Annual Report 2017-18
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Annual Report 2017-18 Our Journey Towards Excellence Turkey Ghana Nigeria India South Africa Australia Zambia Our products are endorsed by leading Indian and global companies Empowering lives of We conduct our beneficiaries with our operations across social commitments multiple manufacturing facilities with high safety standards We have world’s largest manufacturing 24.37 facility for Packaged Explosives Guidance Section 20.61 Control Section We have set up integrated facilities to Armament Section 18.09 EPS manufacture Rockets Propulsion Section and Missiles Wing Fin Forward-Looking Statements We have exercised utmost care in the preparation Contents of this report. It contains forecasts and/or information relating to forecasts. Forecasts are based on facts, expectations, and/or past figures. As with all forward-looking statements, forecasts are connected with known and unknown uncertainties, which may mean the actual result deviate significantly from the forecast. Our Journey Towards Excellence 02 Forecasts prepared by the third parties, or data or evaluations used by third parties and mentioned Solarism the passion! 04 in this communication, may be inappropriate, incomplete, or falsified. We cannot assess whether Solar today 06 information in this report has been taken from third parties, or these provide the basis of our own Solar by 2020 07 evaluations, such use is made known in this report. As a result of the abovementioned circumstances, Chairman’s Message 08 we can provide no warranty regarding the Corporate correctness, completeness, and upto-date nature Adding value to our shareholders 10 of information taken, and declared as being taken, Overview from third parties, as well as for forward-looking Transforming for a better tomorrow 12 statements, irrespective of whether these derive from third parties or ourselves. Readers should People at the forefront 14 keep this in mind. We undertake no obligation to publicly update any forward-looking statements, Long-term impact for community 16 whether as a result of new information, future events or otherwise. Board of Directors 18 Corporate information 19 Management Discussion & Analysis 20 Director’s Report 30 Statutory Report on Corporate Governance 56 Reports Business Responsibility Report 78 Independent Auditor’s Report 88 Balance Sheet 94 Statement of Profit and Loss 95 Statement of Cash Flows 96 Statement of Changes in Equity 98 Notes to Financial Statements 100 Financial Consolidated Independent Auditor’s Report 148 Statements Consolidated Balance Sheet 152 Consolidated Statement of Profit & Loss 153 Consolidated Statement of Cash Flows 154 Consolidated Statement of Changes in Equity 156 Notes to Consolidated Financial Statements 158 This Report is also available online on 209 Notice www.solargroup.com Creating value For customers For our people Over decades we have earned the Employee benefit expenses Trust of our customers by delivering H133.48 Crores Quality in FY 2017-18 products that meet their requirements Developed strong safety procedures helping us register Our products are now consumed in 12.20 countries million hours 51 globally with of accident free man manufacturing facilities in hours as on March 31, 2018 5 countries For our investors Since being listed, we have delivered a total For our community and government shareholder return of We contributed % H229.71 Crores 1230 to exchequer in last three years We have paid dividends continuously for last We have spent 12 years, H11.69 Crores with a total dividend payout of on corporate social responsibility activities in last three years H219.86 Crores till date Our company has received AA/P1+ CRISIL Rating (Positive Outlook) 02 Solar Industries India Limited Our journey towards excellence has been at an impressive pace. And now we intend to accelerate it. 15 7 3 Additions Made years years years 1996-2010 2011-2017 2018-2020E* Gross block (H in Cr) 151 772 875 Production Countries 2 3 5 Consumer Countries 15 27 20 * Expected Overview of Defence site 23rd Annual Report 2017-18 Corporate Overview Statutory Reports 03 Financial Statements The Big ones need to be invested for a resounding impact... As we look at our performances, it’s the enduring successes that stand out. We delivered products that have been par excellence. We made strategic investments towards our own and country’s self reliance capabilities. We consolidated our presence across our markets, and in the process, we provided true value to all our stakeholders. Driven by the principle of adhering to our commitments to our clients, employees, shareholders and the extended society, we delivered a commendable performance, which in turn inspires us to take strides towards our vision for FY 2020. 04 Solar Industries India Limited Solarism the passion! At Solar, we possess a rich multi-decade experience of working in an evolving industry landscape. We at Solar Industries bring an unusual passion to our workplace every single day. Passion represents multiple things at Solar. We were among the first We retained our people We incorporated to invest in cutting-edge across geographies responsible environment sectoral technologies strengthening the friendly practices at our in India and overseas entreprenuerial spirit for facilities. plants. long-term organisation growth We graduated our We worked towards operational performance maintaining financial to align with discipline with minimal Government’s ‘Make in debts in our books. India’ philosophy. 23rd Annual Report 2017-18 Corporate Overview Statutory Reports 05 Financial Statements Our vision What we offer To emerge as a global leader in the Industrial Explosives manufacturing of industrial and military explosives and an innovative solution provider Bulk Explosives with a focus on safety, quality and reliability. Packaged Explosives Initiating Systems Our mission Defence Explosives & Ammunition To provide innovative technology High Energy Material (HMX, RDX etc.) and services through Research and Development Composite Propellants for Pinaka, Akash, Brahmos etc To contain product and service costs Filling of Ammunitions and Fuzes through constant re-engineering and Rockets and Warheads for Missiles improvement in all business processes To ensure high quality delivery of services offering exemplary technical, safety, administrative and professional excellence with commitment to environmental safeguards. To forge and nurture alliances that are complimentary to the Company’s global ambitions. To retain our responsive, efficient and effective processes and services to realise our vision at all times. 06 Solar Industries India Limited Solar today Today we recognize that our leadership in the industrial explosive space is a function of our competitiveness that has transformed us into a market leader. Our ability to sustain market leadership over the years is backed through constantly evolving with changing industry dynamics, innovating with products and staying ahead of the curve. Visionary Management Safety & Quality focused Our people Led by one of the doyens of the We believe our success over At Solar we recognize our people industry Shri Satyanarayan Nuwal, decades is largely built on the as a long-term competitive Solar has grown steadily over the foundation of relentless quality- edge. We remain committed years achieving leadership. focused approach. We have towards attracting, retaining stringent quality and safety checks and developing our people. in place to ensure the products We encourage to build an offered continue to be among the entrepreneurial culture, enabling best in the industry. our employees to think beyond the set targets. State-of-the-art Research and Integrated operating Focusing on value-added multi-locational development model products manufacturing At Solar, we have successfully Our integrated business model Our leadership in industrial Equipped with the latest positioned ourselves as an with forward and backward explosives segment remains machineries and backed with innovative and research led linkages has helped deliver unabated. In our pursuit greater cost efficiencies, our company, epitomising thought greater operational efficiencies towards excellence and state of art multi-locational leadership and product and strengthen our position in sustainable growth, we have manufacturing facilities, spread development. This enables us the global market. expanded our presence into across different countries, help to deliver tailored solutions for defence sector as well. us manufacture innovative and our customers which helps us high quality products that meet meet the evolving consumer the diverse customer needs. demands. 23rd Annual Report 2017-18 Corporate Overview Statutory Reports 07 Financial Statements Solar by 2020 As we embark on our ‘Next Wave 2020’ plan, we are trying to create a multi -dimensional business model helping us emerge as a leading global industrial and military explosives manufacturing company. Leveraging our experience of more than two decades, we are focused on reshaping our future with a strong value-creation spirit based on our legacy, values and vision for the future. India: We aim sales volume Overseas: We aim for 3 fold Defence: We aim to earn to grow from 3,00,000 metric revenue increase from FY17 J500 Crores revenue from tonnes to 4,50,000 metric level of H350 Crores. In this defence sector by 2020. This tonnes by 2020. In this regard regard we plan to increase is planned to be achieved by we have applied for licenses, management team and increase commercially