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Sun Source (India) Ltd.

BSE: 517403 Sector: Infrastructure
NSE: N.A. ISIN Code: INE320F01013
BSE LIVE 10:20 | 16 Oct 4.37 0.08
(1.86%)
OPEN

4.37

HIGH

4.37

LOW

4.37

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 4.37
PREVIOUS CLOSE 4.29
VOLUME 50
52-Week high 5.04
52-Week low 1.73
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.37
Sell Qty 370.00
OPEN 4.37
CLOSE 4.29
VOLUME 50
52-Week high 5.04
52-Week low 1.73
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.37
Sell Qty 370.00

Sun Source (India) Ltd. (SUNSOURCEI) - Director Report

Company director report

SUN SOURCE (INDIA) LIMITED ANNUAL REPORT 2010-2011 DIRECTOR'S REPORT To, The Members SUN SOURCE (INDIA) LIMITED Your Directors are pleased to present the Nineteenth Annual Report together with the Audited Accounts of the Company for the year ended 31st March 2011. SUMMARIZED OPERATIONAL RESULTS: For the For the Year ended Year ended 31.03.2011 31.03.2010 Sales (Net] 13,962,175 3,800,710 Profit before Tax 1,12,712 45,489 Provision for taxation 1,50,000 NIL Net Profit after Tax -37,279 45,489 Balance Carried to Balance Sheet 2,004,888 2,169,717 DIVIDEND: During the year under consideration, due to loss the board could not recommend dividend for the year under consideration and regret for the same. REVIEW OF CURRENT PERFORMANCE: As you all know that since last three - four years your company has started functioning and as a result the year under consideration has generated revenue of just Rs. 139.62 lacs as against Rs. 38.00 lacs for the previous year. It means the company has achieved a growth by 367%. However due to previous years' losses, the company is not in a position to generate Profit. The board is also of the view that the revenue being generated by the company is not to the expectation and all the positive efforts are now being put by the board to expand the activities of the company including introduction of new line of activities in tune with the present market need. During the current year your company is targeting to achieve the turnover of Rs. 350 lacs. The management of the company is also putting all the efforts to install all the technical equipments at Rajasthan so that production of non-conventional power generation can start. Even, very recently, the Central Government has introduced subsidiary scheme for this kind of project and as a result, the company is anticipating to generate profit in subsequent years. The company has also started recruiting employees so the target can be archived easily in a scheduled time. DIRECTORS' RESPONSIBILITY STATEMENT: Pursuant to the requirements under Section 217 (2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Statement, it is hereby confirmed: (i) That in the preparation of the accounts for the financial year ended 31st March, 2011, the applicable accounting standards have been followed along with proper explanation relating to material departures wherever necessary; (ii) That the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that were 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 and of the loss of the Company for the year under review. (iii) That the Directors have 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; (iv) That the Directors have prepared the accounts for the financial year ended 31st March, 2011 on a 'Going Concern' basis. AUDITORS OBSERVATIONS The auditors in their report has qualified that the company has failed to make provisions in respect of deferred tax liability. This was mainly due to reasons that the company was virtually defunct company and was not doing any commercial activity, However, the board is of the view that over a next few years qualifications as provided in the report of auditors will be taken care and the company will be fully compliance company.. AUDITORS: M/s. Joshi Jain and Co., Chartered Accountants, Vadodara, the auditors of the Company, shall retire at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. They have furnished a certificate to the effect that their proposed reappointment if made, will be in accordance with sub-section (IB) of Section 224 of the Companies Act, 1956. INSURANCE: All moveable and fixed Assets are adequately insured. DISCLOSURES: (a) CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS/OUTGO: The particulars prescribed by the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is not applicable mainly due to reason that the company has not carried out any commercial activity and also nature of business and hence not provided for. (b) ENVIRONMENTAL CONTROL AND ABATEMENT OF POLLUTION: Your Company is not in manufacturing business and hence not generating pollution and hence not applicable. ACKNOWLEDGEMENT: Your Directors wish to place on record their sincere thanks for the valuable assistance and guidance given by Banks, Central Government and State Government from time to time. Your Directors also wish to note the dedicated services of all the officers and employees of the Company. Registered Office: One- Sonal Industrial Estate (Khoda), By order of the Board of Directors Sanand Viramgam Highway, Ahmedabad - 382170 Place:- Khoda, Ahmedabad Sd/- Date :- 30th May, 2011 Chairman Management Discussion and Analysis Report CAUTIONARY STATEMENT Statements made in this Management Discussion & Analysis Report on the Financial Condition and Results of Operations of the Company describing the Company's objectives, expectations or predictions may appear to be futuristic within the meaning of applicable laws/regulations. These statements are based on certain assumptions and expectations of events that may or may not take place in future. The Company does not guarantee that the assumptions and expectations are accurate and/or will materialize. The Company assumes no responsibility to publicly amend, modify or revise the statements made therein nor does it assume any liability for them. Actual performance can vary substantially from those expressed in the foregoing statements. The investors are, therefore, cautioned and requested to take the considered decision in this regard. INDUSTRY STRUCTURE AND DEVELOPMENTS: The solar industry has gone through one of the most eventful - and frightening - years in recent history. The last 12 months have brought financial chaos, falling demand for solar products, rising inventory and rounds of consolidation. Yet today, because of continued , ' political support for solar, the industry is moving into 2011 with strong momentum. That's not to say the next 12 months will be easy. Electricity and heating fuel prices have fallen substantially, and many consumers are still holding off big purchases like solar PV or solar thermal. At the same tune, the prices of solar technologies like PV have fallen 35% since-this time last year. That could make for a dramatic rise in solar adoption as home and business owners see prices bottoming out In order to encourage the continued adoption of solar and other renewable energy technologies, the U.S government has rolled out new support mechanisms through the stimulus package. It will also help create strong growth into 2011, which most people believe will be another record-breaking year as utilities get serious about solar PV and Concentrating Solar Power. Meanwhile, companies continue to break efficiency records and roll out new products that make solar more cost-competitive. DISCUSSION ON FINANCIAL PERFORMANCE: Since last three years company has started functioning and as a result it has generated revenue of Rs. 139.62 lacs as against Rs. 38.00 lacs for the previous year, it is an indicator for future bright prospects of the Company. However due to previous years' losses, the company is not in a position to generate Profit. The board is also of the view that the revenue being generated by the company is not to the expectation and all the positive efforts are now being put by the board to expand the activities of the company including introduction of new line of activities in tune with the present market need. During the current year your company is targeting to achieve the turnover of Rs. 350 . the management of the company is also putting all the efforts to install all the technical equipments at Rajasthan so that production of non-conventional power generation can start. Even, very recently, the Central Government has introduced subsidiary scheme for this kind of project and as a result, the company is anticipating to generate profit in subsequent years. The company has also started recruiting employees so the target can be archived easily in a scheduled time. OPPORTUNITIES & THREATS: India can afford to raise the share of renewable energy in national power output to 10% by 2015 from under 4% today, says a new report. Allocation for new and renewable energy ministry increased by 61% to Rs 1,000 crore. A so-called national action plan on climate change recommends India should generate 10% of power from solar, wind, hydro power and other renewable energy sources by 2015, and 15% by 2020. But the high production cost and its effect on state power utilities'budgets is viewed as a deterrent. The incremental impact on power purchase costs pan-India would be about 1.5 paise a unit in 2011 diminishing to 0.1 paisa by 2015, says the report. The maximum impact for any state would be 4.2 paise a unit in 2011, which would go down to about 1 paisa by 2015. India has to import nearly three-fourths of its energy needs due to a limited stock of conventional energy sources. India's renewable energy potential is 100,000MW from solar energy and another 85,000MW from non- solar sources. Of that, only around 17,220MW has been tapped. This includes 69% from wind energy, 16% from small hydropower units and 8% from cogeneration. The remaining 7% covers solar energy and other sources, according to Crisil. More reliance on renewable energy will not only help India reduce its import bill but also cut back its contribution to polluting gases that are blamed for climate change worldwide. The Central Electricity Regulatory Commission (CERC) has come up with guidelines on issuing renewable energy certificates (RECs) from September to promote green energy. Certificate holders will be able to sell green energy to states, individuals or other trading entities. States have been allotted different renewable energy purchase obligations (RPOs). While Gujarat met its target for 2009-10, states such as Tamil Nadu came close. For instance, most of the wind potential is available in states like Tamil Nadu, Karnataka, Gujarat, Andhra Pradesh, Maharashtra, Rajasthan, Madhya Pradesh and Kerala. There are also states like Chhattisgarh, Uttarakhand and Himachal Pradesh where there is moderate RE (renewable energy) potential (primarily small hydropower). Remaining states have very little RE potential. SECTOR OUTLOOK: Solar energy offers enormous potential for a tropical country like India where around 45% of households, mainly rural ones, do not have access to electricity, says a new research report 'Indian Solar Energy Market Outlook 2012' from a leading research company RNCOS. India receives solar energy equivalent to more than 5,000 Trillion kWh per year, which is far more than its total annual energy consumption. The country's geographical location, large population and government support are also assisting it to become one of the most rapidly emerging solar energy markets in the world. Consequently, the country is becoming a favorite investment destination for both local as well as global players. Demand for solar products has been rising rapidly over the recent years, especially in rural areas, and is expected to continue growing substantially during our forecast period (2009-2012). The total number of solar lanterns in India is projected to grow at a CAGR of about 40% between 2009 and 2012. 'Indian Solar Energy Market Outlook 2012' provides a rational analysis and extensive research on the solar power industry in India. It thoroughly examines the current industry . trends which are adding to the growth of solar power market of the country. The report highlights the emerging segments of solar power industry and their market potential to serve the enormous population of the country. It will help clients to understand the market dynamics and get an insight of the current and future outlook of solar power market in India. Besides giving projections on various energy indicators, the report also gives forecast on various segments of the solar power industry based on feasible solar industry environment in India. These include: - Solar Street Lighting System - Solar Home Lighting System - Solar Lantern - Solar Photovoltaic Pumps - Solar Water Heating System - Solar Cookers The forecast given in this report is not based on a complex economic model, but is intended as a rough guide to the direction in which the market is likely to move. This forecast is based on correlations between past market growth, growth of base drivers and possible impact of recession in the economy. INTERNAL CONTROL AND RISK MANAGEMENT: Sun Source has in progress to implement a system of internal control over financial reporting of all transactions along with demonstrated efficiencies in operations and compliance of relevant laws and statutory regulations. Sun Source understands the necessity of having excellent operational efficiencies to fuel and support its plans for charting out its growth trajectory. On monitoring the developments in domestic and global economy closely, we feel that in the near term, major challenge lies in managing the growth and at the same time retaining reasonable profitability. The strategies adopted to achieve growth may make us susceptible to risks, but we are confident that our risk management approach and reporting systems would enable identification of critical risks beyond certain tolerance levels, to be reported for further action. We are planning to formulate an integrated Enterprise Risk Management Policy, which may identifies and addresses various risks on a proactive and structured manner. SAFETY, HEALTH AND ENVIRONMENT: Your Company continues to give priority to the Safety, Health and Environment Preservation & promotion of environment is of fundamental concern in all our business activities. HUMAN RESOURCES: The Company continued to have cordial & harmonious relations with its employees. The Company recognizes and sincerely appreciates the hard work put in by all its employees. The Company is planning to execute whilst blower policy. For and on behalf of the Board of Directors Sd/- Chairman Date : 30th May, 2011 Place: Khoda, Ahmedabad