HEM HOLDINGS AND TRADING LIMITED
ANNUAL REPORT 2010-2011
Your Directors are pleased to present the 29th Annual Report and Accounts
of your Company, for the year ended 31st March, 2011.
FINANCIAL RESULTS: (Rs. in '000)
Year ended Year ended
Total Income 937.76 811.93
Total Expenditure 325.03 277.75
Profit Before Tax 612.73 534.17
Provision for Taxation 145.00 122.00
Profit after Tax 467.73 412.17
In order to conserve funds of the Company, for future growth, the Board of
Directors have decided not to recommend any dividend for the year under
The total Income for the financial year 2010-2011 was Rs. 9.37 lacs as
against Rs. 8.12 lacs for the year 2009- 2010. The profit before tax was
Rs.6.12 lacs and profit after tax was Rs. 4.67 lacs for the year under
The Company have attained higher income for the year under review, due to
increase in rental income, dividend income and interest received. In future
your Company expects better result in comparison to the current year.
Conservation of Energy, Technology & Foreign Exchange:
The Company not being a manufacturing Company and there being no inflow and
outgo of foreign exchange, conservation of energy, Technology & Foreign
Exchange is not applicable, as such, information as required under Section
217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of
particulars in the Report of Board of Directors Rules, 1988), is not
The Company has not accepted any deposit within the meaning of section 58A
of the Companies Act, 1956 and the Rules made there under.
PARTICULARS OF EMPLOYEES:
Information as per Section 217(2A) of the Companies act, 1956 read with the
Companies (Particulars of employees) Rules 1975 as amended, are not
applicable, as none of the employees drew remuneration beyond the limits
BOARD OF DIRECTORS:
Shri Shamji Mulji Shah, Director of the Company retires by rotation at the
ensuing Annual General Meeting and being eligible offer himself for re-
appointment. Your Directors recommend his appointment.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
a) That in the preparation of the annual accounts for the year, the
applicable accounting standards have been followed and that there are no
b) They have selected such accounting policies and have 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
Company at the end of the financial year, and of the profit of the Company
for the period ended 31st March, 2011.
c) They have 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.
d) They have prepared the annual accounts on a going concern basis.
M/s Parikh & Shah, Chartered Accountants, who are the Statutory Auditors of
the Company, hold office until the ensuing Annual General Meeting. It is
proposed to re-appoint them for the financial year 2011-2012. They have
under section 224(1) of the Companies Act, 1956, furnished the certificate
of their eligibility for re-appointment.
The observations made by the Auditors is self-explanatory, and, hence do
not require any further explanations.
Your Directors wish to place on record their appreciation of the assistance
and cooperation extended to the Company by Banks, employees, shareholders
and all other persons who are associated with the Company.
Date : 3rd August, 2011 For and on behalf of the, Board
(H. C. SHAH)
MANAGEMENT DISCUSSION AND ANALYSIS
THE INDIAN ECONOMY:
Fiscal year 2010-11 was a mixed year for the Indian Economy. The economy
began the year on a confidential note with high growth which however
tapered off towards the closing of the year. Thus the GDP grew by 9.3% in
the first Quarter (April-June 2010) which dropped to 7.8% in the last
Quarter (Jan-March 2011) accompanied by a steep drop in investment levels.
The biggest threat to the growth performance of the Indian economy was the
rising inflation. As compared with the last fiscal year 2009-10 in which
the performance of the Indian Economy greatly exceeded expectations, it was
hard to visualize strong economic growth in the year 2010-11. The
implications of this, for India's strategy to return to the 9.0 per cent
growth trajectory, are that public policy must promote business confidence
and facilitate increased investment.
The objective of the business is to further enhance the rental portfolio of
assets/premises and increase the rental revenue flow from these assets.
Internal Control System and their Adequacy:
The Company has adequate Internal Control System commensurate with the size
and nature of the business. This system has been designed to ensure that;
a. All assets are acquired economically, used efficiently and protected
against loss, destruction or unauthorized use.
b. All resources are used efficiently and effectively.
c. Accounting, Financial, and other Operational information are accurate,
reliable and provided timely, and
d. All applicable laws and internal policies are complied with in true
We have an internal audit function which is empowered to examine the
adequacy and the compliance with policies and statutory requirements. The
top management and the Audit Committee review the findings and
recommendations in the Inter Audit Report, so that the corrective measures
can be initiated as appropriate.
Operational and Financial performance:
The Company has achieved a considerable growth in the financial performance
during the year.
1. Total Revenue:
Total Income of the Company for the financial year 2010-11 amounts to
Rs.937767.49 which was an increase of 13.42% over last year's figure.
2. Profit before Tax:
Profit before tax for the year under review was Rs. 612735.98, an increase
of 12.82% over the last year's figure.
3. Profit after Tax:
Profit after tax for the year under review was Rs. 467735.66 which
registered an increase of 11.88% over the last year's figure.
Forward Looking Statements:
The above report contains certain forward looking statements within the
meaning of applicable security laws and regulations. The Company assumes no
responsibility to publicly amend, modify or revise any forward looking
statements, on the basis of any subsequent developments, information or