MAGNA COLORS LIMITED
ANNUAL REPORT 2010-2011
Your Directors have pleasure in presenting the Annual Report together with
the Audited Accounts of the company for the year ended 31st March 2011
I FINANCIAL MATTERS:
March 2011 March 2010
Total Income 165000 0
Total Expenses 93420 8989
Profit Before Depreciation & Tax 71580 (8989)
Depreciation 0 0
Provision for Tax 24330 NIL
Profit/Loss After Tax 47250 (8989)
DIRECTORS RESPONSIBILITY STATEMENT
In terms of Section 217(2AA) of the Companies Act, 1956, the Directors
hereby confirm that:
1. The financial statements are prepared in accordance with the applicable
Accounting Standards and the provisions of the Companies Act, 1956 with
proper explanation relating to material departures, if any.
2. The Accounting policies as required have been followed by the Company
and the judgments & estimates that are reasonable and prudent have been
made so as to reflect a 'true and fair view' of the financial statements of
the Company at the end of the financial year and of the Profit of the
Company for the year ended on that date.
3. The financial statements have been prepared on a going concern basis.
4. The Directors had taken proper & sufficient care for maintenance of
adequate accounting records in accordance with the provisions of this Act
for safeguarding the Assets of the company and for preventing & detecting
fraud & other irregularities.
To augment the resources, your Directors do not recommend the dividend.
Director of the company is retiring by rotation and being eligible, offer
himself for reappointment, Board recommends his reappointment.
The Company has not accepted any deposits from the public within the
meaning of Section 58 A of the Companies Act, 1956 and Rules made there
PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A)
The provisions of section 217(2A) of the Companies Act, 1956 read with the
Companies (particulars of Employees) Rules 1988, as amended are not
applicable to the Company, as there are no employees whose remuneration is
in excess of the limits prescribed.
The Auditors M/s. Soumitro Mukherjee & Co., Chartered Accountants of the
Company retire at this Annual General Meeting and being eligible, are
recommended their reappointment as 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
Equity Shares of the company are listed on the Bombay Stock Exchange
Limited (BSE). Company has paid the annual listing fees for the year 2011-
12 to the Exchange. Presently Shares of the company are suspended on the
FOREIGN EXCHANGE EARNINGS & OUTGO
The company has not earned any foreign exchange or incurred any foreign
All the Directors would like to express their grateful appreciation for the
sincere co-operation received from all the people concerned during the year
BY ORDER OF THE BOARD OF DIRECTORS
DATE : 05/09/2011
PLACE : Mumbai.
MANAGEMENT DISCUSSION AND ANALYSIS
Your Directors have the pleasure in presenting the Management Discussion
and Analysis Report for the year ended March 31, 2011
INDUSTRY STRUCTURE AND DEVELOPMENT
Pharmaceutical, Agro and Chemical sectors form the backbone of the country
and need to grow faster. However, because of substantial investment
requirements, the growth of the sector is not to the expected level.
International Companies have started taking interest in Indian markets and
hopefully there will be more growth.
OPPORTUNITIES, THREATS AND RISKS
The sector is showing healthy signs of growth. The fluctuation of the raw
material price put pressure on the profitability. The company is trying to
SEGMENT WISE PERFORMANCE
The Company has currently only one segment (viz. Trading activity) in line
with the Accounting Standard on Segment reporting (AS-17). Accordingly,
there are no separate reportable segments.
INTERNAL CONTROL SYSTEM & THEIR ADEQUACY
The company has adequate internal control system commensurate with the
size. The committee reviews the implementation of management policies to
ensure that transaction has been accurately recorded and promptly reported.
There is expected to be good demand for raw materials in pharmaceutical,
agro product and chemical sectors as massive investments have been planned
by industry majors.
HUMAN RESOUCES & INDUSTRIAL RELATION
The company has harmonious relation with its employees. There is continuous
emphasis on development of human resources through training. The issues
with employees, if any, are resolved in harmonious and cordial manner.
TRADING STATUS ON THE STOCK EXCHANGE
The company's equity shares are under suspension for trading purposes on
Bombay Stock Exchange Limited.
WHISTLE BLOWER POLICY
The company does not have any Whistle Blower Policy as of now but no
personnel are being denied any access to the Audit Committee.
CODE OF CONDUCT
The Board has laid down a code of conduct for all the Board Members and
Senior Management of the company. All the Board Members and Senior
Management Personnel have affirmed compliance with the Code on an annual
A Qualified Practicing Company Secretary has carried out a secretarial
audit of the total issued capital and listed capital. The secretarial audit
report confirms that the total issued / paid up capital are in agreement
with the total number of shares in Demat and physical form.
As provided under Clause 49 of the listing Agreement with the Stock
Exchange the Managing Director of the Company has certified to the Board in
compliance with Clause 49(V) regarding CEO/CFO certification.
As provided under Clause 49 of the Listing Agreement with the Stock
Exchanges, the Board Members and the Senior Management personnel have
confirmed compliance with the code of conduct for the financial year ended
31st March 2011.
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
CHAIRMAN & MANAGING DIRECTOR
Place : Mumbai
Date : 5th September, 2011.