GLOBAL SECURITIES LIMITED
ANNUAL REPORT 2010-2011
The Directors' present the Eighteenth Annual report on the business and
operations of your Company for the year 2010-2011.
FINANCIAL RESULTS AND OPERATIONAL REVIEW:
Year Ended Year Ended
Particulars 31.03.2011 31.03.2010
Gross Sales/Income 512.78 348.40
Less Depreciation 1.26 1.26
Profit/(Loss) before Tax 0.55 (2.51)
Taxes/Deferred Taxes NIL NIL
Profit/(Loss) After Taxes 0.55 (2.51)
P& L Balance b/f (65.59) (63.08)
Profit/(Loss) carried to Balance Sheet (65.04) (65.59)
REVIEW OF PERFORMANCE:
Your Directors feel pleasure to report increase in the turnover and
registering profit after tax of Rs. 55,153 which was made possible through
inserting capital equipment last year and better production planning.
Directors are exploring various other opportunities to further improve the
working results during the current year.
In view of the losses, your Directors do not recommend the dividend for
financial year ended on March 31, 2011.
Mr. Jayesh Shah, Mr. Nipesh Shah and Mr. Alpesh Gupta were resigned during
the year and Mr. Deenkar B. Shreemali, Jagdish G. Ajwani and Rameshchandra
B. Chavan were inducted as an additional director with effect from
21/03/2011, 16/03/2011 and 16/03/2011 consecutively and hold office upto
ensuing annual general meeting of the Company. The Company has received
notice from a member pursuant to Section 257 of the Companies Act, 1956,
signifying his intention to propose the candidature of Mr Deenkar B.
Shreemali, Jagdish G. Ajwani, and Rameshchandra B. Chavan for the office of
Mr. Rameshchandra B. Chavan Director of the Company are liable to retire by
rotation at the ensuing Annual General Meeting and being eligible, offer
themselves for re-appointment.
During the year under review the Company has not accepted any deposits to
which the provisions of section 58A of the Companies Act, 1956 read with
Acceptance of Deposits Rules, 1975 as amended are applicable.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under section 217 (2AA) of the Companies
Amendment Act, 2000 with respect to Director Responsibility Statement it is
1. That in the preparation of the Annual Accounts for the financial year
ended 31st March, 2011 the applicable accounting standards had been
followed along with proper explanation relating to material departures.
2. That the Directors had selected such accounting policies and applied
them consistently and made judgments 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 Loss of the
Company for the year under review.
3. That the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance .with the
provision of the Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities.
4. That the Directors had prepared the accounts for the financial year
ended 31st March, 2011 on a going concern basis
REPORT ON CORPORATE GOVERNANCE:
A separate section on Corporate Governance and a Certificate from Auditors
of the company regarding compliance of conditions of Corporate Governance
as stipulated under clause 49 of the Listing Agreement together with the
Management Discussion and Analysis of the financial position of the company
forms part of the Annual Report.
M/s Vishvesh A. Shah, Chartered Accountants of the Company, has showed his
unwillingness and sent resignation as the Statutory Auditors of the
Company. Accordingly, M/S. Vikram S. Mathur & Company, Chartered
Accountants, have been appointed as Statutory Auditors of the Company.
However, they have resigned on 06th August, 2011 and accordingly, M/S.
Praful N Shah & Comtphany has been appointed as Statutory Auditors of the
Company by Board of Directors on 06th August, 2011. The Board of Directors
recommend their reappointment as statutory auditors of the company for the
period from the conclusion of this Annual General Meeting upto the date of
the next Annual General Meeting.
The observations of the Auditors in their Report and Notes Attached to the
Accounts to the Accounts are Self-Explanatory and do not require any
The company's present Board of Directors is properly constituted and the
company has also formed an Audit Committee in compliance with provisions of
Section - 292A of the Companies Act, 1956 and also in compliance with the
Clause 49 relating to Corporate Governance. The duties, powers,
responsibilities assigned to the Audit Committee are in line with the
Clause 49 of the Listing Agreement.
Equity Shares of the company are listed on the Bombay Stock Exchange
Limited (BSE), Ahmedabad Stock Exchange Limited (ASE) and Vadodara Stock
PARTICULARS OF EMPLOYEES:
Company has no employee who were in receipt of the remuneration of Rs.
24,00,000/- in the aggregate, if employed for the year and in receipt of
the monthly remuneration of Rs. 2,00,000/- p.m. if employed for a part of
the year as per the provision of Section 217(2A) of the Companies Act, 1956
read with the Companies (particulars of employees) Rules, 1975. Hence the
information required under S-217(2A) of the Companies Act, 1956 being not
applicable are not given in this report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE:
The Additional information required under Section 21 7(l)(e) of the
Companies Act, 1956 relating to Conservation of energy, technology
absorption are not applicable to the Company, as the company is not engaged
in the manufacturing activities. The Company has no any Foreign exchange
earnings or outgoes during the financial year.
MANAGEMENT DISCUSSION AND ANALYSIS:
Management discussion and analysis Report, pursuant to Clause 49 of the
Stock Exchange Listing agreement is as under:
1. Overall Review:
Company deals in trading of Government Securities and Bonds. Slow down in
the stock markets will boost up investment in Government Securities and
2. Financial Review:
During the year Gross turnover of the company was increased to
5,12,85,777/- as compared to Rs. 3,48,40,000/- last year. However company
has incurred loss of Rs. 65,03,992/- for the year ended on 31.03.2011 as
compared to loss of Rs. 65,59,145/- for the previous year ended on
3. Risk and Concern:
Bullish trend in Equity Markets, Commodities and Real estate will effect
volume and profitability of Government Securities business. There is no
other identifiable Risks or threats.
4. Internal Control System and their adequacy:
Considering the size of the company, your company has adequate system of
internal control to provide reasonable assurance that assets are
safeguarded and protected from unauthorized use or disposition.
5. Human Resources:
There being only two employees for day to day working of office and the
same has been found satisfactory.
6. Environmental Issues:
As the company is not in the field of manufacture, the matter relating to
produce any harmful gases and the liquid effluents are not applicable.
7. Cautionary Statement:
Statement in this report on Management Discussion and Analysis may be
forward looking statements within the meaning of applicable security laws
or regulations. These statements are based on certain assumptions and
expectations of future events. Actual results could
however, differ materially, from those expressed or implied. Important
factors that could make a difference to the company's operations include
global and domestic demand supply conditions, finished goods prices, raw
material cost and availability and changes in government regulation and tax
structure, economic development within India and the countries with which
the company has business contacts and other factors such as litigation and
The Company assumes no responsibility in respect of forward - looking
statements, which may be amended or modified in future on the basis of
subsequent developments, information or events.
Your Company is engaged in a single segment only.
Your company & Directors wish to place on record their appreciation of the
assistance and cu-operation extended by Investors, Bankers, Customers,
Business Associates and Reserve Bank of India. We are deeply grateful to
shareholders for their continued faith, confidence and support to the
company. The Directors wishes to place on record its appreciation of
sincere and dedicated work of employees at all levels, which has largely
contributed to the present growth of the Company.
By order of the Board
For Global Securities Limited
Date : 15th June, 2011
Place: Ahmedabad Sd/- Sd/-
(Mr. Deenkar B.Shreemali) (Mr. Jagdish G Ajwani)