Dear Shareholder,
The Board of Directors is delighted to present the 33rd Annual Report on the business
and operations of JTL Industries Limited (Formerly known as JTL Infra Limited) (JTL
or 'Company'), along with the summary of the standalone and consolidated financial
statements for the financial year ended March 31, 2024.
In compliance with the applicable provisions of the
Companies Act, 2013, ("the Act"), the Securities and Exchange Board of India
("SEBI") (Listing Obligations and Disclosure Requirements) Regulations, 2015
("Listing
Regulations"), this Board's Report is prepared based on the standalone and
consolidated financial statements of the Company for the year under review.
A brief summary of the Company's standalone and consolidated performance during the
year ended March 31, 2024 is given below.
OVERVIEW OF FINANCIAL PERFORMANCE:
Key highlights of consolidated and standalone financial performance for the year ended
March 31, 2024, are summarized as under:
Description |
Standalone |
Consolidated |
|
2023-24 |
2022-23 |
2023-24 |
2022-23 |
Revenue from Operations |
2,04,022.89 |
1,54,840.26 |
2,04,022.89 |
1,54,991.88 |
Other Income |
806.57 |
493.75 |
866.90 |
493.75 |
Total Revenue |
2,04,829.46 |
1,55,334.01 |
2,04,889.79 |
1,55,485.63 |
Total Expenses |
1,89,868.37 |
1,42,964.69 |
1,89,868.98 |
1,43,115.81 |
EBITDA |
16,026.20 |
13,429.73 |
16,085.94 |
13,430.25 |
Finance Cost |
(509.36) |
(634.91) |
(509.38) |
(634.93) |
Depreciation and Amortisation |
(555.75) |
(425.50) |
(555.75) |
(425.50) |
Exceptional Items |
0 |
(108.21) |
0 |
(108.21) |
Profit Before Tax |
14,961.09 |
12,261.11 |
15,020.81 |
12,261.61 |
Profit After |
11,256.45 |
9,012.40 |
11,301.14 |
9,012.78 |
Other Comprehensive Income |
(608.65) |
300.30 |
(608.65) |
300.30 |
Total Comprehensive Income for the year |
10,647.80 |
9,312.70 |
10,692.50 |
9,313.08 |
Earnings Per Equity Share of Rs. 2/- each |
|
|
|
|
Basic |
6.60 |
5.34 |
6.63 |
5.34 |
Diluted |
6.49 |
4.64 |
6.52 |
4.64 |
OPERATIONAL PERFORMANCE HIGHLIGHTS
During the FY 2023-24, your Company recorded highest-ever revenues as well as the
highest-ever sales volume of 3,41,847 MTPA. The Standalone income of your Company
increased to Rs. 2,04,022.89 Lacs as compared to Rs. 1,54,840.26 Lacs in the previous year
registering growth of 31.76%. The Standalone profit after tax for the FY 2023-24 increased
to Rs. 10,647.80 Lacs as compared to Rs. 9,312.70 Lacs in the previous financial year
registeringanincrease lity on back of of around 14.34%. EBITDA for the FY 2023-24
increased to Rs. 16,026.20 Lacs as compared to Rs. 13,429.73 Lacs in the previous
financial year showing a growth of around 19.33%. Furthermore, your Company witnessed a
significant in the sales of Value-Added Products (VAP), with volumes rising from 74,243
MTPA in FY 2022-23 to 99,818 MTPA in FY 2023-24, marking a significant growth of 34.5%.
During the FY 2023-24, the Company witnessed a robust growth across all our financial
parameters including Sales Volume, Revenue, EBITDA and PAT. The Company delivered
increasedrevenuesand efficiencies, better product mix and control measures.
EXPANSIONS AND PRODUCT EXTENSION
To increase its production capacity, Company acquired a 67% controlling interest in
Nabha Steels and Metals, in Mandi Gobindgarh, Punjab. With a capacity of 200,000 MTPA,
this acquisition bolsters Company's backward integration capabilities. This strategic move
will enable the Company to venture into new product segments and broadening its market
reach. Additionally, Company will enhance coil production at the Raipur plant from 150,000
to 250,000 MTPA and increase long product output by 100,000 MTPA across Chhattisgarh and
Punjab.
Furthermore, Company intends to increase production capacity in Maharashtra and
Chhattisgarh through expansion initiatives. The initial phase aims to raise the overall
capacity from 5,86,000 to 10,00,000 MTPA by introducing Direct Forming Technology (DFT)
lines alongside traditional forming technology. This expansion will focus on manufacturing
of galvanised steel tubes and pipes.
These strategic initiatives will improve plant capacity utilisation, streamline
manufacturing processes and broaden the range of Value-Added Products (VAPs). for the
Following this, a significant Maharashtra plant to increase Company's manufacturing
capacity to 20,00,000 MTPA. This expansion will enable the
Company to effectively meet market demand and diversify its product portfolio.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of the Company and its Wholly Owned Subsidiary
(WOS) i.e. JTL Tubes Limited for the FY 2023-24 are prepared in compliance with the
applicable provisions of the Act and as stipulated under Regulation 33 of the Listing
Regulations, as well as in accordance with the Indian Accounting Standards notified under
the Companies.
QUALIFIED INSTITUTIONAL PLACEMENT
As on the date of this report, on 23rd July, 2024, the Company had allotted and issued
1,42,18,009 equity shares of Rs. 2 each at an issue price of Rs. 211/- (including
securities premium of Rs. 209) per equity share aggregating to Rs. 300 crores. The
aforesaid issuance of equity shares was made through a Qualified Institutions Placement
(QIP) in terms of the Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations,
2018 (SEBI Regulations) as amended, Section 42, Section 62, and other relevant
provisions of the Companies Act, 2013. The proceeds from the QIP have been earmarked for
Part financing the cost towards our existing manufacturing facility by setting up a new
unit at Raigad, Maharashtra, working capital requirements of the Company and other general
corporate purposes. The
QIP proceeds have bolstered the capital structure of the
Company, significantly enhanced the Company's financial flexibility, and accelerated
the Company's ambitious growth plans.
DISCLOSURE UNDER REGULATION 32 (7A) OF SEBI (LODR) REGULATIONS, 2015
The Board of Directors in their meeting held on March 03, 2023 came with a Preferential
Issue and allotted 1,28,08,350 fully convertible warrants to Non-Promoter Public Category
at an issue price of Rs. 300/- per warrant on receipt of 25% of the Issue Price as
application money. CARE Ratings Limited was appointed as Monitoring Agency to monitor the
utilisation of the funds raised through this preferential issue, in accordance with the
provisions of Regulation 162A of the SEBI ICDR Regulations, 2018.
During the FY 2023-24, 41,63,323 warrants were converted into Equity Shares on receipt
of balance 75% of the Issue Price as per the following details: -
sSr. No. |
Allotment Date |
No. of Allottees |
No. of Equity Shares |
1. |
May 01, 2023 |
1 |
1,00,000 |
2. |
July 14, 2023 |
1 |
15,000 |
3. |
August 16, 2023 |
9 |
3,95,000 |
4. |
September 19, 2023* |
4 |
2,25,000 |
5. |
October 24, 2023* |
3 |
76,700 |
6. |
November 11, 2023* |
2 |
1,62,768 |
7. |
December 20, 2023* |
7 |
2,40,300 |
8. |
February 28, 2024* |
9 |
29,48,555 |
|
Total |
|
41,63,323 |
The funds so raised on allotment of convertible warrants and further on their
conversion into equity were fully utilised for Modernisation, acquisitions and Expansion
of Manufacturing Units, Working Capital Requirements , General Corporate Purposes and
meeting issue related expenses thus for the purpose for which these were raised and in
accordance with the objectives of the said preferential issue stated in the explanatory
statement to the notice of Extra Ordinary General Meeting dated January 20, 2023 and there
had been no deviation or variation in the use of the proceeds/ funds so raised. As on
March 31, 2024 total 86,45,027 warrants were outstanding for conversion. *The members of
the Company in its Annual General Meeting held on August 30, 2023 approved a Bonus Issue
in the ratio of 1:1 and Relevant Date for the same was decided as September 07, 2023. For
all the outstanding warrants as on Relevant Date specified sum of reserves were set aside
to issue Bonus Shares upon the conversion of such outstanding Warrants. Accordingly for
all the conversion made after September 07, 2023 Bonus Shares were also issued upon them
in the ratio of 1:1.
The Company also came with a fresh Preferential
Allotment on February 02, 2024 and allotted 2,50,00,000 fully convertible warrants to
Promoter/Promoter Group and Non-Promoter/Public Category at an issue price of Rs. 270/-
per warrant on receipt of 25% of the Issue Price as application money. CARE Ratings
Limited was appointed as Monitoring Agency to monitor the utilisation of the funds raised
through preferential issue, in accordance with the provisions of Regulation 162A of the
SEBI ICDR Regulations, 2018. The funds raised from the allotment of warrants were fully
utilised for the purpose for which these were raised and in accordance with the objectives
of the said preferential issue stated in the explanatory statement to the notice of Postal
Ballot and there had been no deviation or variation in the use of the proceeds/ funds so
raised.
CHANGES IN CAPITAL STRUCTURE, IF ANY AUTHORISED SHARE CAPITAL
During the FY 2023-24, the Company has allotted 41,63,323 Equity shares of face value
of Rs. 2/- each on account of conversion of warrants allotted on preferential basis, into
Equity shares of the Company. Further, the members of the Company in its Annual General
Meeting held on August 30, 2023 approved a Bonus Issue in the ratio of 1:1 and Relevant
Date for the same was decided as September 07, 2023. Accordingly, on September 11, 2023
Bonus Shares were allotted to all the shareholders on the Relevant Date and as a result,
the paid up share capital of the Company increased from Rs. 169704184 divided into
84852092 equity shares of Face Value of Rs. 2/- each to Rs. 339408368 divided into
16,97,04,184 equity shares of Face Value of Rs. 2/- each. For all the outstanding warrants
as on Relevant Date specified sum of reserves were set aside to issue Bonus Shares upon
the conversion of such outstanding Warrants.
Accordingly, for all the conversion made after September
07, 2023 Bonus Shares were also issued upon them in the ratio of 1:1. After adding up
all the conversion of warrants and Bonus issue in the ratio of 1:1 at the end of FY
2023-24 the Paid up Capital of the Company increased from Rs. 16,86,84,184 divided into
8,43,42,092 Equity shares of face value of Rs. 2/- each as at the end of previous FY to
Rs. 35,40,21,660 divided into 17,70,10,830 Equity shares of face value of Rs. 2/- each.
Apart from above, there was no change in the Share Capital during the year under
review. The Company has neither issued any shares with differential voting rights or
granted stock options or issued sweat equity or purchased its own shares nor the company
has made any Public/ Rights Issue/ Buy back of Equity Shares of the Company.
ISSUED, PAID UP & SUBSCRIBED SHARE CAPITAL
During the FY 2023-24, the Company has allotted 41,63,323 Equity shares of face value
of Rs. 2/- each on account of conversion of warrants allotted on preferential basis, into
Equity shares of the Company. Further, the members of the Company in its Annual General
Meeting held on August 30, 2023 approved a Bonus Issue in the ratio of 1:1 and Relevant
Date for the same was decided as September 07, 2023. Accordingly, on September 11, 2023
Bonus Shares were allotted to all the shareholders on the Relevant Date and as a
result, the paid up share capital of the Company increased from Rs. 16,97,04,184 divided
into 8,48,52,092 equity shares of Face Value of Rs. 2/- each to Rs. 33,94,08,368 divided
into 16,97,04,184 equity shares of Face Value of Rs. 2/- each. For all the outstanding
warrants as on Relevant Date specified sum of reserves were set aside to issue Bonus
Shares upon the conversion of such outstanding Warrants. Accordingly, for all the
conversion made after September 07, 2023 Bonus Shares were also issued upon them in the
ratio of 1:1. After adding up all the conversion of warrants and Bonus issue in the ratio
of 1:1 at the end of FY 2023-24 the Paid up Capital of the Company increased from Rs.
16,86,84,184 divided into 8,43,42,092
Equity shares of face value of Rs. 2/- each as at the end of previous FY to Rs.
35,40,21,660 divided into 17,70,10,830 Equity shares of face value of Rs. 2/- each. The
shares so allotted on conversion of warrants and on allotment on merger have been duly
listed at stock exchanges.
CAPITAL STRUCTURE OF WHOLLY OWNED SUBSIDIARY (WOS)
The Authorised Capital of JTL Tubes Limited, Wholly Owned Subsidiary (WOS) of the
Company is Rs. 15,00,000/- whereas the paid up capital is Rs. 5,00,000/- divided into to
50,000 equity shares of Rs. 10/- each.
CONSOLIDATED FINANCIAL STATEMENTS
As per Regulation 33 of the SEBI ("Listing Obligations and Disclosure
Requirements) Regulations 2015 and applicable provisions of the Companies Act, 2013 read
with the Rules issued there under, the Consolidated Financial Statements of the Company
for the Financial year 2023-24 have been prepared in compliance with the applicable
Accounting
Standards, Ind- AS and on the basis of Audited Financial
Statements of the Company and its Subsidiary as approved by the respective Board of
Directors. The Consolidated
Financial Statements together with Auditors Report forms part of the Annual Report.
DIRECTOR'S RESPONSIBILITY STATEMENT:
Based on the framework of internal financial controls established and maintained by the
Company, work performed by the internal, statutory, cost and secretarial auditors
including financial reporting by the Statutory Auditors and the reviews performed by
Management and the relevant
Board Committees, including Audit Committee, the Board is of the opinion that the
Company's internal financial controls were adequate and effective during Financial Year
2023-24.
. Based on Accordingly, pursuant to Section 134(5) of the Companies Act, 2013, the
Board of Directors, to the best of their knowledge and ability confirm: a) that in the
preparation of the Annual Accounts, the applicable accounting standards have been followed
and that no material departures have been made from the same; b) that we 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 profits of the Company for that
period; c) that 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) that the annual accounts for the financial year ended
March 31, 2024 have prepared on a going concern basis; e) that proper systems to ensure
compliance with the provisions of all applicable laws were in place and that such systems
are adequate and operating effectively; and f) that proper internal financial controls
were laid down and that such internal financial controls are adequate and operating
effectively.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
In terms of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (Listing Regulations') Management Discussion and Analysis report
("MD&A Report") providing a detailed overview of your Company's performance,
industry trends, business and risks involved is provided separately. Management
Discussion and Analysis Report as given in the Annual
Report forms part of this Report.
DIVIDEND
During the Year under review, the turnover and profitability of the Company has grown
Company's financial position, the Board of Directors, at its meeting held on 10th day of
May, 2024 had recommended a final dividend @12.5% i.e. Rs. 0.25 per equity share of face
value of Rs. 2/- each for the Financial Year 2023-24. Subject to the provisions of
Companies Act, 2013, dividend as recommended by the Board of Directors, if declared at the
Meeting, will be paid within 30 days of the declaration of same.
DIVIDEND DISTRIBUTION POLICY
Pursuant to the provision of Regulation 43A of the SEBI ( Listing Obligations and
Disclosure Requirement) Regulations, 2015, the top 1000 listed entities based on market
capitalisation (calculated as on March 31 of every financial year) shall formulate a
dividend distribution policy which shall be disclosed on the website of the listed entity
and a web-link shall also be provided in their annual reports. The Company is covered
among top 1000 listed entities and accordingly the Board has approved and adopted
Dividend Distribution Policy. The Policy can be accessed on the Company's website at
https://www.jtl.one/wp-content/ uploads/2023/04/Dividend-Distribution-Policy.pdf of key
responsibilities, establishment
RECORD DATE
The record date fixed for determining the entitlement of Members for payment of
dividend is August 30, 2024. According to the Finance Act, 2020, dividendincomewillbe of
key responsibilities, taxable in the hands of the Members w.e.f. April 01, 2020 and the
Company is required to deduct tax at source from the dividend paid to the Members at
prescribed rates as per the Income Tax Act, 1961.
BOARD OF DIRECTORS
The Board of the Company is comprised of eminent persons with proven competence and
integrity. Besides the experience, strong financial acumen and leadership qualities, they
have a significant degree of commitment towards the Company and devote adequate time to
the meetings and preparation.
During the year under review and as on the date of the report, the composition of the
Board consists of 10 Directors comprising of 4 Independent Directors, 1 Non-Executive
Director and 5 Executive Directors, details thereof have been provided in the Corporate
Governance Report.
In terms of the requirement of the Listing Regulations, the
Board has identifiedcore skills, expertise, and competencies of the Directors in the
context of the Company's businesses for effective functioning. The list of key skills,
expertise and core competencies of the Board of Directors is detailed in the Corporate
Governance Report.
In the opinion of the Board, all the directors, as well as the directors appointed /
re-appointed during the year possess the requisite qualifications, experience and
expertise and hold high standards of integrity.
BOARD EVALUATION
Pursuant to the applicable provisions of the Act and the Listing Regulations, the Board
has carried out an Annual Evaluation of its own performance, performance of the Directors
and the working of its Committees on the evaluation criteria defined by the Nomination and
Remuneration Committee (NRC) for performance evaluation process of the Board, its
Committees and
Directors. The Board's functioning was evaluated on various aspects, including
inter-alia the structure of the
Board, meetings of the Board, functions of the Board, degree of fulfillment and
delineation of responsibilities to various Committees, effectiveness of Board processes,
information and functioning. The Committees of the Board were assessed on the degree of
fulfillment adequacy of Committee composition and effectiveness of
Meetings. The Directors were evaluated on aspects such as attendance, contribution at
Board/ Committee Meetings and guidance/support to the Management outside Board/ Committee
Meetings.
The criteria for evaluation of Board include whether Board meetings were held in time,
all items which were required as per law or SEBI (LODR) Regulations, 2015 to be placed
before the Board, have been placed, the same have been discussed and appropriate decisions
were taken, adherence to legally prescribed composition and procedures, timely induction
of additional/ women Directors and replacement of Board members/Committee members,
whenever required, whether the Board regularly reviews the investors grievance redressal
mechanism and related issues, Board facilitates the independent directors to perform their
role effectively etc. The criteria for evaluation of committee include taking up roles and
functions as per its terms of reference, independence of the committee, policies which are
required to frame and properly monitored its implementation, whether the committee has
sought necessary clarifications, information and explanations from management, internal
and external auditors etc. Based on such criteria, the evaluation was done in a structured
manner through peer consultation & discussion.
The performance assessment of Non-Independent
Directors, Board as a whole and the Chairman were evaluated in a separate meeting of
Independent Directors. The same was also discussed in the meetings of NRC and the Board.
Performance evaluation of Independent Directors was done by the entire Board, excluding
the Independent
Director being evaluated.
In compliance with the provisions of the Companies Act,
2013 (the Act) and applicable clauses of SEBI(Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Board, during the year adopted a formal mechanism for
evaluation of its performances as well as that of its committees and individual Directors,
including the Chairman of the Board.
A structured questionnaire was prepared after taking into consideration inputs received
from the Directors, covering various aspects of the Boards functioning such as adequacy of
the composition of the Board and its Committees, Board culture, execution and performance
of specific duties, obligations and governance.
A separate exercise was carried out to evaluate the performance of individual Directors
including the Chairman of the Board, who were evaluated on parameters such as level of
engagement and contribution, independence of judgement, safeguarding the interest of the
Company and its minority shareholders, etc. The performance evaluation of the Independent
Directors was carried out by the entire
Board. The performance evaluation of the Chairman and the Non-Independent Directors was
carried out by the Independent Directors. The Directors expressed their satisfaction with
the evaluation process.
INDEPENDENT DIRECTORS' MEETING
In compliance with Section 149(8) of the Act read along with Schedule IV of the Act and
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Independent
Directors separately met on March 29, 2024 inter alia, to discuss: a. Evaluation of the
performance of non-Independent
Directors and the Board as a whole; b. Evaluation of the performance of the Chairperson
of the company, taking into account the views of executive directors and non- executive
directors; c. Evaluation of the quality, quantity and timeliness of flow of information
between the company management and the Board that is necessary for the Board to
effectively and reasonably perform their duties. Except Mr. Ashok Goyal, all the then
Independent Directors were present at the Meeting.
DECLARATION OF INDEPENDENCE BY INDEPENDENT DIRECTORS AND DISCLOSURE
In terms of Regulation 25(8) of SEBI Listing Regulations, Independent Directors have
confirmed that they are not aware of any circumstance or situation which exists or may be
reasonably anticipated that could impair or impact their ability to discharge their
duties. Based on the declarations received from the Independent Directors, the Board of
Directors has confirmed that they meet the criteria of independence as mentioned under
Regulation 16(1)(b) of the SEBI Listing Regulations and that they are independent of the
management. As required under Rule 6 of the Companies (Appointment and Qualification of
Directors) Rules, 2014, all the Independent Directors have completed the registration with
the Independent Directors Databank well within stipulated time frame and hold valid
certificate of registration.
DIRECTORS AND KMPs
(i) Appointments/ Changes
During the year under review, Mr. Bhupinder Nayyar ceased to be Independent Director
w.e.f. May 16, 2023 on account of expiry of his term. The Board of Directors on the
recommendations of the Nomination and Remuneration Committee appointed Mr. Rakesh Mohan
Garg as Independent Director (Additional) on the Board of the Company w.e.f May 13, 2023
for a period of 5 years and his appointment was also approved by shareholders of the
Company through
Postal Ballot concluded on August 05, 2023. Further, the Board of Directors on the
recommendations of the
Nomination and Remuneration Committee appointed Mr. Ashok Goyal as Independent Director
(Additional) on the Board of the Company w.e.f. July 29, 2023 for a period of 5 years and
his appointment was further approved by shareholders of the Company in Annual
General Meeting dated August 30, 2023. Thereafter, on November 20, 2023 the Board of
Directors of the Company on the recommendations of the Nomination and Remuneration
Committee appointed Mr. Sanjeev Gupta as Executive Director (Additional) of the
Company and further his appointment was approved by shareholders of the Company through
Postal Ballot concluded on January 18, 2024.
During the FY 2023-24, Mr. Gurinder Singh Makkar resigned from the post of Company
Secretary & Compliance officer w.e.f. October 25, 2023 and in his place Mr. Amrender
Kumar Yadav was appointed as Company Secretary cum Compliance Officer w.e.f. November 20,
2023.
Further Mr. Sanjeev Vaid ceased to be Chief Financial of the Company w.e.f. April 17
2023 and in his Officer place Mr. Dhruv Singla was appointed/re-designated as Whole Time
Director cum CFO of the Company. On January 12, 2024 Mr. Dhruv Singla resigned from the
position of CFO and in his place, Mr. Atul Garg was appointed as CFO of the Company.
However, Mr. Dhruv Singla shall continue to serve as Whole Time Director of the Company.
(ii) Retirement by rotation.
In accordance with the provisions of the Companies
Act, 2013 and Articles of Association of the Company, Sh. Mithan Lal Singla and Sh.
Pranav Singla, Directors of the Company, retire by rotation at the ensuing Annual
General Meeting and being eligible offer themselves for re-appointment.
(iii) Resignations/ Removal of Directors
During the FY 2023-24, None of the Directors resigned/ removed from the Board of
Directors.
(iv) Declarations by Independent Directors
Pursuant to sub section (6) of Section 149 of the Companies Act, 2013 and Reg 16(1) (b)
of the SEBI
(Listing Obligations and Disclosure Requirement) Regulations, 2015, the Independent
Directors of the
Company have given declaration to the Company that they qualify the criteria of
independence as required under the Act and the regulations.
In the opinion of the Board, there has been no change in the circumstances which may
affect their status as Independent Directors of the Company and the Board is satisfied of
the integrity, expertise, and experience (including proficiency in terms of Section 150(1)
of the
Act and applicable rules thereunder) of all Independent
Directors on the Board. In terms of Section 150 read with Rule 6 of the Companies
(Appointment and Qualification of Directors) Rules, 2014, Independent
Directors of the Company are registered on the Independent Director Databank maintained
by the
Indian Institute of Corporate Affairs (IICA).
(v) Board Meetings
The Board meets at regular intervals to discuss and decide on Company's business
operations, policies and strategy apart from other Board businesses. During the
year,11(Eleven) Board Meetings and 10 (Ten) Audit Committee Meetings were convened and
held. The details are given in the Corporate Governance Report. The intervening gap
between the two Meetings was within the period prescribed under the Companies Act, 2013.
Pursuant to the circular relating to the "enforcement of SEBI Order regarding
appointment of directors by listed companies" dated June 20, 2018, none of the
director of the Company, is debarred from holding the office of director pursuant to any
SEBI order.
(vi) Board Evaluation
The Board has carried out an annual evaluation of its own performance, the Directors
and also Committees of the Board based on the guideline formulated by the Nomination &
Remuneration Committee. Board composition, quality and timely flow of information,
frequency of meetings, and level of participation in discussions were some of the
parameters considered during the evaluation process. The details of the familiarisation
programme adopted by the Company for the orientation and training of the Directors and the
Board evaluation process for Directors undertaken in compliance with the provisions of the
Companies
Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
forms part of the Corporate Governance Report of this Annual Report.
Further, a Separate Meeting of the Independent
Directors of the Company was held once during the financial year on March 29, 2024
which also reviewed the performance of the Non-executive directors,
Chairman of the Company and performance of the
Board as a whole. The details of the Programme for familiarisation of the Independent
Directors of your Company are available on the Company's website at web link:
https://www.jtl.one/wp-content/ uploads/2023/04/Familiarisation-Programme.pdf
(vii) Nomination & Remuneration Policy
The Board has, on the recommendation of the
Nomination & Remuneration Committee, already framed a Policy for selection,
appointment and remuneration of Directors and Key Managerial Personnel. The policy on
Director's appointment and remuneration including criteria for determining qualifications,
positive
Director, and also remuneration for key managerial personnel and other employees, forms
part of the
Corporate Governance Report of this Annual Report.
(viii) Key Managerial Personnel
The Company has presently seven Key Managerial Personnel viz. Mr. Madan Mohan, Managing
Director, Mr. Rakesh Garg, Whole Time Director, Mr. Dhruv Singla, Whole Time Director, Mr.
Pranav Singla, Whole Time Director, Mr. Sanjeev Gupta, Whole Time Director, Mr. Amrender
Kumar Yadav, Company Secretary and Mr. Atul Garg, Chief Financial Officer of the Company.
Brief profiles of all the Directors are given in the Annual Report.
PECUNIARY RELATIONSHIP OR TRANSACTIONS WITH THE COMPANY
During the year under review, the Non-Executive Directors of the Company had no
pecuniary relationship or transactions with the Company, other than sitting fees and
reimbursement of expenses incurred by them for the purpose of attending meetings of the
Board/ Committee(s) of the Company.
FAMILIARISATION PROGRAMME FOR DIRECTORS
Your company follows a structured familiarisation programme through various reports and
internal policies for all the Directors with a view to update them on the Company's
policies on a regular basis. Letter of Appointment(s) are issued to Independent Directors
setting out in detail, the terms of appointment, duties, responsibilities and expected
time commitments. Each newly appointed Director is taken through a formal induction
Programme including the presentation from the Managing Director on the Company's
manufacturing, marketing, finance and other important aspects. All our Directors are aware
and also updated, whenever required, of their role, responsibilities, liabilities and
obligations under the provisions of the Companies Act,
2013 and Rules made there under an Agreement/ Regulation 25 of the Listing Regulations,
2015. The details of the
Familiarisation Programmes for Independent Directors are made available on Company's
website at the web link: https:// attributes, independence of
www.jtl.one/wp-content/uploads/2023/04/Familiarisation-Programme.pdf The evaluation
process for the financial year 2023-24 has been completed.
KEY MANAGERIAL PERSONNEL
As per the provisions of Section 203 of the Companies Act, 2013, the Key Managerial
Personnel of the Company as on March 31, 2024 were as under:
1. |
Mr. Madan Mohan, Managing Director; |
2. |
Mr. Rakesh Garg, Whole Time Director; |
3. |
Mr. Dhruv Singla, Whole Time Director; |
4. |
Mr. Pranav Singla, Whole Time Director, |
5. |
Mr. Sanjeev Gupta, Whole Time Director |
6. |
Mr. Amrender Kumar Yadav, Company Secretary |
|
(w.e.f. November 20, 2023, in place of Mr. Gurinder |
|
Singh Makkar, Company Secretary) |
7. |
Mr. Atul Garg, Chief Financial Officer (w.e.f. January 12, |
|
2024, in place of Mr. Dhruv Singla) |
DIRECTOR RETIRING BY ROTATION
In accordance with the provisions of the Companies Act,
2013 (Act'), Mr. Mithan Lal Singla and Mr. Pranav Singla,
Directors will be retire by rotation in the ensuing Annual
General Meeting and being eligible, offers themselves for re-appointment at the ensuing
AGM.
AUDIT COMMITTEE
As on date Audit Committee of the Board consists of five Directors as Chairperson/
Members namely Ms. Preet Kamal Kaur Bhatia (Chairperson) , Mr. Rakesh Mohan Garg, Mr.
Sukhdev Raj Sharma, Mr. Ashok Goyal, Independent Directors and Mr. Rakesh Garg, Executive
Director. Independent Director is the Chairperson of the Committee.
During the year, all the recommendations made by the Audit
Committee were accepted by the Board.
BOARD MEETINGS
The Board met 11 (Eleven) times during the year, the details of which are given in the
Corporate Governance Report that forms part of the Annual Report. The intervening gap
between the meetings was within the period prescribed under the Companies Act, 2013 and
the Securities and Exchange Board of India (Listing Obligation and Disclosure
Requirements) Regulations, 2015 ("Listing Regulations"), as amended from time to
time.
Further, the Independent Directors at their separate meeting, reviewed the performance
of the Board, Chairman of the Board and of Non-Independent Directors, as required under
the Act and the Listing Agreement.
The Independent Directors at their separate meeting also assessed the quality, quantity
and timelines of flow of information between your Company Management and the Board of
Directors of your Company.
COMMITTEES OF THE BOARD
The Committees of the Board focus on certain specific areas and make informed decisions
in line with the delegated authority. The following substantive Committees constituted by
the Board function according to their respective roles and defined scope:
|
Audit Committee |
|
Nomination & Remuneration Committee (NRC) |
|
Stakeholders Relationship Committee |
|
Corporate Social Responsibility Committee |
|
Sub Committee of Directors |
|
Risk Management Committee |
Securities Issue and Allotment Committee
Fund Raising Committee
Details of composition, terms of reference and number of meetings held for respective
Committees are given in the
Report on Corporate Governance which forms part of the Annual Report. Further, during
the year under review, all recommendations made by the Audit Committee have been accepted
by the Board.
PREVENTION OF INSIDER TRADING
The Company has adopted a Code of Conduct for Prevention of Insider Trading, in
accordance with the requirements of Securities and Exchange Board of India (Prohibition of
Insider Trading) Regulations, 2015, as amended from time to time. The Company Secretary
is the Compliance Officer for monitoring adherence to the said Regulations. The Code is
displayed on the Company's website at www.jtl.one.
REPORTING OF FRAUDS
There was no instance of fraud during the year under review, which required the
Statutory Auditors to report to the Audit
Committee and / or to the Board as required under Section 143(12) of the Act and the
rules made thereunder.
ANNUAL RETURN
Pursuant to the provisions of Section 134(3)(a) and Section 92(3) of the Act read with
Rule 12 of the Companies (Management and Administration) Rules, 2014, the extract of the
Annual Return of the Company for the Financial Year
March 31, 2024 is uploaded on the website of the Company and can be accessed at
www.jtl.one under the Investors section.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to conservation of energy, technology absorption and foreign
exchange earnings
& outgo, as required under Section 134(3) (m) of the Companies Act, 2013 read with
Rule 8(3) of the Companies (Accounts) Rules, 2014, is given at Annexure-1 forming part of
this Report.
CREDIT RATING
During the year under consideration, the credit rating obtained from CARE Ratings
Limited for short term and long term exposures was surrendered by the Company. The
Rating issued by CARE for the Bank Facilities was as under:
Long Term facilities Care A- ; Stable Short Term facilities CARE A2+
Now, Company is in process of obtaining ratings from other Credit Ratings agencies.
SECRETARIAL AUDIT
The Board of Directors of the Company has appointed M/s S.V. Associates, Company
Secretaries (Certificate of Practice No. 14791), as the Secretarial Auditors to conduct an
audit of Secretarial Records for the financial year 2023-24. The Secretarial Audit Report
for the financial year ended March 31, 2024 under Act, read with Rules made thereunder and
Regulation 24A of the Listing Regulations (including any thereof statutory modification(s)
for the time being in force) is set out in the Annexure-2 to this report.
The said secretarial audit report does not contain any qualification, reservation or
adverse remark or disclaimer made by the Secretarial Auditor.
In addition to the above and pursuant to SEBI Circular dated February 8, 2019, a Report
on annual secretarial compliances by S.V. Associates, Practicing Company Secretaries for
the year ended March 31, 2024 is submitted to stock exchanges. There are no observations,
reservations or qualifications in the said Report.
PARTICULARS OF THE EMPLOYEES
Disclosures with respect to the remuneration of Directors and employees as required
under Section 197(12) of the Act read with Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is annexed to this Annual Report as
Annexure-3 and forms part of this Report.
Details of employee remuneration as required under provisions of Section 197 of the
Act, and Rule 5(2) &5(3) of Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, forms part of this report. As per the provisions of Section 136 of
the Act, the reports and
Financial Statements are being sent to shareholders of the Company and other
stakeholders entitled thereto, excluding the Statement containing Particulars of
Employees. Any shareholder interested in obtaining such details may write to the Company
Secretary of the Company.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The details of loans, guarantees and investments covered under Section 186 of the
Companies Act, 2013 and details of loans from Banks/FIs/ Directors, are provided in
Financial Statements and Notes thereto.
During the year under review, the Company has complied with the provisions of Sections
185 and 186 of the Companies Act, 2013 in respect of loans granted and investments made.
RISK MANAGEMENT
Pursuant to Section 134(3) of the Act and Regulation 21 of SEBI (LODR) Regulations,
2015, Risk Management Committee was in place, comprising Mr. Mithan Lal Singla (Chairman),
Mr. Rakesh Garg, Mr. Sukhdev Raj Sharma and Ms. Preet Kamal Kaur Bhatia. The Company has
formulated a Risk Management Policy to establish an effective and integrated framework for
the Risk Management process. During 2023-24, two Meetings were held on July 03, 2023 and
December 26, 2023 wherein, relevant mitigation measures identified for the Company were
reviewed and discussed.
The Company believes that managing risks helps in maximising returns. A risk management
framework have been developed and implemented by the company for identification of
elements of risk if any, which in opinion of board may threaten the existence of the
company. It aims to identify commodity prices, Price fluctuation of raw material and
finished goods, Credit Risks, inflation, Strategic Risks, etc. The effectiveness of risk
management framework and system is periodically reviewed by Board of
Directors of the company. At present, in the opinion of the
Board of Directors, there are no risks which may threaten the existence of the Company.
The speed and degree of changes in the global economy and the increasingly complex
interplay of factors influencing the business makes Risk Management an inevitable exercise
and to cater to the same, your Company has identifiedmajor focus areas for risk management
to ensure organisational objectives are achieved and has a robust policy along with
well-defined and dynamic structure and proactive approach to assess, monitor and mitigate
risks associated with the business.
The Board members are regularly informed about the potential risks, their assessment
and minimisation procedures. The Board frames a plan for elimination / minimisation of the
risk and further lays out the steps for implementing and monitoring of the risk management
plan.
The Company is taking all the suitable steps to avoid the risks that arise in the
Company. There is no such threat to the existence of the Company.
CHANGE IN THE NATURE OF BUSINESS
There is no change in the nature of the business of the
Company. Your Company tends to run the same business activities till date.
MATERIAL CHANGES BETWEEN THE DATE OF THE BOARD REPORT AND END OF FINANCIAL YEAR
There have been no material changes and commitments, if any, affecting the financial
position of the Company which have occurredbetweentheendofthefinancialyear of the Company
to which the financial statements relate and the date of the report.
RESOLUTION AND MATTERS APPROVED THROUGH POSTAL BALLOT DURING FINANCIAL YEAR
During the year under review, the following resolutions were passed through Postal
Ballot:-
Sr. No. |
Resolution |
Postal Ballot Conclusion Date |
1. |
Appointment of Mr. Rakesh Mohan Garg (DIN: 08970794) as an Independent
Director of the |
August 05, 2023 |
|
Company |
|
2. |
Preferential allotment of upto 3,00,00,000 fully convertible warrants to
the persons belonging to |
|
|
promoter, promoter group and non-promoter, public category |
|
3. |
To raise capital by way of QualifiedInstitutions Placement to eligible
investors through an |
|
|
issuance of equity shares and/or other eligible securities including
"green shoe" option |
|
|
|
January 18, 2024 |
4. |
Appointment and regularisation of Mr. Sanjeev Gupta (DIN: 10396875 ) as
an Executive Director |
|
|
acting in the capacity of Director(Operations) of the company |
|
5. |
Increase in authorised share capital of the Company and consequent
amendment in capital clause |
|
|
of the Memorandum of Association of the Company |
|
Apart from above, no other matter was approved through Postal Ballot.
DECLARATION REGARDING CODE OF CONDUCT
Directors, Key Managerial Personnel and senior management of the Company have
confirmedcompliance with the Code of Conduct applicable to the Directors and employees of
the Company and the declaration in this regard made by the Managing Director of the
Company forms part of this Annual Report. The said code is available at the Company's
website i.e. www.jtl.one
DEPOSITS FROM PUBLIC
During the financial year 2023-24, the Company has not accepted, invited or renewed any
deposits or amounts which are deemed to be deposits within the meaning of Section 73 to 76
or any other relevant provisions of the Companies Act, 2013 and no such amounts or
interest on deposits was outstanding as on March 31, 2024.
RELATED PARTY TRANSACTIONS
All transactions entered with Related Parties for the year under review were on arm's
length basis and in the ordinary course of business and that the provisions of Section 188
of the Companies Act, 2013 and the Rules made there under are not attracted. No material
related party transactions were entered into during the financial year by the Company.
Accordingly, the disclosure of related party transactions as required under Section
134(3)(h) of the Act in Form AOC-2 is not applicable to the Company for FY 2023-24.
The Related Party Transactions are placed before the Audit Committee of the Company for
prior approval, as required under applicable law. Prior omnibus approval of the Audit
Committee, as required under Listing Regulations as amended, is also obtained for the
transactions, which are of foreseen and repetitive nature. A statement giving details of
all related party transactions, entered pursuant to the omnibus approval so granted, is
placed before the Audit Committee of the Board of Directors for their review on a
quarterly basis. The policy on Related Party Transactions on Materiality of and dealing
with Related Party transactions as approved by the Board is uploaded on the Company's
website i.e. www.jtl.one
DISCLOSURE ABOUT THE RECEIPT OF COMMISSION
In terms of Section 197(14) of the Act and rules made there under, during the year
under review, no Director has received any commission from the Company thus the said
provision is not applicable to the Company.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
Pursuant to Section 177(9) of the Companies Act, 2013 and applicable provisions of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has
formulated a Vigil Mechanism for directors and employees to report genuine concerns have
been established. The Vigil Mechanism Policy has been uploaded on the website of the
Company at www.jtl.one.
SUBSIDIARY COMPANY/ASSOCIATE COMPANIES/JOINT VENTURES ETC
The Company has a Wholly owned Subsidiary Company viz. M/s JTL Tubes Limited, which has
not yet commenced its operations fully.
A separate statement containing the salient features of Financial Statements of the
Subsidiary of the Company in the prescribed form AOC-1 given at Annexure-4 forms a part of
this report and consolidated Financial Statements in accordance with Section 129 (3) and
other applicable provisions, if any, of the Companies Act, 2013 read with Rule 5 of the
Companies (Accounts) Rules, 2014. The said form also highlights the Financial Performance
of the subsidiary Company included in the Consolidated Financial
Statements pursuant to Rule 8(1) of the Companies (Accounts) Rules, 2014.
In accordance with Section 136 of the Companies Act, 2013, the Financial Statements of
the Subsidiary Company shall be kept open for inspection by the members at the
Registered office of the Company during Business hours on all days except Saturdays,
Sundays and public holidays up to the date of the Annual General Meeting (AGM') and
shall also be available on the website of the Company. Any member desirous of obtaining a
copy of the said financial statements may write at registered office of the company.
The Audited Financial Statements including Consolidated Financial Statements and all
other documents required to be attached to this report have been uploaded on the website
of the company www.jtl.one. The said subsidiary is not a material subsidiary. However, the
company has formulated a policy for determining material subsidiary.
The said policy is also available on the website of the
Company and the web link of the same is https://www.jtl.
one/wpcontent/uploads/2023/04/Policy-for-determining-Material-Subsidiaries.pdf
Apart from above subsidiary company, there are no
Associate Companies/Joint ventures of the Company as on March 31, 2024.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has designed and implemented a process driven framework for Internal
Financial Controls. For the year ended on March 31, 2024, the Board is of the opinion that
the Company has sound Internal Financial Controls commensurate with the size, scale and
complexity of its business operations. During the year, such controls were tested and no
material weakness in their operating effectiveness was observed. The Company has a process
in place to continuously monitor the same and identify gaps, if any, and implement new
and/ or improved controls whenever the effect of such gaps would have a material effect on
the Company's operations.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS by the There are
no significant Regulators/ Courts which would impact the going concern status of the
Company and its future operations.
STATUTORY AUDITORS
The members at the 32nd Annual General Meeting of the Company held on August 30, 2023
had appointed M/s N. Kumar Chhabra & Co, Chartered Accountants (Firm Registration No.
000837N) as the Statutory Auditors of the Company to hold office for a term of five years
i.e. from the conclusion of the 32nd Annual General Meeting until conclusion of 37th
Annual General Meeting to be held in 2028. The Auditor's Reports for the financial year
2023-24 does not contain any qualification, reservation or adverse remark. The Auditors'
Report is enclosed with the Financial Statements in this Annual Report. Further, pursuant
to Section 143(12) of the Companies Act, 2013, the Statutory Auditors of the Company have
not reported any instances of frauds committed in the Company by its officers or
employees.
The details relating to fees paid to the Statutory Auditors are given in the Financial
Statements and Corporate
Governance Report in the Annual Report.
APPLICABILITY AND MAINTENANCE OF COST RECORDS
In terms of Companies (Accounts) Amendment Rules,
2018, a Disclosure is hereby made that maintenance of cost records as specified by the
Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is
required by the Company and accordingly such accounts and records are made and maintained.
AUDITORS' REPORT
The Auditors' Report is self-explanatory and do not call for further comments as there
are no adverse remarks in the
Auditors' Report.
Further, the Statutory Auditors of the Company have not reported any fraud as specified
under Section 143(12) of the Act, in the year under review.
APPOINTMENT OF SECRETARIAL AUDITOR AND INTERNAL AUDITOR
The Company has, in accordance with the applicable provisions of the Companies Act,
2013, appointed M/s S.V. Associates Practicing Company Secretaries, as the Secretarial
Auditors for financial year 2024-25. M/s Arvind
Singla and Associates has been appointed as the Internal
Auditors of the Company for the financial year 2024-25.
DIRECTORS AND OFFICERS INSURANCE (D &O)
As per the requirements of Regulation 25 (10) of the SEBI
Listing Regulations, applicable to the Company being covered under top 1000 companies
based on their market capitalisation as at March 31, 2024, the Company has taken Directors
and Officers Insurance Policy (D & O) for all of its
Directors with a quantum and coverage as approved by
Board of Directors.
LISTING OF SECURITIES
The securities (Equity Shares) of the Company are listed at
BSE Limited. (BSE), National Stock Exchange of India (NSE) and Metropolitan Stock
Exchange of India Limited (MSEI). The
Company has paid the listing fees to all the exchanges up to the financial year
2024-25. During the year, the Company got listed on NSE w.e.f. June 12, 2023 which were
earlier under permitted to trade category on NSE.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
As per requirement of Section 135 of the Companies Act, 2013 read with Schedule VII of
the said Act and further read with Companies (Corporate Social Responsibility) Rules,
2014, the Company has a duly constituted "Corporate Social Responsibility
Committee" consisting of following persons as Members/ Chairman:
Sr. No |
Name of the Committee Member |
Designation |
Category |
|
Preet Kamal Kaur |
|
Independent |
1. |
|
Chairperson |
|
|
Bhatia |
|
Director |
|
|
|
Non-Executive |
2. |
Mithan Lal Singla |
Member |
|
|
|
|
Director |
|
|
|
Executive |
3. |
Rakesh Garg |
Member |
|
|
|
|
Director |
During the FY 2023-24, the Company had identified certain projects/activities on which
the CSR expenditure for the financial year was made. The activities mainly included
promotion of education, environmental sustainability, eradicating hunger, poverty and
malnutrition along with other activities enumerated under Schedule-VII of the Companies
Act, 2013. Details about the CSR policy and initiatives taken by the Company during the
year are available on your company's website www.jtl.one. The Report on CSR activities is
given in Annexure-5 forming part of this Report.
The Company has spent more than the CSR expenditure required to be made on CSR
Activities under Section 135 of the Companies Act, 2013 read with relevant Rules thereto
and the same will be set off in the coming year .
The Company is endeavoured to ensure full utilisation of the allocated CSR budget.
CORPORATE GOVERNANCE REPORT
Your Company is in compliance with all the applicable provisions of Corporate
Governance as stipulated under Chapter IV of the Listing Regulations. A detailed report on
Corporate Governance as required under the Listing Regulations is provided in as
Annexure-6 section and forms part of the Annual Report. A Certificate from a
Practicing Company Secretary regarding compliance with the conditions stipulated in the
Listing Regulations forms part of the Corporate Governance Report.
INDUSTRIAL RELATIONS
The industrial relations remained very cordial and responsive during the year under
review.
DISCLOSURE OF COMPLAINTS OF SEXUAL HARRASMENT, CHILD LABOUR ETC.
The Company's Policy on Prevention of Sexual Harassment at workplace is in line with
the requirements of the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013 (Prevention of Sexual Harassment of Women at Workplace Act) and Rules framed there
under. Internal Complaints Committees have also been set up to redress complaints received
regarding sexual harassment.
The Company is committed to providing a safe and conducive work environment to all of
its employees and associates. The following is a summary of sexual harassment complaints
received and disposed off during the FY 2023-24:
Sr. No. |
Category |
No. of complaints financial during year 2023-24 |
No. of complaints pending as at end of year 2023-24 |
1 |
Child labour / |
The Company |
Not Applicable |
|
forced labour |
does not hire |
|
|
/ involuntary |
Child Labour, |
|
|
labour |
Forced Labour |
|
|
|
or involuntary |
|
|
|
Labour (No Case |
|
|
|
Reported) |
|
2 |
Sexual |
No reported case |
Not Applicable |
|
Harassment |
|
|
3 |
Discriminatory |
No reported case |
Not Applicable |
|
Employment |
|
|
STATEMENT AS TO INTERNAL COMPLAINTS COMMITTEE
In terms of Companies (Accounts) Amendment Rules,
2018, it is hereby stated that the Company has complied with provisions relating to the
constitution of Internal
Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
STATEMENT ON COMPLIANCE WITH APPLICABLE SECRETARIAL STANDARDS
During the year under review, the Company has complied with the applicable provisions
of the Secretarial Standards issued by the Institute of Company Secretaries of India.
BUSINESS RESPONSIBILITY AND SUSTANABILITY REPORT (BRSR)
Vide SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment)
Regulations, 2021 w.e.f. May 05, 2021 has replaced filing of Business Responsibility
Report with Business Responsibility and Sustainability Report.
The Business Responsibility and Sustainability Report
(BRSR) of the Company for FY 2023-24, in accordance with Regulation 34(2)(f) of the
Listing Regulations forms part of this Annual Report of the Company.
INSOLVENCY & BANKRUPTCY CODE, 2016
There were no proceedings initiated/pending against your Company under the Insolvency
and Bankruptcy Code, 2016, which impacts the business of the Company.
DIFFERENCE IN AMOUNTS OF VALUATIONS, IF ANY
There were no instances where your Company required the valuation for one time
settlement or while taking any loan from the Banks or Financial Institutions.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND
As required under the provision of the Section 124 & 125 and other applicable
provisions of the Act, dividends that remain unpaid / Unclaimed for a period of
consecutive 7 years, are required to be transferred to the account administered by the
Central Government viz. Investor Education and Protection Fund ("IEPF").
Further, according to the said
Rules, the shares on which Dividend has not been encashed or claimed by the Members for
7 consecutive years or more shall also be transferred to the demat account of the IEPF
Authority.
In terms of the provisions of Investor Education and Protection Fund (Accounting,
Audit, Transfer and Refund)
Rules, 2016 / Investor Education and Protection Fund (Awareness and Protection of
Investors) Rules, 2001, there were no amounts or shares requiring transfer to Investor
Education and Protection Fund during the FY 2023-24.
TRANSFER TO RESERVES
The Company does not propose to transfer any amount to reserves.
GRATUITY
The provision for gratuity has been made as provided under the Payment of Gratuity Act
on the basis of Actuarial Valuation.
CAUTIONARY STATEMENT
Certain Statements in this Annual Report may constitute
"forward looking statements". These forward-looking statements are subject to
a number of risks, uncertainties and other factors which could cause actual results to
differ materially from those suggested by forward looking statements. Important factors
that could influence the
Company's operation can be affected by global and domestic demand and supply conditions
affecting selling prices of finished goods, input availability and prices, changes in
government regulations, tax laws, economic developments in India and in countries in which
the Company conducts business, litigation, industrial relations and other incidental
factors.
COST AUDIT
The Company has maintained cost records for certain products as specified by the
Central Government under sub-section (1) of Section 148 of the Act. M/s. Balwinder &
Associates, Cost Accountants, (Firm Registration No. 000201) carried out the cost audit
for applicable businesses during the financial year 2022-23. The Cost Audit Report for the
samewasfiledwithin the prescribed time limits. For the FY 2023-24 also, the Cost Audit
Report shallbefiledwithin the given time limits.
In terms of the provisions of Section 148 of the Act read with the Companies (Cost
Records and Audit) Rules, 2014, as amended from time to time, the Board of Directors,
based on the recommendation of the Audit Committee, has appointed M/s. Balwinder &
Associates, Cost Accountants (Firm Registration No. 000201), as Cost Auditor of the
Company to conduct the Cost Audit for the Financial Year
2024-25 on a remuneration as mentioned in the Notice of 33rd Annual General Meeting.
A Certificatefrom M/s. Balwinder & Associates, Cost
Accountants, has been received to the effect that their appointment as Cost Auditor of
the Company, if made, would be in accordance with the limits specified under Section 141
of the Act and Rules framed thereunder. A resolution seeking Member's ratification for the
remuneration payable to the Cost Auditor forms part of the
Notice of 33rd Annual General Meeting and the same is recommended for your
consideration and ratification.
REPORTING OF FRAUDS
There was no instance of fraud during the year under review, which required the
Statutory Auditors to report to the Audit
Committee and / or to the Board as required under Section 143(12) of the Act and the
rules made thereunder.
DEMATERIALISATION OF SHARES
As on March 31, 2024, there were 99.87% Equity Shares in dematerialised form (including
shares for Corporate Action was pending along with shares put in Abeyance) with National
Securities Depository Limited and Central Depository Services (India) Limited and rest
0.13% were in physical form.
INSURANCE:
The properties/assets of your Company are adequately insured.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES UNDER SECTION 188(1) OF THE ACT party
There were no materially significant transactions made by the Company with Promoters,
Directors, Key Managerial Personnel or other designated persons, which could have
potential conflict with the interest of the Company at large. All contracts arrangements
transactions entered into by the Company during the financial year under review with
related parties were at an arm's length basis and in the ordinary course of business.
During the year, the Company has not entered into any contract/ arrangement/transaction
with related parties which could be considered material in accordance with the policy of
Company on materiality of related party transactions (transactions where the value exceeds
Rs. 1000 Crores. or 10% of the annual consolidated turnover, whichever is lower), or
which is required to be reported in Form AOC 2 in terms of section 134(3)(h) read with
Section 188 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014, as amended.
All Related Party Transactions were placed before the
Audit Committee for approval. Prior omnibus approval of the Audit Committee was
obtained for the transactions, which were of a repetitive nature. The transactions entered
into pursuant to the omnibus approval so granted, were reviewed and statements giving
details of all related party transactions were placed before the Audit Committee on a
quarterly basis. The policy on Related Party Transactions as approved by the Board can be
accessed on the
Company's website at link https://www.jtl.one/wpcontent/
uploads/2023/04/related-party-transactions-policy.pdf Members may refer Notes to the
financial statement, which sets out related party disclosures pursuant to Ind-AS and
Schedule V of Listing Regulations.
INTERNAL CONTROL SYSTEM
The Company has an Internal Control System, commensurate with the size, scale and
complexity of its operations. The Internal Audit function is handled by an external firm
of Chartered Accountants. The Internal Control
Systems are regularly being reviewed by the Company's
Internal Auditors with a view to evaluate the efficacy and adequacy of Internal Control
Systems in the Company, its compliance with operating systems, accounting procedures and
policies at all locations of the Company and to ensure that these are working properly and
wherever required, are modified/ tighten to meet the changed business requirements.
All the Business Heads/Function Heads are certifying the compliance to all applicable
rules, regulations and laws every quarter to the Board and are responsible to ensure that
internal controls over all the key business processes are operative. The scope of the
Internal Audit is defined and reviewed every year by the Audit Committee and inputs,
wherever required, are taken from the Statutory
Auditors. Based on the report of Internal Auditors, major audit observations and
corrective actions thereon are presented to the Audit Committee of the Board. Our
management assessed the effectiveness of the Company's internal control over financial
reporting (as defined in Clause 17of SEBI Regulations 2015) as of March 31, 2024. The
Statutory Auditors of the Company have audited the financial statements included in this
annual report and have issued an attestation report on our internal control over financial
reporting (as defined in Section 143 of Companies Act 2013).
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY
There were no material changes and commitments affecting the financial position of the
Company which have occurred between the close of the financial year till the date of this
Report.
REMUNERATION POLICY OF THE COMPANY
The objective of the Remuneration Policy is to attract, motivate and retain qualified
and expert individuals that the Company needs in order to achieve its strategic and
operational objectives, whilst acknowledging the societal context around remuneration and
recognising the interests of Company's stakeholders. The salient features of the
nomination and remuneration policy of the Company is forming part of Corporate Governance
Report.
The Remuneration Policy of the Company is available on
Company website at https://www.jtl.one/key-policies/
INDIAN ACCOUNTING STANDARDS
The financial statements of your Company are prepared in accordance with the Indian
Accounting Standards (Ind- AS') pursuant to the Ministry of Corporate Affairs
notification dated February 16, 2015 notifying the Companies (Indian Accounting Standards)
Rules, 2015.
DISCLOSURE REQUIREMENT AS PER COMPANIES (ACCOUNTS) RULES, 2014 i. The Company has
neither made any application nor any proceeding is pending under the Insolvency and
Bankruptcy Code, 2016 ("IBC Code") during the
Financial Year and does not have any proceedings related to IBC Code. ii. The Company
has not made any onetime settlement during the Financial Year 2023-24 with Banks or
Financial Institution.
OTHER DISCLOSURES
During the year under review there were no reportable events in relation to issue of
equity shares with differential rights as to dividend, voting or otherwise, issue of sweat
equity shares to its Directors or Employees.
GREEN INITIATIVE
Electronic copy of the Annual Report for FY 2023-24 and the Notice of the ensuing AGM
is being sent to all shareholders whose email addresses are available in demat account and
registered with Company's Registrar and Share Transfer
Agent. As per the General Circular No. 20/2020 of Ministry of Corporate Affairs dated
May 05, 2020, shareholders holding shares in demat form are requested to update their
email addresses with their Depository Participant(s) and for shareholders holding shares
in physical form, should get their email registered with Beetal Financial and Computer
Services Private Limited, Company's Registrar and Share
Transfer Agent.
ACKNOWLEDGEMENT
Your Directors wish to convey their deep appreciation to all the employees, customers,
vendors, investors, Bankers, Financial Institutions for their sincere and dedicated
services as well as their collective contribution to the
Company's performance.
Your Directors are grateful to the Shareholders/ Stakeholders for their confidence and
faith reposed in the management of the Company. The Directors look forward to the
continued support of all stakeholders in future also.
For and on behalf of Board of Directors of JTL
Industries |
|
Limited |
|
CIN : L27106CH1991PLC011536 |
Madan Mohan Singla |
Pranav Singla |
Managing Director |
Whole Time Director |
DIN: 00156668 |
DIN: 07898093 |
Place : Chandigarh |
|
Date : August 14, 2024 |
|
STATEMENT CONTAINING PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
(Pursuant to Section 134 (3) (m) of the Companies Act, 2013 read with Rule 8 (3) of the
Companies (Accounts) Rules, 2014)
A. CONSERVATION OF ENERGY
I. Steps taken or impact on conservation of energy.
In line with the Company's commitment towards conservation of energy, all units
continue with their efforts aimed at improving energy efficiency through innovative
measures to reduce wastage and optimise consumption.
Some of the measures taken by the Company during the year under review are as under:
Replacement of lightly loaded star delta motors with permanent star
connections |
Installation of power capacitors to maintain power factor close to 1 i.e.
0.99 |
Installation of Variable Frequency Drives at various locations. |
Installation of LED Lights. |
Replacement of inefficient motors by energy efficient motors. |
Replacement of motors rewinded more than twice with the new motors |
Use of motion sensors in Lighting. |
These measures have also led to cost and energy saving, better pollution control,
reduced the impact on environment, increased efficiency, reduced maintenance time and cost
and consistency in quality and improved productivity.
II. The steps taken by the Company for utilising alternate sources of energy.
During the year, Company installed solar lights at various places in all factory
premises for utilising alternate sources of energy. The Company also replaced LED lights
in place of conventional high energy consuming lights.
Apart from this, Company is exploring various other measures for conservation of energy
including (i) Replacing energy-efficient models. (ii) Educating employees about the
benefits of old,inefficient renewable energy and sustainability practices. (iii)
Continuously monitoring the performance of renewable energy systems to ensure they meet
efficiency and production targets.
The company provides high priority to energy conservation schemes to conserve natural
resources and is regularly taking effective steps to conserve energy wherever possible.
This continues to remain thrust area with studies, discussions and analysis being
undertaken regularly for further improvements. The Company has given due attention towards
conservation of energy. It not only reduces the cost of production but also helps in
conservation of natural resources which are depleting very fast. The Company is constantly
looking for savings of energy and trying to conserve energy continuously by modifications
or trying alternate means and continuously upgrading technology and work practices. Steps
are being taken to conserve energy on a continuous basis. The Company is exploring use of
Solar Energy as an alternate source & planning for setting up solar panel at its
factory.
Besides continuing the measures taken in earlier years, following steps were taken
during the FY 2023-24 with a view to reduce the cost of energy and consequently the cost
of production.
Conservation measures taken, proposed measures being implemented for reduction of
consumption of energy and consequent impact thereof for the FY 2023-24:-
Measures taken |
Saving amount |
Energy Savings |
|
(Rs. In Lacs) |
(Units in Lacs) |
Installation of energy efficient light fittings and use of Solar
Energy.8.25 |
0.95 |
|
Replacement of old & re-wound motors with Energy Efficient Motors |
|
|
Replacement of Lightly loaded star delta motors with permanent star |
|
|
connections |
|
|
Installation of power capacitors to maintain power factor close to 1 i.e.
0.99 |
|
|
III. The Capital investment on energy conservation equipment - NIL B. TECHNOLOGY
ABSORPTION i. The efforts made by the Company towards technology absorption.
In order to maintain its leadership position, your Company is continuously focusing on
upgrading its product and manufacturing technology as well as acquiring new and advanced
technology to meet the emerging expectations of the customers. The Company is actively
involved in the development and implementation of advanced utility generation system to
make manufacturing process efficient.
cost reduction, product development or import substitution. ii. Thebenefits
Introduction of new technologies has helped the Company to achieve more efficient
operations, manufacture high quality and safe products, reduce energy cost and better
energy utilisation. By adoption of latest advanced technologies, the Company intends to
capitalise and bookshelf the developed technology for incorporation into the quality
products at competitive price for making them more attractive to the end Customers. The
Company is also taking measures to mitigate all future risks related to technology by
taking appropriate emerging technology, green initiatives etc. to meet future emission
standards. iii. In case of imported technology (imported during the last three years
reckoned from the beginning of the financial year): The Company is in the process of
implementation of Direct Forming Technology ("DFT"), reflecting Company's
commitment to innovation and profitability. iv. The expenditure incurred on Research
and Development : NIL
Technology absorption, Innovation and Research & Development (R & D) is a
continuing Process and a continued emphasis is given on quality improvement and product up
gradation.
1. Specific areas in which R & D activities were carried out by
the Company: |
a. Quality Improvement |
b. Yield/Productivity Improvement |
c. Energy Conservation |
d. New Technology/Product development |
2. Benefits Derived |
a. Better Quality; reduced wastages |
b. Cleaner environment |
c. Safer operations and improved competitiveness d. Consumer satisfaction
3. Future Plan of Action
Management is committed to strengthen R & D activities for product development as
per requirements and to improve its competitiveness in the times to come.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
Earning : Rs. 12,655.19 Lacs (Rs. 15,511.62 Lacs in the previous year) Outgo
: Rs. 4,486.89 Lacs ( Rs. 16,072.72 Lacs in the previous year)
|
For and on behalf of Board of Directors of JTL
Industries Limited |
|
|
CIN : L27106CH1991PLC011536 |
|
Madan Mohan Singla |
Pranav Singla |
Place : Chandigarh |
Managing Director |
Whole Time Director |
Date : August 14, 2024 |
DIN: 00156668 |
DIN: 07898093 |