GUJARAT AQUA INDUSTRIES LIMITED
ANNUAL REPORT 2011-2012
Your Directors have the pleasure in presenting the Annual Report together
with the Audited Statement of Account for the year ending on 31st March,
Particulars Current Year Previous Year
Income from Operation 0 0
Depreciation 2,082 3,518
Profit/(Loss) for the year (-) 1,46,217 (-) 42,88,631
Income Tax (Earlier year) 0 0
provision for Tax (-) 1,46,217 (-) 42,88,631
Balance Brought forward
from previous year (-) 3,43,39,441 (-)3,00,50,810
Balance carried to
Balance sheet (-) 3,44,85,658 (-) 3,43,39,441
Your directors do not recommend any dividend for the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
The disclosures required to be made pursuant to the provisions of section
217 (1) (e) of the Companies Act, 1956 read with Companies (Disclosure of
particulars in respect of Report of Directors) Rules, 1988 are not
applicable. There was no foreign exchange earnings and outgo during the
year under the review.
The information required to be given pursuant to the provisions of Section
217 (2A) of the Companies Act, 1956 read with Companies (Particulars of
Employees) Rules, 1975 do not apply.
Shri. Jayesh Patel and Mrs. Ansoya Patel retires by rotation at the ensuing
Annual General Meeting and being eligible Only Shri jayesh Patel offer
himself for reappointment and Mrs. Ansoya Patel does not offer herself for
appointment. Your Directors recommends re-appointment of Shri. Jayesh
The auditors M/s. Kamal C Mehta & Co., Chartered Accountants offers
themselves for reappointment at the ensuing annual general meeting. The
company has received a letter from the auditors stating that their
appointment if made will be within the limits of Section 224 (1) (B) of the
Companies Act, 1956. The Directors recommend for their reappointment.
The observation made in the Auditors' Report read together with relevant
notes thereon are self explanatory and hence do not call, any further
comments under Section 217 of the Companies Act 1956.
SECRETARIAL AUDIT REPORT:
The Compliance Certificates as required under section 383A of the Companies
Act, 1956 has been obtained from a Practicing Company Secretary and is form
part of the Balance Sheet.
Your Company has not contravened the provisions of Section 58 A of the
Companies Act, 1956.
The shares of the company are listed at Ahmedabad Stock Exchange, Mumbai
Stock Exchange and Madras Stock Exchange, Annual Listing fees of Bombay
Stock Exchange, CDSL are paid for the year 2011- 2012, while that of
Ahmedabad and Madras Stock Exchange is unpaid.
DIRECTORS RESPONSIBILITY STATEMENT:
1. The annual accounts have been prepared by following the applicable
accounting standards together with proper explanation relating to material
2. The directors have selected such accounting policies and applied them
consistently and made judgments 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 and of the profit and loss account
for that period.
3. The directors took proper and sufficient care for the maintenance of
proper and adequate accounting records in accordance with the provisions of
this Act for safeguarding the assets of the company and for preventing and
detecting frauds and other irregularities.
4. The annual accounts are prepared on going concern basis.
MANAGEMENT DISCUSSION AND ANALYSIS:
The financial statements of the company have been prepared in compliance
with the requirements of the Companies Act, 1956 and Generally Accepted
Accounting Principles (GAAP) in India. There are no material departures
from prescribed accounting standards in the adoption of accounting
standards. The management of the company accepts responsibility for the
integrity and objectivity of these financial statements, as well as for
various estimates and judgments used therein. The estimates and judgments
relating to the financial statements have been made on a prudent and
reasonable basis, in order that the financial statements reflect in a true
and fair manner, the form and substance of transactions and reasonably
present the company's state of affairs and profits for the year.
OPPORTUNITIES, THREATS, RISKS AND CONCERNS:
SWOT ANALYSIS OF THE COMPANY:
The company has sold the plant.
The pharmaceutical companies & ISO certified companies are approaching &
testing the company's capabilities to provide high quality process due to
Company's specialisation in the field.
The high cost of the products attracts only quality conscious customers
hence it's difficult to complete with low quality products or process.
The awareness of herbal products in India and abroad offers growth
potential and better profitability.
The international market is very cost conscious & hence even slight
variation in costing may turn into loss of business.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUANCY:
The Company has a proper and adequate system of internal controls to ensure
that all assets are safeguarded and protected against loss from
unauthorized use or disposition, and that, transactions are authorized,
recorded and reported correctly. The internal control system is
supplemented by an extensive program of internal audits review by
management and documented policies, guidelines and procedures.
The Company has an effective system in place towards achieving efficiency
in operations, optimum and effective utilization of resources monitoring
thereof and compliance with applicable laws.
RISKS & MANAGEMENT PERCEPTION:
Risk is inherent aspect of business. The negative fallouts of such an
ingredient, however, need to be managed through effective risk mitigation-
both at the strategic as well as at the transaction level.
INDUSTRIAL RELATIONS & HUMAN RESOURCE MANAGEMENT:
The Company has always recognized the manpower as its asset.
As India progressively moves to a free market environment, international
producers will have increased access to the Indian market either through
the establishment of manufacturing bases in India or from overseas. Indian
manufacturers therefore would urgently need to re-engineer themselves,
wherever possible, to complete in this environment in terms of costs,
quality and product innovation.
Statements in the Management Discussion and Analysis describing the
Company's objectives, projections, estimates and expectations may be
"forward looking statements" within the applicable laws and regulations
Actual results may differ materially from those expressed or implied.
Important factors that could make a difference to the Company's operations
include economic conditions affecting demand/supply and price conditions in
the domestic markets in which the Company operates, changes in the
Government regulations, tax laws and other statutes and other incidental
Your Directors wish to convey their thanks to the bankers, and other
persons for their continued support to the company.
By Order of the Board of Directors
For Gujarat Aqua Industries Limited
Date : 25/08/2012