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The Hi-Tech Gears Ltd.

BSE: 522073 | NSE: HITECHGEAR |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE127B01011 | SECTOR: Auto Ancillaries

BSE Live

Jun 14, 11:24
226.65 -6.60 (-2.83%)
Volume
AVERAGE VOLUME
5-Day
3,437
10-Day
9,307
30-Day
7,440
3,085
  • Prev. Close

    233.25

  • Open Price

    227.70

  • Bid Price (Qty.)

    225.85 (52)

  • Offer Price (Qty.)

    227.30 (10)

NSE Live

Jun 14, 11:23
226.45 -4.65 (-2.01%)
Volume
AVERAGE VOLUME
5-Day
17,043
10-Day
65,356
30-Day
48,458
10,126
  • Prev. Close

    231.10

  • Open Price

    232.95

  • Bid Price (Qty.)

    225.95 (1)

  • Offer Price (Qty.)

    227.35 (26)

Annual Report

For Year :
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Director’s Report

With great pleasure your directors presents their 22nd Annual Report of your Company together with the audited statement of accounts for the financial year ended on 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 31,622.29 29,987.34 Other Income 381.61 186.85 Total Income 32,003.90 30,174.19 Profits before Depreciation, 3,862.89 3,331.89 Interest and Taxes (PBDIT) Depreciation 1,170.73 1,081.29 Profits before Interest and 2,692.16 2,250.60 Taxes ( PBIT) Financial Charges 1,157.87 905.92 Cash Profit (PBDT) 2,705.02 2,425.97 Profits before Taxes (PBT) 1,534.29 1,344.68 Provision for Taxes 553.63 511.60 Profit after tax (PAT) 980.66 833.08 Balance of profit brought 1,667.14 1,404.64 forward Dividend 281.52 234.60 Tax on dividend 47.84 35.98 Transfer to General Reserve 300.00 300.00 Balance Surplus in P & L Account 2,018.43 1,667.14 Earnings Per Share (EPS) 10.45 8.88 Operations The financial year 2007-2008 has ended on a challenging note. Your Company surpassed the previous year turnover and has achieved a turnover of Rs. 31,622.29 Lac (Previous year 29,987.34 Lac), recording an increase of 5.5%. The Net Profit (After tax) of the Company has increased from Rs. 833.08 to Rs. 980.66 Lac, recording an increase of 18% as compared to the previous year. The year under review was a tough year for the industry as a whole. Due to sharp increases in crude oil, steel prices and financial costs throughout the year, margins were under pressure because of high input costs. Exports During the year under review your Company has shown a substantial growth in the export of its components, recording a total export turnover of Rs. 6,128.26 Lac as compared to Rs. 5,798.41 Lac in the previous year, registering an increase of 5.69%. Dividend The directors recommend to the shareholders an enhanced dividend @ 30% (i.e. Rs.3.00/- per equity share) for the year 2007-2008. Previous year your Company paid dividend @ 25% (i.e. Rs.2.50/- per equity share). If the dividend on shares as, recommended by the Board of Directors, is approved by the shareholders in their 22nd Annual General Meeting, payment of such dividend will be made to those members whose names appear in the Register of Members as on September 22, 2008 and in respect of the shares held in electronic form, the dividend will be payable to the beneficial owners of the shares as on the closing hours of business on September 11, 2008, as per the details furnished by the depositories for this purpose. Electronic Clearing Services (ECS) As per the circular issued by Securities & Exchange Board of India (SEBI), the companies should mandatorily use the facility of Electronic Clearing Services (ECS), for distribution of dividends to its members. This facility provides to the members an option to receive dividend amount directly in their Bank accounts. For availing this facility, members holding shares in physical form may send their duly filled ECS mandate form to the Companys Registrar and Share Transfer Agent (RTA). Members holding shares in dematerialized form may send their ECS mandate to the concerned Depository Participants (DP) in the prescribed form. Those shareholders who have not yet opted for the ECS facility are once again requested to avail the benefits of ECS. Revaluation of Fixed Asset During the year the Company has revalued one of its lands situated in Gurgaon, Haryana from its cost price of Rs. 1,01,69,653 to Rs. 32,74,71,300 which has been calculated as per its current market price. Revaluation has been done by an Approved Valuar. The increase of Rs. 31, 73, 01, 647 has been credited to Revaluation Reserve. Postal Ballot During the financial year 2007-08, no Special Resolution was required to be passed through Postal Ballot. At the forthcoming Annual General Meeting, there is no item for approval through postal Ballot. Code for Prevention of Insider Trading Practices In compliance with the SEBI (Prohibition of Insider Trading) Regulations, 1992, your Company has adopted a Code of Conduct for Prevention of Insider Trading Practices for its Directors and designated employees. The code lays down guidelines, which include procedures to be followed, and disclosures to be made while dealing in the shares of the Company. Trading Window In accordance with the Code of Conduct for prevention of insider trading, the Company closes its trading window for designated employees and directors from time to time. As per policy, trading window closes for a period of 7 (seven) days, prior to the date of Board Meeting and opens after passing of 24 hours from the conclusion of Board Meeting in which the respective quarterly/half yearly/ yearly financial results are approved. The trading window is also closed during and after occurrence price sensitive event as per the Code of Conduct for prevention of insider trading Code of Conduct Your Company has adopted a Code of Conduct for its Board Members and Senior Management personnel. The code of conduct has also been posted on the official website of the Company. A copy of the Code of Conduct has been circulated to all the directors \ and senior Management. The Declaration by the Chairman & Managing Director of the Company regarding compliance with the Code of Conduct for Board Members and Senior Management is annexed with the Corporate Governance report. Secretarial Audit M/s Grover Ahuja & Associates, practicing Company Secretary carried out Secretarial Audit on quarterly basis to reconcile the total issued and listed share capital with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). The Board of Directors confirms that the total issued and paid up capital as on 31st March, 2008 is reconciled with the total number of shares in physical form and the total number of dematerialized shares held with NSDL and CDSL. The Secretarial audit report is being submitted every quarter to the Stock Exchanges and is also placed before the Board Meeting. Subsidiary Company The Company had no subsidiary during the financial year 2007-08. Listing of Shares With a view to provide easy liquidity in the shares of the Company, the equity shares of your Company are presently listed on the premier stock exchanges viz., the National Stock Exchange (NSE) and the Bombay Stock Exchange Limited (BSE) Mumbai. Pursuant to Clause 38 of the Listing Agreement, the annual listing fees for the year 2008-2009 has been paid within the prescribed time period. Dematerialisation of the equity shares 98.37% of the total equity shares of the Company are held in dematerialized form with the participants of National Securities Depository Limited (NSDL) and Central Depository Securities (India) Limited as on March 31, 2008. Keeping in view the benefits of dematerialization, your directors urge the shareholders holding shares in physical form to get their shares dematerialized. Directors Mr. Anuj Kapuria and Mr. Pranav Kapuria directors of the Company, retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re appointment. Your Board of Directors considers that it would be in the interest of the Company to continue to avail the services of the above directors due to their vast knowledge, experience and ability. A brief profile of the directors proposed to be re- appointed and the information pursuant to Clause 49 VI (A) of the Listing Agreement is being annexed to the Notice convening the 22nd Annual General Meeting. Directors Responsibility Statement In compliance of Section 217(2AA) of the Companies Act, 1956, as amended by the Companies (Amendment) Act, 2000, the Board of Directors of your Company confirm: 1 that the applicable accounting standards have been followed in the preparation of final accounts for the year ended March 31, 2008 and that there are no material departures. 2 that such accounting policies have been selected and applied consistently and such 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 profit of the Company for the year ended on that date. 3 that 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 preventing and detecting fraud and other irregularities, and 4 that the annual accounts for the year ended March 31, 2008 have been prepared on a going concern basis. Particulars of the Employees Information in accordance with the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended, is given in Annexure-I, to this report. The Conservation of Energy, Technology Absorption, Foreign Exchange earnings and outgo. Details of Energy Conservation, Technology , Absorption, Research & Development activities j undertaken by the Company and foreign exchange earnings and outgo of the Company and other information in accordance with the provisions of Section 217(1) (e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors), Rules, 1988, are given in Annexure-II, to this Report. Your Company continuously strives for Safety, Environment Management and conservation of resources like fuel, water, gas and power. Your company believes in vision of safety which envisages zero accident policy as the only acceptable stand ard of performance. Therefore, emphasis is being laid on employing sophisticated techniques which result in conservation of natural resources like energy, fuel etc. Corporate Governance Report on Corporate Governance is attached herewith in Annexure-III, and the certificate from the Statutory Auditors confirming the compliance of the provisions of Corporate Governance as stipulated in Clause 49 of the listing agreement with the stock exchanges is given in this report. Management Discussion & Analysis Report Management Discussion & Analysis Report is given separately, forming part of this report. Trade Relations The Board of Directors place on record their appreciation for the co-operation and valuable support extended by the customers, the suppliers and all other persons directly or indirectly associated with the Company. Your Company regards them as partners and shares with them vision of growth in the future. Public Deposits During the year under review your Company neither invited nor accepted any deposit within the meaning of Section 58-A of the Companies Act, 1956, and rules made there under. Personnel The Board of Directors place on record its appreciation for the untiring efforts made by the employees of the organisation at every level. The efforts to create a family like atmosphere continued through out the year. Like many years gone-by this year also witnessed increasd cohesion among all levels of employees, which is evident from the performance of the Company. Training and Development of employees provided further impetus and have been largely t\ responsible for the all round improved performance. Awards And Other Recognitions Your directors have pleasure and feel privileged in reporting that your Company has received ACMA award for excellence in export 2006-07, presented to your Company by Automotive Component Manufacturers Association of India. Auditors M/s Gupta Vigg & Company, Chartered Accountants, Statutory Auditors of the Company retire at the conclusion of the Annual General Meeting of the Company and being eligible, have offered themselves for re-appointment. The Company has received an eligibility certificate from the auditors under Section 224 (1B) of the Companies Act, 1956. The Board of Directors commends their re-appointed. Acknowledgement Your directors place on record their grateful appreciation for the assistance, cooperation and support provided to the Company by Vendors, Customers, Banks & Financial Institutions like Hero Honda Motors Limited, Honda Motorcycle and Scooter Ltd., Honda Siel Cars Ltd., Honda Siel Power Products Ltd., Tata Cummins Ltd., GETRAG Corporation, GETRAG All Wheel Drive, Robert Bosch, ICICI Bank Limited, Citi Bank, Standard Chartered Bank, State Bank of Bikaner and Jaipur, State Bank of India, Bank of Baroda, DBS Bank for their valued support, and hope to continue to receive the same in future. The Board of Directors also place on record their gratitude to the shareholders of the Company for their continued support to and confidence in the management of the Company. By Order of the Board For Hi - Tech Gears Limited Deep Kapuria Chairman & Managing Director Place : Gurgaon Dated : June 07, 2008

Director’s Report