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Roto

pumps
since 1968 , , ,

RPL/CORP/SE
September 06, 2022

The Listing Department, The Listing Department


SSE Limited, The National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers, Exchange Plaza,
Dalal Street, Sandra Kurla Complex,
Mumbai- 400001 Sandra (E), Mumbai- 400051
Scrip Code: 517500 Symbol: ROTO

Dear Sirs,

Sub: Notice of Annual General Meeting and Annual Report under Regulation 34 of
SEBI !Listing Obligation and Disclosure Requirements) Regulations. 2015

In terms of the requirements of Regulation 34 of SESI (Listing Obligations and


Disclosure Requirements) Regulations, 2015, we hereby submit a copy of Notice of 47th
Annual General Meeting to be held on Thursday, September 29, 2022 at 11.30 A.M.
through Video Conferencing/Other Audio Visual Means and Annual Report for the
financial year ended March 31, 2022.

This is for your kind Information and records please.

Thanking You,

Yours faithfully,
For ROTC PUMPS LTI'l,
ASHWANI Digitally signed by
ASHWANI KUMAR
KUMAR VERMA
Date: 2022.09.06
VERMA 22:36:40 +05'30'

ASHWANI K. VERMA
COMPANY SECRETARY

Encl.: Ala

ROTC PUMPS LTI'J.


Regd. Off. & Global Headquarters: 13, Roto House, Noida Special Economic Zone, Noida-201305, Uttar Pradesh, India
T: +91120 2567902-5 F: +91120 2567911 contact@rotopumps.com [!] ,[!]
CIN - L28991UP1975PLCOOI.J.52 www.rotopumps.com 'f:···. :!n:i
NOTICE OF ANNUAL GENERAL MEETING
To 0001211N/ N500019) be and are hereby re-appointed as
The Member(s) the Statutory Auditors of the Company, to hold office for a
second term of five years from the conclusion of this 47th
Roto Pumps Limited Annual General Meeting till the conclusion of the 52th
Notice is hereby given that the Forty Seventh Annual General Annual General Meeting of the Company at such
Meeting (“AGM”) of the Members of ROTO PUMPS LIMITED will be remuneration as may be fixed by the Board of Directors of
held on Thursday, the 29th September, 2022 at 11.30 A.M. IST the Company.”
through Video Conferencing (VC) / Other Audio Visual Means SPECIAL BUSINESS
(OAVM) to transact the following businesses:
5. Appointment of Branch Auditors
ORDINARY BUSINESS
1. To receive, consider and adopt the audited financial To consider and, if thought fit, to pass, with or without
statements (including consolidated audited financial modification(s), the following resolution as an Ordinary
statements) of the Company for the financial year ended Resolution:
31st March, 2022 together with the Reports of the Board of “Resolved that pursuant to the provisions of Section 143(8)
Directors and Auditors thereon. and other applicable provisions, if any, of the Companies
2. To declare final dividend for the financial year ended 31st Act, 2013 (Act) and the Rules made thereunder, the Board
March, 2022. of Directors of the Company be and is hereby authorized to
appoint the Branch Auditors of Warehouse & Marketing
3. To appoint a Director in place of Mrs. Asha Gupta (DIN: Branch Offices in Australia and United Kingdom and the
00334345), who retires by rotation at this Annual General Overseas Branches which may be opened / acquired
Meeting and being eligible, offered herself for re- hereafter, for the financial year ending 31st March, 2023 in
appointment. consultation with the Company’s Auditors, any person(s)
To consider and, if thought fit, to pass the following qualified to act as Branch Auditor within the provisions of
resolution as a Special Resolution: Section 143(8) of the Act and to fix their remuneration.”
“Resolved that pursuant to the provisions of Section 6. Ratification of the remuneration of the Cost Auditor
152(6) and other applicable provisions, if any, of the To consider and, if thought fit, to pass, with or without
Companies Act, 2013 and in terms of Regulation 17 (1A) of modification(s), the following resolution as an Ordinary
Securities and Exchange Board of India (Listing Obligations Resolution:
and Disclosure Requirements) Regulations, 2015, Mrs. Asha
Gupta (DIN: 00334345), who retires by rotation and being “Resolved that pursuant to the provisions of Section 148
eligible, offered herself for re-appointment, be and is hereby and other applicable provisions, if any, of the Companies
re-appointed as the Director of the Company.” Act, 2013 read with Rule 14 of the Companies (Audit and
Auditors) Rules, 2014, a remuneration of ` 1,15,000/- plus
4. To re-appoint M/s. R N Marwah & Co. LLP, Chartered applicable Goods and Services Tax thereon payable to M/s
Accountants (firm registration no. 0001211N/N500019) Chandra Wadhwa & Co., Cost Accountants (Firm Registration
for the second term as statutory auditors of the Company. No.00239), appointed by the Board of Directors of the
To consider and if thought fit, to pass, with or without Company as the Cost Auditor to conduct audit of cost
modification(s), the following resolution as an Ordinary accounts and records of the Company for the financial year
Resolution: ending 31st March, 2023 be and is hereby ratified.”
“Resolved that pursuant to the provisions of Section 139, “Resolved further that the Board of Directors of the
142 and other applicable provisions, if any, of the Companies Company be and is hereby authorized to do all such acts,
Act, 2013 and rules made thereunder, M/s. R N Marwah & deeds and things as may be necessary to give effect to the
Co. LLP, Chartered Accountants (Firm Registration No. above said resolution.”

Registered Office: By Order of the Board


CIN: L28991UP1975PLC004152
Roto House, Noida Special Economic Zone, Noida–201305 Ashwani K. Verma
E-mail: corp@rotopumps.com Company Secretary
Website: www.rotopumps.com M. No.: F9296

Date: 13.08.2022

Notice of AGM 1
FINANCIAL STATEMENTS

NOTES:
1. In view of the continuing COVID-19 pandemic, the Ministry Circulars issued by the Ministry of Corporate Affairs dated
of Corporate Affairs (“MCA”) has vide its General Circular no. April 08, 2020, April 13, 2020 and May 05, 2020 the
02/2022 dated 5th May, 2022 read with General Circular Company is providing facility of remote e-Voting to its
nos. 02/2021, 14/2020, 17/2020 and 20/2020 dated 13th Members in respect of the business to be transacted at the
January, 2021, 8th April, 2020, 13th April, 2020 and 5th AGM. For this purpose, the Company has entered into an
May, 2020, respectively (“MCA Circulars”) and the Securities agreement with National Securities Depository Limited
and Exchange Board of India (“SEBI”) vide its circular no. (NSDL) for facilitating voting through electronic means, as
SEBI/HO/CFD/CMD2/CIR/P/2022/62 dated 13th May, the authorized agency. The facility of casting votes by a
2022, SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated 15th member using remote e-Voting system as well as venue
January, 2021 and Circular No. SEBI/HO/CFD/CMD1/ voting on the date of the AGM will be provided by NSDL.
CIR/P/2020/79 dated 12th May, 2020 (“SEBI Circulars”)
permitted the holding of Annual General Meeting (“AGM”) 9. In line with the Ministry of Corporate Affairs (MCA) Circular
through VC or OAVM without the physical presence of No. 17/2020 dated April 13, 2020, the Notice calling the
members at a common venue. In compliance with the AGM has been uploaded on the website of the Company at
provisions of the Companies Act, 2013 (“Act”), the Securities www.rotopumps.com. The Notice can also be accessed from
and Exchange Board of India (Listing Obligations and the website of BSE Limited (“BSE”) at www.bseindia.com and
Disclosure Requirements) Regulations, 2015 (“Listing National Stock Exchange of India Limited (“NSE”) at
Regulations”), MCA Circulars and SEBI Circulars the AGM of www.nseindia.com and the AGM Notice is also available
the Company is being held through VC / OAVM only, without on the website of NSDL (agency for providing the
physical presence of members. Remote e-Voting facility) i.e. www.evoting.nsdl.com.
2. Pursuant to the Circular No. 14/2020 dated April 08, 2020, 10. AGM has been convened through VC/OAVM in compliance
issued by the Ministry of Corporate Affairs, the facility to with applicable provisions of the Companies Act, 2013 read
appoint proxy to attend and cast vote for the members is with MCA Circular No. 14/2020 dated April 08, 2020 and
not available for this AGM. However, the Body Corporates MCA Circular No. 17/2020 dated April 13, 2020, MCA
are entitled to appoint authorized representatives to attend Circular No. 20/2020 dated May 05, 2020 and MCA Circular
the AGM through VC/OAVM and participate there at and No. 2/2021 dated January 13, 2021.
cast their votes through e-voting. 11. The Company has provided a facility to Members to exercise
3. The Deemed venue for the Annual General Meeting shall be their right to vote by electronic means both through remote
the Registered Office of the Company at Roto House, Noida e-voting and e-voting during the AGM. The process of
Special Economy Zone and Noida 201305. remote e-voting with necessary user id and password is
4. The Board at its meeting held on 26th May, 2022 given in the subsequent paragraphs. Such remote e-voting
recommend a final dividend of ` 2.85/- per equity share of facility is in addition to voting that will take place at the 47th
` 2/- each i.e. 142.50% for the financial year ended 31st AGM being held through VC/OAVM
March, 2022. The final dividend, if approved by the 12. Members joining the meeting through VC/OAVM, who have
shareholders of the Company at ensuing Annual General not already casted their vote by means of remote e-voting,
Meeting would involve cash outflow of ` 447.5 lakhs. The shall be able to exercise their right to vote through e-voting at
final dividend, if declared, shall be paid within 30 days from the AGM. The Members who have casted their vote by remote
the date of Annual General Meeting. e-voting prior to the AGM may also join the AGM through VC/
OAVM but shall not be entitled to cast their vote again.
5. The Company has enabled the Members to participate at the
47th AGM through the VC/OAVM facility provided by National 13. As per the Companies Act, 2013, a Member entitled to attend
Securities Depository Ltd. The instructions for participation and vote at the AGM is entitled to appoint a proxy to attend
by Members are given in the subsequent paragraphs. and vote on his / her behalf. Since the 47th AGM is being held
through VC/OAVM as per the MCA Circulars, physical
6. The Members can join the AGM in the VC/OAVM mode 15 attendance of Members has been dispensed with. Accordingly,
minutes before and after the scheduled time of the the facility for appointment of proxies by the Members will
commencement of the Meeting by following the procedure not be made available for the 47th AGM and hence the Proxy
mentioned in the Notice. The facility of participation at the Form and Attendance Slip are not annexed to this Notice.
AGM through VC/OAVM will be made available for 1000
14. Institutional shareholders (i.e. other than individuals, HUF,
members on first come first served basis. This will not
NRI etc.) are required to email to scrutinizer at dayalmaur@
include large Shareholders (Shareholders holding 2% or gmail.com or Company at corp@rotopumps.com, a certified
more shareholding), Promoters, Institutional Investors, copy of the Board resolution authorizing their representative
Directors, Key Managerial Personnel, the Chairpersons of to attend the AGM through VC/OAVM and vote on their
the Audit Committee, Nomination and Remuneration behalf. Institutional investors are encouraged to attend and
Committee and Stakeholders Relationship Committee, vote at the meeting through VC/OAVM.
Auditors etc. who are allowed to attend the AGM without
15. In case of joint holders attending the meeting, only such
restriction on account of first come first serve basis.
joint holder whose name appears first in the order of names
7. As per the provisions under the MCA Circulars, Members will be entitled to vote.
attending the 47th AGM through VC/OAVM shall be counted
16. The Register of Members and Share Transfer Books of the
for the purpose of reckoning the quorum under Section 103
of the Companies Act, 2013. Company shall remain closed from Friday, the 23rd
September, 2022 to Thursday, the 29th September,
8. Pursuant to the provisions of Section 108 of the Companies 2022(both days inclusive).
Act, 2013 read with Rule 20 of the Companies (Management
and Administration) Rules, 2014 (as amended) and 17. In line with the MCA Circulars, the notice of the 47th
Regulation 44 of SEBI (Listing Obligations & Disclosure AGM along with the Annual Report 2021-22 are being
Requirements) Regulations 2015 (as amended), and the sent only by electronic mode to those Members whose

2 Notice of AGM
e-mail addresses are registered with the Company/ Depositories and Depository Participants. Shareholders are
Depositories. Members may please note that this Notice advised to update their mobile number and email Id in their
and Annual Report 2021-22 will also be available on the demat accounts in order to access e-Voting facility.
Company’s website at https://www.rotopumps.com/ Login method for Individual shareholders holding securities
investors/annual-results/, websites of the Stock in demat mode is given below:
Exchanges i.e. BSE at www.bseindia.com and NSE at
Type of Login Method
www.nseindia.com.
shareholders
18. Members who have not registered their e-mail address are Individual 1. Existing IDeAS user can visit the e-Services
requested to register the same in respect of shares held in Shareholders website of NSDL Viz. https://eservices.nsdl.com
electronic form with the Depository through their holding either on a Personal Computer or on a mobile.
Depository Participant(s) and in respect of shares held in securities in On the e-Services home page click on the
physical form by writing to the Company’s Registrar and demat mode “Beneficial Owner” icon under “Login” which
Share Transfer Agent, RCMC Share Registry Private Ltd., with NSDL. is available under ‘IDeAS’ section , this will
B-25/1, Okhla Industrial Area, Phase -2, Near Rana Motors, prompt you to enter your existing User ID and
New Delhi – 110020. Password. After successful authentication, you
19. A Statement pursuant to Section 102(1) of the Companies will be able to see e-Voting services under Value
Act, 2013, relating to the Special Businesses at Items no. 3, added services. Click on “Access to e-Voting”
4, 5 & 6 to be transacted at the Meeting is annexed hereto. under e-Voting services and you will be able to
All documents referred to in the accompanying Notice and see e-Voting page. Click on company name or
the Explanatory Statement shall be available for inspection e-Voting service provider i.e. NSDL and you
will be re-directed to e-Voting website of NSDL
electronically. Members seeking to inspect such documents
for casting your vote during the remote e-Voting
can send an email to corp@rotopumps.com .
period or joining virtual meeting & voting during
20. Members seeking any information relating to Accounts are the meeting.
requested to write to the Company at least 10 days before 2. If you are not registered for IDeAS e-Services,
the date fixed for the Annual General Meeting so as to option to register is available at
enable the Management to keep the information ready. https://eservices.nsdl.com. Select “Register
21. The Securities and Exchange Board of India (SEBI) has Online for IDeAS Portal” or click at
mandated submission of Permanent Account Number (PAN) https://eservices.nsdl.com/SecureWeb/
by every participant in securities market. Members holding IdeasDirectReg.jsp
shares in electronic form are, therefore, requested to submit 3. Visit the e-Voting website of NSDL. Open
their PAN to their Depository Participants with whom they are web browser by typing the following URL:
maintaining their demat accounts. Members holding shares https://www.evoting.nsdl.com/ either on a
in physical form can submit their PAN to the Company / Personal Computer or on a mobile. Once
RCMC Share Registry Private Ltd, RTA of the Company. the home page of e-Voting system is
launched, click on the icon “Login” which is
22. As the 47th AGM is being held through VC/OAVM, the route
available under ‘Shareholder/Member’
map is not annexed to this Notice.
section. A new screen will open. You will
23. Details of Director seeking reappointment at the 47th have to enter your User ID (i.e. your sixteen
Annual General Meeting in pursuance of provisions of the digit demat account number hold with
Companies Act, 2013 & Regulation 36 (3) of SEBI (Listing NSDL), Password/OTP and a Verification
Obligations & Disclosure Requirements) Regulations, 2015 Code as shown on the screen. After
are given as an Annexure to the Notice. successful authentication, you will be
THE INSTRUCTIONS FOR MEMBERS FOR REMOTE E-VOTING redirected to NSDL Depository site wherein
AND JOINING GENERAL MEETING ARE AS UNDER: - you can see e-Voting page. Click on
The remote e-voting period begins on 26th September, company name or e-Voting service
2022 at 09:00 A.M. and ends on 28th September, 2022 at provider i.e. NSDL and you will be
05:00 P.M. The remote e-voting module shall be disabled by redirected to e-Voting website of NSDL for
NSDL for voting thereafter. The Members, whose names casting your vote during the remote
appear in the Register of Members / Beneficial Owners as e-Voting period or joining virtual meeting &
on the record date (cut-off date) i.e. 22nd September, 2022 voting during the meeting.
may cast their vote electronically. The voting right of 4. Shareholders/Members can also download
shareholders shall be in proportion to their share in the NSDL Mobile App “NSDL Speede” facility by
paid-up equity share capital of the Company as on the cut- scanning the QR code mentioned below for
off date, being 22nd September, 2022. seamless voting experience.
How do I vote electronically using NSDL e-Voting system?
The way to vote electronically on NSDL e-Voting system
consists of “Two Steps” which are mentioned below:
Step 1: Access to NSDL e-Voting system
A) Login method for e-Voting and joining virtual meeting for
Individual shareholders holding securities in demat mode
In terms of SEBI circular dated December 9, 2020 on
e-Voting facility provided by Listed Companies, Individual
shareholders holding securities in demat mode are allowed
to vote through their demat account maintained with

Notice of AGM 3
FINANCIAL STATEMENTS

Individual 1. Existing users who have opted for Easi / How to Log-in to NSDL e-Voting website
Shareholders Easiest, they can login through their user id 1. Visit the e-Voting website of NSDL. Open web browser by
holding and password. Option will be made available to typing the following URL: https//www.evoting.nsdl.com/
securities in reach e-Voting page without any further either on a Personal Computer or on a mobile.
demat mode authentication. The URL for users to login to
with CDSL Easi/Easiest are https://web.cdslindia.com/ 2. Once the home page of e-Voting system is launched, click
myeasi/home/login or www.cdslindia.com on the icon “Login” which is available under ‘Shareholder/
and click on New System Myeasi. Member’ section.
2. After successful login of Easi/Easiest the user 3. A new screen will open. You will have to enter your User ID,
will be also able to see the E Voting Menu. The your Password/OTP and a Verification Code as shown on the
Menu will have links of e-Voting service screen.
provider i.e. NSDL. Click on NSDL to cast
your vote. Alternatively, if you are registered for NSDL eservices i.e.
3. If the user is not registered for Easi/ IDEAS, you can log-in at https://eservices.nsdl.com/ with
Easiest, option to register is available at your existing IDEAS login. Once you log-in to NSDL eservices
h t t p s : / / w e b . cd s l i n d i a . co m /m y e a s i / after using your log-in credentials, click on e-Voting and you
Registration/EasiRegistration can proceed to Step 2 i.e. Cast your vote electronically.
4. Alternatively, the user can directly 4. Your User ID details are given below
access e-Voting page by providing demat
Account Number and PAN No. from a Manner of holding Your User ID is:
link in www.cdslindia.com home page. shares i.e. Demat
The system will authenticate the user by (NSDL or CDSL) or
sending OTP on registered Mobile &
Physical
Email as recorded in the demat Account.
After successful authentication, user a) For Members who 8 Character DP ID followed by 8
will be provided links for the respective hold shares in Digit Client ID
ESP i.e. NSDL where the e-Voting is in demat account For example if your DP ID is
progress. with NSDL. IN300*** and Client ID is 12******
Individual You can also login using the login credentials of then your user ID is
Shareholders your demat account through your Depository
IN300***12******.
(holding Participant registered with NSDL/CDSL for
securities in e-Voting facility. upon logging in, you will be able b) For Members who 16 Digit Beneficiary ID
demat mode) to see e-Voting option. Click on e-Voting option, hold shares in For example if your Beneficiary ID is
login through you will be redirected to NSDL/CDSL Depository demat account 12************** then your user ID
their site after successful authentication, wherein you with CDSL. is 12**************
depository can see e-Voting feature. Click on company name
participants or e-Voting service provider i.e. NSDL and you will c) For Members EVEN Number followed by Folio
be redirected to e-Voting website of NSDL for holding shares in Number registered with the
casting your vote during the remote e-Voting Physical Form. company
period or joining virtual meeting & voting during
the meeting. For example if folio number is
001*** and EVEN is 101456 then
Important note: Members who are unable to retrieve User ID/
user ID is 101456001***
Password are advised to use Forget User ID and Forget Password
option available at abovementioned website. 5. Password details for shareholders other than Individual
shareholders are given below:
Helpdesk for Individual Shareholders holding securities in
demat mode for any technical issues related to login through a) If you are already registered for e-Voting, then you
Depository i.e. NSDL and CDSL. can user your existing password to login and cast
your vote.
Login type Helpdesk details
b) If you are using NSDL e-Voting system for the first
Individual Members facing any technical issue in login time, you will need to retrieve the ‘initial password’
Shareholders can contact NSDL helpdesk by sending a which was communicated to you. Once you retrieve
holding securities request at evoting@nsdl.co.in or call at toll your ‘initial password’, you need to enter the ‘initial
in demat mode free no.: 1800 1020 990 and 1800 22 44 30 password’ and the system will force you to change
with NSDL your password.
Individual Members facing any technical issue in c) How to retrieve your ‘initial password’?
Shareholders login can contact CDSL helpdesk by (i) If your email ID is registered in your demat
holding securities sending a request at helpdesk.evoting@ account or with the company, your ‘initial
in demat mode cdslindia.com or contact at 022- 23058738 password’ is communicated to you on your
with CDSL or 022-23058542-43 email ID. Trace the email sent to you from
NSDL from your mailbox. Open the email
B) Login Method for e-Voting and joining virtual meeting
and open the attachment i.e. a .pdf file.
for shareholders other than Individual shareholders
Open the .pdf file. The password to open
holding securities in demat mode and shareholders
the .pdf file is your 8 digit client ID for NSDL
holding securities in physical mode.
account, last 8 digits of client ID for CDSL

4 Notice of AGM
account or folio number for shares held in by e-mail to dayalmaur@gmail.com with a copy marked to
physical form. The .pdf file contains your evoting@nsdl.co.in. Institutional shareholders (i.e. other
‘User ID’ and your ‘initial password’. than individuals, HUF, NRI etc.) can also upload their Board
(ii) If your email ID is not registered, please Resolution / Power of Attorney / Authority Letter etc. by
follow steps mentioned below in process clicking on “Upload Board Resolution / Authority Letter”
for those shareholders whose email ids displayed under “e-Voting” tab in their login.
are not registered. 2. It is strongly recommended not to share your password with
6. If you are unable to retrieve or have not received the “Initial any other person and take utmost care to keep your
password” or have forgotten your password: password confidential. Login to the e-voting website will be
disabled upon five unsuccessful attempts to key in the
a) Click on “Forgot User Details/Password?”(If you correct password. In such an event, you will need to go
are holding shares in your demat account with through the “Forgot User Details/Password?” or “Physical
NSDL or CDSL) option available on www.evoting. User Reset Password?” option available on www.evoting.
nsdl.com. nsdl.com to reset the password.
b) Physical User Reset Password?” (If you are 3. In case of any queries, you may refer the Frequently Asked
holding shares in physical mode) option available Questions (FAQs) for Shareholders and e-voting user manual
on www.evoting.nsdl.com. for Shareholders available at the download section of www.
c) If you are still unable to get the password by evoting.nsdl.com or call on toll free no.: 1800 1020 990
aforesaid two options, you can send a request at and 1800 22 44 30 or send a request to Ms. Soni Singh,
evoting@nsdl.co.in mentioning your demat Assistant Manager at evoting@nsdl.co.in.
account number/folio number, your PAN, your Process for those shareholders whose email ids are not
name and your registered address etc. registered with the depositories for procuring user id and
d) Members can also use the OTP (One Time Password) password and registration of e mail ids for e-voting for the
based login for casting the votes on the e-Voting resolutions set out in this notice:
system of NSDL.. 1. In case shares are held in physical mode please provide
7. After entering your password, tick on Agree to “Terms and Folio No., Name of shareholder, scanned copy of the share
Conditions” by selecting on the check box. certificate (front and back), PAN (self-attested scanned
copy of PAN card), AADHAR (self-attested scanned copy of
8. Now, you will have to click on “Login” button.
Aadhar Card) by email to corp@rotopumps.com
9. After you click on the “Login” button, Home page of
2. In case shares are held in demat mode, please provide DPID-
e-Voting will open.
CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name,
Step 2: Cast your vote electronically and join Annual General client master or copy of Consolidated Account statement,
Meeting on NSDL e-Voting system. PAN (self-attested scanned copy of PAN card), AADHAR (self-
How to cast your vote electronically and join General Meeting attested scanned copy of Aadhar Card) to corp@rotopumps.
on NSDL e-Voting system? com. If you are an Individual shareholders holding securities
in demat mode, you are requested to refer to the login
1. After successful login at Step 1, you will be able to see all method explained at step 1 (A) i.e. Login method for
the companies “EVEN” in which you are holding shares and e-Voting and joining virtual meeting for Individual
whose voting cycle is in active status. shareholders holding securities in demat mode.
2. Select “EVEN” of company for which you wish to cast your 3. Alternatively shareholder/members may send a request to
vote during the remote e-Voting period. evoting@nsdl.co.in for procuring user id and password for
e-voting by providing above mentioned documents.
3. Now you are ready for e-Voting as the Voting page opens.
4. In terms of SEBI circular dated December 9, 2020 on
4. Cast your vote by selecting appropriate options i.e. assent
or dissent, verify/modify the number of shares for which e-Voting facility provided by Listed Companies, Individual
you wish to cast your vote and click on “Submit” and also shareholders holding securities in demat mode are allowed
“Confirm” when prompted. to vote through their demat account maintained with
Depositories and Depository Participants. Shareholders are
5. Upon confirmation, the message “Vote cast successfully” required to update their mobile number and email ID
will be displayed.
correctly in their demat account in order to access e-Voting
6. You can also take the printout of the votes cast by you by facility.
clicking on the print option on the confirmation page.
The instructions for Members for e-voting on the day of the
7. Once you confirm your vote on the resolution, you will not AGM are as under: -
be allowed to modify your vote.
1. The procedure for e-Voting on the day of the AGM is same as
General Guidelines for shareholders the instructions mentioned above for remote e-voting.
1. Institutional shareholders (i.e. other than individuals, HUF, 2. Only those Members/ shareholders, who will be present in
NRI etc.) are required to send scanned copy (PDF/JPG the AGM through VC/OAVM facility and have not casted
Format) of the relevant Board Resolution/ Authority letter
their vote on the Resolutions through remote e-Voting and
etc. with attested specimen signature of the duly authorized
are otherwise not barred from doing so, shall be eligible to
signatory(ies) who are authorized to vote, to the Scrutinizer
vote through e-Voting system in the AGM.

Notice of AGM 5
FINANCIAL STATEMENTS

3. Members who have voted through Remote e-Voting will be correct password. In such an event, you will need to go
eligible to attend the AGM. However, they will not be eligible through the “Forgot User Details/Password?” or “Physical
to vote at the AGM. User Reset Password?” option available on www.evoting.
4. The details of the person who may be contacted for any nsdl.com to reset the password.
grievances connected with the facility for e-Voting on the 2. In case of any queries, you may refer the Frequently Asked
day of the AGM shall be the same person mentioned for Questions (FAQs) for Shareholders and e-voting user manual
Remote e-voting. for Shareholders available at the download section of www.
Instructions for members for attending the AGM through VC/ evoting.nsdl.com or call on toll free no.: 1800-222-990 or
OAVM are as under: send a request at evoting@nsdl.co.in or

1. Member will be provided with a facility to attend the AGM a. Contact Mr. Amit Vishal, Senior Manager, NSDL at the
through VC/OAVM through the NSDL e-Voting system. designated email ID: AmitV@nsdl.co.in or at telephone
Members may access by following the steps mentioned number +91-22-24994360; or
above for Access to NSDL e-Voting system. After b. Contact Ms. Pallavi Mhatre, Manager, NSDL at the designated
successful login, you can see link of “VC/OAVM link” placed email ID: pallavid@nsdl.co.in or at telephone number +91-
under “Join meeting” menu against company name. You 22-24994545.
are requested to click on VC/OAVM link placed under Join 3. You can also update your mobile number and e-mail id in
Meeting menu. The link for VC/OAVM will be available in the user profile details of the folio which may be used for
Shareholder/Member login where the EVEN of Company sending future communication(s).
will be displayed. Please note that the members who do not
have the User ID and Password for e-Voting or have forgotten 4. The voting rights of Members shall be in proportion to their
the User ID and Password may retrieve the same by shares of the paid up equity share capital of the Company as
following the remote e-Voting instructions mentioned in on the cut-off date i.e. 22nd September, 2022.
the notice to avoid last minute rush. 5. Any person, who acquires shares of the Company and
2. Members are encouraged to join the Meeting through becomes a member of the Company after dispatch of the
Laptops for better experience. notice and holding shares as of the cut-off date i.e. 22nd
September, 2022, may obtain the login ID and password by
3. Further Members will be required to allow Camera and use sending a request at evoting@nsdl.co.in or to RTA at info@
Internet with a good speed to avoid any disturbance during rcmcdelhi.com.
the meeting.
6. A person, whose name is recorded in the register of
4. Please note that Participants Connecting from Mobile members or in the register of beneficial owners maintained
Devices or Tablets or through Laptop connecting via Mobile by the depositories as on the cut-off date i.e. 22nd
Hotspot may experience Audio/Video loss due to September, 2022, shall only be entitled to avail the facility
Fluctuation in their respective network. It is therefore of remote e-voting as well as voting at the AGM through
recommended to use Stable Wi-Fi or LAN Connection to e-voting.
mitigate any kind of aforesaid glitches.
7. Mr. Barinder Singh Maur, Practicing Company Secretary
5. Shareholders who would like to express their views/have (PCS No. 7041) Partner in M/s. Dayal & Maur, Company
questions may send their questions in advance mentioning Secretaries, New Delhi has been appointed as the scrutinizer
their name demat account number/folio number, email id, and Mr. Shailesh Dayal, Practicing Company Secretary (PCS
mobile number at corp@rotopumps.com. The same will be No. 7142), Partner in M/s. Dayal & Maur, Company
replied by the company suitably. Secretaries, New Delhi has been appointed as the alternate
6. Members, who would like to express their views/have Scrutinizer of the Company to scrutinize the e-voting and
questions are requested to send registrations along with remote e-voting process in a fair and transparent manner.
the questions in advance mentioning their names, demat 8. The Scrutinizer shall, after the conclusion of e-voting at the
account/ folio number, email id, mobile number at corp@ AGM, unblock the votes cast through e-voting and remote
rotopumps.com. Those members who have register e-voting in the presence of at least two witnesses not in the
themselves as a speaker by 10:00 a.m. on Monday 26th employment of the Company and shall make, not later
September, 2022 will only be allowed to express their forty eight hours of the conclusion of the AGM a
views/ ask question during the meeting. The company consolidated scrutinizer’s report of the total votes cast in
reserves the right to restrict the number of questions/ favor or against, if any, to the Chairman or a person
authorized by him in writing, who shall countersign the
speakers depending on the availability of time for the
same and declare the result of the voting forthwith.
meeting.
9. The Results declared along with the report of the Scrutinizer
General Guidelines for Shareholders: shall be placed on the website of the Company www.
1. It is strongly recommended not to share your password with rotopumps.com and on the website of NSDL immediately
any other person and take utmost care to keep your after the declaration of result by the Chairman or a person
authorized by him in writing. The results shall also be
password confidential. Login to the e-voting website will be
immediately forwarded to BSE and NSE.
disabled upon five unsuccessful attempts to key in the

6 Notice of AGM
EXPLANATORY STATEMENT
Pursuant to the provisions of Section 102(1) of the Companies Act, 2013 and Regulation 36 of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015
Item no. 3: Re-appointment of Mrs. Asha Gupta (DIN: 00334345), Accountants, having registration No. 0001211N/N500019, as the
Non-Executive Non-Independent Woman Director Statutory Auditors of the Company for the second term of five
Mrs. Asha Gupta, non-executive non-independent woman director consecutive years, who shall hold office from the conclusion of this
of the Company retires by rotation at the ensuing Annual General 47th AGM till the conclusion of the 52nd AGM of the Company. A
Meeting and being eligible offered herself for re-appointment. Mrs. consolidated remuneration of ` 10 lakhs plus applicable goods and
Gupta aged 74 years is a post graduate had been associated with service tax is proposed to be paid to the Statutory Auditors for audit
Company from time to time and the current position since July 29, and related activities for the financial year 2022-23. The Board of
2006 and has been actively participating in the affairs of the Directors in consultation with the Audit Committee may alter and
Company as a non-executive director. She is member in Audit vary the terms and conditions of appointment, including
Committee of the Board of Directors of the Company. She is not a remuneration, in such manner and to such extent as may be
director in any other Company except a non-executive director in mutually agreed with the Statutory Auditors.
Roto Energy Systems Ltd, a wholly owned subsidiary of the None of the Directors or Key Managerial Personnel (KMP) or relatives
Company. She held 25,00,265 equity shares in the Company. of directors and KMP is concerned or interested in the resolution.
In terms of Regulation 17 (1A) of the SEBI (Listing Obligations and The Board recommends the Ordinary Resolution at Item no. 4 for
Disclosures Requirement) Regulation, 2015, approval of the approval by the Members.
members of the Company to the re-appoint and continuation Mrs. Item no. 5: Appointment of Branch Auditors
Asha Gupta, as a non-executive Director of the Company is required
The Company has its Warehouse and Marketing Branch Offices in
by way of special resolution as she would exceed the age of 75 years
Australia and United Kingdom and may open / acquire new branches
in her current terms of office. Considering her experience and long
outside India in the future. It would be necessary to appoint Branch
association with the Company, her continuation as a non-executive
auditors to carry out audit of the accounts of such Warehouse and
director would be in the best interest of the Company.
Marketing Branch Offices and Branches. The Members are requested
As a non-executive director of the Company, Mrs. Asha Gupta would to authorize the Board of Directors of the Company to appoint the
be paid directors sitting fee for attending the meetings of the Board Branch Auditors in consultation with the Company’s Auditors and fix
of Directors and Committee of the Board of Directors of the Company their remuneration for the financial year ending 31st March, 2023.
of which she is a member.
None of the Directors or Key Managerial Personnel (KMP) or relatives
Mrs. Asha Gupta is the mother of Mr. Anurag Gupta, Jt. Managing of directors and KMP is concerned or interested in the resolution.
Director of the Company, sister-in-law of Mr. Harish Chandra Gupta,
The Board recommends the Ordinary Resolution at Item No. 5 for
Chairman & Managing Director of the Company and aunt of Mr.
approval by the Members.
Arvind Veer Gupta, Dy. Managing Director of the Company
Item no. 6: Ratification of the remuneration of Cost Auditor
None of the Directors and Key Managerial Personnel of the Company
or their respective relatives except Mrs. Asha Gupta (DIN: 00334345) In terms of the provisions of Section 148 of the Companies Act,
and as stated hereinabove, is interested or concerned in the 2013 read with rule 4 of the Companies (Cost Records and Audit)
resolution. Rules, 2014, the Company is required to appoint a Cost Auditor to
conduct audit of its cost accounts and records for the financial year
The Board recommends the Special Resolution at Item no. 3 for
ending 31st March, 2023. The Board of Directors of the Company, on
approval by the Members.
the recommendation of the Audit Committee, has appointed M/s
Item no. 4: Re-appointment of M/s. R N Marwah & Co. LLP, Chandra Wadhwa & Co., Cost Accountants, as Cost Auditor of the
Chartered Accountants (firm registration no. 0001211N/ Company to conduct the audit of the cost records of the Company
N500019) for the second term as statutory auditors of the for the financial year ending 31st March, 2023 and also approved
Company. payment of remuneration to them.
M/s. R N Marwah & Co. LLP, Chartered Accountants, were appointed In terms of Rule 14 of the Companies (Audit and Auditors) Rules,
as Statutory Auditors of the Company at the 42nd AGM held on 29th 2014, the remuneration payable to the Cost Auditor as approved by
September, 2017 for a period of 5 years, up to the conclusion of the Board of Directors of the Company is required to be ratified by
47th AGM. M/s. R N Marwah & Co. LLP are eligible for re-appointment the Members of the Company. Accordingly, ratification of the
for a further period of 5 years. M/s. R N Marwah & Co. LLP have given remuneration payable to the Cost Auditor for the financial year
their consent for their re-appointment as Statutory Auditors of the ending 31st March, 2023 by the Members of the Company is sought
Company confirming that their re-appointment, if made, will be by way of Ordinary Resolution placed at Item No. 6.
within the limits prescribed under the provisions of Section 139 of
None of the Directors or Key Managerial Personnel (KMP) or relatives
the Companies Act, 2013 (‘the Act’) and the rules made thereunder.
of directors and KMP is concerned or interested in the resolution.
Based on the recommendations of the Audit Committee, it is hereby
proposed to re-appoint M/s. R N Marwah & Co. LLP, Chartered The Board recommends the Ordinary Resolution for approval by the
Members.

Registered Office: By Order of the Board


CIN: L28991UP1975PLC004152
Roto House, Noida Special Economic Zone, Noida–201305 Ashwani K. Verma
E-mail: corp@rotopumps.com Company Secretary
Website: www.rotopumps.com M. No.: F9296

Date: 13.08.2022

Notice of AGM 7
CONTENTS
Key Milestones 01

New Product Launches 05

Vision & Mission 09

CSR 12

Awards 13

Certificates 14

Performance That Goes Beyond Expectations 15

Delivering Quality, Boosting Productivity 15

R&D Centre & Manufacturing Facility 16

Global Presence 17

Product Range 20

Industries We Serve 22

Message to Share Holders: Chairman & MD 23

Business Review 25

Corporate Information 26

Management Report
Board’s Report 27
Corporate Governance Report 40
Management Discussion & Analysis 48

Financial Statements
Standalone Financial Statements 54
Consolidated Financial Statements 90
GROWTH STORY CONTINUES

1968 1980 1994 1998 2004


1976 1988 1997 2000

1 Annual Report 2021-22 Annual Report 2021-22 2


GROWTH STORY CONTINUES

Penetrated in Established new


International Oil & Gas Manufacturing Plant
Sector at Greater Noida, India

2008 2014 2016 2018 2020


2011 2015 2017 2019

Entered in
Commercial Marine &
Defense Sector

3 Annual Report 2021-22 Annual Report 2021-22 4


LEADING BY INNOVATION
NEW PRODUCT LAUNCHES @ ROTO
ROTO BIOMIX PUMP ROTO BIOMASS PUMP RANGE
Proven Pump Performance in Handling Highly Viscous Biomix Slurry Designed & Developed on Roto KWIK Technology
A specialised range of progressive cavity pumps engineered to mix and transfer a high degree of dry, solid Roto Biomass pump developed on “Maintenance in place” platform is used for recirculation of fermentation
biowaste media and digestate liquid into the fermentation tank. These pumps can be customized with tank slurry and feeding to digestate storage tanks, This pump range is also available in vertical configuration
rectangular and circular hoppers to handle dry and wet content. and it is used in open lagoons to transfer organic manure.
Developed on Maintenance-in-Place (MIP) platform, our biomass pumps are used for the recirculation of
fermentation tank slurry and feeding to digestate storage tanks. These heavy-duty pumps come in horizontal
Capacity : Up to 133 m3/hr and vertical configurations.
Pressure : Up to 24 bar

Capacity: Up to 47 m3/hr
Pressure: Up to 24 bar

LEADING BY

I N N O V A T I O N

Large Auger - Feed Screw Rectangular Hopper Round Hopper Antiblock Arrangement 6 Opening Pump Housing

Designed for crushing & mixing Hopper option available with Designed to handle a high
of dry to wet media and feeding additional large intel flange degree of dry solid content.
of substrate. for substrate mixing.

5 Annual Report 2021-22 Annual Report 2021-22 6


ROTO KWIK ROTO MINING STATION
QUICK MAINTENANCE IN PLACE PUMPS A Complete Turnkey Solution for all Mine Dewatering Needs
Ensure high pump efficiency and low cost of operation with our mining station built to handle the
toughest dewatering challenges. It provides better resistance against hypersaline media and
3
Capacity: Up to 420 m /hr abrasive water with 80% reduced maintenance times.
Pressure: Up to 48 bar
Efficiently Pump Media at High Pressure; thus eliminating the requirement of using Multiple
Centrifugal Pumps to achieve the same duty parameters.

Provide Better Resistance against Hypersaline


Water & Abrasive Media.

High Pump Efficiency ensuring Low


Cost of Operation.

The Pump can be used under Varying


Pressure Conditions & still deliver close
to the same Flow Rate which means the
Pumpset can ‘Travel’ Down a Mine as
the Depth Increases.

LEADING BY
Solid Separation Tank to filter out Large
Ensure speedy Maintenance-in-Place (MIP) with Roto Kwik pumps without dismantling suction and Solids from entering Pump Suction.
delivery pipelines. These pumps have significantly lower downtimes for replacing rotor, stator and joint
I N N O V A T I O N

parts and require no special tools or extra dismantling space. Belt Drive & Pulley Design with
Removable Pump Inspection Ladder.

Options available for Anti-Reversing Device &


Float Level Transmitter.

80% Reduced Maintenance Time in replacing


WEAR COMPENSATION STATOR Rotor & Stator.

Increased Manpower Safety.

ROTO FLEXIBLE SHAFT


SERIES PUMP

Capacity : Up to 28 LPS / 450 GPM


Pressure : Up to 48 bar

The new wear compensation stator is a unique design masterfully engineered to safeguard the These sleek and robust flexible shaft pumps eliminate the need for a universal joint and all moving
manufacturing process from premature pump failure and regulate its efficiency for a prolonged period. parts associated with it. No lubrication is required, thus, ensuring zero contamination of industrial
The new design extends the service life of the stator up to 3x times. media and these pumps are highly durable with a longer shelf life.

7 Annual Report 2021-22 Annual Report 2021-22 8


The pumping of the human heart is the
unmistakable sign of the life and vitality.

Our Vision Over the last half century, Roto's pumping


solutions have become an integral part of
the vital force behind industrial processes.
To be a leading uid engineering With our pumps at the heart of industries
solution provider globally world over, we feel that via our pumps we
are always with you. Our heart beats for
you...

9 Annual Report 2021-22 Annual Report 2021-22 10


WE CARE FOR THE ENVIROMENT BEING SOCIALLY RESPONSIBLE

Govt. Junior School, Agahpur, Noida,


UP, India
Zero liquid discharge plant Continuous Upgradation of School
Infrastructure to Ensure Quality Education for
Around 30% of our energy needs met by solar power plant Underprivileged Children.

Rain water harvesting


The Kalpatru Shiksha Kendra,
Zewar, UP, India
Continuously supporting the educational and
athletic development of 300+ children including
uniforms, shoes, books and stationery.

Shri. R.R. Gupta Memorial


Scholarship Award
Recognizing the Efforts of Meritorious Children
of Roto Employees by providing Scholarships for
higher education.

11 Annual Report 2021-22 Annual Report 2021-22 12


WINNING BECOMES A HABBIT CERTIFICATES
ISO 9001, 14001 & 45001
CE & ATEX certified products

+ Roto Pumps is certied for ISO 9001, ISO 14001, OHSAS 45001, CE & ATEX
+ In-house R&D facility recognized by DSIR, Govt. of India
Recognitions + State-of-the-art SCADA based testing facility with ow capacity 1000 m3/hour
+ Expertise in metal component-rotor and rubber component-stator
Ÿ Best Global Business Award

Ÿ Best SME in Global Outreach

Ÿ SME Business Excellence Award

Ÿ Engineering Goods Sector Award

Ÿ Export Excellence Award

Ÿ Star Performer Award

13 Annual Report 2021-22 Annual Report 2021-22 14


PERFOMANCE THAT GOES ADVANCED R&D CENTRE
BEYOND EXPECTATIONS Research & Development is the core strength of Roto and one of the key differentiator that
enables Roto to maintain its leadership position in the market. Early into the business, we invested
in the best technologies and state of the art R&D facilities. Today, the R&D facility has a highly
knowledgeable, qualied and dedicated manpower, who are using sophisticated designing tools
& software to provide new products, technologies and innovative solutions. We are proud to
announce that our R&D facility has been recognized by the Department of Scientic & Industrial
Research, Ministry of Science & Technology, Government of India.

DELIVERING QUALITY,
BOOSTING PRODUCTIVITY
At ROTO, we strive to create and constantly Ÿ Machine) for precise measurement
improve designs that meet the highest standards
Ÿ PMI machine for Raw Material Testing &
of quality. It's important to strengthen our
Rheo-meter for Fluid Viscosity Analysis
manufacturing process in a way that it translates
into the actual customer solution. We are Ÿ In-house fabrication facility equipped with
committed to providing the highest standard of DNV Certied welders
quality in our nished products. With our state of
Over the years, we've built strong PROGRESSIVE TWIN SCREW
the art manufacturing units based in Noida and
manufacturing capabilities keeping in mind CAVITY PUMPS PUMPS
Greater Noida, Roto Pump is already world’s the ultimate goal of customer success. We
favorite pump and we are growing to be amongst
work on customized solutions rather than
world's top ve pump manufacturers globally in
just providing products and services. Various
manufactring
Positive Displacement category. certications for ROTO's manufacturing
Our manufacturing plants are equipped with facilities have enabled us to be a part of some
large scale, very critical projects of our
ŸAdvanced machines i.e. CNCs, HMCs, VMCs &
clients. Today, we provide critical client-
SPMs
oriented solutions to a wide range of
ŸIn-house stator manufacturing industries including oil & gas, paper &
pulp, wastewater , navy and many more.
ŸIn-house R&D center recognized by DSIR
With global recognition, we now aspire to
ŸSCADA based real time pump testing facility raise the bar with our manufacturing
ŸIn-House Standard Room for Calibration facilities.

ŸIn House CMM (Coordinate Measuring

15 Annual Report 2021-22 Annual Report 2021-22 16


5 Continents

50+ Countries

5000+ Fluids Handled

12,000+ Customers

275,000+ Pumps Installed

17 Annual Report 2021-22 Annual Report 2021-22 18


With the highest quality standards and one-of-a-
kind production infrastructure, ROTO has built a
Reliance, Cadbury, Nerolac, Vedanta,
NTPC, ONGC, EIL, Patanjali, Dabur, HPCL,
DISTINCTIVE PRODUCTS
strong marketing network. Keeping in mind the BPCL, IOCL etc. to name a few. Our Roto Pumps products offer a vast range of highly engineered customised pumping solutions.
delivery of customized solutions, we put in our consistent drive to build our brand all these
manufacturing excellence and high quality to years has helped us to create an unique place
provide the best to our strong client base. With in the market and our customers' minds.
time and efforts, we've come a long way with a Ambitious expansion plans are also
market in India and abroad. 65% of our products underway to strengthen network of strategic
Progressive Cavity Pump
are installed in developed and developing global partnerships and establishing
countries like US, UK, Australia, Germany, South subsidiaries across continents. Apart from
Africa, The Middle East, South East Asia and presence across East Asia, Africa, Europe
among others. Even in India, our client base and South America, we will soon be
includes some of the most respected companies expanding our presence across many other
across a wide range of sectors including unexplored markets as well.

• Over 65% exports


• Overseas Branch Offices Roto Progressive cavity pumps are designed for Viscosity: up to 3,000,000cSt
continuous or intermittent transfer duties in
• Overseas Subsidiaries Capacity: up to 500 m3/hr or 2,200 GPM
innumerable applications for varying viscosities,
Pressure: up to 48bar or 700 PSI
• Serving US, Europe, South East Asia, Middle East, Far East, Australia, Africa and India abrasiveness & even uids with high solid
content. These pumps have single rotating
• Head Office, 04 Regional Offices, 07 Branch offices in India
element which helps in delivering uniform,
metered and non-pulsating ow of media.

INDIA NETWORK
Twin Screw Pump
Roto Twin Screw pumps are designed for
handling wide variety of clear lubricating/non-
lubricating as well as aggressive liquids. Roto
Twin Screw Pumps unique double prole of the
screw spindles contributes to a higher volumetric
efciency and provides uniform ow with Zero
axiel thrust. These pumps are self-priming,
capable of handling entrapped air/vapour/gas
due to positive displacement action and have in-
built relief valve designed to bypass excessive
pressure developed in the discharge.
Viscosity: up to 100,000cSt
ROTO Twin Screw pumps offer long and trouble-
Capacity: up to 940m3/hr or 6600 GPM
free service life due to absence of metal to metal
contact between the pumping elements and it Pressure: up to 16 bar or 232 PSI
can even run dry for limited period of time. Also,
these pumps offer high cavitations free suction
lift due to low NPSH requirement.

19 Annual Report 2021-22 Annual Report 2021-22 20


INDUSTRIES WE SERVE

AODD Pump
Roto diaphragm pumps are used for handling
light to medium viscosity uids, including:
aggressive chemicals or liquids with heavy solids
Biogas Marine
content. These pumps are built to resist corrosion
and deliver a long, trouble-free product life.

Viscosity: up to 10,000cSt
Capacity: up to 120m3/hr or 530 GPM
Pressure: up to 10 bar or 145 PSI
Mining &
Sugar
Explosives

OTHERS PRODUCTS

Paper Paint

Roto Pump's ability to design, manufacture and deliver best suitable Retrot Spare Parts for all the
major PCP brands provides us a signicant advantage. While our spare parts enables our
customers to maximize the operational life of their existing pumps at a fraction of cost and assures Wastewater Cosmetics
minimum disruption in operations, for us it is an opportunity to develop relationships with
prospective customers and also a signicant revenue generation opportunity.

Food &
Oil & Gas Beverage
21 Annual Report 2021-22 Annual Report 2021-22 22
CORPORATE OVERVIEW

MESSAGE TO
THE SHAREHOLDER

Dear Shareholders, in FY21 registering a growth of nearly 30%. The India's manufacturing sector is set for long-term the Company in the years to come. The Solar
The world economy con nued to suffer from profit a er tax was ₹ 2,624.67 lakhs, significantly growth and to gain a major share in global pumping systems project of the Company would
adverse effect of Covid, a er the first wave of manufacturing output aided by infrastructure
higher from ₹ 1,941.74 lakhs in FY21. The also contribute towards be erment of our
pandemic in 2019, the economy had started improvements which are helping to improve
consolidated total income was ₹ 17,992.14 lakhs environment.
recovering gradually but unfortunately at the reliability of supplies and a suppor ve global
against ₹ 13,159.75 lakhs in FY21 registering Through our CSR ini a ves, we are consistently
beginning of the Y22, new delta variant had environment – as various countries are looking to
created panic in India and in many other countries. growth of over 36%. The profit a er tax has been focusing on healthcare, development of
broad base supply sources away from China.
The second wave of the pandemic le behind a trail ₹ 3,024.11 lakhs against ₹ 1,833.10 lakhs in FY21 infrastructure facili es in schools, improvement
In pursuit to the above and as per your Company's
of sufferings and loss of lives, this caused registering growth of nearly 65%. The Board of of educa on system and providing housing to
strategy to increase its market share globally, it is
disrup on in economy especially in supply chain. Directors of your Company has recommended a underprivileged sec on of our society.
proposed to set up a wholly owned subsidiary
During this period, safety of our employees and final dividend of ₹ 2.85 per equity share of ₹ 2.00 I would like to thank all our stakeholders for their
their families was our main concern and we took all (WOS) company in UAE, which would help the
each i.e. 142.50% for the financial year ended coopera on and support. I would like to thank all
steps to provide a safe working environment and Company to serve the Customers in MENA region
March 31, 2022. shareholders, for your trust and confidence, to
full support to all our employees during this more effec vely.
Your Company has world class manufacturing my colleagues on the Board for their relentless
turbulent period as a result most of our employees India is increasingly focusing on import subs tute
Infrastructure and strong Global Marke ng support and guidance. As we con nue to surge
could con nue working taking adequate in pursuit of Government's “Atma Nirmbhar
precau ons and the disrup ons due to pandemic Infrastructure in place. Domes c Marke ng for rapid growth in years to come, future seems
Bharat” and “Make in India” ini a ve. Your
had limited effect on company's working. As the Offices are strategically located in Metro Ci es bright and full of promises.
Company has undertaken new projects i.e. for
adverse effect of pandemic in 2022 started equipped with Technical and Experienced manufacture of Downhole pumps, mud motors
receding, we were caught in very turbulent Manpower to take care of Marke ng, Sales and Best regards
and solar pumping systems. Downhole pumps & Harish Chandra Gupta
situa on arising out of ongoing war between A er Sales Services. Your Company has its own
Ukraine and Russia. This has adversely affected mud motors is being undertaken within the Chairman & Managing Director
presence in five Con nents of the World with two Company and is expected to be commissioned
world economy and has put infla onary pressure
Marke ng Branch Offices and four Marke ng during FY23. Solar pumping systems has been
around the world due to surge in commodity prices
Subsidiaries strategically located. All overseas undertaken in a wholly owned manufacturing
and disrup on of supply chain. I am happy to state
that during this turbulent and adverse me, your establishments are equipped with Technical and subsidiary of the Company which is also expected
Company has managed to perform well and Experienced Manpower and adequate Inventory to be commissioned during FY23. Introduc on of
registered growth. I am thankful to all our to provide quicker deliveries of the products. these products in the Indian & global market would
employees for their unrelen ng support for Besides these, the Company also has a be a game changer for the Company and it is
keeping the Company's opera ons going during comprehensive network of Distributors in all expected that these business ver cals would
such challenging mes. other major Markets of the World. With these,
The highlight of performance of your Company in provide tremendous opportunity for the growth of
the Company is smartly placed to increase its
F Y2 2 - T h e sta n d a lo n e to ta l in co m e wa s market share globally.
₹ 15,578.03 lakhs as compared to ₹ 11,997.05 lakhs

23 Annual Report 2021-22 Annual Report 2021-22 24


CORPORATE OVERVIEW

BUSINESS REVIEW CORPORATE INFORMATION

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WORKS COMPANY SECRETARY


31, Sector Ecotect XII, Mr. Ashwani K. Verma
Greater Noida – 201318 (UP) India.
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B-15, Phase II Extension, Mr. Pradeep Jain
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EBE Noida – 201305 (UP), India
ĈDBĆ ÐBĊ
ĈČBÐ
ÐBĆ
ÐBĎ DBD
ĈĆBĆ ĎBĆ
BANKERS
ÇBĆ 13, Roto House, NSEZ,
DBĆ DBS Bank India Ltd.
ČBĆ Noida – 201305 (UP), India
ĆBĆ ĆBĆ Bank of Baroda
ĞK ĈÐ ĞK ĈE ĞK ČĆ ĞK ČĈ ĞK ČČ ĞK ĈÐ ĞK ĈE ĞK ČĆ ĞK ČĈ ĞK ČČ

R&D CENTRE
B-14, Phase – II Extension, STATUTORY AUDITORS
Noida,- 201305 (UP), India R N Marwah & Co. LLP
Geographic Sales Contribution FY 22(%) Geographic Sales Contribution FY 21(%) Chartered Accountants, New Delhi, India
Export sales 66.26% Export sales 67.46%
Domestic Sales 33.74% Domestic Sales 32.54% REGD. OFFICE
13, Roto House, REGISTRAR AND SHARE TRANSFER AGENT
Noida Special Economic Zone, RCMC Share Registry Pvt. Ltd.
Noida 201305(UP), India B- 25/1, Okhla Industrial Area,
Tel: +911202567902-05 Phase II, Near Rana Moters,
Fax: +911202567911 New Delhi -110020, India
36.5% 36.5%
33.74% 32.54% Website: www.rotopumps.com Tel. +911126387320-21,23 Fax: +911126387322
Email: investors@rotopumps.com Email: info@rcmsdeldi.com
66.26% 67.46%
66.26% 63.5%
OVERSEAS ESTABLISHED CIN: L28991UP1975PLC004152
Warehouse & Marketing Branches
Melbourne, Australia | Manchester, UK,
Subsidiary Companies
Tulsa, USA | Laupheim, Germany,
Germiston, South Africa | Selangor, Malaysia

25 Annual Report 2021-22 Annual Report 2021-22 26


MANAGEMENT REPORT

BOARD’S REPORT

To the Members of ROTO PUMPS LTD., Investor Education and Protection Fund
Your Directors have pleasure in presenting their Forty Seventh In terms of the provisions of Section 124(5) of the Companies Act,
Annual Report of the Company together with the Audited Financial 2013 and Rule 3 of the Investor Education and Protection Fund
Statements for the financial year ended 31st March, 2022. Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, the
Financial Performance un-claimed dividend relating to the financial year 2013-14 has been
remitted to the Investor Education and Protection Fund (IEPF)
Your Company’s financial performance for the year under review established by the Central Government. This involved transfer of
along with the previous year’s figure is given hereunder ` 206,340.00/- unclaimed dividend and 7,800 related shares on
which dividend had been unclaimed for seven consecutive years.
Amount ` in Lakhs
The un-claimed dividend for further years would become due for
Financial year ended transfer to IEPF per below details-
Particulars 31st March, 31st March,
2022 2021 Amount in `
Revenue from Operations 15159.91 11572.15 Unclaimed Due date for
Sl. Financial Year Amount as on transfer to
Other Income 418.12 424.90
31.07.2022 IEPF
Total Income 15578.03 11997.05
1 2014-15 1,87,914.60 06-11-2022
Profit / (loss) before finance costs, 2 2015-16 71,113.60 04-11-2023
4238.86 3303.83
depreciation and taxation 3 2016-17 1,47,325.60 05-11-2024
Less: Finance Costs 146.00 26.19 4 2017-18 1,19,139.60 05-11-2025
Depreciation 541.65 562.39 5 2018-19 2,30,699.00 04-11-2026
Profit before Taxation 3551.21 2715.25 6 2019-20 - Interim 75,650.70 18-03-2027
Less :Taxation 926.54 773.51 7 2020-21 - Interim 2,54,903.60 07-05-2028
Profit after tax 2624.67 1941.74 8 2020-21 Final 48,157.30 05-11-2028
Add: Other Comprehensive Further, in terms of the provisions of Section 124(6) of the
(60.56) 7.01
Income Companies Act, 2013, and Rule 6 of the Investor Education and
Total Comprehensive Income for Protection Fund Authority (Accounting, Audit, Transfer and Refund)
2564.11 1948.75 Rules, 2016, shares related to the dividend, which would be
the year
transferred to Investor Education and Protection Fund as stated
Dividend above, on which dividend for consecutive seven years remained
The Company has a robust track record of rewarding its shareholders unclaimed / unpaid, would also become due for transfer to the IEPF
with a generous dividend pay-out. In view of the financial on the said date.
performance during the year under review, the Board of Directors in The Company Secretary is nominated as the Nodal Officer for issues
its meeting held on 26th May, 2022 recommend a dividend of relating to the Investor Education and Protection Fund. The Nodal
` 2.85/- per equity share of `2/- each i.e. 142.50% for the financial Officer may be contacted at investors@rotopumps.com.
year ended 31st March, 2022. The final dividend, if approved by the
Details of un-claimed dividend are available on the Company’s website
shareholders of the Company at ensuing Annual General Meeting
at https://www.rotopumps.com/unclaimed-dividend-shares/ under
would involve cash outflow of ` 447.5 lakhs.
investors section.
The dividend pay-out is in accordance with the Company’s Dividend
Distribution Policy. The Policy is available on the Company’s website Year in retrospect
https://www.rotopumps.com/investors/policies/. As per the
Your Company has achieved an Income from Operations of
prevailing provisions of the Income Tax Act, 1961, the dividend, if
`15159.91 lakhs against previous year’s `11572.15 lakhs. Domestic
declared, will be taxable in the hands of the shareholders at the
sales were `5115.65 lakhs as compared to `3765.62 lakhs having
applicable rates. For details, shareholders are requested to refer to
an increase of 35.85%. Export sales were `10044.27 lakhs as
the Notice of annual general meeting.
compared to ` 7806.54 lakhs, having an increase of 28.67% over last
Share Capital year. Export sales include `5554.72 lakhs, sales from Marketing
The Paid-up Equity Share Capital as on 31st March, 2022 was Outlets in United Kingdom and Australia. Revenue from exports
` 314.08 lakhs. During the year under review, on 27th January, 2022 constitutes 66.26% of the total revenue from operations. Your
your Company has allotted 2,50,000 (Two Lakh Fifty Thousand Company has registered a profit after tax of `2624.67 lakhs against
Only) Equity Shares having face value of ` 2/- each at a premium of `1941.74 lakhs during the previous financial year, which is higher by
` 140.11/- each pursuant to conversion of warrants allotted on 35.17%.
preferential basis to Promoter/Promoter Group in terms of the Outlook
approval granted by the members through Postal Ballot by remote
e-voting on 19th May, 2021. The Company has not issued shares Your Company has registered a significant growth of above 30% in
with differential voting rights. It has neither issued employee stock total income and 36% in profit after tax during the year under review,
options nor any sweat equity shares and does not have any scheme which is in line with Company’s envisaged CAGR of 20% over a
to fund its Employees to purchase the shares of the Company. medium term. Your Company would continue to focus on to

27 Annual Report 2021-22


increase its market share to achieve significant growth in topline 18,695,354 and profit after tax of Rand 1,804,143.
which would also result in better bottom-line. Your Company has a ii. Roto Pumps (Malaysia) Sdn. Bhd., Malaysia Germany
strong manufacturing and marketing infrastructure with presence in engaged in the business of sales and marketing of the
five continents besides strong Research & Development setup, Company’s products in Malaysia, Indonesia and Singapore.
experienced and motivated Manpower. Your company has been During the period under review, the subsidiary has achieved
focusing on MENA region and has made steady progress. Your sales turnover of MYR 5,284,527and profit after tax of MYR
Company would setup a wholly owned subsidiary. This would 520,981.
enhance your Company’s capabilities to service the MENA region
market more effectively. d. Roto Energy Systems Ltd. - a wholly owned subsidiary was
incorporated to carry on business of solar pumping systems.
Time ahead look challenging as Geo-political issues in Eurasia, The Subsidiary is taking steps towards commencement of its
higher inflation especially on U.K. and European Countries and business operations. During the year under review the Subsidiary
recessionary trends in US are certain threats to Global economy and has incurred revenue expenses amounting `16.20 lakhs.
Domestic economy as well. Your Company’s majority of revenue is
generated from exports, acceding exchange rates are a matter of A statement containing the salient features of financial statements
concern. of the subsidiary companies in the prescribed Form AOC-1 is
annexed as per Annexure-A.
Your Company’s project of Downhole pumps for artificial lift and
Mud Motors for drilling of wells in Oil & Gas industry are schedule to Particulars of Loans, Guarantees or Investments
become operations by end of the third quarter of the current During the year under review, your Company has acquired 21,00,000
financial year. Other project of Solar pumping systems undertaken equity shares of face value `10/- each in Roto Energy Systems Ltd.,
in a wholly owned subsidiary would also become operational during a wholly owned subsidiary company in incorporated in India.
the current financial year. These ventures would lead towards your
Your company has not given any loan or provided any guarantees
Company’s vision to be among the first five global Positive
during the year under review.
Displacement Pump manufacturer.
Fixed Deposits
With highly diversified market, both in terms of geographical reach
and the customer base alongwith the enhanced focus to increase Your Company has neither accepted nor renewed any deposits
the market share coupled induction of new products viz. Downhole during the financial year under review.
pumps and mud motors for oil & gas industry, your Company would Related Party Transactions
withstand in turbulent times and improve its performance in terms
of topline and bottom-line as well. All Related Party Transactions that were entered into by the Company
during the year under review were on an arm’s length basis and in the
Consolidated Financial Statements ordinary course of business and were in compliance with the applicable
provisions of the Companies Act, 2013 (‘the Act’) and Securities and
The Consolidated Financial Statements of the Company and its
Exchange Board of India (Listing Obligations and Disclosure
subsidiaries have been prepared in accordance with Indian
Requirements) Regulations, 2015. There were no materially significant
Accounting Standard 110 notified by the Ministry of Corporate
Related Party Transactions made by your Company during the year that
Affairs, Government of India and form part of the Annual Report.
would have required Shareholder approval under Regulation 23 of
The annual accounts of the subsidiaries and related information are securities and Exchange Board of India (Listing Obligations and
kept at the Registered Office of the Company, as also at the Disclosure Requirements) Regulations, 2015.
registered offices of the respective subsidiary companies and will be
Prior omnibus approval of the Audit Committee has been obtained
available to investors seeking information at any time.
for the transactions which are repetitive in nature. A statement of all
Performance of the Subsidiary Companies Related Party Transactions is placed before the Audit Committee for
a. Roto Pumpen GmbH - a wholly owned subsidiary in Germany its review on a quarterly basis, specifying the nature, value and
engaged in the business of sales and marketing of the terms and conditions of the transactions and other relevant details
Company’s products in German region to service the customers as are required in terms of the Companies Act, 2013 and Securities
more effectively. During the year, the subsidiary has achieved a and Exchange Board of India (Listing Obligations and Disclosure
sales turnover of EURO 2,499,750 and earned a profit after tax of Requirements) Regulations, 2015. Details of the transactions with
Euro 100,320. Related Parties are provided at Note no. 40 of the accompanying
standalone financial statements.
b. Roto Pumps Americas, Inc. - a wholly owned subsidiary in USA
which has an operating wholly owned subsidiary in the name Risk Management
and style of Roto Pumps North America, Inc. Germany engaged Your Company has formulated a risk management policy to put in
in the business of sales and marketing of Company’s products in place a procedure to inform the Board about the risk assessment and
American region. During the year, the operating subsidiary has minimization procedure. The Policy is available on the Company’s
achieved a sales turnover of USD 2,230,300 and earned a profit website https://www.rotopumps.com/investors/policies/.
after tax of USD 267,103.
Internal Control System and its adequacy
c. Roto Overseas Pte. Ltd. - a wholly owned subsidiary in
Your Company has an adequate internal control system
Singapore which has operating subsidiaries per below-
commensurate with the size of the Company and nature of its
i. Roto Pumps (Africa) Pty Ltd., South Africa, a company business.
engaged in the business of sales and marketing of pumps
Further, in terms of provisions of Section 138 of the Companies Act,
and parts of pumps in the African Region. Roto Overseas Pte
2013 and the rules made thereunder, your Company has appointed
Ltd. holds almost 100% shares in the subsidiary. During the
M/s. Kapoor Tandon & Co., Chartered Accountants as its Internal
year, the subsidiary achieved a sales turnover of Rand
Auditor to conduct the internal audit of the functions and activities

Annual Report 2021-22 28


MANAGEMENT REPORT

and review of internal controls system in the Company. Based on (a) In the preparation of the annual accounts, the applicable
the report of internal audit function, the Board undertakes corrective accounting standards had been followed alongwith proper
action in their respective areas and thereby strengthens the explanation relating to material departures, if any;
controls. (b) The directors had selected such accounting policies and applied
Directors and Key Managerial Personnel them consistently and made judgments and estimates that are
There was no change in Directorship and key managerial personnel reasonable and prudent so as to give a true and fair view of the
during the year. state of affairs of your Company at the end of the financial year
and of the profit of your Company for the financial year;
Pursuant to the provisions of the Companies Act, 2013 read with the
Articles of Association of the Company, Mrs. Asha Gupta, Director (c) The directors had taken proper and sufficient care for the
(DIN: 00334354) retires from the Board by rotation, and is eligible for maintenance of adequate accounting records in accordance
re-appointment. with the provisions of the Companies Act, 2013 for safeguarding
the assets of your Company and for preventing, detecting fraud
As Mrs. Asha Gupta would attain age of 75 years in the next yearin and other irregularities;
terms of provisions of Regulation 17 (1A) of Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) (d) The directors had prepared the annual accounts on a going
Regulations, 2015 a resolution seeking approval of members of the concern basis
Company is being obtained by way of Special Resolution at the (e) The directors had laid down internal financial controls to be
ensuing Annual General Meeting. followed by your Company and that such internal financial
Annual Evaluation of Board Performance and Performance of controls were adequate and were operating effectively; and.
its Committees and of Directors: (f) The directors had devised proper systems to ensure compliance
Pursuant to the provisions of the Companies Act, 2013 and Securities with the provisions of all applicable laws and that such systems
and Exchange Board of India (Listing Obligations and Disclosure were adequate and operating effectively.
Requirements) Regulations, 2015, the Board has carried out an annual Corporate Social Responsibility
evaluation of its own performance, performance of the Directors as
well as the evaluation of the working of its Committees. The Your Company has formulated its Corporate Social Responsibility
Nomination and Remuneration Committee has laid down the (CSR) Policy to undertake the CSR activities as specified in the
evaluation criteria, procedure and time schedule for the Performance Schedule VII to the Companies Act, 2013. CSR Policy is available at
Evaluation process for the Board, its Committees and Directors. https://www.rotopumps.com/investors/policies/. The Annual Report
of CSR activity for the financial year 2021-22 is annexed at Annexure
Independent Directors and their meetings
-B.
The Independent directors were provided an insight about their
Policy on prevention, prohibition and redressal of sexual
roles, duties, rights and responsibilities. They were given a fair idea
harassment at Workplace
and knowledge about the working, strategy and the organizational
structure of the Company so that they could adapt to the company Your Company has zero tolerance for sexual harassment at
culture and contribute through active participation and interaction workplace and has adopted a Policy on Prevention, Prohibition and
in a better manner. Redressal of Sexual Harassment at the Workplace, in line with the
provisions of the Sexual Harassment of Women at Workplace
The Nomination and Remuneration Policy adopted by your
(Prevention, Prohibition and Redressal) Act, 2013 and the Rules
Company deals with the criteria for selection and determining the
Independence of Directors and also the Remuneration policy for there under. The Policy aims to provide protection to employees at
directors, Key Managerial Personnel (KMP) and other employees. the workplace and prevent and redress any complaint(s) of sexual
The Remuneration policy is available at the website of the Company harassment and for matters connected or incidental thereto, with
at https://www.rotopumps.com/investors/policies/ the objective of providing a safe working environment, where
employees feel secure. Your Company has complied with the
Your Company’s Independent Directors meet at least once in a provisions of the Act relating to the constitution of Internal
financial year without the presence of Executive Directors or Complaints Committee. Your Company has not received any
Management Personnel. Such meetings are conducted to enable complaint of sexual harassment during the year under review.
the Independent Directors to discuss matters pertaining to the
Company’s Affairs and put forth their views. During the year under Vigil Mechanism / Whistle Blower Policy
review, one meeting of the Independent Directors was held on 31st Your Company has adopted a Whistle Blower Policy, to provide a
March, 2022 where all the independent directors were present. formal mechanism to the Directors and employees to report their
Board, Committees and their meetings concerns about unethical behavior, actual or suspected fraud or
violation of the Company’s Code of Conduct or ethics policy. The
Details of the composition of the Board and its Committees and of
Policy provides for adequate safeguards against victimization of
the Meetings held and attendance of the Directors at such Meetings,
employees who avail of the mechanism and also provides for direct
are provided in the Corporate Governance Report. The intervening
access to the Chairman of the Audit Committee.
gap between the Meetings was within the period prescribed under
the Companies Act, 2013, the Rules made thereunder and Securities It is affirmed that no personnel of your Company has been denied
and Exchange Board of India (Listing Obligations and Disclosure access to the Audit Committee. The policy has been adopted in
Requirements) Regulations, 2015. compliance with the requirements of SEBI and Section 177(9) of the
Companies Act, 2013 and the Rules thereunder including any
Directors’ Responsibility Statement
amendment(s) thereto.
In accordance with the provisions of Section 134(5) of the
Companies Act, 2013, the Board hereby submits its responsibility Material changes and commitment, if any, affecting the
Statement: financial position of the Company occurred between the end of

29 Annual Report 2021-22


the financial year to which these financial statements relate 2014, the Board, on the recommendation of the Audit Committee,
and the date of the report at its meeting held on 13th August, 2022, has approved the
No material changes and commitments affecting the financial appointment of M/s. Chandra Wadhwa & Co., Cost Accountant,
position of your Company have occurred between the end of the New Delhi (Firm Registration No 00239) as the Cost Auditors for
financial year to which these financial statements relate and on the the Company for the financial year ending 31st March 2023.
date of this report. They are the Cost Auditor of the Company for the financial year
2021-22. Ratification of remuneration of the Cost Auditor for the
Secretarial Standards financial year 2022-23 by the shareholders of the Company is
Your Company has complied with the requirements of the being sought at the ensuing Annual General Meeting.
mandatory secretarial standards issued by the Institute of Company The Report of the Cost Auditor for the financial year ended 31st
Secretaries of India. March 2022 shall be filed with the Ministry of Corporate Affairs
Significant and Material Orders passed by the Courts or within the prescribed period.
Regulators d. Secretarial Auditors
No significant and material orders have been passed by the M/s Dayal & Maur, Company Secretaries, New Delhi have been
Regulators or Courts or Tribunals which would impact the going appointed as the Secretarial Auditors to carry out the secretarial
concern status of your Company and its future operations. audit for the year under review. The Secretarial Audit Report for
Auditors the financial year ended 31st March, 2022 is annexed at
Annexure- C.
a. Statutory Auditors
There is no qualification or observation in the report of the
M/s. R. N. Marwah & Co. LLP, Chartered Accountants, New Delhi
Secretarial Auditors.
(Firm Registration no. 001211N/N500019), were appointed as
the Statutory Auditors of the Company for a tenure of 5 (five) Conservation of energy, Technology absorption, Foreign
years, to hold office from the conclusion of the 42nd AGM held Exchange earnings and outgo
on September 29, 2017 until the conclusion of the ensuing The information pertaining to conservation of energy, technology
AGM. absorption, Foreign exchange Earnings and outgo as required under
The Company has received confirmation from the Statutory Section 134(3) (m) of the Companies Act, 2013 read with Rule 8(3)
Auditors to the effect that their appointment, if made, will be in of the Companies (Accounts) Rules, 2014 is furnished at Annexure
accordance with the limits specified under the Act and the firm –D.
satisfies the criteria specified in Section 141 of the Act read with Declaration of Independent Directors
Rule 4 of the Companies (Audit and Auditors) Rules, 2014.
The Independent Directors have submitted their disclosures to the
The Board of Directors of the Company on the recommendation Board that they fulfill the requirements as stipulated in Section
of the Audit Committee has re-appointed M/s. R. N. Marwah & 149(6) of the Companies Act, 2013 so as to qualify themselves to be
Co. LLP as the Statutory Auditors of the Company pursuant to appointed as Independent Directors under the provisions of the
Section 139 of the Act for a second term 5 (five) years to hold Companies Act, 2013 and the relevant rules made thereunder.
office from the conclusion of the 47th AGM till the conclusion
of the 52nd AGM of the Company to be held in the year 2027, Board Independence
subject to approval by the Members at the ensuing AGM. Your Company’s definition of ‘Independence’ of Directors is derived
The Board recommends to seek consent of its Members at the from Regulation 16(1) (b) of Securities and Exchange Board of India
ensuing AGM on re-appointment of M/s. R. N. Marwah & Co. LLP (Listing Obligations and Disclosure Requirements) Regulations,
as Statutory Auditors for tenure of 5 (five) years, to examine and 2015 and Section 149(6) of the Companies Act, 2013. Based on the
audit the accounts of the Company during the said period. confirmation / disclosures received from the Directors and on
evaluation of the relationships disclosed, the following Non-
The Statutory Auditor’s report does not contain any Executive Directors are Independent in terms of Securities and
qualifications, reservations, adverse remarks or disclaimers, Exchange Board of India (Listing Obligations and Disclosure
which would be required to be dealt with in the Boards’ Report. Requirements) Regulations, 2015 and Section 149(6) of the
b. Branch Auditors Companies Act, 2013.
The term of the Branch Auditors of the Warehouse and a) Dr. Ramesh Chandra Vaish
Marketing Offices of the Company in Australia and U.K., M/s Eric Dr. Ramesh Chandra Vaish, aged about 81 years holds a degree
Townsend & Co., Chartered Accountants, Australia and M/s. in M.A., M.Com, LLB, Ph.D. in Economics from University of
Laytons, Chartered Accountants, U.K., respectively, will expire at Florida USA and is a Fellow Member of the Institute of Chartered
the conclusion of the ensuing Annual General Meeting. Board Accountants of India. Dr. Vaish is an eminent practicing
of Directors of your Company is seeking authority to appoint Chartered Accountant having over 48 years of rich and varied
Branch Auditors for the financial year 2022-23. experience with specialization in International taxation and
c. Cost Auditor finance, tax planning and off-shore investment. Dr. Vaish has an
outstanding academic record and after teaching at University of
In terms of the provisions of Section 148(1) of the Companies
Florida, USA, has worked with Coopers and Lybrand in New York,
Act, 2013, the Company has maintained cost accounts and
Singapore, London and New Delhi. Dr. Vaish has been a Senior
records in respect of the applicable products for the year ended
Counsel, Tax and Business Advisory Services at Price Waterhouse
31st March 2022.
Coopers, New Delhi, besides being a member of the Company
Pursuant to the provisions of Section 148 of the Companies Act, Law Advisory Committee, Regional Tax Advisory Committee and
2013 read with the Companies (Cost Records and Audit) Rules, various fiscal committees of FICCI and ASSOCHAM.

Annual Report 2021-22 30


MANAGEMENT REPORT

b) Mr. Anand Bordia In terms of the provisions of Section 197(12) of the Act read with
Mr. Anand Bordia, aged 78 years is a retired IRS Officer, holds Rules 5(2) and 5(3) of the Companies (Appointment and
degree in M.A. Mr. Bordia has 40 years of professional experience, Remuneration of Managerial Personnel) Rules, 2014, a statement
most of which have been at a senior level in the Government of showing the names and other particulars of the employees drawing
India and International Organizations. Mr. Bordia has worked in remuneration in excess of the limits set out in the said rules is
Ministry of Finance and Ministry of Social Justice & furnished at Annexure-F.
Empowerment in the Government of India. Mr. Bordia has been Listing of Shares
Member Finance in National Highway Authority of India. Mr.
The Equity Shares of your Company are listed at the BSE Ltd.
Bordia has also worked in Indian Customs and Central Excise
Department and held various field positions such as Further, your Company’s Equity Shares has been listed at National
Commissioner of Customs and Director Audit. Mr. Bordia has Stock Exchange of India Ltd. (“NSE”) on 21st April, 2022. The
also worked in the Secretariat of Custom Cooperation Council, designated symbol of the Company is “ROTO”.
Brussels. The annual listing fee for the year 2022-23 has been fully paid.
c) Mr. Basant Seth Annual Return
Mr. Seth aged 70 years is a Science graduate from Banaras Pursuant to the provisions of Section 92(3) of the Companies
Hindu University, a qualified Chartered Accountant and also has Act, 2013, as amended by the Companies (Amendment) Act,
Post Graduate Diploma in Bank Management from National
2017 a copy of the Annual Return has been placed on the
Institute of Bank Management, Pune. Mr. Seth has retired as
website of the Company and can be accessed through the web-
Central Information Commissioner after successfully
link: https://www.rotopumps.com/investors/annual-returns/
completing his tenure of five years. Before joining the Central
under the head Annual Returns.
Information Commission, he was a banker. He has served Bank
of India for a very long period and later SIDBI. He has also served Corporate Governance
the Syndicate Bank as its Chairman and Managing Director. The Management Discussion and Analysis and the Report on
Mr. Seth has extensive Board level experience having served as Corporate Governance, as required under Regulation 34 of Securities
Bank of India’s nominee on the Board of Indo-Zambian Bank, and Exchange Board of India (Listing Obligations and Disclosure
Zambia and Commonwealth Finance Corporation Ltd Hong Requirements) Regulations, 2015 read with Schedule V thereof,
Kong besides holding the post of Whole Time Director in SIDBI forms part of the Annual Report.
and CMD of Syndicate Bank. He has long experience and
Details of application made or any proceeding pending under
expertise in Bank Management, Corporate Governance,
the Insolvency and Bankruptcy Code, 2016 during the year.
Financial & Administrative matters.
During the year under review, no such application made or
d) Mr. Akhil Joshi
proceeding pending against your Company.
Mr. Akhil Joshi aged 63 years, superannuated as Director (Power)
Details of difference between the amount of the valuation
from Bharat Heavy Electrical Limited (BHEL). He is a Mechanical
Engineer and earned his degree of Mechanical Engineering done at the time of one-time settlement and the valuation
from Delhi College of Engineering in 1979. done while taking loan from the Banks or Financial Institutions.

Mr. Akhil Joshi has almost four decades of rich experience in During the year under review your Company haven’t entered into
Power Sector, International Operations Division and Corporate any one-time settlement.
Technology Management. During his tenure at the International Acknowledgements
Operations Division, he played a key role in the strategic growth
Your Directors place on record their sincere thanks to the Bankers,
of the company’s overseas business in highly competitive
Business Associates, Consultants, and various Government
markets such as the Middle East, South East Asia, the CIS region,
Authorities for their continued support extended to your Company’s
the Mediterranean and Europe. He successfully pioneered
BHEL’s maiden entry into a range of overseas markets including, activities during the year under review. Your Directors also
among others, Iraq, Vietnam, Belarus, Bangladesh, Cyprus and acknowledge gratefully the shareholders for their valuable support
Egypt. He played a pivotal role in negotiating and securing key and confidence reposed in the Company.
EPC contracts for power projects in Iraq under the Oil-for-Food
program and securing approvals from the Sanctions Committee
of the United Nations.
For and on behalf of the Board of Directors
Particulars of Employees and related disclosures
The disclosures pertaining to remuneration and other details as
required under Section 197(12) of the Act read with Rule 5(1) of the
Harish Chandra Gupta
Companies (Appointment and Remuneration of Managerial
Place: Noida Chairman & Managing Director
Personnel) Rules, 2014 is furnished at Annexure- E.
Date: 13.08.2022 DIN: 00334405

31 Annual Report 2021-22


Annexure A to the Board’s Report
FORM AOC-1
Statement containing salient features of the financial statements of subsidiaries/associates/joint venture (Pursuant to the first
proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014
Part “A” - Subsidiaries

Sl. Particulars Name of the Subsidiaries


No. Roto Roto Roto Pumps Roto Roto Pumps Roto Roto Energy
Pumpen Pumps North Overseas (Africa) Pty Pumps Systems Ltd.
GmbH Americas, America, Inc. Pte. Ltd. Ltd. (Malaysia)
Inc. step-down step-down Sdn. Bhd.
1 Reporting period of the N.A N.A N.A N.A N.A N.A N.A
subsidiary on if different
from the holding company’s
reporting period
2 Reporting currency and EURO USD USD SGD RAND MYR
Exchange rate as on year 83.73 75.31 75.31 55.32 5.19 17.95 INR
end date
3 Share Capital 500,000 525,000 508,000 1,200,000 2,000,100 700,000 2,10,00,000
4 Reserve & Surplus (2,32,424) (4,585) 3,65,208 (1,91,187) 33,65,399 3,17,668 (13,33,886)
5 Total Assets 21,62,413 5,20,915 14,59,304 10,17,959 1,37,93,883 27,45,906 4,00,47,893
6 Total Liabilities 21,62,413 5,20,915 14,59,304 10,17,959 1,37,93,883 27,45,906 4,00,47,893
7 Investment - 508,000 - 8,02,905 - - -
8 Turnover 24,99,750 - 22,30,309 - 1,86,95,354 52,84,527 -
9 Profit/(Loss) before taxation 1,37,592 (4,585) 3,54,334 (8730) 25,06,129 6,94,934 (16,09,989)
10 Provision for taxation (37272) - (87,231) - (7,01,986) (1,73,953) 2,76,103
11 Profit/(Loss) after taxation 1,00,320 (4,585) 2,67,103 (8730) 18,04,143 5,20,981 (13,33,886)
12 Proposed Dividend - - - - - -
13 % of shareholding 100 100 100 100 74.995 100 100
No subsidiary has been liquidated or sold during the year.
Part “B”: Associates and Joint Ventures
NA
As per our Report of even date For and on behalf of the Board
For R. N. Marwah & Co. LLP,
Chartered Accountants Harish Chandra Gupta Anurag Gupta
(Firm Registration No. 001211N/N500019) Chairman & Managing Director Joint Managing Director
(DIN: 00334405) (DIN: 00334160)
(Manoj Gupta)
Partner Pradeep Jain Ashwani K. Verma
Membership No. 96776 Chief Financial Officer Company Secretary
Place: Noida (PAN: AAEPJ6827A) (M. No. F9296)
Date: 26.05.2022

Annual Report 2021-22 32


MANAGEMENT REPORT

Annexure B to the Board’s Report


Annual Report of CSR activities for the financial year ended 31st March, 2022
1. Brief outline on CSR Policy of the Company.
Roto Pumps Ltd. is deeply conscious of its moral obligation to act in a manner that benefits the community at large and also the
environment in which it operates. It has accordingly integrated CSR initiatives in the way it conducts its business, as a matter of
policy, while focusing on inclusivity and sustainability.
The main objective of the Company’s CSR policy is to formulate guidelines to undertake various programs/projects relating to
corporate social responsibility including establishment of a self-regulating mechanism that ensures that the Company’s CSR
activities are monitored regularly and are in active compliance with the spirit of the Law as envisaged in Schedule VII read with
Section 135 of the Companies Act, 2013 and the listing agreement with the Stock Exchange.
2 Composition of CSR Committee:
Sl Name of Director Designation / Nature of Directorship Number of meetings Number of meetings of
No. of CSR Committee CSR Committee attended
held during the year during the year
1 Mr. Akhil Joshi Chairman – Non-executive Independent Director 4 4
2 Mr. Anurag Gupta Member – Jt. Managing Director 4 4
3 Mr. Arvind Veer Gupta Member – Dy. Managing Director 4 4
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on the
website of the Company: https://www.rotopumps.com/investors/policies/
4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies
(Corporate Social ResponsibilityPolicy) Rules, 2014: Not applicable
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social Responsibility
Policy) Rules, 2014 and amount required for set off for the financial year, if any
Sl Financial Year Amount available for set-off from preceding financial years Amount required to be set- off for the financial
No. (` in lakhs) year, if any (` in lakhs)
NA
6. Average net profit of the company as per section 135(5) : ` 14,04.25 lakhs
7. (a) Two percent of average net profit of the company asper section 135(5) : ` 28.09 lakhs
(b) Surplus arising out of the CSR projects orprogrammes or activities of the previous financial years : Nil
(c) Amount required to be set off for the financial year : Nil
(d) Total CSR obligation for the financial year (7a+7b-7c) : ` 28.09 lakhs
8. (a) CSR amount spent or unspent for the financial year:
Total Amount Amount Unspent ( ` in lakhs)
Spent for the Total Amount transferred to Amount transferred to any fund specified underSchedule
Financial Year Unspent CSR Account as per VII as per second proviso to section 135(5)
(in ` in lakhs) section 135(6)
Amount. Date of transfer. Name of the Fund ( ` in lakhs) Date of transfer
Prime Minister’s National
28.02 - - 0.07 08.08.2022
Relief Fund (PMNRF)
(b) Details of CSR amount spent against ongoing projects for the financial year:
Sl. Name Item Local Location of the Project Amount Amount Amount Mode of Mode of
No. of the from the area project. duration allocated spent in transferred Implem- Implementation
Project list of (Yes/ for the the to entation -Through
activities No). project current Unspent Direct Implementing
in (` in financial CSR Account (Yes/No). Agency
Schedule lakhs) Year for the
VII ( ` in project as
to the lakhs) perSection
Act. 135(6)
(` in lakhs)
State. District. CSR
Name Registra-
tion
number.
NA

33 Annual Report 2021-22


(c) Details of CSR amount spent against other than ongoing projects for the financial year:
Sl. Name of the Item from Local Location of the Amount Mode of Mode of implementation –
No. Project the list of area project. spent for implementation Through implementing
activities in (Yes/ the project on Direct agency.
schedule VII No). State District (` in (Yes/No) Name CSR Registration
to theAct. lakhs). number
1. Promoting health i Yes Uttar Noida 19.60 Yes -
care including Pradesh
preventive health
care
2. Promoting health i No Uttar Kanpur 3.92 Yes -
care including Pradesh
preventive health
care
3. Promoting health i Yes Delhi New 1.00 No Habitat for CSR00000402
care including Delhi Humanity
preventive health India Trust
care
4. Promoting ii Yes Uttar Zewar 3.50 No The CSR00011553
education Pradesh Kalpataru
(Infrastructure Society
development in
Skill Development
Centre)
TOTAL 28.02
(d) Amount spent in Administrative Overheads : Nil
(e) Amount spent on Impact Assessment, if applicable : Nil
(f) Total amount spent for the Financial Year(8b+8c+8d+8e) : ` 28.02 lakhs
(g) Excess amount for set off, if any : NA

Sl Particular Amount (` in lakhs)


(i) Two percent of average net profit of the company as per section 135(5)
(ii) Total amount spent for the Financial Year
(iii) Excess amount spent for the financial year [(ii)-(i)]
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)]
9 (a) Details of Unspent CSR amount for the preceding three financial years:
Sl. Preceding Amount Amount spent Amount transferred to any fund Amount remaining
No. Financial transferred to in the specified under Schedule VII as per tobe spent in
Year Unspent CSR Reporting section 135(6), if any. succeeding
Account under Financial Year financial years
Nameof Amount Date of
section 135 (6) (` in lakhs) (` in lakhs)
the Fund (` in lakhs) transfer
(` in lakhs)
1. 2018-19 - - - - - -
2. 2019-20 - 11.00 - - - 2.76
3. 2020-21 - 21.54 PM CARES 13.54 12.08.2021 -
TOTAL - 32.54 13.54 - 2.76
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
Sl. Project Name Financial Project Total Amount Cumulative Status of the
No. ID ofthe Year in which duration amount spent on amount spentat project
Project. theproject allocated for theproject the end of Completed/
was theproject inthe reporting Ongoing
commenced. (` in lakhs) reporting Financial Year
Financial (` in lakhs)
Year
(` in lakhs)
1. NA
TOTAL

Annual Report 2021-22 34


MANAGEMENT REPORT

10. In case of creation or acquisition of capital asset, furnish the details relating to theasset so created or acquired through CSR spent
in the financial year
(Asset-wise details)
(a) Date of creation or acquisition of the capital asset(s) : NA
(b) Amount of CSR spent for creation or acquisition of capitalasset : NA
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc. : NA
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset) : NA
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per Section 135(5):
Balance amount of ` 0.07 lakhs of CSR spend for the year under review has been transferred to PMNRF on 08.08.2022.

Place: Noida Harish Chandra Gupta Akhil Joshi


Date: 13.08.2022 Chairman & Managing Director Chairman of CSR Committee

Annexure C to the Board’s Report


FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2022
[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014]
To, rules made there under;
The Members, (v) The following Regulations and Guidelines prescribed under the
Roto Pumps Limited Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):
Roto House, Noida Special Economic Zone, (a) The Securities and Exchange Board of India (Substantial
Noida, Uttar Pradesh- 201305. Acquisition of Shares and Takeovers) Regulations, 2011;
We have conducted the secretarial audit of the compliance of (b) The Securities and Exchange Board of India (Prohibition of
applicable statutory provisions and the adherence to good Insider Trading) Regulations, 1992;
corporate practices by Roto Pumps Limited (hereinafter called the
Company). Secretarial Audit was conducted in a manner that (c) The Securities and Exchange Board of India (Issue of Capital
provided us a reasonable basis for evaluating the corporate and Disclosure Requirements) Regulations, 2009 and
conducts/statutory compliances and expressing our opinion amendments from time to time;
thereon. Due to the Covid-19 situation, we have examined some (d) The Securities and Exchange Board of India (Employee
documents considered relevant by us through online / electronic Stock Option Scheme and Employee Stock Purchase
mode too. Scheme) Guidelines, 1999 and The Securities and Exchange
Based on our verification of the Roto Pumps Limited’s books, papers, Board of India (Share Based Employee Benefits) Regulations,
minute books, forms and returns filed and other records maintained 2014; (Not applicable to the Company during the audit
by the Company and also the information provided by the Company, period)
its officers, agents and authorized representatives during the (e) The Securities and Exchange Board of India (Issue and
conduct of secretarial audit, we hereby report that in our opinion, Listing of Debt Securities) Regulations, 2008; (Not
the Company has, during the audit period covering the financial applicable to the Company during the audit period)
year ended on March 31, 2022 complied with the statutory
(f) The Securities and Exchange Board of India (Registrars to an
provisions listed hereunder and also that the Company has proper
Issue and Share Transfer Agents) Regulations, 1993
Board-processes and compliance-mechanism in place to the extent,
regarding the Companies Act and dealing with client;
in the manner and subject to the reporting made hereinafter:
(g) The Securities and Exchange Board of India (Delisting of
We have examined the books, papers, minute books, forms and
Equity Shares) Regulations, 2009; (Not applicable to the
returns filed and other records maintained by Roto Pumps Limited
Company during the audit period) and
for the financial year ended on March 31, 2022 according to the
provisions of: (h) The Securities and Exchange Board of India (Buyback of
Securities) Regulations, 1998; (Not applicable to the
(i) The Companies Act, 2013 (the Act) and the rules made there
Company during the audit period)
under;
We have also verified the compliances of the Company with the
(ii) Foreign Exchange Management Act, 1999 and the rules and
other statutes, which are specifically applicable to the Company, as
regulations made there under to the extent of Overseas Direct
reported by the management thereof, except to the extent the
Investment;
same were in the scope of work of the Statutory Auditors and / or
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws Internal Auditors.
framed there under;
We have also examined compliance with the applicable clauses of
(iv) The Securities Contract (Regulation) Act, 1956 (‘SCRA’) and the the following:

35 Annual Report 2021-22


i) Secretarial Standards issued by The Institute of Company their AGM held on 29.09.2021.
Secretaries of India. 2. Mr. Anurag Gupta, Jt. Managing Director, was reappointed for a
ii) SEBI LODR (Listing Obligations and Disclosure Requirements) further period of 3 years with effect from 01.04.2022 at the Board
Regulations, 2015 Meeting held on 13.08.2021. The said reappointment was further
During the period under review the Company has complied with the confirmed by the shareholders at their AGM held on 29.09.2021.
provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. 3. Mr. Arvind Veer Gupta, Dy. Managing Director, was reappointed
mentioned above. for a further period of 3 years with effect from 01.04.2022 at the
We further report that: Board Meeting held on 13.08.2021. The said reappointment was
further confirmed by the shareholders at their AGM held on
The Board of Directors of the Company is duly constituted with 29.09.2021.
proper balance of Executive Directors, Non-Executive Directors and
Independent Directors. There were no changes in the composition 4. 2,50,000 equity shares of Rs. 2/- each of the Company were
of the Board of Directors during the period under review. issued at a premium of Rs. 140.11/- to promoters/promoter
group on a preferential basis pursuant to conversion of warrants
Adequate notice is given to all directors to schedule the Board on 27.01.2022. The said equity shares were permitted to trade
Meetings, agenda and detailed notes on agenda were sent at least on BSE with effect from 18.02.2022.
seven days in advance, and a system exists for seeking and obtaining
further information and clarifications on the agenda items before 5. 1,57,03,805 equity shares of the Company have been listed on
the meeting and for meaningful participation at the meeting. NSE and were permitted to trade thereat with effect from
21.04.2022.
Majority decision is carried through while the dissenting members’
views, if any, are captured and recorded as part of the minutes. For DAYAL & MAUR
Company Secretaries
We further report that there are adequate systems and processes in
the company commensurate with the size and operations of the
company to monitor and ensure compliance with applicable laws, SHAILESH DAYAL
rules, regulations and guidelines. Partner
FCS No. 4897
CP No. 7142
Significant Events: Place: New Delhi Peer Review Cert. No. 923/2020
1. Mr. Harish Chandra Gupta, Chairman & Managing Director, was Date: 13.08.2022 UDIN: F004897D000791397
reappointed for a further period of 3 years with effect from This Report is to be read with our letter of even date which is annexed
01.04.2022 at the Board Meeting held on 13.08.2021. The said as Annexure A and forms an integral part of this report.
reappointment was further confirmed by the shareholders at
‘Annexure A’
To,
The Members, 4. Where ever required, we have obtained the Management
Roto Pumps Limited representation about the Compliance of laws, rules and
Roto House, Noida Special Economic Zone, regulations and happening of events etc.
Noida, Uttar Pradesh- 201305. 5. The Compliance of the provisions of Corporate and other
Our report of even date is to be read along with this letter. applicable laws, rules, regulations, standards is the
responsibility of management. Our examination was limited
1. Maintenance of Secretarial record is the responsibility of
to the verification of procedure on test basis.
the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on 6. The Secretarial Audit report is neither an assurance as to the
our audit. future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted
2. We have followed the audit practices and process as were
the affairs of the Company.
appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The For DAYAL & MAUR
verification was done on test basis to ensure that correct Company Secretaries
facts are reflected in Secretarial records. We believe that the
process and practices, we followed provide a reasonable SHAILESH DAYAL
basis for our opinion. Partner
3. We have not verified the correctness and appropriateness of FCS No. 4897
financial records and Books of Accounts of the Company. Place: New Delhi CP No. 7142
Date: 13.08.2022 Peer Review Cert. No. 923/2020

Annual Report 2021-22 36


MANAGEMENT REPORT

Annexure – D to the Board’s Report


Pursuant to the provisions of Section 134(3) (m) of the Companies Act, 2013 read with rule 8(3) the Companies (Accounts) Rules, 2014 and
forming part of the Report of the Directors-
A. Conservation of energy: b. The benefits derived like product improvement, cost
a. The steps taken or impact on conservation of energy reduction, product development or import substitution:
Widening of product range, product improvement, cost
Although your Company’s operations involve low energy
reduction and introduction of new generation cost effective
consumption, due attention was paid to optimize the use of
pumps to meet increased competition, product
energy by improved operational methods. The efforts to
development, import substitution.
conserve and optimize the use of energy by improved
operational methods and other means will continue. c. In case of imported technology (imported during the last
three years reckoned from the beginning of the financial
The Efforts to conserve and optimize the use of energy have year) N.A.
an impact of reducing energy consumption and thereby
d. The expenditure incurred on Research and Development:
reducing cost of production of goods.
Amount ` in lakh
b. The steps taken by the Company for utilizing alternate
sources of energy Particulars 2021-22 2020-21
As an extension to the installation of solar power system of Revenue expenses 245.16 261.56
200 KWp at its Greater Noida Unit for utilization of solar Capital expenses 13.15 23.61
energy as a pilot project, during the year under review, your Total 258.31 285.17
Company has installed solar power system of 160 KWp at
Noida Unit and 50 KWp at NSEZ Unit. Your Company’s in-house Research & Development Centre
With the installation of above stated solar power system, situated at B-14, Phase II Extension, Noida – 201305, Uttar
your Company is able to meet around 30% of its electricity Pradesh, India had been recognized by the Department of
requirement from solar power. Scientific and Industrial Research, Ministry of Science and
Technology, Government of India.
c. The capital investment on energy conservation equipment
An amount of ` 86.99 Lakhs has been incurred towards C. Foreign exchange earnings and Outgo
installation of solar power as sated above. Your Company’s export activities consist of exports of its
B. Technology absorption: products e.g. pumps and spare parts of pumps and annual
maintenance services and commissioning & installation
a. The efforts made towards technology absorption:
services. The particulars of foreign exchange earned and used
Identification of products, to be developed, based on during the year are given in Notes 43 to 46 in the notes forming
market feedback to widen product basket for Domestic and a part of the standalone financial statements.
International Markets, conceptualization of product on the
For and on behalf of the Board of Directors
basis of fuller understanding of market need, designing,
manufacturing and testing prototype, finalization of design Harish Chandra Gupta
based on tests with modification, performance / endurance
tests and field trials to prove the product capability and Place: Noida Chairman & Managing Director
releasing design and drawing for commercial production. Date: 13.08.2022 DIN: 00334405

Annexure-E to the Board’s Report


Disclosures pertaining to remuneration and other details as required under Section 197(12) of the act read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
i) The percentage increase in remuneration of each Director, Chief 2 Mr. Anurag 106.65 10.0% 20.24
Gupta, Jt.
Financial Officer and Company Secretary during the Financial
Managing
Year 2021-22, ratio of the remuneration of each Director to the Director
median remuneration of the Employees of your Company for 3 Mr. Arvind Veer 104.93 10.0% 19.91
the Financial Year 2021-22 are as under: Gupta, Dy
Managing
Amount ` in Lakhs Director
Sl. Name of the Remuner- % of increase Ratio of 4 Mr. Ashwani K. 21.04 14.8% 3.99
Director / KMP ation of in remunera- remuneration Verma,
and Directors tion in of each Company Secre-
Designation / KMP for Financial director/ KMP tary
the year 2021-22 to the median 5 Mr. Pradeep 27.49 13.8% 5.22
Financial remuneration Jain, Chief
year of the Financial Officer
2021-22 Employee Total 424.87
1 Mr. Harish 164.76 10.0% 31.26
Note: The non-executive Directors of the Company have been paid sittings as
Chandra Gupta,
per statutory provisions only and reimbursement of out of pocket expenses,
Chairman &
Managing if any, for attending the meetings of the Board of Directors, Committees of
Director the Board of Directors and the meeting of the Independent Directors, the
same has not been considered as remuneration, hence, above details for

37 Annual Report 2021-22


non-executive directors are not given. Details of sitting fees paid to the non- vi) The key parameters for any variable component of remuneration
executive Directors is given in the Corporate Governance Report availed by the directors: The Executive Directors have been paid
ii) The median remuneration of Employees of the Company during sales based variable remuneration during the year. Overall
the financial year : ` 5.27 lakhs remuneration has been within the limits as prescribed under the
provisions of Schedule V to the Companies Act, 2013.
iii) The percentage increase in the median remuneration of the
employees in the financial year : 8.8% vii) It is hereby affirmed that the remuneration paid is as per
iv) The number of permanent employees on the rolls of company remuneration policy for Directors, Key Managerial Personnel
as on 31st March, 2022 : 206 and other Employees of the Company.
v) Average percentile increase already made in the salaries of the
employees other than the managerial personnel in the last For and on behalf of the Board of Directors
financial year i.e. 2021-22 and its comparison with the percentile
increase in the managerial remuneration:
Harish Chandra Gupta
The average annual increase in the salaries of employees other Place: Noida Chairman & Managing Director
than managerial personnel was 12%. Whereas, increase in the Date: 13.08.2022 DIN: 00334405
managerial remuneration for the year was 10%.

Annexure F to the Board’s Report


Statement of particulars of Employees pursuant to the provisions of Section 197 (12) of the Companies Act, 2013 read with Rule
5(2) & (3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
A. Names of top ten employees in terms of remuneration drawn during the year
Amount ` in Lakhs
Sl Name of Age Qualification Designation Remuneration Date of Experience Last Employment
Employee (Yrs.) Joining held
1 Mr. Harish 76 B.Sc. Chairman & 164.75 Since 54 years Own business
Chandra Managing incorporation
Gupta Director
2 Mr. Anurag 48 B.Com, CMA Jt. Managing 106.65 01.01.1995 28 Years Roto Pumps Ltd
Gupta Intermediate and Director
MBA
3 Mr. Arvind 46 Bachelor of Dy. Managing 104.93 01.07.1995 27 years Roto Pumps Ltd
Veer Gupta Management Director
(Manufacturing
Engineering)
4 Mr. David 60 Diploma Engineer General 112.24 15.10.2004 42 years Director - Orbit
Roy Bent Manager Pumps Ltd
5 Mr. S Clark 58 C & G Mechanical Sales Manager 64.29 01.08.2008 35 years Sales engineer – PC
Engineer Pumps
6 M Jenkins 58 HND mechanical Internal sales 57.64 08.12.2015 33 years Sales Engineer –
Eng. / HNC Business Engineer Mono Pumps
Studies
7 Mr. Kevin 58 Bachelor of General 125.57 15.09.2014 35 years Self-Employed
Moore Engineering Manager
(Electronic and
Electrical)
8 Mr. Ross 62 Fitter and Turner Territory 69.54 14.03.2014 35 years Sales Manager -
Leabeater Manager Statewide Bearings
9 Mr. 31 Cert 3 automotive Pump 51.91 11/02/2019 15 years Mechanic - LLinares
Holman, Assembly Automotive
Ben
10 Mr. 60 Draughtsman Chief 62.91 01.10.2016 41 years Chief (Operations)
Gulshan (Mechanical),BA, Operating Beumer India
Khurana MBA (Marketing) Officer Private Limited

B. Employed throughout the year and were in receipt of remuneration for the financial year in aggregate of not less than ` 1,02,00,000/-
p.a. : None except as included in Section A.
C. Employed part of the year and were in receipt of remuneration for the financial year in aggregate of not less than ` 8,50,000/- p.m. :
None
D. Employed throughout the financial year or part thereof, was in receipt of remuneration in that period, in aggregate, or as the case may
be, at a rate which, in aggregate, is in excess of remuneration drawn by Chairman and Managing Director or Jt. Managing Director or
Deputy Managing Director or manager and holds by himself or along with his spouse and dependent children, not less than two percent
of the equity shares of the Company. : None

Annual Report 2021-22 38


MANAGEMENT REPORT

Notes:
1) Remuneration comprises of salary, allowances and monetary value of perquisites. The appointments of Executive Directors are
contractual.
2) Employees at Sl. No. 4 to 6 are posted at the Warehouse and Marketing Office of the Company at U.K and the Employees mentioned from
Sl. No. 7 to 9 are posted at the Warehouse and Marketing Office of the Company at Australia.
3) Mr. Harish Chandra Gupta, Chairman & Managing Director is the father of Arvind Veer Gupta, Dy Managing Director and brother-in-law of
Mrs. Asha Gupta, Director of the Company. Mr. Anurag Gupta, Jt. Managing Director is the son of Mrs. Asha Gupta, Director of the Company.
None of the other employees are relatives of any director or manager of the Company.
For and on behalf of the Board of Directors

Harish Chandra Gupta


Date: 13.08.2022 Chairman & Managing Director
Place: Noida DIN: 00334405

39 Annual Report 2021-22


Corporate Governance
Company’s philosophy on code of Corporate Governance Directorship in Other Listed entities
At your Company, Corporate Governance aims at safeguarding and Sl. Name of the Name of the Designation
value addition to the interest of the various stakeholders. Corporate No Director Entity
Governance ensures working of the company in a more accountable 1. Mr. Anand Bordia Birla Corporation Non-Executive
and transparent manner. Limited Independent Director
Board of Directors 2. Dr. Ramesh Omax Autos Non-Executive
Chandra Vaish Limited Independent Director
The Board is an apex body, responsible for playing a significant role
in the proper and efficient functioning of the Company. The Core skills / Expertise / Competencies available with the
Company’s Board has an appropriate mix of Executive, Non- Board
executive, Independent and Women Directors. During the year As stipulated under Schedule V of the SEBI Listing Regulation, core
2021-22, composition of the Company’s Board has been as under: skills/expertise/competencies, as required in the context of the
business and sector for it to function effectively and those actually
Sl. Name Category Number of Position in other available with the Board have been identified by the Board of
No. Directorships Committees Directors.
in other Member Chairperson
listed

Mr. Arvind Veer Gupta

Dr. Ramesh Chandra


Mr. Harish Chandra

Mr. Anurag Gupta

Mr. Anand Bordia


Companies

Mrs. Asha Gupta

Mr. Basant Seth

Mr. Akhil Joshi


1 Mr. Promoter / - - - Core skills /

Gupta

Vaish
Harish Executive Expertise /
Chandra Chairman Competencies
Gupta
2 Mr. Promoter / - - -
Anurag Executive
Product Research   ✓   ✓   ✓
Gupta Director
and
3 Mr. Promoter / - - -
Development
Arvind Executive
Veer Director Operations and   ✓   ✓   ✓ ✓
Gupta Engineering
4 Mrs. Promoter / - -* - Sales and   ✓   ✓   ✓ ✓
Asha Non- Marketing
Gupta executive/ including
Woman International
Director Business
5 Dr. Independent / 1 0 2 Financial ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Ramesh Non-executive Management
Chandra Director including
Vaish Treasury & Forex
6 Mr. Independent / 1 1 1 Management
Anand Non-executive Internal Control ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Bordia Director and Risk
7 Mr. Independent / - 1 0 Management
Basant Non-executive Legal and ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Seth Director Regulatory
8 Mr. Akhil Independent / - -* 1 Requirements
Joshi Non-executive Human ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Director Resources and
Talent
* Mrs. Asha Gupta, Non Independent /Non-Executive Director of the
Development
Company ceased to be member of the Nomination and
Remuneration Committee w.e.f.13th November, 2021. Mr. Akhil Corporate ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Joshi, Independent / Non-executive Director has been appointed as Governance and
member of the Nomination and Remuneration Committee w.e.f. Ethics
13th November, 2021. CSR and ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Sustainability
In the opinion of the Board, the independent directors fulfill the
conditions specified in SEBI (Listing Obligations & Disclosure Shares and convertible instruments held by non-executive
Requirements) Regulations, 2015 and are independent of the Directors
management of the Company. The Independent Directors have During the year under review, your Company has not issued any
been familiarized with the operations of the Company and the convertible instruments. The position of the holding of equity
details of the same are displayed on www.rotopumps.com. shares of the Company by the non-executive directors as on
31.03.2022 was as under:

Annual Report 2021-22 40


MANAGEMENT REPORT

Sl. Name No. of Equity shares held The composition of the Audit Committee and the number of the
No. on 31.03.2022 meetings attended by the Members are given below.
1 Mrs. Asha Gupta 25,00,265
Sl Name Position No. of meetings
2 Dr. Ramesh Chandra Vaish Nil attended
3 Mr. Anand Bordia Nil
4 Mr. Basant Seth Nil 1 Dr. Ramesh Chandra Vaish Chairman 4
5 Mr. Akhil Joshi Nil 2 Mr. Anand Bordia Member 4
Relationships between Directors inter se
3 Mrs. Asha Gupta Member 4
Dr. Ramesh Chandra Vaish, Mr. Anand Bordia, Mr. Basant Seth and Mr.
Akhil Joshi are the Non-executive Independent directors of the 4 Mr. Basant Seth Member 4
Company and are not related to each other in any way. They are also Terms of reference
not related to the other Directors on the Board of the Company.
The role and terms of reference of the Audit Committee covers the
Mrs. Asha Gupta and Mr. Anurag Gupta are related to each other in matters specified for Audit committee under Part C of Schedule II of
the relationship mother-son between them. Similarly, Mr. Arvind Securities and Exchange Board of India (Listing Obligations and
Veer Gupta being the son of Mr. Harish Chandra Gupta, they both are Disclosure Requirements) Regulations, 2015 and the Companies
related to each other. Mr. Harish Chandra Gupta is the Brother in law Act, 2013 which inter-alia include overseeing the company’s
of Mrs. Asha Gupta. financial reporting process, reviewing periodical financial results,
Non-Executive Directors’ compensation and disclosure financial statements, internal control and internal audit systems,
Non-executive Directors have been paid sitting fees for attending accounting policies and practices related party transactions and
the meetings of the Board of Directors and Committees of the performance of the internal and external auditors.
Board. No other compensation is paid to them. The sitting fee is Nomination & Remuneration Committee
fixed by the Board of Directors of the Company. The sitting fees Nomination and Remuneration Committee comprises of executive
being paid to the non-executive directors is well within the limits and non-executive Directors. During the year, two meetings of the
prescribed under Section 197(5) of the Companies Act, 2013 read Nomination and Remuneration Committee were held on 13.08.2021
with Rule 4 of the Companies (Appointment and Remuneration of and 31.03.2022. Composition of the Committee and attendance at
Managerial Personnel) Rules, 2014. the meeting during the year has been as under:
Other provisions of the Board
Sl. Name Position Meeting attended
During the financial year 2021-22, four meetings of the Board of
Directors of the Company were held on 08.06.2021, 13.08.2021, 1 Mr. Anand Bordia Chairman 2
13.11.2021 and 11.02.2022. The gap between any two meetings did
not exceed one hundred and twenty (120) days as prescribed under 2 Mr. Harish Chandra Gupta Member 2
the Companies Act, 2013 and Securities and Exchange Board of India 3 Mr. Basant Seth Member 2
(Listing Obligations and Disclosure Requirements) Regulations,
2015. All the relevant information was placed before the Board. The 4 Mrs. Asha Gupta* Member 1
attendance record of the Directors at the Meetings of the Board and 5 Mr. Akhil Joshi* Member 1
Members held during the financial year 2021-22 was as under:
* Mrs. Asha Gupta, Non Independent /Non-Executive Director of the
Sl. Name No. of Meetings Attended Company ceased to be member of the Nomination and
attended last AGM
Remuneration Committee w.e.f.13th November, 2021. Mr. Akhil
1 Mr. Harish Chandra Gupta 4 Yes Joshi, Independent / Non-executive Director has been appointed as
2 Mr. Anurag Gupta 4 Yes member of the Nomination and Remuneration Committee w.e.f.
3 Mr. Arvind Veer Gupta 3 Yes 13th November, 2021.
4 Mrs. Asha Gupta 4 Yes
Terms of reference
5 Dr. Ramesh Chandra Vaish 4 No
6 Mr. Anand Bordia 4 No The terms of reference of the Nomination and Remuneration
7 Mr. Basant Seth 4 No Committee are in consonance with the provisions of the Companies
8 Mr. Akhil Joshi 3 Yes Act, 2013 and Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
Audit Committee
Performance evaluation criteria for Independent Directors
The Audit Committee of the Board comprises of four members all of
whom are Non-executive Independent Directors, except Mrs. Asha The Nomination and Remuneration Committee has framed the
Gupta who is a Non-executive promoter Director. Mr. Ashwani K. Nomination and Remuneration Policy and has laid down the criteria
Verma, Company Secretary as the Secretary of the Committee. for the evaluation of the performance of the Independent Directors
under the said policy. The policy can be accessed through the web
During the financial year 2021-22, four meetings of the Audit link - https://www.rotopumps.com/investors/policies/.
Committee of the Company were held on 08.06.2021, 13.08.2021,
13.11.2021 and 11.02.2022. The time gap between any two Details of remuneration to Directors
meetings did not exceed one hundred and twenty (120) days as The details of the remuneration paid to the Chairman & Managing
prescribed under the Companies Act, 2013 and Securities and Director, Dy Managing Director and the Wholetime Director during
Exchange Board of India (Listing Obligations and Disclosure the year is as follows:
Requirements) Regulations, 2015.

41 Annual Report 2021-22


Amount ` in lakhs Sl Name Position No. of meetings attended
Sl. Particulars Salary Perquisites, Variable Total 1 Mr Akhil Joshi Chairman 4
house rent earnings 2 Mr. Anurag Gupta Member 4
allowance 3 Mr. Arvind Veer Gupta Member 4
and others
General Body meetings
1 Mr. Harish Chandra 97.14 62.37 5.25 164.76
Gupta, Chairman & a. Location and time of the General Meetings held in the last 3
Managing Director years
2 Mr. Anurag Gupta, Jt. 70.53 33.12 3.00 106.65 Year Type Date Venue/Deemed Time
Managing Director Venue
3 Mr. Arvind Veer 69.11 32.83 3.00 104.93 2021 AGM 29.09.2021 Registered Office 11.30 A.M.
Gupta, Dy. Managing 2020 AGM 29.09.2020 Registered Office 11.30 A.M.
Director 2019 AGM 28.09.2019 Registered Office 11.30 A.M.
Total
b. Whether Special Resolutions passed in the previous Yes
In addition, the Chairman & Managing Director, Jt. Managing Director three Annual General Meetings-
and Dy. Managing Director were also entitled to Company’s c. Whether any special resolution passed last year *No
contribution to provident fund. They are also entitled to the use of a through postal ballot -
Chauffer driven Car for Company’s business and Telephones at the d. Person who conducted postal ballot exercise - NA
residence. Notice period is three months from either side. No
severance fees except statutory retirement benefits is payable. e. Whether any special resolution is proposed to be NA
conducted through postal ballot -
The non-executive directors were being paid sitting fees as follows: f. Procedure for postal ballot NA
a) ` 20,000/- for each meeting of the Board;
*However, during the year under review, your Company has passed
b) ` 10,000/- for each meeting of the Committee of the Board. Special Resolution for i. Amendment in Articles of Association of the
The sitting fees paid during the financial year 2021-22 to the Company and ii. Issuance of 2,50,000 convertible warrants on a
Directors are as follows: preferential basis to the persons belonging to Promoter Category.
Means of Communication
Sl Name Designation Amount `
in lakhs Quarterly results The results of the Company are published in
1 Dr. Ramesh Chandra Vaish Independent Director 1.40 the newspapers and also displayed at the
2 Mr. Anand Bordia Independent Director 1.50 Company’s website besides submission to
3 Mrs. Asha Gupta Non-independent Director 1.30 the Stock Exchange.
4 Mr. Basant Seth Independent Director 1.50 Newspapers Business Standard/The Economic Times/
5 Mr. Akhil Joshi Independent Director 1.20 wherein results Navbharat Times
normally published
The Company has not granted any Stock Options to its Directors.
Any website, where Submitted to the Stock Exchange in the
Stakeholders Relationship Committee displayed prescribed format and displayed at the website
Stakeholders Relationship Committee comprises of executive and of the Company www.rotopumps.com
non-executive directors and functions under the Chairmanship of Whether it also No
Dr. Ramesh Chandra Vaish, who is an Independent Director. During displays official
the year, one meetings of the Stakeholders Relationship Committee news releases
were held on 12.11.2021 Composition of the Committee and The presentation No
attendance at the meeting during the year was as under made to the
Institutional
Sl Name Position No. of meetings attended
Investor and
1 Dr. Ramesh Chandra Vaish Chairman 1
Analyst
2 Mr. Anurag Gupta Member 1
3 Mr. Arvind Veer Gupta Member 1 General Shareholder Information

Mr. Ashwani K. Verma, Company Secretary is the Compliance Officer. Annual General Meeting

During the year, six complaints were received from the shareholders The ensuing Annual General Meeting is scheduled to be held on
and the same were resolved. No complaint was pending either at Thursday, 29th September, 2022 at 11.30 AM at the Registered
the beginning or at the end of the year. Office of the Company at Roto House, Noida Special Economic
Zone, and Noida – 201305 through Video Conferencing / Other
Corporate Social Responsibility Committee Audio Visuals Means (“VC/OAVM”).
Corporate Social Responsibility Committee comprises of executive Financial Year
and non-executive directors and functions under the Chairperson,
Mr. Akhil Joshi, who was an Independent Director. During the year, The Company follows April – March financial year. The un-audited
four meetings of the Corporate Social Responsibility Committee financial results for first, second (half yearly) and third quarter would
were held on 02.06.2021, 12.08.2021, 10.11.2021 and 31.03.2022. be published in July/August, October/November and January/
Composition of the Committee and attendance at the meeting February respectively. Annual audited consolidated financial results
during the year was as under would be published in May.

Annual Report 2021-22 42


MANAGEMENT REPORT

Book Closure
The Share transfer books and Register of Members will be closed
from Friday, 23rd September, 2022 to Thursday the 29th September,
2022 (both days inclusive) for the purpose of Forty Seventh Annual
General Meeting and payment of final dividend, if approved.
Dividend payment date
During the year under review, the Board of Directors in its meeting
held on 26th May, 2022 recommend a final dividend of `2.85/- per
equity share of `2/- each i.e. 142.50% for the financial year ended
31st March, 2022. The final dividend, if approved by the shareholders
of the Company at ensuing Annual General Meeting would involve
cash outflow of `447.56 lakhs. The final dividend, if declared, shall
be paid within 30 days from the date of Annual General Meeting.
The Stock Exchange on which the Company’s Shares are listed
The Equity Shares of your Company are presently listed at the BSE
Limited (“BSE”), Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai –
400001 vide Security Code 517500 and also at the National Stock
Exchange of India Limited (“NSE”)* w.e.f. 21st April, 2022, Exchange
Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E),
Mumbai-400051 vide Security Code ROTO The shares of the
Company are not suspended from trading.
The Annual Listing Fees for the financial year 2022-23 has been
paid.
ISIN Number
ISIN number of the Company for National Securities Depository Ltd
(NSDL) and Central Depository Services Ltd (CDSL) is INE535D01029.
MARKET PRICE DATA AND PERFORMANCE IN COMPARISON TO Shareholding pattern
BSE SENSEX The broad shareholding pattern of the Company as on 31st March,
The performance of the Company’s share on BSE as compared to 2022 as compared to 31st March, 2021 was as follows:
the BSE Sensex during the financial year 2021-22 has been as under:
Category of As on 31st March, 2022 As on 31st March, 2021
Shareholders No. of Percentage No. of Percentage
Sensex Roto Share No. of Shares Traded
Month Shares Shares
High Low High Low 2021-22 2020-21 Promoters 1,10,62,985 70.45 1,08,06,485 69.93
Mutual Funds 2,86,521 1.82 85,000 0.55
April 50375.77 47204.50 189.90 135.00 1490903 212956 and Banks
Private Bodies 3,03,918 1.93 1,73,485 1.12
May 52013.22 48028.07 228.00 192.90 1787812 151752 Corporate
NRIs and OCBs 5,18,963 3.30 4,71,958 3.05
June 53126.73 51450.58 243.70 190.00 1734131 406976 Resident 35,31,418 22.50 39,16,877 25.35
Individuals
July 53290.81 51802.73 217.80 186.35 846132 348749 and others
Total 1,57,03,805 100.00 1,54,53,805 100.00
Aug 57625.26 52804.08 270.00 202.00 1065695 1200142 Distribution of Shareholding
Sep 60412.32 57263.90 360.00 250.00 961156 357833 The distribution of shareholding of the Company as on 31st March,
2022 was as follows:
Oct 62245.43 58551.14 365.00 300.00 573492 199675
Shareholding of Shareholders Shares
Nov 61036.56 56382.93 375.00 305.35 327959 782792 value (in `) Number Percentage Number Percentage
1 -5000 9,243 97.73 1792970 11.38
Dec 59203.37 55132.68 388.00 286.00 551558 864251
5001-10000 103 1.09 388473 2.47
Jan 61475.15 56409.63 450.00 352.00 704038 686880 10001-20000 48 0.51 368632 2.34
20001-30000 18 0.19 227967 1.45
Feb 59618.51 54383.20 431.80 340.00 375463 641462 30001-40000 9 0.1 164850 1.05
March 58890.92 52260.82 429.00 354.95 258570 476288 40001-50000 5 0.05 114329 0.73
50001-100000 13 0.14 475783 3.02

43 Annual Report 2021-22


100001-and above 19 0.2 12170801 77.27 Pradesh, India. The Research & Development Centre has recognition
of the Department of Scientific and Industrial Research, Ministry of
Total 9,458 100.0 15703805 99.71
Science and Technology.
Dematerialization of Shares and liquidity
Address for correspondence
1,50,95,305 Equity shares out of the total 1,57,03,805 Equity shares
Shareholders are requested to direct all share related correspondence
have been dematerialized till 31.03.2022. The Company has
to RTA and only the non-share related correspondence and
entered into agreements with National Securities Depository
complaints regarding RTA to -
Limited (NSDL) and Central Depository Services Limited (CDSL)
whereby shareholders have option to dematerialize their shares The Company Secretary
with either depository. Equity shares of the Company are actively Roto Pumps Limited
traded on BSE and NSE. Roto House,
Registrar and Share Transfer Agent Noida Special Economic Zone,
Noida – 201305 U. P. India
The Company has appointed RCMC Share Registry Private Limited
Ph.: +91 - 120 – 2567902-05
as Registrars & Share Transfer Agent. Shareholders are advised to
Fax: +91 - 120 – 2567911
approach them at the following address for any shares and demat
related query and problems. Email: investors@rotopumps.com
Website: www.rotopumps.com
RCMC Share Registry Pvt. Ltd. (“RTA”)
B-25/1, Okhla Industrial Area, Phase -2, Near Rana Motors, New Other Disclosures
Delhi – 110020 Material related party transactions
Tel.: +91 11-26387320, 21, 23 The Company has not entered into any material related party
Fax: +91 11-26387322 transactions that may have potential conflict with the interest of
Email: info@rcmcdelhi.com the Company at large. Particulars of the related party
Website: http://www.rcmcdelhi.com transactions are given in note no. 40 of the standalone annual
accounts. The related party transactions have approval /
Share Transfer System
omnibus approval of the Audit Committee and approval of the
In terms of SEBI press releases dated 3rd December 2018 and 27th Board wherever necessary. Details of related party transactions
March, 2019, except in case of transmission or transposition of are placed before the Audit Committee on a quarterly basis.
shares, requests for effecting transfer of shares subsequent to 1st Policies on Material Subsidiary and Related Party Transactions
April 2019, shall not be processed by the Company for share held in are available at http://www.rotopumps.com/policies.html.
physical form. Request for transmission or transposition of shares
Fees to Statutory Auditor
alongwith the related share certificate(s) may be sent to RTA at the
above said address. An amount of ` 7.50 lakhs towards fees for all services is paid by the
Company to the Statutory Auditors for the financial year ended 31st
As regards transfer of dematerialized shares, the same can be
March, 2022. No payment is made by the subsidiary companies to
effected through the demat accounts of the transferor(s) and
the statutory auditors of the Company. Please refer note no. 33 of
transferee(s) maintained with Depository Participants.
the standalone financial statements for the financial year ended
Reconciliation of Share Capital Audit Report 31st March, 2022.
As stipulated by Regulation 76 of SEBI (Depositories & Participants) Compliance
Regulations, 2018, a qualified practicing company secretary carries
There were no instances of non-compliance by the Company; hence
out the reconciliation of share capital audit to reconcile the total
no penalties or strictures are imposed on the Company by Stock
admitted capital with National Securities Depository Limited and
Exchange, SEBI or any other Statutory Authority on any matter
Central Depository Services (I) Limited and the total issued and
related to capital markets during the last three years.
listed capital. The audit is carried out every quarter and the report is
submitted to the Stock Exchange and is also placed before the Risk Management
Board. In terms of the provisions Regulation 21 of SEBI (Listing Obligations
Outstanding GDRs / ADRs / Warrants or any convertible and Disclosure Requirements) Regulations, 2015, the requirement
instruments, conversion date and likely impact on equity of constitution of Risk Management Committee is not applicable on
the Company. However, the Company has formulated a risk
Your Company has not issued any GDRs / ADRs / Warrants or any management policy to put in place, a procedure to inform the Board
other convertible instruments. about the risk assessment and minimization procedure. The
Plant Locations Company has also formed a Risk Management Committee
comprising of Directors and Executives of the Company to assess
1. B -15, Phase II Extension, Noida – 201305, Uttar Pradesh,
the risk and minimization procedures and report the same to the
India
Board at the meetings. The Company’s policy on hedging foreign
2. 13, Roto House, Noida Special Economic Zone, Noida – currency risks is explained in the notes no 39 of the financial
201305, Uttar Pradesh, India statements for the financial year ended 31st March, 2022.
3. Plot No. 31, Sector Ecotech XII, Greater Noida – 201008 Disclosure under Regulation 32 (7A) of SEBI (LODR)
Uttar Pradesh, India Regulations, 2015
Research & Development Unit During the year under review, on 27th January, 2022 your Company
The in-house Research & Development activities of the Company has allotted 2,50,000 (Two Lakh Fifty Thousand Only) Equity Shares
are carried out at B-14, Phase II Extension, Noida – 201305, Uttar having face value of ` 2/- each pursuant to conversion of warrants

Annual Report 2021-22 44


MANAGEMENT REPORT

allotted on preferential basis at a premium of ` 140.11/- each to include approval of the transfer of shares, issue of duplicate share
Promoter/Promoter Group in terms of the approval granted by the certificates, dematerialization and dematerialization of shares.
members through Postal Ballot by remote e-voting on 19th May, During the year, the Share Transfer Committee approved transfer,
2021. transmission and dematerialization of shares on a fortnightly basis.
The proceeds from said allotment has been fully utilized by the No shares were pending for transfer as on 31.03.2022.
Company on or before 31.03.2022, towards setting up of two new Directors’ Non-Disqualification Certificate
business products/opportunities viz. solar pumping sets and
downhole pumps & mud motors. Certificate from Practicing Company Secretary confirming that
none of the Director of the Company is debarred or disqualified from
Management being continuing as Director of the by the Securities and Exchange
The Management Discussion and Analysis Report form part of the Board of India and the Ministry of Corporate Affairs or any such other
Annual Report and is in compliance with the requirement. statutory authority is enclosed in this report as Annexure I.
During the year under review, there were no materially significant CEO / CFO Certification
related party transactions with its promoters, directors and The CEO and CFO certification on the financial statements and the
management that had a potential conflict with the interest of the cash flow Statement for the financial year 2021-22 is enclosed at
Company. the end of this report as Annexure II.
Shareholders Corporate Governance
The Company has provided all the details of the Directors seeking Certificate from the Practicing Company Secretary confirming
re-appointment in the Notice of the Annual General Meeting compliance with all the conditions of the corporate governance as
attached with this Annual Report. stipulated in Securities and Exchange Board of India (Listing
The Company has not made any presentation to the Equity Analysts. Obligations and Disclosure Requirements) Regulations 2015 forms
Quarterly results are submitted to the Stock Exchanges in the a part of this report as Annexure III.
prescribed format. Compliance with mandatory requirements
Whistle Blower Policy/Vigil Mechanism The Company has complied with all the mandatory requirements of
The Company has adopted a Whistle Blower Policy in pursuance of Schedule V of Securities and Exchange Board of India (Listing
the provisions of Section 177(9) of the Companies Act, 2013, to Obligations and Disclosure Requirements) Regulations, 2015.
provide a formal mechanism to the Directors and employees to Adoption of Discretionary Requirements
report their concerns about unethical behavior, actual or suspected
fraud or violation of the Company’s Code of Conduct or ethics policy. With respect to the discretionary requirements as per Regulation
The Policy provides for adequate safeguards against victimization of 27(1) and Part E of Schedule II to Securities and Exchange Board of
employees who avail of the mechanism and also provides for direct India (Listing Obligations and Disclosure Requirements) Regulations,
access to the Chairman of the Audit Committee. It is affirmed that no 2015, the Company has a record of unmodified audit opinion on
personnel of the Company has been denied to the Audit Committee. financial statements. It is evident from the audit reports of previous
financial years. The Company endeavors to continue the same in
Sexual Harassment of Women at Workplace (Prevention, future.
Prohibition and Redressal) Act, 2013
Your Company do not have any demat suspense account /
Your Company has not received any complaint of sexual harassment unclaimed suspense account.
during the year under review.
Compliance with Code of Conduct
Share Transfer & Transmission Committee
In terms of the provisions of schedule V of the Securities and
Composition of the Share Transfer and Transmission Committee is Exchange Board of India (Listing Obligations and Disclosure
as under: Requirements) Regulations, 2015, it is hereby confirmed and
Sl Name Position declared that the Company has obtained from all the members of
1 Mr. Harish Chandra Gupta Chairman the Board and Senior Management affirmation that they have
2 Mr. Anurag Gupta Member complied with the Code of Conduct for Directors and Senior
Management in respect of the financial year 2021-22.
3 Mr. Arvind Veer Gupta Member
Terms of reference
The terms of reference of the Share Transfer Committee inter-alia
For and on behalf of the Board of Directors
Harish Chandra Gupta
Place: Noida Chairman& Managing Director
Date: 13.08.2022 DIN: 00334405

45 Annual Report 2021-22


Annexure-I
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015)
To,
The Members of
Roto Pumps Limited
Roto House, Noida Special Economic Zone,
Noida, Uttar Pradesh- 201305.
We have examined the relevant registers, records, forms, returns and
Sr. Name of Director DIN Date of
disclosures received from the Directors of Roto Pumps Limited No. appointment
having CIN: L28991UP1975PLC004152 and having registered in Company
office at Roto House, Noida Special Economic Zone, Noida, Uttar
1 Shri Anurag Gupta 00334160 29/10/1999
Pradesh- 201305 (hereinafter referred to as ‘the Company’),
produced before us by the Company for the purpose of issuing this 2 Shri Arvind Veer Gupta 00334233 16/01/2001
Certificate, in accordance with Regulation 34(3) read with Schedule 3 Smt. Asha Gupta 00334345 29/07/2006
V Para-C Sub clause 10(i) of the Securities Exchange Board of India
4 Shri Harish Chandra Gupta 00334405 31/07/1975
(Listing Obligations and Disclosure Requirements) Regulations,
2015. 5 Shri Anand Bordia 00679165 28/01/2010
In our opinion and to the best of our information and according to 6 Shri Ramesh Chandra Vaish 01068196 28/01/2010
the verifications (including Directors Identification Number (DIN) 7 Shri Basant Seth 02798529 12/05/2017
status at the portal www.mca.gov.in) as considered necessary and 8 Shri Akhil Joshi 06604954 09/08/2019
explanations furnished to us by the Company & its officers, we
hereby certify that none of the Directors on the Board of the Ensuring the eligibility for the continuity of every Director on the
Company as stated below for the Financial Year ended on 31st March, Board is the responsibility of the management of the Company. Our
2022 have been debarred or disqualified from being appointed or responsibility is to express an opinion on these, based on our
continuing as Directors of companies by the Securities and verification. This certificate is neither an assurance as to the future
Exchange Board of India, Ministry of Corporate Affairs or any such viability of the Company nor of the efficiency or effectiveness with
other Statutory Authority. which the management has conducted the affairs of the Company.

For DAYAL & MAUR


Company Secretaries

SHAILESH DAYAL
Partner
FCS No. 4897
CP No. 7142
Place: New Delhi Peer Review Cert. No. 923/2020
Date: 13.08.2022 UDIN: F004897D000791518

Annual Report 2021-22 46


MANAGEMENT REPORT

Annexure II
CEO / CFO CERTIFICATION
The Board of Directors
Roto Pumps Limited
Roto House Noida Special Economic Zone
NOIDA – 201305
Sirs, internal controls for financial reporting and that they have
A. We, Harish Chandra Gupta, Chairman & Managing Director evaluated the effectiveness of internal control systems of
and Pradeep Jain, Chief Financial Officer of Roto Pumps the Company pertaining to financial reporting and they
Limited have reviewed financial statements and the cash have disclosed to the auditors and the audit committee,
flow statement for the year and that to the best of our deficiencies in the design or operation of such internal
knowledge and belief: controls, if any, of which they are aware and the steps they
have taken or propose to take to rectify these deficiencies.
(1) these statements do not contain any materially
untrue statement or omit any material fact or D. We have indicated to the auditors and the Audit Committee:
contain statements that might be misleading; 1) significant changes in internal control over financial
(2) these statements together present a true and fair reporting during the year;
view of the Company’s affairs and are in compliance 2) significant changes in accounting policies during
with existing accounting standards, applicable laws the year and that the same have been disclosed in
and regulations. the notes to the financial statements; and
B. There are, to the best of our knowledge and belief, no 3) instances of significant fraud of which they have
transactions entered into by the Company during the year become aware and the involvement therein, if any,
which are fraudulent, illegal or violative of the Company’s of the management or an employee having a
code of conduct. significant role in the Company’s internal control
C. We accept responsibility for establishing and maintaining system over financial reporting.

Place: Noida Harish Chandra Gupta Pradeep Jain


Date:13.08.2022 Chairman & Managing Director Chief Financial Officer

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Annexure-III
CERTIFICATE OF CORPORATE GOVERNANCE
(Pursuant to regulations and Schedule V Para C of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
To,
The Members of
Roto Pumps Limited
Roto House, Noida Special Economic Zone,
Noida, Uttar Pradesh- 201305.
1. We have examined the compliance of conditions of 3. In our opinion and to the best of our information and
Corporate Governance by Roto Pumps Limited for the year according to the explanations given to us, and based on the
ended 31st March, 2022, as stipulated in the Securities and representations made by the Directors and the
Exchange Board of India (Listing Obligations and Disclosure Management, we certify that the Company has complied
Requirements) Regulations, 2015. with the conditions of Corporate Governance as stipulated
2. The compliance of conditions of Corporate Governance is in Securities and Exchange Board of India (Listing
the responsibility of the management. Our examination has Obligations and Disclosure Requirements) Regulations,
been limited to a review of procedures and implementations 2015.
thereof, adopted by the Company for ensuring compliance 4. We further state that such compliance is neither an
with the conditions of Corporate Governance as stipulated assurance as to the future viability of the Company nor of
in the said Regulations. It is neither an audit nor an the efficiency or effectiveness with which the management
expression of opinion on the financial statements of the has conducted the affairs of the Company.
Company.
For DAYAL & MAUR
Company Secretaries

SHAILESH DAYAL
Partner
FCS No. 4897
CP No. 7142
Place: New Delhi Peer Review Cert. No. 923/2020
Date: 13.08.2022 UDIN: F004897D000791531

47 Annual Report 2021-22


MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW accounted for 52% of the global revenue share. Centrifugal pumps
Global economy are used for higher flows and hence, are extensively used in the
chemical industry. These are preferred for low-pressure and high-
The global economy registered a growth of 6.1% during 2021
capacity pumping applications of liquids with viscosities ranging
against projected growth of 6.0%. The advance economies grown by
between 0.1 and 200 cP.
5.2% against projected growth of 5.6% while growth of emerging
markets and developing countries has been 6.8% against projections The demand for positive displacement pumps is estimated to
of 6.3%. This shows the global economy has recovered fast from witness growth at the fastest CAGR of 3.4%, in terms of revenue,
COVID pandemic effects. The global economy is projected to grow from 2020 to 2028 owing to their efficient working at lower speed
by 3.2% in 2022 and 2.9% in 2023. Advance economies are projected and consistent flow rates. Moreover, the preference for positive
to grow at 2.5% while emerging markets and developing economies displacement pumps in the oil & gas industry is likely to complement
are projected to grow at 3.6% in 2022. In 2023, emerging markets segment growth.
and developing countries are projected to grow at 3.9% while Manufacturers are using technology to their advantage by
advance countries growth is projected at 1.4%. Source: International developing innovative pumping solutions. New products are
Monetary Fund, July 2022. equipped with precision control and efficiency using electronic
Indian economy sensors and other digital software. Moreover, the suitability of
reciprocating pumps in pumping hazardous fluids is likely to boost
The Indian economy grew by 8.7% during 2021-22 and witnessed
the product demand.
steady recovery despite the COVID-19 related uncertainties. There
were expectations of a strong double-digit recovery. But an intense Application Insights
second wave of COVID-19 pandemic, which resulted in lockdowns The agriculture application led the market in 2020 with a revenue
and territorial restrictions, derailed this growth and dampened share of more than 25%. Technological advancements in the field of
consumer sentiment. However, due to prompt actions and irrigation and farming, especially in emerging countries, coupled
preventive measures of the Government of India after such as with the rising usage of pumps for several purposes in the agriculture
massive vaccination drive and better preparedness to fight the segment, such as irrigation, dewatering of crops, reuse, are likely to
pandemic have resulted in slowing down the negative economic boost the growth. The construction segment is also estimated to
impact. Source: India’s economic outlook, July 2022 by the Deloitte witness significant growth from 2020 to 2028. The rapid
The Government has significantly increased expenditure on development of housing complexes and commercial buildings in
infrastructure to re-build medium-term demand and aggressively prime cities would require proper systems for water availability,
implemented supply-side measures to prepare the economy for a disposal of sewage, and treatment of wastewater. Moreover, heavy
sustained long-term growth. The economy is projected to grow by investments in public infrastructures, such as offices, hospitals, and
7.2% during the current financial year. Source: RBI’s press release housing societies, are expected to boost the demand for pumps in
dated August 5, 2022. the construction industry.
INDUSTRY OVERVIEW The demand for pumps in water & wastewater applications is
expected to grow at a CAGR of 3.6% from 2020 to 2028. The
Global Industry
increasing requirement of pump stations in wastewater treatment
The global industrial pumps market was valued at USD 69.85 billion plants, where gravity flow is not feasible, coupled with high flow rate
in 2021 and is expected to grow at a CAGR of 6.3% during the deliverability and high transmission velocity is likely to augment the
forecast period upto 2030. Increasing investments in the oil & gas market growth. Increasing utilization of shale gas in the energy and
sector, technological advancements in pump manufacturing, and manufacturing industries and growing shale gas exploration
new product launches focusing on enhanced performance are activities due to technological advancements, such as horizontal
expected to have a positive impact on the market. and hydraulic drilling, are anticipated to boost the product demand
Increasing investments in the exploration and production activities by in the oil & gas sector. Furthermore, the penetration of petrochemical
the oil & gas companies across the globe are anticipated to boost the products in modern energy systems, such as wind turbine blades,
demand for pumps in the oil & gas industry. The rising number of solar panels, batteries, and Electric Vehicle (EV) parts, is expected to
infrastructure upgrades, in terms of changing or the installation of drive the market growth.
new pipelines, is expected to have a positive impact on the market. Regional Insights
The advancements in pump technology have resulted in enhanced The pumps market in the Asia Pacific region is expected to witness
basic process tasks, increasing the reliability of the pumps, and significant growth over the forecast period upto 2030 on account of
providing a long-term reduction in everyday operating processes. the rapid industrialization in the developing economies of Asia
These advanced pumps are mostly used in industries, such as Pacific and rising investments in manufacturing, commercial, and
industrial wastewater, agriculture, power, and chemicals. industrial projects have contributed to the overall growth of the
Manufacturers are also focusing on new product launches keeping regional market. Furthermore, increased product penetration in
in mind the dynamic requirement of the market. However, new various end-use industries including agriculture and petrochemical
energy efficiency standards that are to be incorporated may require is anticipated to complement market growth.
redesigning of pumps by manufacturers, which may incur high costs China is anticipated to be driven by the growing investments in
and time, thereby restraining the market growth. chemical, petrochemical, and construction industries. In addition,
Product Type Insights several chemical and petrochemical multinational companies are
The centrifugal pump segment led the market in 2020 and expected to open new manufacturing plants in China owing to the
favorable government policies. As more companies look into

Annual Report 2021-22 48


MANAGEMENT REPORT

capacity expansion in China, the demand for pumps in the country is standards. The Management of Roto accepts responsibility for the
expected to grow. integrity and objectivity of these financial statements, as well as for
Rising offshore exploration and production activities in Europe are various estimates, provisions and judgments used therein, which
anticipated to fuel demand for pumps, over the projected period. have been made on prudent and rational basis in order to reflect a
Stringent regulations intended to reduce residential water pollution true and fair view of the affairs of your Company.
are anticipated to have a significant influence on raising the demand Resources Allocation:
for water treatment in the municipal and industrial sectors. It is Non-current Assets
anticipated that rising household use of municipal facilities for
Non-current assets of your Company at 31st March, 2022 have been
water and wastewater treatment will have a significant impact on
`8,656.61 lakhs against `5436.23 lakhs as at 31st March, 2021.
the market. This scenario is anticipated to increase the consumption
Composition of non-current assets has been as under-
of centrifugal, rotary, and reciprocating pumps in the region over the
forecast period 10000.00

The growing construction sector, along with the imposition of 8000.00


stringent government regulations in Germany to restrict the
6000.00
discharge of untreated water into water reservoirs, is expected to 3247.383,855.42
drive the growth of water & wastewater treatment plants, thereby 4000.00 2922.24
1560.17 1350.17
benefiting the pumps market during the forecast period. 2000.00 732.14137.43 31st March, 2022
35.56 76.82
0.00 16.39 50.00 0.00109.12
Indian Industry 0.00 31st March, 2021

The India pump market size was valued at USD 2.2 billion in 2020
and is expected to reach USD 3.3 billion in 2026, growing at a
compound annual growth rate (CAGR) of 7% during 2020-2026.
16% of India’s pump manufacturing potential is export-oriented and
is projected to expand further.
Positive displacement pumps market comprises of 5% to the total
pump market. These pumps are widely used water and wastewater, Property, plant and equipment
chemical, oil and gas, and power generation. With the increase in Property, plant and equipment of your Company as at 31st March,
the refining capacity, the demand for positive displacement pumps 2022 have been ` 3247.38 lakhs as against `3855.42 lakhs on 31st
is likely to increase. Moreover, the technological development, March, 2021 representing a net decrease of 15.77%. The net
which has rendered deep-water and ultra-deep-water exploration decrease in property plant and equipment has been mainly due to
feasible and cost-effective, and is expected to increase oil production reclassification of leasehold land into Right of use assets and
over the forecast period. It can provide an opportunity for market depreciation / amortization for the year.
growth during the forecast period. Oil and gas sector is expected to
Capital Work-in-progress
witness significant growth in terms of industrial pump deployment
mainly due to declining production from existing oil and gas fields Capital work in progress of your Company as at 31st March, 2022
combined with increasing investments in the midstream and has been `732.14 lakhs as against `137.43 lakhs on 31st March,
downstream oil and gas sectors. 2021. This comprises of building under construction and
implementation fee of ERP software.
Competitive pricing and manufacturing capabilities are major
factors boosting growth in the pump market in India. Top end-user Right-of-use-Assets
industries in the India pump market include water and waste Right-of-use-Assets of your Company as at 31st March, 2022 of ₹
manufacturing, electricity generation, oil and gas, metals, and `2,922.24 lakhs have been due to reclassification of lease hold land
mining. and recognition of leasehold properties into Right of use assets.
The introduction of intelligent pump systems with smart track and Other Intangible assets
control fluid flow or pressure, responds to process adjustments, and Other intangible assets of your Company comprises of computer
which have failure tolerance features will reduce the total cost of software, technical drawings, trademarks and patent. Other
ownership, creating lucrative opportunities for manufacturers in the intangible assets of the Company as at 31st March, 2022 have been
market. The increased focus on after-sales services will enable ` 35.56 lakhs against `16.39 lakhs at 31st March, 2021. The net
vendors to maintain a long-term relationship with the customers in increase has been due to acquisition of product drawings and grant
the India pump market. Indian firms are constantly searching for of a patent for Maintenance in place pumps.
strategic alliances to reach global markets through technological
Investment in Subsidiaries
collaborations and to also provide high-quality products in the
Indian market. Investment in Subsidiaries of your Company as at 31st March 2022
has been `1560.17 lakhs against `1350.17 as on 31st March, 2021.
FINANCIAL STATEMENTS
The increase in investment has been on account of investment of
The Financial Statements of your Company have been prepared in Rs. 210.00 lakhs in Roto Energy Systems Limited, a wholly owned
compliance with the requirement of the Companies Act, 2013 and subsidiary in India.
the applicable new Indian Accounting Standards (Ind-AS) notified by
Deferred tax assets (net)
the Ministry of Corporate Affairs. There is no material departure from
the prescribed accounting standards in adoption of the accounting Deferred tax assets (net) of your Company as at 31st March 2022

49 Annual Report 2021-22


have been `109.12 lakhs against `76.82 lakhs as at 31st March, Share capital
2021. The net increase has been mainly due to recognition of right Share capital of your Company as at 31st March, 2022 were
of use assets and increase on provision for leave liability under the ` 314.08 lakhs as compared to ` 309.08 as at 31st March, 2022. The
Companies Act there by increasing deferred tax assets. increase in Share Capital has been on account of allotment of
Current Assets 2,50,000 (Two Lakh Fifty Thousand Only) Equity Shares having face
Total current assets of your Company as at 31st March, 2022 have value of ` 2/- each at a premium of ` 140.11/- each pursuant to
been ` 12520.88 lakhs against ` 10629.44 lakhs as at 31st March conversion of warrants allotted on preferential basis to the persons
2021. Composition of the Current assets as on 31st March, 2022 belonging to Promoter/Promoter Group.
compared to 31st March 2021 has been as under- Other equity
Other equity of your Company comprises of securities premium,
7,369.51 general reserve and retained earnings, which has been `13700.04
8,000.00 6,612.70 lakhs as at 31st March, 2022 against `10947.50 lakhs as at 31st
7,000.00
March, 2021. The increase in other equity has been on account of
6,000.00
profit for the year retained after distribution of dividend and
5,000.00
3,152.83 premium on allotment of shares on conversion of warrants.
4,000.00 2,593.31

3,000.00
1,998.54
1,423.43
Non-current Liabilities
2,000.00 Non-current liabilities of your Company as at 31st March, 2022 were
1,000.00 `1605.26 lakhs as compared to `106.48 lakhs as at 31st March,
0.00 2021. Composition of Non-current liabilities as on 31st March, 2022
Inventory Financial Assets Other current assets
as compared to at 31st March, 2021 has been as under-
31st March, 2022 31st March, 2021
1600.36

Inventories 1800

1600
Inventories of your Company as at 31st March 2022 have been
1400
` 3152.83 lakhs against ` 2593.31 lakhs as at 31st March, 2021 1200
representing an increase of 21.57%. 1000

Financial assets 800

600
Financial assets comprises of trade receivables, cash & cash
400 54.31 52.17
equivalents, other bank balances, loans and other financial assets. 200
4.9

Financial assets of your Company as at 31st March 2022 have been 0


Financial Liabilities Provisions
` 7369.51 lakhs against ` 6612.69 lakhs as at 31st March, 2021
31st March, 2022 31st March, 2021
representing an increase of 11.44%. The net increase in financial
assets has been mainly on account of increase in trade receivables, Financial liabilities
which has been mainly due to increased operations. Financial liabilities of your Company comprise of long term
Other current assets borrowings and lease liabilities, as at 31st March, 2022, the financial
Other current assets of your Company as at 31st March 2022 have liabilities have been `1600.36 lakhs against ` 54.31 lakhs as at 31st
been ` 1998.54 lakhs against ` 1423.43 lakhs as at 31st March, March, 2021. The net increase has been due to recognition of lease
2021. The net increase in other current assets has been mainly due liabilities on account of reclassification of leasehold land and
to higher capital advances and advance income tax. recognition of leasehold properties to right of use assets.

Resources: Provisions
Equity Provisions of your Company, comprises of short term provisions for
Total equity of your Company as at 31st March, 2022 has been employee benefits, warranty and other provisions have been
` 14014.12 lakhs as compared to ` 11256.58 lakhs as at 31st `151.02 lakhs as at 31st March, 2022 against `165.95 lakhs as at
March, 2021 representing a net increase of 24.50%. Composition of 31st March, 2021.
equity as on 31st March, 2022 as compared to at 31st March, 2021 Current Liabilities
has been as under Current liabilities as at 31st March, 2022 were ` 5558.11 lakhs as
13,700.04 compared to ` 4702.61 lakhs as at 31st March, 2021. The
composition of the current liabilities as at 31st March, 2022
14000 10,947.50 compared to as at 31st March, 2021 has been as under-
12000
2925.02
3000
10000 2364.66
2500
8000
2000
1,479.82 1426.34
6000
1500
1002.25
4000 745.66
314.08 1000
309.08
2000 500 151.02 165.95

0 0
Financial Liabilities Other current Provisions Current Tax
Equity Share Capital Other Equity liabilities Liabilities (Net)

31st March, 2022 31st March, 2021 31st March, 2022 31st March, 2021

Annual Report 2021-22 50


MANAGEMENT REPORT

Financial liabilities Other income during the year has been `418.12 lakhs as compared
Financial liabilities of your Company, comprises of short-term to `424.90 lakhs during the previous year.
borrowings, trade payables and other financial liabilities have been Your Company recorded a Profit after Tax of `2624.67 lakhs during
`2925.02 lakhs as at 31st March, 2022 against ` 2364.66 lakhs as at the year 2021-22 as against ` 1941.74 lakhs in 2020-21. Profit after
31st March, 2021. The net increase has been due to increase in Tax has been higher mainly due to increased revenue.
utilization of working capital limits from Banks and trade payables Revenue from Operations
which has been due to increase in operations.
Your Company’s income from operations comprises of domestic
Other current liabilities sales and exports sales. Revenue from operations during the year
Other current liabilities of your Company, comprises of creditors for has been ` 15159.91 lakhs as compared to ` 11572.15 lakhs during
capital goods, advances from customers, taxes payable and dividend the previous year. Revenue from operations product wise viz.
payable have been ` 1479.82 lakhs as at 31st March, 2022 against Pumps, Spares and Service Income has been as under –
` 1426.34 lakhs as at 31st March, 2021.
7730.95
8000.00
Provisions 7282.35

7000.00 6068.45
Provisions of your Company, comprises of short term provisions for 6000.00
5445.43

employee benefits, warranty and other provisions have been ` 5000.00


151.02 lakhs as at 31st March, 2022 against `165.95 lakhs as at 4000.00

31st March, 2021. The net decrease has been due to reduction in 3000.00

provision for employee benefits. 2000.00

8.93 129.67 49.34


Current tax liabilities 1000.00 16.95

0.00
Current tax liabilities(Net) of your Company, comprises of provisions Pumps Spares Sale of Services Other Operating
Revenue
for income tax, have been `1002.25 lakhs as at 31st March, 2022 31st March, 2022 31st March, 2021
against ` 745.66 lakhs as at 31st March, 2021.
The management believes that your Company’s liquidity and capital
Sale of pumps during the year has been `7282.35 lakhs as compared
resources would be adequate to meet its expected working capital
to `5445.43 Lakhs during the previous year while sale of spares has
needs and other anticipated cash requirements.
been at `7730.95 lakhs as compared to `6068.45 lakhs during the
FINANCIAL AND OPERATIONAL PERFORMANCE previous year. The service income has been `16.95 lakhs against
The principal source of Company’s revenue is from the sale of `8.93 lakhs during the previous year. Other operating revenue
pumps, spares and retrofit parts. Your Company has a rich heritage mainly comprises of sale of scrap materials has been `129.67 lakhs
of designing and manufacturing superior products and technologies. against `49.34 lakhs during the previous year.
Your Company offers comprehensive range of Progressive Cavity Composition of domestic sales and export sales during the financial
Pumps (PCP), Twin Screws Pumps and added other PD pumps in the year 2021-22 as compared to the previous financial year 2020-21
2020-21
product basket such as AODD and Gear pumps. The products cater has2021-22
been as under:
to a large spectrum of industries covering various industrial and
municipal applications. Aligned with its vision, your Company is
transforming into a fluid equipment solution provider. 33.74%
32.54%
67.46%
During the financial year 2021-22, your Company’s financial and 66.26%

operational performance as compared to the previous financial year


2020-21 has been as under:
15159.91 2021-22 2020-21
16000

14000 11572.14 Export sales Domestic Sales Export sales Domestic Sales

12000

10000
Domestic Sales
8000
Domestic sales during the year have been recorded at `5115.65
6000

4000
2,624.67
1,941.74
lakhs against `3765.62 lakhs, which represent an increase of
2000
418.12 424.90 35.85%. Composition of Domestic sales during the year as compared
0
to the previous year has been as under-
Revenue from Operations Other Income Profit after atx
2670.70
3000.00
31st March, 2022 31st March, 2021

2500.00 2307.03

1893.46
1816.23
Your Company’s Total Income during the year 2021-22 has been 2000.00

` 15578.03 lakhs as compared to ` 11997.05 lakhs during the year 1500.00


2020-21, which represents an increase of 29.85%. Revenue from
1000.00
operations during the year has been ` 15159.91 lakhs as compared
to ` 11572.15 lakhs during the previous year having an increase of 500.00
8.25
6.57 129.67
49.34

31.00% over the previous year. The increase in revenue from 0.00
Pumps Spares Sale of Services Other Operating
operations has been on account of efficient utilization of Company’s Revenue
marketing infrastructure in domestic and international markets. 31st March, 2022 31st March, 2021

51 Annual Report 2021-22


Revenue from Sale of Pumps during the year was ` 2670.70 lakhs KEY FINANCIAL RATIOS
against `1893.46 lakhs during the previous year. Sale of Spares Key financial ratios for the financial year 2021-22 as compared to
during the year has been `2307.03 lakhs against `1816.27 lakhs the previous financial year have been as under. Clarifications on the
during the previous year. Service income during the year has been changes are also given.
`8.25 lakhs against `6.59 lakhs during the previous year. Other
Clarification in
operating revenue mainly comprises of income from sales of scrap Particulars 2021-22 2020-21 Change change in is
and wastage has been `129.67 lakhs as compared to `49.34 lakhs more that 25%
during the previous year. Debtors’
92 92 0.00%
Export Sales turnover (days)
Inventory
Export Sales by product 93 94 1.06%
Turnover (days)
Exports Sales during the year have been `10044.27 lakhs against Reduced on
Interest
`7806.52 lakhs during the previous year, which represents a utilization of
coverage ratio 48 105 -76.19%
nominal increase of 28.67%. Composition of Export Sales during the working capital
(times)
limits
year as compared to the previous year has been as under:
Current ratio
2.25 2.26 -0.44%
6000.00 5423.92 (times)
4611.65 Debt equity Due to negligible
0.00 0.00 -
5000.00 4252.22 ratio (times) amount of debt
3551.96
Operation profit
4000.00
27.93% 25.29% 7.55%
margin (%)
3000.00
Net profit
16.45% 16.24% 1.29%
2000.00
Margin (%)
Net worth –
140.14 112.57 27.57
1000.00 8.70 2.34
` in Cr.
Return on Net
0.00 18.30% 17.31% 5.72%
Pumps Spares Sale of Services worth (%)
31st March, 2022 31st March, 2021
HEALTH, SAFETY AND ENVIRONMENT
Revenue from Sale of Pumps during the year was `4611.65 lakhs The health and safety of employees and the communities in which
against `3551.96 lakhs during the previous year. Sales of Spares the Company operates continue to be the foremost priority of the
during the year have been `5423.92 lakhs against `4252.22 lakhs Company. To mitigate the risks and challenges faced by the
during the previous year. Service income during the year has been Company during the pandemic, the Company enhanced safety and
`8.70 lakhs against `2.34 lakhs during the previous year. hygiene norms at offices, implemented work from home, staggered
Export Sales by Centers shift timings for safety of employees and leveraged digital platforms
for its day-to-day operations. The Company, in collaboration with
Your Company executes exports sales from three Centers viz. Direct
State Government and district administrators and hospitals,
Export from India, Sales from Warehouse and Marketing Offices in
contributed Ventilator and also conducted vaccination drive for
Australia and United Kingdom. Export Sales from these Centers
employees and their family members to safeguard themselves from
during the year as compared to the previous year have been as
the pandemic. Further, the Company’s three pronged
under-
communication strategy-awareness, engagement and
5000.00
4489.55 reinforcement helped spreading awareness amongst various
4500.00

4000.00
communities. Your Company continues to comply with Occupational
3500.00 Health & Safety Management System ISO 14001:2004.
3000.00 2861.26 2834.37
2720.35 2680.39
2500.00 2264.87 OPPORTUNITIES AND THREATS
2000.00

1500.00
Opportunities
1000.00 Due to intense vaccination drive globally, the covid pandemic situation
500.00

0.00
is under control and there has been surge in demand leading to supply
Direct Export Australia United Kingdom
gap in certain industries. The Government of India’s initiative of
31st March, 2022 31st March, 2021
Aatmanirbhar Bharat would provide increased opportunities in domestic
Direct Export market on one hand and its focus on exports to scale-up the Indian
Direct export sales during the year have been `4489.55 lakhs manufacturing exports to $1 trillion by fiscal year 2027-28, would
against `2861.26 lakhs in the previous year which represents an enhance opportunities in International markets. Your Company is
increase of 56.91%. focusing on both the fronts, domestic and international. On domestic
front, besides focusing to increase market share of existing product
Sales from Australia Branch
range, your Company is also working towards Aatmanirbhar Bharat as
Sales from Australia have been `2720.35 lakhs as compared to Downhole pumps and mud motors, the new products for which the
`2264.87 lakhs during the previous year, which has been higher by manufacturing facility is being setup, are the import substitute. On
20.11%. international front, your Company’s continued focus to strengthen the
Sales from U.K. Branch marketing infrastructure would provide increased opportunities.
Sales from United Kingdom have been `2834.37 lakhs against Escalating Energy prices due geopolitical issues would lead to increased
`2680.39 lakhs during the previous year, which has been higher by focus on renewal energy thereby increasing opportunities for
5.74%. Company’s solar pumping project.

Annual Report 2021-22 52


MANAGEMENT REPORT

Threats conditions, the Human Capital of the Company should have high
Markets across the Globe are under pressure due to increase in input level of motivation and knowledge. The Company continues to
cost and supply chain disruptions earlier due to covid pandemic and focus and invest in human resources development to provide an
later on account of geo-political issues, Inflation and Exchange risk open work culture and rewarding career opportunities to all its
are a definite threat. Serious vaccination drive has substantially employees. During the year, your Company’s HR division successfully
minimized disruptions due to covid, however, new virus monkey pox recruited 32 people (replacements as well as new joining) in
pose a danger. response to various business needs. Manpower strength as on
31.03.2022 was 417.
RISK AND CONCERNS
The overall employee relations were peaceful and harmonious
Present geo-political and economic issues are major concerns. On
throughout the year. The Company continued to create conducive
geo-political front, war between Russia and Ukraine has disrupted
work environment with opportunities for growth and learning, by
Global supply chain system and substantially derailed the recovery
implementing robust and comprehensive HR policies.
path from COVID pandemic. Rising tension in East Asia and Middle
East is a matter of concern for trade in this region. On the economic FUTURE OUTLOOK
front, mounting inflation especially in UK and Europe on one hand Your Company has registered a significant growth of above 30% in
and the perceived recessionary trend in US Economy are a matter of total income and 36% in profit after tax during the year under review,
concern. All the currencies across the Globe including Indian Rupee, which is in line with Company’s envisaged CAGR of 20% over a
barring a few like Russian Ruble, have depreciated historically medium term. Your Company would continue to focus on to
against US Dollar, worsening the fiscal deficit of net importing increase its market share to achieve significant growth in topline
Countries like India, which was already in pressure due to COVID which would also result in better bottom-line. Your Company has a
pandemic. This also affects inflation adversely. Almost all the strong manufacturing and marketing infrastructure with presence in
neighboring Countries are in bad shape, which would have five continents besides strong Research & Development setup,
tremendous pressure on Indian Economy. experienced and motivated Manpower. Your company has been
Your Company operates in all the major Countries, any adverse geo- focusing on MENA region and has made steady progress. Your
political and economic development would adversely affect operations Company would setup a wholly owned subsidiary. This would
and performance of the Company. Global disruptions, emerging trade enhance your Company’s capabilities to service the MENA region
patterns and evolving environmental & sustainability policies, etc. market more effectively.
could influence business decisions and market footprint. The aim is to Time ahead look challenging as Geo-political issues in Eurasia, higher
protect and enable business to generate value. inflation especially on U.K. and European Countries and recessionary
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY trends in US are certain threats to Global economy and Domestic
economy as well. Your Company’s majority of revenue is generated
Your Company has an adequate system of internal controls
from exports, acceding exchange rates are a matter of concern.
implemented by the management towards achieving higher efficiency
in all areas of operations. These controls have been designed to Your Company’s project of Downhole pumps for artificial lift and
provide a reasonable assurance with regard to maintenance of proper Mud Motors for drilling of wells in Oil & Gas industry are schedule to
accounting controls, monitoring of operations, protecting assets from become operations by end of the third quarter of the current
unauthorized use or losses, compliance with regulations and for financial year. Other project of Solar pumping systems undertaken
ensuring reliability of financial reporting. in a wholly owned subsidiary would also become operational during
the current financial year. These ventures would lead towards your
Your Company has adopted SAP software to strengthen its controls and
Company’s vision to be among the first five global Positive
processes which has become live for Indian operations since 1st July,
Displacement Pump manufacturer.
2022. It is targeted to implement SAP at Overseas Establishment within
the current financial year. This would allow integration of multiple With highly diversified market, both in terms of geographical reach
locations on one platform and would bring tremendous synergy and and the customer base alongwith the enhanced focus to increase
improve overall efficiency of the organization significantly. the market share coupled induction of new products viz. Downhole
pumps and mud motors for oil & gas industry, your Company would
The Audit Committee of the Board of Directors regularly reviews the
withstand in turbulent times and improve its performance in terms
adequacy of internal controls and takes necessary corrective
of topline and bottom-line as well.
actions wherever required.
CAUTIONARY STATEMENT
RESEARCH & DEVELOPMENT
Statements in the Management Discussion Analysis describing the
Research & Development Centre of your Company had been
Company’s objectives, expectations or predictions may be forward
recognized by the Department of Scientific & Industrial Research,
looking within the meaning of applicable securities law and regulations.
Ministry of Science & Technology, Government of India. During the
Actual results may differ from those expressed in the statement.
year, your company has incurred an amount of ` 245.16 lakhs
Important factors that could influence the Company’s operations
towards revenue expenses and `13.15 lakhs towards capital
include changes in Government regulations, tax laws, economic
expenditure totaling to ` 258.31 lakhs, which constitutes 1.70% of
development within and outside the Country and such other factors.
the Revenue from operations of the Company. Previous year, it was
`261.56 lakhs and `23.61 lakhs towards revenue expenses and For and on behalf of the Board of Directors
capital expenses, respectively, totaling to `285.17 lakhs, which
constituted 2.46% of the revenue from operation of the Company.
Harish Chandra Gupta
HUMAN RESOURCES & INDUSTRIAL RELATIONS
Place: Noida Chairman & Managing Director
We believe that in order to sustain growth under competitive
Date: 13.08.2022 DIN: 00334405

53 Annual Report 2021-22


INDEPENDENT AUDITOR’S REPORT
To the Members of Roto Pumps Limited Our opinion on the standalone Ind AS financial statements does not
Report on the Audit of the Standalone Ind AS Financial cover the other information and we do not express any form of
Statements assurance conclusion thereon.

Opinion In connection with our audit of the standalone Ind AS financial


statements, our responsibility is to read the other information and, in
We have audited the accompanying standalone Ind AS financial doing so, consider whether such other information is materially
statements of Roto Pumps Limited (“the Company”), which inconsistent with the financial statements or our knowledge
comprise the Balance sheet as at March 31 2022, the Statement of obtained in the audit or otherwise appears to be materially misstated.
Profit and Loss, including the statement of Other Comprehensive If, based on the work we have performed, we conclude that there is a
Income, the Cash Flow Statement and the Statement of Changes in material misstatement of this other information, we are required to
Equity for the year ended, and notes to the financial statements, report that fact. We have nothing to report in this regard.
including a summary of significant accounting policies and other
explanatory information which are included the returns for the year Responsibilities of Management for the [Standalone] Ind AS
ended on that date audited by the branch auditors of the Company’s Financial Statements
branches located at Australia and United Kingdom. The Company’s Board of Directors is responsible for the matters
In our opinion and to the best of our information and according to stated in section 134(5) of the Act with respect to the preparation of
the explanations given to us and based on the consideration of these standalone Ind AS financial statements that give a true and
reports of other auditors on separate financial statements and on fair view of the financial position, financial performance including
the other financial information of the branches the aforesaid other comprehensive income, cash flows and changes in equity of
standalone Ind AS financial statements give the information the Company in accordance with the accounting principles
required by the Companies Act, 2013, as amended (“the Act”) in the generally accepted in India, including the Indian Accounting
manner so required and give a true and fair view in conformity with Standards (Ind AS) specified under section 133 of the Act read with
the accounting principles generally accepted in India, of the state of [the Companies (Indian Accounting Standards) Rules, 2015, as
affairs of the Company as at March 31, 2022, its profit/loss including amended]. This responsibility also includes maintenance of
other comprehensive income its cash flows and the changes in adequate accounting records in accordance with the provisions of
equity for the year ended on that date. the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection
Basis for Opinion and application of appropriate accounting policies; making
We conducted our audit of the standalone Ind AS financial judgments and estimates that are reasonable and prudent; and the
statements in accordance with the Standards on Auditing (SAs), as design, implementation and maintenance of adequate internal
specified under section 143(10) of the Act. Our responsibilities financial controls, that were operating effectively for ensuring the
under those Standards are further described in the ‘Auditor’s accuracy and completeness of the accounting records, relevant to
Responsibilities for the Audit of the Standalone Ind AS Financial the preparation and presentation of the standalone Ind AS financial
Statements’ section of our report. We are independent of the statements that give a true and fair view and are free from material
Company in accordance with the ‘Code of Ethics’ issued by the misstatement, whether due to fraud or error.
Institute of Chartered Accountants of India together with the ethical In preparing the standalone Ind AS financial statements,
requirements that are relevant to our audit of the financial management is responsible for assessing the Company’s ability to
statements under the provisions of the Act and the Rules thereunder, continue as a going concern, disclosing, as applicable, matters
and we have fulfilled our other ethical responsibilities in accordance related to going concern and using the going concern basis of
with these requirements and the Code of Ethics. We believe that the accounting unless management either intends to liquidate the
audit evidence we have obtained is sufficient and appropriate to Company or to cease operations, or has no realistic alternative but
provide a basis for our audit opinion on the standalone Ind AS to do so.
financial statements.
Those Board of Directors are also responsible for overseeing the
Key Audit Matters Company’s financial reporting process.
Key audit matters are those matters that, in our professional Auditor’s Responsibilities for the Audit of the Standalone Ind
judgment, were of most significance in our audit of the standalone AS Financial Statements
Ind AS financial statements for the financial year ended March 31,
2022. These matters were addressed in the context of our audit of Our objectives are to obtain reasonable assurance about whether
the standalone Ind AS financial statements as a whole, and in the standalone Ind AS financial statements as a whole are free from
forming our opinion thereon, and we do not provide a separate material misstatement, whether due to fraud or error, and to issue
opinion on these matters. an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
We have determined that there are no other key audit matters to conducted in accordance with SAs will always detect a material
communicate in our report. misstatement when it exists. Misstatements can arise from fraud or
Other Information or another title if appropriate, such as error and are considered material if, individually or in the aggregate,
“Information Other than the Financial Statements and they could reasonably be expected to influence the economic
Auditor’s Report Thereon” decisions of users taken on the basis of these standalone Ind AS
financial statements.
The Company’s Board of Directors is responsible for the other
information. The other information comprises the information As part of an audit in accordance with SAs, we exercise professional
included in the Annual report, but does not include the standalone judgment and maintain professional skepticism throughout the
Ind AS financial statements and our auditor’s report thereon. audit. We also:

Annual Report 2021-22 54


FINANCIAL STATEMENTS

• Identify and assess the risks of material misstatement of the terms of sub-section (11) of section 143 of the Act, based on
standalone Ind AS financial statements, whether due to fraud or our audit and on the consideration of report of the other
error, design and perform audit procedures responsive to those auditors on separate financial statements and the other
risks, and obtain audit evidence that is sufficient and appropriate financial information of the branches, as noted in the ‘Other
to provide a basis for our opinion. The risk of not detecting a Matter’ paragraph] we give in the “Annexure A” a statement on
material misstatement resulting from fraud is higher than for the matters specified in paragraphs 3 and 4 of the Order.
one resulting from error, as fraud may involve collusion, forgery, 2. As required by Section 143(3) of the Act, we report that:
intentional omissions, misrepresentations, or the override of
internal control. (a) We have sought and obtained all the information and
explanations which to the best of our knowledge and belief
• Obtain an understanding of internal control relevant to the were necessary for the purposes of our audit;
audit in order to design audit procedures that are appropriate in
the circumstances. Under section 143(3)(i) of the Act, we are (b) In our opinion, proper books of account as required by law
also responsible for expressing our opinion on whether the have been kept by the Company so far as it appears from
Company has adequate internal financial controls system in our examination of those books and proper returns
place and the operating effectiveness of such controls. adequate for the purposes of our audit have been received
from the branches not visited by us;
• Evaluate the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related (c) The reports on the accounts of the branch offices of the
disclosures made by management. Company audited under Section 143(8) of the Act by
branch auditors have been sent to us and have been
• Conclude on the appropriateness of management’s use of the properly dealt with by us in preparing this report;
going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists (d) The Balance Sheet, the Statement of Profit and Loss
related to events or conditions that may cast significant doubt including the Statement of Other Comprehensive Income,
on the Company’s ability to continue as a going concern. If we the Cash Flow Statement and Statement of Changes in
conclude that a material uncertainty exists, we are required to Equity dealt with by this Report are in agreement with the
draw attention in our auditor’s report to the related disclosures books of account and with the returns received from the
in the financial statements or, if such disclosures are inadequate, branches not visited by us;
to modify our opinion. Our conclusions are based on the audit (e) In our opinion, the aforesaid standalone Ind AS financial
evidence obtained up to the date of our auditor’s report. statements comply with the Accounting Standards
However, future events or conditions may cause the Company specified under Section 133 of the Act, read with Companies
to cease to continue as a going concern. (Indian Accounting Standards) Rules, 2015, as amended;
• Evaluate the overall presentation, structure and content of the (f) On the basis of the written representations received from
standalone Ind AS financial statements, including the the directors as on March 31, 2022 taken on record by the
disclosures, and whether the standalone Ind AS financial Board of Directors, none of the directors is disqualified as on
statements represent the underlying transactions and events in March 31, 2022 from being appointed as a director in terms
a manner that achieves fair presentation. of Section 164 (2) of the Act;
We communicate with those charged with governance regarding, (g) With respect to the adequacy of the internal financial
among other matters, the planned scope and timing of the audit controls over financial reporting of the Company with
and significant audit findings, including any significant deficiencies reference to these standalone Ind AS financial statements
in internal control that we identify during our audit. and the operating effectiveness of such controls, refer to
We also provide those charged with governance with a statement our separate Report in “Annexure B” to this report;
that we have complied with relevant ethical requirements regarding (h) In our opinion, the managerial remuneration for the year
independence, and to communicate with them all relationships and ended March 31, 2022 has been paid / provided by the
other matters that may reasonably be thought to bear on our Company to its directors in accordance with the provisions
independence, and where applicable, related safeguards. of section 197 read with Schedule V to the Act;
Other Matter (i) With respect to the other matters to be included in the
We did not audit the financial statements and other financial Auditor’s Report in accordance with Rule 11 of the
information of Two branches included in the accompanying Companies (Audit and Auditors) Rules, 2014, as amended in
standalone Ind AS financial statements of the Company whose our opinion and to the best of our information and according
financial statements and other financial information reflect total to the explanations given to us:
assets of Rs. 2643.60 lakhs as at March 31, 2022 and the total i. The Company has disclosed the impact of pending
revenues of Rs. 5544.50 lakhs for the year ended on that date, as litigations on its financial position in its standalone Ind
considered in the financial statements/information of these AS financial statements – Refer Note No. 35.1 to the
branches have been audited by the branch auditors whose reports standalone Ind AS financial statements;
have been furnished to us by management, and our opinion in so far
ii. The Company did not have any material foreseeable
as it relates to the amounts and disclosures included in respect of
losses in long-term contracts including derivative
branches, is based solely on the report of such branch auditors. Our
contracts during the year ended March 31, 2022;
opinion is not modified in respect of these matters.
iii. There company has transferred the requisite unpaid
Report on Other Legal and Regulatory Requirements
amount to the Investor Education and Protection Fund
1. As required by the Companies (Auditor’s Report) Order, 2020 and there was no pending amount which was required
(“the Order”), issued by the Central Government of India in to be transferred to IEPF by the company.

55 Annual Report 2021-22


iv. (a) The Management has represented that, to the best security or the like on behalf of the Ultimate
of its knowledge and belief, no funds (which are Beneficiaries;
material either individually or in the aggregate) (c) Based on the audit procedures that have been
have been advanced or loaned or invested (either considered reasonable and appropriate in the
from borrowed funds or share premium or any circumstances, nothing has come to our notice
other sources or kind of funds) by the Company to that has caused us to believe that the
or in any other person or entity, including foreign representations under sub-clause (i) and (ii) of Rule
entity (“Intermediaries”), with the understanding, 11(e), as provided under (a) and (b) above, contain
whether recorded in writing or otherwise, that the any material misstatement.
Intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified v. As stated in Note 16 and Note 48 to the standalone
in any manner whatsoever by or on behalf of the financial statements
Company (“Ultimate Beneficiaries”) or provide any (a) The final dividend proposed in the previous year,
guarantee, security or the like on behalf of the declared and paid by the Company during the year
Ultimate Beneficiaries; is in accordance with Section 123 of the Act, as
(b) The Management has represented, that, to the best applicable.
of its knowledge and belief, no funds (which are (b) The Company has not paid any interim dividend
material either individually or in the aggregate) declared and paid by the Company during the year.
have been received by the Company from any
(c) The Board of Directors of the Company have
person or entity, including foreign entity (“Funding
proposed final dividend for the year which is subject
Parties”), with the understanding, whether recorded
to the approval of the members at the ensuing
in writing or otherwise, that the Company shall,
Annual General Meeting. The amount of dividend
whether, directly or indirectly, lend or invest in
proposed is in accordance with section 123 of the
other persons or entities identified in any manner
Act, as applicable
whatsoever by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee,
For R.N. Marwah & Co. LLP
Chartered Accountants
(Firm’s Registration No. 001211N/N500019)

Manoj Gupta
Partner
Place : Noida (Membership No. 096776)
Date : 26.05.2022 UDIN: 22096776AJRNQP8292

ANNEXURE ‘A’ TO THE INDEPENDENT AUDITOR’S REPORT


(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of
Roto Pump Limited of even date)
(i) a.1). The Company has maintained proper records showing full c. According to the information and explanations given to us
particulars, including quantitative details and situation of and on the basis of our examination of the records of the
Property, Plant and Equipment. Company, the title deeds of immovable properties (other
2). The Company has maintained proper records showing full than immovable properties where the Company is the
particulars of intangible assets except for certain user licenses lessee and the leases agreements are duly executed in
relating to office software and those intangible assets which are favour of the lessee) disclosed in the financial statements
in use though they have been fully amortised. As represented to are held in the name of the Company.
us by the management, the Company is in the process of
updating its records to reflect these details. d. According to the information and explanations given to us
and on the basis of our examination of the records of the
b. According to the information and explanations given to us Company, the Company has not revalued its Property, Plant
and on the basis of our examination of the records of the and Equipment (including Right of Use assets) or intangible
Company, the Company has a regular programme of assets or both during the year.
physical verification of its Property, Plant and Equipment by
which all property, plant and equipment are verified every e. According to information and explanations given to us and
year. In accordance with this programme, certain class of on the basis of our examination of the records of the
property, plant and equipment of one of its unit were Company, there are no proceedings initiated or pending
verified during the year on 30th March, 2022. In our opinion, against the Company for holding any benami property
this periodicity of physical verification is reasonable having under the Prohibition of Benami Property Transactions Act,
regard to the size of the Company and the nature of its 1988 and rules made thereunder.
assets. No discrepancies were noticed on such verification.

Annual Report 2021-22 56


FINANCIAL STATEMENTS

(ii) a. The inventory, except goods-in-transit and stocks lying with State Insurance, Income-Tax, Duty of Customs, Cess and
third parties, has been physically verified by the other statutory dues have been regularly deposited by the
management during the year. For stocks lying with third company with the appropriate authorities.
parties at the year-end, written confirmations have been b. According to the information and explanations given to us,
obtained and for goods-in-transit subsequent evidence of statutory dues relating to Goods and Service Tax, Provident
receipts has been linked with inventory records. In our Fund, Employees State Insurance, Income-Tax, Duty of
opinion, the frequency of such verification is reasonable Customs or Cess or other statutory dues which have not
and procedures and coverage as followed by management been deposited on account of any dispute are as follows:
were appropriate. No discrepancies were noticed on
verification between the physical stocks and the book S. Name of Nature of Forum Amount
No. the Statute Dues where (` In
records that were more than 10% in the aggregate of each
Disputes Lacs)
class of inventory.
is
b. According to the information and explanations given to us pending
and on the basis of our examination of the records of the 1. Income Tax Income Tax CIT 38.62
Company, the Company has been sanctioned working Act, 1961 (FY 2017-18) - Appeal
capital limits in excess of five crore rupees, in aggregate, 2. Income Tax Income Tax Assessing 36.86
from banks or financial institutions on the basis of security Act, 1961 (FY 2018-19) officer:
of current assets. As informed and explained further to us Circle
the lending bank has not asked the quarterly information (viii). According to the information and explanations given to us and
statement from the company during the year and on the basis of our examination of the records of the Company,
resultantly the company has not filed any quarterly the Company has not surrendered or disclosed any transactions,
information statement to the bank. Therefore this clause previously unrecorded as income in the books of account, in the
2(ii)(b) of Order for disclosure of difference between books tax assessments under the Income Tax Act, 1961 as income
of accounts and quarterly information statement is not during the year.
applicable. (ix) a. According to the information and explanations given to us
(iii). According to the information and explanations given to us and and on the basis of our examination of the records of the
on the basis of our examination of the records of the Company, Company, the Company has not defaulted in repayment of
the Company has not provided any guarantee or security or loans and borrowing or in the payment of interest thereon
granted any loans or advances in the nature of loans, secured or to banks or financial institutions during the year.
unsecured to companies, firms, limited liability partnership or b. According to the information and explanations given to us
any other parties during the year. The Company has made and on the basis of our examination of the records of the
investments in wholly owned subsidiary Company and it is not Company, the Company has not been declared a wilful
prejudicial to the interest of the Company. defaulter by any bank or financial institution or government
iv). According to the records of the Company, the Company has or government authority.
neither made any investments nor has it given loans or provided c. In our opinion and according to the information and
guarantee or security and therefore the relevant provisions of explanations given to us by the management, term loans
Sections 185 and 186 of the Companies Act, 2013 are not were applied for the purpose for which the loans were
applicable to the Company. Accordingly, clause 3(iv) of the obtained.
Order is not applicable. d. According to the information and explanations given to us
(v). The Company has not accepted any deposits or amounts which and on an overall examination of the balance sheet of the
are deemed to be deposits from the public. Accordingly, clause company, we report that no funds raised on short-term
3(v) of the Order is not applicable. basis have been used for long-term purposes by the
(vi). We have broadly reviewed the books of accounts maintained by company.
the Company pursuant to the rules prescribed by the Central e. According to the information and explanations given to us
Government for maintenance of cost records under Section and on an overall examination of the financial statements
148(1) of the Companies Act, 2013 in respect of its manufactured of the company, we report that the company has not taken
goods (and/or services provided by it) and are of the opinion any funds from any entity or person on account of or to
that prima facie, the prescribed accounts and records have been meet the obligations of its subsidiaries, associates or joint
made and maintained. However, we have not carried out a ventures as defined under Companies Act, 2013.
detailed examination of the records with a view to determine f. According to the information and explanations given to us
whether these are accurate or complete. and procedures performed by us, we report that the
(vii). a. According to the information and explanations given to us company has not raised loans during the year on the pledge
and on the basis of our examination of the records of the of securities held in its subsidiaries, joint ventures or
Company, amounts deducted / accrued in the books of associate companies (as defined under Companies Act,
account in respect of undisputed statutory dues including 2013).
Goods and Services Tax (‘GST’), Provident fund, Employees’

57 Annual Report 2021-22


(x). a. The Company has not raised any moneys by way of initial given to us, the Company has not entered into any non-cash
public offer or further public offer (including debt transactions with its directors or persons connected to its
instruments) Accordingly, clause 3(x)(a) of the Order is not directors and hence, provisions of Section 192 of the Companies
applicable. Act, 2013 are not applicable to the Company.
b. According to the information and explanations given to us (xvi). a. The Company is not required to be registered under Section
and on the basis of our examination of the records of the 45-IA of the Reserve Bank of India Act, 1934. Accordingly,
Company, the Company has not made any private clause 3(xvi)(a) of the Order is not applicable.
placement of shares or fully or partly convertible debentures b. The Company is not a Core Investment Company (CIC) as
during the year. In respect of preferential allotment of defined in the regulations made by the Reserve Bank of
equity shares made during the year, the Company has duly India. Accordingly, clause 3(xvi)(c) of the Order is not
complied with the requirements of section 62 of the applicable.
Companies Act, 2013. The proceeds from issue of equity
shares have been used for the purposes for which the funds c. The Company is not part of any group. Accordingly, the
were raised. requirements of clause 3(xvi)(d) are not applicable.

(xi). a. Based on examination of the books and records of the (xvii). The Company has not incurred cash losses in the current and in
Company and according to the information and explanations the immediately preceding financial year.
given to us, no fraud by the Company or on the Company (xviii) There has been no resignation of the statutory auditors during
has been noticed or reported during the course of the audit. the year. Accordingly, clause 3(xviii) of the Order is not
b. According to the information and explanations given to us, applicable.
no report under sub-section (12) of Section 143 of the (xix) According to the information and explanations given to us and
Companies Act, 2013 has been filed by the auditors in Form on the basis of the financial ratios, ageing and expected dates of
ADT-4 as prescribed under rule 13 of Companies (Audit and realisation of financial assets and payment of financial liabilities,
Auditors) Rules, 2014 with the Central Government. other information accompanying the financial statements, our
c. As represented to us by the management, there are no knowledge of the Board of Directors and management plans
whistle blower complaints received by the Company during and based on our examination of the evidence supporting the
the year. assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date
(xii) According to the information and explanations given to us, the of the audit report that company is not capable of meeting its
Company is not a Nidhi Company. Accordingly, clause 3(xii) of liabilities existing at the date of balance sheet as and when they
the Order is not applicable. fall due within a period of one year from the balance sheet date.
(xiii) In our opinion and according to the information and explanations We, however, state that this is not an assurance as to the future
given to us, the transactions with related parties are in viability of the company. We further state that our reporting is
compliance with Section 177 and 188 of the Companies Act, based on the facts up to the date of the audit report and we
2013, where applicable, and the details of the related party neither give any guarantee nor any assurance that all liabilities
transactions have been disclosed in the financial statements as falling due within a period of one year from the balance sheet
required by the applicable accounting standards. date, will get discharged by the company as and when they fall
due.
(xiv).a. Based on information and explanations provided to us and
our audit procedures, in our opinion, the Company has an (xx) In respect of other than ongoing projects, the company has
internal audit system commensurate with the size and transferred unspent amount to a Fund specified in Schedule VII
nature of its business. to the Companies Act, 2013 within a period of six months of the
expiry of the financial year in compliance with second proviso to
b. We have considered the internal audit reports of the sub-section (5) of section 135 of the said Act. For year wise
Company issued till date for the period under audit. detail refer Note No. 42 to the standalone Ind-AS financial
(xiv) In our opinion and according to the information and explanations statements

For R.N. Marwah & Co. LLP


Chartered Accountants
(Firm’s Registration No. 001211N/N500019)

Manoj Gupta
Partner
Place : Noida (Membership No. 096776)
Date : 26.05.2022 UDIN: 22096776AJRNQP8292

Annual Report 2021-22 58


FINANCIAL STATEMENTS

Annexure-B
Annexure to the Independent Auditor’s Report
Report on the Internal Financial Controls Over Financial statements, whether due to fraud or error. We believe that the audit
Reporting under Clause (i) of Subsection 3 of Section 143 of the evidence we have obtained, is sufficient and appropriate to provide
Companies Act, 2013 (“the Act”) a basis for our audit opinion on the Company’s internal financial
controls system over financial reporting
We have audited the internal financial controls over financial
reporting of Roto Pump Limited (“the Company”) as of March 31, Meaning of Internal Financial Controls Over Financial
2022 in conjunction with our audit of the standalone financial Reporting
statements of the Company for the year ended on that date.
A company’s internal financial control over financial reporting is a
Management’s Responsibility for Internal Financial Controls process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
The Management of the Company is responsible for establishing
statements for external purposes in accordance with generally
and maintaining internal financial controls based on the internal
accepted accounting principles. A company’s internal financial
control over financial reporting criteria established by the Company
control over financial reporting includes those policies and
considering the essential components of internal control stated in
procedures that (1) pertain to the maintenance of records that, in
the Guidance Note on Audit of Internal Financial Controls Over
reasonable detail, accurately and fairly reflect the transactions and
Financial Reporting issued by the Institute of Chartered Accountants
dispositions of the assets of the company; (2) provide reasonable
of India (the “ICAI”). These responsibilities include the design,
assurance that transactions are recorded as necessary to permit
implementation and maintenance of adequate internal financial
preparation of financial statements in accordance with generally
controls that were operating effectively for ensuring the orderly and
accepted accounting principles, and that receipts and expenditures
efficient conduct of its business, including adherence to company’s
of the company are being made only in accordance with
policies, the safeguarding of its assets, the prevention and detection
authorisations of management and directors of the company; and
of frauds and errors, the accuracy and completeness of the
(3) provide reasonable assurance regarding prevention or timely
accounting records, and the timely preparation of reliable financial
detection of unauthorised acquisition, use, or disposition of the
information, as required under the Act.
company’s assets that could have a material effect on the financial
Auditor’s Responsibility statements.
Our responsibility is to express an opinion on the Company’s internal Inherent Limitations of Internal Financial Controls Over
financial controls over financial reporting of the Company based on Financial Reporting
our audit. We conducted our audit in accordance with the Guidance
Because of the inherent limitations of internal financial controls
Note on Audit of Internal Financial Controls Over Financial Reporting
over financial reporting, including the possibility of collusion or
(the “Guidance Note”) issued by the ICAI and the Standards on
improper management override of controls, material misstatements
Auditing prescribed under Section 143(10) of the Companies Act,
due to error or fraud may occur and not be detected. Also,
2013, to the extent applicable to an audit of internal financial
projections of any evaluation of the internal financial controls over
controls. Those Standards and the Guidance Note require that we
financial reporting to future periods are subject to the risk that the
comply with ethical requirements and plan and perform the audit to
internal financial control over financial reporting may become
obtain reasonable assurance about whether adequate internal
inadequate because of changes in conditions, or that the degree of
financial controls over financial reporting was established and
compliance with the policies or procedures may deteriorate.
maintained and if such controls operated effectively in all material
respects. Our audit involves performing procedures to obtain audit Opinion
evidence about the adequacy of the internal financial controls
In our opinion, to the best of our information and according to the
system over financial reporting and their operating effectiveness.
explanations given to us, the Company has, in all material respects,
Our audit of internal financial controls over financial reporting
an adequate internal financial controls system over financial
included obtaining an understanding of internal financial controls
reporting and such internal financial controls over financial
over financial reporting, assessing the risk that a material weakness
reporting were operating effectively as at March 31, 2022, based on
exists, and testing and evaluating the design and operating
the criteria for internal financial control over financial reporting
effectiveness of internal control based on the assessed risk. The
established by the Company considering the essential components
procedures selected depend on the auditor’s judgement, including
of internal control stated in the Guidance Note on Audit of Internal
the assessment of the risks of material misstatement of the financial
Financial Controls Over Financial Reporting issued by the ICAI.
For R.N. Marwah & Co. LLP
Chartered Accountants
(Firm’s Registration No. 001211N/N500019)
Manoj Gupta
Partner
Place : Noida (Membership No. 096776)
Date : 26.05.2022 UDIN: 22096776AJRNQP8292

59 Annual Report 2021-22


STANDALONE BALANCE SHEET AS AT 31ST MARCH, 2022
(Amount INR Lakhs)
PARTICULARS Note No As at 31st March, 2022 As at 31st March, 2021

ASSETS
NON-CURRENT ASSETS
(a) Property, plant and equipment 3 3,247.38 3,855.42
(b) Capital work-in-progress 4 732.14 137.43
(c) Right of Use Assets 5(a) 2,922.24 -
(d) Other Intangible assets 6 35.56 16.39
(e) Investment in subsidiaries 7 1,560.17 1,350.17
(f) Other financial assets 13(a) 50.00 -
(g) Deferred tax assets (Net) 19 109.12 76.82
TOTAL NON-CURRENT ASSETS 8,656.61 5,436.23

CURRENT ASSETS
(a) Inventories 8 3,152.83 2,593.31
(b) Financial Assets
(i) Trade receivables 9 4,521.85 3,096.61
(ii) Cash and cash equivalents 10 1,525.25 2,956.12
(iii) Bank balances other than (ii) above 11 939.05 306.49
(iv) Loans 12 17.97 11.94
(v) Other financial assets 13(b) 365.39 241.54
(c) Other current assets 14 1,998.54 1,423.43
TOTAL CURRENT ASSETS 12,520.88 10,629.44
TOTAL ASSETS 21,177.49 16,065.67

EQUITY AND LIABILITIES


EQUITY
a) Equity Share Capital 15 314.08 309.08
b) Other Equity 16 13,700.04 10,947.50
TOTAL EQUITY 14,014.12 11,256.58

NON-CURRENT LIABILITIES
(a) Financial Liabilities
(i) Borrowings 17 32.57 54.31
(ii) Lease Liabilities 5(b) 1,567.79
(b) Provisions 18 4.90 52.17
TOTAL NON-CURRENT LIABILITIES 1,605.26 106.48
CURRENT LIABILITIES
(a) Financial Liabilities
(i) Borrowings 20 1,394.78 1,138.86
(ii) Lease Liabilities 5(b) 66.23 -
(iii) Trade payables
-Total outstanding dues of micro enterprises and small enterprises 21 218.00 199.83
-Total outstanding dues of creditors other than micro enterprises and 1,230.05 1,015.37
small enterprises
(iv) Other financial liabilities (other than those specified in item (b)) 22 15.96 10.60
(b) Other current liabilities 23 1,479.82 1,426.34
(c) Provisions 24 151.02 165.95
(d) Current Tax Liabilities (Net) 25 1,002.25 745.66

TOTAL CURRENT LIABILITIES 5,558.11 4,702.61


TOTAL EQUITY AND LIABILITIES 21,177.49 16,065.67
The Significant Accounting policies and accompaning notes mentioned are 1 to 51
an intergral part of financial statements

For and on behalf of the Board


As per our report of even date.
For R.N Marwah & Co LLP (HARISH CHANDRA GUPTA) (ANURAG GUPTA)
Chartered Accountants Chairman & Managing Director Jt. Manging Director
(Registration No.0001211N/N500019) (DIN : 00334405) (DIN : 00334160)

(Manoj Gupta) (PRADEEP JAIN) (ASHWANI K VERMA)


PARTNER Chief Financial Officer Company Secretary
Membership No.096776 (PAN : AAEPJ6827A) (M.No : F9296)

PLACE: Noida
DATE : 26.05.2022

Annual Report 2021-22 60


FINANCIAL STATEMENTS

STANDALONE STATEMENT OF PROFIT AND LOSS FOR YEAR ENDED 31ST MARCH, 2022
(Amount INR Lakhs)
Year Ended 31st Year Ended 31st
PARTICULARS Note
March, 2022 March, 2021

INCOME
Revenue from Operations 26 15,159.91 11,572.15
Other Income 27 418.12 424.90
TOTAL INCOME 15,578.03 11,997.05

EXPENSES
Cost of Materials consumed 28 5,522.89 3,649.00
Change in Inventories of Finished goods and Work in Progress 29 (436.04) 152.54
Employee Benefits Expense 30 3,564.57 2,859.28
Finance Costs 31 146.00 26.19
Depreciation & Amortisation Expense 32 541.65 562.39
Other Expenses 33 2,687.75 2,032.40
TOTAL EXPENSES 12,026.82 9,281.79
Profit before Tax 3,551.21 2,715.26
Tax expenses
Current tax 929.60 745.66
Deferred Tax 19 (19.39) 17.79
Short/(Excess) Provisions- earlier years 16.33 10.06
Profit for the year 2,624.67 1,941.74

Other Comprehensive Income


(i) Items that will not be reclassified to profit or loss
- Remeasurement of Defined benefit plans (48.38) 5.60
(ii) Income tax relating to items that will not be reclassified to profit or loss
- Remeasurement of Defined benefit plans 19 (12.18) 1.41
Total Other Comprehensive Income/(Loss) for the Year (Net of Tax) (60.56) 7.01

Total comprehensive income for the year 2,564.11 1,948.75

Earnings per equity share: 34 16.94 12.56


Basic and Diluted (Face value Rs.2 per equity share)
The Significant Accounting policies and accompaning notes mentioned are an intergral 1 to 51
part of financial statements

For and on behalf of the Board


As per our report of even date.
For R.N Marwah & Co LLP (HARISH CHANDRA GUPTA) (ANURAG GUPTA)
Chartered Accountants Chairman & Managing Director Jt. Manging Director
(Registration No.0001211N/N500019) (DIN : 00334405) (DIN : 00334160)

(Manoj Gupta) (PRADEEP JAIN) (ASHWANI K VERMA)


PARTNER Chief Financial Officer Company Secretary
Membership No.096776 (PAN : AAEPJ6827A) (M.No : F9296)

PLACE: Noida
DATE : 26.05.2022

61 Annual Report 2021-22


STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH,2022
(Amount INR Lakhs)
PARTICULARS Year Ended 31st March, 2022 Year Ended 31st March, 2021

(A) CASH FLOW FROM OPERATING ACTIVITIES:


Net Profit / (Loss) before tax 3,551.21 2,715.25
Adjustment for :
Depreciation 541.65 562.39
Finance Cost 75.93 26.19
Interest on Lease Liabilities 70.07 -
Interest Income (111.03) (62.32)
Share issue Expenses (12.05) -
Net (gains)/loss on disposal of property, plant and equipment (1.12) (5.09)
Remeasurement of defined benefit liabilities (48.38) 5.60
Net (gains)/loss on fair valuation of derivative contracts 13.17 (35.01)
Operating Profit / (Loss) before Working Capital Changes 4,079.45 3,207.01
Movement in working capital
Adjustments for (increase)/decrease in operating assets:
Inventories (559.52) 266.89
Trade receivables (1,425.24) (335.83)
Loans (6.03) (2.94)
Other current financial assets (173.85) (46.32)
Other current assets (169.53) 8.36
Adjustments for increase/(decrease) in operating liabilities:
Trade payables 232.85 216.48
Other current financial liabilities 5.36 (16.46)
Other current liabilities (56.37) 789.12
Provisions (62.20) 105.92
Cash generated from operations 1,864.92 4,192.23
Direct Tax Paid (Net) (1,028.20) (583.17)
Net cash generated from operating activities (A) 836.72 3,609.06

(B) CASH FLOW FROM INVESTING ACTIVITIES:


Payment for Property , Plant and Equipment (763.55) (325.57)
Payment for Right to Use assets (469.79) -
Payment for Capital Work In Progress (594.70) (74.62)
Proceeds from disposal of Property , Plant and Equipment 27.93 29.76
Investment in Subsidiary (210.00) (130.77)
Interest Received 111.03 62.32
Net (Gain)/Loss on fair valuation of derivative contract (13.17) 35.01
Net Cash used in Investing Activities (B) (1,912.25) (403.87)

(C) CASH FLOW FROM FINANCING ACTIVITIES:


Proceeds from Non Current borrowings (36.63) (21.55)
Proceeds from Current borrowings 270.81 (462.14)
Proceeds from Share issue 355.28 -
Payment against Lease Liabilties (182.22) -
Interest Paid (75.93) (26.19)
Dividend Paid/Payable (54.09) (216.35)
Net Cash used in Financing Activities (C) 277.22 (726.23)

Net increase in Cash and Cash Equivalents (A+B+C) (798.31) 2,478.96


Cash and Cash Equivalents as at the begining of the year (Note No -10 & 11) 3,262.61 783.65
Cash and Cash Equivalents as at the end of the year (Note No -10 & 11) 2,464.30 3,262.61

For and on behalf of the Board


As per our report of even date.
For R.N Marwah & Co LLP (HARISH CHANDRA GUPTA) (ANURAG GUPTA)
Chartered Accountants Chairman & Managing Director Jt. Manging Director
(Registration No.0001211N/N500019) (DIN : 00334405) (DIN : 00334160)

(Manoj Gupta) (PRADEEP JAIN) (ASHWANI K VERMA)


PARTNER Chief Financial Officer Company Secretary
Membership No.096776 (PAN : AAEPJ6827A) (M.No : F9296)

PLACE: Noida
DATE : 26.05.2022

Annual Report 2021-22 62


FINANCIAL STATEMENTS

STANDALONE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2022
A EQUITY SHARE CAPITAL (Amount INR Lakhs)
Particulars
Balance as at 31st March, 2021 309.08
Changes in equity share capital during the year 2021-22 5.00
Balance as at 31st March, 2022 314.08

B OTHER EQUITY (Amount INR Lakhs)


Securities General Retained
Particulars Total Equity
Premium Reserve Earnings
As at 1st April 2021 472.07 557.89 9,917.54 10,947.50
Profit for the year 2021-22 2,624.67 2,624.67
Other comprehensive income for the year 2021-22 (net of tax) -
Remeasurement of Net defined benefit liability/(asset) (net of tax) (60.55) (60.55)
Total comprehensive income for the year - - 2,564.12 2,564.12
Add: Security premium on shares issued during the year 350.28 - - 350.28
Less: Share issue Expenses (12.05) (12.05)
Less: Adjustment for Right of use Assets Recognition - - (95.73) (95.73)
Less: Appropriations
Dividend Paid/Payable - - 54.09 54.09
As at 31st March, 2022 822.35 557.89 12,319.80 13,700.04

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2022
Company Overview • If a company has not used funds for the specific purpose for
which it was borrowed from banks and financial institutions,
Roto Pumps Limited referred to as “RPL” or “the Company” was
then disclosure of details of where it has been used.
incorporated on 31st July 1975. RPL is an enterprise listed on the BSE
Ltd. and NSE Ltd. The principal source of Company’s revenue is from the • Specific disclosure under ‘additional regulatory requirement’
sale of pumps, spares and retrofit parts. The Company has a rich heritage such as compliance with approved schemes of arrangements,
of designing and manufacturing superior products and technologies. compliance with number of layers of companies, title deeds of
Company offers comprehensive range of Progressive Cavity Pumps immovable property not held in name of company, loans and
(PCP), Twin Screws Pumps and added other PD pumps in the product advances to promoters, directors, key managerial personnel
basket such as AODD and Gear pumps. The products cater to a large (KMP) and related parties, details of benami property held etc.
spectrum of industries covering various industrial and municipal
Statement of profit and loss:
applications. Aligned with its vision, the Company is transforming into a
fluid equipment solution provider. • Additional disclosures relating to Corporate Social
Responsibility (CSR), undisclosed income and crypto or virtual
Recent Accounting Developments
currency specified under the head ‘additional information’ in
On March 24, 2021, the Ministry of Corporate Affairs (“MCA”) through a the notes forming part of the consolidated financial statements.
notification, amended Schedule III of the Companies Act, 2013. The
Above mentioned amendments are incorporated while
amendments revise Division I, II and III of Schedule III and are applicable
preparation of Financial Statements, wherever applicable to
from April 1, 2021. Key amendments relating to Division II which relate
the company.
to companies whose financial statements are required to comply with
Companies (Indian Accounting Standards) Rules 2015 are: 1. Statement of Significant Accounting Policies
Balance Sheet: Basis of Preparation: The Financial Statements are prepared
in accordance with Indian Accounting Standards (Ind AS)
• Lease liabilities should be separately disclosed under the head
notified under section 133 of the Companies Act, 2013 (“Act”)
‘financial liabilities’, duly distinguished as current or non-
read with Companies (Indian Accounting Standards) Rules,
current.
2015 as amended from time to time and the other relevant
• Certain additional disclosures in the statement of changes in provisions of the Acts and Rules thereunder.
equity such as changes in equity share capital due to prior
The financial statements have been prepared on accrual and
period errors and restated balances at the beginning of the
going concern basis. The accounting policies are applied
current reporting period.
consistently to all the periods presented in the financial
• Specified format for disclosure of shareholding of promoters. statements. All assets and liabilities have been classified as
current or non-current as per the Company’s normal operating
• Specified format for ageing schedule of trade receivables, trade
cycle, paragraph 66 and 69 of Ind AS 1 and other criteria as set
payables, capital work-in-progress and intangible asset under
out in the Division II of Schedule III to the Companies Act, 2013.
development.
Based on the nature of products and the time between

63 Annual Report 2021-22


acquisition of assets for processing and their realization in cash carrying amount of these assets will be recovered. The impact
and cash equivalents, the Company has ascertained its of COVID-19 on the Company’s financial statements may differ
operating cycle as 12 months for the purpose of current or from that estimated as at the date of approval of these financial
non-current classification of assets and liabilities. statements and the Company will continue to closely monitor
any material changes to future economic conditions.
The Financial Statements have been prepared under historical
cost convention basis, except for certain assets and liabilities 1.2. Property, Plant and Equipment
measured at fair value.
1.2.1. Property, plant and equipment are stated at cost net of
The Company’s presentation and functional currency is Indian accumulated depreciation and accumulated impairment
Rupees (INR). All figures appearing in the financial statements losses, if any.
are rounded off to INR Lakhs.
1.2.2. The initial cost of an asset comprises its purchase price
Authorization of Standalone Financial Statements: The (including non-refundable import duties and taxes), any costs
Standalone financial statements were authorized for issue in directly attributable to bringing the asset at the location and
accordance with a resolution of the Board of Directors in its condition necessary for it to be capable of operating in the
meeting held on 26th May, 2022. manner intended by the management, the initial estimate of
any decommissioning obligation, if any, and borrowing cost for
1.1. Key Accounting Estimates and Judgements
qualifying assets (i.e. assets that necessarily take a substantial
The preparation of Company’s financial statements requires period of time to get ready for their intended use).
management to make judgement, estimates and assumptions
1.2.3. Subsequent expenditure is capitalized only if it is probable that
that affect the reported amounts of revenue, expenses, assets,
the future economic benefits associated with the expenditure
liabilities and the accompanying disclosures along with
will flow to the Company over the period.
Contingent Liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require material 1.2.4. Spare parts which meet the definition of Property, plant and
adjustments to the carrying amount of assets or liabilities equipment are capitalized as Property, plant and equipment in
affected in future periods. The Company continually evaluates case the unit value of spare part is above the threshold limit. In
these estimates and assumptions based on the most recently other cases, the spare parts are inventoried on procurement
available information. and charged to Statement of Profit and Loss on consumption.
In particular, information about significant areas of estimates 1.2.5. An item of Property, plant and equipment and any significant
and judgements in applying accounting policies that have the part initially recognized separately as part of Property, plant
most significant areas of estimates and judgements in applying and equipment is de-recognized upon disposal; or when no
accounting policies that have the most significant effect on the future economic benefits are expected from its use or disposal.
financial statements are as below: Any gain or loss arising on de-recognition of the assets is
included in the Statement of Profit and Loss.
• Financial Instruments;
1.2.6. The residual value and useful lives of Property, plant and
• Estimates of useful lives and residual value of Property,
equipment are reviewed at each financial year end and
Plant and Equipment and Intangible Assets;
changes, if any, are accounted in line with the revisions to
• Valuation of Inventories; accounting estimates.

• Measurement of Defined Benefit Obligations and 1.2.7. The Company has elected to use exemption available under
actuarial assumptions; Ind AS 101 to continue with the carrying value for all its
Property, plant and equipment as recognized in the financial
• Measurement and likelihood of occurrence of
statements as at the date of transition to Ind AS, measured as
provisions and Contingencies
per previous GAAP and use that as its deemed cost as at the
• Evaluation of recoverability of Deferred tax assets; and date of transition (1st April, 2016).

• Measurement of Lease Liabilities and Right to Use 1.3. Depreciation


Asset.
Depreciation on Property, plant and equipment are provided on
Revisions to accounting estimates are recognized prospectively the Written down value, over the estimated useful lives of the
in the Statement of Profit and Loss in the period in which the assets (after retaining the estimated residual value of up-to
estimates are revised and in any future periods in which the 5%). These useful lives are determined are in line with the
estimates are revised and in any future periods affected. useful lives as prescribed in the Schedule III of the Act.

Estimation of uncertainties relating to the global health 1.3.1. Components of the main assets that are significant in value and
pandemic from COVID -19: have different useful lives as compared to the main asset are
depreciated over their estimated useful life. Useful life of such
The Company has considered the possible effects that may
components has been assessed based on historical experience
result from the pandemic relating to COVID-19 on the carrying
and internal technical assessment.
amounts of receivables, intangibles, investments and other
assets. In developing the assumptions relating to the possible 1.3.2. Depreciation on Spare parts specific to an item of Property,
future uncertainties in the economic conditions because of plant and equipment is based on life of the related Property,
this pandemic, the Company has used internal and external plant and equipment. In other cases, the spare parts are
sources of information. The Company has reviewed the depreciated over their estimated useful life based on the
assumptions used and based on current estimates expects the technical assessment.

Annual Report 2021-22 64


FINANCIAL STATEMENTS

1.3.3. Items of Property, plant and equipment costing not more than 1.6. Borrowing Costs
the threshold limit are depreciated at 100% in the year of
1.6.1. Borrowing cost consists of interest and other costs incurred in
acquisition.
connection with the borrowing of funds.
1.3.4. Depreciation is charged on additions/ deletions on pro-rata
1.6.2. Borrowing costs that are attributable to the acquisition or
basis from the date of addition/deletion.
construction of qualifying assets (i.e. an asset that necessarily
1.3.5. Trade Mark, Technical Design and Drawings and Patents has takes a substantial period of time to get ready for its intended
been amortized over the period of 10 years. use) are capitalized as a part of the cost of such assets. All other
borrowings costs are charged to the Statement of Profit and
1.4. Intangible Assets
Loss.
1.4.1. Intangible Assets are carried at cost net of accumulated
1.6.3. Investment income earned on the temporary investment of
amortization and accumulated impairment losses, if any.
funds of specific borrowings pending their expenditure on
Expenditure on internally generated intangibles, excluding
qualifying assets is deducted from the borrowing costs eligible
development costs, are not capitalized and is reflected in the
for capitalization.
Statement of Profit and Loss in the period in which the
expenditure is incurred. Development costs are capitalized if, 1.7. Non-current assets held for sale
and only if, technical and commercial feasibility of the project
1.7.1. Non-current assets classified as held for sale if their carrying
is demonstrated, future economic benefits are probable, the
amounts will be recovered through a sale transaction rather
Company has an intention and ability to complete and use or
than through continuing use. This condition is regarded as met
sell the asset and the costs can be measured reliably.
only when the sale is highly probable and the asset is available
1.4.2. Intangible assets with indefinite useful lives, such as right of for immediate sale in its present condition subject only to
way which is perpetual and absolute in nature, are not terms that are usual and customary for sale of such assets.
amortized, but are tested for impairment annually. The useful
1.7.2. Non-current assets classified as held for sale are measured at
lives are reviewed at each period to determine whether events
lower of carrying amount and fair value less costs to sell.
and circumstances continue to support an indefinite useful life
assessment for that asset. If not, the change in useful life from 1.7.3. Property, plant and equipment and intangible assets classified
indefinite to finite is made on a prospective basis. The as held for sale are not depreciated or amortized.
impairment losses on intangible assets with indefinite useful
1.8. Leases
life are recognized in the Statement of Profit and Loss.
The Company has adopted Ind AS 116 effective from 1 April
1.4.3. Expenditure incurred for creating/ acquiring other intangible
2019 using modified retrospective approach. For the purpose
assets above the threshold limit from which future economic
of preparation of Standalone Financial Information,
benefits will flow over a period of time, is amortized over the
management has evaluated the impact of change in
estimated useful life of the asset or ten years, whichever is
accounting policies required due to adoption of lnd AS 116 for
lower, on a straight line basis, from the time the intangible asset
year ended 31 March 2020.
starts providing the economic benefit. In other cases, the
expenditure is reflected in the Statement of Profit and Loss in 1.8.1. The Company assesses whether a contract contains a lease, at
the year in which the expenditure is incurred. The amortization inception of a contract. A contract is, or contains, a lease if the
period and the amortization method for an intangible asset contract conveys the right to control the use of an identified
with finite life are reviewed at each year end. The amortization asset for a period of time in exchange for consideration. To
expense on intangible assets with finite useful lives and assess whether a contract conveys the right to control the use
impairment losses in case there is an indication that the of an identified assets, the Company assesses whether: (i) the
intangible asset may be impaired, are recognized in the contact involves the use of an identified asset (ii) the Company
Statement of Profit and Loss. has substantially all of the economic benefits from use of the
asset through the period of the lease and (iii) the Company has
1.5. Investment Property
the right to direct the use of the asset.
1.5.1. Investment Property is property (land or a building – or part of
1.8.2. As a lessee, the Company recognizes a right-of-use asset and a
a building – or both) held either to earn rental income or for
lease liability at the lease commencement date. The right-of-
capital appreciation or both, held for currently undetermined
use asset is initially measured at cost, which comprises the
future use, but not for sale in the ordinary course of business,
initial amount of the lease liability adjusted for any lease
use in production or supply of goods or services or for
payments made at or before the commencement date, plus
administrative purposes. Investment Properties are stated at
any initial direct costs incurred and an estimate of costs to
cost net of accumulated depreciation and accumulated
dismantle and remove the underlying asset or to restore the
impairment losses, if any.
underlying asset or the site on which it is located, less any lease
1.5.2. Any gain or loss on disposal of investment property calculated incentives received.
as the difference between the net proceeds from disposal and
1.8.3. The right-of-use asset is subsequently depreciated using the
carrying amount of the Investment Property is recognized in
straight-line method from the commencement date to the
Statement of Profit and Loss.
earlier of the end of the useful life of the right-of-use asset or
1.5.3. The residual value and the useful life of an asset is reviewed at the end of the lease term. The estimated useful lives of right-of-
least at each financial year –end and, if expectations differ from use assets are determined on the same basis as those of
previous estimates, the change (s) is accounted with Ind AS property and equipment. In addition, the right-of use asset is
8-Accomting Policies, Changes in Accounting Estimates and periodically reduced by impairment losses, if any, and adjusted
Errors. & Ind AS 16- Property, Plant & Equipment. for certain re measurements of the lease liability.

65 Annual Report 2021-22


1.8.4. The lease liability is initially measured at the present value of 1.10.4. Obsolete, slow moving, surplus and defective stocks are
the lease payments that are not paid at the commencement identified at the time of physical verification of stocks and
date, discounted using the interest rate implicit in the lease or, valued at the net estimated realization cost.
if that rate cannot be readily determined, the Company’s
1.11. Revenue Recognition
incremental borrowing rate. Generally, the Company uses its
incremental borrowing rate as the discount rate. 1.11.1. Sale of GoodsRevenue from the sale of goods is recognized
when the significant risks and rewards of ownership of goods
1.8.5. Lease payments included in the measurement of the lease
have been passed to the buyer, the Company retains neither
liability comprise the fixed payments, including in substance
continuing managerial involvement to the degree usually
fixed payments.
associated with ownership nor effective control over the goods
1.8.6. The lease liability is measured at amortized cost using the sold, revenue and the associated costs can be estimated
effective interest method. The Company has used number of reliably and it is probable that economic benefits associated
practical expedients when applying Ind AS 116: - Short-term with the transaction will flow to the Company.
leases, leases of low-value assets and single discount rate.
Revenue from sale of goods is measured at fair value of the
1.8.7. The Company has elected not to recognize right-of-use assets consideration received or receivable (after including fair value
and lease liabilities for short-term leases that have a lease term allocations related to multiple deliverable and/or linked
of 12 months or less and leases of low-value assets. The arrangements), net of returns, taxes or duties collected on behalf
Company recognizes the lease payments associated with these of the government and applicable trade discounts or rebates.
leases as an expense on a straight line basis over the lease
Where the Company acts as an agent on behalf of a third party,
term. The Company applied a single discount rate to a portfolio
the associated income is recognized on net basis.
of leases of similar assets in similar economic environment
with a similar end date. 1.11.2. Sale of Services
1.8.8. The Company has Land Lease agreements with government Income from services rendered is recognized based on
authorities, during the year company has recognized lease agreements/ arrangements with the customers as the service
liability and Right to Use assets. is performed in proportion to the stage of completion of the
transaction at the reporting date and the amount of revenue
1.9. Impairment of Non-financial assets
can be measured reliably.
1.9.1. Non-financial assets other than inventories, deferred tax assets
1.11.3. Multiple Element Contracts
and non-current assets classified as held for sale are reviewed
at each Balance Sheet date to determine whether there is any For revenue arrangements having more than one deliverable,
indication of impairment. If any such indication exists, or when at the inception of the arrangement, the Company evaluates all
annual impairment testing for an asset is required, the deliverables in the arrangement to determine whether they
Company estimates the asset’s recoverable amount. The represent separately identifiable components of the following
recoverable amount is higher of the assets or Cash-Generating two conditions are met:
Units (CGUs) fair value less costs of disposal and its value in use.
• The deliverable has value to the customer on a
Recoverable amount is determined for an individual asset,
standalone basis and
unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. • There is evidence of the fair value of the item.
1.9.2. When the carrying amount of an asset or CGU exceeds its The total arrangement consideration is allocated to each
recoverable amount, the asset is considered impaired and is separate component based on its relative fair value.
written down to its recoverable amount.
1.11.4. Interest and Dividend Income
1.10. Inventories
Interest income is recognized using Effective Interest Rate (EIR)
1.10.1. Inventories are stated at cost or net realizable value, whichever method.
is lower. Cost of inventories comprises of expenditure incurred
Dividend is recognized when right to receive the payment is
in the normal course of business in bringing inventories to their
established, it is probable that the economic benefits
present location including appropriate overheads apportioned
associated with the dividend will flow to the entity and the
on a reasonable and consistent basis and are determined on
amount of dividend can be measured reliably.
the following basis:
1.11.5. Income from sale of scrap is accounted on billing basis and
• Raw materials, work in progress, stores, tools and other
customer takes title.
materials are determined on First in First out basis.
1.11.6. The benefit under the Merchandise Exports from India Scheme
• Finished goods are determined by considering the
(MEIS) as per the Export and Import Policy in respect of exports
standard conversion cost.
made under the said Schemes is accounted on a accrual basis and
1.10.2. Customs duties on raw materials/ finished goods lying in bonded is included under the head “Other Income” as ‘Export Incentives’.
warehouse are provided for at the applicable rates except where
1.12. Classification of Income/ Expense
liability to pay duty is transferred to the consignee.
1.12.1. Income/ Expenditure (net) in aggregate pertaining to prior year
1.10.3. Raw materials held for use in the production of finished goods
(s) above the threshold limit are corrected retrospectively in the
are not written down below cost except in cases where raw
first set of financial statements approved for issue after their
material prices have declined and it is estimated that the cost
discovery by restating the comparative amount and/ or restating
of the finished goods will exceed their net realizable value.
the opening Balance sheet for the earliest prior period presented.

Annual Report 2021-22 66


FINANCIAL STATEMENTS

1.12.2. Prepaid expenses are charged to revenue over the period. costs are recognized immediately in the Statement of Profit
and Loss. The interest cost is calculated by applying the
1.12.3. Deposits places with Government agencies/ local authorities
discount rate to the balance of the obligation. This cost is
which are perpetual in nature are charged to revenue in the
included in employee benefit expense in the Statement of
year of payment.
Profit and Loss. Re-measurements are recognized in the
1.13. Employee Benefits Statement of Profit and Loss.

1.13.1. Short-term employee benefits 1.13.4. Termination benefits

Short-term employee benefits are recognized as an expense at Expenditures on account of Voluntary Retirement Scheme are
an undiscounted premium in the Statement of Profit and Loss charged to Statement of Profit and Loss.
of the year ended in which related services are rendered.
1.14. Foreign Currency Transactions
1.13.2. Post-Employment Benefits
1.14.1. Monetary Items
Defined Contribution Plans:
Transactions in foreign currencies are initially recorded at their
Obligations for contributions to defined contribution plans respective exchange rates at the date the transaction first
such as pension are recognized as an expense in the Statement qualifies for recognition.
of Profit and Loss as the related service is provided. Prepaid
Monetary assets and liabilities denominated in foreign
contributions are recognized as an asset to the extent that cash
currencies are translated at exchange rates prevailing on the
fund in future payments is available.
reporting date.
Defined Benefit Plans:
Exchange differences arising on settlement or translation of
The Company’s net obligation in respect of defined benefit monetary items are recognized in the Statement of Profit and
plans such as gratuity, other post-employment benefits etc., is Loss either as profit or loss foreign currency transaction and
calculated separately for each plan by estimating the amount translation.
of future benefit that the employees have earned in the current
1.14.2. Non-monetary items
and prior periods, discounting that amount and deducting the
fair value of any plan assets. Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange
The calculation of defined benefit obligation is performed at
rates at the dates of the initial transactions.
each reporting period end by a qualified actuary using the
projected unit credit method. When the calculation results in a 1.14.3. Foreign Branch Operation’s Translations
potential asset for the Company, the recognized asset is limited
The activities of foreign branches are an integral part of
to the present value of the economic benefits available in the
operations of the Company and hence the foreign branch
form of any future refunds from the plan or reductions in future
financial statements are translated in accordance with
contributions to the plan.
accounting standard.
The current service cost of the defined benefit plan, recognized
Income and Expenditure items by applying to the foreign
in the Statement of Profit and Loss as part of employee benefit
currency amount, the exchange rate used is an average rate for
expense, reflects the increase in the defined benefit obligation
calendar month and used for all transaction occurring during
resulting from employee service in the current year, benefit
that calendar month.
changes, curtailments and settlements. Past service costs are
recognized immediately in the Statement of Profit and Loss. Property, plant and equipment are recorded at the exchange
The net interest is calculated by applying the discount rate to rate prevailing on the date of the transaction.
the net balance of the defined benefit obligation and the fair
Depreciation on property, plant and equipment in Indian
value of plan assets. This net interest is included in employee
rupees, which are reported using the exchange rate at the date
benefit expense in the Statement of Profit and Loss.
of transaction.
Re-measurements which comprise of actuarial gains and
Inventories related to stocks transfer from reporting enterprise
losses, the return on plan assets (excluding amounts included
are shown at the cost of reporting enterprises plus expenses
in the net interest on net defined benefit liability (asset)) and
incurred to bring the material at the shelf of foreign branch’s
the effect of the asset ceiling (if any, excluding amounts
warehouse and local bought out inventories are translated at
included in the net interest on the net defined benefit liability
the exchange rate prevailing at year end.
(asset)), are recognized in other comprehensive income.
Other current assets and liabilities are converted at the
1.13.3. Other long-term employee benefits
exchange rate prevailing at the year end.
Liability towards other long term employee benefits – leave
The exchange difference on translation of Foreign Branch
encashment are determined on actuarial valuation by qualified
financial statements are recognized in the Statement of Profit
actuary by using Projected Unit Credit Method.
and Loss.
The current service cost of other long terms employee benefits,
1.15. Investment in Subsidiaries, Joint Ventures and Associates
recognized in the Statement of Profit and Loss as part of
employee benefit expense, reflects the increase in the Investments in equity shares of Subsidiaries, Joint Ventures and
obligation resulting from employee service in the current year, Associates are recorded at cost and reviewed for impairment at
benefit changes, curtailments and settlements. Past service each reporting date.

67 Annual Report 2021-22


1.16. Government Grants and Loss on an appropriate basis over the life of the instrument
but no later than when the valuation is wholly supported by
1.16.1. Government grants are recognized where there is reasonable
observable market data or the transaction is closed out.
assurance that the grant will be received and all attached
conditions will be complied with. 1.18.5. While measuring the fair value of an asset or liability, the
Company uses observable market data as far as possible. Fair
1.16.2. When the grant relates to an expense item, it is recognized in
values are categorized into different levels in a fair value
Statement of Profit and Loss on a systematic basis over the
hierarchy based on the inputs used in the valuation technique
periods that the related costs, for which it is intended to
as follows:
compensate, are expensed.
• Level 1 – Quoted prices (unadjusted) in active markets
1.16.3. Government grants relating for Property, plant and equipment
for identical assets or liabilities.
are presented as deferred income and are credited to the
Statement of Profit and Loss on a systematic and rational basis • Level 2 – Inputs other than quoted prices included in
over the useful life of the asset. Level 1 that are observable for assets or liabilities,
either directly (i.e. as prices) or indirectly (i.e. derived
1.17. Provisions, Contingent Liabilities and Commitments
from prices)
1.17.1. Provisions are recognized when there is a present obligation
• Level 3 – inputs for the assets or liability that are not
(legal or constructive) as a result of a past event, it is probable
based on observable market data (unobservable
that an outflow of resources embodying economic benefits will
inputs)
be required to settle the obligation and a reliable estimate can
be made of the amount of the obligation. 1.18.6. When quoted prices in active market for an instrument are
available, the Company measures the fair value of the
1.17.2. The expenses relating to a provision is presented in the
instrument using that price. A market is regarded as active if
Statement of Profit and Loss net of reimbursements, if any.
transactions for the asset and liability take place with sufficient
1.17.3. If the effect of the time value of money is material, provisions frequency and volume to provide pricing information on an
are discounted using a current pre-tax rate that reflects, when ongoing basis.
appropriate, the risks specific to the liability. When discounting
1.18.7. If there is no quoted price in an active market for an instrument
is used, the increase in provision due to the passage of time is
is available, the Company measures the fair value of the
recognized as a finance cost.
instrument using that price. A market is regarded as active if
1.17.4. Contingent liabilities are possible obligations whose existence transactions for the asset and liability take place with sufficient
will only be confirmed by future events not wholly within the frequency and volume to provide pricing information on an
control of the Company, or present obligations where it is not ongoing basis.
probable that an outflow of resources will be required or the
1.18.8. The Company regularly reviews significant unobservable inputs
amount of the obligation cannot be measured with sufficient
and valuation adjustments. If the third party information, such
reliability.
as broker quotes or pricing services, is used to measure fair
1.17.5. Contingent liabilities are not recognized in the financial values, then the Company assesses the evidence obtained from
statements but are disclosed unless the possibility of an the third parties to support the conclusion that these valuations
outflow of economic resources is considered remote. meet the requirements of Ind AS, including the level in the fair
value hierarchy in which the valuations should be classified.
1.18. Fair Value Measurement
1.19. Financial Assets
1.18.1. The Company measures certain financial instruments at fair
value at each reporting date. 1.19.1. Initial Recognition and measurement

1.18.2. Certain accounting policies and disclosures require the Trade receivables and debt securities issued are initially
measurement of fair values, for both financial and non-financial recognized when they are originated. All other financial assets
assets and liabilities. are initially recognized at fair value when the Company
becomes a party to the contractually provisions of the
1.18.3. Fair value is the price that would be received to sell an asset or
instrument. All financial assets other than those measured
paid to transfer a liability in an orderly transaction between
subsequently at fair value through profit and loss, are
market participants at the measurement date in the principal
recognized initially at fair value plus transaction costs that are
or, in its absence, the most advantageous market to which the
attributable to the acquisition of the financial asset.
Company has access at that date. The fair value of the liability
also reflects its non-performance risk. 1.19.2. Subsequent measurement

1.18.4. The best estimate of the fair value of a financial instrument on Subsequent measurement is determined with reference to the
initial recognition is normally the transaction price – i.e. the fair classification of the respective financial assets. Based on the
value of the consideration given or received. If the Company business model for managing the financial assets and the
determines that the fair value on initial recognition differs from contractual cash flow characteristics of the financial assets, the
the transaction price and the fair value is evidenced neither by Company classifies financial assets as subsequently measured
quoted price in an active market for an identical asset or liability at amortized cost, fair value through other comprehensive
nor based on a valuation technique that uses only data from income or fair value through profit and loss
observable markets, then the financial instrument is initially
Debt instruments at amortized cost
measured at fair value, adjusted to defer the difference between
the fair value on initial recognition and the transaction price. A ‘debt instrument’ is measured at the amortized cost if both
Subsequently that difference is recognized in Statement of Profit the following conditions are met:

Annual Report 2021-22 68


FINANCIAL STATEMENTS

The asset held within business model whose objective is: 1.19.3. De-recognition
- To hold assets for collecting contractual cash flows, A financial asset (or, where applicable, a part of a financial asset or
and part of a group of similar financial assets) is primarily de-recognized
(i.e. removed from the Company’s Balance Sheet) when
- Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of The rights to receive cash flows from the asset have expired, or
principal and interest (SPPI) on the principal amount
The Company has transferred its rights to receive cash flows
outstanding.
from asset or has assumed an obligation to pay the received
After initial measurement, such financial assets are cash flows in full without material delay to a third party under a
subsequently measured at amortized cost using the effective ‘pass-through’ arrangement; and either:
interest rate (EIR) method. Amortized cost is calculated by
- The Company has transferred substantially all the risks
taking into account any discount or premium or fees or costs
and rewards of the asset, or
that are an integral part of the EIR. The EIR amortization is
included in finance income in the Statement of Profit and Loss. - The Company has neither transferred not retained
The losses arising from impairment are recognized in the substantially all the risks and rewards of the asset, but
Statement of Profit and Loss. has transferred control of the asset
Debt instruments at Fair value through Other On de-recognition, any gains or losses on all debt instruments
Comprehensive Income (FVOCI) (other than debt instruments measured at FVOCI) and equity
instruments (measured at FVTPL) are recognized in the
A ‘debt instrument’ is measured at the fair value through other
Statement of Profit and Loss. Gains and losses in respect of
comprehensive income if both the following conditions are
debt instruments are measured at FVOCI and that are
met:
accumulated in OCI are reclassified to profit or loss on de-
The asset is held within business model whose objective is recognition. Gains or losses on equity instruments measured at
achieved by both FVOCI that are recognized and accumulated in OCI are not
reclassified to profit or loss on de-recognition.
- Collecting contractual cash flows and selling financial assets
and 1.19.4. Impairment of Financial Assets
- Contractual terms of the asset give rise on specified dates to In accordance with Ind AS 109, the Company applies Expected
cash flows that are SPPI on the principal amount outstanding. Credit Loss (“ECL”) model for measurement and recognition of
impairment loss on the financial assets measured at amortized
After initial measurement, these assets are subsequently
cost and debt instruments measured at FVOCI.
measured at fair value. Interest income under effective interest
method, foreign exchange gains and losses and impairment losses Loss allowances on trade receivables are measured following
are recognized in the Statement of Profit and Loss. Other net gains the ‘simplified approach’ at an amount equal to the lifetime
and losses are recognized in other comprehensive income. ECL at each reporting date. In respect of other financial assets
such as debt securities and bank balances, the loss allowance is
Debt instruments at Fair value through Profit and Loss
measured at 12 month ECL only if there is no significant
(FVTPL)
deterioration in the credit risk since initial recognition of the
Fair Value through Profit or Loss is a residual category for debt asset or asset is determined to have a low credit risk at the
instruments. Any debt instrument, which does not meet the reporting date.
criteria for categorization at amortized cost or as FVOCI, is
1.20. Financial Liabilities
classified as FVTPL.
1.20.1. Initial recognition and measurement
After initial measurement, any fair value changes including any
interest income, foreign exchange gain and losses, impairment Financial liabilities are initially recognized when the Company
losses and other net gains and losses are recognized in the becomes a party to the contractual provisions of the
Statement of Profit and Loss. instrument.
Equity Investments Financial liability is initially measured at fair value less, for an
item not at fair value through profit and loss, transaction costs
All equity investments within the scope of Ind AS 109 are
that are directly attributable to its acquisition or issue.
measured at fair value. Such equity instruments which are held
for trading are classified as FVTPL. For all other such equity 1.20.2. Subsequent measurement
instruments, the Company decides to classify the same either
Subsequent measurement is determined with reference to the
as FVOCI or FVTPL. The Company makes such election on an
classification of the respective financial liabilities.
instrument-by-instrument basis. The classification is made on
initial recognition and is irrevocable. Financial liabilities at Fair value through Profit and Loss
(FVTPL)
For equity instruments classified as FVOCI, all fair value changes
on the instrument, excluding dividends, are recognized in Other A financial liability is classified as at Fair Value through Profit or
Comprehensive Income (OCI). Dividends on such equity Loss (FVTPL) if it is classified as held-for-trading or is designated
instruments are recognized in the Statement of Profit or Loss. as such on initial recognition. Financial liabilities at FVTPL are
measured at fair value and changes therein, including any
Equity instruments included within the FVTPL category are
interest expense, are recognized in Statement of Profit and
measured at fair value with all changes recognized in the
Loss.
Statement of Profit and Loss.

69 Annual Report 2021-22


Financial liabilities at Amortized Cost enforceable legal right to offset the recognized amounts and
there is an intention to settle on a net basis, or to realize the
After initial recognition, financial liabilities other than those
assets and settle the liabilities simultaneously.
which are classified as FVTPL are subsequently measured at
amortized cost using the effective interest rate (“EIR”) method. 1.25. Taxes on Income
Amortized cost is calculated by taking into account any 1.25.1. Current Tax
discount or premium and fees or costs that are an integral part
Income tax assets and liabilities are measured at the amount
of the EIR. The amortization done using the EIR method is
expected to be recovered from or paid to the taxation
included as finance costs in the Statement of Profit and Loss.
authorities. The tax rates and tax laws used to complete the
1.20.3. De-recognition amount are those that are enacted or substantively enacted, by
the end of the reporting period.
A financial liability is derecognized when the obligation under
the liability is discharged or cancelled or expires. When an Current tax items are recognized in correlation to the underlying
existing financial liability is replaced by another from the same transaction either in the Statement of Profit and Loss, other
lender on substantially different terms, or the terms of an comprehensive income or directly in equity.
existing liability are substantially modified, such an exchange
1.25.2. Deferred Tax
or modification is treated as the de-recognition of the original
liability and the recognition of a new liability. The difference in Deferred tax is provided using the Balance Sheet method on
the respective carrying amounts is recognized in the Statement temporary differences between the tax bases of assets and
of Profit and Loss. liabilities and their carrying amounts for financial reporting
purposes at the reporting date.
1.21. Financial Guarantees
Deferred tax liabilities are recognized for all taxable temporary
Financial guarantee contracts issued by the Company are
differences.
those contracts that will require a payment to be made to
reimburse the holder for a loss it incurs because the specified Deferred tax assets are recognized for all deductible temporary
debtor fails to make a payment when due in accordance with differences, the carry forward of unused tax credits and any
the terms of the debt instrument. Financial guarantee contracts unused tax losses. Deferred tax assets are recognized to the
are recognized initially as a liability at fair value, adjusted for extent that it is probable that taxable profit will be available
transaction costs that are directly attributable to the issuance against which the deductible temporary differences, and the
of the guarantee. Subsequently, the liability is measured at carry forward of unused tax credits and unused tax losses can
higher of the amount of loss allowance determined as per be utilized.
impairment requirements of Ind AS 109 and the fair value
The carrying amount of deferred tax assets is reviewed at each
initially recognized less cumulative amortization.
reporting date and reduced to the extent that it is no longer
1.22. Derivative financial instruments probable that sufficient taxable profit will be available to allow all
or part of the deferred tax asset to be utilized. Unrecognized
The Company uses derivative financial instruments to manage
deferred tax assets are re-assessed at each reporting date and are
the exposure on account of fluctuation in interest rate and
recognized to the extent that it has become probable that future
foreign exchange rates. Such derivative financial instruments
taxable profits will allow the deferred tax asset to be recovered.
are initially recognized at fair value on the date on which a
derivative contract is entered into and are subsequently Deferred tax assets and liabilities are measured at the tax rates
measured at fair value with the changes being recognized in that are expected to apply in the year when the asset is realized or
the Statement of Profit and Loss. Derivatives are carried as the liability is settled, based on tax rates and tax laws that have
financial assets when the fair value is positive and as financial been enacted or substantively enacted at the reporting date.
liabilities when the fair value is negative.
Deferred Tax items are recognized in correlation to the
1.23. Embedded Derivatives underlying transaction either in the Statement of Profit and
Loss, other comprehensive income or directly in equity.
If the hybrid contract contains a host that is a financial asset
within the scope of Ind AS 109, the classification requirements Deferred tax assets and deferred tax liabilities are offset if a
contained in Ind AS 109 are applied to the entire hybrid legally enforceable right exists to set off current tax assets
contract. Derivatives embedded in all other host contracts, against current tax liabilities and the deferred taxes relate to
including financial liabilities are accounted for as separate the same taxable entity and the same taxation authority.
derivatives and recorded at fair value if their economic
1.26. Earnings per Share
characteristics and risks are not closely related to those of the
host contracts and the host contracts are not held for trading or 1.26.1. Basic earnings per share are calculated by dividing the profit or
designated at fair value through profit and loss. These loss for the period attributable to equity shareholders (after
embedded derivatives are measured at fair value with changes deducting preference dividends, if any, and attributable taxes)
in fair value recognized in Statement of Profit and Loss, unless by the weighted average number of equity shares outstanding
designated as effective hedging instruments. Reassessment during the period.
only occurs if there is either a change in the terms of the
1.26.2. For the purpose of calculating diluted earnings per share, the
contract that significantly modifies the cash flows.
profit or loss for the period attributable to equity shareholders
1.24. Offsetting of financial instruments and weighted average number of shares outstanding during
the period is adjusted for the effect of all dilutive potential
Financial assets and financial liabilities are offset and the net
equity shares.
amount is reported in the Balance Sheet, if there is a currently

Annual Report 2021-22 70


FINANCIAL STATEMENTS

1.27. Classification of Assets and Liabilities as Current and Non- equivalents include cash at bank, cash, cheque on hand,
current Remittance in Transit and Bank balances other than cash and
cash equivalents include Earmarked balances with bank and
All assets and liabilities are classified as current or non-current
Term deposits.
as per the Company’s normal operating cycle (determined at
12 months) and other criteria set out in Schedule III of the Act. 1.29. Cash Flows
1.28. Cash and cash equivalents Cash flows are reported using the indirect method, where by net
profit before tax is adjusted for the effects of transactions of a non-
Cash and cash equivalents in the Balance Sheet include cash at
cash nature, any deferrals or accruals of past or future operating
bank, cash, cheque on hand, Remittance in Transit, Term Deposit,
cash receipts or payments and item of income or expenses
which are subject to an insignificant risk of changes in value.
associated with investing or financing cash flows. The cash flows
For the purpose of Statement of Cash Flows, Cash and cash from operating, investing and financing activities are segregated.

2. The Company has adopted the following materiality threshold limits in the preparation and presentation of financial statements
as given below:
Threshold Item Accounting Policy Ref Threshold limit value
(1) (2) (3)
Processing fees (including stamp duty) on Written off as expenses over the Loan More than 1% of the loan amount excluding
Loan amount sanction for calculation of Repayment Tenure by using the Effective taxes.
Effective Interest Rate (EIR) method. Interest Rate Method.
Capitalization of spare parts meeting the The Expenditure treated as revenue 1. All Assets in relation to Property, Plant &
definition of Property, Plant and expenditure and charged to current year Equipment below Rs. 5,000/-(Five
Equipment in each case Profit & loss Account. Thousand Only)
Capital Expenditure: - Capitalized In Case of Plant & Machinery
Revenue Expenditure: - Treated in 2. On Technical Decision Capital and Revenue
current Statement of Profit and Loss nature is bifurcated.
2.1) Assets is defined as Capital Expenditure,
when the expenditure enhances the
revenue generating capacity of the assets
so that useful life is extended.
2.2) Not Covered in point no 2.1 above, is treated
as Revenue expenditure.
Income / expenditure (net) pertaining to Below the Threshold limit value, it is Rs.50,000/-(Fifty Thousand Only) p.a.
prior year(s). treated as an expense in the Statement of
Profit and Loss in Current Year. ,
Fair valuation of Interest free Loan given Fair valuation is done for Interest free loan More than Rs.750000/- per employee.
to Employees. given to Employee above the threshold
limit defined in Column No (3).
Provision against Warranty Claim Provision is made against warranty on the Average of the actual expenses incurred in last
reporting date as per the threshold policy. three consecutive years.

3 PROPERTY, PLANT AND EQUIPMENT (Amount INR Lakhs)


Particulars DEEMED COST/GROSS BLOCK ACCUMULATED DEPRECIATION/AMORTIZATION NET BLOCK
Balance Additions/ Disposals/ Balance Balance Deprecia- Eliminated/ Balance Balance Balance
as at Reclassifi- Reclassifi- as at as at tion/ Addition on as at as at as at
31st cation cation 31st 31st Amortiza- disposals/ 31st 31st 31st
March, March, March, tion Reclassification March, March, March,
2021 2022 2021 expenses of assets 2022 2021 2022
Leasehold land 1,021.96 - (1,021.96) - 124.50 - (124.50) - 897.46 -
Factory Buildings 3,115.78 3.73 (51.00) 3,068.51 1,688.24 138.51 (35.00) 1,791.75 1,427.54 1,276.75
Other Buildings 87.60 3.62 - 91.22 21.29 3.28 - 24.57 66.31 66.66
Plant and 3,807.43 547.38 (27.98) 4,326.83 2,612.29 218.53 (24.78) 2,806.04 1,195.14 1,520.79
Machinery
Furniture and 296.58 17.66 (23.50) 290.74 251.25 13.26 (23.42) 241.09 45.34 49.66
Fixtures
Vehicles 542.85 171.74 (40.48) 674.11 396.37 54.16 (34.49) 416.04 146.48 258.07
Vechiles (Finance 24.61 - - 24.61 18.46 1.40 - 19.86 6.15 4.75
Lease)
Office Equip- 279.37 12.02 (8.92) 282.47 251.79 10.52 (8.34) 253.97 27.58 28.50
ment
Computers 348.60 26.75 (22.07) 353.28 305.18 27.01 (21.12) 311.07 43.42 42.20
Total 9,524.77 782.90 (1,195.91) 9,111.77 5,669.37 466.67 (271.65) 5,864.39 3,855.42 3,247.38

71 Annual Report 2021-22


4 CAPITAL WORK-IN-PROGRESS (CWIP) (Amount INR Lakhs)
Particulars Balance as at 31st Additions/ Capitalised/ Disposals/ Balance as at 31st
March, 2021 Reclassification Reclassification March, 2022
Capital work-in-progress 137.43 599.55 (4.83) 732.14
Total 137.43 599.55 (4.83) 732.14

CWIP aging schedule (Amount INR Lakhs)


Year Wise CWIP Details
Capital work in progress
Less Than 1 year 1 to 2 years 2 to 3 Years More than 3 Year Total
Project in Progress
Building under construction Greater Noida 495.13 - - - 495.13
Building under construction Noida 94.28 - - - 94.28
SAP Implementation 10.13 70.65 54.95 7.00 142.73
Total 599.54 70.65 54.95 7.00 732.14

Overdue Projects (Amount INR Lakhs)


To be completed in
Capital work in progress
Less Than 1 year 1 to 2 years 2 to 3 Years More than 3 Year Total
SAP Implementation 142.73 - - - 142.73
Total 142.73 - - - 142.73

5 (a) Right- of- Use Assets (Amount INR Lakhs)


Particulars DEEMED COST/GROSS BLOCK ACCUMULATED DEPRECIATION/AMORTIZATION NET BLOCK
Balance Additions/ Disposals/ Balance Balance Depreciation/ Eliminated/ Balance Balance Balance
as at Reclassifi- Reclassifi- as at as at Amortization Addition on as at as at as at
31st cation cation 31st 31st expenses disposals/ 31st 31st 31st
March, March, March, Reclassification March, March, March,
2021 2022 2021 of assets 2022 2021 2022
Right- of- Use - 3,203.66 - 3,203.66 - 70.37 211.05 281.42 - 2,922.24
Assets
Total - 3,203.66 - 3,203.66 - 70.37 211.05 281.42 - 2,922.24

5 (b) Lease liabilities


The Breakup of current and non current lease liabilities as at 31.03.2022 and 31.03.2021 is as follows:-
Particulars As at March 31 2022 As at March 31 2021
Current lease liabilities 66.23 -
Non-current lease liabilities 1,567.79 -
Total 1,634.02 -

The movement in lease liabilities during the years ended March 31, 2022 and March 31, 2021 is as follows:
Particulars As at March 31 2022 As at March 31 2021
Balance at the beginning - -
Additions 1,711.91 -
Additions through business combination - -
Finance cost accrued during the period 70.07 -
Deletions - -
Payment of lease liabilities (182.22) -
Adjustment through Retained Earnings 34.26 -
Balance at the end 1,634.02 -

6 OTHER INTANGIBLE ASSETS (Amount INR Lakhs)


Particulars DEEMED COST/GROSS BLOCK ACCUMULATED DEPRECIATION/AMORTIZATION NET BLOCK
Balance Additions Disposals Balance Balance Depreciation/ Eliminated Balance Balance Balance
as at as at as at Amortization on disposals as at as at as at
31st 31st 31st expenses of assets 31st 31st 31st
March, March, March, March, March, March,
2021 2022 2021 2022 2021 2022
Software 195.21 - - 195.21 182.68 3.19 - 185.87 12.54 9.35
Technical Design 10.95 23.05 - 34.00 10.26 0.48 - 10.74 0.69 23.26
and Drawings
Trademark and 11.82 0.73 - 12.55 8.66 0.94 - 9.60 3.16 2.95
Patents
Total 217.99 23.78 - 241.76 201.60 4.61 - 206.21 16.39 35.56
i) Trade Mark, Technical Design and Drawings and Patents has been amortized over the period of 10 years.

Annual Report 2021-22 72


FINANCIAL STATEMENTS

7 INVESTMENT IN SUBSIDARIES (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Unquoted
Investments measured at cost (fully paid) - Subsidaries
5,00,000 shares (31st March, 2021: 5,00,000) of EURO 1 each in Roto Pumpen GmbH, 393.28 393.28
Germany
5,25,000 shares (31st March, 2021: 5,25,000) of USD 1 each in Roto Pumps Americas 340.49 340.49
INC, USA
12,00,000 shares (31st March, 2021: 12,00,000) of SGD 1 each in Roto Overseas Pte 616.40 616.40
Ltd, Singapore
21,00,000 Share (31st March, 2021: NIL) of INR 10 each in Roto Energy Systems Ltd 210.00 -
TOTAL 1,560.17 1,350.17

8 INVENTORIES (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
a) Raw Materials 699.83 602.87
b) Work in Process 214.77 168.88
c) Finished Goods 2,127.85 1,403.51
d)Finished Goods-In Transit 2.60 336.27
e) Consumables Stores 18.34 15.18
f) Other Stores & Spares 34.16 17.27
g) Tools 47.70 44.96
h) Packing Material 7.48 3.75
i)Scrap and Wastage 0.10 0.62
TOTAL 3,152.83 2,593.31
(i) The mode of valuation has been stated in Significant Accounting Policies.
(ii) Inventories have been hypothecated as security for borrowings.

9 TRADE RECEIVABLES (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Unsecured unless stated otherwise (Considered Good)
Trade Receivables 4,521.85 3,096.61
TOTAL 4,521.85 3,096.61
i) The average credit period for collection is 109 days (Previous Year 98 Days).
ii) No trade receivable are due from directors either severally or jointly with any other person.
iii) Trade receivable includes Rs.2344.96/- lakhs (As at 31st March, 2021: Rs.1295.72/ lakhs-), receivable from subsidiaries incorporated
out side India.
iv) Information about credit risk and market risk of trade receivables refer - Note No 39
v) Movement in expected credit loss allowance (Amount INR Lakhs)
PARTICULARS As at March 31 2022 As at March 31 2021
Balance at the beginning of the year - (3.66)
Add: Provision made during the year - 3.66
Balance at the end of the year - -

Age wise Outstanding details (Amount INR Lakhs)


Particulars Less 6 month 1 to 2 2 to3 More Total
than 6 to 1 years years than 3
months year years
A. Undisputed trade receivables - considered good
a. Related Parties 2,016.84 328.12 - - - 2,344.96
b. Others 2,097.71 37.67 41.51 - - 2,176.89
B. Undisputed trade receivables - Which have significant increase in credit risk - - - - - -
C. Undisputed trade receivables - Credit Impaired - - - - - -
Less: Allowances for credit loss
D. Disputed trade receivables - considered good - - - - - -
E. Disputed trade receivables - Which have significant increase in credit risk - - - - - -
F. Disputed trade receivables - Credit Impaired - - - - - -
Total 4,114.54 365.79 41.51 - - 4,521.85

73 Annual Report 2021-22


10 CASH AND CASH EQUIVALENTS (Amount INR Lakhs)
PARTICULARS As at March 31 2022 As at March 31 2021
Cash and cash equivalents
a) Balance with banks 788.29 219.13
b) Cash in Hand 15.19 15.09
c) Remittance in Transit 34.20 309.02
d) Term Deposits 687.57 2,412.88
TOTAL 1,525.25 2,956.12

11 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS (Amount INR Lakhs)
PARTICULARS As at March 31 2022 As at March 31 2021
a) Earmarked Balances with Bank -Unclaimed dividend accounts 15.96 10.60
b) Term Deposit(Restricted)- Margin Money against guarantees and LC 553.66 295.89
c) Term Deposit with maturity of more than 3 months 369.43 -
TOTAL 939.05 306.49

12 LOANS (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Unsecured and considered good
Staff Loans 17.97 11.94
TOTAL 17.97 11.94

13(a) OTHER FINANCIAL ASSETS - NON CURRENT (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Long Term-Term Deposit -Margin Money against guarantees 50.00 -
TOTAL 50.00 -

13 (b) OTHER FINANCIAL ASSETS - CURRENT (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
a) Interest accrued on Bank deposits 24.29 34.78
b) Interest accured on Security Deposits 0.37 0.45
c) Derivative carried at fair value 8.14 21.32
d) Accured Export Benefit Entitlement 267.62 109.39
e) Security Deposits 64.97 75.60
TOTAL 365.39 241.54

14 OTHER CURRENT ASSETS (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
( Unsecured and considered good)
a) Capital Advances 412.65 345.94
b) Deposit with GST & Other Authorities 533.94 390.47
c) Advance Income Tax & Tax Deducted at Source 865.20 526.33
d) Prepaid Expenses 110.51 108.17
e) Other Receivables 76.24 52.52
TOTAL 1,998.54 1,423.43

15 EQUITY SHARE CAPITAL (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
AUTHORISED SHARE CAPITAL 1,000.00 1,000.00
5,00,00,000 (As at 31st March, 2021: 5,00,00,000,) Equity Shares of Rs 2 each
ISSUED & SUBSCRIBED SHARE CAPITAL 315.01 310.01
1,57,50,305 (As at 31st March, 2021: 1,55,00,305,) Equity Shares of Rs 2 each
PAID UP SHARE CAPITAL 314.08 309.08
1,57,03,805 (As at 31st March, 2021: 1,54,53,805) Equity Shares of Rs 2 each
TOTAL 314.08 309.08

Annual Report 2021-22 74


FINANCIAL STATEMENTS

15.1 DETAILS OF SHAREHOLDER HOLDING MORE THAN 5% SHARES


NAME OF SHAREHOLDER As at March 31 2022 As at March 31 2021
NUMBER OF SHARES % Held NUMBER OF SHARES % Held
HELD IN THE COMPANY HELD IN THE COMPANY
ANURAG GUPTA 12,10,335 7.71 10,85,335 7.02
ANURAG GUPTA-HUF 14,88,660 9.48 14,88,660 9.63
ARVIND VEER GUPTA 12,72,835 8.11 12,10,335 7.83
ASHA GUPTA 25,00,265 15.92 25,00,265 16.18
HARISH CHANDRA GUPTA 20,36,595 12.97 19,74,095 12.77
HARISH CHANDRA GUPTA-HUF 8,71,750 5.55 10,71,750 6.94
NEERA GUPTA 8,49,535 5.41 8,49,535 5.5

15.2 During the year ended 31st March 2022, 250000 equity shares are alloted to the person belonging to promoters/ promoter group on
conversion of warrants of face value of INR 2 fully paid and share preminum of INR 140.11 of each share.

15.3 Application Money on 9,300 Equity Shares @ Rs. 10/- per Share alongwith premium @ Rs. 45/- per share aggregating to Rs. 5,11,500/-
allotted on 11.11.1994 has not yet been dispatched and realised as the same was paid by an applicant through a forged stock invest which
has been dishonoured by the bankers. During the Financial year 2014-2015 the Face Value of Shares is divided into Rs 2/- per Share from
Rs 10/- per Share each.
Details of shares held by the promoters in the Company. March 31, 2022 March 31, 2021
Equity shares: Nos. % % Of Change Nos. % % Of Change
during the during the
year year
ASHA GUPTA 25,00,265 15.92 (0.26) 25,00,265 16.18 0.004
HARISH CHANDRA GUPTA 20,36,595 12.97 0.19 19,74,095 12.77 0.003
ANURAG GUPTA HUF 14,88,660 9.48 (0.15) 14,88,660 9.63 -
ARVIND GUPTA 12,72,835 8.11 0.27 12,10,335 7.83 -
ANURAG GUPTA 12,10,335 7.71 0.68 10,85,335 7.02 -
HARISH CHANDRA GUPTA HUF 8,71,750 5.55 (1.38) 10,71,750 6.94 0.004
NEERA GUPTA 8,49,535 5.41 (0.09) 8,49,535 5.50 0.01
RAJEETA GUPTA 2,35,155 1.50 0.62 1,35,155 0.87 -
ROLLY GUPTA 2,33,830 1.49 0.62 1,33,830 0.87 -
MANSI KANORIA 1,31,200 0.84 (0.01) 1,31,200 0.85 (0.18)
MADHU AGARWAL 1,03,600 0.66 (0.01) 1,03,600 0.67 -
SHALINI GUPTA 58,335 0.37 (0.01) 58,335 0.38 0.18
MANOJ AGARWAL 19,325 0.12 (0.00) 19,325 0.13 -
GOPIKA GUPTA 17,295 0.11 (0.00) 17,295 0.11 0.11
ARVIND VEER GUPTA (HUF) 14,760 0.09 (0.00) 14,760 0.10 0.10
RAJINDER KUMAR GUPTA 10,810 0.07 (0.00) 10,810 0.07 -
URMILA AGARWAL 8,500 0.05 0.04 2,000 0.01 -
GAESU SALUJA 200 0.001 (0.00) 200 0.001 0.001
As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders
regarding beneficial interest,

16 OTHER EQUITY (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
SECURITIES PREMIUM
Opening Balance 472.07 472.07
Add: Received During the year 350.28 822.35 - 472.07
GENERAL RESERVE:
Opening Balance 557.89 557.89
Add: Transferred during the year - 557.89 - 557.89
RETAINED EARNINGS
Opening Balance 9,917.54 8,185.14
Less: Adjustment for ROU Recognition (95.73) -
Less: Share issue Expenses (12.05)
Add: Profit for the year 2,624.67 1,941.74
Add :- Other Comprehensive Income
Remeasurement of Defined Benefit Plan ( Net of Taxes) (60.55) 7.01
12,373.89 10,133.90
Less:- Dividend paid/payable 54.09 12,319.80 216.36 9,917.54
TOTAL 13,700.04 10,947.50

75 Annual Report 2021-22


i) SECURITIES PREMIUM
Securities Premium represents premium received on equity shares issued, which can be utilised only in accordance with the provisions of
the companies Act,2013 (‘’the Act’’) for specified purposes.
ii) GENERAL RESERVE
The general reserve is created from time to time to transfer profits from retained earnings for appropriations purposes. As the general re-
serve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included
in the general reserve will not be reclassified subsequently to profit or loss.
iii) OTHER COMREHENSIVE INCOME
These are actuarial gains/ losses on employee benefit obligations.
iv) DIVIDEND
During the year financial year 2021-22, the Board of Directors has approved payment of Final dividend of Rs 0.35 per equity share of face
value Rs. 2 each. During the previous financial year, the Board of Directors has approved the payment of interim dividend of Rs 1.40 per
equity share of face value of Rs .2/- per share.
17 NON CURRENT LIABILITIES - BORROWINGS (Amount INR Lakhs)
PARTICULARS As at March 31 2022 As at March 31 2021
Secured
Term Loan from Others - 4.25
Un-Secured
Term Loan from Banks 32.57 50.06
TOTAL 32.57 54.31

17.1 Terms of Repayment:


a) Term Loans from others consists of vehicle loans repayable in 36 monthly equal installments.
b) Unsecured Loan facility is avalied in United Kingdom which consists of providing economic benefit to our business including , but not
limited to, working capital or investing in our business, first repayable will be made on the date 13 months from the draw down loan
dated 16.07.2020 after that in 59 months equal installments.
17.2 Security:
Term Loans from others consists of vehicle loans which are secured by hypothecation of Motor Vehicles purchased under the loan.

18 NON-CURRENT LIABILITIES PROVISIONS (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Provision for Employee Benefits
- Superannuation, Gratuity and Un-availed Leave 4.90 52.17
TOTAL 4.90 52.17

19 DEFERRED TAX ASSETS/LIABILTIES (DTA/DTL) (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Defered Tax Liability
Fair Valuation of Derivatives 2.05 5.37
TOTAL DTL 2.05 5.37
Deferred Tax Assets
Provision of Gratuity & Leave Encashment 38.00 20.98
Provision for Warranty 3.05 3.06
Right of use Assets 20.02
Carrying Value of Property, Plant & Equipment and Others 50.10 58.15
TOTAL DTA 111.17 82.19
NET DEFERRED LIABILITIES/(ASSETS) (109.12) (76.82)
i) Income Tax Recognised in Statement of Profit and Loss (Amount INR Lakhs)
Particulars For the year ended For the year ended
31st March 2022 31st March 2021
Current Tax Expenses(A)
Current Year 929.60 745.66
Short/(Excess) provision of earlier years 16.33 10.06
Deferred Tax expenses (B)
Origination and reversal of temporary differences (19.39) 16.38
Tax expense recognized in the income statement (A+B) 926.54 772.10

Annual Report 2021-22 76


FINANCIAL STATEMENTS

ii) Income tax recognised in other comprehensive income (Amount INR Lakhs)
Particulars For the year ended 31st March 2022 For the year ended 31st March 2021
Before Tax (expenses) Net of Before Tax (expenses) Net of
tax benefit Tax tax benefit Tax
Items that will not be reclassified to profit & loss
Remeasurement of the defined benefit plans (48.38) (12.18) (60.56) 5.61 1.41 7.02
TOTAL (48.38) (12.18) (60.56) 5.61 1.41 7.02

iii) Reconciliation of Effective Tax Rates (Amount INR Lakhs)


For the year ended For the year ended
Particulars 31st March 2022 31st March 2021
% Amount (Rs.) % Amount (Rs.)
Profit before Tax 3,551.21 2,715.25
Other Comprehensive Income (48.38) 5.60
Tax using the company’s domestic tax rate 25.17% 881.66 34.61% 684.84
Tax effect of
Non-deductible tax expenses 0.80% 28.55 2.61% 70.93
(Profit) Loss on sale/discard/impairment of fixed assets 0.00% - -0.05% (1.28)
Short/(Excess) provision of earlier years 0.46% 16.33 0.37% 10.06
Interest on Income Tax 0.00% - 0.28% 7.55
Effective Income Tax rate 26.09% 926.54 28.44% 772.10
iv) Movement of Deferred Tax (Assets) & Liabilities (Amount INR Lakhs)
Particulars Balance as on Recognised in Recognised in OCI Retained Balance as on
1st April 2021 P&L during during 2021-22 Earnings 31st March 2022
2021-22
Property, plant & equipment ( Includes (58.15) 8.05 - - (50.10)
Intangible Assets)
Employee benefit-Provision (20.98) (29.20) 12.18 - (38.00)
Provision for Warranty (3.06) 0.01 - - (3.05)
Right of use Assets - 5.06 - (25.08) (20.02)
Fair valuation of derivatives 5.37 (3.32) - - 2.05
Total (Assets)/Liabilities (Net) (76.82) (19.40) 12.18 (25.08) (109.12)

v) Unrecognised Deferred Tax (Assets)/Liabilities


There are no temporary differences on which Deferred Tax (Assets)/Liabilities have not been recognised for the year ended 31st March 2022.

20 CURRENT LIABILITIES - BORROWINGS (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
SECURED
From Banks 1,380.03 1,109.22
Current Maturities of long term borrowings 4.25 25.18
UNSECURED
Current Maturities of long term borrowings 10.50 -
Others - 4.46
TOTAL 1,394.78 1,138.86

20.1 Securites
DBS Bank and Bank of Baroda
a) Hypothecation on the stocks and book debts of the company on Pari Passu basis
b) Equitable Mortgage of Immovable Factory Building, located at Roto House , 13 NSEZ, Noida on Pari Passu basis.
c) Equitable Mortgage of Immovable Factory land and building located at B-14, Phase-II, Extension, Noida on Pari Passu basis.
d) Equitable Mortgage of Immovable Factory land and building located at B-15, Phase-II, Extension, Noida on Pari Passu basis.

As per terms of the bank, the company has submitted monthly stock statements which tallies with the books of Accounts. There is no
requirement of submission of Quarterly Information Statement(QIS).

21.1 TRADE PAYABLES (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Trade Payables to Micro and Small Enterprises (As per the Intimation Received) 218.00 199.83
Trade Payables to Others 1,230.05 1,015.37
TOTAL 1,448.05 1,215.20
Refer to Note no 39 for information about liquidity risk and market risk of trade payables.

77 Annual Report 2021-22


DUES TO MICRO AND SMALL ENTERPRISES (AS PER THE INTIMATION RECEIVED FROM SUPPLIERS)
The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act,2006 (MSMED Act).
The disclosure pursuant to said MSMED Act are as follows :
(Amount INR Lakhs)
PARTICULARS As at March 31 2022 As at March 31 2021
Principal amount due to suppliers and remaining unpaid as at year end 218.00 199.83
Interest due to suppliers and remaining unpaid as at year end - -
Principal amounts paid to suppliers, beyond the appointed day during the year - -
Interest paid , other than under Section 16 of MSMED Act, to suppliers, beyond the - -
appointed day during the year
Interest paid , under Section 16 of MSMED Act, to suppliers, beyond the appointed day - -
during the year
Interest due and payable towards suppliers, for payments already made - -
Further interest remaining due and payable for earlier years - -

21.2 Age wise Outstanding details


Less Than 1 1 to 2 years 2 to 3 Years More than 3 Total
Particulars
year Year
i.Due to MSME 218.00 - - - 218.00
ii.Due to Others 1,230.05 - - - 1,230.05
iii.Disputed dues to MSME - - - - -
iv.Disputed dues to Others - - - - -
Total 1,448.05 - - - 1,448.05
22 OTHER FINANCIAL LIABILITIES (Amount INR Lakhs)
PARTICULARS As at March 31 2022 As at March 31 2021
Unclaimed dividend 15.96 10.60
TOTAL 15.96 10.60

23 OTHER CURRENT LIABILITIES (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Sales Tax & GST Payable 237.88 170.65
Dividend Payable - 216.35
Other Payables 1,241.94 1,039.34
TOTAL 1,479.82 1,426.34

23.1 Other payable includes Rs.116.59 Lakhs for Capital liability (As at 31st March, 2021: Rs.6.73 Lakhs), and Rs.211.10 Lakhs on account of
advance from customers (As at 31st March , 2021 : Rs. 349.14 Lakhs) and balance on account of other expenses payable.

24 PROVISIONS (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Provision for Employee Benefits
- Superannuation, Gratuity and Un-availed Leave 59.15 74.05
Provision for Warranty 12.14 12.17
Provision for Doubtful Capital Advance 79.73 79.73
TOTAL 151.02 165.95

25 CURRENT TAX LIABILITIES (NET) (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Provision for Income tax 1,002.25 745.66
TOTAL 1,002.25 745.66

26 REVENUE FROM OPERATIONS (Amount INR Lakhs)


Particulars Year Ended 31st Year Ended 31st
March, 2022 March, 2021
Sale of Products
-Pumps 7,282.35 5,445.43
-Spares 7,730.94 15,013.29 6,068.45 11,513.88
-Sale of Services
-Services - Repair & Maintenance 16.71 7.85
-Services - Commissioning & Installation 0.24 16.95 1.08 8.93
Other Operating Revenue 129.67 49.34
GROSS REVENUE FROM OPERATIONS 15,159.91 11,572.15
In accordance with the Accounting Standard-18 Revenue Recognition and Schedule III of the Companies Act 2013, GST is not the part of
Revenue therefore the sales amount is net of GST.

Annual Report 2021-22 78


FINANCIAL STATEMENTS

26.1 PARTICULARS OF REVENUE FROM OPERATIONS (Amount INR Lakhs)


Particulars Year Ended 31st Year Ended 31st
March, 2022 March, 2021
DOMESTIC
Sale of Products
-Pumps 2,670.70 1,893.46
-Spares 2,307.03 4,977.73 1,816.23 3,709.69
Sales of Services
- Services- Repairs & Maintenance 8.01 5.49
- Services- Commissioning & Installation 0.24 8.25 1.08 6.57
Other Operating Revenue 129.67 49.34
5,115.65 3,765.60
EXPORT
Sales of Products
-Pumps 4,611.65 3,551.96
-Spares 5,423.91 10,035.56 4,252.23 7,804.19
Sales of Services
- Services- Repairs & Maintenance 8.70 2.36
- Services- Commissioning & Installation - 8.70 - 2.36
10,044.26 7,806.55
TOTAL 15,159.91 11,572.15

27 OTHER INCOME (Amount INR Lakhs)


PARTICULARS Year Ended 31st Year Ended 31st
March, 2022 March, 2021
Interest Income
- On Bank Deposits 110.10 61.63
- Others 0.93 111.03 0.69 62.32
Foreign Exchange Diff. - Foreign Operations & Others 85.92 77.04
Profit on Sale/Impairment of Fixed Assets 1.12 5.09
Allowance for doubtful trade receivables - 3.66
Gain on Valuation of Derivative - 35.01
Bad debts Written off Recovered 58.93 42.36
Export Benefit Entitlements 158.23 131.81
Misc. Credit Balances Written Off - 5.87
Miscellaneous Receipts 2.89 61.74
TOTAL 418.12 424.90

28 COST OF MATERIALS CONSUMED (Amount INR Lakhs)


PARTICULARS Year Ended 31st Year Ended 31st
March, 2022 March, 2021
i) RAW MATERIALS CONSUMED
Opening Stock 315.53 285.05
Add: Purchases & Expenses thereon 2,740.16 1,398.77
Less: Closing Stock 422.41 2,633.28 315.53 1,368.29
ii) BOUGHT OUT COMPONENTS CONSUMED
Opening Stock 287.35 396.28
Add: Purchases & Expenses thereon 2,679.13 2,052.51
Less: Closing Stock 277.42 2,689.06 287.35 2,161.44
iii) CONSUMABLE STORES AND SPARES
Opening Stock 15.18 23.88
Add: Purchases & Expenses thereon 203.71 110.57
Less: Closing Stock 18.34 200.55 15.18 119.27
TOTAL 5,522.89 3,649.00

28.1 PARTICULARS OF MATERIAL CONSUMED (Amount INR Lakhs)


Particulars Year Ended 31st Year Ended 31st
March, 2022 March, 2021
Mild Steel 127.62 67.57
Steel (SS & Alloy) 979.50 701.96
Iron & Metal Castings 578.29 226.77
Rubber & Chemicals 451.51 148.00
Pipes 309.06 120.57
Bought Out Components 2,689.07 2,161.45
Freight, Cartage, Clearing & Insurance 187.29 103.42
Consumables Store & Spares 200.55 119.26
TOTAL 5,522.89 3,649.00

79 Annual Report 2021-22


29 CHANGE IN INVENTORIES OF FINISHED GOODS & WORK IN PROGRESS (Amount INR Lakhs)
PARTICULARS Year Ended 31st Year Ended 31st
March, 2022 March, 2021
OPENING STOCK:
Finished Goods 1,739.79 1,930.29
Work in Progress 168.88 129.64
Scrap & Wastage 0.62 1,909.29 1.90 2,061.83
LESS: CLOSING STOCK:
Finished Goods 2,130.45 1,739.79
Work in Progress 214.77 168.88
Scrap & Wastage 0.11 2,345.33 0.62 1,909.29
Net Change in Inventories (436.04) 152.54

30 EMPLOYEE BENEFITS EXPENSE (Amount INR Lakhs)


PARTICULARS Year Ended 31st Year Ended 31st
March, 2022 March, 2021
Wages, Salary, Bonus Gratuity & Other Allowances 2,884.37 2,309.70
Contribution to Provident & Other Funds 189.09 165.63
Directors’ Remuneration 376.34 309.16
Workmen & Staff Welfare 114.77 74.79
TOTAL 3,564.57 2,859.28
i) Contribution to Provident and other funds includes contribution to Provident fund for directors Rs.22.50 Lakhs (As at 31st March, 2021:
Rs.26.47 Lakhs)

31 FINANCE COST (Amount INR Lakhs)


Year Ended 31st Year Ended 31st
PARTICULARS
March, 2022 March, 2021
INTEREST :
On Term Loans 1.33 5.23
On Others borrowings 74.59 20.96
On Lease Liabilities 70.07 -
TOTAL 146.00 26.19

32 DEPRECIATION & AMORTISATION EXPENSE (Amount INR Lakhs)


Year Ended 31st Year Ended 31st
PARTICULARS
March, 2022 March, 2021
Depreciation on Property, Plant & Equipment 466.67 548.27
Depreciation on Right of Use Assets 70.37 -
Amortisation of Intangible assets 4.61 14.12
TOTAL 541.65 562.39

33 OTHER EXPENSES (Amount INR Lakhs)


PARTICULARS As At 31st March, 2022 As At 31st March, 2021
Power & Fuel 188.64 122.04
Machining & Electroplating 226.98 117.07
Tools 84.70 54.12
Repairs :
Building 40.77 33.25
Plant & Machinery 90.76 66.78
Others 30.86 20.90
Insurance Charges 25.17 28.38
Travelling & Conveyance 214.22 110.96
Postage & Telephone 45.01 39.47
Professional & Consultancy 146.41 92.48
Vehicle Running & Maintenance 57.86 38.86
Rent 39.32 121.40
Rates & Taxes 31.90 16.48
Directors’ Sitting Fees 6.90 8.20
Payment to Auditors :
Audit Fee 4.50 4.50
Tax Audit & Transfer Pricing Audit Fee 2.00 2.00

Annual Report 2021-22 80


FINANCIAL STATEMENTS

Foreign Branch Audit Fee 8.49 8.54


Cost Audit Fee 1.00 0.80
Out of Pocket Expenses 1.04 1.00
Packing & Forwarding Expenses 768.20 538.26
Commission & Discount 7.82 -
Advertisement & Publicity 75.66 45.12
Bad Debts 28.39 111.73
Loss on fair valuation of derivative 13.17 -
CSR Expenditure 28.09 21.55
Testing & Inspection Expenses 17.51 20.00
Bank Charges & Commission 57.39 84.05
Guards & Security Expenses 53.17 44.98
EDP Expenses 106.16 87.95
Claim & Free Replacement 15.79 2.82
Printing & Stationery Expenses 26.11 19.14
Donations 0.22 10.77
Miscellaneous Expenses 243.54 158.80
TOTAL 2,687.75 2,032.40
34 EARNING PER SHARE Amount in INR Lakhs
Year ended 31st Year ended 31st
Particulars
March 2022 March 2021
Profit attributable to equity holders of the Company for basic and diluted 2,624.67 1,941.74
earnings per share
Number of Equity Shares 1,57,03,805 1,54,53,805
Face Value per Share 2 2
Weighted average number of shares at the end of the year for basic 1,54,97,641 1,54,53,805
earnings per share
Basic Earning per Shares 16.94 12.56

35 CONTINGENT LIABILITIES & COMMITMENTS


35.1 CONTINGENT LIABILITIES Amount in INR Lakhs
As at 31st, March As at 31st, March
Particulars
2022 2021
i) Disputed Sales Tax-Cases - 7.71
ii) Bank Guarantees/Letter of Credit 757.62 615.53
iii) Corporate Guarantees 112.05 42.13
iv) Labour Cases 61.08 68.94
v) Income tax cases 75.49 -
vi) DGFT/custom Authority against EPCG licences 270.18 -

35.2 COMMITMENTS
a) Capital Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for INR 2,139.08 Lakhs (As at 31st March
2021 : INR 2,121.86 Lakh)
b) Financial Guarantee
Term Deposits with Bank of India, Janpath Branch amounting to INR 287.35 lakhs (As at 31st March 2021 : INR 197.97 lakhs), Term Deposit
with Bank of Baroda, Janpath Branch, New Delhi amounting to INR 116.11 lakhs ( Previous year NA) and Term Deposit with DBS Bank India
Limited, Sector 63,Gautam Budh Nagar, Noida amounting to INR110.00 lakhs (As at 31st March 2021: INR 60.00 lakhs) are pledged with
respective Banks as Margin on Bank Guarantees, Letter of Credit and Foreign bills purchased by them.

36 The Company has not provided any loan , Security, Guarantee and made Investment which are eligible to be disclosed under Section 186
read with sub-section (4) of the companies Act 2013 , during the financial year 2021-22.

37 Capital Management
The Company’s policy is to maintain a strong capital base so as to ensure that the Company is able to continue as going concern to sustain
future development of the business. The capital structure of the Company is based on management’s judgement of its strategic and day-
to-day needs with a focus on total equity so as to maintain investor, creditors and market conditions. The policy is also adjusted based on
underlying macro-economic factors affecting business environment, financial and market conditions. Its guiding Principles are as below:-
i) Maintenance of financial strength to ensure the highest ratings;
ii) Ensure financial flexibility and diversify sources at financing;
iii) ‘Manage Company exposure in forex to mitigate risks to earnings;
iv) ‘Leverage optimally in order to maximum shareholders returns while maintaining strength and flexibility of the balance sheet.

81 Annual Report 2021-22


The Gearing Ratio at the end of the reporting period are as under : Amount in INR Lakhs
As at 31st, March As at 31st, March
Particulars
2022 2021
Borrowings 1,427.35 1,193.17
Less :- Cash & Bank balances 1,525.25 2,956.12
Net debts (97.90) (1,762.95)
Total Equity 14,014.12 11,256.58
Net Debts to Equity ratio -0.70% -15.66%

38 Financial Instruments
a) Fair value measurement hierarchy: Amount in INR Lakhs
As at 31st March, 2022
Particulars Carrying amount Level of input used in
Level 1 Level 2 Level 3
Financial assets
At FVTPL
Derivative contracts 8.14 - 8.14 -
At FVTOCI
At Amortized cost
Trade receivables 4,521.85 - - -
Cash and cash equivalents 1,525.25 - - -
Bank balances other than above 939.05 - - -
Other financial assets 375.22 - - -
Financial liabilities
At FVTPL
Derivative contracts - - - -
At Amortized cost
Borrowings 1,427.35 - - -
Trade payables 1,448.05 - - -
Lease Liabilities 1,634.02
Other Financial liabilities 15.96 - - -
Amount in INR Lakhs
As at 31st March, 2021
Particulars Carrying amount Level of input used in
Level 1 Level 2 Level 3
Financial assets
At FVTPL
Derivative contracts 21.32 - 21.32 -
At FVTOCI
- - - -
At Amortized cost
Trade receivables 3,096.61 - - -
Cash and cash equivalents 2,956.12 - - -
Bank balances other than above 306.49 - - -
Other financial assets 232.17 - - -

Financial liabilities
At FVTPL
Derivative contracts - -
At Amortized cost
Borrowings 1,193.17 - - -
Trade payables 1,215.20 - - -
Other Financial liabilities 10.60 - - -
FVTPL :- Fair Value through Profit & Loss A/c.
FVTOCI :- Fair Value through Other Comprehensive Income
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the
fair values are consistent with those used for the year ended 31st March, 2021.
The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as described
below:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Annual Report 2021-22 82


FINANCIAL STATEMENTS

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2. In the case of Derivative contracts, the
Company has valued the same using the forward exchange rate as at the reporting date.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
b) ‘Calculation of fair values:
i) Financial assets and liabilities measured at fair value as at Balance Sheet date:
The fair values of the derivative financial instruments has been determined using valuation techniques with market observable inputs. The
models incorporate various inputs including the credit quality of counter-parties and foreign exchange forward rates.
ii) Other financial assets and liabilities:-
-Cash and cash equivalents , trade receivables, other financial assets (except derivative financial instruments), trade payables, and other financial
liabilities (except derivative financial instruments) have fair values that approximate to their carrying amounts due to their short-term nature.
-Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows using
rates currently available for debt on similar terms, credit risk and remaining maturities.

39 Financial Risk Management


Risk Management framework and policies
The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The
Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework.
The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company’s risk
management policies. The Company’s risk management policies are established to identify and analyse the risks faced by the Company,
to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the
policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.
The Company has exposure to the following risks arising from financial instruments:
A) Credit Risk
B) Liquidity Risk
C) Market Risk
D) Interest Rate Risk
The table below explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the
financial statements:-
Risk Exposure arising from Measurement Management
Credit Risk Trade receivables, cash and cash equivalents and Credit ratings No of overdue days
derivative financial instruments Ageing Analysis
Liquidity Risk Other liabilities Maturity Analysis Maintaining sufficient cash/ cash
equivalents and marketable securities.
Market Risk - Highly probable forecast transactions and financial Sensitivity Analysis Forward foreign exchange contracts
Foreign Exchange assets and liabilities not denominated in INR

A) Credit Risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit
Risk arises from credit exposures from customers, cash and cash equivalent with banks, security deposits and loans.
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the
customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed through
credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants
credit terms in the normal course of business. The Company uses an allowance matrix to measure the expected credit losses of trade
receivables. The loss rates are computed using a ‘roll rate’ method based on the probability of receivable progressing through successive
stages of delinquency to write off.
The following table provides information about the exposure to credit risk and ECLs for trade receivables:
Ageing of Trade Receivables Amount in INR Lakhs
Particulars As at 31st March 2022 As at 31st March 2021
Not due 2,772.91 2,155.00
0-3 months 1,175.17 857.84
3-6 months 166.47 64.86
6-12 months 365.79 17.54
beyond 12 months 41.51 1.36
TOTAL 4,521.85 3,096.61
Expected Credit Loss - -
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
The derivative contracts are entered into with scheduled banks which have good credit ratings.

B) Liquidity Risk
Liquidity Risk is the risk that a company could encounter if it faces difficulty in meeting the obligations associated with financial liabilities
by delivering cash and other financial asset or the risk that the Company will face difficulty in raising financial resources required to fullfill
its commitments. The Company’s exposure to liquidity risk is very minimal as it has a prudent liquidity risk management process in place
which ensures maintaining adequate cash and marketable securities to pay its liabilities when they are due. To ensure continuity of
funding , the Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities , by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Exposure to Liquidity Risk Amount in INR Lakhs

83 Annual Report 2021-22


As at 31st March 2022
Particulars Carrying amount
Within one Year One to five years More than five years Total
Non-derivative financial liabilities
Borrowings 1,394.78 32.57 - 1,427.35
Trade Payables 1,448.05 - - 1,448.05
Lease Liabilities 66.23 756.40 811.39 1,634.02
Other financial liabilities 15.96 - - 15.96
Derivative financial liabilities
Foreign exchange forward contract - - - -
TOTAL 2,925.02 788.97 811.39 4,525.38
Amount in INR Lakhs
As at 31st March ,2021
Particulars Carrying amount
Within one Year One to five years More than five years Total
Non-derivative financial liabilities
Borrowings 1,138.86 50.97 3.34 1,193.17
Trade Payables 1,215.20 - - 1,215.20
Other financial liabilities 10.60 - - 10.60
Derivative financial liabilities
Foreign exchange forward contract - - - -
TOTAL 2,364.66 50.97 3.34 2,418.97

C) Market Risk
The Company operates internationally and a major portion of the business is transacted in several currencies. Consequently the company
is exposed to foreign exchange risk through its sales and services in the US and elsewhere, and purchases from the overseas suppliers in
various foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward contract to mitigate the
risk of changes in exchange rates on foreign currency exposure. The exchange rate between rupee and foreign currency has changed
substantially in recent years and may fluctuate substantially in future. Consequently ,the results of the Company’s operation are adversely
affected as the rupee appreciates/ depreciates against these currencies.
The Company exposure to foreign currency risk in respect of major currencies is given below:
Amount in INR Lakhs
Particulars As at 31st March 2022 As at 31st March 2021
Trade Payables
USD - 8.64
EURO 47.73 -
Trade Receivables
USD 1,238.56 820.97
EURO 1,456.34 649.55
Other Assets (Net)
GBP 1,689.54 1,815.62
AUD 1,188.88 1,131.06
USD 0.97 5.02
EURO 0.85 0.87
AED 2.01 -
Other Current Assets
USD 0.41 -
GBP - 1.57
EURO 100.48 1.24
Other Current Liabilities
USD 55.19 171.06
EURO - 148.36
Net Exposure
USD 1,184.75 646.29
EURO 1,509.94 503.30
GBP 1,689.54 1,816.19
AED 2.01
AUD 1,188.88 1,131.06
Foreign Currency sensitivity

Annual Report 2021-22 84


FINANCIAL STATEMENTS

The sensitivity of profit or loss to changes in the exchange rate arises mainly from foreign currency denominated financial instruments.
The sensitivity to variations in respect of major currencies is given below. This analysis assumes that all other variables remain constant.
Particulars As at 31st March 2022 As at 31st March 2021
USD - Increase by 5% 59.24 32.31
USD - Decrease by 5% (59.24) (32.31)
EURO - Increase by 5% 75.50 25.17
EURO - Decrease by 5% (75.50) (25.17)
GBP - Increase by 5% 84.48 90.86
GBP - Decrease by 5% (84.48) (90.86)
AED - Increase by 5% 0.10 -
AED - Decrease by 5% (0.10) -
AUD - Increase by 5% 59.44 56.55
AUD - Decrease by 5% (59.44) (56.55)

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage
its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day
and one year. The above sensitivity does not include the impact of foreign currency forward contracts which largely mitigate the risk.
Forward Foreign Exchange Contracts
The Company has entered into short term Forward Exchange Contracts, being derivative instruments for hedge purposes and not intended
for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of
certain receivables. For the fair Value (Marked to Market) of foreign currency derivative contracts outstanding refer to Note No. 13.

D) Interest Rate Risk


Interest Rate risk can be the cash flow interest rate risk. Cash flow interest rate risk is the risk that the future cash flows of floating interest
bearing instruments will fluctuate because of fluctuations in market interest rates.

40 RELATED PARTY DISCLOSURE


40.1 Remuneration paid to Key Managerial Personnel Amount in INR Lakhs
Name Designation Nature of Transaction-Gross Salary
Year ended 31st March 2022 Year ended 31st March 2021
Mr. Harish Chandra Gupta Chairman & Managing Director 164.76 132.87
Mr. Anurag Gupta Jt.Managing Director 106.65 88.83
Mr. Arvind Veer Gupta Dy.Managing Director 104.93 87.45
Mr Pardeep Jain Chief Financial Officer 27.49 24.98
Mr.Ashwani Kumar Verma Company Secretary 21.04 18.90
As the provision for the defined benefits obligations such as Gratuity & Leave Encashment are provided on an actuarial valuation basis for
the Employees of the Company in India, the amount pertaining to Key Managerial Personnel is not ascertainable and therefore not
included in the above remuneration. Payments made towards Leave Encashment as per policy of the Company are included in the
remuneration as and when paid. No such payment is made during the current financial year.
Shares issues to Key Managerial Personnel
Name Designation Details Year ended 31st March 2022 Year ended 31st
Share Capital Share Premium Total March 2021
Mr. Harish Chairman & 62500 Equity Shares of face value 1.25 87.57 88.82 -
Chandra Gupta Managing Director of ` 2/- per share issued at a
premium ` 140.11 per share
Mr. Anurag Jt.Managing 125000 Equity Shares of face value 2.50 175.14 177.64 -
Gupta Director of ` 2/- per share issued at a
premium ` 140.11 per share
Mr. Arvind Veer Dy.Managing 62500 Equity Shares of face value 1.25 87.57 88.82 -
Gupta Director of ` 2/- per share issued at a
premium ` 140.11 per share
Loans form Directors
Name Designation Loan Taken Loan Repay Outstanding as on 31.03.2022
Mr. Harish Chandra Gupta Chairman & Managing Director 22.25 22.25 -
Mr. Anurag Gupta Jt.Managing Director 44.50 44.50 -
Mr. Arvind Veer Gupta Dy.Managing Director 22.25 22.25 -

40.2 Sitting Fees Paid to Non-Executive Directors Amount in INR Lakhs


Name Designation Year ended 31st March 2022 Year ended 31st March 2021
Dr. Ramesh Chandra Vaish Independent Director 1.40 1.60
Mr. Anand Bordia Independent Director 1.50 1.80
Mrs.Asha Gupta Non-Executive Director 1.30 1.70
Mr. Basant Seth Independent Director 1.50 1.80
Mr. Akhil Joshi Independent Director 1.20 1.30

85 Annual Report 2021-22


40.3 Transactions with other related parties Amount in INR Lakhs
Particulars Relationship Nature of Year ended Year ended
Transactions 31st March 2022 31st March 2021
1. Revenue from Operation
Roto Pumps North America Inc Wholly Owned Subsidiary Sales 1,059.31 502.88
Roto Pumps Africa (Pty) Ltd Wholly Owned Subsidiary Sales 239.36 93.36
Roto Pumpen GmbH. Wholly Owned Subsidiary Sales 1,409.72 872.47
Roto Pumps (Malaysia) SDN.BHD Wholly Owned Subsidiary Sales 589.53 260.55
2. Purchase of Materials
Roto Pumps North America Inc Wholly Owned Subsidiary Purchase Materials - 4.34
Roto Pumpen GmbH. Wholly Owned Subsidiary Purchase Materials - 3.84
3. Investment
Roto Energy Systems Limited Wholly Owned Subsidiary Purchase of Investment 210.00 -
Roto Pumpen GmbH Wholly Owned Subsidiary Purchase of Investment - 130.77

During current year, total no. of shares issued by Roto Energy Systems Limited is 2100000 Shares of INR 10 each, which is 100% held by
Roto Pumps Limited.
During previous year, total no. of issued Shares of Roto Pumps Africa (Pty) Ltd is 2000100 Shares of Rand 1 each out which 2000000 shares
is with Roto Oveseas Pte Ltd and 100 shares is with Mr.Abdool Hamid Muhammed.
40.4 Balances Outstanding’s with related party Amount in INR Lakhs
Nature of outstanding balances As at 31st March 2022 As at 31st March 2021
Investment Subsidiary ( Refer Note No -7) 1,560.17 1,350.17
Trade Receivables Subsidiaries
Roto Pumps North America Inc 424.99 287.31
Roto Pumps Africa (Pty) Ltd 127.97 109.62
Roto Pumpen GmbH. 1,450.02 683.49
Roto Pumps (Malaysia) SDN.BHD 341.97 215.30
Trade Payables Subsidiaries - -

41 EMPLOYEES BENEFIT
a) Defined Contribution Plan
Contribution to Defined Contribution Plan, recognised are charged off for the year are as under: Amount in INR Lakhs
Particulars Year ended 31st Year ended 31st
March 2022 March 2021
Employer’s Contribution to Provident fund 99.87 98.01
Employer’s Contribution to Superannuation/NIC at foreign branches 77.83 58.38

b) Defined Benefit Plan


The present value of the defined benefit plan and related current service cost (Other than Foreign branches) were measured using the
Projected unit credit method, with actuarial valuation being carried out at each Balance Sheet date.
Investment Risk The Present Value of the defined benefit plan liability is calculated using a discount rate determined by reference to
government bond yields. If the return on plan asset is below this rate, it will create a plan deficit.
Interest Risk A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase
in the return on the plan’s debt investments.
Longevity Risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality
of plan participants during the employment.
Salary Escalation The Gratuity and Leave Encashment benefits, being based on last drawn salary, will be substantially effected in case
Risk of increase in future salaries being more than assumed.
Sensitivity Analysis :
Significant actuarial assumption for the determination of the defined benefit obligation are discount rate and expected salary increase
rate. Effect of change in mortality rate is negligible .The Sensitivity analysis presented below may not be representative of the actual
change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of
the assumptions may be correlated. The results of sensitivity analysis are given below :
Amount in INR Lakhs
As at 31st March 2022
Particulars Gratuity Leave Encashment
Amount % Amount %
Defined Benefit Obligation (Base) 340.01 100.87
Liability with 1% increase in Discount Rate 318.14 -6.43% 93.44 -7.36%
Liability with 1% decrease in Discount Rate 364.64 7.24% 109.37 8.43%
Liability with 1% increase in Salary Growth 364.07 7.08% 109.41 8.47%
Liability with 1% decrease in Salary Growth 318.32 -6.38% 93.28 -7.52%
Liability with 1% increase in Withdrawal Rate 341.59 0.47% 101.68 0.81%
Liability with 1% decrease in Withdrawal Rate 338.21 -0.53% 99.95 -0.90%

Annual Report 2021-22 86


FINANCIAL STATEMENTS

In respect of Employees in India Amount in INR Lakhs


Gratuity (Funded) Leave Encashment (Funded)
Particulars As at 31st As at 31st As at 31st As at 31st
March 2022 March 2021 March 2022 March 2021
The principle assumptions used in actuarial valuation
-Discount rate 7.25% 7.00% 7.25% 7.00%
-Expected rate on return of assets ( per annum) 7.25% 7.00% 7.25% 7.00%
-Expected rate of future salary increase 5.75% 5.75% 5.75% 5.75%
-Withdrawal Rate (per annum) 5.00% 5.00% 5.00% 5.00%
Change in Present value of Obligation
-Present value of obligation as at the beginning of the year 284.68 307.71 108.99 98.64
-Interest Costs 20.64 21.54 7.90 6.90
-Current Service Cost 24.85 23.23 15.67 16.03
-Past Service Cost( vested benefit) - -
-Benefits Paid (10.25) (45.26) (58.31) (26.62)
-Actuarial (Gain) / Loss on obligations 20.09 (22.54) 26.60 14.04
-Unpaid Liability - - - -
-Present value of obligation as at end of the year 340.01 284.68 100.87 108.99
Change in fair value of Plan Assets
Fair Value of Plan Assets at the beginning of the period 254.40 268.72 96.39 87.64
Expected Return on Plan Assets 18.44 18.81 6.99 6.13
Contributions 76.56 14.55 38.00 11.00
Benefit Paid (10.25) (45.26) (5.88) (7.91)
Actuarial Gain/(Loss) on Plan Assets (1.37) (2.42) (0.32) (0.47)
Fair Value of Plan Assets at the end of the period 337.78 254.40 135.19 96.39
Actual Return on Plan Assets
Expected Return on Plan Assets 18.44 18.81 6.99 6.13
Actuarial Gains/(Losses) on Plan Assets (1.37) (2.42) (0.32) (0.47)
Actual Return on Plan Assets 17.07 16.39 6.67 5.66
Liability Recognised in balance Sheet
-Present value of obligation as at end of the year (340.01) (284.68) (100.87) (108.99)
-Fair value of plan assets as at the end of the year 337.78 254.40 135.19 96.39
-Unfunded status - - - -
-Unrecognised Actuarial (Gain)/Loss - - - -
Net Assets/ (Liability) recognised in Balance Sheet (2.22) (30.28) 34.32 (12.60)
Expenses recognised in Profit and Loss Account
-Current Service Cost 24.85 23.23 15.67 16.03
-Interest Costs 20.64 21.54 7.90 6.90
-Expected Return on Plan assets (18.44) (18.81) (6.99) (6.13)
-Past Service Cost( vested benefit) Recognised - - - -
-Net Actuarial (Gain)/ Loss recognised during the year 21.46 (20.12) 26.92 14.52
Total Expenses recognised in Profit and Loss a/c 48.50 5.84 43.51 31.32

42 CSR EXPENDITURE
a) Amount spent/unspent during the year Amount in INR Lakhs
Particulars Year ended 31st March 2022 Year ended 31st March 2021
Spent Un-spent Total Spent Un-spent Total
CSR Expenditure
28.02 0.07 28.09 8.00 13.55 21.55
b) An amount of INR 11,02,000/- for the financial year 2017-18 committed towards a CSR project to Round Table India Trust is yet to be paid.
c) Out of unspent amount of INR 13,38,000/- for the financial year 2019-20, INR 1100000/- has been paid to the Prime Minister’s Citizen
Assistance and Relief and balance INR 2,38,000/- is committed towards a CSR project to Round Table India Trust is yet to be paid.
d) Unspent amount of INR 6,502/- for the financial year 2021-22 is yet to be paid.
43 RATIO ANALYSIS AND ITS ELEMENTS (Amounts in INR Lakhs, unless otherwise stated)
Particulars March 31,2022 March 31,2021
1 Current Ratios Ratios Ratios
(Current Assets / Current Liabilities) 2.25 2.26
Current Assets 12,521 10,629
Current Liabilties 5,558 4,703
2 Debt- Equity Ratio

87 Annual Report 2021-22


[(Long term borrowing including current maturities + short term borrowing) / Share 0.10 0.11
holder’s equity]
Long Term Borrowings 32.57 54.31
Short Term Borrowings 1,394.78 1,138.86
Share holder’s equity 14,014.12 11,256.58
3 Debt Service Coverage ratio
[(Earnings before interest, depreciation, tax and exceptional items) / (Interest expense 45.20 64.30
on short term and long term borrowings + scheduled principal repayment of long term
borrowing during the year)]
Profit before Tax 3,551.21 2,715.26
Depreciation (Except Depreciation in ROU) 471.27 562.39
Interest expense on short term and long term borrowings 75.93 26.20
Scheduled principal repayment of long term borrowing during the year 14.75 25.18
*Reason: There is signifact change/impact due to increase in utilisation of working capital limit during the year
4 Return on Equity ratio
(Net Profits after taxes / Average Shareholder’s Equity) 0.21 0.19
Profit after tax 2,625 1,942
Equity 314 309
Other Equity 13,700 10,948
Opening Shareholder’s Equity) 11,257 9,215
Average Shareholder’s Equity 12,635 10,390
5 Inventory Turnover ratio
(Net Sales / Average inventories ) 3.94 3.87
Net Sales of Goods 15,013 11,514
Average Inventories 3,809 2,978
6 Trade Receivable Turnover Ratio
(Revenue from contract with customers / Average trade receivables) 3.98 3.95
Net Sales of Goods and Services 15,160 11,572
Average trade receivables 3,809 2,929
7 Trade Payable Turnover Ratio
(Net Credit Purchase / Average trade payable ) 4.22 3.22
Net Credit Purchases 5,623 3,562
Average Trade Payable 1,332 1,107
8 Net Capital Turnover Ratio
(Revenue from contract with customers / Average working capital) 0.54 0.45
Net Sales of Goods and Services 15,160 11,572
Opening Working Capital 5,927 3,946
Closing Working Capital 6,963 5,927
9 Net Profit ratio
(Profit / (loss) for the period / Revenue from operations) 0.17 0.17
Net Profit after Tax 2,564 1,949
Net Sales of Goods and Services 15,160 11,572
10 Return on Capital Employed
(Earnings before interest and taxes / Average capital employed) 0.26 0.23
Profit Before Tax 3,551 2,715
Interest on Loan 76 26
Opening Capital Employed 12,450 11,126
Closing Capital Employed 15,441 12,450
Average Capital Employed 13,946 11,788
11 Return on Investment
Net Income / Cost of Investment N/A N/A

44.1 EARNINGS IN FOREIGN CURRENCY Amount in INR Lakhs


Particulars Year ended 31st March 2022 Year ended 31st March 2021
Bill Value FOB Value Bill Value FOB Value
Export of Goods
Pumps 4,611.65 4,568.88 3,551.96 3,532.09
Spares 5,423.91 5,316.10 4,252.23 4,182.06
Others
Service Charges 8.70 8.70 2.36 2.35
Interest Income - - - -
TOTAL 10,044.26 9,893.67 7,806.55 7,716.50
Note : Export of goods includes sales at Foreign Branches INR 5,546.02 Lakhs (Previous Year INR 4,944.01 Lakhs)
Service Charges includes charges at Foreign Branches INR 8.70 Lakhs (Previous Year INR 1.26 Lakhs)

Annual Report 2021-22 88


FINANCIAL STATEMENTS

44.2 EXPENDITURE IN FOREIGN CURRENCY Amount in INR Lakhs


Particulars Year ended 31st Year ended 31st
March 2022 March 2021
Travelling Expenses 40.02 159.19
Employee Benefit Expenses 896.08 846.54
Expenses at Foreign Branch 1,280.66 1,272.51
Professional & Consultancy 13.21 14.78
Other Expenses 14.29 4.51
TOTAL 2,244.26 2,297.53
Note : Expenses at Foreign Branch includes Capital goods (net of sales) installed and used at Foreign Branch INR 2.00 Lakhs (Previous Year
INR 4.65 Lakhs) and Consumption of Materials & Consumables of INR897.52 Lakhs ( Previous Year INR 810.45 Lakhs)

45 Remittance in foreign currency during the year towards interim Dividend and Final Dividend for 2020-21 to Ms. Debra Pauly, U.K. is INR 4.55
Lakhs and INR1.14 Lakhs respectively on 382000 Equity Shares (Previous Year INR 1.15 Lakhs).

46.1 VALUE OF IMPORTS (CALCULATED ON CIF BASIS) Amount in INR Lakhs


Particulars Year ended 31st Year ended 31st
March 2022 March 2021
Materials 512.53 130.59
Capital Goods - -
TOTAL 512.53 130.39

46.2 CONSUMPTION OF INDIGENOUS/IMPORTED MATERIALS


a) Raw Materials and Components Amount in INR Lakhs
Year ended 31st March 2022 Year ended 31st March 2021
Particulars
Amount % Amount %
Indigenous 4,305.07 80.89% 2,529 71.65%
Imported 1,017.27 19.11% 1,001 28.35%

TOTAL 5,322.34 100% 3,530 100%

b) Consumable Stores Amount in INR Lakhs


Year ended 31st March 2022 Year ended 31st March 2021
Particulars
Amount % Amount %
Indigenous 196.11 97.78% 112.31 94.17%
Imported 4.44 2.22% 6.95 5.83%
TOTAL 200.56 100% 119.26 100%
Note: Imported Consumables includes INR 6.95 Lakhs ( Previous Year INR 6.79 Lakhs) consumption at foreign branches.

47 The Company’s operations predominantly comprises of only one segment- Pumps & Spares, therefore operationally segment reporting
does not apply.

48 During the financial year, the Board of Directors of the Company at its meeting held on 26th May 2022 had approved payment of an Final
dividend at rate of INR2.85 per equity share of face value INR 2/- each on 15703805 equity shares.

49 The Company has not entered into any transactions with the Companies struck off under section 248 of the Companies Act 2013 or
Section 560 of Companies Act 1956.

50 Previous Year’s figures have been re-grouped/re-arranged wherever necessary to render them comparable with the current year’s figures
and better disclosure requirements.

51 Figures have been rounded off to the INR Lakhs. Amounts appearing as zero “0” in financial are below the rounding off norm adopted by
the Company

For and on behalf of the Board


As per our report of even date.
For R.N Marwah & Co LLP (HARISH CHANDRA GUPTA) (ANURAG GUPTA)
Chartered Accountants Chairman & Managing Director Jt. Manging Director
(Registration No.0001211N/N500019) (DIN : 00334405) (DIN : 00334160)

(Manoj Gupta) (PRADEEP JAIN) (ASHWANI K VERMA)


PARTNER Chief Financial Officer Company Secretary
Membership No.096776 (PAN : AAEPJ6827A) (M.No : F9296)

PLACE: Noida
DATE : 26.05.2022

89 Annual Report 2021-22


INDEPENDENT AUDITOR’S REPORT
To the Members of Roto Pumps Limited knowledge obtained in the audit or otherwise appears to be
Report on the Audit of the Consolidated Ind AS Financial materially misstated. If, based on the work we have performed, we
Statements conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to
Opinion report in this regard.
We have audited the accompanying consolidated Ind AS financial Responsibilities of Management for the Consolidated Ind AS
statements of (hereinafter referred to as “the Holding Company”), Financial Statements
its subsidiaries (the Holding Company and its subsidiaries together
referred to as “the Group”) comprising of the consolidated Balance The Holding Company’s Board of Directors is responsible for the
sheet as at March 31 2022, the consolidated Statement of Profit and preparation and presentation of these consolidated Ind AS financial
Loss, including other comprehensive income, the consolidated statements in terms of the requirements of the Act that give a true
Cash Flow Statement and the consolidated Statement of Changes and fair view of the consolidated financial position, consolidated
in 2022 Equity for the year then ended, and notes to the consolidated financial performance including other comprehensive income,
Ind AS financial statements, including a summary of significant consolidated cash flows and consolidated statement of changes in
accounting policies and other explanatory information (hereinafter equity of the Group in accordance with the accounting principles
referred to as “the consolidated Ind AS financial statements”). generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act read with
In our opinion and to the best of our information and according to the Companies (Indian Accounting Standards) Rules, 2015, as
the explanations given to us and based on the consideration of amended. The respective Board of Directors of the companies
reports of other auditors on separate financial statements and on included in the Group are responsible for maintenance of adequate
the other financial information of the subsidiaries, the aforesaid accounting records in accordance with the provisions of the Act for
consolidated Ind AS financial statements give the information safeguarding of the assets of the Group and for preventing and
required by the Companies Act, 2013, as amended (“the Act”) in the detecting frauds and other irregularities; selection and application
manner so required and give a true and fair view in conformity with of appropriate accounting policies; making judgments and
the accounting principles generally accepted in India, of the estimates that are reasonable and prudent; and the design,
consolidated state of affairs of the Group, as at March 31, 2022, their implementation and maintenance of adequate internal financial
consolidated profit including other comprehensive income, their controls, that were operating effectively for ensuring the accuracy
consolidated cash flows and the consolidated statement of changes and completeness of the accounting records, relevant to the
in equity for the year ended on that date. preparation and presentation of the consolidated Ind AS financial
Basis for Opinion statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error, which have been used
We conducted our audit of the consolidated Ind AS financial for the purpose of preparation of the consolidated Ind AS financial
statements in accordance with the Standards on Auditing (SAs), as statements by the Directors of the Holding Company, as aforesaid.
specified under section 143(10) of the Act. Our responsibilities
under those Standards are further described in the ‘Auditor’s In preparing the consolidated financial statements, the respective
Responsibilities for the Audit of the Consolidated Ind AS Financial Board of Directors of the companies included in the Group are
Statements’ section of our report. We are independent of the Group responsible for assessing the ability of the Group to continue as a
in accordance with the ‘Code of Ethics’ issued by the Institute of going concern, disclosing, as applicable, matters related to going
Chartered Accountants of India together with the ethical concern and using the going concern basis of accounting unless
requirements that are relevant to our audit of the financial management either intends to liquidate the Group or to cease
statements under the provisions of the Act and the Rules thereunder, operations, or has no realistic alternative but to do so.
and we have fulfilled our other ethical responsibilities in accordance Those respective Board of Directors of the companies included in
with these requirements and the Code of Ethics. We believe that the the Group are also responsible for overseeing the financial reporting
audit evidence we have obtained is sufficient and appropriate to process of the Group.
provide a basis for our audit opinion on the consolidated Ind AS
financial statements. Auditor’s Responsibilities for the Audit of the Consolidated Ind
AS Financial Statements
Key Audit Matters
Our objectives are to obtain reasonable assurance about whether
Key audit matters are those matters that, in our professional the consolidated Ind AS financial statements as a whole are free
judgment, were of most significance in our audit of the consolidated from material misstatement, whether due to fraud or error, and to
Ind AS financial statements for the financial year ended March 31, issue an auditor’s report that includes our opinion. Reasonable
2022. These matters were addressed in the context of our audit of assurance is a high level of assurance, but is not a guarantee that an
the consolidated Ind AS financial statements as a whole, and in audit conducted in accordance with SAs will always detect a material
forming our opinion thereon, and we do not provide a separate misstatement when it exists. Misstatements can arise from fraud or
opinion on these matters. error and are considered material if, individually or in the aggregate,
We have determined that there are no other key audit matters to they could reasonably be expected to influence the economic
communicate in our report. decisions of users taken on the basis of these consolidated Ind AS
financial statements.
Other Information
As part of an audit in accordance with SAs, we exercise professional
The Holding Company’s Board of Directors is responsible for the judgment and maintain professional skepticism throughout the
other information. The other information comprises the information audit. We also:
included in the Annual report, but does not include the consolidated
Ind AS financial statements and our auditor’s report thereon. • Identify and assess the risks of material misstatement of the
consolidated Ind AS financial statements, whether due to fraud
Our opinion on the consolidated Ind AS financial statements does or error, design and perform audit procedures responsive to
not cover the other information and we do not express any form of those risks, and obtain audit evidence that is sufficient and
assurance conclusion thereon. appropriate to provide a basis for our opinion. The risk of not
In connection with our audit of the consolidated Ind AS financial detecting a material misstatement resulting from fraud is higher
statements, our responsibility is to read the other information and, than for one resulting from error, as fraud may involve collusion,
in doing so, consider whether such other information is materially forgery, intentional omissions, misrepresentations, or the
inconsistent with the consolidated financial statements or our override of internal control.

Annual Report 2021-22 90


FINANCIAL STATEMENTS

• Obtain an understanding of internal control relevant to the of Rs. 5724.38 lakhs for the year ended 31 March, 2022, total net
audit in order to design audit procedures that are appropriate in profit after tax of Rs. 399.45 lakhs for the year ended 31 March,
the circumstances. Under section 143(3)(i) of the Act, we are 2022. These financial statements / financial information have been
also responsible for expressing our opinion on whether the audited by their independent auditors, except two subsidiaries
Holding Company has adequate internal financial controls namely, Roto Pumps Americas Inc., USA and Roto Pumpen GMBH,
system in place and the operating effectiveness of such Germany, whose reports have been furnished to us by the
controls. Management. Further in respect of Roto Pumps Americas Inc., the
• Evaluate the appropriateness of accounting policies used and management has provided the independent accountants’
the reasonableness of accounting estimates and related compliance report having assets of Rs. 803.15 lakhs as at 31 March
disclosures made by management. 2022 and in respect of Roto Pumpen GMBH, Germany the
management has provided unaudited financial statement having
• Conclude on the appropriateness of management’s use of the total assets of Rs. 1622.57 as at 31 March 2022. Our opinion on the
going concern basis of accounting and, based on the audit consolidated Ind AS financial statements, in so far as it relates to the
evidence obtained, whether a material uncertainty exists amounts and disclosures included in respect of these subsidiaries,
related to events or conditions that may cast significant doubt and our report in terms of sub-sections (3) of Section 143 of the Act,
on the ability of the Group to continue as a going concern. If we in so far as it relates to the aforesaid subsidiaries, is based solely on
conclude that a material uncertainty exists, we are required to the reports of such other auditors.
draw attention in our auditor’s report to the related disclosures
in the consolidated Ind AS financial statements or, if such Our opinion above on the consolidated Ind AS financial statements,
disclosures are inadequate, to modify our opinion. Our and our report on Other Legal and Regulatory Requirements below,
conclusions are based on the audit evidence obtained up to the is not modified in respect of the above matters with respect to our
date of our auditor’s report. However, future events or conditions reliance on the work done and the reports of the other auditors and
may cause the Group to cease to continue as a going concern. the financial statements and other financial information certified by
the Management.
• Evaluate the overall presentation, structure and content of the
consolidated Ind AS financial statements, including the Report on Other Legal and Regulatory Requirements
disclosures, and whether the consolidated Ind AS financial As required by Section 143(3) of the Act, based on our audit and on
statements represent the underlying transactions and events in the consideration of report of the other auditors on separate
a manner that achieves fair presentation. financial statements and the other financial information of
• Obtain sufficient appropriate audit evidence regarding the subsidiaries, as noted in the ‘other matter’ paragraph we report, to
financial information of the entities or business activities within the extent applicable, that:
the Group of which we are the independent auditors, to express (a) We and the other auditors whose report we have relied upon
an opinion on the consolidated Ind AS financial statements. We have sought and obtained all the information and explanations
are responsible for the direction, supervision and performance which to the best of our knowledge and belief were necessary
of the audit of the financial statements of such entities included for the purposes of our audit of the aforesaid consolidated Ind
in the consolidated financial statements of which we are the AS financial statements;
independent auditors. For the other entities included in the (b) In our opinion, proper books of account as required by law
consolidated financial statements, which have been audited by relating to preparation of the aforesaid consolidation of the
other auditors, such other auditors remain responsible for the financial statements have been kept so far as it appears from
direction, supervision and performance of the audits carried out our examination of those books and reports of the other
by them. We remain solely responsible for our audit opinion. auditors;
We communicate with those charged with governance of the (c) The Consolidated Balance Sheet, the Consolidated Statement
Holding Company and such other entities included in the of Profit and Loss including the Statement of Other
consolidated Ind AS financial statements of which we are the Comprehensive Income, the Consolidated Cash Flow Statement
independent auditors regarding, among other matters, the planned and Consolidated Statement of Changes in Equity dealt with by
scope and timing of the audit and significant audit findings, this Report are in agreement with the books of account
including any significant deficiencies in internal control that we maintained for the purpose of preparation of the consolidated
identify during our audit. Ind AS financial statements;
We also provide those charged with governance with a statement (d) In our opinion, the aforesaid consolidated Ind AS financial
that we have complied with relevant ethical requirements regarding statements comply with the Accounting Standards specified
independence, and to communicate with them all relationships and under Section 133 of the Act, read with Companies (Indian
other matters that may reasonably be thought to bear on our Accounting Standards) Rules, 2015, as amended;
independence, and where applicable, related safeguards.
(e) On the basis of the written representations received from the
From the matters communicated with those charged with directors of the Holding Company as on March 31, 2022 taken
governance, we determine those matters that were of most on record by the Board of Directors of the Holding Company and
significance in the audit of the consolidated Ind AS financial the reports of the statutory auditors who are appointed under
statements for the financial year ended March 31, 2022 and are Section 139 of the Act, of its subsidiary companies, none of the
therefore the key audit matters. We describe these matters in our directors of the Group’s companies, incorporated in India is
auditor’s report unless law or regulation precludes public disclosure disqualified as on March 31, 2022 from being appointed as a
about the matter or when, in extremely rare circumstances, we director in terms of Section 164 (2) of the Act.
determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably (f) With respect to the adequacy and the operating effectiveness of
be expected to outweigh the public interest benefits of such the internal financial controls over financial reporting with
communication. reference to these consolidated Ind AS financial statements of
the Holding Company and its subsidiary company, refer to our
Other Matter separate Report in “Annexure A” to this report;
We did not audit the financial statements / financial information of (g) In our opinion the managerial remuneration for the year ended
the subsidiaries included in the consolidated financial results, March 31, 2022 has been paid / provided by the Holding
whose financial statements / financial information reflect total Company to their directors in accordance with the provisions of
assets of Rs. 3957.25 lakhs as at 31 March, 2022 and total revenues section 197 read with Schedule V to the Act.

91 Annual Report 2021-22


(h) With respect to the other matters to be included in the Auditor’s received by the Company or any of such subsidiaries
Report in accordance with Rule 11 of the Companies (Audit and from any person or entity, including foreign entity
Auditors) Rules, 2014, as amended, in our opinion and to the (“Funding Parties”), with the understanding, whether
best of our information and according to the explanations given recorded in writing or otherwise, that the Company or
to us and based on the consideration of the report of the other any of such subsidiaries shall, directly or indirectly, lend
auditors on separate financial statements as also the other or invest in other persons or entities identified in any
financial information of the subsidiaries, as noted in the ‘Other manner whatsoever by or on behalf of the Funding
matter’ paragraph: Party (“Ultimate Beneficiaries”) or provide any
i. The consolidated Ind AS financial statements disclose the guarantee, security or the like on behalf of the Ultimate
impact of pending litigations on its consolidated financial Beneficiaries.
position of the Group, in its consolidated Ind AS financial (c) Based on the audit procedures that have been
statements – Refer Note No. 35.1 to the consolidated Ind considered reasonable and appropriate in the
AS financial statements; circumstances performed by us on the Company and its
ii. The Group did not have any material foreseeable losses in subsidiaries which are companies incorporated in India
long-term contracts including derivative contracts during whose financial statements have been audited under
the year ended March 31, 2022; the Act, nothing has come to our notice that has caused
us to believe that the representations under sub-clause
iii. There has been no delay in transferring amounts, required (i) and (ii) of Rule 11(e), as provided under (a) and (b)
to be transferred, to the Investor Education and Protection above, contain any material misstatement.
Fund by the Holding Company, its subsidiaries, incorporated
in India during the year ended March 31, 2022. v) As stated in Note 16 and Note 44 to the consolidated
financial statements
iv. (a) The respective Managements of the Company and its
subsidiaries which are companies incorporated in India, a. The final dividend proposed in the previous year,
whose financial statements have been audited under declared and paid by the Company during the year is in
the Act, have represented to us that, to the best of their accordance with Section 123 of the Act, as applicable.
knowledge and belief, no funds (which are material b. The interim dividend declared and paid by the Company
either individually or in the aggregate) have been during the year and until the date of this report is in
advanced or loaned or invested (either from borrowed compliance with Section 123 of the Act.
funds or share premium or any other sources or kind of c. The Board of Directors of the Company have proposed
funds) by the Company or any of such subsidiaries to or final dividend for the year which is subject to the
in any other person or entity, including foreign entity approval of the members at the ensuing Annual General
(“Intermediaries”), with the understanding, whether Meeting. The amount of dividend proposed is in
recorded in writing or otherwise, that the Intermediary accordance with section 123 of the Act, as applicable.
shall, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever 2. With respect to the matters specified in paragraphs 3(xxi) and 4
by or on behalf of the Company or any of such of the Companies (Auditor’s Report) Order, 2020 (the “Order”/
subsidiaries (“Ultimate Beneficiaries”) or provide any
“CARO”) issued by the Central Government in terms of Section
guarantee, security or the like on behalf of the Ultimate
Beneficiaries. 143(11) of the Act, to be included in the Auditor’s report,
according to the information and explanations given to us, and
(b) The respective Managements of the Company and its based on the CARO reports issued by us for the Company and its
subsidiaries which are companies incorporated in India, subsidiaries included in the consolidated financial statements
whose financial statements have been audited under of the Company, to which reporting under CARO is applicable,
the Act, have represented to us that, to the best of their
we report that there are no qualifications or adverse remarks in
knowledge and belief, no funds (which are material
these CARO reports.
either individually or in the aggregate) have been
For R.N. Marwah & Co. LLP
Chartered Accountants
(Firm’s Registration No. 001211N/N500019)

Manoj Gupta
Partner
Place: Noida (Membership No. 096776)
Date: 26.05.2022 UDIN: 22096776AJROQR6804

Annual Report 2021-22 92


FINANCIAL STATEMENTS

Annexure A to the Independent Auditor’s Report


Report on the Internal Financial Controls under Clause (i) of risk. The procedures selected depend on the auditor’s judgment,
Sub-section 3 of Section 143 of the Companies Act, 2013 (“the including the assessment of the risks of material misstatement of
Act”) the Ind AS financial statements, whether due to fraud or error. We
believe that the audit evidence we have obtained is sufficient and
In conjunction with our audit of the consolidated Ind AS financial
appropriate to provide a basis for our audit opinion on the Company’s
statements of the Company as of and for the year ended 31 March
internal financial controls system over financial reporting.
2022, we have audited the internal financial controls over financial
reporting of ROTO PUMPS LIMITED (“the Holding Company”) its Meaning of Internal Financial Controls over Financial
subsidiaries companies which are companies incorporated in India, Reporting
as of that date.
A company’s internal financial control over financial reporting is a
Management’s Responsibility for Internal Financial Controls process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
The Respective Board of Directors of the Holding Company and its
statements for external purposes in accordance with generally
subsidiary companies, which are companies incorporated in India,
accepted accounting principles. A company’s internal financial
are responsible for establishing and maintaining internal financial
control over financial reporting includes those policies and
controls based on the internal control over financial reporting
procedures that (1) pertain to the maintenance of records that, in
criteria established by the Company considering the essential
reasonable detail, accurately and fairly reflect the transactions and
components of internal control stated in the Guidance Note on
dispositions of the assets of the company; (2) provide reasonable
Audit of Internal Financial Controls over Financial Reporting issued
assurance that transactions are recorded as necessary to permit
by the Institute of Chartered Accountants of India (“ICAI’). These
preparation of financial statements in accordance with generally
responsibilities include the design, implementation and
accepted accounting principles, and that receipts and expenditures
maintenance of adequate internal financial controls that were
of the company are being made only in accordance with
operating effectively for ensuring the orderly and efficient conduct
authorizations of management and directors of the company; and
of its business, including adherence to company’s policies, the
(3) provide reasonable assurance regarding prevention or timely
safeguarding of its assets, the prevention and detection of frauds
detection of unauthorized acquisition, use, or disposition of the
and errors, the accuracy and completeness of the accounting
company’s assets that could have a material effect on the financial
records, and the timely preparation of reliable financial information,
statements.
as required under the Companies Act, 2013.
Inherent Limitations of Internal Financial Controls Over
Auditors’ Responsibility
Financial Reporting
Our responsibility is to express an opinion on the Company’s internal
Because of the inherent limitations of internal financial controls
financial controls over financial reporting based on our audit. We
over financial reporting, including the possibility of collusion or
conducted our audit in accordance with the Guidance Note on Audit
improper management override of controls, material misstatements
of Internal Financial Controls over Financial Reporting (the
due to error or fraud may occur and not be detected. Also,
“Guidance Note”) issued by ICAI and the Standards on Auditing,
projections of any evaluation of the internal financial controls over
issued by ICAI and deemed to be prescribed under section 143(10)
financial reporting to future periods are subject to the risk that the
of the Companies Act, 2013, to the extent applicable to an audit of
internal financial control over financial reporting may become
internal financial controls, both issued by the Institute of Chartered
inadequate because of changes in conditions, or that the degree of
Accountants of India. Those Standards and the Guidance Note
compliance with the policies or procedures may deteriorate.
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether Opinion
adequate internal financial controls over financial reporting was
In our opinion, the Holding Company and its subsidiary companies,
established and maintained and if such controls operated effectively
which are companies incorporated in India, have, in all material
in all material respects. Our audit involves performing procedures to
respects, an adequate internal financial controls system over
obtain audit evidence about the adequacy of the internal financial
financial reporting and such internal financial controls over financial
controls system over financial reporting and their operating
reporting were operating effectively as at 31 March 2022, based on
effectiveness. Our audit of internal financial controls over financial
the internal control over financial reporting criteria established by
reporting included obtaining an understanding of internal financial
the Company considering the essential components of internal
controls over financial reporting, assessing the risk that a material
control stated in the Guidance Note on Audit of Internal Financial
weakness exists, and testing and evaluating the design and
Controls Over Financial Reporting issued by the ICAI
operating effectiveness of internal control based on the assessed

For R.N. Marwah & Co. LLP


Chartered Accountants
(Firm’s Registration No. 001211N/N500019)

Manoj Gupta
Partner
Place: Noida (Membership No. 096776)
Date: 26.05.2022 UDIN: 22096776AJROQR6804

93 Annual Report 2021-22


CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2022
(Amount INR Lakhs)
Note No As At 31st March, As At 31st
PARTICULARS
2022 March, 2021
ASSETS
NON-CURRENT ASSETS
(a) Property, Plant and Equipment 3 3,347.95 3,983.38
(b) Capital work-in-progress 4 832.58 137.43
(c) Right- of- Use Assets 5 (a) 3,232.99 24.68
(d) Other Intangible assets 6 35.82 16.87
(e) Goodwill 78.50 78.50
(f) Other financial assets 7 50.00 -
(g) Deferred Tax Assets (Net) 19 165.84 168.18
TOTAL NON-CURRENT ASSETS 7,743.68 4,409.04

CURRENT ASSETS
(a) Inventories 8 3,868.62 3,111.98
(b) Financial Assets
(i) Trade receivables 9 4,321.14 2,607.20
(ii) Cash and cash equivalents 10 1,940.36 3,223.68
(iii) Bank balances other than (ii) above 11 939.05 315.29
(iv) Loans 12 17.97 11.94
(v) Other financial assets 13 409.40 268.12
(c) Other current assets 14 2,120.73 1,482.31
TOTAL CURRENT ASSETS 13,617.27 11,020.52
TOTAL ASSETS 21,360.95 15,429.56

EQUITY AND LIABILITIES


EQUITY
a) Equity Share Capital 15 314.08 309.08
b) Other Equity 16 13,113.46 10,020.60
c) Non Controling Interest 69.70 -
TOTAL EQUITY 13,497.24 10,329.68

NON-CURRENT LIABILITIES
(a) Financial Liabilities
(i) Borrowings 17 44.83 74.64
(ii) Lease Liabilities 5 (b) 1,849.31 18.59
(b) Provisions 18 4.90 52.17
TOTAL NON-CURRENT LIABILITIES 1,899.04 145.40
CURRENT LIABILITIES
(a) Financial Liabilities
(i) Borrowings 20 1,403.95 1,146.85
(ii) Lease Liabilities 5 (b) 96.15 4.95
(iii) Trade payables
-Total outstanding dues of micro enterprises and small enterprises 21 218.00 199.83
-Total outstanding dues of creditors other than micro enterprises and small enterprises 1,366.95 1,091.19
(iii) Other financial liabilities (other than those specified in item (b) 22 15.96 10.60
(b) Other current liabilities 23 1,625.12 1,555.87
(c) Provisions 24 159.75 171.72
(d) Current Tax Liabilities (Net) 25 1,078.79 773.47
TOTAL CURRENT LIABILITIES 5,964.67 4,954.48
TOTAL EQUITY AND LIABILITIES 21,360.95 15,429.56
The Significant Accounting policies and accompaning notes mentioned are an intergral 1 to 48
part of financial statements

For and on behalf of the Board


As per our report of even date.
For R.N Marwah & Co LLP (HARISH CHANDRA GUPTA) (ANURAG GUPTA)
Chartered Accountants Chairman & Managing Director Jt. Manging Director
(Registration No.0001211N/N500019) (DIN : 00334405) (DIN : 00334160)

(Manoj Gupta) (PRADEEP JAIN) (ASHWANI K VERMA)


PARTNER Chief Financial Officer Company Secretary
Membership No.096776 (PAN : AAEPJ6827A) (M.No : F9296)

PLACE: Noida
DATE : 26.05.2022

Annual Report 2021-22 94


FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31ST MARCH, 2022
(Amount INR Lakhs)
Year Ended Year Ended
PARTICULARS Note
31ST MARCH, 2022 31ST MARCH, 2021
INCOME
Revenue from Operations 26 17,558.76 12,652.68
Other Income 27 433.38 507.07
TOTAL INCOME 17,992.14 13,159.75

EXPENSES
Cost of Materials consumed 28 6,221.68 4,140.55
Change in Inventories of Finished goods and Work in Progress 29 (615.81) (13.39)
Employee Benefits Expense 30 4,369.02 3,493.31
Finance Costs 31 154.03 31.11
Depreciation & Amortisation Expense 32 639.68 603.38
Other Expenses 33 3,112.42 2,338.83
TOTAL EXPENSES 13,881.02 10,593.79
Profit before Tax 4,111.12 2,565.96
Tax expenses
Current tax 1,054.87 783.75
Deferred Tax 19 15.81 (60.95)
Short/(Excess) Provisions- earlier years 16.33 10.06
Profit for the year before Non Controlling Interest 3,024.11 1,833.10

Profit for the year 3,024.11 1,833.10


Other Comprehensive Income
(i) Items that will not be reclassified to profit or loss
- Remeasurement of Defined benefit plans (48.38) 5.60
- Changes in Foreign Currency Monetary Item translation difference (13.66) (46.63)
account (FCMITDA)
(ii) Income tax relating to items that will not be reclassified to profit or loss
- Remeasurement of Defined benefit plans 19 (12.18) 1.41
Total Other Comprehensive Income/(Loss) for the Year (Net of Tax) (74.22) (39.62)

Total comprehensive income for the year 2,949.89 1,793.48


Profit/Loss for the year attributable to
Owners of the Parent 3,015.51 1,833.10
Non Controlling Interest 8.60 -
3,024.11 1,833.10
Other Comprehensive Income attributable to
Owners of the Parent (74.22) (39.62)
Non Controlling Interest - -
(74.22) (39.62)
Total Comprehensive Income attributable to
Owners of the Parent 2,941.28 1,793.48
Non Controlling Interest 8.60 -
2,949.89 1,793.48
Earnings per equity share: 34 19.51 11.86
Basic and Diluted (Face value Rs.2 per equity share)
The Significant Accounting policies and accompaning notes mentioned are an intergral 1 to 48
part of financial statements

For and on behalf of the Board


As per our report of even date.
For R.N Marwah & Co LLP (HARISH CHANDRA GUPTA) (ANURAG GUPTA)
Chartered Accountants Chairman & Managing Director Jt. Manging Director
(Registration No.0001211N/N500019) (DIN : 00334405) (DIN : 00334160)

(Manoj Gupta) (PRADEEP JAIN) (ASHWANI K VERMA)


PARTNER Chief Financial Officer Company Secretary
Membership No.096776 (PAN : AAEPJ6827A) (M.No : F9296)

PLACE: Noida
DATE : 26.05.2022

95 Annual Report 2021-22


CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2022
(Amount INR Lakhs)
Year Ended 31ST Year Ended 31ST
PARTICULARS
MARCH, 2022 MARCH, 2021
(A) CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit / (Loss) before tax 4,111.12 2,565.96
Adjustment for :
Depreciation 639.68 603.38
Finance Cost 78.28 31.11
Interest on Lease Liabilities 75.75 -
Share issue Expenses (12.05) -
Interest Income (111.27) (62.32)
Net (gains)/loss on disposal of property, plant and equipment (1.12) (5.09)
Remeasurement of defined benefit liabilities (48.37) 5.60
Net (gains)/loss on fair valuation of derivative contracts 13.17 (35.01)
Net (gains)/loss on sale of investments
Deffered tax provision
Net gains/(loss) on foreign currency translation (14.20) (46.62)
Operating Profit / (Loss) before Working Capital Changes 4,730.99 3,057.01
Movement in working capital
Adjustments for (increase)/decrease in operating assets:
Inventories (756.64) 100.96
Trade receivables (1,713.93) (187.58)
Loans (6.03) (15.84)
Other current financial assets (191.28) (46.32)
Other current assets (230.33) (36.52)
Adjustments for increase/(decrease) in operating liabilities:
Trade payables 293.93 242.51
Other current financial liabilities 5.36 (16.46)
Other current liabilities (40.60) 879.20
Provisions (59.25) 105.08
Cash generated from operations 2,032.22 4,082.04
Direct Tax Paid (Net) (1,104.75) (594.02)
Net cash generated from operating activities (A) 927.47 3,488.01

(B) CASH FLOW FROM INVESTING ACTIVITIES:


Payment for Property , Plant and Equipment (789.63) (440.09)
Payment for Right to Use assets (469.79)
Payment for Capital Work In Progress (695.15) (74.62)
Proceeds from disposal of Property , Plant and Equipment 27.93 29.76
Investment in Subsidiary - 122.35
Proceeds from sale of investment in subsidiaries 24.22 -
Interest Received 111.27 62.32
Net (Gain)/Loss on fair valuation of derivative contract (13.17) 35.01
Net Cash used in Investing Activities (B) (1,804.32) (265.27)

(C) CASH FLOW FROM FINANCING ACTIVITIES:


Repayment of Non Current borrowings (43.53) (23.45)
Proceeds from Current borrowings 270.81 (462.14)
Proceeds from Share issue 355.28
Payment of Lease Liabilties (232.90) (13.26)
Interest Paid (78.28) (31.11)
Dividend Paid/Payable (54.09) (216.35)
Net Cash used in Financing Activities (C) 217.29 (746.31)

Net increase in Cash and Cash Equivalents (A+B+C) (659.56) 2,476.43


Cash and Cash Equivalents as at the begining of the year (Note No -10 & 11) 3,538.97 1,062.54
Cash and Cash Equivalents as at the end of the year (Note No -10 & 11) 2,879.41 3,538.97

For and on behalf of the Board


As per our report of even date.
For R.N Marwah & Co LLP (HARISH CHANDRA GUPTA) (ANURAG GUPTA)
Chartered Accountants Chairman & Managing Director Jt. Manging Director
(Registration No.0001211N/N500019) (DIN : 00334405) (DIN : 00334160)

(Manoj Gupta) (PRADEEP JAIN) (ASHWANI K VERMA)


PARTNER Chief Financial Officer Company Secretary
Membership No.096776 (PAN : AAEPJ6827A) (M.No : F9296)

PLACE: Noida
DATE : 26.05.2022

Annual Report 2021-22 96


FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH,2021
A EQUITY SHARE CAPITAL (Amount INR Lakhs)
Particulars
Balance as at 31st March, 2021 309.08
Changes in equity share capital during the year 2021-22 5.00
Balance as at 31st March, 2022 314.08

B OTHER EQUITY (Amount INR Lakhs)


Attributable
Total
Securities General Retained to non
Particulars Other Total
Premium Reserve Earnings controlling
Equity
interest
As at 1st April 2021 472.07 557.89 8,990.64 10,020.60 - 10,020.60
Profit for the year 2021-22 3,015.51 3,015.51 8.60 3,024.11
Other comprehensive income for the year 2021-22 - -
(net of tax)
- Changes in Foreign Currency Monetary Item (13.66) (13.66) - (13.66)
translation difference account (FCMITDA)
Remeasurement of Net defined benefit liability/(asset) (60.55) (60.55) - (60.55)
(net of tax)
Total comprehensive income for the year - - 2,941.30 2,941.30 8.60 2,949.90

Add: Security premium on shares issued during the year 350.28 350.28 - 350.28
Add: Share issue Expenses (12.05) (12.05) (12.05)
Add: Adjustment for ROU Recognition (95.73) (95.73) (95.73)

Less: Appropriations
Dividend Paid/Payable - -(54.09) (54.09) - (54.09)
Loss on disposal of investment and Recognition of NCI (36.85) (36.85) 61.10 24.25
As at 31st March, 2022 822.35 557.89 11,733.22 13,113.46 69.70 13,183.16

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2022
Company Overview • Specified format for ageing schedule of trade receivables, trade
payables, capital work-in-progress and intangible asset under
Roto Pumps Limited referred to as “RPL” or “the Company” was
development.
incorporated on 31st July 1975. RPL is an enterprise listed on the BSE
Ltd and NSE Ltd. The principal source of Company’s revenue is from the • If a company has not used funds for the specific purpose for
sale of pumps, spares and retrofit parts. The Company has a rich heritage which it was borrowed from banks and financial institutions,
of designing and manufacturing superior products and technologies. then disclosure of details of where it has been used.
Company offers comprehensive range of Progressive Cavity Pumps
• Specific disclosure under ‘additional regulatory requirement’
(PCP), Twin Screws Pumps and added other PD pumps in the product
such as compliance with approved schemes of arrangements,
basket such as AODD and Gear pumps. The products cater to a large
compliance with number of layers of companies, title deeds of
spectrum of industries covering various industrial and municipal
immovable property not held in name of company, loans and
applications. Aligned with its vision, the Company is transforming into a
advances to promoters, directors, key managerial personnel
fluid equipment solution provider.
(KMP) and related parties, details of benami property held etc.
Recent Accounting Developments
Statement of profit and loss:
On March 24, 2021, the Ministry of Corporate Affairs (“MCA”) through a
• Additional disclosures relating to Corporate Social
notification, amended Schedule III of the Companies Act, 2013. The
Responsibility (CSR), undisclosed income and crypto or virtual
amendments revise Division I, II and III of Schedule III and are applicable
currency specified under the head ‘additional information’ in
from April 1, 2021. Key amendments relating to Division II which relate
the notes forming part of the consolidated financial statements.
to companies whose financial statements are required to comply with
Companies (Indian Accounting Standards) Rules 2015 are: Above mentioned amendments are incorporated while preparation of
Financial Statements, wherever applicable to the company.
Balance Sheet:
1. SIGNIFICANT ACCOUNTING POLICIES
• Lease liabilities should be separately disclosed under the head
‘financial liabilities’, duly distinguished as current or non- 1.1 Basis of Preparation and Presentation
current. The Consolidated Financial Statements have been prepared on
• Certain additional disclosures in the statement of changes in the historical cost basis except for the following assets and
equity such as changes in equity share capital due to prior liabilities which have been measured at fair value:
period errors and restated balances at the beginning of the i. Certain financial assets and liabilities (including
current reporting period. derivative instruments),
• Specified format for disclosure of shareholding of promoters. ii. Defined Benefit Plan’s - Plan Assets and

97 Annual Report 2021-22


iii. Equity settled Share Based Payments consolidated at the average rate prevailing during the
iv. Right -to-Use-Assets year. All assets and liabilities are converted at rates
prevailing at the end of the year. Any exchange
The Consolidated Financial Statements of the Group have been
difference arising on consolidation is recognized in the
prepared to comply with the Indian Accounting Standards (‘Ind
Foreign Currency Monetary translation difference
AS’), including the rules notified under the relevant provisions
account under “Other Comprehensive Income”.
of the Companies Act, 2013.
(d) Goodwill represents the difference between the
The Consolidated Financial Statements comprises of Roto
Company’s share in the net worth of subsidiaries and
Pumps Limited and all its subsidiaries, being the entities that it
the cost of acquisition at each point of time of making
controls. Controls are assessed in accordance with the
the investment in the subsidiaries.
requirement of Ind AS 110 - Consolidated Financial Statements.
(e) The audited / unaudited financial statements of
The Consolidated Financial statements have been prepared on
foreign subsidiaries / joint ventures / associates have
accrual and going concern basis. The accounting policies are
been prepared in accordance with the Generally
applied consistently to all the periods presented in the financial
Accepted Accounting Principle of its Country of
statements. All assets and liabilities have been classified as
Incorporation or Ind AS.
current or non-current as per the Company’s normal operating
cycle, paragraph 66 and 69 of Ind AS 1 and other criteria as set (f) The differences in accounting policies of the Holding
out in the Division II of Schedule III to the Companies Act, 2013. Company and its subsidiaries / associates are not
Based on the nature of products and the time between material.
acquisition of assets for processing and their realization in cash (g) The Consolidated Financial Statements have been
and cash equivalents, the Company has ascertained its prepared using uniform accounting policies for like
operating cycle as 12 months for the purpose of current or transactions and other events in similar circumstances.
non-current classification of assets and liabilities
(h) The carrying amount of the parent’s investment in
Estimation of uncertainties relating to the global health each subsidiary is offset(eliminated) against the
pandemic from COVID -19: parent’s portion of equity in each subsidiary.
The Company has considered the possible effects that may (i) The difference between the proceeds from disposal of
result from the pandemic relating to COVID-19 on the carrying investment in subsidiaries and the carrying amount of
amounts of receivables, intangibles, investments and other its assets less liabilities as on the date of disposal is
assets. In developing the assumptions relating to the possible recognized in the Consolidated Statement of Profit
future uncertainties in the economic conditions because of and Loss being the profit or loss on disposal of
this pandemic, the Company has used internal and external investment in subsidiary.
sources of information. The Company has reviewed the
assumptions used and based on current estimates expects the (j) Investment in Associates and Joint Ventures has been
carrying amount of these assets will be recovered. The impact accounted under the Equity Method as per Ind AS 28
of COVID-19 on the Company’s financial statements may differ – Investments in Associates and Joint Ventures.
from that estimated as at the date of approval of these financial Investments in joint operations are accounted using
statements and the Company will continue to closely monitor the Proportionate Consolidation Method as per Ind AS
any material changes to future economic conditions. 111 – Joint Arrangements.

Authorization of Consolidated Financial Statements: The (k) The Group accounts for its share of post-acquisition
Consolidated financial statements were authorized for issue in changes in net assets of associates and joint ventures,
accordance with a resolution of the Board of Directors in its after eliminating unrealized profits and losses resulting
meeting held on 26th May, 2022. from transactions between the Group and its
associates and joint ventures.
1.2 Principles of Consolidation
(l) Non-Controlling Interest’s share of profit / loss of
(a) The financial statements of the Holding Company and consolidated subsidiaries for the year is identified and
its subsidiaries are combined on a line by line basis by adjusted against the income of the Group in order to
adding together like items of assets, liabilities, equity, arrive at the net income attributable to shareholders of
incomes, expenses and cash flows, after fully the Company.
eliminating intra-group balances and intra-group
transactions. (m) Non-Controlling Interest’s share of net assets of
consolidated subsidiaries is identified and presented
(b) Profits or losses resulting from intra-group transactions in the Consolidated Balance Sheet.
that are recognized in assets & Liabilities, such as
Inventory, Property, Plant and Equipment and 1.3 Other significant accounting policies
Borrowings are eliminated in full. These are set out under “Statement of Significant Accounting
(c) In case of foreign subsidiaries, revenue items are Policies” as given in the Company’s separate Standalone
financial statements.

Annual Report 2021-22 98


FINANCIAL STATEMENTS

3 PROPERTY, PLANT AND EQUIPMENT (Amount INR Lakhs)


Particulars DEEMED COST/GROSS BLOCK ACCUMULATED DEPRECIATION/ NET BLOCK
AMORTIZATION
Balance Additions/ Disposals/ Balance Balance Deprecia- Eliminated/ Balance Balance Balance
as at Reclassifi- Reclassifi- as at as at tion/ Addition on as at as at as at
31st cation cation 31st 31st Amortiza- disposals/ 31st 31st 31st
March, March, March, tion Reclassifica- March, March, March,
2021 2022 2021 expenses tion of assets 2022 2021 2022
Leasehold land 1,021.96 - (1,021.96) - 124.50 - (124.50) - 897.45 -
Factory Buildings 3,115.78 3.73 (51.00) 3,068.51 1,688.24 138.51 (35.00) 1,791.75 1,427.53 1,276.76
Other Buildings 91.91 3.62 - 95.53 21.89 4.48 - 26.37 70.02 69.16
Leasehold 23.04 - - 23.04 4.56 7.00 - 11.56 18.49 11.49
improvement
Plant and 3,857.37 547.38 (27.98) 4,376.77 2,627.43 231.62 (24.78) 2,834.27 1,229.93 1,542.49
Machinery
Furniture and 311.29 26.53 (23.51) 314.31 259.28 20.21 (23.42) 256.07 52.01 58.24
Fixtures
Vehicles 594.96 171.74 (40.48) 726.22 417.83 60.52 (34.49) 443.86 177.13 282.37
Vechiles (Finance 24.61 - - 24.61 18.46 1.40 - 19.86 6.15 4.75
Lease)
Office Equipment 302.34 15.93 (8.92) 309.35 253.67 17.42 (8.34) 262.75 48.68 46.60
Computers 379.19 36.56 (22.07) 393.68 323.21 35.50 (21.12) 337.59 55.98 56.09
Total 9,722.45 805.49 (1,195.92) 9,332.02 5,739.07 516.66 (271.65) 5,984.08 3,983.38 3,347.95

4 CAPITAL WORK-IN-PROGRESS (CWIP) (Amount INR Lakhs)


Particulars Balance as at 31st Additions/ Disposals/ Balance as at 31st
March, 2021 Reclassification Reclassification March, 2022
Capital work-in-progress 137.43 699.98 (4.83) 832.58
Total 137.43 699.98 (4.83) 832.58
CWIP aging schedule (Amount INR Lakhs)
Year Wise CWIP Details
Capital work in progress
Less Than 1 year 1 to 2 years 2 to 3 Years More than 3 Year Total
Project in Progress
Building under construction Greater Noida 495.13 - - - 495.13
New Project setup of Roto Energy 100.44 - - - 100.44
Building under construction Noida 94.28 - - - 94.28
SAP Implementation 10.13 70.65 54.95 7.00 142.73
Total 699.98 70.65 54.95 7.00 832.58

Overdue Projects (Amount INR Lakhs)


To be completed in
Capital work in progress
Less Than 1 year 1 to 2 years 2 to 3 Years More than 3 Year Total
SAP Implementation 142.73 - - - 142.73
Total 142.73 - - - 142.73
5 (a) Right- to- Use Assets (Amount INR Lakhs)
Particulars DEEMED COST/GROSS BLOCK ACCUMULATED DEPRECIATION/AMORTIZATION NET BLOCK
Balance Additions/ Disposals/ Balance Balance Depreciation/ Eliminated/ Balance Balance Balance
as at Reclassifi- Reclassifi- as at as at Amortization Addition on as at as at as at
31st cation cation 31st 31st expenses disposals/ 31st 31st 31st
March, March, March, Reclassification March, March, March,
2021 2022 2021 of assets 2022 2021 2022
Right- of- Use 36.80 3,536.55 - 3,573.35 12.12 117.19 211.05 340.36 24.68 3,232.99
Assets
Total 36.80 3,536.55 - 3,573.35 12.12 117.19 211.05 340.36 24.68 3,232.99
5 (b) Lease liabilities
The Breakup of current and non current lease liabilities as at 31.03.2022 and 31.03.2021 is as follows:- (Amount INR Lakhs)
Particulars As at March 31 2022 As at March 31 2021
Current lease liabilities 96.15 4.95
Non-current lease liabilities 1,849.31 18.59
Total 1,945.46 23.54

99 Annual Report 2021-22


The movement in lease liabilities during the years ended March 31, 2022 and March 31, 2021 is as follows: (Amount INR Lakhs)
Particulars As at March 31 2022 As at March 31 2021
Balance at the beginning 23.54 -
Additions 2,044.81 36.80
Additions through business combination - -
Finance cost accrued during the period 75.75 2.01
Deletions - -
Payment of lease liabilities (232.90) (15.27)
Adjustment through Retained Earnings 34.26 -
Balance at the end 1,945.46 23.54
6 OTHER INTANGIBLE ASSETS (Amount INR Lakhs)
Particulars DEEMED COST/GROSS BLOCK ACCUMULATED DEPRECIATION/AMORTIZATION NET BLOCK
Balance Additions Disposals Balance Balance Depreciation/ Eliminated Balance Balance Balance
as at as at as at Amortization on disposals as at as at as at
31st 31st 31st expenses of assets 31st 31st 31st
March, March, March, March, March, March,
2021 2022 2021 2022 2021 2022
Software 196.44 0.98 - 197.42 183.42 4.39 - 187.81 13.02 9.61
Technical Design 10.95 23.05 - 34.00 10.26 0.48 - 10.74 0.69 23.26
and Drawings
Trademark and 11.82 0.73 - 12.55 8.66 0.94 - 9.60 3.16 2.95
Patents
Total 219.21 24.76 - 243.97 202.34 5.81 - 208.15 16.87 35.82
7 OTHER FINANCIAL ASSETS (Amount INR Lakhs)
PARTICULARS As at March 31 2022 As at March 31 2021
Long Term-Term Deposit -Margin Money against guarantees 50.00 -
TOTAL 50.00 -

8 INVENTORIES (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
a) Raw Materials 699.83 602.87
b) Work in Process 214.77 168.88
c) Finished Goods 2,667.26 1,707.94
d)Finished Goods-In Transit 178.98 550.51
e) Consumables Stores 18.34 15.18
f) Other Stores & Spares 34.16 17.27
g) Tools 47.69 44.96
h) Packing Material 7.48 3.75
i)Scrap and Wastage 0.11 0.62
TOTAL 3,868.62 3,111.98

(i) The mode of valuation has been stated in Significant Accounting Policies of Standalone Financial Statements.
(ii) Inventories have been hypothecated as security for borrowings other than Inventories at Subsidary Companies.

9 TRADE RECEIVABLES (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Unsecured unless stated otherwise (Considered Good)
Trade Receivables 4,321.14 2,607.20
TOTAL 4,321.14 2,607.20
i) The average credit period for collection is 90 days (Previous Year 75 days).
ii) No trade receivable are due from directors either severally or jointly with any other person.
iii) Information about credit risk and market risk of trade receivables refer - Note No 38 of Consolidated Financial Statements.
iv) Movement in expected credit loss allowance (Amount INR Lakhs)
PARTICULARS As at March 31 2022 As at March 31 2021
Balance at the beginning of the year - (3.66)
Add: Provision made during the year - 3.66
Balance at the end of the year - -

Annual Report 2021-22 100


FINANCIAL STATEMENTS

Age wise outstanding details (Amount INR Lakhs)


Particulars Less 6 month 1 to 2 2 to 3 More Total
than 6 to 1 year years years than 3
months years
A.Undisputed trade receivables - considered good
a.Related Parties - - - - - -
b.Others 4,224.62 55.00 41.51 - - 4,321.14
B.Undisputed trade receivables - Which have significant increase in credit risk - - - - - -
C.Undisputed trade receivables - Credit Impaired - - - - - -
Less: Allowances for credit loss
D.Disputed trade receivables - considered good - - - - - -
E.Disputed trade receivables - Which have significant increase in credit risk - - - - - -
F.Disputed trade receivables - Credit Impaired - - - - - -
Total 4,224.62 55.00 41.51 - - 4,321.14

10 CASH AND CASH EQUIVALENTS (Amount INR Lakhs)


PARTICULARS As at March 31 2022 As at March 31 2021
Cash and cash equivalents
a) Balance with banks 1,193.70 486.51
b) Cash in Hand 15.83 15.26
c) Remittance in Transit 34.20 309.03
d) Term Deposits 696.63 2,412.88
TOTAL 1,940.36 3,223.68

11 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS (Amount INR Lakhs)
PARTICULARS As at March 31 2022 As at March 31 2021
a) Earmarked Balances with Bank -Unclaimed dividend accounts 15.96 10.60
b) Term Deposit(Restricted)- Margin Money against guarantees 553.66 304.69
c) Term Deposit with maturity of more than 3 months 369.43 -
TOTAL 939.05 315.29

12 LOANS (Amount in Rs)


PARTICULARS As at March 31 2022 As at March 31 2021
Unsecured and considered good
Staff Loans 17.97 11.94
TOTAL 17.97 11.94

13 OTHER FINANCIAL ASSETS (Amount in Rs)


PARTICULARS As at March 31 2022 As at March 31 2021
a) Interest accrued on Bank deposits 24.39 34.78
b) Interest accured on Security Deposits 0.37 0.45
c) Derivative carried at fair value 8.14 21.32
d) Accured Export Benefit Entitlement 267.62 109.39
e) Security Deposits 108.88 102.18
TOTAL 409.40 268.12

14 OTHER CURRENT ASSETS (Amount in Rs)


PARTICULARS As at March 31 2022 As at March 31 2021
( Unsecured and considered good)
a) Capital Advances 415.16 345.94
b) Deposit with GST & Other Authorities 565.47 430.96
c) Advance Income Tax & Tax Deducted at Source 865.20 526.33
d) Prepaid Expenses 142.15 109.15
e) Other Receivables 132.75 69.93
TOTAL 2,120.73 1,482.31

101 Annual Report 2021-22


15 EQUITY SHARE CAPITAL (Amount INR Lakhs)
PARTICULARS As at March 31 2022 As at March 31 2021
AUTHORISED SHARE CAPITAL
5,00,00,000 (As at 31st March, 2021: 5,00,00,000,) Equity Shares of Rs 2 each 1,000.00 1,000.00
ISSUED & SUBSCRIBED SHARE CAPITAL
1,57,50,305 (As at 31st March, 2021: 1,55,00,305,) Equity Shares of Rs 2 each 315.01 310.01
PAID UP SHARE CAPITAL
1,57,03,805 (As at 31st March, 2021: 1,54,53,805) Equity Shares of Rs 2 each 314.08 309.08
TOTAL 314.08 309.08
15.1 DETAILS OF SHAREHOLDER HOLDING MORE THAN 5% SHARES (Amount INR Lakhs)
As at 31st March,2022 As at 31st March,2021
NAME OF SHAREHOLDER
Number of Shares Held In The Company % Held Number of Shares Held In The Company % Held
ANURAG GUPTA 1210335 7.71 1085335 7.02
ANURAG GUPTA-HUF 1488660 9.48 1488660 9.63
ARVIND VEER GUPTA 1272835 8.11 1210335 7.83
ASHA GUPTA 2500265 15.92 2500265 16.18
HARISH CHANDRA GUPTA 2036595 12.97 1974095 12.77
HARISH CHANDRA GUPTA-HUF 871750 5.55 1071750 6.94
NEERA GUPTA 849535 5.41 849535 5.5
15.2 During the year ended 31st March 2022, 250000 no. of equity shares are issued to the person relating to promoters/ promoter group on
conversion of warrants of face value of INR 2 fully paid and share preminum of INR 140.11 of each share.

15.3 Application Money on 9,300 Equity Shares @ Rs. 10/- per Share alongwith premium @ Rs. 45/- per share aggregating to Rs. 5.12 lakhs
allotted on 11.11.1994 has not yet been dispatched and realised as the same was paid by an applicant through a forged stock invest which
has been dishonoured by the bankers. During the Financial year 2014-2015 the Face Value of Shares is divided into Rs 2/- per Share from
Rs 10/- per Share each.
(Amount INR Lakhs)
Details of shares held by the promoters in the As at March 31, 2022 As at March 31, 2021
Company.
Equity shares: Nos. % % Of Change Nos. % % Of Change
during the year during the year
ASHA GUPTA 25,00,265 15.92 (0.26) 25,00,265 16.18 0.004
HARISH CHANDRA GUPTA 20,36,595 12.97 0.19 19,74,095 12.77 0.003
ANURAG GUPTA-HUF 14,88,660 9.48 (0.15) 14,88,660 9.63 -
ARVIND GUPTA 12,72,835 8.11 0.27 12,10,335 7.83 -
ANURAG GUPTA 12,10,335 7.71 0.68 10,85,335 7.02 -
HARISH CHANDRA GUPTA-HUF 8,71,750 5.55 (1.38) 10,71,750 6.94 0.004
NEERA GUPTA 8,49,535 5.41 (0.09) 8,49,535 5.50 0.01
RAJEETA GUPTA 2,35,155 1.50 0.62 1,35,155 0.87 -
ROLLY GUPTA 2,33,830 1.49 0.62 1,33,830 0.87 -
MANSI KANORIA 1,31,200 0.84 (0.01) 1,31,200 0.85 (0.18)
MADHU AGARWAL 1,03,600 0.66 (0.01) 1,03,600 0.67 -
SHALINI GUPTA 58,335 0.37 (0.01) 58,335 0.38 0.18
MANOJ AGARWAL 19,325 0.12 (0.00) 19,325 0.13 -
GOPIKA GUPTA 17,295 0.11 (0.00) 17,295 0.11 0.11
ARVIND VEER GUPTA-HUF 14,760 0.09 (0.00) 14,760 0.10 0.10
RAJINDER KUMAR GUPTA 10,810 0.07 (0.00) 10,810 0.07 -
URMILA AGARWAL 8,500 0.05 0.04 2,000 0.01 -
GAESU SALUJA 200 0.00 (0.00) 200 0.00 0.001
As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders
regarding beneficial interest,

Annual Report 2021-22 102


FINANCIAL STATEMENTS

16 OTHER EQUITY (Amount INR Lakhs)


PARTICULARS As at 31st March,2022 As at 31st March,2021
SECURITIES PREMIUM
Opening Balance 472.07 472.07
Add: Transferred during the year 350.28 822.35 - 472.07
GENERAL RESERVE:
Opening Balance 557.89 557.89
Add: Transferred during the year - 557.89 - 557.89
RETAINED EARNINGS
Opening Balance 8,990.64 7,413.51
Less: Adjustment for ROU Recognition (95.73) -
Less: Share issue Expenses (12.05) -
Add: Profit for the year 3,015.51 1,833.10
Add :- Other Comprehensive Income
Remeasurement of Defined Benefit Plan ( Net of Taxes) (60.55) 7.02
Foreign Currency monetary item translation difference account (FCMITDA) (13.66) (46.63)
Less: Appropriations
Loss of disposal of investment (36.86) -
Dividend Paid/Payable (54.09) 11,733.22 (216.36) 8,990.64
TOTAL 13,113.46 10,020.60

i) SECURITIES PREMIUM
Securities Premium represents premium received on equity shares issued, which can be utilised only in accordance with the provisions of
the companies Act,2013 (‘’the Act’’) for specified purposes.
ii) GENERAL RESERVE
The general reserve is created from time to time to transfer profits from retained earnings for appropriations purposes. As the general
reserve is created by a transfer created from one component of equity to another and is not an item of other comprehensive income,
items included in the general reserve will not be reclassified subsequently to profit or loss.
iii) OTHER COMREHENSIVE INCOME
These are actuarial gains/ losses on employee benefit obligations.
iv) DIVIDEND
During the year financial year 2021-22, the Board of Directors has approved payment of Final dividend of Rs 0.35 per equity share of
face value Rs. 2 each. During the previous financial year company has paid an interim dividend of Rs 1.40 per equity share of face value
of Rs .2/- per share.

17 NON CURRENT LIABILITIES - BORROWINGS


(Amount INR Lakhs)
PARTICULARS As at 31st March, 2022 As at 31st March, 2021
Secured
Term Loan from Others - 24.58
Long Term Maturities of Lease Obligations 12.26 -
Un-Secured
Term Loan from Banks 32.57 50.06
TOTAL 44.83 74.64

17.1 Terms of Repayment:


a) Term Loans from others consists of vehicle loans repayable in 36 monthly equal installments.
b) Unsecured Loan facility is avalied in United Kingdom which consists of providing economic benefit to our business including , but not
limited to , working capital or investing in our business, first repayable will be made on the date 13 months from the draw down loan
dated 16.07.2020 after that in 59 months equal installments.
17.2 Security:
Term Loans from others consists of vehicle loans which are secured by hypothecation of Motor Vehicles purchased under the loan.

18 NON-CURRENT LIABILITIES PROVISIONS (Amount INR Lakhs)


PARTICULARS As at 31st March, 2022 As at 31st March, 2021
Provision for Employee Benefits
- Superannuation, Gratuity and Un-availed Leave 4.90 52.17
TOTAL 4.90 52.17

103 Annual Report 2021-22


19 DEFERRED TAX ASSETS/LIABILTIES (DTA/DTL) (Amount INR Lakhs)
PARTICULARS As at 31st March, 2022 As at 31st March, 2021
Defered Tax Liability
Fair Valuation of Derivatives 2.05 5.37
Right to Use Assets 0.24
TOTAL DTL 2.05 5.61
Deferred Tax Assets
Provision of Gratuity & Leave Encashment 38.00 20.98
Provision for Warranty 3.05 3.06
Business loss Carried Forward 58.28 88.59
Other Expense 0.97 2.31
Right to use Assets 20.17 -
Carrying Value of Property, Plant & Equipment and Others 47.42 58.85
TOTAL DTA 167.89 173.79
NET DEFERRED LIABILITIES/(ASSETS) (165.84) (168.18)
i) Income Tax Recognised in Statement of Profit and Loss (Amount INR Lakhs)
Particulars For the year ended For the year ended
31st March 2022 31st March 2021
Current Tax Expenses(A)
Current Year 1,054.87 783.75
Short/(Excess) provision of earlier years 16.33 10.06
Deferred Tax expenses (B)
Origination and reversal of temporary differences 15.81 (60.95)
Tax expense recognized in the income statement (A+B) 1,087.01 732.86
ii) Income tax recognised in other comprehensive income (Amount INR Lakhs)
Particulars For the year ended 31st March 2022 For the year ended 31st March 2021
Before tax Tax (expenses) benefit Net of Tax Before tax Tax (expenses) benefit Net of Tax
Items that will not be
reclassified to profit & loss
Remeasurement of the (48.38) (12.18) (60.56) 5.60 1.41 7.01
defined benefit plans
TOTAL (48.38) (12.18) (60.56) 5.60 1.41 7.01
iii) Reconciliation of Effective Tax Rates (Amount INR Lakhs)
Particulars For the year ended 31st March 2022 For the year ended 31st March 2021
% (Amount INR Lakhs) % (Amount INR Lakhs)
Profit before Tax 4,111.12 2,565.96
Other Comprehensive Income (48.38) 5.60
Tax using the company’s domestic tax rate 25.17% 1,022.59 25.17% 647.26
Tax effect of
Non-deductible tax expenses 1.17% 48.09 2.70% 69.27
(Profit) Loss on sale/discard/impairment of fixed assets 0.00% - -0.05% (1.28)
Short/(Excess) provision of earlier years 0.40% 16.33 0.39% 10.06
Interest on Income Tax 0.00% - 0.29% 7.55
Effective Income Tax rate 26.44% 1,087.01 28.56% 732.86
iv) Movement of Deferred Tax (Assets) & Liabilities (Amount INR Lakhs)
Particulars Balance as Recognised in Recognised Retained Foreign Balance as
on 1st April P&L during in OCI during Earnings Exchange on 31st
2021 2021-22 2021-22 difference March 2022
Property, plant & equipment ( Includes (58.85) 11.79 - - (0.36) (47.42)
Intangible Assets)
Employee benefit-Provision (20.98) (29.20) 12.18 - - (38.00)
Provision for Warranty (3.06) 0.01 - - - (3.05)
Business loss Carried Forward (88.59) 30.65 - - (0.34) (58.28)
Right to use assets 0.24 4.67 - (25.08) - (20.17)
Other Expense (2.31) 1.21 - - 0.13 (0.97)
Fair valuation of derivatives 5.37 (3.32) - - - 2.05
Total (Assets)/Liabilities (Net) (168.18) 15.81 12.18 (25.08) (0.57) (165.84)

Annual Report 2021-22 104


FINANCIAL STATEMENTS

v) Unrecognised Deferred Tax (Assets)/Liabilities


There are no temporary differences on which Deferred Tax (Assets)/Liabilities have not been recognised for the year ended 31st March 2022.

20 CURRENT LIABILITIES - BORROWINGS (Amount INR Lakhs)


PARTICULARS As at 31st March, 2022 As at 31st March, 2021
SECURED
From Banks 1,380.03 1,109.22
Current Maturities of long term borrowings 13.42 33.17
UNSECURED
Current Maturities of long term borrowings 10.50 -
Current Maturities of finance lease obligations - 4.46
TOTAL 1,403.95 1,146.85
20.1 Securities
DBS Bank and Bank of Baroda
a) Hypothecation on the stocks and book debts of the company on Pari Passu basis
b) Equitable Mortgage of Immovable Factory Building, located at Roto House , 13 NSEZ, Noida on Pari Passu basis.
c) Equitable Mortgage of Immovable Factory land and building located at B-14, Phase-II, Extension, Noida on Pari Passu basis.
d) Equitable Mortgage of Immovable Factory land and building located at B-15, Phase-II, Extension, Noida on Pari Passu basis.
21 TRADE PAYABLES (Amount INR Lakhs)
PARTICULARS As at 31st March, 2022 As at 31st March, 2021
Trade Payables to Micro and Small Enterprises (As per the Intimation Received) 218.00 199.83
Trade Payables to Others 1,366.95 1,091.19
TOTAL 1,584.95 1,291.02
Refer to Note no 38 for information about liquidity risk and market risk of trade payables.
DUES TO MICRO AND SMALL ENTERPRISES (AS PER THE INTIMATION RECEIVED FROM SUPPLIERS)
The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act,2006 (MSMED Act).
The disclosure pursuant to said MSMED Act are as follows :
21.1 PARTICULARS As at 31st March, 2022 As at 31st March, 2021
Principal amount due to suppliers and remaining unpaid as at year end 218.00 199.83
Interest due to suppliers and remaining unpaid as at year end - -
Principal amounts paid to suppliers, beyond the appointed day during the year - -
Interest paid , other than under Section 16 of MSMED Act, to suppliers, beyond the - -
appointed day during the year
Interest paid , under Section 16 of MSMED Act, to suppliers, beyond the appointed day - -
during the year
Interest due and payable towards suppliers, for payments already made - -
Further interest remaining due and payable for earlier years - -
21.2 Age wise Outstanding details (Amount INR Lakhs)
Particulars Less Than 1 year 1 to 2 years 2 to 3 Years More than 3 Year Total
i.Due to MSME 218.00 - - - 218.00
ii.Due to Others 1,366.95 - - - 1,366.95
iii.Disputed dues to MSME - - - - -
iv.Disputed dues to Others - - - - -
Total 1,584.95 - - - 1,584.95

22 OTHER FINANCIAL LIABILITIES (Amount INR Lakhs)


PARTICULARS As at 31st March, 2022 As at 31st March, 2021
Unclaimed dividend 15.96 10.60
TOTAL 15.96 10.60

23 OTHER CURRENT LIABILITIES (Amount INR Lakhs)


PARTICULARS As at 31st March, 2022 As at 31st March, 2021
Sales Tax & GST Payable 240.13 178.24
Other Statutory Payable 102.49 125.09
Accured Expenses Payable 175.48 188.67
Dividend Payable - 216.35
Deferred Revenue 476.29 198.15
Advance from Debtors 297.30 352.97
Other Payables 333.43 296.40
TOTAL 1,625.12 1,555.87

23.1 Other payable includes Rs.116.59 lakhs for Capital liability (As at 31st March, 2021: Rs.6.73 lakhs), and Rs.211.10 lakhs on account of
advance from customers (As at 31st March , 2021 : Rs. 349.14 lakhs) and balance on account of other expenses payable.

105 Annual Report 2021-22


24 PROVISIONS (Amount INR Lakhs)
PARTICULARS As at 31st March, 2022 As at 31st March, 2021
Provision for Employee Benefits
- Superannuation, Gratuity and Un-availed Leave 67.04 78.97
Provision for Warranty 12.98 13.02
Provision for Doubtful Capital Advance 79.73 79.73
TOTAL 159.75 171.72

25 CURRENT TAX LIABILITIES (NET) (Amount INR Lakhs)


PARTICULARS As at 31st March, 2022 As at 31st March, 2021
Provision for Income tax 1,078.79 773.47
TOTAL 1,078.79 773.47

26 REVENUE FROM OPERATIONS (Amount INR Lakhs)


PARTICULARS Year Ended 31st March, 2022 Year Ended 31st March, 2021
Sale of Products
Pumps 6,843.86 5,943.26
Spares 10,559.45 17,403.31 6,649.56 12,592.82
Sale of Services
Services - Repair & Maintenance 25.54 9.44
Services - Commissioning & Installation 0.24 25.78 1.08 10.52
Other Operating Revenue 129.67 49.34
GROSS REVENUE FROM OPERATIONS 17,558.76 12,652.68
i) In accordance with the Accounting Standard-18 Revenue Recognition and Schedule III of the Companies Act 2013, GST is not the part
of Revenue therefore the sales amount is net of GST.
26.1 PARTICULARS OF REVENUE FROM OPERATIONS (Amount INR Lakhs)
Particulars Year Ended 31st March, 2022 Year Ended 31st March, 2021
DOMESTIC
Sale of Products
-Pumps 2,670.70 1,893.46
-Spares 2,307.03 4,977.73 1,816.23 3,709.69
Sales of Services
- Services- Repairs & Maintenance 8.01 5.49
- Services- Commissioning & Installation 0.24 8.25 1.08 6.57
Other Operating Revenue 129.67 49.34
5,115.65 3,765.60
EXPORT
Sales of Products
-Pumps 4,173.16 4,049.80
-Spares 8,252.42 12,425.58 4,833.34 8,883.14
Sales of Services
- Services- Repairs & Maintenance 17.53 3.94
- Services- Commissioning & Installation - 17.53 - 3.94
12,443.11 8,887.08
TOTAL 17,558.76 12,652.68

27 OTHER INCOME (Amount INR Lakhs)


PARTICULARS Year Ended 31st March, 2022 Year Ended 31st March, 2021
Interest Income
- On Bank Deposits 110.33 61.63
- Others 0.94 111.27 0.69 62.32
Foreign Exchange Diff. - Foreign Operations & Others 77.27 147.72
Profit on Sale/Impairment of Fixed Assets 1.12 5.09
Allowance for doubtful trade receivables - 3.66
Gain on Valuation of Derivative - 35.01
Baddebts Written off Recovered 62.76 42.36
Export Benefit Entitlements 158.23 131.81
Cash flow boost Subsidy - 58.22
Misc. Credit Balances Written Off - 5.87
Miscellaneous Receipts 22.73 15.01
TOTAL 433.38 507.07

Annual Report 2021-22 106


FINANCIAL STATEMENTS

28 COST OF MATERIALS CONSUMED (Amount INR Lakhs)


PARTICULARS Year Ended 31st March, 2022 Year Ended 31st March, 2021
i) RAW MATERIALS CONSUMED
Opening Stock 315.53 285.05
Add: Purchases & Expenses thereon 2,740.16 1,398.77
Less: Closing Stock 422.41 2,633.28 315.53 1,368.29
ii) BOUGHT OUT COMPONENTS CONSUMED
Opening Stock 287.35 396.28
Add: Purchases & Expenses thereon 3,377.91 2,544.07
Less: Closing Stock 277.42 3,387.84 287.35 2,653.00
iii) CONSUMABLE STORES AND SPARES
Opening Stock 15.18 23.88
Add: Purchases & Expenses thereon 203.72 110.56
Less: Closing Stock 18.34 200.56 15.18 119.26
TOTAL 6,221.68 4,140.55

28.1 Particulars of Material Consumed (Amount INR Lakhs)


Particulars Year Ended 31st March, 2022 Year Ended 31st March, 2021
Mild Steel 127.62 67.57
Steel (SS & Alloy) 979.50 701.96
Iron & Metal Castings 578.29 226.77
Rubber & Chemicals 451.51 148.00
Pipes 309.06 120.57
Bought Out Components 3,387.85 2,653.00
Freight, Cartage, Clearing & Insurance 187.29 103.42
Consumables Store & Spares 200.56 119.26
TOTAL 6,221.68 4,140.55

29 CHANGE IN INVENTORIES OF FINISHED GOODS & WORK IN PROGRESS (Amount INR Lakhs)
PARTICULARS Year Ended 31st March, 2022 Year Ended 31st March, 2021
OPENING STOCK:
Finished Goods 2,258.45 2,283.02
Work in Progress 168.88 129.64
Scrap & Wastage 0.62 2,427.95 1.90 2,414.56
LESS: CLOSING STOCK:
Finished Goods 2,828.88 2,258.45
Work in Progress 214.77 168.88
Scrap & Wastage 0.11 3,043.76 0.62 2,427.95
Net Change in Inventories (615.81) (13.39)

30 EMPLOYEE BENEFITS EXPENSE (Amount INR Lakhs)


PARTICULARS Year Ended 31st March, 2022 Year Ended 31st March, 2021
Wages, Salary, Bonus Gratuity & Other Allowances 3,484.30 2,775.37
Contribution to Provident & Other Funds 253.39 217.64
Directors’ Remuneration 486.28 397.14
Workmen & Staff Welfare 145.05 103.16
TOTAL 4,369.02 3,493.31
i) Contribution to Provident and other funds includes contribution to Provident fund for directors Rs.22.50 lakhs (As at 31st March, 2021:
Rs.26.47 lakhs )

107 Annual Report 2021-22


31 FINANCE COST (Amount INR Lakhs)
PARTICULARS Year Ended 31st March, 2022 Year Ended 31st March, 2021
INTEREST :
On Term Loans 1.33 8.14
On Others borrowings 76.94 20.96
Interest on Lease Liabilities 75.75 2.01
TOTAL 154.03 31.11

32 DEPRECIATION & AMORTISATION EXPENSE (Amount INR Lakhs)


PARTICULARS Year Ended 31st March, 2022 Year Ended 31st March, 2021
Depreciation on Property,plant & equipment 516.66 576.92
Depreciation on Right-of-use Assets 117.19 12.12
Amortisation of Intangible assets 5.83 14.34
TOTAL 639.68 603.38

33 OTHER EXPENSES (Amount INR Lakhs)


PARTICULARS As at 31st March, 2022 As at 31st March, 2021
Power & Fuel 192.61 124.09
Machining & Electroplating 226.99 117.07
Tools 86.09 54.12
Repairs :
Building 42.22 34.72
Plant & Machinery 91.07 70.47
Others 31.26 21.83
Insurance Charges 41.76 43.92
Travelling & Conveyance 247.01 123.29
Postage & Telephone 61.61 55.13
Professional & Consultancy 239.49 154.42
Vehicle Running & Maintenance 114.57 67.15
Rent 70.74 174.19
Rates & Taxes 33.29 17.95
Directors’ Sitting Fees 6.90 8.20
Payment to Auditors :
Audit Fee 24.53 15.49
Tax Audit & Transfer Pricing Audit Fee 2.00 2.00
Foreign Branch Audit Fee 8.49 8.54
Cost Audit Fee 1.00 0.80
Out of Pocket Expenses 1.04 1.00
Packing & Forwarding Expenses 802.50 554.99
Commission & Discount 10.11 -
Advertisement & Publicity 120.25 49.39
Bad Debts 28.85 142.77
Loss on fair valuation of derivative 13.17 -
CSR Expenditure 28.09 21.55
Testing & Inspection Expenses 17.51 20.00
Bank Charges & Commission 66.90 89.59
Guards & Security Expenses 54.11 44.98
EDP Expenses 120.49 95.12
Claim & Free Replacement 15.79 2.82
Printing & Stationery Expenses 31.03 21.43
Donations 0.22 10.77
Miscellaneous Expenses 280.73 191.04
TOTAL 3,112.42 2,338.83

34 Earning per share Amount in INR lakhs


Particulars Year Ended 31st March, 2022 Year Ended 31st March, 2021
Profit attributable to equity holders of the Company for basic 3,024.11 1,833.10
and diluted earnings per share
Number of Equity Shares 1,57,03,805 1,54,53,805
Face Value per Share 2 2
Weighted average number of shares at the end of the year for 1,54,97,641 1,54,53,805
basic and diluted earnings per share
Basic and Diluted Earning per Shares 19.51 11.86

Annual Report 2021-22 108


FINANCIAL STATEMENTS

35 Contingent Liabilities & Commitments


35.1 Contingent Liabilities Amount in INR lakhs
Particulars As at 31st March, 2022 As at 31st March, 2021
i) Disputed Sales Tax-Cases - 7.71
ii) Bank Guarantees/Letter of Credit 757.62 615.53
iii) Corporate Guarantees 112.05 42.13
iv) Labour Cases 61.08 68.94
v) Income tax cases 75.49 -
vi) DGFT/custom Authority against EPCG licences 270.18 -
35.2 Commitments
a) Capital Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for INR 2,139.08 Lakhs (As at 31st March
2021 : INR 2,121.86 Lakh)
b) Financial Guarantee
Term Deposits with Bank of India, Janpath Branch amounting to INR 287.35 lakhs (As at 31st March 2021 : INR 197.97 lakhs), Term Deposit
with Bank of Baroda, Janpath Branch, New Delhi amounting to INR 116.11 lakhs ( Previous year NA) and Term Deposit with DBS Bank India
Limited,Sector 63,Gautam Budh Nagar, Noida amounting to INR110.00 lakhs (As at 31st March 2021: INR 60.00 lakhs) are pledged with
respective Banks as Margin on Bank Guarantees, Letter of Credit and Foreign bills purchased by them.

36 Capital Management
The Company’s policy is to maintain a strong capital base so as to ensure that the Company is able to continue as going concern to sustain
future development of the business. The capital structure of the Company is based on management’s judgement of its strategic and day-to-
day needs with a focus on total equity so as to maintain investor, creditors and market conditions. The policy is also adjusted based on
underlying macro-economic factors affecting business environment, financial and market conditions.Its guiding Principles are as below:-
i) Maintenance of financial strength to ensure the highest ratings;
ii) Ensure financial flexibility and diversify sources at financing;
iii) Manage Company exposure in forex to mitigate risks to earnings;
iv) Leverage optimally in order to maximum shareholders returns while maintaining strength and flexibility of the balance sheet.
The Gearing Ratio at the end of the reporting period are as under : Amount in INR lakhs
Particulars As at 31st March, 2022 As at 31st March, 2021
Borrowings 1,448.78 1,221.49
Less :- Cash & Bank balances 1,940.36 3,223.67
Net debts (491.58) (2,002.18)
Total Equity 13,497.24 10,329.68
Net Debts to Equity ratio -3.64% -19.38%

37 Financial Instruments
a) Fair value measurement hierarchy: Amount in INR lakhs
As at 31st March, 2022
Particulars Level of input used in
Carrying amount
Level 1 Level 2 Level 3
Financial assets
At FVTPL
Derivative contracts 8.14 - 8.14 -
At FVTOCI
At Amortized cost
Trade receivables 4,321.14 - - -
Cash and cash equivalents 1,940.36 - - -
Bank balances other than above 939.05 - - -
Other financial assets 419.23 - - -
Financial liabilities
At FVTPL
Derivative contracts - - - -
At Amortized cost
Borrowings 1,448.78 - - -
Trade payables 1,584.95 - - -
Lease Liabilities 1,945.46 - - -
Other Financial liabilities 15.96 - - -

Amount in INR lakhs

109 Annual Report 2021-22


As at 31st March, 2021
Particulars
Level of input used in
Carrying amount
Level 1 Level 2 Level 3
Financial assets
At FVTPL
Derivative contracts 21.32 - 21.32 -
At FVTOCI
At Amortized cost
Trade receivables 2,607.20 - - -
Cash and cash equivalents 3,223.67 - - -
Bank balances other than above 315.29 - - -
Other financial assets 258.74 - - -
Financial liabilities
At FVTPL
Derivative contracts - -
At Amortized cost
Borrowings 1,221.49 - - -
Trade payables 1,291.02 - - -
Lease Liabilities 23.54
Other Financial liabilities 10.60 - - -
FVTPL :- Fair Value through Profit & Loss A/c.
FVTOCI :- Fair Value through Other Comprehensive Income
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the
fair values are consistent with those used for the year ended 31st March, 2022.
The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as described below:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair
value an instrument are observable, the instrument is included in level 2. In the case of Derivative contracts, the Company has valued the
same using the forward exchange rate as at the reporting date.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
b) ‘Calculation of fair values:
i) Financial assets and liabilities measured at fair value as at Balance Sheet date:
The fair values of the derivative financial instruments has been determined using valuation techniques with market observable inputs. The
models incorporate various inputs including the credit quality of counter-parties and foreign exchange forward rates.
ii) Other financial assets and liabilities:-
-Cash and cash equivalents , trade receivables, other financial assets (except derivative financial instruments), trade payables, and other
financial liabilities (except derivative financial instruments) have fair values that approximate to their carrying amounts due to their short-
term nature.
-Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash
flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

38 Financial Risk Management


Risk Management framework and policies
The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The
Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework.
The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company’s risk
management policies. The Company’s risk management policies are established to identify and analyze the risks faced by the Company,
to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the
policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.
The Company has exposure to the following risks arising from financial instruments:
A) Credit Risk
B) Liquidity Risk
C) Market Risk
D) Interest Rate Risk
The table below explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the
financial statements:-
Risk Exposure arising from Measurement Management
Credit Risk Trade receivables, cash and cash equivalents and Credit ratings No of overdue days
derivative financial instruments Ageing Analysis
Liquidity Risk Other liabilities Maturity Maintaining sufficient cash/ cash
Analysis equivalents and marketable securities.
Market Risk - Foreign Highly probable forecast transactions and financial Sensitivity Forward foreign exchange contracts
Exchange assets and liabilities not denominated in INR Analysis

Annual Report 2021-22 110


FINANCIAL STATEMENTS

A) Credit Risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit
Risk arises from credit exposures from customers, cash and cash equivalent with banks, security deposits and loans.
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the
customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed through
credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants
credit terms in the normal course of business.The Company uses an allowance matrix to measure the expected credit losses of trade
receivables.The loss rates are computed using a ‘roll rate’ method based on the probability of receivable progressing through successive
stages of delinquency to write off.
The following table provides information about the exposure to credit risk and ECLs for trade receivables:
Ageing of Trade Receivables Amount in INR Lakhs
Particulars As at 31st March, 2022 As at 31st March, 2021
Not due 2,954.29 1,985.01
0-3 months 1,075.23 523.07
3-6 months 195.11 80.11
6-12 months 55.00 17.65
beyond 12 months 41.51 1.36
TOTAL 4,321.14 2,608.20
Expected Credit Loss - -
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
The derivative contracts are entered into with scheduled banks which have good credit ratings.
B) Liquidity Risk
Liquidity Risk is the risk that a company could encounter if it faces difficulty in meeting the obligations associated with financial liabilities
by delivering cash and other financial asset or the risk that the Company will face difficulty in raising financial resources required to fullfill
its commitments.The Company’s exposure to liquidity risk is very minimal as it has a prudent liquidity risk management process in place
which ensures maintaining adequate cash and marketable securities to pay its liabilities when they are due.To ensure continuity of funding
, the Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities , by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Exposure to Liquidity Risk Amount in INR Lakhs
As at 31st March, 2022
Particulars Carrying amount
Within one Year One to five years More than five years Total
Non-derivative financial liabilities
Borrowings 1,403.95 44.83 - 1,448.78
Trade Payables 1,584.95 - - 1,584.95
Lease Liabilties 96.15 1,037.92 811.39 1,945.46
Other financial liabilities 15.96 - - 15.96
Derivative financial liabilities
Foreign exchange forward contract - - - -
TOTAL 3,101.01 1,082.75 811.39 4,995.15

Amount in INR Lakhs


As at 31st March, 2021
Particulars Carrying amount
Within one Year One to five years More than five years Total
Non-derivative financial liabilities
Borrowings 1,146.85 71.30 3.34 1,221.49
Trade Payables 1,291.01 - - 1,291.01
Lease Laibilities 4.95 18.59 - 23.54
Other financial liabilities 10.60 - - 10.60
Derivative financial liabilities
Foreign exchange forward contract - - - -
TOTAL 2,453.41 89.89 3.34 2,546.64

C) Market Risk
The Company operates internationally and a major portion of the business is transacted in several currencies. Consequently the company
is exposed to foreign exchange risk through its sales and services in the US and elsewhere, and purchases from the overseas suppliers in
various foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward contract to mitigate the
risk of changes in exchange rates on foreign currency exposure. The exchange rate between rupee and foreign currency has changed
substantially in recent years and may fluctuate substantially in future. Consequently ,the results of the Company’s operation are adversely
affected as the rupee appreciates/ depreciates against these currencies.
The Company exposure to foreign currency risk in respect of major currencies is given below: w

111 Annual Report 2021-22


Particulars As at 31st March, 2022 As at 31st March, 2021
Trade Payables
USD - 8.64
EURO 47.73 -
Trade Receivables
USD 1,238.56 820.97
EURO 1,456.34 649.55
Other Assets (Net)
GBP 1,689.54 1,815.62
AUD 1,188.88 1,131.06
USD 667.94 457.80
AED 2.01 -
EURO 223.64 143.39
SGD 784.57 556.96
Other Current Assets
USD 0.41 -
GBP - 1.57
EURO 100.48 1.24
Other Current Liabilities
USD 55.19 171.06
EURO - 148.36
Net Exposure
USD 1,851.72 1,099.07
EURO 1,732.73 645.82
GBP 1,689.54 1,817.19
AED 2.01 -
AUD 1,188.88 1,131.06
SGD 784.57 556.96

Foreign Currency sensitivity


The sensitivity of profit or loss to changes in the exchange rate arises mainly from foreign currency denominated financial instruments.The
sensitivity to variations in respect of major currencies is given below.This analysis assumes that all other variables remain constant.
Particulars As at 31st March, 2022 As at 31st March, 2021
USD - Increase by 5% 92.59 54.95
USD - Decrease by 5% (92.59) (54.95)
EURO - Increase by 5% 86.64 32.29
EURO - Decrease by 5% (86.64) (32.29)
GBP - Increase by 5% 84.48 92.86
GBP - Decrease by 5% (84.48) (92.86)
AUD - Increase by 5% 59.44 56.55
AUD - Decrease by 5% (59.44) (56.55)
AED - Increase by 5% 0.10 -
AED - Decrease by 5% (0.10) -
SGD - Increase by 5% 39.23 27.85
SGD - Decrease by 5% (39.23) (27.85)
The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage
its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day
and one year. The above sensitivity does not include the impact of foreign currency forward contracts which largely mitigate the risk.
Forward Foreign Exchange Contracts
The Company has entered into short term Forward Exchange Contracts, being derivative instruments for hedge purposes and not intended
for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of
certain receivables. For the fair Value (Marked to Market) of foreign currency derivative contracts outstanding refer to Note No 13.
D) Interest Rate Risk
Interest Rate risk can be the cash flow interest rate risk.Cash flow interest rate risk is the risk that the future cash flows of floating interest
bearing instruments will fluctuate because of fluctuations in market interest rates.
39 Related Party Disclosure

Annual Report 2021-22 112


FINANCIAL STATEMENTS

39.1 Remuneration paid to Key Managerial Personnel Amount in INR lakhs


Nature of Transaction-Gross Salary
Name Designation
Year ended 31st March 2022 Year ended 31st March 2021
Mr. Harish Chandra Gupta Chairman & Managing Director 164.76 132.87
Mr. Anurag Gupta Jt.Managing Director 106.65 88.83
Mr.Arvind Veer Gupta Dy.Managing Director 104.93 87.45
Mr. Shah Deepak Director 0.83 0.81
Mr Krishnamurthy Padmanabhan Director 60.49 49.38
Mr. Ravin Munsook Sewnarain Director 48.63 37.75
Mr Pardeep Jain Chief Financial Officer 27.49 24.98
Mr.Ashwani Kumar Verma Company Secretary 21.04 18.90
As the provision for the defined benefits obligations such as Gratuity & Leave Encashment are provided on an actuarial valuation basis for
the Employees of the Company in India, the amount pertaining to Key Managerial Personnel is not ascertainable and therefore not
included in the above remuneration. Payments made towards Leave Encashment as per policy of the Company are included in the
remuneration as and when paid. No such payment is made during the current financial year.

39.2 Sitting Fees Paid to Non-Executive Directors Amount in INR lakhs


Name Designation Year ended 31st March 2022 Year ended 31st March 2021
Dr. Ramesh Chandra Vaish Independent Director 1.40 1.60
Mr. Anand Bordia Independent Director 1.50 1.80
Mrs.Asha Gupta Non-Executive Director 1.30 1.70
Mr. Basant Seth Independent Director 1.50 1.80
Mr. Akhil Joshi Independent Director 1.20 1.30
Shares issued to Key Managerial Personnel Amount in INR lakhs
Name Designation Details Year ended 31st March 2022 Year ended 31st March 2021
Share Share Total
Capital Premium
Mr. Harish Chairman & 62500 Equity Shares of face value 1.25 87.57 88.82 -
Chandra Gupta Managing Director of ` 2/- per share issued at a
premium ` 140.11 per share
Mr. Anurag Jt.Managing 125000 Equity Shares of face value 2.50 175.14 177.64 -
Gupta Director of ` 2/- per share issued at a
premium ` 140.11 per share
Mr.Arvind Veer Dy.Managing 62500 Equity Shares of face value 1.25 87.57 88.82 -
Gupta Director of ` 2/- per share issued at a
premium ` 140.11 per share
Loans form Directors Amount in INR lakhs
Name Designation Loan Taken Loan Repay Outstanding as on 31.03.2022
Mr. Harish Chandra Gupta Chairman & Managing Director 22.25 22.25 -
Mr. Anurag Gupta Jt.Managing Director 44.50 44.50 -
Mr.Arvind Veer Gupta Dy.Managing Director 22.25 22.25 -
During the year, Roto Overseas Pte Ltd (wholly owned subsidiary of Roto Pumps Ltd in Singapore) sold 25% stake of its wholly owned
subsidiary Roto Pumps (Africa) Pty Ltd to Mr Ravin Munsook Sewnarain (Director of Roto Pumps (Africa) Pty Ltd ) for Rand 500,000.

40 Employees Benefit
a) Defined Contribution Plan
Contribution to Defined Contribution Plan ( Other than foreign Subsidaries), recognised are charged off for the year are as under:
Amount in INR lakhs
Particulars Year ended 31st March 2022 Year ended 31st March 2021
Employer’s Contribution to Provident fund 99.87 98.01
Employer’s Contribution to Superannuation/NIC at foreign branches 77.83 58.38

b) Defined Benefit Plan


The present value of the defined benefit plan and related current service cost (other than foreign branches and subsidaries) were measured
using the Projected unit credit method, with actuarial valuation being carried out at each Balance Sheet date.

113 Annual Report 2021-22


Investment Risk The Present Value of the defined benefit plan liability is calculated using a discount rate determined by reference to
government bond yields. If the return on plan asset is below this rate, it will create a plan deficit.
Interest Risk A decrease in the bond interest rate will increase the plan liability.However, this will be partially offset by an increase
in the return on the plan’s debt investments.
Longevity Risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality
of plan participants during the employment.
Salary Escalation The Gratuity and Leave Encashment benefits, being based on last drawn salary, will be substantially effected in case
Risk of increase in future salaries being more than assumed.
Sensitivity Analysis :
Significant acturial assumption for the determination of the defined benefit obligation are discount rate and expected salary increase rate.
Effect of change in mortality rate is negligible .The Sensitivity analysis presented below may not be representative of the actual change in
the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the
assumptions may be correlated. The results of sensitivity analysis are given below :
Amount in INR lakhs
As at 31st March 2022
Gratuity Leave Encashment
Particulars
Amount % Amount %
Defined Benefit Obligation (Base) 340.01 100.87
Liability with 1% increase in Discount Rate 318.14 -6.43% 93.44 -7.36%
Liability with 1% decrease in Discount Rate 364.64 7.24% 109.37 8.43%
Liability with 1% increase in Salary Growth 364.07 7.08% 109.41 8.47%
Liability with 1% decrease in Salary Growth 318.32 -6.38% 93.28 -7.52%
Liability with 1% increase in Withdrawal Rate 341.59 0.47% 101.68 0.81%
Liability with 1% decrease in Withdrawal Rate 338.21 -0.53% 99.95 -0.90%

In respect of Employees in India Amount in INR lakhs


Gratuity (Funded) Leave Encashment (Funded)
Particulars As at 31st As at 31st As at 31st As at 31st
March 2022 March 2021 March 2022 March 2021
The principle assumptions used in actuarial valuation
-Discount rate 7.25% 7.00% 7.25% 7.00%
-Expected rate on return of assets ( per annum) 7.25% 7.00% 7.25% 7.00%
-Expected rate of future salary increase 5.75% 5.75% 5.75% 5.75%
-Withdrawal Rate (per annum) 5.00% 5.00% 5.00% 5.00%
Change in Present value of Obligation
-Present value of obligation as at the beginning of the year 284.68 307.71 108.99 98.64
-Interest Costs 20.64 21.54 7.90 6.90
-Current Service Cost 24.85 23.23 15.68 16.03
-Past Service Cost( vested benefit) - -
-Benefits Paid (10.25) (45.26) (58.30) (26.62)
-Actuarial (Gain) / Loss on obligations 20.09 (22.54) 26.60 14.04
-Unpaid Liability - - - -
-Present value of obligation as at end of the year 340.01 284.68 100.87 108.99
Change in fair value of Plan Assets
Fair Value of Plan Assets at the beginning of the period 254.40 268.72 96.39 87.64
Expected Return on Plan Assets 18.44 18.81 6.99 6.13
Contributions 76.56 14.55 38.00 11.00
Benefit Paid (10.25) (45.26) (5.87) (7.91)
Actuarial Gain/(Loss) on Plan Assets (1.37) (2.42) (0.32) (0.47)
Fair Value of Plan Assets at the end of the period 337.78 254.40 135.19 96.39
Actual Return on Plan Assets
Expected Return on Plan Assets 18.44 18.81 6.99 6.13
Actuarial Gains/(Losses) on Plan Assets (1.37) (2.42) (0.32) (0.47)
Actual Return on Plan Assets 17.07 16.39 6.67 5.66
Liability Recognised in balance Sheet
-Present value of obligation as at end of the year (340.01) (284.68) (100.87) (108.99)
-Fair value of plan assets as at the end of the year 337.78 254.40 135.19 96.39
-Unfunded status - - - -
-Unrecognised Actuarial (Gain)/Loss - - - -
Net Assets/ (Liability) recognised in Balance Sheet (2.23) (30.28) 34.32 (12.60)
Expenses recognised in Profit and Loss Account
-Current Service Cost 24.85 23.23 15.68 16.03
-Interest Costs 20.64 21.54 7.90 6.90
-Expected Return on Plan assets (18.44) (18.81) (6.99) (6.13)
-Past Service Cost( vested benefit) Recognised - - - -
-Net Actuarial (Gain)/ Loss recognised during the year 21.46 (20.12) 26.92 14.52
Total Expenses recognised in Profit and Loss a/c 48.51 5.84 43.51 31.32
Annual Report 2021-22 114
FINANCIAL STATEMENTS

41 CSR Expenditure
a) Amount spent/unspent during the year Amount in INR lakhs
Year ended 31st March 2022 Year ended 31st March 2021
Particulars
Spent Un-spent Total Spent Un-spent Total
CSR Expenditure 28.02 0.07 28.09 8.00 13.55 21.55
b) An amount of INR 11.02 Lakhs for the financial year 2017-18 committed towards a CSR project to Round Table India Trust is yet to be paid.
c) Out of unspent amount of INR 13.38 Lakhs for the financial year 2019-20, INR 11.00 Lakhs has been paid to the Prime Minister’s Citizen
Assistance and Relief and balance INR 2.38 Lakhs is committed towards a CSR project to Round Table India Trust is yet to be paid.
d) Unspent amount of INR 0.07 Lakhs for the financial year 2021-22 is yet to be paid.

42 Additional Information as required under Schedule III of the Companies Act 2013, of enterprises consolidated as wholly owned
Subsidiary.
Amount in INR lakhs
As at 31st March 2022
Name of entity in the group Net Assets i.e Total Assets minus Total Liabilities Share in Profit for the year
As % of consolidated net assets Amount As % of consolidated profit for the year Amount
Parent
Roto Pumps Limited 103.83% 14,014.12 86.79% 2,624.68
Foreign Subsidaries
Roto Pumpen GmbH 1.65% 222.79 2.82% 85.41
Roto Pumps Americas Inc. 4.94% 666.96 6.54% 197.69
Roto Overseas Pte.Ltd 5.81% 784.57 5.91% 178.75
Roto Energy Systems Limited 1.46% 196.66 -0.44% (13.34)
Total Eliminations -17.69% (2,387.87) -1.62% (49.06)
TOTAL 100.00% 13,497.23 100.00% 3,024.13

Amount in INR lakhs


As at 31st March 2021
Name of entity in the group Net Assets i.e Total Assets minus Total Liabilities Share in Profit for the year
As % of consolidated net assets Amount As % of consolidated profit for the year Amount
Parent
Roto Pumps Limited 108.97% 11,256.58 105.93% 1,941.74
Foreign Subsidaries
Roto Pumpen GmbH 1.38% 142.52 -1.20% (22.04)
Roto Pumps Americas Inc. 4.38% 452.78 6.87% 126.00
Roto Overseas Pte.Ltd 5.75% 593.62 1.23% 22.54
Total Eliminations -20.48% (2,115.82) -12.83% (235.14)
TOTAL 100.00% 10,329.68 100.00% 1,833.10

43 The Company’s operations predominantly comprises of only one segment- Pumps & Spares, therefore operationaly segment reporting
does not apply.

44 During the financial year, the Board of Directors of the Company at its meeting held on 26th May 2022 had approved payment of an Final
dividend at rate of INR2.85 per equity share of face value INR 2/- each on 15703805 equity shares.

45 The Company has not entered into any transactions with the Companies struck off under section 248 of the Companies Act 2013 or
Section 560 of Companies Act 1956.

46 Ratio Analysis and its elements (All amounts in lakhs, unless otherwise stated)
Particulars March 31,2022 March 31,2021
1 Current Ratios Ratios Ratios
(Current Assets / Current Liabilities) 2.28 2.22
Current Assets 13,617 11,021
Current Liabilties 5,965 4,954
2 Debt- Equity Ratio
[(Long term borrowing including current maturities + short term borrowing) / Share holder’s equity] 0.11 0.12
Long Term Borrowings 45 75
Short Term Borrowings 1,404 1,147
Share holder’s equity 13,497 10,330
3 Debt Service Coverage ratio
[(Earnings before interest, depreciation, tax and exceptional items) / (Interest expense on short term 46.11 47.75
and long term borrowings + scheduled principal repayment of long term borrowing during the year)]
Profit before Tax 4,111 2,566
Depreciation (Except Depreciation in ROU) 522 591
Interest expense on short term and long term borrowings 78 29
Scheduled principal repayment of long term borrowing during the year 24 38
*Reason: There is signifact change/impact due to increase in utilisation of working capital limit during the year

115 Annual Report 2021-22


4 Return on Equity ratio
(Net Profits after taxes / Average Shareholder’s Equity) 0.25 0.19
Profit after tax 3,024 1,833
Equity 314 309
Other Equity 13,113 10,021
Opening Shareholder’s Equity) 10,330 8,443
Average Shareholder’s Equity 11,879 9,541
5 Inventory Turnover ratio
(Net Sales / Average inventories ) 4.99 3.98
Net Sales of Goods 17,403 12,593
Average Inventories 3,490 3,162
6 Trade Receivable Turnover Ratio
(Revenue from contract with customers / Average trade receivables) 5.07 5.03
Net Sales of Goods and Services 17,559 12,653
Average trade receivables 3,464 2,513
7 Trade Payable Turnover Ratio
(Net Credit Purchase / Average trade payable ) 4.40 3.47
Net Credit Purchases 6,322 4,053
Average Trade Payable 1,438 1,170
8 Net Capital Turnover Ratio
(Revenue from contract with customers / Average working capital) 0.48 0.44
Net Sales of Goods and Services 17,559 12,653
Opening Working Capital 6,066 4,161
Closing Working Capital 7,653 6,066
9 Net Profit ratio
(Profit / (loss) for the period / Revenue from operations) 0.17 0.14
Net Profit after Tax 2,950 1,793
Net Sales of Goods and Services 17,559 12,653
10 Return on Capital Employed
(Earnings before interest and taxes / Average capital employed) 0.32 0.24
Profit Before Tax 4,111 2,566
Interest on Loan 78 29
Opening Capital Employed 11,551 10,379
Closing Capital Employed 14,946 11,551
11 Return on Investment
Net Income / Cost of Investment N/A N/A

47 Previous Year’s figures have been re-grouped/re-arranged wherever necessary to render them comparable with the current year’s figures
and better disclosure requirements.

48 Figures have been rounded off to the INR Lakhs. Amounts appearing as zero “0” in financial are below the rounding off norm adopted by
the Company

For and on behalf of the Board


As per our report of even date.
For R.N Marwah & Co LLP (HARISH CHANDRA GUPTA) (ANURAG GUPTA)
Chartered Accountants Chairman & Managing Director Jt. Manging Director
(Registration No.0001211N/N500019) (DIN : 00334405) (DIN : 00334160)

(Manoj Gupta) (PRADEEP JAIN) (ASHWANI K VERMA)


PARTNER Chief Financial Officer Company Secretary
Membership No.096776 (PAN : AAEPJ6827A) (M.No : F9296)

PLACE: Noida
DATE : 26.05.2022

Annual Report 2021-22 116


Email: investors@rotopumps.com

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