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Sonal Sil Chem Ltd.

BSE: 524673 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Sonal Sil Chem Ltd
NSE 05:30 | 01 Jan Sonal Sil Chem Ltd

Sonal Sil Chem Ltd. (SONALSILCHEM) - Director Report

Company director report

SONAL SIL-CHEM LIMITED ANNUAL REPORT 2010-2011 DIRECTOR'S REPORT To, The Members, Your Directors have pleasure in presenting the 21st Annual Report together with audited statement of accounts of the Company for the year ended on 31st March 2011. OPERATIONS DURING THE YEAR: The company has a very good Operational activity during the year due to good market. FINANCIAL RESULTS: The financial results are as under:- PARTICULARS AMOUNT (RS. IN LACS) 2010-11 2009-10 Turn Over 3.36 10.75 Expenses 3.32 10.86 Profit Before Tax O.04 -0.11 Provision for Taxation 0.04 0.00 'Profit after Tax 0 -0.11 AUDITORS: During the year, the existing auditors of the company have shown their unwillingness to continue to be the Auditors of the company hence the members are requested to appoint new auditors M/s. SHIRISH DALAL & ASSOCIATES, Chartered Accountants, Ahmedabad for the current year and to fix their remuneration. M/s. SHIRISH DALAL & ASSOCIATES, Chartered Accountants have consented to act as the auditors of the Company. PUBLIC DEPOSITS : During the year the company has not accepted any deposit u/s. 58A of the Companies Act. 1956. DIRECTORS: During the year Surekha Shah will retire by rotation at the ensuing A.G.M and being eligible, offers himself for re-appointment. FOREIGN EXCHANGE EARNING AND EXPENDITURE: There were no Foreign Exchange transactions during the year. PERSONNEL AND OTHER MATTERS: As required by the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules. 1975, as amended, the names and other particulars of the employees are not given as no employee was coming under the provisions set of section 217(2A). Since the Company does not own any manufacturing activity, the disclosure of information relating to conservation of energy and technology absorption to be disclosed in terms of Section 217(l)(e) of the Companies Act. 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, are not applicable and hence not given. AUDIT COMMITTEE: The Company has formed an Audit Committee comprising of 3 directors. The terms of the reference of the committee are in line with the requirements as stipulated u/s 292A of the Co. Act, 1956 and Corporate Governance as stated in Clause 49 of the Listing Agreement. DIRECTORS' RESPONSIBILITY STATEMENT : The Directors confirm that in preparation of the annual accounts for the year ended March 31, 2011:- 1. the applicable accounting standards had been followed along with proper explanation relating to material departures; 2. they had selected such accounting policies and applied them consistently and made; 3. judgements and estimates that are reasonable and prudent had been taken 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 that period; 4. they had taken proper and sufficient care for the 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; and 5. they had prepared the annual accounts on a going concern basis. CORPORATE GOVERNANCE AND COMPLIANCE: A report on corporate governance is annexed to this report. A certificate from Statutory Auditors with regards to the compliance of the corporate governance by the company is annexed to this report. The company has fully complied with all mandatory requirements prescribed under clause 49 of the listing agreement. In addition, the company has also implemented some of the non mandatory provisions of clause 49. ACKNOWLEDGEMENTS: The Directors thank the clients for the confidence reposed, which has enabled the Company in successfully achieving the satisfactory performance. The Directors also thank the Company's bankers, lenders, the Government of India, the Securities and Exchange Board of India, the Reserve Bank of India and other statutory authorities for their continued support to the Company. The Directors express their gratitude for the support and guidance received from its shareholders. The Directors also express their sincere thanks and appreciation to all the employees for their commendable teamwork, professionalism and contribution during the year. BY ORDER OF THE BOARD OF DIRECTORS SONAL SIL-CHEM LTD., PLACE: AHMEDABAD DATE : 01-09-2011 Sd/- SATISH RAVAL (CHAIRMAN) MANAGEMENT DISCUSSION AND ANALYSIS The Company is in the business of Trading in shares and Finance Activity. The key issues of the Management Discussion and Analysis are given below. (a) Industry structure and developments Indian Finance market size is estimated at Rs. 436 Trillion. Approximately one third of this demand is met through Share Market and the balance is met through Financers and lenders. The Industry is mainly dependent on the Investors sentiments. It is now prevailing good and getting healthy. The fortunes of the Finance industry are, to a large extent, linked to the growth of the Industry and Investment sentiments of the people. The Industry is facing intense competition from the Foreign financial Institution. (b) Strength The strength of a company is known from the profit it earns and sound advances. It also depends on the Government policies of taxation. Introduction of Securities Transaction Tax and thereby exempting Long term Capital gain has given a big boost to the market. (c) Comment on Current year's performance Receipts:- The Receipt has been phenomenal for the first year of its operations. Operating Expenses:- The operating Expenses are well under control. Operating Profits:- The Operating Profits are up to industry mark. Indirect Expenses:- The Indirect Expenses are under control. Depreciation:- Reasonable amount of Depreciation is provided. Profit before tax:- Profit before tax is also an improving trend. Taxation:- Taxation is Provided as per Income Tax Act. Debtor/Sales:- Debtors are reasonable. Creditors/Purchase:- The Company has an established credit. d) Opportunities and threats:- The impact of boom in capital market and real estate market due to government support has provided a boost to the economy and it is set to grow at 19% to 23% supported by a smart growth in manufacturing and services sectors. This brings prosperity to a country and more and more people go for investment in Share market. Outlook for the year 2011 is positive. While the overall demand outlook for the year 2011 remains good, the Company expects the pressure on quality customers to continue due to competition. (e) Segment wise performance The business of the Company falls under a single segment i.e. Trading & Financing for the purpose of Accounting Standard AS-17. (f) Outlook The continual growth in the Finance sector is expected to give the necessary support to the Finance industry. The Company is making all efforts to accelerate growth of its business. It expects to improve its position in the market by focusing on technologically advanced and more profitable products/market segments and working aggressively in the areas of productivity, efficiency and cost reductions. (g) Risk and concerns The menace of local Finances and play of angadia has further compounded the problems of the organised Finance Industry as they use inferior way of transferring funds. The Stock market is also a risky place to put one's fund. The pull back of FIIs will also have an adverse effect on the share market. (h) Internal control system Internal audit and other controls have been found to be adequate. These are reviewed periodically by the Audit Committee and found the performance.satlsfactory. (i) Developments in human resources and Industrial relations Information as per Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particular of Employees) Rules, 1975 is not required to be given as no employee falls under it. The Company continued to have cordial relations with all the employees. BY ORDER OF THE BOARD OF DEFECTORS SONAL SIL-CHEM LIMITED, PLACE: AHMEDABAD DATE : 01-09-2011 Sd/- SATISH RAVAL (CHAIRMAN)