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Satellite Engineering Ltd.

BSE: 522279 Sector: Others
NSE: N.A. ISIN Code: INE087C01015
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Satellite Engineering Ltd. (SATELLITEENGG) - Director Report

Company director report

SATELLITE ENGINEERING LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT Dear Shareholder: Your Directors are pleased to present the 50th Annual Report with the Audited Accounts of the Company for the year ended 31.3.2012. FINANCIAL RESULTS: (Rs. In Lacs) Particulars 2011-2012 2010-2011 Total Income 22.15 66.99 Profit/(Loss) before Depreciation & Tax (14.04) 14.78 Less: Depreciation 12.11 14.20 Profit/(Loss) Before Tax (26.15) 0.58 Less: Provision for Tax Current Taxes - 0.12 Short/(Excess) Provisions - 0.27 Net Profit/(Loss) After Tax (26.15) 0.19 Balance brought forward (360.36) (360.55) Balance carried to Balance sheet (386.51) (360.36) Earnings per share (0.76) 0.01 FINANCIAL HIGHLIGHTS: OPERATIONS: During the year, the total turnover has been decreased and stood at Rs.21.82 Lacs as compared to last year's Rs. 56.85 Lacs. The Company has incurred net loss after tax of Rs. 26.15 Lacs as compared to net profit of Rs. 0.19 Lacs of the last year. Overall working was affected due to general slowdown in the Industry. DIVIDEND: Your Directors do not recommended any dividend for the year, due to loss of the current year and carried forward loss of the past years. FUTURE PROSPECTS: At the forefront of completing 50 years in the lighting industry, we have developed ourselves and our relations into good business. We at this year are adding our focus from the traditional distribution networks for our products to huge corporate vendorships. We at this year are going to develop and automize our machineries to meet with the demand for the products. We have already started placing the roots into corporate mechanisms, and hope to start reaping the fruits soon. On the export front, we are renewing relationships with our export customers, and are focusing on acquiring their orders with the new technology being installed in our plants. We hope to achieve this with the financial support of the Banks. We are working on establishing a joint venture with our Asian partners, and will be starting LED production, at the earliest. We are also planning on establishing trade relations to equip us with new technology and better market roots. RISKS AND CONCERNS: The Company keeps facing stiff competition by our Asian neighbors, and unhealthy competition form the Local markets. With an experience of 50 years, we have developed relations, and are soon working on countering the same. Energy Conservation: (Information under section 217(1)(e) of the Companies Act, 1956.) The company has a continuous focus on energy conservation. Regular studies are conducted to analyses quantitative energy conservation patterns, and variances are rigorously scrutinized. The company regularly benchmarks its energy conservation levels and consistently works towards improving efficiencies, towards getting the cost of energy down for every unit produced. Total energy consumption and energy consumption per unit of production: Particulars 31-03-2012 31-03-2011 (A) Power and Fuel Consumption: Electricity: (a) Purchased Units Kwh 14352 29572 Total Amount Rs. 118407 243971 Rate/Unit Rs. 8.25 8.25 (b) Own Generation through Diesel Generator set Units Kwh - - Unit per liter of Diesel Oil Kwh - - Cost/Unit Rs. - - (B) Consumption per Unit of Production: Electricity consumed per vial (in units) - - (C) Foreign Exchange Earnings & Outflow: There is no foreign exchange earnings during the year (last year NIL), while foreign exchange outgo of the company is Nil (Last year Nil). DIRECTORS: In accordance with the provisions of the Articles of Association and of the Companies Act 1956, Mr. Vinodchandra M. Parikh, Director of the Company, is liable to retire by rotation at the ensuing Annual General Meeting and being eligible, offer himself for re-appointment. The brief particulars of director, for which approval of members for their appointment or re-appointment is sought, has been provided in the Corporate Governance Report pursuant to Clause 49 of the Listing Agreement. PUBLIC DEPOSITS: The company has not invited or accepted any deposits under Section 58A of the Companies Act, 1956, from the public, during the year. CORPORATE GOVERNANCE: Pursuant to clause 49 of the Listing Agreement with the Stock Exchange, a separate section on Corporate Governance and certificate obtained from practicing Chartered Accountant confirming its compliance, is provided separately and forming part of this Report. The Board of Directors supports the basic principles of corporate governance. In addition to this, the board lays strong emphasis on transparency, accountability and integrity. Report on Management Discussion and Analysis is provided in separate section and forming part of this report. FORMATION OF VARIOUS COMMITTEES: Details of various committees constituted by the Board of Directors are given in the Corporate Governance Report annexed which forms part of this report. PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A): The provisions of section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1988 as amended are not applicable to the company, as there are no employees whose remuneration is in excess of the limits prescribed. DIRECTORS' RESPONSIBILITY STATEMENT: Pursuant to Section 217(2AA) of the Companies Act, 1956 I would like to state the following: In the preparation of the Annual Accounts, the applicable accounting standards have been followed. 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 financial year ended on 31st March. 2012. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. The Directors have prepared the attached statements of accounts for the year ended 31st March, 2012 on a going concern basis. REVOCATION OF SUSPENSION ON BSE: The Company's shares are presently under suspension category at Mumbai Stock Exchange (BSE), since last 4 years and trading of shares is not done. The Company had applied for the revocation of suspension for trading of shares at BSE and submitted all the necessary documents to BSE. The Board of Directors pleased to inform that In-principle approval for revocation of suspension in trading of equity shares was granted by BSE through letter dated July 23, 2012. In near future, the company's shares will once again start trading at BSE and it will helpful to all the Shareholders of the Company. AUDITORS & AUDITORS REPORT: M/s. Apaji Amin & Co., Chartered Accountants, retire at the forthcoming Annual General Meeting and have shown his willingness to re-appoint, if approved by the members in the ensuing Annual General Meeting. Shareholders are requested to appoint auditors from the conclusion of this Annual general Meeting up to the conclusion of the next Annual General Meeting and fix their remuneration. Notes forming part of the accounts are self explanatory as far as Auditor's Report is concerned and therefore, it do not require any further comments. ACKNOWLEDGMENT: Your Directors take this opportunity to express their gratitude for the valuable assistance and co-operation extended by the Bankers, vendors, customers, advisors, the general public and for the valued efforts and dedication shown by the Company employees at all levels. Your Directors also sincerely acknowledge the confidence and faith reposed by the shareholders of the Company. By order of the Board Date : 14th August, 2012 Anand A. Shah Place: Ahmedabad Managing Director MANAGEMENT DISCUSSION AND ANALYSIS OVERVIEW, FUTURE PROSPECTS & OUTLOOK: Company is planning to increase its output, as the Company has confirmed order from domestic market as well as export market. Many Indian Companies like Anchor, Havells etc, and foreign companies situated at different countries like Philippines, Holland, Singapore have confirmed their order for supply of engineering goods to our Company. The management of the Company is planning to launch the LED products, keeping in view, future demand of engineering goods market which saves lots of energy and electricity. The Company has been trying best to develop the new products and technology which may take at least one and half years to develop and come to the track. Modernization of plant by executing/installing fully atomized and well equipped plant through new technologies with the financial support of the Bank are also one of the priority motto of the Board of Directors of the Company. RISKS & CONCERNS: The company faces stiff competition from imported Chinese goods and unhealthy competition from the local unorganized players. Also the Company was confronted by Labor Unions and hence loss of well settled business. Frequent change in Exchange rate resulting into exchange fluctuation and government policies are also risk factor for Company's business. INTERNAL CONTROL SYSTEM: The company has got adequate internal control system and procedure relating to the purchase of various raw materials, stores and other consumables. The plants are sending regular and timely reports to the Managing Director and other Management Executives at Head Office and corrective actions as and when, required are being taken by Head Office. STATUTORY COMPLIANCE: Managing Director of the company is the Compliance Office. Moreover the company has retained services of a Practicing Company Secretary for making compliance of all provisions of Companies Act, Securities Contract and Regulation Act, SEBI Act etc. INDUSTRIAL RELATIONS: During the year Labor Unions have caused loss of production to the Company by stopping work from time to time and thereby Export Business of the Company was lost. However, in the coming days. Labor will not affect the growth of the Company.