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Lotte India Corporation Ltd Shares

Annual Report: 2021

Year: 2021

Annual Report Summary

Lotte India Corporation Limited Annual Report 2020-2021 Summary:

Corporate Information:

  • Board of Directors: Lists Kyungwoon Cho as Chairman cum ED (from 08.03.2021), Yun Kang Jung as Chairman (till 27.02.2021), Milan Wahi as Managing Director, In Chul Yeo as Whole Time Director & CFO, Myeongrim Choi as Director (from 07.08.2020), Mang Ko Noh as Director (till 07.08.2020), D.G. Rajan as Independent Director, Hye Lim Jeon as Independent Director.
  • Company Secretary: T.G.Karthikeyan
  • Registered Office: No.4/111, Mount Poonamallee Road, Manapakkam, Chennai – 600 089.
  • Head Office: No.4/169, Rajiv Gandhi Salai (OMR) Kandanchavadi, Chennai – 600 096.
  • Factories: Nellikuppam (Cuddalore Dist), Tamil Nadu; Nemam, Chennai, Tamil Nadu; Rohtak, Haryana.
  • Auditors: Price Waterhouse Chartered Accountants LLP, Chennai.
  • Bankers: HDFC Bank Ltd.

Ten Years at a Glance:

This section presents a table of key financial metrics spanning from 2012 to 2021. Key figures include Gross Income, Profit/Loss before Depreciation, Interest & Tax, Profit/Loss Before Tax (PBT), Profit/Loss After Tax (PAT), Total Shareholders’ Funds, Borrowings, Gross Fixed Assets, Depreciation, Net Fixed Assets, Capital Work-In-Progress, Net Current Assets, and various ratios such as ROCE, PBDIT to Gross Income, Earnings Per Share (EPS), Net Worth per Equity Share, and Debt: Equity Ratio. The report includes a note that Lotte foods India Private Ltd was merged and that company has switched over from Erstwhile IGAAP to IndAs from F.Y 2018-19.

Notice of Annual General Meeting:

  • The 66th Annual General Meeting (AGM) will be held on Thursday, September 30, 2021, at 10:30 A.M. (IST) via Video Conferencing / Other Audio Visual Means.
  • Ordinary Business: Adopting the audited financial statements for the year ended March 31, 2021, and the reports of directors and auditors; Appointing a director in place of Mr. Milan Wahi, who retires by rotation and is eligible for reappointment; Appointing M/s. Price Waterhouse Chartered Accountants LLP, Chennai, as statutory auditors.
  • Special Business: Appointing Mr. Kyungwoon Cho as a Director.
  • The notice outlines procedures for e-voting, attending the AGM through video conferencing, and provides instructions for shareholders, including those whose email/mobile numbers are not registered with the company/depositories.

Directors’ Report & Management Discussion and Analysis:

  • Financial Results: The company achieved gross sales of Rs. 41,865.43 lakhs for the year ended March 31, 2021, as against Rs. 44,202.02 Lakhs for the previous year. The decline in sales was mainly due to lockdowns to combat COVID-19. Profit after tax was Rs. 1,004.39 lakhs, against a loss of Rs. 1,762.62 lakhs in the prior year. The Board of Directors decided not to recommend any dividend for the year ended 31st March, 2021.
  • Industry Trends: Lower Confectionery sales due to school and office closures. Gravitation towards trusted brands. Shift towards E-commerce.
  • Outlook: Expects continued reliance on e-commerce. Company is focusing on Choco Pie and Coffy Bite.
  • Internal Control System: Adequate systems in place.
  • Corporate Social Responsibility: CSR obligation did not apply due to negative average net profit.
  • Directors: Yun Kang Jung resigned. Kyungwoon Cho appointed Chairman cum Executive Director.
  • Statutory Auditors: Price Waterhouse Chartered Accountants LLP recommended for reappointment.
  • Internal Auditors: M/s. Grant Thornton appointed for the year 2021-22.

Annexures to Directors' Report:

  • Annexure 1: Annual Report on Corporate Social Responsibility (CSR) Activities: CSR obligation did not apply for 2020-21.
  • Annexure 2: Secretarial Audit Report: The report confirms compliance with applicable statutory provisions and good corporate practices.

Report on Corporate Governance:

  • Details the company's philosophy on corporate governance, board composition, attendance of directors, audit committee composition, remuneration to directors, stakeholders relationship committee, corporate social responsibility committee, and other relevant information.

Financial Statements:

  • Includes the Balance Sheet as at March 31, 2021 and March 31, 2020, Statement of Profit and Loss, Statement of Changes in Equity, and Statement of Cash Flows. These sections present the financial position, performance, and cash flow activities of the company. There are notes included in the report as well.

Other Key Information

  • The document includes details related to e-voting procedures for shareholders and instructions for attending the AGM through video conferencing.
  • Risk factors, including foreign exchange risk and interest rate risk, are managed with stated policies.

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