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Gem Cables & Conductors Ltd.

BSE: 517504 Sector: Engineering
NSE: N.A. ISIN Code: INE582B01017
BSE 05:30 | 01 Jan Gem Cables & Conductors Ltd
NSE 05:30 | 01 Jan Gem Cables & Conductors Ltd

Gem Cables & Conductors Ltd. (GEMCABLESCON) - Director Report

Company director report

DIRECTORS' REPORT

To

The Members

Gem Cables and Conductors Limited.

Your Directors present herewith the Annual Report together with the Audited Accounts ofyour Company for the year ended 31st March 2013.

Despite our best efforts your Company could not achieve to post a healthy turnoversolely owing to the lack of working capital facilities from the Banks and otherinstitutions. However your company could mitigate upto some extent by resorting to doingjob work for other companies and end users.

Operating Results:

As part of process of revamping during the interregnum period your company is undercontract manufacturing operations.

The financial results for the Year are:

2012-13 2011-12
1. Income from Operations Rs. 21.92 Lakhs Rs. 1570.63 Lakhs
2. Gross Profit / Loss Rs. (64.93) Lakhs Rs. (39.68) Lakhs
3. Less: Bank Charges Rs. 0.09 Lakhs Rs. 0.07 Lakhs
4. Less: Depreciation Rs. 82.82 Lakhs Rs. 82.82 Lakhs
5. Net Loss for the period before extraordinary & prior period items Rs. (147.84) Lakhs) Rs. (122.57) Lakhs)

Market Scenario:

The domestic market even though buoyant is entirely propelled by the demand triggeredby the ongoing APDERP projects. These projects are being handled by very big contractorson turn key basis and the price bargaining is very high thereby reducing the valueaddition to a bare minimum. However your Company has adopted a model of being outsourcingpartner to some of these companies on contract manufacturing basis and this model ishelping your Company to stay afloat it is felt that unless large working capitalarrangements are made it is difficult to revive the market leadership position in thenear future.

Cash Flow Statement:

In Accordance with the listing agreements with stock Exchanges the Cash Flow statementfor the year ended 31.03.2013 is enclosed.

Restructuring:

The plans to restructure the Company's long term debt profile with low cost of funds isbeing vigorously pursued and the response has been very positive. The efforts of theCompany to resolve the issues with all the financial institutions and Banks are yet tobear the fruit.

Corporate Governance

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges the Report onCorporate Governance along with a Certificate from the Auditors is furnished forming partof this Report.

Energy Conservation:

Conservation of Energy technology absorption etc are enclosed at Annexure 1 asrequired under Section 217 (1) (e) of the Companies Act 1956.

Auditors and Auditors Report:

M/s. JBRK & Co. Chartered Accountants Hyderabad retire at the conclusion of theensuing Annual General Meeting and are eligible for reappointment. They havesignified their willingness to accept re-appointment and have further confirmed theireligibility under Sec.224(1 B) of the Companies Act 1956.

Directors:

Shri. Y.Malla Reddy Director retires at the ensuing Annual General Meeting and iseligible for reappointment.

Responsibility Statement:

Pursuant to the requirement under sec.217(2AA) of the Companies Act 1956 with respectto Director's responsibility statement it is hereby confirmed that'

1. in the preparation of the accounts for the financial year ended 31st March 2013 theapplicable accounting standards except as stated have been followed along with properexplanation relating to material departure;

2. the Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that were reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe loss of the Company for the year under review;

3. the Directors have taken proper and sufficient care for the maintenance of adequateaccounting 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 otherirregularities;

4. the Directors have prepared the accounts for the financial year ended 31st March2013 on a "going concern" basis.

Particulars of Employees:

There are no Employees in the company whose particulars are required to be furnished asper Section 217 (2A) of the Companies Act read with the Companies (particulars ofemployees) Rule 1975.

Human Resources:

During the period under review your Company continues to enjoy cordial relations withemployees at all levels.

Foreign Exchange earnings and outgo:

During the period there was neither earning nor outgo of foreign exchange.Acknowledgements:

Your Directors convey their appreciation for the services rendered by Employees &Staff. Your Directors thank M/s. SASF IDBI and Banks for their continued support.

Your Directors would like to thank all the Customers of the Company for theircontinued co-operation. Finally we thank the large family of share holders of yourCompany and all others who are assisting the Company.

Place: Hyderabad By order of the Board.
Date: 30th August 2013. Gem Cables & Conductors Limited
Sd/-
Y.Kamesh
Director.
Sd/-
K V S Rao.
Director.

Annexure to Directors Report.

Companies (Disclosure of particulars in the report of Board of Directors) Rules.

A. Conservation of Energy:

B. Energy Conservation measures:

No fresh energy conservation measures have been adapted this year other thancontinuation the previous years' measures on account of very low production and equipmentutilization.

Care is being exercised over putting off the yard lighting and the factory lighting atthe first break of dawn. Where.ever possible tube lights and MV Lamps have been replacedwith CFL lamps to save energy.

C. Additional investments and proposals if any being implemented for thereduction of consumption of energy: None.

a. Impact of the measures at (a) and (b) above fore reduction of energy consumption andconsequent impact on the cost of production of goods: Insignificant.

b. Total energy consumption and energy consumption per unit of production as per form Ain respect of industries specified in the schedule thereto: Not Applicable.

D. Technology Absorption:

a. Efforts made in technology absorption as per Form B is given below: Form fordisclosure of particulars with respect to absorption Research and Development (R&D):

1. Specific areas in which R&D Efforts have been put in by the Company are: NoR&D was carried out during the period under review.

2. Benefits derived as a result of the above R&D: None.

3. Future Plan of action: To develop Elastomeric and special application cables andpaper wound wires & strips for transformers.

Technology adoption adaptation and innovation:

1. Efforts in brief made towards technology absorption adaptation and innovation: Asthere are only skeletal operations no efforts have been made in this direction by theCompany. There is no imported technology.

2. Benefits derived as a result of these efforts: Not applicable.

3. Imported technology: No technology has been imported in the last 8 years reckonedfrom the beginning of the financial year.

4. Foreign Exchange earnings and outgo:

I. Activities relating to exports: Rs.Nil. ii. Outgo by way of expenses: Rs. Nil.

Place : Hyderabad. By order of the Board.
Date: 30th August 2013. Gem Cables & Conductors Limited
Sd/-
Y Kamesh.
Director.
Sd/-
K V S Rao.
Director.