ICCON OIL AND SPECIALITIES LIMITED
ANNUAL REPORT 2011-2012
ICCON OIL AND SPECIALITIES LIMITED
Your Directors have pleasure in presenting before you the 24th Annual
Report of the Company together with the Audited Statement of Accounts for
the year ended 31st March, 2012.
FINANCIAL RESULT Amounts in Rs.
Loss for the year (839,491) (732,097)
Less: Debit Balance as per
last balance sheet (163,106,187) (163,945,678)
Debit Balance carried to Balance sheet (163,945,678) (164,785,169)
In view of loss, your Directors do not recommend any dividend.
During the year under review company did not carried on business and do not
have any income. Company is referred to BIFR (Board of Industrial and
Financial Re-construction) and the final order of the BIFR is awaiting for
the scheme of Rehabilitation submitted by the Company.
During the period under review the Company did not accept deposits in terms
of Section 58A of the Companies Act, 1956 and pursuant to the provision of
the Non-Banking Financial Companies (Reserve Bank) Direction 1998.
Mr. Narendra Kumar Tiwar , Director of the company retires by rotation at
this Annual General Meeting and being eligible, offers themselves for re-
appointment. The brief resume and other details of director, who are to be
re-appointed as stipulated under clause 49(IV)(G) of the listing agreement,
are furnished in the corporate Governance Report forming part of the Annual
Report. During the year there were no changes had taken place in the
constitution of the Board of Directors of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217 (2AA) of the Companies Act, 1956 the Board of
Directors of your company confirms:
(1) In the preparation of annual accounts, the applicable accounting
standards have been followed;
(2) Appropriate accounting policies have been selected and applied
consistently and judgments and estimates made that are responsible and
prudent so as to give true and fair view of the state of affairs of the
Company at the end of the financial year ended and of the profit and loss
of the Company for that period.
(3) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities:
(4) annual accounts have been prepared on a going concern basis.
(5) The company has received certificates from Directors u/s 274(l)(g) of
Companies Act, 1956.
1. The company has paid any remuneration above the limit stipulated in
section 217(A)(a) of companies Act, 1956 per month to any of its employees
and as such no Statement is required to be appended this Report.
2. The Company has not accepted any deposits within the meaning of section
58-A of the companies Act, 1956, and /or which are remained unpaid or
unclaimed for which information is required to be given in this Report.
3. A statement under section 217(1)(e) companies Disclosure of Particulars
in the Report of Board of Directors Rules, 1988 in relation to part A
pertaining to the conservation of Energy is not applicable to the company.
The company does not have its own R&D divisions nor spent any amount on R
8b S. However the Directors of the company are qualified in respective
field of production and are attentive to all type of research papers,
materials and conferences. The experience of Directors contributes to
company's products development.
4. The company and has not spent or earned any foreign exchange. However
the company is examining suitability and prospects in export market for
5. Notes forming part of Accounts referred to in Auditors Report are self-
CORPORATE GOVERNANCE AND COMPLIANCE
A report on corporate governance along with Management Discussion and
Analysis is annexed to this report as Annexure A certificate from Statutory
Auditors with regards to the compliance of the corporate governance, as
stipulated in Clause 49 of the Listing Agreement, 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.
RAJENDRA & CO., Chartered Accountants, the Auditors of the Company hold
office up to the conclusion of this Annual General Meeting and are eligible
for re-appointment. RAJENDRA 8s CO., have submitted to the company a
Certificate that their reappointment as the Auditors of the company would
be within the limits laid down in section 224(1-B) of the companies Act,
1956. You are requested to appoint the Auditors and fix their remuneration.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
The company do not carried any manufacturing activities and the plant was
not operational during the year under review.
During the year under review the Company has no foreign exchange earnings
The Board of Directors take the opportunity to thank the assistance and co-
operation received from the shareholders, Financial Institutions, Banks,
Central and Sate Government Authorities. The Board also place on record its
deep appreciation for the contribution made by the employees at all levels.
By order of the Board
For ICCON OIL AND SPECIALITIES LTD
Date : 31-08-2012
(TUSHAR HASMUKH SHAH)
MANAGEMENT DISCUSSION AND ANALYSIS
Even though company could not resume its operations during the year,
company is maintaining it plant in excellent condition to hit the market at
any time in future. The company is in manufacturing sector of re-fined tube
oil (base oil) and in the manufacture of waxes and jellies. The key issues
of the Management Discussion and Analysis are given below.
(a) Industry Structure and Developments
Over the past years the role of oil is evolved from a supporting function
into strategic necessity into business and development. As it assumes the
central role of finance sector, balance of payments and so the importance
of the sector is not required any explanations. The sky rocketing of oil
prices in International and domestic markets necessitated the refining of
waste/used oils and had created a vast opportunity for the business
entrepreneurs. Your company having an excellent facility of manufacturing
and processing of refined oil sees an opportunity in this growing sector.
Excellent and ready to operate manufacturing facility of the company, along
with dedicated staff and efficient management gives the company always an
edge in its business activities. Highly qualified professionals under an
efficient Board of directors and a team of executives is the major strength
of the Company.
Company is known for its reputation and had created its on place in the
market and its products have wide acceptability in the market.
(c) Comment on Current year's performance
The company did not carried business during the year. BIFR is considering
its scheme of rehabilitation and company expecting an earliest order in
Receipts : Company do not have any income.
Operating Expenses : No operating expenses
Operating Profits : There are no operating profit for the current
Indirect Expenses : The Indirect Expenses are under control.
Depreciation : Rs.7.04 Lacs is provided as depreciation
Profit before tax : company incurred net loss of 7.32 Lacs.
Taxation : Tax is not Provided.
d) Opportunities and Threats
We operate in a market characterized by swift changes and convergence. We
face formidable competition in every aspect of our business. We do face
competition from other manufacturers, including start-ups as well as
developed companies that are enhancing or developing new methods and
Your company however, has a well-integrated platform that will ensure we
stay ahead of the curve. We are augmenting features and products to our
existing products and own the complete value chain of products and services
(e) Segment wise performance
The business of the Company falls under a single segment i.e. refining,
processing of oil and ancillary products and for the purpose of Accounting
The Company is making all efforts to re-start and accelerate growth of its
manufacturing of well standardized products. It expects to improve its
position in the market by focusing on adopting new methods and technology
and thereby expand into more profitable products/market segments and
working aggressively in the areas of productivity, efficiency and cost
(g) Risk and concerns
The market penetration by new entrants in the Company's business area and
the strong hold of existing Big players in the market places hurdles in the
growth path of the Company. However the company is aggressively using well
talented employees and personal to establish new business areas and to
develop existing market.
(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