maharashtra scooters ltd share price Directors report

<dhhead>DIRECTORS REPORT</dhhead>

Dear Shareholders,

Your directors present the forty-eighth Annual Report along with the audited financial statements for FY2023.


Company overview

Maharashtra Scooters Ltd. (‘MSL’ or ‘the Company’) is an unregistered Core Investment Company (‘CIC’). As a CIC, a minimum of 90% of its assets stand invested in the Bajaj group and the balance representing accumulated surpluses is invested in debt and other instruments with the sole objective of earning a reasonable rate of return whilst protecting the principal.

The Company also sees an opportunity in manufacturing of pressure die casting dies, castings, jigs, and fixtures, primarily meant for the two and three - wheeler industry amongst other industries, which is the current manufacturing activity of the Company, though on a very limited scale basis.


Review of operations

During the year under review, the business operations of the Company continued to be (i) treasury operations involving management of surplus funds invested by the Company and (ii) manufacture of die casting dies, fixtures and die casting components, primarily meant for the automobiles industry.

Total income of the Company during FY2023 is C 21,776 lakh, as against C 19,446 lakh during the previous year. Income from investments aggregating to C 19,891 lakh represented major portion of the turnover, which during the previous year was C 17,691 lakh.


Financial Highlights

The highlights of the financial results are given below:

(C in Lakh)




Total income



Gross profit before depreciation






Profit before tax



Tax expenses



Profit for the year



Earnings per share (C)




Continued classification as a Core Investment Company

Under the Master Circular Core Investment Companies (Reserve Bank) Directions, 2016, as amended, the Company is termed as an unregistered CIC as per Reserve Bank of India Guidelines dated 13 August 2020. As an unregistered CIC, the Company must invest at least 90% of its net assets in Group companies, of which at least 60% must be through equity investments.

The Company continued to meet the conditions for being classified as an unregistered CIC, exempted from registration with Reserve Bank of India (‘RBI’). The Company did not transfer any amount to reserves during FY2023 nor does it propose to carry to any reserve during FY2024.


Dividend Distribution Policy

Pursuant to the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’), the Company had formulated a Dividend Distribution Policy, which sets out the parameters and circumstances to be considered by the Board in determining the distribution of dividend to its shareholders and/ or retaining profit earned. The Dividend Distribution Policy enables the Company to maintain a minimum dividend pay-out of 50% of distributable profit on standalone basis each year. The policy is available on the website of the Company and can be accessed at Distribution%20Policy.pdf



Final dividend

The Board of Directors recommend for consideration of the members at the ensuing Annual General Meeting (‘AGM’), payment of final dividend of C 60 per equity share (600%) of face value of C 10, for the financial year ended 31 March 2023.


Interim dividend

The Board, at its meeting held on 13 September 2022, declared an interim dividend of C 100 per equity share (1000%) of face value of C 10, for the year ended 31 March 2023. The record date fixed for the purpose of declaration of divided was 23 September 2022. The total dividend pay-out on account of interim dividend was C 11,428.57 lakh.

The total dividend pay-out (including interim dividend) for FY2023 would be C 18,285.71 lakh.

The dividend declared/recommended is in accordance with the principles and criteria set out in the Dividend Distribution Policy.

The dividend, if declared, at the ensuing AGM will be taxable in the hands of the members of the Company pursuant to Income Tax Act, 1961. For further details on taxability, please refer to Notice of AGM.


Subsidiary, associates and joint ventures

The Company neither has any subsidiary or associate nor the Company has entered into a joint venture with any company.


Directors and Key Managerial Personnel (KMP)

(i) Director liable to retire by rotation

V Rajagopalan (DIN: 02997795) retires by rotation at the ensuing AGM and being eligible, offers himself for re-appointment. Brief details of V Rajagopalan, who is seeking re-appointment, are given in the Notice of AGM.


(ii) Changes in KMP: a) Resignation

Shriniwas Pathak, Manager & Chief Executive Officer, tendered his resignation and was relieved from the services of the Company with effect from close of business hours on 15 December 2022.


b) Appointment

Consequent upon the resignation of Shriniwas Pathak, the Board at its meeting held on 19 October 2022, after taking into consideration the recommendation of Nomination & Remuneration Committee, appointed Sanjay Uttekar as the Chief Executive officer of the Company with effect from 16 December 2022.


Declaration by Independent Directors

The independent directors have submitted declaration of independence, as required under section 149(7) of the Companies Act, 2013 (‘the Act’), stating that they meet the criteria of independence as provided in section 149(6) of the Act and Regulation 16 of the SEBI Listing Regulations, as amended.

The independent directors have also confirmed compliance with the provisions of rule 6 of Companies (Appointment and Qualifications of Directors) Rules, 2014, as amended, relating to inclusion of their name in the databank of independent directors.

The Board took on record the declaration and confirmation submitted by the independent directors regarding them meeting the prescribed criteria of independence, after undertaking due assessment of the veracity of the same in terms of the requirements of regulation 25 of the SEBI Listing Regulations.


Policy on Directors’ appointment and remuneration

The Board on the recommendation of the Nomination and Remuneration Committee has framed a Remuneration Policy. The policy, inter alia, provides for: a) the criteria for determining qualifications, positive attributes and independence of directors; and b) a policy on remuneration for directors, key managerial personnel and other employees. The policy is directed towards a compensation philosophy and structure that will reward and retain talent and provides for a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the Company and its goals.

The detailed Remuneration Policy is placed on the Company’s website at Remuneration%20Policy.pdf


Compliance with Code of Conduct

All Board members and senior management personnel have affirmed their compliance with the Company’s Code of Conduct for FY2023.

A declaration to this effect signed by the Chief Executive Officer is included in this Annual Report.


Annual return

A copy of the annual return as provided under section 92(3) of the Act, in the prescribed form, which will be filed with the Registrar of Companies/Ministry of Corporate Affairs within the Regulatory timelines will be hosted on the Company’s website and can be accessed at html#annualReports


Number of meetings of the Board

Six (6) meetings of the Board were held during FY2023. Details of the meetings and attendance thereat forms part of the Corporate Governance Report.


Directors’ responsibility statement

In accordance with the provisions of section 134(3)(c) of the Act and based on the information provided by the Management, the directors state that: a) in the preparation of the annual accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departure, if any; b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period; c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) they have prepared the annual accounts on a going concern basis; e) they have laid down internal financial controls to be followed by the Company and that such internal financial controls were adequate and were operating effectively; and f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.


Audit Committee

The Audit Committee comprises of Yogesh Shah (DIN: 00137526) as Chairman, Naresh Patni (DIN: 00045532) and Lila Poonawalla (DIN: 00074392) as members.

During FY2023, all recommendations of the Audit Committee were accepted by the Board.

The brief terms of reference and attendance record of members are given in the ‘Corporate Governance Report’.


Particulars of loans, guarantees and investments

The Company has not given any loans or provided any security. Full particulars of the investments covered under the provisions of section 186 of the Act, made by the Company are detailed in the Financial Statements attached to this Report.


Share capital

As on 31 March 2023, the paid-up share capital of the Company stood C 1,143 lakh consisting of 11,428,568 shares of C 10 each. There was no public issue, rights issue, bonus issue or preferential issue, etc. during the year. The Company has not issued shares with differential voting rights or sweat equity shares, nor has any scheme for grant of stock option.


Related party transactions

All contracts/arrangements/transactions entered by the Company during FY2023, with related parties were in compliance with the applicable provisions of the Act and SEBI Listing Regulations. Prior omnibus approval of the Audit Committee is obtained for all related party transactions which are of foreseen and repetitive nature as well as for transactions which are not foreseen and details of which are not available, up to the limits as in the SEBI Listing Regulations. Pursuant to the said omnibus approval, details of transactions entered into are also reviewed by the Audit Committee on a quarterly basis.

All related party transactions entered during FY2023 were on arm’s length basis and in the ordinary course of business of the Company under the Act and not material under the SEBI Listing Regulations. None of the transactions required members’ prior approval under the Act or SEBI Listing Regulations.

Details of transactions with related parties during FY2023 are provided in the notes to the financial statements. There were no material related party transactions requiring disclosure as per the Act. Hence, the prescribed Form AOC 2 does not form a part of this report.

The Policy on Materiality of and Dealing with Related Party Transactions is placed on the Company’s website and can be accessed at dealing%20with%20Related%20Party%20Transactions.pdf


Material changes and commitments

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 and the date of this Report.


Conservation of energy, technology absorption, foreign exchange earnings and outgo

Details pursuant to Rule 8(3) of the Companies (Accounts) Rules, 2014

Conservation of energy

Replacement of LED Lamps in the factory has contributed in saving of electricity.

Technology absorption

No expenditure was incurred by the Company attributable to technology absorption during the year.

Foreign exchange earnings and Outgo

The foreign exchange earned by the Company during the year was Rs 41.66 lakh, while outgo was Rs 2.05 lakh.


Corporate Social Responsibility (CSR)

Considering the CSR spend of the Company not exceeding fifty lakh rupees, the Company is not required to constitute a CSR committee and the functions of the CSR Committee are being discharged by the Board. Detailed information on CSR Policy and its salient features forms part of ‘Annual Report on CSR activities’ which is annexed to this Report.

The policy has been hosted on the website of the Company and can be accessed at

The Chief Financial Officer has certified that the funds disbursed have been utilised for the purpose and in the manner approved by the Board for FY2023.


Formal Annual Evaluation of the performance of the Board, its Committees and Directors

Pursuant to section 178 of the Act, the Nomination and Remuneration Committee (NRC) and the Board has decided that the evaluation shall be carried out by the Board only and the NRC will only review its implementation and compliance.

Further as per Schedule IV of the Act and provisions of SEBI Listing Regulations, the performance evaluation of Independent Directors shall be done by the entire Board of Directors excluding the Director being evaluated, on the basis of performance and fulfillment of criteria of independence and their independence from management. Accordingly, the Board has carried out an annual performance evaluation of its own performance, that of its Committees, Chairperson and individual Directors.

The manner in which formal annual evaluation of performance was carried out by the Board for the period from 1 January 2022 to 31 December 2022, is given below: A questionnaire-cum-rating sheet was deployed using an IT platform for seeking feedback of the directors with regards to the performance of the Board, its Committees, the Chairperson and individual directors, which is on the basis of the Board approved criteria for evaluation of the Board, its Committees, Chairperson and individual directors.

From the individual ratings received from the directors, a report on summary of ratings in respect of performance evaluation of the Board, its Committees, Chairperson and individual directors for the period from 1 January 2022 to 31 December 2022 and a consolidated report thereof was arrived at. The report of performance evaluation so arrived at was then noted and discussed by the Board at its meeting held on 21 January 2023.

The NRC reviewed the implementation and compliance of the performance evaluation at its meeting held on 21 January 2023.

Under the law, as per the report of performance evaluation, the Board shall determine, inter alia, whether to continue the term of appointment of an independent director. Based on the report and evaluation, the Board and NRC at their meeting held on 21 January 2023, determined that the appointment of all independent directors may continue.

For FY2023, the criteria and process followed by the Company was reviewed by the NRC and the Board, which opined to be compliant with the applicable provisions and found satisfactory. The criteria for evaluation of the Board, its Committees, Chairperson and individual directors is placed on the website of the Company and can be accessed at Other than the Chairman of the Board and the NRC, no director had access to the individual ratings given by the directors.


Orders passed by the Regulators or Courts

During FY2023, there were no significant or material orders passed by any regulator or court or tribunal impacting the going concern status and Company’s operations in future.


Internal Audit

The internal audit function provides an independent view to its Board of Directors, the Audit Committee and Senior Management on the quality and effectiveness of the internal controls, risk management and governance related systems and processes.

At the beginning of each financial year, an audit plan is rolled out after approval of the Audit Committee. The Audit Committee on a quarterly basis reviews the internal audit reports. The Committee also reviews adequacy and effectiveness of internal controls based on such reports. Significant audit observations, corrective and preventive actions thereon are presented to the Audit Committee on a quarterly basis.


Internal financial controls

The Company has in place adequate financial controls commensurate with its size, scale and complexity of operations with reference to its financial statements. Internal financial controls of the Company are also similarly commensurate. These have been designed to provide reasonable assurance about recording and providing reliable financial information, ensuring integrity in conducting business, accuracy and completeness in maintaining accounting records and prevention and detection of frauds and errors.

The Board is of the opinion that internal financial controls with reference to the financial statements were adequate and operating effectively.


Risk Management

Managing risk is fundamental to any business in general and in particular to financial services industry. Considering the nature of business of MSL, i.e., investments in securities of group companies for a long-term horizon, the risk perceived is low. However, risks arising out of businesses of the group companies are the key risks of the Company. MSL has a risk governance framework in place which provides an integrated approach for identifying, monitoring and mitigating risks associated with its business.

Key risks exposure of MSL includes market risk, credit risk, governance risk, reputation risk and compliance risk. The Risk Management Committee of the Board, assists the Board in monitoring various risks, review and analysis of risk exposures and mitigation plans related to the Company.

A Risk Management Policy has been adopted by the Board of Directors which, inter alia, sets out risk strategy, approach and mitigation plans, liquidity risk management and asset liability management.

The group companies have their own risk management frameworks in line with their strategic business operations as appropriate to the industry in which they operate. Business operations of each of the group companies, the risks faced by them and the risk mitigation tools followed by them are reviewed periodically by the Risk Management Committees and the Boards of the respective group companies.

The details of meetings of Risk Management Committee of the Company and the members who attended the same are mentioned in the Corporate Governance Report.


Whistle Blower Policy/Vigil Mechanism

The Company has a Whistle Blower Policy encompassing Vigil Mechanism pursuant to the requirements of the section 177(9) of the Act and regulation 22 of the SEBI Listing Regulations. The whistle blower framework has been introduced with an aim to provide employees and directors with a safe and confidential channel to share their inputs about such aspects which are adversely impacting their work environment. The Policy/Vigil Mechanism enables directors, employees and other persons to report their concerns about unethical behaviour, actual or suspected fraud or violation of the Company’s Code of Conduct or ethics policy and leak or suspected leak of unpublished price sensitive information.

During FY2023, there were no complaints received under the above mechanism nor was any employee denied access to the Audit Committee. The Audit Committee reviews the functioning of the Vigil Mechanism/Whistle Blower Policy once a year.

The policy is uploaded on the website of the Company and can be accessed at https://www.mahascooters. com/pdf/Whistle%20Blower%20Policy.pdf


Corporate Governance

Pursuant to SEBI Listing Regulations, a separate section titled ‘Corporate Governance’ has been included in this Annual Report, along with the reports on Management Discussion and Analysis and General Shareholder Information.

The Chief Executive Officer and the Chief Financial Officer have certified to the Board with regard to the financial statements and other matters as specified in the SEBI Listing Regulations.

A certificate from the statutory auditors of the Company regarding compliance of conditions of corporate governance is annexed to this Report.


Business Responsibility and Sustainability Report

Pursuant to amendment in SEBI Listing Regulations, top 1000 listed entities based on market capitalisation are required to submit a Business Responsibility and Sustainability Report (‘BRSR’) with effect from FY2023. Accordingly, the Company, being one of the top 1000 listed entity, has adopted a policy on BRSR. A detailed BRSR in the format prescribed by SEBI describing various initiatives, actions and process of the Company towards the ESG endeavor forms the part of Annual Report and has also been hosted on Company’s website at


Secretarial Standards of ICSI

The Company has complied with the requirements prescribed under the Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2) read with the MCA circulars.


Auditors and Auditors’ Report

Statutory Auditors

Pursuant to the provisions of section 139 of the Act and based on the recommendations of the Audit Committee and Board of Directors, the members at the 47th AGM of the Company held on 25 July 2022, had appointed KKC & Associates LLP, Chartered Accountants (Firm Registration No.105146W/ W100621) as the Statutory Auditors of the Company, from the conclusion of 47th AGM till the conclusion of 52nd AGM, covering a term of five consecutive years.

The statutory audit report given by KKC & Associates LLP, for FY2023 does not contain any qualification, reservation or adverse remark or disclaimer.


Secretarial Auditor

Pursuant to the provisions of section 204 of the Act and Rules made thereunder, the Company had re-appointed, Shyamprasad D Limaye, Practising Company Secretary (FCS No. 1587, CP No. 572) to undertake the secretarial audit of the Company for FY2023. The secretarial audit report for FY2023, as issued by him in the prescribed form MR-3 is annexed to this Report.

The said secretarial audit report does not contain any qualification, reservation or adverse remark or disclaimer made by the secretarial auditor.

Pursuant to Regulation 24A(2) of SEBI Listing Regulations, a report on secretarial compliance for FY2023 has been issued by Shyamprasad D Limaye and the same will be submitted with the stock exchanges within the given timeframe. There are no observations, reservations or qualifications in the said report. The report will be available on the website of the Company at The auditors i.e. statutory auditors and secretarial auditors have not reported any matter under section 143(12) of the Act, and therefore, no detail is required to be disclosed under section 134(3)(ca) of the Act.


Statutory Disclosures

The financial results of the Company are placed on the Company’s website at https://www.mahascooters. com/investors.html#financialResults Details as required under the provisions of section 197(12) of the Act, read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, containing, inter alia, ratio of remuneration of Directors and KMP to median remuneration of employees and percentage increase in the median remuneration, to the extent applicable, are annexed to this Report.

Details as required under the provisions of section 197(12) of the Act, read with rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, will be made available to any member by way of email, as per provisions of section 136(1) of the said Act. The provisions of section 148 of the Act, are not applicable to the Company. Accordingly, there is no requirement of maintenance of cost records as specified under sub-section (1) of section 148 of the Act. The Company has a Policy on Prevention of Sexual Harassment at the workplace. There was no case reported during the year under review, under the said policy. Further, as there were no women employees employed in the Company during FY2023, the Internal Complaints Committee has not been constituted as required under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

There was no change in the nature of business of the Company during FY2023.

Neither any application was made, nor any proceeding is pending under the Insolvency and Bankruptcy Code, 2016, against the Company.

The Company has not accepted any fixed deposits under Chapter V of the Companies Act, 2013 and as such no amount of principal and interest were outstanding as on 31 March 2023.

During FY2023, the Company had not borrowed any funds from any banks or Financial Institutions.


Industrial relations

During FY2023, the industrial relations remained cordial.

On behalf of the Board of Directors

Sanjiv Bajaj


DIN: 00014615

Pune: 24 April 2023