To The Members
Your Directors have pleasure in presenting the 22nd Annual Report of your Companytogether with theAudited Statements ofAccounts for the year ended March 31 2014.
(Rs. in Lac)
|FINANCIAL HIGHLIGHTS ||Year Ended 31.03.2014 ||Year Ended 31.03.2013 |
|Sales / Income ||32.00 ||14.49 |
|Profit /(Loss) before Tax ||13.77 ||(15.31) |
|Less : Provision for Taxation ||0.00 ||0.00 |
|Profit /(Loss) after Tax ||13.77 ||(15.31) |
|Add: Profit/(Loss) brought forward from Previous Year ||(334.01) ||(318.70) |
|Balance of Losses carried forward ||(320.24) ||(334.01) |
OVERVIEW OF ECONOMY
A survey by global consultancy firm Ernst & Young (E&Y) sees India as theworld's most attractive investment destination. With the opening up of foreign directinvestment (FDI) in several sectors India is today an eye-catching destination foroverseas investors. The relaxation of norms by the government has created a vastopportunity for foreign players who are competing for a greater role in the Indianmarket. Sectors projected to do well in the coming years include automotive technologylife sciences and consumer products.
The World Bank has projected an economic growth rate of 5.7 per cent in FY15 for Indiadue to a more competitive exchange rate and several significant investments going forward.
India is the third biggest economy in the world in terms of purchasing power parity(PPP) according to a World Bank report. The country was ranked 10th in the previoussurvey conducted in 2005.
The stakes held by foreign institutional investors (FII) in Indian companies touched arecord high in the fourth quarter of FY 14. The estimated value of FII holdings in Indiastands at US$ 279 billion.
The cumulative amount of FDI equity inflow into India stood at at US$ 212031million inthe period April 2000February 2014 while FDI equity inflow during April2013February 2014 was recorded as US$ 20766 million as per data published byDepartment of Industrial Policy and Promotion (DIPP).
Thus the emphasis is on a massive road connectivity plan which will tie the regiontogether and subsequently enhance economic objectives. Also agricultural gross domesticproduct (GDP) in the country is projected to grow by over five per cent in the currentagricultural year (July 2013May 2014).
OVERALL PERFORMANCE & OUTLOOK
The Business environment continued to be remained challenging and the recessionaryeconomic conditions continuously leading to slowdown in demand and inflation pushedfurther scale up of input costs continued to leave its adverse imprint on overallperformance for 2013-2014. In spite of such a scenario the Company could only make meagerprofit during the year under review.
Gross revenue for the year was of Rs. 32.00 Lac during the year in comparison to lastyears' figure of Rs. 14.49 Lac. In term of Net Profit the same was of Rs. 13.77 Lac incomparison to last years' Loss of Rs. 15.31 Lac. The Gross Revenue is inclusive ofCompensation amount of Rs. 10.83 Lac which was being received from Govt. of Tamil Nadu asagainst cancellation of Land allotted to Company for the purpose of Factory.
The Company is in the business of trading of tablet liquid orals capsules andointments under the allopathic system and capsules and liquid orals under the ayurvedic/sidha systems. The Company's business involves huge investments in marketing for itsoperations.
The outlook for the current year seems to be challenging due to higher input costraise in inflation and tight Government norms for Pharma business etc. However yourCompany expects to grow despite the adverse environment due to its commitment to clientsof the Company.
Due to carried forward losses your Directors do not recommend any Dividend for theyear under review.
The Company does not have any subsidiary Company.
MANAGEMENT DISCUSSION &ANALYSIS
As required by Clause 49 of Listing Agreement the Management Discussion and Analysisis annexed and forms part of the Directors' Report.
There is no Change in Management of the Company during the year under review.
There is no change in composition of Board during the year under review.
Further none of the Directors of the Company are disqualified under sub-section (2) ofSection 164 of the CompaniesAct 2013.
As per provisions of Section 149 of the 2013 Act independent directors shall holdoffice for a term up to five consecutive years on the board of a company but shall beeligible for re-appointment for another term up to five years on passing of a specialresolution by the company and disclosure of such appointment in Board's Report. FurtherSection 152 of the Act provides that the Independent Directors shall not be liable toretire by rotation in the Annual General Meeting ('AGM') of the Company.
As per Revised Clause 49 of the Listing Agreement (applicable from October 1 2014)any person who has already served as Independent Director for five years or more in acompany as on October 1 2014 shall be eligible for appointment on completion of thepresent term for one more term of up to 5 (five) years only.
DELISTING OF SHARES FROM COCHIN STOCK EXCHANGE
During the year the Company has opted to de-list its securities from Cochin StockExchange due to lack turnover and volatility on this exchange absence of liquidity in thescrip as well as almost Nil volume during the year under review. However Equity Shares ofCompany will continue to list on remaining Exchanges i.e. on BSE Ltd. (BSE) and MadrasStock Exchange (MSE).
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies (Amendment)Act 2000 the Directorsconfirm that:
1. In the preparation of the annual accounts for the year ended 31st March 2014 allthe applicable accounting standards prescribed by the Institute of Chartered Accountantsof India have been followed;
2. The Directors had adopted such accounting policies and applied them consistently andmade judgments and estimates that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company at the end of the financial year and of theprofit of the Company for that period;
3. The Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities; and
4. The Annual Accounts have been prepared on the historical cost convention a goingconcern basis and on accrual basis.
The Company being basically in the trading of pharma and its allied productsrequirement regarding and disclosures of Particulars of conservation of energy andtechnology absorption prescribed by the rule is not applicable to us.
Your Company believes that in addition to progressive thought it is imperative toinvest in Information and Technology to ascertain future exposure and prepare forchallenges. In its endeavor to obtain and deliver the best your Company has entered intoalliances/tie-ups with an IT solution Company to harness and tap the latest and the bestof technology in the world and deploy/absorb technology wherever feasible relevant andappropriate.
RESEARCH & DEVELOPMENT
The Company believes that technological obsolescence is a reality. Only progressiveresearch and development will help us to measure up to future challenges andopportunities. We invest in and encourage continuous innovation. During the year underreview expenditure on research and development is not significant in relation to thenature size of operations of your Company.
The Auditors M/s G. Sivaprakash Chartered Accountants Chennai who are StatutoryAuditors of the Company and holds the office until the conclusion of ensuing AnnualGeneral Meeting and are recommended for re-appointment to audit the accounts of theCompany from the conclusion of the 22nd Annual General Meeting up to the conclusion of the27th consecutive Annual General Meeting (subject to ratification by the members at everysubsequent AGM). As required under the provisions of Section 139 & 142 of theCompanies Act 2013 the Company has obtained written confirmation from M/s. G.Sivaprakash that their appointment if made would be in conformity with the limitsspecified in the said Section.
The shareholders are requested to appointAuditors and fix their remuneration.
COMMENTS ONAUDITOR'S REPORT :
The notes referred to in the Auditor's Report are self explanatory and as such they donot call for any further explanation as required under section 217(3) of the CompaniesAct1956.
PARTICULARS OF EMPLOYEES
The information as required by provisions of section 217(2A) of the Companies Act 1956read with the companies (Particular of employees) amendments rules 1975 is reported to beNIL.
PARTICULARS UNDER SECTION 217 (1) (e) OF THE COMPANIESACT 1956
The Company was in the business of trading of tablet liquid orals capsules andointments under the allopathic system and capsules and liquid orals under the ayurvedic/sidha systems during the year under review and hence the information regardingconservation of energy Technology Absorption Adoption and innovation the informationrequired under section 217(1)(e) of the Companies Act 1956 read with the Companies(Disclosure of particulars in the Report of Board of Directors) Rules 1988 is reported tobe NIL.
FOREIGN EXCHANGE EARNINGSAND OUTGO
The Company has not earned or used foreign exchange earnings/outgoings during the yearunder review.
During the year under review your Company has not accepted any deposits from thepublic within the meaning of section 58Aof the CompaniesAct 1956 and the rules thereunder.
REPORT ON CORPORATE GOVERNANCE
The Company conforms to the norms of Corporate Governance as envisaged in the CompaniesAct 1956 and the Listing Agreement with the Bombay Stock Exchange Limited. Pursuant toClause 49 of the Listing
Agreement a Report on the Corporate Governance and the Auditors Certificate onCorporate Governance are annexed to this report.
Your Directors wish to place on record their appreciation towards the contribution ofall the employees of the Company and their gratitude to the Company's valued customersbankers vendors and members for their continued support and confidence in the Company.
|Chennai May 27 2014 ||By order of the Board |
| ||For MAHAVIR ADVANCED REMEDIES LIMITED |
|Registered Office : ||BVS KOTESWARA RAO |
|No. 91 D-11 Govindappa Naicken Street ||(DIN : 02589812) |
|Chennai - 600 079 (Tamil Nadu) ||Managing Director |