The Directors present their forty-first (41st) Annual Report and Audited Financial Statements for the year
ended March 31, 2016,
prepared in due compliance of extant provisions of the Companies Act, 2013 and
Schedule III thereto.
REVIEW OF OPERATIONS:
Business activities of the company, during the year under review, continued to be restricted to the
manufacture of die casting,
jigs and fixtures, primarily meant for the automobile industry and
management of investments of surplus funds of the company.
During the year under review, sales on account of manufacture of die casting dies, jigs and fixtures,
increased to Rs. 892.96
lakhs as compared to Rs. 687.83 lakhs achieved during the previous year. This
increase was on account of the concerted efforts
made for a smooth flow of work orders, aided by
enhanced productivity and better quality.
During the year under review, the turnover of the company went up from Rs. 6986.19 lakhs to Rs. 11714.99
lakhs, mainly on account
of certain additional dividend received by way of interim dividend.
CLASSIFICATION AS A CORE INVESTMENT COMPANY:
Considering the fact that the company fulfills the criteria for being qualified as a Core Investment
company, exempted from
registration with RBI pursuant to Section 45-IA of the RBI Act, 1934, RBI has
confirmed the classification of the Company as
Such classification of the company by RBI, however has no significant impact on the operations / finances
of the company.
(Rs. in lakhs)
Net sales and other income 11714.99 6986.19
Gross profit before interest and
Interest - -
Depreciation 73.50 315.78
Profit before tax 10099.88 5475.78
Tax expense 116.00 141.00
MAT credit entitlement (116.00) (141.00)
Profit after tax 10099.88 5475.78
Transferred to General Reserve 1010.00 1349.23
(inclusive of dividend 4126.55 4126.55
Balance in Statement of Profit & Loss 4963.33 -
Earnings per share (Rs.) 88.37 47.91
RECOMMENDATION ON DIVIDEND:
At the board meeting of the company held on March 15, 2016, the Directors had recommended an interim
dividend of Rs. 30 per share
(300%) on 11,428,568 equity shares of Rs. 10 each for the financial year
2015-16 (same as last year), which was paid on March 30,
2016 to all eligible shareholders as on March
23, 2016, being the record date fixed for the purpose.
The Directors have not recommended any additional dividend and the interim dividend already paid is being
proposed to be declared
as the final dividend for the financial year 2015-16.
The amount of dividend inclusive of tax thereon for the financial year 2015-16 amounts to Rs. 4,126.55
lakhs, same as paid during
the financial year 2014-15.
The paid up Equity Share Capital as on March 31, 2016 was Rs. 11.42 Crore. During the year under review,
there was no public
issue, rights issue, bonus issue or preference share issue, nor had the Company
issued shares with differential voting rights or
granted stock options or sweat equity.
PRESENTATION OF FINANCIAL STATEMENTS:
The financial statements for the year ended March 31, 2016 are prepared in due compliance of the Schedule
III of the Companies
CASH FLOW STATEMENT:
A Cash Flow Statement for the year 2015-16 is included in the annexed Statement of Accounts.
EXTRACT OF ANNUAL RETURN:
Pursuant to the provisions of Section 92(3) of the Companies Act, 2013 and Rules framed thereunder, an
extract of Annual Return
as on March 31, 2016 in the prescribed Form No. MGT-9 is annexed to this Report
NUMBER OF MEETINGS OF THE BOARD:
There were five (5) meetings of the board held during the year. Detailed information is given in the
DIRECTORS'' RESPONSIBILITY STATEMENT:
As required pursuant to clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, the
Directors, to the best of
their knowledge and belief, state that -
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed
along with proper
explanation relating to material departure;
(b) the directors had 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 and loss of the company for that
(c) that the Directors have taken proper and sufficient care for the maintenance of adequate accounting
records in accordance
with the provisions of the Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other
(d) the directors had prepared the annual accounts on a going concern basis;
(e) the directors had laid down internal financial controls to be followed by the company and that such
controls are adequate and were operating effectively; and
(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable
laws and that such
systems were adequate and operating effectively.
DETAILS IN RESPECT OF FRAUDS, IF ANY, REPORTED BY THE AUDITORS:
During the year under review, no offence involving fraud committed against the company by officers or
employees of the company
was reported by the Auditors to the Audit Committee or the Board pursuant to
Section 143(12) of the Companies Act, 2013.
STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS:
All the Independent Directors have submitted declarations to the company to the effect that they meet the
independence as provided in sub-section (6) of Section 149 of the Companies Act, 2013.
DIRECTORS'' APPOINTMENT AND REMUNERATION POLICY:
Information regarding Directors'' Remuneration Policy and criteria for determining the qualification,
independence of a director and other matters provided under sub-section (3) of
Section 178 of the Companies Act, 2013 are
contained in the Corporate Governance Report. The Policy is
also available on the website of Company i.e. www.mahascooters.com
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS:
The company has not given any loans or guarantees or provided any security. Full particulars of the
investments made by the
company are provided in the Financial Statements attached to this Report.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
During the year under review, the Company had not entered into any transactions with the related parties
which invoked the
provisions of Section 188 of the Companies Act, 2013, thereby necessitating its
approval by the Board or prior approval of the
There being no such contract with related parties which are ''material'' in nature, there are no details
to be disclosed in Form
AOC - 2, under the Companies Act, 2013.
During the year under review, pursuant to the provisions of Section 177 of the Companies Act, 2013 and
Regulation 23 of the SEBI
Listing Regulations, all Related Party Transactions were placed before the
Audit Committee for its prior / omnibus approval.
The Policy on Related Party Transactions as approved by the board is uploaded on the Company''s website:
DETAILS PURSUANT TO RULE 8(3) OF THE COMPANIES (ACCOUNTS) RULES, 2014:
Conservation of energy During the year under review, the Company maintained power factor to unity
throughout the year resulting
in getting maximum rebate in electricity bills. Also wormi composting,
solar water heaters and effluent treatment plant operated
Technology absorption No expenditure is incurred by
attributable to Technology
absorption during the year.
Expenditure on Research No expenditure is incurred by
& Development the Company
attributable to Research &
Development during the year.
Foreign exchange During the year under review,
earnings and Outgo foreign exchange
NIL and outgo was Rs. 331.32 lakhs.
ANNUAL EVALUATION OF THE BOARD, COMMITTEES AND INDIVIDUAL DIRECTORS:
Pursuant to provisions of the Companies Act, 2013 and Regulation 25(4) of the Listing Regulations, 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. The manner in which formal
annual evaluation was made is provided in the annexed Corporate Governance Report.
DETAILS OF DIRECTORS OR KEY MANAGERIAL PERSONNEL WHO WERE APPOINTED OR RESIGNED DURING THE YEAR:
a) Western Maharashtra Development Corporation Limited, one of the two Promoters of the Company, withdrew
the nomination of Shri
N.K. Poyam as its Nominee Director on the board of the company and appointed Shri
Vikram Kumar, IAS, in his place.
b) Ms. Vrushali Agashe, one of the Independent Directors of the company, resigned during the year, owing
to personal reasons. On
the recommendations of Nomination and Remuneration Committee, the board at its
meeting held on February 2, 2016, appointed Mrs.
Charu Desai as an Independent Director / Woman
Director, for a period of 5 years, effective February 2, 2016, subject to the
approval of the
Shareholders at the ensuing Annual General Meeting.
c) The Board records its sincere appreciation for the valuable contribution made by Shri N.K. Poyam and
Ms. Vrushali Agashe
during their tenure on the Board.
MATERIAL ORDERS, IF ANY, PASSED BY THE REGULATORS, COURTS ETC.,:
No material Orders were passed by any Regulators or Courts or Tribunals during the financial year under
review impacting the
going concern status of the company''s operations in future. DETAILS OF INTERNAL
FINANCIAL CONTROLS WITH REFERENCE TO THE
The Company has documented its Internal Financial Controls considering the essential components of
various critical processes,
physical and operational, and which includes its design, implementation and
maintenance along with periodical internal review of
operational effectiveness and sustenance. This
ensures orderly and efficient conduct of its business, including adherence to
safeguarding of its assets, prevention of errors, accuracy and completeness of the accounting records and
timely preparation of reliable financial information.
The internal financial controls with reference to the financial statements were adequate and operating
RISK MANAGEMENT POLICY:
The company has adopted a Risk Management Framework for the company, including identification therein of
elements of risk, if
any, which in the opinion of the Board may threaten the existence of the
MATERIAL CHANGES AND COMMITMENTS:
There have been no material changes and commitments affecting the financial position of the company which
have occurred between
the end of the financial year of the company and the date of this report.
In terms of Regulation 34 of Listing Regulations, a Report on Corporate Governance together with the
thereon, Management Discussion and Analysis Report and CSR Report forms integral
part of Corporate Governance Report.
SECRETARIAL AUDIT REPORT:
Pursuant to the provisions of Section 204 of the Companies Act, 2013, the company had appointed Shri
Shyamprasad D. Limaye a
Fellow Member of the Institute of Company Secretaries of India and a Company
Secretary in Practice (FCS No.1587, Certificate of
Practice No.572) to conduct the secretarial audit and
give a Secretarial Audit Report for the year 2015-16 to be annexed to the
Report of Board of Directors.
Secretarial Audit Report of Shri Shyamprasad D. Limaye in the prescribed Form MR-3 is annexed to
Report (Annexure-II). The Report does not contain any qualification, reservation, disclaimer or adverse
SECRETARIAL STANDARDS OF ICSI:
The company is in compliance of Secretarial Standards on Meetings of the Board of Directors (SS-1) and
General Meetings (SS-2)
issued by the Institute of Company Secretaries of India.
Shri Jayesh A. Kulkarni, a Chartered Accountant acted as Internal Auditor of the company. The internal
established with the approval of Audit Committee of the Board are adequate with
reference to the financial statements and size
and operations of the company.
At the 39th Annual General Meeting of the company, the Shareholders had approved the appointment of M/s.
P.C. Parmar & Co.,
Chartered Accountants as Statutory Auditors for a period until the conclusion of
42nd Annual General Meeting, subject to
ratification of the appointment by the members at every Annual
General Meeting and accordingly, the Notice convening the 41st
Annual General Meeting contains a
proposal for ratification of their appointment along with their remuneration by the members for
2016-17. AUDITORS'' REPORT:
The Statutory Audit Report does not contain any qualification, reservation or adverse remark or
disclaimer made by Statutory
COST AUDIT / AUDITORS:
Pursuant to the provisions of Section 148 of the Companies Act, 2013 and Companies (Cost Records and
Audit) Rules, 2014, the
company was not required to get its cost records audited by a Cost Auditor.
During the year under review, the industrial relations remained cordial. The wage agreement entered into
with the company''s Union
elapsed on March 31, 2016 and negotiations with the Union for an amicable wage
settlement are in progress. ESTABLISHMENT OF
Pursuant to the provisions of Section 177(9) of the Companies Act, 2013 and Rules framed thereunder, the
company has established
a vigil mechanism for directors and employees to report genuine concerns and to
provide for adequate safeguards against
victimizations of persons who use such mechanism and the details
thereof are disclosed on the website of the company
DETAILS OF DIRECTORS AND EMPLOYEES REMUNERATION:
The information required pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(1) of the
Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 in respect of Directors and
employees of the Company are placed on the
Company''s website www.mahascooters.com as an annexure to the Directors'' Report. A
physical copy of the same will be made
available to any shareholder on request.
During the year under review, none of the employees of the company was in receipt of remuneration of more
than Rs. 60 lakhs per
year or Rs. 5 lakhs per month, referred to in Section 197(12) of the Companies Act,
2013 and Rule 5(2) and (3) of the Rules
CORPORATE SOCIAL RESPONSIBILITY (CSR) REPORTING:
Annual Report on CSR pursuant to Rule 8 of Companies (CSR) Rules, 2014 is annexed to this Report
On behalf of the Board of Directors
Pune, May 23, 2016 Chairman