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Sanghvi Asbestos Cements Ltd.

BSE: 530203 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Sanghvi Asbestos Cements Ltd
NSE 05:30 | 01 Jan Sanghvi Asbestos Cements Ltd

Sanghvi Asbestos Cements Ltd. (SANGHVIASBESTOS) - Director Report

Company director report

SANGHVI ASBESTOS CEMENTS LIMITED ANNUAL REPORT 2004-2005 DIRECTOR'S REPORT To, The Members, The Directors of the Company hereby present their 21st Annual Report for the operations and the financial results of the Company for the year ended on 31st March, 2005. (Rs. in Lacs) FOR THE YEAR ENDED 1) FINANCIAL RESULTS 31/03/05 31/03/04 Net Sales/Income from Operations 1014.56 1011.34 Other Income 3.98 11.92 Total Expenditure 954.48 988.11 Profit/Loss before Interest & Depreciation 64.06 35.15 Less : a) Interest 39.83 37.20 b) Depreciation 32.16 23.62 Profit/Loss before Earlier year Exp./ Income -7.93 -16.94 Earlier year Expenses/Income 4.37 8.73 Profit/Loss Before deffered Tax (Assets/Liability) -12.30 -25.67 Deferred Tax Assets/ Liability 1.94 1.79 Profit/Loss before Tax -10.36 -23.88 Add : Balance B/F. from Previous Year 101.47 125.35 91.11 101.47 APPROPRIATIONS:- Balance Carried to next year 91.11 101.47 91.11 101.47 2) DIVIDEND : Looking to the Loss during the year your Directors express their inability to declare any dividend this year. 3) RESERVES : The Directors propose for transfer of Rs.Nil to General Reserve out of Profit available for appropriations. 4) OPERATIONS: Sales have Increased during the year under review in comparison to previous year. The sales for the year 2004-2005 are Rs.1014.56 lacs in comparison to sales of Rs. 1011.34 lacs in 2003-2004. 5) INSURANCE : All the movable and immovable properties and insurable interest of the Company including Building, Plant & Machinery and Stocks have been adequately insured. 6) DIRECTORS : Shri Rajesh udani retire by rotation and being eligible for reappointment your directors propose to reappoint him as a director. 7) AUDITORS: The Auditors, M/s Prakash S.Jain & Co., Indore retires on conclusion of the ensuing Annual General Meeting and is eligible for reappointment. Your Directors recommend for their re-appointment. 8) AUDITOR'S REPORT : The comments and notes of the Auditors on the Accounts of 2004-2005 are self explanatory and hence do not require any further clarification by Directors. 9) PARTICULARS OF EMPLOYEES : The statement of particulars of employees pursuant to section 217(2A) of the Companies Act. 1956 read with the Companies (particulars of Employees) Rules 1975 is NIL. 10) CORPORATE GOVERNANCE : A Separate note on Corporate governance is furnished as a part of the Directors Report and the compliance of the conditions of corporate governance is annexed to the said report. 11) PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO ETC.: Your companies has : i. Installed capacity for power factor improvement. ii. Replaced over size motors by appropriate motors as per requirements. iii. Maximum utilisation of nature light and air, has resulted in reduction in power & fuel consumption due to these measures power consumption has reduced. Particulars regarding conservation of Energy. Technology Absorption and Foreign Exchange earnings and outgo pursuant to the provision of Section 217(1) (e) of the Companies Act, 1956, are set out in the Statement annexed hereto, forming part of the full copy of the report and forms part of it. 12) DIRECTORS RESPONSIBILITY STATEMENT Pursuant to section 217 (2AA) of the companies Act. 1956, your Directors conform that : i. In the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures. ii. Appropriate accounting policies have been selected and applied consistently, and judgments and estimates that are reasonable and prudent have been exercise so as to give a true and fair view of the State of affairs of the Company as at 31st March 2005, and in the Profit & Loss A/C for the period ended 31st March 2005. iii. Proper & sufficient care have been taken 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 defecting fraud and other is irregularities. iv. The Annual Accounts have been prepared on a going concern basis. 13) INDUSTRIAL RELATION : The industrial relation were cordial throughout the year. 14) ACKNOWLEDGEMENT: Your Directors acknowledge with gratitude and wish to thanks the Dena Bank, Government of Madhya Pradesh, Uttar Pradesh, Chhatishgarh, Gujrat, Punjab, Haryana, Himachal Pradesh, West Bengal & Suppliers, customers and members of the Company for their valuable support and Co-operation. Your Directors duly acknowledge the trust and confidence reposed in them and also wish to place on record their appreciation for the services rendered by the officers, staff and workers of the Company at all levels. For & on behalf of the Board VANDANA GUPTA YOGESH SANGHVI Wholetime Director Managing Director PLACE : INDORE DATED : 06/09/2005 ANNEXURE TO THE DIRECTORS REPORT 2004-2005 FORM - A (See Rule 2) of Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988. Disclosure of particulars in the respect to conservation of energy CURRENT PREVIOUS YEAR YEAR 2005 2004 [A] Power & Fuel Consumption 1. Electricity a) Purchased Units (KWH) 209911 232129 Total Amount ( lacs) 12.16 14.39 Rate Per unit (Rs.) 5.79 6.20 b) Own Generation through Diesel Generator Set Units 79338 64434 Total Amount ( lacs) 5.76 4.63 Cost per unit (Rs.) 7.26 7.19 2. Coal NIL NIL 3. Furnace Oil NIL NIL 4. Other Internal Generation NIL NIL [B] Consumption per Unit of Production Power & Fuel consumed per unit of A.C. Pressure Pipe Manufactured 75.51 61.74 [C] Foreign Exchange Earnings And Out-Go a) There is no Foreign Exchange Earnings during the year. (Previous year NIL) b) Foreign Exchange Out-Go : There is no Foreign Exchange Outgo on account of Plant & Machinery. However Company has imported Raw Asbestos worth Rs.2183298/- (US$ 48359.08) during the year. FORM - B (See Rule 2) of Companies (Disclosure of particulars in the Report of Board of Directors), Rule, 1988 [A] Research and Development (R&D) 1. Special Area in which R & D carried out by the Company - Different combinations of fibres were developed to yield more binding strength. Use of pozzolanic material Fly Ash in the manufacture of Asbestos Cements pressure Pipes & Couplings. In Unit No.2 a fully equipped laboratory is provided for continuous R&D towards quality of International standards & adaptability to latest developments & designs. 2. Benefits derived as a result of the above R & D. Favourable improvements in cost of production vis-a-vis improvement in the quality of production. 3. Future plan of Action : The policy of the Company is to improve and optimise the machine performance absorbing the latest available technologies resulting in higher productivity and highest quality standards of the products. 4. Expenditure on R&D: No Specific Expenditure made. [B] TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION. 1. Efforts in brief made towards technology absorption, adoption and innovation - Company is adopting mfg.of A.C Pressure Pipes by this layer by layer as in MAZZA with more automation. 2. Benefits derived as a result of the above efforts e.g. Product Improvement, better product for cost reduction, product development, Import substitution etc. - NIL 3. In case of imported technology (imported during last 5 years reckoned from the beginning of the Financial Year) following information may be furnished - NIL For & on behalf of the Board VANDANA GUPTA YOGESH SANGHVI Wholetime Director Managing Director PLACE : INDORE DATED : 06/09/2005