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Shivam Autotech Ltd.

BSE: 532776 | NSE: SHIVAMAUTO |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE637H01024 | SECTOR: Auto Ancillaries

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BSE Live

Feb 26, 16:00
17.95 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
5,387
10-Day
5,619
30-Day
6,595
6,536
  • Prev. Close

    17.95

  • Open Price

    17.55

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Feb 27, 09:38
17.55 -0.25 (-1.40%)
Volume
AVERAGE VOLUME
5-Day
57,272
10-Day
65,745
30-Day
81,738
1,334
  • Prev. Close

    17.80

  • Open Price

    17.80

  • Bid Price (Qty.)

    17.55 (2221)

  • Offer Price (Qty.)

    17.65 (830)

Annual Report

For Year :
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Director’s Report

The Directors are pleased to present the Annual Report and the Audited Accounts for the financial year ended March 31, 2008. FINANCIAL RESULTS The highlights of the financial performance of the Company are as under: (Rs. In Lacs) Particulars 2007-08 2006-07 Sales & Other Income 14472.50 15172.05 Profit before Depreciation and Interest 3276.73 3777.49 Depreciation 1176.51 1039.93 Interest 292.22 331.69 Profit before Taxation 1768.53 2445.34 Provision for Taxation (Deferred & Current) 622.38 849.07 Profit after Taxation 1146.15 1596.27 Profit available for appropriations 1146.15 1596.27 Appropriations Amount transferred to General Reserve 300 300 Proposed Dividend on Equity Shares 150 250 Tax on Dividend 25.49 42.49 Profit after Appropriations 670.66 1003.78 PERFORMANCE During the year, the Sales of the Company were Rs. 14438.45 Lac. Operating Profit (PBDIT) of the company for the year was Rs. 3276.73 Lac. The Profit before Tax (PBT) was Rs. 1768.53 Lac and Profit after Tax (PAT) was Rs. 1146.15 Lac. Considering the pressure on commodities prices, which remained all through the year and impacted the input costs considerably, the performance achieved by the company during the year can be regarded as satisfactory. The Year 2007-08 was sluggish for the Automobile Industry in India in general and the Motorcycles Industry in particular. According to the figures released by the Society of Indian Automobile Manufacturers (SIAM) motorcycles sales in India during 2007-08 were down by 11.90 percent at 5.77 million units, against 6.55 million units in the previous year. High interest costs & squeeze on the financing of motorcycles by banks/NBFCs across the country were major contributory factors to the decline of sales in motorcycles during the year 2007-08. To add to the woes, last years trend of hardening of the commodities and intermediate goods continued this year as well and almost entire chunk of the increased processing costs were absorbed in the cost of production resulting in severe squeeze on the Gross Margins of almost all automotive sector companies across the sectors/segments. DIVIDEND The Directors recommend a Dividend of Rs. 1.5 per equity share for the year (previous year Rs. 2.50 per share). If approved by the shareholders in the forthcoming Annual General Meeting, the Dividend will absorb Rs. 1.50 Crores. The Dividend Distribution Tax borne by the Company will amount to Rs. 25.49 Lacs. BUSINESS PROSPECTS Indian economys juggernaut continued to roll in year 2007-08 like it has been doing for the last few years. Its overall GDP growth of 9.1%, which is still one of the best amongst major economies of the world. Albeit some areas of concern have emerged towards the end of the fiscal 2007-08 with rising inflation and food / oil prices. Amidst this challenging environment on both marketing front and rising input prices, your company has taken a strong initiative on expanding the base of the customer and cost containment measures. This will help the company to steer its growth in the coming year. CORPORATE GOVERNANCE Pursuant to Clause 49 of the Listing Agreement with the stock exchanges, a Management Discussion and Analysis Report and a Report on Corporate Governance are given as Annexures A and B respectively to this Report. All the board members and senior managerial personnel have affirmed compliance with the code of conduct for the F.Y. 2007-08. A certificate from the Statutory Auditors of the Company regarding the compliance of the conditions of Corporate Governance by the Company stipulated under Clause 49 of the Listing Agreement is also attached to this Report. DIRECTORS RESPONSIBILITY STATEMENT In accordance with the requirements of Section 217(2AA) of the Companies Act, 1956, the Board of Directors confirm that : (i) in the preparation of the annual accounts, the applicable accounting standards have been followed and no material departures have been made from the same; (ii) the accounting policies which have been selected have been applied consistently and judgments and estimates made 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, 2008 and of the profits of the Company for the year ended on that date; (iii) proper and sufficient care has been taken 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; and (iv) the annual accounts have been prepared on a going concern basis. FIXED DEPOSITS During the year, the Company has not accepted any deposit under Section 58A and Section 58AA of the Companies Act, 1956 read with Companies (Acceptance of Deposits) Rules, 1975. FINANCE The company has met with its working capital requirement largely from internal resources during the year. In order to part-finance its new Haridwar Plant in Uttarakhand, the company has tied up 20 million dollar ECB loans from HSBC & ICICI Bank during the year. These ECB loans have fully been hedged for both principal and interest cost and thereby the company has insulated itself from the fluctuation in the foreign currency market. HARIDWAR PLANT During the year the company has commenced the work to set up a greenfield manufacturing facility at Haridwar, Uttarakhand to manufacture cold & warm forging components, Gears & Shafts for the Automobile and other Industries. This new plants construction is on course and is slated go on stream in the second half of current year 2008-09. It will have state of the art technology and machinery, equipped to cater to the in most exacting requirement for the cold/warm forging components for automobile and other industries. Haridwar plant will also have improved logistics on account of being in proximity of its most important customer viz. Hero Honda Motors Ltd., which has just commenced its new Two-Wheeler plant at Haridwar. On account of special fiscal incentives announced by the Central Government for new industrial units in Uttarakhand, the Haridwar unit of the company will be able to avail various fiscal / concessional benefits under the excise, income-tax and sales tax, etc. DIRECTORS Pursuant to Section 256 of the Companies Act, 1956 and Articles of Association of the Company, Mr. Vijay Munjal and Mr. Bhagwan Dass Narang retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. AUDITORS Shareholders are requested to re-appoint M/s S. S. Kothari Mehta & Co., Chartered Accountants as Auditors of the Company and authorize the Audit Committee to fix their remuneration. They have furnished to the Company requisite Certificate under Section 224(1 B) of the Companies Act, 1956 and are therefore eligible for re-appointment as Auditors of the Company. AUDITORS REPORT The observations of Auditors in their Report, read with the relevant notes to the accounts are self-explanatory and therefore do not require any further explanation. COST AUDIT The Audit of the Cost Accounts of the Company for the F.Y. 2007- 08, has been conducted by the Cost Auditor and the Cost Audit Report will be submitted to the Ministry of Corporate Affairs, Government of India. The Directors have appointed M/s Gurdeep Singh & Associates, Cost Accountants, as Cost Auditors to audit the accounts relating to Engineering Industries for the year ending 31st March 2009. ENVIRONMENT Your Company is committed in maintaining the highest standards of environment compliances and therefore has adopted a systematic approach towards environment management. Companys all operational decisions continue to be taken keeping in mind their sensitivity to the surrounding environment, which help in maintaining and improving the overall environment in and around Companys plant. Your company takes pleasure to inform that during the year it has become a constituent of a very important and responsible initiative of Hero Honda Motors Limited toward the commitment to environment, viz. GREEN SUPPLY-CHAIN MANAGEMENT PROGRAMME. Your Company has complied with the applicable environmental regulations; its effluents & wastes are treated properly and monitored constantly before safely disposing them off in conformity with the environmental regulations prescribed by statutory authorities. During the year, Company has received necessary environmental consents/approvals for air, water and hazardous waste discharge from the Pollution Control Authority. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO Information required under Section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is given as per Annexure - D and forms an integral part of this Report. PARTICULARS OF EMPLOYEES As required under the provisions of section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, as amended, the names and other particulars of employees are set out in the Annexure - C included in this report. INDUSTRIAL RELATIONS Industrial relations have remained cordial throughout the year in the Company. HEALTH AND SAFETY Safety is a prime responsibility and concern. Your Company is committed for safety and health of its employees and other persons who may be affected by its operations. Its companys belief that safe working practice leads to motivated workforce and higher productivity and to that end, all possible safety measures are put in place to eliminate accidents at its factory, and improve upon safety record. Safe working culture across the company is ensured by: - Integrating safety and health in all activities. - Ensuring compliance with all applicable legislative requirements. - Encouraging employees to ensure safety at their workplaces. - Continuous improvements in safety performance through precautions besides participation & training of employees. ACKNOWLEDGMENTS Company would like to thank its clients, vendors, investors and bankers for their continued support during the year. In particular to its principal customer Hero Honda Motors Limited, the company is thankful for continuing to repose faith as an direct online supplier and including it as an integral part of the supply chain management. We would like to place on record our appreciation of the contribution made by employees at all levels. Their diligent hard work, cooperation and support is a backbone of all endeavors of the company. We also thank the Government of India, and Customs and Excise Departments, the Income Tax Department, the Industrial & Labour Department, Government of Haryana and other government agencies for the support company has been receiving over the years, and is looking forward to their continued support/guidance in times to come. For and on behalf of the Board SUNIL KANT MUNJAL CHAIRMAN Place : New Delhi Date : July 25, 2008

Director’s Report