INDIA INTERNATIONAL MARKETING CENTRE LIMITED
ANNUAL REPORT 2007-2008
Your Director have pleasure in presenting the Fifteenth Annual Report along
with the audited Statement of Accounts for the year ended 31st March, 2008.
(Rs. in lakhs)
Total Income 2.13 153.07
(Deficit)/Profit before Tax, Dep. & (10.49) 143.73
Depreciation (0.12) (0.16)
Public issue Expenses W/off 0.00 0.00
Prior Year Adj. (0.006) (0.04)
Prov. for Deferred Tax 0.05 0.06
Prov. For Fringe benefit Tax 0.07 0.08
(Deficit)/profit after Tax (10.54) 143.64
Balance of Deficit b/f (939.53) (1083.22)
Total Deficit carried to Balance sheet (950.13) (939.59)
The Company did domestic sales in Jewellery worth Rs. 1.80 Lakh,during the
year as against the sales of Rs.0.72 Lakh in the previous year registering
a approximately 2.5% increase. We are continuing the tempo and hope to do
much better in the coming year. However there is no difference in demand
for the export logistic services at Rotterdam, despite the tremendous
growth in exports from India. Due to diminution in value of investment of
shares of subsidiary Company, there was overall Deficit of Rs. 10.49 Lakh
against surplus of Rs.143.73 Lakh in the previous year.
Due to accumulated losses, your Directors express their inability to
declare any dividend.
Your Director, Dhruveswar Nath retire by rotation and being eligible,
offers themselves for reappointment.
M/s. AVS & Co., Chartered Accountants, the Auditors of the Company,
retire at the ensuing Annual General Meeting and being eligible offer
themselves for re-appointment.
The observation of the Statutory Auditors in their Audit Report
are self explanatory. The same have been noted for future compliance.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING
AND OUT GO:
As the Company is not a manufacturing company, report on conservation of
energy and technology absorption is not applicable.
FOREIGN EXCHANGE EARNINGS AND OUTGO:
Foreign Exchange Earning Exports (FOB) - -
Foreign Exchange Outgo - -
Foreign travelling - -
Import of Diamond - -
Export Initiatives taken and plans - -
The export logistic services - set up by the company at Rotterdam (The
Netherlands) at the instance of the Union Ministry of Commerce are good
means at export promotion. These services enable the companies using them
to easily contact the potential overseas buyers, to make rapport with them
and motivate them to procure goods & services from India. While the company
has continued to promote theses services during the year, there has not
been a favorable response.
The Committee met five times during the yea. The Board
of Directors has accepted all the recommendations of the Audit
The Company has not accepted any fixed deposit during the year ended 31st
PARTICULARS OF EMPLOYEES:
During the period, there was no employee in the company whose particulars
are required to be reported under Section 217 (2A) of the Companies Act,
A statement pursuant to section 212 of the Companies Act, 1956 relating to
the subsidiary Company, India International Marketing Centre b.v., The
Netherlands is attached to the accounts. The statements of accounts for the
Year ended on March, 2008 is annexed.
CONSOLIDATED STATEMENTS OF ACCOUNTS:
In accordance with Accounting Standard 21 (Consolidated Financial
Statement) issued by The Institute of Chartered Accountants of India, the
consolidated financial statement of accounts of the company and its
subsidiary company, India International Marketing Centre b. v. Rotterdam
for the year ended 31st March, 2008 is annexed.
As per clause 49 of the Listening Agreements with the stock exchange a
Management Discussion and Analysis report on Corporate Governance
together with the Auditors certificate regarding compliance of
condition of Corporate Governance form part of the Annual Report.
SHARE REGISTRY ACTIVITY:
In terms of SEBI Circular No. D & CC/FITTC/CIR-15/2002 dated 27 December
2002, M/s. Mas Services Pvt. Ltd. A Registrar and Share Transfer Agent
registered with SEBI, is the common agency for share registry work.
The Board of Director hereby confirm that:
1) In the preparation of the annual account for the ended March 31, 2008
the generally accepted accounting standard in India have been followed in
all material respects.
2) Accounting policies have been selected and applied consistently and
judgements and estimates made 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 March 31, 2008 and of the loss of the company for that
3) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act for safeguarding the assets of the company and for
prevention and detection of fraud and other irregularities.
4) The annual account for the year ended March 31, 2008 have been prepared
on a going concern basis.
Your Directors express their gratitude to the Government of India and banks
for their co-operation and also wish to thank the company's The Board
records its sincere appreciation for the continuing support and cooperation
from bank, government authorities, shareholder, clients and staff of the
For and on behalf of the board
For INDIA INTERNATIONAL MARKETING CENTRE LTD.
Place: New Delhi (ASHOK KUMAR JAIN)
Date : August 22, 2008 Chairman
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
INDUSTRY STRUCTURE & DEVELOPMENT:
The export logistic services like offices/showrooms, permanent display,
etc., created by this company at Rotterdam (The Netherlands) on sponsorship
from the Union Ministry of Commerce, Government of India, are essentially
an activity to facilitate exports from India. These services are offered to
Indian exporters to unable them to promote their products abroad and to
make off-the-shelf deliveries. The performance of this company is thus
linked basically with the state of the domestic and the world markets and
the profitability of exports to a level enabling Indian exporters to hire
our services at Rotterdam.
India is a leading producer of finished jewellery and polished stones.
Gemstone and jewellery represents the most significant specialist segment
of India retaining, accounting for a high proportion of total retail spend.
According to the Gems & Jewellery Export Promotion Council, the total
jewellery market in India is around USD 13 Billion of which diamond
jewellery make up around 20%. The segment is dominated by very small family
owned retailer and the total size of the market is difficult to measure.
Indian household have traditionally relied on a family jeweler to provide a
quality assurance. Consumer brand awareness is low. Most purchases take
place at festival period and to celebrate family rituals such as marriages
Now organized jewellery retailer are increasingly offering brand solution
to the demand for quality and value as consumers move away from traditional
OPPORTUNITIES AND THREATS:
The export from India have been rising since 2002 after having remained
sluggish for seven years after 1995 when the export logistic services were
created by this company at Rotterdam. The Indian exports have in fact shown
20% plus growth rates during the recent years. With the increase in export,
the Company perceives that there would be opportunities for the
infrastructure facilities created at Rotterdam. Due to increasing
improvement in Indian infrastructure facilities and competitive cost in
India; and rising infrastructure cost in Europe, the Company is facing
threat for its services at Rotterdam. In respect of domestic Sale of gems
and jewellery, vast opportunities are perceived on account of growth in
Indian Economy and increase in number of middle-class category persons as
well as their buying power. Overflodding of foreign branded products and
increase in price of gold may pose a threat to the industry.
SEGMENT WISE PERFORMANCE:
Finding not very bright prospects for our export logistics services at
Rotterdam, the company engaged itself more on domestic trade during the
year and made sales worth Rs. 2.13 Lakhs as against Rs.1.53 Crore In the
Due to rising cost of the infrastructure facilities in Europe, the outlook
for the export logistic services at Rotterdam is not very bright. The
Company forsee a good and bright future in retailing of gems and jewellery
business. The outlook is thus that of good days ahead.
RISK AND CONCERN:
The company's activities draw their sustenance and depend largely on the
market conditions. Any change in the market conditions, whether adverse or
otherwise, has the cascading effect on the working of this Company. Apart
from the normal business risks as generally apply to business organisation;
the company does not foresee any other serious area of concern. The company
has also no foreign exchange risk coverage due to its limited exposure.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The company has proper and adequate system of internal control to ensure
that all the asset are safeguarded against loss from unauthorized use or
disposition and that all transaction are authorisedly recorded and reported
correctly . Cross functional internal checks mechanism has been created to
ensure compliance of procedure. An audit committee headed by a non
executive independent director is in place to review the various areas of
the internal control system and take suitable remedial steps where
Your company is deeply concerned about the safety, welfare and training of
employees. Employee/employer relation were cordial throughout the year. As
at March 31,2008, the total number of employees stood at 3.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
The details of the financial performance of the company are appearing in
the Balance Sheet, Profit &Loss Account & other financial statement etc.
Highlights for the financial year ended March 31, 2008 are as under:
Sales Rs. 1.80
Other income Rs. 0.32
Net Loss Rs.10.54