Annual Report 2003-04 View PDF - Bajaj Auto

Pecuniary relationship or transactions of
non-executive directors
1. Shekhar Bajaj and J N Godrej are directors and
shareholders of Bajaj Electricals Limited and Godrej
& Boyce Manufacturing Company Limited
respectively. Both companies are vendors to Bajaj
Auto. Purchases of goods from these companies
have been in the ordinary course of business and,
for the year ended 31 March 2004, amounted to
Rs.2 million and Rs.7 million respectively.
2. During the year under review, inter-corporate loans
amounting to Rs.94 million were refunded by Bajaj
Electricals Limited and there was no outstanding
amount as on 31 March 2004.
3. Shekhar Bajaj is a director of Hind Musafir Agency
Private Limited, an accredited travel agency.
Necessary government approval for availing of the
travel related services from this company has been
obtained by Bajaj Auto in terms of the provisions of
section 297 of the Companies Act, 1956.
This approval is valid upto 31 December 2005.
During the year under review, the total value of
services availed of by Bajaj Auto from Hind Musafir
Agency Private Limited amounted to Rs.16 million.
4. The Register of Contracts maintained by the
company according to the provisions of section
301 of the Companies Act, 1956, contains record
of the transactions entered into with the above
companies. The register is signed by all the
directors present during the respective
board meetings.
32 I
Corporate Governance
Audit committee
Constitution and composition
Bajaj Auto set up its audit committee in 1987. Since
then, the company has been reviewing and making
appropriate changes in the composition and working of
the committee from time to time with a view to bringing
about greater effectiveness in the committee and to
comply with various requirements under the
Companies Act, 1956 and clause 49 of the
listing agreement.
The current audit committee consists of the
following directors:
1. S H Khan, Chairman
2. D J Balaji Rao
3. J N Godrej
4. Naresh Chandra
5. Nanoo Pamnani
All members of the audit committee are independent,
non-executive directors. S H Khan, D J Balaji Rao and
Nanoo Pamnani have a strong financial and accounting
background. Nanoo Pamnani, who was appointed as
a director of the company on 14 May 2003,
was inducted into the committee with effect
from 13 September 2003.