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TMT (I) Ltd.

BSE: 522171 Sector: Engineering
NSE: TMTINDIA ISIN Code: INE182E01010
BSE 05:30 | 01 Jan TMT (I) Ltd
NSE 05:30 | 01 Jan TMT (I) Ltd

TMT (I) Ltd. (TMTINDIA) - Director Report

Company director report

TMT (INDIA) LIMITED ANNUAL REPORT 2006-2007 DIRECTOR'S REPORT Dear Members, We have pleasure in presenting the Annual Report and the Audited statement of Accounts of your Company for the year ended 31st March, 2007. FINANCIAL RESULTS (Rs. in lakhs) For the For the year ended year ended 31-03-2007 31-03-2006 Sales & other income 4.14 8.30 Loss for the year before Interest 262.39 915.10 Loss for the year after Interest 263.25 916.52 Less: Extra ordinary and Prior period Income (Net) 248.20 904.39 Loss before Tax 15.05 12.13 Provision for Tax (Fringe Benefit Tax) 0.87 0.53 Loss after Tax 15.92 12.66 Loss Brought forward from previous year 929.04 916.38 Loss carried to Balance Sheet 944.96 929.04 OPERATIONS: There were meager operations/transactions during the year under report and the company has incurred net loss after tax of Rs. 15.92 lakhs as against Rs. 12.66 lakhs in earlier year. The Company is slowly turning around. The dues to the financial institutions are settled. The Company has identified new business opportunities and in this process acquired technical know-how from Demerara Distillers Limited, a Joint Venture Company for manufacturer of EIDorado Branded Rums. This is expected to generate revenues from financial year 2008-09. PROSPECTS: With the settlement of its dues to institutions and the Company is putting all its efforts and concentrating on reviving present business activities, particularly in view of the present boom in the paper market. The Company is making efforts to turn around by raising additional resources, disposing off floriculture unit in Bangalore. Technical Know-how for manufacture of proprietary ingredients for EIDorado brand of Rums, the Company is taking all necessary steps for its future operations. FIXED DEPOSITS: The Company has no Fixed Deposits. DIRECTORS: Mr. A. Panduranga and Mr. NJ Rao will retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re- appointment. DIVIDEND: In view of the loss, your Directors are unable to recommend dividend for the year. PARTICULARS OF EMPLOYEES: None of the employees was in receipt of aggregate remuneration as prescribed under Sec.217 (2A) of the Companies Act, 1956. DIRECTORS' RESPONSIBILITY STATEMENT: As required under Section 217 (2AA) of the Companies Act., I956, your Directors confirm that: 1. In the preparation of the annual accounts, the applicable accounting standards have been followed and there were no material departures. 2. The accounting policies selected have been applied consistently and reasonable, prudent judgments and estimates have been made so as to give a true and fair view of the state of affairs of the company as at 31st March, 2007 and of the loss of the company for the year ended 31st March, 2007. 3. 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 preventing and detecting fraud and for other irregularities. 4. The annual accounts have been prepared on a going concern basis. CORPORATE GOVERNANCE: In view of the financial position of the Company and due to meager operations during the year under report, your Company was not able to implement Corporate Governance guidelines. However, the Company has complied with statutory requirements to the extent it is practicable to do so. QUALIFICATIONS IN AUDITORS' REPORT: As the Company is functioning with bare minimum staff, physical verification of stocks and fixed assets was not carried out, but the Company's assets are well guarded. The negotiations with the parties for the settlement of clues are going on. The effect of reconciliations and write off of balances, if any will be taken up as and when the balances of creditors & debtors are reconciled. Gratuity is accounted on payment basis, since most of the employees have left the Company. AUDITORS: M/s Brahmayya & Company, Chartered Accountants, Adoni will retire at the conclusion of the forthcoming Annual General Meeting and are eligible for re-appointment. ENERGY CONSERVATION: During the period under consideration power consumption is very meager and attempts are being made to conserve power. TECHNOLOGY ABSORPTION: The Company has competent in-house research and development facilities including CAD centers for designing and developing the paper projects of the Company. FOREIGN EXCHANGE EARNINGS AND OUTGO: During the year under report, the Company has not earned any foreign exchange but has spent Rs.2.94 lakhs towards foreign traveling and consultancy expenses. ACKNOWLEDGEMENTS: Your Directors place on record their appreciation for the valuable assistance and guidance received from IDBI and other institutions who have been associated with the Company. For and on behalf of the Board of Directors Sd/- T.G. VEERA PRASAD MANAGING DIRECTOR Place: Hyderabad Date : 16th August 2007