CVIL INFRA LIMITED
ANNUAL REPORT 2010-2011
Your Directors have pleasure in presenting their 19TH Annual Report
together with audited Balance Sheet of the Company as on 31st March 2011
and Profit and Loss Account for the year ended 31st March 2011.
FINANCIAL RESULTS & FUTURE PROSPECTUS OF COMPANY: (Rs. In Lacs)
Particular Current year Previous year
Operating Profit before Depreciation & tax 1.03 (1266.67)
Depreciation for the year 0.00 0.00
Profit after Depreciation 1.03 (1266.67)
Provision For Income Tax .32 0.00
Profit after tax .71 (1266.67)
Surplus brought forward (721.06) 545.61
Net Profit / Loss Carried Forward (720.34) (721.06)
Still Your Directors are very much hopeful to increase the business of the
company in the coming financial year and there is very much bright prospect
of profit making.
Due to inadequacy of profit available for appropriation during the year
under review, your directors express their inability to recommend any
dividend for the year ended 31st march 2011.
Members are requested to approve the appointment of M/s. TIWARI &
ASSOCIATES, Chartered Accountants, as the Statutory Auditors of the
company. M/s. TIWARI & ASSOCIATES. have since furnished a certificate under
Section 224(1) (B) of the companies act, 1956 regarding their eligibility
for appointment as auditors of the company.
The relationship with the personnel of the company continued to be cordial.
The Directors wish to place on record their sincere thanks to all the
employees for their efforts. None of the employees of the company is in
receipt of remuneration in excess of the sum prescribed under section
217(2A) of the companies act, 1956, read with the companies (particulars of
employees) Rules, 1975.
DIRECTOR'S RESPONSIBILITY STATEMENT:
Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Board of the
Directors hereby states that:-
1. In the preparation of the Annual Accounts, the applicable accounting
standards had been followed and there is no material departure;
2. The Directors had selected such accounting policies and applied them
consistently and made judgments 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 and of the profit and loss of the
company for that period;
3. The Directors had taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of this
Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
4. The Directors had prepared the Annual Accounts on a going concern basis.
The company believes in good corporate practices to enhance the shareholder
value. Realizing this, the company has adopted many practices over the last
few years, as a result a number of steps were taken to improve corporate
The Company has not accepted any Deposit from the public.
Auditor's report is self-explanatory.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
EXPENDITURE IN FOREIGN CURRENCY AND FOREIGN EXCHANGE:
The Board of Directors of your Company wish to express gratitude for the
cooperation guidance and support received from the employees at various
levels. The Board would like to sincerely thank all the Shareholders and
Creditors for their continued support.
For on behalf of the of the Board
PLAC : NEW DELHI
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE, DEVELOPMENTS, OPPORTUNITIES & THREATS:
India economy continues to be one of the fastest growing economies in the
world. The economic recovery witnessed after the global meltdown has been
sharper than what was anticipated. This has enhanced confidence about the
sound fundamentals of Indian Economy and it is expected to have GDP growth
of more than 8% in the current financial year.
The compounded annual growth rate of India's domestic apparel market is
expected to grow @ 11% india plays a major role in global apparel markets
due to availability of abundant man power, raw material and infrastructural
developments. Indian exports in textile sector comprises export of cotton,
man-made fibre, silk, wool, jute and other textile materials.
Domestic consumption of fabric and textile products is increasing due to
growing earning capacity of individuals. It is also one of the youngest
countries in the world, with over 65% population below the age of 35 years.
In India, there are more than 30 crore middle class people with higher
disposable income. In coming years, there will be increasing demand for
various consumer products by this segment of population.
Due to global meltdown, the consumers in the west have reduce their
consumption. The growing awareness about ecological factors has impacted
exports from developing countries due to use of polluting dyes and
environment damaging manufacturing practices. The competition is increasing
from other developing countries post 2005.
SEGMENT WISE OR PRODUCT - WISE PERFORMANCE:
Your company mainly operates in single product segment, within domestic
market only. After years of closure of business, the management of your
company have started trading activity in domestic fabric market. The
business is expected to growth in the coming years.
Tremendous boom in retailing industry is basically due to increase of
consumption of household products. Due to significant increase in income
levels, the consumptioremendous boom in retailing industry is basically due
to increase of consumption of household products. Due to significant
increase in income levels, the consumption pattern has also changed. The
life style of individuals is changing and they are preferring products
under premium segment. The adverse impact of western financial meltdown is
not acutely felt due to domestic industry and consumption.
Your company has taken various initiatives for increase of business,
product portfolio. Presently, we are doing business in domestic market but
we are exploring possibilities of export of our products to the western
countries, where we had been doing business about a decade ago.
We are also exploring the possibilities of leasing out an industrial unit
on enhance our productivity and launching of quality products in the
In the coming years, we may plan to launch it as an apparel brand in the
country. Due to growing multi brand outlets, we do not foresee any
difficulty in pushing the brand in the domestic market.
RISK AND CONCERNS:
Business is exposed to external and internal risks. Some risks can be
predicted and minimized with careful planning and implementing the measures
to mitigate them, while some risks cannot be insured against. Your company
has been facing many risks including risk to run business due to shortage
of working capital. The tight fund situation may affect company's plans to
enlarge its business activities. Due to tight liquidity position, we are
not able to lay hands on talented people in the industry. The management of
your company is planning to leverage their personal assets to raise funds
for the company, to overcome this risk.
The domestic market is showing inflationary tendencies. To curb inflation,
the Reserve Bank of India can tighten its monetary policy, which can affect
company financial expenses. Fluctuation in value of foreign currencies can
also affect export plans of the company.
The company is taking various initiatives to increase human resources for
better productivity. To save on cost, the company is appointing non-
experienced staff and taking initiatives for internal training and
development of skills. This will help in enhancing their emotional and
intellectual engagement with the company.
INTERNAL CONTROL SYSTEM AND ADEQUACIES:
Your company had started its business from scratch. To grow it faster, the
integrity and ethical behavior of management and employees at all levels
and compliance of the laws and regulations is very essential. The systems
are being put in place to ensure adequate internal controls in operations
of the company. Apart from statutory audit, your company have adequate in-
house internal audit practices.
FORWARD LOOKING STATEMENT:
Statement in this report on Management Discussion and Analysis, describing
the company's objectives, projections, expectations or predictions may be
forward looking, considering the applicable laws and regulations. These
statements are based on certain assumptions and expectation of future
events. Actual results could, however differ materially from those
expressed or implied. Domestic consumption, price trends, change in
government regulations and tax structure can make a difference in company's
performance in future. The company assumes no responsibility in respect of
the forward looking statements herein, which may undergo changes in future
on the basis of subsequent developments, information or events.