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EQUITY - MARKET SCREENER

Machino Plastics Ltd
Industry :  Plastics Products
BSE Code
ISIN Demat
Book Value()
523248
INE082B01018
64.0650153
NSE Symbol
P/E(TTM)
Mar.Cap( Cr.)
N.A
0
66.25
EPS(TTM)
Face Value()
Div & Yield %
0
10
0
 

As on: May 25, 2022 12:25 PM

Dear Members,

Your Directors have pleasure in presenting the 36th Annual Report and Audited Financial Statements for the Financial Year ended 31st March, 2021.

FINANCIAL SUMMARY AND HIGHLIGHTS

(Rs. In Lacs)

Financial Performance 2019-20 2020-21
Income from operation (net of Taxes) 24200.91 21,024.89
Other Income 51.48 12.68
Profit(before financial charges, depreciation and tax) 1880.10 1657.15
Financial Charges 767.36 717.56
Cash Profit 1112.74 939.59
Depreciation & Impairment expenses 1964.21 1515.85
Profit/loss before tax (851.47) (576.26)
Provision for tax(after adjustment of deferred tax) (399.64) (165.77)
Profit/loss after tax (451.83) (410.49
Other Comprehensive Income/(loss) 18.17 0.98
Total Comprehensive Income/ loss for the period (433.66) (409.51)

Net turnover of your Company has decreased by 13% from Rs. 24200.19 lacs in 2019-20 to Rs. 21024.89 lacs in current year. Your Company has increased a pre-tax loss of Rs. 576.26 lacs as compared to loss of Rs. 851.47 lacs in the last year. Company has earned cash profit of Rs. 939.59 lacs as compared to Rs.1112.74 lacs in 2019-20.

Your Company's annual performance was impacted by continued lockdowns due to the pandemic in the month of April 2020 and partially in May 2020. Your company annual net sales show a decline as compared to previous year. In March 2020, the World Health Organization declared COVID 19 to be a pandemic. As a result, the operations of the Company were impacted in Financial Year 2020-21 with series of lockdowns announced by the government. The situation gradually normalised from Quarter 3rd of Financial Year 2020-21 onward. However the Second wave of Covid again disrupted operations in certain part of the country in April 2021.

RESULTS OF OPERATIONS

OPERATIONS:

During the year under review, the following are the highlights of your Company:

• Achieved a turnover during 2020-21 of Rs. 21024.89 lacs as compared to Rs. 24200.91 lacs during 2019-20 reflecting a decrease of 13%.

• Pretax loss during 2020-21 is Rs. 576.26 lacs against pretax loss during the year 2019-20 of Rs. 851.47 lacs.

• Post tax loss during 2020-21 is Rs. 410.49 lacs against post tax loss during the year 2019-20 of Rs. 451.83 lacs.

• Total Comprehensive Loss during 2020-21 is Rs. 409.51 lacs as compared to loss Rs. 433.66 lacs during previous financial year 2019-20.

• Cash Profit during 2020-21 is Rs.939.59 lacs against cash profit during the year 2019-20 of Rs.1112.73 lacs.

PERFORMANCE OF THE COMPANY

Plastic is projected to be largest growing product type for injection moulding market between 2020 and 2025. Our company is expected to see stronger growth in 2021-22, after recovering from the devastating effects of the COVID 19 pandemic. Growth and adoption of light weight vehicles and electric vehicles are expected to offer various lucrative opportunities for the growth of our company. In the first few months of this financial year, overall demand slumped due to mandatory lockdown, as such adversely impacting your company's production and capacity utilization; Performance improved in 3rd and 4th Quarter.

The world and your company, people associates with the company, faced unprecedented challanges due to pandemic. Not the growth but the survival itself become the goal. Your company survived to pursue the goal of growth for the future.

Despite the pandemic lockdown and moderate operating performance, your company has a strong track record of repayment of dues and taxes within time period.

INTERNAL FINANCIAL CONTROL

Your company has in place adequate internal financial controls in accordance to the size of the company and with reference to financial statement. The internal financial controls have been regularly reviewed by the auditors of your company and no reportable material weakness in the design or operation was observed.

EXTRACT OF ANNUAL RETURN

The detail forming part of the extract of the Annual Return in Form No MGT - 9 in accordance with the provisions of Section 92(3) of the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014, has been disclosed on the website of company at https://machino.com/mgt-9.

NUMBER OF BOARD MEETINGS

The details of the number of Board and Audit Committee meetings of your Company are set out in the Corporate Governance Report which forms part of this Report. The intervening gap between the meetings was within the period prescribed under the Companies Act, 2013.

DIRECTOR'S RESPONSIBILITY STATEMENT

Pursuant to Section 134 sub section (5) of the Companies Act, 2013 the directors of your company state-

• That in preparation of the annual accounts for the financial year ended 31st March, 2021, the applicable accounting standards have been followed and there are no material departures from the same.

• That the directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the company at the end of the financial year as at 31st March, 2021 and of the profit of the Company for the year ended 31st March, 2021.

• That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of Companies Act, 2013 for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities.

• That the annual accounts have been prepared on a going concern basis.

• That proper internal financial controls laid down by the directors to be followed by the Company and that such internal financial controls are adequate and is operating effectively; and

• That proper system to ensure compliance with the provisions of all applicable laws is adequate and is operating effectively

DECLARATION BY INDEPENDENT DIRECTOR

Your Company has received declarations from all the Independent Directors that they meet the criteria of independence as laid down under section 149(6) of the Companies Act, 2013 read with Schedule and Rules issued there-under, and also in accordance to Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015.

REMUNERATION POLICY

Your company has adopted the remuneration policy in accordance with Section 178 read with rules made there under for director's appointment and remuneration including the criteria for determining qualifications, positive attributes, independence of a director, etc. in the meeting of Board of Directors of the Company held on 9th February, 2015 in line with the recommendation of Nomination and Remuneration Committee; whose meeting also held on the same date. The remuneration policy of your Company is annexed in Annexure-I. The policy has been disclosed on the website of the company.

AUDIT AND AUDITOR'S REPORT:

STATUTORY AUDITOR:

M/s. KMGS & Associates, Chartered Accountants, were appointed as Statutory Auditors of the Company to hold office till the conclusion of ensuing Annual General Meeting.

STATUTORY AUDITOR'S REPORT

There are no such observations in the statutory audit report which needs to be explained by your company. The observation of the auditors is self- explanatory and/or is suitably explained in the notes to the accounts.

SECRETARIAL AUDITOR:

M/s A.K. & Associates, Practicing Company Secretary, were appointed as Secretarial Auditor for the financial year 2020-21 for secretarial audit of your company.

SECRETARIAL AUDIT REPORT

There are no such observations in the secretarial audit report which needs to be explained by your Company. The report of secretarial auditor is annexed to this report as Annexure VI.

SECRETARIAL COMPLIANCE REPORT

There are no such observations in the secretarial compliance report which needs to be explained by your Company. The report of secretarial auditor is annexed to this report as Annexure VII.

PARTICULARS OF LOAN, GUARANTEES OR INVESTMENT BY THE COMPANY

Your Company has not given any loan, guarantee or made any investment in any other body corporate as per the provision of section 186 of the Companies Act, 2013, except as disclosed in the attached accounts.

RELATED PARTIES TRANSACTIONS

All related party transactions that were entered into during the financial year 2020-21 were in the ordinary course of business and on an arm's length basis or with required approvals. Your company has also adopted a policy on materiality of related parties transaction and also dealing with related parties' transaction as approved by the Board. The policy has been disclosed on the website of your company at www.machino.com

The details of related parties transaction whether requiring approvals or otherwise, as per the provision of Section 188 of the Companies Act, 2013, Form AOC-2 is annexed in Annexure-II.

STATE OF COMPANY'S AFFAIR

Your company is a joint venture Company of Maruti Suzuki India Limited, Suzuki Motor Corporation and Jindal's. Your company was incorporated in 1986. Your company is a going concern. The shares of your company are listed on Bombay Stock Exchange Limited. Your company is engaged in the production of plastics moulded automotive components. Your company has total 4 plants/warehouses out of which one operative plant is located in Gurgaon, one operative plant and a warehouse are located in Manesar while the plant located in Pithampur is non- operative and is yet to commence production.

During the year under review, your company has not made any default in repayment of any of its term loans, have met generally all its obligation in time including its tax liabilities.

DETAILS OF SIGNIFICANT AND MATERIAL ORDER

No significant or material orders have been passed by any regulators or court or tribunals impacting the going concern status and future operations of your company.

MATERIAL CHANGES AND COMMITMENTS

No significant changes and commitments affecting the financial position of your company for the financial year ending on 31st March, 2021 till the date of this report.

CONSERVATION OF ENERGY

Continuous overhauling of equipment's and awareness amongst employees has helped to avoid wastage of energy. Company has installed solar power plant of capacity 1350 KW at its Gurugram and Manesar Plant.

Series of steps have been taken to identify areas of excess consumption of power and checks have been strengthened at these points and various alternative sources of energies are utilized.

Data regarding energy consumed is given hereunder:

Power & Fuel Consumption 2019-20 2020-21
1. Electricity
(a) Purchase units/ co-generated 1,53,99,152 1,35,97,211
Total Cost (Rs. In lacs) 1,251.38 1,063.22
Rate per units 8.13 7.82
(b) Own Generation - D.G. Set
Units generated 2,51,668 1,00,442
Fuel Cost (Rs. In Lacs) 48.39 17.10
Fuel cost per unit 19.23 17.02
2. Coal NIL NIL
3. Furnace Oil NIL NIL
4. Other / Internal generation/ Solar power 12,19,689 15,07,177

TECHNOLOGY ABSORPTION

A statement giving details of technology absorption in accordance with the above Rules is annexed hereto as Annexure IV and forms part of the Report.

FOREIGN EXCHANGE EARNING & OUTGO

Rs. In Lacs
Total foreign exchange earning 76.87
Total foreign exchange outgo 168.76

RISK MANAGEMENT POLICY

Your Company recognizes that risk is an integral part of business and is committed to managing the risks in a proactive and efficient manner. Your company already has "Risk Management Policy" in writing which is also uploaded on the website of the company. Your company manages monitors and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives.

Regulation 21 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is not applicable on our company. Therefore, the company has abolished Risk Management Committee from board committees in its board meeting held on 29th April, 2019.

The company has combined Risk Management Committee with the audit committee in its meeting held on 25th June, 2020.

ANNUAL EVALUATION OF PERFORMANCE

The performance evaluation of all:

• independent directors were made by Board (excluding the director whose performance is being evaluated),

• non independent directors were made by the independent directors in its meeting

• the board committees and of the board as whole was made by Nomination and Remuneration Committee

Your company has also adopted a policy for evaluation of performance of the board and individual director in the meeting of the board of directors in line with the recommendation of Nomination and Remuneration Committee. The policy of annual evaluation is annexed in Annexure -III.

The policy has also been disclosed on the website of the company.

VIGIL MECHANISM

Your Company is committed to highest standards of ethical, moral and legal business conduct. Accordingly, your Company has established the Whistle Blower Policy which is in compliance with the provisions of Section 177(10) of Companies Act, 2013 and Regulation 22 of SEBI (Listing Obligations & Disclosure Requirements), Regulations, 2015 for directors and employees of the Company to report genuine concerns or grievances. The Vigil Mechanism provides the safeguard against the victimization of person who uses such mechanism.

During the financial year 2020-21, all the directors and employees had full access to approach the Vigil Mechanism Officer. No complaint was received during the year 2020-21 of any sort from any directors and employee of your company.

The detail of establishment of such mechanism is also disclosed on the website of the Company at https://machino.com/wp-content/uploads/2021/07/Vigil-machanism-policv.pdf

DIRECTORS

Appointments:

Mrs. Anupam Gupta, Independent Lady Director was appointed as an Additional Director (Non-Executive Independent Category) in the board meeting held on 12th November, 2020 for a further term of five years, not liable to retire by rotation and subsequently she is proposed to be appointed as an Independent Lady Director by the shareholders in the ensuing Annual General Meeting of the company.

Mr. Shigetoshi Torii has been appointed as a Director in the board meeting held on 22.06.2021, subject to the approval of shareholders in ensuing Annual General Meeting.

RESIGNATION

In accordance with the provisions of Section 168(1) of Companies Act, 2013, Mr. Kazunari Yamaguchi, the nominee director of your company has resigned with effect from 22nd June, 2021

AUDIT COMMITTEE

The details of the Audit Committee including its composition and terms of reference mentioned in the Corporate Governance Report forms part of Director's Report.

FAMILIRISATION PROGRAMME FOR THE INDEPENDENT DIRECTOR

Your Company has organized a familiarization programme for the independent directors as per the requirement of the Companies Act, 2013 along with the requirement of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The detail of such familiarization programme is also uploaded on the website of the company at www.machino.com. LISTING

The Equity Shares of the Company are listed on Bombay Stock Exchange. The company has paid listing fees to the Stock Exchange for the financial year 2021-22.

CORPORATE GOVERNANCE

Your Company always places major thrust on managing its affairs with diligence, transparency, responsibility and accountability thereby upholding the important dictum that an organization's corporate governance philosophy is directly linked to high performance.

Pursuant to Regulation 27(2) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the company regularly submits the corporate governance report to the Stock Exchanges within the prescribed time line. Therefore, Reports on Corporate Governance has been included in this annual report as a separate section (forming a part of Director's Report) along with the Auditor's Certificate.

DEPOSITS

Your Company has not accepted any deposits under Section 73 of the Companies Act, 2013 & rules made there under.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

As required by Regulation 34(2) (e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a detailed Management Discussion and Analysis Report are presented in a separate section forming part of the annual report.

DETAILS OF SUBSIDIARIES, JOINT VENTURE OR ASSOCIATE COMPANIES

None of the company has become or ceased to become the subsidiary, joint venture or associate of your Company during the financial year 2020-21.

PARTICULAR OF EMPLOYEES AND RELATED DISCLOSURES

Details of employee of the Company as specified under Section 197 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are annexed hereto as Annexure-V and forms part of the report.

TRANSFER OF SHARES TO INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY

Your Company has not declared any dividend during Financial year 2012-13 and 2013-14.

ENVIRONMENT

The Company is not involved in any type of activity hazardous to environment and does not discharge any trade effluents (solid, liquid or gaseous) causing pollutions. As an environment conscious responsible corporate citizen, your Company has implemented GSCM (Green Supply Chain Management) standards and is ISO14001 certified holder. The Company has also achieved ISO 18001-OHSAS certification for occupational health and safety.

CORPORATE SOCIAL RESPONSIBILITY

The provision of section 135(1) of Companies Act 2013 i.e. Corporate Social Responsibility is not applicable on your company. Therefore your company has not constituted CSR committee for this.

ACKNOWLEDGEMENTS

Your Directors wish to place on record their appreciation for the valuable co-operation and assistance extended by Maruti Suzuki India Limited., Suzuki Motors Corporation, Japan, Government of India, Government of Haryana and the Company's bankers for their continued support and guidance. The Directors also commend the continuing commitment and dedication of the employees at all levels and are thankful to the shareholders for their continued patronage, trust and confidence in the Company.

For and on Behalf of the Board
Machino Plastics Limited
Sd/-
Aditya Jindal
Date : 22nd June, 2021 Chairman cum Managing Director
Place : Gurugram DIN:01717507