Your Directors take pleasure in presenting the 44th Annual Report of the Companytogether with the Audited Accounts and Auditors' Report for the financial year ended on31st March 2014.
FINANCIAL RESULTS AND OPERATIONS
The performance of the Company for the financial year ended 31st March 2014 issummarized hereunder:
|Details ||For the year ended ||For the year ended |
| ||31.03.2014 ||31.03.2013 |
|Sales/Income from operations ||59.18 ||49.63 |
|Other Income ||7.66 ||7.69 |
|Manufacturing Expenses ||38.35 ||37.73 |
|Other Expenses ||19.48 ||19.37 |
|Finance Cost ||0.29 ||0.56 |
|Gross Profit/(Loss) after finance Ca before Depreciation & Tax ||8.72 ||(0.34) |
|Depreciation ||5.18 ||5.26 |
|Net Profit/(Loss) before Tax for the year ||3.54 ||(5.60) |
|Net Profit /(Loss) for the year ||3.54 ||(5.60) |
The operations of the Company have improved with the income going upto to Rs.59.18lakhs as compared to Rs.49.63 lakhs during the previous year. The Company made a netprofit of Rs.3.54 lakhs after providing for depreciation of Rs.5.18 lakhs. Your Directorsare hopeful of maintaining this trend during the current year with the orders in handamounting to about Rs.70.00 lakhs.
During the year under review the Company has not accepted any fixed deposit within themeaning of Section 58Aof the Companies Act 1956.
PARTICULARS OF EMPLOYEES
None of the employees whether employed throughout the year or part of the year were inreceipt of remuneration exceeding limits specified in Section 217 (2A) of the CompaniesAct 1956 and rules made thereunder.
FOREIGN EXCHANGE EARNINGS AND OUTGO: Nil
CONSERVATION OF ENERGY
Steps to optimize energy consumption in various manufacturing operations is beingcontinuously taken; however the Company's operations are not energy intensive.
RESEARCH & DEVELOPMENT AND TECHNOLOGY ABSORPTION
1. Specific areas in which R&D carried out by the Company Design of Fluid EnergyMill and Classifiers.
Your Company continues to enjoy the support from the workforce. Industrial Relationswere cordial during the year under review.
BOARD OF DIRECTORS
Dr. B. Neeta Kumari retires by rotation and not seeking the re-appointment.
Sri S. Manohar Raju retires by rotation being eligible for him self re-appointment atthe forth coming Annual General Meeting.
Pursuant to Section 149 of the Companies Act 2013 the tenure of the IndependentDirector is upto five consecutive years Board recommends appointment of Sri S. ManoharRaju as Independent Director for a term of upto five consecutive years for approval ofthe Members of the Company at the ensuing Annual General Meeting.
Mr. A. Subba Rao retires by rotation and being eligible offers himself forre-appointment at the forthcoming Annual General Meeting.
Pursuant to Section 149 of the Companies Act 2013 the tenure of the IndependentDirector is upto five consecutive years. Board recommends appointment of Mr. A. Subba Raoas Independent Director for a term of upto five consecutive years for approval of theMembers of the Company at the ensuing Annual General Meeting.
M/s. Brahmayya & Co. Chartered Accountants Hyderabad retire at the conclusion ofthe ensuing Annual General Meeting and being eligible offer themselves for re-appointment.The Board recommends their re-appointment at the ensuing Annual General Meeting.
The Auditors' Report is unqualified.
Pursuant to the provisions of 292A of the Companies Act 1956 and provisions of theListing Agreement the Company has constituted an Audit Committee. The composition scopeand powers of Audit Committee together with details meetings held during the year underreview forms part of Corporate Governance Report.
The Central Government has directed to conduct a Cost Audit in respect of the specifiedproducts of the Company. The Board of Directors of the Company accorded its approval forappointment of M/s. N.S.V. Krishna Rao & Company Cost AccountantsD.No.12-2-823/A/78 Geetha Apartments Lane Adj. to Chandana Brothers Santosh NagarColony Mehdipatnam Hyderabad-500028 as Cost Auditors of the Company.
The Company does not have a subsidiary Company.
MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT
The application of ultra-fine powders is increasing in industry over the past fewyears. The demand for the Company's product will also increase and efforts need to be madeto take advantage of this increased demand. Special efforts need to be made to ensure thatthe Company's products are known to potential users so that additional sales aregenerated.
CORPORATE GOVERNANCE REPORT
As per Clause 49 of the Listing Agreement a separate section on Corporate Governancetogether with a Compliance Certificate from the Practicing Company Secretary forms part ofthis Annual Report.
DIRECTORS' RESPONSIBILITY STATEMENT
The Audited Accounts for the year under review in conformity with the requirements ofthe Companies Act 1956 and the Accounting Standards. The financial statements reflectfairly the form and substances of transactions carried out and reasonably present theCompany's financial condition and results of operations. Your Directors confirm that:
i) in the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanations relating to material departures if any;
ii) that the accounting policies selected have been applied consistently and judgmentsand estimates that are made reasonable and prudent so as to give a true and fair view ofthe state of affairs of the Company as at 31st March 2014.
iii) that proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 1956 forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; and
iv) that the Annual Accounts of the Company have been prepared on 'going concern'basis.
The Board of Directors would like to thank Business Partners Bankers Investors andAuditors for their continued support and association. We would also like to place onrecord our appreciation of the collective contribution made by all the employees duringthe last year.
By order of the Board of Directors of
INCON ENGINEERS LIMITED
Chairman & Managing Director
Date : 27.05.2014.