Hind Rectifiers Ltd


BSE: 504036 | NSE: HIRECT | ISIN: INE835D01023 
Market Cap: [Rs.Cr.] 67 | Face Value: [Rs.] 2
Industry: Electronics - Components

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Director's Report

DIRECTORS

TO THE MEMBERS

Your Directors have pleasure in presenting 55th Annual Report together with the Auditedaccounts for the year ended March 31, 2013.

(Rs In Lacs)

FINANCIAL RESULTS: Year ended Year ended
31.03.2013 31.03.2012
Gross Operational Income 14,539.64 12,653.29
Less: Excise Duty / Service Tax 917.99 859.33
Net Operational Income 13,621.65 11,793.96
Gross Profit 1,345.36 1,447.78
Less : Depreciation 234.67 239.83
Profit before tax 1,110.69 1,207.95
Less : Provision for Taxation - Current 222.50 244.00
- MAT Credit Entitlement (125.00) (88.00)
- Deferred 0.43 (16.85)
- For Earlier Years (0.01) 0.62
97.92 139.77
Profit after taxes 1,012.77 1,068.18
Add: Surplus of previous year 94.27 56.10
Profit available for appropriation 1,107.04 1,124.28
Appropriations :
Transferred to General Reserve 400.00 400.00
Transferred to Reserve for Capital Expenditure 300.00 350.00
Proposed Dividend 240.93 240.93
Tax on Dividend 40.94 39.08
Surplus Carried to Balance Sheet 125.17 94.27

OPERATIONS:

The turnover of HIRECT was Rs 136 crores during Financial Year 2012-13, 16% higher thanthe turnover in Financial Year 2011-12. This increase was primarily driven, albeit delayedby finalization of some tenders and orders from Indian Railways and certainly higheroutput from Dehradun.

The Financial results could have been better but for non-finalization of pendingtenders by Indian Railways, lack of enquiries for Power plants due to the imbroglio causedregarding coal even though there is an acute shortage of power in many states, which alsoaffected the enquiries for Electrochemical applications. Further, due to the sluggishAmerican and European markets, Customers could not finalize the export projects anddefinitely the reduction in the demand of the Customer's products affected thefinalization of new projects.

During Fiscal 2013, our profit margin decreased compared to the prior year due toconsiderable increase in the raw material cost, competitive pricing pressures andincreased competition, which contributed to a decline in gross margin.

HIRECT faces a highly challenging next year. As we look ahead, we have to assume thatthe headwinds we've faced last year will continue for the foreseeable future. There are nosigns of improvement in the economy and there being no improvement in the flow ofenquiries, no improvements in prospects of business and more competitors entering thefield. Even the pace and sustainability of further improvements are questionable.

We are therefore assuming modest improvement in our plans. The environment willcontinue to change, and we will always be confronted with new issues and challenges. Thecompany is focusing on improving productivity, reducing cost of manufacturing byre-designing, re-engineering, and introducing new vendors with technical support. TheCompany expects with the implementation of above measures, modest results in the fiscalyear 2014.

The prototype of new products namely 3x130 KVA Converter for WAP5, WAP7 & WAG9 and3 Phase Transformer for WAP5, WAP7 & WAG9 for Indian Railways and Universal Controllerfor High Current Rectifiers for the non railway segments are undergoing extensive fieldtrials. The Company expects to receive more orders for these products for execution forthe next financial year.

DIVIDEND:

The Directors are pleased to recommend for consideration of the shareholders at theAnnual General Meeting payment of dividend @ 80% (Rs 1.60 per share) amounting to Rs240.93 Lacs for the year ended 31st March, 2013 (previous year Rs 240.93 Lacs).

TRANSFER TO RESERVE:

In view of the Proposed Capital Expenditure to increase the capacity / modernization ofthe various Plants, Board of Directors have decided that in addition to transfer a sum ofRs 400.00 Lacs to General Reserve, a sum of Rs 300.00 Lacs to be transferred to Reservefor Capital Expenditure from current year's profit.

DEPOSITS:

The Company has neither invited nor accepted deposits during the year ended March 31,2013.

BOARD OF DIRECTORS:

As per the provisions of the Companies Act, 1956 and in terms of the Articles ofAssociation of the Company, Shri Binod Patodia, Shri Pradeep Goyal and Shri BharatSwaroop, Directors of the Company retire by rotation and being eligible, offer themselvesfor re-appointment.

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors confirm that:

1. In the preparation of the annual accounts, the applicable Accounting Standards havebeen followed.

2. Appropriate policies have been selected and applied consistently and judgments andestimates wherever made are reasonable and prudent so as to give a true and fair view ofthe state of affairs of the Company as at March 31, 2013.

3. Proper and sufficient care has been taken for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act, 1956 for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities.

4. The annual accounts have been prepared on a going concern basis.

SHAREHOLDER'S FACTORY VISIT:

Visit of the Mumbai Plant was arranged on February 7, 2013 for shareholders of theCompany. 190 shareholders and 29 Joint shareholders participated in the visit.

AUDITORS:

M/s. Khandwala & Shah, Chartered Accountants, Auditors of the Company are retiringat the ensuing Annual General Meeting. They are eligible for re-appointment and haveexpressed their willingness to act as Auditors, if re-appointed. The Company has receiveda certificate from them that they are qualified under section 224 (1B) of the CompaniesAct, 1956, for re-appointment as Auditors of the Company. Members are requested toconsider their re-appointment and fix their remuneration.

M/s. Daga & Chaturmutha, Chartered Accountants, Branch Auditors of the Company forNashik Plant are retiring and eligible for re-appointment and have expressed theirwillingness to act as Branch Auditors of Company.

M/s. R. Gupta & Associates, Chartered Accountants, Branch Auditors of the Companyfor Dehradun Plants are retiring and eligible for re-appointment and have expressed theirwillingness to act as Branch Auditors of Company.

AUDITORS' OBSERVATIONS:

The observations of the auditors contained in their Report have been adequately dealtwith in Other Notes on Financial Statements which are self explanatory and therefore, donot call for any further comments.

SECRETARIAL COMPLIANCE REPORT:

As required under the amended provisions of the Companies Act, 1956, the Company isrequired to obtain Secretarial Compliance Certificate from a firm of Practicing CompanySecretaries. The same is enclosed and form part of this report.

DEPOSITORY SERVICES:

The Company's Equity Shares have been admitted to the depository mechanism of theNational Securities Depository Limited (NSDL) and also the Central Depository Services(India) Limited (CDSL). The Company has been allotted ISIN No. INE835D01023.

Shareholders therefore are requested to take full benefit of the same and lodge theirholdings with Depository Participants [DPs] with whom they have their Demat Accounts forgetting their holdings in electronic form.

CORPORATE GOVERNANCE:

The Company is committed to maintain the highest standards of Corporate Governance andadhere to the Corporate Governance requirements set out by SEBI. The Company has alsoimplemented several best Corporate Governance practices as prevalent globally. The Reporton Corporate Governance as stipulated under Clause 49 of the Listing Agreement forms partof the Annual Report. The requisite Certificate from the Auditors of the Companyconfirming compliance with the conditions of Corporate Governance as stipulated under theaforesaid Clause 49, is attached to this Report.

CODE OF CONDUCT:

Your Company is committed to conducting its business in accordance with the applicablelaws, rules and regulations and highest standards of business ethics. In recognitionthereof, the Board of Directors has implemented a Code of Conduct for adherence by theDirectors and Senior Management Personnel of the Company. This will help in dealing withethical issues and also foster a culture of accountability and integrity.

PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGNEXCHANGE EARNING AND OUTGO:

The information pursuant to section 217 (1) (e) of the Companies Act, 1956 read withthe Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988are given in Annexure "I" to this report.

PARTICULARS OF EMPLOYEES:

Particulars required under section 217(2A) of the Companies Act, 1956 read with theCompanies (particulars of employees) Rules 1975 are not applicable as no employee of theCompany was in receipt of the remuneration exceeding the limits prescribed therein.

LISTING:

The Company has listed its shares on The Bombay Stock Exchange Ltd. & NationalStock Exchange of India Ltd. The Company is regular in payment of Listing Fees.

SAFETY, ENVIRONMENTAL CONTROL AND PROTECTION:

The Company has taken all the necessary steps for safety and environmental control andprotection at the plant.

ACKNOWLEDGMENT:

The Directors wish to convey their appreciation to the Company's shareholders,customers, suppliers, bankers, distributors and all the technology partners for thesupport they have given to the Company and the confidence, which they have reposed in itsmanagement and the employees for the commitment and dedication shown by them.

Registered Office: For and on behalf of the Board of Directors
Lake Road, Bhandup (W), For Hind Rectifiers Limited
Mumbai - 400 078.
Place: Mumbai S. K. Nevatia
Date : 31st May, 2013 Chairman & Managing Director

ANNEXURE "I" TO THE DIRECTORS' REPORT

Information under section 217(1)(e) of the Companies Act, 1956 with the Companies(Disclosures of particulars in the Report of Board of Directors) Rules, 1988 and formingpart of the Directors Report for the year ended 31st March, 2013.

I. CONSERVATION OF ENERGY

1. Regular audit is being conducted to identify areas of energy wastage.

II. TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION

1. 3 X 130 KVA Converters prototype tested successfully and supplied to ChittaranjanLocomotive Works (CLW).

2. Designed and supplied Rotating Diodes Wheel Assembly for BHEL & Railways.

3. Developed USB data download facilities required by Indian Railways for 25 KVAInverters.

4. Production of 1st Unit of 3 Phase Transformers for supply to Indian Railways.

5. Universal Controller with inbuilt USB connectivity developed

III. FOREIGN EXCHANGE EARNING AND OUTGO

To avoid repetition, Members are kindly requested to refer Note Nos. xxi to xxiv to theOther Notes on Financial Statements where such information is furnished.

Registered Office: For and on behalf of the Board of Directors
Lake Road, Bhandup (W), For Hind Rectifiers Limited
Mumbai - 400 078.
Place: Mumbai S. K. Nevatia
Date : 31st May, 2013 Chairman & Managing Director
   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Bharat Electron 13,907.60 16.04 1.98 3.11 14.9 17.8 0.00
Honeywell Auto 4,505.53 46.71 5.77 15.51 11.6 16.1 0.00
Genus Power 653.17 10.78 1.51 5.35 9.6 9.1 0.65
Centum Electron 525.10 17.23 5.04 4.97 33.8 35.7 0.36
Yokogawa India 415.63 16.07 2.55 0.00 17.7 26.3 0.00
PG Electro. 229.66 0.00 1.88 19.38 -3.5 1.0 0.64
Zicom Electron. 195.54 16.41 1.20 5.47 5.8 11.6 0.36
Schneider APW 88.12 0.00 2.46 58.50 -12.6 -3.8 0.64
Tektronix (I) 78.35 61.49 2.52 0.00 4.2 8.9 0.00
Hind Rectifiers 67.20 0.00 1.03 0.00 -7.3 -5.9 0.31
Kernex Microsys. 61.06 0.00 0.47 5.53 0.5 3.8 0.13
MIC Electronics 55.76 0.00 0.16 18.46 -5.6 1.3 0.39
JCT Electronics 50.45 0.00 -0.11 0.00 0.0 0.0 0.00
BPL Display Dev 33.00 0.00 -0.24 0.00 0.0 0.0 50.59
Circuit Systems 27.17 69.96 0.79 4.49 1.1 3.7 0.12

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Key Information

Key Executives:

S K Nevatia , Chairman & Managing Director  

Uma S Nevatia , Executive Vice Chairperson  

D R Mehta , Director  

Niraj Ramkrishna Bajaj , Director  


Company Head Office / Quarters:
Lake Road,
Bhandup (W),
Mumbai,
Maharashtra-400078
Phone : 91-22-25968027/28/29/31/25962432
Fax : 91-22-25962461
E-mail : corporate@hirect.com
Web : http://www.hirect.com
Registrars:
Adroit Corp. Services Pvt Ltd
19/20 Jaferbhoy Ind
1st Floor Makwana Rd
Marol Naka
Mumbai - 400 059

Fund Holding

 
Scheme Name No. of Shares
No data found

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