Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Management Discussion and Analysis Report for the year under review, as stipulated under Listing Regulations, is presented in a section forming part of this Annual Report. For sake of brevity the items covered in Boards Report are not repeated in the Management Discussion and Analysis Report.
Business Responsibility Report
A Business Responsibility Report as per Regulation 34 of the Listing Regulations, detailing the various initiatives taken by the Company on the environmental, social and governance front forms an integral part of this Report.
Industry Structure and Development
There is no material change in the industry structure as was reported last year.
The Company operates under two major business segments i.e. Branded Consumer & Bazaar Products and Industrial Products.
Products such as Adhesives, Sealants, Art & Craft Materials and Others, Construction and Paint Chemicals are covered under Branded Consumer & Bazaar products segment. These products are widely used by carpenters, painters, plumbers, mechanics, households, students, offices etc. Sale of these products to joineries and projects are also covered under this segment.
Industrial Products segment covers products such as industrial adhesives, synthetic resins, organic pigments, pigment preparations, surfactants, etc. and caters to various industries like packaging, textiles, paints, printing inks, paper, leather, etc.
In both the above business segments, there are a few medium to large companies with national presence and a large number of small companies which are active regionally. Multinational companies are also present in many of the product categories in which the Company operates.
Current Year outlook
The prices of key raw materials which had increased significantly during the first half of the year under review started declining in the later part of the fiscal. Barring unforseen circumstances this trend is likely to continue during the initial months of the current year.
Continued slow down in construction industry and slow down in economic growth in recent months can impact sales growth for current year.
Major subsidiaries in India are taking initiatives to improve margins and achieve consistent sales growth in their respective businesses.
The Companys major international subsidiaries are in USA, Brazil, Thailand, Egypt, Dubai and Bangladesh.
The Company is in the process of commissioning a second plant in Bangladesh during the year 2019.
The US subsidiary plans to increase its focus on retail and e-commerce. Various initiatives are being taken to improve sales and margin in Brazil. The business environment in some of these countries remain subdued.
Outlook on opportunities, Threats, Risks and Concerns
The Indian economy provides a large opportunity to the Company to market its differentiated products.
Slower growth of the Indian economy and stress in sectors such as construction could impact the performance of the Company.
Overseas subsidiaries by virtue of their relatively smaller size remain vulnerable to the political and economic uncertainties of their respective countries.
Internal Financial Control Systems and their Adequacy
The Company has adequate internal financial control procedures commensurate with its size and nature of business.
The Company has appointed Internal Auditors who periodically audit the adequacy and effectiveness of the internal controls laid down by the management and suggest improvements.
The Audit Committee of the Board of Directors approves the annual internal audit plan and periodically reviews the progress of audits as per approved audit plans along with critical internal audit findings presented by internal auditors, status of implementation of audit recommendations, if any, and adequacy of internal controls.
Significant/Material orders passed by the Regulators
There are no significant/material orders passed by the Regulators or Courts or Tribunals impacting the going concern status of the Company and its operations in future.
Particulars of Employees and related disclosures
Disclosure pertaining to remuneration as per Section 197(12) of the Act, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as annexure 6 to this Report.
Details of employee remuneration as required under provisions of Section 197 of the Act and Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (including any modifications, thereof) are available at the Registered Office of the Company during working hours and shall be made available to any shareholder on request.
The year under review saw substantial progress in people practices, as the Company continued on its journey of excellence in people management policies and processes.
The Companys Happy and Healthy र(HAH) movement saw great participation with almost 50% of the employees engaging in various activities.
The Company enhanced the people processes like Career Navigator, Individual Development Plans and Career
Paths. Signature capability-building programs like Ignite (for Marketing Managers), Ascent (for Sales Managers), Capstone (for Middle Managers) and Edge (for Young Managers) strengthened the Learning & Development initiative and were well-received by participants and leaders.
Progressive HR policies such as work from home, paternity leave, saturdays offs, etc. were introduced as part of the journey to become a great place to work. Many existing employee benefit policies were revised to make them best in class.
The Company is committed to building a "listening organization" through multiple platforms. Workplace, our in-house social network platform, has played a key role in promoting two-way communication with employees.
The new Human Resource Management System Workline introduced during the year has strengthened the online HR systems and provided employees with a better user experience.
The total number of employees as on 31st March 2019 was 5,742.
|FOR AND ON BEHALF OF THE BOARD|
|Mumbai||M B Parekh|
|Date : 14th May 2019||Executive Chairman|