AANKIT GRANITES LIMITED
ANNUAL REPORT 2011-2012
THE AANKIT SHARE OWNERS
Your Directors are pleased to present their Report on the business and
operations of your Company together with the Audited Statement of Accounts
for the year ended 31st March, 2012:
Performance of the Company for the Financial Year 2011-12 is summarized as
(Rupees in Lacs)
Particulars 31.03.2012 31.03.2011
Gross Income 891.97 752.58
Expenditure Other than Depreciation 836.61 720.80
Profit Before Depreciation 55.36 31.78
Less: Depreciation 15.81 15.28
Profit After Depreciation 39.55 16.50
Less: Income Tax 10.00 5.00
Prior Period Tax Adjustments 24.68 5.55
Prior Period Adjustments (Net) 6.88 0.51
Profit after Tax and Prior Period Adjustment (2.01) 5.44
In view of the carried forward losses, the Board of Directors'expresses
their inability to recommend any dividend for the year.
MANAGEMENT DISCUSSION & ANALYSIS:
Operations & Performance:
Production/Purchase for the year: 83,879 Sqm
Dispatches for the year: 74,124 Sqm
Sales Value for the year in Rs.: 8,60.95,438 Rs.
Your Company continues to carry on its business with the focus on exports.
As against the revenue of Rs. 7.53 Crores in the previous year, the Company
has achieved overly revenue of Rs. 8.92 Crores. Operating profits increased
from Rs 31.78 Lakhs to Rs 55.36 Lakhs. Global competition with supplies
coming from China has been the primary concern and is responsible for
reduced growth. The market in the United States seems to have shut its door
for the granite products. Recession in Europe continues to haunt the
granite industry with the vagaries of construction business. Having passed
the most difficult situation in the past, your Directors are infusing all
out efforts to ensure continued operations and look for better
opportunities in the days to come.
The exposure of the Management to the business being carried out by the
Company and the experience earned by the Core Team coupled with the
requisite infrastructure for operations, network of market globally,
collectively constitute the unique core strength for your Company.
Relentless efforts continued by the Company on implementing austerity
measures and cost cutting uniformly. With uncertainties and global
recession, your Directors will focus on achieving better profitability by
garnering all the resources at their disposal. The Directors hope that the
situation will change to offer the Company better market opportunities.
INTERNAL CONTROL SYSTEMS:
Your Company has in place adequate systems of Internal Controls which are
commensurate with the size of its operations and it is properly designed to
protect and safeguard the assets of the Company. There is a proper system
for recording the transactions, which ensures that each transaction is
properly authorized and executed according to the norms. Reorganization of
some of the key positions was implemented during the year under report and
your Directors are of the view that this will help the Company to great
Your Company continued to extend the training programmes at various levels
in order to optimize the productivity. The Company continues to have about
160 personnel including casuals.
The Company has not accepted any fixed deposits.
Mrs. Urmila Rani, Director of the Company retires by rotation and being
eligible, offers herself for re-appointment.
Audit Committee constituted by the Board of Directors with requisite
composition to fall in line with the prevailing laws continued to discharge
its functions during the year under report.
As per the provisions of the Listing Agreement with the Stock Exchange, a
Report on Corporate Governance has been given in the Annexure I hereto.
Messrs R Singhvi & Associates, Chartered Accountants, Bangalore, the
retiring Auditors of the Company hold office until the conclusion of the
forthcoming Annual General Meeting and are eligible for re-appointment.
Attention is drawn to the Auditors' Report and the following explanation is
1. Note No. 4:
Regarding appointment of full time Company Secretary.
The explanation provided under Schedule O' II (18) regarding the aforesaid
item is self-explanatory.
PARTICULARS OF EMPLOYEES:
Statement pursuant to Section 217(2A) of the Companies Act, 1956, read with
the Companies (Particulars of Employees) Amendment Rules, 2011.'
There were no employees drawing remuneration in excess of Rs.5 lakhs per
month or Rs.60 lakhs per annum.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies Act,
1956, with respect to Directors Responsibility Statement, it is hereby
i) That in the preparation of the accounts for the financial year ended
31st March 2012, the applicable accounting standards have been followed
along with proper explanation relating to material departures;
ii) That the Directors have followed such accounting policies, standards as
prescribed by ICAI applied them consistently and made judgments and
estimates that were reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of the financial
year and of the profit of the Company for the year under review;
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act. 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
iv) That the Directors have prepared the accounts for the financial year
ended 31st March, 2012 on a 'going concern' basis.
OTHER STATUTORY DISCLOSURES:
In terms of Section 217(1)(e) of the Companies Act, 1956 following
particulars are furnished: Energy Conservation/ Technology Absorption :
Your Company continues to put in the best efforts to conserve and
efficiently utilize energy wherever possible.
Technology Absorption. Adaptation and Innovation:
The machinery being sophisticated with built-in technology, the quality of
the products manufactured is on par with the international standards. From
time to time, the core technical personnel are imparted the latest
Foreign Exchange Transactions:
Foreign Exchange Earnings Rs.587.73 Lakhs
Foreign Exchange Outgo Rs.70.47 Lakhs
The Board of Directors wish to thank all the Shareholders, Government
Authorities, Financial Institutions, Bankers, Suppliers, Customers and all
the Employees for their continued assistance, support, cooperation and
direction to the Company during the year under review.
By Order of the Board
For AANKIT GRANITES LIMITED
Place: Bangalore DR. ADARSH KUMAR URMILA RANI
Date : 30-05-2012 MANAGING DIRECTOR DIRECTOR