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Eicher Motors Ltd (EICHERMOT) -BSE
2570.55 7.20 (0.28%) 27-Jul-2021 |00:00
2563.35 2570 2597.05 2542.55 22543 3035.5 - 2007.1 70079.02 52.7 0.66 48.64
Directors Report

To the Members of Eicher Motors Limited

The Directors have pleasure in presenting the Thirty Eighth Annual Report along with the Audited Financial Statements of your Company for the financial year ended March 31, 2020.


Your Company has earned a Net revenue from operations of Rs. 9,077.47 crores during the financial year 2019-20. The profit before depreciation and interest expense including interest on lease liability (Ind AS 116) of Rs. 10.86 crores amounted to Rs. 2,203.78 crores, which is 24.3% of the total revenue. After accounting for other income of Rs. 615.34 crores, interest expense of Rs. 10.86 crores and depreciation of Rs. 377.92 crores, profit before exceptional item and tax amounted to Rs. 2,430.34 crores.

Profit after tax amounted to Rs. 1,903.82 crores after income tax provision of Rs. 526.52 crores. Total Comprehensive Income for the year, net of tax amounted to Rs. 1,910.84 crores.

The financial results are summarized below:

Net Revenue from operations 9,077.47 9,794.48
Profit before depreciation and interest 2,203.78 2,944.38
Interest 10.86 2.99
Depreciation 377.92 298.93
Profit before other income and tax 1,815.00 2,642.46
Other income 615.34 508.04
Profit before exceptional items and tax 2,430.34 3,150.50
Exceptional items - (17.52)
Profit before tax 2,430.34 3,132.98
Provision for tax (including Deferred tax) 526.52 1,078.54
Net profit after tax 1,903.82 2,054.44
Other comprehensive income 7.02 (5.77)
Total Comprehensive income for the year/period, net of tax 1,910.84 2,048.67
Balance in statement of profit and loss brought forward from previous year 6,576.63 4,871.26
Amount available for appropriation

(Excluding exchange difference in translation of foreign operations)

8,471.89 6,924.79
Dividend for FY 2018-19 paid in 2019-20 - 341.11
Interim dividend proposed and paid in 2019-20 341.32 -
Tax on dividend 70.16 56.14
Earnings per share
- Basic (Rs.) 697.50 753.37
- Diluted (Rs.) 697.16 752.54


There is no change in the nature of business of the Company during the financial year under review.


Due to COVID-19, the Company temporarily suspended the operations in all the units of the Company. COVID-19 has impacted the normal business operations of the Company by way of interruption in production, supply chain disruption,

unavailability of personnel, closure/lock down of production facilities, retail outlets of dealers etc. However, production and sales/supply of goods have commenced during the month of May 2020 with partial capacity.

The Company has performed a detailed assessment of its liquidity position and the recoverability of the assets as at the Balance Sheet date and has concluded that based on current indicators of future economic conditions, the carrying value of the assets will be recovered. Management believes that it has fully considered all the possible impact of known events in the preparation of the standalone financial results. However, the impact assessment of COVID-19 is a continuing process, given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to future economic conditions and the consequent impact on its business, if any.


The Board of Directors at its meeting held on March 11, 2020, has approved payment of interim dividend of Rs. 125/- per Equity Share (@1250%) of face value of Rs. 10/- each, out of the then profits of the Company for the financial year 2019-20 in accordance with the Dividend Distribution Policy of the Company.

The entitlement of interim dividend has been determined in the following manner:

a) To all Beneficial Owners in respect of shares held in dematerialized form as per the data made available by the National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL) as of the close of business hours on March 21, 2020 (record date);

b) To all Members in respect of shares held in physical form after giving effect to valid transfer/transmission in respect of transfer/transmission requests lodged with the Company on or before the close of business hours on March 21, 2020 (record date).

Out of the total Interim Dividend amount, the Company has completed remittance of payment through electronic transfer. The Interim Dividend amount to be paid through Warrants and Bank Demand Drafts is pending dispatch due to nationwide lockdown/movement restrictions imposed by the Government on account of Covid-19 outbreak and the same will be dispatched promptly once normalcy is restored.


During the financial year 2019-20, no amount was transferred to General Reserve of the Company.


Your Company has sold 6,98,216 motorcycles in the financial year 2019-20, 15.2% lower when compared to financial year 2018-19 sales of 8,23,828 motorcycles. Out of 6,98,216 motorcycles sold in 2019-20, 39,296 motorcycles were exported, a growth of 88.7% over the volume of 20,825 motorcycles exported in financial year 2018-19.

Net Revenue from operations for financial year 2019-20 year was Rs. 9,077.47 crores, 7.3% lower when compared with previous financial year (Rs. 9,794.48 crores). Net Sales of spare parts, gears and services increased to Rs. 1,075.18 crores in financial year 2019-20 from Rs. 1,056.39 crores in the previous financial year, registering a growth of 1.8%.

Your Company's profit before depreciation, interest, exceptional item and tax was Rs. 2,203.78 crores in financial

year 2019-20, lower by 25.2% over Rs. 2,944.38 crores recorded in financial year 2018-19.


Please refer to Management Discussion & Analysis Report which forms part of the Annual Report.


Information on conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be given pursuant to the provisions of Section 134 of the Companies Act, 2013 ("the Act"), read with the Companies (Accounts) Rules, 2014 is provided under Annexure-1.


The Company has not issued any sweat equity shares or equity shares with differential rights during the financial year 2019-20.


The paid up Equity Share Capital of the Company as on March 31, 2020, was Rs. 27,30,45,700/-. During the year under review, the Company has issued 22,000 Equity Shares of face value of Rs. 10/- each pursuant to its Employees Stock Option Plan, 2006 ("ESOP, 2006"). No shares have been issued under the Company's Restricted Stock Units Plan, 2019 ("RSU Plan, 2019").

A Statement giving complete details as at March 31,

2020, pursuant to Regulation 14 of the SEBI (Share Based Employee Benefits) Regulations, 2014 is available on the website of the Company and the weblink for the same is ESOP-Statement-2019-20.pdf

ESOP, 2006 and RSU Plan, 2019, for grant of stock options have been implemented in accordance with the aforesaid SEBI Regulations. A certificate from M/s S.R. Batliboi & Co.,

LLP, Statutory Auditors, in this regard will be available for inspection on the website of the Company under "Investors" Section. The Company has not changed its ESOP, 2006 and RSU Plan, 2019 during the year under review.

Further, details of options granted and exercised are included in Note no. 50 in the notes to accounts forming part of consolidated financial statements.


The Company has not accepted any deposits from the public/members under Section 73 of the Act read with the Companies (Acceptance of Deposits) Rules, 2014 during the financial year under review. The Company has not renewed/ accepted fixed deposits after May 29, 2009. There are no deposits that remain unclaimed.


In accordance with Section 149(7) of the Act, all the Independent Directors of the Company have given written declarations to the Company confirming that they meet the criteria of independence as laid down under Section 149(6) of the Act and Regulation 16 of SEBI (LODR) Regulations,

2015. As on March 31, 2020, all Independent Directors of the Company have registered themselves in the Independent Director's databank maintained by Indian Institute of Corporate Affairs in terms of Section 150 of the Companies Act, 2013 read with Rule 6 of the Companies (Appointment and Qualifications of Directors) Rules, 2014.

In accordance with the provisions of Section 152 and other applicable provisions of the Act & the Articles of Association of the Company, Mr. Vinod K. Aggarwal, Non-Executive Director, retires by rotation and being eligible offers himself for re-appointment at the ensuing AGM. The Board of Directors of the Company at its meeting held on February 6, 2020, re-appointed Mr. S. Sandilya and Ms. Manvi Sinha, as Independent Directors of the Company for a period of 5 (five) consecutive years each with effect from February 13, 2020, after taking into consideration recommendations of the Nomination & Remuneration Committee of the Company and subject to requisite approval of the shareholders at the ensuing AGM. In the opinion of the Board, Mr. S. Sandilya and Ms. Manvi Sinha possess requisite skills & expertise in the context of business of the Company. For details on skills/expertise/competencies of Mr. Sandilya and Ms. Sinha respectively, please refer Corporate Governance Report forming part of this Annual Report.

During the year under review, Mr. Vinod Kumar Dasari, Whole-time Director & CEO-Royal Enfield and Mr. Vinod Kumar Aggarwal, Non-Executive Director, were appointed on the Board of the Company w.e.f. April 1, 2019, with requisite approvals of the shareholders obtained at the 37th Annual General Meeting held on August 1, 2019. There has been no other change in the Directors and Key Managerial Personnel of the Company during the financial year under review. Further, the Board at its meeting held on May 6, 2020 has appointed Mr. Kaleeswaran Arunachalam as the Chief Financial Officer of the Company with effect from May 6, 2020 in place of Mr. Lalit Malik, who shall continue as the Chief Commercial Officer of the Company.



The Company's Hiring & Employment Policy:

A number of factors are considered towards selecting candidates at the Board level which include:

? Ability to contribute to strategic thinking

? Proficiency in Governance norms, policies and mechanisms at the Board level

? Relevant cross industry/functional experience, educational background, skills and experience

? Wherever relevant, independence of Directors in terms of applicable regulations.

With respect to core competencies and personal reputation, our practices ensure through the selection process that all Directors:

? Exhibit integrity and accountability

? Exercise informed judgement

? Are financially literate

? Are mature and confident individuals

? Operate with high performance standards

Removal of Directors

Under extreme circumstances and in highly unusual situations it may become necessary to remove a member from the Board of Directors. Reasons for doing so, may relate to any of the following (indicative; other than as provided under the Companies Act, 2013):

i. Breach of confidentiality in anyway

ii. Failure to meet obligatory procedures in the disclosure of conflict of interest

iii. Failure to fulfil the fiduciary duties of a Director for the Company

iv. Acting in any other manner which is against the interests of the Company

The Company's Remuneration Policy:

The Company's Compensation Strategy defines the principles underlying compensation philosophy for its employees. Compensation is a critical piece of overall human-resources strategy and broadly refers to all forms of financial returns and tangible benefits that employees receive as a part of their employment relationship.

The Remuneration/Compensation Policy of the Company is designed to attract, motivate and retain manpower. This Policy applies to Directors and Senior Management including Key Managerial Personnel (KMP) and other employees of the Company.

The remuneration of the Managing Director, Executive Director, Key Managerial Personnel (KMPs) and CXOs of the Company is recommended by the Nomination and Remuneration Committee based on criteria such as industry benchmarks, the Company's performance vis-a-vis the industry, responsibilities and performance assessment. The Company pays remuneration by way of salary, perquisites and allowances (fixed component), incentive remuneration and/or commission (variable components).

Loans/advances may be extended to employees for various personal purposes or to aid business functions, from time to time, on a case to case basis, in accordance with the relevant Human Resource guidelines/policies in force or as may be approved by the Chief Financial Officer, the Chief Human

Resource Officer of the Company, or any person authorized by them, including for relocation viz. school deposits/expenses, travel/logistics expenses, housing advance, housing deposits/ brokerage, any other expenses towards relocation; advance submission of tax deducted at source by the Company on behalf of employee; advance towards medical insurance premiums; loans granted to enable grantees exercise ESOPs and towards deposit of perquisite tax thereon; loans/advances covered under Employees Union recognized by the Company as per Union Agreement; medical emergency advances etc.

Additionally, in the event of exigencies arising due to calamities, the Company may provide financial assistance to any affected employee by way of extending interest free loan in an amount not exceeding his/her two months' gross salary.

Remuneration by way of commission to the Non-Executive Directors shall be decided by the Board of Directors within the ceiling of a sum, not exceeding 1% of the annual net profits of the Company in each of the financial year, calculated in accordance with the provisions of the Act and as approved by the members by passing a resolution in the general meeting.

Remuneration of KMPs and employees largely consists of basic remuneration, perquisites, allowances, performance incentives and employee stock options granted pursuant to the Employees Stock Option Plan of the Company. The components of remuneration vary for different employee levels and are governed by industry patterns, qualifications and experience of the employee and his/her responsibility areas, employee performance assessment etc.

The said Policy is also available on the website of the Company at


During the financial year under review, formal annual evaluation of the Board, its Committees and individual Directors was carried out pursuant to the Board Performance Evaluation Policy of the Company and provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

The Nomination and Remuneration Committee specified the criteria for effective performance evaluation of the Board, its Committees and Individual Directors of the Company. The performance of the Board and Committees was evaluated after seeking inputs from all the Directors on the basis of the criteria such as Board/ Committee constitution, frequency of meetings, effectiveness of processes etc. The performance of individual Directors (including Independent Directors) was evaluated by the Board (excluding the Director being evaluated) after seeking inputs from all Directors on the basis of the criteria such as thought contribution, business insights and applied knowledge. After the Board carried out aforesaid evaluation, the Nomination & Remuneration Committee reviewed implementation of the manner specified by it for performance evaluation & effectiveness of the process.

A separate meeting of Independent Directors was also held to review the performance of the Managing Director,

performance of the Board as a whole and performance of the Chairperson of the Company. Review of the performance of the Chairperson was done after taking into account the views of the Executive Director and Non-Executive Directors (excluding the Chairperson being evaluated).


Eight (8) meetings of the Board of Directors of the Company were conducted during the financial year under review.

The details of Board/Committees/Shareholder meetings are provided under the Corporate Governance Report which forms part of the Annual Report.


The details of loans, guarantees and investments made by the Company during the financial year under review which are covered under Section 186 of the Companies Act, 2013 form part of the notes to the financial statements provided in this Annual Report.


All contracts/ arrangements/ transactions entered into by the Company during the financial year with related parties are in compliance with the applicable provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015. Requisite approval of the Audit Committee and the Board (wherever required) was obtained by the Company for all Related Party Transactions.

There were no materially significant Related Party Transactions made by the Company with Promoters, Directors or Key Managerial Personnel, subsidiaries, joint ventures and associate companies which may have a potential conflict with the interest of the Company. There are no transactions that are required to be reported in Form AOC-2, hence the said form does not form part of this report. However, the details of the transactions with related parties are provided in the Company's financial statements in accordance with Indian Accounting Standards.

The Company has a Policy on materiality of and dealing with Related Party Transactions, as approved by the Board, which is available on its website


The Audit Committee of the Company is constituted pursuant to the requirements of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015. At present, members of the Audit Committee are:

Sl. No. Name of Members
1 Mr. S Sandilya (Chairman)
2 Mr. Siddhartha Lal
3 Ms. Manvi Sinha
4 Mr. Inder Mohan Singh

During the year under review, the Board at its Meeting held on November 8, 2019, appointed Mr. Inder Mohan Singh, Non-Executive Independent Director as Member of the Audit Committee.


The Company has formulated a Whistle Blower Policy to establish a vigil mechanism for Directors, employees, dealers and vendors of the Company to report concerns about unethical behavior, actual or suspected fraud or violation of the Company's Code of Conduct or Ethics Policy or to report genuine concerns or grievances including instances of leak or suspected leak of unpublished price sensitive information pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015. The Whistle Blower Policy of the Company is available at https://



Highlights of performance of subsidiaries and joint venture companies and their contribution to the overall performance of the Company during the year under review:

Royal Enfield North America Limited (RENA)

RENA was incorporated in March 2015 as a 100% subsidiary of Eicher Motors Limited to manage the distribution and sales of Royal Enfield products and services including, motorcycles, spares and gear in North America. It sold 3,322 motorcycles (excluding 301 motorcycles sold to Royal Enfield Canada Limited, 100% subsidiary of RENA) during the year 2019-20 and achieved revenue of Rs.114.63 crores (including revenue of Rs. 9.45 crores by sales to Royal Enfield Canada Limited).

As of March 2020, RENA had contracted with 108 multi brand outlets in USA.

Royal Enfield Canada Limited (RECA)

RECA is a 100% subsidiary of RENA. RECA was incorporated in April 2016 in Canada to manage the distribution and sales of Royal Enfield products and services including, motorcycles, spares and gear in Canada. During the year 2019-20, the Company sold 301 motorcycles and achieved revenue of Rs. 10.10 crores. As of March 2020, RECA had contracted with 12 multi brand outlets in Canada.

Royal Enfield Brasil Comercio De Motocicletas Ltda. (REBRA)

Royal Enfield started its operations in Brazil through a direct distribution company by the name of Royal Enfield Brasil Comercio de Motocicletas Ltda in 2016. During the year the Company sold 2,300 motorcycles and achieved revenue of Rs. 45.29 crores.

Royal Enfield (Thailand) Ltd (RETH)

Royal Enfield (Thailand) Ltd. was incorporated on September 18, 2018 and commenced sales operations from September 2019. The Company's footprints have grown to 14 exclusive stores and 12 Authorized Sales & Service Points. In the year

2019, the Company received two awards from the Grand Prix group for Interceptor being the "Best Modern Classic" and Himalayan being "Best Lightweight Tourer" motorcycle. The Company plans to commence assembly operations from the year 2021 to cater to ASEAN region. During the year 2019-20, the Company sold 690 motorcycles and achieved revenue of Rs. 26.06 crores.

Royal Enfield (UK) Limited (REUK)

Royal Enfield (UK) Limited, was incorporated on August 20, 2019 to engage in the wholesale business of motorcycles, apparels, spares & accessories. The Company is yet to commence trading operations as at March 31, 2020.

Eicher Polaris Private Limited (EPPL)

Eicher Polaris Private Limited, a joint venture company, was involved in manufacturing and sales of personal utility vehicles.

The Board of Directors and Shareholders of EPPL at their respective meetings held on February 18, 2020 approved voluntary liquidation (solvent liquidation) of EPPL and appointed an insolvency professional as the liquidator. The liquidation process is under progress currently.

VE Commercial Vehicles Limited and its step-down subsidiaries

Overview of performance covered separately in the Annual Report.

Report containing salient features of financial statements of subsidiaries and joint venture companies

Pursuant to the provisions of Section 129(3) of the Act, a report containing salient features of the financial statements of the Company's subsidiaries and joint venture company in Form AOC-1 is attached as Annexure-2.



During the financial year under review, Royal Enfield (UK) Ltd. ("REUK") was incorporated on August 20, 2019 as wholly owned subsidiary of the Company. No other company has become or ceased to be the Company's subsidiary, joint venture or associate company during the financial year 2019-20.


There are no significant material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations. However, members' attention is drawn to the statement on contingent liabilities, commitments in the notes forming part of the Financial Statements.


Details of internal financial control and its adequacy are included in the Management Discussion and Analysis Report, which forms part of the Annual Report.


The Company has constituted a Corporate Social Responsibility (CSR) Committee and has framed a Corporate Social Responsibility Policy and identified Healthcare, Children's education, Road safety, Environmental sustainability, Local Area Development in, including but not limited to, areas around the Company's establishments & in Himalayas and Livelihood development including vocational training for underprivileged as some of the key areas. The Company will continue to support social projects that are consistent with the Policy.

Corporate Social Responsibility Committee of the Company is constituted as follows:

1. Mr. S Sandilya - Chairman

2. Mr. Siddhartha Lal

3. Mr. Inder Mohan Singh

Annual Report on CSR activities is annexed as Annexure-3.


The consolidated financial statements have been prepared by the Company in accordance with the requirements of Indian Accounting Standard ("Ind AS")-110 "Consolidated Financial Statements" and Ind AS 28 "Investment in Associates and Joint ventures", prescribed under Section 133 of the Companies Act, 2013, read with the rules issued thereunder. The Company, its subsidiaries and jointly controlled entities adopted Ind AS from April 1, 2016. The consolidated financial statements are provided in the Annual Report. A statement containing the salient features of the financial statements of each of the subsidiary and joint venture company in the prescribed Form AOC-1 is attached.

Pursuant to Section 136 of the Act, the financial statements, consolidated financial statements and separate accounts of the subsidiaries are available on the website of the Company at The Company shall provide the copies of the financial statements of the Company and its subsidiary companies to the shareholders upon their request received on The consolidated total comprehensive income of the Company and its subsidiaries amounted to Rs. 1,838.62 crores for the financial year 2019-20 as compared to Rs. 2,196.53 crores for the previous financial year 2018-19.



(a) Statutory Auditors and Their Report

M/s S.R. Batliboi & Co., LLP, Chartered Accountants (Firm Registration Number: FRN 301003E/E300005) were appointed as Statutory Auditors in the 35th (Thirty Fifth)

Annual General Meeting (AGM) of the Company for a period of five years, from the conclusion of 35th AGM till the conclusion of the 40th AGM of the Company, subject to ratification of their appointment at every AGM by the shareholders, if required pursuant to the provisions of the Companies Act, 2013 ("Act"). Central Government vide the Companies (Amendment) Act, 2017 has amended the provisions of Section 139 of the Act and ratification of appointment of Statutory Auditors in every AGM is no longer required. The Statutory Auditors have confirmed their eligibility under Section 141 of the Companies Act, 2013 and the Rules made thereunder to continue to act as Statutory Auditors of the Company.

The Statutory Auditors had carried out audit of financial statements of the Company for the financial year ended March 31, 2020 pursuant to the provisions of the Act. The reports of Statutory Auditors form part of the Annual Report. The reports are self-explanatory and do not contain any qualifications, reservations or adverse remarks.

(b) Secretarial Auditors and Their Report

The Board of Directors has appointed M/s. Shweta Banerjee & Associates, Company Secretaries, to conduct Secretarial Audit for the financial year ended March 31, 2020. As required under Section 204 of the Companies Act, 2013, the Secretarial Audit Report is annexed as Annexure-4 to this Report. The Secretarial Auditors' Report is self-explanatory and does not contain any qualifications or adverse remarks which require any clarification or explanation.

(c) Cost Auditor

In terms of Section 148 of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, it is hereby confirmed that the cost accounts and records are made and maintained by the Company as specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013.

Ms. Jyothi Satish, a qualified Cost Accountant, has been appointed as the cost auditor to carry out audit of the cost records of the Company for the financial year 2019-20 pursuant to the provisions of the Companies Act, 2013. The Cost Auditor shall submit its report to the Board of Directors within the time prescribed under the Companies Act, 2013 and the rules made thereunder.


As per SEBI (LODR) Regulations, 2015, Corporate Governance Report together with the Auditors' certificate regarding compliance of conditions of Corporate Governance, Management Discussion & Analysis Report and Business Responsibility Report form part of the Annual Report.


The Company in its commitment to a sustainable global economy has voluntarily prepared a Sustainability Report based on GRI Sustainability Reporting Standards, which will help stakeholders to understand the Company's economic, environmental, social and governance performance more effectively and analyzing the financial and non-financial performance of the Company. With this, stakeholders shall also have a better understanding of the Company's long term perspective.

The Sustainability Report captures our passion along with the responsibilities for communicating sustainability performance and its impact on our stakeholders through various aspects such as responsible consumption, clean water and sanitation, gender equality, innovation, infrastructure etc. The Sustainability Report for the financial year 2019-20 is available on the Company's website at sustainability-report


Pursuant to the provisions of Sections 134 & 92(3) of the Companies Act, 2013, the details forming part of the extract of the Annual Return in Form MGT-9 is annexed as Annexure-5 to this Report and which is also available on the website of the Company


To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:

a) that in the preparation of the Annual Financial Statements for the year ended March 31, 2020, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

b) that such accounting policies as mentioned in Note no.

3 of the Notes to the Financial Statements have been selected and applied consistently and judgement and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2020 and of the profits of the Company for the year ended on that date;

c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) that the annual Financial Statements have been prepared on a going concern basis;

e) that proper internal financial controls to be followed by the Company have been laid down and that the financial controls are adequate and were operating effectively; and

f) that proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.


Disclosures as required under Section 197(12) of the

Companies Act, 2013 read with Rule 5(1) of the Companies

(Appointment and Remuneration of Managerial Personnel)

Rules, 2014:

1) Ratio of the remuneration of each director to the median remuneration of the employees of the Company and the percentage increase in remuneration of Directors & KMPs in the Financial Year:

Sl. No. Name of the Director/KMP Designation Ratio of Remuneration of each Director to median remuneration of employees Percentage Increase in Remuneration for FY 2019-20 over FY 2018-19
1 Mr. S Sandilya Chairman & Non-Executive Independent Director 10.1 0.97
2 Mr. Siddhartha Lal Managing Director 311.1 51.29
3 Mr. Vinod K. Dasari Whole-time Director and CEO-Royal Enfield 398.8 NA*
4 Mr. Inder Mohan Singh Non-Executive Independent Director 2.6 9.35“
5 Ms. Manvi Sinha Non-Executive Independent Director 2.6 14.01
6 Mr. Lalit Malik Chief Financial Officer" - (21.08)'
7 Mr. Manhar Kapoor General Counsel and Company Secretary - (35.31)'

*Percentage increase in remuneration for FY 2019-20 over FY 2018-19 is not applicable since Mr. Vinod K Dasari was appointed by the Board as Whole-time Director and CEO- Royal Enfield, w.e.f April 1, 2019.

“Mr. Inder Mohan Singh, Non-Executive Independent Director, joined the Board w.e.f November 12, 2018, hence, to compute percentage increase in his remuneration for FY 2019-20 over FY 2018-19, remuneration for FY 2018-19 has been annualized.

'Percentage decrease in remuneration for FY 2019-20 over FY 2018-19 is mainly due to perquisite on exercising shares under the Company's Employee Stock Options Plan, 2006 (ESOP, 2006), during the financial year 2018-19. It shall be 12.37% and 15.17% for Mr. Lalit Malik and Mr. Manhar Kapoor, respectively, without considering perquisite on exercising shares under ESOP, 2006 for both the financial years.

“Mr. Lalit Malik, Chief Commercial Officer, had also been the Chief Financial Officer of the Company till May 6, 2020.

Note: Mr. Vinod K. Aggarwal, Non-Executive Director, is not entitled for any remuneration by way of sitting fees or commission or otherwise, in the Company.

2) Percentage decrease in the median remuneration of the employees in the financial year: 5%@

@decrease of median remuneration by 5% is due to employee additions who are below the median remuneration

3) Number of permanent employees on the rolls of the Company as at March 31, 2020: 4,899 employees.

4) The average decrease in median remuneration of the employees other than managerial personnel was 5% as compared to the increase in the managerial remuneration by 25%.

5) It is hereby affirmed that the remuneration is paid as per the Remuneration Policy of the Company.

Further, a statement containing particulars of top ten employees in terms of the remuneration drawn and employees drawing remuneration in excess of the limits set out in Rule 5(2) & (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, are provided as part of the Directors' Report. However, in terms of provisions of Section 136 of the said Act, the Annual Report is being sent to all the members of the Company and others entitled thereto, excluding the said statement. Any member interested in obtaining such particulars may write to the Company Secretary at


Requisite information is provided under Management Discussion and Analysis Report which forms part of the Annual Report.


During the financial year under review, the Company has complied with applicable Secretarial Standards specified by the Institute of Company Secretaries of India pursuant to Section 118 of the Companies Act, 2013.


Requisite information is provided under Corporate Governance Report which forms part of the Annual Report.


We thank our customers, business associates and bankers for their continued support during the financial year.

We wish to convey our deep appreciation to the dealers of the Company for their achievements in the area of sales and service, and to suppliers/ vendors for their valuable support.

We also place on record our sincere appreciation for the enthusiasm and commitment of the Company's employees for the growth of the Company and look forward to their continued involvement and support.

For Eicher Motors Limited
Siddhartha Lal S. Sandilya
Managing Director Chairman
DIN: 00037645 DIN:00037542
Place: London, UK Place: Chennai, Tamil Nadu
Date: June 12, 2020



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Equity SEBI Registration No INZ000177137, Exchange Registration Nos : NSE TM Code - 06637, Clearing No.- M50302|BSE Clearing No: 3179|MSEI TM Code - 1004 ,Clearing No.- 4| MCX TM No: 8091,Clearing No: 8090 | NCDEX TM No:1287, Clearing No: -M51085|ICEX TM ID-2084 | SEBI Registration for DP : IN-DP-NSDL-97-99, NSDL- DP ID: IN300966, CDSL DP ID: 12020600 | SEBI Research Analysts Registration No :INH100001187 | SEBI PMS Registration No:INP000002361 CMBPID NCL CM :- IN555502
* Through subsidiary Globe Commodities Ltd. --> Commodity SEBI Regn. No. - INZ000024939, Exchange Regn. Nos. - MCX CM ID: 8550 TM ID: 10735, NCDEX CM ID: M50011 TM ID: 00012, NMCE ID: CL0111, ICEX ID: 1009, NCDXSPOT-CR-07-10011,
** Through step in subsidiary Globe Comex International DMCC --> DGCX **TM Id.1064, CM Id.3064*
"We also do Pro-Account trading in Commodity Segment.."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Attention Investors:
"Prevent Unauthorised transactions in your account --> Update your mobile numbers/email IDs with your Stock Brokers. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day .......... Issued in the interest of investors"
"Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from NSDL/CDSL on the same day......................issued in the interest of investors."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
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