Dear Shareholders,
Your Directors have pleasure in presenting their 29th Annual Report together with the
audited accounts of the Company for the year ended 31st March, 2023.
Financial Highlights
C ( in Lakhs)
Particulars |
202223 |
202122 |
Revenue from Operations |
48675.52 |
35495.67 |
Other Income |
348.09 |
287.86 |
Profit before depreciation, interest and taxation |
6483.94 |
2440.67 |
Finance Cost |
63.58 |
73.29 |
Depreciation |
1411.44 |
1282.11 |
Profit before Tax |
5008.92 |
1085.27 |
Provision for Taxation Current |
1308.00 |
311.00 |
- Income Tax for earlier years |
- |
0.60 |
- Deferred |
(38.76) |
(39.64) |
Profit after Tax |
3739.68 |
813.31 |
Total Other comprehensive Income |
(35.13) |
1.43 |
Total Comprehensive Income of the Year |
3704.55 |
814.74 |
Statement of Retained Earnings |
|
|
Balance at the beginning of the year |
1523.22 |
1258.48 |
Add: Total Comprehensive Income of the Year |
3704.55 |
814.74 |
Less: Dividend of the previous year paid during the year |
267.70 |
- |
Transfer to General Reserve |
3000.00 |
550.00 |
Balance at the end of the year |
1960.07 |
1523.22 |
Dividend
Your Directors recommend a Dividend of C5/- per equity share (previous year C1.80/- per
equity share) for the year ended 31st March, 2023. The Dividend Distribution Policy is
available on weblink - https://s3.amazonaws.com/lincpen/
documents/145/original/Dividend-Distribution-Policy.pdf
Financial Performance
During the year under review, the Company's Revenue from Operations increased by 37.1%
to C48,675 Lakhs as compared to C35,496 Lakhs during the preceding year. The Profit after
Tax during the year was C3,740 Lakhs as compared to C813 Lakhs in the previous year, a
huge jump of 360%.
The year-end debtors were 29 days of sales for the year as compared to 35 days in the
previous year. The inventory holding as at year end was for 59 days of sales as compared
to 66 days as at the end of previous year.
A full analysis and discussion on the performance of the Company as well business
outlook is included in this Annual Report under the heading Management Discussion
and Analysis' as Annexure to this Report as well as other sections of the Annual Report.
Acquisition Outside India
The Company entered into an agreement with Gelx Industries Limited, Kenya to acquire
60% of its shareholding to enable the Company to grow in African market. Gelx is engaged
in the business of manufacturing and selling of writing instruments and contract
manufacture of plastic products for select customers. The completion of acquisition is
subject to necessary approval of appropriate authority.
Directors' Responsibility Statement
Pursuant to Section 134(5) of the Companies Act, 2013, the Directors hereby confirm
that:-(a) in the preparation of the annual accounts, the applicable accounting standards
had been followed along with proper explanation relating to material departures; (b) the
directors had 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
and loss of the company for that period; (c) the directors had 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; (d) the directors had prepared the annual accounts on a
going concern basis; (e) the directors had laid down internal financial controls to be
followed by the company and that such internal financial controls are adequate and were
operating effectively; and (f) 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.
Corporate Governance
The Company had complied with the requirements of Corporate Governance in terms of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015. A separate report
each on Corporate Governance (Annexure-B, along with Auditors' Certificate on its due
compliance) and Management Discussion and Analysis is attached to this report.
Secretarial Standards
The Directors state that applicable Secretarial Standards, i.e. SS-1, SS-2 and SS-3,
relating to Meetings of the Board of Directors', General Meetings' and
"Dividend', respectively, have been duly followed by the Company.
Listing
The equity shares of the Company are listed on National Stock Exchange of India Limited
(NSE), BSE Limited (BSE) and The Calcutta Stock Exchange Limited (CSE).
Directors and Key Managerial Personnel
In accordance with the Articles of Association of the Company, Shri Aloke Jalan, Whole
Time Director of the Company, retire by rotation at the ensuing Annual General Meeting and
being eligible, offer himself for re-appointment.
The following persons continued as Key Managerial Personnel of the Company in
compliance with the provisions of section 203 of the Companies Act, 2013:
Shri Deepak Jalan - Managing Director Shri Aloke Jalan - Whole Time Director Shri Rohit
Deepak Jalan - Whole Time Director Shri N. K. Dujari - Director - Finance & CFO Shri
Kaushik Raha - Company Secretary Shri Dipankar De, Company Secretary has resigned from the
Company w.e.f. 4th June, 2022.
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo
A statement pursuant to section 134 of the Companies Act, 2013, giving details of
measures taken towards conservation of energy, technology absorption, foreign exchange
earnings and outgo in accordance with the Companies (Accounts) Rules, 2014 is annexed as
Annexure - C.
Particulars of Employees and related disclosures
Disclosure as required Section 197(12) of the Companies Act, 2013 read with Rule 5(1),
5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules 2014 is annexed as Annexure D.
Policy on Directors' Appointment and Remuneration
Policy on Directors' Appointment is to follow the criteria as laid down under the
Companies Act, 2013 and the Listing Regulations, 2015 and good corporate practices.
Emphasis is given to persons from diverse fields or professions. Policy on Remuneration -
Guiding Policy on remuneration of Directors, Key Managerial Personnel and employees of the
Company is
Remuneration to unionised workmen is based on the periodical settlement with the
workmen union.
Remuneration to Key Managerial Personnel, Senior Executives, Managers, Staff and
Workmen (non Unionised) is industry driven in which it is operating taking into account
the performance leverage and factors such as to attract and retain quality talent.
For Directors, it is based on the shareholders resolutions, provisions of the Companies
Act, 2013 and Rules framed therein, circulars and guidelines issued by Central Government
and other authorities from time to time.
Declaration by Independent Directors
Pursuant to Section 149(6) of the Companies Act, 2013, Independent Directors of the
Company have made a declaration confirming the compliance of the conditions of the
independence stipulated in the aforesaid section.
Related Party Transactions
All related party transactions that were entered into during the year under report were
on an arm's length basis and in the ordinary course of business. There are no materially
significant related party transactions made by the Company during the year. Thus,
provisions of section 134(3) (h) and 188(1) of the Companies Act, 2013 are not applicable
and therefore, Form No. AOC-2 has not been attached. Related Party Transactions Policy is
available on weblink - https://s3.amazonaws.com/
lincpen/documents/148/original/Policy-on-Related-Party-Transaction.pdf
Risk Management
The Company has a structured risk management policy. The Risk management process is
designed to safeguard the organisation from various risks through adequate and timely
actions. It is designed to anticipate, evaluate and mitigate risks in order to minimize
its impact on the business. The potential risks are inventorised and integrated with the
management process such that they receive the necessary consideration during decision
making. It is dealt with in greater details in the management discussion and analysis
section.
Credit Rating
The Company's credit ratings ascribed by CRISIL are - Long Term CRISIL A/Stable;
and Short Term CRISIL A1.
Annual Evaluation by Board
The Board of Directors of the Company has initiated and put in place evaluation of its
own performance, its committees and individual directors. The result of the evaluation is
satisfactory and adequate and meets the requirement of the Company.
Whistle Blower Mechanism
Your Company has put in place Whistle Blower Mechanism. The detailed mechanism is given
in Corporate Governance Report forming part of this report.
Annual Return
The Annual Return of the Company as on March 31, 2023 is available on the Company's
website and can be accessed at www.lincpen.com
Meeting of the Board of Directors
Six (6) meeting of the Board of Directors, including a meeting of independent
Directors, without the attendance of the Non-Independent Directors and members of
management, were held during the year. The details of the same are provided in the
Corporate Governance Report.
Auditors
M/s Singhi & Co. (FRN: 302049E), Chartered Accountants were re-appointed as the
Statutory Auditors of the Company in 28th Annual General Meeting held on 5th September,
2022 for a period of 5 consecutive years commencing from the conclusion of the 28th Annual
General Meeting till the conclusion of the 33rd Annual General Meeting of the Company to
be held in year 2027.
In accordance with the Companies Amendment Act, 2017 enforced on 7th May, 2018 by the
Ministry of Corporate Affairs, the appointment of Statutory Auditors is not required to be
ratified at every Annual General Meeting.
The Report given by the Auditors on the financial statement of the Company is part of
this Report. There has been no qualification, reservation, adverse remark or disclaimer
given by the Auditors in their Report.
Secretarial Audit
The Company had appointed M/s D. C. Sahoo & Co., Practising Company Secretaries as
the Secretarial Auditor of the Company for the financial year 2022-23. The report of the
Secretarial Auditor is annexed as Annexure E.
Internal Finance Control
The Company has put in place adequate system of internal finance controls, commensurate
with its size and nature of its operations. During the year no material weakness in its
operating effectiveness was observed.
Corporate Social Responsibility
With the enactment of the Companies Act, 2013 and the Companies (Corporate Social
Responsibility) Rules, 2014 read with various clarifications issued by Ministry of
Corporate Affairs, the Company has undertaken activities as per the CSR Policy and the
details are contained in the Annual Report on CSR activities given in Annexure - F forming
part of this report.
The amount required to be spent on CSR activities during the year under review in
accordance with the provisions of Section 135 of the Companies Act, 2013 is C20.20 Lakhs
and the company has spent C20.20 Lakhs during the current financial year. Further as a
responsible corporate citizen, the Company had been involved in CSR activities since its
inception. Some of these activities will not fall under 2% CSR spend as per Schedule VII
read with Section 135 of the Companies Act, 2013. But the Company decided to continue with
them, since those activities are integral to the business of the Company.
Prevention of Sexual Harassment at workplace
The Company has in place a Policy against Sexual Harassment of Women at Workplace in
line with the requirement of Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. Internal Complain Committee (ICC) has been setup to
redress complaints received regarding sexual harassment. All employees (permanent,
contractual, temporary and trainees) are covered under this policy. Number of complaints
received by the Committee during the financial year: Nil
General
Your Directors state that no disclosure or reporting is required in respect of the
following matters as there were no transactions on these items during the year under
review:
There have been no material changes and commitments affecting the financial
position of the Company between the end of the financial year and date of this report.
There has been no change in the nature of business of the Company.
Details relating to deposits covered under Chapter V of the Act.
Details relating to loans, guarantees or investments under Section 186 of the
Act.
The Company does not have any scheme of provision of money for the purchase of
its own shares by employees or by trustees for the benefit of employees.
No significant or material orders were passed by the Regulators or Courts or
Tribunals which impact the going concern status and Company's operations in future.
No fraud has been reported by the Auditors to the Audit Committee or the Board.
Acknowledgement
Your Directors express their appreciation to all the employees for their valuable
contribution. Your directors also wish to express their gratitude for the continued
co-operation, support and assistance provided by all the valued Channel Partners,
Distributors, Suppliers, Bankers, Shareholders, the Central and State Governments.
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For and on behalf of the Board |
|
|
Deepak Jalan |
Rohit Deepak Jalan |
Place : Kolkata |
Managing Director |
Director- Sales & Marketing |
Dated : 12th May, 2023 |
DIN: 00758600 |
DIN: 06883731 |
|