#MDStart#
MANAGEMENT DISCUSSION & ANALYSIS
Dear Members,
Your Board hereby present the 40th Annual Report and the Audited
Financial Statements for the year ended 31st March, 2025.
Financial Highlights
The highlights of financial results of the Company for the year under
review are given below:
(Rs. in Million)
Particulars |
For the year ended March 31, 2025 |
For the year ended March 31, 2024 |
Revenue from operations |
27,565 |
19,187 |
Other income |
257 |
101 |
Total revenue |
27,822 |
19,288 |
Profit before finance cost, depreciation, exceptional items
and tax |
1,574 |
88 |
Finance cost |
57 |
166 |
Depreciation and amortization expenses |
695 |
644 |
Profit / (Loss) before exceptional items and tax |
822 |
(722) |
Exceptional Items |
- |
268 |
Profit / (Loss) before Tax |
822 |
(990) |
Tax expense |
234 |
(233) |
Profit / (Loss) for the year |
588 |
(757) |
Dividend
Your Board recommends a dividend of Rs. 15/- per equity share for the
year ended 31st March, 2025. This is subject to the approval of the members at the ensuing
Annual General Meeting.
Industry Outlook
In the year gone by, the Indian air conditioning industry has seen a
surge in demand due to the intense summer season. The industry continues its efforts to
combat climate change responsibly by use of energy efficient technologies with increased
controls and investing on new technologies and innovations. More broadly, India's
macro-economic factors continue to aid the steady growth of air conditioning Industry.
While the penetration level of room air conditioning is still in high single digits,
rising disposable incomes, improved quality and reliability of electricity supply and easy
financing options continue to drive both urban and rural demand. Consumers seek energy
efficient cooling technologies as their awareness and understanding of the benefits of
such technologies continues to improve. Their buying pattern is also undergoing a shift
towards online-channel for ordering air conditioners. The growth in e-commerce is
therefore also expected to give an additional boost to the industry. These factors are
expected to drive healthy growth of air conditioning industry in India.
Government of India's push for self-reliance through Production
Linked Incentive (PLI) scheme has started to enhance the air conditioning component
ecosystem in our country. Over time, as the local availability of core components
increases, it is expected to shield the industry from various external factors such as
fluctuating foreign exchange rates, supply chain shocks and geopolitical risks. Government
of India's Quality Control Orders (QCO) aims to ensure availability of quality
products to consumers, improving customer's trust in domestic manufacturing and
reduce import dependency. Overall, Indian air conditioning industry is poised for a steady
growth of 13-15% year on year, making it one of the most attractive industries in the
consumer durables market.
Business Overview
During the financial year 2024-25, the company's revenue grew from
19,187 million to 27,565 million, representing a 43.7% growth. The company reported a
profit before tax of 822 million against a loss of 990 million last year. This stellar
turnaround in the company's performance has been driven by the focused execution of
strategy implemented later last year. The company's turnaround strategy ensured a
focused organization with three key pillars of execution: Go-To-Market, Quality Excellence
and Cost Excellence. The Go-to-market strategy focused on ground-up channel planning,
product positioning and price consistency across channels. The strategy focused on
disciplined sales management and targeted spends and it significantly improved channel
advocacy, price stability and overall customer satisfaction. The Quality Excellence pillar
ensured sustainable processes in place across the value chain including supplier, design,
manufacturing and service quality delivering high quality overall experience to our
customers. The Cost Excellence pillar focused on bringing cost efficiencies and
productivity through cross functional ideation workshops, challenging status-quo, putting
best practices across all cost elements. The financial turnaround executed this year has
been a result of the synchronized implementation of all the above three pillars of
strategy. The company delivered record sales, swung back to profitability, corrected
inventory levels and generated cashflows while continue to invest in growth capex
and resources.
Room Air Conditioners
During this year, Indian Room Air Conditioning industry witnessed
strong surge in demand due to intense summer. The industry continues to show strong growth
prospects and attract significant investments in residential air conditioning and related
components. In the year gone by, the Company continued its focus on delivering on its
promise to provide its customers with premium, high quality products with high-end
features. The Company deepened its reach and strengthened its presence through appointment
of new distributors in all key markets while at the same time strengthening its presence
in the modern retail stores in urban areas. This channel expansion coupled with careful
supply chain management allowed the Company to cater to the surge in demand during the
summer season. The Company is well poised to maintain its premium positioning in the
residential air conditioning market.
Light Commercial Air Conditioners
India is expected to see a significant boom in residential and
commercial infrastructure as the country marches towards becoming a $5 trillion economy.
Demand for light commercial air conditioners has been driven by increasing Government
spending into strengthening the country's healthcare, educational institutes, metro
and railway networks, as well as private sector investments into hospitals, commercial and
residential real estate, hospitality and data centers. In addition, VRF technology
continues to see higher adoption in premium housing and condominiums due to its
flexibility, high efficiency and space saving features. Considering this immense growth
potential, the Company has made significant investments in local manufacturing of the
Hitachi's latest generation of VRF technology, the air365Max. Hitachi air365Max VRF
brings to Indian customers worldclass Hitachi VRF technology with best-in-class efficiency
and latest features. With efficiencies of up to 40% above the leading Japanese products,
Hitachi's air365Max VRF sets a new performance benchmark in the Indian market. This
series offers Indian customers the single largest outdoor unit of 30 HP in cooling-only
models which enables significant space saving. The NFC feature enables easy on-site con
guration, monitoring and troubleshooting. Overall, this latest addition of VRF air365Max
series positions Hitachi very favorably to take advantage of the immense growth
opportunity. The Company retained its strong position in Packaged Air Conditioners (PAC).
The company's energy efficient inverter PAC lineup has seen keen interest from the
key customers in sectors ranging from banking, retail and government. In the year gone by,
the company focused on further strengthening this inverter PAC by offering AHU
connectivity, which allows the use of this technology to critical applications such as
clean rooms, operation theaters and pharmaceuticals. The Company has also strengthened its
range of inverter cassettes which has seen strong demand from corporate customers,
high-end apartments, villas and small offices and shops. Such product enhancements with a
clear focus on driving energy efficiency are expected to support the company in
maintaining its strong market position. The Company has continued its focus on nurturing
its established channel network in all major cities and in improving the ease of doing
business for its channel partners through digitization. Overall, the light commercial
business is expected to continue to see strong demand and growth.
International Sales
In the past year, International business unit has made significant
strides in expanding its footprint in the South Asia market. Focus countries like
Bangladesh, Maldives, Sri Lanka, Nepal, and Bhutan have demonstrated promising growth
potential. Through strategic initiatives, Company has successfully added new customers
across various sectors including commercial, healthcare, hospitality, manufacturing,
residential and government segments and established strong partnerships with key channel
partners in each of these markets.
Company has partnered with 9 new channel partners, enhancing our sales
network and ensuring better market penetration. These new partners have significantly
contributed to our sales increase.
Risks, Concerns and Challenges
Advancements in Technology
The impacts of globalization and post-pandemic trends have greatly
influenced consumer preferences, driving a growing demand for products with smart and
futuristic technologies. As a company committed to meeting consumer needs, we actively
track technological advancements and consistently refresh our offerings. To stay ahead of
the curve, we have established a strong product development framework, featuring a
multi-year roadmap for new products and upgrades that integrates customer feedback, smart
innovations, and regulatory compliance
Risk Associated with Seasonal Variations
As a company specializing in air conditioning products, our operations
are naturally influenced by seasonal demand. Unpredictable factors like intermittent
rainfall, extreme temperature variations, and supply chain disruptions can affect our
operations. To minimize the risk of missed opportunities or surplus inventory, we have
enhanced our demand and supply planning process, ensuring agility and responsiveness to
seasonal fluctuations.
Variability in Raw Material Costs
Variations in raw material costs can cause substantial shifts in
component pricing, disrupting the supply chain and potentially impacting the
Company's profitability. To address this challenge, the company has strategically
established a network of local suppliers and adopted a dual-sourcing approach for critical
components.
Regulatory Framework and Government Policies
The Company's core product business is significantly influenced by
government regulations, including energy efficiency standards, quality control orders,
environmental laws, manufacturing guidelines, non-tari barriers, incentive schemes,
anti-dumping duties, EXIM policy, Trade Agreements with other countries and taxation
policies. These regulations can have a direct or indirect impact on product pricing and
overall operations. To manage this risk effectively, the company remains proactive,
continuously monitoring policy changes and taking appropriate actions when necessary.
Simultaneously, the company actively engages with industry associations
to foster constructive discussions with government authorities on policy frameworks that
influence our business and the broader industry. These efforts align with governmental
objectives, particularly in areas such as sustainability and regulatory advancements.
Human Resources
Human Capital
As on March 31, 2025, the total strength of employees (Staff and
Operators) of the Company was 1180. Our employees are pivotal to our success and we intend
to make them future-ready. To do this we have introduced programs that reward, recognize,
engage and develop employees thereby creating a high-performance culture based on empathy,
meritocracy and professional improvement. We strongly believe that this will ultimately
lead to creation of a conducive environment, for our employees to deliver their best to
achieve our short-term and long-term business objectives.
Talent Attraction and Retention
Our employees are critical to our success and our human capital
strategy is outlined to improve organizational capability, hire and retain the best talent
and create a culture that delivers long-term value and sustain competitiveness in the
global marketplace. We strive to be the employer of choice within all our business lines
and to do that we are focusing on strong employer branding, employee development and
retention.
Talent Management
Our talent management process focuses on building succession strength,
creating development paths and learning interventions to attract, retain and develop top
talent across the Company. This is anchored through the "Organization Talent
Review" (OTR) process that provides an overview of talent across the company and
enables talent movements across teams based on individual strengths and aspirations. With
a strong focus on providing Distributed Leadership opportunities to young and upcoming
talent, we have processes in place to identify and nurture top talent within the
organization and put them on fast track growth.
Talent Development
To augment the Talent Management and Retention processes, this year we
have also focused on skill improvement and managerial development for our workers and
staff respectively. Across our manufacturing operations, all our workers went through a
skill assessment survey that was followed by dedicated technical skill development
interventions. For our staff we have introduced Performance Enhancement and Advancement
through Knowledge
(PEAK) program that focuses on developing the managerial skills of our
middle managers. Beyond PEAK, we have plans in place to ensure seamless transition of our
new team leaders through our Step Up program. The program will help high potential
individual contributors, who have been recently promoted to lead a team (first-time
managers), to gain the tools required to optimally lead their team
Employee Engagement
As part of our culture transformation journey, we have introduced the
"Pulse Connect" program, a bi-monthly, dedicated program where the HR team
connects with each team across each geographic location within India, to check the pulse
of the organization, get first hand feedback from the employee on their expectations and
aspirations. The data generated out of Pulse Connect, is utilized for improving HR
processes, policies and facilitation for our employees. Beyond this, our Long Service
Recognition program ensures that loyalty and commitment to the organization, never go
unnoticed. To promote a health oriented culture, regular health check up camps are
organized for our staff and workers. Our employee engagement team is ensuring that at
periodic intervals, employees can recharge and refresh themselves.
Diversity, Equity Inclusion
The Company promotes Diversity, Equity and Inclusion at all locations,
for all departments and stakeholders. On a time-to-time basis Company reviews the existing
policies and practices to make the workplace inclusive. We prioritise Diversity, Equity
and Inclusion (DE&I) at our workplace and strive to provide equal opportunities to all
individuals. Our policies ensure that no discrimination occurs based on gender or
disability regarding employment, promotion, termination or other related issues.
Our Prevention of Sexual Harassment at Workplace (POSH) Policy is in
line with our commitment towards gender inclusion and diversity and helps create a safe
and secure workplace for all. All women employees (permanent, temporary, contractual and
trainees), woman service providers, as well as any woman visiting our Company are covered
under this policy. Any breach of this policy is subject to strict disciplinary actions.
FINANCIAL STATEMENTS
Internal Control and Systems
The Company has a well-defined and adequate internal control system
commensurate to the size of its business and the nature of industry it operates in. The
Internal Control system ensures safeguarding and protecting the assets of the Company.
Internal Audit was conducted by external professional auditing firms at plant as well as
for kadi manufacturing unit, head office and branch operations as per the detailed scope
defined and approved by the Audit Committee. The Internal Audit is planned to substantiate
and STATUTORY REPORTS review the adequacy of internal controls and laid down procedures
& systems. Observations of Internal Auditors and the detailed plan of action are
reviewed and discussed at the meetings of the Audit Committee on a periodic basis.
Auditors
Pursuant to the provisions of Section 139 of the Companies Act, 2013,
Members of the Company, at the Annual General Meeting held on 15th September 2021,
appointed M/s. Price Waterhouse & Co, Chartered Accountants LLP (Firm Registration No.
304026E E300009) as Auditors of the Company to hold office from the conclusion of Annual
General Meeting held on 15th September, 2021 till the conclusion of the sixth consecutive
Annual General Meeting.
Directors' Responsibility Statement
Your Directors confirm that: a) In the preparation of the annual
accounts, the applicable accounting standards have been followed along with proper
explanations relating to material departures; b) Such accounting policies selected and
applied consistently and judgments and estimates made 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 or loss of the Company for that period; c) Proper and
sufficient care has been taken for the maintenance of adequate accounting records in
accordance with the provisions of Companies Act, 2023 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities; d) Annual
accounts have been prepared on a going concern basis; e) Internal financial controls which
are to be followed by the Company have been laid down and that such internal financial
controls are adequate and are operating effectively; and f ) Proper systems have been
devised to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.
Board of Directors
Sad Demise of Mr. Arpit Patel, Independent Director
With profound sorrow, the Board deeply mourns the untimely demise of
Mr. Arpit Patel, who served as an Independent Director of the Company since 1st October,
2023. His passing on 21st May, 2024, is an irreparable loss to the Company and to all
those who had the privilege of knowing him. The Board wishes to express its deepest
gratitude for his invaluable contributions, wise counsel, and unwavering dedication.
Change in Board of Directors
During the year under review, there were following changes in the Board
of Directors of the Company:
1. Appointment of Mr. Raman Madhok as an Independent Director of the
Company with effect from 1st April, 2024.
2. Cessation of Mr. Arpit Patel as an Independent Director with effect
from 21st May, 2024 due to death.
3. Appointment of Mr. Anil Shankar as an Independent Director with
effect from 30th July, 2024.
Performance Evaluation
The Board has carried out an annual evaluation of the performance of
the Board, Audit Committee, Risk Management Committee, Stakeholder Relationship Committee,
Nomination and Remuneration Committee, Executive Committee, ESG Committee, Vigil Mechanism
Committee and CSR Committee.
The Board has also carried out an annual evaluation of the performance
of individual Directors, who were evaluated considering levels of their engagement and
contribution, safeguarding the interests of the Company and its minority shareholders,
etc. The performance evaluation of the Chairman and the Non-Independent Directors were
carried out by the Independent Directors at their separate meeting.
Details of Establishment of Vigil Mechanism
The Company has established a Vigil Mechanism process as an extension
of the Company's Code of Conduct whereby any employee, director, customer, vendor or
associate of the Company can lodge his genuine concern in good faith in Integrity Helpline
or disclose to any member of Vigil Mechanism Committee about unethical behavior, actual or
suspected fraud or violation of the Company's Code of Conduct or ethics policy, so
that appropriate action can be taken to safeguard the interest of the Company. In
exceptional cases, a complaint can be made by a complainant to a Chairperson of Audit
Committee.
This mechanism is overseen by the Audit Committee.
Disclosure under section 197(12) of the Companies Act, 2013 read with
Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:
Name of Director and Key Managerial Personnel (KMP) |
Designation |
% increase in remuneration of director
and KMP* |
Ratio of the remuneration of director to
the median remuneration of the employees of the Company for the financial year |
Mr. Nobuyuki Tao |
Director |
NA |
NA |
Mr. Sanjay Sudhakaran |
Managing Director |
NA* |
36:1 |
Mr. Yoshikazu Ishihara |
Director |
NA |
NA |
Ms. Shalini Kamath |
Independent Director |
NA |
NA |
Mr. Arpit patel |
Independent Director |
NA |
NA |
Mr. Raman Madhok |
Independent Director |
NA |
NA |
Mr. Anil Shankar |
Independent Director |
NA |
NA |
Mr. Rishi Mehta |
Chief Financial Officer |
39% |
11:1 |
Mr. Parag Dave |
Company Secretary |
29% |
2:1 |
*Worked only for a part of the previous year.
Comparison of remuneration against Company's performance*
- Increase in remuneration of each KMP |
As mentioned in above table |
- Increase in total remuneration of all KMP |
Total remuneration of KMP increased by 37%
(excluding KMP who worked for a part of the year). |
Percentage increase in the median remuneration of employees
in the financial year |
12% |
No. of permanent employees on the rolls of Company |
1180 |
Average percentage increase already made in
the salaries of employees other than the managerial personnel in the last financial year
and its comparison with the percentage increase in the managerial remuneration and
justification thereof and point out if there are any exceptional circumstances for
increase in the managerial remuneration |
- Average % increase in the salaries of
employees other than the managerial personnel 10.2% |
|
- Total remuneration of KMP increased by 37%
(excluding KMP worked for a part of the year). |
We hereby afirm that the remuneration given to all the employees,
Directors and KMP is as per the Remuneration policy of the Company.
Risk Management System
Company has implemented Enterprise Risk Management (ERM) system to
identify, assess, monitor and mitigate the various risks associated with the Company.
Risks are identified and then classified into different categories such
as Strategic, Operational and Business risks. Then score based on level and significance
of risk is given and subsequently risk mitigation steps are taken. ERM covers various
functional risks including Cyber securities related risks.
As required under SEBI (Listing Obligations and Disclosures
Requirements) Regulations, 2015, Board has formed a Risk Management Committee to discuss
critical and vital risks.
Internal Financial Controls
The Company has in place adequate internal financial controls with
reference to its financial statements. These controls ensure the accuracy and completeness
of the accounting records and the preparation of reliable financial statements.
Other Disclosures
Number of meetings of the Board: Five meetings of the Board of
Directors of the Company were held during the year under review on 23rd May, 2024, 30th
July, 2024, 23rd October, 2024, 12th December, 2024 and 11th February, 2025.
Robert Bosch GmbH (Acquirer) has made Public Announcement on
26th July, 2024, that pursuant to the Purchase Agreements, the Acquirer has, inter alia,
agreed to acquire 100% (one hundred per cent) of the issued and paid-up share capital of
Johnson Controls-Hitachi Air Conditioning Holding (UK) Ltd. ("JCH")
("Underlying Transaction").
Consequently, on completion of the Underlying Transaction, the
Acquirer will indirectly acquire and control shares and voting rights in Johnson
Controls-Hitachi Air Conditioning Holding (Uk) Ltd and JCHAC India Holdco Limited, which
hold 635 Equity Shares and 2,01,89,894 Equity Shares respectively in the Company,
constituting an aggregate of 74.25% of the Share Capital of the Company.
Members of the Audit Committee as on 31st March, 2025 are
Mr. Anil Shankar |
|
Chairman |
Ms. Shalini Kamath |
|
Member |
Mr. Raman Madhok |
|
Member |
Mr. Nobuyuki Tao |
|
Member |
The Company has received necessary declaration from each
Independent Director under Section 149(7) of the Companies Act, 2013, that he/she meets
the criteria of independence laid down in Section 149(6) of the Companies Act, 2013.
Details of the CSR amount spent for the year 2024-25 is attached
as Annexure A. Details about the Policy on Corporate Social Responsibility (CSR) as
required under Section 134(3)(o), 135(2) read with Companies (Corporate Social
Responsibility Policy) Rules, 2014 has been placed on the website of the Company and
weblink is as under: https://buy.hitachiaircon.in/cms/materials/ebd1a947b5.pdf The
projects to be implemented by the Company for the year 2025-26 have been placed on the
website of the Company and weblink is as under:
https://buy.hitachiaircon.in/cms/materials/ e4ed8fb7.pdf
Formal Appointment and Evaluation Policy of the Board of
Directors and Senior Management of the Company which has been formulated and recommended
by Nomination and Remuneration Committee and adopted by Board of Directors covering
appointment and remuneration including criteria for determining qualifications, positive
attributes, independence of a director and other matters provided under Section 178(3) has
been placed on the website of the Company and weblink is as under:
https://buy.hitachiaircon.in/cms/materials/858c85c293.pdf
No commission was paid to Directors of the Company, so no
disclosure is required to be made under Section 197(14).
The Draft Annual Return in form MGT-7 as provided under
sub-Section (3) of section 92 has been placed on the website of the Company and weblink is
as under: https://buy.hitachiaircon.in/cms/materials/7ad7db7a14.pdf
No loan was granted by the Company to any person to purchase or
subscribe to fully paid-up shares of the Company.
Details of the significant changes (i.e. change of 25% or more
as compared to the immediately previous financial year) in key financial ratios, along
with detailed explanations thereof, including:
Sr. Ratio Numerator Denominator Refer As at As at % Reason for
Variance* No. foot- March March Variance note 31, 2025 31, 2024
1 Current Ratio Current Current 1.3 1.2 8.3% NA
Assets Liabilities
2 Debt-Equity Ratio Total Debt Total Equity I 0.1 0.1 0.0% NA
3 Debt Service Earnings Total Debt II 9.0 -0.7 1385.7% Refer
Explanation 1 Coverage Ratio available for Service debt service Costs
4 Return on Net Net Profits Average 9.6% -12.2% 178.8% Refer
Explanation 1 Worth (Return on after taxes total Equity Equity) (ROE)(%)
5 Inventory Cost of Average III 3.6 2.3 57.7% The variation is due to
Turnover Ratio goods sold Inventory optimization of inventory during the year as compared
to previous year.
6 Trade receivables Net Credit Average IV 9.0 6.6 36.6% The variation
is on account turnover ratio Sales Accounts of timely collection from the Receivable
debtors of the Company.
7 Trade payables Net Credit Average V 4.2 3.7 12.7% NA turnover ratio
Purchases Trade Payables
8 Net capital Net Sales Working 9.3 9.9 -6.5% NA turnover ratio Capital
9 Net profit ratio(%) Net Profits Total Income 2.1% -3.9% 154.7% Refer
Explanation 1 below after taxes
10 Return on capital Earning Capital VI 13.8% -14.6% 194.7% Refer
Explanation 1 below employed (ROCE) before Employed (%) interest and taxes
11 Operating EBITDA Revenue 5.7% 0.5% 1040% Operational efficiency has
Profit Margin from resulted into better operating (%) (before operations margin
exceptional items)
Explanation:
The variance is primarily on account of profit during the year ended
March 31, 2025 as compared to the loss during the year ended March 31, 2024.
Note:
I Total Debt = Borrowings + Lease liabilities
II Earnings available for debt service = (Loss)/Profit for the year
adjusted by Deferred tax charge/(credit), Depreciation and amortisation expense, Finance
costs and Loss on sale of property, plant and equipment (net) II Total Debt Service Costs
= Principal Payment of lease liabilities + Interest paid on lease liabilities + Payment of
finance cost
III Average Inventory = Average of closing inventory at end of each
quarter.
IV Average Accounts Receivable = Average of accounts receivable at end
of each quarter.
V Average Trade Payables = Average of trade payables at end of each
quarter.
VI Capital Employed = Total Equity + Total debt + Lease liabilities -
Deferred Tax Assets
Secretarial Audit Report: Pursuant to the provisions of Section
204 of the Companies Act, 2013, the Report of the Secretarial Auditors is annexed as
Annexure B.
There is no material fraud reported by Auditors under Section
143(12) of the Companies Act, 2013 during the year under review.
Particulars of loans, investments or guarantees under section
186: Company has not granted any loans, secured or unsecured, to companies, firms or other
parties covered under Section 186.
There is no subsidiary and/or joint venture of the Company.
Further, there is no associate Company in which Company has a significant influence.
Therefore, no disclosure in this regard is required in Form AOC 1.
There is no Company which has become or ceased to be its
subsidiary, joint venture or associate Company during the year.
During the year, Company has not accepted deposits covered under
Chapter V.
There is no qualification, reservation or adverse remark or
disclaimer made by the Auditors in their report.
There is no qualification, reservation or adverse remark or
disclaimer made by the Secretarial Auditors in their report except noting of gap between
two risk management committee meetings beyond the prescribed time limit in SEBI LODR. It
occurred due to inadvertent scheduling to have Risk Management Committee meeting alongwith
the meetings of Board, Audit Committee, Executive Committee and Stakeholder Relationship
Committee which were scheduled to happen physically on 23-Oct-2024 with an objective to
have a more holistic discussion on various confidential matters. NSE had sought
clarification on the same and the company has submitted their reply.
There is no significant and material order passed by the
regulators or courts or tribunals impacting the going concern status and Company's
operations in future.
Details of complaints relating to sexual harassment during the
year under review: Number of complaints pending as on 31st March, 2024 : Nil Number of
complaints received during the year : 2 Number of complaints disposed of during the
financial year : 2 Number of complaints pending as on 31st March, 2025 : Nil
The information as per Rule 5(2) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 (Rules'), forms part of
this Report. However, as per second proviso to Section 136(1) of the Act and second
proviso of Rule 5(3) of the Rules, the Report and Financial Statements are being sent to
the Members of the Company excluding the statement of particulars of employees under Rule
5(2) of the Rules. Any Member interested in obtaining a copy of the said statement may
write to the Company Secretary at the Registered Office of the Company.
Related party transactions under Section 188(1): All
transactions entered by the Company with related parties during the year under review were
in ordinary course of business and at arm's length basis. During the year, no Related
Party Transactions (RPTs) requiring shareholders' approval under Section 188 of the
Act were undertaken by the company, whether material or otherwise. Therefore, disclosure
in Form AOC-2 under Section 134(3)(h) of the Companies Act, 2013 is not applicable.
Policy on dealing with Related Party Transactions has been disclosed on
Company's website and weblink is as under:
https://buy.hitachiaircon.in/cms/materials/3f846d49e9.pdf
Revision in Accounts or Boards Report: No revisions have
been made in the Accounts or Boards Report
Issue of Equity Shares with differential rights: No Equity Share
were issued with differential voting rights during the year under review
Issue of Sweat Equity Shares: No issue of Sweat Equity Shares
were made during the year under review.
Employee Stock Option and Employee Stock Purchase Schemes: No
Employee Stock Option and Employee Stock Purchase Schemes were launched by the Company
during the year under review.
Disclosure under Regulation 34(3) read with Schedule V of the
SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015: a. The Equity
Shares of the Company were not delisted or suspended during the year under review. b.
Equity Shares of the Company are listed on the BSE Limited and the National Stock Exchange
of India Limited. c. Annual listing fees have been paid to both the stock exchanges
mentioned above.
Dividend Distribution Policy has been disclosed on
Company's website and weblink is as under:
https://buy.hitachiaircon.in/cms/materials/9de980b488.pdf
Company has complied with Secretarial Standards applicable to
Company.
Information pursuant to Section 134(3)(m) of the Companies Act,
2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014, relating to conservation
of energy, Technology absorption and Foreign exchange earnings and outgo are attached in
Annexure C.
ACKNOWLEDGEMENT
Your Directors thank all Customers, Suppliers, Investors, Bankers and
other stakeholders of the Company for their co-operation and continued support during the
year. We look forward to their continued support in the future also.
We wish to place on record our sincere appreciation for the excellent
work put in by the employees of the Company at all levels.
|
For and on behalf of the Board of Directors |
Place : Kadi, Gujarat |
Nobuyuki Tao |
Date : 20th May, 2025 |
Chairman |