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Dhanashree Electronics Ltd.

BSE: 542679 Sector: Engineering
NSE: N.A. ISIN Code: INE413F01016
BSE 05:30 | 01 Jan Dhanashree Electronics Ltd
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Dhanashree Electronics Ltd. (DHANASHREEELECT) - Director Report

Company director report

DHANASHREE ELECTRONICS LIMITED ANNUAL REPORT 2008-2009 DIRECTOR'S REPORT Your Directors take pleasure in presenting the 22nd Annual Report and the Audited Statements of Accounts for the year ended on 31st March 2009. FINANCIAL RESULTS: The Financial Results of the company for the year ended 31.03.2009 relating to the previous year are given here under: (Rs. in 'Lacs) For the year Previous year Ended 31.03.2009 Ended 31.03.2008 Gross Turnover 559.14 499.15 Other income 1.78 4.25 Less:Expenses: 470.01 408.50 Gross Profit (Before 90.91 94.90 Dep. Int. & Tax) Less:Depreciation 28.52 28.03 Less:Interest 22.58 25.43 Net Profit (Before Tax) 39.81 41.44 Less:Provision for Tax 7.39 3.13 Net Profit (After Tax) 32.42 38.31 Balance B/F (0.68) (38.99) Apportionment for Provision (4.16) (0) of Gratuity Balance carried to Balance Sheet 27.57 (0.68) PERFORMANCE: There has been a substantial growth in the turnover of your Company and thus it was able to reduce further its carried forward losses. An expansion programmed is under consideration and your directors expects a substantial growth in the Company's performance. Your Directors are optimistic about further improvements in the working results in the current year. DIVIDEND: There being insufficient profits, your Directors regret their inability to recommend any Dividend for the year. MANAGEMENT DISCUSSION AND ANALYSIS: A Report on Management Discussion and Analysis forming part of this Annual Report is annexed hereto and marked as Annexure -'A: CORPORATE GOVERNANCE: A separate Report on Corporate Governance together with certificate of compliance from the Auditors in terns of clause 49 of the Listing Agreement is annexed hereto and marked as Annexure 'B'. DIRECTORS RESPONSIBILITY STATEMENT: In compliance with the provisions u/s 217 (2AA) of the Companies Act 1956, your Directors hereby confirm: (i) that in the preparation of the Annual Accounts of the Company, the applicable Accounting Standards have been followed and that no material departures have been made from the same: (ii) that your Directors have selected such Accounting Policies as detailed in Schedule12 to the Annual Accounts and applied them consistently and made judgments and estimates that are reasonable and prudent 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 or Loss of the Company for that period; (iii) that to the best of their knowledge and information, they have taken proper and sufficient care for 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 to the best of their knowledge and ability; and (iv) that the Annual Accounts have been prepared on a going concern basis. PUBLIC DEPOSITS: The Company did not receive and/or renew any deposit from the Public during the year nor was there was any balance carried forward. PARTICULARS OF EMPLOYEES: The Company has no employee whose remuneration is more than the limit specified in Section 217 (2A) of the Companies Act, 1956. And thereby not attracting the provisions under the Act. DIRECTORS: Sri B.R. Kabra and Sri V.K. Sharma Directors of the Company retire by rotation at the forthcoming Annual General meeting and, being eligible, offer themselves for re-appointment. AUDITORS: M/s. Surana Sunil & Co., Chartered Accountants of the Company hold the office until conclusion of the forth coming Annual General Meeting and being eligible offer themselves for reappointment. The report of the Auditors when read with notes on accounts it self explanation and needs no further clarification. ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE.: The information required under section 217 (1)(e) of the Companies Act, read with the Companies (Disclosure of Particulars in the Report of the Board of directors) Rule 1988, with respect to conservation of energy, technology absorption and foreign exchange is annexed hereto as Annexure 'C' and form part of this Report. PERSONNEL: Your Directors place off records their appreciation of the valuable services and sincere contributions made by the employees at all levels. The Management and Employee relationship continued to be very cordial during year. ACKNOWLEDGEMENT: Your Directors sincerely appreciate the high degree of professionalism, commitment and dedication displayed by employees at all levels. The Directors also place on record their gratitude to the Members, various departments of the Central and State Government and Bankers for their continued support, co-operation and confidence. Place: Kolkata For and on behalf of the Board Date : 31.08.2009 M.G. Maheshwari Chairman ANNEXURE TO THE DIRECTOR'S REPORT: Information as required under section 217(1)(e) read with the Companies (Disclosure of Particulars in the Report of the Board of directors) Rules, 1988: A. CONSERVATION OF ENERGY: a) Energy conservation measure taken: The company is taking adequate steps for reduction in non-essential loads to conserve power b) Additional investment and proposals being implemented for reduction of consumption of energy: The efforts to conserve energy on other areas are in progress. c) Impact of above measures: More efficient utilization of power and reduction in energy consumption. d) Total energy consumption and energy consumption per unit of production: As per form 'A' annexed. B. TECHNOLOGY ABSORPTION: Efforts made in technology absorption: As perform 'B' annexed. C. FOREIGN EXCHANGE EARNING AND OUTGO: Activities relating to export, initiative taken to increase export development of new export market for products and services and export plans: The company has not undertaken any export activity during the year. Total foreign exchange used and earned: (Rs. In lacs) 2008-09 2007-08 Total foreign exchange earning - - Total foreign exchange outgo 26.10 16.29 FORM-A: Declaration of producers with respect to conservation of energy for the year ended 31.03.2009: POWER AND FUEL CONSUMPTION: 2008-09 2007-08 1. ELECTRICITY: a) Purchased: -Unit (in lacs) 1.87 3.26 -Total amount (RS. In Lacs) 9.75 11.60 -Rate (Rs./Unit) 5.21 3.56 CONSUMPTION PER UNIT OF PRODUCTION: Electricity (Elec. Unit/Prod. Unit) 3.70 1.91 FORM-B: Form for disclosure of particulars with respect to technology absorption: RESEARCH AND DEVELOPMENT (R & D): 1. SPECIFIC AREAS IN WHICH R&D PROPOSED TO BE CARRIED OUT BY THE COMPANY: The company has undertaken to set up a project to develop an in-house system of research and analysis for developing sophisticated lighting apparatus indigenously. 2. BENEFITS DERIVED: The project is yet to be completed. 3. FUTURE PLAN OF ACTION: The Company is also planning to set up solar power unit with Chinese technology. 4. EXPENDITURE ON R & D: The entire project is on a planning stage at the moment. TECHNOLOGY ABSORPTION, ADOPTATION AND INNOVATION: 1. EFFORTS MADE: Continuous efforts are being made towards improvement in the existing production process. 2. BENEFITS: The company is successful in improving the quality of its products. 3. PARTICULARS OF TECHNOLOGY IMPORTED DURING LAST 5 YEARS: NIL MANAGEMENT DISCUSSION & ANALYSIS: INDUSTRY STRUCTURE & DEVELOPMENT: Indian Economy is being considered as one of the fasted growing Economy in World. To cope with the space of Industrial Growth of the Country. Prime focus has been given to infrastructure development. As a consequence there of a boom is resulting in construction industries all over the country which resulted in increasing the demands for the products of Electrical & Electronics Industries in Geometric probation. Over all Industrial growth of the country also stimulates the demands for modern sophisticated and luxury items as usual. However, the traditional items continue to rule the mass market. Yours Directors are duly geared to the changed situation and have appropriately revised its production schedules and product ranges to avail of the market opportunities for the fullest extent. The company has entered into technical collaboration with a Korean Company for manufacture as well import of very Electronics Items and lighting products keeping in view the market demands as also the Government supply requirements. The Company is also obtained the distributorship for all India of M/s. Music & Sales GMBH Germany manufacturer of H.K. Audio devices for sound systems and also started the business. OPPORTUNITIES & THREAT: The increased cost of power has turned the general attention towards economy in power consumption. In the process the developed countries have concentrated in the CFL Lights. The Indian Market is not lagging behind. Encouraged by the growing demands for CFL Lamps more and more companies have entered the market by importing cheaper varieties from South Asia and Korea in bulk. There is a huge opportunity for domestic manufacture of CFL Variety at a lower cost. The company is in process of importing the Technologies for manufacture of CFL Variety here. But there is a threat of un-even competition from the dumping by cheaper varieties by foreign manufacturers from the East. OUTLOOK: The Company has finally come out the red and is now endeavouring to turn the table. Your Directors foresee brighter days ahead. The new generation is committed to grow progressively always in tune with the country's growth ahead. RISK & CONCERN: Your Directors do not foresee any immediate risk as such. Yet the following factors may influence further prospects to some extent: (i) fluctuation in Budget allocations for infrastructure Developments affecting the growth in the demand for Lighting products; and (ii) Intensity of the price war imported by new entrants from other Asian Countries, specially China, USA and Korea. RESEARCH & DEVELOPMENT: The Company is in the process up a more Research & Development centre with necessary state of the art laboratory facilities. The new setup will be exclusively enqaqed for development of a new range or value added products. The Company has obtained ISO 9001-2000 for maintenance of international quality standards. INTERNAL CONTROL: The Company has proper and adequate system of internal controls commensurate with the size of the Company and the nature of its business. Regular Internal Audits and checks are carried out to ensure that the responsibilities are executed effectively and that adequate systems are in place. HUMAN RESOURCE DEVELOPMENT & INDUSTRIAL RELATION: The Company continues to maintain excellent Industrial Relations while ensuring continuous development of Human Resources through appropriate training and Educational Programmes towards achieving improved productivity and flexibility in production and marketing.