CREDENCE SOUND AND VISION LIMITED
ANNUAL REPORT 2008-2009
Your directors submit here below their Report for the year ended
(Figures in Rs.)
Current Year Previous Year
GROSS INCOME 2713375 4494309
PROFIT/LOSS BEFORE DEP. & TAX 2000175 3417148
LESS: DEPRECIATION 667867 667867
PROFIT/LOSS BEFORE TAX 1332308 2749281
LESS: TAX 0.00 0.00
PROFIT/LOSS AFTER TAXATION 1332308 2749281
APPROPRIATION NIL NIL
PROPOSED DIVIDEND NIL NIL
TRANSFER TO GENERAL RESERVE NIL NIL
ADD: BALANCE BROUGHT (30306642) (33055923)
FORWARD BALANCE CARRIED TO B/SHEET (28974334) (30306642)
Though the company has owned its video post production studio, the same
could not be run profitably because of technology obsolescence. The company
is taking effective steps to upgrade its technology to compete in the
During the year, the company has not declared any dividend.
The company has not accepted any deposits under the provisions of section
58A of the companies Act, 1956 and the rules made there under and
therefore, the question of unclaimed deposits is not applicable.
Pursuant to Section 217(2AA) of the companies Act, 1956, your Directors
* In the preparation of the annual accounts, the applicable accounting
standards have been followed;
* that the Directors have selected such accounting policies and applied
them consistently and made judgements and estimates that are 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 ended 31st March, 2009 and of the
profit of the company for that year;
* 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.
* The annual accounts have been prepared on a going concern basis.
MR. SHIVRAM MEENA and MR. JIMMY PANDYA retire by rotation at the ensuing
Annual General Meeting and being eligible, offer themselves for
M/S P.R. AGARWAL & AWASTHI, Chartered Accountants, Auditors of the company
hold office until the conclusion of the ensuing Annual General Meeting and
being eligible, offer themselves for reappointment.
A report on Corporate Governance along with compliance certificate from the
Auditors thereon and Management Discussion and Analysis Report are annexed
INFORMATION UNDER SECTION 217 OF THE COMPANIES ACT 1956:
Particulars with regard to Conservation of energy, Technology Absorption,
Foreign Exchange Earnings and out go in accordance with the provisions of
section 217(1)(e) of the Companies Act, 1956 (Disclosure of particulars in
the report of Board of Directors) Rules 1988 are not applicable.
The company has no employees covered by and in accordance with the
provisions of Section 217(2A) of the Companies Act, 1956, read with the
Companies (particulars of Employees) Rule, 1975 as amended and hence the
particulars of the same are not applicable.
LISTING OF EQUITY SHARES:
The company's Equity shares are listed on the Stock Exchanges Mumbai,
Delhi, Calcutta, and Ahmedabad. The company is taking requisite steps for
revocation of the suspension of trading by BSE.
Auditors' remarks have been suitably dealt with in the notes on accounts
and hence need no further explanation.
Yours Directors wish to place on record their appreciation for the valuable
support received from shareholders, Suppliers and Clients. The Board also
thanks the employees at all levels for their commitment and contribution.
FOR AND ON BEHALF OF THE BOARD
Place : Mumbai
Date : 30/06/2009
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
The year under review was one of the difficult years of the company. The
company is looking for profitable ventures, as its main area of functioning
entertainment multi-media is no more viable keeping in view the scale of
operation, which the company can possibly take up. Hopefully, the company
should come out with concrete plans in the ensuing year.
CURRENT YEAR PREVIOUS YEAR
PAT 1332308 2749281
EBID 2027645 3465942
PROFIT/LOSS AFTER 1332308 2749281
EPS 0.03 0.61
DEBT 10566670 11994131
INDUSTRY STRUCTURE AND DEVELOPMENT:
Ever since 1996, the economy is passing through a recessionary phase.
Enquiries for new project assignments dropped drastically. The whole
industry suffered and number of companies reported huge losses. This is
mainly because' of changes in technology, which has rendered old
equipment's out of market. The company has made an attempt to rent out
little equipment and has made a modest income. Your directors are working
on a plan to add new and latest equipment's to successfully compete in the
* Vast market
* Diversification plans
* Liason activities
* Backward and Forward integration
* Large overhead
* Competition from global firms
* Recovery of Outstanding.
FUTURE BUSINESS OUTLOOK:
In this information age the knowledge is power. Timely and accurate
information is sought by a number of companies. A large number of companies
are looking for diversification plans as their existing activities are no
more profitable. The company also plans to venture into such activities.
INTERNAL CONTROL SYSTEMS:
The level of activities of the company at present is quite low. Keeping in
view the scale of operation, size of the company, and cost aspect, the
company has reasonably good internal control system to ensure that all its
assets are safeguarded and protected against loss from unauthorised use or
disposition and transaction are authorised, recorded and reported
The internal control systems are also designed to ensure that the financial
and other records are reliable, for preparing financial statements and
other data. The audit committee, which have been formed during the year,
will also play an important role in times to come. A provision for
impairment of loss has been duly recorded.
RISKS AND CONCERNS:
The business of the company largely depends on the improvement of
investment climate, growth of medium scale sector and pooling of resources
by the company. The company will endeavour its best to capitalise on its
strengths and improve upon its weak areas.
HUMAN RESOURCES DEVELOPMENT:
Rather than recruiting permanent employees, the company will prefer to out
source various services based on assignments in hands. This will minimise
the risk and keep the overheads at reasonable level.
FOR AND ON BEHALF OF THE BOARD
Place : Mumbai
Date : 30.06.2009