DIRECTORS' REPORT Dear Share Holders, Your Directors have pleasure in presenting the Twenty Third Annual Report on the business and operations of the Company for the year ended March 31, 2015 and the Audited Statement of Accounts of the Company along with Auditors Report thereon. OPERATIONAL PERFORMANCE In spite of the fact that due to economic slowdown in Automotive Industry due to overall sluggish growth and in spite of such circumstances the sales of the company stood at Rs 1774.27 Lacks as against the previous year Sales of Rs 1731.15 Lacks. Further in spite of decline in sales the Profit of your company has also gone up as compared to the Profit for the correspondent Year. This achievement has been made possible by the high effort & cost effective less of the staff and the management of the Company. BUSINESS Your Company is mainly in the business of manufacturing of Automotive Bulbs & Lights. The Company holds 100 % Export oriented status. New markets have been developed by the company for increasing its presence and profitability. ANALYSIS REPORT The Management of your Company Looks forward in retaining its position as regularly increased in Profits. Your company has modernized manufacturing facilities in order to achieve the targets fixed for 2015-16. As automobile industry is now growing at a rapid speed & there is a demand and supply gap for the product which is being manufactured by your company i.e. Automotive Bulbs & Lights. OPPORTUNITIES The Marketing Team of your company is regularly in the process of expanding its exports in the new markets as we are doing in the past well. The Marketing team has opened new verticals. THREATS - Regular Increase in Energy prices, Fuel Prices, Running Cost, Foreign currency fluctuation may adversely affect the profitability of the company. - Increase in the cost of work force may impact the profitability of the company. - Slow down of the economic situation all over the world may affect the sales and profitability of the company. RISK AND CONCERN Though the management keep complete watch on the expenses and wastage at production level even the operating margins are under huge pressure due to increase in energy prices, raw material cost & other input costs are creating pressure on operating margins. It may not be possible for the company to recover the entire increase in raw material and input costs from the customers. SEGMENTWISE PERFORMANCE As per the relative segment reporting requirements, the company operates in Single Segment of Automotive Bulbs & Lights. LISTING OF SHARES ON STOCK EXCHANGES The Equity Shares of the Company are listed on 1. The Bombay Stock Exchange Ltd., Mumbai, having Company Code 530711 2. Delhi Stock Exchange Association Ltd., having Company Code 7355. The Listing Fees up to the Financial Year 2015-16 has been paid. ISIN NUMBER FOR NSDL & CDSL (International Securities Identification Number) The ISIN Number of the company is INE144C01014. The annual custodial fees for the Financial Year 2015-16 have been paid to National Securities Depository Limited (NSDL) and Central Depository Services Ltd., (CDSL). SHARETRANSFERAGENT For change of address, Physical transfer of shares, De-mat requests and other investor's related matters; The Members are requested to correspond with company's Registrar and Share Transfer Agent " Mas Services Ltd., T-34, 2nd Floor Okhla Industrial Area Phase -II, New Delhi —110020" Shares lodged for transfer at the Registrar's address are normally processed and approved by the Share Transfer Committee on fortnight basis. Dematerialization of shares is processed within 15 days. Other miscellaneous matters are processed by the Registrar within 30 days. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY Your company has a proper and adequate system of internal controls commensurate with its size to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions are authorized, recorded and reported correctly. It ensures that all financial and other records are reliable for preparing financial statements and other data for maintaining accountability of assets. CONSERVATION OF ENERGY The company continues its policy of priority to energy conservation measures including regular review of energy conservation, consumption and effective control and utilization of energy. RESEARCH & DEVELOPMENT Your company is manufacturing Halogen Lamps with well established technologies and hence does not require any Research and Development efforts. QUALITY POLICY AND CERTIFICATION The company is committed to provide consistent good quality products to its worldwide customers and to achieve the world class quality in the products manufactured. Every employee is involved in ensuring quality of products at all times. Management on its part is fully committed to further improve quality and provides all the sources to accomplish this task. The company is ISO / TS 16949:2009 certified. MEDIAN REMUNERATION COMPARISION Ashish Aggarwal, Director gets 2.66 times more salary than median remuneration of employees of company whereas Alok Aggarwal, Director gets 2.32 times more salary than median remuneration of employees of the company. RELATED PARTY TRANSACTION Your Company has entered into following transactions with the related parties which requires reporting as per Accounting Standard 18( AS-18) ACKNOWLEDGEMENT Your Company and its Directors place on record their deep appreciation for exemplary contribution of the employees at all levels. Their dedicated efforts and enthusiasm has been integral to your Company's impressive growth. For and on Behalf of the Board of Directors For Jagan Lamps Ltd., Sd/- (Ashish Aggarwal) Director DIN-01837337 Sd/-( Kamlesh Aggarwal) Managing Director DIN-07003955 Dated: 30 MAY 2015 Place : Kundli |