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Credence Sound & Vision Ltd.

BSE: 526741 Sector: Media
NSE: N.A. ISIN Code: INE406C01025
BSE 05:30 | 01 Jan Credence Sound & Vision Ltd
NSE 05:30 | 01 Jan Credence Sound & Vision Ltd

Credence Sound & Vision Ltd. (CREDENCESOUND) - Director Report

Company director report

CREDENCE SOUND AND VISION LIMITED ANNUAL REPORT 2008-2009 DIRECTOR'S REPORT To The Members Your directors submit here below their Report for the year ended 31.03.2009. FINANCIAL RESULTS: (Figures in Rs.) Current Year Previous Year 31.03.2009 31.03.2008 GROSS INCOME 2713375 4494309 PROFIT/LOSS BEFORE DEP. & TAX 2000175 3417148 LESS: DEPRECIATION 667867 667867 PROFIT/LOSS BEFORE TAX 1332308 2749281 LESS: TAX 0.00 0.00 PROFIT/LOSS AFTER TAXATION 1332308 2749281 APPROPRIATION NIL NIL PROPOSED DIVIDEND NIL NIL TRANSFER TO GENERAL RESERVE NIL NIL ADD: BALANCE BROUGHT (30306642) (33055923) FORWARD BALANCE CARRIED TO B/SHEET (28974334) (30306642) OPERATIONS: Though the company has owned its video post production studio, the same could not be run profitably because of technology obsolescence. The company is taking effective steps to upgrade its technology to compete in the market. DIVIDEND: During the year, the company has not declared any dividend. PUBIC DEPOSITS: The company has not accepted any deposits under the provisions of section 58A of the companies Act, 1956 and the rules made there under and therefore, the question of unclaimed deposits is not applicable. RESPONSIBILITY STATEMENT: Pursuant to Section 217(2AA) of the companies Act, 1956, your Directors state that: * In the preparation of the annual accounts, the applicable accounting standards have been followed; * that the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are 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 ended 31st March, 2009 and of the profit of the company for that year; * 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. * The annual accounts have been prepared on a going concern basis. DIRECTORS: MR. SHIVRAM MEENA and MR. JIMMY PANDYA retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for reappointment. AUDITOR: M/S P.R. AGARWAL & AWASTHI, Chartered Accountants, Auditors of the company hold office until the conclusion of the ensuing Annual General Meeting and being eligible, offer themselves for reappointment. CORPORATE GOVERNANCE: A report on Corporate Governance along with compliance certificate from the Auditors thereon and Management Discussion and Analysis Report are annexed hereto. INFORMATION UNDER SECTION 217 OF THE COMPANIES ACT 1956: Particulars with regard to Conservation of energy, Technology Absorption, Foreign Exchange Earnings and out go in accordance with the provisions of section 217(1)(e) of the Companies Act, 1956 (Disclosure of particulars in the report of Board of Directors) Rules 1988 are not applicable. EMPLOYEES: The company has no employees covered by and in accordance with the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (particulars of Employees) Rule, 1975 as amended and hence the particulars of the same are not applicable. LISTING OF EQUITY SHARES: The company's Equity shares are listed on the Stock Exchanges Mumbai, Delhi, Calcutta, and Ahmedabad. The company is taking requisite steps for revocation of the suspension of trading by BSE. AUDITORS' REPORT: Auditors' remarks have been suitably dealt with in the notes on accounts and hence need no further explanation. ACKNOWLEDGMENTS: Yours Directors wish to place on record their appreciation for the valuable support received from shareholders, Suppliers and Clients. The Board also thanks the employees at all levels for their commitment and contribution. FOR AND ON BEHALF OF THE BOARD Sd/- CHAIRMAN Place : Mumbai Date : 30/06/2009 MANAGEMENT DISCUSSION AND ANALYSIS REPORT: OVERVIEW: The year under review was one of the difficult years of the company. The company is looking for profitable ventures, as its main area of functioning entertainment multi-media is no more viable keeping in view the scale of operation, which the company can possibly take up. Hopefully, the company should come out with concrete plans in the ensuing year. FINANCIAL HIGHLIGHTS: CURRENT YEAR PREVIOUS YEAR 31.03.2009 31.03.2008 PAT 1332308 2749281 EBID 2027645 3465942 PROFIT/LOSS AFTER 1332308 2749281 DEPRECIATION EPS 0.03 0.61 DEBT 10566670 11994131 INDUSTRY STRUCTURE AND DEVELOPMENT: Ever since 1996, the economy is passing through a recessionary phase. Enquiries for new project assignments dropped drastically. The whole industry suffered and number of companies reported huge losses. This is mainly because' of changes in technology, which has rendered old equipment's out of market. The company has made an attempt to rent out little equipment and has made a modest income. Your directors are working on a plan to add new and latest equipment's to successfully compete in the market. OPPORTUNITIES: * Vast market * Diversification plans * Liason activities * Backward and Forward integration THREATS: * Large overhead * Competition from global firms * Recovery of Outstanding. * Branding * Obsolescence FUTURE BUSINESS OUTLOOK: In this information age the knowledge is power. Timely and accurate information is sought by a number of companies. A large number of companies are looking for diversification plans as their existing activities are no more profitable. The company also plans to venture into such activities. INTERNAL CONTROL SYSTEMS: The level of activities of the company at present is quite low. Keeping in view the scale of operation, size of the company, and cost aspect, the company has reasonably good internal control system to ensure that all its assets are safeguarded and protected against loss from unauthorised use or disposition and transaction are authorised, recorded and reported correctly. The internal control systems are also designed to ensure that the financial and other records are reliable, for preparing financial statements and other data. The audit committee, which have been formed during the year, will also play an important role in times to come. A provision for impairment of loss has been duly recorded. RISKS AND CONCERNS: The business of the company largely depends on the improvement of investment climate, growth of medium scale sector and pooling of resources by the company. The company will endeavour its best to capitalise on its strengths and improve upon its weak areas. HUMAN RESOURCES DEVELOPMENT: Rather than recruiting permanent employees, the company will prefer to out source various services based on assignments in hands. This will minimise the risk and keep the overheads at reasonable level. FOR AND ON BEHALF OF THE BOARD Sd/- CHAIRMAN Place : Mumbai Date : 30.06.2009