The is a great privilege for your Directors to present the 31st Annual
Report on the business and operations together with Audited Balance
Sheet and Statement of Profit & Loss of your Company for the year ended
March 31, 2012.
Your Company''s performance during the year as compared with the
previous year is summarized below:
(Rs. in Million)
PARTICULARS 2011 - 12 2010 - 11
Sales (Net of Excise Duty) 4,377.88 3,408.05
Gross Profit (GP) 376.11 300.21
(-) Finance Expenses 3.43 5.20
(-) Depreciation 31.58 27.44
Profit Before Taxation (PBT) 341.10 267.58
(-) Provision for Taxation &
Deferred Tax 106.82 88.60
Profit After Tax (PAT) 234.28 178.99
( ) Balance in the Statement of P&L b/f 84.49 18.50
Profit for Appropriation 318.77 197.49
Proposed Equity Dividend 81.79 81.79
Tax on Dividend 13.27 13.27
Transfer to General Reserve 23.50 17.94
Balance retained in the
Statement of P&L 200.21 84.49
Keeping in view of the remarkable financial performance during the year
under review as also the philosophy of your Company to reward its
shareholders, the Board of Directors are pleased to recommend a
Dividend of 60% (Rs. 6/- per equity share) for the Financial Year
2011-2012 (Rs. 6 per share for the previous year). The total amount of
Dividend proposed to be distributed and tax thereon aggregates to Rs.
95.06 Million (including Dividend Tax). The Dividend payout ratio comes
An amount of Rs. 23.50 Million has been transferred to the General
Reserve of the Company. This reaffirms the inherent financial strength
of your Company.
After a strong performance in FY 2010-11, the Indian economy showed
signs of slowdown in FY 2011-12, due to inflationary pressures. The
year also witnessed a sharp deceleration in manufacturing activity
mainly due to monetary tightening, weak external demand and lack of
investment activity. However, the Indian automotive industry has marked
impressive growth in the last fiscal despite weak global macroeconomic
fundamentals. The overall Indian automobile industry recorded a
production growth of 13.83% in 2011-12 by producing 20.37 million
units, majorly driven by demand for two-wheelers and light commercial
In this backdrop, your Company also registered a growth of 28.46%
during the year under review by achieving a Sales Turnover (Net of
Excise) of Rs. 4,377.88 Million (on Standalone Basis) as against
Rs.3,408.05 Million (on Standalone Basis) in the corresponding previous
The Profit before Tax increased to Rs. 341.10 Million (on Standalone
Basis) from Rs. 267.58 Million (on Standalone Basis) resulting a 27.48%
rise, as compared to the previous year.
On Consolidated Basis, your Company registered a growth of 20% during
the year under review by achieving a Sales Turnover (net of excise) of
Rs. 7,514.84 Million as against Rs. 6,266.92 Million during the previous
On Consolidated Basis, your Company recorded a Profit before Tax of Rs.
617.99 Million during the year under review as compared to Rs. 548.24
Million during the previous year, registering a growth of 12.72%.
Like other auto-component manufacturers, your Company also caters not
only to the OEMs, but also to the after-sales market. A significant
contribution to the turnover was mainly attributed by an outstanding
performance of your Company in supplies of various lighting parts,
Chassis and other Fabrication products to OEM''s. The after market
segment also registered a significant growth. In recent years, company
has focused on new part requirements for OEM''s, therefore your Company
has achieved excellent results this year from the same.
The significant contribution for the growth was mainly attributed to
sale of Chassis from Waluj Plant, Lighting parts from Chakan and
Bhosari plants and Seat Frames from PCNTDA units to execute the strong
orders book from its various customers and a growth of 25% in after-
market sales of the Company over the previous year.
NEW BUSINESS AND FACILITIES
During the year under review, your company has successfully diversified
into the business of Electronic Manufacturing with the setting up of
State-of-the-art Surface Mounted Technology (SMT) line. This will
primarily cater for all our Light Emitting Diodes (LED) based Printed
Circuit Board (PCB) assemblies requirements for Auto lamps, LED
Destination boards and venturing into non-Auto fields.
Further, your Company is also in the process of setting up new Robotic
Frame Welding plant in Waluj, Aurangabad. The welding process requires
skilled manpower and in present industry scenario it is very difficult
to get and retain skilled manpower. Considering the stringent quality
requirement, your Company has decided to set up a state of the art
manufacturing facility having 7 robotic stations. With this robotic
line 75% welding work will be done through robo, which will result into
70% less dependency on skilled manpower. The said facility is expected
to become operational by the next year.
A detailed discussion on the business performance and future outlook is
provided in the Chapter on Management Discussion and Analysis Report
100% SUBSIDIARY- LUMAX DK AUTO INDUSTRIES LIMITED (LDK)
During the year under review LDK has achieved net sales revenue of Rs.
3,106.57 Million as against Rs. 2,838.58 Million during the previous
year, showing a growth of 9.44%. However, the Profit Before Tax has
marginally declined to Rs. 273.59 Million from Rs. 276.38 Million during
the previous year.
Further, the Gear Shifter Division has received Overall Performance
Award for Supplies and Quality and Best localization supplier award
for the year 2011-12 from Maruti Suzuki India Limited.
JOINT VENTURE COMPANY
LUMAX CORNAGLIA AUTO TECHNOLOGIES PRIVATE LIMITED (LCAT)
During the year under review LCAT has reported an impressive growth of
28.59% by recording net sales of Rs. 114.38 Million as against Rs. 88.95
Million for the previous year. The Profit before Tax has declined to Rs.
6.62 Million from Rs. 8.57 Million for the previous year mainly on
account of forex loss.
Presently, LCAT is supplying Air Intake System (AIS) to four leading
automobile manufacturers in India viz. TATA, FIAT, VOLKSWAGEN (VW) &
SKODA and during the year it has supplied Prototype parts of AIS to
General Motors India & Exhaust System to Tata Motors. LCAT has also
started manufacturing & supplying 3D Blow Moulded Ducts to FIAT,
thereby making itself a single source for all current programs. LCAT
has also received orders from General Motors India (GM) for AIS and CAC
Ducts for new Commercial & Passenger Vehicle programs. LCAT has, at
the same time received RFQ for Exhaust systems from Tata Motors
Passenger Car segment.
Further, regular supply of Exhaust Systems to Tata Motors will be
started in F.Y.2012-13 for Nano Europa & Nano Diesel programs.
LCAT has a VISION - 2015, to become a full service provider for
Automotive Air Intake & Exhaust Systems with the application of
innovative and cost effective solutions that will add value to the
customers as well as to the organization.
The Joint venture partners have invested Rs. 45.00 Million in the 3D Blow
Moulding Plant for Intake & CAC Ducts in phased manner in two tranches,
out of which the second tranche of Rs. 25.00 Million was invested in the
FY 2011-12 by way of equity. LCAT has already secured orders for the
Intake Ducts & CAC Ducts from TATA, VW & GM.
In accordance with the provisions of Companies Act, 1956 and Articles
of Association of the Company Mr. Manmohan Sachdev and Mr. A.V.
Alexander, Directors of the Company are retiring by rotation at the
ensuing Annual General Meeting and being eligible, offer themselves for
Your Directors recommend the re-appointment of the above said Directors
at the ensuing Annual General Meeting.
DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act 1956, the
(i) That in the preparation of the Annual Accounts for the Financial
Year ended March 31, 2012, the applicable Accounting Standards have
been followed along with proper explanation relating to material
(ii) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates 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 or loss of the company for that period;
(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
(iv) That the Directors have prepared the Annual Accounts on a going
During the year under review the Company has not accepted any Deposit
under Sections 58A and 58AA of the Companies Act, 1956 read with the
Companies (Acceptance of Deposits) Rules, 1975.
M/s D. R. Barve & Co, Chartered Accountants, having its Firm
Registration Number FRN 101034W, are proposed for re-appointment as
Statutory Auditors of the Company, from the conclusion of the ensuing
Annual General Meeting till the conclusion of the next Annual General
Meeting. They have given their consent to act as Auditors of the
Company and have further confirmed that their appointment would be in
conformity of the provision of Section 224(1B) of the Companies Act,
1956. The Board recommends their re-appointment for the approval of the
Members in the ensuing Annual General Meeting.
During the year, all the recommendations of the Audit Committee were
accepted by the Board. Hence there is no need for disclosure of the
same in this Report.
CONSOLIDATED FINANCIAL STATEMENT
The Consolidated Financial Statements of the Company are prepared in
accordance with the Accounting Standard, Companies Act, 1956 and all
other laws for the time being in force (if applicable) and the same
forms part of this Annual Report.
Further, in accordance with the Circular issued by Ministry of
Corporate Affairs (MCA), granting the general exemption from the
provisions of Section 212 of the Companies Act, 1956, your Company is
not attaching the Annual Accounts for the year ended March 31, 2012 and
other related documents of its subsidiary Company Lumax DK Auto
Industries Ltd (LDK) with this Annual Report. Any shareholder
interested in obtaining a copy of the Annual Accounts of LDK may write
to the Company Secretary at the registered office of the Company and
the company undertakes to supply the same along with all related
detailed information. In addition, the Company shall also keep the same
Annual Accounts for inspection by any Shareholders in the registered
office of the Company and LDK.
MATERIAL CHANGES AND COMMITMENTS
No other material changes and commitments affecting the Financial
position of the Company have occurred between April 1, 2012 and the
date on which this Report has been signed.
MANAGEMENT DISCUSSION & ANALYSIS REPORT
Pursuant to the provisions of Clause 49 of the Listing Agreement,
Management Discussion & Analysis Report is annexed as part of this
report separately as Annexure - A.
Disclosure of information regarding Conservation of Energy, Research &
Development, Technology Absorption and Foreign Exchange Earnings and
Outgo etc. under Section 217(1)(e) of the Companies Act, 1956, is
annexed separately as Annexure - B.
The report on Corporate Governance together with the Auditor''s
Certificate regarding the Compliance of conditions of Corporate
Governance as stipulated in Clause 49 of the Listing Agreement is
annexed and forms part of this Annual Report as Annexure - C.
PARTICULARS OF EMPLOYEES
Information on Particulars of Employees as required under Section
217(2A) of the Companies Act, 1956 read with the Companies (Particulars
of employees) Rules, 1975 forms an integral part of this report.
However, as per the provisions of Section 219(1)(b)(iv) of the
Companies Act, 1956, the Annual Report is being sent to the
shareholders of the Company excluding the Statement of Particulars of
employees under Section 217(2A) of the Companies Act, 1956. Any
shareholder interested in obtaining a copy of such statement may write
to the Company Secretary at the registered office of the Company.
Your Directors place on record their gratitude to all its highly valued
customers, its Technical Collaborators, Joint Venture Partners, all
other business partners, all the Shareholders, Financial Institutions,
Banks, Vendors and various Government agencies for the assistance, co-
operation and encouragement they extended to the Company.
The Directors of your Company also wish to place on record their deep
sense of appreciation for the dedicated and sincere services rendered
by the executives, staff and workers of the Company.
For and on behalf of the Board of Directors
Place: Gurgaon D. K. JAIN
Dated: May 30, 2012 CHAIRMAN