TIME TECHNOPLAST LIMITED
ANNUAL REPORT 2011-2012
Your Directors have pleasure in presenting the Directors report on the
business and operations of the Company for the year ended on 31st March,
FINANCIAL RESULTS: (Rs. in Mn.)
Particulars Standalone Consolidated
2012 2011 2012 2011
i. Gross Income from Sales 9,942.87 8,805.99 15,401.58 12,833.89
ii. Net Income from Sales 9,207.39 8,218.93 15,281.91 12,752.68
iii. Other Income 58.42 63.64 39.15 22.70
iv. Total Income 9,265.81 8,282.57 15,321.06 12,775.38
v. Operating Expenditure 7,487.18 6,521.05 12,851.04 10,392.52
vi. Profit before Interest,
Depreciation & Tax 1,778.63 1,761.52 2,470.02 2,382.86
vii. Interest 444.56 318.11 684.68 451.24
viii. Depreciation 356.03 301.86 556.23 439.92
ix. Profit before Tax 978.04 1,141.55 1,229.11 1,524.73
x. Extraordinary item - - - 33.03
xi. Provision for Taxes 200.58 204.73 256.14 294.23
xii. Minority Interest
and shares of Loss/
[Profit) of Associates - - 23.26 58.84
xiii. Net Profit
for the Year 777.46 936.82 949.71 1,171.66
xiv. Deferred Tax (41.41) (35.45) (51.81) (61.52)
xv. Balance brought
forward from previous
year 3,521.85 2,843.98 4,150.61 3,325.88
xvi. Provision for
taxation of earlier
years 9.03 20.95 (8.76) 20.74
xvii. Amount Available
for Appropriation 4,266.93 3,766.29 5,039.74 4,456.77
a. Proposed Dividend 94.55 94.17 98.45 117.15
b. Tax on Dividend 15.34 15.27 15.97 19.01
c. Transfer to
General Reserves 135.00 135.00 131.50 170.00
d. Balance carried
to Balance Sheet 4,022.04 3,521.85 4,793.82 4,150.61
THE YEAR UNDER REVIEW:
Gross sales and other income for the consolidated entity increased to
Rs.15,402 Mn, as against Rs.12,833 Mn in the previous year, registered an
impressive growth of 20.01% .The Net Profit stood at Rs. 949.71 mn as
compared to the previous year Rs.1,171.66 Mn showing an decrease of 18.94%.
Gross sales and other income for the standalone entity increased to
Rs.9,942.87 Mn, as against Rs.8,805.99 Mn in the previous year, registered
a growth of 12.91%. The Net Profit at Rs.777.46 Mn as against Rs.936.82 Mn
represents an decrease of 17.01%, as compared to the previous year.
Your Directors are pleased to recommend 45 % Dividend ( being Rs.0.45 per
share) (Previous Year : 45% - final) on 210,11,77,500 Equity Shares of the
Company subject to the Approval by the Shareholders and this will absorb
about Rs.109.89 Mn including dividend tax and surcharge thereon (Previous
year : Rs.109.45 Mn).
MANAGEMENT`S DISCUSSION & ANALYSIS REPORT:
A detailed review of the progress of the Company and the future outlook of
the Company and its business, as stipulated under clause 49 of the Listing
Agreement with the Stock Exchanges, is presented in a separate section
forming part of the Annual Report.
Mr.Bharat Vageria, Mr. Sanjaya Kulkarni and Mr. K. N.Venkatasubramanian,
Directors of the Company retire by rotation and being eligible; offer
themselves for reappointment at the ensuing Annual General Meeting.
SUBSIDIARY COMPANIES, JOINT VENTURE AND CONSOLIDATED FINANCIAL STATEMENTS:
As a purposeful strategy, your Company carries all its business operations
through several subsidiary and associate companies which are formed either
directly or as step-down subsidiaries or in certain cases by acquisition of
a majority stake in existing enterprises.
* Excel Plastech Co Limited, Vietnam and QPACK Industries SDN BHD, Malaysia
for the manufacture of plastic products were incorporated through our 100%
subsidiary GNXT Investment Holding Pte, Ltd, Singapore.
* Time Technoplast Limited acquired the entire shareholding of GNXT
Investment Holdings Pte. Limited, Singapore from IKON Investment Hondings
* The entire shareholding of Technika Corporation FZE was transferred from
NED Energy Limited to Elan Incorporated FZE., Sharjah (wholly owned
* The entire share holding of Schoeller Arca Time Material Handling
Solutions Limited, India held by the Company was transferred to Schoeller
Arca Time Holdings Pte. Limited, Singapore as per the Joint Venture
In the current year, the company acquired 51% shareholding of Mauser
Holding Asia Pte Limited, Singapore from Mauser Holding Netherland BV
through GNXT Investment Holdings Pte. Ltd, Singapore ( a wholly owned
As required under the Listing Agreement with the Stock Exchanges,
Consolidated Financial Statement of the Company and all its subsidiaries
have been prepared in accordance with the Accounting Standards issued by
the Institute of Chartered Accountants of India, and show the financial
resources, assets, liabilities, income, profits and other details of the
Company, its associate Companies, its joint ventures and its subsidiaries
after elimination of minority interest, as a single entry.
As per the general exemption granted vide General Circular no 2/2011 dtd
8.2.2011 issued by the Ministry of Corporate Affairs, to all the companies
under the Sec 212 of the Companies Act, 1956 ,the Company has passed
necessary Board resolution for exemption for the year ended March 31, 2012
from attaching to its Balance Sheet, the individual Annual Reports of the
subsidiaries. A Consolidated Financial statement of the Company and all its
subsidiaries has been attached with the annual report of the Company. The
Annual Accounts of the subsidiary companies and the related detailed
information , shall be made available to the shareholders of the Company ,
seeking such information.
During the year under review, the Company has not accepted any deposits
within the meaning of Section 58-A of the Companies Act, 1956.
Your Company continues to emphasize on energy conservation at the early
stage of plant design and in selection of plant and equipment, electrical
motors /designs for optimizing energy consumption by installation of
necessary equipment to improve the power factor with a view to achieve
better energy efficiency at all levels of operations.
The Collaborators offer periodical training to improve the quality of the
Company`s products and performance to conform to the latest international
standards. Besides, employees of the Company have been attending in-house
training programs designed and developed with the help of Collaborators for
better understanding of the technology and the Collaborators continue to
express their full satisfaction and appreciation with the level of
technology absorption in the Company.
FOREIGN EXCHANGE EARNINGS & OUTGO:
Total foreign exchange earnings - Rs.819.28 Mn (including deemed exports)
Total foreign exchange outgo - Rs.3267.02 Mn (including value of imports on
QUALITY MANAGEMENT SYSTEM:
The Company`s products comply with the latest international standards in
quality and performance. All the major units of the company are ISO
Certified as on date.
The Statutory Auditors of the Company, M/s Raman S .Shah & Associates,
Chartered Accountants retire at the ensuing Annual General Meeting and
being eligible offer themselves for reappointment. The Company has received
a letter from to the effect that their appointment if made would be within
the prescribed limit under sec 224(1B) of The Companies Act 1956 ant that
they are qualified to be so appointed.
The Directors recommend the appointment of Raman S. Shah & Associates,
Chartered Accountants Mumbai as Statutory Auditors of the Company for the
financial year 2012-13 with the authority to the Board of Directors to fix
Cost Auditors : In terms of the Notification F No 52/26/CAB-2010 dated
January 2012 issued by the Ministry of Corporate Affairs, Government of
India, the Company has appointed Mr. Giri Krishna S. Manior as the Cost
Auditor for the audit of the Cost Accounting records for the financial year
2012-13. It is in the process of making necessary application to the
Central Government for seeking its approval to the appointment of Cost
During the year under review, your Company has taken adequate steps to
ensure that all mandatory provisions of Corporate Governance as stipulated
in clause 49 of the Listing Agreement have been complied with. A separate
Report on Corporate Governance along with the Auditors` Certificate on its
compliance is given in "Annexure" to this Report.
PARTICULARS OF EMPLOYEES:
Particulars of employees in accordance with the provisions of Section
217(2A) of the Companies Act, 1956 read with the Companies (Particulars of
Employees) Rules, 1975 as amended, are not given, as none of the employees
qualify for such disclosure.
EMPLOYEE STOCK OPTIONS SCHEME
Pursuant to the approval of the shareholders of the Company in the Extra
Ordinary General Meeting held on October 20, 2006, the Company has
implemented the TTL EMPLOYEES STOCK OPTION PLAN 2006 (ESOP plan). The
number of shares offered under the said scheme was 10,50,000 equity shares
of Rs.10/- each ( now 105,00,000 equity shares of face value Rs.1/-, after
the equity shares of Rs.10/- each were split into 10 equity shares of
Rs.1/- each on the Record Date of 06th November, 2008 ).
The Compensation Committee approved the initial grant of 7,37,200 options
of Rs.10/- each ( now 73,72,000 options of Rs.1/- each), to various
employees of the company, under the said ESOP Plan .
During the Financial Year 2011-12:
a. The Compensation Committee extended the exercise period upto 31st March
2012 for the options vested on 15.11.2007.
b. The Company allotted 8,52,750 equity shares of Rs.1/- to all those
eligible employees who exercised their options under the TTL ESOP - 2006
c. The Compensation Committee granted 600,000 options to independent
PERSONNEL AND INDUSTRIAL RELATIONS:
The relations with the employees were cordial during the year.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217(2AA) of the Companies Act,
1956 with respect to Directors` responsibility statement, it is hereby
a. That in the preparation of the annual accounts for the financial year
ended 31st March 2012, the applicable accounting standards have been
followed along with proper explanation relating to material departures;
b. 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 a true and fair view of the state of affairs of the
Company at the end of the financial year and of the profit of the Company
for that period;
c. That the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
d. That the Directors had prepared the accounts for the financial year
ended 31st March 2012, on a "going concern" basis.
Your Directors place on record their sincere appreciation to the employees
of the Company who worked untiringly and relentlessly. Your Directors are
grateful to shareholders, collaborators, customers and suppliers of the
Company for their valuable support. Above all, the Directors are indebted
to Financial Institutions, Banks, Government and semi Government
Authorities without whose help the Company could not have come this far.
For and on behalf of the Board
ANIL JAIN BHARAT VAGERIA
MANAGING DIRECTOR DIRECTOR
Date : 26th May, 2012
MANAGEMENT DISCUSSION & ANALYSIS
The world witnessed fair bit of challenges during fiscal 2011-12 with the
deepening debt crisis in Europe, political upheavals in parts of Middle
East and rising tensions between Iran and the West. These events had a
significant impact on global risk appetite and crude oil prices, though
towards the end of the year, there have been liquidity infusions by
European central banks and this combined with recovery in the U.S. have
revived global risk appetite and emerging markets such as India may
benefit. India also witnessed its share of the challenges during fiscal
2011-12 with macro headwinds such as high inflation, currency depreciation
and deceleration in GDP growth rates. During the year, the Reserve Bank of
India hiked repo rates several times to combat inflation. The high interest
rates did not bode too well for industrial production as reflected in the
deceleration of IIP and GDP growth. GDP growth rate slowed down from 8.4%
in FY11 to 6.9% in FY12. The country was swept by persistent double digit
inflation during the year and WPI based inflation remained close to 10% for
most part of the year.
Inspite of these blips, India`s long term growth story continues to remain
intact. India which was the tenth largest economy in terms of Purchasing
Power Parity (PPP) in 1991 has even overtaken Japan and is now the third
largest economy in terms of PPP. As per a recent study by Knight Frank and
Citi Private Bank, the North American and Western European share of world
real GDP will fall from 41% to 49% in 2050. China will overtake the U.S. to
become the world`s largest economy by 2020, which in turn will be overtaken
by India in 2050.
Time Technoplast Ltd (TimeTech) is an innovation-led market leader in rigid
polymer products. The Company has an excellent product repertoire catering
to fastest growing segments of the economy; Industrial Packaging, Technical
Products (Automotive components and Lifestyle Applications),
Infrastructure, Material Handling Systems and Composite Cylinders.
TimeTech possesses a consolidated technological platform encompassing
polymer processing technologies i.e. blow molding, extrusion and injection
molding. The Company manufactures a wide array of products with 25 well
recognized brands using these well recognized polymer based technologies.
It has a remarkable cost efficient model as the locations of manufacturing
facilities are closer to demand.
The Company has an in-house R&D team and employs the most advanced polymer
processing technologies. The Company`s multi-location manufacturing set up
comprises of 14 locations across India and 14 Global locations. TimeTech
has more than 500 institutional customers and a well-knit dealer network
across more than 350 cities and towns in India alone . The Company has a
widespread marketing and distribution network in India and overseas.
TIMETECH`S HIGH GROWTH VERTICALS: Industrial Packaging:
Time Tech`s Industrial packaging range of products (TECHPACK) is the
outcome of technological perfection honed over the years. Meeting the
exacting needs of demanding customers has led to industry breakthroughs in
product development. The products Offerings include Narrow mouth, Wide
mouth and Open top drums, Conipails and Jerry cans of various sizes
conforming to internationally acclaimed designs.
Another powerhouse from the Time Tech stable is GNX brand of IBCs
(Intermediate Bulk Containers). These are designed with added features for
efficient performance even in rugged terrain and rough handling conditions.
Time Mauser Industries Pvt. Ltd., India - JV between TimeTech and Mauser
was engaged in manufacture of Mauser design of IBCs and Steel drums. With
mutual consent, the JV`s business has since been reorganized to include
only Steel drums. However, TimeTech has commenced manufacture of its own
design GNX IBCs in India.
A. Automotive Components
TimeTech provides anti-spray rain flaps, radiator tanks, fuel tanks and air
ducts under this vertical. Time Tech`s automotive products have uniqueness
of offering innovative solutions. 3S and CLEAR PASS rain flaps have been
made mandatory in many countries, including India. De-aerating tank (DAT)
is another innovative solution to prevent engine overheating. Diesel Fuel
tanks in Plastic were considered to be a part that needed high technology
for changing over from Metal. The technology is available with a very few
around the world. Time Tech broke the myth by successfully designing and
developing indigenously Plastic Fuel Tank ( PFTs) for Indian commercial
vehicles. The use of PFT results in reduced weight, noise and harshness
(NWH) of the vehicle thereby improving fuel efficiency and drive quality.
TimeTech provides Artificial Turfs and Chairs under this vertical. Company
acquired Plastic Products division of Solutia Inc& got access to technology
and know-how for manufacture of number of high tech products including
AstroTurf for indoor and outdoor application, Mats for Pet care, Incubator.
During the year, Company implemented the Astroturf manufacturing facility
in Thailand which caters to the demand of Astroturf products in ASEAN
Time Tech`s technology capability, quality of goods coupled with an
attractive price point prompts good volumes for its product offerings.
The infrastructure division has a wide range of products catering to myriad
industries. The product bouquet includes High Pressure Pipes, Prefabricated
Shelters, Waste/Refuse Bins . The High Pressure Pipes cater to the
requirements of water supply management, Sewerage & drainage systems,
effluent treatment plantsand Telecom ducting etc. During the year, we
started HDPE pipes manufacturing from Ghummidipoondi ( Near Chennai ), Amta
(near Kolkotta) and Gadarpur (near Pantnagar)locations & offer the product
at competitive costs in the region markets.
Prefab Shelters has wide range of application, such as site offices,
security cabins, workshops, mobile shelters, and health center and has huge
potential for supplies under social infrastructure schemes initiated by
Dumpo Bins are European designed and EN standards approved waste bins. They
are the first indigenously manufactured waste management binns in the
Energy Storage Devices comprise of VRLA batteries for the telecom sector &
UPS, Inverter & Hybrid batteries for Industrial Applications. With the
slowdown in the telecom segment, battery business was adversely affected.
However, we are gradually de-risking the dependence on telecom segment by
augmenting capacity for applications into Industrial applications like UPS,
Inverters and Railways etc.
New Products Division:
A. Material Handling Division (returnable Transit packaging Solutions)
Under this vertical, we manufacturer vast range of stackable, nestable and
foldable containers, plastic pallets for use in various Industries like
Automotive, retail, Fruits & Vegetables, Food Processing etc. The products
and solutions offered generate savings year after year due to its sturdy
construction which offers it longer life multiple users. The solution
offered reduces costs at various stage of the supply chain thus providing
an excellent Return on Investment.
B. Composite Cylinders
Composite Gas Cylinders offer tremendous business opportunities across the
world but more particularly in Asia and Middle East. Owing to its superior
performance lighter weight, explosion proof, translucent, non-corrosive,
these high tech Composite Cylinders are all set to replace a mammoth
population of metal cylinders currently in use. Several gas distributors in
Middle East, Far East & Brazil have evinced huge interest in introducing
Composite Cylinders as a replacement of metal cylinders. TimeTechhas now
fully functional astate-of-the-art production facility in India and has the
requisite product approvals already from international testing/
accreditation agencies for making supplies of Cylinders. On the other side,
we have relocated our Czech Republic Operations to Bahrain so as to serve
our Middle East markets efficiently where most of the customers are
A key element of Time Tech`s growth is its strong commitment to the global
The groups` emergence as an industry change and thought leader, has
resulted over the years owing to its impeccable strategy and commercial
sagacity that has pre-empted needs, foreseen changes on the business
horizon and harnessed technology to offer quality coupled with flawless
service consistently for nearly two decades.
The Company has now manufacturing facilitiesin North China (Tinajin) South
China (Guangzhou), Indonesia, South Korea, Vietnam, Egypt, Taiwan,
Thailand, UAE, Romania, Poland and Bahrain.
During the year, Company consolidated its presence in the Thailand market
by acquiring remaining 51% shareholding from Mauser Group in Pack Delta
Public Company Limited.
Whereas Asia accounts for almost 50% of the Global Industrial packaging
requirements, the penetration levels of polymers drums in most of these
markets is still below 10% except India, where we have seen the penetration
level going upto 50%.
Therefore , Asian markets offer us tremendous growth opportunities. Our
growth strategy for the years ahead is to replicate the Indian model in key
Asian countries where we have set up the operations.
* Polymer Focus: TimeTech develops value added polymer products in certain
functional areas. An emphasis on polymer products and processes drives the
Company to develop innovative products given the expansion in its
technology platform. Consequently the Company is able to scale to new
heights via achieving economies of scale and cost efficiencies. TimeTech is
well positioned to work on new growth opportunities.
* Strong Captive Machine Building Unit: TimeTech has in recent years built
up strong in-house Machine Building capabilities. This captive machine
building activity reduces the dependence on outside vendors for these
polymer based equipments. Moreover it enables the Company to manufacture
customized machines as per the process and product requirements.
* Research & Development Capabilities: TimeTech has a dedicated R&D team in
house to consistently design improved technologies, better processes and
bear the user friendliness touch. Moreover the R&D is persistently working
towards creating equipments in house enabling tailor made machines as per
the process and product requirements. Such positive traits have enabled the
Company to create value added products facilitating Time Tech to further
explore new lines of business.
* Professional Management: TimeTech has a team of well qualified and
experienced professionals with proven track record. This professional
management team strives to continue taking effective steps in order to
create new milestones.
* Consolidated Technology Platform: Time Tech has developed a platform
comprising the basic polymer technology blowmoulding, injection moulding
and extrusion. The Company`s majority products use one or combination of
these technologies. Although Time Tech`s products are different from each
other and cater to different market segments, at the same time these
products have a lot in common in terms of polymer, process and technology.
* Diversified Product Portfolio: Time Tech offers a wide array of products
catering to the requirements of the high-growth sectors such as industrial
packaging, lifestyleautomotive components and infrastructure segments. The
Company has created a diversified product bouquet in order to insulate
itself from the dependence on a single vertical, industrial packaging.
Industrial packaging segment which contributed about 95% of total revenue
over seven years back now contributes 60%.
* Recognized Brands: In a short span of time, Time Tech has built well
recognized and well accepted brands for each of its products giving an edge
over others. Widespread marketing & distribution network: The Company has
built on its marketing and distribution network across 350 cities and
towns. Time Tech sells to retail as well as institutional customers (more
* Sourcing Ability: Polymers comprises the major part of raw material cost
which experiences wide fluctuations in the prices. Time Tech has developed
relationships with polymer suppliers in India and overseas. TimeTech`s vast
experience and size of operations in the polymer business facilitates the
Company to strategically source inputs at appropriate time and at
* Multi-locational Manufacturing Set Up: Time Tech has a manufacturing set
up comprising of 14 locations in India and 14 Global manufacturing
* Cost Efficient Model: Time Tech`s manufacturing facilities are located in
several markets usually closer to demand. Such a set-up is beneficial to
Time Tech in a big way as the products are bulky in weight and occupy a lot
of space once manufactured. Consequently closer to the demand destination
works in great favor to Time Tech.
* Improved Value Chain: Time Tech believes in sharing its goals with every
integral member of the value chain i.e. customers, vendors, bankers,
employees, shareholders, etc. Such a smooth flow of information across the
stakeholders and the Company`s personnel reaffirms the long term
association between the stakeholders and the Company.
* Capacity Addition In Feedstock Sector: A continuous availability of
polymers at reasonable prices and the Company`s ability to pass on such
fluctuation to the Company`s users remains a key to our success, growth and
prosperity. Polymers prices have remained in range bound as compared to the
metal prices & thus gives us an opportunity to price the Polymers drums at
more competitive prices to replace metal drums.
* Inorganic Growth Route: Time Tech on a consistent basis evaluates the
available opportunities via the inorganic growth mode and aims to make the
most of the feasible opportunities drawing more synergic operations for the
* Increasing presence in international key markets: Time Tech enjoys
formidable market share and consequently has successfully consolidated its
leadership position in India. The Company is now all set to leverage its
position in high demand locations i.e. Asia, Far East and Africa. Time Tech
is looking forward to capitalize on the growth opportunities prevailing in
several of these key markets.
Adverse development as the entire manufacturing capacity is polymer-based
since polymer technology and innovation pertain to all our businesses, any
adverse development in one or more of these areas could be an area of
FINANCIAL PERFORMANCE FOR THE YEAR:
Consolidated net revenues for the year stood at Rs. 15,401 million. This
is 20.01% higher than net revenues of Rs.12,833 million in FY2011. This
significant increase is primarily driven by strong performance in all the
major segments of Time Tech businesses.
EBITDA amounted to Rs. 2,470 million, a growth of 3.65% over the Rs.2,383
million reported last year while the Net profit de-grew by 19.10% to Rs.898
million from Rs. 1,110 million last year.
For the year, the company has maintained dividend @ 45 % as against the
previous year of 45 %. Profit & Loss Statement for the year ended 31st
(Rs. in million)
Particulars FY`2012 FY`2011 Shift %
Net sales 15,321 12,775 19.92%
EBITDA 2,470 2,383 3.65%
% of EBITDA 16.12 18.65
Profit Before Tax 1,229 1,525 -19.41%
Profit After Tax* 921 1,169 -21.21%
Minority Interest 23 59 -61.02%
Net Profit* 898 1,110 -19.10%
During the year , Company had pressure on EBITDA margins due to adverse
impact of the foreign exchange on account of the import of raw materials
and increase in the Other Expenditure relating to overseas greenfield new
projects which have been commissioned in last six months whereby while the
fixed expenditures have been fully expensed out, optimum revenues shall be
reached in the coming years. Further, decline in the Net Profit is
attributed to the increase in the cost of borrowings. Average cost of
borrowings during the year ended 31st March 2012 have gone up by 200 bps
compared to the previous year.
HUMAN RESOURCES OVERVIEW:
As an organization, Time Tech is working towards increasing the diversity
of its leadership group, making conscious efforts to build an inclusive
workplace that promotes cultural agility, global mindset and diversity of
experience and thoughts.
Given the company`s increased global footprint, the hiring process has also
been stepped up to hire talent from outside India. TimewTech provides
global experience to its managers through transfers to the international
Business Division and creating a formal interaction forum.
The Company recognize the value of its workforce for driving continuous
growth. A well drawn-out recruitment policy, clearly defined roles and
responsibilities, individual performance management systems and performance
based compensation policies facilities career progression of our people and
encourage innovative thinking. The Company has also identified areas for
training opportunities to enhance human efficiency and accelerate business
To meet the human resource needs of expansion and diversification plans, a
large number of executives have been inducted at different levels. The
organizations goals, resources and programs are aligned with the employee`s
aspirations and vice-versa, which has resulted in the improved business
performance of the Company.
The industrial relations, during the year under review remain cordial.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company`s internal audit system is geared towards ensuring adequate
internal controls to meet the increasing size and complexity of business
for safeguarding the assets of the Company. Identifying weakness and areas
of improvement and to meet with all compliance.
The internal audit program focuses primarily on checks and controls on
systems and processes, monitoring compliances, continuous upgrade of
controls and the current business risk assessment. This process enables
reporting of significant audit observations to the Audit Committee. The
Audit Committee reviews the audit observations and monitors the
implementation through action reports taken.
During the year, the leading division-wise business risks of the Company
covering all the divisions were updated. The Audit Committee recommends
risk mitigations initiatives acted upon by the management and other
Any statements made in this report relating to Company`s perception of
future outlook, objectives, expectations etc. may be considered as forward
looking within the meaning of applicable laws and regulations which may
differ from the actual results, based on circumstances.