DYNACHEM PHARMACEUTICALS (EXPORTS) LIMITED
ANNUAL REPORT 2010-2011
Your Directors have pleasure in presenting the 19TH Annual Report
together with audited statement of accounts of the Company for the year
ended on 31st March 2011.
OPERATIONS DURING THE YEAR:
The company has a very good Operational activity during the year due to
The financial results are as under:-
PARTICULARS AMOUNT (RS. IN LACS)
Turn Over 2.16 12.89
Expenses 2.11 11.39
Profit Before Tax 0.04 1.49
Provision for Taxation 0 0.25
Profit after Tax 0.04 1.24
During the year, the existing auditors of the company have shown their
unwillingness to continue to be the Auditors of the company hence the
members are requested to appoint new auditors M/s. SHIRISH DALAL &
ASSOCIATES, Chartered Accountants, Ahmedabad for the current year and to
fix their remuneration. M/s. SHIRISH DALAL & ASSOCIATES, Chartered
Accountants have consented to act as the auditors of the Company.
During the year the company has not accepted any deposit u/s. 58A of the
Companies Act, 1956.
During the year Anlsh Shah will retire by rotation at the ensuing A.G.M and
being eligible, offers himself for re-appointment.
FOREIGN EXCHANGE EARNING AND EXPENDITURE:
There were no Foreign Exchange transactions during the year.
PERSONNEL AND OTHER MATTERS:
As required by the provisions of Section 217(2A) of the Companies Act,
1956. read with the Companies (Particulars of Employees) Rules, 1975, as
amended, the names and other particulars of the employees are not given as
no employee was coming under the provisions set of section 217 (2A).
Since the Company does not own any manufacturing activity, the disclosure
of information relating to conservation of energy and technology
absorption to be disclosed in terms of Section 217(l)(e) of the Companies
Act, 1956, read with the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988, are not applicable and hence
The Company has formed an Audit Committee comprising of 3 directors. The
terms of the reference of the committee are in line with the requirements
as stipulated u/s 292A of the Co. Act, 1956 and Corporate Governance as
stated in Clause 49 of the Listing Agreement.
DIRECTORS' RESPONSIBILITY STATEMENT:
The Directors confirm that in preparation of the annual accounts for the
year ended March 31, 2011.
1. The applicable accounting standards had been followed along with proper
explanation relating to material departures;
2. They had selected such accounting policies and applied them consistently
3. judgements and estimates that are reasonable and prudent had been taken
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 that
4. they had 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; and
5. they had prepared the annual accounts on a going concern basis.
CORPORATE GOVERNANCE AND COMPLIANCE:
A report on corporate governance is annexed to this report. A certificate
from Statutory Auditors with regards to the compliance of the corporate
governance by the company is annexed to this report.
The company has fully complied with all mandatory requirements prescribed
under clause 49 of the listing agreement. In addition, the company has also
implemented some of the non mandatory provisions of clause 49.
The Directors thank the clients for the confidence reposed, which has
enabled the Company in successfully achieving the satisfactory
The Directors also thank the Company's bankers, lenders, the Government of
India, the Securities and Exchange Board of India, the Reserve Bank of
India and other statutory authorities for their continued support to the
The Directors express their gratitude for the support and guidance received
from its shareholders.
The Directors also express their sincere thanks and appreciation to all the
employees for their commendable teamwork, professionalism and contribution
during the year.
BY ORDER OF THE BOARD OF DIRECTORS
DYNACHEM PHARMACEUTICALS (EXPORTS) LTD.,
DATE : 01-09-2011 SPANISH V SHAH
MANAGEMENT DISCUSSION AND ANALYSIS
The Company is in the business of Trading in shares and Finance Activity.
The key issues of the Management Discussion and Analysis are given below.
(a) Industry structure and developments
Indian Finance market size is estimated at Rs. 395 Trillion. Approximately
one third of this demand is met through Share Market and the balance is
met through Financers and lenders. The Industry is mainly dependent on the
Investors sentiments. It is now prevailing good and getting healthy.
The fortunes of the Finance industry are. to a large extent, linked to the
growth of the Industry and Investment sentiments of the people. The
Industry is facing intense competition from the Foreign financial
The strength of a company is known from the profit it earns and sound
advances. It also depends on the Government policies of taxation.
Introduction of Securities Transaction Tax and thereby exempting Long term
Capital gain has given a big boost to the market.
(c) Comment on Current year's performance
Receipts : The Receipt has been phenomenal for the first
year of its operations.
Operating Expenses : The operating Expenses are well under control.
Operating Profits : The Operating Profits are up to industry mark.
Indirect Expenses : The Indirect Expenses are under control.
Depreciation : Reasonable amount of Depreciation is provided.
Profit before tax : Profit before tax is also an improving trend.
Taxation : Taxation is Provided as per Income Tax Act.
Debtor/Sales : Debtors are reasonable.
Creditors/Purchase : The Company has an established credit.
d) Opportunities and threats
The impact of boom in capital market and real estate market due to
government support has provided a boost to the economy and it is set to
grow at 15% to 19% supported by a smart growth in manufacturing and
services sectors. This brings prosperity to a country and more and more
people go for investment in Share market. Outlook for the year 2010 is
positive. While the overall demand outlook for the year 2011remains good,
the Company expects the pressure on quality customers to continue due to
(e) Segment wise performance
The business of the Company falls under a single segment i.e. Trading &
Financing for the purpose of Accounting Standard AS-17.
The continual growth in the Finance sector is expected to give the
necessary support to the Finance industry. The Company is making all
efforts to accelerate growth of its business. It expects to improve its
position in the market by focusing on technologically advanced and more
profitable products/market segments and working aggressively in the areas
of productivity, efficiency and cost reductions.
(g) Risk and concerns
The menace of local Finances and play of angadia has further compounded the
problems of the organized Finance Industry as they use inferior way of
transferring funds. The Stock market is also a risky place to put one's
fund. The pull back of FIls will also have ' an adverse effect on the
(h) Internal control system
Internal audit and other controls have been found to be adequate. These are
reviewed periodically by the Audit Committee and found the performance
(i) Developments in human resources and industrial relations
Information as per Section 217 (2A) of the Companies Act, 1956 read with
the Companies (Particular of Employees) Rules, 1975 is not required to be
given as no employee falls under it. The Company continued to have cordial
relations with all the employees.
BY ORDER OF THE BOARD OF DIRECTORS
DYNACHEM PHARMACEUTICALS (EXPORTS) LIMITED,
DATE : 01-09-2011 SPANISH V SHAH