SATELLITE ENGINEERING LIMITED
ANNUAL REPORT 2011-2012
Your Directors are pleased to present the 50th Annual Report with the
Audited Accounts of the Company for the year ended 31.3.2012.
(Rs. In Lacs)
Particulars 2011-2012 2010-2011
Total Income 22.15 66.99
Profit/(Loss) before Depreciation & Tax (14.04) 14.78
Less: Depreciation 12.11 14.20
Profit/(Loss) Before Tax (26.15) 0.58
Less: Provision for Tax
Current Taxes - 0.12
Short/(Excess) Provisions - 0.27
Net Profit/(Loss) After Tax (26.15) 0.19
Balance brought forward (360.36) (360.55)
Balance carried to Balance sheet (386.51) (360.36)
Earnings per share (0.76) 0.01
During the year, the total turnover has been decreased and stood at
Rs.21.82 Lacs as compared to last year's Rs. 56.85 Lacs. The Company has
incurred net loss after tax of Rs. 26.15 Lacs as compared to net profit of
Rs. 0.19 Lacs of the last year. Overall working was affected due to general
slowdown in the Industry.
Your Directors do not recommended any dividend for the year, due to loss of
the current year and carried forward loss of the past years.
At the forefront of completing 50 years in the lighting industry, we have
developed ourselves and our relations into good business. We at this year
are adding our focus from the traditional distribution networks for our
products to huge corporate vendorships. We at this year are going to
develop and automize our machineries to meet with the demand for the
products. We have already started placing the roots into corporate
mechanisms, and hope to start reaping the fruits soon. On the export front,
we are renewing relationships with our export customers, and are focusing
on acquiring their orders with the new technology being installed in our
plants. We hope to achieve this with the financial support of the Banks.
We are working on establishing a joint venture with our Asian partners, and
will be starting LED production, at the earliest. We are also planning on
establishing trade relations to equip us with new technology and better
RISKS AND CONCERNS:
The Company keeps facing stiff competition by our Asian neighbors, and
unhealthy competition form the Local markets. With an experience of 50
years, we have developed relations, and are soon working on countering the
(Information under section 217(1)(e) of the Companies Act, 1956.)
The company has a continuous focus on energy conservation. Regular studies
are conducted to analyses quantitative energy conservation patterns, and
variances are rigorously scrutinized. The company regularly benchmarks its
energy conservation levels and consistently works towards improving
efficiencies, towards getting the cost of energy down for every unit
Total energy consumption and energy consumption per unit of production:
Particulars 31-03-2012 31-03-2011
(A) Power and Fuel Consumption:
Units Kwh 14352 29572
Total Amount Rs. 118407 243971
Rate/Unit Rs. 8.25 8.25
(b) Own Generation through
Diesel Generator set
Units Kwh - -
Unit per liter of Diesel Oil Kwh - -
Cost/Unit Rs. - -
(B) Consumption per
Unit of Production:
Electricity consumed per vial
(in units) - -
(C) Foreign Exchange Earnings & Outflow:
There is no foreign exchange earnings during the year (last year NIL),
while foreign exchange outgo of the company is Nil (Last year Nil).
In accordance with the provisions of the Articles of Association and of the
Companies Act 1956, Mr. Vinodchandra M. Parikh, Director of the Company, is
liable to retire by rotation at the ensuing Annual General Meeting and
being eligible, offer himself for re-appointment.
The brief particulars of director, for which approval of members for their
appointment or re-appointment is sought, has been provided in the Corporate
Governance Report pursuant to Clause 49 of the Listing Agreement.
The company has not invited or accepted any deposits under Section 58A of
the Companies Act, 1956, from the public, during the year.
Pursuant to clause 49 of the Listing Agreement with the Stock Exchange, a
separate section on Corporate Governance and certificate obtained from
practicing Chartered Accountant confirming its compliance, is provided
separately and forming part of this Report. The Board of Directors supports
the basic principles of corporate governance. In addition to this, the
board lays strong emphasis on transparency, accountability and integrity.
Report on Management Discussion and Analysis is provided in separate
section and forming part of this report.
FORMATION OF VARIOUS COMMITTEES:
Details of various committees constituted by the Board of Directors are
given in the Corporate Governance Report annexed which forms part of this
PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A):
The provisions of section 217(2A) of the Companies Act, 1956, read with
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.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956 I would like to
state the following:
In the preparation of the Annual Accounts, the applicable accounting
standards have been followed.
The Directors have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company, at the end of the financial year ended on 31st March. 2012.
The Directors have 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.
The Directors have prepared the attached statements of accounts for the
year ended 31st March, 2012 on a going concern basis.
REVOCATION OF SUSPENSION ON BSE:
The Company's shares are presently under suspension category at Mumbai
Stock Exchange (BSE), since last 4 years and trading of shares is not done.
The Company had applied for the revocation of suspension for trading of
shares at BSE and submitted all the necessary documents to BSE. The Board
of Directors pleased to inform that In-principle approval for revocation of
suspension in trading of equity shares was granted by BSE through letter
dated July 23, 2012. In near future, the company's shares will once again
start trading at BSE and it will helpful to all the Shareholders of the
AUDITORS & AUDITORS REPORT:
M/s. Apaji Amin & Co., Chartered Accountants, retire at the forthcoming
Annual General Meeting and have shown his willingness to re-appoint, if
approved by the members in the ensuing Annual General Meeting. Shareholders
are requested to appoint auditors from the conclusion of this Annual
general Meeting up to the conclusion of the next Annual General Meeting and
fix their remuneration.
Notes forming part of the accounts are self explanatory as far as Auditor's
Report is concerned and therefore, it do not require any further comments.
Your Directors take this opportunity to express their gratitude for the
valuable assistance and co-operation extended by the Bankers, vendors,
customers, advisors, the general public and for the valued efforts and
dedication shown by the Company employees at all levels. Your Directors
also sincerely acknowledge the confidence and faith reposed by the
shareholders of the Company.
By order of the Board
Date : 14th August, 2012 Anand A. Shah
Place: Ahmedabad Managing Director
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW, FUTURE PROSPECTS & OUTLOOK:
Company is planning to increase its output, as the Company has confirmed
order from domestic market as well as export market. Many Indian Companies
like Anchor, Havells etc, and foreign companies situated at different
countries like Philippines, Holland, Singapore have confirmed their order
for supply of engineering goods to our Company. The management of the
Company is planning to launch the LED products, keeping in view, future
demand of engineering goods market which saves lots of energy and
electricity. The Company has been trying best to develop the new products
and technology which may take at least one and half years to develop and
come to the track. Modernization of plant by executing/installing fully
atomized and well equipped plant through new technologies with the
financial support of the Bank are also one of the priority motto of the
Board of Directors of the Company.
RISKS & CONCERNS:
The company faces stiff competition from imported Chinese goods and
unhealthy competition from the local unorganized players. Also the Company
was confronted by Labor Unions and hence loss of well settled business.
Frequent change in Exchange rate resulting into exchange fluctuation and
government policies are also risk factor for Company's business.
INTERNAL CONTROL SYSTEM:
The company has got adequate internal control system and procedure relating
to the purchase of various raw materials, stores and other consumables. The
plants are sending regular and timely reports to the Managing Director and
other Management Executives at Head Office and corrective actions as and
when, required are being taken by Head Office.
Managing Director of the company is the Compliance Office. Moreover the
company has retained services of a Practicing Company Secretary for making
compliance of all provisions of Companies Act, Securities Contract and
Regulation Act, SEBI Act etc.
During the year Labor Unions have caused loss of production to the Company
by stopping work from time to time and thereby Export Business of the
Company was lost. However, in the coming days. Labor will not affect the
growth of the Company.