ANNUAL REPORT 2009-2010
The Members of the Company,
Your Directors have pleasure in presenting before you the 18TH Annual
Report of the Company together with the Audited Statement of Accounts for
the year ended 31 March, 2008.
(Amt. Rs. In Lakhs)
FINANCIAL RESULTS 2009-2010 2008-2009
Total Income 2.81 2.41
Total Expenditure 2.94 2.89
Profit before Tax -0.13 -0.48
Profit after Tax -0.13 -0.48
FINANCIAL & OPERATIONAL HIGHLIGHTS
The Company achieved satisfactory performance and there is hope to do
better in future also.
The Board of Directors of the Company has not declared any dividend for
The Company has not accepted deposits from the public during the year
attracting the provisions of section 58A of the Co. Act, 1956and Rules
framed there under.
The Company has formed an Audit committee comprising of 3 directors. The
terms of the reference of the committee are in line with the requirements
specified u/s. 302A of the Co Act, 1956 and Corporate Governance as stated
in Clause 49 of the Listing Agreement.
During the year under review, MUKESH J SHAH will retire by rotation at the
ensuing Annual General Meeting of the Company and being eligible, offers
himself for re-appointment.
M/s. Shirish Dalal & Associates, Chartered Accountants have given their
consent for reappointment of Auditors of the Company.
PARTICULARS OF EMPLOYEES
There was no employee in the Company whose particulars are required to be
furnished as per section 217 (2A) of the Companies Act, 1956, read with
Companies (Particulars of Employees) Rules, 1975 as amended upto date.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
The information under section 217(1)(e) of the Companies Act, 1956 on
Conservation of Energy, Technology Absorption as required to be disclosed
is not applicable to your company since it is engaged in the financial
During the year under review the Company has no foreign exchange earnings
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to section 217 (2AA) of the Companies Act, 1956 the Directors
(a) That in the preparation of annual accounts, the applicable accounting
standards have been followed;
(b) 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 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 that period;
(c) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provision
of the Companies Act, 1956 for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities; and
(d) That the Directors have prepared the Annual Accounts on a going concern
CORPORATE GOVERNANCE AND COMPLIANCE
A report on corporate governance along with Management Discussion and
Analysis is annexed to this report. A certificate from Statutory Auditors
with regards to the compliance of the corporate governance, as stipulated
in Clause 49 of the Listing Agreement, by the company is annexed to this
The company has fully complied with all mandatory requirements prescribed
under Clause 49 of the listing agreement. In addition, the company has also
implemented some of the non mandatory provisions of Clause 49.
Your Directors wish to express their sincere appreciation for the co-
operation and support received from Banks, shareholders, customers,
Officers and other employees of the Company throughout the year.
By order of the Board
For CROMAKEM LIMITED
Place: AHMEDABAD KIRIT SHAH
Date : 04/09/2010 CHAIRMAN
MANAGEMENT DISCUSSION AND ANALYSIS
The Company is in the business of financial activity. The key issues of the
Management Discussion and Analysis are given below.
(a) Industry Structure and Developments
The company is engaged in consultancy, share broking and share trading
The fortunes of the Finance industry are, to a large extent, linked to the
growth of the Industry and Investment sentiments of the people. The
Industry is facing intense competition from the Foreign Financial
The strength of the company is known from its reputation which the company
has earned due to its quality business and cordial relation with its
clients and presently the company's financial position is sound due to boom
in capital market because of governmental support.
(c) Comment on Current year's performance
Receipts The Receipt has significantly increased.
Operating Expenses The operating Expenses are well under control.
Operating Profits The Operating Profits are up to industry mark.
Indirect Expenses The Indirect Expenses are under control.
Depreciation Reasonable amount of Depreciation is provided.
Profit before tax Profit before tax is also showing an improving trend.
Taxation Taxation is Provided as per Income Tax Act.
Debtor/Sales Debtors are reasonable and realization period has decreased
due to the policy of the Company.
Creditors/Purchase The Company has an established credit.
d) Opportunities and Threats
The impact of boom in capital market and real estate market due to
government support has provided a boost to the economy and it is set to
grow at 8% to 9% supported by a smart growth in manufacturing and services
sectors. This brings prosperity to a country and more and more people go
for investment in Share market. Outlook for the year 2011 is positive.
While the overall demand outlook for the year 2010 remains good, the
Company expects the pressure on quality customers to continue due to
(e) Segment wise performance
The business of the Company falls under a single segment i.e. Share
broking, Investment and trading in shares and derivatives for the purpose
of Accounting Standard AS-17.
The continual growth in the Finance sector is expected to give the
necessary support to the Finance industry. The Company is making all
efforts to accelerate growth of its business. It expects to improve its
position in the market by focusing on technologically advanced and more
profitable products/market segments and working aggressively in the areas
of productivity, efficiency and cost reductions.
(g) Risk and concerns
The menace of local Finances and play of angadia has further compounded the
problems of the organised Finance Industry as they use inferior way of
transferring funds. The Stock market is also a risky place to put one's
fund. The pull back of FIIs will also have an adverse effect on the share
(h) Internal control system
Internal audit and other controls have been found to be adequate. These are
reviewed periodically by the Audit Committee and found the performance
(i) Developments in human resources and industrial relations
Information as per Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particular of Employees) Rules, 1975 is not required to be given
as no employee falls under it. The Company continued to have cordial
relations with all the employees.