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Scope Industries (India) Ltd.

BSE: 531886 Sector: Others
NSE: N.A. ISIN Code: INE747C01014
BSE LIVE 14:35 | 02 May Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 1.52
PREVIOUS CLOSE 1.52
VOLUME 300
52-Week high 1.52
52-Week low 0.00
P/E 0.18
Mkt Cap.(Rs cr) 2
Buy Price 1.45
Buy Qty 80.00
Sell Price 1.52
Sell Qty 203.00
OPEN 1.52
CLOSE 1.52
VOLUME 300
52-Week high 1.52
52-Week low 0.00
P/E 0.18
Mkt Cap.(Rs cr) 2
Buy Price 1.45
Buy Qty 80.00
Sell Price 1.52
Sell Qty 203.00

Scope Industries (India) Ltd. (SCOPEINDUS) - Director Report

Company director report

SCOPE INDUSTRIES (INDIA) LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT To The Members, Scope Industries (India) Limited Your Directors have pleasure in presenting herewith the 28th Annual Report of your Company together with the Audited Accounts for the financial year ended 31st March, 2012. FINANCIAL RESULTS: (Rs. in lakhs) PARTICULARS YEAR ENDED YEAR ENDED 31.03.2012 31.03.2011 Sales 5440.69 1521.59 Other Income - 2.59 Total 5440.69 1524.18 Expenditure 5294.00 1495.71 Profit before depreciation and Income tax 146.69 28.47 Depreciation 0.24 - Net profit before tax 146.45 28.47 Provision for taxation a. Current tax 29.30 5.95 b. Deferred tax 0.27 - Profit after tax 116.88 22.52 DIVIDEND: As a measure of prudence and with a view to conserve resources for funding the business plans of the Company, no dividend on the Equity Shares for the year ended 31st March, 2012 was recommended. PARTICULARS OF EMPLOYEES: There are no employees whose particulars are required to be furnished under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of employees) Rules, 1975, and as amended from time to time as remuneration of none of the employees is in excess of Rs. 5, 00,000/- per month, if employed for the part of year or Rs.60, 00,000/- per annum during the financial 2011-2012. DIRECTORS: Sri Akella Sai Kumar, Sri Tammina Eswar Rao and Sri Damaraju Srihari Charan, Directors of your company retires by rotation at the ensuing Annual General Meeting and being eligible for re-appointment, offers themselves for re-appointment. Pattela Srinivas Goutam, Niyaz Ahmad and Nisar Ahmed were appointed as Additional Directors w.e.f 8th February, 2012, Allama Prabhu Anandwade was appointed on w,e,f 16.02.2012 and Bobburi Pampapathi and Praveen Kumar Chodavarapu were appointed as Additional Directors w.e.f 10th May 2012. The Company has received individual notices from the members of the Company complying with the provisions of the Section 257 of the Act, proposing their respective candidature for the office of Director. DIRECTORS' RESPONSIBILITY STATEMENT: Pursuant to Section 217(2AA) of the Companies Act, 1956 the directors of your company hereby confirm that:- 1. In preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departure, if any, there from; 2. 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 true and fair view of the state of affairs of the Company at the end of the financial year ended 31st March 2012 and of the profit and loss of the company for that period; 3. 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 frauds and other irregularities; 4. The directors have prepared the annual accounts on a going concern basis. AUDITORS: M/s S S SRAVAN & ASSOCIATES Chartered Accountants, Statutory Auditors of the Company has resigned from the office of the Statutory Auditors of the Company and in their place M/s. RAMASAMY KOTESWARA RAO & CO Chartered Accountants, was appointed as the Statutory Auditors of the company at the EGM held on 26th April, 2012 who retire at the conclusion of the ensuing Annual General Meeting and being eligible offers themselves for re- appointment. The company has received a certificate from the Auditors to the effect that their appointment, if made will be in accordance with the provisions of Section 224(1B) of the Companies Act, 1956. The Board recommends their appointment. Reply to Auditors Qualification: 1. With regard to the deposit of Amounts to statutory Authorities (Point No. 9 (a) of the Auditors Reports). Your Board would like to bring to your kind notice that the Company is under the process of depositing the same. 2. With regard to unsecured loan taken from the directors, Your board would like bring to your kind notice that these are short terms loans for day to day operations. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO: A. Conservation of Energy - The present operation of the Company do not involve high energy consumption. However steps being taken to minimize energy consumption where ever possible. B. Research & Development - Not Applicable C. Technology Absorption - Not Applicable D. Foreign Exchange Earnings & Outgo: (In Rs. Lakhs) 2011-2012 2010-11 Foreign Exchange earnings Nil Nil Foreign Exchange outgo Nil Nil CORPORATE GOVERNANCE: Your Company has complied with the requirements of Clause 49 of the Listing Agreement entered into with the Stock Exchanges. Report on Corporate Governance including Auditor's Certificate on Compliance with the code of Corporate Governance under Clause 49 of the listing agreement is enclosed as ANNEXURE III to this report. EMPLOYEE STOCK OPTION SCHEME: As members are that the Company has, vide Special Resolution passed at the Extra-ordinary General Meeting held on May 12, 2011, introduced Employees Stock Option Scheme-2011 (Scope ESOS-2011) to enable the employees of the Company to participate in the future growth and financial successes of the Company. The Board of Directors of your Company, based on the recommendations of the Remuneration Committee granted 30,00,000 stock options to its eligible employees out of which 900000 option were exercised by the employees. The disclosure required under SEBI Guidelines, in this regard, is furnished in the ANNEXURE. II MANAGEMENT DISCUSSION & ANALYSIS: Aspects of Management Discussion and Analysis are enclosed as ANNEXURE-I to this report. DEPOSITS: Your company has not accepted any deposits falling under Section 58A of the Companies Act, 1956 read with Companies (Acceptance of Deposits) Rules 1975 during the year. SHARE CAPITAL: Your Company has allotted 1900000 Equity Shares on 10th May, 2012 on preferential basis to promoter and non promoters of the Company. SUBSIDIARY: During the financial year under review your company has incorporated two wholly owned subsidiary M/s Edplus Information Technology Private Limited and M/s Etracker Mobile Technologies Private Limited, these Companies are yet to start the commercial productions. ACKNOWLEDGMENTS: Your directors would like to express their sincere appreciation and gratitude to all Employees, Shareholders, the Suppliers, Customers and various authorities who have extended their immense support to the organization. By order of the Board of Directors sd/- Place: Hyderabad Sriram Pavan Kumar Vemuri Date : 27.08.2012 Chairman & Managing Director Annexure - 1 MANAGEMENT DISCUSSION AND ANALYSIS INDUSTRY STRUCTURE AND DEVELOPMENTS: The Infrastructure sector in India is set to boom as the country enters a high growth phase. With a growing economy and double digit growth expected over the next four years, the infrastructure sector would witness exponential growth and enormous investments. With the expected average annual compounded growth rate of 8.5%, India's GDP is expected to be USD 1.4 trillion by 2017 and USD 2.8 trillion by 2027. The construction sector has grown at an annual rate of 12-15% from financial year 2004-2008 and is expected to rise at around 35% during 2009- 2013. All infrastructure sub-sectors are set to grow with similar scorching pace. OPPORTUNITIES AND THREATS: The Infrastructure sector in India is attracting more funds not only from the domestic funds but also from the international arena, even in the form of Public Private Partnership. Other factors including political intent, liquidity position, commodity and crude prices, structural and procedural reforms at various government body levels (like NHAI) are also well-placed to rollout the Indian infrastructure growth story ahead. Moreover, companies in the infrastructure space are backed with strong orders which show strong revenue visibility in coming future. Therefore, looking at the current scenario and future growth potential experts expect Indian Infrastructure Sector to outperform the trends in long term thereby providing excellent investment opportunities in the sector. Introduction of Public Private Partnerships (PPP): Government has introduced the concept of public-private partnerships in India, to combine the best practices of public and private sectors to efficiently develop and maintain infrastructure facilities. The construction industry everywhere faces problems and challenges. However, in developing countries like India, these difficulties and challenges are present alongside a general situation of socio-economic stress, chronic resource shortages, institutional weaknesses and a general inability to deal with the key issues. There is also evidence that the problems have become greater in extent and severity in recent years. One of the charges leveled at the construction industry, as at the beginning of the 21st century, is that it has a poor record on innovation, when compared with manufacturing industries such as aerospace or electronics. SEGMENT WISE OR PRODUCT WISE PERFORMANCE: As the members are aware that your Company has newly entered in this segment and is operating at present in single segment of infrastructure and constructions INDUSTRY OUTLOOK: Infrastructure remains a vital sector for India's growth story. But, lack of adequate infrastructure is a major constraint in India's growth. Infrastructure, which was the golden sector a few years ago, is battling regulatory bottlenecks, land acquisition delays and credit crunch. Without any dichotomy - the future growth prospects of the Indian economy lingers primarily on the infrastructure investment and timely execution of the projects. The infrastructure sector was one of the thrust areas in Union Budget 2012-13 as a string of measures were announced in the budget. Manufacturing sector projected to grow at 4.5 per cent. Electricity, automotive, steel and cement sector have shown improvement in the period of April-June. Because of the benefits of the low base, manufacturing sector will show improved performance in the second half of this year. Construction expected to show some improvement compared to last year as evidenced by the recent increase in the output of steel and cement. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: The Company has a proper and adequate Internal Control System to ensure that all the assets are safeguarded and protected against any loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly. The Company's Internal Control System is supported by an adequate programme of internal audit, conducted by the Auditors of the Company, reviewed periodically by the management together with the Audit Committee of the Board. The Management also regularly reviews the operational efficiencies, utilization of fiscal resources and compliance with laws so as to ensure optimum utilization of resources and achieve better efficiencies. FUTURE OUTLOOK: Infrastructure development is a major input to economic development and sustained growth in an economy. As India continues down its path of development, infrastructure has become increasingly important. Although the Indian Government has been proactive in building necessary infrastructure in the energy, transportation, and urban sectors, additional investment is needed. Like many countries, private-sector involvement will be critical in escalating India's infrastructure beyond meeting basic needs and reaching a level that advances the efficiency with which India's economy operates. Many PPP and BOT Projects have been and will continue to be a growing trend with very large investment plans. Although, the climate for the infrastructure sector in India is strong in the long run, there is a temporary concern of: * A slowdown in the global economy * Growth in global competition; and * Weakening international currencies. To respond to this, SIIL has embarked on a plan to: * Take advantage of the growth in global competition and to partner with those companies who compliment SIIL's specialisation, experience and know how, to grow its top line; and * Increase its bottom line through rigorous receivables management, lean operations management and tight project management practices. * The Company is equipped to undertake and carryout a reasonable share of the Infrastructure Development for years to come. * The Company has adequately trained manpower and sophisticated plant, machinery and equipment to withstand the scope of work to the international standard. * The Company is well equipped to contribute its might in the best interest of infrastructure development and it is poised for further growth and development in germane fields of civil engineering. * It has built up in-house strength for quality construction scheduled for completion within given time, conforming to rigid technical specifications. We believe that through the above actions we will be able to navigate through any uncertain times and take advantage of future developments. Annexure - II Disclosure under Clause 12 of the Securities and Exchange Board of India (Employee Stock Option Scheme) Guidelines 1999. Particulars Details a) Options Granted 30,00,000 b) Pricing and Pricing formula as decided by the Remuneration Committee but shall not be less than Rs.10/- (Rupees Ten Only) per share c) Options vested on Date: (31.03.2012) Nil d) Options Exercised (31.03.2012) Nil e) Total No of Shares arising as a result of Exercise of option 30,00,000 f) Option lapsed Nil g) Variation of terms of options Nil h) Money realized by Exercise of options Nil i) Total No of options in force Nil j) Employee wise details of Options granted to Senior managerial Personal ii) Employees receives a grant of 5% or more of options granted during that year None iii) Employees receives grant of 1% or more Issued Capital None K) Diluted Earnings Per Share (EPS) Not Applicable, as amortization Pursuant to issue of Shares on will commence in the financial Exercise of options calculated in Year in which exercise of Options accordance with the Accounting Standard (AS-20) 'EPS' L) Where the Company has calculated Not Applicable, as amortization the employee Compensation Cost will commence in the financial Using the Intrinsic value of Stock Year in which exercise of Options options, the difference between the Employee Compensation Cost so computed and Employee Compensation Cost that shall have been recognized if it had used the fair value of the options shall be disclosed. M) The Impact of this difference on Not Applicable, as amortization Profits and on EPS of the company will commence in the financial shall be Disclosed Year in which exercise of Options N) Weighted average exercise prices and weighted average fair values of options shall be disclosed separately for options whose exercise price either equals or exceeds or is less than the market price of the stock. NA O) A description of the method and NA significant assumptions used during the year to estimate fair value of options including following weighted average information i) Risk free Interest rate ii) Exercise Price iii) Expected life of the option iv) Expected volatility v) Dividend Yield vi) Price of the underlying share in the market at the time of the option grant. vii) Fair value of the option (Rs)