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CMI

BSE: 517330|NSE: CMICABLES|ISIN: INE981B01011|SECTOR: Cables - Telephone
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Download Annual Report PDF Format 2017 | 2016 | 2015 | 2014 | 2013 | 2010
Directors Report Year End : Mar '18    Mar 16

The Directors are pleased present the 51st Annual Report together with the Company''s Audited Financial Statements and the Auditor''s Report thereon for the financial year ended March 31, 2018.

Financial Performance Summary

(Rs. in Lakh)

Particular

Standalone

Consolidated

Financial Results

2017-18

2016-17

2017-18

2016-17

Total revenue

40,205.10

34,910.18

57,686.53

42,556.09

Less: Total Expenditure excluding Depreciation

36,508.76

31,429.51

52,700.25

39,280.26

Profit before Depreciation and Tax

3,696.34

3,480.67

4,986.28

3,275.83

Less: Depreciation

140.05

133.88

1,048.22

1,013.32

Add: Exceptional items

-

0.73

-

0.73

Add: Extra-ordinary items

-

-

-

-

Profit Before Tax

3,556.29

3,347.52

3,938.06

2,263.24

Less: Current Tax

(1,177.34)

(1,030.95)

(1,150.56)

(1,030.95)

Deferred Tax

(88.25)

(72.43)

(180.18)

1,774.68

Earlier Tax

-

-

(26.78)

-

Net Profit for the year carried to the Balance Sheet

2,290.70

2,244.14

2,580.54

3,006.97

OVERALL REVIEW

During the financial year 2017-18 the performance of the company has been satisfactory. During financial year 2017-18, standalone turnover of the Company increased by 15.17%. The Profit before depreciation and tax (standalone) has increased by 6.20% while the Net Profit (standalone) has increased by 2.07%. The Company has adopted adequate cost control measures throughout the year, and has been aggressive in its quest for new business. This helped to deliver a decent revenue growth. Your Company continues to focus on production of quality cables to broaden its customer base and to set a benchmark in the competitive market. With stable government at centre, the long term outlook of cable industry is expected to be favorable, driven by Power Sector Reforms, Modernization of Railways, new Metro Railways and other Infrastructures Developmental Projects.

DIVIDEND

The Directors are pleased to recommend payment of dividend on equity shares @ Re. 1/- per equity share (10%) for the financial year 2017-18 ( previous year Rs 1/- per share). The dividend on equity shares, if approved by Members, would involve payout of Rs 180.87 Lakhs including dividend distribution tax Pursuant to Regulation 43A of the SEBI ( Listing Obligations and Disclosure Requirements) Regulations, 2015 , the company has adopted The Dividend Distribution Policy which is also available on the website of the Company at www.cmilimited.in.

UNCLAIMED DIVIDEND

Pursuant to provisions of Section 124 (2) of the Companies Act, 2013 the statement containing the names, addresses and the details of the unpaid interim and final dividend as on 29.12.2017 (date of last Annual General Meeting) has been uploaded on the Company''s website (www.cmilimited.in).

RESERVES

During the year under review, Reserves and Surplus as at 31st March, 2018 stood at Rs. 11,922.81 Lakh on the basis of Standalone Financial Statement and Rs. 22,310.69 Lakh as per Consolidated Financial Statement.

AUDITORS AND THEIR REPORT

M/s. Krishna Neeraj & Associates, Chartered Accountants, (Firm Registration No.023233N) was appointed as the Statutory Auditor by the members in the 49th Annual General Meeting of the Company for a term of 5 consecutive years i.e. to hold the office until the conclusion of the 54th AGM of the Company, subject to ratification of their appointment at every AGM if required under the Act.

Further, the ratification by shareholders in respect of their appointment as the Statutory Auditors of the Company is proposed at ensuing AGM of the Company and in respect of which they have furnished a certificate of their eligibility confirming that ratification of their appointment, if made, at the ensuing Annual General Meeting would be within the limits specified under Section 139(1) and 141 of the Companies Act, 2013 and the rules framed thereunder.

The observations made in the Auditors'' Report on the audited accounts of the company for the year ended 31st March, 2018, are self explanatory and therefore, do not require further explanation. The Auditors'' Report does not contain any qualification, reservation or adverse remark.

COST AUDITOR

As per the requirement of Central Government and pursuant to provisions of Section 148 of the Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014 as amended from time to time, audit of cost records of the Company is being carried out. The Board of Directors, on recommendation of Audit Committee, has appointed M/s Ajay Kumar Singh and Co., Cost Accountants, as Cost Auditor to audit the cost records and accounts relating to cable manufacturing for the financial year ending March 31, 2019. As per the requirement of the aforesaid section, a resolution ratifying remuneration payable to Cost Auditors forms part of the Notice convening the 51st Annual General Meeting.

Your Company has maintained cost records and accounts as per Section 148 (1) of the Companies Act, 2013. Further, the Cost Audit Report for FY 2016-17 was filed on 21st December, 2017.

INTERNAL AUDITOR

As per the requirement of Section 138 read with Rule 13 of the Companies (Accounts) Rules, 2014 of the Companies Act, 2013, the Board of Directors on recommendation of Audit Committee has appointed Mr. Raj Kumar as an Internal Auditor of the Company.

Mr. Raj Kumar, Internal Auditor of the Company, presents report and makes presentation to the audit committee on internal audit, which is reviewed by the audit committee from time to time.

SECRETARIAL AUDITOR

Pursuant to provision of Section 204 of the Companies Act, 2013, and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Board of Directors has appointed M/s Pooja Anand & Associates, Practicing Company Secretaries for conducting Secretarial Audit of the Company for the financial year 2017-18.

- The Secretarial Audit Report for FY 2017-18 as submitted by Secretarial Auditor in Form MR-3 is annexed as Annexure-1. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark except the Company has spent Rs. 35.49 Lacs towards CSR which is less than the prescribed amount that the Company was required to spend pursuant to the provisions of Section 135 of the Companies Act, 2013 during the financial year under review but the Company is in process of conceptualizing a structured program in the FY 2018-19 to meet its CSR objective and to comply with the provisions of the aforesaid Section.

INTERNAL CONTROL SYSTEM

The Company has well placed, proper and adequate internal control system, which ensures that all assets are safeguarded and protected and that the transactions are authorized, recorded and reported correctly. The Company''s internal control system comprises audit and compliance by in-house internal Audit Division. The Internal Auditors independently evaluate the adequacy of internal controls and concurrently audit the majority of the transactions in value terms. Independence of the audit and compliance is ensured by direct reporting of Internal Audit Division and Internal Auditor to the Audit Committee of the Board.

CREDIT RATING

During the year under review the Company has improved its long term credit rating to CARE-BBB . The BBB awarded by Care Analysis and Research Limited (CARE) reflects moderate degree of safety regarding timely servicing of financial obligation. The Company''s short term credit rating has also improved to CARE A3 by Care Analysis and Research Limited (CARE), reflecting moderate degree of safety regarding timely payment of financial obligations.

SEGMENT WISE PERFORMANCE:

Company operates only in one segment.

RISK MANAGEMENT

In compliance with the requirement of the Companies Act, 2013, the Company has put in place Risk Minimization and Assessment Procedures. In order to effectively and efficiently manage risk and address challenges the Company has formulated Risk Management Policy. The Company manages the risk in line with current risk management best practices. This facilitates the achievement of our objectives, operational effectiveness and efficiency, protection of people and assets, informed decision making, and compliance with applicable laws and regulations.

MATERIAL CHANGES:

No material changes and commitments affecting the financial position of the company occurred between the end of financial year of your Company and the date of Director''s Report. However,

The Company pursuant to provisions of Section 230 and 232 of Companies Act, 2013, the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, the National Company Law Tribunal Rules, 2016, and other applicable provisions, filed the Scheme of Amalgamation between CMI Energy India Private Limited (wholly owned Subsidiary Company) {the Transferor Company} and CMI Limited {the Transferee Company} before Hon''ble National Company Law Tribunal (NCLT), Principal Bench, New Delhi, with effect from 01.03.2016 being the Appointed Date. The Transferor and the Transferee Companies have obtained the approval from their respective Board of Directors in their Board Meetings held on 21st May, 2018. The aforesaid Scheme was also approved by the Secured Creditors, Unsecured Creditors and Members of the Transferee Company and by the Secured and Unsecured Creditors of the Transferor Company in their meetings held on 28th July, 2018, under the supervision of the Hon''ble NCLT, Principal bench, New Delhi and in compliance with the provisions as stated in the Order dated 13.06.2018 duly issued by the Hon''ble NCLT. The Members of the Transferor Company accorded their approval by giving their No-Objection to the Scheme. The matter is pending with the Hon''ble NCLT for its final approval.

DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:

The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were checked and no reportable material weaknesses were observed.

DETAILS OF SUBSIDIARY/JOINT VENTURES/ASSOCIATE COMPANIES

As on 31st March, 2018, the Company has one wholly-owned subsidiary, i.e. CMI Energy India Private Limited (formerly known as General Cable Energy India Private Limited) and pursuant to provisions of Section 129 (3) of the Companies Act, 2013, Regulation 33 and any other applicable provisions of SEBI Listing Obligations and Disclosure Requirements Regulations (LODR), 2015 and Indian Accounting Standards (Ind AS)-110, the Consolidated Financial statements of the Company including of its subsidiary company, duly audited by the Statutory Auditors of the Company, have been prepared and forms part of the Annual Report.

A report in Form AOC-1 stating the performance and financial position of its subsidiary Company pursuant to provision of Section 139 read with Rule 5 of Companies (Accounts) Rules, 2014 of the Companies Act, 2013 is annexed and marked as Annexure 2.

As on 31st March, 2018, the Company has a step down subsidiary in the name of CMI Agro Limited which is a wholly owned subsidiary of CMI Energy India Private Limited.

Further, pursuant to the provisions of section 136 of the Act, the Company''s consolidated financial statements along with relevant documents and separate audited financial statement of subsidiaries are available on the website of the Company.

DIRECTORS AND KEY MANAGERIAL PERSONNELS:

Change in Directorship

- During the year, Mr. Ramesh Chand, Non-executive Independent Director has resigned w.e.f 29th March, 2018 from the Board of Directors of the Company.

- As on date the Company has total 6 Directors with an Executive Chairman, which includes 2 Executive Directors, 4 Non-executive Independent Directors inclusive of 1 Women Director. The Board consists of following members:

Sr. No.

Name of Director

DIN

Designation

1

Mr. Amit Jain

00041300

Chairman cum Managing Director

2

Mr. Vijay Kumar Gupta

00995523

Whole-Time Director

3

Mr. Pyare Lal Khanna

02237272

Non-Executive Independent Director

4

Mrs. Archana Bansal

01129623

Non-Executive Independent Director

5

Mr. Kishor Punamchand Ostwal

00460257

Non-Executive Independent Director

6

Mr. Manoj Bishan Mittal

00282676

Non-Executive Independent Director

Changes in Key Managerial Personnel

- Mr. Amit Jain, Chairman cum Managing Director; Mr. Vijay Kumar Gupta, Whole time Director; Mr. Rattan Lal Aggarwal, Chief Financial Officer and Mr. Subodh Kumar Barnwal, Company Secretary are the KMPs of the Company as per provisions of the Act.

- Directors liable to retire by rotation

Mr. Vijay Kumar Gupta is liable to retire by rotation at the ensuing Annual General Meeting and, being eligible, offers himself for reappointment.

None of the Directors are disqualified under the provisions of the Companies Act, 2013.

Declaration by Independent Directors

The Independent Directors hold office for a fixed term of five years and are not liable to retire by rotation. The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed both under the Act and under the SEBI (LODR), Regulations, 2015.

Evaluation of the Board, its Committees and Individual Directors

The Company has devised a Policy for performance evaluation of Independent Directors, Board, Committees and other individual Directors which include criteria for performance evaluation of the Non-executive Directors and Executive Directors.

Pursuant to the provisions of the Act, the Board has carried out an annual evaluation of its own performance, the individual Directors (including the Chairman) as well as an evaluation of the working of all Board Committees. The Board of Directors were assisted by the Nomination and Remuneration Committee. Some of the performance indicators based on which evaluation takes place are experience, expertise, knowledge and skills required for achieving strategy and for implementation of best governance practices which ultimately contributes to the growth of the Company in compliances with all policies of the Company.

COMMITTEE OF THE BOARD

A. Audit Committee

As on 31.03.2018, the Composition of Audit Committee is as under:

Mr. Pyare Lal Khanna, Independent Director

Chairman

Mrs. Archana Bansal, Independent Director

Member

Mr. Vijay Kumar Gupta, Whole-time Director

Member

The Board of Directors in their meeting held on 21st May, 2018 approved the reconstitution of the Committee and thereafter the Committee comprises of the following members:

Mr. Kishor Punamchand Ostwal, Independent Director

Chairman

Mr. Pyare Lal Khanna, Independent Director

Member

Mr. Vijay Kumar Gupta, Whole-time Director

Member

The above composition duly meets the requirements of Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Section 177 of the Companies Act, 2013.

Mr. Subodh Kumar Barnwal acts as Secretary of the Committee.

All recommendations made by the Audit Committee were accepted by the Board.

B. Nomination & Remuneration Committee

In adherence of Section 178 of Companies Act, 2013, the Board of Directors of the Company in their Meeting held on November 20, 2015 approved a policy for determining Directors'' appointment, their remuneration including criteria for ascertaining qualifications, positive attributes, independence of a Director and other matters provided u/s 178(3) based on the recommendations of the Nomination and Remuneration Committee. The broad parameters covered under the policy are formulating criteria for determining qualifications, positive attributes and independence of a director, identifying persons who are qualified to become Directors and who may be appointed in Senior Management and as KMPs of the Company in accordance with the criteria laid down, recommend to the Board their appointment and removal, recommending to the Board a policy relating to the remuneration of the Directors, Senior Management, KMP and other employees, as may be applicable, formulating criteria for evaluation of Independent Directors and the Board and carry out evaluation of every Director''s performance, devising a policy on Board diversity, ensuring that level and composition of remuneration is reasonable and sufficient to attract, retain and motivate Directors of the quality required to run the company successfully, ensuring the relationship of remuneration to performance is clear and meets appropriate performance benchmarks, carrying out any other function as is mandated by the Board from time to time and/or enforced by any statutory notification, amendment or modification, as may be applicable and performing such other functions as may be necessary or appropriate for the performance of its duties.

The Composition of Nomination & Remuneration Committee comprises of Mr. Pyare Lal Khanna, Independent Director as Chairman, Mr. Manoj Bishan Mittal, Independent Director as Member and Mrs. Archana Bansal, Independent Director as Member of the Company.

The above composition duly meets the requirements of Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Section 177 of the Companies Act, 2013.

Mr. Subodh Kumar Barnwal acts as Secretary of the Committee.

Accordingly, in order to comply with the aforesaid provisions the following policies are available on the website of the Company

(http://www.cmilimited.in/img/pdf/NOMINATION_AND_REMUNERATION_COMMITTEE):

a) Policy for selection of Directors and determining Directors independence; and

b) Remuneration Policy for Directors, Key Managerial Personnel and other employees.

C. Stakeholder Relationship Committee

In adherence with Regulation 20 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Stakeholder Committee is responsible for all matters concerning the share transfers, transmissions, issue of duplicate share certificates and attending grievances of the shareholders.

The Composition of Audit Committee is as under:

Mr. Pyare Lal Khanna

Chairman

Mr. Vijay Kumar Gupta

Member

Mrs. Archana Bansal

Member

Mr. Subodh Kumar Barnwal acts as Secretary of the Committee.

D. Corporate Social Responsibility Committee

The Company has constituted a Corporate Social Responsibility Committee to discharge the duties stipulated under Section 135 of the Companies Act, 2013 which includes formulation and recommendation to the Board, a Corporate Social Responsibility (CSR) Policy indicating the amount to be undertaken by the Company as per Schedule VII of the Companies Act, 2013, recommendations of the amount of expenditure to be incurred and monitoring CSR Policy of the Company.

The Composition of Corporate Social Responsibility Committee is as under:

Mr. Pyare Lal Khanna

Chairman

Mr. Vijay Kumar Gupta

Member

Mrs. Archana Bansal

Member

Mr. Subodh Kumar Barnwal acts as Secretary of the Committee.

The brief outline of the Corporate Social Responsibility (CSR) policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure 3 of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. For other details regarding the CSR Committee, please refer to the corporate governance report, which forms part of this report.

VIGIL MECHANISM AND WHISTLE BLOWER POLICY:

The Company promotes ethical behaviour in all its business activities and has put in place a mechanism for reporting illegal or unethical behaviour. The Company has a Vigil mechanism and Whistle blower policy under which the employee(s) are free to report violations of applicable laws and regulations and the Code of

Conduct. Employees may also report to the Chairman of the Audit Committee. During the financial year, no employee was denied access to the Audit Committee. The Policy provides that the Company investigates such reported matters in an impartial manner and takes appropriate action to ensure that requisite standards of confidentiality, professional and ethical conduct are always upheld.

The policy is available on our website http://www.cmilimited.in

PREVENTION OF SEXUAL HARASSMENT

The Company, in its endeavour, for zero tolerance towards sexual harassment at the workplace, has adopted Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 Policy. The Policy governs to maintain ethics, transparency and accountability by ensuring that the working environment at all our locations is conducive to fair, safe and harmonious relations based on mutual trust and respect between all associates of the Company. The Company has complied with provisions relating to constitution of Internal Compliant Committee (''ICC'') under the policy which provides forum to all female personnel to lodge complaints herewith for redressal. The Policy aims to provide the effective enforcement of basic human right of gender equality and protection from sexual harassment and abuse.

During the year, there was no complaint lodged with the ICC.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186:

The particulars of Loans, Guarantees and Investment in pursuance to Section 186 of the Companies Act, 2013 have been disclosed in the financial statements read together with Notes annexed to and forming an integral part of the financial statements.

RELATED PARTY TRANSACTIONS:

In adherence with provision of Section 188 and as per provisions of Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, the Company entered into the Related Party Transactions during the financial year 2017-18 and Particulars of Contracts or Arrangements with Related parties referred to in Section 188(1) are included in Form AOC- 2 (Annexure - 4). The Company has also entered into the transaction as per Indian Accounting Standard 24 (Ind AS-24) and the same has been disclosed in the Note 40 A and B of notes to the Financial Statements for the year ended 31st March, 2018.

EXTRACT OF THE ANNUAL RETURN:

As required pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014, an extract of annual return in Form MGT 9 is a part of this Annual Report and is annexed as Annexure 5 and is also available on the website of the Company at http://www.cmilimited.in.

DIRECTOR''S RESPONSIBILITY STATEMENT

Pursuant to Sub-section (5) of Section 134 of the Companies Act, 2013 with respect to the Director''s Responsibility Statement, it is here by confirmed that:

i. In the preparation of the Annual Accounts for the year ended 31st March, 2018 the applicable accounting standards read with requirements set out under Schedule III of the Act have been followed and no material departures have been made from the same.

ii. Appropriate Accounting Policies have been selected and applied consistently and have made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at March 31, 2018 and of the profit of the Company for that year ended on that date except to the extent mentioned in notes to accounts.

iii. Proper and sufficient care has been taken 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 irregularities.

iv. The Annual Accounts have been prepared on a going concern basis.

v. The internal financial controls to be followed by the Company had been laid down and that such internal financial controls are adequate and were operating effectively.

vi. The proper systems had been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

NUMBER OF MEETINGS:

Board Meeting:

During the year ten (10) Board Meetings and one Independent Directors'' Meeting were held. The details of which are given in Corporate Governance Report. The provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 were adhered to while considering the time gap between the two meetings.

SHARE CAPITAL

The Company''s shares are listed on the BSE Limited and National Stock Exchange of India Limited (NSE) and are traded on both the stock exchanges actively.

a) EQUITY SHARES

The Board of Directors of the Company at their meeting held on 17th April, 2017 have allotted 2,50,000 Equity Shares @ Rs.300/-per equity share (including premium of Rs 290/- per share), to promoter, on a preferential basis in accordance with provisions specified under Chapter VII of SEBI (ICDR) Regulations, 2009.

The Company has filed listing application for listing of above said 2,50,000 Equity Shares and received Listing Approval of 2,50,000 Equity shares from the BSE Limited and National Stock Exchange of India Limited vide its letter no DCS/PREF/SD/PRE/1946/2017-18 dated May 24, 2017 and NSE/LIST/11601 dated May 26, 2017 respectively and received trading approval from BSE Limited and National Stock Exchange of India Limited vide its letter no DCS/PREF/TP/SD/4920/2017-18 dated 19th June, 2017 and NSE/LIST/12132 dated July 20, 2017 respectively.

The Company has made preferential allotment of shares during the year and duly complied the requirements of section 42 and 62 of the Companies Act, 2013. Accordingly, the amount raised have been applied for the purpose for which funds were raised.

As stated in the Notice of EGM dated 22.02.2017 in compliance with the requirements of SEBI (Issue of capital and Disclosure Requirements) Regulations, 2009, the Company has utilized the amount received from preferential allotment for meeting the long term working capital requirements of the Company.

DEPOSITS

During the year under review, the Company has not accepted any deposits within the meaning of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules. The Company did not have any unclaimed or overdue deposits as on March 31, 2018.

HUMAN RESOURCES

Your Company has put in place effective human resource acquisition and maintenance function, which is benchmarked along with best corporate practices designed to meet the organizational needs and it takes pride in its highly motivated manpower that contributed its best to the Company. The Employees'' relations within the organization have been very cordial and harmonious during the year.

CORPORATE GOVERNANCE AND SHAREHOLDERS INFORMATION

The Company is committed to maintain highest standards of Corporate Governance and adhere to Corporate Governance requirement set out by SEBI. The Company has also implemented best Corporate Governance practices. Your Company has taken adequate steps to adhere to all the stipulations as per the relevant provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the FY 2017-18.

As per SEBI LODR Regulation

- A report on Corporate Governance Report is included as a part of this Annual Report.

- Certificate of the CFO and Managing Director, inter alia, confirming the correctness of the financial statements, compliance with Company''s Code of Conduct, adequacy of the Internal Control measure and reporting of matters to the Audit Committee, is attached and forms part of this report.

- Certificate from the Practicing Company Secretaries confirming the compliance with the conditions of Corporate Governance is attached to this report.

MANAGEMENT DISCUSSION AND ANALYSIS (MDA)

The detailed analysis of the operating performance of the Company for the year, the state of affairs and the key changes in the operating environment have been included in the Management Discussion and Analysis section which forms part of the Annual Report.

HEALTH, SAFETY AND ENVIRONMENTAL (HSE) REVIEW

CMI Limited is committed to maintain highest standards in the areas of Health, Safety and Environment. It has made good progress in these areas with no fatal accident reported during the Period.

With an aim to certify its operational location, CMI Limited, Plot No. 71 & 82, Sector-06, Faridabad, Haryana-121006 with the integrated Management system OHSAS 18001 and ISO 14001 - Occupational Health, Safety and Environment, CMI Limited has got externally accreditation for its said manufacturing location by M/s American Quality Assessors.

CMI Energy India Private Limited, wholly owned subsidiary of the Company having factory located at Village Bhatouli Khurd, Tehsil-Nalagarh, Baddi, District-Solan-173205, Himachal Pradesh has obtained certification of OHSAS 18001:2007 regarding Occupational Health and Safety Management System, ISO 14001-2015 for Environmental Management System from Gotek Global Certification Pvt. Ltd, and ISO 9001:2015 for quality management system from QMS Certification Services Pvt. Ltd.

MANAGERIAL REMUNERATION

The information required under section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is mentioned in Annexure - 6

No employees is in receipt of remuneration as specified under section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

ENERGY, TECHNOLOGY ABSORBTION AND FOREIGN EXCHANGE

The disclosure of particulars with respect to conservation of energy, technology absorption, research and technology and foreign exchange earnings and outgo pursuant to Section 134 (3)(m) of the Companies Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014, forming part of the Directors'' Report are as under:

A. Conservation of Energy:

a) Energy conservation measures taken:-

A number of energy conservation techniques were initiated and successfully implemented which helped in improving efficiency levels.

Some of the key initiatives were as follows:-

In the existing manufacturing units the Company continued various initiatives to conserve/reduce environmental impact, by adapting to green manufacturing and concept of Reduce, Reuse and Recycle viz.

- Efficient maintenance and daily monitoring of Capacitor Bank for improvement of Power Factor.

- Replacing energy inefficient equipment with new technologies which are efficient with AC Drives.

b) The capital investment on energy conservation equipment or any other additional investments and proposals, if any, being implemented for reduction of consumption of energy:-

No material capital investment on energy conservation equipment or any other investment was made for reduction of consumption of energy during the financial year and no separate records were kept for costs incurred on proper maintenance of all machineries and equipment.

c) Impact of measures on (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods:-

The energy conservation measures maintained during the year have resulted into yearly saving and thereby lowered the cost of production by equivalent amount. These measures have also led to better pollution control, reduced maintenance time and cost, improved hygienic condition and consistency in quality and improved productivity.

B. Technology Absorption, Adaptation & Innovation :

a) Efforts, in brief, made towards technology absorption, adoption and innovation Energy conservation, upgradation in manufacturing and efficiency improvement

- Use of energy efficient LED and CFL lamps in whole plant.

- Recycling the vacuum Pump cooling water for environment saving.

- Company now updated with manufacturing of all types of cable.

- New and upgraded technology has been followed for energy conservation.

b) Benefits derived as a result of the above efforts

- Reduction in power usage and thereby reducing cost of production.

- Environmental saving.

- Improved efficiency and productivity.

- Cost and time saving.

C. Research and Development:

Standalone basis:

Specific areas in which R&D carried out by the Company

Product Development and process improvement

Benefits derived as a result of the above R&D

The company can manufacture all types of cable in the area in which it operates

Future plan of action

Technology Upgradation

Expenditure on R&D

Capital Expenditure: Rs. 3.13 Lakh Recurring Expenditure: Rs. 3.75 Lakh

Consolidated basis:

Specific areas in which R&D carried out by the Company

Product Development and process improvement

Benefits derived as a result of the above R&D

The company can manufacture all types of cable in the area in which it operates

Future plan of action

Technology Upgradation

Expenditure on R&D

Capital Expenditure: Rs . 3.13 Lakh Recurring Expenditure: Rs. 6.33 Lakh

D. Foreign Exchange Earnings and Outgo:

a) Activities relating to export, initiative to increase exports, development of new export markets for Products and Services and Export Plan.

- The Company has continued to maintain its focus and availed export opportunities based on economic considerations. The Company is continuously exploring new international markets and has exported sample orders. During the year on standalone and consolidated basis the Company has exports worth Rs.3.52 Lakh from export of Cables.

b) Total Foreign Exchange Expenditure:

- Standalone and Consolidated basis:

Amount in Rs. Lakh

i. CIF value of imports 279.05

ENVIRONMENTAL REVIEW

The Company has a defined environmental policy which is being followed rigorously by one and all across the organization. There were no environmental issues at the CMI plant and the statutory compliance was in line with Governmental requirements.

The Pollution Control parameters as defined by the State Pollution Control Board were totally adhered to and effluent discharge levels were well within the prescribed limits. Air pollution has been tested and was in line with the requirement. Noise pollution level was contained by fixing all the generators in sound proof acoustic enclosures.

INDUSTRIAL RELATIONS

The Company has taken various steps to improve productivity across organization. Industrial relations remained harmonious at the manufacturing unit of CMI.

ACKNOWLEDGEMENTS

Your Directors place on record their gratitude to the Central Government, State Governments and Company''s Bankers for the assistance, co-operation and encouragement they extended to the Company. Your Directors also wish to place on record their sincere thanks and appreciation for the continuing support and unstinting efforts of Investors, Vendors, Dealers, Registrar and Transfer Agent, Financial Institutions, Business Associates, Media and Employees at all levels in ensuring an excellent all around operational performance.

By Order of the Board

CMI Limited

Amit Jain

Date: 31.10.2018 Chairman cum Managing Director

Place: New Delhi DIN - 00041300

Registered Office:

Flat No. 501 - 503, 5th Floor, New Delhi House,

27 Barakhamba Road, New Delhi -110001

Email Id: info@cmilimited.in

Source : Dion Global Solutions Limited
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