Indian Indices
15,939.80 157.65
53,283.31 489.69
( 0.93%)
Bank Nifty
33,651.95 530.60
( 1.60%)
Nifty IT
29,576.45 -48.40
( -0.16%)
Global Indices
11,805.00 434.04
Dow Jones
32,196.66 466.36
Hang Seng
19,898.77 518.43
Nikkei 225
26,427.65 678.93
77.20 -0.03
80.24 -0.36
94.33 0.05
0.60 0.00


Precision Wires India Ltd
Industry :  Mining / Minerals / Metals
BSE Code
ISIN Demat
Book Value()
NSE Symbol
Mar.Cap( Cr.)
Face Value()
Div & Yield %

As on: May 16, 2022 10:16 AM


Your Directors have pleasure in presenting the Thirty Second (32nd) Directors' Report of your Company along with the financial statements for the financial year ended 31st March, 2021.

(Rupees in Lakhs)
2020-21 2019-20
Revenue from operations (including GST) 208901.26 184489.84
Less: GST 37041.52 31908.39
Revenue from operations (Net) 171859.74 152581.45
Operating Profit 7851.13 7269.10
Add: Other Income 429.09 411.62
Profit before Financial Charges, Depreciation & Taxes 8280.22 7680.72
Less: Financial Charges 1512.98 1903.15
Less: Depreciation 1612.59 1609.85
Profit before Taxes & Extra-ordinary Items 5154.65 4167.72
Add/Less: Extra-ordinary Items
Profit before Taxes 5154.65 4167.72
Less: Provision for Tax 1223.65 985.28
Profit after Tax 3931.00 3182.44
Add: Other Comprehensive Income (net of taxes) 87.09 50.89
Total Comprehensive Income for the period 4018.09 3131.55
Add: Balance brought forward from last Account 2187.31 2449.81
Balance available: (A) 6205.40 5581.36
Which the Board of Directors have appropriated as under:
(i) Transfer to General Reserve 2500.00 2000.00
(ii) Dividend:
a. Final Dividend @ 50% paid for 2018-19 578.18
b. First Interim Dividend @ 30% paid for F.Y.2019-20 346.91
c. Second Interim Dividend @ 20% paid for F.Y. 2019-20 231.27
d. First Interim Dividend @ 20% paid for F.Y. 2020-21 231.27
e. Second Interim Dividend@ 40% paid for F.Y. 2020-21 462.55
Total Interim Dividend paid for F.Y. 2020-21 693.82
All above dividend paid are on fully paid Equity Shares of Rs. 5/- each
The Board of Directors has recommended Final Dividend @ 40% i.e. Rs.2/- per share for the year under review, subject to approval by Members at the ensuing AGM.
(iii) Corporate Tax on Dividend - 237.69
(B) Sub Total of (i)+(ii)+(iii) above 3193.82 3394.05
Balance carried forwarded in Profit & Loss A/c (A-B) 3011.58 2187.31


Your Directors are pleased to recommend a Final Dividend of Rs.2/- per share (40%) per equity share of face value of Rs.5/- each for the year ended 31st March, 2021, subject to the approval of Members at the ensuing Annual General Meeting (AGM) of the Company.

The Two Interim Dividends at the rate of Re. 1.00 and Rs. 2.00 per equity share for the year was recommended at the Board Meetings held on 11th November, 2020 and 11th February, 2021 paid in December, 2020 and March, 2021 respectively.

In view of the changes made under the Income-tax Act, 1961, by the Finance Act, 2020, dividends paid or distributed by the Company shall be taxable in the hands of the Shareholders. The Company shall, accordingly, make the payment of the final dividend after deduction of tax at source.

The dividend recommended is in accordance with the Dividend Distribution Policy of the Company. The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") is available on the Company's website: http://precisionwires.com/news-and-announcement.

Transfer to Reserve: Rs. 2500.00 Lakhs Amount was transferred to General Reserve during the year.


In accordance with the applicable provisions of Companies Act, 2013 read with Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund ) Rules, 2016 ("IEPF Rules"), all unclaimed dividends are required to be transferred by the Company to the IEPF, after completion of seven (7) years. Further, according to IEPF Rules, the shares on which dividend has not been claimed by the shareholders for seven (7) consecutive years or more shall be transferred to the demat account of the IEPF Authority. The details relating to amount of dividend transferred to the IEPF and corresponding shares on which dividends were unclaimed for seven (7) consecutive years, are provided on the website of the Company http://precisionwires.com/

During the financial year 2020-21, the Company has transferred 8600 equity shares to Investor Education and Protection Fund (IEPF).


During the year under review, due to Covid-19 induced lockdown during April-June 2020 and sluggish recovery in July-Sept 2020, the first half of the year was very adversely impacted both in terms of production and sales. During the second half of the year, there was recovery in demand in almost all the market segments and therefore, despite the very low production, demand and sales in April-Sept 2020, the overall Sales/Production Quantity during FY 2020-21 was only marginally lower than FY 2019-20.

At the end of the year under review, once again there was a sharp spike in Covid-19 cases in India. During April in and May 2021, the situation worsened and there has been an unprecedented surge in Covid cases and large number of deaths all across the country resulting in lockdowns and business disruptions which has again impacted the market and demand very adversely.

During the year, international Copper Prices continuously went up. Volatility in LME/Domestic Copper Prices and in INR/USD Exchange Rate continued during the year.

However, as a matter of policy and safeguard, so as to avoid market risk, your Company generally enters into Back to Back Transactions for input Copper purchase against the Sales Order of Finished Goods.

Revenue from Operations, during the year, was higher as compared to previous year, due to increase in the price of primary input, Copper.

Exports of our products, despite competition and tariff discrimination is holding and is almost at the same level of last year.

During the second half of the year, there were also sharp increases in prices of Chemicals, Plastics, Polymers, Packaging Materials, Fuel, Transport, Consumables etc

The Company had to enhance, rationalize and realign its banking facilities to cope up with the sharp increase in the Copper Prices.

Tuticorin plant of M/s. Vedanta Limited, one of our major Copper Rod suppliers, continued to be shut during the year. Imports of copper wire from FTA areas also declined very sharply during the year due to imposition of Anti Subsidy Duty. However, your company made sufficient alternate arrangements for our main Raw Material i.e. Copper from Hindalco, other domestic producers and some imports. In future, if the demand of Copper increases, the main domestic Primary Copper Producers will have to increase their capacities suitably to cater to the demand.

Unit 5 expansion project commissioned during previous year. Operated well except Covid-19 interruptions.

All figures mentioned are in below in Rs. lakhs.

The Net Revenue from Operations is Rs.171860 (152581). PBDIT is 8280 (7681). Finance Cost is Rs.1513 (1903). Depreciation is 1613 (1610) PBT is 5155 (4168). Provision for Income Tax is 1285 (1121). PAT is 3931 (3182). Other Equity (Excluding revaluation) went up to 30449 (27124). Our Current Ratio 1.47 (1.77) and Debt Equity Ratio 0.07 (0.11).

Despite Covid-19 related adverse environment, your Company has put in a steady and good performance, declared dividend and discharged all its financial / other commitments and obligations strictly on time without any delay or moratorium.

Covid-19 pandemic induced lockdown once again during the first quarter of current fiscal impacted the Country. Situation in June 2021 is gradually improving. The overall economic situation due to this is expected to remain challenging and our production, sales and profitability during in 2021-22 could be adversely impacted. Despite Lockdown, your Company has so far paid Vtfeiges, Salaries, Bonus and PF dues regularly on time. At our Silvassa Plant, with the assistance and guidance of the DNH Administration, the Company plans to get the first dose of vaccination for all Workmen & Staff.


As provided under Section 92(3) and 134(3)(a) of the Act, read with Rule 12 of Chapter VII Rules of the Companies (Management and Administration) Amendment Rules, 2020, Annual Return in Form MGT-7 for FY 2020-21 is uploaded on the website of the Company and can be accessed at www.precisionwires.com.

The extract of Annual Return of the Company can also be accessed on the website of the Company at website www.precisionwires.com under investor head.


During the year under review, 5 (Five) meetings of the Board of Directors were held as under:

13 April, 2020, 27 June, 2020, August, 2020,11 November, 2020 and 11 February, 2021.

The details of attendance of Directors with respect to above meeting are as follows:

Name ofthe Person No. of Meeting held No. of Meeting attend/entitled
1 Shri Mahendra Mehta 5 5
2 Shri Milan Mehta 5 5
3 Shri Deepak Mehta 5 5
4 Shri Ashwin Kothari 5 5
5 Shri Vijay Crishna* 5 1
6 Shri Pradip Roy 5 5
7 Smt. Swati Maheshwari 5 5

* Resigned w.e.f. 26.06.2020 due to ill-health.


Pursuant to Section 134(5) ofthe Companies Act, 2013, Directors of your Company hereby state and confirm that:

a) In the preparation ofthe annual accounts for the year ended 31st March, 2021, the applicable accounting standards have been followed along with proper explanation relating to material departures;

b) they have 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 ofthe profit ofthe company for the same period;

c) the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions ofthe Companies Act, 2013 for safeguarding the assets ofthe company and for preventing and detecting fraud and other irregularities;

d) they have prepared the annual accounts on a going concern basis;

e) they have laid down internal financial controls in the company that are adequate and were operating effectively.

f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and these are adequate and are operating effectively.


The Independent Directors ofthe Company have submitted the declaration of Independence as required under Section 149(7) ofthe Act, confirming that they meet the criteria of independence under Section 149(6) ofthe Act, and Regulation 16 (1)(b) ofthe Securities Exchange board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations).


The Policy of the Company on Directors' appointment remuneration and other terms including criteria for determining qualifications, positive attributes, experience and any other matters as required to be provided for the Independence of a Director as per subsection (3) of Section 178 of the Act and Regulation 19 of Listing Regulations is appended as Annexure-I to this Annual Report. The inter alia, provides that the Nomination and Remuneration Committee shall, formulate the criteria for Board membership, including the appropriate mix of Executive & Non-Executive Directors, Board Diversity and approve and recommend compensation packages and policies for Directors and Senior Management and lay down the effective manner of performance evaluation of the Board, its Committees and the Directors and such other matters as provided under Section 178 of the Act and Listing Regulations.

The salient features of the Nomination and Remuneration Policy of the Company are outlined in the Corporate Governance Report which forms part of this Annual Report. The Policy is also available on the website ofthe Company www.precisionwires.com.


During the financial year 2020-21, there were no changes in Board of Directors ofthe Company, however Mr. Mahendra Mehta has been re-appointed as a Chairman and Managing Director ofthe Company w.e.f. 01st October, 2021.

Mr. Vijay Crishna has resigned from the Board of Directors of the Company w.e.f. 26th June, 2020 as an Independent Director ofthe Company, due to ill-health. As an Independent Director, his long association with the Company for more than 29 years was of immense assistance.


a. Statutory Auditor:

C.A. Ms. Parvathy Ganesh (Membership No. 132282) was appointed as Statutory Auditor at the 28th AGM ofthe Company, held on 19th August, 2017 for a period of Five years.

There were no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors in their audit report for the financial year ended on 31st March, 2021.

b. Cost Auditors:

Based on the recommendation ofthe Audit Committee and passed by the Board at its meeting held on 23rd June, 2021 the Board has appointed M/s. Gangan & Co., Cost Accountants as the Cost Auditors to audit the Cost accounts of the Company for the Financial Year 2021-22 at a remuneration of Rs. 2,50,000/- plus taxes as may be applicable and reimbursement of out of pocket expenses, subject to approval of Members at the ensuing AGM.

The Cost Accounting records maintained by the Company for Products covered under GST Tariff of India Chapter Heading / sub heading HS 8544 (Winding Wires Made of Copper and also insulating varnish HS 3208/09 are subject to yearly audit by qualified Cost Auditors.

The cost audit report for the financial year 2020-21 was filed with the Ministry of Company Affairs on 30 December, 2020.

c. Secretarial Auditor:

The Secretarial Audit Report for the financial year ended 31st March, 2021 under Companies Act, 2013, read with Rules made thereunder and Regulation 24A of the Listing Regulations (including any statutory modification(s) or re-enactment(s) thereof for the time being in force) is set out in the as Annexure-ll to this Annual Report.

There were no qualifications, reservations or adverse remarks or disclaimers made by the Secretarial Auditors in their audit report for the financial year ended on 31st March, 2021.


The details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Act, read with Companies (Meeting of Board and Its Powers) Rules, 2014 as on 31st March, 2021 are given in the notes to the Financial Statements forming part of this Annual report. The Company has not given any Loans/Guarantees to any individual/body corporate, except to its employees.


The Company doesn't have any Subsidiary, Joint Venture or Associated Companies.


All transactions entered with Related Parties, during the financial year were in the ordinary course of business and on an arms length basis on normal commercial terms and do not attract the provisions of section 188 of the Companies Act, 2013. Thus disclosure in form AOC-2 is not required. There were no materially significant related party's transactions during the financial year with Promoters, Directors and Key Managerial Personnel which were in conflict with the interest of the Company. Suitable disclosure as required by the Accounting Standards (AS18) has been made in the notes to the Financial Statements. The Form AOC-2 of the Companies (Accounts) Rules, 2014 is set out as Annexure-lll to this Annual Report.

The Board has approved a policy for interested related party transactions which has been uploaded on the Company's website.

The Company has frame work for the purpose of identification and monitoring of related party transactions. All related Party transactions are placed before the Audit Committee as also to the Board of Director's for approval. Prior omnibus approvals are granted by the Audit Committee for related party transactions. Transactions entered into pursuant to omnibus approval are placed before the Audit Committee and Board for review and approval on quarterly basis.

The Company in terms of Regulation 23 of the Listing Regulations submits within 30 days from the date of publication of its standalone and consolidated financial results for the half year, disclosures of related party transactions on a consolidated basis, in the format specified in the relevant accounting standards to the stock exchanges. The said disclosures can be accessed on the website of the Company at www.precisionwires.com


The particulars in respect of conservation of energy, technology absorption and foreign exchange earnings and outgo, as required under Section 134(3)(m) of the Act, read with the Companies (Accounts) Rules, 2014 is given in Annexure-IV to this Annual Report.


The Company has been addressing various risks impacting the Company. Risk management is integral to your Company's strategy and for the achievement of our long-term goals. Our success as an organization depends on our ability to identify and leverage the opportunities while managing the risks. The COVID-19 pandemic this year has posed several unprecedented challenges in the form of uncertain lockdowns, unlock phases, health hazards and supply chain disruptions across the globe.

Some of the risks that the Company is exposed to are:

Foreign Exchange Risks

The Company's policy is to actively manage its foreign exchange risk on import of inputs and export of finished goods. Commodity Price Risks

The Company is exposed to the risk of price fluctuation of raw materials and Foreign Exchange. Generally, so far it is practicable the Company purchases Copper back-to-back after the receipt of the order / Consumer opted Copper bookings so as to minimize the above risk.

Regulatory Risks

We endeavor to submit and file data with concerned Authorities, so as to comply with Regulations/Laws in time. Wherever we are unable to understand/grasp certain Regulations, we take assistance of Qualified and experienced consultants.

The Company is also mitigating these risks with the help of regular external compliance audits.


In terms of Section 135 and Schedule VII of the Companies Act, 2013, the Board of Directors of the Company has constituted a CSR Committee. The Committee comprises of One Independent Director and Two Executive Directors. The CSR Policy has been uploaded on the website of the Company.

As required under the Companies Act, 2013, the statement in Annexure-V is the part of the Director Report.


Pursuant to Listing Regulations, the Management Discussion & Analysis Report and Corporate Governance Report together with Certificate from Practicing Chartered Accountant, on compliance with the conditions of Corporate Governance as lay down, forms a part of this Annual Report.


The Company has formulated a Policy on Prevention of Sexual Harassment at Workplace for prevention, prohibition and redressal of sexual harassment at workplace in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (hereinafter referred to as "Prevention of Sexual Harassment Act").

Internal Complaints Committees have also been set up to redress any such complaints received. The Company is committed to providing a safe and conducive work environment to all of its employees and associates. The Company periodically conducts sessions for employees across the organization to build awareness about the Policy and the provisions of Prevention of Sexual Harassment Act.

No Complaints of sexual harassment were received during the financial year 2020-21 by the Company.


Pursuant to the provisions of the Act, and Regulation 17 of the Listing Regulations, the Board has carried out an annual evaluation of its own performance, performance of the Directors as well as the evaluation of the working of its Committees.

The Nomination and Remuneration Committee has defined the evaluation criteria for the Board, its Committees and Directors.

The Board's functioning was evaluated on various aspects, including inter alia degree of fulfillment of key responsibilities, Board structure and composition, establishment and delineation of responsibilities to various Committees, effectiveness of Board processes, information and functioning.

The Committees of the Board were evaluated after taking inputs from the Committee members on the basis of criteria such as degree of fulfillment of key responsibilities, adequacy of Committee composition and effectiveness of meetings.

The Board and the Nomination and Remuneration Committee reviewed the performance of the individual directors on aspects such as attendance and contribution at Board/Committee Meetings and guidance/support to the management outside Board/ Committee Meetings. In addition, the Chairman was also evaluated on key aspects of his role, including setting the strategic agenda of the Board, encouraging active engagement by all Board members.

The performance evaluation of the Independent Directors was carried out by the entire Board, excluding the Director being evaluated. The performance evaluation of the Chairman and the Non Independent Directors was carried out by the Independent Directors who also reviewed the performance of the Board as a whole.

In a separate meeting of independent directors, performance of non-independent directors, performance of the board as a whole and performance of the chairman was evaluated, taking into account the views of executive directors and nonexecutive directors.


The Company has not accepted any deposit from the public falling within the ambit of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.


There are no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Company's operations at present so far.


The Statement of Disclosure of Remuneration under Section 197 of the Act and Rules 5(1) and 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 ("Rule") is appended as Annexure-VI to this Directors' Report.


The Companies Audit Committee consists of Following Independent Directors:

a. Ashwin Pannalal Kothari (Chairman)

b. Pradip Roy

c. Swati Gokul Maheshwari

The composition of the Audit Committee is in compliance with the requirements of Section 177 of the Act, and Regulation 18 of the Listing Regulations.

All members of the Audit Committee are financially literate and have experience in financial management. All the recommendations made by the Audit Committee were accepted by the Board of Directors of the Company.


Your Company has an effective internal control and risk-mitigation system, which are constantly assessed and strengthened with new/revised standard operating procedures. The Company's internal control system is commensurate with its size, scale and complexities of its operations. The internal and operational audit is entrusted to M/s. Kailash Chand Jain & Co, Chartered Accountants, reputed firm of Chartered Accountants. The main thrust of internal audit is to test and review controls, appraisal of risks and business processes, besides benchmarking controls with best practices in the industry.

The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism.

The Audit Committee of the Board of Directors, Statutory Auditors and the Business Heads are periodically apprised of the internal audit findings and corrective actions taken. Audit plays a key role in providing assurance to the Board of Directors. Significant audit observations and corrective actions taken by the management are presented to the Audit Committee of the Board. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee.


The Company has a robust vigil mechanism through its Whistle Blower Policy approved and adopted by Board of Directors of the Company in compliance with the provisions of Section 177(10) of the Act and Regulation 22 of the Listing Regulations.

The Policy also provides adequate protection to the Directors, employees and business associates who report unethical practices and irregularities. Any incidents that are reported are investigated and suitable action is taken in line with the Whistle Blower Policy. The Whistle Blower Policy of the Company can be accessed at website of the Company at www.Drecisionwires.com.


a. The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Meetings of the Board of Directors and General Meetings;

b. None of the Auditors of the Company have reported any fraud as specified under the second proviso of Section 143 (12) of the Companies Act, 2013 (including any statutory modification(s) or re-enactment(s) thereof for the time being in force);

c. The Company does not have any scheme or provision of money for the purchase of its own shares by employees/ Directors or by trustees for the benefit of employees/ Directors; and

d. The Company has not issued equity shares with differential rights as to dividend, voting or otherwise.


The Directors wish to place on record their deep appreciation of the continued assistance and co-operation from ICICI Bank Ltd, HDFC Bank Ltd, Kotak Mahindra Bank Ltd, Standard Chartered Bank, Mizuho Bank Ltd, IDFC First Bank, Axis Bank Ltd, the Administration of Union Territory of Dadra and Nagar Haveli and Diu and Daman, Palej Gram Panchayat, all Shareholders friends and all the Staff and employees of the Company.

For and on behalf of the Board,
Mahendra R. Mehta,
Chairman and Managing Director
DIN: 00003558
Mumbai, 23rd June, 2021