MK AROMATICS LIMITED
ANNUAL REPORT 2010-2011
The Directors have pleasure in placing before you the 28th Annual Report
and the Audited accounts for the year ended 31st March, 2011.
PARTICULARS Current Previous
year ended year ended
Sale Turnover (Net) 6,95,628 37,01,423
Other Income 13,55,223 17,29,251
Total 30,50,851 54,30,674
Total Expenditure 1,14,52,380 46,63,512
Profit/(Loss) before Depreciation 15,98,471 7,67,162
Depreciation 89,33,961 100,59,469
Profit/(Loss) before tax (73,35,490) (92,92,307)
Less: Provision for tax Nil Nil
Provision for FBT
Net Profit/(Loss) after tax (73,35,490) (92,92,307)
Paid up Equity Capital 4,53,11,000.00 4,53,11,000.00
As the Company has not made any profits during the year under report, your
Board of Directors have not recommended any dividend.
MANAGEMENT DISCUSSION AND ANALYSIS:
A. Industry Structure and Developments:
Your company is in the business of manufacturing aromatic chemicals,
Hydrocarbon Derivatives and perfumes. Your company is a small-scale
industry operating in the chemical industry.
Your company reported a total income of Rs.130.51 lakhs as against Rs.54.31
lakhs achieved during the previous year. Your company had incurred a net
loss of Rs. 73.35 lakhs as against a net loss of Rs.92.92 lakhs incurred
during the previous year.
C. Segment Wise Performance:
Your company operates in a single segment, i.e. Aromatic Chemicals,
Hydrocarbon Derivatives, perfumes and as such segmental reporting is deemed
not applicable. However, the income from sale of agricultural produce
amounted to Rs. 6.16 lakhs during the year (previous year Rs. 12.41 lakhs).
The pickup in industrial demand for the company's products still remains a
concern. The Company is looking to tie up with strategic business partners
to venture into allied activities which are yet to materialize.
Your company is focusing on the export markets and Hydrocarbon Derivatives
for increasing the Turnover and profitability. The Company is also looking
at opportunities to grow aromatic/herbal plants and also in area of
biotechnology. The company is trying to tie up with strategic partners to
venture into allied activities.
F. Internal Control Systems:
Your company had a proper and adequate system of internal controls to
ensure that all assets are safeguard and protected against loss from
unauthorized use or disposition.
G. Human Resources and Industrial Relations:
Your company is operating with skeletal human resources. However there is
adequate manpower to cater to its business requirements. The relationship
with the employees of the company remained satisfactory.
During the year, there was no employee in respect of whom information as
per Section 217(2A) of the Companies Act, 1956 is required to be given in
the Directors' report.
Your Directors Mr. A.K. Merchant retire by rotation and being eligible
offer himself for reappointment.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
The energy consumption is as per normal requirements and your Company does
not have any significant particulars to be disclosed. Your Company has not
purchased any technology from outside sources and as such disclosures
regarding technology absorption is not applicable. Your Company has
incurred an amount of Rs.1,24,850 (previous year Rs.23,022) as expenditure
in foreign currency and it has not earned any foreign exchange during the
The Directors confirm:
i) That in the preparation of annual accounts for the year ended March 31,
2011, the applicable accounting standards had been followed along with
proper explanation relating to material departures;
ii) That the accounting policies implemented by the company have been
applied them consistently, judgments and estimates have been reasonable and
prudent thereby giving a true and fair view of the state of affairs of the
company at the end of the financial year and of the profit or loss of the
company for that period;
iii) That they had taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of Companies
Act, 1956 for safeguarding the assets of the company and for preventing and
detecting fraud and other irregularities; and
iv) That the annual accounts were prepared for the year ended 31st March
2011 on a going concern basis.
A Report on Corporate Governance along with Auditor's Certificate is
Your directors have appointed Mr. Company Secretary (In Wholetime Practice)
to issue a Compliance Certificate as required under section 383A of the
Companies Act, 1956. The Compliance Certificate issued by him is annexed to
Mr. G. Sivaprakash, Chartered Accountant, Chennai will be retiring at the
ensuring Annual General Meeting and being eligible offers himself for
Your Directors wish to thank all the government authorities, the bankers,
the customers, suppliers, and above all those who have supported the
venture of the Company at every critical juncture. Your Director also wish
to place on record the dedicated services rendered by the employees of the
Place: Chennai For and on behalf of the Board
Date : 14.07.2011
Mahesh K Merchant
Chairman cum Managing Director