To,
The Members,
Zodiac Clothing Company Limited.
The Board of Directors are pleased to present the Company's 39th
Annual Report and the Company's Audited Financial Statements (Standalone and
Consolidated) for the Financial Year ended 31st March, 2023.
- BUSINESS:
During the financial year ended 31st March, 2023, the
operational revenue of the Company on a Standalone basis was R16,900 Lakhs vs. R12,824
Lakhs in the previous year. Profit /(Loss) Before Tax and before exceptional items was
R(2,385) Lakhs vs. R(884) Lakhs in the previous year, while the Net Profit/ (Loss) after
Tax for the Financial Year ended 31st March 2023 was R1,579 Lakhs vs. R(988)
Lakhs in the previous year. The Total Comprehensive income for the year was R1,999 Lakhs
vs. Comprehensive Loss of R(408) lakhs in the previous year.
On a Consolidated basis, the Operational revenue of the Company for the
year increased to R17,481 Lakhs from R12,665 Lakhs in the previous year. The Consolidated
Profit /(Loss) before Tax and before exceptional items was R(2,343) Lakhs vs. R(1,646)
Lakhs in the previous year, the Net Profit
/(Loss) after tax being R1,598 Lakhs vs. R(1,637) Lakhs in the previous
year. The Consolidated total Comprehensive income for the year was R2,084 Lakhs vs.
Comprehensive Loss of R(979) Lakhs in the previous year.
The year under review presented continued challenges arising out of a
volatile macroeconomic environment, supply chain disruptions and geopolitical unrest.
However, the company remained focused on executing its strategic roadmap and building on
the foundations we have laid to enable future growth. Globally, the clothing industry was
impacted by continued supply chain disruptions arising from shipping delays and the
US's ban on goods from China's Xinjiang region. Further, demand in Europe was
significantly impacted by the ongoing war in Ukraine. While currency depreciation
typically aids export competitiveness, the benefits of this were limited given the
INR's strength relative to the currencies of competitor nations which saw higher
depreciation against the USD.
In India, the company has witnessed an encouraging response to new
products launched during the last year, particularly z3 Polo knit shirts, and is readying
more exciting new product lines for the coming year. The company's Zod! line of party
wear is also witnessing a resurgence given that the offering caters well to evolving
fashion trends. Finally, the online business continued to grow rapidly during the year and
remains a key area of focus for management to drive growth of the branded business going
forward.
In the export segment, the "China Plus One" scenario
wherein global players are seeking to diversify
their supply chains to limit their reliance on China remains a large
opportunity, although the impact on India has thus far been restricted to certain
industries such as footwear. In apparel, the biggest beneficiary of this trend so far has
been Vietnam, most notably for supplies to the US and the EU. Were India to negotiate a
level playing field in terms of tariffs relative to Vietnam and other "Tiger
Cub" countries, it could be truly transformative for the country's clothing
exporters.
With the growing awareness of environmental and social issues,
sustainability has become a key trend in the fashion industry. Indian fashion brands are
increasingly adopting eco-friendly practices in their supply chain, production, and
marketing. For instance, many brands are using organic and recycled materials, minimising
waste and carbon footprint. As consumers are becoming more conscious of their impact on
the planet, sustainable fashion is expected to grow in demand.
ZODIAC has long pioneered in sustainability & ecological
consciousness is entrenched throughout the organisation. Our manufacturing plants are GOTS
certified for organic cotton. The garment dyeing & washing facilities are engineered
to reduce water consumption by 66%. From the balance 34% water, we recycle and reuse 92%!
The differential is made up by harvesting rain water, the excess of which is used to
recharge ground water, making us water positive. Our manufacturing plants comply with
norms for zero discharge of hazardous chemicals into the environment. Custom designed and
built heat extractors use the high temperature of washing and dyeing residue to feed
pre-heated water to our boilers. This reduces our energy usage and carbon footprint,
helping us score 100/100 for energy conservation on the HIGG Index, which rates
environmental & social sustainability. Additionally, our head office is a LEED Gold
certified building. ZODIAC, working towards a responsible and sustainable future.
As the company's sales normalise post the pandemic and grow
therefrom, the bottom line should see significant gains with reduced costs. Further, we
also expect our revenues to improve substantially after the commencement of manufacturing
activities at our Bangladesh unit by the end of this calendar year.
During the year under consideration, the Company's Promoters have
infused an amount of R11.99 crores by subscribing to equity shares issued on preferential
basis to enable the Company to meet its working capital requirements, outstanding loan
repayments and capital expenditures, as well as for general corporate purposes.
- RESULTS OF OPERATIONS
Financial Results (R in Lakhs)
|
Standalone
|
Consolidated
|
|
2022-23
|
2021-22
|
2022-23
|
2021-22
|
Revenue from operations |
16,900 |
12,824 |
17,481 |
12,665 |
Other Income |
748 |
3,238 |
860 |
2,671 |
Total Income |
17,648 |
16,062 |
18,341 |
15,336 |
Profit/(Loss) Before Exceptional Items and Tax |
(2,385) |
(884) |
(2,343) |
(1,646) |
Exceptional Item |
3,901 |
- |
3,901 |
- |
Profit/(Loss) Before Tax |
1,516 |
(884) |
1,558 |
(1,646) |
Provision for Taxation: |
|
|
|
|
Current tax |
- |
113 |
- |
113 |
Deferred tax Charge/(Credit) |
(64) |
(23) |
(41) |
(135) |
Tax in respect of earlier years |
1 |
14 |
1 |
13 |
Profit/(loss) after taxation |
1,579 |
(988) |
1,598 |
(1,637) |
Other Comprehensive Income |
420 |
580 |
486 |
658 |
Total Comprehensive Income/(loss) for the year |
1,999 |
(408) |
2,084 |
(979) |
- SUBSIDIARY COMPANIES:
As on 31st March, 2023, the Company had one (1)
subsidiary and three (3) step-down subsidiaries. There are no Associate Companies within
the meaning of Section 2(6) of the Companies Act, 2013 ("Act"). There has been
no material change in the nature of the business of the subsidiaries.
Pursuant to the provisions of Section 129(3) of the Act, a statement
containing salient features of the financial statements of the Company's
subsidiaries/ step-down subsidiaries in Form AOC-1 is attached as Annexure 3 to
this report.
Pursuant to the provisions of Section 136 of the Act, the Standalone
and Consolidated financial statements of the Company along with relevant documents and the
financial statements of the subsidiaries/step-down subsidiaries, are available on the
website of the Company at the link https://www. zodiaconline.com/others.
- CONSOLIDATED FINANCIAL STATEMENTS:
In accordance with the requirements of Accounting Standards AS-21,
a Report on the performance and financial position of all the company's
subsidiaries/step-down subsidiaries are included in the Consolidated Financial Statements
and their contribution to the overall performance of the
Company, provided in Form AOC 1, forms part of this Annual
Report.
- CREDIT RATING:
The credit rating has been reaffirmed by CARE Ratings Limited and
the ratings are disclosed in the Corporate Governance Report which forms part of this
Annual Report.
- CAPEX:
The Company has incurred Capital expenditure of R262.72 Lakhs
during the year, primarily in state of the art production equipment, new stores and
information systems to sharpen our competitiveness.
- LIQUIDITY:
The Debt Equity ratio as on 31st March, 2023 was 0.25 on
a Standalone basis and 0.23 on a Consolidated basis.
The cash and bank balances/cash equivalents along with liquid
investments (free reserves on consolidated basis) were R4,221.90 Lakhs as on March
2023, as against R1,058.63 Lakhs last year.
- SHARE CAPITAL:
During the year under review, the paid up share capital of the
Company increased from R24,75,95,310/- to R25,99,37,170/- pursuant to
allotment of 12,34,186 (Twelve Lakhs Thirty-Four Thousand One Hundred
and Eighty-Six) Equity Shares of R10/- each at a premium of R87.23/- per Equity Share on
Preferential Basis to the Promoters of the Company in February 2023.
- DIVIDEND:
The Board of Directors of your Company have not recommended any
dividend for the Financial year 2022-23 (previous year - NIL)
- CORPORATE GOVERNANCE:
The Company has complied with all the mandatory requirements
regarding Corporate Governance as required under Regulations 17 to 27 and Schedule V of
the SEBI LODR with the Stock Exchange(s). The report on Corporate Governance, Management
Discussion and Analysis, as well as the Auditors Certificate on the compliance of
conditions of Corporate Governance forms a part of the Annual Report. As required under
Regulation 17(8) of Listing Regulations, the Managing Director and CFO have certified to
the Board about compliance by the Company with the requirements of the said sub regulation
for the financial year ended 31st March, 2023.
- CONTRACTS AND ARRANGEMENT WITH RELATED PARTIES:
In line with the requirements of the Companies Act, 2013 and the
amended SEBI LODR, the Company has a Policy on Related Party Transactions which is also
available on Company's website at the link
https://www.zodiaconline.com/codes-and-policies. The Policy ensures that proper reporting,
approval and disclosure processes are in place for all transactions between the Company
and Related Parties.
The Policy inter alia deals with the review and approval of Material
Related Party Transactions (MRPTs) keeping in view the potential or actual conflict of
interest that may arise because of entering into these transactions. All Related Party
Transactions are placed before the Audit Committee for review and prior approval
(including omnibus approvals) and wherever applicable board/members approvals are
obtained. Note no. 44 of the Standalone financial statements contained disclosures on
related party transactions.
Disclosure on MRPT is given in Form AOC 2 (Annexure 4) as per
Section 134(3)(h) read with Section 188(2) of the Companies Act, 2013. In terms of the
amended SEBI LODR, the prior approval of the members is required to be obtained every year
in respect of each MRPTs. Accordingly, the approval of the members is being sought in item
No. 3 of the Notice of the 39th AGM.
- QUALITY:
The focus on productivity gains and consistent quality continues to
be the cornerstone of the
Company's philosophy. Quality, continuous innovation and pursuit
of high value addition and cost control continue to drive the Company.
Zodiac is implementing cutting edge technology through a paperless
floor management software which tracks quality on a live basis and helps the manufacturing
lines take pre-emptive steps and thereby control down time and rejections. This is a SAAS
based model uploaded in the cloud with automatic escalation up the matrix of the
management in a manner that ensures every stakeholder participates in the process of
making a high quality product.
- BRAND BUILDING:
The Company continues to invest in building the strength of its
three brands (Zodiac, z3 and ZOD!), to drive sales traction now as well as in the future.
Upgradation of quality to win customer loyalty is a continuously
ongoing exercise with the objective of achieving customer delight at the price value
relationship, where the company provides truly international quality and design at prices
which are affordable even without discounts.
- CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNING AND OUTGO:
- Conservation of Energy
- The steps taken or impact on conservation of energy:
The Company having already achieved excellent benchmarks in
conservation of energy, has invested in steam optimization projects for its process
requirements, which has resulted in a drop in the consumption and the efficiency is going
up.
Conservation of Energy continues to receive increased emphasis at all
units of the Company. Energy audits and Inter-unit studies are carried out on a regular
basis for analyzing and taking steps for reduction of energy consumption. we believe that
conservation is a continuous effort and every day there is an opportunity to be better
than the previous day -this is what helps us to live up to the stringent standards we set
for ourselves.
All machinery and equipment are being continuously serviced, updated
and overhauled to maintain them in good and energy efficient condition. This resulted in
consumption of lesser energy consumption.
The company has achieved significant advancements in energy
conservation by transitioning from the utilization of furnace oil and diesel to employing
gas-fired steam & power generation. This makes the entire process of steam generation
more efficient, resulting in reduced fuel wastage and a diminished need for
transportation. In contrast to previous
practices involving the transportation of furnace oil via tankers from
distant states, the adoption of gas delivery through on-site pipelines from the central
grid has proven to be remarkably cost-effective and environmentally beneficial,
effectively lowering the carbon footprint. Moreover, this shift has eradicated fuel losses
attributed to transportation and spillage, ultimately amplifying the yield per unit of
expenditure.
Our Higg score speaks for itself 100/100 on the following evaluation
parameters water/waste water
/ 90 + on energy.
- Pollution Control
The Company's zero liquid discharge plant for water treatment
has resulted in the Company's dependency on outside water to almost nil.
With the increase in the catchment area for rain water harvesting, the
surplus water generated is used to recharge the existing ground water sources and for
maintaining the beautiful garden and flowering plants around the factory premises thereby
creating a very pleasant atmosphere. The Company's continuous efforts have been
recognized by the Pollution Control Board and the Company is being referred as a model
factory by the Pollution Control Board.
It is the Company's continuous thrust in this area that has
resulted in results which far exceed the industry norm. As a result of aggressively
mapping the input parameters /processes & live balancing of the effluent treatment,
the Company has been able to achieve a high level of efficiency.
With its energy-efficient design, the ZODIAC corporate office utilizes
around 60 percent less energy than a typical office of the same size.
- Technology,Absorption,Adaptationsand Innovation:
- The efforts made towards technology absorption:
Continuing with its thrust on being energy efficient
-the company has been investing in the process of changing over the
boilers from diesel /furnace oil to gas fired -resulting in savings of fuel and making the
process more cost effective .We are also optimizing the dye process house by bringing in
more fully computerised automatic equipment to do the processing which will result in a
further savings in chemicals and water -the next step is investment technology to monitor
steam consumption and efficiency thereby making that next jump in our conservation
efforts.
- the benefits derived like product improvement, cost reduction, product development or
import substitution;
The Company continues to use the latest technologies for improving the
productivity and quality of its services and products. The Company's operations do
not require significant import of technology. In addition to product development and raw
material development which continue to be strengthened, Research and Development
activities on fashion designing are carried out on an on-going basis. Adopting
technologies with state-of-art systems and machineries like PLM software, automated
cutting machine, automated fabric inspection machines, etc., the quality of the products
and efficiency of the systems have substantially improved. Applying these technologies has
helped keep costs of production under control.
- In case of imported technology (imported during the last three years reckoned from the
beginning of the financial year)-
Not Applicable
- Foreign Exchange Earnings and Outgo:
(R in Lakhs)
Foreign exchange used and earned |
2022-23 |
2021-22 |
a. |
Foreign Exchange Earnings |
9,934 |
7,461 |
b. |
Foreign Exchange Outgo |
2,581 |
2,108 |
- CORPORATE SOCIAL RESPONSIBILITY:
Corporate Social Responsibility (CSR) is traditionally driven by a
moral obligation and philanthropic spirit. The Company has a heritage of being engaged in
such activities. The Company is committed to sustainability and all business decisions
take in to account its social and environmental impact.
As per the provisions of Section 135 of the Companies Act 2013, the
Company has a CSR Committee, details of which are given in the Corporate Governance Report
forming part of this report. The details of the Company's CSR policy has been posted
on the website of the Company at the link https://www.
zodiaconline.com/codes-and-policies.
The Report on CSR activities as required under Companies (Corporate
Social Responsibility) Rules, 2014 including a brief outline of the Company's CSR
Policy, total amount to be spent under CSR for the Financial Year, amount unspent and the
reasons thereof are set out at Annexure 1 forming part of the report.
- DIRECTORS & KEY MANAGERIAL PERSONNEL
:
During the year, following were the changes in
Directors/ Key Managerial Personnel:
- Mr. S.Y. Noorani (DIN: 00068423) was re- appointed as the Managing Director of the
Company for further period of (three) years with effect from 1st March, 2023.
- Dr. Naushad Forbes (DIN: 00630825) has been re-appointed as an Independent Director for
a second term of 5 (five) years from 29th March, 2023 to 28th March,
2028.
- In accordance with the provisions of Section 152 of the Companies Act 2013 and the
Articles of Association of the Company, Mr. S. Y. Noorani, Vice Chairman & Managing
Director retires by rotation at the ensuing Annual General Meeting and being eligible, has
offered himself for re-appointment.
List of Key Managerial Personnel
Sr. No |
Name of the person |
Designation |
1. |
Mr. S. Y. Noorani |
Vice Chairman & Managing Director |
2. |
Mr. B. Mahabala |
V. P. Commercial & Chief Financial Officer |
3. |
Mr. Kumar Iyer |
G. M. Legal & Company Secretary |
EVALUATION OF PERFORMANCE OF THE BOARD, ITS COMMITTEES AND
INDIVIDUAL DIRECTORS
During the year, annual performance evaluation of the Board and
Committees of the Board, individual Directors including the Chairman of the Company, was
carried out as per the criteria and process approved by Nomination and Remuneration
Committee, which is in line with the SEBI Guidance Note on Board Evaluation.
The Chairman and other members of the Board discussed the performance
evaluation outcome and concluded that they were satisfied with the overall performance of
the Board and Committees of the Board and Directors individually. The Board also assessed
the fulfillment of the independence criteria as specified in Listing Regulations, by the
Independent Directors of the Company and their independence from the management.
The performance evaluation of the Non-Independent Directors including
the Chairman of the Company and performance of the Board as a whole was discussed at the
separate meeting of the Independent Directors.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received declarations from all the Independent
Directors confirming that they meet the criteria of independence as prescribed under
Section 149(6) of the Act and under Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 ("Listing
Regulations").
In the opinion of the Board, the Independent Directors fulfil the
conditions specified under the Act and Listing Regulations and are independent
of the management. The Board skill/ expertise/ competencies matrix of
all the Directors, including the Independent Directors is provided in the Corporate
Governance Report forming part of this Annual Report.
FAMILIARISATION PROGRAMME FOR THE INDEPENDENT DIRECTORS
The details of programmes for familiarization of Independent
Directors with the Company, their roles, rights, responsibilities in the Company, nature
of the industry in which the Company operates, business model of the Company and related
matters are posted on the website of the Company at the link
https://www.zodiaconline.com/codes-and-policies.
- NUMBER OF MEETINGS OF THE BOARD:
The Board of Directors of the Company met 7 (Seven) times during
the year under review. The dates of the Board meeting and the attendance of the Directors
at the said meetings are provided in detail in the Corporate Governance Report, which
forms a part of this Report.
- DIRECTORS' RESPONSIBILITY STATEMENT:
Your Directors state that:
- In the preparation of the annual accounts for the year ended 31st March,
2023, the applicable accounting standards read with requirements set out under Schedule
III to the Act, have been followed and there are no material departures from the same;
- The Directors 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 as at 31st March, 2023 and of the
profit and loss of the Company for the year ended on that date;
- The Directors 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;
- The Directors have prepared the annual accounts on a going concern' basis;
- The Directors have laid down internal financial controls to be followed by the Company
and that such internal financial controls are adequate and are operating effectively and
- The Directors have devised proper systems to ensure compliance with the provisions of
all applicable laws and that such systems are adequate and are operating effectively.
NET WORTH CONSOLIDATED
- MATERIAL CHANGES AFFECTING THE FINANCIAL POSITION OF THE COMPANY:
There are no material changes and commitments affecting the
financial position of the Company which has occurred between the end of the financial year
to which these financial statements relate and the date of this report.
- POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND OTHER DETAILS:
The Company's policy on Board Diversity provides for an
appropriate mix of diversity, skills, experience and expertise required on the Board and
assesses the extent to which the required skills are represented on the Board including
the criteria for determining qualifications, positive attributes and independence of a
Director.
The Company has a Remuneration Policy to evaluate the performance of
the members of the Board and the senior management, to ensure remuneration to Directors,
KMP and Senior Management involving a balance between fixed and incentive pay reflecting
short and long-term performance objectives appropriate to the working of the Company and
its goals and to retain, motivate and promote talent and to ensure long term
sustainability of talented managerial persons and create competitive advantage. The policy
ensures that the level and composition of remuneration is reasonable and sufficient to
attract, retain and motivate Directors, KMP and Senior Management of the quality required
to run the Company successfully and the relationship of remuneration to performance is
clear and meets appropriate performance benchmarks.
The Independent Directors have complied with the requirements of the
Companies Act, 2013 and Regulation 16 (b) of SEBI LODR on their independence. The Company
has obtained certification of independence from the Independent Directors in accordance
with Section 149(6) of the Companies Act, 2013.
The remuneration details of the Executive and Non- Executive Directors
is disclosed in the Corporate Governance report which forms part of the Directors
Report. The above policy has been posted on the website of the Company
at the link https://www. zodiaconline.com/codes-and-policies.
- PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS:
The particulars of loans and investments have been disclosed in the
financial statements. The Company has not given any guarantees.
- HUMAN RESOURCE MANAGEMENT:
The Company recognizes the need for continuous growth and
development of its employees to meet the challenges posed by the industry, besides
fulfilling their own career path objectives. Consequently, the role of Human Resources
continues to remain vital and strategic to the Company. Employee recruitment, training and
development are a key focus area, with policies, processes and extensive use of technology
to attract, retain and build on skills of high calibre employees. Industrial relations
have continued to be harmonious throughout the year.
- COMPLIANCEWITHTHECODEOF CONDUCT:
The Code of Conduct adopted by the Company for its Board of
Directors and Senior Management Personnel has been uploaded on the Company's website
at the link https://www.zodiaconline.com/ codes-and-policies.
The Declaration of the Compliance with the Code of Conduct has been
received from all Board members and Senior Managerial Personnel. A certificate to this
effect from Mr. S. Y. Noorani, Vice Chairman & Managing Director forms part of this
report.
- PUBLIC DEPOSITS:
During the Financial Year 2022-23, the Company did not invite or
accept any deposits from the public under the provisions of Section 73 of the Companies
Act, 2013.
- COMPANY'S WEBSITE:
The Financial Statements, Annual Report, including Corporate
Governance Report, Shareholding Pattern, etc., are displayed inter-se with the other
information on the Company's website, viz. www. zodiaconline.com.
- DONATIONS:
During the financial year, the Company has, besides CSR,
contributed `10,00,000/- (Rupees Ten Lakhs only) to various deserving causes.
- INSURANCE:
All the properties/assets, including buildings, furniture/
fixtures, etc. and insurable interests of the Company are adequately insured. The
international debtors who avail of credit are also insured, despite their flawless record,
as a measure of abundant caution.
- AUDITORS:
Pursuant to the provisions of Section 139 of the Companies Act and
the Rules framed thereunder, M/s MSKA & Associates, Chartered Accountants (ICAI Firm
Registration No. 105047W) has been appointed as statutory Auditors of the Company for a
term of five (5) years to hold office from the conclusion of the 38th AGM till
the conclusion of the 43rd AGM.
The Auditor's Report to the members for the financial year ended
31st March, 2023 does not contain any qualification, reservation, adverse
remark or disclaimer.
- MAINTENANCE OF COST RECORDS BY THE COMPANY AS SPECIFIED BY THE CENTRAL GOVERNMENT:
Pursuant to the rules made by the Central Government of India, the
Company is required to maintain cost records as specified under Section 148(1) of the Act
in respect of its products. and accordingly, such accounts and records are made and
maintained by the Company.
However, in terms of the Companies (Cost Records and Audit) Amendment
Rules, 2014, the Company is not covered under the purview of Cost Audit from the F. Y.
2014-15 onwards.
- SECRETARIAL AUDIT:
As per Section 204 of the Companies Act, 2013 and Rules made
thereunder, the Company has appointed M/s. Robert Pavrey & Associates, Company
Secretaries (CP No- 2928) to undertake the Secretarial Audit of the Company. The
Secretarial Audit report is included as Annexure 2 and forms an integral part of this
report.
The Secretarial Audit Report to the members for the year under review
does not contain any qualification, reservation, adverse remark or disclaimer.
- AUDIT COMMITTEE:
The details pertaining to the composition of Audit Committee are
included in the Corporate Governance Report, which forms a part of this report.
- DETAILS OF SHAREHOLDERS' FUNDS EMPLOYED FOR THE YEAR 2022-23 CONSOLIDATED:
- RISK MANAGEMENT:
In line with the regulatory requirements, the Company has a Risk
Management Policy to identify and assess the key risk areas, monitor and report the
compliance and effectiveness of the same. The Risk Management Committee is responsible for
reviewing the risk management plan and ensuring its effectiveness. The Audit Committee has
additional oversight in the area of financial risks and controls. Major risks identified
by the businesses and functions are systematically addressed through mitigating actions on
a continuing basis.
- INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an effective internal control and risk-mitigation
system, which are constantly assessed and strengthened with new/ revised standard
operating procedures. The Company's internal control system is commensurate with its
size, scale and complexities of its operations. The internal and operational audit is
entrusted to M/s. M J Mange & Associates. The main thrust of internal audit is to test
and review controls, appraisal of risks and business processes, besides bench marking
controls with best practices in the industry.
The Audit Committee actively reviews the adequacy and effectiveness of
the internal control systems and suggests improvements to strengthen the same. The Company
has a robust management information system, which is an integral part of the control
mechanism.
The Audit Committee members, Statutory Auditors and the Business Heads
are periodically apprised of the Internal Audit findings and corrective action taken.
Audit plays a key role in providing assurance to the Board of Directors. Significant audit
observations and corrective actions taken by the management are presented to the Audit
Committee. To maintain its objectivity and independence, the Internal Audit function
reports to the Chairman of the Audit Committee.
- POLICY ON PREVENTION OF SEXUAL HARASSMENT :
The Company has in place an Anti-Sexual harassment policy in line
with the requirements of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 & the Rules made thereunder. Internal Complaints
Committee (ICC) has been set up to redress Complaints received regarding sexual
harassment. All employees, permanent, contractual, temporary and trainees are covered
under the policy. During the year under review, there were no complaints received under
the said Act.
- ANNUAL RETURN:
Pursuant to Section 92(3) read with section 134(3)
- of the Companies Act, 2013, copies of the Annual Returns of the Company prepared in
accordance with Section 92(1) of the Act read with Rule 11 of the Companies (Management
and Administration) Rules, 2014 are placed on the website of the Company and is accessible
at the web-link: https:// www.zodiaconline.com/annual-reports.
- SECRETARIAL STANDARDS:
The Company has complied with the Secretarial Standards issued by
the Institute of Company Secretaries of India on Board and General Meeting.
- VIGIL MECHANISM/ WHISTLE BLOWER POLICY:
The details pertaining to the establishment of Vigil Mechanism/
Whistle Blower Policy is included in the Corporate Governance Report, which forms part of
this report.
- INVESTOR EDUCATION AND PROTECTION FUND:
As per the provisions of Sections 124 and 125 of the Companies Act,
2013, read with the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016
(the Rules') all unpaid or unclaimed dividends and the respective shares
thereof for the Financial Year upto 2014-15 have been transferred to the IEPF established
by the Central Government within the stipulated time.
- FRAUD REPORTING:
There was no fraud reported by the Auditors of the Company under
Section 143 (12) of the Companies Act, 2013, to the Audit Committee or the Board of
Directors during the year under review.
- PARTICULARS OF EMPLOYEES:
The information required under Section 197 of the Act read with
Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 are given below:
- The ratio of the remuneration of each Director to the median remuneration of the
employees of the Company for the Financial year 2022-23:
Non-executive directors* |
Ratio to median remuneration |
Mr. A. Y. Noorani |
- |
Mr. V. M. Apte |
- |
Mr. Y. P. Trivedi |
- |
Mr. S. R. Iyer |
- |
Dr. Naushad Forbes |
- |
Mr. Bernhard Steinruecke |
- |
Ms. Elizabeth Jane Hulse |
- |
*Note:
The Chairman is not paid any remuneration nor sitting fees for attending Board and
Committee
Meetings. The Non-Executive Directors of the Company are paid only
Sitting Fees for attending the Board and Committee Meetings of the Company, details of
which are given in the Corporate Governance Report and are not entitled to any other
remuneration.
Executive Director |
Ratio to median remuneration |
Mr. S. Y. Noorani |
- |
Note:
The ratio to median remuneration is nil for the F.Y. 2022-23 as Mr.
S. Y. Noorani has voluntarily chosen to not receive remuneration.
- The percentage increase in remuneration of each Director, Chief Financial Officer,
Company Secretary in the Financial Year:
Directors, Chief Financial Officer and
Company Secretary* |
% Increase in remuneration in the financial
year |
Mr. V. M. Apte |
- |
Mr. Y. P. Trivedi |
- |
Mr. S. R. Iyer |
- |
Dr. Naushad Forbes |
- |
Mr. Bernhard Steinruecke |
- |
Ms. Elizabeth Jane Hulse |
- |
Mr. A.Y. Noorani |
- |
Mr. S.Y. Noorani |
- |
Mr. B. Mahabala (CFO) |
- |
Mr. Kumar Iyer (CS) |
- |
Note:
*The Chairman & Vice Chairman were not paid any remuneration
nor sitting fees during FY 2022-23 for attending Board and Committee Meetings. The Non-
Executive Directors of the Company were paid only Sitting Fees for attending the Board and
Committee Meetings of the Company, details of which are given in the Corporate Governance
Report and are not entitled to any other remuneration.
- The percentage increase in the median remuneration of employees in the financial year:
1.37% (as the median employee is a piece rated worker)
- The number of permanent employees on the rolls of
Company: 1161 (as on 31st March, 2023)
- The average percentile increase already made in the salaries of employees other than the
managerial personnel in the last financial year and its comparison with the percentile
increase in the managerial remuneration and justification thereof and point out if there
are any exceptional circumstances for increase in the managerial remuneration:
There has been no increase in the salaries of the managerial personnel during the FY
2022-23.
- Affirmation that the remuneration is as per the remuneration policy of the Company:
The Company affirms that the remuneration is as per
the remuneration policy of the Company.
- Information of top 10 employees as required under Section 197(12) of the Act read with
Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, for the year ended March 31, 2023 is given below:
Sr. No |
Name |
Date of Birth |
Designation |
Remuneration* (`) |
Nature of Employment |
Qualification and Experience |
Date of joining |
Last Employment |
Percentage of Equity Shares held |
Relative of any Director/ Manager of the
Company |
1 |
Mr. Salman Yusuf Noorani |
15-03-1963 |
Vice Chairman and Managing
Director |
Nil |
Contractual |
B.com/41 years |
01-03-1994 |
- |
31.90 |
Brother of Mr. A.Y. Noorani,
Chairman
& Non Executive
Director |
2 |
Mr. Awais Noorani |
08-10-1975 |
VP International Sales & Sourcing |
46,89,006 |
Permanent |
B.Com, MBA from IMD Switzerland/29 years |
01-12-2002 |
- |
0.00 |
Son of Mr. A.Y. Noorani, Chairman and nephew of Mr.
S. Y. Noorani, Vice Chairman and Managing Director |
3 |
Ms. Behroze Daruwala |
04-09-1950 |
VP Fabrics & Merchandising |
46,71,244 |
Permanent |
B.A./ 51 years |
30-05-1972 |
- |
0.11 |
- |
4 |
Mr. B Mahabala |
07-11-1951 |
V.P.Commercial & C.F.O |
46,19,164 |
Permanent |
M.com, MBA & Diploma in Cost & Management
Accountancy/50 years |
15-06-1984 |
Vulcan Engineers Limited |
0.06 |
- |
5 |
Mr. Imraan Surve |
11-10-1968 |
VP-Marketing Zod, LFS & z3 |
45,52,332 |
Permanent |
B.A. (Hons.) Economics/ 31 years |
18-12-2001 |
Contract Advertising Pvt. Ltd. |
0.02 |
- |
6 |
Mr. Rajendra Shenoy B |
15-06-1965 |
GM Manufacturing |
35,00,177 |
Permanent |
B.Com, M. Com & L.L.B./30
years |
16-10-2002 |
Arvind Mills Limited |
0.00 |
- |
7 |
Mr. Anand Pisharody |
19-10-1957 |
VP - Manufacturing |
33,21,851 |
Permanent |
B.A./ 44 years |
02-05-1986 |
Indian Molasses Company Limited |
0.00 |
- |
8 |
Mr. Vikram Puri |
29-06-1976 |
Senior Product Manager |
31,16,882 |
Permanent |
B.Sc Physics/27 years |
07-05-2002 |
Cotton Club Inc. |
0.00 |
- |
9 |
Mr. Vishal Chadha |
17-11-1964 |
GM Sales MBO |
30,10,811 |
Permanent |
B.A./ 34 years |
22-07-2004 |
Johnson & Johnson Private Limited |
0.01 |
- |
10 |
Mr. Kumar Iyer |
11-06-1964 |
GM Legal & Company Secretary |
29,30,211 |
Permanent |
M. Com, ACS/ 39 years |
15-05-2014 |
Advani Hotels & Resorts (India) Limited |
0.00 |
- |
11 |
Mr. Nafees Azam |
07-04-1960 |
GM Sales (Retail) |
27,54,845 |
Permanent |
B.Com./ 38 years |
21-05-2004 |
Geep Industrial Syndicate Limited |
- |
- |
Disclosure Requirements:
As per SEBI LODR, the Corporate Governance Report with the
Auditors' Certificate thereon and Management Discussion and Analysis are attached and
the same forms a part of this report.
- OTHER DISCLOSURES:
In terms of the applicable provisions of the Act and the SEBI
Listing Regulations, your Company additionally discloses that, during the year under
review:
- there was no change in the nature of business of
the Company;
- it has not issued any shares with differential voting
rights;
- it has not issued any sweat equity shares;
- no significant or material orders were passed by the regulators or courts or tribunals
which impact the going concern status operations of your Company in future;
- it has not transferred any amount to the Reserves;
- it has not raised any funds through qualified institutions placement as per Regulation
32(7A) of the SEBI Listing Regulations;
- it does not engage in commodity hedging activities;
- it has not made application or no proceeding is pending under the Insolvency and
Bankruptcy Code, 2016 and
- it has not made any one-time settlement for the
loans taken from the Banks or Financial Institutions.
- ACKNOWLEDGEMENT:
The Directors are grateful for the co-operation, support and
assistance received from the customers, shareholders, the Government, other statutory
bodies, Banks, Solicitors, Distributors, Suppliers and other business associates during
the year.
The Directors also express their sincere appreciation of the employees
at all levels for having risen to meet the several challenges encountered and look forward
to their valuable support and commitment in the times ahead.
For and on behalf of the Board of Directors
A. Y. NOORANI
Chairman
DIN: 00041686
Place: Mumbai
Date : 30th May, 2023
|