This action might not be possible to undo. Are you sure you want to continue?
“Everything flows, nothing stands still. Nothing endures but change.”- Heraclitus
Dear Fellow Shareholder,
On behalf of the Board of Directors of Dynamatic Technologies Limited & its Subsidiaries, i take pleasure in presenting you with Audited Financial Statements for the year 2009-10. During the year under review, your company along with its Subsidiaries has recorded a growth rate of 3.63% in aggregated sales. Gross Sales of Rs. 5020.51 million (aggregated with Subsidiaries) was the highest ever recorded. The graph on the right shows the growth of your company over the past 18 years. The historically high growth rates your company has enjoyed was affected negatively during the past 18 months as a consequence of the global financial crisis. That notwithstanding, the different business units have weathered the storm very well, using this period to compress costs, restructure business operations, conserve cash, and also to utilize spare capacity for new product development and prototyping. your company’s profitability bounced back during the year under review with eBiDTA of Rs. 6725.16 Lacs & net Profit before Tax (before forex impact) of Rs.1979.01 lacs. Dynamatic® Hydraulics’ modern design and manufacturing facilities in the UK and india have enabled it to become one of the top-two suppliers of Hydraulic Gear Pumps to the agricultural tractor industry worldwide. This sector remains buoyant on the back of high global food prices.
520 500 480
2004 ‘05 ‘06 Dynamatic
‘07 ‘08 ‘09 ‘10 JKM Daerim®
*Rs. 10 million = Rs.1 crore
In the earlier years, JKM Daerim® has been identified separately on the bar chart above. With effect from 2007-08, the merged identity is shown as a single bar. The aggregated sales for 2009-10 also includes the turnover recorded by your Company’s wholly owned Subsidiaries as well as Inter-Division/Company sales of Rs. 39.20 cr. from Dynametal®, Dynamatic® Hydraulics, Dynamatic® Wind Farm and Dynamatic Limited, UK.
Rs. in crores
gain relevance given high energy prices and changing global attitudes towards the environment. During the year under review, your Company’s Aerospace business recorded its highest ever sales of Rs. 7821.34 Lacs. Dynamatic’s Yellow Brick Road Strategy which envisages a Global Aerospace Supply Chain for its aerospace business, is beginning to show results in terms of new value creation. Oldland Aerospace™, your Company’s Aeronautic subsidiary in Bristol, UK, employs complex 5 axis machining capabilities and enjoys a strategic locational advantage required for the forging of strong direct relationships with customers in Europe and America.
Dynamatic® leadership team comprising of James Tucker, Raymond Lawton and Trish Gallagher with Lord Mervyn Davies, UK Minister for Trade & Commerce, during his visit to Dynamatic Limited, UK, in January 2010
During the year under review, Dynamatic® Hydraulics and JKM Automotive™ together developed 12 new products for Cummins Inc, for which your Company received customer recognition. In addition, 25 new products were developed for John Deere, the world’s largest agricultural equipment manufacturer. With the boom in India’s automotive and tractor sectors, your Company is witnessing surging demand which exceeds its capacity. It is taking emergency steps to de-bottleneck its manufacturing plants and supply chain to meet growth opportunities. JKM Automotive’s continued focus on products relating to emission control and fuel efficiency, continues to
Oldland AerospaceTM was recognized for its Excellent Performance in the areas of Delivery & Quality by GKN Aerospace at the Farnborough Air Show 2010. Front left: James Tucker, Director, Oldland AerospaceTM
G P Reddy, V Sunder, Dr. Rajkumar Khatri, Commissioner for Industrial Development, Neil McManus, Vice-President & Managing Director, Spirit AeroSystems (Europe) Ltd., V P Baligar, Principal Secretary to the Govt. of Karnataka, Dept of Industries & Commerce, Udayant Malhoutra, Craig Stewart, Project Manager, UK Power8 Transfers, Ravish Malhotra, Dave Stewart, Senior Director Global Sourcing-Aerostructures, Spirit AeroSystems (Europe) Ltd. & R Subodh celebrate the achievement of Single Source Supplier Status for the Airbus Single Aisle Flap Track Beams
Dynamatic’s export program for the Airbus Single Aisle Flap Track Beam project was successfully concluded with Dynamatic® having achieved Single Source Supplier status to Spirit AeroSystems and EADS earlier this year. This landmark achievement comes within a year of commencement of commercial supplies. Recently, your Company secured a contract from Boeing for the manufacture of Cabinets to house critical power and mission equipment for the P8I, a multi-mission maritime aircraft developed by Boeing and customized for the Indian Navy.
Dynamatic® signed the June edition of Aviation Week & Space Technology a Memorandum of Your Company is already collaborating with India’s Understanding with the National Defence and Security Forces to develop Government of Karnataka for the acquisition of 35 acres of land to establish a state-of-the-art Aerospace combat-proven solutions for gathering real-time visual intelligence in remote and hostile environments. it developed a Mobile Surveillance Vehicle (MSV) for India’s Security Forces. Carriage Assembly on a Flap Track Beam for the Airbus A320 Single Aisle Aircraft at During the year Prana. your Company set up by the Karnataka Industrial Area Development set up an Aerospace Board (KIADB) adjacent to the International Airport in Precision Assembly Bangalore. Organisation (ISRO). which is expected to be completed shortly. will enable Dynamatic® to offer greater production support to HAL by virtue of its strategic location at the customer’s doorstep. This is currently undergoing trials at an undisclosed location.Dynamatic® is HAL’s largest developmental partner on India’s largest defence programme. the Sukhoi 30 MKI Fighter Bomber. featured on the cover page of other leading defence agencies in India. Dynamatic Aerospace® under review. In a rare instance of Public Private Partnership. your Company has set up a production facility at HAL’s premises in Nasik to undertake assembly work of Airframe Structures for the Sukhoi 30 MKI Fighter Bomber. as Manufacturing Facility at the Aerospace Park to be well as real-time monitoring Field trial of a UAV and mapping capabilities for civilian applications. Dynamatic® has also entered into a teaming agreement with . This assembly transfer. enabling it to consolidate on its leadership position as Dynamatic Aerospace® was the partner of choice to the Ministry of Defence and In June 2010. Earlier this year. critical assemblies for customers such as Dynamatic® has received industrial defence Indian Space Research production licences for a large variety of equipment. This site will enable it to build and air-ship Laboratory to undertake large aerostructures to global customers. which is capable of monitoring infiltration on the Country’s borders as well as providing real-time Visual Intelligence within Cities.
and scaling to industrial size. before returning to India. Indian Air Force 2002–04. in addition to serving as Chief of Air Staff. CII National Committee on Technology (2002-2003). On behalf of our Board of Directors and Senior Management. Director. he has rich technical and operational experience in Aeronautical manufacturing as well as excellent customer liaison skills. G. on 21st January 2010 . Executive Director & Chief Technology Officer Mr. London Punjab National Bank Udayant Malhoutra with Lord Mervyn Davies . Your Company has drawn upon its precision engineering skills as well as the design capabilities of Powermetric® Design to establish this innovation-centric green business. Festo and Dynamatic®. Director Ms. JKM Daerim Automotive Ltd. England GM COMPlIaNCE & COMPaNy SECRETaRy Ms. UK Claire Tucker Company Executive Udayant Malhoutra Chief Executive Officer and Managing Director He has vast experience in developing and building leading brands in India. Director Mr. evolving into something bigger and better each time. V. REGISTERED OFFICE Dynamatic Park Peenya Bangalore 560 058 India Ojhar. He was formerly Director Operations and ED & COO. CEO & Director. perpetual. development and manufacture of EV Charging Points. Chairman. He retired as the Commander of India’s Defence forces in the Capacity of Chairman. for the manufacture. Dynamatic Limited. The leadership team at Dynamatic® remains confident in its abilities to continue on its existing high growth curves. Arvind Mills Ltd. D Y N A M AT I C T E C H N O L O G I E S L I M I T E D Chairman Mr. his illustrious career with the State Bank of India which included tenures as the Chief Financial Officer and Chief Treasury Officer. he has been a Member. Aprameyan Distinguished Technocrat positions of Executive Director & CEO. GKN Aerospace. UK. Dynamatic®. Reid and Taylor. Govind Mirchandani Management Consultant He has over three decades’ experience in production. Chairman. In addition to his role at Dynamatic®. Oldland Aerospace Limited. Managing Director. Pneumatic and Hydraulic Industries. and President & CEO. Airbus. B. Govindarajan Senior Banking Professional Formerly the Executive Chairman. B S R & Associates Chartered Accountants Bangalore BaNKERS State Bank of India State Bank of India. President. He has had a distinguished career which includes the He has extensive marketing experience in Automotive. Financial and IT functions. Formerly the Systems Manager of Oldland CNC. UK James Tucker Company Executive Throughout the history of Dynamatic Technologies Limited. Oldland Aerospace Limited. having managed global aerospace majors like Boeing. Barton Hill Bristol BS5 9TR. Vijai Kapur Management Consultant During an illustrious career. Brandhouse Retails Ltd. She has spent almost a decade practising law in Europe with Allen & Overy. Israel. 2010-2011). she is credited with having set up modern systems and processes at Oldland Aerospace™. Executive Director & Chief Marketing Officer Mr. Director Air Chief Marshal S. he was heading GKW Limited as Dy. seeking to benefit from the opportunities that Formerly the Managing Director & Group Executive (National Banking Group) of the largest bank in India. Niphad Nasik 422207 India Cheney Manor Swindon Wiltshire SN2 2PZ England Jarvis Street. development and manufacture of Electric Vehicle Charging Points on an exclusive worldwide remit. Seshnath Company Executive Formerly the General Manager of Oldland CNC. Sauer Danfoss (Swindon Unit). Dynamatic® Hydraulics and Dynametal®. he is credited with the transformation of the Swindon unit into a state-of-the-art facility. Haritha KEy FaCIlITIES Dynamatic Park Peenya Bangalore 560 058 India JKM Park SIPCOT Irrungattukottai Sriperumbudur Tamil Nadu 602 105 India Airforce Road HAL Ancilary Unit III REGISTRaR & TRaNSFER aGENTS Karvy Computershare Pvt Ltd Vittal Rao Nagar. He was also a Member of the National Council. He is the Director. Arvind Mills Ltd. UK Minister for Trade & Commerce. London where she was Vice President & Technology Law Counsel. He is credited with bringing focus towards indigenous capabilities as additional strategic dimensions of National Security Policy. a global technology leader in the Tactical Unmanned Aerial Systems (UAS) industry. Board of Governors. Director. Director Mr. He is a fellow member of the Institute of Company Secretaries of India and formerly CEO and Executive Director. The partnership with BlueBird Aero Systems uniquely positions your Company to emerge as a dominant player in the Indian market for tactical UAVs. Oldland Aerospace Limited. He is the Executive Director & Chief Operating Officer. Rajagopal Company Executive He is credited with successfully initiating nurturing. Confederation of Indian Industries (CII) and the Governing Council. Krishnaswamy (Retd.” . has endowed him with rich experience in finance and banking. Madhapur Hyderabad 500 081 (International) Limited Punjab National Bank DBS Bank Limited Standard Chartered Bank HDFC Bank ICICI Bank Axis Bank Limited Kotak Mahindra Bank Limited Yes Bank aUDITORS M/s. Advocates. I thank you for your continued support. Agusta Westland. assembly and marketing of Mini and Micro Tactical Unmanned Aerial Vehicles (UAVs) in India. at the signing of the MoU for the design. Oldland Aerospace Limited. and was also past President – AIEI (now called CII) Director Dr. having worked with the TVS Group. He has also served as the Banking Ombudsman of the Reserve Bank of India. Institute of Robotics and Intelligence Systems (IRIS). Chiefs of Staff Committee 2004. London and Citigroup. International Business Transactions and EU Law. immortal. He was formerly the Executive Director & Chief Operating Officer. Member. Udayant Malhoutra Industrialist “Change alone is eternal. Denim Division. CII National Council (20012003. UK. IIT Kanpur (1997-2001). UK. S. Dynamatic® entered into an agreement with Reuben Power PLC for the design. It has done so by being open to change. design and engineering operations. Director Mr. Mahindra & Mahindra. JKM Daerim Automotive Limited.Arthur Schopenhauer accompany environmental risk. K. Malvika Jayaram Lawyer President & Group Chief Financial Officer Mr. having held positions of seniority in Dynamatic®. She is the Director. During the year under review.BlueBird Aero Systems Limited. National Committee on Design (2010-2011) and President. Raymond Keith Lawton Company Executive He has rich experience in Corporate Management. N. Law & Finance having been the Company Secretary & Head Corporate Planning. Chief Executive Officer & Managing Director Mr. it has faced challenging times head-on. particularly in the Administrative. Personality Ltd. Sunder Company Executive He is credited with the growth of Bharat Earth Movers Limited where he retired as Chairman and Managing Director. Fluid Power Society of India (2004-08). Director.) Distinguished Former Head of Indian Defence Services An expert on Intellectual Property Rights. etc. various technologies associated with all three sciences. she is a partner of Jayaram & Jayaram .
DTL Member.) Director. Dynamatic Aerospace® S K Kapur Vice President Corporate Affairs. UK D Satheesh Kumar Deputy Chief Operating Officer. Oldland Aerospace Limited. DM 38 Limited. Yew Tree Investments Limited. DM 38 Limited. Bristol YEw TREE INVESTMENTS LIMITED. Ian Patterson Auditors KPMG LLP. DM 38 Limited. Leadership. UK N T Tony Atkins Finance Head and Company Secretary Dynamatic Ltd. Dynamatic Ltd. Raymond Keith Lawton Auditors KPMG LLP. UK R Shiva Kumar Head . V. DTL Member. Singapore Director. Udayant Malhoutra Director Ms. Nomination Committee S T R U C T U R E JKM RESEARCH FARM LIMITED Chairman Mr. Raymond Keith Lawton Director Mr. Dynamatic Ltd. DTL G Parasurami Reddy Chief Operating Officer. V. JKM Auto ™ P K Ray Chaudhuri Head of Engineering. UK Director. DTL Research & Development P S Ramesh Chief Operating Officer Dynamatic® Hydraulics Claire Tucker Director Oldland Aerospace Ltd Chairman Mr. V. Bangalore O D F D Govind Mirchandani Director. SINGAPORE Malavika Jayaram Director. Raymond Keith Lawton Auditors KPMG LLP. Sunder Auditors M/s Prasad & Kumar Chartered Accountants. UK Director. Technical Development Committee Member. Hydraulics Mr. Chairman Mr. Shareholders’ Committee Chairman. UK Chairman Mr. Audit Committee Member. UK Director. Udayant Malhoutra Director Mr. General Manager Marketing Dynamatic® Hydraulics Ian Patterson Technical Director & Chief Technology Officer Hydraulics Dynamatic Ltd. Technical Development Committee Air Cmde (Retd) Ravish Malhotra Chief Mentor & Co. UK DYNAMATIC LIMITED. Shareholders Committee President and Group CFO Member. Raymond Keith Lawton Technical Director & Chief Technology Officer. DTL Member. Udayant Malhoutra Director Mr. Dynamatic Aerospace® Pradeep Chennamale Head Strategic Financial Initiatives DTL Rekha S Nair Head Corporate Communications DTL Althaf Shareef General Manager Information Systems DTL Alan Jinks Global Sales Manager Dynamatic Ltd. Powermetric® Design. Leadership. Dynamatic Ltd. UK E Your Company’s Organisational Structure is based on a network of highly talented people who have been empowered to deliver results. UK Chairman.C O R P O R A T E RS TO C RE I Vijai Kapur Chairman of the Board. Sunder Director Mr. UK Director. Shareholders’ Committee Member & Alternative Chairman. UK Member. DTL Chairman. Leadership. A concerted effort has been made to remove hierarchy in everything we do. Audit Committee James Tucker Member. HRD & Remuneration Committee Chairman. DTL Chairman. Sunder Director Mr. V. UK Arun T S Deputy Chief Operating Officer Dynamatic Homeland Security™ Subodh R Deputy Chief Operating Officer Dynamatic Aerospace® Chairman Mr. HRD & Remuneration Committee Member. Yew Tree Investments Limited. Audit Committee Member. V. Public Accountants and Certified Public Accountants.Founder. UK B Seshnath Executive Director & Chief Marketing Officer. Claire Tucker Auditors KPMG LLP. UK Company Secretary Oldland Aerospace Ltd. Udayant Malhoutra Director Mr. DTL Executive Director & Chief Operating Officer. Technical Development Committee Member & Alternative Chairman. JKM Global Pte. Pramilla Malhoutra Director Mr. Audit Committee Member. HRD & Remuneration Committee Dr K Aprameyan Director. Singapore B O A Udayant Malhoutra CEO & Managing Director. Leadership. Bristol DM 38 LIMITED. Bristol G Haritha GM Compliance & Company Secretary DTL Anil Kumar Katti Chief Operating Officer. Technical Development Director Committee Oldland Aerospace Ltd Director. Oldland Aerospace Limited. UK Director.Production Engineering DTL Air Cmde (Retd) K Narendra Kumar VSM General Manager Dynamatic Aerospace® Nasik O N SE I R M A N G A E M C S Kim Vice President Technical JKM Auto™ G Elangovan Vice President Castings Commodity Dynametal® G V Gururaj Sr. DTL Member. JKM Global Pte Ltd. Audit Committee Member. UK . DTL N Ram Mohan Financial Controller DTL Raymond K Lawton Director. Sunder Executive Director & Chief Operating Officer Mr. V. DTL Member. Sunder Director Mr. James Tucker Director Ms. Nomination Committee Member. Michael John Handley Director Mr. UK Chairman. HRD & Remuneration Committee Air Chief Marshal S Krishnaswamy (Retd. Yew Tree Investments Limited. Technical Development Committee V Sunder Member. DTL N Rajagopal Executive Director & Chief Technology Officer. Nomination Committee R JKM GLOBAL PTE LIMITED. Udayant Malhoutra Director Mr. DTL Chairman. JKM Research Farm Ltd Director. Nomination Committee Chairman Mr. JKM Research Farm Ltd Chairman. Sunder Director Mr. Bristol OLDLAND AEROSPACE LIMITED. Udayant Malhoutra Director Mr. Ltd. Singapore Chairman. Oldland Aerospace Limited. UK Director. UK Chairman. Lim Tiong Beng Auditors RSM Chio Lim LLP. UK Trish Gallagher Human Resources & IT Manager Dynamatic Ltd. Technical Development Committee S Govindarajan Director.
Contents Consolidated FinanCial statements Auditors’ Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules to the Accounts Notes to the Accounts C–2 C–3 C–4 C–5 C–7 C–17 dynamatiC teChnologies limited Directors’ Report to Shareholders Management’s Discussion and Analysis Corporate Governance Report Certificate on Corporate Governance Corporate Sustainability Report Auditors’ Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules to the Accounts Notes to the Accounts Balance Sheet Abstract D–1 D-11 D–20 D–35 D–36 D–39 D–42 D–43 D–44 D–46 D–55 D–65 PLeASe LiFt FoLDout FoR CoRPoRAte StRuCtuRe .
is based on the aforesaid audit reports of these other auditors. We did not audit the financial statements and other financial information of certain subsidiaries. for B s R & associates Chartered Accountants Firm Registration number: 116231W Rajesh arora Partner Membership No. the auditor’s report has been furnished to us and our opinion on the consolidated financial statements.CoNSoLiDAteD . insofar as it relates to these entities.51% of total assets and 32. our responsibility is to express an opinion on these consolidated financial statements based on our audit.00% of total revenue and other income as shown in these consolidated financial statements. the financial statements and other financial information of some of the subsidiaries incorporated outside india as drawn up in accordance with the generally accepted accounting principles of the respective countries (‘the local GAAP’) have been audited by other auditors duly qualified to act as auditors in those countries. An audit includes examining. this has been done on the basis of a reporting package prepared by the Company which covers accounting and disclosure requirements applicable to consolidated financial statements under the generally accepted accounting principles in india. in the case of the consolidated profit and loss account. evidence supporting the amounts and disclosures in the consolidated financial statements. those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. the reporting packages made for this purpose have been audited by the other auditors and reports of those other auditors have been furnished to us. of the above: a. We conducted our audit in accordance with auditing standards generally accepted in india. the aforesaid local GAAP financial statements have been restated by the management of the said entities so that they conform to the generally accepted accounting principles in india. as well as evaluating the overall consolidated financial statement presentation.aUditoRs’ RePoRt to the BoaRd oF diReCtoRs on the Consolidated FinanCial statements oF dynamatiC teChnologies limited and its sUBsidiaRies 1. these consolidated financial statements are the responsibility of the Company’s management.ANNuAL RePoRt 2009-2010 .33% of total assets and 32. in so far as it relates to these entities. We have audited the attached consolidated balance sheet of Dynamatic technologies Limited (‘the Company’) and its subsidiaries (collectively called ‘the Dynamatic Group’) as at 31 March 2010. our opinion on the consolidated financial statements.82% of total assets as shown in these consolidated financial statements. these subsidiaries account for 13. in the case of the consolidated balance sheet. b. of the state of affairs of the Dynamatic Group as at 31 March 2010. 4. these subsidiaries account for 0. the financial statements and other financial information of the remaining subsidiaries have been audited by other auditors. as shown in these consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion. For purposes of preparation of consolidated financial statements.00% of total revenues and other income. the consolidated profit and loss account and the consolidated cash flow statement together known as ‘consolidated financial statements’ for the year ended on that date. b. Based on our audit and to the best of our information and according to the explanations given to us and on consideration of reports of other auditors on separate financial statements. of the profit of the Dynamatic Group for the year ended on that date. 3. these subsidiaries account for 12. and in the case of the consolidated cash flow statement. on a test basis. 2. c. annexed thereto. in our opinion the consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in india: a. 076124 Bangalore 31 July 2010 C-2 DyNAMAtiC teChNoLoGieS LiMiteD . of the cash flows of the Dynamatic Group for the year ended on that date. is based on the aforesaid audit reports of these other auditors.
152 920.670 37.435.883 627.777 3.067.041.066 218.691 28.177.480 899.094 47.065 2.463 965. K aPRameyan Director s goVindaRaJan Director goVind miRChandani Director Rajesh arora Partner Membership number 076124 malaViKa JayaRam Director n RaJagoPal executive Director and Cto B seshnath executive Director and CMo V sUndeR President and Group CFo Udayant malhoUtRa Ceo and Managing Director Place : Bangalore Date : 31 July 2010 n Ram mohan Financial Controller g haRitha GM.612 4.177.864 182.ANNuAL RePoRt 2009-2010 .351 2.147 1.972.936 969. loans and advances inventories Sundry debtors Cash and bank balances other current assets Loans and advances Current liabilities and provisions Current liabilities Provisions net current assets significant accounting policies notes to the consolidated financial statement 1 20 schedule 2 3 54.net aPPliCation oF FUnds Fixed assets Gross block Less: Accumulated depreciation Net block Capital work-in-progress goodwill on consolidation investments Foreign currency monetary item translation difference account Current assets.232 239.792.Consolidated BalanCe sheet as at maRCh 31.887 4.727 302.622 3.487 2.863 1.654.337.935 214.098.CoNSoLiDAteD .490 2.499 946.152. As per our report attached for B s R & associates Chartered Accountants Firm Registration number: 116231W for and on behalf of the Board of Directors dr.250 924.459 1 2.804 62.485.071. 2010 as at 31 march 2010 soURCes oF FUnds shareholders' funds Share capital Reserves and surplus minority interest loan funds Secured loans unsecured loans deferred tax liability.869 2.407.537 44.149 8 9 10 11 12 13 14 the schedules referred to above forms an integral part of the consolidated balance sheet.076 322.590.307.504 1 2.586 310.376 105.147 1.149 (Rs in ‘000) as at 31 march 2009 4 5 20(4) 6 7 3.473 1.611 3.382 633.648.130 227.105 119.Compliance & Company Secretary C-3 DyNAMAtiC teChNoLoGieS LiMiteD .441 2.143.651 1.857 228.224 7.090.611 54.522 247.593 1.972.
145) 58.681 4. interest.355 417.ANNuAL RePoRt 2009-2010 .basic and diluted (equity share par value Rs.870 200.693 142.960 225.10 each) significant accounting policies notes to the consolidated financial statements 1 20 the schedules referred to above form an integral part of the Consolidated profit and loss account.116. As per our report attached for B s R & associates Chartered Accountants Firm Registration number: 116231W for and on behalf of the Board of Directors dr.225 2.537 8. 2010 For the year ended 31 march 2010 4.146 105.391 728.451.917 200.634 (10.CoNSoLiDAteD .976. K aPRameyan Director s goVindaRaJan Director goVind miRChandani Director Rajesh arora Partner Membership number 076124 malaViKa JayaRam Director n RaJagoPal executive Director and Cto B seshnath executive Director and CMo V sUndeR President and Group CFo Udayant malhoUtRa Ceo and Managing Director Place : Bangalore Date : 31 July 2010 C-4 n Ram mohan Financial Controller g haRitha GM.928) 21.482.888 (11.42 (Rs in ‘000) For the year ended 31 march 2009 4.818.196.482 867.122 3.629 632.778.354.241 275.current tax .769 6.825 52.852 213.Consolidated PRoFit and loss aCCoUnt FoR the yeaR ended maRCh 31.870 170.254.570 24.Compliance & Company Secretary DyNAMAtiC teChNoLoGieS LiMiteD .957 297 (52.731 835.390 249.997 (12.interim dividend .818 217. net income from project execution services Service income other income expenditure Cost of materials consumed Personnel expenses other operating expenses Profit before depreciation.244 6.06) income Sale of manufactured products Less: excise duty Sale of manufactured products.570 19.705 4.283) 252.252.379 3.010 229 105.Proposed dividend -tax on dividend transferred to general reserve Balance carried forward schedule 15 16 17 18 6 19 earnings per share . minority interest and tax (eBitda) Depreciation interest and finance charges Profit before minority interest and tax Provision for tax .589 2.692 4.424 275.528 3.145 100.345 3.345 43.260 3.528 794.146 170.405 378.fringe benefit tax -Wealth tax Profit after tax and before minority interest Minority interest Profit/(loss) for the year Balance brought forward from previous year amount avaiable for appropriation appropriations Dividend: .901 10.837 4.deferred tax charge .534 4.634 13.283) (52.490 3.507 3.225 158.227 229.minimum alternate tax credit entitlement .474 112.366 16.424 200.
795) 36.173 2.CoNSoLiDAteD .223 7.028 488.473) (9.512) (31.345 3.225 (3.999 158.352) 979 7.284 14.966) (190.291) 713.883) (38. 2010 (Rs in ‘000) 31 march 2010 a.401 200.806) 8.852 213.764 (996) (16.385 (627) 22.390 249.272 1.330 (320.603) 6.521 53.641 23.017) 16.416) 3.404 (6.490) 1. Cash flow from investing activities: Purchase of fixed assets Proceeds from sale of fixed assets Proceeds from repayment of loans/iCDs interest received Acquisition of business division Goodwill on consolidation net cash used in investing activities (220.121) (1.028) 225.794 (30.ANNuAL RePoRt 2009-2010 C-5 .468 (39. Cash flow from operating activities: Profit before tax Adjustments for: Depreciation interest expense interest income (Profit)/loss on fixed assets sold Bad and doubtful debts / advances written off Provision for bad and doubtful debts/ advances impairment of goodwill arising on consolidation Liability no longer required written back unrealised foreign exchange (gain) /loss Amortisation of foreign currency monetary item translation difference account Provision for warranty operating cashflow before working capital changes adjustments for changes in working capital : Decrease/ (increase) in sundry debtors (increase) in other receivables Decrease/(increase) in inventories increase/(decrease) in trade and other payables Decrease/(increase) in provisions 36.874) DyNAMAtiC teChNoLoGieS LiMiteD .938) (74.375 (1.271.197) 752.311 72.186) (7.004) (92.528 31 march 2009 Adjustment for unrealised foreign exchange gain/(loss) exchange difference on translation of subsidiaries Cash generated from operating activities income tax paid Fringe benefit tax paid net cash from operating activities B.905 32.562 (39) 20.Consolidated Cash FloW statement FoR the yeaR ended maRCh 31.177 (181.275 (22.195) 87.463 658.369) (109.580 (196.313) (730.521) (88.813) (346.490 (8.
18.691 (6.180) 31 march 2009 As per our report attached for B s R & associates Chartered Accountants Firm Registration number: 116231W for and on behalf of the Board of Directors dr.850 (250.8.CoNSoLiDAteD .722 (6.885) (20.684 (Previous year Rs.848 (318.980) (3.691 227.021) 247.374.142.407) 1.670 (20.690) 11.652) (45.577 (5.ANNuAL RePoRt 2009-2010 .Compliance & Company Secretary C-6 DyNAMAtiC teChNoLoGieS LiMiteD .871 247.822) (536.nil (Previous year: Rs.473) (7.382) 736.131) (23.477 (207. Cash flow from financing activities: Proceeds from borrowings Repayment of borrowings Proceeds from issue of shares [net of related share issue expenses Rs.000) (592) (25.27.790) 1.759)] Repayment of inter corporate deposits (net) Repayment of public deposits (net) Proceeds from cash credits/ working capital loans (net) Proceeds from buyer's credit (net) interest paid Dividend paid Dividend tax paid net cash used in financing activities net (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year* 173.(Rs in ‘000) 31 march 2010 C. K aPRameyan Director s goVindaRaJan Director goVind miRChandani Director Rajesh arora Partner Membership number 076124 malaViKa JayaRam Director n RaJagoPal executive Director and Cto B seshnath executive Director and CMo V sUndeR President and Group CFo Udayant malhoUtRa Ceo and Managing Director Place : Bangalore Date : 31 July 2010 n Ram mohan Financial Controller g haRitha GM.800) (247.580) (74.021) * includes restricted term deposits Rs.180) 253.345 (28.751) 12.
Pursuant to this policy. disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses.ANNuAL RePoRt 2009-2010 . the rates of depreciation prescribed in Schedule XiV to the Act are considered as minimum rates. 1 2 3 4 5 6 Country of incorporation india Singapore united Kingdom united Kingdom united Kingdom united Kingdom effective group shareholding% 99. d. Use of estimates the preparation of consolidated financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Any revision to accounting estimates is recognised prospectively in current and future periods. c. no. the provisions of Companies Act. sl. Fixed assets and depreciation Fixed assets are stated at the cost of acquisition or construction. liabilities.sChedUles to the Consolidated FinanCial statements schedule 1 . other pronouncements of institute of Chartered Accountants of india. Advances paid towards the acquisition of fixed assets and the cost of assets not put to use as at the balance sheet date are disclosed under capital work-in-progress. 1956. provision for doubtful debts and the useful life of fixed assets. Depreciation on fixed assets is provided using the straight-line method. the excess / deficit of cost to the Parent Company of its investment over its portion of net worth in the consolidated entities at the respective dates on which investment in such entities was made is recognized in the consolidated financial statements as goodwill/capital reserve. Principles of consolidation the consolidated financial statements include the financial statements of Dynamatic technologies Limited (“Parent Company”) and its subsidiaries (collectively referred to as ‘the Dynamatic Group’). the consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances. Actual results could differ from these estimates. All costs incurred in bringing the assets to its working condition for intended use have been capitalised. during the reporting year. b. income and expenses after eliminating intra-group balances / transactions and resulting unrealized profits in full.99 100 100 100 100 100 the consolidated financial statements are presented. in the same format as that adopted by the Parent Company for its separate financial statements. examples of such estimates include estimates of provision for warranty.significant accounting policies a. Basis of accounting and preparation of consolidated financial statements the consolidated financial statements have been prepared and presented in accordance with the indian Generally Accepted Accounting Principles (“GAAP”) under the historical cost convention on the accrual basis. which are higher than the corresponding rates prescribed in Schedule XiV: Rate per annum Data processing equipment Furniture and fixtures office equipment Mobile phones others 50% 20% 10. the consolidated financial statements have been prepared in indian Rupee thousands. less accumulated depreciation. 1956 (“the Act”) and guidelines issued by Securities and exchange Board of india to the extent applicable.34% C-7 25% 10% subsidiaries JKM Research Farm Limited JKM Global Pte Limited Dynamatic Limited DM 38 Limited yew tree investments Limited oldland Aerospace Limited the consolidated financial statements have been prepared on the following basis: the financial statements have been combined on a lineby-line basis by adding together the book values of like items of assets. Plant and machinery (wind farm) DyNAMAtiC teChNoLoGieS LiMiteD .CoNSoLiDAteD . to the extent possible. depreciation is provided at a higher rate based on the Management’s estimate of the useful life/remaining useful life. the amounts shown in respect of reserves comprise the amount of the relevant reserves as per the balance sheet of the Parent Company and its share in the post-acquisition increase/decrease in the reserves of the consolidated entities. if the Management’s estimate of the useful life of a fixed asset at the time of the acquisition of the asset or of the remaining useful life on a subsequent review is shorter than envisaged in the aforesaid schedule. GAAP comprises accounting standards notified by the Central Government of india under Section 211 (3C) of the Companies Act. depreciation on the following fixed assets has been provided at the following rates (straight line method).
which are defined contribution scheme. however. f. 5. Revenue from project execution services are recognized on rendering of services in accordance with the terms of the arrangement with customers using proportionate completion method. Provision for inventory obsolescence is provided as considered necessary. transactions in foreign currency are recognized at the rate of exchange prevailing on the date of the transaction. Subsequent expenditure incurred on a recognized intangible asset is added to the cost of intangible asset when it is probable that the expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standard of performance. and the expenditure can be measured and attributed to the asset reliably. inventories inventories are valued at lower of cost or net realizable value. trade and quantity discounts. and otherwise when events or changes in circumstances indicate that the carrying value may not be recoverable. carried out by an independent actuary. intangibles and amortization Research costs are expensed as incurred. h.ANNuAL RePoRt 2009-2010 . Actuarial gain/losses are charged to the profit and loss account. i. Consumable stores and spares used for maintenance are debited to the profit and loss account upon issuance. unearned revenues included in current liabilities represent billings in excess of earnings as at the balance sheet date. Service income is recognized when an unconditional right to receive such income is established.CoNSoLiDAteD . Revenue recognition Revenue from sale of products is recognized when the risks and rewards of ownership are transferred to customers. Compensated absence is a long term employee benefit and is accrued based on an actuarial valuation at the balance sheet date. the Parent Company’s gratuity scheme for indian entities is administered by Life insurance Corporation of india. unbilled revenues included in other current assets represent cost and earnings in excess of billings as at the balance sheet date. Certain Land. Goodwill arising on consolidation is not amortized. not exceeding ten years as detailed below: Application software Prototype/ Product development 4 years 8-10 years g. the local currencies of the non-integral subsidiaries are different from the reporting currency of the Parent Company. Raw materials and other supplies held for use in production of inventories are not written down below cost except where material prices have declined. which generally coincides with delivery to the customers. Building. the comparison of cost and net realizable value is made on an item-by-item basis. sales tax. Amortization is provided on a pro-rata basis on straightline method over the estimated useful lives of the assets. Contributions to provident fund/Scottish equitable and standard life. the amount recognized as sales is exclusive of excise duty. Additional depreciation due to revaluation is adjusted out of revaluation reserve. and it is estimated that the cost of finished products will exceed their net realizable value. Revenue from sale of products has been presented both gross and net of excise duty. e. Assets individually costing Rs. based on the underlying interest rates.000 or less are fully depreciated in the year of purchase. Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. All monetary assets and liabilities denominated in foreign currency are restated at the rates ruling at the year end and the exchange gains/losses arising there from are adjusted to the consolidated profit and loss account. carried out by an independent actuary. C-8 DyNAMAtiC teChNoLoGieS LiMiteD . costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Plant and Machineries and electrical installations are stated at revalued amount based on valuations done by an external expert in the year 1991-92. interest on deployment of funds is recognized using the time proportion method. employee benefits Gratuity liability is a defined benefit scheme and is accrued based on an actuarial valuation at the balance sheet date. except in case of exchange differences relating to long-term monetary items which are dealt with in the following manner: (i) in so far as they relate to the acquisition of a depreciable capital asset are added to/ deducted the carrying value of development costs is reviewed for impairment annually when the asset is not in use. it is tested for impairment at each balance sheet date. the cost determined on first-in-first-out (FiFo) basis.Pro-rata depreciation is provided from the date of purchase/ disposal on assets purchased or sold during the year. Foreign currency transactions and balances the reporting currency of the Parent Company is indian Rupee. comprises costs of purchase. are provided at pre-determined rates to the appropriate authorities.
is made to recognize a decline other than temporary in the value of the investments. but probably will not. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Gain or loss upon fair value on derivative instruments that either do not qualify for hedge accounting or are not designated as cash flow hedges or designated as cash flow hedges to the extent considered ineffective. Provisions and contingencies the Parent Company recognizes a provision when there is a present obligation as a result of past (or obligating) event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. to designate a forward or option contracts as an effective hedge. Borrowing costs Borrowing costs directly attributable to acquisition or construction of those fixed assets. provision for diminution in value. contracts where the expected unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.CoNSoLiDAteD . All other investments are classified as longterm investments. the net cumulative gain or loss recognized in shareholder’s fund is transferred to Profit and Loss Account in the same period. require an outflow of resources. no provision or disclosure is made. Provisions for onerous contracts. the derivatives that qualify for hedge accounting and designated as cash flow hedges are initially measured at fair value and are re-measured at a subsequent reporting date and the changes in the fair value of the derivatives i. however. Warranty Warranty costs are estimated by the management on the basis of technical evaluation and past experience. to the extent that the application of the principles did not conflict with existing accounting standards and other authoritative pronouncements of the Company Law Board and other regulatory requirements. l. (excluding share capital. if any. investments investments that are readily realizable and intended to be held for not more than a year are classified as current investments. are capitalized.from the cost of the asset and depreciated over the balance life of the asset (ii) in other cases. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may. derivatives in accordance with its Risk management policies and procedures. are recognized in the Profit and Loss Account. the Parent Company uses derivative instruments such as foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecasted transactions.e. such exchange differences are accumulated in a “Foreign Currency Monetary item translation Difference Account” and amortized over the balance term of the long-term monetary items but not beyond 31 March 2011. gain or loss is recognized directly in shareholders’ funds under hedging reserve to the extent considered highly effective.ANNuAL RePoRt 2009-2010 . other borrowing costs are accounted as an expense. the Parent Company accrues the estimated cost of warranties at the time when the revenue is recognised. the Parent Company has applied the principles of AS 30 ‘ Financial instruments: Recognition and Measurement’. m.e. opening reserves and surplus) are translated using the yearend rates. if a hedged transaction is no longer expected to occur. Profit and Loss items are translated at the respective monthly average rates. are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present C-9 integral and non-integral operations the financial statements of the foreign non integral subsidiaries are translated into indian Rupees as follows:• All assets and liabilities. k. • • • • exchange differences which have been deferred in foreign currency translation reserve are not recognised as income or expenses until the disposal of that entity. i. Contingent liabilities are translated at the closing rate. both monetary and non-monetary. Share capital and opening reserves and surplus are carried at historical cost. Long-term investments are carried at cost. the management objectively evaluates DyNAMAtiC teChNoLoGieS LiMiteD . terminated. effective 01 April 2008. and evidences with appropriate supporting documents at the inception of each contract whether the contract is effective in achieving offsetting cash flows attributable to the hedged risk. j. The resulting net exchange difference is credited or debited to the foreign currency translation reserve. the cumulative gain or loss on the hedging instrument recognized in shareholder’s funds under hedging reserve is retained there until the forecasted transaction occurs subsequent to which the same is adjusted against the related transaction in profit and loss account. sold. n. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote. or exercised. or no longer qualifies for hedge accounting. hedge accounting is discontinued when the hedging instrument expires. which necessarily take a substantial period of time to get ready for their intended use.
2009. the reduction is treated as an impairment loss and is recognised in the consolidated profit and loss account. the lease term is the noncancellable period for which the lessee has agreed to take on lease the asset together with any further periods for which the lessee has the option to continue the lease of the asset. whichever is lower. based on a reliable estimate of such obligation. Deferred tax asset/ liability as at the balance sheet date resulting from timing differences between book profit and tax profit are not considered to the extent that such asset/liability is expected to get reversed in the future years within the tax holiday period. the carrying amount is reduced to its recoverable amount. on a year on year basis. s. lease payments (excluding cost for services. there is an indication that if a previously assessed impairment loss no longer exists. the recoverable amount is determined for the cash-generating unit to which the asset belongs. the current tax assets and liabilities where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis. 1961. C-10 DyNAMAtiC teChNoLoGieS LiMiteD . if such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount. if any such indication exists.ANNuAL RePoRt 2009-2010 . Fringe benefit tax Fringe benefit tax is determined at current applicable rates on expenses falling within the ambit of ‘Fringe Benefit’ as defined under the income tax Act. Such assets acquired on or after 1 April 2001 are capitalised at fair value of the asset or present value of the minimum lease payments at the inception of the lease. o. investing and financing activities of the Parent Company are segregated. Cash flow statement Cash flows are reported using indirect method. if at the consolidated balance sheet date. the Parent Company estimates the recoverable amount of the asset. p.CoNSoLiDAteD . where there is unabsorbed depreciation or carry forward of losses. government grants and subsidies Grants and subsidies from the Government are recognized when there is reasonable assurance that the grant/ subsidy will be received and all attaching conditions will be complied with. the Parent Company did not have any potentially dilutive equity shares during the year. the Parent Company offsets. Deferred tax assets are recognized only to the extent that there is reasonable certainty that the assets can be realized in future. income-tax income-tax expense comprises current tax (i. the deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. if no impairment loss had been recognised. which option at the inception of the lease it is reasonably certain that the lessee will exercise. such as maintenance) are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term. the cash flows from regular revenue generating. amount of tax for the year determined in accordance with the income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). the grant or subsidy not specifically attached to a specific fixed asset is credited to Capital Reserve and is retained till the attached conditions are fulfilled. deferred tax assets are recognized only if there is virtual certainty of realization of such assets. the same has been abolished with effect from April 1.obligation as a result of an obligating event. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realized. An impairment loss is reversed only to the extent that the carrying amount of asset does not exceed the net book value that would have been determined. whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. the grant or subsidy relating to an asset is reduced from the cost of the asset.e. the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost. q. however. r. u. For an asset or group of assets that does not generate largely independent cash inflows. earnings per share the basic earnings/ (loss) per share is computed by dividing the net profit/ (loss) attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. For operating leases. t. with or without further payment. leases Leases under which the Parent Company assumes substantially all the risks and rewards of ownership are classified as finance leases. impairment of assets the Parent Company periodically assesses whether there is any indication that an asset or a group of assets comprising a cash generating unit may be impaired.
000.000 50.703 (Previous year: 5.100 each 200.081 (342) 16.740) (23.296 (8.064) (63.000) redeemable cumulative preference shares of Rs.10 each 500.147 54.703) equity shares of Rs.ANNuAL RePoRt 2009-2010 C-11 .147 200.870 273.147 3 Reserves and surplus Capital reserve Captial redemption reserve Reserve on Amalgamation Securities premium account Balance at the beginning of the year Add : Received during the year (Less) : utilisation during the year Revaluation reserve Balance at the beginning of the year (Less) : Additional depreciation charge on revalued fixed assets hedge reserve-debit balance (refer to note 12 of schedule 20) Balance at the beginning of the year Additions/deductions during the year General reserve Balance at the beginning of the year (Less): Adjustment on account of adoption of amendment to Accounting Standard 11 Add: transferred from profit and loss account 273.(Rs in ‘000) as at 31 march 2010 2 share capital authorised: 20.000 250.739 17.414.104) (104.489 Foreign currency translation reserve .414.241 1.137 4.459 287.000 250.152.671 10.137 731.10 each fully paid up 54.740) 170.467) 217.636) (102.debit balance Balance at the beginning of the year (Additions)/deductions during the year Profit and loss account (104.000) equity shares of Rs.000.000 15.095) 4.000 24.423 (342) 17.544) (63. subscribed and paid-up: 5.429 54.000 issued.000 (Previous year: 500.671 (63.000 15.544) 51.480 (12.081 731.000 50.067.429 4.000 24.544) 17.896 (19.137 600 739.425 1.759) 731.000 as at 31 march 2009 DyNAMAtiC teChNoLoGieS LiMiteD .CoNSoLiDAteD .504 (2.147 54.000 (Previous year: 20.727) (128.818 284.
053 Sales tax deferral [Repayable within one year Rs.CoNSoLiDAteD .309 451.785 as at 31 march 2009 # ^ Secured against vehicles purchased from such loans 5 Unsecured loans Public deposits [Repayable within one year Rs.553 7.ANNuAL RePoRt 2009-2010 .785 3.110 11.864 676.253 (Previous year: Rs.476 1.039 2.006 2.408 29.736 2.442 285.553 126.96.36.1990 (Previous year: Rs. ranking pari passu among the lenders.14.408 50 44.105 * Secured.720 445.862 250.407. by way of first charge on current assets and second charge on fixed assets 2.066 C-12 DyNAMAtiC teChNoLoGieS LiMiteD . ranking pari passu among the lenders.521 17. Nil)] interest accrued and due 119.016.163 649.659 1.654.442 (Previous year: Rs.45.(Rs in ‘000) as at 31 march 2010 4 secured loans From banks Rupee term loan * Foreign currency term loan * Rupee cash credit and working capital loan # Foreign currency cash credit and working capital loan # Vehicle loan^ From others Rupee term loan # hire purchase plant and machinery Vehicle loan^ interest accrued and due 2.253 120.771 3.232 379 182.111)] Foreign currency buyer's credit [Repayable within one year Rs.053)] Short term loans-others inter corporate deposits 50 44.11. by way of first charge on fixed assets and second charge on current assets Secured.246.176 45.
6.485. gross block translation additions* deletions/ as at 31 as at 1 translation adjustment adjustments march 2010 april 2009 adjustment accumulated depreciation net block FiXed assets (Rs in ‘000) as at 1 april 2009 as at 31 as at 31 Charge for deletions/ as at 31 the year adjustments march 2010 march 2010 march 2009 Tangible assets 217.400) 11.344 8.065 9.517 217.667) 68.762 6.961 2.541 3. C-13 .651 Previous year 3.ANNuAL RePoRt 2009-2010 Depreciation considered under intangible assets (including CWiP thereof) * includes administrative expenses aggregating Rs.860) (2.401.989 3.090 3.333 Notes: 1.901 140.084.407 59.595 188.8.131.525 10.003 40.518 22 27.958 75.134) 2010 225. buildings and electrical installations includes value added on revaluation Rs.552 1.703 (1. 1.998 65 88.586 12.275 37.468 (151) 45.648 13.926 50.611 (164) 15.877 (previous year: Rs.151 20.273 593 3 21.472 6 65.487 1.531 11.218 2.023 (2.111 69.519 65.337.409 14.585 1.661 (206) 2. Depreciation for the year is reflected as follows: Depreciation as per Profit and Loss account transfer from Revaluation reserve DyNAMAtiC teChNoLoGieS LiMiteD .GSR 225(e) dated 31 March 2009 issued by Ministry of Corporate Affairs.674 5.468 (4.098.662 390.707 9. Book value of plant and machinery is net of subsidy received from the tamil Nadu industrial investment Corporation Limited Rs.998 95. 2.16.625 19.817) (209) 9.177 6.792.337.397 (1.477 15.602 17.858 2.11.389 69.1.773) 153.224 229.438 3. 17. dies and moulds Vehicles Intangible assets 32.380 40.219 12 12 1.35.466 23.171 (22.322 56.062 47.376 2.384 3.191 Land and development (note 1 and 2) Buildings (note 1) Plant and machinery (note 3) 2.220 16.466) (1.435.523 20.390 342 4. Net block of land and development.838 (previous year: Rs.CoNSoLiDAteD .739 4.590 24.394.065 905.855 incurred during the current year to make the asset ready to use and has been accordingly capitalised.671) (16.994) (18.877) 4.465 73.044) 216.827 16.097 55.180 (34. * includes Rs.247) (255) (625) (1.428 1.919 56.307.626 4.463) 426.713 (previous year Rs.180).651 398.27.140 44 554.701 10.858 10.913 992.451 85.060 2.529) pertaining to loss on foreign currency loans capitalised as per Notification no.662 441.584 Measuring instruments Electrical installations (note 1) Data processing equipments Office equipments Furniture and fixtures Tools.586 Application software Prototype development Non compete fee Total 3.659 (2.257 229.946 526 33.410.989 204.698 22.336 851.236 35.726 (12.618 216.326 747 3 154.842 89.806 50.466 17.013 1.070 17.424 6.365) 3.711 65.435.276 55.513 7.522 40.810 9.650 20.578 21.863 1.246 (987) 11.623 18.631 57.575 22.814 3.120 75.901 (185) 3.134 (previous year: Rs.098.785 55.618 489.560 1. Land and development includes leasehold land Rs.341) 116.013 30.577 16.262.
857 28.408) # includes lying with third parties Rs.Nil) and lying with third parties Rs.215 as at 31 march 2009 C-14 DyNAMAtiC teChNoLoGieS LiMiteD .463 9.911 48.8.530 (Previous year: 921.266 12.7.(Rs in ‘000) as at 31 march 2010 7 investments-in shares long term-other than trade (at cost) .28.CoNSoLiDAteD .103 227.530) equity shares of Rs.1.670 204.325) 9 sundry debtors Unsecured Debts outstanding for a period exceeding six months Considered good Considered doubtful other debts Considered good Considered doubtful Less: Provision for doubtful debts 804.935 28.1956.174 19.unquoted 921.862 948. under Companies Act.130 10 Cash and bank balances Cash on hand Balance with banks: Current accounts Fixed deposits# Margin money accounts* unpaid dividend accounts * under lien against bank guarantees # held under section 3A of Companies (Acceptance of deposits) Rules.535 633.948 14.253 28.935 189.506 627.959 242.550 247.691 477 685 856. Less: Provision for dimunition in value of investments 9.673 298.268 28.359 965.215 9.522 115.742 23.095) and in transit Rs.289 (Previous year: Rs.955 122.123 920.1975.ANNuAL RePoRt 2009-2010 .215 9.5.082 2.652 9.581 25.215 9. 11 other current assets unbilled revenues 37.Nil (Previous year: Rs.911 48.609 147.406 99.123 109.152 232.215 8 inventories Raw materials and components * Rose Plants Stores and spares Work-in-progress # Finished goods Notes: includes:* includes material in transit Rs.171 9.586 (Previous year: Rs.857 37.41.927 1.10 each fully paid up of Murablack (india) Ltd.348 686 985.881 20.752 (Previous year: Rs.215 9.
6.020 1.883 691 683 53.869 342.558 228. considered good except as otherwise stated) Advances recoverable in cash or in kind or for value to be received Balance with customs.740 899.550) interest others Lease rent Sale of scrap (net of excise duty Rs.475 73.558 13.913 112. excise and sales tax authorities Loan to employees other deposits interest accrued Prepaid expenses Minimum alternative tax credit entitlement Fringe benefit tax (net of provision) (Unsecured.490 683 44.877 52. considered doubtful) Advances recoverable in cash or in kind or for value to be received Less: Provision for doubtful advances 13 Current liabilities Acceptances Sundry creditors Advance from customers Accrued salaries and benefits Deposits received from dealers Forward contract liability (refer to note 12 of schedule 20) interest accrued but not due unclaimed dividends other liabilities 14 Provisions Wealth tax Gratuity Compensated absences Warranty Current taxation (net) interim dividend (including taxes thereon Rs.301) Proposed final dividend (including tax thereon Rs.102 26.936 For the year ended 31 march 2010 82.072 2.2.122 47.441 953 953 228.143 12.273 3.508 677 17.CoNSoLiDAteD .3.094 282 4.499 For the year ended 31 March 2009 15 other income interest on bank deposits (tax deducted at source Rs.380) As at 31 March 2009 69.139 2.011 2.452 13.596 5.468 3.122 214.633 8.nil (Previous year: Rs.383 3.082 18.576 41.543 52.384 8.761(Previous year: Rs.192 3.839) Profit on sale of fixed assets Liabilities no longer required written back Miscellaneous income 3.550 36.797 24.625 17.145 2.(Rs in ‘000) as at 31 march 2010 12 loans and advances (Unsecured.930 25.688 38.149 32.133 5.051 27.980 996 2.ANNuAL RePoRt 2009-2010 .218 8.869 953 953 214.743 561.295 65.064 410.005 44.311 5.2.622 924.1.837 C-15 DyNAMAtiC teChNoLoGieS LiMiteD .352 627 9.59 Previous year: Rs.536 19.309 13.537 214 1.336 47 25.117 Previous year: Rs.851 1.692 8.441 264.
391 153.372 6.574 28.552 263.587 249.731 730.482 158.052 18.396 18.828 56.Buildings .187 6.710 21.812 14.837 10.439 46.417 35.899 78.742 69.203 16.859 145.385 18.528 684.883 36.139 3.115 10.891 1. interest and finance charges on term loans on others Bank charges Less : interest capitalised as per Accounting Standard 16 161.(Rs in ‘000) For the year ended 31 march 2010 16.095 57.611 21.700 37.225 C-16 DyNAMAtiC teChNoLoGieS LiMiteD .173 29 979 7.581 795 18.315 8.256 728.336 43.075 20.345 124.601 (47. Cost of materials consumed Raw materials and components consumed (increase)/decrease in work in progress Decrease/(increase) in finished goods (increase) in excise duty 17.825 6.263 224.458 (148.028 32.140 76.ANNuAL RePoRt 2009-2010 For the year ended 31 march 2009 2. other operating expenses Consumption of stores and spares Power and fuel Carriage outward Packing expenses (net) Rent Rates and taxes insurance Repairs and maintenance .289 5.116. Personnel expenses Salaries.230.675) 2.543 12.441 31.219 53.455 88.CoNSoLiDAteD .230 10.223 7.254.025 39.506 10.176 64.463 372 1.905 2.490 .996) 120.280) (4.142 794.868 45.272 12.366 6.431 15. wages and bonus expenses Contribution to provident and other funds Staff welfare 18.764 1.029 (903) 2.181 867.527 213.others Security charges Advertisement and sales promotion Cash discount travelling and conveyance Communication Printing and stationery Legal and professional fees Directors sitting fees exchange loss (net) Amortisation of foreign currency monetary item translation difference account Donations Bad and doubtful debts/ advances written off Provision for bad and doubtful debts/ advances Loss on sale of fixed assets Warranty impairment of goodwill arising on consolidation Miscellaneous 2.614 23.507 19.183.Plant and machinery .171 3.848 59.840 40.232 835.844 80.644 37.864 83.017 10.970 41.
333 18.547 683 Particulars Gross block Accumulated depreciation Depreciation for the year 4. 1961 deferred tax assets/liability (net) 3.222 (239. Lease rental income under operating lease during the period was Rs 683 (Previous year Rs 683).502) as at 31 march 2010 As at 31 March 2009 DyNAMAtiC teChNoLoGieS LiMiteD .574 (previous year Rs 43.333 17.877 7.627 As at 31 March 2009 65.CoNSoLiDAteD .519 3.20.732 5.ANNuAL RePoRt 2009-2010 C-17 .286 2.622) 4.576 16.710). lease transactions a. 1. notes to the consolidated financial statements (Amount in Rs.612) (254. deferred taxation Deferred tax liability included in the balance sheet comprises the following: Particulars deferred tax liability: excess of depreciation allowable under income-tax Act.509) (245. the gross carrying amount.788 3. b. 1961 over depreciation provided in financial statements deferred tax assets: Provision for gratuity. the Company has entered into operating leases for machines. compensated absences and bonus Provision for doubtful debts and advances Disallowances under section 40(a) / 43B of income tax Act.582 (218. residential facilities and vehicles. accumulated depreciation and the depreciation charge for the year ended 31 March 2010 and 31 March 2009 for the machinery leased by the Company are as set below: as at 31 march 2010 21. the Company is obligated under cancelable operating leases for office.296 As at 31 March 2009 43. ‘000) Capital commitments Particulars estimated amount of contracts to be executed on capital account (net of advances) and not provided for as at 31 march 2010 104.114 567 As at 31 March 2009 21.794 1. Lease rental expense under operating leases during the year was Rs 40. Contingent liabilities the details of contingent liabilities are as under: Particulars export obligation income tax matter under dispute as at 31 march 2010 29.
ANNuAL RePoRt 2009-2010 .815 (2.446 (3. Change in defined benefit obligation opening defined benefit obligation Current service cost interest cost Benefits settled Actuarial (losses)/Gain Closing defined benefit obligation as at 31 march 2010 45.879 2.206 2.939) 22 45. at fair value as at 31 march 2010 41.446) 5.788 8. at fair value expected return on plan assets (estimated) Contributions Benefits settled Actuarial Gain/(losses) Plan assets at the end of the year.452 As at 31 March 2009 (41.005 (3.629 (2.148 As at 31 March 2009 6.446 (688) (3.836 3.609 4.609 5.358) 50.300 3.(Rs in ‘000) 5.311 assumptions at the valuation date Discount factor expected rate of return on plan assets expected rate of salary increase Retirement age as at 31 march 2010 8% 8% 5% 58 As at 31 March 2009 7% 7% 6% 58 C-18 DyNAMAtiC teChNoLoGieS LiMiteD .788) 6.609 Change in plan assets Plan assets at the beginning of the year. gratuity plan the following tables set out the status of the funded gratuity plan as required under revised AS 15 ‘employee benefits’.628 (408) (2.309 gratuity cost for the period Current service cost interest on defined benefit obligation Net actuarial (losses)/Gain recognised in year Return on plan assets total.018 6.879 2.300 Reconciliation of present value of the obligation and the fair value of the plan assets Fair value of plan assets at the end of the year Present value of the defined benefit obligations at the end of the year asset/(liability) recognised in the balance sheet as at 31 march 2010 (49.866) (215) 50.CoNSoLiDAteD .939) 430 41. included in “employee benefit expense” as at 31 march 2010 5.810 As at 31 March 2009 39.836 3.866) 473 49.810 1.358 As at 31 March 2009 32.300) 45.446 8.
executive Director and Chief operating officer (RKL) James tucker . udayant Malhoutra and Co Private Limited (uMCPL) vii.Finance and Systems Director. For the year ended 31 march 2010 105. Vita Private Limited (VPL) viii.42 For the year ended 31 March 2009 (52.Group technical Director (iP) Raymond Keith Lawton . uK (Jt) Clarie tucker .CoNSoLiDAteD .operations Director. Chief executive officer and Managing Director (uM) V Sunder .028 (2. v.414. ‘Provisions.517 (10.K. % of voting power .745) 3. Related party transactions: name of related Party udayant Malhoutra (uM) i.075 (9.06) 7.508 12.703 19.executive Director and Chief Marketing officer (BS) N Rajagopal. set out below is the movement in provision balances in accordance with as 29.ANNuAL RePoRt 2009-2010 .225 2.President and Group Chief Financial officer (VS) B Seshnath . Contingent liabilities and Contingent assets’: Provision for warranty: Particulars opening balance Provision (net) utilized during the year Closing balance For the year ended 31 march 2010 3. 10 each the Company has no potential dilutive equity shares.54. DM 38 Limited.508 8. JKM holding Private Limited (JhPL) iv. u.(Rs in ‘000) 6. vi. executive Director and Chief operating officer (NR) ian Patterson . Wavell investments Private Limited (WiPL) ix. Pramilla estates Private Limited (PePL) a) b) c) d) e) f) g) h) udayant Malhoutra.987) 5.198.283) 5. DM38 Limited.146 5.596 For the year ended 31 March 2009 4. (Ct) Key Management Personnel (KMP) executive Directors Relatives of KMP a) Pramilla Malhoutra (PM) b) udita Malhoutra (uM) c) Barota Malhoutra (BM) C-19 DyNAMAtiC teChNoLoGieS LiMiteD .61 description of relationship Parties where control exists Christine hoden (india) Private Limited (ChiPL) Greenearth Biotechnologies Limited (GBL) JKM human Resources Private Limited (JhRPL) Primella Sanitary Products Private Limited (PSPPL) Companies over which key management personnel or relatives of such personnel are able to exercise significant influence (other related entities) iii. ii. earnings per share Calculation of basic and diluted shares used in computing earnings per share: Particulars Profit after tax (Rs in 000’) Number of weighted average shares considered for calculation of basic earning per share Basic earnings per share of face value of Rs.
525 2.417 2.others - - - 691 - - 175 224 39.Ct dividend Interim dividend .808 1.JhPL .JoiPL .176 1.uM .uM .PM .RKL .008 1.uM .others loans repaid to the Company during the year .364 1.NR .213 1.JhRPL .uM .JhPL .VPL .15 2.BM .782 - 19 C-20 DyNAMAtiC teChNoLoGieS LiMiteD .uMCPL .673 4.600 300 - 300 32.037 1.NR .GBL expenses Rent .331 5.205 622 926 180 2.659 480 3.007 2.BS .636 540 1.uMCPL .594 3.GBL Balances outstanding Payables .141 1.JhPL .341 3.JhPL .418 - 12 7 - - - 18.310 8.JhRPL Managerial remuneration .514 6.uM Salaries and wages .Jt .124 3.053 2.the following is the summary of transactions for the year ended 31 March 2010 and balance outstanding as at 31 March 2010 with related parties: (Rs in ‘000) 2010 Related Party Key other Related management entities Personnel Relatives 2009 Key other Related management entities Personnel Relatives other income Interest .736 8.808 4.921 - 2.iP .BM .001 5.469 3.JoiPL .VS .CoNSoLiDAteD .048 6.400 300 - 4.205 652 986 180 5.403 - 27 1 7 0.others Final dividend .ANNuAL RePoRt 2009-2010 .500 - - 423 - - - 3.uMCPL .JoiPL .099 2.089 - 480 2.072 2.543 300 1.
818 44.572 23.922) 30.9.199) 105.710.343 (378.196 (1.196.545 98. Particulars A. Water Pumps. namely:w w w w w w hydraulic and Precision engineering (“hPe”) .753) (53.148 318.761.142.687) (13.894.286 1.100 105.451.447 (25.069 1.942.952) 270. hand Pumps.492 136.comprising Airframe Structures.020.942.909 - 9. information relating to business segments for the year ended 31 march 2010.695) (3.447 1.554) 18.900.196) (4.199) (283.294.610) 4.084 3.695) 138.570 (249.087) 92.225) 158.243 26.545 98.909) 26.100 1.287 34.EBIDA-Profit/(Loss) (Less): Depreciation Segment result .410) 8.274 (4.302 84.170 (8. exhaust Manifold etc Aerospace (“ASP”) .472 18.243 26.comprising Case Front.784 (77.432 483.853 417.958) 4. (i) Primary Segment reporting Revenue External . intake Manifolds.096 - 5.258 1.196) (4.545 (265.329 377.852) 217.258 143.463 (441) (406.079) 55.243 314.560 (110.148 20.generation of power through wind energy.100 105.369 (29.390 9.472 (249.644 (24.576 (31.272) 10.340 88.596 (24.EBIDA-profit/(loss) (Less): depreciation Segment result .136) 87.225) (230.437) (759) (4.872.162) 17.534) (392.627 (109) (336.926 12.098 303.601) 90.296 (21.589 632.954) 18.840 193. Wind farm (“WF”) .175) 105.Sales and Services Less: Excise duty Inter-Segment Sales and Services Other Income Inter-Segment Income Total Revenue (ii) Results Segment result .201 72.601) 23.086) 3.225 417.761 409. Precision Aerospace components etc.152 (14.150) (3.ANNuAL RePoRt 2009-2010 .897 (52. (i) Primary Segment reporting Revenue External .490 18.018 C-21 DyNAMAtiC teChNoLoGieS LiMiteD .992) 349.870 (200.148 20. Research farm (“RF”) Segment revenue.010 47.811 53.196) 31.043 2.448) 20.678) 12.570) (3.884 (51.960 (225.277 759 2.263 41.345 (53.124 1.261) 10.Profit/(Loss) HPE AC AUC ASP WF RF Unallocated Total 1.103 27.146 4.518 (229.930 (85.448 1.415.205 759 14.525) 4.275 (88.958) (22.236) 4.sales and services Less: excise duty Inter-segment sales and services Other income Inter-Segment Income Total Revenue (ii) Results Segment result .536 27.927 information relating to business segments for the year ended 31 march 2009.141 5. the Group is organized into five main business segments. power packs etc Aluminium Castings (“AC”) .150 20.comprising castings for automotive components Automotive Components (“AuC”) .182) (740) (12.760 57 52.175 8.185 51.886 (22.846.comprising hydraulic Pumps.928 (40. segment information information about Primary Business segments: the business segment has been considered as the primary segment.588 45.449 (150.134 (1.profit/(loss) (Less): Interest expense Profit/(loss) before taxation (Less): Provision for taxation Net profit after tax (iii) Other Information Segment assets Segment liabilities Capital expenditure Depreciation Other non-cash expenses HPE AC AUC ASP WF RF Unallocated Total 1. Particulars A.260) (410.545 1.502) 17.018 (45.760) 143.071 1.935.913 1.290 579 (579) 9.150 (9.060) 7.200) 74 (12.322 139. assets and liabilities have been accounted for on the basis of their relationship to the operating activities of the segment and amounts allocated on a reasonable basis.CoNSoLiDAteD .895 24.747) 41.863.524 (42.648 788.390) 407. Lift Assemblies.339 (1.141 9.451 782.033 99.339) 98.753 2.285 225. Valves.456 149.490 175.298.432 193.722 189.258 143.735.
225 10.490) (236.389 3.786.761 87.870.573) (iii) B.879 3.323 1.442 - Total (213.186 1.121.Particulars (Less): Interest expense Profit/(Loss) before Taxation (Less): Provision for taxation Net profit after tax Other Information Segment assets Segment liabilities Capital expenditure Depreciation Other non-Cash expenses secondary segment Reporting HPE 87. Particulars Revenue Carrying amount of segment assets Capital expenditure 31 march 2010 asia europe total 4.195 29.079 (41.540.135 1.290 232.002.695 - RF Unallocated (12.522 190.935 2.283) 5.094 824 320.57 million) as of 31 March 2010.392 73.525) 319.CoNSoLiDAteD .290 1.420 17.558 As at 31 March 2009 6.000 135.200 1.623 - 11.259) 324. 12.597 52.742 1. Construction contracts (Amount in Rs ‘000) Particulars Cost incurred and recognized profits net of recognized losses unbilled revenue Customer advances Retention amount due from customers For the year ended 31 march 2010 70.310.196.ANNuAL RePoRt 2009-2010 .123.200 24.043 357.409.269 total 5.084 193.648 4.384 C-22 DyNAMAtiC teChNoLoGieS LiMiteD .290 55. disclosure pursuant to accounting standard 7 (revised).678 84. Cash flow hedge the Company has hedged a part of its future foreign currency receivables to mitigate its foreign exchange fluctuation risks. 12.054 2.494 (after discounting) has been credited to the profit and loss account.761 1. the Company has outstanding forward contracts aggregating to uSD 3.071. the details as at Balance Sheet date are as follows: (Amount in Rs ‘000) Particulars outstanding contract value in foreign currency (uSD) equivalent indian Rupees (iNR) Mark to Market value as at 31 march 2010 3.285 asia 2.922) (12.221 ASP 55.742 4.852 (34.136 60 AC 23. the same has been designated as a cash flow hedge with effect from 01 April 2008 applying the hedging criteria.942.525) (3.404) WF (3.601 (20) AUC 90.627 31 march 2009 europe 772.813 8.485 865.323 200.623 For the year ended 31 march 2009 70.043 23. the movement in the mark to market subsequent to the designation as a cash flow hedge aggregates Rs.898 169.283 671.329 90.577 4.561 85.257 445.589 4.329 1.811) (52.490) 3.857 2.651. the mark to market gain on this contract at the date of designation of the hedge aggregating Rs.601 4.123.259.5.922) 26.310.825 998 957 740 2.451.81 million (previous year uSD 5.064.570 (213.006 28.078 129.351.388 42.800.438 70.811) (292.296.138 446. when the effect in the profit and loss account would be accounted for.528 (55.448) (55.126 37. the cash flow hedge is expected to occur in the next one year.658 23. information relating to geographical segment for the year ended 31 march 2010.100 309.
to conform to the current year presentation. K aPRameyan Director s goVindaRaJan Director goVind miRChandani Director malaViKa JayaRam Director n RaJagoPal executive Director and Cto B seshnath executive Director and CMo V sUndeR President and Group CFo Udayant malhoUtRa Ceo and Managing Director Place : Bangalore Date : 31 July 2010 n Ram mohan Financial Controller g haRitha GM.Compliance & Company Secretary DyNAMAtiC teChNoLoGieS LiMiteD . the current year numbers are not comparable with the previous year numbers as the Company acquired a subsidiary. 14. 15.CoNSoLiDAteD . Previous year’s figures have been re-grouped/ re-classified. although there has been breach of few covenants of some loans for which. the management has initiated the process with bank for relaxation. For dynamatic technologies limited for and on behalf of the Board of Directors dr. these financial statements have been prepared on a going concern basis considering support from its bankers in the future at existing level.ANNuAL RePoRt 2009-2010 C-23 . wherever necessary.13. Previous year audit was carried out by a firm other than B S R & Associates. DM 38 Limited in uK and wind farm business in india in the previous year. 16.
79 0. UK (a) Yew Tree Investments Ltd (a) Oldland Aerospace Limited (a) JKM Global Pte Limited.10 2.618.04 29.929.34 100% 401.C-24 Pursuant to the exemption by the Ministry of Corporate affairs.87 15.008.33) (3.150.06 451.44786 Closing Rate (in Rs) 67. upon written request from a shareholder we will arrange to deliver copies of the financial statement.585.24 100% 811.444.87 428. inFomRation Relating to sUBsidiaRies as at maRCh 31.201.28) 1.798.739.445.55 6.13 (138.873.61 19.88 (33.907.87) 38.552.) 76.929.1979 Reporting Currency Reference a DyNAMAtiC teChNoLoGieS LiMiteD .998.094.38) 647.971.00 (9.178.19825 33.929.425.53) 42.704.714.10 9.29 119.953.49 (11.05) 291.561.92 68.32 437. For Conversion Currency GBP SGD Average Rate (in Rs.329.48 28.64 (45.483.41 100% 60. dividend tax) 10 11 1 2 3 4 Foreign Subsidiaries (Reporting currency reference mentioned against each Subsidiary) 152.06 - Dynamatic Limited UK (a) DM 38 Limited.651.67 100% 91.CoNSoLiDAteD .798.044.96 52.25 2.032. directors’ report and auditors’ report for the individual subsidiaries.05 101. the Company is presenting summary financial information about individual subsidiaries as at March 31. directors’ report and auditors’ report of the individual subsidiaries are available for inspection at the registered office of the Company.89 469.13 32.14 29.941.00 18.351. 000) Name of the Subsidiary Share Capital Reserves & Surplus Total Assets Total Liabilities [excl.08 189.50 738.774.562.ANNuAL RePoRt 2009-2010 b .25 4.06 52. the detailed financial statements.834.593.82 100% (11. 2010 (Rs.55 59.349.14 2184.108.40.206 57. Singapore (b) Indian Subsidiaries JKM Research Farm Limited Details of reporting currency and the rate used for converting.82 100% 52. Government of india.45 623.280.90 42.000.834. (2) & (3)] 5 6 7 8 9 % of Holding Sales & Profit before Provision for Profit after Other Income taxation taxation taxation Proposed Dividend (incl.049.170.69 114.8685 32.94) 42.12 36.910.926.897.2010.143.
825. Depreciation & taxation) (eBitDa) interest & Finance charges Depreciation net profit Before taxation and Forex impact Forex impact net profit Before taxation and after Forex impact provision for current year taxation mat credit entitlement provision for Deferred tax provision for Fringe Benefit tax provision for Wealth tax net profit after tax Balance brought forward from previous year amount available for appropriation Appropriations Dividend on equity shares – interim proposed Final Dividend on equity shares tax on Dividend transfer to general Reserve Balance carried to Balance sheet 243.17 (119.109/.40.65 1.annual RepoRt 2009-2010 . as against a loss of Rs.28 lacs in 2008-09.94 lacs (after discounting) has been credited to the profit and loss account.34 lacs and profit (Before interest & tax) grew from Rs.339.414. a subsidiary of your company.27 lacs and profit (Before interest & tax) declined from Rs.563.18 218.45 lacs.502.081.1.278.1.18 lacs to general Reserve.96 lacs to Rs. the aluminium castings business declined from Rs.for the year under report.19 lacs and profit (Before interest & tax) of Rs.120. in lacs) Particulars gross profit (Before interest.25 lacs in 2008-09.1.432.DIRECTORS’ REPORT TO SHAREHOLDERS your Directors have pleasure in presenting the thirty Fifth annual Report together with the audited statement of accounts for the year ended 31st march 2010. based on the performance of the company.856. absorbing Rs.88 49.610.108.04 1.84 lacs compared to Rs.74 2. during the year under report.244.87 lacs in 2008-09. an amount of Rs.366.19. this includes the turnover from Dynamatic limited.19.64 lacs has been accounted under hedge Reserve account.(exclusive of tax).826.66 162.826.02 2. the mark to market loss on this contract at the date of designation of the hedge amounting to Rs. g. to the extent of Rs.24.63 lacs to Rs.357.6. the movement in the market to market (mtm) subsequent to the designation as a cash flow hedge amounting to Rs. this includes the turnover from Dm 38 limited. profit (Before interest & tax) grew from Rs.201.79 1.17 lacs for the year ended march 31. eBitDa (before forex impact) on a consolidated basis was Rs. net profit Before tax (after forex impact) on a consolidated basis was Rs. your Directors. FINANCIAL RESULTS the Financial Results of the company for the year ended 31st march.45) 646.583.48 lacs.38 3.58 lacs.821.16 218.54. 2007 vis-à-vis recognition of aforesaid exchange differences as income / expense in the profit and loss account in the earlier years.90 lacs to Rs.44.03.46 3.26 lacs and loss (Before interest & tax) of Rs.63 lacs.1.830.70 2.496.985.128.81 48.3.552.324.12 year ended 31.563.094.498.25 2. a subsidiary of your company.61 lacs to Rs.83 135.59 lacs.7.4.2009 4. the company had opted (on 31st march 2009) to adjust the exchange differences relating to long term monetary items with retrospective effect from april 1.45 lacs is proposed to be retained in the profit and loss account. declared an interim Dividend of 45% and paid on 5.44 69.357.877. accordingly.007.R.725.20 1.394.s.6. uK. 2008 applying the hedging criteria.273/.5. hence the total Dividend payout for the year under review is Rs. 2009 and march 31. foreign exchange loss amounting to Rs.22 36.908.641.89 lacs.35. your Directors recommend a Final Dividend of 30% on 5. TRANSFER TO RESERVES your Directors propose to transfer Rs.63 1. 2010 respectively. 2010.8. net profit after tax (after forex impact) on a consolidated basis was Rs.414.16 lacs as against Rs. were as follows: (Rs.721.962.41.26 – 2. uK. as against Rs. the hydraulics and precision engineering business remained at the same level of Rs.18 3. 225(e) dated march 31.97 487.60 lacs in 2009.10/each.43 lacs to Rs. has been adjusted to the cost of fixed assets. the same has been designated as a cash flow hedge with effect from april 1. D–1 notes: previous year figures have been recast wherever necessary.051.164/-.43 1.83 lacs in 2008-09.236.94 169.16.46 lacs.522. total income on a consolidated basis was Rs.45 lacs.770.121.28) 211.771.48 the company has hedged a part of its future foreign currency receivables to mitigate its foreign exchange fluctuation risks.76 1.2010 5. Dynamatic technologies limiteD .12 56.230. DIVIDEND During the year. pursuant to notification no.29 1.114. as against Rs.142. however. 2009 issued by the ministry of corporate affairs.01 108.703 equity shares of Rs.37 81.425. the aerospace business grew from Rs.703 equity shares absorbing Rs.515.45 (121. COMPANY PERFORMANCE your Directors are pleased to inform that your company has shown a significant growth in profitability compared to the growth in sales of your company.22 2.29 lacs and foreign exchange gain amounting to Rs. to the extent of Rs.38 Year Ended 31.3.03.
all technology development efforts are guided at the Board level committee through the technology Development committee. total productive maintenance. lean management concepts together with 5s tools are being used on the shop floor to increase the oee (overall equipment effectiveness) of the operations. epp (employee participation program) etc. six sigma. Design software.425. cummins. Development. cnh. this facility operates a comprehensive product testing and validation laboratory. JKM Science Center at Dynamatic park peenya. mahindra & mahindra etc.71 lacs. prototyping. Improvement of existing designs.29 lacs to Rs. Defence & aerospace Research. has advanced design knowledge focused on the mobile hydraulics sector. Bangalore. cnh Daventry.45 lacs to Rs. with numerous inventions and patents to its credit. england. your company has released its supplier Quality management (sQm) manual at the Dynamatic® Vendor meet which was held on 13th march 2010 in Bangalore. cost & Delivery.39 lacs for technological infrastructure. to Ford Q1 quality standards. learning-bydoing.00 lacs. spread over an area of 40. 5s. ohsas:18000 and iso:14000. innovation and cost effectiveness. a sophisticated material science laboratory. information systems and Design and Development activities for the future benefits of your company. enabling the company to foray into providing new services. RESEARCH & DEVELOPMENT your company is a repository of diverse technologies and has transformed itself into a knowledge-based organisation through sustained Research & Development efforts. the Dynamatic® Hydraulics Research Laboratory in swindon. JKm Research Farm limited.the automotive business declined from Rs.49 lacs while profit (Before interest & tax) grew from Rs. six sigma etc have resulted in enhanced product quality. your company’s supply chain program aims at up-grading vendors to enable them to meet demanding requirements of Quality. state-of-the-art machinery.92 lacs against the previous year’s Rs.413. Dynamatic® Research & Development center and powermetric® Design. excellent engineering capabilities and ownership of intellectual property.1161. Fluid Dynamics. employee participation programs have resulted in the participation of employees in innovative activities and their contributions have resulted in continual improvements in work and work process. your company’s automotive division has been audited and approved by various global automotive majors including hyundai. Validation and Prototyping of new products.004. During the year. exports from india have grown at 31% with sales of Rs. captures the key tenets of the Dynamatic®’s supplier Quality system. your company’s wholly owned subsidiary. Business process re-engineering. Visual control. terex. JKm automotivetm supplies function-critical aluminium compressor housings to honeywell turbo technologies. Ford. machined and tested at your company has emerged as one of india’s leading Research & Development organisations. John Deere. operates a unique facility for testing and analysing complete aggregates and systems for mobile equipments. which every Dynamatic® supplier is expected to meet or exceed while undertaking work for your company. advanced computer aided engineering.. Dynamatic® employs over 50 scientists and 500 engineers and technicians with expertise in mechanical engineering. materials & metallurgical engineering. Daimler. ft. the Quality management system has been upgraded to version iso 9001:2008. statistical process control. launching new products and enhancing product value to our customers.3. the manual. this facility has D–2 Dynamatic technologies limiteD .000 sq.615. your company has successfully completed the 2nd surveillance audit to iso:9001 specifications for Quality management system and also to iso:14001 specifications for environmental management system. Your Company’s Design efforts are focused on • • • • Design.19.21.1051. metallurgical and manufacturing infrastructure enabling your company to comprehensively address the needs of its global customers. overall equipment effectiveness. Fiat. Quality tools viz. Rs. your company will be very shortly launching these new products globally. Rs. the sQm booklet links the Dynamatic® suppliers to its customers and channelizes the flow of information in the supply chain. etc. your company incurred capital expenditure of Rs. this stateof-the-art facility brings together Design engineering. QUALITY MANAGEMENT SYSTEM Dynamatic® Hydraulics During the year.2. JcB. your company’s focus on Research & Development has resulted in strong development initiatives. which forms an important part of the Dynamatic® management system. this is achieved by reducing rejections. Root cause analysis.2256. JKM AutomotiveTM and Dynametal® facilities are certified to the highest quality and safety standards specified by the automotive industry including ts:16949. Capital expenditure During the year. the castings are made at Dynametal®. the Dynamatic® Quality management system (Dms) comprises of quality requirements of global customers such as John Deere. computer aided manufacture. tata motors. Renault. Data security.annual RepoRt 2009-2010 . houses design laboratories viz. significant investments have been made in Building infrastructure. as well as. Ongoing testing of products and materials.40 lacs for physical infrastructure. a prototype manufacturing unit and a training center.46 lacs for procurement of intangible assets. completed testing and validation of new products for various customers like cummins. Vendor training & audits are being conducted at regular intervals. cycle time and through effective material management.566. Continuous improvement of existing processes. set ups. Dms utilises some of the best tools such as 5s. John Deere and cummins.903.
and. singapore. Swindon. ytil has been the holding company of oldland aerospace limited. Raymond Keith lawton and mr. a dedicated team from honeywell’s hos group is guiding JKm automotivetm and Dynametal® in understanding. (OAL). the company will make available the annual accounts of the subsidiary companies and related detailed information to any member of the company who may be interested in obtaining the same. a320. Dynamatic Limited. mr. oldland aerospace has received an award from West of england aerospace Forum (WeaF) for its lean manufacturing and continuous improvements initiatives. the consolidated financial statements presented by the company include financial results of its subsidiary companies. 1956. aerospace. SUBSIDIARIES Brief particulars of Subsidiaries are given below: JKM Research Farm Limited. it is the company through which yew tree investments limited was acquired. Limited. UK. profit and loss account and other documents of the subsidiary companies to this Report pursuant to section 212 of the companies act. JKM Global Pte. Bristol. a380 and a400m. D–3 Dynamatic technologies limiteD . JKm automotivetm is the only supplier outside europe chosen by honeywell to implement hos. UK. the plant has over 50 years of experience in gear pump design and manufacture. (JKMRF) is a Wholly owned subsidiary of your company. (DM 38) is a Wholly owned subsidiary of your company held through JKm global pte. retire by rotation at the ensuing annual general meeting and being eligible. JKm automotivetm has already successfully implemented the first two phases and is working on implementing phase 3 of hos. the whole operating system is implemented in 5 phases and each of them signifies the maturity of operating system. a330/340. DluK located in swindon.e. limited. offer themselves for re-appointment. a statement showing the relevant details of the subsidiaries is enclosed and is a part of the annual Report. govindarajan. g. and. the annual accounts of the subsidiary companies will also be kept open for inspection at the Registered office of the company. owns the land & Building in which oldland aerospace limited operates. and caters to agriculture. sheet metal processing and nc programming of air-Frame components. DEPOSITS as on 31st march. is one of DRDo’s significant agencies vested with the responsibility of airworthiness and certification of military aircraft and airborne stores. your company has no unclaimed Deposits by the Deposit holders of the company. Yew Tree Investments Limited. Oldland Aerospace Limited’s quality approvals and standards includes airbus uK. DM 38 Limited. temperature controlled fan drive systems and fixed displacement pumps in aluminium and cast iron with a range of additional integrated valve options. geometric modeling and manufacturing Drawings. During the year. singapore. products include combined variable and fixed displacement pump packages. across all the honeywell group operations. Singapore. the cemilac certification which is mandatory for defense & aerospace design. will enable powermetric® to undertake design and development in the areas of static & Dynamic analysis. Bristol. england produces high performance engineered hydraulic products. Details of Directors are presented in corporate governance report forming part of the annual Report. oal is a leader in aeronautical precision engineering. UK. Oldland Aerospace Limited. Dynamatic Limited. (Formerly Oldland CNC Limited) is a Wholly owned subsidiary of your company held through yew tree investments limited. Bs en iso 9001:2000 and as 9100. Westland helicopters limited. implementing and sustaining hos.JKm automotivetm and supplied to honeywell’s plants in pune. currently working on components for most of the airbus family of aircraft including a300/310. (YTIL) is a Wholly owned subsidiary of your company held through Dm 38 limited. 1956. as part of extending this to the suppliers’ manufacturing facility. it continues as an investment hub for overseas businesses. 2010. construction and highway vehicle manufacturers. Dynamatic limited’s lean initiatives continue to be the focus of all employees using 6s techniques. oldland aerospace limited has been accredited with environmental management system (ems) certification iso:14000. it continues to be the Research & Development facilitator to the company. this is the first time such capabilities have been built in the indian private sector. (JKMGB) is a Wholly owned subsidiary of your company. Dynamatic Aerospace® has the largest infrastructure in the indian private sector for manufacture of exacting air Frame structures and precision aerospace components. however. DIRECTORS under section 256 of the companies act. this division is also certified by industry majors like airbus & Boeing for supply of aircraft components and assemblies. the division is well supported by its as 9100 quality certification & naDcap approvals for heat treatment and non-Destructive-test Facilities.annual RepoRt 2009-2010 . central to the oldland approach is their commitment to a continual improvement program based on lean & agile engineering principles. REPORT ON SUBSIDIARY COMPANIES the company has obtained exemption from the government of india. mr. Bristol. Vijai Kapur. limited. uK. India. gKn aerospace services (ioW & yeovil). italy and France. UK is accredited to iso 9001:2008 standards and has recently completed the Bsi audit successfully. uK. tooling Design. s. UK. Powermetric® Design has successfully obtained the Design approval certification from the center for military airworthiness & certification (cemilac). honeywell has developed it’s own operating system named honeywell operating system (hos) and has implemented it in all its manufacturing plants. ministry of corporate affairs from attaching the Balance sheet. cemilac was established in 1995 to consolidate air certification work. (DLUK) is a Wholly owned subsidiary of your company held through JKm global pte.
as amended is forming part of this Report. Vita pvt. they have confirmed to the company that their reappointment. 1997. in respect of the financial statements is annexed to this report. Barota malhoutra christine hoden (india) pvt. an independent practicing company secretary. ltd. CORPORATE GOVERNANCE your company is committed to maintaining the best standards of corporate governance and adheres to the corporate governance requirements set out by seBi. foreign exchange earnings and outgo required to be disclosed under the companies (Disclosure of particulars in the Report of Board of Directors) Rules. 8. ltd. your company underwent a secretarial audit for the financial year ended 31st march. 1988 is given in ANNEXURE – I forming part of this report. B s R & associates. 9. statutory auditors of the company retire at the ensuing annual general meeting and offer themselves for re-appointment. shareholders and investors during the year under review. the notes on accounts referred to in the auditors’ Report are self-explanatory and do not call for any further comments. CONSOLIDATED FINANCIAL STATEMENTS your Directors have pleasure in attaching the consolidated Financial statements prepared by the company in accordance with the relevant accounting standards issued by the chartered accountants of india. which form part of the annual Report and accounts. read with the companies (particulars of employees) Rules. 1997: persons constituting promoters coming within the definition of ‘promoter’ for the purpose of Regulations 3(1)(e)(iii)(b) of the securities and exchange Board of india (substantial acquisition of shares and takeovers) Regulations. DISCLOSURES REQUIRED UNDER LISTING AGREEMENT Disclosures required under various clauses of listing agreement are made elsewhere in this annual Report. 1975. TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND pursuant to the provisions of section 205a(5) of the companies act. 3. 1956 and that they are not disqualified for re-appointment within the meaning of section 226 of the said act. would be within the prescribed limits under section 224(1B) of the companies act. ltd. 7. JKm offshore india pvt. information required under section 217(2a) of the companies act. 6. PARTICULARS OF EMPLOYMENT your company believes that a well-trained. 2010 Dr. AUDITORS AND AUDITORS’ REPORT m/s. 1956. primella sanitary products (pvt). conducted this audit. Wavell investments pvt. as stipulated under clause 49 of the listing agreement with the stock exchanges in india is presented in a separate section forming part of the annual Report. managers staff and Workers of the company and look forward their continued support in the future. 2000. the company has also implemented several best corporate governance practices prevalent globally. ltd. 1956. 5. K. APRAMEYAN Chairman of the Meeting Dynamatic technologies limiteD . ltd.annual RepoRt 2009-2010 . regarding compliance of conditions of corporate governance as stipulated under clause 49 of the listing agreement with stock exchange/s together with the management Discussion and analysis of the financial position of the company. include the following: Sl. FOREIGN EXCHANGE EARNINGS AND OUTGOING the information relating to conservation of energy. who is a past member of central council of the institute of company secretaries of india. Name of the Entity mrs. PROMOTERS The names of the Promoters are disclosed for the purpose of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations. SECRETARIAL AUDIT REPORT as a measure of good corporate governance practise. D–4 MANAGEMENT DISCUSSION AND ANALYSIS REPORT management’s Discussion and analysis Report for the year under review. form part of this Report. your Directors also wish to place on record their deep sense of appreciation for the committed services of executives. 2. 1. customers. JKm holdings pvt. chartered accountants. mr. government authorities. ltd. TECHNOLOGY ABSORPTION. Banks. udayant malhoutra udayant malhoutra and company pvt. ltd. CONSERVATION OF ENERGY. technology absorption.DIRECTORS’ RESPONSIBILITY STATEMENT the Directors’ Responsibility statement as required under section 217(2aa) of the companies (amendment) act. a separate section on corporate governance and a certificate from the practicing company secretary. By order of the Board of Directors PLACE : BANGALORE DATE : 22ND JULY. 2010. dividends which remained unclaimed for a period of 7 years have been transferred by the company to the investor education and protection Fund. 4. your company has extremely cordial relations with all its employees and your company strives on mutual trust created among the employees and the management. if made. the skill sets of its employees gives your company the flexibility to adapt to the demanding needs of global customers. No. motivated and satisfied employee base is a key to your company’s competitive advantage. Vendors. ACKNOWLEDGMENT your Directors would like to express their grateful appreciation for the co-operation received from the Financial institutions.
the power cost savings. l b) conversion of office lighting from 40W tubes to energy saving lamps of higher lumen. v. Further. saving energy. enables Dynamatic® to generate clean energy for captive consumption.ANNEXURE TO DIRECTORS’ REPORT ANNEXURE – I statement under section 217(1)(e) read with the companies (Disclosure of particulars in the Report of Board of Directors) Rules. shut down of assembly press power during idle time. the installation of auto Demand controller prevents the exceeding of sanctioned demand by triggering an alarm or tripping the electrical circuit. the Wind farm of 12 mW (250 KW x 48 machines) capacity generated 17. this not only results in a significant reduction of the company’s carbon foot print but also helps in conserving energy costs. iii. the automation of the air operated lid mechanism prevents loss of heat and maintains holding temperature. thereby avoiding dependence on the human element for switch on and off. (b) Various additional investments / proposals being implemented for reduction of consumption of energy l interfacing of variable speed drive to reduce the power consumption compressor. capable of generating approximately 18mn.36 lacs during the year. linkage of man-cooler used for providing ambient air to the shop floor to plc for automatic shut down during specified idle time. and forming part of the Directors’ Report for the year ended 31st march. viii. total KWh units saved / annum is approximately 17 million KWh units. Generating Green Energy through Dynamatic® Wind Farm in 2008. the continual treatment and recycling of effluents minimizes environment pollution.annual RepoRt 2009-2010 . (a) Energy Conservation measures and impact at Dynamatic® Chennai i. absorption. Dynamatic® acquired a 12 mW Wind farm in coimbatore.52 million KWh units of green energy last year. india. periodic energy audits so as to evaluate conservation processes. periodic air audits to establish an air leak free facility. thereby reducing the need for electrical lighting during the day. thereby saving energy by operating only when it is required. through the installation of man-movement sensor. vii. keeping the office spaces cool and lowering energy consumption. Details of green energy steps can be viewed at corporate sustainability Report of the company. 2010. the industrial complexes are highly energy efficient and completely non-polluting. CONSERVATION OF ENERGY all our facilities in india and abroad are built with the environment in mind and the processes are designed for efficiency. thereby eliminating the need for further heating. installation of heat traps for holding furnaces in the Foundry. vi. D–5 l l l l l Dynamatic technologies limiteD . a. iv. auto on/off of office area lighting/air conditioners. which will allow the compressor to control its output depending on the load and thus. as a result of the green energy generated by the Wind farm. units of power annually. corresponds to Rs. c) conversion of factory perimeter lighting from 250 watts sodium Vapor lamp to energy saving lamps of higher lumen. which will enable the power factor to be in control thereby reducing monthly demand charges. the canary yellow buildings reflect sunlight. Ducting which is used to maintain ambient temperature is switched on / off automatically based on inputs from humidity and temperature. the Wind farm which comprises of 48 windmills on 440 acres of free-hold land. 1988. which resulted in 80% of the annual grid power being saved and enabled the automotive production Facility & the Foundry in chennai to considerably reduce their carbon foot-print. the air quality at all plants is continuously monitored for suspended particulate matter. usage of energy efficient lighting all through the Dynamatic® industrial complex in chennai Key changes include: a) conversion of hi-bay metal halide lamps (250 Watts) used on the production shop into energy saving 80W lamps of higher lumen. Disclosure of particulars with respect to conservation of energy. ii. and implement corrective actions that will contain wastage. adoption and innovation A. and is kept well within safe limits. b. the use of transparent roofing material on the production shop increases day-light on the production shop. computer numerical controlled (cnc) machines are programmed to go to emergency state by automatically switching off power when the machine is idle. auto power Factor controller installation in the lt side of captive power. conversion of perimeter lighting from electric lamps to solar power lighting.346. energy conservation and to ensure that no waste is transmitted into our environment.
mechatronics application in tractor hydraulics. Dynamatic® science lab created by consolidating various research and technology functions helps to create enhanced value for by leveraging skills and competencies and creating new opportunities in the business. business profitability. D–6 l l l l l l l l analysis coupled with experimentation towards product design optimization.5%.36 lacs during the year.annual RepoRt 2009-2010 . product performance enhancement and application understanding and problem solving. which generally holds the molten metal before pouring. plessey technology became part of Dynamatic® on acquisition of Dynamatic limited. Design and Development of combi pump for nano car at automotive unit. Specific areas in which Research & Development (R & D) is carried out by the Company Highlights l l l Development of new design for robust hydraulic gear pumps for earthmoving sectors. Development of Fixed clearance gear pump catering to specific requirement of low pressure high Flow capability. machine tools structures including cnc machines upgrade. Design and Development of mobile survelliance Vehicle (msV) for Defence applications. requires constant heating to maintain the molten metal within the required temperature limits. Windchill. new projects for Defence sector.(c) Impact of measures at (a) and (b) given above. has generated about 17 million KWh units last year. which has enabled the automotive production Facility & the Foundry in chennai to be caRBon FRee for most part of the year. sustainability. Dynamatic® owns world’s best hydraulic technologies viz.346. Development of various types of hydraulic gear motors. Design and Development of KV lube pump for cummins. Technology Development Committee of the company provides direction to the company’s Research and Development strategy and on key issues pertaining to Research & Development technology. corresponds to Rs. technology Development and innovation continues to be an integral part of Dynamatic’s operations for achieving growth. uK which was in existence for more than four decades. Design and Development of internal gear pump for lubrication of tractor transmission for John Deere. Windchill is extensively practised across various functional units of the company at plant level imparting fast and accurate engineering data transfer & management capability. Design and Development of customized consumer products for nss. Daventry. Development of total tractor hydraulic aggregates including hitch control Valve. Research & Development at Dynamatic® is driven by the technology Development committee. the company collaborated with Dowty technology during 1973 which was later owned and indigenized. B. Development of new machine tools. the heat from the molten metal is not wasted and the temperature is maintained constantly without any additional power. Design and Development of electric Vechicle charging point for charging of electric cars across the world. 1. Value engineering processes. tamil nadu. introduction of product life cycle management tools viz. By implementing this mechanism. TECHNOLOGY ABSORPTION Research & Development plays a vital role in developing and adopting new technologies to enhance our operational efficiencies. Dowty and plessey technologies. as a result of the green energy generated by the Wind farm. the power cost savings. the committee regularly reviews and updates the skills and competencies required. l l l l l l l l l Dynamatic technologies limiteD . the structure and the process needed to ensure that the Research & Development initiatives today result in products necessary for the sustained and long term growth of the company. it has resulted in 80% of the annual grid power being saved. for reduction of energy consumption and consequent impact on the cost of production of goods l the Dynamatic® Wind farm in coimbatore. (e) Efforts made in technology absorption – as per Form B given below: FORM B Research & Development (R & D) Research & Development. twin Disk pump for various applications. usa. for existing products and l l INNOVATIVE PROJECTS IMPLEMENTED AT DYNAMATIC® CHENNAI TO CONSERVE ENERGY Heat Traps For Holding Furnaces . Factory automation. (d) Total energy consumption and energy consumption per unit of production as per Form ‘A’ is attached hereto as ANNEXURE IV. a board level committee. Reduction in energy cost to sales is 0.By Auto Lid arrangements the holding Furnace. total KWh units saved / annum is approximately 17 million KWh units. from england. Validation of Zenith and thor project pumps.
new types of gear pumps and motors built with special configuration for various applications. areas where this has not taken place. reasons therefore and future plans of action. By combining the technical competence of its facility in Bristol. control Valve and Rock shaft assembly. Expenditure on R & D Rs.75 l l l l l l import of Raw materials. components. the first of its kind in the indian private sector. Future plan of action the company plans to increase its efforts in developing new and cost-effective applications in the above sectors. Rs. total Foreign exchange earned b. in brief. FOREIGN EXCHANGE EARNINGS AND OUTGOING During the year the company has exports (FoB Value) worth Rs. machine tool development program. Sub Total (a+b) d.92 lacs (f).27 593. will be able to deliver greater value and advantages to the customer.683.annual RepoRt 2009-2010 D–7 .75 - 3. in lacs 3.34 508. The above facilities have enabled the Company to develop the following: a) heavy Duty new generation cast iron gear pumps with very high pressure operational capability built with patented interlocking concepts. total tractor hydraulic aggregates for mncs including gear pump. this is a unique facility.63 5. therefore.36 180. by presenting research papers in the field of Fluid power & ansys related topics. Technology absorption. Development of lubricating oil pump suitable for heavy Duty engine for export market. total savings in foreign exchange through products manufactured by the company and deemed exports c. now. which aids in relationship-building with the company’s customers. electro–hydraulic application. possesses the capabilities and expertise to undertake the complete manufacture of the products.53 507. government of india.598. Dynamatic®. e) b) c) d) f) g) h) e) 6. JKm Research Farm. Not applicable C. ansys and cFD analysis towards product design optimization and product performance & application analysis. in lacs (a) capital (b) Recurring (c) Total 1. aggregates for Defence l b) c) d) 2. through continuous innovation. made towards technology absorption. for both domestic and export markets. stores and spares Foreign travel subscription fees technical fees interest and legal expenses capital expenditure others 4. facilitates testing and validation of the products developed by the company’s customers. improvement of existing designs and ongoing testing of products and materials. new process improvements through value engineering towards cost reduction and import substitution. with the cost & manufacturing advantages offered by the facilities in india and swindon. In case of imported technology (imported during last 5 years – reckoned from the beginning of the financial year). total Foreign exchange used l 3. as a `Recognized In-house R & D Unit’. capitalizing on new business opportunities viz. Foreign Exchange Earned and used a.16% 5. Dynamatic® continues to participate in various collaborative projects in india and overseas. participating in india’s Defence indigenisation and technological up-gradation program.740. consequently. following information may be furnished: a) b) c) d) technology imported: year of import: has technology been fully absorbed? if not fully absorbed.3.87 nil na na total expenditure as a percentage of turnover (net): 1. this is a prestigious honor conferred on the company. Few of the key mile-stones achieved a) Design and development of new products with existing customers and new customer base both at domestic and export market. your company has been recognized by the Department of scientific and industrial Research (DsiR).22 Total Foreign Exchange Used Dynamatic technologies limiteD .413.683. adoption and innovation the Dynamatic® Knowledge center has enabled your company to gain expertise in developing high precision engineering products. respectively. Rapid proto-typing.06 81. 4. Benefits derived as a result of the above R & D all the following efforts have led to innovative product and process developments leading to new market creation and higher value addition. adoption and innovation Efforts. and.l Dynamatic® hydraulics has also placed its foot print in the community of international Research.90 2. new optimized Die-casting machine tools for Foundry application.
000 fully paid Equity Shares of GBP 1/.01) (361.53 686.2010 1. UK) 31.each 100% Rs.each 100% Rs. Limited.2010 JKM Global Pte.95) 572.40 575.ANNEXURE – II ANNEXURE TO DIRECTORS’ REPORT FOR THE YEAR ENDED 31st MARCH. 2010. Singapore) 31. In lacs 14. Singapore) Yew Tree Investments Limited (a subsidiary of DM 38 Limited. 1956 RELATED TO SUBSIDIARY COMPANIES Particulars JKM Research Farm Limited (a subsidiary of Dynamatic Technologies Limited. UK) 31. 10/.82) (1294. India) 31.250. 2. In lacs 4.each 100% Rs.2010 Dynamatic Limited (a subsidiary of JKM Global Pte.571. In lacs 2. The net aggregate of Profit / (Loss of the Subsidiaries for previous years. - - - - - - 21. 2009.000 fully paid Equity Shares of GBP 1/. Limited (a subsidiary of Dynamatic Technologies Limited.63) 427.43 (335.2010 3. In lacs b) Extent of holding 3.each 100% Rs.2010 DM 38 Limited (a subsidiary of JKM Global Pte. Limited.annual RepoRt 2009-2010 . The net aggregate of Profit / (Loss) of the Subsidiaries so far as they concern the members of the Company: a) Dealt within the account of the Company for the year ended 31st March.79 291.03. 2009.89 382. since it became subsidiary so far as they concern members of the Company: a) Dealt within the account of the Company for the year ended 31st March.51 - - - - - - (100.600. b) Not dealt within the account of the Company for the year ended 31st March.03.03.000 fully paid Equity Shares of Rs. 4.87) (28.03. Financial Year ended on Shares of the Subsidiary held by the Company on the above date: a) Number and Face Value 31. In lacs 100 fully paid Equity Shares of GBP 1/. b) Not dealt within the account of the Company for the year ended 31st March.each 100% Rs. India) 31.10 D–8 Dynamatic technologies limiteD . In lacs 2 fully paid Equity Shares of GBP 1/.each 100% Rs.03. 2010.451 fully paid Equity Shares of Singapore $1/.300.2010 Oldland Aerospace Limited (a subsidiary of Yew Tree Investments Limited. 2010 STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT.03.
595 4.127.) 7.lacs total cost (Rs. average rate per Kg CONSUMPTION PER UNIT PRODUCTION units / pump / auto parts FuRnace gas lpg 13.06 na na na na na na na na na na na na 4.550 85 na 1.) 2.50 10 41. 1956. 2010 on a `going concern’ basis.00 gms/ gear 7.492.85 na 42. Rate / unit GENERATION THROUGH CAPATIVE POWER FACILITIES through Diesel generators units KWh per unit of fuel Fuel cost (Rs.lit total cost (Rs.212 11.140 4.712 3.annual RepoRt 2009-2010 D–9 .954.05 1. for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.023.lpg Qty .IV Form ’a’ Disclosure of particulars with respect to conservation of energy Power and Fuel Consumption sl no.571 4. We have prepared the accounts for the financial year ended 31st march. THROUGH WIND FARM UNITS PURCHASED FUEL CONSUMED Furanace oil qty .265 5. ii.) 3.665 4. 4.44 15.81 9.378.50 10 820. ANNEXURE .) average rate / lit (Rs.) 5.900 6.573.29 13.814 Hydraulics 2009-10 2008-09 Aerospace year 2009-10 2008-09 2009-10 2008-09 Automotive 124.00 gms/gear na na 0.00 9.266. iii.856 4.05 6.ANNEXURE .275 97.82 na Dynamatic technologies limiteD . in the preparation of accounts for the financial year ended 31st march.818 4.192 4.859 27. 2010.907.00 8.75 1.895. 1. the applicable accounting standards have been followed with proper explanation relating to material departures if any.698.904 3.237 26.50 10.727.Kg total cost (Rs.47 729.142.830 410.890 184.85 na 128.50 10.643 3.140 51.304.46 11.062 2.386 4.775 499. 2000.381 44. the Board of Directors hereby confirms that: i. DIESEL OIL OTHERS gas .50 6. iv.929 3. 6. We have taken proper and sufficient care for the maintenance of adequate records in accordance with the provisions of the companies act.50 na na 17. Particulars ELECTRICITY purchased units .III The Directors’ Responsibility Statement as required under Section 217(2AA) of the Companies (Amendment) Act.175 590.47 2.5 na na na na na na na na na na na na na na na na na 2. We have selected such accounting policies and applied them consistently and made judgments and estimates that were 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 and loss account of that company for the year under review.
APRAMEYAN Chairman of the Meeting . Based on our knowledge and information. all relevant information wherever applicable. the company’s respective functional heads and we have disclosed. if any. all the members of the Board and senior management personnel of the company have affirmed due observance of the said code in so far as it is applicable to them and there is no non-compliance thereof during the year ended 31st march. changes in accounting policies during the year and the same have been disclosed in notes to financial statements. to the best of our knowledge and belief. no transactions entered into by the company during the year which are fraudulent. to the best of our knowledge and belief. K. udayant malhoutra.annual RepoRt 2009-2010 Dr. 2010 UDAYANT MALHOUTRA c e o & managing Director V. We are responsible for establishing and maintaining internal controls for financial reporting of the company regularly evaluating the effectiveness of internal control systems of the company pertaining to financial reporting and disclosure to the auditors and the audit committee. process. illegal or violative of the company’s code of conduct. and /or applicable laws and regulations. which could adversely effect the company’s ability to record. present a true and fair view of the company’s affairs and are in compliance with existing accounting standards as issued by the institute of chartered accountants of india. b) c) to the best of our knowledge and belief. of Dynamatic technologies limited. 2010.ANNEXURE . summarize and report financial data and have evaluated the effectiveness of internal control systems of the company in consultation with the statutory and internal auditors of the company. the financial statements and other information included in this report. SUNDER president & group cFo By order of the Board of Directors PLACE : BANGALORE DATE : 22ND JULY. l We further confirm that the company has framed a specific code of conduct for the members of the Board of Directors and senior management personnel of the company pursuant to clause 49 of the listing agreement with the stock exchanges. these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading. to the company’s auditors and the Board of Directors of the company: l d) We have eliminated all significant deficiencies in the design or operation of internal controls.V CERTIFICATION BY CEO & MANAGING DIRECTOR AND PRESIDENT & GROUP CFO OF THE COMPANY We. We have indicated to the auditors and audit committee changes in internal control over financial reporting during the year. ceo & managing Director and V. 2010 D–10 Dynamatic technologies limiteD . and all its schedules and notes on accounts. sunder. place : DateD : BangaloRe 22nD July. as well as the cash Flow statements and the Director’s Report. certify that: a) We have reviewed the Balance sheet and profit and loss account (Dynamatic®). deficiencies in the design or operation of such internal controls. president & group cFo.
7 per cent recorded in 2008-09.MANAGEMENT’S DISCUSSION AND ANALYSIS SAFE HARBOUR STATEMENT Investors are cautioned that this discussion contains statements that involve risks and uncertainties. The Company undertakes no obligations to publicly update or revise any forward looking statements. your company’s performance has been satisfactory. south Korea and thailand. A. ‘anticipate’. instituted a comprehensive review of the national security system in its entirety for the first time in the history of independent india. Automotive industry the automobile industry in india is the seventh largest in the world with an annual production of over 2. in 2008. the improvements in global macroeconomic condition are reflected in the turnaround in exports and return of capital flows. in the recent past. fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like hyundai motors. Dynamatic® hydraulics designs. general motors announced its plans D–11 Dynamatic technologies limiteD . nissan motors plans to export 250. in 2009. india is expected to top the world in car volumes with approximately 611 million vehicles on the nation’s roads. resulted in 80% of the annual grid power being saved and enabled the automotive production facility and the Foundry in chennai to considerably reduce their carbon foot-print. india’s strong engineering base and expertise in the manufacturing of low-cost. one of the finest center of excellence for 5 axis machining for aeronautical application. whether as a result of new information. ECONOMY the overall global economy started picking from the last quarter of 2009. keeping this in view. india emerged as asia’s fourth largest exporter of automobiles. it has enabled the rapid scale-up with an efficient cost structure between europe and india. nissan. future events. During the downturn your company acquired two operating units at swindon and Bristol in 2007 and 2008 respectively. When used in this discussion. against this backdrop. Therefore as a matter of caution. debt relief for farmers. up from 6. india has emerged as one of the world’s largest manufacturers of small cars. ‘intend’.2 per cent. hydraulic and security applications and enjoys a leadership position as the partner of choice to the ministry of Defence and other leading defence agencies in india. Actual results. your company’s acquisition of Wind farm at coimbatore of 12 mW capacity which generated around 17 million KWh units (inR 4. your company designs and builds highly engineered products for automotive. sustained its market leadership as one of the world’s largest hydraulic gear pumps makers for the last 35 years and is focused on being number one. undue reliance on forward looking statements should not be made. The following discussion and analysis should be read in conjunction with the Company’s financial statements included herein and notes thereto. as you know.6 million units in 2009.000 vehicles manufactured in its india plant by 2011. hyundai motors alone exported 240. gDp growth for 2009-10 was 7. performances or achievements could differ materially from those expressed or implied in such statements.000 cars made in india. this sector has recorded a growth of about 4 percent per annum with substantial increase in plan allocations and capital formation in the sector with concessional interest rates to farmers.annual RepoRt 2009-2010 . your company has outperformed in the hydraulics and aerospace segments compared to the previous year’s performance. similarly. global financial markets exhibited significant stabilization during the year despite the pressures from financial crisis. aeronautic. ‘estimate’. support prices for key crops and accelerated irrigation benefit programs declared by the government of india in its recent budget. manufactures and markets various hydraulic pumps and related products for the indian and overseas tractor markets. the company has synergised high capital intensive units in europe with low cost labor arbitrage available in countries like india. behind Japan. By 2050. develops. these acquisitions have provided your company with state-of-the-art technologies. the government. it is the largest manufacturer of hydraulic pumps. OVERVIEW. toyota. ‘will’ and ‘expect’ and other similar expressions as they relate to the Company or its business are intended to identify such forward looking statements. the indian economy exhibited a momentum in recovery. Volkswagen and suzuki.8 million / annum) of green energy during the year. STRUCTURE & DEVELOPMENT Hydraulics Industry agriculture has been the mainstay of india’s economy with 60 percent of the population deriving their sustainance from it. or otherwise. 2009-10 is the inflection point for the transformation of business into the next level of growth. the broad array of challenges which are existing and potential to the national security in the fast changing geo-strategic security environment mandate a periodical re-appraisal of our security procedures to cope with them. ‘believe’.
Ford motors announced its plans to set up a plant in india with an annual capacity of 250. Dynamatic’s automotive division. Renault nissan. close to $20 billion at list prices. to 230. is nearer to airbus’ roughly $22 billion in indian orders. Bajaj auto is designing a low-cost car for the nissan-Renault alliance. which normally seat around 150 passengers. Daimler india. in recent years.000 crores approximately. since the demand for automobiles in recent years is directly linked to overall economic expansion and rising personal incomes. chennai. Fiat india. D–12 the p-8i can operate effectively over land or water while performing anti-submarine warfare missions. the p-8is will provide india with speed.5 million cars which will strengthen JKm automotive™ position in the indian auto component industry. market. this proximity enables JKm automotive™ to cater with high quality products to these global customers.would be of singleaisle aircraft like the Boeing 737 and the airbus a320. Demand from emerging markets in asia and low-cost carriers in europe and north america are expected to drive those future sales. the cars will be manufactured both for the indian market and for export as a part of Ford’s plan to make india the hub for its global production business. government plans to more than double the number of Russianmade sukhoi 30 mKi fighter aircraft in indian air Force fleet. Daimler india. these customers have installed capacities upto 1. and longrange intelligence. JKm automotive™ has an advantage of a 20 kms radius proximity to international global vehicle manufacturers like hyundai motor india. including a crop of new discount airlines. Renault nissan india. Commercial Industry in the strongest evidence yet of strengthening recovery in the commercial aviation sector. Rapidly expanding indian carriers. 42. eurofighter typhoon. gm. MMRCA the indian airforce is estimated to supply 126 medium multi Role combat aircraft (mmRca) a cost of Rs. shipping more than 250. cummins & honeywell on a single source basis.annual RepoRt 2009-2010 . JKm automotivetm. Boeing predicted that the vast majority of new jet sales during the next 20 years . which will market the product worldwide. the two largest makers of aircraft in the world announced more than $24 billion worth of new jet orders at the Farnborough air show. Ford india. hyundai motor india is the largest exporter from the country. an RFp has been floated and six aircraft manufacturers have bid for the order. persistence and room for growth to satisfy the country’s requirements now and well in the future. tata motors. Dassault Rafale. mikoyan mig-35 and the american lockheed martin F-16in and Boeing F/a-18in (a version of the super hornet). india has emerged as a leading center for the manufacture of small cars. strategically located in one of the india’s automotive hubs. search and rescue. mahindra & mahindra is preparing to introduce its pickup trucks and small suV models in the u. the melting pot of a robust Russian airframe combined with state-of-theart western avionics and locally developed computers has given the indian air Force a quantum leap in offensive capability unrivalled in asia. Dynamatic technologies limiteD . airbus has bagged 295 orders from indian customers and while Boeing has secured 138 orders. the saab gripen. by 2015.1 billion order from india for eight of its p-8i long Range maritime patrol aircraft. While the possibilities are impressive. there are challenges that could thwart the future growth of the indian automobile industry. reliability. 2010. tata motors exports its passenger vehicles to the asian and african markets.s. nissan will also export small cars from its new indian assembly line. have ordered close to $40 billion worth of big jets over the past two years.000 cars annually. the industry growth will slow if the economy weakens.000 cars manufactured in india by 2011. Ford motor company. the bulk of which came from lessors eager to help airlines bolster capacity as global air traffic revived. the single-aisle market is the fastest-growing sector of the world aircraft fleet. chennai. Faurecia etc. in september 2009. John Deere. Derived from Boeing’s commercial 737 airframe.around 69 percent . incorporates state-of-the-art technologies to produce high quality automotive components for hyundai motor india limited.to export about 50. JKm automotive™ is also working very closely with other global oe/tier 1 suppliers like Volkswagen. the value of Boeing’s order book. surveillance. Aerospace & Defence Industry Defence Industry P8I Boeing bagged a $2. Flight trials have been completed and the airforce is currently in the process of evaluating the aircraft on technical parametes. the p-8i is a true multi-mission maritime patrol aircraft (mpa) that features greater flexibility and a broader range of capabilities than mpas currently in service.000 cars for us$500 million. HAL – Sukhoi 30 MKI the sukhoi-30 mKi is without doubt one of the finest multi-role aircraft in the world today. it is similar to the p-8 a poseidon that Boeing is developing. target acquisition and reconnaissance. maritime interdiction.
Dynamatic aerospace®, a division of Dynamatic®, is a pioneer and a recognized leader in the indian private sector for the development of complex aero-structures and manufacture of aircraft parts & accessories. Dynamatic aerospace® has successfully executed important projects for defence agencies of national importance such as DRDo, hal, etc. products include the wing and rear fuselage of the laKshya, india’s first pilotless target aircraft, and ailerons & flaps for the hJt-36 intermediate Jet trainer. this is the first time such capabilities have been developed in the indian private sector. the unit is actively involved in hal’s hJt-36 project, which is the intermediate Jet trainer program of hal. Key projects include the fabrication and assembly of the control surface (Flaps & ailerons) and development of Wing assembly Jigs for iJt. the largest program on the indian Defence is the manufacture and assembly of major airframe structures for the sukhoi 30 mKi (“su-30”) fighter-bomber. there are 6 different control surfaces, Vertical Fin, Ventral Fin, horizontal stabilizer, slats, canard and airbrake that go on to the aircraft. to meet the production demand the Jigs have been duplicated and all the assemblies is being relocated to the new Dynamatic® facility in nasik where the complete sukhoi aircraft is assembled by hal. Dynamatic technologies has signed a contract with Boeing for the manufacture of cabinets to house critical power and mission equipment for the p-8i program. Dynamatic® and Boeing are working towards having a First article ready for inspection by end of 2010. on the commercial aircraft business, Dynamatic aerospace® has achieved global single source status for the supply of Flap track Beam assembly for airbus single aisle aircraft family. the Fai for the assemblies were completed in may 2009 and in 12 months the aerospace division has been able to achieve the complete ramp up of production of over 30 sets of aircraft per month. Dynamatic® is working closely with spirit aerosystems, the world’s largest aerostructure manufacturer as an industrial partner in this project. Dynamatic aerospace® is vertically integrated to manufacture cnc components, sheet metal components, soft tooling, hard tooling, Jig manufacturing and comprehensive engineering capabilities. Dynamatic aerospace® is as9100 quality approved, naDcap approved for heat treatment and non Destructive testing and airbus/Boeing approved for manufacture of aero structures. the acquisition of oldland aerospace™ (Formerly oldland cnc), a high end precision engineering company in Bristol, uK, has provided Dynamatic® with a unique state-of-the-art aeronautical manufacturing facility
which is a center of excellence for 5 axis machining capabilities and a certified supplier to airbus uK, Boeing, gKn aerospace, magellan aerospace, ge aviation systems, lockheed martin and agusta Westland. the induction of oldland aerospace™ into the Dynamatic® group has conferred the business with the strategic locational advantage required for the forging of strong direct relationships with leading aerospace companies in europe and america. B. OPPORTUNITIES AND THREATS your company believes that it is well positioned to sustain its existing leadership position in each business segment, across key markets, as well as to exploit significant growth opportunities that exist in each of its businesses. your company produces highly engineered products for various applications in the automotive sector, aerospace & Defence sector, agricultural equipment and construction equipment industries. Dynamatic® has state-of-the-art manufacturing facilities, located in Bangalore and chennai in india, and in swindon & Bristol, in uK, which offers it a geographical advantage in managing its customer relationships. Dynamatic’s presence in india and u.K. also grants its business processes the flexibility to combine the strengths of each location, so as to deliver cost and long-term global manufacturing advantages to its customers. Dynamatic® has launched its ‘yellow Brick Road’ strategy, which uniquely positions it to achieve greater economic relevance. the yellow Brick Road strategy is implemented by achieving synergies in competence & skills, cost of efficiency and the maximizing of capacities, without departing from the company’s philosophy of building a green enterprise. this will enable us to respond swiftly to customer needs, business synergy, cost competitiveness, risk mitigation, and, the development of a stable supplier base. With over three decades of manufacturing experience, vertically integrated manufacturing facilities in two continents and global deliveries into all six continents, your company is equipped to deliver from concept and design stage to manufacture of products and delivery of services in each of the business segments. your company operates in the following business segmentsprecision engineering hydraulics automotive aerospace powermetric® Design metallurgy Dynamatic homeland security™ non-conventional energy
Dynamatic technologies limiteD - annual RepoRt 2009-2010
Dynamatic® Hydraulics, India and UK
31.03.2010 Financial Highlights Business Highlights segment sales profit Before interest & tax capital employed • • • • • 19,357.84 985.45 9,942.85
Rs. in lacs 31.03.2009 19,425.60 877.61 10,636.12
• • • •
• • •
GLOBAL SCALE: one of the World’s largest manufacturers of hydraulic gear pumps. GLOBAL PRESENCE: production facilities in two continents, india & europe. sales in 6 continents. DOMINANT PLAYER IN INDIAN MARKET: single source supplier to 75% of india’s tractor oems and construction equipment industry, approximately 35% of india’s automobiles. INTELLECTUAL PROPERTY OWNERSHIP: own the design of every part made. applies cutting edge technologies and highly sophisticated machinery for product manufacturing. COMPREHENSIVE RANGE: manufactures a wide range of sophisticated hydraulic Valves and custom tailored hydraulic solutions extending from simple hydraulic pumping units to sophisticated marine power packs, complex aircraft ground support systems to turnkey industrial installations. COMPREHENSIVE DISTRIBUTION BASE: posses a global Delivery chain, a vastly broadened product offering. an incomparable distribution network of over 50 distributors and 500 stockists have given the company’s broadest possible coverage of the indian hydraulics market, catering to over 80% of mobile hydraulic gear pump applications. DESIGN & DEVELOPMENT: Dynamatic® has world-class design laboratories as well as enhanced technologies to support its growth plans in a sustainable manner. partners with major global tractor oems. among the World’s finest engineering laboratories. GLOBAL REACH: strong Design and Development partnerships with major tractor oems. its customers / suppliers include mahindra & mahindra, eicher tractors, punjab tractors, same Deutz-Fahr, escorts limited, l&t, John Deere, new holland india, Beml, godrej & Boyce, hmt, Bhel, telco. EXPORTS: are made to over 30 countries and are used in original equipments in usa, uK, canada and south Korea. supplier to the infrastructure sector with its cast iron body pumps for clients like JcB, caterpillar, cummins etc. VALUE ADD: supplier of total tractor hydraulics systems (hitch lifts) to new generation tractor manufacturers. currently catering to same Deutz-Fahr. producer of hydraulic transmission system for india’s t-72 Battle tanks. additionally, the company has designed the steering control system, turret control system and Braking system for ARJUN main Battle tank. QUALITY MANAGEMENT SYSTEMS: are certified under iso 9001 specifications (iso 9001:2008) and also to iso 14001 specifications for environmental management system. GLOBAL MARKETS: Dynamatic®, uK enable us to visualize global markets in terms of quality, cost and delivery system. DEVELOPING NEW MARKETS: During the downturn, Dynamatic®, uK utilized its resources to discover its replacement market along with oem developing various products to the customers. Rs. in lacs 31.03.2010 31.03.2009 21,425.45 903.29 10,936.16
JKM AutomotiveTM, Chennai
Financial Highlights Business Highlights segment sales profit Before interest & tax capital employed • • 19,004.49 1,051.00 9,318.96
• • •
SINGLE SOURCE: produces high quality ferrous and non-ferrous critical engine and transmission components on a single source basis for global automotive oems. INNOVATIVE SUPPLY CHAIN CONTROL: incorporates state-of-the-art technologies to produce high quality automotive components for hyundai motor india limited, Ford motor company, tata motors, John Deere, Fiat india, Daimler india, Renault nissan india, cummins & honeywell on a single source basis. moving from being hyundai-centric to multiple customer business to mitigate business risk. GEOGRAPHICAL ADVANTAGE: JKm automotivetm has two manufacturing facilities located in chennai, one of the prominent automotive hubs of india. STRADDLES THREE SEGMENTS: incorporates highly efficient production systems and processes to produce automotive components for highway, off-highway and technology oriented applications.
Dynamatic technologies limiteD - annual RepoRt 2009-2010
GREEN ENERGY: acquisition of Wind farm during 2009 which generates 17 million KWh units of green energy during the year, resulted in 80% of annual grid power being saved and enabled the automotive production facility to considerably reduce their carbon foot-print. QUALITY MANAGEMENT SYSTEMS: JKm automotivetm facilities are certified to the highest quality and safety standards specified by the automotive industry including ts 16949, ohsas 18000 and iso 14000 as well as to Ford Q1 quality standards. JKm automotive™ is also approved by various global automotive majors. Rs. in lacs 31.03.2010 31.03.2009 3,771.96 552.90 11,297.95 7,821.34 1,432.58 11,582.91
Dynamatic Aerospace®, India and UK
Financial Highlights Business Highlights segment sales profit Before interest & tax capital employed •
POLE POSITION : Dynamatic aerospace® is a pioneer & a recognized leader in the indian private sector for the development and manufacture of exacting airframe structures and precision aerospace components. largest infrastructure in the indian private sector. has facilities in india and europe. SUPPLIER OF CHOICE : customers like DRDo, aDe, hal, have rewarded Dynamatic aerospace ® with key projects and awards. GEOGRAPHICAL ADVANTAGE : hal, nal, isRo, DRDo, aDe are all headquartered in Bangalore. a rare and exemplary instance of public private partnership, Dynamatic® recently commenced the transfer of assembly work of air Frame structures for the sukhoi-30 mKi Fighter Bomber from its production facilities in Bangalore to a new facility provided by hindustan aeronautics limited at nasik. Deliveries of the first sets of air Frame structures for india’s largest defence programme, the sukhoi30 mKi Fighter Bomber, have commenced from the new Dynamatic® facility in nasik. hal and Dynamatic® partnership resulted in placing our engineers at their work place for development of caD data for new generation aircraft. PRESENCE IN BOTH COMMERCIAL AND DEFENCE SEGMENTS : Dynamatic aerospace® is hal’s largest developmental partner on the sukhoi 30 mKi programme and builds major air Frame structures for the Fighter Bomber including canard, Ventral Fin, horizontal stabilizer, slat, Vertical Fin and air Brake. other products include the Wing and Rear Fuselage of the laKshya, india's pilotless target aircraft & aileron and Flap for hJt-36, intermediate Jet trainer. Recently Dynamatic aerospace® secured a contract from Boeing to manufacture cabinets to house critical power and mission equipment for the p8i, a multi-mission maritime patrol aircraft customized for the indian navy. SPIRIT/AIRBUS Dynamatic® is working closely with spirit aerosystems, the world’s largest aerostructure manufacturer, as an industrial partner in the assembly of Flap track Beam project. Dynamatic® has signed a long term contract with spirit to build assemblies for the a320 and a321 series of aircraft. the green field project started in 2008 and First article inspection for the assemblies were completed for the a320 in may 2009. in 12 months aerospace division has been able to achieve single source status of producing over 30 sets of aircrafts per month. OFFSET POLICY: poised to ride the tidal wave of business from the government’s offset policy. agreements signed with Boeing, lockheed martin, northrop grumman for being their offset partners in india. GLOBAL SINGLE SOURCE : Work very closely with eaDs and spirit aerosystems to assemble Flap track Beams for the airbus a-320 Family of aircrafts. this is the first time that a functional aerostructure of a major commercial jet is being manufactured in india. Dynamatic technologies has successfully achieved single source supplier status for the airbus 320 Flap track Beams being supplied to spirit aerosystems (europe) limited. AVAILABILITY/DEVELOPMENT OF CRITICAL MANPOWER SKILLS : Dynamatic aerospace® team is headed by one of india’s cosmonauts, air cmde. (Retd.) Ravish malhotra as its co-Founder & chief mentor and comprises of senior personnel retired from hal like mr. g. parasurami Reddy, coo Dynamatic aerospace®, mr. sadananda shetty, Dgm production, mr. sukumaran nair, agm production & mr. n. D. Burman, Dgm Dynamatic aerospace® (spirit assembly). mr. Vishvanath chennamale, gm Quality assurance, Dynamatic aerospace® over 28 years experience with DgaQa and 35 years in aircraft industry and one of india’s two naDcap auditors for heat treatment. this senior team mentors a group of young engineers and skilled technicians, with an average age of 26 years. over the last few years, this strength has grown to over 380 persons and is poised to grow further. D–15
Dynamatic technologies limiteD - annual RepoRt 2009-2010
27 201. • EXPANSION : Dynamatic technologies has signed a memorandum of understanding with the government of Karnataka for the establishment of a state-of-the-art aerospace manufacturing Facility at the aerospace park to be set up by the Karnataka industrial area Development Board (KiaDB) adjacent to the international airport in Bangalore. First company in private sector to be certified by airbus for manufacture of aero structures. the facility is equipped with electric furnaces. oldland aerospce™ is a certified supplier to airbus uK. Dynametal®. which makes it highly eco-friendly. ge aviation systems. engaged in the manufacture of aerospace components and tooling. was one of the two memorandums signed in the aerospace segment by the government of Karnataka at the event. government of india. police and civilian agencies in developing security solutions relating to access control. uK.189. at the Karnataka government’s global investors meet 2010. counter terror mechanisms.870. armour.48 2. Design and development of raiser cutting machine for foundry applications. D–16 Dynamatic technologies limiteD . Design & Development mobile surveillance Vehicle.2010 31.094. iii. Bangalore Highlights • • • • • • • • a World class Design center capable of total product and system design.• QMS i. iv. Boeing. Visual-intelligence. and for the manufacture of two defense products . with advanced capabilities in structural.50 3. and training. with unique state-of-the-art aeronautical manufacturing facilities possessing complex 5 axis machining capabilities. Chennai Financial Highlights Business Highlights segment sales profit Before interest & tax capital employed • • • Dynametal® uses the latest metallurgical technologies to produce high quality non-Ferrous alloy and castings for industrial. Bomb-disposal. land systems and sub-systems. Design & Development of charging point for Reuben power. as well as the strategic locational advantage required for the forging of strong direct relationships with leading aerospace companies in europe and america. thermal and dynamic engineering for analysis.annual RepoRt 2009-2010 . Dynamatic Homeland SecurityTM (New division effective from 2010) highlights • • a division of Dynamatic technologies. specialized communications. gKn aerospace. Dynamatic has also received a license to manufacture aircraft parts and accessories. By partnering potential customers like india’s national Defence Forces. Powermetric® Design.496. for the industrial production of heavy Vehicles such as Battle tanks. secured three industrial defence production licences from the ministry of commerce & industry. infrastructure created and controlled in-house.03. a high end precision engineering company in Bristol.43 2. Design and development of core shooting machine for foundry applications. in lacs 31.Distribution mechanism & hydraulic coupling which are fitted on heavy armoured Vehicles. Design and development of internal gear pump based on gerotor principle is successfully completed. lockheed martin and agusta Westland. offers cutting edge security products and technologies which will enhance potential customers capabilities in countering modern day security threats.63 230. acquisition of oldland aerospace in october 2008. Dynamatic® enables agencies in the government and private sectors enhance their abilities to prepare and plan for emergencies as well as their response and recovery skills. command centers. homeland security. the mou which was signed on 3rd June 2010. Design of high Discharge water pumps for cummins. v. being a technology base to our customers. ii. magellan aerospace. automotive and aerospace applications at its modern foundry in chennai. Rs. DgaQa approval for in-house processes.30 • • Aluminium Castings.2009 4. design validation and optimization. as 9100 Rev B certified by ul naDcap approvals for in-house processes.03. Designs special machine tools.
through acquisitions. strategic land bank near coimbatore. 2011 looks positive. all key functions and divisions of your company are independently responsible to monitor risks associated within their respective areas of operations. F.821. your company has two patents pending in multiple jurisdictions awaiting registration. your company has deployed a comprehensive internal audit system. three from the European Union). recovery in the automotive sector. fast development of aerospace business gives us confidence that india’s gDp will continue to grow robustly in the future. terrorist attacks. as part of acquisition of the hydraulics Business unit of sauer-Danfoss.63 21. OUTLOOK the overall outlook for next accounting year april.723. Leadership position in Hydraulics business. Strong competence in Automotive business. for captive consumption at JKm automotivetm and Dynametal®. higher industrial production. your company has embarked on a path of inorganic growth. understanding opportunities for growth as well as the barriers in each segment. civil unrest and other acts of violence could adversely affect the financial markets and our business. INTELLECTUAL PROPERTY (IP) your company has defined an ip strategy to build an effective portfolio for future monetization. your company has constantly strive to achieve desired results. attributable to your company’s competitive strengths. your company acquired eleven registered patents for various hydraulic products.annual RepoRt 2009-2010 . your company’s reputation for developing innovative.43 Dynamatic technologies limiteD . economic slowdown in india.27 19. RISKS & CONCERNS.24 Amount (Rs. in the medium-term. the appreciating indian currency against all major currencies. to automotive & metallurgy businesses. strategically located.96 5. Early Bird Advantage in the Aerospace business. Presence in diverse. in lacs) 2009 19. E. hostilities. competent and qualified professionals.496. your company has identified various risks and procedures to mitigate the same. 2010 to march. synergistic business segments. sustained investments in infrastructure across india.Non-Conventional Energy Highlights • • • • • • • • • • generating 12 mW of power – approximately 18 million units annually. 80% reduction in monthly energy costs improving our cost competitiveness. namely: • • • • • • • C. which is commensurate with its scale of operations. Proven management team and skilled manpower with wide experience. having witnessed a strong organic growth in all the segments over the years.18 48. product liability. a slowdown in global economy. in addition. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE the sales revenues (gross) from each of the major business segments that the company is involved in are as follows : Segment (Gross Sales) 2010 Hydraulics & Precision Engineering Aluminium Casting Automotive Components Aerospace Wind farm Total D. un-interrupted supply of power. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY your company’s increasing exposure to global markets and customers also brings with it the inherent risks of a global company like Foreign currency risk.60 4. 48 Windmills on 440 acres of free-hold land. these risks are being mitigated through appropriate de-risking strategies.205. who are supported by teams of capable personnel. collaboration and risk mitigation. provides freedom from energy price inflation. 19.34 525. Well-developed.771. economic or/and political instability. change or delay in economic reforms. Warranty. eco-friendly environment. there are various external risk factors viz.425. strong Blue-Chip Customer base.004. scalable-Windmills can be added. cost-effective and high quality products continues to grow both in the Domestic and overseas markets. D–17 in spite of the above advantageous position. investors may be subject to potential losses arising out of exchange rate risk on the indian rupee and risks associated with the conversion of indian rupee proceeds into foreign currency. gaint leap towards achievement of Zero carbon footprint by manufacturing facilities in tamil nadu. uK. Strong design capability and scalability.84 3. the total number of granted patents is four (One International Patent.45 3. thereby opening up bigger opportunities in the global markets. less than an hour’s drive from coimbatore airport. the company is expected to maintain a healthy growth.425.49 7. and so on.357.79 Percentage (%) 2010 2009 39 7 38 16 1 100 40 8 44 8 0 100 50.094. the strategic Business units of your company are headed by highly experienced chief operating officers.
your company conducts regular town hall meetings at all its units in india and uK. the achievements made by the Dynamatic technologies limiteD . Data pertaining to sociological and cultural issues that impede productivity and quality of work are captured and studied. where they can actively participate in improvement programs and take pride in the implementation of their suggestions. the training and development programs conducted by your company aim at aligning individual aspirations and capabilities with the organisation’s goals. employees are regularly rewarded for their ideas and efforts. a board level committee meets at regular intervals at various facilities in india and abroad to review hR processes. Definition of career paths for employees.annual RepoRt 2009-2010 . while taking up the challenge of increasing the production. your company believes in retaining talent. these efforts have ensured a peaceful industrial environment. Development of leaders within the organization. a number of initiatives are focused on developing people into vibrant. integrity and availability of critical data within the organization. increased employment of Women. the total number of employees including subsidiaries as at 31st march. appraisal capsule. your company has appropriate mechanisms in place to record data on individuals’ contributions. the attrition rate is 1% in india and 0% in uK. experiences. knowledge and skill sets. both at the manufacturing locations and at branches in india. have helped your company raising to these hights. harmonizing quality systems across the group. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS With increase in size and growth of the company. who have put in an average of 20-25 years of experience in your company and is the back bone of operational units. creative ideas. the system has been designed to ensure confidentiality. which highlight areas of concern and suggest improvements in systems and procedures. they have been co-operating with the management during tough times of recession. your company continued to invest in human resources development. your company encourages all its employees to participate in the employee participation program (epp). conduct regular and detailed internal audits. Where possible.who are external to the company business. the internal auditors submit audit reports. new cutting tools have been introduced to hasten the manufacturing process. this instills confidence in customers as the data is readily available and can be viewed instantly without being tampered with in any way. a detailed report on the audit committee is forming part of corporate governance report. new tools are used to upgrade existing systems periodically. mentorship programming. G. during the good times. thereby ensuring that the employees remain motivated and committed to the company’s vision and long term growth. this workforce has been participating in many social and cultural activities keeping the enthusiasm alive. the leadership and human Resource Development committee. the cycle time has been reduced based on time studies conducted on the shop floor. this enables them to integrate and share their best practices. continuous efforts are made to ensure that all employees are well trained and motivated. empowering employees at all levels as well as structured reward and recognition mechanisms. has contributed significantly to its success. the main strength of Dynamatic® is its competent workforce. creating a friendly work environment. motivational activities. management structure. the audit committee periodically reviews the audit plans. which facilitate interactions between employees at all levels and the senior management including the executive Directors of the company. 2010 was 2117. this is a result of continuously investing in learning and development programs for employees. group efficiency and individual efficiency. skill levels. committed effective leaders of tomorrow through the leadership and human Resource Development committee. up-gradation of the human Resource Department. your company has evolved a stringent information security management system to protect and safeguard key information and data from unauthorized access across its units in india and abroad. the Board level audit committee of the company meets at every quarter to review the internal audit Reports as well as management’s feed back on internal audit Reports and suggests improvements in the control systems from time to time. management reports regularly. their D–18 involvement with company’s objectives. the quality of human resources available within your company and the manner in which it has been deployed. your company continues its increased operational productivity by reducing set-up time and adding machines in the critical path. this provides huge stability and accumulated skills in the operational area. people and leadership development is a top priority of the company. the diversified human talent of your company comprises of a work force belonging to different nationalities spread across the globe. Review of hR manual and to recommend and help implement best industry practices. which is supportive of your company’s long term growth strategies. these meetings have ensured a ‘two-way’ vertical flow of communication within the organization and serves as a effective feedback mechanism. DATA MANAGEMENT SYSTEM (Dms) introduced at the operational level enables the effective capture of data in electronic form and makes it available to interested parties. audit observations of both internal and external audits and adequacy of internal controls. to fit the growing size and needs of the company.
emphasis on a long term culture change across facilities improving effectiveness towards responsibility/ ownership. safe and secular work environment. • • • Dynamatic technologies limiteD . which instills a sense of ownership in the employees. soft-skill development programs (such as personal productivity enhancement. proactive approach to role in all areas. project management. your company has brought in specialists to train its employees in areas such as special processes. take advantage of opportunities such as shared services and further cost savings. apart from this. your company continues to look at enhancing the quality of life of all its employees and to further this objective during the current year. has geared itself to implement organizational health and safety training initiatives along with a 5s training program. business etiquette etc) especially to new recruits. Definition of clear career paths. exposure to your company’s global business streams. actively looking for smarter ways of working (lean). Better work / life balance. your company continues to impart on the job training opportunities to all its employees. effective teaming. growing synergies with units between india and europe. behavioral and relationship based programs.annual RepoRt 2009-2010 D–19 . Human Resource Practices followed across Units Highlights • • • • • • • • • special training through technical. created a team atmosphere.employees are presented to the various committees of the Board. interactive Discussion of Women with leadership team. creation of congenial. participative management in the company’s business processes. consulting through employee Forum group.
sustaining and nurturing core values in all facets of its operations through growth and innovation. Key accounting policies. government and to society at large. size. to build leadership. with an objective to improve standards of corporate governance in india. Some of the initiatives taken by the Company towards strengthening its Corporate Governance system and practices include: • the company has constituted the leadership. ensuring timely disclosures. this D–20 Dynamatic technologies limiteD . transparent accounting policies. corporate governance involves value systems of a company including moral. independent Board to help preserve shareholders’ trust while maximizing longterm shareholders’ value and respecting minority rights. Corporate Governance monitoring and review process at Dynamatic® Dynamatic® continuously reviews its policies and practices of corporate governance with a clear goal of not merely complying with statutory requirements in letter and spirit but also to constantly endeavor to implement the best international practices of corporate governance in the overall interest of all stakeholders. to review polices from time to time based on the size and need of the company and recommend the same to the Board for adoption. • approach has transformed the company’s culture to one that is relentlessly focused on the speedy translation of technological discoveries into innovative products. code of conduct for seBi (substantial acquisition of take over) Regulations. non executive and independent Directors to maintain the independence of the Board. Best practices founded upon core values of transparency. Dynamatic® long standing commitment to the high standards of corporate governance and ethical business practices is a fundamental shared value of its Board of Directors. guiding principles of corporate governance are becoming an integral part of the business.annual RepoRt 2009-2010 . code of business conduct and ethics for Directors and management personnel. in line with the needs of dynamic market. which are recommendatory in nature. management and employees. the Board periodically reviews the need for change in composition or its size. We believe that corporate governance is vital in enhancing and retaining stakeholders’ trust. the company adheres to the secretarial standards issued by the institute of company secretaries of india. professionalism. Fulfilling its obligations to other stakeholders such as customers. the Board consists of eleven (11) members. and a strong. it lays down various policies viz. the securities exchange Board of india (seBi). etc. issued/issues circular/s directing all stock exchanges to amend clause 49 of the listing agreement from time to time with corporate governance norms which increases the responsibility of listed companies to bring in transparency and accountability and report the same in the annual Report. employees. of whom seven (7) are non-executive Directors and four (4) are executive Directors. these guidelines are constantly monitored and reviewed by the committee from time to time. BOARD COMPOSITION your company’s policy is to have an appropriate mix of executive. code of conduct for prohibition of insider trading. maximizing national wealth and adhering to transparent actions in business. suppliers. ethical and legal value frame work under which business decisions are taken. varied expertise and commitment to discharge its responsibilities and duties. the company has appointed an independent practicing company secretary to conduct secretarial audit. one of the executive Director is a promoter Director. the report containing the details of governance systems and process at Dynamatic technologies is as under. interaction with investors/shareholders/ analysts through analysts meet. conference calls on quarterly results. financiers. the forward-looking approach of Dynamatic® has always helped it in achieving the desired results. Dynamatic’s philosophy on Corporate Governance envisages enhancing overall shareholder’s value on a sustained basis by way of: • constitution of a highly independent Board of appropriate composition. the corporate governance guidelines of the company sets out the policies for effective functioning of the Board and its committees. code of ethics for employees. our Board exercises its fiduciary responsibility in a broad sense in every facet of its operations. • • • • • • • A. empowerment. equity and accountability. your company’s commitment towards corporate governance started well before the law mandated such practices.CORPORATE GOVERNANCE REPORT in accordance with clause 49 of the listing agreement with the stock exchanges in india and some of the best practices followed internationally on corporate governance. upholding. • this philosophy of Dynamatic® has helped to transform itself into a higher plane of leadership. hRD & Remuneration committee to oversee the corporate governance practices. the annual audit Report of corporate governance is placed before the board..
he has held various senior positions and was the chairman and managing Director of Bharat earth movers limited (Beml) from 1995 till his retirement in December 2002. aprameyan is 67 years old and has been a Director of the company since 2003. he is also a Director in tehri hydro Development corporation limited. Dr. mr. K. as required under clause 49 of the listing agreement. aged 79 years was formerly.Independent Directors mr. the Dy.Composition of the Board and Directorships/Membership held by Directors Name of the Director Non-Executive & Independent Directors mr. the disclosure refers to memberships/chairmanship of Audit Committee and Investor Grievance Committee of public companies (listed and unlisted). none of the Directors are nominees of any bank / financial institution during the year 2009-10. would interfere with the exercise of independent judgment in carrying out the responsibilities of a Director within the meaning of clause 49 of the listing agreement with stock exchanges. Bangalore. V. confederation of indian industries (cii). managing Director. s. Krishnaswamy (Retd. ‘Leadership.annual RepoRt 2009-2010 . of –aiei (now called cii). K. Vijai Kapur. Chairman mr. B. at present a member of selection committees of indian institute of technology (iit). udayant malhoutra Age 79 67 67 59 39 67 57 52 61 48 44 Indian companies (Public Companies)* 1 2 1 1 1 2 1 1 1 2 4 Committee Membership** 1 2 2 1 1 1 1 1 Chairman of the Committee *** 1 1 2 - Notes: none of the Directors are relatives within the provisions of section 2(41) and section 6 read with schedule ia of the companies act. Rajagopal – executive Director & chief technology officer. including expertise and experience is given below: 1. he is the chairman of the audit committee and also a member of leadership. udayant malhoutra – chief executive officer & managing Director. France. Responsibilities of the Chairman. malavika Jayaram mr. Vijai Kapur. mr. he was a former member of the governing council of institute of Robotics and intelligence systems (iRis) and national council. Vijai Kapur Dr. (a join venture of D–21 Dynamatic technologies limiteD . he is responsible for all Board matters of the company. ‘Investor Grievance Committee’. Raymond Keith lawton Executive Directors mr. Dr. aprameyan was instrumental in Beml emerging as a major player in diverse areas ranging from earth moving equipment to railways to defence. seshnath mr. Aprameyan. and has obtained his Doctorate in the field of internal combustion engines from paris university. Rajagopal mr. n. the executive Directors and senior management make periodic presentations to the Board on the company performance and business growth in the units. Dr. govindarajan Non-Executive & Non. seshnath – executive Director & chief marketing officer. n. he has been the Director of the company since 1992. HRD & Remuneration Committee’ and ‘Technical Development Committee’ of the company. sunder Executive & Promoter Director mr. our executive Directors are mr. 1956. he possesses rich business and managerial experience. the executive Directors of the subsidiary companies incorporated either in india or abroad will be part of the Board as a non-executive Director of the company. as the chairman of the Board. Rishikesh. sunder –president & group chief Financial officer. Kanpur. mr. Directors’ Profile Brief profile of all the Directors. govind mirchandani ms. * ** Independent Directors independent Director means a person other than an officer or employee of the company or its subsidiaries or any other individual having a material pecuniary relationship or transactions with the company which. V. there are clear demarcation of responsibilities and authority among these officials. Mr. Executive Directors our present policy is to have a non-executive chairman – Vijai Kapur. *** the chairmanship includes ‘Audit Committee’. Director Dr. gKW limited and past president 2. includes Directorship in Dynamatic technologies limited. K. aprameyan is a post graduate in automobile engineering from the indian institute of science (iisc). B. robotics and automation. in the opinion of our Board of Directors. he has served as Vice president of the Fluid power society of india and the chairman of indian earth moving and construction industries association (iecial). aprameyan air chief marshal s. hRD & Remuneration committee and nomination committee of the company. K.) mr.
haryana. stephens Brothers etc. outsourcing transactions. D–22 5. mr. 4. Mr. arrow.. gurgaon. malavika has also worked in london. Reid & taylor. development and evaluation of indigenous combat aircraft. audit committee and nomination committee of the company. aged 67 has had an outstanding career in state Bank of india which culminated in him becoming the managing Director & group executive (national Banking group). aged 57 years old.. ceo & Director of arvind Brands limited. Krishnaswamy (Retd. added to this he has also served as Banking ombudsman. and specialized in the fields of computer law. Director mr. ge capital Business process management services pvt. govind has won several images awards and is a recipient of indira super achiever award as well as the coveted Bharat Vikas award for outstanding contribution to the field of management. Malavika Jayaram. govind mirchandani.). he is a member of leadership. lawton was the chairman and managing Director of sauer Danfoss ltd. armament and eW systems. air chief marshal s. hRD & Remuneration and shareholders’ committee and also a member of technical Development committee. intellectual property. hRD and Remuneration committee of the company. resigned from its Board effective 13th may. ltd. Brands and Retail management. ms. planning engineer in 1973. aged 39. 3. malavika has been a Director of the company since 2008.hong Kong. malavika Jayaram. indo – american chamber of commerce. at present. aged 67 years. he was awarded management Fellowship in 1981. govindarajan. Belmonte. mergers and acquisitions and general commercial contracts in the manufacturing. he held the appointment of chairman of the chiefs’ of staff committee till retirement. 2008. chief executive officer .) has been a Director of the company since 2005. Raymond Keith Lawton.). Bangalore. he has Dynamatic technologies limiteD . is a lawyer and has completed her integrated Ba-llB degree in 1994 from the national law school of india. having specialized in the areas of leadership. Krishnaswamy (Retd. Ms. he is the chairman of the leadership. Building high performance organizations. sBi life insurance company ltd. international Business transactions and eu law.. graduated in higher national Diploma in both mechanical and production engineering in 1973. he is a member of audit committee and nomination committee of the company. malavika is a partner in Jayaram & Jayaram since august 2006 and has experience in various fields of law including technology and e-commerce contracts. 6. chicago. excalibur. ltd. Krishnaswamy (Retd. canada. Director ms.. sBi internation (mauritius) ltd. general manager in shalimar paints limited.. the company acquired the hydraulic Business unit of sauer Danfoss ltd. president & ceo of personality limited. ms. he was nominated on the Board of sBi cards and payment services pvt.p. Director air chief marshal s. has completed his Degree in Bachelor of technology from indian institute of technology. Govindarajan. S. Mr. govind mirchandani has been a Director of the company since 2008. Air Chief Marshal S. he has the rare distinction of having served the largest Bank in india various diverse capacities as its chief Financial officer. uK with global law firm. she pursued her master of laws (llm) from northwestern university. Director mr. allen and overy and with citigroup as a Vice president in the technology legal team and also as a senior Business analyst within the operations function of the investment Bank. Wrangler. hRD & Remuneration and audit committee’s of the company. he had a very distinguished career in the indian air Force and has held several senior positions. swindon since 2004.) with effect from 26th June.government of india and government of u. national stock exchange of inida. aprameyan is the chairman of the technical Development committee and a member of leadership. state Bank of india. he was an independent Director on the Board of Klg systel ltd.. he received various medals for his outstanding contribution including agni award for excellence in self Reliance from the prime minister for having made outstanding technical and operational contributions to the design. president of the Denim division of arvind mills limited. lee. uK at swindon. mumbai and his pgDm from the indian institute of management. 7. joined the indian air Force as an under graduate. Reserve Bank of india. Mr. he has also obtained a post graduate degree in military science. Dr. he has worked as the executive Director & ceo of Reid and taylor. govind has been the past chairman of ypo Bangalore chapter and the national Vice president.. Kolkata. 2010. joint ventures. aerospace and other technology intensive sectors. mr. During the year 2006-07. and the Business head of the interlinings division of madura coats limited. aged 59. mr. Raymond lawton. Director of Brand house Retails limited. chief treasury officer and earlier. During his service. she is a member of technology Development committee of the company. intellectual property Rights.annual RepoRt 2009-2010 . she is also qualified as a uK solicitor. he started his career during 1969 as a mechanical engineering apprentice in plessey hydraulics limited and became a Jr. Director mr. Govind Mirchandani. he had a very distinguished career and also has held positions of seniority in various industries for over three decades. mr. ltd. newport. culminating in his appointment as the chief of the air staff of the iaF from 2002 upto his retirement on 31st December 2004. he was also responsible for launching arvind Denim in india in 1987 and also several other international and domestic brands in india Viz.
seshnath aged 52 years. metals. Executive Director & Chief Marketing Officer mr. technology management and achieving the annual Business plan of the company and its subsidiaries. mr. Rajagopal. comprehensive experience in engineering. as chief executive officer & managing Director. his managerial abilities has enabled your company to considerably develop its network of branch offices and distributors.corporate planning & company secretary of the company. Seshnath. Mr. he has served as ceo & executive Director of JKm Dae Rim automotive limited (formerly subsidiary of Dynamatic technologies limited) from 2000 to 2006. Raymond lawton has been instrumental in transforming the facility in swindon from a conventional manufacturing plant in to a modern high quality manufacturing company by introducing modern manufacturing methods and techniques. Mr. B. D–23 mr. Technology Officer Executive Director & Chief 10. santhanam. design and development etc. aged 44. sub-group on minerals. as executive Director and chief technology officer. 9. udayant malhoutra. 11. V. During his tenure the company grew manifold in terms of sales. is a mechanical engineer with an mBa from the indian institute of management. President & Group Officer Chief Financial mr. Board of governors. Brand equity. he was a former Director of JKm Daerim automotive limited (currently a division of Dynamatic technologies limited) and also formerly eD & chief executive officer. materials. sunder as president & gr. Fluid power society of india. 8. (currently a division of Dynamatic technologies limited) prior to his appointment at Dynamatic technologies as eD & chief marketing officer (cmo). he is a member of shareholder’s committee of the company. is responsible for overall corporate strategy. Dynamatic limited. he was president. Chief Executive Officer & Managing Director mr. he started work at Dynamatic technologies limited in 1986 and joined the Board of Directors in 1989 as executive Director. he has served the company in various capacities since 1980 and has competently managed various operative functions of the company such as production. co-chairman. iit Kanpur (1997-2001). uK. Udayant Malhoutra.100% subsidiary of the company. During his career in sauer Danfoss he was responsible for the setting up and installation of two greenfield manufacturing plants. Raymond lawton became the executive chairman of sauer Danfoss. is a mechanical engineer with over three decades of rich. heads the corporate functioning of finance and works along with mr. prior to his appointment as ceo & executive Director of JKm Dae Rim automotive. (2004-06 2006-08). is a senior member of the institute of company secretaries of india. is responsible for new product development and the management of the company’s technical capabilities at strategic level. Dynamatic® hydraulics & Dynametal®. he is at present the chairman of cii national committee on Design (2010-2011) and member. Bangalore. cii national council (2001-2003) and chairman. both of which are running successfully.annual RepoRt 2009-2010 . n. pneumatic and hydraulic industries. udayant malhoutra. as executive Director & chief marketing officer. mr. sunder. aged 61 years. ceo & managing Director in planning & driving corporate strategy. member. he was the general manager. he is also responsible for leading the leadership team of Dynamatic® in transforming the company into a world class design and manufacturing organization. B. is responsible for Business Development and associated product Development at a strategic level. Mr. maintenance of Key Relationships. cFo. he is currently executive Director & chief operating officer. he was on the international Board of the World presidents’ organization and the young presidents’ organization (2005-2008). he has two decades of marketing experience in the automotive. he has been a Director of your company since 2002. he was the former executive Director & chief operating officer of JKm Dae Rim automotive limited. aged 48 years. ministry of Defence. prior to taking charge as executive Director of JKm Dae Rim automotive. mr. is an industrialist and the promoter of your company. council of scientific industrial Research (csiR) / Department of scientific industrial Research (DsiR). Rajagopal. V. swindon in 2004. Mr. he is currently designated chief executive officer & managing Director of the company. government of india (1998-99). he is a member of technical Development committee of the company. Sunder. Rajagopal. he will have oversight of relationship management with strategic customers of all the Business units of the group. materials manufacturing sector for formulation of 10th five year plan. udayant malhoutra. mr. N.held various positions in his career. cii national committee on technology (2002-2003). (2001). and chairman. mr. which spans over three decades and progressed steadily to become the plant manager of sauer Danfoss in 2003. he is a member of audit committee and technology Development committee of the company. K. member. having worked in different parts of india in senior management positions. profitability and acquisition of new customers. Dynamatic technologies limiteD . cii national council (2010-2011). Working group for formulation of 10th five year plan (2001). government of india. he served the company for eleven years in various senior management positions. task force on DRDo – industry partnership along with Dr. he was formerly a member. which has in turn resulted in the expansion of the company’s operations in india and abroad. seshnath.
K. sunder mr.annual RepoRt 2009-2010 .072 3. quality and human resources. Vijai Kapur Dr. govind mirchandani ms. independent Directors guide the Board in achieving the vision and mission of the company. 2009. only sitting fees been paid to the non executive Directors including chairman of the company for attending committee / sub-committee meetings of the company. V. n. 303.981 244.511 Perquisites Rs.509. Board membership criteria the chairman works with the entire Board to determine the appropriate characteristics.245.267 264. B. only sitting fees is paid to non-executive Directors for attending the Board /committee meetings and the amount paid is within the limits specified by the central government from time to time. the committee reviews the performance of executive Directors annually and approves the compensation within the parameters set by the shareholders at the shareholder’s meetings. the Board may approve resolutions by circulation as permitted by law.167 2. determines and recommends to the Board the compensation payable to the Directors. 29th october. hRD and Remuneration committee.389 Rs. 30th June. who are traveling. During the year seven (7) Board meetings were held on 2nd may.000 135.429.434 2.he is also a member of technical Development committee. 2009. the process of screening and selection of new Directors is undertaken by the nomination committee. finance. 10th July. malavika Jayaram Executive Directors mr. Selection of New Directors the Board is responsible for the selection of new Directors through its ‘Nomination Committee’. Rajagopal mr. this committee in turn makes recommendation to the Board for the induction of any new Director.091 3. Board compensation policy Remuneration committee. Video / tele-conference facilities are also used to enable Directors. particularly with regard to matters requiring discussion / approval / decision at Board / committee meetings. 25th august. l D–24 Dynamatic technologies limiteD . all such matters are communicated to the company secretary well in advance so that the appropriate background notes are circulated to the Board members for meaningful discussion. shareholders’ committee and nomination committee of the company.000 270. of shares Non-Executive & Independent Directors mr. aprameyan air chief marshal s.900 Note none of the non executive Directors have any material financial interest in the company. all divisions / departments of the company are expected to plan their requirements well in advance. apart from the four pre-scheduled Board meetings. 2009. 2009. 2010 Remuneration Name of the Director Total Sitting fees Salary & allowance Rs.811. 30th July.114. Compensation paid to the Directors for the year ended 31st March.) mr. executive Directors are required to posses operational expertise in their areas of performance.000 270.382. 77 278 9.36.000 120.000 285. which is a part of leadership. Where circumstances so require. BOARD MEETINGS Scheduling and selection of Agenda items for Board / Committee meetings l your company holds a minimum of four Board meetings each year.000 - 120. 2009. govindarajan mr. 2009 and 30th January.000 180. skills and experience required for the Board as a whole as well as its individual members.000 180. s. B.000 135.138. to participate in the meetings.707 No. notice of the meeting is sent to the Directors with an advance notice of at least 15 days. udayant malhoutra 120. additional Board meetings may be convened at any time in case of exigencies. Raymond Keith lawton mr.334 183. technology.000 3. each independent Director posses specialized skills in the areas of their profession including strategy. 2010. seshnath Executive & Promoter Director mr. Krishnaswamy (Retd.000 120. which are pre-scheduled at the end of each quarter. 2.000 285.091 2.245. all Board level compensation payable is approved by the requisite authorities as may be required under indian statute.000 120.425 2. Remuneration of executive Directors consists of fixed components and performance incentives.000 120.
2009 except mr. C. Vijai Kapur and ms. of meetings Participation Via Tele Held Attended conference 7 7 7 7 7 7 7 7 7 7 7 3 7 5 4 6 6 5 7 7 7 6 1 l the executive Directors of the company attend the respective committee meetings as members / invitees. hRD & Remuneration committee. udayant malhoutra. acquisition of companies or collaborations agreements. sunder. president & group cFo of the company as elsewhere reported in this report. govindarajan ms. Recording Minutes of the Proceedings of Board/ Committee meetings. s. the chief executive officer & managing Director of the company and the company secretary in consultation with chairman of the Board / committee and other executive Directors finalize the agenda papers for the Board / committee meetings. udayant malhoutra No. human Resource Development. the company has ensured that all key events concerning the governance of the company’s affairs are brought before the Board well in advance. V. materially important litigations. the details of the code of conduct are posted on the web site of the company (www. members of the senior management team and employees of its subsidiaries. show cause. the Board also notes and reviews the functioning of its committees regularly. Compliance with Laws the company secretary is the compliance officer of the company and acts as an effective link between the Board and senior management. in addition. thereafter. technical Development committee and nomination committee. malavika Jayaram. action taken reports are placed at every Board / committee meeting which explains the action taken on every past decision of the Board / committee. Foreign exchange exposure. chief executive officer & managing Director and mr. non compliance of regulatory.Board meetings and the attendance of Directors Name of the Director mr. capital budgets and updates. the Board of Directors. company’s risk management policies. minutes of the meetings of the Board and committees. govind mirchandani mr. issues involving public or product liability claims. the information regularly supplied to the Board includes annual operation plans and budgets. employees / persons who can provide further insights into the items being discussed are invited. Availability of information to Board members the Board has unencumbered access to any relevant information of the company. l l Note all the directors attended the annual general meeting held on 25th august. seshnath mr. material effluent or pollution problems. aprameyan air chief marshal s. Rajagopal mr. the declaration is signed by mr. K. Fatal or serious accidents. n. Determining Directors who need to retire by rotation and recommending fresh appointments of Directors / auditors.com). BOARD COMMITTEES currently. in accordance with clause 49 of the listing agreement. Vijai Kapur Dr. the code outlines the company’s values.annual RepoRt 2009-2010 . the functional heads certify to Board about their compliance with legislations that concern them and these affirmations are noted and taken on record by the Board. shareholders’ committee. intellectual property related matters. the company secretary acts as secretary to all the committees constituted by the Board. D–25 Dynamatic technologies limiteD .dynamatics. sunder mr. the functional heads can attend Board / committee meetings as and when required. general notice of interest. Raymond Keith lawton mr. Draft minutes are circulated to the chairman and other members of the Board / committee for their comments. members of the senior management and employees of the subsidiaries are expected to ensure adherence to the set of moral values and policies enhanced in the code. Quarterly results of our operating divisions or business segments.) mr. both in letter and in spirit. investments. B. subsidiaries. at Board meetings. the company secretary records the minutes of the proceedings of Board and committee meetings. it is finalized in consultation with the chairman. this mechanism ensures that board decisions are subject to effective post meeting follow-up and monitoring. the Board has five (5) committees: audit committee. Code of Business Conduct & Ethics the company has framed and adopted a detailed written Code of Business Conduct & Ethics for its Directors. Details of joint ventures. Demand. statutory or listing requirements. shareholder services and long term strategic plans of the company and principal issues that the company expects to face in the future. Post Meeting Follow-up Mechanism your company has an effective follow-up mechanism to ensure that decisions taken by the Board / committee are implemented in a time bound manner. malavika Jayaram mr. prosecution and penalty notices. V. Krishnaswamy (Retd. principles and guidelines on a variety of subjects. the minutes of the proceedings of the meetings are entered in the minutes book within 30 days of the conclusion of the meeting. leadership. the Board is provided with the information as specified in annexure 1a of clause 49 of the listing agreement with the stock exchanges. authentication of annual accounts and approving Directors‘ Report. Recommending dividend keeping in view the company’s profitability and the requirement of funds for the future growth of the company.
l l Terms of Reference powers of the audit committee include: l l investigate any activity within its terms of reference. reporting structure. chairman Dr. Dynamatic limited.Procedure at Committee Meetings the company’s guidelines relating to Board meetings are applicable to committee meetings as far as may be practicable. all the members of the committee are independent except mr. coverage and frequency of internal audits. all the members of the audit committee are financially literate. 1956 and clause 49 of the listing agreement. Discussion with internal auditors on any significant findings and follow-up thereon. Reviewing with the management. shareholders (in case of non-payment of declared Dividends) and creditors. the quarterly financial statements before submission to the Board for approval. Vijai Kapur. Raymond Keith lawton. an independent Director. the annual financial statements before submission to the Board for approval. having rich and vast experience having been industrialists or technical experts with exposure to finance. re-appointment and if required. Reviewing with the management. the appointment. minutes of the proceedings of the committee meetings are placed before the Board meetings for perusal and records. l Reviewing the company’s financial and risk management policy.) mr. staffing and seniority of the official heading the department. the Quorum for the meetings is either two members or one third of the members of the committee. 1. aprameyan air chief marshal s. Audit Committee the Board level audit committee has been constituted at its Board meeting held on 21st July. if any. Vijai Kapur. the statutory auditors commences about the of audit as well as postto ascertain any area of l l l l l l l l l to oversee the quality and integrity of the accounting. which ever is higher. executive Director of the subsidiary. govindarajan Dr. Recommending to the Board. if any. l The role of Audit Committee includes: l oversight of the company’s financial reporting process and the disclosure of its financial information to ensure that the financial statements are correct. Reviewing with the management. Krishnaswamy (Retd. approval of payment to statutory auditors for any other services rendered to the company. 2001. Raymond Keith lawton mr. Reviewing the financial statements. l l D–26 Dynamatic technologies limiteD . auditing and reporting practices of the company and its compliances with the legal and regulatory requirements. independence and performance of internal auditors and the company’s risk management policy. uK. Reviewing the findings of any internal investigations by the internal auditors into matters where there is a suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board. the composition of the audit committee meets the requirements of section 292a of the companies act. Discussion with before the audit nature and scope audit discussions concern. Composition the audit committee of the Board comprises of the following five (5) non executive Directors: mr. seek information from any employee. to look into the reasons for substantial defaults in the payment to the depositors. to oversee the audits of the company’s financial statements. appointment. debenture holders.annual RepoRt 2009-2010 . s. performance of statutory and internal auditors. including the structure of the internal audit department. carrying out any other function as is mentioned in terms of reference of the audit committee. if necessary. aprameyan. and adequacy of internal control systems of the company. sufficient and credible. is the alternate chairman of the committee to mr. the Board reviews the scope of the committee and its terms of reference from time to time. K. with the following stated powers and terms of reference. Reviewing the adequacy of internal audit Function. particularly the investments made by the subsidiary company/ies. accounting and financial management. K. secure attendance of outsiders with relevant expertise. the replacement or removal of statutory auditor and fixation of audit fee. Objective the audit committee assists the Board in its responsibility: l l obtain outside legal or other professional advice.
K. No. Dr. chairman mr. Krishnaswamy (Retd. V. the statutory auditors and internal auditor actively participate and recommend the required policies and changes from time to time. l to discharge the Board’s responsibilities relating to the compensation of the company’s executive Directors and senior management. aprameyan. the Remuneration committee was renamed as the “HRD & Remuneration Committee” with effect from 22nd July. 2.) mr. aprameyan mr. udayant malhoutra Compliance officer ms.annual RepoRt 2009-2010 . K. Krishnaswamy (Retd. K. Further. Leadership. disclosure practices. aprameyan mr. of meetings Held 4 4 4 4 Attended 4 3 4 3 the executive Directors of the company / subsidiary company/ies. (4) Shareholders’ Committee / Investor Grievance Committee the Board level shareholders’ committee comprises of three (3) Directors. chairman mr. 30th June 2009. V. HRD and Remuneration Committee your company had constituted a “Remuneration committee” at its Board meeting held on 7th July. the committee was renamed as the “Leadership. sunder mr. make appropriate financial disclosures and implement the terms of reference as mandated by the Board and the terms of the listing agreement. 29th october 2009 & 30th January 2010. 30th July 2009.). internal audit reports. 2006. representatives of statutory auditors and Financial controller attend as invitee and participate in the committee meeting/s to review and discuss financial performance. retaining and training high quality manpower. Attendance at the Leadership. 29th october 2009 & 31st January 2010. feedback reports of management and financial policies of the company so that the committee is able to oversee the financial reporting process. govind mirchandani Dr. udayant malhoutra Attendance at the Committee Meetings held during the year 2009-10 the committee meetings were held on 30th July 2009.) mr. K. sunder mr. gm compliance & company secretary is the compliance officer for complying with the requirements of seBi Regulations and the listing agreement with the stock exchanges in india. aprameyan air chief marshal s. HRD and Remuneration Committee Meetings held during the year 2009-10. 2009 to answer the shareholders’ queries. Vijai Kapur Dr. Independent Directors: air chief marshal s. they are: air chief marshal s. 2008. an independent Director. is the alternate chairman to air chief marshal s. govindarajan No. Raymond Keith lawton mr. K. s. Krishnaswamy (Retd. Name of the Director air chief marshal s. Vijai Kapur Dr. alternative chairman of the audit committee. internal auditors. internal control systems. of Meetings Held 4 4 4 4 4 Attended 2 4 4 3 3 Purpose The purpose of the said Committee is: l to build leadership within the group l to guide management in building a strong. 2002. was present at the annual general meeting held on 25th august. Krishnaswamy (Retd). l to assume the overall responsibility for approving and evaluating the compensation plans. Krishnaswamy (Retd. Name of the director air chief marshal s. govind mirchandani 3.). the committee meetings were held on 2nd may 2009.) mr. 29th october 2009 & 30th January 2010. D–27 No. The Committee comprises of four Non-Executive.Attendance at Audit Committee Meetings Held During the Year 2009-10 audit committee meetings were held on 30th June 2009. world-class and competitive business model to sustain business growth. HRD & Remuneration Committee” with effect from 11th February. g. aprameyan. haritha. considering the need for developing leadership within the group and the significance of absorbing. of Meetings Held 3 3 3 Attended 3 3 2 Dynamatic technologies limiteD . l to review the existing hR policies and recommend necessary changes from time to time. Name of the Director mr. Krishnaswamy (Retd. policies and programs for executive Directors and senior management. Vijai Kapur Dr.
Dynamatic technologies limiteD . Key objectives of technology committee are as follows: l letter from seBi/Roc /stock exchanges there were no outstanding complaints as on 31st march. Rajagopal ms. request for annual reports. duplicate share certificates. Share Transfer Committee – Sub Committee of Shareholders’ Committee a share transfer committee has been constituted by the Board to ensure timely and efficient servicing of requests for share transfers and transmissions. the shareholders have been intimated about the requirements. the company has approved all requests which had fulfilled the legal requirements. 2010. a quarterly report of the same is submitted to the committee for improving the investor relations and services provided to them. in addition.145 equity shares) for transmissions and deletion of name and 78 requests (592. across the company as a part of its Dna. haritha chairman member member the committee has the responsibility of approving cases which comply with the required provisions of the applicable laws of india relating to share transfers. every quarter. share transactions in electronic form can be effected in a much simpler and faster manner. n. the committee also reviews and update the skills and competence required. transfer of shares etc. have been received from the shareholders by the Registrars of the company or at the Registered office of the company and these have been addressed to the satisfaction of the shareholders..028 equity shares) for transfers and 9 requests (1. revalidation of dividend warrants. Technical Development Committee (a voluntary initiative from the Company) a Board level technical Development committee was constituted by the Board in 2003 and has been driven by the technocrats of the nation. the status on complaints and share transfers is reported to the Board. Karisma. thereby ensuring that your company provides its investors the best possible services. shareholders are periodically requested to utilize the demat facility. after confirmation of sale / purchase transaction from the broker. the majority of its products are proprietary in nature. transmissions. transmission of shares and other related matters. maximization to serve the new market conditions and safety and reliability of assets. engineers to meet current and future business needs. consolidations. 4. value. g. Karvy is providing high standards of shareholder servicing through their services and updated technological support. Working as a Design developmental partner with customers in future technologies across the units. these communications and the replies furnished are made available to the company through Karvy’s website Karvy. Dynamatic® has registered patents and trade marks for its various products and its processes in india and across the globe from time to time. D–28 Development l l l l l l l Develop fit for purpose and moving towards futuristic technologies. transpositions.Purpose: the primary object of this committee is to review all issues relating to shareholders including share transfers.annual RepoRt 2009-2010 . issues relating to duplicate share certificates. various communications viz. Objective the committee provides direction on the company’s Research and Development strategy and on key issues pertaining to R&D technology. 22 requests (2. exchange. udayant malhoutra mr. etc. Investor Grievance report for the year 2009-10 the details of the types and number of complaints received and resolved during this period are as under: Details of Complaints During the Year 2009-10 Nature of complaints Received during the year 1 Resolved during the year 1 It comprises of the following members: mr. promote and develop intellectual property at every stage of process and product. shareholders should approach the depositary participant with a request to debit or credit the account for the transaction. provide best technical assistance available across the globe.926 equity shares) for dematerialization were received and approved by the company. provide effective project support and assurance to production and its business. in the case of those requests where additional information/clarifications were required. Deploy scientists. innovation on extreme efficiency. exploit synergies through cutting edge technologies. on a fortnightly basis. change of address. the company reviews various communications received by the Registrars situated at hyderabad. redress shareholders / investor grievances. the structure and the process needed to ensure that the R&D initiatives today result in products necessary for the sustained and long term growth of the company. and have augmented the intellectual properties of the company.
K. aprameyan air chief marshal s. Objective the committee considers: l Dynamatic Holding. ceo & managing Director Dynamatic technologies limiteD . Rajagopal mr. n. Financial statements. chairman air chief marshal s. aprameyan. malavika Jayaram mr. govindarajan. singapore (JKmgl) Dynamatic limited. independent Director mr. udayant malhoutra Attendance at the Technical Development Committee meetings during the year 2009-10. K. independence of a Director and availability of time with him or her to devote to the job Determining processes for evaluating the skill. D–29 100% proposals for searching.) mr. a statement showing the relevant details of the subsidiaries is enclosed and is a part of the annual Report. Krishnaswamy (Retd. made with regard to new technical products and innovation. s. constituted the nomination committee. are reviewed quarterly by the audit committee. united Kingdom (Dm 38) yew tree investments limited. 5. Subsidiary Structure Dynamatic technologies limited – india 100% JKm Research Farm limited – india JKm global pte limited – singapore 100% Dynamatic limited – uK 100% Dm 38 limited – uK 100% yew tree investments limited – uK 100% oldland aerospace limited – uK During the year the company has obtained exemption from the government of india. india (JKmRFl) JKm global pte. Rajagopal mr. Krishnaswamy (Retd. 1956. which deliver greater value to its existing and new customers. chairman of leadership committee mr. however. chairman air chief marshal s. united Kingdom (oal) the technical and operations heads attend the committee meeting to present the improvements. Vijai Kapur. 2010. and recommending appropriate independent Directors and non-executive Directors.The Committee comprises of the following members: Dr. evaluating. based on an objective and transparent set of guidelines which should be disclosed and should.). 29th october 2009 & 30th January 2010.annual RepoRt 2009-2010 . experience and effectiveness of individual Directors as well as the Board as a whole. of Meetings Held 3 3 3 3 3 3 Attended 3 3 2 3 3 3 SUBSIDIARY COMPANIES all the subsidiary companies of the company are professionally driven by their respective Board to manage such companies in the best interest of their stakeholders. a statement containing all significant transactions and arrangements entered into by the unlisted subsidiary companies is placed before the company’s Board. all minutes of the meetings of material unlisted subsidiary companies are placed before the company’s Board regularly. knowledge. the nomination committee should also evaluate and recommend the appointment of executive Directors. Raymond Keith lawton ms. Name of the Director Dr. include the criteria for determining qualifications. Raymond K. Your Company has following Subsidiaries: JKm Research Farm limited. the meetings were held on 2nd may 2009. united Kingdom (ytl) oldland aerospace limited. ministry of corporate affairs from attaching the financial accounts of the subsidiary companies to this Report pursuant to section 212 of the companies act. the executive Directors of the subsidiaries may be nominated as non – executive Directors of the company. inter-alia. in particular the investments / loans made by the unlisted subsidiary companies. lawton ms. l l The Committee comprises of the following members: mr. limited. n. udayant malhoutra No. udayant malhoutra. malavika Jayaram mr. positive attributes. Krishnaswamy (Retd. united Kingdom (Dl) Dm 38 limited.) mr. Nomination Committee the Board at its meeting held on 14th may.
Remuneration of Directors compensation in the form of sitting fees to non-executive Directors and remuneration to executive Directors. their relatives. Risk Management Policy this forms part of the management Discussion and analysis Report. Whistle Blower mechanism your company promotes ethical behaviour in all its business activities and has put in place a mechanism of reporting illegal or unethical behaviour. Communication to shareholders the Quarterly results of the company. 30th september. the company’s website is regularly updated with enterprisewide news and events of material importance. SHAREHOLDERS’ DISCLOSURES Disclosure regarding appointment or re-appointment of Directors under section 256 of the companies act read with the articles of association of the company one third of the Directors retire by rotation and. employees may bring any violation of laws. the Directors or the management. if eligible. Disclosure of materially significant Related party Transactions i.D. Vijai Kapur. including the number of shares held by the Directors has been disclosed elsewhere in this report. the company issues reminders to concerned shareholders about unclaimed dividend as well as physical form shares which require demating. s. inter alia. Management Discussion and Analysis Report this forms part of the Directors’ Report. or Subsidiaries. and in sanjevani.com within 24 hours of release. on any matter related to capital markets during the last three years. the results are displayed on the company’s website www. the annual report containing. mr. Rights Issues and Preferential Issues etc. Raymond Keith lawton and mr.dynamatics. no money was raised through any of the aforesaid means during the financial year under review. as per article 130 of the articles of association. Directors’ Report.annual RepoRt 2009-2010 . seek re-appointment at the annual general meeting. all related party transactions have been entered into in the ordinary course of business and were placed before the audit committee in a summarized form. have been complied with in preparation of the financial statements. Bangalore edition. etc. printed copy of chairman’s speech is distributed to all the shareholders at the annual general meeting.. penalties and strictures imposed on the company by stock exchanges or seBi or any statutory authorities. that may have potential conflict with the interests of the Company at large. the detailed profiles of all these Directors are provided elsewhere in this report. mr. D–30 Dynamatic technologies limiteD . all individual transactions with related parties were on an arms length basis and are intended to further the interests of the company. the Directors and management personnel are mandated to maintain confidentiality of such reporting and ensure that no discriminatory actions are taken. conference calls with analysts and shareholders / investors are conducted as may be necessary from time to time. auditors’ Report. official announcements and media releases are sent to the stock exchanges regularly. the accounting standards issued by the institute of chartered accountants of india as applicable to the company from time to time. Non Compliances there are no instance of non-compliance by the company. the Board has recommended re-appointment of all the retiring Directors. for the quarters ended 30th June. the employees are also encouraged to contact any executive Director of the company including ceo & managing Director about such matters. govindarajan will retire in the ensuing annual general meeting. 31st December and 31st march are published in the Business standard. Proceeds from Public Issues. a detailed report is disclosed as a part of financial statements in this annual report. rules. consolidated Financial statements. audited Financial statements. regulations or unethical conduct to the notice of their immediate head of operations or through employee participation program. and other important information is circulated to members and others entitled thereto. with its Promoters. all india edition.e transactions of the Company of material nature.
09. Bangalore 560 058.01.2017 D–31 Dynamatic technologies limiteD .10.2011 29. 28th september.11.m.2003 30. 2008 at 3. General Shareholder Information your company was incorporated in Bangalore. as given in the following table. the company had issued shares to the shareholders of JDal.2017 Due date for transfer to IEPF 23. 2009 at 3.General Body meetings Annual General Meetings/ Extraordinary General Meeting: location.15 p.02.300 crores. 2007 at 2.2014 220.127.116.11 crores.2015 27. 2008 at 3.2008 27. your company made an initial public offer in 1974 and by 1995. india. Unclaimed dividend section 205 of the companies act. had made five rights issues & one bonus issue. na During the year there was no resolution passed through postal ballot within the meaning of section 192a of the companies act.06.m.2016 28.08.07.2012 25.2013 08.10.m.10.2016 25. in 1973. as Dynamatic hydraulics limited within the provisions of the companies act.08.07.00 p. Special Resolution Passed approval for borrowing powers in excess of paid-up capital and free reserves not exceeding Rs.05.09.2009 29.10.2013 08. (a subsidiary of your company) with your company.2005 25.2016 29. 1956.2015 22.2007 28.01.09.2015 02. on merger of JKm Daerim automotive limited (JDal).2016 30.2008 02.09.m. 27th september.09.06.m.2011 23.09.08. Qualified institutional placement of shares to Fii’s was done 2008.2010 Last date for Claiming unpaid dividend 24. 2007-08 agm egm “ “ 2008-09 agm “ 25th august.09.2011 23. if unclaimed within a period of seven years.01.09. will be transferred to iepF.08.2004 23.2012 16.2009 25.2012 16.2010 30.2009 30.30 p.11.09.01. shares are listed on Bombay stock exchange and national stock exchange.11. approval for borrowing powers in excess of paid up capital and free reserves not exceeding Rs.2010 30. the address of the registered office is Dynamatic park peenya.2005 16.2012 25. the dividend for the years mentioned below.2015 02.2006 08.12.09.11.2016 25.2016 29.08.2011 29. 1956 mandates that companies transfer dividend that has been unclaimed for a period of seven years from unpaid dividend account to the investor education and protection Fund (iepF). approval of scheme of merger of JKm Daerim automotive limited with Dynamatic technologies limited.10. Dividend for the year 2002-03 2003-04 2004-05 interim dividend Final dividend 2005-06 interim dividend Final dividend 2006-07 interim dividend Final dividend 2007-08 interim dividend Final dividend 2008-09 interim dividend Final dividend 2009-10 interim dividend i interim dividend ii Date of declaration of dividend 24.2008 22.2015 22.00 p.06.07. Karnataka.05. 1956 and changed its name to Dynamatic technologies limited in 1992.2014 28. date and time of the annual general meetings/extraordinary general meetings held during the preceding three years and the special resolutions passed thereat are as follows: Year 2006-07 agm egm Venue Dynamatic technologies limited Dynamatic park peenya Bangalore 560058 “ th Date and Time 28 september.00 p. 2007 at 4.annual RepoRt 2009-2010 . 30th June.10.2015 27. approval for increasing Fii limits approval of issue of shares to persons other than existing shareholders through Qip placement.02.2004 29.
Registrar and share transfer agent of the company. 2010 % of total Share holders 92. 2010.00 D–32 Dynamatic technologies limiteD . after giving effect to all valid share transfers in physical form lodged with m/s. the Register of members and share transfer Books will remain closed from 15th september. your Board of Directors have recommended a Final Dividend of Rs.00 No. Release of results Before 14th august.703 % of No.113 58. Karvy computershare private limited.873 65. 2010 (limited Review unaudited 1st quarter results) 30th september.703 % of No. Final Dividend will be paid on or before 21st october.07 2.33 0.annual RepoRt 2009-2010 . 2010.59 82.155 60.078 226 94 25 18 6 13 34 5. Annual General Meeting for the year 2009-10 Date and time Venue Financial calendar 22nd September. 2009 and 30th January.46 0. in respect of shares held in electronic form. 2009 and 5th February.11 0. 2010 (limited Review unaudited 2nd quarter results) 31st December. government of india is l85110Ka1973plc002308 and our company registration number is 2308.43 4. this number needs to be quoted in every transaction relating to the dematerialized shares of the company.494 31st March. isin number for Dtl equity shares is ine221B01012 Corporate Identity Number (CIN) cin. Investor services the company has paid the listing fee for the year 2009-10 to the stock exchanges.414.421 5. of Share holders 5.your company will send a communication to the shareholders.54 3.3/.850 29. advising them to lodge their claims with respect to unclaimed dividend.21 1.18 0.70 0. 2010 to those members whose names appear on the company’s register of members.275 85. of Shares 7.49 4.485.24 0. 2011 Distribution Schedule Particulars No.00 No. the Record date for the purpose of payment of interim Dividends were fixed as 6th november. where the shares of the company are listed in india. 2010. 2010 to 22nd september.582 31st March.388 29. of Share holders 5. Dividends will be paid to those deemed members whose names appear in the statements of beneficial ownership furnished by nsDl and cDsl as at the opening hours on 22nd september.11 1. of Shares 393.62 100.462.752 85. 2010 (both days inclusive) to determine the entitlement of shareholders to receive the Final Dividend as may be declared for the year ended 31st march.71 0. 2010 Before 14th november. 2011 (limited Review unaudited 4th quarter results) International Securities Identification Number (ISIN No) isin is an identification number for traded shares.55 1.324 159. no claim shall be made in respect thereof. 2009 % of total Share holders 92.11 0.50/.55 1.54 1.59 82.95 2.044 137.00 No.10/. Dividend payment to shareholders Board of Directors of the company declared an interim Dividend of Rs. of Shares 408.745 5.48 100. 2010.each at its Board meetings held on 29th october. of Shares 7.863 4.463 166.per share. shareholders are requested to make their claims.254 137. 2011 Before 14th may. 2010 Dynamatic Park Peenya Bangalore Our tentative calendar for declaration of results for the financial year 2010-11 is given below: Calendar for Reporting: Quarter ended 30th June.25 0.09 0.42 100.and Rs.684 4.per share of face value Rs.11 1.27 2. 2010 (limited Review unaudited 3rd quarter results) 31st march. once the unclaimed dividend is transferred to iepF.163 235 95 26 16 6 14 27 5.20 1.29 0.2/.47 0.414.202 64.53 1.83 100. of Equity Shares held 1 – 5000 5001-10000 10001-20000 20001-30000 30001-40000 40001-50000 50001-100000 100001 & aBoVe Total No. allotted by ministry of corporate affairs. 2010 Before 14th February.2.
annual RepoRt 2009-2010 D–33 .00 1.082 1. 09 June.60 2.085.90 730.84 22.07 0.459 41. 09 may.00 775. Volume is the total monthly shares traded. of shares held percentage 31st march.270 13.769 88.543 45.790 4.200. K.135 617.00 Low (Rs. 09 July.669 126.00 0.61 0.116.255.650 551 1.00 1.938 120.00 809.50 978. 09 october.079.055 28.420 20.) 564.043 5.957.055. pvt ltd JKm offshore india pvt ltd Wavell investments pvt ltd Barota malhoutra J.451 10.00 Low (Rs.634 120.01 21.549 3.447 803.00 1.72 8.90 1.195.027.00 931.012 5.193.023.30 14. 2010 no.22 20.00 1.15 1.) 599.313 194.590 4.39 24.358.) 476.00 0.00 1. of shares held percentage 936.264.20 0.579 47.938 100 100 100 100 2.182.062.55 1.00 0.66 0.00 877.23 18.35 100.067.00 1.372 Note high and low are in rupees per traded share.703 17.888 69.518 434.00 510.414 3.722 0 10. 09 December.878 647 1.00 1. Financial institutions.177.00 915.320.00 0.42 0.09 0.057 0 10.00 1.00 1.04 2.135.64 0.414. 10 march.243 414.74 100.00 1.433 1.897 88.00 1.349 7.00 1.103.560 28.01 24.00 985.30 820.00 1.83 12.737 1.Shareholding Pattern category PROMOTERS HOLDING Indian Promoters udayant malhoutra JKm holdings pvt ltd udayant malhoutra & co.00 1.47 14.50 0.00 513.90 1.00 1. 10 February.414.050.20 0.00 Share market price data The monthly high and low quotations and volume of shares traded on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited for the year 2009-10 BSE Month april.938 100 100 100 100 2.00 Volume of shares traded 27.135 688.00 1.00 930.07 0.) 461.00 54.905.850 631 1.00 945. 10 High (Rs.21 0. insurance companies Foreign institutional investors Total OTHERS private corporate Bodies indian public nRis/ocBs trust clearing agents Total Grand Total 31st March.439 3.769 High (Rs.95 NSE Volume of shares traded 16.707 803.00 1.650 551 1.199.00 1.794 31.331.703 17.00 0.01 21. 09 november.265 38.240.05 788.00 0.450 11. Dynamatic technologies limiteD .769 119.00 0.01 23. malhoutra Vita pvt ltd christine hoden (i) pvt ltd primella sanitary products pvt ltd Total NON–PROMOTER’S HOLDING institutional investors mutual Funds Banks.124 14.09 0.00 811.66 2.466 54. 09 January.250.234.189.00 0.422 8.90 938.199.840 4.005.10 1.00 725.63 0..00 1.00 53.00 1. 2009 no.90 0. 09 august 09 september.350.048.000.40 7.110.00 1.00 1.83 11.055.900 22.235.00 922.03 1.913 22.544 1.023.141 16.
BSE Code.64 5.: +91 22 2499 4200 Central Depository Services (India) Limited phiroze Jeejeebhoy towers 17th Floor Dalal street.913 50.m. mumbai –400 001. near Unity Buildings.42 104.. Road.987. After the meeting.Status of Dematerialization of shares particulars national securities Depository limited central Depository services (i) limited Total Dematerialized physical Grand Total 31st March.00 31st march.e nsDl/cDsl.94 2. Vittal Rao nagar. 248. Bandra east.298.427. of Shares % of Total Shares 3. 2010 No.annual RepoRt 2009-2010 . l change of postal address l change of bank details for receiving dividends l incorporation of ecs for receiving dividends electronically l change in residential status l incorporation of pan l incorporation of nomination l transfer of shares or effecting transposition of names of sharesholders.231 36.net Registrar and Share Transfer Agents Karvy computershare private limited plot no.472 63.729. Those who wish to avail this facility are requested to get confirmation to this effect at the following telephone numbers: 080 28394933/34/35 (extn: 254) (contact: corporate secretarial team) you may send your request by email to : investor. Fort mumbai 400 023 tel.net Your requests must reach us latest by September 15.relations@dynamatics. mumbai – 400 051 NSE Code : DYNAMATECH We are constantly in the process of enhancing our service levels to further improve the satisfaction levels based on the feedback received from shareholders time to time.00 p.30 noon and 1. 4th Floor Kamala mills compound senapathi Bapat marg.36 2.746 52. 17-24. Bangalore to reach the AGM venue comfortably. for any corporate actions like payment of dividends etc.414.505242 National Stock Exchange of India Limited (NSE) “exchange plaza” Bandra – Kurla complex. haritha gm compliance & company secretary tel.703 100. : +91 80 28394933/34/35 extn.92 128. shareholders will be dropped back at their pick up location. Further.579. 2010 D–34 Dynamatic technologies limiteD .70 5.782 2.: +91 22 2272 3333 Shareholders holding shares in damat/electronic form are requested to approach their Depositary participants for effecting following changes in your holdings in their records. J. NOTE: As usual. your Company will provide transport facility at 12. madhapur hyderabad -500 081 tel. 2009 no. the company will take your share holding details from your Dp account through data downloaded from the Depositaries i.00 INVESTOR GUIDE Investor contacts For queries relating to financial statements/ shares/dividends/ complaints/ investor correspondence g.833 1. of shares % of total shares 2. lower parel mumbai -400 051 tel.com Depository for Equity Shares National Securities Depository Limited trade World.: +91 40 2342 0815 -20 email: firstname.lastname@example.org 3.703 100. Fax +91 80 2839 5328 email id: investor. Addresses of Stock Exchange/s Bombay Stock Exchange Limited (BSE) phiroze Jeejee Bhai towers Dalal street.690 60. a Wing.relations@dynamatics.C.414.30 1.834.957 47.
Sreedharan & Associates V. no. which to the best of our knowledge and belief were necessary for the purposes of certification.com cell : 9845214399 g n R complex. explanations and information furnished. 2010 For V. Sreedharan partner F. we certify that the company has complied with a) b) all the mandatory conditions of the said clause 49 of the listing agreement and clause(2) of non-mandatory requirements referred to in annexure iD to clause 49 of the listing agreement relating to Remuneration committee and clause (7) of the non-mandatory requirement relating to Whistle Blower policy. 8th cross. on the basis of our examination of the records produced. 2010. Dynamatic technologies limited Dynamatic park peenya. 833 Dynamatic technologies limiteD . our examination was limited to the procedure and implementation thereof. We have obtained all the information and explanations. the compliance of conditions of corporate governance is the responsibility of the management.p.32/33. Sreedharan & Associates company secretaries off : 080-2229 0394 Res : 080-2659 3314 Fax : 080-2211 6252 e-mail : sreedharan@vsnl. no. Wilson garden Bangalore-560027 CORPORATE GOVERNANCE COMPLIANCE CERTIFICATE corporate identification number : l85110Ka1973plc002308 nominal capital : Rs. Bangalore 560 058 We have examined all the relevant records of DYNAMATIC TECHNOLOGIES LIMITED for the purpose of certifying compliance of the conditions of corporate governance under clause 49 of the listing agreement with the mumbai stock exchange and the national stock exchange of india limited for the financial year ended march 31.c.CORPORATE GOVERNANCE COMPLIANCE CERTIFICATE V. 25 crores to.annual RepoRt 2009-2010 D–35 . the members. this certificate is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the company. 1st Floor.s -2347 : c. place : Bangalore Date : July 15.
From this basic business cycle. This ensures the long-term economic relevance of our enterprise. Dynamatic® Divisions and Subsidiaries have forged deep and lasting relationships with all their stakeholders. 1. in turn creating a secure environment for financiers and suppliers. OUR VISION. Your thoughts become your words. will also simultaneously deliver superior financial results along with a positive ecological impact. come profits on a sustainable basis. it is largely due to its philosophy of proactively pursuing balanced and sustainable business policies. Your habits become your values.2010 SUSTAINABILITY REPORT Your beliefs become your thoughts. which have enabled them to grow Udayant Malhoutra Chief Executive Officer & Managing Director Clean Energy generated by the Dynamatic® Wind Farm at Coimbatore D–36 DyNAMATIC TECHNOlOgIES lIMITED .ANNuAl REPORT 2009-2010 . modern and vibrant India To be an example to any corporate. Happy employees are performers. Our Vision & Business Philosophy is driven by our Values. technological competence and enhance brand equity as a global leader To provide a safe. anywhere in the world.O & MANAGING DIRECTOR If Dynamatic Technologies has been successful in consistently achieving high growth rates. A focus on Safety.E. . and also contribute to societal development. in terms of global best-in-class environmental practices. and serve customers’ needs by delivering value for money. Key Learnings A business philosophy that abjures waste and is based on conservation and optimal utilization of resources. Eventually sustainable business policies form an important and integral part of good corporate governance. Your words become your actions. which are: 1. with a pre-eminent market position in the Hydraulic. They develop innovative products efficiently. but rather on a holistic and integrated approach to business development. providing improved value to its customers. improving the quality of life of its employees. Human Resource Development and enhancement of Intellectual Property will help de-risk the Company. nurturing and learning environment for our human resources To have a zero tolerance of any transmission of wastes into the environment To secure and de-risk financiers and suppliers To transform the Company into a global R&D organization. Our approach towards sustainability has not been based on stand-alone initiatives.Mahatma Gandhi CORPORATE SUSTAINABILITY REPORT MESSAGE FROM THE C. Your actions become your habits. providing a secure environment for its financiers and suppliers. BUSINESS PHILOSOPHY AND SUSTAINABILITY l l l l l l l l l l To secure market leadership. Environment and Nation. These include a deep commitment to improving the quality of its products on a continual basis. Automotive and Defence sectors in Asia To consistently achieve returns higher than the cost of capital To comply with all legal requirements expected of the Company in every country we are present To enhance shareholder wealth To help in the creation of a strong.1. Your values become your destiny. and contributing to our Society. CUSTOMER CENTRIC RESEARCH Over the years.
through investment in R&D. T. capable of returning high yields to investors and improving the quality of life of all employees.2010 SUSTAINABILITY REPORT 1. and upon their collective capabilities in delivering complex technological solutions. has had no reportable accidents or injuries at work for over 10 Lac man-hours since 2006-07.4 SOCIETAL LINKAGES We are proud of our civilizational heritage. The need to contribute to society. mechanics. We spend considerable time in the field. Chennai. for which it received awards from the State Government of Tamil Nadu for the Lowest Injury Frequency rates ( 2006. such as shareholders. We strive to satisfy the customers’ stated and unstated needs. 2007) and for the Longest Accident Free Period ( 2007). All are eco-friendly and designed to eliminate waste. equipment handlers… And very often suggest improvements to our customer. The value of enduring relationships. at modern manufacturing facilities located at Bangalore. This approach has led us to continuously innovate and develop highly engineered products. 1. Every business process is built around the customer.2 EMPHASIS ON KNOWLEDGE ACQUISITION AND APPLICATION Dynamatic® has been adopting and following worldclass business practices. financiers. and the values of our ancient land. and in turn. 2. listening to farmers. processes and experiences will be absorbed into the existing organization. best practices. process improvements and elimination of operational inefficiencies. suppliers. At Dynamatic®. We constantly strive to deliver superior value to our customers by challenging ourselves and pushing the boundaries of knowledge through imagination and diligence. which houses the Automotive & Foundry divisions. The awards were presented by Mr. Swindon and Bristol. these values will be extended across the world. customers. SUSTAINABILITY POLICY We at Dynamatic® are driven by the fundamental objective of enhancing the value of the Company to all stakeholders. at economically viable price levels. Our technology and quality processes are therefore predictive in nature. as we globalize. We firmly believe that our success is merely a reflection of our ability to delight our customers. Minister for Labour. We interact constantly with our customers. At the same time. We firmly believe that sustained growth can D–37 SAFETY@work Creating safe. and its commitment to quality and equal opportunity. These relationships are based on mutual trust and respect. rather than reacting to it. 1. and care for our environment. M Anbarasan. DyNAMATIC TECHNOlOgIES lIMITED . anticipating change. We are geared towards providing innovative and creative solutions to our customers on a continuous basis. the values of trust and integrity. your Company strives to attract the finest talent available and then provides a result-oriented environment based on meritocracy and egalitarianism. new learnings. before their customers do. we firmly believe that the key to sustained growth is not mere addition to physical capacities but is actually the ability to dramatically enhance and utilize human capabilities. This has resulted in us building a successful business model for ourselves. Government of Tamil Nadu.1. by understanding applications and anticipating future trends. understand their needs and endeavor to satisfy them. at an official ceremony jointly organized by the National Safety Council and the Inspector of Factories on 5th March 2010. healthy workplaces for its employees! The Dynamatic® industrial complex in Chennai.ANNuAl REPORT 2009-2010 . As Dynamatic® globalizes. drivers. employees and to the society at large. continuously. as well as the society/community in which we exist and work. learning from and contributing to every society we are part of.3 HUMAN CAPITAL Dynamatic® is built upon a foundation of basic values. DIMENSIONS OF SUSTAINABILITY 2. we travel with an open mind.
2.ANNuAl REPORT 2009-2010 . We believe that such growth can only be achieved through a firm commitment to these elements over the long term.2010 SUSTAINABILITY REPORT GrEENDESIGN l l l l l l l only be fostered by developing a work ethic founded upon the core values of integrity. Rainwater harvesting All business processes are designed to ensure that no wastage is transmitted to our environment Energy consumption in each plant is monitored. material handling.c. To increase gender diversity at work. government agencies. Dynamatic® is aggressively implementing strategic Hr programs and initiatives aimed at raising the percentage of women employees to 25% of the workforce. Maximization of productivity and maintenance of cost leadership Continue to enhance the value of the Company to the shareholders Treatment of wastage water and using it for gardening as a process of water conservation. Standing as a model by winning safety awards l Emissions: the air quality in our plants is continuously monitored for suspended particulate matter. trade associations and with communities all around our facilities l undertake disaster relief programs in times of need (earthquake. energy saving and environment friendly Design all our processes with efficiency and energy conservation in mind. development and manufacture of Charging Points for reuben Power’s Electric Vehicle charging infrastructure in the Uk.2 b. and is kept well within safe limits.2. and are prepared to take actions commensurate to this goal. WOMEN D–38 POWER DyNAMATIC TECHNOlOgIES lIMITED . l Foster a culture of empowerment l Elevation of workers into management cadre l Promote the usage of six sigma practices amongst all employees l Practice open dialogue with employees. defense and precision parts for aerospace applications Secure market leadership. Environment Friendliness and Social Equity. empowerment and accountability. namely Economic growth. We endeavor to uphold and nurture these core values in all facets of operations. 2. machine tools. 2. optimized and minimized Design and Redesign products that are safe. Environment-Friendliness and Social Equity. earth moving. the path to sustainability has the following elements: Economic growth. we understand that sustained growth can only come about when equal attention is paid to all elements of the Triad of Sustainability. technological competence and brand equity as a global leader.) l Interactive sessions with local community l Increase employment of Women l Increase employment of individuals coming from disadvantaged communities. ENVIRONMENT. Tsunami. SOCIAL EQUITY Not allowing any form of discrimination in employment or promotion l Imparting training and development programs to facilitate multi-tasking and multi-skilling l Practicing safety norms and help protection. professionalism.2 THE TRIAD OF SUSTAINABILITY Dynamatic® has leveraged on its design capabilities and precision engineering skills for the design. etc.2. 2. customers. Being a responsible corporate citizen.a. floods.FRIENDLINESS At Dynamatic®. ECONOMIC GROWTH l l l l l l Value Engineering: reduction of raw material consumption by optimizing product design Maximize our efforts in developing new products and cost effective applications through continuous innovation Development of complete hydraulic solutions for mechanized agriculture. transparency.
the frequency of such verification is reasonable. in our opinion. except goods-in-transit and stock lying with third parties. (b) the company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner over a period of three years. on the basis of written representations received from the directors. the said accounts give the information required by the act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in india: (i) in the case of the balance sheet. (ii) in the case of the profit and loss account. written confirmations have been obtained. of the state of affairs of the company as at 31 march 2010. as required by the companies (auditor’s Report) order. which to the best of our knowledge and belief were necessary for the purposes of our audit. no material discrepancies were observed on such verification. in our opinion. do not affect the going concern assumption. 2003. for B S R & Associates Chartered Accountants Firm Registration number 116231W Rajesh Arora Partner membership no. (c) Fixed assets disposed off during the year were not substantial. we report that: (a) we have obtained all the information and explanations. as amended. these financial statements are the responsibility of the company’s management. we enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. an audit includes examining. our responsibility is to express an opinion on these financial statements based on our audit. For stocks lying with third parties at the year-end. as at 31 march 2010 and taken on record by the Board of Directors. (ii) (a) the inventory. proper books of account as required by law have been kept by the company so far as appears from our examination of those books. this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets. in our opinion. issued by the central government of india in terms of sub-section (4a) of section 227 of the companies act. we report that none of the directors are disqualified as at 31 march 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the act on the said date. We report that: (i) (a) the company has maintained proper records showing full particulars.annual RepoRt 2009-2010 . and (iii) in the case of the cash flow statement. Further to our comments in the annexure referred to above. evidence supporting the amounts and disclosures in the financial statements. the balance sheet. We conducted our audit in accordance with auditing standards generally accepted in india. and therefore. an audit also includes assessing the accounting principles used and significant estimates made by management. in our opinion and to the best of our information and according to the explanations given to us. those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. D–39 (b) (c) (d) (e) (f) Dynamatic technologies limiteD . 076124 place : Bangalore Date : 22 July 2010 ANNEXURE TO THE AUDITORS’ REPORT annexure referred to in our report to the members of Dynamatic technologies limited (“the company”) for the year ended 31 march 2010. has been physically verified by the management during the year.AUDITORS’ REPORT TO THE MEMBERS OF DYNAMATIC TECHNOLOGIES LIMITED We have audited the attached balance sheet of Dynamatic technologies limited (“the company”) as at 31 march 2010. of the cash flows of the company for the year ended on that date. the balance sheet. as well as evaluating the overall financial statement presentation. profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3c) of section 211 of the act. of the profit of the company for the year ended on that date. the profit and loss account and the cash flow statement for the year ended on that date annexed thereto. in our opinion. We believe that our audit provides a reasonable basis for our opinion. 1956 (‘the act’). including quantitative details and situation of fixed assets. on a test basis. profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.
(vii) in our opinion. is not. no undisputed amounts payable in respect of provident Fund. we have not made a detailed examination of the records. service tax. however. prima facie. the prescribed accounts and records have been made and maintained. employees’ state insurance. the borrower has been regular in repayment of interest. customs duty Dynamatic technologies limiteD . the maximum amount outstanding during the year was Rs. the company has an internal audit system commensurate with the size and nature of its business. excise duty and other material statutory dues were in arrears as at 31 march 2010 for a period of more than six months from the date they became payable. (vi) in our opinion.(b) the procedures for physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business (c) the company is maintaining proper records of inventories.122. customs duty. accordingly. Wealth tax. firms or other parties covered in the register maintained under section 301 of the act. (ix) (a) according to the information and explanations given to us and on the basis of our examination of the records of the company. the company has not granted any other secured or unsecured loans to companies/ firms/ other parties listed in the register maintained under section 301 of the act.473. (iii) (a) the company has granted unsecured loans to its subsidiary company covered in the register maintained under section 301 of the companies act. (b) in our opinion.533. accordingly. sales-tax. (e) as informed. according to the information and explanations given to us. paragraph sub-clauses (f) and (g) of the order are not applicable. (viii) We have broadly reviewed the books of account maintained by the company pursuant to the rules prescribed by the central government of india for maintenance of cost records under section 209(1) (d) of the act in respect of products manufactured and are of the opinion that prima facie. 1956 and the rules framed thereunder / the directives issued by the Reserve Bank of india (as applicable) with regard to deposits accepted from the public. 109. (v) (a) in our opinion and according to the information and explanations given to us. there have been no proceedings before the company law Board or national company law tribunal (as applicable) or Reserve Bank of india or any court or any other tribunal in this matter and no order has been passed by any of the aforesaid authorities. and according to the information and explanations given to us. secured or unsecured from companies. customs duty. and according to the information and explanations given to us. the company has not demanded repayment of the loan during the year. employees’ state insurance. salestax. service tax. We have not observed any major weaknesses in the internal control system during the course of the audit. the rate of interest and other terms and conditions on which the aforesaid loan has been granted to the subsidiary. income-tax. the discrepancies noticed on verification between the physical stocks and the book records were not material. sales-tax. excise duty and other material statutory dues have been generally regularly deposited during the year by the company with the appropriate authorities. the company has not taken any loans. the transactions made in pursuance of contracts and arrangements referred to in (a) above and exceeding the value of Rs 5 lakh with each party during the year D–40 have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. section 58aa or other relevant provisions of the companies act. 1956 (‘the act’). (b) in our opinion. (d) there is no overdue amount of more than Rupees one lakh in respect of aforesaid loan given to subsidiary company listed in the register maintained under section 301 of the act. as informed. there are no dues in respect of income-tax. the particulars of contracts or arrangements referred to in section 301 of the act have been entered in the register required to be maintained under that section. (b) according to the information and explanations given to us. service tax.annual RepoRt 2009-2010 .218 and the year-end balance of such loan was Rs. income-tax. investor education and protection Fund. there is an adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchase of inventories and fixed assets and with regard to the sale of goods and services.028. the company has complied with the provisions of section 58a. though there has been a slight delay in a few cases. (iv) in our opinion and according to the information and explanations given to us. (c) the aforesaid loan is repayable on demand. prejudicial to the interest of the company. amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident Fund. there are no dues on account of cess under section 441a of the act since the date from which the aforesaid section comes into force has not yet been notified by the central government of india.
debentures and other securities. the term loans taken by the company have been applied for the purpose for which they were raised.and excise duty which have not been deposited on account of any dispute. 076124 Bangalore Date: 22 July 2010 Dynamatic technologies limiteD . the company is not a chit fund / nidhi/ mutual benefit fund/ society.annual RepoRt 2009-2010 D–41 . the company has not defaulted in repayment of dues to its bankers or to any financial institutions. (x) the company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year. (xviii) the company has not made any preferential allotment of shares to companies/ firms/ parties covered in the register maintained under section 301 of the act. the company did not have any outstanding debentures during the year. debentures and other investments. (xv) in our opinion and according to the information and explanations given to us. Rajesh Arora Partner membership no. in our opinion and according to the information and explanations given to us. (xix) the company did not have debentures during the year. the company has not granted any loans and advances on the basis of security by way of pledge of shares. the terms and conditions on which the company has given guarantees for loans taken by others from banks or financial institutions are not prejudicial to the interest of the company. (xx) any outstanding (xi) (xii) the company has not raised any money by public issues. securities. we are of the opinion that the funds raised on short-term basis have not been used for long-term investment. (xvii) according to the information and explanations given to us and on an overall examination of the balance sheet of the company. the company is not dealing or trading in shares. (xiv) according to the information and explanations given to us. (xiii) (xxi) according to the information and explanations given to us. no fraud on or by the company has been noticed or reported during the course of our audit. for B S R & Associates Chartered Accountants Firm Registration number 116231W (xvi) in our opinion and according to the information and explanations given to us. in our opinion and according to the information and explanations given to us.
293 1.901 3.737.888 119.294.560 41.009 - 13 14 as per our report attached for B S R & Associates Chartered Accountants Firm Registration number: 116231W for and on behalf of the Board of Directors Dr.297 1.642 2.314 72.066 209.857 374. loans and advances inventories sundry debtors cash and bank balances other current assets loans and advances Current liabilities and provisions current liabilities provisions Net current assets 1 Significant accounting policies Notes to the accounts 20 the schedules referred to above form an integral part of the balance sheet.183.KRISHNASWAMY (Retd.245.295 734.267.147 1.382 2.303.177 3.548.compliance & company secretary Dynamatic technologies limiteD . Schedule 2 3 4 5 20(6) 54.476 795.579 509.937 301.064 771.935 337.174 52.009 (Rs in ‘000) As at 31 March 2009 6 7 8 9 10 11 12 3.769 35.232 230.) Director S GOVINDARAJAN Director Rajesh Arora Partner membership number 076124 GOVIND MIRCHANDANI Director MALAVIKA JAYARAM Director N RAJAGOPAL executive Director and cto B SESHNATH executive Director and cmo place : Bangalore Date : 22 July 2010 D–42 N RAM MOHAN Financial controller V SUNDER president and group cFo UDAYANT MALHOUTRA ceo and managing Director G HARITHA gm.706 54.672 509. 2010 As at 31 March 2010 SOURCES OF FUNDS Shareholders' funds share capital Reserves and surplus Loan funds secured loans unsecured loans Deferred tax liability.049 700.290 84.609.BALANCE SHEET AS AT MARCH 31.916 742.594 37.406.007 2.880 664.284 182.985 28.062.609.net APPLICATION OF FUNDS Fixed assets gross block less: accumulated depreciation net block capital work-in-progress Investments Current assets.annual RepoRt 2009-2010 . K APRAMEYAN Director Air Chief Marshal S.857 425.706 - 2.868.505.736 1.001.875.147 1.512 2.241 698.538.737 1.538 1.449 873.775 3.522 724.857 324.573 3.548.
925 297 48. for and on behalf of the Board of Directors as per our report attached for B S R & Associates Chartered Accountants Firm Registration number: 116231W Dr.wealth tax Profit after tax Balance brought forward from previous year Amount available for appropriation Appropriations .146 312.812 24.265 139.978 1.504 100.043 112.174 282.800 507.418 21.831.260 2.98 For the year ended 31 March 2009 3.annual RepoRt 2009-2010 D–43 .) Director S GOVINDARAJAN Director Rajesh Arora Partner membership number 076124 GOVIND MIRCHANDANI Director MALAVIKA JAYARAM Director N RAJAGOPAL executive Director and cto B SESHNATH executive Director and cmo place : Bangalore Date : 22 July 2010 N RAM MOHAN Financial controller V SUNDER president and group cFo UDAYANT MALHOUTRA ceo and managing Director G HARITHA gm.112 5.594 461.deferred tax charge .126 229 108. interest and tax (EBITDA) Depreciation (net of revaluation reserve adjustment) interest and finance charges Profit before taxation provision for tax .901 10.869 1.483 390.122 3.minimum alternate tax credit entitlement .688 4.487.244 6.537 8.690 404.557 229.908 2. net income from project execution services service income other income Expenditure cost of materials consumed personnel expenses other operating expenses Operating profit before depreciation.848 9.145) 64.812 19.638 390.825 49.interim dividend .578.645 (12.817 (11.474 76. K APRAMEYAN Director Air Chief Marshal S.534 2.026.023 142.37 15 16 17 18 6 19 earnings per share .234.122 3.751 3.PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.764 378.870 282.907 2.639.366 16.681 4.928) 21.632 539.848 13.690.compliance & company secretary Dynamatic technologies limiteD .120 177.fringe benefit tax .856.638 312. 2010 (Rs in ‘000) Schedule Income sale of manufactured products less: excise duty sale of manufactured products.702 264.039.818 332.basic and diluted (equity share par value Rs.proposed dividend -tax on dividend transferred to general reserve Balance carried forward For the year ended 31 March 2010 3.379 3.346 185.663 214.034 443.060.275 172.10 each) significant accounting policies 1 notes to the financial statements 20 the schedules referred to above form an integral part of the profit and loss account.769 6.KRISHNASWAMY (Retd.887 379.current tax .
707) D–44 Dynamatic technologies limiteD .418 112.813) (1.086 (19.546) 500.767) (76.265 (10.CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31.(increase) in inventories .745 (215) 36. 2010 (Rs in ‘000) 31 March 2010 A Cash flow from operating activities: profit before tax adjustments for: Depreciation interest expense interest income loss on sale of fixed assets Debts / advances written off provision for bad and doubtful debts/ advances liability no longer required written back unrealised foreign exchange (gain) /loss Warranty provision written back Operating cash flow before working capital changes Adjustments for changes in working capital : .(Decrease) / increase in provisions adjustment for unrealised foreign exchange (loss) Cash generated from operating activities .206) (7.112 31 March 2009 B Cash flow from investing activities: purchase of fixed assets proceeds from sale of fixed assets purchase of investments loans to subsidiary company interest received acquisition of business division Net cash used in investing activities (182.018 (320.099) (63.504 (148.708) 279 22 2.412 (7.(increase) / decrease in sundry debtors .325) 78.546 580.492 139.473 (95.358 (25.(increase) in other receivables .658) (87.663 214.annual RepoRt 2009-2010 .income tax paid .963) (477.319 (13.021 13.002 1.506 (36.894) 1.637 172.Fringe benefit tax paid Net cash from operating activities 52.680) (51.359) 49.120 152.828 (22.955) 111.223 6.993) 2.469) (4.463) 3.199.increase / (decrease) in trade and other payables .483) 8.613) 560.898) 8.827 185.505 18.999 (554) 22.955 (52) 448.918 (408.
477 (145.631 736.661) (45.985 52.nil (previous year: Rs.822) (431.392) 11.800) (218.391) 72.407) 1.974 20.391) 870.420 (74.380) (5.790) as per our report attached for B S R & Associates Chartered Accountants Firm Registration number: 116231W for and on behalf of the Board of Directors Dr.473) (7.KRISHNASWAMY (Retd.960) (23.27.684 (previous year Rs.18.594 (20.8.891 72.497) 12.) Director S GOVINDARAJAN Director Rajesh Arora Partner membership number 076124 GOVIND MIRCHANDANI Director MALAVIKA JAYARAM Director N RAJAGOPAL executive Director and cto B SESHNATH executive Director and cmo place : Bangalore Date : 22 July 2010 N RAM MOHAN Financial controller V SUNDER president and group cFo UDAYANT MALHOUTRA ceo and managing Director G HARITHA gm.577 (212.980) (3.587 (259.094 52.(Rs in ‘000) 31 March 2010 C Cash flow from financing activities: proceeds from borrowings proceeds from issue of shares [net of related share issue expenses Rs.345 6.901) (20.985 20.000) (592) (86.759)] Repayment of borrowings Repayment of inter corporate deposits (net) proceeds from public deposits (net) proceeds from cash credits/ working capital loans (net) proceeds from buyer's credit (net) interest paid Dividend paid Dividend tax paid Net cash used in financing activities Net Increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year* 155.094 31 March 2009 * includes restricted term deposits Rs.140.compliance & company secretary Dynamatic technologies limiteD . K APRAMEYAN Director Air Chief Marshal S.annual RepoRt 2009-2010 D–45 .
advances paid towards the acquisition of fixed assets and the cost of assets not put to use as at the balance sheet date are disclosed under capital work-inprogress. assets individually costing Rs.mobile phones . 5.others plant and machinery (wind farm) Rate per annum 25% 10% 50% 20% 10. Fixed assets and depreciation Fixed assets are stated at the cost of acquisition or construction. which are higher than the corresponding rates prescribed in schedule XiV: Data processing equipment Furniture and fixtures office equipment . pursuant to this policy. and electrical installations are stated at revalued amount based on valuations done by an external expert in the year 1991-92. Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. gaap comprises mandatory accounting standards as specified in the companies (accounting standards) Rules. any revision to accounting estimates is recognised prospectively in current and future periods.SCHEDULES TO THE ACCOUNTS SCHEDULE 1 . depreciation is provided at a higher rate based on the management’s estimate of the useful life/remaining useful life.SIGNIFICANT ACCOUNTING POLICIES a. Basis of accounting and preparation of financial statements the financial statements are prepared in accordance with the indian generally accepted accounting principles (‘gaap’) under the historical cost convention on the accrual basis. the rates of depreciation D–46 e.34% pro-rata depreciation is provided from the date of purchase / disposal on assets purchased or sold during the year. additional depreciation due to revaluation is adjusted out of revaluation reserve Intangibles and amortization Research costs are expensed as incurred. the company is listed in india with national stock exchange and Bombay stock exchange. examples of such estimates include estimates of provision for warranty. amortization is provided on a pro-rata basis on straightline method over the estimated useful lives of the assets.annual RepoRt 2009-2010 .000 or less are fully depreciated in the year of purchase. the accounting policies have been consistently applied by the company. Use of estimates the preparation of financial statements in conformity with generally accepted accounting principles in india (indian gaap) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Background Dynamatic technologies limiteD (“the company”) was incorporated in 1973 as Dynamatic hydraulics limited under provisions of the companies act. plant and machineries. 2006. less accumulated depreciation. building. all costs incurred in bringing the assets to its working condition for intended use have been capitalised. during the reporting year. depreciation on the following fixed assets has been provided at the following rates (straight line method). subsequent expenditure incurred on a recognized intangible asset is added to the cost of intangible asset when it is probable that the expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standard of performance and the expenditure can be measured and attributed to the asset reliably. actual results could differ from these estimates. Depreciation on fixed assets is provided using the straight-line method. b. 1956 (‘the act’). in 1992 the name of the company was changed to Dynamatic technologies limited. hydraulics gear pumps. provision for doubtful debts and the useful life of fixed assets. not exceeding ten years as detailed below: application software prototype / product development 4 years 8-10 years the carrying value of development costs is reviewed for impairment annually when the asset is not in use and otherwise when events or changes in circumstances indicate that the carrying value may not be recoverable Dynamatic technologies limiteD . prescribed in schedule XiV to the act are considered as minimum rates. (‘the Rules’) and the relevant provisions of the act to the extent applicable. the company is in the business of manufacturing automotive components. d. c. the financial statements are presented in indian rupees thousands. disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses. certain land. if the management’s estimate of the useful life of a fixed asset at the time of the acquisition of the asset or of the remaining useful life on a subsequent review is shorter than envisaged in the aforesaid schedule. aerospace components and wind farm power generation.
unearned revenues included Dynamatic technologies limiteD . gain or loss is recognized directly in shareholders’ funds under hedging reserve to the extent considered highly effective. which is a defined contribution scheme. carried out by an independent actuary. costs of conversion and other costs incurred in bringing the inventories to their present location and condition.f. the company uses derivative instruments such as foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecasted transactions. are provided at pre-determined rates to the appropriate authorities. Revenue from sale of products has been presented both gross and net of excise duty. all monetary assets and liabilities denominated in foreign currency are restated at the rates ruling at the year end and the exchange gains/losses arising there from are adjusted to the profit and loss account. provision for inventory obsolescence is provided as considered necessary. based on the underlying interest rates. Revenue from project execution services are recognized on rendering of services in accordance with the terms of the arrangement with customers using proportionate completion method. the derivatives that qualify for hedge accounting and designated as cash flow hedges are initially measured at fair value and are re-measured at a subsequent reporting date and the changes in the fair value of the derivatives i. the company has applied the principles of as 30 ‘ Financial instruments: Recognition and measurement’.e. such exchange differences are accumulated in a “Foreign currency monetary item translation Difference account” and amortized over the balance term of the long-term monetary items but not beyond 31 march 2011. are recognized in the profit and loss account. the amount recognized as sales is exclusive of excise duty. Inventories inventories are valued at lower of cost or net realizable value. to designate a forward or option contracts as an effective hedge. carried out by an independent actuary. the company’s gratuity scheme is administered by life insurance corporation of india. effective 1 april 2008. the management objectively D–47 h. Foreign currency transactions and balances transactions in foreign currency are recognized at the rate of exchange prevailing on the date of the transaction. g. consumable stores and spares used for maintenance are debited to the profit and loss account upon issuance. which generally coincides with delivery to the customers. Raw materials and other supplies held for use in production of inventories are not written down below cost except where material prices have declined. (ii) j Derivatives in accordance with its Risk management policies and procedures. comprises costs of purchase. to the extent that the application of the principles did not conflict with existing accounting standards and other authoritative pronouncements of the company law Board and other regulatory requirements. actuarial gains/losses are charged to the profit and loss account. gain or loss upon fair value on derivative instruments that either do not qualify for hedge accounting or are not designated as cash flow hedges or designated as cash flow hedges to the extent considered ineffective. Employee benefits gratuity liability is a defined benefit scheme and is accrued based on an actuarial valuation at the balance sheet date. sales tax. unbilled revenues included in other current assets represent cost and earnings in excess of billings as at the balance sheet date.annual RepoRt 2009-2010 . the cost determined on first-in-first-out (FiFo) basis. i in current liabilities represent billings in excess of earnings as at the balance sheet date. service income is recognized when an unconditional right to receive such income is established. Revenue recognition Revenue from sale of products is recognized when the risks and rewards of ownership are transferred to customers. interest on deployment of funds is recognized using the time proportion method. except in case of exchange differences relating to long-term monetary items which are dealt with in the following manner: (i) in so far as they relate to the acquisition of a depreciable capital asset are added to / deducted from the cost of the asset and depreciated over the balance life of the asset in other cases. contributions to provident fund. trade and quantity discounts. the comparison of cost and net realisable value is made on an item-by-item basis. and it is estimated that the cost of finished products will exceed their net realisable value. compensated absence is a long term employee benefit and is accrued based on an actuarial valuation at the balance sheet date.
no provision or disclosure is made. or no longer qualifies for hedge accounting. if at the balance sheet date. hedge accounting is discontinued when the hedging instrument expires.e. the company accrues the estimated cost of warranty at the time when the revenue is recognised. but probably will not. terminated. the recoverable amount is determined for the cash-generating unit to which the asset belongs. with or without further payment. an impairment loss is reversed only to the extent that the carrying amount of asset does not exceed the net book value that would have been determined. provisions for onerous contracts. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote. Leases leases under which the company assumes substantially all the risks and rewards of ownership are classified as finance leases.cancellable period for which the lessee has agreed to take on lease the asset together with any further periods for which the lessee has the option to continue the lease of the asset. if a hedged transaction is no longer expected to occur. provision for diminution in value. current investments are carried at lower of cost and fair value determined on an individual investment basis.evaluates and evidences with appropriate supporting documents at the inception of each contract whether the contract is effective in achieving offsetting cash flows attributable to the hedged risk. are capitalized. whichever is lower. which option at the inception of the lease it is reasonably certain that the lessee will exercise. however.annual RepoRt 2009-2010 . q. all other investments are classified as long-term investments. Borrowing costs Borrowing costs directly attributable to acquisition or construction of those fixed assets. if such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount. there is an indication that if a previously assessed impairment loss no longer exists. the deferred tax charge or credit and Dynamatic technologies limiteD . o Impairment of assets the company periodically assesses whether there is any indication that an asset or a group of assets comprising a cash generating unit may be impaired. which necessarily take a substantial period of time to get ready for their intended use. Income tax income tax expense comprises current tax (i. are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event. the company estimates the recoverable amount of the asset. or exercised. contracts where the expected unavoidable costs of meeting the obligations D–48 p under the contract exceed the economic benefits expected to be received under it. if no impairment loss had been recognised. 2001 are capitalised at fair value of the asset or present value of the minimum lease payments at the inception of the lease. For operating leases. other borrowing costs are accounted as an expense. the cumulative gain or loss on the hedging instrument recognized in shareholder’s funds under hedging reserve is retained there until the forecasted transaction occurs subsequent to which the same is adjusted against the related transaction in profit and loss account. k Warranty Warranty costs are estimated by the management on the basis of technical evaluation and past experience. For an asset or group of assets that does not generate largely independent cash inflows. l. require an outflow of resources. is made to recognize a decline other than temporary in the value of the investments. n Provisions and contingencies the company recognizes a provision when there is a present obligation as a result of past (or obligating) event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. m Investments investments that are readily realizable and intended to be held for not more than a year are classified as current investments. a disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may. the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost. such as maintenance) are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term. sold. if any such indication exists. amount of tax for the year determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). the lease term is the non. lease payments (excluding cost for services. based on a reliable estimate of such obligation. the net cumulative gain or loss recognized in shareholder’s fund is transferred to profit and loss account in the same period.e. the reduction is treated as an impairment loss and is recognised in the profit and loss account. i. the carrying amount is reduced to its recoverable amount. long-term investments are carried at cost. such assets acquired on or after 1st april. if any.
the grant or subsidy not specifically attached to a specific fixed asset is credited to capital Reserve and is retained till the attached conditions are fulfilled.703) equity shares of Rs. whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments.the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date.000. u Cash flow statement cash flows are reported using indirect method.10 each 500. Earnings per share the basic earnings / (loss) per share is computed by dividing the net profit / (loss) attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.annual RepoRt 2009-2010 D–49 .000 Issued.147 54.143 (previous year: 617.000 (previous year: 500. Deferred tax assets are recognized only to the extent that there is reasonable certainty that the assets can be realized in future. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized. however.048. the company offsets. subscribed and paid-up: 5.147 Dynamatic technologies limiteD . deferred tax assets are recognized only if there is virtual certainty of realization of such assets.10 each fully paid up * includes (i) 1.147 54. s.414.000 (previous year: 20.000 50.143) shares alloted as fully paid up pursuant to the merger with JKm Daerim automotive limited without payment being received in cash.703* (previous year: 5.390) shares allotted by way of bonus shares by capitalisation out of securities premium and capital redemption reserve.048. the same has been abolished with effect from april 1.000 250. investing and financing activities of the company are segregated. where there is unabsorbed depreciation or carry forward of losses. Fringe benefit tax Fringe benefit tax is determined at current applicable rates on expenses falling within the ambit of ‘Fringe Benefit’ as defined under the income tax act. t. Government grants and subsidies grants and subsidies from the government are recognized when there is reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with. 1961.147 54. 2009.000. the grant or subsidy relating to an asset is reduced from the cost of the asset.390 (previous year:1.000) redeemable cumulative preference shares of Rs. the current tax assets and liabilities where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.414.000 50. on a year on year basis. (Rs in ‘000) As at 31 March 2010 2 Share capital Authorised: 20. the cash flows from regular revenue generating. 54. Deferred tax asset / liability as at the balance sheet date resulting from timing differences between book profit and tax profit are not considered to the extent that such asset / liability is expected to get reversed in the future years within the tax holiday period. the company did not have any potentially dilutive equity shares during the year. (ii) 617.000 250.000) equity shares of Rs.100 each As at 31 March 2009 200. r.000 200.
737 4 Secured loans From banks Rupee term loan * Foreign currency term loan * cash credit and working capital loan # Vehicle loan^ From others # Rupee term loan Vehilce loan^ interest accrued and due * secured. by way of first charge on current assets and second charge on fixed assets ^ secured against vehicles purchased from such loans 676.006 1.690 (previous year: Rs.408 119.423 (342) (63.556 3.232 50 44.406.659 757.759) 17.137 731.888 649.476 600.544) (Rs in ‘000) As at 31 March 2009 1.As at 31 March 2010 3 Reserves and surplus capital reserve captial redemption reserve Reserve on amalgamation securities premium account: Balance at the beginning of the year add : Received during the year less : utilisation during the year Revaluation reserve: Balance at the beginning of the year (less): additional depreciation charge on revalued fixed assets hedge reserve (Refer to note 24 of schedule 20) Balance at the beginning of the year (additions)/deductions during the year general reserve: Balance at the beginning of the year (less): adjustment on account of adoption of amendment to accounting standard 11 add: transferred from profit and loss account profit and loss account 1. ranking pari passu among the lenders.737.164 2.000 15.064) 286. nil)] interest accrued and due 29.896 (6.544) 286.442 2.137 17.053 50 44. by way of first charge on fixed assets and second charge on current assets # secured.862 7.253 (previous year: Rs.500 24.11.868.496 282.039 1.478 445.638 1.294.500 24.137 17.45.081 (63.081 (342) (63.408 379 182.284 5 Unsecured loans public deposits [Repayable within one year Rs.253 17.110 10.inter corporate deposits sales tax deferral [Repayable within one year Rs.442 (previous year: Rs.270) 4.annual RepoRt 2009-2010 .000 15.739 600 739.429 731.496 10.053)] short term loans-others .538 287.521 18.104.22.1688 297. ranking pari passu among the lenders.380 451.296 (8.483 1.544) 51.066 D–50 Dynamatic technologies limiteD .111)] Foreign currency buyer's credit [Repayable within one year Rs.870 16.176 120.480 (12.314 332.429 731.14.
350 21. buildings and electrical installations includes value added on revaluation Rs.766 1.261 Dynamatic technologies limiteD .512 703.987 10.250 22 21.378 6.305 13.189 28.990 450.989 land and development (note 1 and 2) Buildings (note 1) plant and machinery (note 3) measuring instruments electrical installations (note 1) Data processing equipment office equipment Furniture and fixtures tools.35.958 73. 1.696 17.390 44 513.655 56.919 8.713 (previous year Rs.561 65 66.877) 185.808 17.111 2.694 5.990 399.990 200.034 808.377 23.529) pertaining to loss on foreign currency loans.180). GROSS BLOCK ACCUMULATED DEPRECIATION As at 31 March 2010 As at 1 April 2009 Charge for the year Deletions/ adjustments As at 31 March 2010 As at 31 March 2010 As at 1 April 2009 Additions* Deletions/ adjustments NET BLOCK FIXED ASSETS (Rs in ‘000) As at 31 March 2009 Tangible assets 200.901 7.261 175.297 56.198 12 12 1.214 33.968 1. 2.545 69.851 19.047 1.095 68.065 3.519 2.946 873.632 57.877 (previous year Rs.262 13.733 593 3 21.832 2.058 2. 17.698 49.110 16.855 incurred during the current year to make the asset ready to use.411 200.692 2.284 12.16.007 873.808 38.103 113.581 1.315 5.134 (previous year Rs.907 2.393 526 36.739 4.449 374.6.714 52.500 3.902 102.739 32. Book value of plant and machinery is net of subsidy received from the tamil nadu industrial investment corporation limited Rs.875.894 6. and has been accordingly capitalised.121 408.804 20.483 69.403 43.1.637 4.82.979 10.041 4.869 670.930 5. land and development includes leasehold land Rs.155 3.758 21.937 application software prototype development previous year notes: 1.882 11.477.11.813 38.937 12.449 2.245. net block of land and development.701 10.185 7.965 1. *includes Rs.875.256 190.116 75.001.048.465 2.228.691 14.656 1.134) 3.069 16.990 351.974 2.183.464 12.160 9.annual RepoRt 2009-2010 4. capitalised as per notification no.512 9.11.111 67.27.850 62.300 41.001.789 3.236 26.922 15.002 47.838 (previous year Rs.349 6 62.577 190.239.575 26. D–51 .062.808 13.619 8.027 14. dies and moulds Vehicles Intangible assets 35.663 342 4.779 138.899.616 24.786 54.325 747 3 149.290 2.894 200. Depreciation for the year is reflected as follows: Depreciation as per profit and loss account transfer from Revaluation reserve Depreciation capitalised for intangible assets(including cWip thereof) *includes administrative expenses aggregating Rs.gsR 225(e) dated 31 march 2009 issued by ministry of corporate affairs.523 1.437 13.
780 739. singapore Others-unquoted 921. uK.314 .453 621.999 (Rs in ‘000) As at 31 March 2009 35.annual RepoRt 2009-2010 548. less: provision for dimunition in value of investments notes: * shares pledged with state Bank of india.408) # includes lying with third parties Rs.As at 31 March 2010 7 Investments-in shares Long term-other than trade (at cost) Subsidiaries .586 (previous year: Rs.215 509.113 ( previous year Rs 3.857 35.752 (previous year: Rs.10 each fully paid up of murablack (india) ltd.nil) and lying with third parties Rs.095 77.28.599.5.767 15.215 509.8. london.599.nil (previous year: Rs.522 102.858 473.530) equity shares of Rs. for availing loan facilities by JKm global pte limited.571.544 85.7.unquoted 3.10 each fully paid up of JKm Research Farm limited 14.858 9.066 48.880 9.406 91.451* (previous year: 14.41.857 148. a subsidiary and Dm 38 limited.959 196.905 686.661 48.110 425.911 374.534 15.1.451) equity shares of singapore $ 1 each fully paid up of JKm global pte limited.530 (previous year: 921.325) 9 Sundry debtors Unsecured Debts outstanding for a period exceeding six months considered good considered doubtful other debts considered good* less: provision for doubtful debts * includes Rs 5.215 519.133 21.999 473. this company is under the same management within the meaning of section 370(1-B) of companies act.072 9.269 21. 1956 D–52 Dynamatic technologies limiteD .289 (previous year: Rs.959 664.579) due from Dynamatic limited. london and punjab national Bank (international) limited.930 (previous year: 3.072 9.215 519.609 104. a subsidiary company 8 Inventories Raw materials and components * stores and spares Work-in-progress # Finished goods notes: * includes material in transit Rs.930) equity shares of Rs.453 724.095) and in transit Rs.174 115.571.
103 52. under companies act.851 122.533 24.935 28.041 2. considered doubtful) advances recoverable in cash or in kind or for value to be received less: provision for doubtful advances note: * Due from companies under the same management within the meaning of section 370(1-B) of companies act.139 109.383 700.558 7.788 11.293 953 953 337.384 8.415 52.558 324.927 1.1956.888 8.505 65.550 12.857 28.499 23.511 2.946 698.082 18. excise and sales tax authorities loan to subsidiary company* other deposits interest accrued* prepaid expenses Forward contract receivable minimum alternative tax credit entitlement current tax (net of provision) Fringe benefit tax (net of provision) (Unsecured.028 31.963 24. 11 Other current assets unbilled revenues 399 24.145 16.313 14.122 337.293 13 Current liabilities acceptances sundry creditors: -total outstanding dues to creditors other than micro and small enterprises advance from customers accrued salaries and benefits Deposits received from dealers Forward contract liability (refer to note 24 of schedule 20) interest accrued but not due unclaimed dividends other liabilities 264.594 (Rs in ‘000) As at 31 March 2009 605 53.550 72.082 2.annual RepoRt 2009-2010 .1975.133 5.576 14. 1956 (Refer to note 26 of schedule 20) 73.110 12.560 D–53 Dynamatic technologies limiteD .736 64.736 953 953 324.475 73.510 8.186 9.756 3.590 2.229 2.103 13.As at 31 March 2010 10 Cash and bank balances cash on hand Balance with scheduled banks: current accounts Fixed deposits# margin money accounts* unpaid dividend accounts * under lien against bank guarantees # held under section 3a of companies (acceptance of deposits) Rules.192 3.165 2.468 3.625 17.743 342.935 12 Loans and advances (Unsecured.857 37.769 236. considered good except as otherwise stated) advances recoverable in cash or in kind or for value to be received* Balance with customs.064 354.985 37.072 13.021 1.051 27.
373 15.986) (4.673 4.800 123.005 35.690 336.916 For the year ended 31 march 2009 3.704 1.Buildings .113 7.499 27.788 1.102 3.009 683 36.305) (4.230 15.190 23.709 795 57.301) proposed final dividend (including tax thereon Rs 2.922 7.713 5.045 379.139 13.406 8.999 279 15.59 previous year: Rs.022 23.644.551) 8.117 previous year: Rs.3.887 318.453 1.845 15.542 5.958 29.839) miscellaneous income Cost of materials consumed Raw materials and components consumed (increase) in work in progress (increase)/decrease in finished goods (increase) in excise duty Personnel expenses salaries.908 16 17 18 D–54 Dynamatic technologies limiteD .675) 1.913 328 1.637 1.251 18.122 1.828 45.848 45.895 76.818 507.380) 212 1.612 2.223 6.838 9.853 (12.034 129.020 100.474 24.598 683 50.565 38.nil (previous year: Rs.annual RepoRt 2009-2010 .309 9.452 9.119 5.002 8.690.055 43.751 1.506 1.034 5 22 2.824 1.827 12.537 49.409 6.907 15 Other income interest on bank deposits (tax deducted at source Rs.800 15.954 4.829 12.2. wages and bonus expenses contribution to provident and other funds staff welfare Other operating expenses consumption of stores and spares power and fuel carriage outward packing expenses (net) Rent Rates and taxes insurance Repairs and maintenance .801 (903) 1.275 35.791 3.644 1.343 (12.538 9.639.666 30.712.052 25.6.559 3.295 (Rs in ‘000) As at 31 March 2009 282 4.550) interest on loan to subsidiary/ related entities interest others lease rent sale of scrap (net of excise duty Rs.170 6.plant and machinery .624 51.836 10.175 5.939 5.As at 31 March 2010 14 Provisions Wealth tax gratuity compensated absences Warranty interim dividend (including tax thereon Rs.502 41.1.505 404.others security charges advertisement and sales promotion cash discount travelling and conveyance communication printing and stationery legal and professional fees Directors sitting fees exchange loss (net) Donations Bad debts/ advances written off provision for bad and doubtful debts/ advances loss on sale of fixed assets Warranty miscellaneous For the year ended 31 March 2010 1.672 19.458 6.459 443.761 (previous year: Rs.963 1.
Auditors’ remuneration (included in legal and professional charges) statutory audit fees* (includes limited review) other services out-of-pocket expenses Total For the year ended 31 March 2010 For the year ended 31 March 2009** 3.044 187.852 14.507 600 1.500 129 7. Dynamatic technologies limiteD .223 74.570 10.659 228.970 15.296 741.946 For the year ended 31 March 2010 9. **amount paid to previous auditor.125 9.040 676 564 10.232 As at 31 March 2010 104. Capital commitment Particulars estimated amount of contracts to be executed on capital account (net of advances) and not provided for 2. based on the actuarial valuation. Notes to the accounts 1.043 20.200 2.344 5.829 (the above amount is excluding service tax) *includes Rs nil (previous year: 800) paid for previous year.286 3.519 For the year ended 31 March 2009 7.627 As at 31 March 2009 65. 4. Contingent liabilities the details of contingent liabilities are as under: export obligation corporate guarantee income tax matter under dispute 29.527 177.480 76.046 22.858 1.annual RepoRt 2009-2010 D–55 . Particulars of managerial remuneration salaries and allowances (including bonus) contribution to provident fund perquisites Total the remuneration does not include gratuity and compensated absences as the same has been provided.For the year ended 31 March 2010 19 Interest and finance charges on term loans on cash credit Bank charges less : interest capitalised as per accounting standard 16 138.587 214.794 813.700 475 169 4.280 43.265 (Rs in ‘000) For the year ended 31 March 2009 89. determined for the company as a whole.
576 16.457) Valves 32.742.240 the company is exempt from the licencing provisions of the industries (Development Regulation) act.763 (345. closing balance 305.973 (29.788) As at 31 March 2010 (Rs in ‘000) As at 31 March 2009 (236.713). mt nos.380) 10.829 (previous year Rs 13.333 17.177 sales 5.625 (1.457) (-) (-) 396.973 (29. Figures in brackets relate to previous year.913 (8. Deferred taxation Deferred tax liability included in the balance sheet comprises the following: Particulars Deferred tax liability: excess of depreciation allowable under income-tax act.223 (230.259.950) (-) 9.708 (23.830) Castings (-) 1.522. lease rental expense under operating leases during the year was Rs 18. 1951.744.547 683 Particulars gross block accumulated depreciation Depreciation for the year 6.830) (-) (-) 32.763 (345.063 2.755) 3.annual RepoRt 2009-2010 D–56 . note: 1.787 3.000 (400.625 (1. 1961 Deferred tax assets/liability (net) 7. 3.120 nos) transferred to automotive components (auc) and hydraulics and precision engineering division (hpe). residential facilities and vehicles. ** production of the aluminium castings (ac) includes 994.284.123) Actual Production Gear Pumps 396.718.022. 1961 over depreciation provided in financial statements Deferred tax assets: provision for gratuity.986 nos (previous year: 1.582 (209. Details of electricity generation and utilization at wind farm division for the current year (previous year – nil) is provided below: Details Units (nos) production during the year 17.901) (245.732 5. the company has entered into operating leases for machines.607) 9. Capacity and production Unit nos.333 18.755) (-) 1.621 (8.5.480 captive consumption 11.665) 4.114 567 As at 31 March 2009 21. lease rental income under operating lease during the period was Rs 683 (previous year Rs 683).380 (4. Installed Capacity* 400. compensated absences and bonus provision for doubtful debts and advances Disallowances under section 40(a) / 43B of income tax act.650 (10.469.000) 4. Lease transactions a) b) the company is obligated under cancelable operating leases for office. accumulated depreciation and the depreciation charge for the year ended 31 march 2010 and 31 march 2009 for the machinery leased by the company are as set below: (Rs in ‘000) As at 31 March 2010 21.748. Dynamatic technologies limiteD .223. the gross carrying amount.775) Class of Goods hydraulic and precision engineering aluminium castings (melting capacity)** automotive components Components 24. this being a technical matter.877 7.557) * as certified by the management and accepted by the auditors.
720) 321.374) 231.826) 194.045 (1.644.742 (3.764) Closing Stock Quantity Value (Nos.080) 22.) 13.314) 5.annual RepoRt 2009-2010 D–57 31 march 2009 Quantity Value 432 11.570 (157.911) HPE: hydraulic gear pump Valves components AC: castings AUC: case Front Water pump intake manifold Rocker cover exhaust manifold Rocker arm .340) 176. (iii) Figures in brackets relate to previous year.159) 115.314 (17.488) 1.254) 32.532 (8.352 (238.307.550 498.701 643 16.577 (819) 4.) 400.727 (17.985 (6.705) 549.677 (19.461 (3.754) 117.885) 24. (ii) the individual values of these are less than 10% of turnover.654) 9.045) 2.870 (22.641 (3. Raw materials and components consumed: Particulars aluminum extrusions castings steel for forgings components aluminum alloy others* Unit mt nos mt nos mt 31 March 2010 Quantity Value 414 13.046) 2.753) 147 6. write-off.435) 2.764 (8.010) 380 13.301) 174.958) 6.677) 23.430) 2.917) 31.343 *the individual values of these are less than 10% of turnover.351 (12.758 75.038 (4.263 (previous year – Rs nil) during the year.376 2.627 (195.911 (80.558) 871 (1.560.174 1. (v) turnover does not include sale of electricity units aggregating Rs 10.826 (29.507 (8. (iv) turnover is gross of excise duty.969 (755.199 (223.351) 1.a&B Others [note (ii) below] notes: (i) closing stock is after adjustment for shortage / excess.785) 128.314 (13.926 (2.449) 77.201 716.734) 6.774 (9.524 (467.142 294.401 374.307) 142 7.853 .614 466 14.312) 461.616 1.946) (126) 8.558 (987) 1.722) 11.) 17.925) Turnover Quantity Value (Nos.035.917 (22.968) 505.335 (38.507) 4.954) 3. 9.718. Particulars of Opening and Closing Stock and Turnover: Class of Goods Opening Stock Quantity Value (Nos.307 (12.431) 5.430 (4.958 (7.050.998) 254.430 (3.655 290.110 (85.711) 3.770) (115) 13.908) 1.644 432.905) 3.234.097 (3.878) 85.010 (36.577) 3.812 (14.722 (1.585 205.700 (1.650) (55) 5.353 (113.294 (3.354 (283.237.222 48.957) 38.753 (16.577 314.933) 809.188 (5.047) 388.141 (25.717) (385) 14. etc.798 (296.870 (476.142.236 (449.360) 444.712.563 (5.621 (6.435 (763) 3.778 (490.130 (139.986) 2.789 (344.429 41.800 1.050 (448.(Rs in ‘000) 8.449 (1.512 (424.621) 626 24.221) 8.625 65. Dynamatic technologies limiteD .
096 As at 31 March 2010 For the year ended 31 march 2009 424.965 127.358) 50.609 32.300) 45.annual RepoRt 2009-2010 .300 (49.358 39.810 41.452 5.206 2.853 36% 64% 100% 11.866) 473 49.446 (3. Change in defined benefit obligation opening defined benefit obligation current service cost interest cost Benefits settled actuarial (losses)/gain Closing defined benefit obligation Change in plan assets plan assets at the beginning of the year.879 2.148 8% 8% 5% 58 (41.300 3.018 6. basis Raw materials and components stores and spares capital goods For the year ended 31 March 2010 472.866) (215) 50.659 129.815 (2.564 121.439 1.309 6.446) 5.10.100. at fair value expected return on plan assets (estimated) contributions Benefits settled actuarial gain/(losses) Plan assets at the end of the year.020 % of total consumption 1% 99% 100% 12.257 1.446 (688) (3.332 As at 31 March 2009 13. Details of imported and indigenous stores and spares consumed For the year ended 31 March 2010 Value imported indigenous 1.446 8.I. D–58 Dynamatic technologies limiteD .221 1. Gratuity plan * the following tables sets out the status of the funded gratuity plan as required under revised as 15 ‘employee benefits’.788 8.165 542.624 % of total consumption 1% 99% 100% For the year ended 31 march 2009 Value 1.480 116. Details of imported and indigenous raw materials and components consumed Particulars imported indigenous Value 486.609 4. 1972 as applicable as at the balance sheet date and accordingly the maximum payment is restricted to Rs 350.311 7% 7% 6% 58 *the company accrued gratuity in accordance with the provisions of the payment of gratuity act. Value of imports on C. included in “Employee benefit expense” Assumptions at the valuation date Discount factor expected rate of return on plan assets expected rate of salary increase Retirement age 45.879 2.749 18.122 1.629 (2.810 1.090 492.609 5.687 1.788) 6.343 31 March 2010 % 30% 70% 100% (Rs in ‘000) 31 march 2009 Value % 612. at fair value Reconciliation of present value of the obligation and the fair value of the plan assets Fair value of plan assets at the end of the year present value of the defined benefit obligations at the end of the year Asset/(liability) recognised in the balance sheet Gratuity cost for the period current service cost interest on defined benefit obligation net actuarial (losses)/gain recognised in year Return on plan assets Total.F.628 (408) (2.456 123.644.836 3.712.939) 22 45.414 1.836 3.005 (3.939) 430 41.158.000.
annual RepoRt 2009-2010 . 15. Related party transactions: Description of relationship parties where control exists subsidiaries Name of related Party udayant malhoutra (um) i) ii) iii) iv) i) ii) iii) iv) v) vi) vii) viii) ix) x) a) b) c) d) a) b) c) % of voting power .414.197.571 8. 10 each the company has no potential dilutive equity shares.executive Director and chief marketing officer (Bs) n Rajagopal.127 1.652 9. uK (Dm 38) Dynamatic ltd.528) 4.292 17.54.president and group chief Financial officer (Vs) B seshnath .392 7.095 1.999 33.827 (6. uK (DluK) JKm global pte limited.722 57.o. singapore (Jgpl) JKm Research Farm limited (JRFl) christine hoden (india) private limited (chipl) greenearth Biotechnologies limited (gBl) JKm holding private limited (Jhpl) JKm human Resources private limited (JhRpl) JKm offshore (india) private limited (Joipl) primella sanitary products private limited (psppl) udayant malhoutra and co private limited (umcpl) Vita private limited (Vpl) Wavell investments private limited (Wipl) pramilla estates private limited (pepl) udayant malhoutra. Earnings per share calculation of basic and diluted shares used in computing earnings per share: profit after tax number of weighted average shares considered for calculation of basic earning per share Basic earnings per share of face value of Rs.702 5. set out below is the movement in provision balances in accordance with as 29.37 2. executive Director and chief operating officer (nR) pramilla malhoutra (pm) udita malhoutra (uDm) Barota malhoutra (Bm) D–59 companies over which key management personnel or relatives of such personnel are able to exercise significant influence (other related entities) Key management personnel (Kmp) executive Directors Relatives of Kmp Dynamatic technologies limiteD .020 368.614 263 67.373 8.963 19. chief executive officer & managing Director (um) V sunder .61 Dm 38 limited.708 280.672 2.655 (52) (230) 2.636 261.726 341.375 5.98 5. ‘provisions.B. contingent liabilities and contingent assets’: Provision for warranty: opening balance provision utilized during the year Closing balance 16.013 10.174 48. basis interest others 108. Expenditure and earnings in foreign currency Expenditure in foreign currency travelling legal and professional charges interest others earnings in foreign currency exports on F.165 377 26.703 19.(Rs in ‘000) particulars For the year ended 31 March 2010 For the year ended 31 march 2009 14.373 8.
115 714 2.Joipl .Joipl .DluK Purchases* .954 - - - - 7.007 2.Jgpl .DluK Other income Interest .099 2.037 1.JRFl .JhRpl Recharges received .um .Jhpl .Vpl .nR .nR .DluK .Bm .Jgpl Expenses Rent .Vs .DluK Managerial remuneration .543 300 1.Bs Recharges made .205 622 926 180 2.048 - 1.others Final dividend .150 2 118 482 - 175 224 39.others 13.205 652 986 180 5.um .930 555 - - - 3.(Rs in ‘000) the following is the summary of transactions for the year ended 31 march 2010 and balance outstanding as at 31 march 2010 with related parties: 2010 Related Party Subsidiaries Other Related Key Management Entities Personnel Relatives 2009 Subsidiaries Other Related Key Management Entities Personnel Relatives Sales* .910 26.124 3.921 - 2.Bm .072 2.594 3.400 300 - - 4.053 2.annual RepoRt 2009-2010 .umcpl .Dm 38 .600 300 - 4.200 300 32.Jgpl Dividend paid Interim dividend .636 540 1.gBl .Jgpl .674 1.417 2.um .515 - 1.963 - - - 8.008 1.Jhpl .200 1.15 - 2.013 691 - - - 9.089 - 480 2.uDm Salaries and wages .418 - 12 7 D–60 Dynamatic technologies limiteD .176 1.341 3.pm .403 - 27 1 7 0.Jhpl .umcpl .364 1.
547 3.JRFl Balances outstanding Payables .213 1.579 4.Jgpl Advances recovered during the year .624 - - - 17.Jgpl Contingent liability Corporate guarantee outstanding . hand pumps.Jgpl .469 16.Jgpl . precision aerospace and components Wind farm (“WF”) .032 362. intake manifolds and exhaust manifold aerospace (“asp”) .DluK . water pumps.247 109.others Receivables .500 - - - - - - 408.JRFl -Dm 38 Loans receivables . lift assemblies.782 - 19 - 148.088 2.comprising castings for automotive components automotive components (“auc”) . Segment information Information about Primary Business Segments: the business segment has been considered as the primary segment.450 - - - *inclusive of all applicable duties and taxes 18.962 252.DluK .generation of power through wind energy Dynamatic technologies limiteD .gBl Investments made during the year . valves and powerpacks aluminium castings (“ac”) .910 122.200 - - - 167.533 3.Jhpl .Dm38 - - - - 257.um .000 - - - 346 3.umcpl . the company is organized into five main business segments.028 423 - - - 14.comprising airframe structures.113 9.(Rs in ‘000) 2010 Related Party Subsidiaries Other Related Key Management Entities Personnel Relatives 2009 Subsidiaries Other Related Key Management Entities Personnel Relatives Advances paid during the year .633 - - - - - - - - - 18.469 3.Jgpl .784 340.Jgpl .JhRpl .comprising case front.261 2. namely:• • • • • hydraulic and precision engineering (“hpe”) .Joipl .525 2.annual RepoRt 2009-2010 D–61 .576 5.910 - - - 262.659 480 - 3.Dm 38 Loans repaid to the Company during the year .DluK .376 284.comprising hydraulic pumps.
085 157.375 Total 3.978 539.515 (1.150 20.432 483.804 (Less): interest expense Profit/(loss) before taxation 148.741) 76.329 1.085.709 13.030.(Rs in ‘000) segment revenue.909) 26.704 14. Information relating to business segments for the year ended 31 March 2010.473 (229.profit/(Loss) (Less): interest expense Profit/(Loss) before taxation (Less): provision for taxation Net profit after tax (iii) Other information Segment assets Segment liabilities Capital expenditure Depreciation Other non-Cash expenses B.747) 108.449 (150.103 27.595 (14.282.683 (214.647 (289) 579 (579) 9.043 112.275 (172.807 2.869 461.275 (88.EBIDA-profit/(loss) 185.601) 90.351.572 23.818 44.603 4.627 (109) (336.010 47.265) (203.139 446.736 20.346 (185.463 (441) (406.268 67.439 (20.EBIDA-Profit/(Loss) (Less): depreciation Segment result .446 85.388 42.152 (14.751 3.annual RepoRt 2009-2010 .381 368.644 (24.094 824 320.712) 49.069 1.340 88. Primary segment reporting (i) Revenue External .263 41.371) 3.647) 17.502) 17.440 23.112 (63.894 10. Primary segment reporting (i) Revenue External .909 - 711.900.449 1.185) Segment result .948 500.576 (1.418 (31.748.485 865.122 3.034 99.894 10.282.451 598.894 (214.148 20.272) 10.265) 139.410) 48.869 4.702 4.026.663 8. Particulars A.593 186.155 177.494 42.232 (ii) Results Segment result .124.601 4.891 38.695) (3.523 (42.658.043 735.844 - Information relating to business segments for the year ended 31 March 2009. Particulars Revenue carrying amount of segment assets capital expenditure D–62 31 March 2010 Outside In India India 2.162) 17.576) 147.449) 20.708 13.545 (265.695 - 13.687) Inter-segment sales and services (179) Other income 15.485 865.043 357.415.945) 42.770 157.141 9.931 63.243 26.295 - 3.239 2.200 24.120 2.930 (85.820 20.170 (8.120) 289.577 4.927 32.788 Information relating to geographical segment for the year ended 31 March 2010.447 1.676 993.989 (Less): depreciation (37.351.100 105.381 185.585.601) 23.243 10.770 2.221 110.708 177.761.142.485 3.175 8.147 1. assets and liabilities have been accounted for on the basis of their relationship to the operating activities of the segment and amounts allocated on a reasonable basis.124 1.895 24.062.536 27.813 8.282.804 (Less): provision for taxation Net profit after tax (iii) Other information Segment assets 925.490 175.sales and services Less: excise duty Inter-segment sales and services Other income Total revenue (ii) Results Segment result .357 Less: excise duty (77.381 31 March 2009 outside in india india 2.540.profit/(loss) 148.039.770 157.292 total 3.601 865.054 Dynamatic technologies limiteD .185 Other non-cash expenses (1.894 10.026.674 (1.174 4.271 139.494 52.108) 349.060) 476 157.244) 108.124) 409.678) 12.sales and services 1.175) 105.894.260) (406.759.525) 319.601 (20) 2.708 13.748 (378.351.261) 10.487 (110.570) 18.822.002.522 190.653 898. Secondary segment reporting HPE AC AUC ASP WF Unallocated Total 1.054 280.225 Capital expenditure 34.201 759 14.324 Segment liabilities 185.326 Depreciation 37.438 70.597 (24.229 (38.534) (378.679 238.740 Total revenue 1.945 49 314.324.663) 353. Particulars HPE AC AUC ASP WF Unallocated Total A.039.516 318.100 158.978 4.141 5.840 193.893 72.054 172.
558 as at 31 march 2009 6. the movement in the mark to market subsequent to the designation as a cash flow hedge aggregates Rs. Dues to Micro.392 73.57 million) as of 31 march 2010. the company has not received any claim for interest from any supplier under the said act.5. 1961. the company’s management believes that the transfer pricing legislation will not have any impact on the financial statements. the cash flow hedge is expected to occur in the next one year.420 17.annual RepoRt 2009-2010 D–63 .126 37.064. the management has initiated the process with bank for relaxation. as defined under micro.344 315. particularly on the amount of tax expense and that of provision for taxation.587 as at 31 march 2009 158. the ministry of micro.657 673. Small and Medium Enterprises the management has initiated the process of identifying enterprises which have provided goods and services to the company and which qualify under the definition of micro and small enterprises. accordingly. small and medium enterprises Development act. Forward contracts the company has outstanding forward contracts aggregating to usD 3. small and medium enterprises has issued an office memorandum dated 26 august 2008 which recommends that the micro and small enterprises should mention in their correspondence with its customers the entrepreneur’s memorandum number as allocated after filing of the memorandum. 24. the same has been designated as a cash flow hedge with effect from 01 april 2008 applying the hedging criteria.384 25. 23. the details as at balance sheet date are as follows: Particulars outstanding contract value in foreign currency (usD) equivalent indian Rupees (inR) mark to market value As at 31 March 2010 3. the company’s management is of the opinion that its international transactions with related parties are at arm’s length and the company is in compliance with the transfer pricing legislation.623 For the year ended 31 march 2009 70. the mark to market gain on this contract at the date of designation of the hedge aggregating Rs. Transfer Pricing the company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the income-tax act.000 135.857 2. Disclosure pursuant to Accounting Standard 7 (revised).494 (after discounting) has been credited to the profit and loss account. Dynamatic technologies limiteD . Cash flow hedge the company has hedged a part of its future foreign currency receivables to mitigate its foreign exchange fluctuation risks. when the effect in the profit and loss account would be accounted for. Foreign currency exposures as at 31 march 2010 that have not been hedged by a derivative instrument or otherwise: Particulars Receivables payables 20. 22. these financial statements have been prepared on a going concern basis considering support from its bankers in the future at existing level. 2006.006 28.395 2. 12.81 million (previous year usD 5.886 cost incurred and recognized profits net of recognized losses unbilled revenue customer advances Retention amount due from customers 21. Construction contracts Particulars For the year ended 31 March 2010 70. although there has been breach of few covenants of some loans for which.100 309.623 As at 31 March 2010 250.(Rs in ‘000) 19.
26. the following are the year end balances and maximum amount involved in respect of companies under the same management as defined under section 370 (1B) of the companies act, 1956 included in loans and advances Particulars Balance as at 31 March 2010 Dm 38 limited, uK JKm global pte limited, singapore JKm global pte limited, singapore (loan account) JKm Research Farm limited 3,576 109,028 9,247 2009 2,910 14,547 122,533 4,261 Maximum balance during the year ended 31 March 2010 2,910 19,863 122,533 11,627 2009 2,910 267,933 122,533 4,551
27. the current year numbers are not comparable with the previous year numbers as the company acquired wind farm division in the previous year. 28. previous year’s figures have been re-grouped/ re-classified, wherever necessary, to conform to the current year presentation. 29. previous year audit was carried out by a firm other than B s R & associates.
for and on behalf of the Board of Directors
Dr. K APRAMEYAN Director
Air Chief Marshal S.KRISHNASWAMY (Retd.) Director
S GOVINDARAJAN Director
GOVIND MIRCHANDANI Director
MALAVIKA JAYARAM Director
N RAJAGOPAL executive Director and cto
B SESHNATH executive Director and cmo place : Bangalore Date : 22 July 2010 N RAM MOHAN Financial controller
V SUNDER president and group cFo
UDAYANT MALHOUTRA ceo and managing Director
G HARITHA gm- compliance & company secretary
Dynamatic technologies limiteD - annual RepoRt 2009-2010
BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE
1. Registration Details Registration no : Balance sheet Date : 2. Capital Raised During the Period : (amount in Rs. thousands) public issue Bonus issue placement on merger 3. Position of Mobilisation and Deployment of Funds : (amount in Rs. thousands) total liabilities 3,548,706 (including net deferred tax liability Rs. 209,775) Source of Funds paid up capital Reserves and surplus Deferred tax liabilities Application of Funds net Fixed assets net current assets accumulated losses 4. Performance of Company : (amount in Rs. thousands) turnover (including other income Rs 49,751) profit/(loss) Before tax earning per share Rs 5. Generic Names of Four Principal Products/Services of Company (as per monetary terms) items code no product Description services Description 8413.19 hydraulic gear pumps 8479.10 power pack pump unit 870790.01 automotive components 8481.80 Valves 3,026,978 139,418 19.98 total expenditure profit/loss after tax Dividend Rate% 2,887,560 108,174 75% 2,267,672 771,177 nil investments miscellaneous expenditure 509,857 nil 54,147 1,406,538 230,901 secured loans unsecured loans 1,737,888 119,232 total assets 3,548,706 nil nil nil Rights issue private placement nil nil l85110Ka1973plc002308 march 31, 2010 state code 08
for and on behalf of the Board of Directors
Dr. K APRAMEYAN Director
Air Chief Marshal S.KRISHNASWAMY (Retd.) Director
S GOVINDARAJAN Director
GOVIND MIRCHANDANI Director
MALAVIKA JAYARAM Director
N RAJAGOPAL executive Director and cto
B SESHNATH executive Director and cmo place : Bangalore Date : 22 July 2010 N RAM MOHAN Financial controller
V SUNDER president and group cFo
UDAYANT MALHOUTRA ceo and managing Director
G HARITHA gm- compliance & company secretary
Dynamatic technologies limiteD - annual RepoRt 2009-2010
this page has been intentionally left blank
Dynamatic technologies limiteD - annual RepoRt 2009-2010
84 (138.48) (115. In Lacs Year ended 31. 2010 were as follows: Sales EBITDA Interest Depreciation PBT (Before Forex impact) Unrealised Forex Gain/(Loss) PBT (After Forex impact) Tax charge/(credit) Profit After Tax 8.60) (451.2009 Rs.03.91 297.UK Particulars Year ended 31.03. did we see order levels begin to recover slightly.87) he Swindon plant began the new financial year in the midst of one of the most severe recessions in recent history.40 (1.89) 289.38) (1. This level of very low order intake continued through the first 6 months of 2009 and only towards the end of September ’09.26 328.d y n a m aT I c l I m I T e d . u k Review of Business Swindon 2009-10 Dynamatic Limited.905.114. many initiatives that had commenced during the previous year were carried over with additional actions.88) (312.2010 Rs.95 (1. Very much in line with the Global downturn. the Swindon business saw a continuation of an order book which was down by approximately 30% on order levels in 2008.90 146.501.294. whilst also looking at broadening our overall customer base to try and increase our market share in the hydraulic gear pump business. In Lacs The Financial Results of the company for the year ended 31st march. Our response to this on-going situation was to continue to look at all ways to further reduce our fixed costs.80 (1.540. T . In order to cut costs and minimise the financial impact on the business.85) (335.25) (206.94 320.317.20) 403.63) 8.
This has led to us recommencing supplies to some of our previous Oem customers such as cnH in Brazil and mexico and also John deere in the u. which give us cause for cautious optimism as we move forward. principally from South america and Taiwan. the Swindon business needs to move into both new markets and products to increase market share and also to increase overall sales. This product has enabled us to directly compete with low cost copy products. which are some of our main threats. This is via Business Improvement Techniques programs which will also drive and improve efficiency hence reducing business costs. a completely new site security system. the improvement has been sustained ensuring continuity of full time work for all employees and the final quarter sales of over £3 million (Rs. Waterloo. The launch of the Gold Value product range. the order book has stabilised at improved levels compared to last year. reduction in the business insurance costs without any increased risks etc. we have produced and provided prototype units for both these customers and are expecting production orders commencing fourth quarter of 2010/11. which led to the removal of the double day shift patterns in June ’09 and showed further savings. We have continued through this period to focus on training and improving the skills and flexibility of our employees through fully government funded national Vocational Qualifications (nVQ’s). There have also been many other savings made such as working with the local council to defer rent payments and also the achievement of a significant rate rebate on unused space.. a turning point in the year came by the end of September ‘09 when the order book levels had recovered sufficiently to enable the workforce to return to full time work. although the order book has not yet returned to the previous levels. predominantly for cnH. In order to support this business growth. has proved to be a success and we are also selling a version of this product range to the independent distribution network. we continued to .S. The entire workforce has continued to show tremendous resilience and support for the company as the wage reduction has meant financial hardship for many of them. as we look today. The order book situation remained at very reduced levels through the first 6 months of the year from april to September.There have been many reductions in our fixed costs with the biggest impact being felt by the entire workforce who continued to work for just 3 weeks per month on 75% salary in line with the order book requirement. There are also many other product developments and opportunities that we are currently involved in with these and other key customers. as we have mentioned. 2100 lacs) was the highest quarter sales for over six quarters. One of these initiatives has recently resulted in new business with GIma in France which will be Future Outlook as we worked through this very difficult period. supported by our drive in lean processes. actively pursue additional business opportunities with some of our key Oem customers such as ZF Passau and John deere. Quality and continuous improvement initiatives. have also continued to improve our overall product quality and performance.
employees are being retrained and engaged to become compliant with the latest Quality requirements in line with the recent audits undertaken with Terex and John deere.500/ annum across 4 model ranges by commencing initial production end 2010 with full volumes in the 2nd quarter of 2011. The Swindon team is in the process of upgrading their Quality Systems and certifications with accreditation recently received from Terex and a further audit due later this year from John deere. However. over the next year and beyond. It has become evident over the last very difficult year that the initial aim for the Swindon plant was to survive and ‘weather the storm’ initially and then consolidate for the future by focusing entirely on growing the hydraulics business and sales. The directors and the entire Swindon Business Team are very confident in the future outlook for the Swindon plant although being realistic that the growth in Hydraulics for the remainder of 2010/11 will be difficult. In addition. moving into full production in early 2010. Raymond Keith Lawton executive director and chief Operating Officer ZF Passau again following provision of prototype units we have production volumes of 8000/ annum across 7 model ranges due to commence in the 4th quarter of 2010/11. the business is well positioned to take advantage of any new opportunities. 3. This new product commenced with pre-production supply in late 2009. . we are also well positioned now to take advantage of any aerospace business opportunities as they arise and that too will have a significant and positive impact on our company’s future growth. Swindon Business unit has trialed some of the available three axis machines to make parts for aerospace applications. This space could be utilised to install additional machinery or for kit marshalling parts for aerospace requirements. However the following steps have been taken to identify synergies across the units of the group and to effectively harness such synergies so as to best serve the interest of all stakeholders : 1. test and logistics expertise out of the Swindon plant. 2.for the supply of a transmission cover assembly and will be a business that fully utilises the lower cost supply chain from India and the assembly.ft of space with a complete bay now free.000 sq. In line with the initiatives that commenced last year. 4. again due to the difficult economic climate. To summarise these activities which will come to fruition beginning the fourth quarter 2010/11 : Terex currently beginning prototype supply on 2 new cast Iron pumps and quoting complete product range supply of 8200 commencing last quarter 2010/11 and ramping up throughout 2011. John Deere Waterloo Following provision of prototype pumps we now have production volumes anticipated at 5. Gima Production order now received and initial volumes due to commence January 2011 with a volume of 2000 units increasing to 14000/ annum in 2014. the longer term vision of diversifying the Swindon business unit into aeronautical engineering has been put on hold over the last year. Swindon Business unit has re-organised the plant and consolidated the layout to ‘freeup’ 120.
DIRECTORS mr. udayant malhoutra mr. Ian Patterson mr. michael John Handley mr. Bristol chartered accountants & Statutory auditors. Tony atkins Fcca AUDITORS kPmG llP. london REGISTERED OFFICE cheney manor. Wiltshire Sn2 2PZ. england . Raymond keith lawton -----chairman director director Technical director & chief Technology Officer executive director & chief Operating Officer FINANCE HEAD AND COMPANY SECRETARY mr. V Sunder mr. Swindon. Bristol BANKERS State Bank of India.
37 257.236.67 422. were as follows: Period ended 31.47 730.90 2. UK Particulars Year ended 31. UK Review of Business Bristol 2009-10 Dm 38 Limited.4 million pa). airbus Bremen.2010 Rs. This year has seen an increase in quotation activity in general.82 182.oLDLanD aeRosPace LimiteD. customers are actively ‘bench marking’ existing work packages to make internal savings with their suppliers. Holding company of Oldland aerospace limited. aScO. In Lacs 0 ldland aerospace ltd had a very busy year in 2009/10.257.50 22. mainly attributed to winning a proportion of the Spirit a320/a321 flap track package of work (£2. Flight Refueling Sales EBITDA Interest Depreciation PBT (Before Forex impact) Unrealised Forex Gain/(Loss) PBT (After Forex impact) Tax charge/(credit) Profit After Tax 6.96 22.57 307. for the year ended 31st march. we have also established excellent new business contacts with Spirit.75 (64. but we do feel that due to the current market constraints. 2010.22 549. 1 x turning lathe. and acquisition of 3 x new 5 axis machine Tools – (Hermle c30u with erowa robots -12 pallet loading).19 1.03.27 218. In Lacs The Financial Results of dm 38 limited.54 . which were all installed successfully within a very tight timeline.10 11.92 319.70 109. To facilitate this package we required the installation of a new mezzanine floor.03.665.25) 45.25 719. although this process has been very time consuming and some discounts have been given to retain existing business.2009 (6 months) Rs.
we have been proactively streamlining internal processes to increase profit margin by introducing improved methods and concepts of manufacturing and working overtime only when required. Thyssenkrupp. The Oldland aerospace ltd’s vendor rating from Gkn yeovil (our largest supplier c130J & Future lynx) is 98. and the Oldland Production manager and chief Inspector visited Bangalore site to experience existing a320/321 flap track processes first hand. In September 2010. Rolls Royce.during the above activities. The Spirit contract will also greatly improve the customer balance. we will have 2 engineers from Bangalore for a three month training exercise to further enhance business synergies. agusta Westland & airbus Spares and feel positive that further orders will follow in time. Honeywell. we feel the increased quoting demand on the business team has pulled them together even further to create a very strong working entity. the addition of new business from Spirit has helped considerably. which was recently praised at the airbus Bremen/aScO business pitch in June 2010. There has however been increased activity with site movement. when we were informed by head of procurement that our business presentation was ‘excellent and convincing’.13% which is a great achievement due to difficult working constraints . and although business is very competitive. Over and above existing normal working practices throughout year. and Spirit will be the first to fully utilize this in the coming financial year. installation and set-up of machine tools and development with the new Spirit project which cannot be invoiced until the coming financial period. due to the current uk/World economic climate. Oldland aerospaceTm and dynamatic aerospace® have fortnightly conference calls to update internal teams. Our relationship with Gkn (all sites) is good but we actively seek new opportunities with new customers to minimize business risk in the coming year. the Oldland staff morale is optimistic and positive at the present time. Future Outlook We continue to proactively promote the ’yellow Brick Road’ strategy to all customers. airbus Spares have also expressed interest in utilizing some space (cobham).
Bristol chartered accountants & Statutory auditors. Bristol BANKERS Punjab national Bank (International) limited. Oldland aerospaceTm has experienced a wealth of change and activity during the year and all departments have worked extremely hard to maintain business levels and margins. We are proud of our efforts and look forward to a busy and prosperous year ahead. udayant malhoutra mr. Raymond keith lawton mr. James tucker. V Sunder mr. existing aircraft build rates remain the same at the current time but are predicted to slightly increase during the coming financial year. in a secured location within the Swindon site for quarantined kit marshalling for customs signoff. england . before being shipped out to France. The Gkn Trent package of work that was to be taken in house by Gkn Filton Bristol from July 2010 has now been extended to September 2010. James Tucker ms. airbus would need to grant/sanction site approval once quality systems are in place for this to happen. On the whole. london REGISTERED OFFICE Jarvis Street. director claire tucker. Barton Hill. Bristol BS5 9TR. with a 10% price increase on labour only for the 2 months. claire Tucker ------ chairman director director director director FINANCE HEAD AND COMPANY SECRETARY mr. We will see the first Spirit parts being delivered by end august 2010 and will be up to full rate by October/november 2010. Tony atkins Fcca AUDITORS kPmG llP.There are future sales prospects within the aviation market place for the a400m and a350 business projects and we are actively tendering these at present for Gkn and Ge aviation. director DIRECTORS mr.
22. chartered accountants. The Profit Before Tax for the year amounted to Rs.42. your company provides an unique opportunity to dynamatic® to test and validate its products in real time field conditions. Being a Global major in design and development DIRECTORS mr.00 lacs for the previous year. udayant malhoutra ms.87. the Hydraulic division of your parent company. i n D i a Review of Business Bangalore y 2009-10 and manufacture of such products dynamatic® is continuously engaged in finding innovative solutions to upgrade the products of its customers. Bangalore Udayant malhoutra chairman … … … chairman director director REGISTERED OFFICE dynamatic Park Peenya Bangalore 560 058 India .49. as you are aware.J K m R e s e a R c h fa R m Lt D . In this regard.53 lacs (previous year loss of Rs. Pramilla malhoutra mr.87 lacs for doubtful debts. V. during the year under report. your company has made an operational income of Rs.50 lacs as against an operational income of Rs. Prasad and kumar. our company has established an agricultural farm admeasuring approximately 65 acres in the vicinity of Bangalore. dynamatic Technologies limited is engaged in the design and manufacture of products which find extensive application in mechanized farming and earth moving sectors.91. Sunder AUDITORS m/s.26 lacs) after providing an amount of Rs.
dynamatics.dynamatic.co. Dynamatic®. content. Singapore JKM Research Farm Limited Oldland Aerospace Limited. Oldland Aerospace™.and its logos are the exclusive property of Dynamatic Technologies Limited and may not be used without express prior written permission.uk D y n A M AT i c T e c H n O L O G i e S L i M i T e D Dynamatic Park Peenya Bangalore 560 058 india Tel + 91 80 2839 4933/34/35 Fax + 91 80 2839 5823 logo. Dynamatic Technologies and the trademarks – Dynamatic® Hydraulics.oldlandcnc.com www. The Powermetric® Design. . graphics and photographs in this Report are the property of Dynamatic Technologies Limited and may not be used without permission.co. All rights reserved. UK Dynametal® A Division of Dynamatic Technologies Limited A Dynamatic Technologies Company A Division of Dynamatic Technologies Limited TM JKM Automotive A Division of Dynamatic Technologies Limited A Dynamatic Technologies Company A Dynamatic Technologies Company A Dynamatic Technologies Company A Division of Dynamatic Technologies Limited JKM Global Pte Limited.uk FM 29880 www. Dynametal®.Dynamatic Aerospace® Dynamatic® Hydraulics A Division of Dynamatic Technologies Limited A Division of Dynamatic Technologies Limited TM Dynamatic Homeland Security Dynamatic Limited. JKM Auto™ and Dynamatic Homeland Security™. UK Oldland Aerospace Limited. UK www. Dynamatic Aerospace®. ©2010 Dynamatic Technologies Limited. UK Powermetric® Design balance n e bl si res po na tio VAL UE S n b g din uil focus o n socia lly we en sh lon g t EC ON m er bet tt or erm M O creation alth we ICS grow ent friendly th and en nm viro customer centric organisation structure rity integ TOO LS LS / SKiL tec h nol tion ogy innova ex it y ce tiv llen rea ce nurture c Dynamatic Technologies Limited Dynamatic Limited.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.