NSE Symbol: | BSE Code: | ISIN: | Sector:
- Add to Portfolio
- Add to Watchlist
- Add to Alert
Your Director's have great pleasure in presenting you the 8th Annual Report on the business and
operations of the Company together with the Audited Statements of Accounts for the financial periodfrom April 1 , 2014 to March 31 , 2015 and other accompanying reports, notes and certificates
During the year under review on consolidated basis our Company earned an income of Rs. 975.38 Lacs against Rs. 843.48 Lacs in the previous year. The Company earned profit after tax of Rs. 714.37 Lacs as compare to Rs.608.82 Lacs in the previous year. The Company had Income from operation of Rs. 9730.22 Lacs as compared to Rs. 9447.72 Lacs in previous year. The Profit before Interest/Depreciation/Tax (PBIT) was Rs. 1571.38 Lacs as compared to Rs. 1168.34 Lacs in previous year.
During the year under review on standalone basis our Company earned an income of Rs. 975.56 Lacs against Rs. 843.67 Lacs in the previous year. The Company earned profit after tax of Rs. 714.54 Lacs as compare to Rs. 609.01 Lacs in the previous year. The Company had Income from operation of Rs. 9730.22 Lacs as compared to Rs. 9447.72 Lacs in previous year. The Profit before Interest/Depreciation/Tax (PBIT) was Rs.1572.10 Lacs as compared to Rs. 1168.53 Lacs in previous year.
Keeping pace with growth trajectory and its efforts to improve efficiency, productivity and profitability the management seeks the trust of shareholders in future growth of the Company and enhancement of shareholders wealth.
The Board of Directors has decided not to recommend any dividend for the year ended on 31st March, 2015.
Rs. 71,454,473 has been transfer to reserves and surplus account during the current year.
IPO proceeds and Deployment of funds
Your Company has successfully come up with an IPO on December 13, 2012 and listed on EMERGE in NSE. The issue size was Rs. 25, 00, 50,000/– (Twenty Five Crores Fifty Thousand only) consisting of 50, 01,000 (Fifty Lakh One Thousand only) Equity Shares offered at Rs. 50/– (Face value of shares Rs. 10/– per share and premium of Rs. 40/– per share). The issue open and close date was December 3, 2012 and December 5, 2012 respectively. The detail of proceeds of IPO is as under:
As per RHP, the Proceeds of Issue were Rs. 2500 Lakh and Internal Accruals were Rs. 50 Lakh. However, due to lot size of 3000 Equity shares, IPO proceeds came to Rs. 2500.50 Lakh and therefore internal accruals get reduced by Rs. 0.50 Lakh.
The project covers Modernization of existing facility at Haridwar amounting Rs. 470 Lacs, Working capital requirement amounting Rs. 1580 Lacs, Enhancement of our Company's brand through advertising and other Brand Building activities amounting Rs. 200 Lacs, General Corporate purposes amounting Rs. 100 Lacs and to meet the issue expenses amounting Rs. 200 Lacs.
As required under clause 52 (IV) (D) of SME Equity Listing Agreement, the utilization of IPO proceeds are being reported on half–yearly basis published by the Company after the same is reviewed by the Audit Committee.
The detailed description with respect to deployment of funds and explanation as per Clause 45 (c) of SME Listing Agreement is given hereunder:
Change in the nature of business, if any
There is no change in the nature of business during current financial year.
Material changes if any affecting the financial position of the Company which have occurred between the ends of the financial year of the company to which the financial year relates and the date of the report.
On Feb 10,2015 the Board decided to migrate the Company from SME Platform to NSE Main Board. Aspecial Resolution was passed through the Postal Ballot on 18th March, 2015.On April 29, 2015 Company was migrated on Main Board of NSE by way of listing its entire share capital of 18327100 Equity Shares on NSE Main Board.
The Board of Directors of the company decided to grant shares under ESOP Scheme to the employees of the company, its holding & subsidiaries company subject to the approval of shareholders in Annual General Meeting.
Management Discussion and Analysis
In terms of the Provisions of Clause 49 of the Listing Agreement, the Management Discussion and Analysis is set out in this Annual Report.
Particulars of Loan, Guarantee and Investments
Loans, guarantees and investments covered under section 186 of the Companies Act, 2013 form part of the notes to the financial statements provided in this Annual Report.
Particulars of Contracts and Arrangement under section 188
Particulars of contracts and arrangements made with related parties referred to in Section 188 (1) of the Companies Act, 2013, in the prescribed form AOC–2, is appended as Annexure III to the Board's Report.
The Company has not accepted any deposits from the public. The details relating to deposits, covered under Chapter V of the Act,–
a) Accepted during the year : NIL
b) Remained unpaid or unclaimed as at the end of the year: NIL
c) Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved–
i. At the beginning of the year: NIL
ii. Maximum during the year: NIL
iii. At the end of the year: NIL
Our Company has total fixed deposit of Rs. 57.82 lacs including accrued interest with the Indian Overseas Bank, M.I Road branch, Jaipur.
2. Business Operations/ State of Company's Affairs
Our Company is an ISO 9001:2008 certified company, engaged in the manufacture and sale of wires & cables and electrical accessories in India. The product portfolio ranges from industrial cables, stand cables to telephone & co–axial wires, from general switches to modular switches, from ceiling fans to rechargeable fans, compact fluorescent lamps, LED bulbs and other electrical accessories. Our Company supplies these products under the brands "VETO" and "VIMAL POWER" through large network of dealers to the customers in India as well as selected customers abroad.
1. Company is planning to open 100 Retails exclusive Veto Retails outlets in Rajasthan.
2. Explore the possibility of marketing in abroad.
3. Board of the Company intents for direct listing in Bombay Stock Exchange Limited.
Presently, we have 400 KVA of power supply sanctioned by Uttarakhand Power Corporation Limited, of which we utilize approximately 325 KVA of power for our present business operations. In addition, to avoid any disruption in the power supply, our Company has already installed a DG set of 250 KVA capacity. Therefore, we envisage that our further requirement of power for our proposed modernization at our Haridwar facility can be easily met from the present supplies.
Our Company mainly requires HSD for operating the DG sets. The present monthly consumption of HSD is about 1000 litres. The HSD is being supplied by retail outlets of IOC, HPCL and BPCL.
Water is basically required for drinking and other domestic purpose. Our present requirement at our Haridwar unit is about 5000 litres per day. Our entire water requirement is met from our own borewell. The water supply is regular and sufficient to meet entire requirements. The proposed modernization at our Haridwar facility will require additional 2000 litres of water per day. There is no difficulty in obtaining this because of the presence of a number of borewell and the water level in the area being high due to proximity to nearby canal and a river, Ganga.
> Effluent Treatment and Disposal
Our Company does not generate any industrial effluents which is hazardous to the environment. The waste produced during the manufacturing operations is re–used or recycled.
> Environmental Clearance
We have got all the necessary approvals from the local authorities to operate our business.
Further research in process and product engineering to ensure the best manufacturing process for our products in order to enhance competitiveness in the markets is one of our goals. Research and development in electrical accessories and other allied products will better enable a competitive position in the market. Further enhancement of operations by improving the existing assets to yield better output and installation of new assets to enhance and attract new markets are also in the horizon.
Our Company has taken up a range of insurance policies including:
1. Fire policies for our units, buildings and offices, raw materials, work–in–progress and finished goods;
2. Marine policy for transit of raw materials and finished products in India and Marine Export policy;
3. Accidental & Health insurance facility for field staff;
4. Gratuity policy;
These insurance policies are reviewed annually to ensure that the coverage is adequate. All the policies are in existence and the premiums have been paid thereon.
Risks and Concerns:
1. Common Risks: Accidents in the work place, fires, tornadoes, and other natural disasters
2. Legal Risks: Fraud, Theft, etc
3. Uncertainties in financial markets
4. Failure in Projects
5. Credit Risks
6. Outstanding Debtors
7. Security and Storage of Data and Records
8. Competitors: Havells, Polycab, Wizard, Anchor, Bajaj Electricals
Internal Control System
• Company has formed the Risk Management Committee for the assessment and monitoring of the risks involved in the Company.
• Preparation and issue of financial reports to shareholders and the markets, including the Annual Report and consolidated financial statements, is overseen by the Audit Committee. The Company's financial reporting process is controlled using documented accounting policies and reporting formats, supplemented by detailed instructions and guidance on reporting requirements. The Company's processes support the integrity and quality of data, including appropriate segregation of duties. The financial information of the parent entity and all subsidiary entities, which form the basis for the preparation of the consolidated financial statements are subject to scrutiny by Group level senior management. The Company's financial reports, financial guidance, and Annual Report and consolidated financial statements are also reviewed by the Audit Committee of the Board in advance of being presented to the full Board for their review and approval;
• Detailed budgetary process which includes identifying risks and opportunities and which is ultimately approved at Board level;
• Board approved capital expenditure and Audit Committee approved treasury policies which clearly define authorization limits and procedures;
• An internal audit function which reviews key financial/business processes and controls, and which has full and unrestricted access to the Audit Committee;
• Established systems and procedures to identify control and report on key risks. Exposure to these risks is monitored by the Risk Management Committee; and
• A risk management programme in place throughout the Company whereby'Risk Management executive reviews and monitors the controls in place, both financial and non financial, to manage the risks facing the business.
Awards and Recognition
During the year Our Company's has been awarded by Top 100SME's Award which was received by Mr. Mohan Das Gurnani, Group Chairman on the behalf of the Company, by Hon'ble speaker Smt. Sumitra Mahajan and Hon'ble Minister of SME (Govt, of India) Mr. Kalraj Mishra.
Details of Subsidiaries/ Joint Venture/ Associate Companies
On 22nd November, 2014 Veto Electricals Private Limited becomes the Wholly Owned Subsidiary Company of the Company. Same has been disclosed in Annexure–I
A land is purchased by Veto Electricals Private Limited in Mahindra, SEZ. Company had already applied for letter of approval with the Development Commissioner SEZ, Noida. The case has already been approved by Unit Approval Committee (UAC) and company is planning to start construction work of building in Mahindra SEZ in Month of September, 2015 and expected to complete the Construction and erection of plant and machinery upto March, 2016.Hence commercial production will be start in the Month of April, 2016.
Performance and Financial position of Subsidiary Company
The details with respect to subsidiary Company as on March 31, 2015 have been discussed in Annexure II.
3. Human Resource Management
VETO has over the years realized the importance of human capital and duly acknowledges it in its business operations. Your Company has managed to create "Lifers" at VETO– people who have been associated with your Company, many having started their earning life at VETO. It gives the much needed stability and satisfaction when we realize that our partners in success trust us to such an extent that they stand by us at all times.
Their experience, skills, knowledge, ideas and enthusiasm are an invaluable asset. We humbly acknowledge their contributions with competitive compensation and benefits that appropriately reward performance. Pay revisions and other benefits are designed in such a way to compensate good performance of the employees of the Company.
The talent pool of your Company has steadily evolved with changing times with fresh talent being infused to meet demanding situations. The Company has a scalable recruitment and human resource management process which enables us to attract and retain high caliber minds.
Inspired by its commitment to quality and core values of honesty and transparency, your Directors and employees look forward to the future with confidence and stand committed to creating an even brighter future for all stakeholders.
A) Information as per Rule 5(1) of Chapter XIII, Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
Particulars of Employees
Your Directors confirmed that no employee fall under the particulars of Section 192 (12) of the Companies Act, 2013 read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
4. Corporate Governance
Corporate Governance Report
Corporate Governance refers to laws, regulations, and acceptable business practices that determine relationships between corporation owners and its managers, on one hand, and its investors, on the other hand. It was born and evolved in response to corporate failures, crises, and misdeeds. In many types of economies, corporate governance concentrates on at least four important factors: Ensuring disclosures of all relevant information to shareholders and creditors; including business risk analyses; Building a system of rules and voluntary practices that will guide the board of directors; Establishing independent audit committees composed of outside directors; Monitoring and controlling management. On the other hand, developing economies, like the Caribbean, focus on strengthening and improving the legal and regulatory systems that will help ensure better enforcement of contracts and protection of property rights.
Your Company is committed to achieving and maintaining high standards of Corporate Governance and places high emphasis on business ethics. Your Company has set up a Remuneration Committee under Annexure 1–D of SME Equity Listing Agreement, which was later reconstituted under the name 'Nomination and Remuneration Committee' pursuant to provisions of Section 174 of The Companies Act, 2013. The report on Corporate Governance as stipulated under Clause 49 of the Listing Agreement has been included in Annexure IV of this report,
The Company has laid down a well–defined Code of Conduct, which fairly addresses the issues of integrity, conflict of interest and confidentiality and stresses the need of ethical conduct, which is the basis of good Governance. This code is applicable to all members of the Board and the Senior Management Personnel. The declaration regarding compliance with Veto Switchgears And Cables Limited–Code of Conduct and Ethics for all Board Members and Senior Management Personnel of the Company forms part of the Report on Corporate Governance.
A. Change in directors and KMP during the year
There were certain appointments in capacity of directors as managing director and independent director. The current Managing Director of the Company w.e.f. August 27, 2014 is Mr. Akshay Kumar Gurnani, s/o Mr. Vishnu Kumar Gurnani. In order to comply with the provisions of Section 149 (1) and Section 149(10), Ms. Jyoti Gurnani, D/o Mr. Vishnu Kumar Gurnani has been appointed as a women Director of the Company in the Last AGM. The detail has been given below:
B. Declaration by an Independent Director(s) and re–appointment, if any
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as per prescribed both under the Act and Clause 49 of the Listing Agreement with the Stock Exchange.
Directors Responsibility Statement
Pursuant to the requirements under Section 134 (5) of the Companies Act, 2013 with respect to the Directors' Responsibility Statement, it is hereby confirmed that:
i. in the preparation of the annual accounts for financial year ended March 31, 2015, the applicable Accounting Standards had been followed along with proper explanation relating to material departures;
ii. 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 as at March 31, 2015 and of the profit of the Company for the year under review;
iii. the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and
iv. the Directors had prepared the annual accounts for financial year ended March 31, 2015 on a 'going concern' basis.
v. the Directors had laid down the internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operate effectively.
vi. the Directors has devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Corporate Governance Certificate
The Company is promptly submitting a "half yearly Compliance Report on Corporate Governance" as per Clause 52 of the SME Listing Agreement with the Stock Exchanges.
Now as the Company is migrated on the Main Board of NSE the Company will submit the "quarterly Compliance Report on Corporate Governance" as per Clause 49 of the Listing Agreement.
The certificate from the Practicing Company secretary, Ms. Nisha Agarwal, CP. No. 8584, confirming the compliance with the condition of Corporate Governance as stipulated under Clause 49 is reproduced in an Annexure IX in the report.
5. Auditors and Auditor's Report
– SGCO&Co., (Membership No. 44739) Chartered Accountants Statutory Auditors of the Company holds office until the conclusion of the ensuing Annual General Meeting and is eligible for re–appointment. It is proposed to re–appoint them as Statutory Auditors of the Company for the financial year 2015–16.
The Company has received a letter from Statutory Auditors to the effect that their re–appointment, if made would have be within the prescribed limits under Section 139 of the Companies Act, 2013 and that they are not disqualifies for reappointment within the meaning of Section 141 of the said Act.
Our comments on financial statements referred to in the Auditor's Reports under Section 145 of the Companies Act, 2013 are given below:
a) With regard to the Emphasis of Matter appearing in the Auditor's Report, your attention is drawn to the notes forming part of financial statements of the year which are self explanatory.
b) With respect to the comments of the Auditors in their report on the Consolidated Audit Report, our responses are given in the Notes to the Financial Statements, which is self–explanatory.
Pursuant to the provisions of Section 148 of The Companies Act, 2013 M/s Rajesh & Company, Cost Accountants, Jaipur were appointed as Cost Auditors of the Company for conducting cost audit for the financial year 2015–2016.
As per amendment on 31.12.14 in Companies (Cost Record & Audit) Rules, 2014 Central Govt notified exemption for applicability of cost audit on the Company covered in serial no 12 and 24 to 32. This is applicable from 1st April 2015. Our Company covered in serial no 32.
Secretarial Audit Report
The Board has appointed Ms. Nisha Agarwal Practicing Company Secretary, to conduct Secretarial Audit for the Financial Year 2014–15. The Secretarial Audit Report for the Financial Year ended March 31, 2015 is annexed herewith marked as Annexure VII to this Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
Reservation and Qualification on Auditor Report
Basis for Qualified Opinion
1. During the year the Company has recognized insurance claim on account of fire amounting to Rs.1, 669.03 lacs which is still not approved by the Insurance Company. Since at present there is no certainty of collection, in our view recognition of the same is not in compliance with Accounting Standard (AS–9) relating to "Revenue Recognition". Had the same not been recognized the loss for the year would have been Rs. 693.47 lacs as against the reported "Profit for the year" of Rs. 975.56 la ,nd "Cii.^r Cun„,,. Assets" would have been lower by Rs. 1669.03 lacs and having a consequential impact on the Reserves and surplus. (Refer Note AO
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March,2015,its profit and its cash flows for the year ended on that date.
Management Reply towards Qualification:
Company is regularly in touch with surveyor appointed by Insurance Company & Insurance Company itself. Insurance Company is already disposed off the Scrap material from our godown in auction of Rs. 2.00 Crores. Hence claim is receivable.
As per our information the surveyor has not submitted the final report to the Insurance Company. Hence we are not able to provide any final report for this purpose. However, Insurance Company also considers provision of this claim in their balance sheet.
Details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company's operations in future
There are no significant and material orders that are passed by the regulators or courts or tribunal impacting the going concern status and Company's operations in future.
Extract of Annual Return
The details with respect to extract of Annual Return have been discussed in Annexure VI.
Details in respect of adequacy of internal financial controls with reference" to the financial statements
The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weakness is observed.
6. Depository System
Our Company's Equity Shares are available in dematerialized form through The National Stock Exchange of India Limited (NSDL) and The Central Depository Services of India (India) Limited (CDSL). As per the Securities and Exchange Board of India (SEBI) Circular No. : Cir/ISD/3/2011 dated June 17, 2011 on "trading rules and shareholding in dematerialized mode", all Listed Companies have to achieve 100% of their promoters and promoter group's holding in dematerialized form latest by quarter ended September 2011. Accordingly, all shares post IPO, of the Company is held in demat form
7. Report under the Prevention of Sexual Harassment Act
There were no complaints reported under the Prevention of Sexual harassment of Women at workplace (Prevention, Prohibition & Redressal) Act, 2013.
8. Conservation of energy, technology absorption and foreign earning and outgo
i. Environment, Health and Safety
VETO is committed to caring for people and the planet by integrating environmental and safety principles in all aspects of its business are it from procurement, material–use, manufacturing of sustainable products, creating awareness through marketing, and innovation/R&D for better products and processes. We constantly monitor and better our environmental and occupational health and safety performance through our internal risk management exercise. At the compliance level, your Company conforms to all applicable regulatory Environmental Health & Safety (EHS) requirements wherever it operates.
Our Company is sensitive to environmental and resource conservation and its manufacturing philosophies ensure safety of the worker and surroundings. Being in a non–polluting category of business, it has minimal impact on the environment but has a huge positive impact on the local community. RoHS or 'Restriction of Hazardous Substances' compliance in all its products like CFLs, cables, PCBs, etc. ensures safety across the product life cycle. Our Company strongly believes and promotes energy conservation not only through its products but also within the premises. Energy conservation measures have been adopted at all the plants.
Our Company follows best practices for health and safety. Employees and workers are regularly trained by industry experts on issues of occupational and industrial health & safety, first–aid and environment management. Healthy lifestyle and well–being are also promoted as a culture at VETO. Our Company also provides life insurance cover, personal accident cover and robust medical & health policies to all field staff against any unfortunate incident. VETO India strongly believes in maintaining a work–life balance and therefore follows strict in–and–out work–timings. This has gone a long way in maintaining a healthy, happy and motivated workforce.
ii. Research & Development
To develop our product pipeline, we commit substantial time, efforts, funds and other resources for R&D. Our processes and products currently under development, if and when fully developed and tested, may not perform as we expect and we may not be able to successfully and profitably produce and utilize such products or processes. Therefore, our investments in R&D and new product launches could result in higher costs without a proportionate increase in revenues.
iii. Detail of Foreign Exchange Earnings and Outgo.
In this financial year Company exported electrical accessories and goods amounting USD 1231247.62 and imported electrical accessories amounting USD 480185.10. Hence net foreign exchange inflow is USD 751062.52.
9. Credit Rating
Our Company has been assigned long–term rating of BBB+ (pronounced ICRA triple B plus) by ICRA Limited.
10. Management Discussion and Analysis
Management Discussion and Analysis report is attached herewith forms part of this report. Summary of performance and various businesses and functions of the Company is as follows:
1. Economy and Markets
The after effects of the global financial crisis of 2008 have continued to cast their shadow on the economies around the world even now. The crisis brought to fore the vulnerabilities of the systems of regulation and operation of the financial and fiscal processes. The unprecedented scale of fiscal stimulus that was required to manage this crisis has meant that bringing the fiscal deficit back to acceptable levels is an equally daunting challenge.
The Indian economy rebounded strongly in fiscal 2011 from the moderation induced by the global downturn. India registered real GDP growth of, 12.25% in 2012–13, 11.94% in fiscal 2013–14 and an estimated 7.33% in fiscal 2014–15.
2. Market Overview
Our Company is a mid–sized recognized manufacturer in Rajasthan, India in the segment which we operate. Our products are mainly targeted to the households and business groups. Our products are marketed in both domestic and international markets.
The manufacturing of wires & cables and electrical accessories & other allied products in India has been growing at a steady rate and is expected to increase further due to affordability and changing life styles of the people. As such, demand for our products has been increasing and therefore we have proposed to expand our manufacturing capacity so as to meet the increased demand both in domestic and foreign markets.
Our Company operates in competitive environment and has a number of organized players and very few unorganized players. Our peers who are engaged in the similar activity like that of ours are namely, M/s. Havells India Limited, M/s Anchor Electricals Private Limited, M/s V–Guard Industries Limited, etc. Our Company's major emphasis is on manufacturing of superior designed quality product at affordable price. Thus, due to consistent emphasis on quality and delivery, our Company has been receiving repeated orders from its dealer network.
4. Marketing Setup
Our Promoters have vast experience of marketing of wires and cables and electrical accessories & other allied products. They have been manufacturing and marketing these products for past over 35 years. We have a good reputation among our dealer network which consists of more than 2,000 in number. The sale price of the components to be manufactured is decided based on design complexities, material, process, quantity, period of supply, etc
5. Export obligation
As on the date, we do not have any export obligations.
• Established brand in North West India;
• Experienced management team;
• Organized and comprehensive product offering;
• Established reputation for quality products;
• Driving growth through innovation and marketing;
• Our relationship with customers;
• Our relationship with more than 2,000 dealers;
• Dedicated team of technical manpower;
• Player in regional market.
• Any avoidance of rules of Govt, caused under unavoidable circumstances may have an adverse impact on the project.
• The location of the unit is the hub of industry of the multiproduct category. This will cause a competition and that will help the customer to differentiate between the average and the best product. The importers will get variety of the products, which will be a healthy situation for the Industry ultimately.
• The Company has many opportunities in view of the increasing demand for wires & cables and electrical accessories.
• In the event there is any delay in the completion of the objects of this Issue it would in turn affect our revenues and results of operations.
The funds that we receive would be utilized for the objects of the Issue. The proposed schedule of implementation of the objects of the Issue is based on our management's estimates. If the schedule of implementation is delayed for any other reason whatsoever, including any delay in the completion of the Issue, we may face time and cost overruns and this may affect our revenues and results of operations.
• Our contingent liabilities, not provided for, if crystallized, could adversely affect our financial condition.
We have not provided for certain contingent liabilities which if materialized could adversely affect our financial position. The details of the same areas under:
• The loss of or shutdown of operations at our production facilities may have a material adverse effect on our business, financial condition and results of operations.
The breakdown or failure of our equipments and/ or civil structure can disrupt our production schedules, resulting in performance being below expected levels. In addition, the development or operation of our facilities may be disrupted for reasons that are beyond our control, including explosions, fires, earthquakes and other natural disasters, breakdown, failure or sub–standard performance of equipment, improper installation or operation of equipment, accidents, operational problems, transportation interruptions, other environmental risks, and labour disputes. Our production facilities are also subject to mechanical failure and equipment shutdowns. Our machineries may be susceptible to malfunction. If such events occur, the ability of our facilities to meet production targets may be adversely affected which may affect our business, financial condition and results of operations.
We thank our customers, vendors, investors and bankers for their intense support throughout the year. We place on record our appreciation of the contribution made by our employees at all levels. We thank the Government of India, particularly the Ministry of Commerce, Ministry of Finance, Ministry of Corporate Affairs, the Custom and Excise Departments, Income Tax Department, the Reserve Bank of India, the State Governments and other government agencies for their support, and look forward to their continued support in the future.
for and on behalf of the Board
Akshay Kumar Gurnani