To the Shareholders
Your Directors present before you the Twenty First Annual Report together with theAudited Statement of Accounts of the Company for the year ended 31st March 2014.
FINANCIAL RESULTS :
| ||2013-2014 ||2012-2013 |
| ||Rupees ||Rupees |
|Profit/Loss before Finance Charges Depreciation and Taxation ||66665323 ||32702089 |
|Less: Interest ||19829262 ||20891702 |
|Profit/Loss before Depreciation and Taxation ||46836061 ||11810387 |
|Less: Depreciation ||9749872 ||11908871 |
|Profit/Loss for the year before extraordinary item ||37086189 ||(98484) |
|Brought forward Loss from previous year ||94485279 ||94394322 |
|Balance carried to Balance Sheet ||(57399090) ||(94485279) |
The Board of Directors regrets its inability to declare dividend in view of carriedforward loss.
The Company has registered a Net Profit of Rs.3.71 Crores. The carry forward loss atpresent stands at Rs.5.74 Crores.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Global Economic Condition
The world continues to go through a difficult economic situation. Europe is still notout of difficulties. The United States is showing signs of recovery. The growth has sloweddown in China and India. In addition inspite of Reserve Bank of India's efforts theinflation is not under control.
Overview of Indian Economy
The Indian economy witnessed a decline in GDP growth of 5% during the year compared toa growth of 8.5% in the previous year. The mounting fiscal deficit and high CurrentAccount Deficit has impacted the investment momentum in the Indian economy. To achieve asustainable growth the country needs to push forward governance reforms and innovativepublic-private partnerships to deliver rapid and inclusive growth and an enablingenvironment for upgrading infrastructure.
Our business and Performance
The Company's performance improved during the year. The Company registered a profitbefore depreciation of Rs.4.68 Crores as compared to a profit of Rs.1.18 Crore in theprevious year. After providing for depreciation the net profit was of Rs.3.71 Crores ascompared to Loss of Rs.0.01 Crore in the previous year. The Directors are hopeful of stillbetter performance during the current year.
1. Directors' Responsibility Statement
Your Directors confirm:
(i) that in preparation of the annual accounts the applicable accounting standardshave been followed;
(ii) that the Directors have selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the Company at the end of thefinancial year ended 31st March 2014 and of the profit of the Company for that year;
(iii) that the Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 1956for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities;
(iv) that the Directors have prepared the annual accounts on a going concern basis.
2. Corporate Governance
As per clause 49 of the Listing Agreement with The Stock Exchange a detailed CorporateGovernance Report is annexed to the Directors' Report.
3. Audit Committee
The Audit Committee consists of Shri Hrushikesh Deodhar with financial and accountingknowledge as Chairman and Shri Surendra Gupta and Shri R.S.Arora as members. ShriHrushikesh Deodhar and Shri S.M.Gupta are independent directors with independent judgmentin the deliberation and decisions of the Board.
Shri R.S.Arora retires by rotation and being eligible offers himself for reappointment.
5. Auditors' Report
The observations of the Auditors are self explanatory.
M/s. Vinay Gudi & Associates Chartered Accountants retire and are eligible forre-appointment. M/s. Vinay Gudi & Associates have informed that they are willing toact as Auditors if appointed.
7. Particulars of Employees
The particulars of employees required to be given under provisions of Section 217 (2A)of the Companies Act 1956 - NIL.
8. Conservation of Energy
The information required under Section 217 (1) (e) of the Companies Act 1956 readwith the Companies (Disclosure of Particulars in the Report of the Board of Directors)Rules 1988 is given in Annexure 'A' and forms part of the Report.
9. Foreign Exchange Earnings and Outgo:
The Company's foreign exchange earnings during the year was Rs.Nil. The Companyincurred foreign exchange outgo amounting to Rs.19.61Lacs during the year.
Your Directors thank the Company's clients vendors investors and bankers for theircontinued support during the year. Your Directors place on record their appreciation ofthe contribution made by employees at all levels.
| ||For and on behalf of the Board of Directors |
| ||RUPINDER SINGH ARORA |
| ||Chairman |
|Mumbai Dated : 12th August 2014. || |
|Corporate Office: || |
|Arora House 16 Golf Link || |
|Union Park Khar (West) || |
|Mumbai- 400 052. || |
Annexure to the Directors' Report
Information required under the Companies (Disclosure of Particulars in the Report ofBoard of Directors') Rules 1988.
A Conservation of Energy:
Various steps and measures are continuously being taken to further reduce consumptionof electricity. These measures have resulted / will result in saving in the consumption ofpower and fuel. B Total energy consumption and energy consumption per unit of productionas per prescribed Form 'A':
|(A) Power and Fuel Consumption ||31.03.2014 ||31.03.2013 |
|1. Electricity || || |
|(a) Purchased - Units (in lacs). ||53.29 ||52.21 |
|Total amount (Rs. in lacs). ||231.97 ||212.88 |
|Rate per Unit (Rs.). ||4.35 ||4.08 |
|(b) Own generation. ||NIL ||NIL |
|2. Coal . ||NIL ||NIL |
|3. LPG Gas || || |
|Quantity (Kgs in lacs). ||0.82 ||0.91 |
|Total (Rs. in Lacs). ||62.27 ||64.99 |
|Average Rate (Rs.). ||75.53 ||71.08 |
|(B) Consumption per unit of production || || |
|Electricity (Per kg). ||4.58 ||4.63 |
|LPG Gas (Per kg). ||1.23 ||1.41 |
There is no activity on research and development.
D. Technology absorption:
The Company has fully absorbed the technology obtained from Zhangjiagang GangyingIndustry Co. Ltd. China. The Company is continuously taking steps to improve the productand process technology.
E. Foreign Exchange Earning and Outgo:
| ||(Rs. In Lacs) |
|a) Foreign Exchange earned ||NIL |
|b) Foreign Exchange used-Import of Plant & Machinery ||11.31 |