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Aravali Industries Ltd.

BSE: 521339 Sector: Agri and agri inputs
BSE 05:30 | 01 Jan Aravali Industries Ltd
NSE 05:30 | 01 Jan Aravali Industries Ltd

Aravali Industries Ltd. (ARAVALIIND) - Director Report

Company director report

ARAVALI INDUSTRIES LIMITED ANNUAL REPORT 2007-2008 DIRECTOR'S REPORT Yours Directors are pleased to present their Twenty Fourth Annual Report on the business and the Company and the Audited Accounts for the year ended 31st March, 2008. FINANCIAL RESULTS: 2007-2008 2006-2007 (Rs. in lacs) (Rs. in lacs) Net Profit 79.64 101.11 (before depreciation) Depreciation 16.64 16.62 Net Profit/(Loss) 63.00 84.49 Balance to Balance Sheet 63.00 84.49 Transfer to General Reserve 63.00 84.49 OPERATION AND DEFERRED TAX LIABILITY: The Company has been able to penetrate in national level contracts and it continues to hold prime position in sales/annual maintenance contracts for horticulture. The Gross Income has seen a marginal increase from the previous year but the net profit had decreased during the year under report due to lesser margins on contracts procured/executed during the year. Since the activities conducted by are agriculture activities which are exempt under the Income Tax Act, 1961, the new mandatory Standards 22 i.e. Accounting for Taxes on Income are not applicable. The Company has been able to grow Amala a medicinal herb and it expects to get its harvest in the coming years. It has also grown fruit plants to ensure regular revenue. The Company has earned substantial revenues from flower cultivation with marigold, tuberose, crossandra and aster being focus area. The concept of organic farming is has taken a shape and some area in the farms has been allocated for organic farming. DIVIDEND: The Directors have not recommended any dividend for the year due to Reserve the Profits. DIRECTORS: In accordance with the provision of the Companies Act, 1956 and the Articles of Association of Company, Mr. Pujan Mittal and Mr. V.M. Dhingra retire by rotation at the forthcoming Annual General Meeting and being eligible, offers themselves for re-appointment. The Board recommends his reappointment. Information on the details of directors seeking re- appointment as required under Clause-49 of the Listing Agreement has been given under the Notice to the Shareholders. AUDIT REPORT: The Auditors' Report on the accounts is self-explanatory and does not need any further explanations. AUDITORS: M/s. Asish Rajinder & Associates, Chartered Accountants New Delhi, the Auditors of the Company, retires at the ensuing Annual General Meeting have shown their desire to continue to act as Auditors of the Comply. The Company has received letter from them to the effect that their appointment, if made, would be within the prescribed limits specified under section 224(1B) of the Company Act, 1956. ENERGY, TECHNOLOGY OF FOREIGN EXCHANGE: In accordance with the provision of Section 217(1)(e) of the Company Act 1956, read with Companies (Disclosure of particulars in report of Board of Directors) Rules, 1988 information regarding conservation of Energy, Technology absorption of the Company's activities do not provide any scope and there was no earnings or outgo of foreign exchange. PUBLIC DEPOSITS: The Company has not accepted Fixed Deposits and as such the provision of Section 58A of the Companies Act read with Companies (Acceptance of Deposits) Rules, 1975 are not attracted. As such there are no unpaid deposits as at 31st March 2008 PARTICULARS OF EMPLOYEES: No employee of the Company is covered under the provision at section 217(2A) of the Companies Act, 1956, read with (Particulars of Employees) Rules, 1975 as amended. DEMATERIALISATION OF SHARES: As per listing agreement with the Stock Exchange and as per guidelines issued from time to time by SEBI your company shares are already being dematerialized. As on 31.03.2008 the status of shares held in different form was as under: No. of Shares % of Shares Held in dematerialized form in CDSL: 70562 0.7031 Held in dematerialized Form in NSDL: 7914671 78.8614 Physical: 2050947 20.4355 Total No. of Shares: 10036180 100.0000 CORPORATE GOVERNANCE: The Company has complied with the Corporate Governance Code in accordance with the listing agreement with the Stock Exchanges. A separate section on Corporate Governance, along with a certificate from the Auditors confirming compliance since the last Annual General Meeting is annexed and forms part of the Directors' Report. DIRECTORS' RESPONSIBILITY STATEMENT: In pursuance to the provision of Section 217(2A) of the Companies Act, 1956, your Directors hereby declare: 1) That in the preparation of Annual Accounts for the Financial Year 2007- 2008, the applicable Accounting Standards have been followed. 2) That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent as to give a true and fair view of the state of affairs of the Company at the end of financial year and of the Profit for that year. 3) That the Directors have taken proper and sufficient care for maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safe guarding the assets of the Company and preventing and detecting frauds and other irregularities. 4) That the Directors have prepared the enclosed Annual Accounts as a going concern basis. MANAGEMENT DISCUSSION AND ANALYSIS REPORT: In terms of Cause 49 of the Listing Agreements with the Stock Exchanges, the Management Discussion and Analysis Report is appended to this Report COMPLIANCE OF GUIDELINES OF SEBI/STOCK EXCHANGES: Guidelines issued by SEBI/ Stock exchanges from time to time are being complied with. The shares of the Company are listed at Delhi and National Stock Exchange. The Delhi Stock Exchange has revoked the suspension and had allowed its Equity Shares to be traded w.e.f. 08.05.2008. The Company has since submitted the required documents-information and certificates with Stock Exchanges and the Company hopes to get its shares traded at NSE very shortly as per the Listing Agreement. The Company has paid the Listing Fees to NSE & DSE for the year 2007-2008. INSURANCE: Properties and Assets of the Company are adequately insured. ACKNOLEDGEMENT: The Company relation with the staff remained cordial. Your Directors express their grateful appreciation to Shareholders, Govt. authorities and the Banks and also place on records their deep sense of appreciation for the devoted services, executives, staff and workers of the Company. By order of the Board of Directors Place: New Delhi Sd/- Date : 23.08.2008 SANDHYA MITTAL Whole Time Director MANAGEMENT'S DISCUSSION & ANALYSIS REPORT a) Industry Structure & Business Overview: The Company is engaged in Agricultural Activities and activities related to Agriculture. We at Aravali Industries Limited has already entered into growing high value medicinal herbs like Amla. The Company has also planted jarofaa plant useful for extraction of oil for fuel which will benefit the country, save precious foreign exchange and maintain green and healthy environment. b) Opportunities & Threats: i. Under the pollution control, everyone is taking the proper steps to maintain the greenery. ii. All the human being is taking steps to maintain the proper, neat & clean environment, iii. Focused approach on core plantation, greenery business will help minimizing pollution control. iv. Global reach and strong image will help achieve planned growth & control pollution. THREATS : i. Natural calamities will give effect on the business of the company. ii. High working capital requirements in the business iii. Growing competition from domestic as well as international growers iv. We may be imparted in the event of new product. RISK MANAGEMENT: The Company is continuously making efforts in improving production, efficiency, cost reduction and brand building to instigate the impact. It is considered opinion of the Management that it has taken all possible steps to maintain & enhance the competitive position of the Company. i. The Company is in the process putting in place, exhaustive risk identification, analysis and initiated process. ii. The Company's income during the year 2007-08 was Rs. 239.55 lacs as against Rs 192.98 lacs for the period ended 2006-07. a) Arising out of the position impact of expected healthy growth in control of pollution / environmental industries and backed by strong brand image, global reach and focused approach, we expect the company will achieve sustainable healthy growth. b) The Company is also aggressively pursing the plan to move up in the value chain by diversification / expanding into higher technology products used by industry. The Company is also in the process of raising further resources through various means to implement its expansion plan. HEALTH & SAFETY: The Company continuously focus on the health & safety of all its workers & stag Adequate safety measures have been taken at all sites for the prevention of accidents / mis-happening or other untoward incident. The necessary medical facilities are available for the workers, staff and their members to enable them to maintain good health. CONCLUSION: The benefits of structuring have started reflecting in to financial performance from the financial year under review. CAUTIONARY STATEMENTS: Internal Control Systems: The Company has an intricate systems of internal control procedures commensurate ensure optimal use of the Company's resources and protection thereof. This internal control systems provides for well administered policies, guidelines, authorization and approval procedures. The Company has appointed internal control auditor, who caries out Audit of Accounts, internal control systems & procedures on regular basis. They are well guided by the Audit committee of the Board of Directors, who approves the audit plans, reviews their report and also make necessary suggestion for its further improvements. RELATED PARTY TRANSACTION: There is no related parties transaction during the year. HUMAN RESOURCES: The Company has focused on building the organization for developing human resources. More attempts are now being given to develop a better structure in the important areas with a long term future in mind. The company has taken various initiatives towards recruitment and retention of the best talent within and out side the Industry. As in the part, the industrial relation continues to remain generally cordial with all staff at all location of the Company. sd/- Dated: 23.08.2008 Sandhya Mittal Place: New Delhi Whole Time Director