SAMPADA CHEMICALS LIMITED
ANNUAL REPORT 2010-2011
Your Directors have pleasure in presenting the 28th Annual Report of the
company along with the Audited Statements of Accounts for the year ended
FINANCIAL RESULTS: Rs./Lakhs
Particulars 2010-2011 2009-2010
Operating Profit for the Year 139.8 571.65
Less: Interest 121.30 566.20
Depreciation & Tax 18.5 5.45
Less: Depreciation &
Amortisation 0.01 0.02
Profit/(Loss) before Tax 22.53 5.43
Provision for Taxation 4.02 -
Profit/(Loss) after Tax 18.51 5.43
Add: Balance brought
forward from previous year 457.39 451.96
Balance carried forward
to Balance Sheet 475.90 457.39
In order to conserve the resourses and to improve the financial position of
the company your Directors have decided not to recommend any dividend for
the current year.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to section 217(2AA) of the Companies Act, 1956 it is hereby
I. In the preparation of the Final Accounts for the year ended 31-March-
2011, the applicable Accounting Standards have been followed and that no
material departures have been made from the same.
II. The Directors have selected such 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 year under review and of the profit or loss of
the company for the year.
III. The Directors have taken proper and sufficient care for the
maintenance of the 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.
IV. The Directors have prepared the Accounts for the year ended 31-March-
2011 on a 'going concern' basis.
MANAGEMENT DISCUSSION & ANALYSIS REPORT:
A. ECONOMIC OVERVIEW
Economies across the globe are showing signs of recovery post the financial
crises. Advanced economies are recovering at a subdued pace. Amongst
emerging economies, India and China are leading the growth campaign it will
help Indian economic return back to the GDP growth range of 8.5-9.0%in year
B. INDUSTRY STRUCTURE AND DEVELOPMENT:
Your company being a Non - banking finance company (NBFC) is engaged in the
business of finance and investments.
C. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The Company has effective system of internal control:
a. Effective system of accounting and administrative control.
b. Existence of Audit Committee of Directors and system of internal audit
by an outside independent firm.
c. Performance review system by the management with preset objective.
D. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The net profit of the Company for the current year is 18.51lakhs as
compared to a net profit of Rs.5.43 lakhs in the previous year. The total
income of the Company was 41.75 Crores against income of Rs.42.64 Crores in
the previous year.
E. SEGMENTWISE PERFORMANCE:
The Company has one segment only however separate segmentwise reporting is
F. CAUTION STATEMENT:
Statements in the Management Discussion and Analysis are in the nature of
judgements and forward looking statements. Actual results could differ
materially or otherwise.
G. CORPORATE GOVERNANCE:
The Report on Corporate Governance along with The Compliance Certificate
from the practicing Company Secretary and the Auditor's Certificate for
compliance with the listing requirements as to corporate governance are
attached as Annexure and form part of the Directors' Report.
H. FIXED DEPOSITS:
The company has neither accepted nor renewed any fixed deposits from public
during the year under review.
I. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EARNINGS &
As the company is an NBFC and not engaged in any manufacturing activity,
the Rules for Conservation Of Energy, Technology Absorption And Foreign
Earnings & Outgo pursuant to section 217(1) (e) of the Companies Act, 1956
are not applicable .
The Statutory Auditors of the company M/s. S. G. Kabra & Co. Chartered
Accountants , Mumbai retire at the ensuing Annual General Meeting and have
confirmed their eligibility and willingness to accept office, if
reappointed. The Audit Committee and the Board Of Directors recommend their
appointment as statutory auditors of the company for the financial year
OBSERVATION IN AUDITORS' REPORT:
The observations of the Auditors in their Report at Item No. 3 (d) read
with the relevant Notes to Accounts in Schedule No.15., Item No. A (2) are
Your Directors place on record their deep sense of appreciation for the
contribution of employees at all levels and for the support from the
financial institutions, banks, and the associates.
By Order of the Board
Place: Mumbai Vipul Bhatt
Date : 16/08/2011 Chairman