To,
The Members,
Your directors have pleasure in presenting the 23rd Annual Report on the
business and operations of the Company, together with the audited accounts for the
financial year ended March 31,2024.
FINANCIAL RESULTS
The Audited Financial Statements of your Company as on March 31, 2024, are prepared in
accordance with the relevant applicable Indian Accounting Standards ("Ind AS")
and Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") and the
provisions of the Companies Act, 2013 ("Act"):
Financial performance of the Company is summarised in the table below:
(? in millions)
| Particulars |
Standalone |
Consolidated |
|
2023-24 |
2022-23 |
2023-24 |
2022-23 |
| Revenue from Operations including other Income |
6444.24 |
5,230.48 |
6444.24 |
5,230.48 |
| Less Expenses: |
|
|
|
|
| Cost of goods sold |
3961.75 |
3,254.47 |
3961.75 |
3,254.47 |
| Employee benefits Expenses |
874.57 |
703.21 |
874.57 |
703.21 |
| Finance cost |
11.03 |
7.86 |
11.05 |
7.88 |
| Depreciation and Amortisation expenses |
134.44 |
123.64 |
134.44 |
123.64 |
| Other Expenses |
692.22 |
570.73 |
691.52 |
570.89 |
| Total Expenses |
5674.01 |
4,659.91 |
5673.33 |
4,660.09 |
| Profit before exceptional items and tax |
770.23 |
570.57 |
770.91 |
570.39 |
| Profit before tax |
770.23 |
570.57 |
770.91 |
570.39 |
| Tax expense |
188.79 |
144.13 |
189.04 |
144.13 |
| Net Profit for the year |
581.44 |
426.44 |
581.87 |
426.26 |
| Net profit attributable to - Owners of the Holding Company |
581.44 |
426.44 |
581.87 |
426.26 |
The standalone revenue from operations increased from ' 5230.48 million to ' 6444.24
million, an increase of 23% over the previous financial year notwithstanding challenging
business environment. The standalone Profit After Tax increased from '426.44 million to '
581.44 million, an increase of 36% over the previous financial year. The standalone EPS of
your company increased from ' 19.71 to ' 27.95 in the current year.
The consolidated EBITDA of your company grew at a faster pace in the current year
registering a growth of 30% over the previous year.
TRANSFER TO RESERVES
The Company has not transferred any amount to General Reserve for the financial year
ended March 31,2024.
DIVIDEND
Based on the Company's performance and keeping in mind the shareholders' interest, the
Directors recommend a dividend of @ ' 5.50/- per equity share (110%) on the fully paid up
equity shares of ' 5/- each of the Company, for the year 2023-24. The dividend on equity
shares is subject to the Shareholders' approval at the ensuing Annual General Meeting
('AGM'). The Register of Members and Share Transfer Books of the Company will remain
closed from September 18, 2024 to September 24, 2024(both days inclusive) for the purpose
of payment of the dividend for the year ended March 31,2024.
DIVIDEND DISTRIBUTION POLICY
The Company had adopted a Dividend Distribution Policy that sets out the parameters and
circumstances that will be taken into account by the Board in determining the distribution
of dividend to its shareholders and/ or retaining profits earned by the Company. The
policy is available on the website of the Company at the weblink:-
https://windlas.com/wp-content/uploads/2021 /1 1 / Dividend-Distribution-Policy.pdf
BUYBACK OF SHARES
The Board of Directors of your company in their meeting held on November 08, 2022, had
approved Buyback of Equity shares of Face Value ' 5 each of the Company for an amount not
exceeding ' 250,000,000/- at a price not exceeding ' 325/- (Rupees Three Hundred and
Twenty Five Only) per equity share ("Maximum Buy-back Price") payable in cash
from the equity shareholders/ beneficial owners of the equity shares of the Company other
than the Promoters, members of Promoter Group and persons in control of the Company
("Buyback Offer") from Open Market through Stock Exchange Mechanism in terms of
the provisions of Securities and Exchange Board of India (Buy-Back of Securities)
Regulations, 2018 ("Buyback Regulations").
The Company completed the Buyback on May 03, 2023 by purchase of 995,800 equity shares
aggregating to ' 250,039,654.15/- excluding transaction costs ("Total Buyback
Amount") from the equity shareholders of the Company (other than the promoters,
promoter group and persons in control of the Company). The Total Buyback Amount represents
6.3855% of the Paid-up equity capital and Free Reserves of the Company as on March 31,
2022, which is within the permissible limit of 10% of the total paid- up equity capital
and free reserves of the Company.
EMPLOYEES STOCK OPTIONS SCHEME
a) ESOP 2021 Scheme:
The Board of Directors of the Company at its meeting held on April 16, 2021, had
approved introduction of the 'Windlas Biotech Limited Employees Stock Option Plan 2021'
("ESOP 2021"/ "Plan") for the benefit of the present and future
employees of the Company. Each Option when exercised would be converted into one equity
share of '5/- each fully paid-up.
The options granted shall vest not later than 5 (five) years from the date of grant of
such options. Number of Options that may be granted to an employee under the "ESOP
2021" shall not exceed one-fifth of the total number of Options reserved under the
"ESOP 2021" in aggregate per employee or any such ceiling number of options as
may be determined by the Committee within such limit with respect to an individual
employee.
The Company has obtained in-principle approval for listing upto a maximum of 331,696
equity shares of ' 5/- each of Windlas Biotech Limited to be allotted pursuant to options
granted prior to listing of the Company under ESOP 2021 vide approval letter dated June
24, 2022 and June 27, 2022 from NSE and BSE, respectively.
Disclosure under SEBI (Share Based Employees Benefits and Sweat Equity) Regulations,
2021 (SBEB 2021 Regulations") regarding details of the "ESOP 2021" is given
below.
| Date of Shareholders Approval of the Scheme |
April 17, 2021 (prior to the IPO) |
| Total number of options approved under the Scheme |
546,222 |
| Number of options Granted |
419,439 (Options granted on May 3, 2021) |
| Vesting of Options |
Options granted under Plan shall vest not earlier than 1 (One) year and not later than
maximum Vesting Period of 5 (five) years from the date of Grant. |
| Exercise Price/ Pricing Formula |
'275.35 (The fair value of option has been determined using Black-Scholes option
pricing model) |
| Maximum period within which the grant shall be vested |
5 (Five) years from the date of Grant |
| Number of Options lapsed during the Year |
6,588 |
| Number of Options outstanding as on March 31,2024 |
308,650 |
Employee-wise detail of options granted to:
| i. Key managerial personnel (KMP) |
KMP |
Options granted |
|
Mrs. Komal Gupta |
41,183 |
|
Mr. Mohammed Aslam |
19,862 |
|
Mr. Om Prakash Sule |
17,602 |
|
Mr. Pawan Kumar Sharma |
17,020 |
|
Mr. Ananta Narayan Panda |
1,365 |
| ii. Any other employee who received a grant in any one year of options amounting to 5%
or more of the options granted during the year |
Nil |
|
| iii. Identified employees who were granted options during any one year equal to or
exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of our
Company at the time of grant |
Nil |
|
b) ESOS 2023 Scheme:
The Nomination and Remuneration Committee and the Board of Directors of your Company in
their meeting held on August 8, 2023, had approved introduction of "WBL Employee
Stock Option Scheme 2023 ("ESOS 2023) for the benefit of present and future eligible
employees of the Company. Each Options when exercised would be converted into one equity
shares of ' 5 (Rupees five) each fully paid-up.
The Company has obtained in-principle approval for
listing upto a maximum of 315,000 equity shares of ' 5/- each of Windlas Biotech
Limited to be allotted pursuant to options granted under ESOS 2023 vide approval letter
dated October 6, 2023 and October 10, 2023 from NSE and BSE, respectively.
Disclosure under SEBI (Share Based Employees Benefits and Sweat Equity) Regulations,
2021 (SBEB 2021 Regulations") regarding details of the "ESOS 2023" is given
below
| Date of Shareholders Approval of the Scheme |
September 12, 2023 |
| Total number of options approved under the Scheme |
315,000 |
| Number of options Granted |
307,750 (Options granted on October 17, 2023) |
| Vesting of Options |
Options granted under ESOS 2023 shall vest not earlier than 1 (One) year and not later
than 4 (four) years from the date of Grant. |
| Exercise Price/ Pricing Formula |
A discount of upto 25% is applied on the Market Price of the Share to arrive at the
exercise price on the date of grant of options by the Nomination and Remuneration
Committee of the Board of Directors. |
| Maximum period within which the grant shall be vested |
4 (Four) years from the date of Grant |
| Number of Options lapsed during the Year |
Nil |
| Number of Options outstanding as on March 31,2024 |
307,750 |
Employee-wise detail of options granted to:
| i. Key managerial personnel (KMP) |
KMP |
Options granted |
|
Mrs. Komal Gupta |
167,000 |
|
Mr. Mohammed Aslam |
25,000 |
|
Mr. Om Prakash Sule |
5,000 |
|
Mr. Pawan Kumar Sharma |
15,000 |
|
Mr. Ananta Narayan Panda |
1,500 |
ii. Any other employee who received a grant in any one year of options amounting to 5%
or more of the options granted during the year
|
Name |
Options granted |
|
Mr. Roshan Mon |
25,000 |
| iii. Identified employees who were granted options during any one year equal to or
exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of our
Company at the time of grant |
Nil |
|
ESOP Expenses for the year ended March 31,2024 is ' 20.67 million (Refer Note 30 of
Standalone Financial Statements). The options vested under both "ESOP 2021" and
"ESOS 2023" can be exercised within the period of 4 (Four) years from the date
of vesting. There are 66,460 potential equity shares arising out of ESOP for the year
ended March 31, 2024 and the same has been considered for diluted earning per shares.
Both ESOP schemes are in compliance with the SBEB 2021 regulations. The Company has
received a certificate from M/s Sandeep Joshi & Associates, Secretarial Auditor of the
Company, certifying that the schemes are implemented in accordance with the SBEB 2021
Regulations. The certificate is available for inspection by members in electronic mode.
Details of ESOPs granted and vested are provided in the notes to the Standalone Financial
Statements.
FINANCIAL STATEMENTS
In accordance with the Ministry of Corporate Affairs ("MCA") circular dated
January 13, 2021 read with circulars dated April 08, 2020, April 13, 2020, May 5, 2020,
December 28, 2022, and September 25, 2023 the Annual Report 2023-24 containing complete
Balance Sheet, Statement of Profit & Loss, other statements and notes thereto,
including consolidated financial statements, prepared as per Ind AS, Directors' Report
(including Management Discussion & Analysis and Corporate Governance Report) is being
sent via email to all shareholders who have provided their email address(es).
The Annual Report 2023-24 is also available at the Company's website at:
https://windlas.com/financial- information/annual-report/
CONSOLIDATED FINANCIAL STATEMENTS
In compliance with the applicable provisions of Act including the Accounting Standard
Ind AS 110 on Consolidated Financial Statements, this Annual Report also includes
Consolidated Financial Statements for the financial year 2023-24. Consolidated Turnover
was '6444.24 million as against '5,230.48 million in the previous year. Net Profit after
Tax (after minority interest) for the year stood at '581.87 million as against '426.26
million in the previous year.
Pursuant to the provisions of the Companies Act, 2013 and Regulation 33 of the
Securities Exchange Board of India (Listing Obligations and Disclosure Requirements
Regulation, 2015 ("Listing Regulations") and applicable Accounting Standards,
the Audited Consolidated Financial Statements of the Company for the 2023-24, together
with the Auditors' Report, form part of this Annual Report.
OPERATIONS AND BUSINESS PERFORMANCE
Kindly refer to Management Discussion & Analysis and Corporate Governance Report
which forms part of this report.
CHANGE IN NATURE OF BUSINESS
During the year under review there is no change in nature of business of the Company.
CREDIT RATING
ICRA Limited, i.e. the Credit Rating Agency has reaffirmed the long-term rating of the
Company to [ICRA] A+ (pronounced ICRA A plus) ("Rating") and short-term rating
at [ICRA] A1 for facilities of the Company as per their letter dated February 05, 2024.
DIRECTORS
Pursuant to Section 149, 152 and other applicable provisions of the Companies Act,
2013, one third of such of the Directors as are liable to retire by rotation, shall retire
every year and, if eligible, offer themselves for re-appointment at every AGM.
Accordingly, Mr. Manoj Kumar Windlass (DIN: 00221671), Director of the company will retire
by rotation at the ensuing AGM, and being eligible, offered himself for re-appointment in
accordance with provisions of the Act. The Board of Directors on the recommendation of the
Nomination and Remuneration Committee ("NRC") has recommended his
re-appointment.
A brief resume of the Directors being appointed/ reappointed, the nature of expertise
in specific functional areas, names of companies in which they hold directorships,
committee memberships/ with chairmanships, their shareholding in the Company, etc., have
been furnished in the explanatory statement to the notice of the ensuing AGM.
The Nomination and Remuneration Committee and the Board of Directors of the Company
recommend his appointment/ re-appointment at the ensuing AGM.
Your Company has received declarations from all the Independent Directors confirming
that they meet with the criteria of independence as prescribed both under subsection (6)
of Section 149 of the Act and Regulation 16(1) (b) of the SEBI Listing Regulations and
there has been no change in the circumstances which may affect their status as an
Independent Director.
In terms of section 2(77) of the Act including Rules made thereunder, Mr. Ashok Kumar
Windlass, Whole Time Director, Mr. Hitesh Windlass, Managing Director, Mr. Manoj Kumar
Windlass, Joint Managing Director and Mrs. Prachi Jain Windlass, Non- Executive
Non-Independent Director are related to each other.
KEY MANAGERIAL PERSONNEL
The Key Managerial Personnel (KMP) in the Company as per Section 2(51) and 203 of the
Act are as follows:
Mr. Ashok Kumar Windlass, Whole time Director
Mr. Hitesh Windlass, Managing Director
Mr. Manoj Kumar Windlass, Joint Managing Director
Mr. Pawan Kumar Sharma, Executive Director
Mrs. Komal Gupta, Chief Executive Officer & Chief Financial Officer
Mr. Ananta Narayan Panda, Company Secretary & Compliance Officer
Mr. Pawan Kumar Sharma, Executive Director of the Company holds office upto June 10,
2024. The Board of Directors at its meeting held on May 20, 2024, has reappointed Mr.
Pawan Kumar Sharma for a period of three years with effect from June 11,2024, as an
Executive Director on the recommendation of Nomination and Remuneration Committee of the
Board of Directors of the Company subject to approval of Shareholders. In terms of
Regulation 17(1C) of the SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015 ("Listing Regulations"), the Company shall obtain approval of
Shareholders for appointment/re- appointment of Mr. Pawan Kumar Sharma within a period of
three months form the date of appointment by passing of resolution through postal ballot
under section 110 of the Companies Act, 2013.
Policy on directors' appointment and Policy on remuneration
Pursuant to Section 134(3)(e) and Section 178(3) of the Companies Act 2013, the policy
on appointment of Board members including criteria for determining qualifications,
positive attributes, independence of a director and the policy on remuneration of
directors, KMP and other employees is disclosed in the Corporate Governance Report which
is part of the Annual Report. The same are also available on the website of the Company
at:-
https://windlas.com/wp-content/uploads/2021 /05/ Nomination-and-remuneration-policy.pdf
Performance Evaluation of the Board, its Committees and Individual Directors
In accordance with the applicable provisions of the Act and the Listing Regulations,
the Board, in consultation with its Nomination and Remuneration Committee, has formulated
a framework containing, inter-alia, the criteria for performance evaluation of the entire
Board of the Company, its Committees and individual directors, including Independent
Directors. The framework is monitored, reviewed and updated by the Board, in consultation
with the Nomination and Remuneration Committee, based on need and new compliance
requirements.
The annual performance evaluation of the Board, its Committees and each Director has
been carried out for the financial year 2023-24 in accordance with the framework. The
details of evaluation process of the Board, its Committees and individual directors,
including independent directors have been provided under the Corporate Governance Report
which forms part of this Report.
Directors' Responsibility Statement
To the best of their knowledge and belief and according to the information and
explanations obtained by them, your Directors make the following statements in terms of
Section 134(3)(c) of the Companies Act, 2013:
a) in the preparation of the Annual Accounts for the financial year ended March 31,
2024, the applicable accounting standards have been followed. There are no material
departures from the applicable accounting standards;
b) t he Directors have selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company as on March 31,2024 and of the profit of
the Company for that period;
c) the Directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors had prepared Annual Accounts on a going concern basis;
e) the Directors had laid down internal financial controls to be followed by the
Company and that such internal financial controls are adequate and were operating
effectively;
f) the Directors had devised proper system to ensure compliance with the provisions of
all applicable laws and that such systems were adequate and operating effectively.
HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS
Your Company lays emphasis on human resources and caring for them at all levels. Your
Company enjoyed harmonious relationships with workers and staff during the year under
review and consider them their most important assets. Your Company is concerned for its
people, customers, suppliers, and community at large which reflects in the Company's
policy, programs and development efforts. As on March 31, 2024, your company had 1154
permanent employees. Your Company is committed to build and strengthen the human capital
by defining policies that support their growth, goals, and help them achieve excellence.
Various trainings, seminars and workshops were conducted during the year to train
employees and enhance their overall performance.
PARTICULARS OF EMPLOYEES / MANAGERIAL REMUNERATION
The information required under Section 197 of the Act read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given
below:
a) The ratio of the remuneration of each Director to the median remuneration of the
employees of the Company for the financial year:
| Directors |
Ratio to Median Remuneration |
| Mr. Vivek Dhariwal* |
1.38 |
| Mr. Ashok Kumar Windlass |
57.21 |
| Mr. Hitesh Windlass |
64.17 |
| Mr. Manoj Kumar Windlass |
64.17 |
| Mr. Pawan Kumar Sharma |
18.60 |
| Mrs. Prachi Jain Windlass |
Nil |
| Mr. Srinivasan Venkataraman* |
1.63 |
| Mr. Gaurav Gulati* |
1.96 |
* The Independent Directors have only been paid sitting fee during the year.
b) The percentage increase in remuneration of each Director, Chief Financial Officer,
Chief Executive Officer, Company Secretary or Manager, if any, in the financial year:
| Directors, Chief Executive Officer, Chief Financial Officer and
Company Secretary |
% increase in remuneration in the financial Year |
| Mr. Vivek Dhariwal* |
22.95 |
| Mr. Ashok Kumar Windlass |
Nil |
| Mr. Hitesh Windlass** |
19.05 |
| Mr. Manoj Kumar Windlass** |
19.05 |
| Mr. Pawan Kumar Sharma |
10.00 |
| Mrs. Prachi Jain Windlass |
Nil |
| Mr. Srinivasan Venkataraman* |
8.54 |
| Mr. Gaurav Gulati* |
(2.73) |
| Mrs. Komal Gupta (CEO & CFO) |
97.46 |
| Mr. Ananta Narayan Panda (Company Secretary) |
11.97 |
* Mr. Vivek Dhariwal, Mr. Srinivasan Venkataraman and Mr. Gaurav Gulati are Independent
Directors and they have been paid only sitting fee during the year.
** Remuneration includes commission paid/payable to Mr. Hitesh Windlass (Managing
Director) and Mr. Manoj Kumar Windlass (Joint Managing Director) during the year.
c) Percentage increase in the median remuneration of employees in the financial year:
21.59%
d) Number of permanent employees on the rolls of Company: 1154
e) Average percentile increase already made in the salaries of employees other than the
managerial personnel in the last financial year and its comparison with the percentile
increase in the managerial remuneration and justification thereof and point out if there
are any exceptional circumstance for increase in managerial remuneration:
Average percentile increase in salary of employees other than managerial personnel was
25.55% Average percentile increase in managerial remuneration was 25.31% in 2023-24 over
2022-23.
f) Affirmation that the remuneration is as per the Remuneration policy of the Company:
The Company affirms that the remuneration paid is as per the Remuneration policy of the
Company.
g) A statement containing names of top ten employees in terms of remuneration drawn and
the particulars of employees as required under Section 197(12) of the Act read with Rule
5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, is provided in a separate Annexure forming part of this Report. Further, the
Report and the Accounts are being sent to the Members excluding the aforesaid Annexure. In
terms of Section 136 of the Act, the said Annexure is open for inspection at the
Registered Office of the Company. Any Shareholder interested in obtaining a copy of the
same may write to the Company Secretary.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY
There are no material changes and commitments affecting the financial position of the
Company which have occurred between the end of the financial year of the Company to which
the financial statements relates and the date of this Boards' Report.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company's internal control system is designed to consider the scope, type, and
magnitude of its operations. The Audit Committee provides additional oversight related to
financial risks and controls, while both the Board of Directors and Audit Committee
oversee the internal financial controls to ensure their adequacy and efficiency. To
address these matters, the Audit Committee periodically holds meetings with the statutory
auditor and the management of the Company. The internal control system ensures optimal
utilization of the Company's resources and adherence to compliance standards.
Internal controls play a crucial role in safeguarding a company's assets, ensuring
compliance with regulations, and minimizing risks. These controls encompass processes and
procedures that help maintain the integrity and reliability of the organization's systems.
The Company has appointed M/s. Grant Thornton Bharat LLP Chartered Accountants, as an
Independent Internal Auditors who periodically audits the adequacy and effectiveness of
the internal controls laid down by the management and suggests improvements. This ensures
that all Assets are safeguarded and protected against loss from unauthorised use or
disposition and that the transactions are authorised, recorded and reported diligently.
Your Company's internal control systems are commensurate with the nature and size of its
business operations. Internal Financial Controls are evaluated, and Internal Auditors'
Reports are regularly reviewed by the Audit Committee of the Board.
The company has an internal audit department to ensure that all operations comply with
prescribed business standards through regular monitoring. The internal audit team of the
Company supervises internal processes and recommends necessary changes to correct any
deviations from established practices. Strict monitoring and effective reviews ensure high
compliance with the rules and regulations that govern the Company. The internal audit team
of the Company has necessary skills and experience, and it reports to the Chairman of the
Audit Committee and the Managing Director of the Company. The audit committee recommends
annual Risk-Based Audit Plan (RBAP) for conducting internal audit. The internal audit is
conducted based on this approved plan, and any identified gaps in the internal control
system are communicated to process owners and management for necessary action.
Statutory Auditors Report on Internal Financial Controls as required under clause (i)
of Subsection 3 of Section 143 of the Companies Act, 2013 is annexed with the Independent
Auditors' Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report with detailed review of operations,
performance and future outlook, as stipulated under Regulation 34 read with Schedule V to
the Listing Regulations is presented in a separate section forming part of this Annual
Report.
COMMISSIONING OF NEW PLANT
Your company during the current financial year has completed the commissioning of its
state-of-the-art injectable facility for manufacturing of small volume parenteral
products, built to meet international cGMP standards at its new facility (Plant V) located
at Plot No. 166, 167, 168, & 172, Mohabewala Industrial Area, Dehradun-248110,
Uttarakahand at a cost of '743.97 Million
Your company has received manufacturing license from the Drug Controlling &
Licensing Authority of Uttarakhand after joint inspection conducted by Central Drugs
Standard Control Organisation and State Licensing Authority of Uttarakhand during the
current financial year for Plant V. The new facility has initiated manufacturing of
commercial batches.
Plant V shall cater to the development and manufacturing of complex dosage forms like
ampoules, liquid vials and lyophilized vials thereby extending the Company's product
portfolio to critical care and other specialized therapeutic segments. The injectable
plant shall also cater to all three of our existing business verticals viz. CDMO, Trade
Generics & Institutional, and Exports.
RELATED PARTY TRANSACTIONS
The Company has a policy on Materiality of Related Party Transactions and has been
uploaded on the website of the company which can be found on https://windlas.com/
wp-content/uploads/2021/05/Policy-on-Materiality-of- related-party.pdf
All related party transactions that were entered into during the 2023-24 were on an
arm's length basis and were in the ordinary course of the business. There are no
materially significant related party transactions made by the Company with Promoters, Key
Managerial Personnel or other designated persons which may have potential conflict with
interest of the Company at large.
All related party transactions are presented to the Audit Committee. Omnibus approval
is obtained for the transactions which are foreseen and repetitive in nature. A statement
of all related party transactions is presented before the Audit Committee on quarterly
basis, mentioning the nature, value and terms and conditions of transactions. The details
of Related party transactions are provided in the accompanying financial statements.
As all related party transactions entered into by the Company were in ordinary course
of business and were on an arm's length's basis, Form AOC-2 is not applicable to Company.
CORPORATE GOVERNANCE
The Company is committed to ensuring good governance practices while protecting the
interest of the shareholders by using extreme care, skill and diligence in the business.
The report on Corporate Governance as stipulated under the Listing Regulations forms
part of the Annual Report. A certificate from M/s Sandeep Joshi & Associates, Company
Secretary regarding compliance of the conditions of Corporate Governance, as stipulated
under Schedule V of the Listing Regulations is attached as Annexure and forms part of the
Annual Report.
ANNUAL RETURN
In accordance with Section 92 (3) read with Section 134 (3)(a) of the Act, the Annual
Return of the Company as on March 31, 2024 is available in the prescribed format on the
Company's website at the link: https://windlas.com/ annual-return/
DEPOSITS
Your Company has not accepted any deposits within the meaning of Section 73 of the
Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 and no amount
on account of principal or interest on public deposits was outstanding as on March
31,2024.
The Company does not have any deposits which are not in compliance with the
requirements of Chapter V of the Companies Act, 2013.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
In accordance with the provisions of Section 186 of the Act, the details of Loans,
Guarantees and Investments made by the Company as at March 31,2024 are given in the notes
to the Financial Statements.
CORPORATE SOCIAL RESPONSIBILITY
Your Company considers the community as its key stakeholder and endeavours to create
economically viable and socially inclusive community. The CSR programmes of the Company
are aimed at inclusive development and welfare of the community by carrying out activities
primarily related to promoting health care including preventive health care, promoting
education and skill development, and animal welfare and environmental sustainability.
Disclosure as per Rule 8 of Companies (Corporate Social Responsibility Policy) Rules,
2014 in prescribed form is enclosed as Annexure I to the Directors' Report.
During the financial year 2023-24, the Company has spent ' 9.93 million (2% spend
requirement was ' 9.72 million) towards various CSR activities, in line with the
requirements of Section 135 of the Companies Act, 2013 ('Act'). Details of composition of
CSR Committee and Meetings held during 2023-24 are disclosed in the Corporate Governance
Report.
SUBSIDIARY/ JOINT VENTURE
As on March 31, 2024, the Company has one subsidiary namely Windlas Inc.
The Company has attached along with its financial statements, a separate statement
containing the salient features of the financial statements of the said subsidiaries in
"Form AOC-1".
During the year under review, the Board of Directors reviewed the affairs of its
subsidiary. Also in conformity with Section 134 of the Companies Act, 2013 and Rule 8(1)
of the Company (Accounts) Rules, 2014, Notes of Consolidated Financial Statement cover the
highlights of performance of subsidiary and its contribution to the overall performance of
the Company during the year.
US Pharma Windlas LLC is one of the joint venture entity in which Windlas Inc. (Wholly
Owned Subsidiary company of Windlas Biotech Limited) has 50% ownership. A policy on
material subsidiaries has been formulated and is available on the website of the Company
at:- https://windlas. com/wp-content/uploads/2021/05/Policy-on-Material- Subsidiary.pdf
FAMILIARISATION PROGRAMME
The Company has a familiarisation programme for its Independent Directors which is
imparted at the time of appointment of an Independent Director on Board as well as on need
basis. During the year, the Independent Directors of the Company were familiarised and the
details of familiarisation programmes imparted to them are placed on the website of the
Company at:- https://windlas.com/wp- content/uploads/2024/07/Familiarisation Programme IDs
FY24.pdf
SIGNIFICANT AND MATERIAL ORDERS PASSED BY COURTS, REGULATORS OR TRIBUNALS
There were no significant material orders passed by Courts/ Regulators/ Tribunals which
would impact the going concern status of the Company and its future operations.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
The Company persistently promotes ethical behaviour in all its business activities and
in line with the best international governance practices. The Company has established a
system through which directors, employees and business associates may report unethical
behaviour, malpractices, wrongful conduct, fraud, violation of Company's code of conduct
without fear of reprisal. Reporting of instances of leak/ suspected leak of any
Unpublished Price Sensitive Information is allowed through this vigil mechanism and the
Company has made its employees aware of the same.
The policy has also been posted on the Company's website at:-
https://windlas.com/wp-content/uploads/7071/05/ Vigil-Mechanism-Policy.pdf
The Audit Committee periodically reviews the existence and functioning of the
mechanism. It reviews the status of complaints received, if any, under this policy on a
quarterly basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
Pursuant to provisions of Section 134 of the Act read with Rule 8(3) of the Companies
(Accounts) Rules, 2014 the details of Conservation of Energy, Technology Absorption,
Foreign Exchange Earnings and Outgo are attached as Annexure II to this report.
STATUTORY AUDITORS
In accordance with the provisions of Section 139 of the Companies Act, 2013, the
members at the 19th Annual General Meeting held on August 28, 2020 had approved
the appointment of M/s. S S Kothari Mehta & Co. LLP Chartered Accountants (Firm
Registration No: 000756N) for a term of 5 (five) years, to hold office till the conclusion
of 24th Annual General Meeting, As per the provisions of Section 139 of the Act, they have
confirmed that they are not disqualified from continuing as Auditors of the Company.
During the financial year the existing partnership firm "S S Kothari Mehta &
Co.", statutory auditors of the Company has been converted into "S S Kothari
Mehta & Co. LLP" vide Firm Registration No: 000756N/ N500441, a Limited Liability
Partnership under the provisions of the Limited Liability Partnership Act, 2008 with
effect from November 24, 2023.
The Auditors of the Company have not reported any instances of fraud committed against
the Company by its officers or employees as specified under Section 143(12) of the
Companies Act, 2013.
COST AUDITORS
In terms of the Section 148 of the Companies Act, 2013 read with the Companies (Cost
Record and Audit) Rules,
2014 the Company is required to maintain cost accounting records and have them audited
every year.
The Board has re-appointed M/s. Saurabh Jain and Associates as Cost Auditor of the
Company for 2024-25 under Section 148 and all other applicable provisions of the Act.
Shareholder's approval is being sought for ratification of the remuneration proposed to
be paid to M/s. Saurabh Jain and Associates, Cost Auditor of the Company in respect of
Cost Audit for the financial year ending March 31,2025 as mentioned in the Notice
convening the AGM.
The Company has maintained cost records as specified under section 148(1) of the Act.
SECRETARIAL AUDITOR
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and rules made
thereunder, the Company had appointed Mr. Sandeep Joshi, Company Secretary (COP No.
19210), Proprietor of M/s Sandeep Joshi & Associates, Company Secretary in Practice to
undertake the Secretarial Audit of the Company.
Pursuant to provisions of Section 204(1) of the Companies Act, 2013 and Regulation 24A
of the Listing Regulations, the Secretarial Audit Report for the financial year ended
March 31,2024 issued by CS Mr. Sandeep Joshi (COP No. 19210), Proprietor of M/s. Sandeep
Joshi & Associates, Company Secretary in Practice and the Secretarial Auditor of the
Company is annexed as Annexure III and forms an integral part of this Report.
During the year under review, the Secretarial Auditor have not reported any fraud under
Section 143(12) of the Companies Act, 2013 M/s Sandeep Joshi & Associates have been
reappointed as the Secretarial Auditor for the financial year 2024-25.
Explanation or Comments on disqualifications, reservations, adverse remarks or
disclaimers in the auditor's reports:
There is no qualification, reservation or adverse remark or disclaimer made by the
Auditor in their report. As regards the observations of the Statutory Auditors and the
Secretarial Auditor in their Report, the same are self- explanatory and need no
clarifications.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORK PLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013
Your Company is fully committed to uphold and maintain the dignity of every woman
working with the Company.
The Company has zero tolerance towards any action on the part of any one which may fall
under the ambit of 'Sexual Harassment' at workplace. The Policy framed by the Company in
this regard provides for protection against sexual harassment of women at workplace and
for prevention and redressal of such complaints.
Internal Complaints Committees (ICC) have been set up to redress complaints received
regarding sexual harassment.
Status of the Complaints during the 2023-24 is as follows:
| Particulars |
No. of Complaints |
| Number of Complaints pending as on Beginning of the Financial Year |
Nil |
| Number of Complaints filed during the Financial Year |
Nil |
| Number of Complaints pending as on the end of the Financial Year |
Nil |
The Company has complied with the provisions relating to the constitution of Internal
Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND GENERAL MEETINGS
The Company has complied with the provisions of Secretarial Standards on Meetings of
the Board of Directors
(SS-1) and on General Meetings (SS-2) issued by the Institute of Company Secretaries of
India.
GENERAL DISCLOSURE
There were no proceedings, filed by the Company or against the Company, pending under
the Insolvency and Bankruptcy Code, 2016 as amended, before the National Company Law
Tribunal or other Courts as of March 31,2024.
There is no instance of one-time settlement with any bank or financial institution.
ACKNOWLEDGEMENT
The Directors acknowledge with gratitude and wishes to place on record its appreciation
for the dedication and commitment of the Company's employees at all levels which has
continued to be our major strength. The enthusiasm and unstinting efforts of the employees
have enabled the Company to remain as industry leaders. We place on record our
appreciation for the support and co-operation the Company has been receiving from its
suppliers, distributors, dealers, business partners, franchisee units and others
associated with the Company as its trading partners. The Company looks upon them as
partners in its progress and has shared with them the rewards of growth.
| For and on behalf of the Board |
|
| Hitesh Windlass |
Manoj Kumar Windlass |
| Designation: Managing Director |
Designation: Jt. Managing Director |
| DIN: 02030941 |
DIN: 00221671 |
| Place: Gurgaon |
Place: Dehradun |
| Date: May 20, 2024 |
Date: May 20, 2024 |
|