The Directors are pleased to present their Twenty First Annual Report for the financialyear ended on 31st March 2014.
|FINANCIAL RESULTS || ||(Amount in Lacs) |
|PARTICULARS ||31.03.2014 ||31.03.2013 |
|Sales (Inclusive of excise duty and other income) ||2121.74 ||1718.16 |
|Profit/(loss) before intt dep & tax ||510.69 ||378.98 |
|Interest ||259.52 ||130.36 |
|Profit/(loss) before dep & tax ||251.17 ||248.62 |
|Depreciation ||175.26 ||111.26 |
|Profit/(loss) before tax ||75.91 ||137.36 |
|Tax including deferred/ provision for tax ||16.51 ||39.31 |
|Net Profit/(loss) after tax ||59.40 ||98.05 |
|Amount of loss transferred to balance sheet ||286.85 ||343.91 |
BUSINESS AND PERFORMANCE
During the year under review the turnover of the company has risen to 2121.74 lacswhich is 23.5% higher than the previous year's turnover. However the profits of thecompany decreased to Rs. 59.40 lacs due to adverse market conditions and higherfinancecosts.
Presently the company is engaged in the manufacturing of Drug Intermediates andchemicals. During the current financial year the company is planning to venture intoAPIs/intermediates and will begin the manufacturing of clopidogrel fexofenadineetoricoxib pentazocene etc.The market demand for these products is very high. Thecompany is also shifting its focus to manufacture and market the products under its ownname and tapering off the job work activities.
The company is doing well under the trade mark 'Kaarigar'. Under this brand name thecompany is selling wood coatings and complete range of wood finishes. The market responsefor these products from the market is very fovourable. The company is foreseeingsignificant growth for these products in the current financial year and started to marketthe products in the northern region of the country particularly in Chandigarh PunjabHaryana Himachal Pradesh J & Ketc
The economic conditions in the country are not very conducive but still the managementis confident that the company will continue to grow further as there is demand for itsproducts in the market.
In the absence of adequate profit for the year your directors have not recommended anydividend for the financial year 2013-14. However as per the terms of Preference Shares 2%preference dividend if approved by the shareholders be paid to the preferenceshareholders.
During the year the Company has accepted deposit from the public within the meaning ofSection 58-Aof the Companies Act 1956 in compliance with the Companies (Acceptance ofDeposits) Rules 1975.
Mr. Rajesh Gupta Wholetime Director of the Company shall retire by rotation at theensuing Annual General Meeting and being eligible offer himself for reappointment. Asstipulated in terms of Clause 49 of the Listing Agreement the brief resume of Mr. RajeshGupta is provided in the Explanatory Statement annexed to the notice of the meeting.During the current financial year Mr. Kushal Pal SinghManaging Director Mr. RanjanJain Wholetime Director Mr. Shanti Lai Jain Director (Independent) and Mr. Jagir SinghDirector (Independent) have resigned from their respective positions.
The shares of the Company are listed at Bombay Stock Exchange Limited and Delhi StockExchange Limited. It is regular in complying with all the listing requirements. The sharesof the Company are being regularly traded in Bombay Stock Exchange.
\The Board of Directors in its meeting held on 14.08.2012 had approved the voluntarydelisting of its Equity Shares from Delhi Stock Exchange Ltd. in terms of SEBI (Delistingof Equity Shares) Regulations 2009. The Company had filed application to Delhi StockExchange Ltd. for voluntary delisting of Equity Shares and theirapproval is still awaited.
M/s Bansal Vijay & Associates Chartered Accountants Chandigarh the retiringAuditors of the Company retire at the ensuing Annual General Meeting and being eligibleoffer themselves for re-appointment for the Financial Year 2014-15. The Company received acertificate from them as required under Section 141 ofthe Companies Act 2013. The Boardrecommends theirappointmentforyourapproval.
CORPORATE GOVERNANCE REPORT
As required under clause 49 of Listing Agreement the Corporate Governance Report alongwith certificate from Company Secretary in Practice regarding compliance of conditions ofcorporate governance report is enclosed.
MANAGEMENT DISCUSSION & ANALYSIS REPORT
As required under clause 49 (E) of Listing Agreement the Management Discussion &Analysis forms an integral part of the Directors Report.
Pursuant to provisions of section 177 of the Companies Act 2013and Listing Agreementthe Company has constituted the Audit Committee of the company. The following are themembers of the committee. Mr. Satish Chand Aggarwal is the Chairman of the AuditCommittee.
Mr. Satish Chand Aggarwal
Mr. Balwant Singh Sandhu
Mr. Jagmohan Arora
Observations in the Auditors Report are dealt with in the notes to the Accounts andbeing self explanatory need no further explanation.
PARTICULARS OF EMPLOYEES
None of the employees is covered Under Section 217(2A) of the Companies Act 1956 readwith Companies (Particulars of Employees) Rules 1975 as amended.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information required under Section 217(1)(e) of the companies Act 1956 read withCompanies (Disclosure of Particulars in the report of Directors) Rules 1988 with respectto conservation of energy technology absorption and foreign exchange earnings and outgois as follows:
Disclosure of Particulars with respect to Conservation of Energy:
|A. Power and fuel consumption ||2013-14 ||2012-13 |
|1. Electricity || || |
|(a) Purchased || || |
|Units ||2533716 ||3944369 |
|Total amount ||11613853 ||18599567 |
|Rate/unit ||5.30 ||4.72 |
|(b) Own generation || || |
|(i) Through diesel generator || || |
|Unit ||141175 ||637250 |
|Units per Itr. of diesel oil ||3.40 ||3.40 |
|Cost/unit ||15.30 ||14.60 |
|(ii) Through steam turbine/generator || || |
|2. Coal Pet coke || || |
|Quantity (tonnes) ||860.25 ||1391.60 |
|Total cost ||6647159 ||9240178 |
|Rate/unit ||7.73 ||6.64 |
|3. Furnance oil ||NIL ||NIL |
|4. Others/internal generation ||NIL ||NIL |
|B. Consumption per unit of production || || |
|Electricity ||3.12 ||4.16 |
|Coal-Pet coke ||0.95 ||1.47 |
a. Tech nology Absorption:
The Company is using indigenous technologies in the manufacturing of process. Theupdation of technology is an ongoing process and Company is complying with all thestatutory guidelines in this regard.
b. Foreign Exchange earnings and Outgo:
The Company has not earned any income or incurred any expenditure in foreign exchangeduring the financial year.
DIRECTORS RESPONSIBILITY STATEMENT
As required u/s 217 (2AA) of the companies Act 1956 the Directors states that:
1. That in the preparation of annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures.
2. That Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfairview ofthestateof affairs of the company at the end ofthe financial year and of theprofit or loss ofthe company for that period.
3. That Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets ofthe company and for preventing and detecting fraud and other irregularities.
4. That Directors have prepared the annual accounts on going concern basis.
The Board expresses its deep gratitude and thanks to its clients bankers associatesand shareholders for their valuable contributions towards growth ofthe company. Thedirectors particularly wish to place on record their sincere appreciation for the bestefforts put in by the employees towards upliftment of the Company.
| ||For Board of Directors |
| ||M/S SYSCHEM INDIA LIMITED |
|DATE: 13.08.2014 || |
|PLACE: Chandigarh ||Chairman |