CASTRON TECHNOLOGIES LIMITED ANNUAL REPORT 2010-2011 DIRECTOR'S REPORT TO THE MEMBERS CASTRON TECHNOLOGIES LIMITED Your Directors have the pleasure in presenting their Annual Report together with the audited accounts of the Company for the year ended 31st March, 2011. FINANCIAL RESULTS YEAR ENDED YEAR ENDED 31.03.2011 31.03.2010 Profit/(Loss) for the year 13,941,216 13,641,719 Less :Provision for Income Tax 4,836,545 4,959,382 Add : Excess Provision for 32,715 - income Tax For earlier Less : Short Provision for IT for - 1034 earlier year Add: Asset/(Provision 252,385 19,439 for Deferred Tax) Profit/(Loss) after Taxation 9,389,771 8,700,742 Balance of Profit brought forward 554,038 2,885,611 from last year Total 9,943,809 11,586,359 APPROPRIATION Transfer to General Reserve 1,000,000 1,000,000 Proposed Dividend 6,860,000 8,575,000 Tax on Dividend 1,139,377 1,457,321 Balance carried to Balance Sheet 944,432 554,038 DIVIDEND The Directors recommend for your consideration, at the ensuing annual general meeting, payment of dividend of Rs. 4.00 per equity share of Rs.10/- each on 1715000 shares for the year ended 31.03. 2011. The total dividend outgo including tax thereon will be Rs. 7,999,377. The dividend payout for the year under review has been recommended in accordance with the company's policy of keeping in view the company's need for capital and its growth plans. Your Directors believe this would be in the long-term interest of the shareholders. DIRECTORS Sri Jiwan Ram Agarwalla retires by rotation at the ensuing annual general meeting and being eligible offers himself for the re-appointment. DIRECTORS' RESPONSIBILITY STATEMENT Pursuant to the requirement 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 annual accounts for the financial year ended 31st March, 2011, the applicable accounting standards except as stated in note No. 2(v) of Schedule 14 on notes on accounts, had been followed along with proper explanation relating to material departures: ii) That the directors had 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 Profit of the company for the year under review; iii) That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safe guarding the assets of the company and for preventing and detecting fraud and other irregularities. iv) That the directors had prepared the accounts for the financial year ended 31st March, 2011 on a going concern basis. AUDITORS Messrs ASHOK KEDIA & COMPANY, Chartered Accountants, the auditors of the company retire at the forth coming Annual General Meeting of the company and are eligible for re-appointment. AUDITORS REPORT Observations by the auditors are explained in Note No. (2)(v) of schedule- 14 attached to the Balance Sheet. PARTICULARS OF EMPLOYEES None of the employees were in receipt of remuneration aggregating to Rs.24,00,000/- or more per year of Rs. 2.00,000/- or more per month when employed for part of the year. CONSERVATION OF ENERGY The company has installed sufficient energy saving devices and systems to consume energy. The Company is making efforts to keep its staff and workmen aware of energy conservation and is exploring alternative energy systems wherever necessary. TECHNOLOGY ABSORPTION As the Company is not using any imported technology, no information regarding technology absorption is to be given. FOREIGN EXCHANGE EARNINGS AND OUTGOINGS a) Foreign exchange earnings : Rs. 6,318,000/- b) Foreign exchange outgo : Rs. 64,992,845/- The Directors are pleased to record appreciation for co-operation and devotion of the employees of the company at all levels during the current period. For and on behalf of the Board Registered Office: Sri Jiwan Ram Agarwalla 14, Bentinck St, Director Room No. 8, 1st Fl. Kolkata-700 001.