| Dear Members,
The Directors take pleasure in presenting the Twenty Third Annual
Report on the affairs of the Company for the financial year 2013-2014
together with the Audited Financial Statements and Report of the
Auditors thereon.
BUSINESS PERFORMANCE:
Financial Results: The overall performance of the Company for the
financial year 2013-14 is summarized as under:
(Rs. in Lakhs)
S. Particulars 2013-2014 2012-2013
No.
1. Sales (Gross) 3277.43 2184.55
Less : Excise Duty 209.33 204.26
Sales (Net) 3068.10 1980.29
2. Other Income 2.82 1.71
Total Revenue 3070.92 1982.01
3. Gross Profit before Interest,
Depreciation, & taxation 148.66 114.18
4. Interest/Financial Charges 87.34 65.71
5. Depreciation 20.80 14.70
6. Profit before tax 40.52 33.77
Less: Provision for current tax 0.43 8.49
Less : Provision for Deferred Tax 12.46 2.07
Net Profit(loss) after tax 27.63 23.21
Add: Balance from previous year 137.04 113.83
Surplus carried to Balance Sheet 164.67 137.04
BUSINESS REVIEW
During the year 2013-14, the Company has posted a gross turnover of Rs
3277.43 lakhs as against Rs. 2184.55 lakhs in the previous year and has
earned a net profit of Rs.40.52 Lakhs before tax compared to previous
year's profit of Rs 33.77 Lakhs. There is an improvement in
profitability due to increase in turnover and on account of cost
effective means adapted by the management for production. However on
account of inadequate profits, the Board has not recommended any
dividend nor any transfer to reserves.
FUTURE OUTLOOK:
Financial Year 2013-14 has been a challenging year with subdued
economic growth, as a result of higher inflation, higher interest
rates, lower industrial growth and lower investments in the country,
along with the poor condition of the global economy. However, the
Indian economy is expected to perform comparatively well in the coming
years. With a stable government at the centre, significant policy
changes are anticipated in the near future.
The government focus on infrastructure development, more foreign direct
investment inflow and more transparency in governance is likely to
significantly increase the business confidence in the country.The
automotive / industrial segment, it is expected to grow by 4% to 5% in
Financial year 2014-2015.
FINANCIAL RESOURCES
The company has arrangements with its Banker to cash credit limits of
Rs 700 Lakhs to meets its working capital requirements. This will help
Company to boost its turnover in the coming years.
DIRECTORS:
Mr.Swami S.B.Das, retire by rotation and being eligible, offers himself
for reappointment as non -retiring Independent Director for a period of
five years. As per Section 149(4) of the Companies Act, 2013, the
independent directors of the Company are being appointed to hold office
as independent directors for a period of five years with effect from
the 23rd Annual General Meeting.
Mrs Usha Chachan and Mr S.K.Kabra have been appointed as Additional
Directors by the Board on 26th August,2014, to hold office until the
conclusion of the ensuing Annual General Meeting.
Brief particulars and expertise of these directors and their other
directorships and committee memberships have been given in the annexure
to the Notice of the Annual General Meeting in accordance with the
requirements of listing agreement with Stock Exchanges.
DIRECTORS' RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217(2AA) of the Companies
Act,1956, your Directors state:
1. That the accounting standards to the extent applicable to the
Company have been followed in the preparation of the annual accounts
and there are no material departures
2. That the accounting policies selected by the Board for the purpose
of preparation and presentation of the financial statements have been
and are being applied consistently and reasonable and prudent judgments
and estimates (wherever applicable) have been made for the said
purpose, so as to give a true and fair view of the affairs of the
Company as at the end of the financial year under review and of the
profit and loss for the said year.
3. That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of your company and for
preventing and detecting fraud and other irregularities.
4. That the annual Accounts have been prepared on a going concern
basis.
AUDITORS:
Statutory Auditors
M/s. Dagliya & Co, Chartered Accountants, Secunderabad, the Auditors of
the company retire at the conclusion of the ensuing Annual General
Meeting and are eligible for reappointment. The Board recommends their
reappointment for next 3 years as per the new Companies (Audit and
Auditors) Rules, 2014.
Cost Auditors
Your Company had appointed M/s Sagar & Associates, Cost Accountant,
Hyderabad, as Cost Auditor, with the approval of the Central
Government, for audit of cost records maintained by the Company for the
financial year ended 31st March, 2014. The due date for filing the Cost
Audit Reports is 30th September, 2014.
LISTING :
The shares of your company are listed on Mumbai and Kolkata Stock
Exchanges.
PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956:
There was no person employed by the company during the year who was in
receipt of remuneration in excess of limits prescribed under Section
217 (2A) of the Companies Act, 1956.
FIXED DEPOSITS:
During the year under review, the company has not accepted any deposits
under Section 58A of the Companies Act 1956 read with Companies (
Acceptance of Deposits) Rules, 1975.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information regarding Energy Conservation, Technology Absorption,
Foreign Exchange Earnings and outgo in accordance with Section 217
(1)(e) of the Companies Act, 1956 read with Companies ( Disclosure of
particulars in the report of Board of Directors) Rules 1988, forming
part of the Directors Report for the year ended 31st March, 2014 are as
follows:
1. Conservation of Energy: The Company's operations require low energy
consumption. Adequate measures are taken to conserve energy wherever
possible. The details required are attached herewith.
2. Technology Absorption:
a. Research & Development There is no specific Research
and Development activity carried
out by the Company during the year.
b. Technology Absorption NIL
3. Foreign Exchange Earning
and Outgo NIL
CORPORATE GOVERNANCE:
The company has implemented the Code for Corporate Governance as
stipulated under the revised Clause 49 of the Listing Agreement. A
separate report on Corporate Governance is annexed to this report.
CODE OF CONDUCT
The Company has adopted a uniform Code of Conduct for Directors and
Senior Management and above Officers level to ensure ethical standards
and ensure compliance to the laid down standards.
DEMATERIALISATION OF SHARES:
M/s. X.L Softech Services Limited, Hyderabad were appointed as
Depository Registrars for dematerialization of shares as well for
transfer of physical shares were entrusted to them.
The ISIN of dematerialized share of the Company allotted by NSDL and
CDSL is "INE570B01012."
ACKNOWLEDGEMENTS:
The Board takes this opportunity to express its deep gratitude for the
continued co-operation and support received from its Bankers, State and
Central Governments, the customers, share holders, business associates
and employees during the year under review.
Specific acknowledgement is also made for the confidence and
understanding shown by the Members in the Company.
On behalf of the Board of Directors
Place: Hyderabad. Sd/-
Date : 26.08.2014 S.B CHACHAN
CHAIRMAN & MANAGING DIRECTOR |