To The Members
Your Directors have pleasure in presenting the Annual Report of the Company together
with the Audited Profit and Loss Account for the year ended 31st March, 2023
and the Balance Sheet as on that date.
1. Financial Results:
Rs. In Lakhs
| Particulars |
2022-2023 |
2021-2022 |
| Sales Turnover |
4261.94 |
3406.49 |
| EBIDTA |
378.59 |
315.82 |
| Interest |
276.13 |
225.19 |
| Profit/(Loss) before Depreciation and Tax |
102.46 |
90.63 |
| Less: Depreciation |
310.90 |
235.69 |
| Profit/(loss) before tax |
(208.44) |
(136.40) |
| Less: Provision for tax |
(7.14) |
8.66 |
| Profit / (Loss) after tax |
(201.30) |
(145.06) |
2. Operating Results
The operations resulted in Loss of Rs. 201.30 lakhs after making provision of
depreciation & taxes. In comparison to last years Loss Rs 145.06 Lakhs.
3. Operational Review:
Your Company has done satisfactory performance keeping in mind aftereffect of onslaught
of CoVid-19 and Chip shortage during financial year of FY 22-23, two-wheeler sales drop
due to its price increase.
4. Finance Changes
Since Last 2 years, your company was trying to balance tight rope by increasing revenue
and reduce the debt and we are happy to share that our long term borrowing has reduced by
16% last year. We have paid up almost 1 crore in our Solar loan taken from SIDBI. However,
with current uncertain situation in two wheelers industry, we have taken host of measures
to increase customers and also products. We expect this, will need capital investment,
tough your company will try to utilize all the current capacity even for new customer /
products.
This would impact our goal of reducing debt immediately, but eventually in few years
the Company is hoping to become debt free.
5. Prospects:
Your company has been working extensively on costing of the products and is confident
of growth in Sales as well as Profit in the coming year. The Company would be able to
sustain any competition from other countries, if the same arose. Your Company is in
discussion with new customers [domestic as well as international) for FY 23-24, which
would further help build the larger customer base. Your company has started selling
Cylinder Head [Important part of IC Engine) and have bagged order for Crank Case from
Greaves Cotton Limited. Greaves has confirmed almost 2 Crores / month business with
Dekson. Further, we are happy to share that two Hitachi Parts have been developed and
samples submitted awaiting go-ahead for mass production. We have regular sales from
Gabriel and further expect this sale to increase with 2 more products under discussion. We
have started discussion with Hero MotoCorp for bottom case and would explore other parts
with them.
6. Expansion:
We are focusing on capacity utilization and then adding new machines for new products
only. We have developed alloy wheel with completely new concept [centrifugal casting) and
the casting trial were successful beyond expectation. We have also undertaken installation
of powder coating plant for our customers.
7. Dividends
The Board of Directors of your company does not recommend any dividend on the equity
share of the company for the financial year 2022 - 2023.
8. Deposits
The Company has not invited/ accepted any deposits from the public during the year
ended 31st March, 2023. There were no unclaimed or unpaid deposits as on 31st
March 2023.
9. Transfer to reserves
The company is having Loss of Rs. 201.30 Lacs for the financial year.
10. Material Changes between the date of the Board report and end of financial year
There have been no material changes and commitments, 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.
11. Significant and material orders passed by the regulators or courts or tribunals
impacting the going concern status and companys operations in future
During the year under review there has been no such significant and material orders
passed by the regulators or courts or tribunals impacting the going concern status and
companys operations in future.
12. Subsidiary Company
As on 31st March, 2023 the Company does not have any subsidiary.
13. Change in the nature of business
There is no change in the nature of the business of the company done during the year.
14. Number of meeting of the Board:
During the year Nine 7 Board Meetings were convened and held. The details of which are
given below. The intervening gap between the Meetings was within the period prescribed
under the Companies Act, 2 013.The date of board meetings:
09/04/2022, 03/07/2022, 03/09/2022,14/11/2022, 08/01/2023, 08/03/2023, 31/03/2023
Details of the attendance of director at various Board Meetings during financial year
as under:
| S. No. Name Of Director |
No. of meetings attended |
| 1 Mr. Vikram Ashok Dekate |
7 |
| 2 Mr. Chetan Ashok Dekate |
7 |
| 3 Mr. Prashant Chandresh Shukla |
7 |
| 4 Mr. Durgadas Narayan Chavan |
7 |
| 5 Mrs. Pallavi Dekate |
7 |
Composition of Audit Committee:
| Name of Member |
Designation |
Category |
| Mr. Prashant Chandresh Shukla |
Chairman |
Independent Director |
| Mr. Durgadas Narayan Chavan |
Member |
Independent Director |
| Mr. Vikram Ashok Dekate |
Member |
Non-Independent Non Executive Director |
Composition of Stakeholder Relationship Committee:
| Name of Member |
Designation |
Category |
| Mr. Prashant Chandresh Shukla |
Chairman |
Independent Director |
| Mr. Durgadas Narayan Chavan |
Member |
Independent Director |
| Mr. Chetan Ashok Dekate |
Member |
Non-Independent Non Executive Director |
Nomination and Remuneration committee:
| Name of Member |
Designation |
Category |
| Mr. Prashant Chandresh Shukla |
Chairman |
Independent Director |
| Mr. Durgadas Narayan Chavan |
Member |
Independent Director |
| Mr. Chetan Ashok Dekate |
Member |
Non-Independent Non Executive Director |
15. The Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and
Outgo
a) Conservation of energy:
| Steps taken or impact on conservation of energy |
Companys operation does not Consume significant amount of energy. |
| Steps taken by the company for utilizing alternate sources of energy. |
The company is exploring option of using solar energy for various day
operation |
| Capital investment on energy conservation equipments |
Not applicable |
b) Technology absorption:
| the effort made towards technology absorption |
NIL |
| the benefits derived like product improvement cost reduction product development or
import substitution |
N.A. |
| in case of imported technology [important during the last three years reckoned from
the beginning of the financial year) |
N.A. |
| [a) the details of technology imported |
|
| [b) the year of import; |
|
| [c) whether the technology been fully absorbed |
|
| [d) if not fully absorbed, areas where absorption has not taken place, and the reasons
thereof |
|
| the expenditure incurred on Research and Development |
NIL |
Foreign Exchange earnings and outgo during the year, the total foreign exchange used
was Rs. Nil and the total foreign exchange earned was Rs. Nil.
16. Auditors
In accordance with the provisions of the Companies Act, 2013, the Board of Directors of
Your Company has proposed the ratification of appointment of M/s. MKMM and Associates,
Chartered Accountants, Aurangabad.
17. Auditors Report
The Notes on Financial Statements referred to in the Auditors" Report are self-
explanatory and therefore, in the opinion of the Directors, do not call for further
comments.
18. Sexual harassment:
The Company has zero tolerance for Sexual Harassment at workplace and has adopted a
Policy on prevention of Sexual Harassment in line with the provisions of Sexual Harassment
of Woman at Workplace (Prevention, Prohibition and Redresssal) Act, 2013 and the Rules
made thereunder. There was no complaint on sexual harassment during the year under review.
19. Particulars of Employees
As required by rule 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the information is treated as NIL, as no employee is drawing
salary equals to or above the limits mentioned in the said Rules.
20. Directors Responsibility Statement
Pursuant to the provisions of Section 134(3) (C) of Companies Act, 2013, the Board of
Directors hereby confirms that,
i. In the preparation of the annual accounts, the applicable accounting standards have
been followed and that there are no material departures.
ii. It has in the selection of the accounting policies, consulted the Statutory
Auditors and has applied them consistently and made judgments and estimates that are
reasonable and prudent, so as to give a true and fair view of the state of affairs of the
company as at 31st March, 2023 and of the profits of the company for that
period.
iii. It has taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of this Act for safeguarding the assets of the
company and for preventing and detecting fraud and other irregularities, to the best of
its knowledge and ability. There are however, inherent limitations, which should be
recognized while relying on any system of internal control and records.
iv. It has prepared the annual accounts on a going concern basis.
v. The directors had devised proper systems to ensure compliance with the provisions of
all applicable laws and that such systems were adequate and operating effectively.
21. Directors
Mr. Vikram Ashok Dekate, Managing Director continue to hold the office and Mr. Chetan
Ashok Whole time director, who retires by rotation and being eligible, offers himself for
re-appointment.
22. SECRETARIAL AUDIT REPORT AND EXPLANATION TO THE QUALIFICATIONS REPORTED IN THE
REPORT:
Provisions relating to Secretarial Audit as per Section 204 read with Rule 9 of The
Companies (Appointment and Remuneration of Managerial Personnel] Rules, 2014, the Company
has appointed Anand Phalke and Associates, Company Secretaries to undertake the
Secretarial audit of the Company.
23. Changes in Share Capital
The Company has not issued any Equity Shares during the year 2022-2023.
24. Extract of Annual Return
As required pursuant to section 92(3] of the Companies Act, 2013 and rule 12(1] of the
Companies (Management and Administration] Rules, 2014 an extract of annual return in MGT9
provided on portal of the company i.e. https://www.dekson.co.in
25. Particulars of loans, guarantees or investments under section 186:
During the year under review, the Company has not advanced any loans/ given guarantees/
made investments.
26. Risk Management Policy
The Company has developed and implemented a risk management policy which identifies
major risks Which may threaten the existence of the Company. The same has also been
adopted by your Board and is also subject to its review from time to time. Risk mitigation
process and measures have been also formulated and clearly spelled out in the said policy.
27. Related Party Transactions:
No agreement was entered with related parties by the Company during the current year.
All the related party transactions were entered by the Company in ordinary course of
business and were in arms length basis.
The Company presents all related party transactions before the Board specifying the
nature, value, and terms and conditions of the transaction. Transaction with related
parties are conducted in a transparent manner with the interest of the Company and
Stakeholders as utmost priority. Details of related party transactions durng the period
refer auditors report.
28. Significant and material orders passed by the regulators or courts or tribunals
impacting the going concern status and companys operations in future
During the year under review there has been no such significant and material orders
passed by the regulators or courts or tribunals impacting the going concern status and
companys operations in future.
29. Corporate Social Responsibility
The Company is not required to constitute a Corporate Social Responsibility Committee
as it does not fall within purview of Section 135(1) of the Companies Act, 2013 and hence
it is not required to formulate policy on Corporate social responsibility.
30. Declaration by Independent Directors
Companies (Appointment and Qualification of Directors) Rules, 2014 hence declaration
has been obtained.
31. Managerial remuneration policy:
Provisions relating to Managerial Remuneration as per Section 197 read with Rule 5 of
The Companies (Appointment and Remuneration of Managerial Personnel] Rules, 2014 The Board
has on the recommendation of the Nomination & Remuneration Committee framed a Policy
for Selection and Appointment of Directors, Senior management and their Remuneration.
32. Acknowledgement
The employees in M/s Dekson Castings Limited continues to work with great
dedication and commitment. The Board desires to place on record its appreciation to all
the employees of the company during the year under review.
The Board also acknowledges the support given by Banks, Financial Institutions and
Government Authorities.
|
By order of the Board |
|
Vikram Dekate |
| Date: 4th September 2023 |
(Chairman) |
| Place: Aurangabad |
DIN: 00530296 |
+91-9892691696
