As on: Oct 07, 2024 07:02 PM
TO THE MEMBERS
Your Directors have pleasure in presenting the Twelfth Annual Report together with the Audited Accounts for the year ended 31st March 2022.
FINANCIAL RESULTS:
(Rs. in Lacs.)
INVESTMENT IN NEW RESOURCES / CAPITAL EXPEDITURE:
The company continued to invest in select new resources and capital expenditure in order to serve the increased requirements from our existing and new customers.
CUSTOMER BASE / DOMESTIC MARKETS:
The Company achieved a turnover of Rs. 91.69 Crores during the current year, as against Rs. 60.02 Crores during the previous year. Total revenue upgraded by 34.54% to Rs. 9169.23 lacs. Profit before tax (PBT) increased to Rs. 1270.36 lacs. Profit after tax (PAT) increased to Rs. 934.93 lacs.
EXPORTS SALES:
Direct Exports Sales in FY 2021-22 Rs. 92.22 Lacs as compared to the previous year 47.26 Lacs.
STATUTORY AUDITORS:
Appointment of M/S JAYANT JOSHI & CO., Chartered Accountants, Statutory Auditor of the Company was made for for five years, subject to ratification for one year in each of the four succeeding Annual General Meetings. It is proposed to ratify their appointment for F Y 2022-23 in the AGM. They have indicated their willingness to continue as the Statutory Auditors of the Company. Their remuneration will have to be confirmed and approved in the ensuing Annual General Meeting.
The Company has received letter from M/S JAYANT JOSHI & CO., Chartered Accountants, to the effect that their reappointment, if made, would be within the prescribed limits under Section141 (3)(g) of the Companies Act, 2013 and that they are not disqualified for re-appointment.
EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR DVERSE REMARKS OR DISCLAIMERS MADE BY THE AUDITORS IN THEIR REPORTS:
Further, the report of the Statutory Auditors along with notes to Schedules is enclosed to this report. The observations made in the Auditors' Report are self-explanatory and therefore do not call for any further comments.
DIVIDEND:
The board has decided not to recommend any dividend, so that money can be reinvested into the business to fund growth.
BUSINESS REVIEW:
Globally fears of recession and higher interest rates seem to be a big worrying factor, however the Indian economy still seems to be resilient which is very evidently reflecting in SMTPL's number's as well. Across the industry the business sentiment looks positive inspite of the fact that global worries could hit our shore. SMTPL's ingress in the renewable energy segment seems to be working positively as couple of new customers and existing customers are looking at increasing their business portfolio with us. SMTPL will soon be awarded Aviation safety standard AS9100 certification which will help in targeting customers in aviation industry, which seems to be coming of its own on the global backdrop due to corona, SMTPL will onboard atleast one new customer on aviation side. On medical side SMTPL will soon be awarded NABL certification for its in-house testing lab and CDSCO approval for its HF range of x-products. SMTPL is also renting out a new factory area of 60K sq.feet for expanding its operations to cater to its customers in locomotive business. Overall if things are falling as per plan SMTPL will cross the INR 100Cr, business target set last year.
DETAILS OF BOARD MEETINGS:
During the year, Twenty Four number of Board meetings were held, details of which are given below:
DETAILS OF CSR COMMITTEE (BOARD) MEETINGS:
During the year, Two number of Board meetings were held, details of which are given below:
EXTRACT OF ANNUAL RETURN:
Pursuant to section 92(3) of the Companies Act, 2013 (‘the Act') and rule 12(1) of the Companies (Management and Administration) Rules, 2014, extract of annual return is Annexed as Annexure1.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES:
The Company does not have any Subsidiary, Joint venture or Associate Company.
DEPOSITS:
The Company has not accepted any deposits from public under the provisions of Section 58A of the Companies Act, 1956. The Company has accepted inter corporate deposits and deposits from its members and loans from Directors / Relatives.
DETAILS OF DIRECTORS REMUNERATION:
Details of Directors Remuneration are Annexed as Annexure 1 (VI)(A).
DECLARATION OF INDEPENDENT DIRECTORS:
The provisions of Section 149 pertaining to the appointment of Independent Directors do not apply to the Company.
DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND PROVIDING VIGIL MECHANISM:
The provisions of Section 177 of the Companies Act, 2013 read with Rule 6 and 7 of the Companies (Meetings of the Board and its Powers) Rules, 2013 is not applicable to the Company.
SHARES:
a) Buy Back of Securities
The Company has not bought back any shares during the year under review.
b) Sweat Equity
The Company has not issued any Sweat Equity shares during the year under review.
c) Bonus Shares
No Bonus Shares were issued during the year under review.
d) Share issue to Employees
The Company has not issued any shares to its employees during the year.
TRANSFER TO RESERVES IN TERMS OF SECTION 134 (3) (J) OF THE COMPANIES ACT, 2013:
No amount is proposed to be transferred to General Reserve.
REPORTING OF FRAUD BY STATUTORY AUDITORS:
Further there was no fraud in the Company; hence no reporting was made by statutory auditors of the Company under sub-section (12) of section 143 of Companies Act, 2013.
COST RECORD AND/OR COST AUDIT:
Your company does not falls within the provisions of Section 148 of Company's Act, 2013 read with the Companies (Cost records & Audit) Rules, 2014, therefore no such records required to be maintained.
CHANGE IN NATURE OF BUSINESS, IF ANY:
There is no change in the nature of business of the Company.
DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP):
There was change in the composition of Board of Directors of the Company. Due to death of Director Vijay Laxman Latkar on 04 August 2021, effective that date, Vijay Latkar ceased to be Director. The following two persons are members of the Board : Mr Aniket Vijay Latkar and Mrs Chitra Vijay Latkar
DIRECTORS, RESPONSIBILITY STATEMENT:
Pursuant to the requirement clause (C) of sub section (3) of Section 134 of the Companies Act 2013, your Directors confirm that:
a. In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; 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 period; c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities; d. The Directors had prepared the annual accounts on a going concern basis; and e. 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.
CONSERVATION OF ENERGY, AND FOREIGN EXCHANGE EARNINGS & OUTGO:
The Company has been making efforts to conserve and optimize energy wherever practicable by economizing on the use of power and electricity. During the year two Roof Top Solar Power Generation Plants have been installed at two manufacturing facilities of the Company at Unit 1 (EL-23) and Unit 2 (T-174) of capacity 200KwP and 100KwP respectively involving capital expenditure of Rs. 110.19 Lacs and were made operational during the year.
During the year under review, Foreign Exchange Earnings and Outgo amounted to Rs. 92.22 lacs (previous year Rs. 47.86 lacs) and Rs.830.28 lacs (previous year 600.28 lacs) respectively.
RELATED PARTY TRANSACTIONS:
The Company has not entered into any Related Parties Transactions as defined under Section 188 of the Companies Act, 2013 with related parties as defined under Section 2 (76) of the said Act, except for the Employment of Directors and Director's Relative. Details of Payments to Directors and a Relative of Director are provided in Annexure 2.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013:
There were no loans, guarantees or investments made by the Company under Section 186 of the Companies Act, 2013 during the year under review and hence the said provision is not applicable.
RISK MANAGEMENT POLICY:
In terms of the requirement of Act, the Company has developed and implemented the Risk Management Policy and the executive directors of the Company reviews the same periodically. There is no specific risk which has been identified as threatening to the existence of the Company.
STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE COMPANY:
Periodic assessments to identify the risk areas are carried out and management is briefed on the risks in advance to enable the company to control risk through a properly defined plan. The risks are classified as financial risks, operational risks and market risks. The risks are taken into account while preparing the annual business plan for the year. The Board is also periodically informed of the business risks and the actions taken to manage them. Till now the Company is not having any Risk which threatens the Company's existence. The Company has formulated a Risk Management Policy to deal, in case any such risks are identified in future.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS:
During the year under review, the significant and material orders were passed by the regulators or courts or tribunals: Annexure 3
INTERNAL FINANCIAL CONTROLS:
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence in the Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and timely preparation of reliable financial disclosures.
TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND:
Your Company did not have any funds lying unpaid or unclaimed for a period of seven years. Therefore, there were no funds which were required to be transferred to Investor Education and Protection Fund (IEPF).
ENVIRONMENT MANAGEMENT:
Your company is proud of its green engineering practices and environmentally sound technologies. Your company has taken various initiatives to minimize pollution through monitoring of emissions, appropriate effluent treatment, efficient process control, and the disposal of treated waste.
PARTICULARS OF EMPLOYEES:
The provisions of Section 197 of the Companies Act, 2013 relating to employees drawing remuneration beyond the monetary ceilings prescribed under Section 197 of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are not applicable to private companies.
CHANGES IN SHARE CAPITAL:
During the year under review, there was no change in the authorized and paid-up share capital of the Company.
SAFETY MANAGEMENT:
The Company has embarked on various safety initiates and wishes to perpetuate a culture of safety and to minimize accidents. There are several awareness sessions and training organized to ensure safe manufacturing practices.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
As required by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 the Company has formulated and implemented a policy on prevention of the Sexual Harassment of Women at Workplace with a mechanism of lodging complaints. During the year under review, no complaints were reported to the Board.
CSR Activities
Report on CSR Activities is attached in Annexure 4 which forms part of this report.
STATUTORY PARTICULARS:
Particulars of employees as per Section 217 (2A) of the Companies Act ,1956 read with the Company's (Particulars of employees) Rules,1975, as amended, are given in Annexure ,which forms part of this report. Annexure 4
Information in accordance with 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 :
The Company has been making efforts to conserve and optimize energy wherever practicable by economizing on the use of power and electricity. During the year under review no technology was absorbed.
ACKNOWLEDGEMENT:
Your Directors place on record their appreciation for employees at all levels, who have contributed to the growth and performance of your Company.
Your Directors also thank the clients, vendors, bankers, shareholders and advisers of the Company for their continued support.
Your Directors also thank the Central and State Governments, and other statutory authorities for their continued support.