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On behalf of the Board of Directors of your Company, we share with you the Annual Report along with the audited financial statements of your Company for the financial year ended March 31, 2016.
The tyre industry continues to face challenging conditions on topline growth in recent times and this is reflected in sales revenue growth numbers at Apollo Tyres Ltd. The growth in volumes has been negated by sales price reductions in multiple geographies and the overall sales revenue has also been impacted by adverse currency movements.
On a standalone basis, your Company achieved a net turnover of Rs. 86,164 million as against Rs. 88,783 million during the previous financial year. EBIDTA was at Rs. 16,144 million as compared to Rs. 13,531 million during the previous financial year. The net profit for the year under review was Rs. 8,525 million, as against Rs. 6,451 million in the previous fiscal, a growth of 32.15%.
The consolidated net turnover of your Company was Rs. 117,078 million during FY16, as compared to Rs. 127,257 million in FY15. The consolidated EBIDTA was Rs. 20,383 million for FY16 as compared to Rs. 19,844 million for the previous financial year. On consolidated basis, Apollo Tyres earned a net profit of Rs. 10,930 million for FY16 as against Rs. 9,776 million for the previous financial year.
During the year under review, the raw material basket cost declined by approx. 15% over the last year.
Natural Rubber prices in the international market remained soft during the year due to weak global demand. During FY16 in India, there is a demand supply gap of around 400,000 MT which represents ~ 40% of Consumption of Natural Rubber. This shortage had to be met through imports from ASEAN region to ensure continuity of production at our tyre plants.
Crude Oil prices remained volatile during the year. From a level of USD 60/bbl during the early part of the fiscal, Brent Crude oil prices touched came down to USD 28/bbl before recovering to USD 40/bbl by the year end. Weak global demand and the decision of OPEC members to maintain their production levels despite steady rise in production from Non OPEC producers and geo–political factors were responsible for the volatility in the Oil market.
Synthetic Rubber and Carbon Black prices moved during the year in line with their monomer prices and the demand–supply position. The Crude based raw materials were lower on a year–on–year basis in the current financial year. Limited availability and pollution related issues in China are characterising the Rubber Chemicals industry.
The anti–dumping duty continues on imports of Nylon Tyre Cord Fabric from China, Carbon Black imports from China and Russia, and import of Rubber Chemicals from China, EU and Korea. In addition anti–dumping duty petition has been initiated on imports of Synthetic Rubber from Korea, EU and Thailand by the domestic industry.
The rupee depreciated by 7% against the US Dollar in FY16.
The Company's focus on inventory management and risk mitigation through multiple sourcing continued during the year.
Your Company has a consistent track record of dividend payment. The Directors are pleased to recommend a dividend of Rs. 2/– (200%) per share of Rs. 1/– each on Equity Share Capital of the Company for FY16 for your approval. There will be no tax deduction at source on dividend payments, but those shareholders receiving a dividend income exceeding Rs. 10 lakh, would become liable to pay additional tax @ 10%. Your Company would continue to bear tax on dividend @ 20.36%, inclusive of surcharge.
The dividend, if approved, shall be payable to the members holding shares as on record date,
i.e., August 2, 2016.
The amount available for appropriations, including surplus from previous year amounted to Rs. 24,237 million. Surplus of Rs. 21,887 million has been carried forward to the balance sheet after providing for dividend of Rs. 1,018 million, dividend tax of Rs. 207 million, debenture redemption reserve of Rs. 125 million and general reserve of Rs. 1,000 million.
The Company acquired the Germany based Reifencom GmbH along with its Subsidiaries.
This is in line with the strategy to build a strong retail network in Europe. Reifencom GmbH operates the online portal reifen.com and has 37 stores nationwide. It is one of the leading tyre retail organisations in Germany with over 2,500 assembly partners. It also has online activities in other countries like Austria, Switzerland, France, Italy and Denmark. This transaction will allow Apollo Tyres to expand its retail and online presence in many European countries.
BOARD OF DIRECTORS
A) Appointment/Re–appointment of Directors
Pursuant to Section 161 of the Companies Act, 2013, General Bikram Singh (Retd.) (DIN: 07259060) was appointed as Additional Director w.e.f. August 11, 2015 and Mr Vinod Rai (DIN: 01119922) and Mr Francesco Gori (DIN: 07413105) were appointed as Additional Directors of the Company w.e.f. February 9, 2016 to hold office till the date of the ensuing Annual General Meeting. The Company has received requisite notice together with deposit of Rs. One Lakh each, as provided under Section 160 of the Companies Act, 2013, from the members, proposing the appointment of General Bikram Singh (Retd.) and Mr Vinod Rai as Independent Directors not liable to retire by rotation and Mr Francesco Gori as Non–Independent Director liable to retire by rotation.
Pursuant to the provisions of Section 152 (6) of the Companies Act, 2013, Mr Robert Steinmetz (DIN: 0178792), Director of the Company, is liable to retire by rotation and being eligible, offers himself for re–appointment. Mr Robert Steinmetz is not disqualified under Section 164(2) of the Companies Act, 2013.
B) Changes in Directors and Key Managerial Personnel
During the year under review, Mrs Seema Thapar had been appointed as Company Secretary w.e.f. April 1, 2015 and Mr Gaurav Kumar had been appointed as Chief Financial Officer w.e.f. May 12, 2015. Mr Sunam Sarkar (DIN: 00058859) resigned as Whole–Time Director effectivefrom August 11, 2015 and continues to be a Non–Executive, Non–Independent Director of the Company thereafter.
Further, keeping in view the increased involvement of Mr Robert Steinmetz (DIN: 0078792) in the affairs of the Company, his status was changed from Independent Director to Non–Executive, Non–Independent Director w.e.f. February 9, 2016.
C) Declaration by Independent Director(s)
In terms with Section 149(7) of the Companies Act, 2013, every Independent Director of the Company has submitted a declaration that they meet the criteria of Independence.
D) Formal Annual Evaluation
Pursuant to the provisions of the Companies Act, 2013, the Board is required to carry out annual evaluation of its own performance and that of its committees and individual Directors. The Nomination and Remuneration Committee of the Board is also required to carry out evaluation of every Director's performance. Accordingly, your Company has carried out the performance evaluation during the year under review.
For annual performance evaluation of the Board as a whole, it's Committee(s) and individual Directors including the Chairman of the Board, the Company has formulated a questionnaire to assist in evaluation of the performance. The tool takes the form of a series of assertions/questions which should be awarded a rating on a scale of 1 to 5 by all individual Directors. Every Director has to fill the questionnaire related to the performance of the Board, its Committees and individual Directors except himself.
On the basis of the response to the questionnaire, a matrix reflecting the ratings was formulated and placed before the Board for formal annual evaluation by the Board of its own performance and that of its Committees and Individual Directors. The Board was satisfied of the evaluation results.
E) Separate Meeting of Independent Directors
In terms of requirements under Schedule
IV of the Companies Act, 2013 and Clause 49 of the Listing Agreement, a separate meeting of the Independent Directors was held on November 19, 2015.
The Independent Directors at the meeting, inter alia, reviewed the following:–
Performance of Non–Independent Directors and Board as a whole.
Performance of the Chairperson of the Company, taking into account the views of Executive Directors and Non–Executive Directors.
Assessed the quality, quantity and timeliness of flow of information between the Company management and the Board that is necessary for the Board to effectively and reasonably perform their duties.
F) Remuneration Policy
The Board has, on the recommendation of the Nomination & Remuneration Committee, laid down a Nomination & Remuneration policy for selection and appointment of the Directors, Key Managerial Personnel and Senior Management and their remuneration. The Company's policy on Directors' appointment & remuneration is stated in the Corporate Governance Report.
PRODUCT & MARKETING
The Company continued its journey of consolidating its leadership position in its established markets, expanding market share in new geographies and product categories and becoming a full range player in India.
In India, the Company rationalised its portfolio and at the same time introduced new winning products like – Amazer 4 Life car tyres and XT–7 Gold HD truck tyres.
Multiple consumer engagement programs were initiated across segments, supported by regional multimedia in localized languages reaching out to consumers at the grassroot level. Apollo also expanded its branded retail footprint to build its network across India.
Apart from the category led initiatives there were some Brand specific promotional campaigns that were carried out in conjunction with Manchester United reinforcing our commitment to football in India. The Manchester United Soccer School was a program which gave kids across the country the chance to train under the supervision of the Manchester United Coaches.
For the Indian market, the year ended with Apollo's grand launch of the Apollo Acti series bike tyres for the two wheelers segment. Designed and developed at the Company's Global R&D Centre in Chennai, Apollo Acti series for bikes and scooters mark a milestone for Apollo Tyres as the entry into this segment makes the Company a full–range player and will support the Company to cement its leadership position in India.
A similar strategy was adopted by the EA operations. The operations launched its biggest online campaign, #ROCKTHEROAD, aimed at increasing Vredestein's visibility in the 25 to 45 years age group by highlighting Vredestein's premium offerings. During the year, the operations launched its Dealer Partnership program in Europe and four new outlets were opened simultaneously in Belgium, Hungary, Italy and the Netherlands. More such stores are planned for Austria, Germany, Spain and Switzerland in the coming months. The eventual goal is to have 800 program partners by 2020 throughout Europe.
Most of the products by the operations saw top ratings across segment – Summer, Winter, All Seasons and Agriculture.
EXPANSION PROGRAMME AND FUTURE OUTLOOK
The Company will continue its three–pronged strategy of looking at consolidating market position in existing markets and seeking new markets/new segments, continue investment in both the brands – Apollo and Vredestein and capacity expansion via Greenfield facilities, plant expansions/ upgradation and looking for other growth opportunities.
For the EA operations, the Company will have production from the Hungary plant in the first quarter of 2017. With two plants offering product optimization opportunities and a cost competitive plant in Hungary, the Company can now take on the global giants on their own turf in Europe. The Company is actively engaging with the leading OEMs in Europe and will leverage its OEM associations in India. Further to Reifencom GmbH acquisition, integration plans are on and this will boost our dealer network program and provide entry into various other European markets. For the APMEA operations, the Chennai plant will provide additional capacities in the fast growing TBR segment. The operation is continuing to explore avenues for the declining TBB products within India and outside of the country. The Company remains bullish on its outreach in other markets in APMEA and expected double–digit growth from these markets.
MATERIAL CHANGES AND COMMITMENTS
No material changes and commitments affecting the financial position of your Company have occurred between the end of the financial year of the Company to which the financial statements relate and on the date of this report.
SIGNIFICANT MATERIAL ORDERS PASSED BY REGULATORS
No significant and material orders have been passed during the year under review by the regulators or courts or tribunals impacting the going concern status and Company's operations in future.
CHANGE IN THE NATURE OF BUSINESS, IF ANY
There is no change in the nature of business of your Company during the year under review.
INTERNAL FINANCIAL CONTROLS
The Company has identified and documented all key internal financial controls as part of standard operating procedures (SOPs). The SOPs are designed for all critical processes across all plants, warehouses and offices wherein financial transactions are undertaken. The SOPs cover the standard processes, risks, key controls and each process is identified to a process owner. In addition, the Company has a well defined Financial Delegation of Authority (FDOA), which ensures approval of financial transaction by appropriate personnel. The Company uses SAP–ERP to process financial transactions and maintain its books of accounts. The SAP has been setup to ensure adequacy of financial transactions and integrity & reliability of financial reporting.
The financial controls are tested for operating effectiveness through management ongoing monitoring and review process, and independently by Internal Audit. The testing of controls by Internal Audit are divided into three separate categories; a) automated controls within SAP, b) segregation of duties within SAP and restricted access to key transactions, c) manual process controls. In our view the Internal Financial Controls with reference to financial statement are adequate and are operating effectively.
SHIFTING OF REGISTERED OFFICE
The Registered Office of your Company has been changed to 3rd Floor, Areekal Mansion, Near Manorama Junction, Panampilly Nagar, Kochi – 682036 w.e.f. May 1, 2016.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
As required by Regulation 34 (2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a detailed Management Discussion and Analysis Report is presented in a separate section forming part of the annual report.
SUBSIDIARY/ASSOCIATE & JOINT VENTURE COMPANIES
As the Company follows its global ambition to become a global tyre brand of choice, it had to create multiple subsidiaries/associate and joint venture for facilitating these operations in various countries. As on March 31, 2016 your Company had 41 subsidiaries including step subsidiaries, 1 associate and 1 joint venture.
During the year under review, the Company had acquired Reifencom GmbH through its step subsidiary, Apollo Tyres Cooperatief U.A. Reifencom GmbH and its subsidiaries have become a part of the Company's group on January 1, 2016.
Apollo Tyres Cooperatief U.A. had incorporated Apollo Tyres (Germany) GmbH as its wholly owned subsidiary on November 11, 2015 in Germany.
Apollo Tyres Holdings (Singapore) Pte Ltd acquired shares of Apollo Tyres (Malaysia) Sdn.
Bhd on March 15, 2016 thus making Apollo Tyres (Malaysia) Sdn. Bhd a wholly owned subsidiary of Apollo Tyres Holdings (Singapore) Pte Ltd
The name of wholly owned subsidiary of Apollo Tyres (UK) Pvt Ltd has been changed to Apollo
Tyres (London) Pvt Ltd on March 29, 2016.
Apollo Tyres (Greenfield) Cooperatief U.A. was converted from a "Cooperative" to "Private Company with Limited Liability" on March 30, 2016. Upon conversion the new name of Apollo Tyres (Greenfield) Cooperatief U.A. is Apollo Tyres (Greenfield) B.V.
The Company purchased 1 (one) share of Apollo Tyres (Greenfield) B.V. from Apollo Tyres (Cyprus) Pvt Ltd on March 30, 2016 thus making Apollo Tyres (Greenfield) B.V. a wholly owned subsidiary of the Company.
Apollo (Mauritius) Holdings Pvt Ltd, wholly owned subsidiary of the Company is under process of being amalgamated with the Company. The Company has received "No Objection Letters" from the Stock Exchanges, BSE Ltd. and National Stock Exchange of India Ltd. The first motion for the approval of Scheme of Amalgamation has been filed with the Hon'ble High Court of Kerala on April 8, 2016.
As per the provisions of Section 129 of the Companies Act, 2013, the consolidated financial statements of the Company and its subsidiaries are attached in the annual report. A statement containing brief financial details of all the subsidiaries of the Company for the year ended March 31, 2016 forms part of the annual report. The annual accounts of subsidiary companies will be made available to shareholders on request and will also be kept for inspection by any shareholder at the registered office and corporate headquarter of your Company. A statement in Form AOC–1 containing the salient features of the financial statements of the Company's subsidiaries, associate and joint venture is also attached with financial statements
During the year under review, your Company did not accept deposits covered under Chapter V of the Companies Act, 2013.
M/s. Deloitte Haskins & Sells, Chennai, Chartered Accountants, (Registration No.008072S), had been appointed as Statutory Auditors of your Company, for a period of three years from FY15 to FY17 at the Annual General Meeting held on August 6, 2014. However, as per the first proviso of Section 139 (1) of the Companies Act, 2013, the appointment of auditors has to be ratified by the members at every Annual General Meeting.
The Company has received a letter from the auditors confirming that they are eligible for appointment as auditors of the Company under Section 139 of Companies Act, 2013 and meet the criteria for appointment specified in Section 141 of the Companies Act, 2013.
Based on the recommendations of the Audit Committee and as per the provisions of Section 139(1) of the Companies Act, 2013, the Board of Directors of your Company proposes to ratify the appointment of M/s. Deloitte Haskins & Sells, Chennai, Chartered Accountants, as the Statutory Auditors of the Company for FY17.
The comments on statement of accounts referred to in the report of the auditors are self explanatory. The Auditors' Report does not contain any qualification, reservation or adverse remark.
M/s. N.P. Gopalakrishnan & Co., Cost Accountants, were appointed with the approval of the Board to carry out the cost audit in respect of the Company's facilities at Perambra, Vadodara and Chennai as well as Company's leased operated plant at Kalamassery for the FY16.
Based on the recommendation of the Audit Committee, M/s. N.P. Gopalakrishnan & Co., Cost Accountants, being eligible, have also been appointed by the Board as the Cost Auditors for FY17 subject to shareholder's approval. The Company has received a letter from them to the effect that their re–appointment would be within the limits prescribed under Section 141(3)(g) of the Companies Act, 2013 and that they are not disqualified for such re–appointment within the meaning of Section 141 of the Companies Act, 2013.
MEETINGS OF THE BOARD OF DIRECTORS
A calendar of meetings is prepared and circulated in advance to the Directors. During the year seven board meetings were convened and held. The intervening gap between the meetings was within the period prescribed under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The details of all Board/Committee meetings held are given in the Corporate Governance Report.
The details of the Audit Committee including its composition and terms of reference mentioned in the Corporate Governance Report forms part of Board's Report.
The Board, during the year under review, had accepted all recommendations made to it by the Audit Committee.
VIGIL MECHANISM/WHISTLE BLOWER
The Company has formulated a vigil mechanism through Whistle Blower Policy to deal with instances of unethical behavior, actual or suspected, fraud or violation of Company's code of conduct or ethics policy. The details of the policy is explained in the Corporate Governance Report and also posted on the website of the Company.
COMMITTEES OF BOARD
Pursuant to requirement under Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors has constituted various committees of Board such as Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee and Corporate Social Responsibility Committee. Thedetails of composition and terms of reference of these committees are mentioned in the Corporate Governance Report.
During the year under review, the Issued, Subscribed and Paid–up Share Capital of the Company was 50,90,24,770 shares of Rs. 1/– each. There was no change in the capital structure of the Company.
a) Issue of equity shares with differential rights
Your Company has not issued any Equity Shares with differential rights during the year under review.
b) Issue of sweat equity shares
Your Company has not issued any Sweat Equity Shares during the year under review.
c) Issue of employee stock options
Your Company has not issued any employee stock options during the year under review.
d) Provision of money by Company for purchase of its own shares by employees or by trustees for the benefit of employees
Your Company has not made any provision of money for purchase of its own Shares by employees or by trustees for the benefit of employees during the year under review.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
During the year under review, your Company has not given any loan or guarantee which is covered under the provisions of Section 186 of the Companies Act, 2013. However, details of investment made during the year, are given under notes to the Financial Statements.
RELATED PARTY TRANSACTIONS
All contracts/arrangements/transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an arm's length basis and do not attract the provisions of Section 188 of the Companies Act, 2013. During the year, the Company had not entered into any contract/arrangement/transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions.
Suitable disclosure as required by the Accounting Standards (AS18) has been made in the notes to the Financial Statements. The policy on Related Party Transactions as approved by the Board is uploaded on the Company's website.
a) The details required pursuant to Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in the Corporate Governance Report.
b) During the year under review, Mr Neeraj Kanwar (DIN: 00058951), Vice Chairman & Managing Director also received remuneration from Apollo Tyres (U.K.) Pvt Ltd, wholly owned subsidiary of the Company.
PARTICULARS OF EMPLOYEES
Particulars of employees as required in terms of the provisions of Section 197 of the Companies Act, 2013, read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are set out in Annexure A to the Board's Report.
SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
Your Company has in place a formal policy for prevention of sexual harassment of its women employees in line with "The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013".
During the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company has re–appointed M/s. PI & Associates, Company Secretaries as Secretarial Auditor of the Company for FY16 to undertake Secretarial Audit of the Company.
The Secretarial Audit Report does not contain any qualification, reservation or adverse remark. Secretarial Audit Report given by Secretarial Auditors is annexed with the report as Annexure I.
AWARDS AND RECOGNITIONS
In its constant quest for growth and achievement, your Company was honored and recognised at various forums. The prominent Awards are listed below for your reference.
The Company has a well laid out Risk Management Policy, covering the process of identifying, assessing, mitigating, reporting and reviewing critical risks impacting the achievement of Company's objectives or threaten its existence.
The Risk Management Steering Committee have been formed headed by President (APMEA) and President (EA) as Chairman of the respective Committees and represented by the functional heads as Chief Risk Officers. The Committees review each risk on a quarterly basis and evaluates its impact and plans its mitigation. The risks are documented in form of risk registers, which are placed before audit committee at its meeting. The audit committee of the Company reviews the risks of APMEA and EA regions and provides its directions to the management, if any. The audit committee updates the Board on the key risks placed before it.
CORPORATE SOCIAL RESPONSIBILITY
Your Company has been taking initiatives under Corporate Social Responsibility (CSR) for society at large, well before it has been prescribed through the Companies Act, 2013. The Company has a well defined Policy on CSR as per the requirement of Section 135 of the Companies Act, 2013 which covers the activities as prescribed under Schedule VII of the Companies Act, 2013. The Company has in–house department which is exclusively working towards that Objective. The Company is carrying out its CSR Activities through registered trusts created by the Company for this purpose and which is monitored by CSR Committee.
During the year under review, your Company has carried out activities primarily related to promoting preventive healthcare, ensuring environmental sustainability, livelihood enhancement projects, rural development projects, promoting education and eradication of hunger, poverty & malnutrition.
Corporate Social Responsibility Report, pursuant to clause (o) of sub–section (3) of Section 134 of the Act and Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014 forms part of the Boards Report as Annexure II.
BUSINESS RESPONSIBILITY REPORT
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 mandates the top 500 listed companies by market capitalisation to give Business Responsibility Report ("BR Report") in their Annual Report effective from April 1, 2016.
Your Company falls under the top 500 listed companies by market capitalisation. Accordingly, your Company will annex a BR Report with its Annual Report for FY17.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
Particulars required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, regarding conservation of energy, technology absorption and foreign exchange earnings and outgo, are given in Annexure III, forming part of this report.
EXTRACT OF THE ANNUAL RETURN
The extract of the annual return in Form MGT–9 is enclosed herewith as Annexure IV, forming part of this report.
CORPORATE GOVERNANCE REPORT
Your Company always places major thrust on managing its affairs with diligence, transparency, responsibility and accountability thereby upholding the important dictum that an organisation's corporate governance philosophy is directly linked to high performance.
The Company is committed to adopting and adhering to established world–class corporate governance practices. The Company understands and respects its fiduciary role and responsibility towards its stakeholders and society at large, and strives to serve their interests, resulting in creation of value and wealth for all stakeholders.
The compliance report on corporate governance and a certificate from M/s. Deloitte Haskins & Sells, Chennai, Chartered Accountants, Statutory Auditors of the Company, regarding compliance of the conditions of corporate governance, as stipulated under Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is attached herewith as Annexure V to this report.
DIRECTORS' RESPONSIBILITY STATEMENT
As required by Section 134(3)(c) of the Companies Act, 2013, your Directors state that:
(a) in the preparation of the annual accounts for the financial year ended March 31, 2016, 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;
(e) the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
(f)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.
Your Company's organisational culture upholds professionalism, integrity and continuous improvement across all functions, as well as efficient utilisation of the Company's resources for sustainable and profitable growth.
Your Directors wish to place on record their appreciation to the respective State Governments of Kerala, Gujarat, Haryana and Tamil Nadu, and the National Governments of India, Netherlands and Hungary. We also thank our customers, business partners, members, bankers and other stakeholders for their continued support during the year. We place on record our appreciation for the contribution made by all employees towards the growth of your Company
For and on behalf of the Board of Directors
Vice–Chairman & Managing Director
Date: May 11, 2016