Eicher Motors Ltd
Chairman Speech
Dear Shareholders,
I hope you and your families are doing well.
As the pandemic continues to wane globally, humanity and businesses have learnt
invaluable lessons over the last couple of years, and have also developed skills and
competencies to survive and thrive despite the impact of the pandemic. The last couple of
years were testing for the industry and for us at Eicher Motors Ltd., but we were able to
weather the challenges and have continued to progress on our vision under the able
leadership of B Govinda-rajan at Royal Enfield and Vinod Aggarwal at VE Commercial
Vehicles, backed by the resilience and commitment of our teams.
At Eicher Motors Ltd., our clear priority, apart from ensuring the safety and
wellbe-ing of our employees and partners, was to sustain the momentum and the exponential
growth and success that we have been able to achieve over the last several years.
In addition to building some of the world’s most recognized and awarded personal
and commercial transportation solutions, we have successfully worked towards nurturing
organizations and cultures that are reflective of our vision, and communities that reflect
the guiding philosophies and principles of our brands.
We have significantly grown beyond Indian shores with the expansion of our
manufacturing and allied units across the world, growth and global successes of our
product portfolio, and expansion of our markets and retail network. We have seen inclusive
and comprehensive growth across our businesses in India and in international markets, and
across business divisions.
While this success and scale has created exceptional opportunities for us, it has also
brought upon us greater responsibilities. We’ve reflected on our journey as a brand
that has withstood the test of time over centuries and took some conscious steps to shape
the next stage of growth for the company.
As a niche brand over the years, or as a successful global organization today, we have
always stayed true to our core values and have maintained a challenger brand approach. We
have remained committed to ensuring better value, and bigger and better pure motorcycling
experiences. But in addition to pursuing excellence in productivity and profitability,
companies such as ours have always served a greater social purpose. As the global society
today tackles an ever-increasing series of environmental, health and geopolitical crises,
we stand committed to being part of the solution rather than part of the problem.
As the world urgently evaluates how we can ensure a brighter future for generations to
come, it is now clear that we at EML need to recalibrate and renew our mission so that we
can continue to make a significant contribution to society – not just as a
corporation, but as a force for good. This, combined with our razor sharp business
strategy, including key focus areas like electric vehicles both at VECV and Royal Enfield,
will fuse together to form a holistic mission for Eicher Motors Ltd.
Our philosophy of Pure Motorcycling has always been about a constant search for balance
between man, machine and terrain. Today, in a world out of sync with itself, we must
extend this quest to our business – so that we can restore equilibrium between
commercial objectives, community goals and the collective ecosystem that we all inhabit;
realign our priorities to sit at the intersection of business performance and social
purpose
To mark this phase of our evolution, our 2022-25 strategic vision will elevate our
greater socio-economic purpose over our business priorities, so we have a singular clarion
call to ride towards, as we navigate constantly shifting sands of global commerce. With a
strong and robust business model, led by pure motorcycling, we will now adopt a larger
purpose to REBALANCE - balance profit and profitability, balance social and commercial
objectives, balance the existing product portfolio of internal combustion engines and the
future with electric vehicles, balance a strong brand-led customer experience
ROYAL ENFIELD
DESPITE THE CHALLENGES IN THE EXTERNAL ENVIRONMENT, EICHER MOTORS LIMITED RECORDED ITS
HIGHEST EVER TOTAL REVENUE FROM OPERATIONS -REFLECTING THE BUSINESS OF ROYAL ENFIELD
MOTORCYCLES AT RS. 10,298 CRORES IN FY22. YOUR COMPANY’S EBITDA WAS RS. 2,172
CRORES, UP BY 22.0% AS COMPARED TO RS. 1,781 CRORES IN FY21, AND PROFIT AFTER TAX WAS
RECORDED AT RS. 1,677 CRORES, UP BY 24.5% AS COMPARED TO RS. 1,347 CRORES FOR THE SAME
PERIOD LAST YEAR- UNDERSCORING OUR STRONG BUSINESS FUNDAMENTALS THAT HAVE SEEN US THROUGH
TWO YEARS OF PANDEMIC INDUCED UNCERTAINTIES.
This year, we made concerted efforts towards becoming a premium, global player - with
an ambition to sustainably grow our overseas presence and business, and with a focus on
some of the toughest motorcycle markets in the world. I am happy to state that we recorded
tremendous success on this front over the last year.
Our international business focus has been driven by our long-term strategy - a
carefully mapped approach wherein the intent has been not merely to grow retail presence,
but to actually create a brandled pure motorcycling ecosystem within markets.
Over the last few years, we have sharply focused on growing strong and empowered teams
in global markets in addition to growing our infrastructure capabilities. We have invested
hugely in growing our distributor and retail network, strategically setting up
subsidiaries and assembly units and optimizing supply chain infrastructure in critical
geographies. From the approach of single store in a nodal city,we today have over 160
exclusive stores and more than 675 multi-brand outlets with unique retail identity, in
over 60 countries around the world.
We now have greater collaboration with distributors, with many of them willing to
partner with us across entire regions. Understanding the criticality of building greater
accessibility and time to market, we set up assembly units in Thailand and Colombia this
year, in addition to Argentina, with plans to set up one more in Brazil.
Over and above building world-class motorcycles targeted at global motorcycling
enthusiasts, we have sharply focused on increasing brand awareness and resonance, and have
nurtured distinct riding cultures and communities.
Our carefully crafted strategy in international markets has borne excellent results as
we recorded a more than 100% year-on-year increase in export volumes. Today, over 12% of
our overall volumes come from international markets, and Royal Enfield ranks among the
top-3 best selling brands in the mid-size segment in markets like Europe, New Zealand, and
Thailand, over and above leading the Indian mid-segment market.
As we continue our strategic focus in global markets, we strongly believe that our
journey has only just begun; our international business is at an in-ection point. Our
understanding of these markets and consumers gives us the confidence that there is
considerable headroom for sustained growth in the future.
At home in India, we continue to define the middleweight segment, and perform
consistently as compared to the industry.
DESPITE STRONG
MACROECONOMIC HEADWINDS AND CONSIDERABLE SUPPLY CHAIN CHALLENGES BECAUSE OF PARTS
SHORTAGE, WE HAVE MAINTAINED A STEADY MARKET SHARE OF 5.8% IN THE OVERALL
MOTORCYCLE SEGMENT, AND CLOSED Q4 AT 7%. WE INCREASED OUR MARKET SHARE IN THE MORE THAN
125CC SEGMENT BY 2.8% DURING THE YEAR, TO 28.7%, AS WE CONTINUE TO DOMINATE THE SEGMENT
ABOVE 250CC SEGMENT WITH AROUND 90% MARKET SHARE. OUR PREMIUM DOMESTIC DEALER NETWORK
DURING THE YEAR EXPANDED TO OVER 2100 RETAIL TOUCHPOINTS, AS WE CONTINUE TO GROW WHAT IS
THE MOST PREMIUM GLOBAL DISTRIBUTION NETWORK IN THE SEGMENT.
As the overall supply chain seems to be stabilizing, there is a sharp increase in
inflation and interest rates. Despite this, in a market driven by aspiration and
premiumization, we strongly believe that our distinct, world-class product portfolio
combined with strong brand resonance will help us further grow.
This year,we re-envisioned our most loved and iconic motorcycle, the Classic, with the
launch of the all-new Royal Enfield Classic 350. The Classic has been a huge catalyst in
growing and expanding the middleweight segment across the globe, while also being
instrumental in unlocking a thriving sub-culture of leisure riding among young and
experienced riders across the world. The all-new Classic 350 carries forward this legacy,
and is built to reflect the familiar timeless design language, with a completely modern
and reimagined ride experience. Retaining the retro appeal in entirety, the new Classic
350 aims to take the legacy of its predecessor forward. Since its launch, the motorcycle
has won a slew of awards across diverse geographies. We believe that the all new Classic
350 will galvanize the riding spirit amongst modern riders and redefine the mid-size
motorcycling segment globally.
Creating niche riding cultures has been a key focus for us. With the Himalayan we were
able to successfully build a unique subculture of accessible adventure touring across
global communities. Its pure and unique design and well-rounded capability, made it among
Royal Enfield’s best selling motorcycles across the world. Cementing that proposition
and in an effort to further build in-roads into the adventure category, we launched a new
subspecies - the Scram 411, our first ADV crossover motorcycle this year. The Scram 411 is
a capable street scrambler, with the heart of an adventure motorcycle. We believe the
Scram 411 will unlock a new segment of riders for us.
To further catalyse the growth of motorcycling subcultures, we marked our maiden foray
into motorsports this year, with the first edition of the
Continental GT Cup 2021. The GT Cup sits at the intersection of increasing interest
in motorcycle track racing, and the need for accessible forms of racing and training in
India. The first racing season was completed to resounding response from young racers
across India. To further encourage young motorsports talent in the country, we intend to
introduce racetrack schools with an intent to provide professional training access to
eager enthusiasts.
At the EICMA Motor Show this year, we unveiled a stunning new concept motorcycle - the
Royal Enfield SG650 Concept. The motorcycle is a glimpse into our engineering and
contemporary design prowess, while being truly representative of our rich legacy of custom
motorcycles. A neo-retro interpretation that pushes the boundaries of what a Royal Enfield
motorcycle could look like, the SG650 was hugely appreciated at the global motor show held
in Milan.
As Royal Enfield completed 120 years in 2021, we also showcased a major centerpiece of
our anniversary celebration at the EICMA, with the unveiling of ‘Project
Origin’, a faithful working replica of the brand’s very first
‘motor-bicycle’. This was the very machine that built the foundations upon which
we have created the enduring legacy of pure motorcycling.
The enduring 120-year old legacy of the brand is nothing without the community, and so
to pay an ode to all Enfielders who’ve dared to explore beyond the ordinary, the
company undertook 90? South - a first-of-its-kind motorcycle expedition that dared to go
where no brand has gone before - the South Pole. We successfully completed this quest on
December 16 last year, as two of our riders reached the geographic South Pole after an
arduous, but historical 15-day ride from the Ross Ice Shelf.
In commemoration of 120 years of pure motorcycling, we also launched special
Anniversary Edition models of the Interceptor and Continental GT 650 motorcycles. With a
stunning black-chrome colour scheme and hand-made brass tank badges, these motorcycles
were unveiled at EICMA with an exclusive, limited run of just 480 units for global
markets. We also launched an exclusive range of bespoke, limited-edition helmets,
consisting of 12 designs - one for each decade of the brand’s legacy.
Royal Enfield has been committed and making consistent efforts to foster a pure
motorcycling ecosystem for enthusiasts globally. Our robust plans for both apparel and
accessories business continue to enable options for self expression and personalization
for our consumers and yield impressive business results for the company. In 2021, our
focused initiatives resulted in a 45% year-on-year growth in our non-motorcycling business
backed by razor sharp focus on growing service and spares business, as well as our
motorcycle apparel and accessories business.
As we move forward, we remain focused on creating a strong business vision, a robust
product portfolio and experiences that stay true to our philosophy of pure motorcycling
and also tie back into our larger mission to REBALANCE.
VECV
Despite the challenges posed by two waves of the Covid pandemic, supply chain
disruptions caused by lockdowns and the situation in Ukraine, VECV registered handsome
growth both in volumes as well as total income. Sales of our trucks and buses grew by
38.3% to 57,077 units during FY22. Despite the pandemic, we also brought on-line the
Industry 4.0 compliant Bhopal Plant with a total capacity of 40000 vehicles per annum.
VECV also continued on our journey to become a whole-hearted customer-centric
organization - something we started in 2018. Customer- centricity is taking deep roots
within VECV and we note initial recognition by our customers and dealers as demonstrated
by being Ranked No.1 in Dealer Satisfaction Survey 2021 by the Federation of Automobile
Dealer Associations, India. We treat this as just the beginning and it remains our
constant endeavor to consistently keep improving our partnership with dealers and
customers and to set new benchmarks in the industry. Our initiatives of Retail Excellence,
Uptime, Network development backed by a strong industry infrastructure, a strong product
line up, and an efficient digital backbone provides us with a strong foundation in our
journey towards being a truly customer-centric organization.
As part of our quest of becoming an
Uptime company and No.1 in customer satisfaction we have also focused on creating a
very agile and efficient dealer network. Last year alone we added close to 150 new touch
points with state-of-the-art facilities for enhanced customer experience across the
country. Majority of our workshops are now Uptime Certified delivering remote diagnostics
and predictive maintenance to our 100% connected truck and bus fleet by linking these in
real-time to our Uptime Center.
VECV is also happy to share that digitalization has taken firm roots within the company
with the industry leading My Eicher App launch in FY22 being the latest in a series of
initiatives being taken.
We continued to have a granular and immersive go to market approach with the
introduction of several new products in different segments. To address the growing demand
of CNG trucks we launched India’s biggest CNG truck, Pro 2114XP and industry’s
first 11.5T GVW CNG truck- Pro 2095XP ‘PLUS’ CNG. We also created a new segment
with the first 17.5TGVW truck, Pro 3015XP, a hallmark of our customer centric product
planning. First fruits or synergy with Volvo Bus were delivered with Eicher front engine
Intercity Coach and Sleeper buses.
We also successfully launched the all new range of Volvo Trucks’ of FM & FMX
Range. These new range of trucks have the most modern features optimally designed to push
the limits of productivity and uptime.
And just as the financial year was ending, we received further recognition that our
Volvo 9400 B8R won Coach of the Year, Eicher Skyline Pro Staff 3010 L CNG won the
L&ICV People Hover of the Year and Eicher Pro 2114XP CNG has won both the ICV Cargo
Carrier of the Year, and the Apollo CV of the Year
I am also happy to share that VECV is accelerating focus on Electric Vehicles and
alternate fuels. We have won our first tender for electric buses from the prestigious City
of Chandigarh and this transformation towards sustainable operations and products will
continue as part of our roadmap to protect the world for future generations.
Above all, appreciable efforts are being made to bring down cost and improving value
delivered to our customers in the face of a fiercely competitive market. This has resulted
in excellent performance whereby we have been the only major Indian CV manufacturer to
remain profitable through the pandemic and as well as improve our customer and dealer
satisfaction scores. We also continue to expand our footprint in international markets and
in FY 22 achieved highest ever sales in Africa and Middle East while also adding new
export markets. We have also recorded performances in our components (EEC) and
Non-Automotive Engine Business.
All signs indicate that the Indian economy and CV industry will grow at a rapid pace in
the coming few years. Based on the strong foundation, high degree of customer-orientation,
and excellent execution VECV is well positioned to realize our vision to be recognized as
the Industry Leader driving modernization in commercial transportation in India and the
developing world.
Looking ahead we are committed to take forward our journey of making VECV a customer-
centric organization with consistent progress in network development, retail excellence,
superior uptime, and digitalization initiatives. We are also gearing up for the future by
addressing sustainability in all aspects of our business and evolving the right products,
services, business models, people and capabilities
LOOKING AHEAD
We introduced our first Integrated Report last year on the back of renewed commitment
to focus on Environment, Social and Governance (ESG) performance parameters. Over the last
few years, we have not only established a strong and resilient business model, but also
made critical strides to deliver positive results towards our ESG vision. In recognition
of these efforts, Dow Jones ranked EML as one among only ten global automotive companies
to feature on its elite list of Dow Jones Sustainability Indices 2021 (DJSI) in the
Emerging Markets category. Also in December last year, Royal Enfield was recognized with
the ‘Challengers Award’ in the Mega Large Automotive Business category at the
Frost & Sullivan and TERI Sustainability 4.0 Awards 2021.
Moving forward we will continue to sharpen our overarching Environmental, Social and
Governance (ESG) vision with a firm focus on REBALANCE. All aspects of business at EML
will be developed and driven with REBalance at its very heart.
We will continue our efforts to create motorcycles that are loved and revered by
motorcycling enthusiasts across the world. Our electric vehicle plans will form a critical
part of our product development process moving forward, while we continue our work on the
internal combustion engine offerings. Our focus on EV will be driven by our ethos of
creating modern classic motorcycles accessible and appealing to consumers of today.
Riding ahead towards new horizons and challenges, I am confident that our teams will
power the Company on this new journey as we realize the long term market potential for
both Royal Enfield and VECV. At Royal Enfield, we are at the cusp of incrementally scaling
up our international business, and turning a new chapter in India as well. To further fuel
this plan in a strategic direction, we have created a new empowered, multicultural,
cross-functional management team structure that will work with Govindarajan and me to push
forward on the next growth journey.
EML draws its success from its numerous stakeholders including its people, business
partners, and communities. I would like to extend my sincere gratitude to each and every
one of them and their families for their support and faith and for always inspiring us to
step up to challenges and explore our potential to scale newer heights.
Thank you
  Â
Eicher Motors Ltd
Directors Reports
To the Members of Eicher Motors Limited
The Directors have pleasure in presenting the 41st Annual Report along with
the Audited Financial Statements of your Company for the financial year ended March 31,
2023.
FINANCIAL RESULTS
Your Company has earned a total revenue from operations of Rs. 14,066.64 crores during
the financial year 2022-23. The profit before depreciation and interest amounted to Rs.
3,393.50 crores, which is 24.1% of the total revenue. After accounting for other income of
Rs. 639.84 crores, interest expense of Rs. 12.97 crores and depreciation of Rs. 512.05
crores, profit before tax amounted to Rs. 3,508.32 crores.
Profit after tax amounted to Rs. 2,622.59 crores after an income tax provision of Rs.
885.73 crores. Total Comprehensive income for the year, net of tax amounted to Rs.
2,632.54 crores.
The financial statements are summarised below:
Particulars |
For the financial year ended March 31, 2023 |
For the financial year ended March 31, 2022 |
Net Revenue from operations |
14,066.64 |
10,122.86 |
Profit before depreciation and interest |
3,393.50 |
2,113.56 |
| Interest |
12.97 |
10.25 |
| Depreciation |
512.05 |
445.52 |
Profit before other income and tax |
2,868.48 |
1,657.79 |
| Other income |
639.84 |
454.28 |
Profit before tax |
3,508.32 |
2,112.07 |
| Provision for tax (including Deferred tax) |
885.73 |
525.85 |
Net profit after tax |
2,622.59 |
1,586.22 |
Other comprehensive income |
9.95 |
(9.13) |
Total Comprehensive income for the year/period, net of tax |
2,632.54 |
1,577.09 |
| Balance in statement of profit and loss brought forward from previous
year |
10,112.61 |
8,993.44 |
| Amount available for appropriation: |
12,729.13 |
10,577.28 |
| (Excluding exchange difference in translation of foreign operations) |
|
|
| Dividend for FY 2020-21, paid in FY 2021-22 |
- |
464.67 |
| Dividend for FY 2021-22, paid in FY 2022-23 |
574.19 |
- |
| Dividend proposed for FY 2022-23, to be paid in FY 2023-24 |
1,011.88 |
- |
| Earnings per share |
|
|
| - Basic (Rs.) |
95.91 |
58.02 |
| - Diluted (Rs.) |
95.74 |
57.96 |
CHANGE IN THE NATURE OF BUSINESS, IF ANY
There is no change in the nature of business of the Company during the financial year
under review.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY THAT
HAVE OCCURRED AFTER MARCH 31, 2023 TILL THE DATE OF THIS REPORT
There have been no material changes or commitments affecting the financial position of
the Company which have occurred after March 31, 2023 till the date of this report.
DIVIDEND
The Board of Directors at its meeting held on May 11, 2023, has recommended for
approval of the shareholders, payment of dividend of Rs. 37/- per equity share of face
value of Re. 1/- each (@ 3700%) out of the profits for the financial year 2022-23 in
accordance with the Dividend Distribution Policy of the Company.
The dividend, if approved by the shareholders in the ensuing Annual General Meeting,
shall be paid in the following manner: a) To all Beneficial Owners in respect of shares
held in dematerialised form as per the data made available by the National Securities
Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL) as of
the close of business hours on August 16, 2023 (record date);
b) To all Members in respect of shares held in physical form as of the close of
business hours on August 16, 2023 (record date)
AMOUNTS TRANSFERRED TO RESERVES
During the financial year 2022-23, no amount to the General Reserve of the Company.
BRIEF DESCRIPTION OF THE STATE OF COMPANY'S AFFAIRS/BUSINESS PERFORMANCE
Your Company has sold 8,34,895 motorcycles in the financial year 2022-23, 38.6% higher
when compared to 2021-22 sales of 6,02,268 motorcycles. Out of 8,34,895 motorcycles sold
in 2022-23, 1,00,055 motorcycles were exported, an increase of 23.5% over previous year
export volume of 81,032 motorcycles.
Net Revenue from operations for 2022-23 year was Rs. 14,066.64 crores, 39.0% higher
when compared with previous year Rs. 10,122.86 crores. Net Sales of spare parts, gears and
services increased to Rs. 1,855.07 crores in 2022-23 from Rs. 1,395.07 crores in the
previous year, with a growth of 33.0%.
Your Company's profit before depreciation, interest and tax Rs. 3,393.50 crores in
financial year 2022-23, higher by 60. over Rs. 2,113.56 crores recorded in financial year
2021-22.
MARKET AND FUTURE PROSPECTS
Please refer to the Management Discussion & Analysis Report which forms part of the
Annual Report.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Information on conservation of energy, technology absorption, foreign exchange earnings
and outgo, as required to be given pursuant to the provisions of Section 134 of the
Companies Act, 2013 ("the Act"), read with the Companies (Accounts) Rules, 2014
is provided under Annexure-1.
DISCLOSURE REGARDING ISSUE OF SWEAT EQUITY SHARES AND EQUITY SHARES WITH DIFFERENTIAL
RIGHTS
The Company has not issued any sweat equity shares or equity shares with differential
rights during the financial year 2022-23.
CHANGES IN SHARE CAPITAL & THE
COMPANY'S EMPLOYEE STOCK OPTION PLAN, 2006 AND RESTRICTED STOCK UNITS PLAN, 2019
The paid-up Equity Share Capital of the Company as on March 31, 2023, was Rs.
27,34,81,570/-. During the year under review, the Company has issued 58,468 Equity Shares
(Face value Re. 1/- each) pursuant to its Employees Stock Option Plan, 2006 ("ESOP,
2006"). No shares have been issued under the Company's Restricted Stock Units Plan,
2019 ("RSU Plan, 2019") during the year.
wastransferred A Statement giving complete details as at March 31, 2023, pursuant to
Regulation 14 of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations,
2021 is available on the website of the Company and the web link for the same is https://www.eicher.in/content/dam/eicher-motors/
Eicher-Motors-ESOP-Statement-2022-23.pdf
ESOP, 2006 and RSU Plan, 2019, for grant of stock options have been implemented in
accordance with the aforesaid
SEBI Regulations. A certificate from M/s. AGSB & Associates, Secretarial Auditors,
in this regard will be available for inspection on the website of the Company under
"Investors" Section on the date of Annual General Meeting. The Company has not
changed its ESOP, 2006 and RSU Plan, 2019 during the year under review.
Further, details of options granted and exercised are included in Note no. 49 in the
notes to accounts forming part of standalone financial statements. was
DEPOSITS
The Company has not accepted any deposits including from the public/members under
Section 73 of the Act read with the Companies (Acceptance of Deposits) Rules, 2014 during
the financial year under review. The Company has not renewed/ accepted fixed deposits
after May 29, 2009. There are no deposits that remain unclaimed.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with Section 149(7) of the Act and Regulation 25(8) of SEBI (LODR)
Regulations, 2015, Independent
Directors of the Company have given written declarations to the Company confirming that
they meet the criteria of independence as laid down under Section 149(6) of the Act and
Regulation 16 of SEBI (LODR) Regulations, 2015. As on March 31, 2023, all Independent
Directors of the Company have valid registrations with the Independent Directors' databank
maintained by Indian Institute of Corporate Affairs in terms of Section 150 of the
Companies Act, 2013 read with Rule 6 of the Companies (Appointment and Qualifications of
Directors) Rules, 2014.
Director liable to retire by rotation
In accordance with the provisions of Section 152 and other applicable provisions of the
Act, Mr. Siddhartha Lal, Managing
Director, retires by rotation at the ensuing 41st Annual General Meeting and
being eligible offers himself for re-appointment. The Board of Directors recommends his
reappointment.
Reappointment of Directors
The Board of Directors of the Company at its meeting held on May 11, 2023, after taking
into consideration recommendations of the Nomination & Remuneration Committee of the
Company and subject to requisite approvals of the shareholders at the ensuing 41st
Annual General
Meeting, have re-appointed: a) Mr. Inder Mohan Singh as Independent Director of the
Company for second term of 5 (five) years with effect from November 12, 2023; b) Mr. Vinod
Kumar Aggarwal as Non-Executive Non-Independent Director of the Company, liable to retire
by rotation, for a period of 5 (five) years with effect from April 1, 2024.
In the opinion of the Board, Mr. Inder Mohan Singh and Mr. Vinod Kumar Aggarwal
possesses requisite skills & expertise required for the business and operations of the
Company. For details on skills, expertise, competencies of Mr. Singh and Mr. Aggarwal,
please refer to the Corporate Governance Report forming part of this Annual Report.
In addition, the shareholders of the Company at the 40th Annual General
Meeting held on August 24, 2022 approved the appointment of Mr. B. Govindarajan as the
Whole-time Director of the Company for a period of 5 (five) years w.e.f. August 18, 2021.
Change in the Board and Key Managerial Personnel
Mr. Kaleeswaran Arunachalam resigned from the position of Chief Financial Officer of
the Company with effect from of working hours of September 2, 2022. The Board of Directors
pursuant to the recommendation of the Audit Committee and the Nomination &
Remuneration Committee appointed Ms. Vidhya Srinivasan as Chief Financial Officer and Key
Managerial Personnel of the Company w.e.f. November 18, 2022.
The Board at its meeting held on August 10, 2022, pursuant to the recommendation of
Nomination and Remuneration
Committee appointed Mr. Atul Sharma as Company Secretary (Key Managerial Personnel) and
Compliance Officer of the Company w.e.f. August 10, 2022.
There has been no other change in the Directors and Key Managerial Personnel of the
Company during the financial year under review.
THE COMPANY'S POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
The Company's Hiring & Employment Policy:
A number of factors are considered towards selecting candidates at the Board level
which include: Ability to contribute to strategic thinking Proficiency in
Governance norms, policies and mechanisms at the Board level
Relevant cross industry/functional experience, educational background, skills and
experience Wherever relevant, independence of Directors in terms of applicable
regulations
With respect to core competencies and personal reputation,
Company's practices ensure through the selection process that all Directors: Exhibit
integrity and accountability Exercise informed judgement Are financially
literate Are mature and confident individuals
Operate with high performance standards
Removal of Directors:
Under extreme circumstances and in highly unusual situations it may become necessary to
remove a Director from the Board of the Company. Reasons for doing so, may relate to any
of the following (indicative; other than as provided under the Companies Act, 2013): i.
Breach of confidentiality in anyway ii. Failure to meet obligatory procedures in the
disclosure of conflict of interest iii. Failure to fulfil the fiduciary duties of a
Director for the Company iv. Acting in any other manner which is against the interests of
the Company
Due process of law will be followed in this regard.
The Company's Remuneration Policy:
The Company's Compensation Strategy defines the principles underlying compensation
philosophy for its employees. Compensation is a critical piece of overall human-resources
strategy and broadly refers to all forms of financial returns and tangible benefits that
employees receive as a part of their employment relationship.
The Remuneration/Compensation Policy of the Company is designed to attract, motivate
and retain manpower. This Policy applies to Directors and Senior Management including Key
Managerial Personnel (KMP) and other employees of the Company.
The remuneration of the Managing Director, Whole-time/ Executive Director, Key
Managerial Personnel (KMPs) and
CXOs of the Company is recommended by the Nomination and Remuneration Committee based
on criteria such as industry benchmarks, the Company's performance vis-a-vis the industry,
responsibilities and performance assessment. The Company pays remuneration by way of
salary, perquisites and allowances (fixed component), incentive remuneration and/or
commission (variable components).
Loans/advances may be extended to employees for various personal purposes or to aid
business functions, from time to time, on a case to case basis, in accordance with the
relevant Human Resource guidelines/policies in force or as may be approved by the Chief
Financial Officer, the Chief Human Resource Officer of the Company, or any person
authorised them, including for relocation viz. school deposits/expenses, travel/logistics
expenses, housing advance, housing deposits/ brokerage, any other expenses towards
relocation; advance submission of tax deducted at source by the Company on behalf of
employee; advance towards medical insurance premiums; loans granted to enable grantees
exercise ESOPs and towards deposit of perquisite tax thereon; loans/advances covered under
Employees Union recognised by the Company as per Union Agreement; medical emergency
advances etc.
Additionally, in the event of exigencies arising due to calamities, the Company may
provide financial assistance to any affected employee by way of extending interest-free
loan in an amount not exceeding his/her two months' gross salary.
Remuneration by way of commission to the Non-Executive
Directors shall be decided by the Board of Directors within the ceiling of a sum, not
exceeding 1% of the annual net profits of the Company in each of the financial year,
calculated in accordance with the provisions of the Act.
Remuneration of KMPs and employees largely consists of basic remuneration, perquisites,
allowances, performance incentives and employee stock options granted pursuant to the
Employees Stock Option Plan, 2006 and Restricted Stock Units Plan, 2019 of the Company.
The components of remuneration vary for different employee levels and are governed by
industry patterns, qualifications and experience of the employee and his/her
responsibility areas, employee performance assessment etc.
The said Policy is also available on the website of the Company at https://www.eicher.in/content/dam/eicher-motors/
Remuneration-Compensation-Policy.pdf
ANNUAL EVALUATION OF BOARD,
COMMITTEES AND INDIVIDUAL DIRECTORS
During the financial year under review, evaluation of the Board, its Committees and
Individual
Directors was carried out pursuant to the Board Performance
Evaluation Policy of the Company and provisions of the Companies Act, 2013 and SEBI
(LODR) Regulations, 2015 by the Board at its meeting held on February 14, 2023.
The Nomination and Remuneration Committee has specified the criteria for effective
performance evaluation of the Board, its Committees and Individual Directors of the
Company. The performance of the Board and Committees was evaluated after seeking inputs
from all the Directors on the basis of the criteria such as Board/Committee constitution,
frequency of meetings, effectiveness of processes etc. The performance of individual
Directors (including Independent Directors) was evaluated by the Board (excluding the
Director being evaluated) after seeking inputs from all Directors on the basis of the
criteria such as thought contribution, business insights and applied knowledge. Once the
evaluation process is complete, the Nomination & Remuneration Committee reviews the
implementation of the manner specified by it for performance evaluation and effectiveness
of the process.
Separate meeting of Independent Directors was also held on February 13, 2023, to review
the performance of the Non-Independent Directors, performance of the Board as a whole and
performance of the Chairperson of the Company.
Review of the performance of the Chairperson was done after taking into account the
views of the Executive Directors and Non-Executive Directors (excluding the Chairperson
being evaluated).
MEETINGS OF BOARD OF DIRECTORS
Six (6) meetings of the Board of Directors of the Company were conducted during the
financial year under review. The details of Board/Committees/Shareholder meetings are
provided under the Corporate Governance Report which forms part of the Annual Report.
DETAILS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE ACT
The details of loans, guarantees and investments made by the Company during the
financial year under review which are covered under Section 186 of the Companies Act, 2013
forms part of the notes to the financial statements provided in this Annual Report.
PARTICULARS OF RELATED PARTY TRANSACTIONS
All contracts/arrangements/transactions entered into by the Company during the
financial year with related parties are in compliance with the applicable provisions of
the Companies
Act, 2013 and SEBI (LODR) Regulations, 2015. The Board of
Directors has approved the criteria pursuant to which omnibus approval can be granted
for related party transactions by the
Audit Committee. Requisite approvals of the Audit Committee, the Board and the
shareholders, as required, were obtained by the Company for related party transactions.
formal annual There were no materially significant Related made by the Company with
Promoters, Directors or Key Managerial Personnel, subsidiaries, joint ventures and
associate Companies which may have a potential conflict with the interest of the Company.
Transactions that are required to be reported in Form AOC-2, are attached as Annexure-2
and forms part of this report. The details of the transactions with Related Parties are
also provided in the Company's financial statements in accordance with Indian Accounting
Standards.
The Company had obtained shareholders' approval at the
40th Annual General Meeting (AGM) held on August 24, 2022 for certain material related
party transactions between VE Commercial Vehicles Limited (VECV), Subsidiary of the
Company, and Volvo Group India Private Limited (VGIPL), a related party of VECV, for the
financial year 2022-23 as per the amended provisions of SEBI (LODR) Regulations, 2015.
Further, based on the recommendations of the Audit Committee and the Board, similar
material related party transactions between VECV and VGIPL for the financial year 2023-24
are proposed at the ensuing 41st Annual General Meeting for the approval of the
shareholders by way of Ordinary resolution. Please refer to the notice of 41st AGM for
further details.
The Company has a Policy on materiality of and dealing with
Related Party Transactions, as approved by the Board, which is available on its website
www.eichermotors.com.
AUDIT COMMITTEE
The Audit Committee of the Company is constituted pursuant to the requirements of the
Companies Act, 2013 and SEBI (LODR) Regulations, 2015. At present, members of the Audit
Committee are:
SI. No. |
Name of Members |
| 1 |
Mr. S. Sandilya (Chairman) |
| 2 |
Mr. Siddhartha Lal |
| 3 |
Ms. Manvi Sinha |
| 4 |
Mr. Inder Mohan Singh |
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM
The Company has formulated a Whistle Blower Policy to establish a vigil mechanism for
Directors, employees, dealers and vendors of the Company to report concerns about
unethical behaviour, actual or suspected fraud or violation of the Company's Code of
Conduct or Ethics Policy or to report genuine concerns or grievances including instances
of leak or suspected leak of unpublished price sensitive information pursuant to SEBI
(Prohibition of Insider Trading) Regulations, 2015. The Whistle Blower Policy of the
Company is available at https://www.eicher.in/content/dam/eicher-motors/
Eicher-Whistle-Blower-Policy.pdf
SUBSIDIARIES, ASSOCIATE AND JOINT VENTURE COMPANIES
Highlights of performance of subsidiaries, associate and joint venture Companies and
their contribution to the overall performance of the Company during the year under review.
Royal Enfield North America Limited (RENA)
RENA was incorporated in March 2015 as a 100% subsidiary of Eicher Motors Limited to
manage the distribution and sales of Royal Enfield products and services including,
motorcycles, spares and gear in North America. It sold 13,827 motorcycles (including 925
motorcycles sold to Royal Enfield Canada Limited, 100% subsidiary of RENA) during the year
2022-23 and achieved revenue of Rs. 528.21 crores (including revenue of Rs. 33.46 crores
from sales to Royal Enfield Canada
Limited). As of March 2023, RENA had contracted with 154 multi brand outlets in the
USA. The company participated in 22 Dealer Demo Events and continued to support American
Flat Track and Build Train Race (BTR) Programmes with participation in 31 collective
events.
Royal Enfield Canada Limited (RECA)
RECA is a 100% subsidiary of RENA. RECA was incorporated in April 2016 in Canada to
manage the distribution and sales of Royal Enfield products and services including,
motorcycles, spares and gear in Canada. During the year 2022-23, the company sold 870
motorcycles and achieved revenue of Rs. 33.48 crores. As of March 2023, RECA had
contracted with 16 multi brand outlets in Canada. The Company participated in 12 dealer
demo events.
Royal Enfield Brasil Comercio De Motocicletas Ltda
Royal Enfield started its operations in Brazil through a direct distribution company by
the name of Royal Enfield Brasil Comercio de Motocicleta Ltda in 2016. During the year
2022-23, Eicher Motors Limited and RE Brazil entered into a tripartite agreement with
Dafra da Amazonia Industria e Comercio de Motocicletas, a third-party CKD manufacturer, to
assemble the components into motorcycles. The company sold 12,114 motorcycles in the
financial year 2022-23 and achieved a revenue of Rs. 250.32 crores.
Royal Enfield (Thailand) Ltd
Royal Enfield (Thailand) Ltd. was incorporated on September 18, 2018 and commenced
sales operations from September 2019. The Company's footprints have been 12 exclusive
stores, 5 studio stores and 12 authorised sales and service points. The brand love has
been demonstrated by the company's passionate Customers & Communities from various
provinces in Thailand and thereby impacting the company's growing Mindshare & Market
Share in the Kingdom of Thailand. Company is among the top #3 motorcycles in the
Mid-segment with a market share of 16% in FY 2022-23.
The company has commenced its manufacturing operations through CKD and started selling
motorcycles assembled in Thailand in 2021-22. During the year 2022-23, the company
received four awards from the coveted Grand Prix group, three awards for "Bike of the
Year 2023" for Classic 350 being the "Best Modern Classic over 250 cc".
Hunter 350 bagged the "Best Modern Classic Light Weight" and SCRAM 411 bagged
the "Best Touring Lightweight" motorcycle award. Also the company's newest Super
Meteor 650 received "The Most Unique Bike Award" from Bangkok International
Motor Show organisers 2023 as well. The company has sold 4,116 motorcycles and achieved
revenue of Rs. 131.17 crores.
Royal Enfield UK Ltd
Royal Enfield UK Ltd, was incorporated in August, 2019 and commenced sales operations
from June 2020. The company reflected steady growth in its footprints from 11 to 13
exclusive stores and 61 to 84 Authorised Sales & Service Points. During the financial
year 2022-23, the company sold 7,546 motorcycles against the plan of 9,000 motorcycles,
reflecting a rise in the mid-size market share in the UK from 18.6% in financial year
2021-22 to 20.4% in financial year 2022-23 and achieved a revenue of Rs. 186.71 crores in
financial year 2022-23.
Eicher Polaris Private Limited (EPPL)
Eicher Polaris Private Limited, a joint venture company, was involved in manufacturing
and sales of personal utility vehicles.
The Board of Directors and Shareholders of EPPL at their respective meetings held on
February 18, 2020 approved voluntary liquidation (solvent liquidation) of EPPL and
appointed an insolvency professional as the liquidator. The liquidation process is
currently under progress.
VE Commercial Vehicles Limited and its step-down subsidiaries
Overview of performance covered separately in the Annual
Report.
Report containing salient features of financial statements of subsidiaries and joint
venture Companies
Pursuant to the provisions of Section 129(3) of the Act, a report containing salient
features of the financial statements of the Company's subsidiaries and joint venture
Company in
Form AOC-1 is attached as Annexure-3.
COMPANIES WHICH HAVE BECOME OR CEASED TO BE THE COMPANY'S SUBSIDIARIES, JOINT VENTURES
OR ASSOCIATE COMPANIES DURING THE FINANCIAL YEAR
VE Electro-Mobility Limited, incorporated on April 27, 2022, under the Companies Act,
2013, which is a 100% subsidiary of VE Commercial Vehicles Limited (Company's material
subsidiary) became the subsidiary of the Company during the financial year 2022-23.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND THE COMPANY'S OPERATIONS IN FUTURE
There are no significant and material orders passed by the Regulators or Courts or
Tribunals which would impact the going concern status of the Company and its future
operations. However, members' attention is drawn to the statement on contingent
liabilities, commitments in the notes forming part of the financial statements.
DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE
FINANCIAL STATEMENTS
Details of internal financial control and its adequacy are included in the Management
Discussion and Analysis Report, which forms part of the Annual Report.
CORPORATE SOCIAL RESPONSIBILITY
The Company has constituted a Corporate Social
Responsibility (CSR) Committee and has framed a Corporate Social Responsibility Policy
and identified Local Area Development, Social Mission (Responsible Travel and
environmental sustainability) and road safety, as themes which will be given preference
while formulating Annual Action Plans.
The Company will continue to support social projects that are consistent with the
Policy.
Corporate Social Responsibility Committee of the Company is constituted as follows:
1. Mr. S. Sandilya Chairman
2. Mr. Siddhartha Lal
3. Mr. Inder Mohan Singh
4. Ms. Manvi Sinha
Annual Report on CSR activities is annexed as Annexure-4.
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements have been prepared by the Company in accordance
with the requirements of Indian Accounting Standard ("Ind AS")-110
"Consolidated Financial Statements" and Ind AS 28 "Investment in Associates
and Joint ventures", prescribed under Section 133 of the Companies Act, 2013, read
with the rules issued thereunder. The consolidated financial statements are provided in
the Annual Report. A statement containing the salient features of the financial statements
of each of the subsidiary and joint venture in the prescribed Form AOC-1 is attached.
Pursuant to Section 136 of the Act, the financial consolidated financial statements and
separate accounts of the subsidiaries are available on the website of the Company at www.eichermotors.com.
These are also available for inspection by the shareholders at the Registered Office of
the Company during business hours. The Company shall provide free of cost, the copies of
the financial statements of the Company and its subsidiary Companies to the shareholders
upon their request. The consolidated total Comprehensive income of the Company and its
subsidiaries amounted to Rs. 2,922.49 crores for the financial year 2022-23 as compared to
Rs. 1,657.44 crores for the previous financial year 2021-22.
AUDITORS
(a) Statutory Auditors and their report
M/s S.R. Batliboi & Co., LLP, Chartered Accountants (Firm Registration Number: FRN
301003E/E300005) were re-appointed as Statutory Auditors in the 40th (Fortieth) Annual
General Meeting (AGM) of the Company for second term of five consecutive years, from the
conclusion of 40th AGM till the conclusion of 45th AGM to be held in the year 2027. The
Statutory Auditors have confirmed their eligibility under Section 141 of the Companies
Act, 2013 and the Rules made thereunder to continue to act as Statutory Auditors of the
Company.
The Statutory Auditors had carried out audit of financial statements of the Company for
the financial year ended March 31, 2023 pursuant to the provisions of the Act. The reports
of Statutory Auditors form part of the Annual Report. The reports are self-explanatory and
do not contain any qualifications, reservations or adverse remarks.
(b) Secretarial Auditors and their report
The Board of Directors has appointed M/s. AGSB & Associates, Company Secretaries,
to conduct Secretarial Audit for the financial year ended March 31, 2023. As required
under Section 204 of the Companies Act, 2013, the Secretarial Audit Report is annexed as Annexure-5
to this Report. The Secretarial Auditors' Report is self-explanatory and there is no
qualification or adverse remark in the report relating to the financial year 2022-23.
The Secretarial Auditors provided two observations in its report as follows:
(a) The Company has filed an application with the Reserve Bank of India, Mumbai for the
compounding of contravention of regulation 8(2) of erstwhile FEM (Transfer or Issue of
Security by a Person Resident outside India) Regulations, 2000/FEMA 20 read with Master
Circular No. 15/2015-16 dated July 01, 2015 as a result of omission to mention the name of
a Non-Resident Indian/Overseas Citizen of India, in Form ESOP filed physically on October
26, 2016 with the Reserve Bank of India, New Delhi through AD Bank, intimating grant of
Employee Stock Option under the Company's Employee Stock Option Plan, 2006;
(b ) The Company has filed an appeal before the Hon'ble
Securities Appellate Tribunal against the adjudicating order Ref. No.
ORDER/SBM/KL/2022-2023/16885 dated June 01, 2022 passed by Securities and Exchange Board
of India ("SEBI") imposing a monetary penalty of Rs. 10,00,000 (Rupees Ten Lakhs
only) on the Company for violation of the provisions of clause 23 of General Norms for
processing of documents under RRTI Circular no. 1 (2000-2001) dated May 09, 2001, Clause
3(e) of Listing Agreement read with Regulation 39(2) and 103(2) of the SEBI (LODR)
Regulations, 2015 for not following the due process as prescribed under the above
regulations while approving requests for duplicate shares certificates in few cases during
the period from 2007 to 2012. The Company has filed an appeal against the order of SEBI
before the Hon'ble Securities Appellate Tribunal.
The Board of Directors took note of the above observations and the corrective action
taken by the Company. The management is advised to exercise more caution to avoid any such
instance in the future.
Further, pursuant to provisions of Regulation 24A of the SEBI (LODR) Regulations, 2015,
VE Commercial Vehicles Limited (VECV) is a Material subsidiary of the Company in terms of
Regulation 16(1)(c) of the SEBI (LODR) Regulations, 2015. The Secretarial Audit
Report submitted by the Secretarial Auditors of VECV is also annexed as Annexure-6
to this Report.
(c) Cost Auditors
In terms of Section 148 of the Companies Act, 2013 read with Rule 8 of the Companies
(Accounts) Rules, 2014, it is hereby confirmed that the cost accounts and records are made
and maintained by the Company as specified by the Central Government under sub-section (1)
of Section 148 of the Companies Act, 2013.
M/s. Jyothi Satish & Co, a qualified Cost Accountant Firm (Firm registration No.
101197), has been appointed as the Cost Auditors to carry out audit of the cost records of
the Company for the financial year 2022-23 pursuant to the provisions of the Companies
Act, 2013. The Cost auditor shall submit its report to the Board of Directors within the
time prescribed under the Companies Act, 2013 and the rules made thereunder.
DETAILS IN RESPECT OF FRAUD REPORTED BY AUDITORS
Pursuant to provisions of Section 143(12) of the Companies Act, 2013, the Statutory
Auditors, the Secretarial Auditors and the Cost Auditors have not reported any incident of
fraud to the Audit Committee or Board during the year under review.
CORPORATE GOVERNANCE, MANAGEMENT DISCUSSION & ANALYSIS AND BUSINESS RESPONSIBILITY
& SUSTAINABILITY REPORTS
As per SEBI (LODR) Regulations, 2015, Corporate Governance Report together with the
Auditors' certificate regarding compliance of conditions of Corporate
Governance, Management Discussion & Analysis Report and Business Responsibility
& Sustainability Report form part of the Annual Report.
INTEGRATED REPORT
The Company has voluntarily prepared an Integrated
Report which will help stakeholders to understand the Company's economic,
environmental, social and governance performance more effectively and analysing the
financial and non-financial performance of the Company. With this, stakeholders shall also
have a better understanding of the Company's long-term perspective. The report is also
available on the website of the Company at www.eichermotors.com.
ANNUAL RETURN
The Annual Return as required under Section 92 (3) read with Section 134(3)(a) of the
Companies Act, 2013 is available on the website of the Company and the web link for the
same is https://www.eicher.in/content/dam/eicher-motors/
Annual-Report-(Form-MGT-7)-2022-23.pdf.
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) that in the preparation of the Annual
Financial Statements for the year ended March 31, 2023, the applicable accounting
standards have been followed along with proper explanation relating to material
departures, if any;
b) that such accounting policies as mentioned in Note no. 3 of the Notes to the
Financial Statements have been selected and applied consistently and judgement and
estimates have been made that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company as at March 31, 2023 and of the profits of the
Company for the year ended on that date;
c) that proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 2013 for
safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;
d) that the Annual Financial Statements have been prepared on a going concern basis;
e) that proper internal financial controls to be followed by the Company have been laid
down and that the financial controls are adequate and were operating effectively; and
f) that proper systems have been devised to ensure compliance with the provisions of
all applicable laws and that such systems were adequate and operating effectively.
PARTICULARS OF DIRECTORS & EMPLOYEES
Disclosures as required under Section 197(12) of the Companies Act, 2013 read with Rule
5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:
1) Ratio of the remuneration of each director to the median remuneration of the
employees of the Company and the percentage increase in remuneration of Directors &
KMPs in the financial year:
Sl. No. |
Name of the Director/ KMP |
Designation |
Ratio of Remuneration of Directors to Median Remuneration of
Employees** |
Percentage Increase in Remuneration for FY 2022-23 over FY 2021-22 |
| 1. |
Mr. S Sandilya |
Chairman & Non-Executive Independent Director |
6.7 |
14.1 |
| 2. |
Mr. Siddhartha Lal |
Managing Director |
355.4 |
14.6 |
| 3. |
Mr. Govindarajan |
Whole-time Director and CEO-Royal Enfield |
70.5 |
N.A.* |
|
Balakrishnan |
|
|
|
| 4. |
Mr. Inder Mohan Singh |
Non-Executive Independent Director |
4.0 |
20.9 |
| 5. |
Ms. Manvi Sinha |
Non-Executive Independent Director |
4.0 |
20.9 |
6. |
Mr. Kaleeswaran Arunachalam |
Chief Financial Officer (till September 2, 2022) |
19.2 |
N.A.* |
| 7. |
Mr. Atul Sharma |
Company Secretary (w.e.f. August 10, 2022) |
- |
N.A.* |
| 8. |
Ms. Vidhya Srinivasan |
Chief Financial Officer (w.e.f. November 18, 2022) |
- |
N.A.* |
*The % change in remuneration is not comparable as the said Directors/Key Managerial
Personnel held their respective positions for a part of the year in either FY 2021-22 or
in FY 2022-23 **Remuneration of Directors/Key Managerial Personnel who held their
respective positions for a part of the year in either FY 2021-22 or in FY 2022-23 has not
been annualised
Note:
1) Mr. Vinod Kumar Aggarwal, Non-Executive Director Non-Independent, is not drawing any
remuneration by way of sitting fees or commission or otherwise, from the Company.
2) Percentage increase in the median remuneration of the employees in the financial
year: 15%
3) Number of permanent employees on the rolls of Company as at March 31, 2023: 5,002
employees.
4) The average increase in median remuneration of the employees (other than managerial
personnel) was 15% and the increase in the managerial remuneration was also 15%.
5) It is hereby affirmed that the remuneration is paid as per the Remuneration Policy
of the Company.
Further, a statement containing particulars of top ten employees in terms of the
remuneration drawn and employees drawing remuneration in excess of the limits set out in
Rule 5(2) & (3) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, as amended, are provided as part of the Directors' Report.
However, in terms of provisions of Section 136 of the said Act, the Annual Report is being
sent to all the members of the Company and others entitled thereto, excluding the said
statement. Any member interested in obtaining such particulars may write at investors@eichermotors.com.
The said information is also available for inspection at the Registered Office of the
Company during working hours till the date of Annual General Meeting.
RISK MANAGEMENT
Requisite information is provided under Management
Discussion and Analysis Report which forms part of the
Annual Report.
COMPLIANCE OF SECRETARIAL STANDARDS
During the financial year under review, complied with applicable Secretarial Standards
specified by the Institute of Company Secretaries of India pursuant to Section 118 of the
Companies Act, 2013.
SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT,
2013
Requisite information is provided under the Corporate Governance Report which forms
part of the Annual Report.
PROCEEDINGS UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016
No Corporate Insolvency Resolution Process has commenced against the Company during the
financial years under the Insolvency and Bankruptcy Code, 2016.
ONE-TIME SETTLEMENT AND VALUATION DONE WHILE TAKING LOAN FROM BANKS AND FINANCIAL
INSTITUTIONS
During the year under review, there was no one-time settlement with any Bank or
Financial Institution. Hence, no valuation was required to be undertaken.
ACKNOWLEDGEMENT
We thank our customers, business associates and bankers for their continued support
during the financial year.
We wish to convey our deep appreciation to the dealers of the Company for their
achievements in the area of sales and service, and to suppliers/vendors for their valuable
support.
We also place on record our sincere appreciation for the enthusiasm and commitment of
the Company's employees for the growth of the Company and look forward to their continued
involvement and support.
  Â