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MILK SPECIALITIES LIMITED
ANNUAL REPORT 2011-2012
DIRECTOR'S REPORT
Dear Members,
Your Directors have pleasure in presenting the 20th Annual Report together
with Audited Accounts for the year ended 31st March, 2012.
1. FINANCIAL RESULTS
(Rs. in Lacs)
particulars current year PREVIOUS YEAR
(2011-2012) (2010-11)
Sales and Other income 4774.31 5803.98
Increase/Decrease in the stock (28.98) (265.05)
Expenditure before Financial
Charges and Depreciation 4104.36 4869.07
Finance Cost 533.90 507.04
Profit/(Loss) Before
Depreciation 107.07 182.41
Depreciation 113.26 112.87
Provision for Income Tax : 17.00 22.00
Net Profit/(Loss) for the year : (23.19) 47.54
Deferred Tax (18.22) (20.42)
FIXED DEPOSITS:
The Company has not accepted any fixed deposits during the year under
review.
DIRECTORS:
Mr. Anoop Kumar Sud and Mrs. Sukhwinder Kaur would retire as Directors at
the forthcoming 20th Annual General Meeting of the Company. Being eligible,
they have offered themselves for reappointment. The Board recommends their
appointment.
AUDITORS:
M/s S. Kumar Gupta & Associates, Chartered Accountants are the present
Auditors of Company. In terms of the provisions of Section 224 of the
Companies Act, 1956, they would retire at the forthcoming 20th Annual
General Meeting of the Company. Being eligible, they have offered
themselves for re-appointment. The Board recommends their re-appointment as
Auditors of the Company for the Financial Year 2012-2013.The notes on
Financial Statements referred to in the Auditor Report are self explanatory
and do not call for any further comments.
CORPORATE GOVERNANCE:
Auditors certificate on Compliance with the conditions of Corporate
Governance and separate report on Corporate Governance and Management
Discussion & Analysis are enclosed separately in this Annual Report.
FOREIGN EXCHANGE EARNINGS AND OUTGO RS. NIL
LISTING OF SHARES:
The equity shares of the Company are listed at the Stock Exchanges of
Mumbai, Delhi, Ahmedabad and Ludhiana. However, the trading of the Shares
of your Company are currently suspended in all the Stock Exchanges. The
Company had filed applications for voluntary delisting of its shares from
the Stock Exchanges of Delhi, Ahmedabad and Ludhiana but the same were
subject to their confirmation.
DIRECTORS' RESPONSIBILITY STATEMENT:
pursuant to section 217 (2aa) of the companies act, 1956, it is stated:-
i) That in the preparation of the Annual Accounts, the applicable
Accounting Standards had been followed alongwith proper explanation
relating to material departures.
ii) That the Directors had selected such Accounting Policies and applied
them consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fare view of the state of affairs of the
Company at the end of the Financial Year and of the Profit or Loss of the
Company for that period.
iii) That the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
Provisions of this Act for safeguarding the Assets of the Company and for
preventing and detecting fraud and other irregularities.
iv) That the Directors had prepared the Annual Accounts on a going concern
basis.
PARTICULARS OF EMPLOYEES:
The information required under Section 217 (2A) of the Companies Act, 1956,
read with Companies (Particulars of Employees) Rules, 1975 is nil.
PARTICULARS REGARDING ENERGY CONSERVATION ETC.
The information required as per Section 217 (1 )(e) of the Companies Act,
1956, read with Companies (Disclosure of Particulars in Directors' Report)
Rules, 1988 are given as Annexure-1 forming part of this Directors' Report.
RESEARCH AND DEVELOPMENT AND TECHNOLOGY ABSORPTION:
The Company has not incurred any Expenditure on Research and Development.
The Company has not adopted or installed any new technology for the
manufacturing of its products. However, Pursuant to the Companies
(Disclosures of Particulars in the Report of Board of Directors) Rules,
1988, Form B is enclosed as Annexure - 2 which forms an integral part of
this Director's Report.
ACKNOWLEDGEMENTS
Your Directors record their appreciation and thanks for the support and
assurance the Company has received from Banks, Central and State
Governments, Raw Material suppliers and Customers of the Company, the
dedicated employees and all other who are continuing to assist your
Company!
For and on behalf of the Board of Directors of
M/s Milk Specialities Limited
Dated: 03-09-2012 (JAGJEET SINGH) (CHARAN SINGH)
Place: Chandigarh MANAGING DIRECTOR DIRECTOR
Annexure-I
STATEMENT ANNEXED TO AND FORMING PART OF DIRECTORS' REPORT FOR THE YEAR
ENDED 31st MARCH 2012 PURSUANT TO COMPANIES (DISCLOSURE OF PARTICULARS IN
REPORT OF DIRECTORS) RULES.1988
A. CONSERVATION OF ENERGY
Total energy consumption per unit is given below:
FORM 'A'
A. POWER & FUEL CURRENT YEAR PREVIOUS YEAR CONSUMPTION
2011-12 2010-11
1. ELECTRICITY
a) Purchased Units 1753750 1976120
Total Amount (Rs.in lacs) 106.93 112.00
Rate/Unit (Rs.) 6.10 5.67
b) Own Generation 48501 81623
Total Amount (Rs. in lacs) 5.30 8.60
Cost/Unit (Rs.) 10.94 10.54
2. HUSK
Quantity (In. M.T.) 2637 2899
Total Coster in lacs) 112.60 114.18
Rate/Unit (Rs.Per M.T.) 4270.64 3938.48
B. CONSUMPTION PER UNIT OF PRODUCTION
The Company produces various products I.e. Pure Ghee, Skimmed Milk Powder
and Pouched Packed Liquid Milk and use different sources of energy
therefore, it is not feasible to arrive at the energy consumption per unit
for each source of energy for each product as prescribed.
For and on behalf of the Board of Directors of
M/s Milk Specialities Limited
Dated: 03-09-2012 (JAGJEET SINGH) (CHARAN SINGH)
Place: Chandigarh MANAGING DIRECTOR DIRECTOR
Annexure-2
FORM B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION
Research and Development (R & D)
1. Specific areas in which R&D carried out by
the Company N.A.
2. Benefits derived as a result of the above R&D N.A.
3. Future plan of action N.A.
4. Expenditure on R&D: N.A.
a) Capital N.A.
b) Recurring N.A.
c) Total N.A.
d) Total R&D expenditure as a percentage of total
turnover N.A.
Technology absorption, adaptation and innovation
1. Efforts, in brief, made towards technology
absorption, adaptation and innovation N.A.
2. Benefits derived as a result of the
above efforts, e.g. product Improvement, cost
reduction, product development, import
Substitution, etc. N.A.
3. In case of imported technology (imported
during the last 5 years reckoned from the
beginning of the Financial year), following
information may be furnished : N.A.
a) Technology imported N.A.
b) Year of import N.A.
c) Has technology been fully absorbed? N.A.
d) If not fully absorbed, areas where this has
not taken place, reasons thereof and future
plans of action. N.A.
MANAGEMENT DISCUSSION AND ANALYSIS
FINANCIAL PERFORMANCE
During the year under review, the Company has achieved a turnover of
Rs.4773.55 lacs with a Net Loss of Rs. 6.19 lacs against the previous year
Sales Turnover of' Rs. 5692.62 lacs and Net Profit of' Rs. 69.54 lacs.
INDUSTRY STRUCTURE & DEVELOPMENTS
With the liberalization of the Indian economy in 1991, the Dairy sector too
was de-licensed which was earlier dominated by the Cooperative Sector.
Indian Dairy Industries is heading towards an accelerated & positive
momentum with accelerated growth in milk production by over two & half
times in the two decades. India has emerged as the largest producer of milk
in the world.
The Company is a manufacturer of varieties of Dairy Products such as Pure
Ghee, Milk Powder, Pasteurized Milk etc. and is marketing its products
under the brand name 'MILKTIME'. The Company is committed to provide Pure,
Fresh & unadulterated Milk to the society at large.
OPPORTUNITIES & THREATS
The opportunities for the products of the Company are enormous because of
essential nature and application to varieties of uses. With the rising
health consciousness among the people, demand for the products of Company
will further increase. The expected rise in urban population and their
purchasing power would be a boom to Indian Dairy. At present only few
cities and towns are served by the organized milk sector in India. This
leaves the organized sector with huge untapped market. As your Company is
also operating in the liquid milk market, there exists a vast opportunity
for increasing the share in the liquid milk market.
There are large numbers of Milk Dairies operating in the unorganized Sector
producing Dairy products with adulterated and unhealthy Milk. Since these
products are cheap, they cause strain on the marketing and pricing policies
of the Company.
OUTLOOK
Considering the growth potential in the Liquid market, your Company has
drawn plans to increase its market share in the existing markets and to
enter into new markets by providing Fresh and unadulterated Milk.
RISK & CONCERN
The real risk and concern to the Company is the fluctuation in prices of
Raw Milk not directly related to the selling prices in the market. Dairy
Industry is dependent upon the assured supply of quality Raw Milk at
competitive & predictable prices. Fluctuation in Raw Milk prices and
deficiency in rain falls due to adverse climatic conditions present a
business risk. Milk is highly perishable commodity. There exists an
inherent risk due to delay in transport bottlenecks and breakdown of
Machinery.
SEGMENT WISE OR PRODUCT WISE PERFORMANCE
The Company deals with only one segment i.e. Milk and Milk products.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company ensures existence of adequate internal control and procedure at
various levels in the Company commensurate with the size of the Company and
the nature of its business for the purchases of Stores, Raw Materials
including components Plant & Machinery, Equipments and other Assets, and
for the sale of goods.
HUMAN RESOURCES DEVELOPMENT & INDUSTRIAL RELATION
The current strength of the manpower is 54 besides employing worker on
contract basis. Industrial relation at the plant during the year were
cordial.
CAUTIONARY STATEMENT
The report may contain certain Statements that the Company believes are, or
may be considered to be 'forward looking statements' that describe our
objectives, plan or goals. All these forward looking Statements are subject
to certain risks and uncertainties, including but not limited to,
Government action, economic development, risks inherent in the Company's
growth strategy and other factors that could cause the actual results to
differ materially from those contemplated by the relevant forward looking
Statements.
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