KANCHAN INTERNATIONAL LIMITED
ANNUAL REPORT 2011-2012
KANCHAN INTERNATIONAL LIMITED
Your Directors present the 18th Annual Report together with the Audited
statement of Accounts of the Company for the year ended 31st March 2012.
1) FINANCIAL RESULTS:
The Financial performance of your Company for the year under review is
YEAR ENDED YEAR ENDED
PARTICULARS 31.03.2012 31.03.2011
Revenue from operations (net) 394,452,303 430,112,159
Other Income 13,489,685 33,398,652
Less: Expenditure (excluding Depreciation) 401,792,553 442,380,327
Profit/(Loss) Before Depreciation and
Taxation 6,149,435 21,130,484
Less: Depreciation 4,688,966 4,829,417
Less: Prior period items - -
Profit/(Loss) before Taxation 1,460,469 16,301,067
Less: Extra-ordinary item - 32,304
Less: Provision for Taxation (1,81,960) 22,290,812
Net Profit/(Loss) after Taxation 16,42,429 (6,022,049)
2) REVIEW OF OPERATION:
During the year, the Company's revenue from operations has decreased from
Rs.430,112,159/- in previous year to Rs. 394,452,303/- in current year due
to unstable market conditions. The expenditure of the Company excluding
Depreciation has also decreased from Rs. 442,380,327/- in previous year to
Rs.401,792,553/- in current year. The profit after tax of the Company has
increased to Rs.16,42,429/- as compared to loss of Rs.6,022,049/-in the
Your Company could achieve marginal profit of Rs. 16.42 Lacs during the
year as compared to loss of Rs. 60.22 lacs in the previous year. Your
Directors are hopeful to achieve a better result during the current
Due to meagre profit, your Directors do not recommend any dividend for the
financial year ended 2011-12.
4) ISSUE OF EQUITY SHARES:
In the Board Meeting held on 31st March 2012 and 9th May 2012, the Board
issued 4,76,300 and 13,42,608 equity shares respectively pursuant to
conversion of equity warrants issued on preferential basis to Promoters and
5) DELISTING OF SECURITIES FROM ASE AND MSE:
As decided by the Members in the 15th Annual General Meeting, your Company
has completed all the procedure for delisting of the securities from the
Madras as well as Ahmedabad Stock exchanges. However, formal letters of
delisting of the securities from the said Stock exchanges are awaited.
6) SUBSIDIARY COMPANY AND CONSOLIDATED FINANCIAL STATEMENT:
The Company has a Subsidiary in the name of Kanchan International Middle
East F.Z.E in UAE. Pursuant to Listing Agreement, the Consolidated
Financial Statement of the Company alongwith its Subsidiary forms part of
Annual Report. Also the Ministry of Corporate Affairs, Government of India,
vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February
2011 respectively has granted a general exemption from compliance with
Section 212 of the Companies Act, 1956 i.e. attaching the Balance Sheet and
Profit & Loss Account of the Subsidiary Company, subject to fulfillment of
conditions stipulated in the circular. The Company has satisfied the
conditions stipulated in the circular and hence is entitled to the
exemption. Necessary information relating to the subsidiaries has been
included in the Consolidated Financial Statements. The Company will make
available the Annual Accounts of the Subsidiary Company to any member of
the Company who may be interested in obtaining the same. The Annual
Accounts of the Subsidiary Company will also be kept open for inspection at
the Registered Office of the Company between 10.30 a.m. to 12.30 p.m. on
all working days except Saturdays, Sundays and Public Holidays.
The Government of Ajman (UAE) has not prescribed any format for preparation
of accounts of the Company. But the Company had prepared the accounts as
per the provisions of Companies Act, 1956 and other provisions of
applicable Accounting Standards.
7) FIXED DEPOSITS:
The Company has not accepted any Deposits under Section 58A of the
Companies Act, 1956 during the year under review.
The Board of Directors of a Company provides leadership, strategic guidance
& objective judgment, independent from the management of the Company, while
remaining at all times accountable to the shareholders.
During the year under review, Mr. K.S. Raman, Director of the Company did
not opt for re-appointment for the Directorship of the Company from 24th
November 2011 and Mr. Bharat Pipalia, Whole-time Director of the Company,
resigned from the directorship of the Company from 30th November 2011. The
Board places on record its appreciation for the services rendered by Mr.
K.S. Raman and Mr. Bharat Pipalia during their respective tenure as
Directors of the Company.
In accordance with the provision of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Ashok Khimavat, Director of the
Company retire by rotation and being eligible, offer himself for re-
appointment at the ensuing Annual General Meeting.
9) CORPORATE GOVERNANCE:
Your Company is committed to maintain the highest standard of Corporate
Governance and adhere to the requirements set out by SEBI. The Report on
Corporate Governance as stipulated under Clause 49 of the Listing
Agreement, including the shareholder's information and auditors'
certificate on its compliance, forms a part of this Annual Report.
The Company is registered with both the Depositories viz, the National
Securities Depository Limited and Central Depository (Services) Limited. As
of March 31, 2012, 84.15% of the equity shares of your Company were held in
All the assets of the Company wherever necessary and to the extent required
have been insured.
12) DIRECTORS' RESPONSIBILITY STATEMENT:
In compliance to the requirements of Section 217 (2AA) of the Companies Act
1956, your Directors confirm that:
a) the Company has followed the applicable accounting standards in the
preparation of the Annual Accounts and there had been no material departure
except accounts drawn as per revised Schedule VI as per the Companies Act,
b) Directors had selected the 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 of the Company
for the year under review.
c) the Directors have taken proper and sufficient care for 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) the Directors have prepared the Annual Accounts on a going concern
The Directors of your Company further confirm that proper systems are in
place to ensure compliance of all laws applicable to Company.
13) AUDITORS AND AUDITORS' REPORT:
M/s. M.B. Ladha & Co., Chartered Accountants, retires as Statutory Auditors
of the Company at the conclusion of the ensuing Annual General Meeting and
has confirmed their eligibility and willingness to accept the office of the
Auditors, if reappointed. The retiring Auditors have furnished a
Certificate of their eligibility for reappointment under section 224( 1 -B)
of the Companies Act, 1956. Your Directors recommend appointing M/s. M.B.
Ladha & Co., Chartered Accountants as Statutory Auditors of the Company
from the conclusion of this Annual General Meeting till the conclusion of
next Annual General Meeting.
With reference to the Auditors' Observations in the Auditors' Report &
Corporate Governance Certificate, your Director's have to state as under:
* The Company being a small company and involved in few transactions,
decided to provide retirement benefits and leave encashment on accrual
basis. However, the management is exploring possibility to appoint
recognized institution such as LIC for availing services of retirement
benefit offered by LIC.
* Due to urgency in finalizing accounts, the Company could not send letters
to the said parties. However, management does not expect any material
* Your Director state that the Company is passing through acute cash crunch
position due to that reason the Company could not pay some of the
Government dues as mentioned by the auditors such as Fringe Benefit Tax,
Sales Tax etc.
14) COMPLIANCE CERTIFICATE:
The Company is required to obtain Compliance Certificate from the
Practicing Company Secretary as provided under section 383A (1) of the
Companies Act, 1956. Accordingly the Company has appointed M/s. Hemanshu
Kapadia & Associates, Practicing Company Secretary to issue compliance
certificate and his certificate is attached herewith.
15) MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT:
Management's Discussion and Analysis Report for the year under review, as
stipulated in Clause 49 of the Listing Agreement with the Stock Exchanges
in India, is presented in separate Section forming part of the Annual
16) CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The particulars pursuant to requirements 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 given in the annexure of
17) PARTICULARS OF EMPLOYEES:
As on date, none of the employees of the Company fall within the purview of
the provisions of Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975 and Companies (Particulars
of Employees) Amendment Rules, 2011. Therefore, the ' statement for the
same is not attached.
18) INTERNAL AUDITOR:
During the year under review, the management has considered recommendations
made by the Internal Auditor, Mr. Anil Jain, Chartered Accountant. The
Audit committee members reviewed and discussed in detail the scope of audit
and audit schedule. Your Company is and shall be immensely benefited from
The Board of Directors expresses their deep gratitude for the co-operation
and support extended to your Company by its customers, suppliers, Bankers
and various Government agencies. Your Directors also place on record the
commitment and involvement of the employees at all levels and looks forward
to their continued co-operation.
For and on behalf of the Board,
Dinesh C. Khimavat
(Chairman & Managing Director)
Date : 1st September 2012
ANNEXURE TO THE DIRECTORS' REPORT
Disclosure under the Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988
l. A. CONSERVATION OF ENERGY:
(a) Energy conservation measures taken by the Company:
(i) The Company has been taking continuous steps to conserve the energy and
minimize energy cost at all levels as per the past experience.
(ii) Monitoring the overall energy consumption, by reducing losses and
(iii) Maximum demand of electricity is being reduced by evenly distributing
the loads throughout the day and increasing efficiency of plants and
(iv) Energy audit has been carried out by outside consultants and their
suggestions are being implemented by the Company.
(b) Additional investments and proposals, if any, being implemented for
reduction of consumption of energy:
The Company takes necessary steps for investment in energy saving devices
from time to time.
(c) Impact of measures at (a) and (b) above for reduction of energy
consumption and consequent impact on the cost of goods:
(I) However, per unit Energy consumption has increased from Rs. 5.131 to
Rs. 5.251 due to increase in rate of fuel and per unit electricity
COSt.@singhviji: Please insert the figures for this year
(ii) Rejection has gone down substantially due to improvement in quality of
B. TECHNOLOGY ABSORPTION:
Disclosure of particulars with respect to Technology Absorption as per
1. Research and Development (R&D):
(I) Specific area in which R&D carried out by the Company:
The Company is developing and introducing various new sizes, designs and
pattern of household utensils under its continuous R&D programs as per
changing market needs.
(ii) Benefit derived as a result of the above R&D:
(a) The quality of products of the Company has improved and showed marked
improvement in its desired properties.
(b) The R&D activities resulted into development of new designs and
products and also acceptability of the products in the market.
(iii) Future plan of Action:
(a) Continuation of the measures already initiated by the Company.
(b) Introduction of more process control and detailed quality control as
well as cost' reduction techniques.
(c) Development of new value added products
(d) Technology up gradation and modernization.
(iv) Expenditure on R & D:
The Company does not account for R&D expenses separately but treat them as
revenue expenses and accounts in respective head of revenue accounts. There
was no capital expenditure incurred on imported technology during the year.
2. Efforts in brief made towards technology absorption, adaptation and
(i) The Company has been developing in house modification/improvement in
process technology in its various manufacturing Sections, which when and if
found suitable have been integrated in the manufacturing process.
(ii) These have been resulted in improving efficiency, quality & design of
the Company's products.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
The information of foreign exchange earning & outgo is as follows.
(Rs. In Lacs)
Particulars 2011-12 2010-2011
A. Foreign Exchange Earnings:
FOB Value of Exports 210.52 514.14
B. Foreign Exchange Outgo:
C.I.F. Value of Imports 98.32 29.50
C. Foreign Traveling Expenses 0.70 0.06
D. Bank Charges & Commission 0.03 0.89
The Company is taking efforts to increase the exports.
For and on behalf of the Board,
Dinesh C. Khimavat
(Chairman & Managing Director)
Date : 1st September 2012
Place : Mumbai
CIN of the Company: L29301MH1994PLC078695
Nominal Capital: Rs.80,000,000/-
Kanchan International Limited
41, Mid Town, S. V.Road,
Borivali (W), Mumbai - 400 092.
We have examined the registers, records, books and papers of Kanchan
International Limited as required to be maintained under the Companies Act,
1956 ('the Act'), and the rules made thereunder and also the provisions
contained in the Memorandum and Articles of Association of the Company for
the financial year ended 31st March 2012. In our opinion and to the best of
our information and according to the examinations carried out by us and
explanations furnished to us by the Company, its officers and agents, we
certify that in respect of the aforesaid financial year:
1. The Company has kept and maintained all registers as stated in Annexure
'A' to this certificate, as per the provisions of the Act and the rules
made thereunder and all entries therein have been duly recorded.
2. The Company has filed the forms and returns as stated in the Annexure
'B' to this certificate, with the Registrar of Companies within the time
prescribed/with additional fees under the Act and Rules made thereunder.
However, no forms or returns were filed with the Regional Director, Central
Government, Company Law Board or other authorities.
3. The Company being Public Limited Company, comments are not required with
reference to maximum no. of members, invitation to public to subscribe for
its shares or debentures and acceptance of deposits from persons other than
its members, directors or their relatives.
4. The Board of Directors met Nine (9) times during the year i.e. on 30th
May 2011, 10th June 2011, 12th August 2011, 30th September 2011, 13th
October 2011, 14th November 2011, 13th February 2012, 30th March 2012 and
31st March 2012 (Adjourned meeting which was originally held on 30th March
2012) respectively and in respect of which meetings proper notices were
given and the proceedings including circular resolutions were recorded in
the Minutes Book maintained for the purpose.
5. The Company has closed its Register of Members from Saturday, 17th
November 2011 to Saturday, 24th November 2011 and necessary compliance of
Section 154 of the Act has been made.
6. The Annual General Meeting for the financial year ended 31st March 2011
was held on 24th November 2011, after giving due notice to the members of
the Company and the resolutions passed thereat were duly recorded in
Minutes Book maintained for the purpose.
7. One Extra-Ordinary General Meeting was held during the financial year
after giving the due notice to the member of the Company and the resolution
passed thereat were duly recorded in the Minutes book maintained for the
8. The Company has not advance any loan to its Directors or persons or
firms or Companies covered under section 295 of the Act.
9. The Company has entered into contracts falling within the preview of
Section 297 at prevailing market rate. However, compliance under Section
297 is in process.
10. The Company has made necessary entries in the register maintained under
Section 301 of the Act.
11. As there were no instances of falling within the purview of Section 314
of the Act, the Company was not required to obtain any approval from Board
of Directors or Members of the Company or Central Government u/ s 314 of
12. The Share Transfer Committee /Board of Directors of the Company has
approved the issue of duplicate share certificates during the financial
13. (i) The Company has delivered all the certificates on allotment of
Securities in accordance with the provisions of the Act. However, in few
instances delay was noticed.
(ii) The Company has not deposited any amount in a separate Bank Account as
no dividend was declared during the financial year under review.
(iii) The Company was not required to post warrants to any member of the
Company as no dividend was declared during the financial year under review.
(iv) The Company was required to transfer the amounts in unpaid dividend
account which have remained unclaimed or unpaid for a period of seven years
to Investors Education and Protection Fund. However, due to non
availability of record the same could not be transferred.
(v) The Company has complied with the requirements of Section 217 of the
14. The Board of Directors of the Company is duly constituted. There was no
appointment of Additional Director, Alternate Directors and directors to
fill casual vacancy during the financial year.
15. The Company has not appointed any Managing Director/Whole-time
Director/Manager during the financial year.
16. The Company has not appointed any sole-selling agents during the
17. The Company was not required to obtain any approval from Central
Government, Company Law Board, Regional Director and/or such other
authorities as prescribed under the various provisions of the Act except
approval under Section 297 of the Companies Act, 1956 during the financial
year. However, the same is in process.
18. The Directors have disclosed their interest in other firms/companies to
the Board of Directors pursuant to the provisions of the Act and the rules
19. The Company has issued 4,76,300 Equity Share pursuant to conversion of
4,76,300 fully convertible Equity Share Warrants out of total outstanding
Fully convertible Equity Share Warrants during the financial year and
complied with the provisions of the Act.
20. The Company has not bought back any shares during the financial year.
21. There was no redemption of Preference Shares or Debentures during the
financial year under review.
22. There were no transactions necessitating the Company to keep in
abeyance the rights to dividend, rights shares and bonus shares pending
registration of transfer of Shares.
23. The Company has not invited/ accepted any deposits including any
unsecured loans falling within the purview of Section 58A during the
24. The amount borrowed by the Company from bank during the financial year
ending 31/03/2012 is within the borrowing limits of the Company.
25. The Company has not made any loans or advances or given guarantees or
provided securities to other bodies corporate and consequently no entries
have been made in the register kept for the purpose, during the financial
26. The Company has not altered the provisions of the Memorandum of
Association with respect to situation of the Company's Registered Office
from one State to another during the year under scrutiny.
27. The Company has not altered the provisions of the Memorandum of
Association with respect to the objects of the Company during the year
28. The Company has not altered the provisions of the Memorandum of
Association with respect to name of the Company during the year under
29. The Company has not altered the provisions of the Memorandum with
respect to Share Capital of the Company during the year under scrutiny and
complied with the provisions of the Act.
30. The Company has not altered its Articles of Association during the
31. There was no prosecution initiated against or show cause notices
received by the Company and no fines or penalties or any other punishment
was imposed on the Company during the financial year, for offences under
32. The Company has not received any money as security deposit from its
employees during the year.
33. The Company has not constituted a separate provident fund trust for its
employees or class of its employees as contemplated under Section 418 of
For Hemanshu Kapadia & Associates
Proprietor CP. No. 2285
Date : 1st September 2012
Registers as maintained by the Company Statutory Registers
1. Register of Charges u/s 143
2. Register of Members and Transfers u/s 150
3. Register of Contracts u/s 301.
4. Register of Directors, Managing Director, Manager and Secretary u/s 303.
5. Register of Directors Shareholding u/s 307.
6. Minutes Book of General Meeting u/s 193.
7. Minutes Book of Board Meeting u/s 193.
8. Register of Application & Allotment u/s 75.
9. Books of Accounts u/s 209.
10. Registers and Returns u/s 163.
1. Register of Directors' Attendance.
2. Register of Shareholders Attendance.
3. Register of Proxies.
4. Register of Fixed Assets
Note: The Company has not maintained the following registers as it was
informed that there were no entries/transactions to be recorded therein:
1. Register of Debenture holders u/s 152
2. Register of Deposits under Rule 7 of the Companies (Acceptance of
Deposits) Rules, 1975
3. Register of Securities Bought Back u/s 77A
4. Foreign Registers of Members or Debenture holders u/s 157
Forms and Returns filed by the Company with Registrar of Companies during
the financial year ending 31st March 2012.
Form No./ Filled For Date of Whether If delay
Return under filing/ filed in filing
section (SRN) within whether
1. Form No.20B 159(1) A.G.M. 22/02/2012 No Yes
(Annual held on 24/11/11
2. Form No. 220 For the FY 21/02/2012 Yes - -
23 AC, ending
23ACA (In 31/03/11
3. From No.66 383(A) Compliance 25/01/2012 No Yes
for the FY
4. Form No.32 303(2) Particulars 07/12/2011 Yes -
264(2) of Changes
5. Form 8 125,127 Particulars 05/05/2011 Yes -
130 & for creation
MANAGEMENT DISCUSSION & ANALYSIS
1 INDUSTRY STRUCTURE & DEVELOPMENTS
The Consumer Electronics and Appliance Manufacturers Association (CEAMA)
has put its growth estimates, for the home appliances industry at 20 per
cent for 2011-12. Over the last five years, most companies in the home
appliances basket have seen sales grow at a compounded rate of 25-30 per
cent annually. Changing demographics in society, with more nuclear families
and increasing percentage of floating population is one-key reason for the
growing demand for home appliances. The growing rural demand is another
factor that is helping home appliance makers grow sales. The CEAMA opines
that over the next five years, rural India will consume 20 per cent of the
consumer durable industry's production. On the profit side too, the picture
has been quite good for home appliance makers. However, during the year
serious inflationary trends were continued to be felt at consumer price
levels. The rupee also depreciated sharply which had an adverse impact I
across all sections of the economy. Rising cost of inputs such as steel,
aluminium, copper, etc. have added to the production cost significantly
over the last one year. Maintaining profit margins has been a tough job &
there has been a clear dip in operating margins. The Central Government has
increased the excise duty on various products including your Company's
products. The increase is between 1% and 2%. This will have a cascading
effect and push up the end prices of the products. Increase in cost of fuel
& electricity and inputs required for production of home appliances add to
the cost of the products. However, your Company continues to focus on
producing new products of high quality of different price range,
penetration in rural markets, exploring global markets, improvement in
sales strategy and in turn building brand image leading to the path of
profitability. Reduction in excise duty on pressure cooker, brand building
and electrification of rural markets shall lead to better performance in
2 OPPORTUNITIES & THREATS
* Strong Brand.
* Strong distribution network
* Global presence
* Established leadership position in home appliance segment.
* The implementation of VAT should help to remove the disadvantage due to
activities of unorganized sector.
Rise in purchasing power of people
* Cheap imports from China and Far East
* Uncertain Monsoon
* A large number of players in the unorganized sector enjoy price advantage
either due to tax concessions or SSI status.
Increase in cost of fuel & electricity
3 RISK & CONCERNS
Penetration in rural markets:
The industry fortunes are linked to the rural income, which is depending to
some extent on agricultural production, government off take and monsoon in
Globally competitive market:
The Indian Market is facing tuff competition from global markets including
new entrants. Due to high technology support and Research and Development,
Global competitors are able to produce innovative and value-for-money
products. Indian appliance producers have failed to focus on harnessing the
power of theirbrands in smaller town markets and lower price points.
Small town customers today are equally bitten by the consumerism bug and
global players have successfully banked on this opportunity to drive
penetration of their products into these untapped areas.
The domestic, regional and global macroeconomic environment directly
influences the demand of consumer durable products. Any economic slowdown
can adversely impact demand supply dynamics and profitability of all
industry players, including 'Kanchan'.
However, the Company's operations have historically shown significant
exposure to the resilience to the fluctuations of economic and industry
cycles, with demand for most of its key products continue to grow at
healthy rates even at times of an overall economic slowdown.
Kanchan has insured its assets and operations against a wide range of
risks, as part of its overall risk management strategies. The export
constitute a very small part of Company's sales and is also not dependant
on global markets for imports and since Indian economy is not badly hit due
to global slowdown, your company does not see any negative growth.
Currency fluctuation related risk:
The falling of Indian Rupee in the International Market has impacted our
import. The Fluctuation in the Indian Currency has adversely impacted our
4 INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY
We have always believed that transparency, systems and controls are
important factors in the success and growth of any organization. Your
Company has a proper and adequate system of Internal Controls, to ensure
that all assets are safeguarded and protected against loss from
unauthorized use or disposal and that transaction are authorized, recorded
and reported correctly. Your Company has appointed Mr. Anil Jain as
Internal Auditor of the Company. Mr. Anil Jain carries out the internal
audit and internal control/systems on periodic basis, close monitoring
thereof to strengthen and modify the same from time to time to meet the
changing requirement of the Company. The deviation from the norms are first
informed to the concerned operating person for corrective actions and in
case of need, these are brought to the notice of the concerned head of the
unit or the department, as the case may be. The Internal Auditor constantly
looks into the areas where there is a possibility of saving in cost and
submits his suggestions to the concerned operating departments. All major
findings and suggestions are complied and reported to the Audit Committee
of the Directors on a quarterly basis or earlier if so required. It
operates at all the Plants at Daman and other business locations but
centrally controlled from the corporate office at Mumbai. We believe that
we have a sound internal control system in our Company.
5. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
Management Discussion and analysis of the Company's operations and
financial consolidation together with discussion on financial performance
with respect to operational performance should be read with conjunction
with the financial statements as given below:
(Rs. in Lacs)
Financial Year ended 2011-12 2010-11 2009-10 2008-09 2007-08
Sales 4085.76 4419.73 3703.61 3466.43 2852.00
Interest & Tax
(EBD1T) 1364.74 469.73 170.93 242.21 (262.97)
Depreciation 46.89 48.29 48.24 45.08 44.92
Profit After Tax 16.42 (60.22) (109.13) 3.59 (437.41)
Equity Share Capital 36.864 321.01 321.01 321.01 321.01
Reserves & Surplus - - - - -
Earnings per Share 0.51 (1.88) (3.40) 0.11 (13.63)
Sales per Share
(Rs.) 110.83 1137.66 115.37 107.99 88.86
6. MATERIAL DEVELOPMENTS ON HUMAN RESOURCES/INDUSTRIAL RELATIONS
The biggest strength of the Company has always been its people. Only with
their participation we have managed to achieve a healthy work culture,
transparency in working, fair business practice and a passion for
efficiency. The Company follows a unique, homegrown philosophy of allowing
people to set their own targets and give them the freedom to achieve them:
'I can'. This philosophy has spread across all our employees and has been a
constant source of motivation for our people. Further, to enhance their
skills and enrich their experience, the Company provides continuous
training. This includes workshops, courses, seminars and visit to the
Company's plants. Of late, we have also started in-house conferences for
various disciplines. Employees from all our offices are invited to
participate. It is a useful forum for sharing experiences, ideas,
innovations and developmental work undertaken in their respective work
places. From the beginning, we have followed a progressive policy of taking
keen interest in the well-being and progress of our people. All of this, we
believe, has nurtured a strong sense of belonging among our people.
7. CAUTIONARY STATEMENT
Statement in the Management discussion & analysis describing the Company's
objectives, projections, estimates & exceptions may be 'forward looking
statements' within the meaning of applicable securities laws & regulations.
Actual results could differ materially from those expressed or implied.
Important factors that could make difference to the company's operations
include economic conditions affecting demand/ supply and price conditions
in the domestic & overseas markets in which the company operates changes in
the Government regulations, tax laws & other statutes & other incidental
8. FUTURE OUTLOOK:
Our focus, as in the past has always been to continuously strengthen our
competitive position through aggressive test management, excellent
operational efficiencies without sacrificing the long term growth of the
potential of our business. We expect to deliver higher volume in all our
businesses. We also expect the market to stabilize in the near future. We
further expect that our intensified focus on cost control will yield result
and that we derive additional benefit from our going programme to reduce
our operating cost. We aim to complete our ongoing projects on or ahead of
schedule and within budgets.
Despite negative market condition and extremely competitive market, we
remain focused on our basic objectives of achieving a least cost position
and developing low capital cost position and developing low capital cost
projects. We have responded decisively to current market conditions and
remain very well placed to prosper through the commodity cycle.
For and on behalf of the Board,
Date : 1st September 2012 Dinesh C. Khimavat
Place: Mumbai Chairman & Managing Director