HIGHLAND INDUSTRIES LIMITED
ANNUAL REPORT 2010-2011
Highland Industries Ltd.
Your Directors have pleasure in presenting before you the ANNUAL REPORT of
the Company together with the Audited Statement of Accounts for the year
ended 31st March, 2011.
FINANCIAL RESULTS 2010-2011 2009-2010
Turn Over 1,754,602,690 921,210,837
Profit (Loss) Before Tax 10,068,886 3,996,905
Provision for Taxation 3,300,000 1,235,000
Profit (Loss) After Tax 6,768,886 2,761,905
During the year under review, company has posted a turnover of Rs. 175.46
Cr. as against previous year turnover of Rs.92.12 Cr. registering about
100% growth. Company has made significant efforts in creation of market and
name for its quality. Further to report that Company is taken serious
initiatives for development of business and make dent in market share
through good marketing strategies. Your directors are therefore confident
of coming out with significant growth in the future years and thereby
wiping out losses incurred in the previous years and posting a decent
During the period under review the Company did not accept deposits in terms
of Section 58A of the Companies Act, 1956 and pursuant to the provision of
the Non-Banking Financial Companies (Reserve Bank) Direction 1997.
Mr. Sandip Sheth, Director of the company retires by rotation at this
Annual General Meeting and being eligible, offers himself for re-
appointment. The brief resume and other details of directors, who are to be
re-appointed as stipulated under clause 49(IV)(G) of the listing agreement,
are furnished in the corporate Governance Report forming part of the Annual
Report. During the year no changes had taken place in the constitution of
the Board of Directors of the Company.
M/s. N. L Upadhyaya, Chartered Accountants, Mumbai, the Auditors of the
Company retires at the conclusion of this Annual General Meeting. They are
eligible for reappointment and indicated their willingness to act as an
Auditor, if appointed and the appointment shall be in the limits prescribed
under the provision of the Companies Act, 1956.
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 EARNING/
The operations of the company are not energy-intensive. However adequate
measures have been taken to reduce energy consumption by using energy
efficient computers and equipments with the latest technologies. Your
company constantly evaluates new technologies and invests in them to make
its infrastructure more energy-efficient. Currently your company use
During the year under review the Company has no foreign exchange earnings
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors hereby report that:
(a) In the preparation of annual accounts, the applicable accounting
standards have been followed;
(b) Appropriate accounting policies have been selected and applied
consistently and judgments and estimates made that are responsible 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 ended 31st March 2011;
(c) Proper and sufficient care has been taken 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:
(d) Annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE AND COMPLIANCE
A report on corporate governance along with Management Discussion and
Analysis is annexed to this report as Annexure. 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 report.
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.
The Board of Directors take the opportunity to thank the Bankers and
Government for the Co-operations and support by them from time to time in
the operation of the company during the year. The Board also place on
record its deep appreciation for the contribution made by the employees at
Place : Mumbai By order of the Board
Date : 05-08-2011 For Highland Industries Ltd.
MANAGEMENT DISCUSSION AND ANALYSIS
Company is mainly operating into the Trading of Textiles and chemicals. The
key issues of the Management Discussion and Analysis are given below.
(a) Industry Structure and Developments
The Textile sector is showing excellent potential on back-up of increased
purchasing capacity of middle income group and rural population. Even
though poor monsoon hit agricultural income, increased social schemes and
other activities supported the rural income and in turn supported the
textile sector in general.
General slump down in chemical industry during last year continues and the
same may persist for few more years.
Qualified professionals under an efficient Board of directors gives the
company an edge over the competitors and a team of executives is the major
strength of the Company.
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 is trying to expand its business into other areas.
(c) Comment on Current year's performance
Receipts : The current year turnover is 175.7 Crore.
Operating Expenses : The operating Expenses are well under control.
Profit before tax : Company Earned a profit before tax of Rs.1.00 Crore/
Taxation : Rs.33.00 Lacs is Provided for taxation.
Debtor/Sales : Debtors are reasonable and realization period has
decreased due to the policy of the Company.
d) Opportunities and Threats:
We operate in a market characterized by swift changes and convergence. We
face formidable competition in every aspect of our business; particularly
from companies that seek to connect people across geographies over IP based
communication and collaboration on multiple platforms. We do face
competition from other traders domestically and internationally.
Your company however, has a well-integrated platform that will ensure we
stay ahead of the curve. We are augmenting features and products to our
existing products and own the complete value chain of products and services
(e) Segment wise performance
The business of the Company falls under a single segment i.e. Trading on
textile and chemicals for the purpose of Accounting Standard AS-17.
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
(g) Risk and concerns
The market penetration by new entrants in the Company's business area and
the strong hold of existing Big players in the market places hurdles in the
growth path of the Company. However the company is aggressively using well
talented employees and personal to establish new business areas and to
develop existing market.
(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 satisfactory.