DEAR MEMBERS
Your Directors hereby submit the Forty-Five Annual Report together with
the Audited Financial Statements of your Company for the Financial Year ended 31st
March 2023.
FINANCIAL RESULTS
The Company's financial performance for the year ended on 31st
March 2023 is summarized below:
(Rupees in Lakhs)
Particulars |
For the Financial year ended on 31st
March 2023 |
For the Financial year ended on 31st
March 2022 |
Revenue from Operations |
46,029.66 |
45,297.87 |
Other Income |
445.62 |
281.65 |
Total Income |
46,475.28 |
45,579.52 |
Earnings Before, Interest, Tax, Depreciation and Amortization
(EBITDA) and exceptional items |
632.47 |
1,272.27 |
Finance cost |
59.07 |
76.41 |
Depreciation & Amortization expense |
201.97 |
228.10 |
Profit before tax and exceptional item |
371.43 |
96776 |
Exceptional item |
724.39 |
- |
Provision for Tax Expenses |
263.93 |
200.67 |
Profit After Tax |
831.89 |
767,09 |
Other Comprehensive Income, net of tax |
(0.61) |
(13.91) |
Total Comprehensive Income |
831.28 |
753.18 |
Earnings per Equity share of Rs.2/- Basic (Rs.) |
1.52 |
1.43 |
Earnings per Equity share of Rs.2/- Diluted (Rs) |
1.52 |
1.43 |
FINANCIAL HIGHLIGHTS AND STATE OF AFFAIRS
Your Company has gone through tough challenges during the year, the
high inflation and volatility in the raw material prices lead to price instability which
impacted the consumer demand in both sewing machines and home appliances. In addition, the
expected correction in the prices of raw material anticipated initially presented an
opportunity for us to improve profitability. However, Company and trade partners carrying
high-cost inventory, resulting in immense pressure on our margins due to our inability to
retain higher prices, the efforts of your Company have always been put towards
strengthening the fundamentals of the Company's business with corrective measures followed
by the strategies for the long-term and sustainable growth while protecting the capital
and the employees.
The Company's revenue at Rs. 464.75 Crores in the year under review
remained almost flat had grown by 2% over the previous FY 2021-22. While the sewing
machines business grown by 2% mainly due to change in the product mix the home appliances
business remained flat grown marginally by 1%. The sale of Zig Zag sewing machines which
has been the most profitable business of the Company, recovered and grown 15% in FY
2022-23 which suffered a major setback due to inadequate supplies from Singer in the
previous year FY 2021-22 as there had been a disruption in their production facilities
caused by Covid induced restrictions. The industrial sewing machine business with the
lower base grown 77% over the previous year FY 2021-22. The sewing machines business
suffered more of Straight Stitch machines due to cost/ price challenges more prominently
across all sales channels. In the home appliances business, the efforts to protect gross
margins through price increases in these highly price sensitive markets led to lower
turnover in this segment.
The Profits from operations during the year FY 2022-23 were impacted
due to lower revenue and operating margins from the Home Appliances business. The
mandatory transition to BEE star rated fans w.e.f 1st January 2023 had caused
the Company to destock all the Non BEE rated fans during the Q3 FY 2022-23 by compromising
margins on this category.
The Company Operational profits during the year FY 2022-23 were also
impacted due to higher expense on Trademark license fee in order to comply with the
minimum royalty condition stipulated in the General Trademark License Agreement and higher
spend on advertisement and sales promotion as a part of strategy than the previous FY 2021
- 22.
The Company's Profit after tax for the FY 2022-23 is Rs 8.3 crores as
against Rs 77 crores in the previous FY 2021-22. This year profit includes exceptional
income from sale of its idle land and building located in Jammu for Rs. 10.4 crores and
the gain of Rs. 72 crores (net of tax Rs. 5.3 crores). As of now the Company's priorities
are to align excess inventories to our normal levels which could not be moved as expected.
Your Company has embarked upon the plans to work on innovation and
value engineering on straight stitch conventional sewing machines and target to offer
better machines with the objective to capture large market share in the overall industry.
Company plans to focus to grow industrial sewing machines segment by introducing the
efficient sewing machines at reasonable prices to compete and grow the overall sewing
machines business. The strategies are being put in place to grow the Company's businesses
in sewing machines and home appliances with specific focus to improve the profitability.
The Company is focusing to accelerate the sales of Zig Zag sewing machines. The Company is
also growing its Industrial sewing machines business amidst the growing demand for these
machines. Also, in home appliances segment, the Company have decided to focus upon the
selected categories from the range of appliances currently available, and grow them
substantially and make their contribution to the turnover of home appliances meaningful
and eliminate categories/sales channel contributing very thin margins.
The State of Affairs of the Company is detailed in the 'Management
Discussion and Analysis' section which forms part of this report.
HUMAN CAPITAL
Relations with employees continued to be cordial and harmonious. The
Human Resource policies of the Company are aimed at attracting, motivating, and retaining
employees at all levels.
CHANGE IN THE NATURE OF BUSINESS
During the year under review, there has been no change in the nature of
business of the Company.
DIVIDEND
The Board of Directors has not recommended any dividend for the
Financial Year 2022-23 with a view to the expanded operation and future expansion plans of
the Company.
TRANSFER TO RESERVES
During the year under review, there is no transfer of funds to the
Company's General Reserve Account.
SHARE CAPITAL
During the Financial Year 2022-23, the Authorised Share Capital of the
Company was reclassified by cancelling the unused/unissued preference share capital of Rs.
5,00,00,000/- (Rupees Five Crore Only) divided into 5,00,000 (Five Lakhs) redeemable
preference shares of Rs. 100/- (Rupees One Hundred Only) each and to create additional
2,50,00,000 (Two Crore Fifty Lakhs) equity shares of face value of Rs. 2/- (Rupees Two
Only) each with existing 7,50,00,000 (Seven Crore Fifty Lakhs) Equity Shares of Rs.2/-
(Rupees Two Only) aggregating to Rs. 15,00,00,000/- (Rupees Fifteen Crores Only) each to
redefine the Authorised Share Capital of the Company to Rs. 20,00,00,000 (Rupees Twenty
Crore Only) divided into 10,00,00,000 (Ten Crore) Equity Shares of Rs. 2/- (Rupees Two
Only). Aforesaid, reclassification was duly approved by the members of the Company by
passing Ordinary Resolution through postal ballot on 16th January 2023.
During the year under review, the Company's paid up share capital has
also been increased by issuing 74,77,364 (Seventy Four Lakhs Seventy Seven Thousand Three
Hundred and Sixty Four) Equity Shares of the Company having face value Rs. 2/- (Rupees Two
Only) each for Rs. 76/- (Rupees Seventy Six Only) each including premium of Rs. 74/-
(Rupees Seventy Four Only) per Equity Share aggregating to an amount Rs. 56,82,79,664/-
(Rupees Fifty Six Crore Eighty Two Lakhs Seventy Nine Thousand Six Hundred Sixty Four
Only) on a preferential basis for cash consideration. Accordingly, as on 31st
March 2023, the equity paid-up share capital of the Company is Rs. 12,23,86,078 (Rupees
Twelve Crore Twenty Three Lakhs Eighty Six Thousand Seventy Eight Only).
The Company has not issued shares with differential voting rights or
sweat equity shares during the year 2022-23. As on 31st March 2023, none of the
Directors of the Company hold any instruments convertible into equity shares of the
Company.
Employee Stock Option Scheme
Singer Employee Stock Option Scheme 2023 ('Scheme') was approved &
recommended by the Board of Directors of the Company on 5th April 2023 for the
issuance and allotment of options exercisable into, not more than 36,00,000 (Thirty Six
Lakhs) equity shares having face value of Rs. 2/- (Rupees Two Only) each to eligible
employees of the Company. The ESOP Scheme 2023 will be administered by the Nomination and
Remuneration Committee of the Board. On 28th April 2023, the Scheme was put
forward to the members of the Company for their approval through Postal Ballot Notice
dated 5th April 2023. As on the date of this report, the members are yet to
give their assent/dissent on the implementation of the Scheme.
Details regarding the Scheme is uploaded on the Company's website and
can be accessed at https://singerindia.com/ investors/draft-singer-india/
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL
POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE
COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT.
During the year under review, no material changes and commitments
affecting the financial position of the Company occurred between the end of the financial
year to which these financial statements relate and the date of this Report.
TRANSFER OF UNPAID DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND
(IEPF)
Pursuant to the provisions of Section 124 of the Act, Investor
Education and Protection Fund Authority (Accounting, Audit Transfer and Refund) Rules,
2016 ("IEPF Rules") read with the relevant circulars and amendments thereto, the
amount of dividend remaining unpaid or unclaimed for a period of seven years from the due
date is required to be transferred to the Investor Education and Protection Fund
("IEPF"), constituted by the Central Government, Further, according to the
Rules, the shares in respect of which dividend has not been paid or claimed by the members
for seven consecutive years or more shall also be transferred to the demat account created
by the IEPF Authority,
The Company had sent individual notices and also advertised in the
newspapers seeking action from the members who have not claimed their dividends for seven
consecutive years or more, Thereafter, the Company had, accordingly, transferred Rs,
1,51,72750/- being the unpaid and unclaimed dividend amount pertaining to financial year
2014-15 and transmitted 6,690 (on account of Unclaimed Dividend for FY 2014-15) Equity
Shares of the Company into the DEMAT Account of the IEPF Authority held with CDSL (DPID/
Client ID 1204720013676780) during the financial year 2022-23 in terms of the provisions
of Section 124(6) of the Companies Act, 2013 and the IEPF Authority (Accounting, Audit,
Transfer and Refund) Rules, 2016, as amended from time to time,
Members whose shares, unclaimed dividend, have been transferred to the
IEPF demat Account or the Fund, as the case may be, may claim the shares or apply for a
refund by making an application to the IEPF Authority in Form IEPF - 5 (available on
http://www.iepf, gov,in) along with requisite fee as decided by the IEPF Authority from
time to time, The member can file only one consolidated claim in a financial year as per
the IEPF Rules,
The Company will be transferring the final dividend and corresponding
shares for the financial year 2015-16 within statutory timelines, Members are requested to
ensure that they claim the dividends and shares referred above before they are transferred
to the said Fund, The due dates for the transfer of unclaimed dividend to IEPF are
provided in the report on Corporate Governance, Details of shares/shareholders in respect
of which dividend has not been claimed, are provided on the website of the Company at
www,singerindia,com, The shareholders who have not encashed their dividend warrants for
the financial year 2015-16 or any subsequent year are requested to lodge their claims for
claiming unclaimed Dividend, The shareholders are encouraged to verify their records and
claim their dividends of all the earlier seven years, if not claimed,
DEPOSITS
During the year under review, the Company has not invited/ accepted
deposits falling within the ambit of Section 73 of the Companies Act, 2013 and rules made
thereunder,
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
During the year under review, your Company has not made any loan, or
given any guarantee or provided any security and/or made investments covered under the
provisions of Section 186 of the Companies Act, 2013 read with rules made thereunder,
Therefore, the provisions of Section 186 of the Companies Act, 2013 are not applicable to
the Company,
SUBSIDIARY COMPANY AND CONSOLIDATED FINANCIAL STATEMENT
Brand Trading (India) Private Limited ("BTIPL"), is a wholly
owned subsidiary of the Company and is a non-material, unlisted subsidiary of the Company
pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015,
On 13th November 2019, the Board of this subsidiary company
accorded its consent for the commencement of voluntary liquidation of its affairs under
Section 59 of the Insolvency and Bankruptcy Code, 2016 read with Insolvency and Bankruptcy
Board (Voluntary Liquidation Process) Regulations, 2017, subject to the approval of its
shareholders, creditors, and any other concerned party, Further, the subsidiary, in its
Extraordinary General Meeting held on 31st January 2020, formally resolved to
wind up the operations and accordingly, appointed the liquidator, Financial information of
the subsidiary had been consolidated till 31st January 2020 on a line-by-line
basis and intra-group balances and transactions were eliminated upon consolidation for the
period ended on that date and accordingly, consolidated financial results had not been
prepared and presented since the quarter ended 30th June 2020, As at 31st
March 2023, the liquidation proceedings are still under process,
During the year under review, your Company does not have any Associate
or Joint Venture Company, Considering the above your Company is not required to
consolidate its accounts with any other Company,
STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF
SUBSIDIARIES/ ASSOCIATE COMPANIES/ JOINT VENTURES
Statement pursuant to Section 129(3) of the Companies Act, 2013 related
to Subsidiary Company as 31st March 2023 in Form AOC-1 is annexed to this
Report as Annexure - I,
DIRECTORS AND KEY MANAGERIAL PERSONNEL
An active and informed Board is a pre-requisite for strong and
effective corporate governance, The Board plays a crucial role in overseeing how the
management safeguards the interests of all the stakeholders, The Board ensures that the
Company has clear goals aligned with the shareholders' value and growth, The Board is duly
supported by the Chairman, Managing Director and Senior Management Team in ensuring
effective functioning of the Company,
As on 31st March 2023, the Board was comprised of 9 (nine)
Directors, out of which 1 (one) was Executive Managing Director, 4 (four) were
Non-Executive, Non-Independent Directors and 4 (four) were Non-Executive Independent
Directors (including one Woman Independent Director),
Further, during Financial Year 2022-23 and till date of this report,
following changes occurred in Directorship and Key Managerial Personnel positions of the
Company:
Mr, Hetal Madhukant Gandhi (DIN: 00106895) and Mr, Maneesh
Mansingka (DIN:00031476) was appointed as an
Additional Directors (Non-Executive Non-Independent) on the Board of
the Company with effect from 24th August 2022. Their appointment as Director
was later approved by the members of the Company at its 44th Annual General
Meeting ("AGM") held on 26th September 2022.
Mr. Rajesh Relan (DIN: 00505611) was appointed as Additional
Director (Non-Executive Independent Director) on the Board of the Company with effect from
23rd March 2023. His appointment as Director is proposed before the members of
the Company through Postal Ballot notice dated 5th April 2023.
Mr. Rakesh Khanna (DIN: 00266132) was appointed as an Additional
Executive Vice Chairman & Managing Director of the Company on the Board of the Company
with effect from 5th April 2023. His appointment as Executive Vice Chairman
& Manging Director is proposed before the members of the Company through Postal Ballot
notice dated 5th April 2023.
Mr. Rajeev Bajaj has stepped down from the position of Managing
Director of the Company with effect from 30th April 2023 and accepted a more
active advisory role in the Company with effect from 1st May 2023 to help the
Company in strategic and regulatory affairs. Apart from this, there is no other material
reason for his resignation.
Due to personal commitments, Ms. Priyanka Gandhi stepped down
from the position of Company Secretary & Compliance Officer of the Company w.e.f.
closure of business hours on 15th February 2023 temporarily and in her place,
Ms. Rickee Bisla was appointed as an Interim Company Secretary & Compliance Officer of
the Company w.e.f. 16th February 2023.
In terms of the provisions of Section 152 of the Act, Ms.
Kalliopi Tsiagka (DIN: 09053187), Non-Executive Non-Independent Director of the Company,
is liable to retire by rotation at the ensuing AGM of the Company. Being eligible, she has
offered herself for re-appointment. The Board members recommends her appointment at the
ensuing AGM for due consideration and approval of members of the Company.
Further, apart from the above stated facts, there was no change in
composition of the Board of Directors.
All Directors of the Company have provided declarations to the fact
that they are not debarred from holding the office of Director by virtue of any SEBI order
or any other Statutory Authority as required under the Circular dated June 20, 2018 issued
by BSE.
The Board is of the opinion that independent directors as well as the
director(s) proposed to be appointed/re-appointed, possess the requisite qualifications,
experience and expertise and hold high standards of integrity, which are beneficial to the
Company and its stakeholders. The list of key skills, expertise and core competencies of
the Board is provided in the CG Report which forms an integral part of this Annual Report.
DIRECTORS AND OFFICERS LIABILITY INSURANCE (D&O)
As per the provisions of the Listing Regulations, the Company has taken
a Directors and Officers Liability Insurance (D&O) on behalf of all directors
including Independent Directors and Officers, of the Company for indemnifying any of them
against any liability alleged for any negligence, default, misfeasance, breach of duty or
breach of trust.
CORPORATE GOVERNANCE
As required under Regulation 34 read with Schedule V of Securities
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 (hereinafter called "the Listing Regulations/SEBI (LODR) Regulations,
2015"), a separate report on Corporate Governance is enclosed as a part of this
Annual Report. The Company has complied with the Corporate Governance requirements as
stipulated under the Listing Regulations except one inadvertent non-compliance duly
reported in Corporate Governance report. A certificate from M/s. B S R & Co. LLP,
Chartered Accountants, the Auditors of the Company, confirming the compliance of the
conditions of Corporate Governance is annexed and forms part of the Annual Report.
DECLARATIONS BY INDEPENDENT DIRECTORS
Your Company had received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of independence as
prescribed under Section 149, Schedule IV of the Companies Act, 2013 along with rules
framed thereunder and Regulation 16 & 25 of the Listing Regulations and are not
disqualified to act as Independent Directors. Also, in the opinion of the Board of the
Company, all Independent Directors of the Company have integrity, expertise, experience as
prescribed under the Companies (Appointment and Disqualification of Directors) Rules, 2014
read with the Companies (Accounts) Rules, 2014 (including amendment thereof). All the
Independent Directors of the Company have complied with the provisions of Rule 6 of
Companies (Appointment and Qualification of Directors) Rules, 2014 with respect to their
registration in databank.
Independent Directors are also familiarized with their roles, rights
and responsibilities as well as with the nature of industry and business model through
induction program at the time of their appointment as Directors and through presentations
on economy & industry overview, key regulatory developments, strategy and performance
which are made to the Directors from time to time.
BOARD MEETINGS
During the year under review, the Board of Directors of the Company met
nine (9) times. The details of meetings of the Board of Directors held during the
financial year 2022-23 and attendance thereof are disclosed in the Corporate Governance
Report, which forms an integral part of this report.
DIRECTORS' RESPONSIBILITY STATEMENT
On the basis of compliance certificates received from the executives of
the Company & subject to the disclosures in the financial statements for the financial
year ended 31st March 2023, in terms of the provisions of the Companies Act,
2013, the Directors confirm that:
a) in the preparation of the annual accounts for the year ended on 31st
March 2023, the applicable accounting standards have been followed along with proper
explanation relating to material departures, if any;
b) appropriate accounting policies have been selected and applied
consistently and judgments and estimates made are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company as on 31st March 2023
and of the profit/loss of the Company for the period ended 31st March 2023;
c) proper and sufficient care has been taken 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;
d) the annual financial statements have been prepared on a going
concern basis;
e) the Company is following up the proper internal financial controls
and such internal financial controls are adequate and are operating effectively; and
f) the Company has devised proper systems to ensure compliance with the
provisions of all the applicable laws and that such systems are adequate and operating
effectively.
PERFORMANCE EVALUATION
In compliance with the Companies Act, 2013 and Regulation 17 of Listing
Regulations the Board adopted a formal mechanism for evaluating its performance and as
well as that of its Committees and individual Directors, including the Chairman of the
Board. The manner in which the annual performance evaluation has been carried out has been
explained in the Corporate Governance Report.
The evaluation criteria of the Company can be accessed at
https://singerindia.com/wp-content/uploads/2019/07/Board-Diversitv-
policy-and-evaluation-criteria.pdf.
AUDIT COMMITTEE
The details pertaining to the composition of the Audit Committee are
disclosed in the Corporate Governance Report, which is an integral part of this report.
All the recommendations of the Audit Committee have been duly accepted by the Board
whenever made by the Committee during the year.
NOMINATION AND REMUNERATION POLICY
The powers, role, and terms of reference of the Nomination and
Remuneration Committee covers the areas as contemplated under Section 178 of the Companies
Act, 2013 and Regulation 19 of the Listing Regulations. The role includes formulation of
criteria for determining qualifications, positive attributes and independence of a
director and recommending to the Board a policy relating to the remuneration for the
directors, key managerial personnel and other employees, formulation of criteria for
evaluation of Independent Directors and the Board, devising a policy on diversity of Board
of Directors, and identification of persons who are qualified to become directors and who
may be appointed in senior management, etc. Brief details of the Nomination &
Remuneration Policy are provided in the Corporate Governance Report.
The Nomination & Remuneration Policy of the Company can be accessed
at https://singerindia.com/wp-content/
uploads/2022/07/Nomination-and-remuneration-policy.pdf.
Details of remuneration under Section 197 of the Act and read with Rule
5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
is stated in Annexure- II, which forms part of this report.
INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has adequate internal control systems and procedures
designed to effectively control the operations at its various functions. The internal
control systems are designed to ensure that the financial and other records are reliable
for the preparation of financial statements and for maintaining assets. The Company has
well designed Standard Operating Procedures which have also been reviewed/modified
periodically to further enhance the control aspects. The audit scope, methodology to be
used, reporting framework are defined well in advance, subject to consideration of the
Audit Committee of the Company. The Internal Auditors evaluate the efficacy and adequacy
of internal control system, its compliance with operating systems and policies of the
Company and accounting procedures at all the locations of the Company. Based on the report
of the Internal Auditors, process owners undertake corrective action in their respective
areas and thereby strengthen the controls. Internal Auditors carried out quarterly
procedures to verify effectiveness and efficacy of internal controls and their findings
are reviewed by the management and by the Audit Committee of the Board of Directors.
Based on the deliberations with Statutory Auditors to ascertain their
views on the financial statements including the Financial Reporting System and Compliance
to Accounting Policies & Procedures, the Audit Committee was satisfied with the
adequacy and effectiveness of the Internal Control and Systems followed by the Company.
INDIAN ACCOUNTING STANDARDS (IND AS), 2015
The annexed financial statements comply in all material aspects with
Indian Accounting Standards (Ind AS) notified under Section
133 of the Act read with Companies (Indian Accounting Standards) Rules,
2015 and other relevant provisions of the Act.
RISK MANAGEMENT
The Company has laid down a well-defined Risk Management Policy to
identify the risks associated with the business of the Company. The Board, where
appropriate, periodically reviews the significant risks to mitigate the risk exposure.
More details are given in the Management Discussions and Analysis Report in the Annual
Report.
The Risk Management Policy of the Company in terms of provisions of
Section 134(3)(n) of the Act read with the Listing Regulations is in place and can be
accessed at https://singerindia.com/wp-
content/uploads/2019/07/Risk-Management-Policy.pdf.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
In terms of provisions of Section 135 of the Act read with the
Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company has
constituted a Corporate Social Responsibility (CSR) Committee and has formulated a CSR
Policy. indicating the activities to be undertaken by the Company. The brief details of
CSR Committee are provided in the Corporate Governance Report. The Annual Report on CSR
activities as prescribed under the CSR Rules is set out as Annexure -III, forming
part of this Report.
The CSR Policy of the Company can be accessed on the Company's website
at https://singerindia.com/wp-content/uploads/2022/07/ CSR-POLICY 2021.pdf.
During the year under review, the Company had taken initiatives to run
skill development centers for the benefit of the underprivileged women & men whereby
they are being trained to develop their skills in the field of sewing, embroidery work and
other related work to make them self-proficient and independent working member of their
family. These CSR initiatives are implemented through Corporates/
Trusts/Societies/NGOs/Other Institutions. These projects/activities are also in accordance
with Schedule VII of the Act.
The Company had spent Rs.25.99 Lakhs during the financial year ended 31st
March 2023 on these skill development centers.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report on matters related to the
business performance as stipulated under the Listing Regulations forms a separate section
of this report.
SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013
The Company had adopted a policy for prevention of Sexual Harassment of
Women at workplace as per the provisions of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee has been
set up to redress complaints relating to sexual harassment at workplace of any employee.
All employees (Permanent, Contractual, Temporary and Trainees) are covered under this
Policy.
The Company periodically conducts sessions for employees across the
organization to build awareness about the POSH Policy and the provisions of POSH Act.
The Company has not received any sexual harassment complaints during
the year 2022-23 nor any complaint is pending at the end of the year 2022-23.
The Prevention of Sexual Harassment Policy of the Company can be
accessed at Company's website at https://singerindia.com/
wp-content/uploads/2019/07/Policv-against-Sexual-Harassment- at-Workplace.pdf.
ANNUAL RETURN
In terms of Section 92(3) of the Companies Act, 2013 and Rule 12 of the
Companies (Management and Administration) Rules, 2014, the Annual Return of the Company is
available on the website of the Company at
https://singerindia.com/investors/annual-return/.
RELATED PARTIES TRANSACTIONS
Your Company has adopted a related party transactions policy. The Audit
Committee reviews the policy from time to time and approves all related party
transactions, to ensure that the same are in line with the provisions of applicable law
and the related party transactions policy. The Committee approves the related party
transactions and wherever it is not possible to estimate the value, approves limit for the
financial year, based on best estimates. All the related party transactions of the Company
are reviewed by the Audit Committee and presented to the Board on a quarterly basis. These
transactions were at arm's length basis and in the ordinary course of business and are in
compliance with the provisions of Section 188 of the Companies Act, 2013 read with
Companies (Meeting of Board and its Powers) Rules, 2014 and Listing Regulations. There
were no materially significant related party transactions entered into by the Company
during the year under review. The disclosures relating to related parties are explained in
Note 36 in the notes to accounts attached to the Financial Statements. The particulars of
contracts or arrangements with related parties referred to in sub- section (1) of Section
188 of the Act in the prescribed Form AOC-2 is annexed as Annexure- IV.
The policy of the Company on Related Party Transactions can be accessed
at https://singerindia.com/wp-content/ uploads/2022/07/updated-RELATED-PARTY-TRANSACTION-
POLICY-2022.pdf.
VIGIL MECHANSISM / WHISTLE BLOWER POLICY
The Company has adopted a whistle blower policy and has established the
necessary vigil mechanism for employees and directors to report about the genuine
concerns, unethical behavior, fraud or violation of Company's Code of Conduct and leakage/
suspected leakage of Unpublished Price Sensitive Information with respect to the Company.
No person has been denied access to the Chairman of the Audit Committee.
The Company has not received any complaints during the year 2022-23 nor
any complaint is pending at the end of the year 2022- 23 in respect to whistle blower
policy.
The said policy of the Company can be accessed at
https://singerindia.com/wp-content/uploads/2023/03/ WHISTLEBLOWER-POLICY.pdf.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY
There are no significant and material orders passed by the Regulators
or Courts or Tribunals which would impact the going concern status and the Company's
operations in future.
STATUS OF APPEALS OF UNSECURED CREDITORS UNDER THE BOARD FOR INDUSTRIAL
AND FINANCIAL RECONSTRUCTION (BIFR) REHABILITATION SCHEME
The Order passed by the Hon'ble Appellate Authority for Industrial and
Financial Reconstruction (AAIFR) dated 22nd December 2015 in respect to the
litigation with the nine unsecured creditors is in appeals before the Hon'ble Delhi High
Court and Supreme Court. Meanwhile, the Company had amicably settled out of the Court with
seven parties out of these nine litigating parties.
As the current status, the Hon'ble Supreme Court passed a judgment on
17th March 2023. The Supreme Court has decided in favour of Singer India
Limited and other parties who had argued that on approval of a rehabilitation scheme under
the Sick Industries Companies Act, 1985, an unsecured creditor does not have an option to
not accept the scaled down value of its dues and recover the debt with interest post such
rehabilitation.
STATUTORY AUDIT
M/s B S R & Co LLP, Chartered Accountants (Firm Registration Number
101248W/W-100022), are the Statutory Auditors of the Company, who were re-appointed for a
second term of five (5) years at the 44th Annual General Meeting ('AGM') held
on 26th September 2022 to hold the office from the conclusion of the 44th AGM
of the Company upto the conclusion of the 49th AGM of the Company.
M/s B S R & Co LLP, Chartered Accountants, (Firm Registration
Number 101248W/W-100022), the Statutory Auditors of the Company has given their report(s)
on the financial statements of the Company for the financial year ended 31st
March 2023, which forms part of the Annual Report. There is no qualification, reservation,
adverse remark, comments, observations or disclaimer given by the Statutory Auditors in
their report(s). There were no frauds reported by the Statutory Auditors under the
provisions of Section 143 of the Companies Act, 2013.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013
read with rules framed thereunder, M/s. H.O. Gulati & Co., Practicing Company
Secretaries, were appointed as the Secretarial Auditors of the Company to carry out the
Secretarial Audit for the year ending 31st March 2023. The Report of the
Secretarial Audit is annexed herewith as Annexure - V.
There are no qualifications, reservations, adverse remarks, comments,
observations or disclaimer made by the Secretarial Auditors in their report.
INTERNAL AUDITOR
In accordance with the provisions of Section 138 of the Act and rules
made thereunder, the Board of Directors of the Company had appointed for the financial
year 2022-23, M/s. KAMG & Associates, Chartered Accountants, as an Internal Auditor to
conduct the Internal Audit of the Company. Their scope of work includes review of
operational efficiency, effectiveness of systems & processes, compliances and
assessing the internal control strengths in all areas. Internal Auditors findings are
discussed and suitable corrective actions are taken as per the directions of Audit
Committee as on-going basis to improve efficiency in operations. During the financial year
2022-23, no fraud was reported by the Internal Auditor of the Company in their Audit
Report.
ANNUAL SECRETARIAL COMPLIANCE REPORT
In accordance with the SEBI Circular dated 8th February 2019
read with Regulation 24A of the SEBI Listing Regulations, the Company has obtained an
Annual Secretarial Compliance Report from M/s. H.O. Gulati & Co., Practicing Company
Secretaries, confirming compliances with all applicable SEBI Regulations, Circulars and
Guidelines for the year ended 31st March 2023 and was submitted to the stock
exchange.
COMPLIANCE WITH SECRETARIAL STANDARDS
During the year under review, the Company has complied with the
applicable provisions of the Secretarial Standard on meetings of the Board of Directors
('SS-1') and the Secretarial Standard on General Meetings ('SS-2') issued by the Institute
of Company Secretaries of India.
COST RECORDS
During the year ended 31st March 2023, the Company is
engaged in Manufacturing and primarily in trading of Sewing Machines & related
accessories and trading of Home Appliances. More than 90% of revenue generated by the
Company comes from the trading activities, therefore, the turnover generated from the
manufacturing activity is below the threshold limit to come under the purview of Cost
Audit as per Section 148 of the Companies Act, 2013. Therefore, the Company is not
required to maintain cost records as per sub-section (1) of Section 148 of the Act.
PARTICULARS OF EMPLOYEES
The information required under Section 197 of the Companies Act, 2013
read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 are provided in Annexure-II to this Report.
The Board of Directors wishes to thank all employees for their
contributions to the Company's operations throughout the year. The Company's growth has
been aided by the collective spirit of cooperation among all levels of personnel, as well
as their sense of ownership and devotion.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING
AND OUTGO
A statement giving details of conservation of energy, technology
absorption, foreign exchange earnings and outgo in accordance with Section 134(3) (m) of
the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is
provided in Annexure - VI to this Report.
PROCEEDING UNDER INSOLVENCY AND BANKRUPTCY CODE, 2016
No application or any proceeding has been filed against the Company
under the Insolvency and Bankruptcy Code, 2016, during the financial year 2022-23.
DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME
OF ONE-TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR
FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF
The Company has not made any one-time settlement, therefore, the same
is not applicable.
CAUTIONARY STATEMENT
Statements in this 'Director's Report' & 'Management Discussion and
Analysis' describing the Company's objectives, projections, estimates, expectations or
predictions may be forward looking statements within the meaning of applicable laws and
regulations. Actual results could differ materially from those expressed or implied.
Important factors that could make difference to the Company's operations including raw
material/fuel availability and its prices, cyclical demand and pricing in the Company's
principle markets, changes in the Government regulations, tax regimes, economic
developments within India and the countries in which the Company conducts business and
other ancillary factors.
APPRECIATION AND ACKNOWLEDGEMENT
The Directors place on record their sincere thanks and appreciation to
SINGER, our Shareholders, all our customers, dealers/ distributors, suppliers and banks,
authorities, Government of Jammu & Kashmir, members and associates for their
co-operation and support at all times and to all our employees for their valued
contribution to the growth and profitability of your Company's business and look forward
to their continued support. We are deeply grateful for the confidence and faith that our
stakeholders have always reposed in us.
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For and on behalf of the Board |
Place: New Delhi |
Paresh Nath Sharma |
Date: 24.05.2023 |
Chairman |
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