Annual Report: 2021
Eaton Fluid Power Limited - 56th Annual Report Summary:
Overview: The report covers the financial year ended March 31, 2021. Eaton Fluid Power Limited is now a member of the Danfoss Group. The Annual General Meeting was held on November 24, 2021, via video conferencing.
Financial Performance: The company experienced a 3% decline in revenue, reporting Rs. 3,651.97 million compared to Rs. 3,760.27 million in the previous year. The drop is attributed to the pandemic's impact, particularly in Q1. Total income decreased from Rs. 3,774.41 to Rs. 3,696.47 million. Profit before tax (PBT) was Rs. 178.29 million compared to Rs. 22.96 million. The company does not recommend any dividend. Despite the impact of the pandemic, the company made a net profit of Rs. 145.78 million, a recovery from the previous year's loss of Rs. (102.68) million. Total comprehensive income for the year was Rs. 143.83 million, compared to Rs. (106.98) million.
Shareholding Changes: A significant change occurred after the financial year-end: Eaton Corporation Plc sold its Hydraulic business to Danfoss A/S. As a result, the shares of Eaton Fluid Power Limited (97.61%) were sold to Danfoss Fluid Power Private Limited on August 2, 2021. Specifically, ETN Holding 2 Limited (52.61%) and Eaton Technologies Private Limited (45%) shares were acquired by Danfoss.
Board and Committee Matters: Several changes in directors occurred. Shandar Alam resigned as Managing Director effective July 31, 2020. Prasanna Kumar GN was appointed as an Additional Director and later as a Whole-Time Director. Ravichandran Purushothaman, Torben Jessen Christensen, Anders Stahlschmidt, and Guttahalli Prasannakumar were co-opted as Additional Directors and proposed for appointment as directors at the Annual General Meeting. Mr. Sachit Nayak, Mr. Prasannakumar Guttahalli and Mr. Nilesh Dharwadkar have resigned from the post of director.
Corporate Social Responsibility (CSR): The company manages its CSR activities through the Eaton India Foundation and dedicated Rs. 2.68 million, and the Company has an established CSR Committee, whose composition and activities are detailed in the report. Focus areas include health, education, and environment.
Other Key Highlights:
Energy Conservation and Technology Absorption: Energy conservation measures have been implemented, including modifications to rock shaft control valve test stands and optimization of the heat treatment cell cooling tower. A 409 kWp solar power plant was also installed. Technology absorption includes the deployment of "Pick Beam Sensor" Technology and the adoption of "Power BI" data visualization tool.
Auditor's Report: The report includes the Independent Auditor's Report, highlighting the auditor's opinion on the financial statements and internal financial controls. S R B C & CO LLP is the auditor. The report also includes annexures with details on compliance with various regulations, including the Companies Act, and the auditor's report on internal financial controls.
Future Outlook: While some risks associated with the pandemic and economic conditions persist, the report indicates a positive outlook and confidence in the company's ability to navigate challenges. The acquisition by Danfoss is expected to bring new opportunities and synergies.
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