Elofic Industries Limited Unlisted Shares Annual Reports

Elofic Industries Limited Unlisted Shares

Elofic Industries Limited's 50th Annual Report for the financial year 2022-23 highlights the company's performance, operations, and governance. **Highlights & Overview:** Elofic Industries boasts six state-of-the-art manufacturing units in Faridabad, Hosur, Noida, and Nalagarh, with a production capacity exceeding 110 million pieces per annum. They employ lean manufacturing principles, single-piece flow, and in-house production of child parts. Elofic manufactures air purifiers and clean air towers with virus protection. The company maintains zero defects at the customer end and has an in-house R&D Center approved by DSIR, Govt. of India. Elofic is a NABL Certified Lab holding 12 patents with 10 more pending approval. The company acts as a preferred OEM supplier. With a network of 1,400 distributors and 55,000 dealers in India, Elofic exports worldwide and has achieved its highest-ever export turnover. Modern WMS-based warehouses are located in Faridabad, Zirakpur, Nagpur, Lucknow, Ahmedabad, and Hosur. Awards include the Quality Award of the Year by Kawasaki Motors, USA, the Zero PPM Supplier Award from Tata Motors Ltd., and a 100% Maruti Suzuki Excellence Dynamic Rating for the last 3 years. **Board of Directors and Corporate Governance:** The Board of Directors includes Mr. Mohan Bir Sahni (Chairman Cum Managing Director), Mr. Kanwal Deep Sahni (Vice Chairman Cum Joint Managing Director), Mr. Prem Arora (Director), Mr. Subodh Kumar Jain (Director), Maj. Gen. Jatinder Singh Bedi (Retd.) (Director), and Mrs. Sangeeta Bajaj (Director). M/s S.N. Dhawan & Co. LLP serve as the auditors. The report details the board's meetings, attendance, and the Audit Committee's composition (Sh. Prem Arora, Sh. Subodh Kumar Jain, Sh. Kanwal Deep Sahni) and meetings. The Board accepted all Audit Committee recommendations. A CSR committee exists, comprised of Sh. Prem Arora, Sh. Subodh Kumar Jain and Sh. Mohan Bir Sahni, meeting twice during the year. **Financial Performance:** The company's sales and other income reached Rs. 35467 lakhs, an 8.86% increase. Domestic sales increased by 8.77%, and export sales reached a record Rs 15024 lakhs, an 8.20% increase. There was a decrease of Rs. 226 lakhs in profit (before interest, depreciation, and tax). The Profit Before Tax (PBT) decreased by Rs.336 lakhs, and Profit After Tax (PAT) decreased by Rs. 240 lakhs. The profit figure includes profits from Elofic USA, LLC, the Company's wholly-owned subsidiary in the USA. The Board recommends a dividend of Rs. 3 per equity share. Rs. 397 lakhs has been transferred to the general reserve. Key financial figures for the year ended March 31, 2023 (with figures for March 31, 2022, in parentheses) are: * Turnover: Rs 34693 lakhs (Rs 32106 lakhs) * Total Income: Rs 35467 lakhs (Rs 32579 lakhs) * Profit Before Tax: Rs 5585 lakhs (Rs 5921 lakhs) * Profit After Tax: Rs 3966 lakhs (Rs 4206 lakhs) * Earnings per share (Rs): 158.10 (167.70) **Operational Highlights:** * The company has maintained a high level of on-time supplies to its customers and catered to their product demands. * Share of Business of 2W, PV, Off-Highway, and Earthmoving segments has gone up in the OEM Segment, with new OEM & Institutional Customers added. * Introduced 29 New Products in the market for 2022-23 and increased penetration in unrepresented geographies by appointing 60 new channel partners. * Designed and developed clean air towers and industrial air purifiers. The export sales showed a jump from Rs. 13886 lakhs to a record of Rs. 15024 lakhs in FY 2022-23. * Upgraded supplier partners to maintain ISO 9001:2015 Certification. Implemented "SAP S4 HANA" for business process streamlining. Started an Industry 4.0 project at its Faridabad plant. **Research and Development:** Elofic is designing best-in-class products and practices; a continued focus on research and development (R&D) has resulted in innovative products. They are exploring new avenues in ambient air and water purification and working to develop filters for hydrogen and air filtration in fuel cell electric vehicles. The company is upgrading to meet BS-VI norms and know-how for in-house development of all types of automotive and industrial filters. The R&D laboratory has NABL accreditation. The company attained two process patents, and total patent count has risen to twelve. **Corporate Social Responsibility (CSR):** The company has a well-defined CSR policy. The committee held two meetings in the period. The company runs a nursing home at Village Rajpura, Nalagarh and has also contributed to Prime Minister's National Relief Fund. The average net profit of the company as per Sub-section (5) of Section 135 is 39,21,49,730. Two percent of the average net profit is 78,42,995. Total CSR obligation for the financial year is 78,42,995, and 78,47,627 was spent on CSR projects. **Other Key Points:** * The company had no material changes and commitments affecting the financial position. * The company maintains adequate internal financial controls. * MNRS & Associates, Chartered Accountants, is appointed as the internal auditor. * DR Associates are the Secretarial Auditor of the Company. * The process was initiated to transfer shares with unpaid dividends to IEPF. * The company has adequate systems for risk assessment. * The company complied with provisions related to sexual harassment at the workplace. * M/S Vandana Bansal & Associates were re-appointed as cost auditors. **Resolutions and Approvals:** The notice of the Annual General Meeting (AGM) details the resolutions to be passed, including the adoption of financial statements, declaration of a dividend of Rs. 3/- per share, the re-appointment of Mr. Mohan Bir Sahni as a director, ratification of the remuneration of cost auditors, and approval of the increase in remuneration of Maj. Gen. Jatinder Singh Bedi (Retd.).

Elofic Industries Limited Unlisted Shares

Elofic Industries Limited Consolidated Financial Statements Summary (FY 2021-2022) **Overview** This document summarizes the consolidated financial statements of Elofic Industries Limited and its subsidiary ("the Group") for the fiscal year spanning April 1, 2021, to March 31, 2022. All monetary values are expressed in Lakhs of INR unless otherwise specified. **[400100] General Information about the Company** * **Name:** Elofic Industries Limited * **Corporate Identity Number:** U74999HR1973PLC070262 * **Permanent Account Number:** AAACE0425C * **Registered Office Address:** 14/4 Mathura Road Faridabad - 121003, Haryana, India * **Type of Industry:** Commercial and Industrial * **Number of Employees:** 1,370 * **Sustainability Report:** No sustainability report published for the financial year. * **Reporting Period:** April 1, 2021 - March 31, 2022, consolidated financial statements. * **Presentation Currency:** INR in Lakhs * **Cash Flow Statement Type:** Indirect Method **[400200] Auditors Report** * **Auditor Firm:** S.N. Dhawan & Co. LLP * **Auditor Signing Report:** SEN BHASKAR * **Firm Registration Number:** 000050N/N500045 * **Auditor Membership Number:** 096985 * **Auditor Address:** D-74 MALCHA MARG, NEW DELHI-110021 * **Auditor's PAN:** AAQFS0580H * **Form ADT-1 SRN:** R83554592 * **Date of Audit Report:** 14/06/2022 * **Date of Balance Sheet Signing:** 14/06/2022 * **Auditor's Report Order Applicability:** Not applicable to the company. * **Auditor's Report Qualification:** No qualifications, reservations, or adverse remarks **Auditor's Opinion and Basis for Opinion** * The auditor expresses an opinion that the consolidated financial statements provide a true and fair view in conformity with Accounting Standards and other generally accepted accounting principles in India. * The audit was conducted in accordance with Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act, 2013. The auditors believe the audit evidence obtained is sufficient and appropriate. **Management's Responsibility** The Board of Directors is responsible for the preparation and presentation of the consolidated financial statements, including maintaining adequate accounting records and internal financial controls. **Auditor's Responsibilities** The auditor's responsibilities include obtaining reasonable assurance about whether the financial statements are free from material misstatement and expressing an opinion, along with evaluating internal financial controls. **Other Matters** The auditor relied on the audited financial statements of the subsidiary. **Report on Other Legal and Regulatory Requirements** There are no qualifications or adverse remarks in the CARO report. **Internal Financial Controls** The Holding Company has adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at March 31, 2022. **Share Capital (Notes - Share Capital)** * Authorized share capital: 3,000,000 shares * Issued, subscribed, and fully paid-up share capital: 2,508,370 shares or INR 250.84 Lakhs * Shareholding of Mohan Bir Sahni: 7,13,435 shares (28.44% of the company shares) * Shareholding of Satinder Sahni: 1,72,800 shares (6.89% of the company shares) * Shareholding of Karam Sahni: 1,59,600 shares (6.36% of the company shares) * Shareholding of Saheb Sahni: 1,59,600 shares (6.36% of the company shares) * Shareholding of Mohinder Singh Sahni & Sons (HUF): 1,34,920 shares (5.38% of the company shares) **Reserves and Surplus (Notes - Reserves and surplus)** * Securities premium account: 64.78 * General reserve: 1,693.14 * Other funds: 147.42 **Borrowings (Notes - Borrowings)** There are borrowings of 9.6 and 17.73 in short-term secured borrowings. There is no secured borrowings in long-term. **Tangible Assets (Notes - Tangible assets)** The company's tangible assets are depreciated using the written-down value method, with useful lives and depreciation rates as prescribed by Schedule II of the Companies Act, 2013. Plant and machinery, furniture and fixtures, vehicles, office equipment, and computer equipment are tangible assets. **Cash Flow Statement (Indirect Method)** * Net cash flows from operating activities: INR 1,983.93 Lakhs * Net cash flows from investing activities: INR -2,039.55 Lakhs * Net cash flows from financing activities: INR -93.95 Lakhs * Net decrease in cash and cash equivalents: INR -149.57 Lakhs * Cash and cash equivalents at the end of the period: INR 258.92 Lakhs **Disclosure on accounting policy of tangible assets:** Property, plant, and equipment are carried at cost less accumulated depreciation and impairment losses, if any. **Contingent Liabilities and Commitments** The total contingent liabilities and commitments is 0. **Related Party Disclosures:** The document discloses related party relationships and transactions as per Accounting Standard 18 (AS-18). Significant related parties include Elofic Industries (India), Mettler Auto Limited, and key management personnel. Rent, license fees, remuneration, and consultancy are the major transactions with related parties. **Leases:** The accounting policy of leases has been disclosed. No operating lease was converted to financial lease. **Earnings Per Share (EPS):** Basic EPS: 157.57 Diluted EPS: 157.57 **Income Taxes:** The accounting policy for income taxes has been provided. **Consolidated Financial Statements:** Elofic USA LLC is consolidated, and its details were also revealed. **Impairment of Assets:** The accounting policy of impairment of assets has been discussed. **Revenue Recognition:** Revenue is recognized to the extent that it is probable that economic benefits will flow to the Group and the revenue can be reliably measured. **Government Grants, Subsidies, and Export Incentives:** The Group recognizes Grants and subsidies from the government is recognized when there is reasonable assurance that the Group will comply with the conditions attached to them, and the grant/subsidy will be received.