Patil.
11. Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo:
In accordance with the requirements of section 217(1)(e) of the
Company''s Act, 1956 read with the Companies Disclosure of Particulars
in the Report of Board of Directors Rules 1980, the following
information is provided:
a) Conservation of Energy, etc: Steps have been taken to reduce the
power consumption of agitators and pumps. Efficiency improvements were
effected in our boilers and condensate recovery systems were installed.
b) Technology Absorption: A majority of the technologies utilized by
your Company are developed by in house R & D Department. Some processes
have been provided by potential customers and those have been suitably
absorbed.
c) Foreign Exchange Earnings and outgo:
1. Activities relating to Export, initiatives to increase exports,
Development of new export markets for products and services and Export
promotion plans:
The company is constantly trying to increase its exports; Strategic
alliances are made with various parties to increase exports. The
company is obtaining registration in various parts of the world.
During the year, the company had exports (FOB value) of Rs.7701 lakhs.
2. Total Foreign Exchange earned and used:
(Rs. in lakhs)
2012-13 2011-12
1. Earnings/Inflow
i. Export at FOB 7701.00 3844.07
2. Expenditure/Outflow
i. Traveling 22.80 16.87
ii. Commission 35.41 35.73
iii. Professional Fees &
Technical Services 9.60 20.41
iv. Subscription/Prod. Reg. fees 13.20 1.68
12. Director''s Responsibility Statement:
Pursuant to the requirement u/s 217(2AA) of the companies Act, with
respect to Director''s responsibility statement, it is hereby confirmed:
i) That in the preparation of the accounts for the financial year ended
31st March, 2013 the applicable accounting standards have been followed
along with explanations relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them entirely and made judgments and estimates that were
reasonable and prudent so as to give true and fair view of the state of
affairs of the Company at the end of the financial year.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the annual accounts for the
financial year ended 31st March, 2013 on going concern basis.
13. Auditors:
M/s P. M. Kathariya & Co., Chartered Accountants, Mumbai retire as the
Auditors of the Company at the ensuing Annual General Meeting, do not
seek reappointment and recommends the appointment of M/s Shah &
Kathariya as the Statutory Auditors of the Company for the financial
year 2013-2014. Members are requested to appoint M/s Shah & Kathariya
as Statutory Auditors to hold office from the conclusion of this Annual
General Meeting till the conclusion of next Annual General Meeting and
to fix their remuneration.
14. Corporate Governance:
A report on the corporate governance code along with a certificate from
the auditors of the company regarding the compliance of the code of
corporate governance as stipulated under clause 49 of the listing
agreement forms part to this report.
15. ESOPS & Preferential Warrants Convertible into Equity Shares
The Company has introduced ESOP Scheme known as "Astec Employees Stock
Option Plan 2012" with the approval of shareholders in the extra
ordinary general meeting held on 27th March, 2012 at a price of Rs.
34/- per option. The said Scheme shall be applicable to employees of
Astec LifeSicences Limited and its subsidiaries.
The Company has also allotted 16,00,000 Preferential Warrants
Convertible into Equity Shares of Rs.34/- per warrant, approved by the
shareholder in the extra ordinary general meeting held on 27th March,
2012. Out of 16,00,000 warrants 11,15,000 warrants have been converted
into equity shares vide a resolution passed in the Board meeting held
on 4th January, 2013. These shares are now traded on BSE Limited and
National Stock Exchange of India Limited.
16. Cost Audit
The Central Government vide order dated 24th January, 2012 has
prescribed cost audit for pesticides industries. Accordingly, the Board
has appointed M/s Ritesh N. Talathi & Company, as Cost Auditors for the
financial year 2012-13 to conduct cost audit.
The Cost Audit Report will be filed with the Central Government within
180 days of the closure of financial year.
17. Appreciation:
Your Directors wish to record their appreciation for the support and
co-operation received from the customers, suppliers and the banks.
Your Directors express their warm appreciation to all the Employees of
the Company for their diligence and contributions.
For and on behalf of the Board of Directors
Sd/-
Place: Mumbai Ashok V. Hiremath
Date: 24th May, 2013 Chairman and Managing Director
Mar 31, 2012
To, The Members of Astec lifeSciences Limited
The Directors' have pleasure in presenting the 18th Annual Report and
the audited accounts for the year ended March 31,2012.
1. Financial Highlights
Rs.in lacs
2011-12 2010-11
Revenue from operations (Gross) 11736.82 11,524.79
Less: Excise Duty 652.76 412.28
Revenue from operations (Net) 11084.06 11112.50
Other income 101.89 102.80
Total revenue 11185.95 11,215.31
Profit before Interest and 1726.15 1697.08
Depreciation
Less: Interest and Depreciation 1381.83 980.86
Profit before Tax 344.32 716.22
Less: Provision for Income Tax 68.00 135.20
Less: Provision for Deferred Tax 34.52 72.59
Profit after Tax 241.81 508.43
Amount available for appropriation 241.81 508.43
Appropriation
Proposed Dividend 84.65 84.65
Tax on Proposed Dividend 13.73 13.73
Transfer to General Reserve 50.00 100.00
Balance of Profit Carried forward 93.42 310.05
2011-12 was a challenging year for ASTEC as we were affected by
continued destocking of inventory by our consumers. The Cross turnover
of the company was at Rs. 117.37 Crores as against Rs. 115.25 Crores in
the previous year, resulting in increase of 1.84%. Exports for the year
were at Rs. 39.56 Cmres as against Rs. 25,10 Crores in 2011
representing a growth or 58%.
Raw material costs rose sharply as a result of the increase in labour
and power costs in China pushing raw material prices upwards in the
global markets. Higher interest rates caused increased finance costs
and the devaluation of the rupee led to forex losses. With the
operating costs going up substantially, the margins were eaten up and
EBIDTA for the year under review was consequently of a much lower order
in comparison with the previous year.
As result, profit after tax for the year was at Rs. 2.42 Crores as
against Rs. 5.08 Crores in the previous year.
2. Operations
Your company has identified contract manufacturing as a platform for
future growth. India is well positioned to capitalize on this
opportunity as multinationals are moving manufacturing from high cost
western economies to India and China. India has a strong pool of
scientific manpower and a well-developed eco-system for the production
of fine chemicals.
Your company is pleased to inform you that Company had signed two long
term mutually exclusive confidential MANUFACTURING AND SUPPLY AGREEMENT
with multinational majors to supply crop protection products. Recently
your company commenced commercial production or at its new state of the
art facility at its new site at MIDC Mahad, Maharashtra. The said
facility incorporates the proprietary process technology developed by
our multinational major customer. We are pleased to inform you that
work of the second project is also progressing as per the schedule.
The commencement of these new projects will have a substantial positive
impact on the Company's agrochemical business in coming years.
We were successful in tapping markets in South East Asia and South
America.
In Mahad we made investments to increase the capacity of our
manufacturing facility and to improve the quality of our products. We
also made the investments in line with our commitment to responsible
care to improve our EHS standards.
We invested in R & D and were successful in developing products and
intermediates that are unique and will give the company substantial
growth in the coming years.
3. Appropriations:
Amount of Rs. 50 Lacs is credited to General Reserve. Out of the amount
available for appropriation. Your Director's have recommended a
dividend of 5% on Equity Shares (Rs. 0.507- per share of Rs. 10/-
each). The dividend tax on the proposed dividend is Rs. 13.73 Lacs.
4. Joint Venture:
Your company has invested in a joint venture in Europe namely Astec
Europe Sprl in Belgium which is engaged in product registration
activities. During the year, this Company became 50.10% subsidiary of
Astec
5. Subsidiary Companies:
a) Your Company has a 100% subsidiary Company namely M/s. Astec Crop
Care Private Limited with the main object to start the business of
trading in Agrochemicals & Pesticides formulation to sell in local as
well as in export market with its own brand name.
b) Behram Chemicals Private Limited is a 65.63% subsidiary of Astec.
Behram Chemicals Private Limited has a manufacturing faciIity at Mahad,
which has been given on lease to Astec.
c) With effect from October, 2011, Astec Europe Sprl has become 50.10%
subsidiary of our Company which is engaged in product registration
activities,
6. Research and Development:
Your Company continues to focus on R&D. We believe that a productive R
& D is a key ingredient for success. During the year a number of new
products were developed and many cost reduction schemes were initiated.
7. Risk Management:
Our Company continuously monitors business and operational risk. All
key functions and divisions are independently responsible to monitor
risk associated within their respective areas of operations such as
production, insurance, legal and other issues like health safety and
environment.
8. Listing Fees:-
The Company has paid requisite annual listing fees to Bombay Stock
Exchange and National Stock Exchange where its securities are listed.
9. Public Deposits:
The Company has not accepted any deposits and as such there are no
overdue deposits outstanding as on 31st March'2012.
10. Particulars of Employees:
There were no employees drawing remuneration more than it is provided
under Section 217 (2A) of the Companies Act 1956 read with the
Companies (Particulars of Employees) Rules 1975 during the year ended
31st March, 2012.
11. Directors:
Prof. Vinod Malshe retires by rotation and, being eligible, offers
himself for reappointment. Dr. P. L. Tiwarii retires by rotation and,
being eligible, offers himself for reappointment.
Appropriate resolutions for the reappointment of the aforesaid Director
are being moved at the ensuing Annual General Meeting, which the Board
commands for your approval.
None of the board members are interested in the resolution except Prof.
Vinod Malshe & Dr. P. L. Tiwari
12. Conservation of Energy, technology Absorption And Foreign Exchange
Earnings And Outgo: In accordance with the requirements of section
217(1)(e) of the Company's Act, 1956 read with the Companies Disclosure
of Particulars in the Report of Board of Directors) Rules 1980, the
following information is provided:
d) Conservation of Energy, etc: Steps have been taken to reduce the
power consumption of agitators and pumps. A new coal fired boiler was
commissioned which has resulted in considerable savings in fuel cost.
b) Technology Absorption: A majority of the technologies utilized by
your Company are developed by in-house R & D department. Some processes
have been provided by potential customers and those have been suitably
absorbed.
c) Foreign Exchange Earnings and outgo:
1. Activities relating to Export, initiatives to increase exports,
Development of new export markets for products and services and Export
promotion plans:
The company is constantly trying to increase its exports; Strategic
alliances ate made with various parties to increase exports. The
company is obtaining registration in various parts of the world. During
the year, the company had exports (FOB value) of Rs. 3844.07 Lacs.
2. Total Foreign Exchange earned and used:
Rs. In Lacs
2011-12 2010-11
1. Earnings/Inflow
i. Exports at FOB 3644.07 2510.00
2. Expenditure/Outflow
i. Traveling 16.87 6.91
ii. R & D Expenses - -
iii. Commission 37.73 35.00
iv. Import of Raw Material (CIF) 3018.09 1555.78
v. Professional Fees & Technical
Services 20.41 -
vi. Subscription 1.68 -
13. Director's Responsibility Statement:
Pursuant to the requirement u/s. 217(2AA) of the companies Act with
respect to Director's responsibility statement, it is hereby confirmed:
i) That in the preparation of the accounts for the financial year ended
31st March, 2012 the applicable accounting standards have been followed
along with explanations relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them entirely and made judgments and estimates that were
reasonable and prudent so as to give true and fair view of the stale of
affairs of the company at the end of the financial year.
iii) That the Dir rectors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the companies Act, 1956 for safeguarding the assets of
the company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the annual accounts for the
financial year ended 31st March, 2012 on going concern basis, the
annual accounts for the financial year ended 31st March, 2012 on going
concern basis.
15. Auditors:
M/s. P. M. Kathariya & Co., Chartered Accountants, Mumbai retire as the
Auditors of the Company at the ensuring Annual General Meeting and
being eligible offer themselves for reappointment. Members are
requested to appoint the Auditor to hold office from the conclusion of
this Annual General Meeting till the conclusion of next Annual General
Meeting and to fix their remuneration.
16. Corporate Governance:
A report on the corporate governance code along with a certificate from
the auditors of the company regarding the compliance of the code of
corporate governance and also the management discussion and analysis
report as stipulated under clause 49 of the listing agreement are
annexed to this report.
17. Appreciation:
Your Directors wish to record their appreciation for the support and
co-operation received from the customers, suppliers and the banks.
Your Directors express their warm appreciation to all the Employees of
the Company for their diligence and contributions.
For and on behalf of the Board of Directors
Sd/-
Ashok V. Hiremath
Managing Director
Place: Mumbai
Date : 28th May, 2012
Mar 31, 2011
The Members,
Astec LifeSciences Ltd.
The Directors' have pleasure in presenting the 17* Annual Report and
the audited accounts for the year ended March 31,2011.
1. Financial Highlights
Rs. in lacs
2010-11 2009-10
Sales and other operating
Income 11506.68 11638.50
Other Income 120.24 102.36
Total Income 11626.92 11740.86
Profitbefore I nterest&
Depreciation 1694.90 2638.42
Less: Interests Depreciation 980.86 921.56
Profitbefore Tax 714.04 1716.86
Less: Provision for
Income Tax 135.20 305.00
Less: Provision for Deferred Tax 72.59 28.17
Profit after Tax 506.25 1383.68
Less: Prior Period Adjustment (2.18) 62.78
Amountavailable for
appropriation
Appropiation 508.43 1320.91
Proposed Dividend 84.65 169.29
Tax on Proposed Dividend 13.73 28.77
Transfer to General Reserve 100.00 300.00
Balance of Profit Carried Forward 310.05 822.84
2010-11 was a challenging year for Astec and we were affected by
continued de-stocking of inventory by our customers. The Turnover of
the company has decreased from Rs. 116.38 crores in FY 2010 to Rs.
115.07 crores in the year under review, thereby resulting in a decrease
of 1.13%. It is mainly due to reduced pricing of our products by
customers. Despite a challenging business environment, the company has
achieved a net profit of Rs. 5.06 crores in FY 2011 as compared to Rs.
13.84 crores in FY 2010. Our sales was decreased primarily due to
inventory correction of major multinational crop protection companies
and the profit was down mainly due to price correction of our finished
products and company's inability to pass on the increase in raw
material prices to our customers.
2. Operations
The company was successful in stabilizing production of the products
introduced in the previous year and in increasing production
efficiencies.
Our efforts have resulted in receipt of many new registrations in
various parts of the world. Many more registrations are in the
pipeline. We are in dialogue with some multinational companies for
manufacturing products on contractual basis. On finalization of the
agreements, the company will witness a substantial increase in sales
and corresponding increase in profitability. The business will
be predictable and will provide a platform of stability of the company.
During the year the company established a relationship with a major
multinational for supply of one of our products into the global supply
chain.
We were successful intapping markets in South EastAsia and South
America.
In Mahad we made investments to increase the capacity of our
manufacturing facility and to improve the quality of our products. We
also made the investments in line with our commitment to responsible
care to improve ou r EHS standards.
We invested in R & D and were successful in developing products and
intermediates that are unique and will give the company substantial
growth in the coming years.
3. Ongoing expansion at newly acquired site:
Work was started on construction of our new 40,000 sq m site at Mahad
in April 2011. We expect to commission the first phase by January 2012
and the second phase in March 2012.
The output from the new site will contribute substantially to the
growth of the company's sales and profits.
4. Appropriations:
Amount of Rs. 100 lacs is credited to General Reserve. Out of the
amount available for appropriation, Your Director's have recommended a
dividend of 5% on Equity Shares (50 Paise per share of Rs. 10/- each).
The dividend tax on the proposed dividend is Rs.13.73 lacs.
5. JointVenture:
Your company has invested in a joint venture in Europe which will be
engaged in product registration activities.
6. Subsidiary Companies:
a) Your Company has formed a 100% subsidiary company namely M/s. Astec
CropCare Pvt. Ltd. with the main object to start the business of
trading in Agrochemicals & Pesticides formulation to sell in local as
well as in export market with its own brand name. Initially, this
company proposes to launch its products in the state of Gujarat,
Karnataka & Maharashtra, company has also appointed a dedicated team to
take the new venture ahead.
b) Bertram Chemicals Pvt. Ltd. is a 65.63% subsidiary of Astec. Behram
has a manufacturing faci I ity at Mahad, which has been given on lease
to Astec.
7. Rresearch And Development:
Your company continues to focus on R&D. We believe that a productive
R&D is a key ingredient for success. During the year a number of new
products were developed and many cost reduction schemes were initiated.
8. Risk Management:
Our company continuously monitors business and operational risk. All
key functions and divisions are independently responsible to monitor
risk associated within their respective areas of operations such as
production, insurance, legal and other issues like health safety and
environment.
9. Listing Fees:-
The company has paid requisite annual listing fees to Bombay Stock
Exchange and National Stock Exchange where its securities are listed.
10. Publ ic Deposits:
The company has not accepted any deposits and as such there are no
overdue deposits outstanding as on 31 st March' 2011.
11. Particulars of Employees:
The Particulars of Employees, as required under Section 217 (2A) of the
Companies Act 1956 read with the Companies (Particulars of Employees)
Rules 1975 are as stated here under.
12. Directors:
Mr. Sitendu Sharma retires by rotation and, being eligible, offers
himself for reappointment.
Mr. Mohammed Zakir retires by rotation and, being eligible, offers
himself for reappointment.
Appropriate resolutions for the reappointment of the aforesaid Director
are being moved at the ensuing Annual General Meeting, which the Board
commands for yourapproval.
None of the board members are interested in the resolution except Mr.
Mohammed Zakir & Mr. Sitendu Sharma.
13. Conservation Of Energy, Technology Absorption And Foreign Exchange
Earnings And Outgo:
In accordance with the requirements of section 217(1 )(e) of the
Company's Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules 1980, the following
information is provided:
a) Conservation of Energy, etc: Steps have been taken to reduce the
power consumption of agitators and pumps. A new coal fired boiler was
commissioned which has resulted in considerable savings in fuel cost.
b) Technology Absorption: A majority of the technologies utilized by
your company are developed by in-house R&D department. Some processes
have been provided by potential customers and those have been suitably
absorbed.
c) Foreign Exchange Earnings and outgo:
1. Activities relating to Export, initiativesto increase exports,
Development of new export markets for products and services and Export
promotion plans:
The company is constantly trying to increase its exports, Strategic
alliances are made with various parties to increase exports. The
company is obtaining registration in various parts of the world. During
the year, the company had exports (FOB value) of Rs. 2510 Lacs.
2. Total Foreign Exchange earned and used:
Rs. in lacs
2010-11 2009-10
1. Earnings/Inflow
i. Exports at FOB 2510.00 3460.73
2. Expenditure /Outflow
i. Traveling 6.91 9.74
ii. R&D Expenses Nil 1.55
iii. Commission 35.00 27.63
iv. Import of Raw Material (CIF) 1555.78 2970.67
14. Director's Responsibility Statement:
Pursuant to the requirement u/s 217(2AA) of the companies Act, with
respect to Director's responsibility statement, it is hereby confirmed:
i) That in the preparation of the accounts for the financial year ended
31st March, 2011 the applicable accounting standards have been followed
along with explanations relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them entirely and made judgments and estimates that were
reasonable and prudent so as to give true and fair view of the state of
affairs ofthe company at the end of the financial year.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the companies Act, 1956 for safeguarding the assets of
the company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the annual accounts for the
financial year ended 31st March, 2011 on going concern basis.
15. Auditors:
M/s P. M. Kathariya & Co., Chartered Accountants, Mumbai retire as the
Auditors of the company at the ensuring Annual General Meeting and
being eligible offer themselves for reappointment.
Members are requested to appoint the Auditors to hold office from the
conclusion of this Annual General Meeting ti 11 the cone I usion of
next Annual General Meeti ng and to fix thei r remu neration..
16. Corporate Governance:
A report on the corporate governance code alongwith a certificate from
the auditors ofthe company regarding the compliance ofthe code of
corporate governance and also the management discussion and analysis
report as stipulated under clause 49 ofthe listing agreement are
annexed to this report.
17. Appreciation:
Your Directors wish to record their appreciation for the support and
co-operation received from the customers, suppliers and the banks.
Your Directors express their warm appreciation to all the Employees
ofthe company for their diligenceand contributions.
For and on behalf of the Board of Directors
Place: Mumbai Ashok V. Hiremath
Date : 27th May,2011 Managing Director
Mar 31, 2010
The Directors have pleasure in presenting the 16th Annual Report and
the audited accounts for the year ended March 31,2010.
1. Financial Highlights
Rs. in lacs
2009-10 2008-09
Sales and other operating Income 11638.50 8933.04
Other Income 102.36 36.39
Total Income 11740.86 8969.43
Profit before Interest &
Depreciation 2638.42 2165.70
Less: Interests Depreciation 921.56 925.15
Profit before Tax 1716.86 240.54
Less: Provision for Income Tax/FBT 305.00 151.00
Less: Provision for Deferred Tax 28.17 17.14
Profit after Tax 1383.68 1072.40
Less: Prior Period Adjustment 62.78 35.28
Amount available for appropriation 1320.91 1037.12
Appropriation
Proposed Dividend 169.29 70.72
Tax on Proposed Dividend 28.77 12.02
Transfer to General Reserve 300.00 300.00
Balance of Profit Carried Forward 822.84 654.39
2. Operations
During the year under review Companys Sales rose by 30.29% and the net
profit after tax increased by 29.03%.
The Company was successful in stabilizing production of its products
in increasing production efficiencies.
Our efforts have resulted in receipt of many new registrations in
various parts of the world. Many more registrations are in the
pipeline. We are in dialogue with some multinational companies for
manufacturing products on contractual basis. On finalization of the
agreements, the Company will witness a substantial increase in sales
and corresponding increase in profitability. The business will be
predictable and will provide a platform of stability of the Company.
We were successful in tapping markets in South East Asia and South
America.
In Mahad we made investments to increase the capacity of our
manufacturing facility and to improve the quality of our products. We
also made the investments in line with our commitment to responsible
care to improve our EHS standards.
We invested in R & D and were successful in developing products and
intermediates that are unique and will give the Company substantial
growth in the coming years.
3. Appropriations:
Amount of Rs.300 lacs is credited to General Reserve. Out of the amount
available for appropriation, Your Directors have recommended a
dividend of 10% on Equity Shares (Re.1/- per share of Re.10/- each).
The total amount of dividend is Rs. 169.29 lacs. The dividend tax on
the proposed dividend is Rs.28.77 lacs.
4. Joint Venture:
Your Company has invested in joint venture in Europe which is engaged
in product registration activities.
5. Research and Development:
Your Company continues to focus on R & D. We believe that a productive
R & D is a key ingredient for success. During the year a number of new
products were developed and many cost reduction schemes were initiated.
6. Risk Management:
Our Company continuously monitors business and operational risk. All
key functions and divisions are independently responsible to monitor
risk associated within their respective areas of operations such as
production, insurance, legal and other issues like health safety and
environment.
7. Awards:
Udyog Rattan Award and Excellence Award
Your Company would like to inform you that, our Promoter and Chairman &
Managing Director Mr. Ashok V. Hiremath has been awarded the "Udyog
Rattan Award" from one of the Countrys premier research institute
"Institute of Economic Studies" (IES) for his contribution to the
Economic Development of our Country and your Company has also bagged
the "Excellence Award" in the field of Economic Development.
Gold Star Award & Gold Medal
Your Company would like to inform you that, our Chairman & Managing
Director, Mr. Ashok V. Hiremath has been awarded the "National Gold
Star Award & Gold Medal" from "The Indian Society for Industry &
Intellectual Development" at the 15th National Seminar on "Individual
Achievements & Intellectual Excellence National Development" held at
Dy. Speaker Hall, Constitutional Club, Vithal Bhai Patel House, Rafi
Marg, New Delhi-110001. The award was presented by Chief Guest Mr.
Manikrao Gavit, Member of Parliament, Chairman of Lok Sabha Ethics
Committee & Purva Kendriya Mantri.
8. Listing Fees:
The Company has paid requisite annual listing fees to Bombay Stock
Exchange and National Stock Exchange where its securities are listed.
9. Particulars of Employees:
The Particulars of Employees, as required under Section 217 (2A) of the
Companies Act 1956 read with the Companies (Particulars of Employees)
Rules 1975 are as stated here under.
Name Designation Date of Gross Last
Appointment Remuneration Employment
Mr. Ashok
V. Hiremath Managing 31.01.1994 Rs. 40,00,000/- Hiremath
Chemicals
Director Limited
10. Directors:
Dr. P.L.Tiwari retires by rotation and, being eligible, offers himself
for reappointment.
Mr. Laxmikant Kabra retires by rotation and, being eligible, offers
himself for reappointment.
Appropriate resolutions for the reappointment of the aforesaid Director
are being moved at the ensuing Annual General Meeting, which the Board
commands for your approval.
None of the board members are interested in the resolution except Mr.
Laxmikant Kabra & Dr. P.L.Tiwari.
11. Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and outgo:
In accordance with the requirements of section 217(1)(e)of the
Companys Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules 1 980, the following
information is provided:
a) Conservation of Energy, etc: Steps have been taken to reduce the
power consumption of agitators and pumps. Recycling of waste water and
condensate has resulted in reduction of waste of resources.
b) Technology Absorption : A majority of the technologies utilized by
your Company are developed by in-house R&D department. Some processes
have been provided by potential customers and those have been suitably
absorbed.
c) Foreign Exchange Earnings and outgo:
1. Activities relating to Export, initiatives to increase exports,
Development of new export markets for products and services and Export
promotion plans:
The Company is constantly trying to increase its exports, Strategic
alliances are made with various parties to increase exports. The
Company is obtaining registrations in various parts of the world.
During the year, the Company had exports (FOB value) of Rs. 3460.73
Lacs.
2. Total Foreign Exchange earned and used:
Rs. in lacs
2009-10 2008-09
1. Earnings/Inflow
i. Exports at FOB 3460.73 2590.78
2. Expenditure/Outflow
i. Traveling 9.74 3.27
ii. R&D Expenses 1.55 2.67
iii. Commission 27.63 21.77
iv. Import of Raw Material (CIF) 2970.67 1481.17
12. Directors Responsibility Statement:
Pursuant to the requirement u/s 217(2AA) of the companies Act, with
respect to Directors responsibility statement, it is hereby confirmed:
i) That in the preparation of the accounts for the financial year ended
31st March, 2010 the applicable accounting standards have been followed
along with explanations relating to material departures.
ii.) That the Directors have selected such accounting policies and
applied them entirely and made judgments and estimates that were
reasonable and prudent so as to give true and fair view of the state of
affairs of the Company at the end of the financial year.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv.) That the Directors have prepared the annual accounts for the
financial year ended 31st March, 2010 on going concern basis.
13. Auditors:
M/s. P. M. Kathariya & Co., Chartered Accountants, Mumbai retire as the
Auditors of the Company at the ensuing Annual General Meeting and being
eligible offer themselves for reappointment.
Members are requested to appoint the Auditors to hold office from the
conclusion of this Annual General Meeting til I the conclusion of next
Annual General Meeting and to fix their remuneration.
14. Appreciation:
Your Directors wish to record their appreciation for the support and
co-operation received from the customers, suppliers, banks & stake
holders.
Your Directors express their warm appreciation to all the Employees of
the Company for their diligence and contributions.
For and on behalf of the
Board of Directors
Place :Mumbai Ashok V.Hiremath
Date :24th May, 2010 Managing Director
Mar 31, 2009
The Directors have pleasure in presenting the 15th Annual Report and
the audited accounts for the year ended March 31, 2009.
1. Financial Results:
2008-09 2007-08
Sales and other operating Income 8933.04 6046.27
Other Income; 36.39 15.41
Total Income 8969.43 6061.68
Profit before Interest & Depreciation 2165.70 1586.10
Less: Interest & Depreciation 925.15 642.50
Profit before Tax 1240.54 943.60
Less: Provision for Income Tax/FBT 151.00 111.10
Less: Provision for Deferred Tax 17.14 25.37
Profit after Tax 1072.40 807.13
Less : Prior Period Adjustment 35.28 12.84
Amount available for appropriation 1037.12 794.28
Appropriation
Proposed Dividend 70.72 47.14
Tax on Proposed Dividend 12.02 8.01
Transfer to General Reserve 300.00 200.00
Balance of Profit Carried Forward 654.39 539.13
2. Operations:
During the year under review Companys Sales rose by 47.74% and the net
profit after tax increased by 32.86%.
The Company was successful in stabilizing production of the products
introduced in the previous year and in increasing production
efficiencies.
Our efforts have resulted in receipt of many new registrations in
various parts of the world. Many more registrations are in the
pipeline. We are in dialogue with some multinational companies for
manufacturing products on contractual basis. On finalteation of the
agreements, the company will witness a substantial increase in sales
and corresponding increase in profitability. The business will be
predictable and will provide a platfoim of stability of the company.
During the year the company established a relationship with a major
multinational for supply of one of our products into the global supply
chain.
We were successful in tapping markets in South East Asia afid South
America.
In Mahad we made investments to increase the capacity of our
manufacturing facility and to improve the quality of our products. We
also made the investments in line with our commitment to responsible
care to improve our EHS standards.
We invested in R & D and were successful in developing products and
intermediates that are unique and will give the company substantial
growth in the coming years.
3. Appropriations:
An Amount of Rs. 300 lacs is credited to General Reserve. Out of the
amount available for appropriation, Your Directors have recommended a
dividend of 7.5% on Equity Shares (Rs. 0.75/- per share of Rs. 10/-
each). The dividend tax on the proposed dividend is Rs.12.02 lacs.
4. Joint Venture Company:
Your company has invested in a joint venture in Europe which will be
engaged in product registration activities.
5. Research and Development
Your Directors are pleased to announce that the Company has developed
some products with unique technologies, which will give it a
competitive edge in the Life Sciences industry.
Due to continuing success achieved in the area -ofR&D Astec is in a
position to provide a competitive cost structure for the benefit o its
customer.
Our efforts have resulted in receipt of many new registrations in
various parts of the world. Many more registrations are in the
pipeline. We are in dialogue with some multinational companies for
manufacturing products on contractual basis. On finalization of the
agreements, the company will witness a substantial increase in sales
and corresponding increase in profitability. The business will be
predictable and will provide a platform of stability of the company!
During the year the company established a relationship with a major
multinational for supply of one of our products into the global supply
chain.
We were successful in tapping markets in South East Asia and South
America.
In Mahad we made investments to increase the capacity of our
manufacturing facility and to improve the quality of our products. We
also made the investments in line with our commitment to responsible
care to improve our EHS standards.
We invested in R & D and were successful in developing products and
intermediates that are unique and will give the company substantial
growth in the coming years.
3. Appropriations:
An Amount of Rs. 300 lacs is credited to General Reserve. Out of the
amount available for appropriation, Your Directors have recommended a
dividend of 7.5% on Equity Shares (Rs. 0.75/- per share of Rs. 10/-
each). The dividend tax on the proposed dividend is Rs.12.02 lacs.
4. Joint Venture Company:
Your company has invested in a joint venture in Europe which will be
engaged in product registration activities.
5. Research and Development:
Your Directors are pleased to announce that the Company has developed
some products with unique technologies, which will give it a
competitive edge in the Life Sciences industry.
Due to continuing success achieved in the area of R&D Astec is in a
position to provide a competitive cost structure for the benefit of its
customer.
6. Risk Management:
Our Company continuously monitors business and operational risk through
business process re-engineering and reviewing. All key functions and
divisions are independently responsible to monitor risk associated
within their respective areas of operations such as production,
insurance, legal and other issues like health safety and environment.
7. Particulars of Employees:
The Particulars of Employees, as required under Section 217 (2A) of the
Companies Act
Name Designation Date of Gross Last
Appointment Remuneration Employment
Mr. Ashok
Hiremath Managing 31.01.1.994 Rs.24,00,000/- Hiremath
Chemicals
Director Limited
8. Directors:
Mr. Sitendu Sharma retires, by rotation and, being eligible, offers
himself for reappointment.
Mr. Mohammed Zakir retires by rotation and, being eligible, offers
himself for reappointment.
Mr. Vinod Malshe retires by rotation and, being eligible, offers
himself for reappointment.
Appropriate resolutions for the reappointment of the aforesaid Director
are being moved at the ensuing Annual General Meeting, which the Board
commands for your approval.
9. Conservation or Energy, Technology Absorption and Foreign
Exchange Earnings and outgo :
In accordance with the requirements of section 217(l)(e) of the
Companys Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules 1980, the following
information is provided:
a) Conservation of Energy, etc: Steps have been taken to reduce the
power consumption of agitators and primps. A new coal fired boiler was
commissioned which has resulted in considerable savings in fuel cost.
b) Technology Absorption : A majority of the technologies utilized by
your Company are developed by in-house R&D department. Some processes
have been provided by potential customers and those have been suitably
absorbed.
c) Foreign Exchange Earnings and outgo:
1. Activities relating to Export, initiatives to increase exports,
Development, of new export markets for products and services and Export
promotion plans:
The company Is constantly trying to increase its exports, Strategic
alliances are made with various parties to increase exports. The
company is obtaining registration in various parts of the world. During
the year, the company had exports (FOB value) of Rs. 2590.78 Lacs.
2. Total Foreign Exchange earned and used:
Rs. in Lacs.
2008 - 2009 2007 - 2008
1. Earnings/ Inflow
i. Exports at FOB 2590.78 1438.29
2. Expenditure / Outflow
i. Traveling 3.27 4.98
ii. R&D Expenses 2.67 3.38
iii. Commission 21.77 10.58
iv. Import of Raw Material (CIF) 1481.17 812.11
10. Directors Responsibility Statement;
Pursuant to the requirement u/s 217(2AA) of the companies Act, with
respect to Directors responsibility statement, it is hereby confirmed:
i.) That in the preparation of the accounts for the financial year
ended 31st March, 2009 the applicable accounting standards have been
followed along with explanations relating to material departures.
ii.) That the Directors have selected such accounting policies and
applied them entirely and made judgments and estimates that were
reasonable and prudent so as to give true and fair view of the state of
affairs of the company at the end of the financial year.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the companies Act, 1956 for safeguarding the assets of
the company and for preventing and detecting fraud and other
irregularities.
iv.) That the Directors have prepared the annual accounts for the
financial year ended 31st March, 2009 on going concern basis.
11. Auditors:
P. M. Kathariya & Co., Chartered Accountants, Mumbai retire as the
Auditors of the Company at the ensuring Annual General Meeting and
being eligible offer themselves for reappointment.
Members are requested to appoint the Auditors to hold office from the
conclusion of this Annual General Meeting till the conclusion of next
Annual General Meeting and to fix their remuneration.
12. Appreciation:
Your Directors wish to record their appreciation for the support and
co-operation received from the customers, suppliers and the banks.
Your Directors express their warm appreciation to all the Employees of
the Company for their diligence and contributions.
Place : Mumbai For and on behalf of the Board of Directors
Date: . 21st July 2009
(Ashok Hiremath)
Managing Director