MODI HOOVER INTERNATIONAL LIMITED
ANNUAL REPORT 2005-2006
Your Directors' are pleased to present the Twentieth Annual Report and
Accounts for the year ended 30th June 2006.
(Fig. in Rs. lacs)
Particulars 2005-06 2004-05
Sales & Other Income 147.91 205.85
Profit\(loss) before Dep And Tax 3.65 8.32
i) Depreciation 0.71 0.83
ii) Misc. Exp. Written off - 4.21
Profit \ (LOSS) Before Tax 2.85 3.27
Less: Provision for Tax - -
Less: FBT Tax 0.13 -
Net Profit \ (loss) after Tax 2.72 3.27
Add: Balance B\F from Previous year (1507.14) (1510.42)
Profit for appropriation 2.72 3.28
Carried to Balance Sheet (1504.42) (1507.14)
Your Directors regret their inability to recommend any dividend for the
The Company is in the field of marketing of Vacuum Cleaners and Water
Purifiers. During the year, the Vacuum Cleaner and Water Purifier sales
remained at a lower level than previous year.
OPPORTUNITY, THREATS, RISKS AND CONCERNS:
The present market of water purifiers is estimated at 6,35,000 units valued
at Rs.415 crores and the market of Vacuum Cleaners is estimated at 2,60,000
units valued to be Rs.170 crores. The company has the largest range of
Water purifiers and Vacuum Cleaners for all segments, backed by world known
Brand `Hoover'. The company would like to be part of this success by
attaining market share of 23% by 2009-10 and plans to achieve turnover of
Rs.219 Crores by the year 2009-10. The company during the year diversified
into Real Estate and formalised an Agreement providing for working as
Project Partner on Commission basis, the details are provided hereunder.
The Company has not invited nor accepted any deposits from the public.
Mr. Ved Prakash Arya, Mr. Ashok Gupta and Mr. L.R. Sharma are the Directors
of the Company. Mr. S.K. Modi resigned during the year. Mr. L.R. Sharma who
retires by rotation in this Annual General Meeting and being eligible,
offers himself for re-appointment.
DIRECTORS RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217(2AA) OF THE
COMPANIES ACT, 1956:
As required by Section 217(2AA) of the Companies Act, 1956 we hereby
* That in preparation of annual accounts, the applicable accounting
standards have been followed along with proper explanations relating to
* That the Directors have 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 fair view of the state of affairs of the
Company as at 30th June 2006 and of the profit and loss for the year ended
30th June 2006.
* That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the
company and for preventing and detecting fraud and other irregularities.
* That the directors have prepared the annual accounts on a going concern
M/s. Mangla Associates, Chartered Accountants, Auditors of the company
retire at the conclusion of the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment.
The Auditors' Report as well as notes to accounts are appended to this
report and are self-explanatory and in the opinion of the Board of
Directors, do not require any further comments.
The company has implemented the norms of Corporate Governance in accordance
with clause 49 of the Listing Agreement with the Stock Exchanges. The
report on Corporate Governance and Auditors' certificate thereof on
compliance of clause 49 is given along with this report.
There were no exports during the year.
PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A) OF THE COMPANIES ACT, 1956:
There is no employee in the company receiving remuneration as set out in
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975.
INFORMATION UNDER SECTION 217(1)(e) OF THE COMPANIES ACT, 1956:
Your company has no activity relating to conservation of energy and
MATERIAL TRANSACTIONS AFTER BALANCE SHEET DATE (30.06.2006):
a) Venture into Real Estate:
The Company by passing a Resolution by Postal Ballot in April 2006
diversified itself into Real Estate Business by forming a separate division
`Regent Realty'. In November 2006, the company entered into an agreement
for assisting its UK Partner, Regent Realty, UK. The details of this
Agreement are provided hereunder.
b) Repayment of C&F Deposits:
The Company was successful in negotiating with the C&F Agents to forego the
interest payable on their Securities, therefore Interest on Securities has
not been Provided in the Books of Accounts.
The Company after closure of Balance Sheet i.e., 30.06.2006 repaid Security
Deposits in excess of Rs.40 Lacs.
Your Directors acknowledge the support received from all its Business
Partners, its valued customers and also wish to place on record their
appreciation of the efforts at all levels. The Directors also acknowledge
the support and co-operation received from Banks and Government
For & on behalf of the Board of Directors of
Modi Hoover International Limited
Ved Prakash Arya Ashok Kumar Gupta
Managing Director Director
Place: New Delhi
Dated: 29th November, 2006